BALTIMORE, May 1, 2018 /PRNewswire/ -- Under Armour,
Inc. (NYSE: UA, UAA) today announced financial results for the
first quarter ended March 31, 2018.
The company reports its financial performance in accordance with
accounting principles generally accepted in the United States of America ("GAAP"). This
press release refers to "currency neutral" and "adjusted" amounts,
which are non-GAAP financial measures described below under the
"Non-GAAP Financial Information" paragraph. References to adjusted
financial measures exclude the impact of the company's
restructuring plans. Reconciliations of non-GAAP amounts to the
most directly comparable financial measure calculated in accordance
with GAAP are presented in supplemental financial information
furnished with this release. All per share amounts are reported on
a diluted basis.
"Our first quarter results demonstrate measured progress against
our focus on operational excellence and becoming a better company,"
said Under Armour Chairman and CEO Kevin
Plank. "As we continue to build our global brand by
delivering innovative performance products to our athletes,
amplifying our story, further strengthening our go-to-market
process, and leveraging our systems to create even deeper consumer
connections - we remain confident in our ability to deliver on our
full year targets."
The summary below provides both GAAP and adjusted non-GAAP
financial measures. On February 13,
the company announced a 2018 restructuring plan, which detailed
expectations to incur total estimated pre-tax restructuring and
related charges of approximately $110
million to $130 million. In
the first quarter, we recognized pre-tax costs totaling
$45 million consisting of
$32 million in cash related charges
and $13 million in non-cash charges.
Adjusted financial measures exclude the impact of the restructuring
and other related charges and the related tax effects.
First Quarter Review
- Revenue was up 6 percent to $1.2
billion (up 4 percent currency neutral).
-
- Revenue to wholesale customers increased 1 percent to
$779 million and direct-to-consumer
revenue was up 17 percent to $352
million. The direct-to-consumer business represented 30
percent of global revenue in the quarter.
- North America revenue was
relatively flat (down 1 percent currency neutral) and the
international business continued to deliver strong growth with a 27
percent increase (up 19 percent currency neutral), representing 24
percent of total revenue. Within the international business,
revenue in EMEA was up 23 percent (up 13 percent currency neutral),
up 35 percent in Asia-Pacific (up
28 percent currency neutral) and up 21 percent in Latin America (up 14 percent currency
neutral).
- Apparel revenue increased 7 percent to $766 million, driven by strength in men's
training. Footwear revenue was up 1 percent to $272 million with strength in running tempered by
team sports and global football. Accessories revenue increased 3
percent to $92 million led by men's
training.
- Gross margin declined 120 basis points to 44.2 percent
as benefits from changes in foreign currency rates were more than
offset by accelerated inventory management initiatives. Adjusted
gross margin, which excludes an $8
million impact related to restructuring efforts, was 44.8
percent, a decrease of 60 basis points compared to the prior
year.
- Selling, General & Administrative expenses increased
3 percent to $515 million, or 43.4
percent of revenue driven by continued investments in the
direct-to-consumer, footwear and international businesses.
- Restructuring and impairment charges were $37 million.
- Operating loss was $29
million. Adjusted operating income was $16 million.
- Net loss was $30 million.
Excluding the impact of the restructuring plan, adjusted net
income was $1 million.
- Diluted earnings per share was negative $0.07. Adjusted diluted earnings per
share was $0.00.
- Inventory increased 27 percent to $1.1 billion.
- Cash and cash equivalents increased 65 percent to
$284 million.
Updated Fiscal 2018 Outlook
There are no changes to the company's full year 2018 outlook
provided on February 13, 2018:
- Net revenue is expected to be up at a low single-digit
percentage rate reflecting a mid-single-digit decline in
North America and international
growth of greater than 25 percent.
- Gross margin is expected to increase approximately 50
basis points to 45.5 percent due to benefits from lower planned
promotional activity, product costs, channel mix and changes in
foreign currency.
- Operating income is expected to reach $20 million to $30
million. Excluding the impact of continued restructuring
efforts, adjusted operating income is expected to be
$130 million to $160 million.
- Interest and other expense net is planned at
approximately $45 million.
- Excluding the impact of the restructuring efforts,
adjusted diluted earnings per share is expected to be in the
range of $0.14 to $0.19; and,
- Capital expenditures are planned at approximately
$225 million compared with
$275 million in 2017.
Conference Call and Webcast
Under Armour will hold its first quarter 2018 conference call
and webcast today at approximately 8:30 a.m.
Eastern Time. The call will be webcast live at
http://investor.underarmour.com and will be archived and available
for replay approximately three hours after the live event.
