BALTIMORE, Jan. 31, 2017
/PRNewswire/ -- Under Armour, Inc. (NYSE: UA, UAA)
today announced financial results for the fourth quarter and full
year ended December 31, 2016. All per share amounts are on a
diluted basis. This release refers to "currency neutral" amounts
which is a non-GAAP financial measure described below under the
"Non-GAAP Financial Information" paragraph.
"We are incredibly proud that in 2016, we once again posted
record revenue and earnings, however, numerous challenges and
disruptions in North American retail tempered our fourth quarter
results," said Kevin Plank, Under
Armour Chairman and CEO. "The strength of our Brand, an
unparalleled connection with our consumers and the continuation of
investments in our fastest growing businesses -- footwear,
international and direct-to-consumer -- give us great confidence in
our ability to navigate the current retail environment, execute
against our long-term growth strategy and create value to our
shareholders."
Fourth Quarter 2016 Review
- Revenues were up 12 percent to $1.3 billion, driven by a 5 percent increase in
wholesale revenues to $742 million
and a 23 percent increase in direct-to-consumer revenues to
$518 million. North American revenues
grew 6 percent. International revenues, which represented 16
percent of total revenues in the quarter, were up 55 percent (up 60
percent currency neutral) driven by significant growth in the U.K.,
Germany, China and Australia. Apparel revenues increased 7
percent to $929 million including
strength in golf and basketball. Footwear revenues increased 36
percent to $228 million driven by
accelerated growth in running and basketball. Accessories revenues
increased 7 percent to $104 million
with strength in bags and headwear.
- Gross margin was 44.8 percent compared with 48 percent
in the prior year's period, as benefits from more favorable product
costs were offset by aggressive efforts to manage inventory,
changes in foreign currency and the outperformance of footwear and
international businesses in the overall mix, which carry lower
margins than our apparel and North American businesses.
- Selling, general and administrative expenses grew 9
percent to $420 million, or 32.1
percent of sales (down 70 basis points), due to continued
investments in the company's highest growth businesses: footwear,
international, and direct-to-consumer.
- Operating income declined 6 percent to $167 million. Net income decreased 1
percent to $105 million and
diluted earnings per share for the fourth quarter of 2016
were $0.23 compared with $0.24 in the prior year's period.
Full Year 2016 Review
- Revenues increased 22 percent to $4.8 billion (up 23 percent currency neutral)
including a 19 percent increase in wholesale revenues to
$3.1 billion and a 27 percent
increase in direct-to-consumer revenues which reached $1.5 billion. Direct-to-consumer revenues reached
31 percent of total revenues compared with 30 percent in 2015.
North American revenues grew 16 percent and international revenues
grew 63 percent (up 69 percent currency neutral). For the full
year, international revenues represented 15 percent of total
revenues, compared with 11 percent in 2015. Apparel revenues
increased 15 percent to $3.2 billion
led by growth in golf, basketball and training. Footwear revenues
grew 50 percent to reach $1 billion
driven by balanced growth across all categories with particular
strength in running and basketball. Accessories revenues increased
17 percent to $407 million with
strength in bags and headwear and Connected Fitness increased 51
percent to $80 million.
- Gross margin was 46.5 percent compared with 48.1 percent
as benefits from more favorable product costs were offset by
efforts to manage inventory, changes in foreign currency and the
outperformance of the footwear and international businesses in the
overall mix, which carry lower margins than the apparel and North
American businesses.
- In line with revenue growth, full year selling, general
and administrative expenses grew 22 percent and reached
$1.8 billion, or 37.8 percent of
revenues.
- Operating income increased 3 percent to $420 million and net income grew 11
percent to $259 million. Diluted
earnings per share for full year 2016 were $0.45 per share for Class A and B shares and
$0.71 per share for Class C shares,
reflecting the impact of a $59
million stock dividend paid to Class C shareholders during
the second quarter. If the Class C stock dividend had not been
paid, non-GAAP diluted earnings per share for all classes for 2016
would have been $0.58 per share. This
compares with diluted earnings per share of $0.53 for all classes in 2015.
Balance Sheet Highlights – As of December 31,
2016
Compared with December 31,
2015:
- Cash and cash equivalents increased 93 percent to $250 million.