Non-GAAP Financial Information
This press release refers to "currency neutral" and "adjusted"
results as well as "adjusted" forward looking estimates of the
company's fiscal 2018 outlook. Currency neutral financial
information is calculated to exclude the impact of changes in
foreign currency. Management believes this information is useful to
investors to facilitate a comparison of the company's results of
operations period-over-period. Adjusted gross margin, adjusted
operating income, adjusted net income and adjusted diluted earnings
per share exclude the impact of restructuring and other related
charges. Management believes this information is useful to
investors because it provides enhanced visibility into the
company's actual and expected underlying results excluding the
impact of its restructuring plans. 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. Additionally,
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, Inc., headquartered in Baltimore, Maryland is a leading inventor,
marketer and distributor of branded performance athletic apparel,
footwear and accessories. Designed to make all athletes better, the
brand's innovative products are sold worldwide to consumers with
active lifestyles. The company's Connected Fitness™
platform powers the world's largest digitally
connected health and fitness community. For further
information, please visit 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, our
anticipated charges and restructuring costs and the timing of these
measures, the development and introduction of new products, the
implementation of our marketing and branding strategies, and the
future benefits and opportunities from significant investments. 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; changes to the financial health
of our customers; our ability to successfully execute our long-term
strategies; our ability to successfully execute any restructuring
plans and realize expected benefits; our ability to effectively
drive operational efficiency in our business; our ability to manage
the increasingly complex operations of our global business; our
ability to comply with existing trade and other regulations, and
the potential impact of new trade and tax regulations on our
profitability; 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; any disruptions, delays or
deficiencies in the design, implementation or application of our
new global operating and financial reporting information technology
system; increased competition causing us to lose market share or
reduce the prices of our products or to increase significantly our
marketing efforts; 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; our
ability to successfully manage or realize expected results from
acquisitions and other significant investments or capital
expenditures; risks related to foreign currency exchange rate
fluctuations; our ability to effectively market and maintain a
positive brand image; the availability, integration and effective
operation of information systems and other technology, as well as
any potential interruption of such systems or technology; risks
related to data security or privacy breaches, including the 2018
data security issue related to our Connected Fitness business; 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 key talent 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 Ended
and Three Months Ended March 31, 2018 and 2017
|
(Unaudited; in
thousands, except per share amounts)
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
Quarter Ended March
31,
|
|
|
2018
|
|
% of Net
Revenues
|
|
2017
|
|
% of Net
Revenues
|
Net
revenues
|
|
$
|
1,185,370
|
|
|
100.0
|
%
|
|
$
|
1,119,844
|
|
|
100.0
|
%
|
Cost of goods
sold
|
|
661,917
|
|
|
55.8
|
%
|
|
611,908
|
|
|
54.6
|
%
|
Gross
Profit
|
|
523,453
|
|
|
44.2
|
%
|
|
507,936
|
|
|
45.4
|
%
|
Selling, general and
administrative expenses
|
|
514,634
|
|
|
43.4
|
%
|
|
500,400
|
|
|
44.7
|
%
|
Restructuring and
impairment charges
|
|
37,480
|
|
|
3.2
|
%
|
|
—
|
|
|
—
|
%
|
Income (loss) from
operations
|
|
(28,661)
|
|
|
(2.4)
|
%
|
|
7,536
|
|
|
0.7
|
%
|
Interest expense,
net
|
|
(8,564)
|
|
|
(0.7)
|
%
|
|
(7,820)
|
|
|
(0.7)
|
%
|
Other income,
net
|
|
2,888
|
|
|
0.2
|
%
|
|
2,570
|
|
|
0.2
|
%
|
Income (loss)
before income taxes
|
|
(34,337)
|
|
|
(2.9)
|
%
|
|
2,286
|
|
|
0.2
|
%
|
Income tax expense
(benefit)
|
|
(4,093)
|
|
|
(0.3)
|
%
|
|
4,558
|
|
|
0.4
|
%
|
Net
loss
|
|
(30,244)
|
|
|
(2.6)
|
%
|
|
(2,272)
|
|
|
(0.2)
|
%
|
|
|
|
|
|
|
|
|
|
Basic net loss per
share of Class A, B and C common stock
|
|
$
|
(0.07)
|
|
|
|
|
$
|
(0.01)
|
|
|
|
Diluted net loss per
share of Class A, B and C common stock
|
|
$
|
(0.07)
|
|
|
|
|
$
|
(0.01)
|
|
|
|
Weighted average
common shares outstanding Class A, B and C common
stock
|
Basic
|
|
443,052
|
|
|
|
|
439,360
|
|
|
|
Diluted
|
|
443,052
|
|
|
|
|
439,360
|
|
|
|
Under Armour,
Inc.