- Inventory increased 17 percent to $917
million.
- Total debt increased 22 percent to $817
million.
2017 Outlook
"Looking forward, our successful track record of re-defining
performance gives us great confidence that the opportunities for
long-term growth at Under Armour have never been greater," said
Plank. "The current environment represents an inflection point to
maximize our unique strengths by staying on offense -- investing
smartly in innovation, deepening our Brand connection with
consumers and amplifying our focus on operational excellence --
positioning Under Armour as a stronger company."
Key points related to Under Armour's full year 2017 outlook
include:
- Net revenues are expected to grow 11 to 12 percent to
reach nearly $5.4 billion, up 12 to
13 percent currency neutral.
- Gross margin is expected to be slightly down compared to
the prior year with benefits in product costs being offset by
continued pressure from changes in foreign currency and sales mix,
as the footwear and international businesses continue to outpace
the growth of the higher margin apparel and North American
businesses.
- Tempered top line results coupled with strategic investments in
the company's fastest growing businesses are expected to cause a
decline in operating income to approximately $320 million.
- Other full year assumptions include interest expense of
approximately $40 million and an
effective tax rate of 32 to 34 percent.
Management Changes
The Company's Chief Financial Officer, Chip Molloy, has decided to leave the company
due to personal reasons. Effective February
3, David Bergman, Senior Vice
President, Corporate Finance, and a seasoned member of Under
Armour's accounting and finance organization, will serve as acting
CFO. Mr. Molloy will remain with the company in an advisory
capacity to assist with the transition.
Mr. Bergman joined Under Armour in 2005 and is currently
responsible for leading all major finance functions including
financial planning and analysis, treasury and tax. Prior to this
position, he served as Corporate Controller along with several
senior management roles within the Company's accounting and finance
organization. Both Mr. Molloy and Mr. Bergman will participate in
Under Armour's fourth quarter call and webcast today.
Conference Call and Webcast
Under Armour will hold its 2016 fourth quarter conference call
and webcast today at approximately 8:30 a.m.
Eastern Time. The call will be webcast live at
http://investor.underarmour.com/events.cfm and will be archived and
available for replay approximately three hours after the live
event. Financial results and additional supporting materials
related to the call can be found at
http://investor.underarmour.com.
Non-GAAP Financial Information
The Company reports its financial results in accordance with
accounting principles generally accepted in the United States ("GAAP"). However, this
press release refers to "non-GAAP diluted earnings per share" and
certain "currency neutral" financial information, which are
non-GAAP financial measures. The Company provides a reconciliation
of these non-GAAP measures to the most directly comparable
financial measure calculated in accordance with GAAP. See the end
of this press release for this reconciliation.
Non-GAAP diluted earnings per share is calculated to exclude the
one-time dividend to our Class C stockholders discussed above.
Management believes this presentation provides a useful metric to
investors because it excludes the effect of this one-time event
allowing investors to compare the Company's results over multiple
periods. Currency neutral financial information is calculated to
exclude foreign exchange impact. Management uses this information
internally to assess sales performance and believes this
information is useful both internally and to investors to
facilitate a comparison of the Company's results of operations
period-over-period. These non-GAAP financial measures should not be
considered in isolation and should be viewed in addition to, and
not as an alternative for, the Company's reported results prepared
in accordance with GAAP. In addition, the Company's non-GAAP
financial information may not be comparable to similarly titled
measures reported by other companies.
About Under Armour, Inc.
Under Armour (NYSE: UA, UAA),
the originator of performance footwear, apparel and equipment,
revolutionized how athletes across the world dress. Designed to
make all athletes better, the brand's innovative products are sold
worldwide to athletes at all levels. The Under Armour Connected
Fitness™ platform powers the world's largest
digital health and fitness community through a suite of
applications: UA Record, MapMyFitness, Endomondo and MyFitnessPal.
The Under Armour global headquarters is in Baltimore, Maryland. For further information,
please visit the Company's website at www.uabiz.com.
Forward Looking Statements
Some of the statements
contained in this press release constitute forward-looking
statements. Forward-looking statements relate to expectations,
beliefs, projections, future plans and strategies, anticipated
events or trends and similar expressions concerning matters that
are not historical facts, such as statements regarding our future
financial condition or results of operations, our prospects and
strategies for future growth, the development and introduction of
new products, the implementation of our marketing and branding
strategies, and the future benefits and opportunities from
acquisitions. In many cases, you can identify forward-looking
statements by terms such as "may," "will," "should," "expects,"
"plans," "assumes," "anticipates," "believes," "estimates,"
"predicts," "outlook," "potential" or the negative of these
terms or other comparable terminology. The forward-looking
statements contained in this press release reflect our current
views about future events and are subject to risks, uncertainties,
assumptions and changes in circumstances that may cause events or
our actual activities or results to differ significantly from those
expressed in any forward-looking statement. Although we believe
that the expectations reflected in the forward-looking statements
are reasonable, we cannot guarantee future events, results,
actions, levels of activity, performance or achievements. Readers
are cautioned not to place undue reliance on these forward-looking
statements. A number of important factors could cause actual
results to differ materially from those indicated by the
forward-looking statements, including, but not limited to: changes
in general economic or market conditions that could affect overall
consumer spending or our industry; the financial health of our
customers; our ability to effectively manage our growth and a more
complex global business; increased competition causing us to lose
market share or reduce the prices of our products or to increase
significantly our marketing efforts, which can impact our
profitability and growth; our ability to successfully manage or
realize expected results from acquisitions and other significant
investments or capital expenditures; our ability to effectively
develop and launch new, innovative and updated products; our
ability to accurately forecast consumer demand for our products and
manage our inventory in response to changing demands; fluctuations
in the costs of our products; loss of key suppliers or
manufacturers or failure of our suppliers or manufacturers to
produce or deliver our products in a timely or cost-effective
manner, including due to port disruptions; our ability to further
expand our business globally and to drive brand awareness and
consumer acceptance of our products in other countries; our ability
to accurately anticipate and respond to seasonal or quarterly
fluctuations in our operating results; risks related to foreign
currency exchange rate fluctuations; our ability to effectively
market and maintain a positive brand image; our ability to comply
with existing trade and other regulations, and the potential impact
of new trade and tax regulations on our profitability; the
availability, integration and effective operation of information
systems and other technology, as well as any potential interruption
in such systems or technology; risks related to data security or
privacy breaches; our ability to raise additional capital required
to grow our business on terms acceptable to us; our potential
exposure to litigation and other proceedings; and our ability to
attract and retain the services of our senior management and key
employees. The forward-looking statements contained in this press
release reflect our views and assumptions only as of the date of
this press release. We undertake no obligation to update any
forward-looking statement to reflect events or circumstances after
the date on which the statement is made or to reflect the
occurrence of unanticipated events.
Under Armour,
Inc.
|
For the Quarter and
Year Ended December 31, 2016 and 2015
|
(Unaudited; in
thousands, except per share amounts)
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
Quarter Ended
December 31,
|
|
Year Ended December
31,
|
|
|
|
|
|
|
|
2016
|
|
% of Net
Revenues
|
|
2015
|
|
% of Net
Revenues
|
|
2016
|
|
% of Net
Revenues
|
|
2015
|
|
% of Net
Revenues
|
Net
revenues
|
|
$
|
1,308,128
|
|
|
100.0
|
%
|
|
$
|
1,170,686
|
|
|
100.0
|
%
|
|
$
|
4,828,186
|
|
|
100.0
|
%
|
|
$
|
3,963,313
|
|
|
100.0
|
%
|
Cost of goods
sold
|
|
721,574
|
|
|
55.2
|
%
|
|
609,016
|
|
|
52.0
|
%
|
|
2,584,724
|
|
|
53.5
|
%
|
|
2,057,766
|
|
|
51.9
|
%
|
Gross
profit
|
|
586,554
|
|
|
44.8
|
%
|
|
561,670
|
|
|
48.0
|
%
|
|
2,243,462
|
|
|
46.5
|
%
|
|
1,905,547
|
|
|
48.1
|
%
|
Selling, general
and
administrative expenses
|
|
419,804
|
|
|
32.1
|
%
|
|
384,088
|
|
|
32.8
|
%
|
|
1,823,140
|
|
|
37.8
|
%
|
|
1,497,000
|
|
|
37.8
|
%
|
Income from
operations
|
|
166,750
|
|
|
12.7
|
%
|
|
177,582
|
|
|
15.2
|
%
|
|
420,322
|
|
|
8.7
|
%
|
|
408,547
|
|
|
10.3
|
%
|
Interest expense,
net
|
|
(7,958)
|
|
|
(0.6)
|
%
|
|
(4,056)
|
|
|
(0.4)
|
%
|
|
(26,434)
|
|
|
(0.5)
|
%
|
|
(14,628)
|
|
|
(0.4)
|
%
|
Other expense,
net
|
|
(1,731)
|
|
|
(0.1)
|
%
|
|
(2,196)
|
|
|
(0.2)
|
%
|
|
(2,755)
|
|
|
(0.1)
|
%
|
|
(7,234)
|
|
|
(0.2)
|
%
|
Income before
income
taxes
|
|
157,061
|
|
|
12.0
|
%
|
|
171,330
|
|
|
14.6
|
%
|
|
391,133
|
|
|
8.1
|
%
|
|
386,685
|
|
|
9.7
|
%
|
Provision for income
taxes
|
|
52,151
|
|
|
4.0
|
%
|
|
65,727
|
|
|
5.6
|
%
|
|
132,473
|
|
|
2.7
|
%
|
|
154,112
|
|
|
3.8
|
%
|
Net
income
|
|
$
|
104,910
|
|
|
8.0
|
%
|
|
$
|
105,603
|
|
|
9.0
|
%
|
|
$
|
258,660
|
|
|
5.4
|
%
|
|
$
|
232,573
|
|
|
5.9
|
%
|
Adjustment
payment to Class C
capital
stockholders
|
|
—
|
|
|
|
|
—
|
|
|
|
|
59,000
|
|
|
|
|
—
|
|
|
|
Net income
available
to all stockholders
|
|
104,910
|
|
|
|
|
105,603
|
|
|
|
|
199,660
|
|
|
|
|
232,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
share
of Class A and B common
stock
|
|
$
|
0.24
|
|
|
|
|
$
|
0.24
|
|
|
|
|
$
|
0.46
|
|
|
|
|
$
|
0.54
|
|
|
|
Basic net income per
share
of Class C common stock
|
|
$
|
0.24
|
|
|
|
|
$
|
0.24
|
|
|
|
|
$
|
0.73
|
|
|
|
|
$
|
0.54
|
|
|
|
Diluted net income
per
share of Class A and B
common stock
|
|
$
|
0.23
|
|
|
|
|
$
|
0.24
|
|
|
|
|
$
|
0.45
|
|
|
|
|
$
|
0.53
|
|
|
|
Diluted net income
per
share of Class C common
stock
|
|
$
|
0.23
|
|
|
|
|
$
|
0.24
|
|
|
|
|
$
|
0.71
|
|
|
|
|
$
|
0.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding Class A and B common stock
|
Basic
|
|
218,220
|
|
|
|
|
215,948
|
|
|
|
|
217,707
|
|
|
|
|
215,498
|
|
|
|
Diluted
|
|
222,802
|
|
|
|
|
221,307
|
|
|
|
|
221,983
|
|
|
|
|
220,868
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding Class C common stock
|
Basic
|
|
220,040
|
|
|
|
|
215,948
|
|
|
|
|
218,623
|
|
|
|
|
215,498
|
|
|
|
Diluted
|
|
224,777
|
|
|
|
|
221,307
|
|
|
|
|
222,922
|
|
|
|
|
220,868
|
|
|
|
Under Armour,
Inc.
|
For the Quarter and
Year Ended December 31, 2016 and 2015
|
(Unaudited; in
thousands)
|
NET REVENUES BY
PRODUCT CATEGORY
|
|
|
|
Quarter Ended
December 31,
|
|
Year Ended December
31,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
Apparel
|
|
$
|
928,546
|
|
|
$
|
864,841
|
|
|
7.4
|
%
|
|
$
|
3,229,142
|
|
|
$
|
2,801,062
|
|
|
15.3
|
%
|
Footwear
|
|
227,701
|
|
|
166,880
|
|
|
36.4
|
%
|
|
1,013,544
|
|
|
677,744
|
|
|
49.5
|
%
|
Accessories
|
|
104,348
|
|
|
97,130
|
|
|
7.4
|
%
|
|
406,614
|
|
|
346,885
|
|
|
17.2
|
%
|
Total net
sales
|
|
1,260,595
|
|
|
1,128,851
|
|
|
11.7
|
%
|
|
4,649,300
|
|
|
3,825,691
|
|
|
21.5
|
%
|
Licensing
revenues
|
|
29,926
|
|
|
24,852
|
|
|
20.4
|
%
|
|
99,849
|
|
|
84,207
|
|
|
18.6
|
%
|
Connected
Fitness
|
|
18,267
|
|
|
16,983
|
|
|
7.6
|
%
|
|
80,447
|
|
|
53,415
|
|
|
50.6
|
%
|
Intersegment
eliminations
|
|
(660)
|
|
|
—
|
|
|
(100.0)
|
%
|
|
(1,410)
|
|
|
—
|
|
|
(100.0)
|
%
|
Total net
revenues
|
|
$
|
1,308,128
|
|
|
$
|
1,170,686
|
|
|
11.7
|
%
|
|
$
|
4,828,186
|
|
|
$
|
3,963,313
|
|
|
21.8
|
%
|
NET REVENUES BY
SEGMENT
|
|
|
|
Quarter Ended
December 31,
|
|
Year Ended December
31,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
North
America
|
|
$
|
1,075,251
|
|
|
$
|
1,015,009
|
|
|
5.9
|
%
|
|
$
|
4,008,165
|
|
|
$
|
3,455,737
|
|
|
16.0
|
%
|
International
|
|
215,270
|
|
|
138,694
|
|
|
55.2
|
%
|
|
740,984
|
|
|
454,161
|
|
|
63.2
|
%
|
Connected
Fitness
|
|
18,267
|
|
|
16,983
|
|
|
7.6
|
%
|
|
80,447
|
|
|
53,415
|
|
|
50.6
|
%
|
Intersegment
eliminations
|
|
(660)
|
|
|
—
|
|
|
(100.0)
|
%
|
|
(1,410)
|
|
|
—
|
|
|
(100.0)
|
%
|
Total net
revenues
|
|
$
|
1,308,128
|
|
|
$
|
1,170,686
|
|
|
11.7
|
%
|
|
$
|
4,828,186
|
|
|
$
|
3,963,313
|
|
|
21.8
|
%
|
OPERATING INCOME
(LOSS) BY SEGMENT
|
|
|
|
Quarter Ended
December 31,
|
|
Year Ended December
31,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
North
America
|
|
$
|
160,191
|
|
|
$
|
188,418
|
|
|
(15.0)
|
%
|
|
$
|
411,275
|
|
|
$
|
460,961
|
|
|
(10.8)
|
%
|
International
|
|
10,870
|
|
|
2,761
|
|
|
293.7
|
%
|
|
45,867
|
|
|
8,887
|
|
|
416.1
|
%
|
Connected
Fitness
|
|
$
|
(4,311)
|
|
|
$
|
(13,597)
|
|
|
68.3
|
%
|
|
$
|
(36,820)
|
|
|
$
|
(61,301)
|
|
|
39.9
|
%
|
Income from
operations
|
|
$
|
166,750
|
|
|
$
|
177,582
|
|
|
(6.1)
|
%
|
|
$
|
420,322
|
|
|
$
|
408,547
|
|
|
2.9
|
%
|
Under Armour,
Inc.
|
As of
December 31, 2016 and December 31, 2015
|
(Unaudited; in
thousands)
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
As of
12/31/16
|
|
As of
12/31/15
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
250,470
|
|
|
$
|
129,852
|
|
Accounts receivable,
net
|
|
625,536
|
|
|
433,638
|
|
Inventories
|
|
917,491
|
|
|
783,031
|
|
Prepaid expenses and
other current assets
|
|
183,393
|
|
|
152,242
|
|
Total current
assets
|
|
1,976,890
|
|
|
1,498,763
|
|
Property and
equipment, net
|
|
804,211
|
|
|
538,531
|
|
Goodwill
|
|
563,591
|
|
|
585,181
|
|
Intangible assets,
net
|
|
64,310
|
|
|
75,686
|
|
Deferred income
taxes
|
|
135,692
|
|
|
92,157
|
|
Other long term
assets
|
|
110,204
|
|
|
78,582
|
|
Total
assets
|
|
$
|
3,654,898
|
|
|
$
|
2,868,900
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Accounts
payable
|
|
418,565
|
|
|
200,460
|
|
Accrued
expenses
|
|
208,750
|
|
|
192,935
|
|
Current maturities of
long term debt
|
|
27,000
|
|
|
42,000
|
|
Other current
liabilities
|
|
40,387
|
|
|
43,415
|
|
Total current
liabilities
|
|
694,702
|
|
|
478,810
|
|
Long term debt, net
of current maturities
|
|
790,388
|
|
|
627,000
|
|
Other long term
liabilities
|
|
137,227
|
|
|
94,868
|
|
Total
liabilities
|
|
1,622,317
|
|
|
1,200,678
|
|
Total stockholders'
equity
|
|
2,032,581
|
|
|
1,668,222
|
|
Total liabilities
and stockholders' equity
|
|
$
|
3,654,898
|
|
|
$
|
2,868,900
|
|
Under Armour,
Inc.
|
For the Year Ended
December 31, 2016 and 2015
|
(Unaudited; in
thousands)
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
Year Ended December
31,
|
|
2016
|
|
2015
|
Cash flows from
operating activities
|
|
|
|
Net income
|
$
|
258,660
|
|
|
$
|
232,573
|
|
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities
|
|
|
|
Depreciation and
amortization
|
144,770
|
|
|
100,940
|
|
Unrealized foreign
currency exchange rate losses
|
12,627
|
|
|
33,359
|
|
Loss on disposal of
property and equipment
|
1,580
|
|
|
549
|
|
Stock-based
compensation
|
46,149
|
|
|
60,376
|
|
Deferred income
taxes
|
(41,834)
|
|
|
(4,426)
|
|
Changes in reserves
and allowances
|
67,337
|
|
|
40,391
|
|
Changes in operating
assets and liabilities, net of effects of acquisitions:
|
|
|
|
Accounts
receivable
|
(249,853)
|
|
|
(191,876)
|
|
Inventories
|
(148,055)
|
|
|
(278,524)
|
|
Prepaid expenses and
other assets
|
(34,170)
|
|
|
(76,476)
|
|
Accounts
payable
|
211,332
|
|
|
(22,583)
|
|
Accrued expenses and
other liabilities
|
52,656
|
|
|
64,126
|
|
Income taxes payable
and receivable
|
(16,712)
|
|
|
(2,533)
|
|
Net cash provided by
(used in) operating activities
|
304,487
|
|
|
(44,104)
|
|
Cash flows from
investing activities
|
|
|
|
Purchases of property
and equipment
|
(316,458)
|
|
|
(298,928)
|
|
Purchases of property
and equipment from related parties
|
(70,288)
|
|
|
—
|
|
Purchase of
businesses, net of cash acquired
|
—
|
|
|
(539,460)
|
|
Purchases of
available-for-sale securities
|
(24,230)
|
|
|
(103,144)
|
|
Sales of
available-for-sale securities
|
30,712
|
|
|
96,610
|
|
Purchases of other
assets
|
(875)
|
|
|
(2,553)
|
|
Net cash used in
investing activities
|
(381,139)
|
|
|
(847,475)
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from long
term debt and revolving credit facility
|
1,327,601
|
|
|
650,000
|
|
Payments on long term
debt and revolving credit facility
|
(1,170,750)
|
|
|
(265,202)
|
|
Excess tax benefits
from stock-based compensation arrangements
|
44,783
|
|
|
45,917
|
|
Proceeds from
exercise of stock options and other stock issuances
|
15,485
|
|
|
10,310
|
|
Payments of debt
financing costs
|
(6,692)
|
|
|
(947)
|
|
Cash dividends
paid
|
(2,927)
|
|
|
—
|
|
Contingent
consideration payments for acquisitions
|
(1,505)
|
|
|
—
|
|
Net cash provided by
financing activities
|
205,995
|
|
|
440,078
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(8,725)
|
|
|
(11,822)
|
|
Net increase
(decrease) in cash and cash equivalents
|
120,618
|
|
|
(463,323)
|
|
Cash and cash
equivalents
|
|
|
|
Beginning of
period
|
129,852
|
|
|
593,175
|
|
End of
period
|
$
|
250,470
|
|
|
$
|
129,852
|
|
Under Armour,
Inc.
|
For the Quarter and
Year Ended December 31, 2016 and 2015
|
(Unaudited)
|
The tables below
present the reconciliation of non-GAAP financial measures to the
most directly
comparable financial measures calculated in accordance with GAAP.
See "Non-GAAP Financial
Information" above for further information regarding the Company's
use of non-GAAP financial measures.
|
CURRENCY NEUTRAL
NET REVENUE GROWTH RECONCILIATION
|
|
|
|
Quarter Ended
December 31,
|
|
Year Ended
December 31,
|
Total Net
Revenue
|
|
2016
|
|
2016
|
Net revenue growth -
GAAP
|
|
11.7
|
%
|
|
21.8
|
%
|
Foreign exchange
impact
|
|
0.6
|
%
|
|
1.2
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
12.3
|
%
|
|
23.0
|
%
|
|
|
|
|
|
North
America
|
|
|
|
|
Net revenue growth -
GAAP
|
|
5.9
|
%
|
|
16.0
|
%
|
Foreign exchange
impact
|
|
0.1
|
%
|
|
—
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
6.0
|
%
|
|
16.0
|
%
|
|
|
|
|
|
International
|
|
|
|
|
Net revenue growth -
GAAP
|
|
55.2
|
%
|
|
63.2
|
%
|
Foreign exchange
impact
|
|
4.8
|
%
|
|
5.8
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
60.0
|
%
|
|
69.0
|
%
|
|
|
|
|
|
Connected
Fitness
|
|
|
|
|
Net revenue growth -
GAAP
|
|
7.6
|
%
|
|
50.6
|
%
|
Foreign exchange
impact
|
|
(3.6)
|
%
|
|
(1.6)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
4.0
|
%
|
|
49.0
|
%
|
NON-GAAP DILUTIVE
EPS RECONCILIATION
|
|
|
Year ended December
31, 2016
|
|
|
|
GAAP
|
|
Adjustment
|
|
Non-GAAP
|
Net income
|
$
|
258,660
|
|
|
$
|
—
|
|
|
$
|
258,660
|
|
Adjustment payment to
Class C capital stockholders
|
(59,000)
|
|
|
59,000
|
(a)
|
|
—
|
|
Net income
Attributable to Common Shareholders
|
$
|
199,660
|
|
|
$
|
59,000
|
|
|
$
|
258,660
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding Class A and B
common stock - Diluted
|
221,983
|
|
|
—
|
|
|
221,983
|
|
Weighted average
common shares outstanding Class C common stock - Diluted
|
222,922
|
|
|
(750)
|
(a)
|
|
222,172
|
|
|
|
|
|
|
|
Diluted net income
per share of Class A and B common stock
|
$
|
0.45
|
|
|
|
|
$
|
0.58
|
|
Diluted net income
per share of Class C common stock
|
$
|
0.71
|
|
|
|
|
$
|
0.58
|
|
|
(a) To eliminate
dividend paid to class C common shareholders.
|
BRAND HOUSE AND
FACTORY HOUSE DOOR COUNT
|
|
|
|
As of December
31
|
|
|
2016
|
|
2015
|
Factory
House
|
|
151
|
|
140
|
Brand
House
|
|
18
|
|
10
|
North
America total doors
|
|
169
|
|
150
|
|
|
|
|
|
Factory
House
|
|
37
|
|
18
|
Brand
House
|
|
35
|
|
22
|
International total doors
|
|
72
|
|
40
|
|
|
|
|
|
Factory
House
|
|
188
|
|
158
|
Brand
House
|
|
53
|
|
32
|
Total
doors
|
|
241
|
|
190
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/under-armour-reports-fourth-quarter-and-full-year-results-announces-outlook-for-2017-300399371.html
SOURCE Under Armour, Inc.