|
For the Quarter Ended
and Three Months Ended March 31, 2018 and 2017
|
(Unaudited; in
thousands)
|
|
NET REVENUES BY
PRODUCT CATEGORY
|
|
|
|
Quarter Ended March
31,
|
|
|
2018
|
|
2017
|
|
% Change
|
Apparel
|
|
$
|
766,275
|
|
|
$
|
715,437
|
|
|
7.1
|
%
|
Footwear
|
|
271,770
|
|
|
269,659
|
|
|
0.8
|
%
|
Accessories
|
|
92,158
|
|
|
89,097
|
|
|
3.4
|
%
|
Total net
sales
|
|
1,130,203
|
|
|
1,074,193
|
|
|
5.2
|
%
|
Licensing
revenues
|
|
26,341
|
|
|
24,205
|
|
|
8.8
|
%
|
Connected
Fitness
|
|
28,826
|
|
|
21,446
|
|
|
34.4
|
%
|
Total net
revenues
|
|
$
|
1,185,370
|
|
|
$
|
1,119,844
|
|
|
5.9
|
%
|
|
NET REVENUES BY
SEGMENT
|
|
|
|
Quarter Ended March
31,
|
|
|
2018
|
|
2017
|
|
% Change
|
North
America
|
|
$
|
867,545
|
|
|
$
|
871,271
|
|
|
(0.4)%
|
|
EMEA
|
|
126,932
|
|
|
102,855
|
|
|
23.4
|
%
|
Asia-Pacific
|
|
115,553
|
|
|
85,818
|
|
|
34.6
|
%
|
Latin
America
|
|
46,514
|
|
|
38,454
|
|
|
21.0
|
%
|
Connected
Fitness
|
|
28,826
|
|
|
21,446
|
|
|
34.4
|
%
|
Total net
revenues
|
|
$
|
1,185,370
|
|
|
$
|
1,119,844
|
|
|
5.9
|
%
|
|
INCOME (LOSS) FROM
OPERATIONS
|
|
|
|
Quarter Ended March
31,
|
|
|
2018
|
|
2017
|
|
% Change
|
North
America
|
|
$
|
(43,495)
|
|
|
$
|
3,714
|
|
|
(1,271.1)
|
%
|
EMEA
|
|
(3,627)
|
|
|
1,629
|
|
|
(322.7)
|
%
|
Asia-Pacific
|
|
21,241
|
|
|
19,628
|
|
|
8.2
|
%
|
Latin
America
|
|
(5,870)
|
|
|
(7,859)
|
|
|
25.3
|
%
|
Connected
Fitness
|
|
3,090
|
|
|
(9,576)
|
|
|
132.3
|
%
|
Income (loss) from
operations
|
|
$
|
(28,661)
|
|
|
$
|
7,536
|
|
|
(480.3)
|
%
|
Under Armour,
Inc.
|
As of March 31,
2018, December 31, 2017 and March 31, 2017
|
(Unaudited; in
thousands)
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
March 31,
2018
|
|
December 31,
2017
|
|
March 31,
2017
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
283,644
|
|
|
$
|
312,483
|
|
|
$
|
172,128
|
|
Accounts receivable,
net
|
|
805,413
|
|
|
609,670
|
|
|
629,235
|
|
Inventories
|
|
1,148,493
|
|
|
1,158,548
|
|
|
901,613
|
|
Prepaid expenses and
other current assets
|
|
354,455
|
|
|
256,978
|
|
|
203,052
|
|
Total current
assets
|
|
2,592,005
|
|
|
2,337,679
|
|
|
1,906,028
|
|
Property and
equipment, net
|
|
870,120
|
|
|
885,774
|
|
|
830,539
|
|
Goodwill
|
|
565,201
|
|
|
555,674
|
|
|
571,381
|
|
Intangible assets,
net
|
|
45,931
|
|
|
46,995
|
|
|
61,986
|
|
Deferred income
taxes
|
|
92,607
|
|
|
82,801
|
|
|
121,108
|
|
Other long term
assets
|
|
98,455
|
|
|
97,444
|
|
|
86,118
|
|
Total
assets
|
|
$
|
4,264,319
|
|
|
$
|
4,006,367
|
|
|
$
|
3,577,160
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Revolving credit
facility, current
|
|
$
|
135,000
|
|
|
$
|
125,000
|
|
|
$
|
50,000
|
|
Accounts
payable
|
|
470,378
|
|
|
561,108
|
|
|
294,857
|
|
Accrued
expenses
|
|
276,888
|
|
|
296,841
|
|
|
217,310
|
|
Customer refund
liability
|
|
353,020
|
|
|
—
|
|
|
—
|
|
Current maturities of
long term debt
|
|
27,000
|
|
|
27,000
|
|
|
27,000
|
|
Other current
liabilities
|
|
54,771
|
|
|
50,426
|
|
|
38,372
|
|
Total current
liabilities
|
|
1,317,057
|
|
|
1,060,375
|
|
|
627,539
|
|
Long term debt, net
of current maturities
|
|
758,705
|
|
|
765,046
|
|
|
784,052
|
|
Other long term
liabilities
|
|
170,825
|
|
|
162,304
|
|
|
145,536
|
|
Total
liabilities
|
|
2,246,587
|
|
|
1,987,725
|
|
|
1,557,127
|
|
Total stockholders'
equity
|
|
2,017,732
|
|
|
2,018,642
|
|
|
2,020,033
|
|
Total liabilities
and stockholders' equity
|
|
$
|
4,264,319
|
|
|
$
|
4,006,367
|
|
|
$
|
3,577,160
|
|
For the Quarter Ended
and Three Months Ended March 31, 2018 and 2017
|
(Unaudited; in
thousands)
|
CONSOLIDATED
STATEMENT OF CASH FLOWS
|
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
Cash flows from
operating activities
|
|
|
|
Net loss
|
$
|
(30,244)
|
|
|
$
|
(2,272)
|
|
Adjustments to
reconcile net loss to net cash provided by (used) in operating
activities
|
|
|
|
Depreciation and
amortization
|
46,098
|
|
|
41,013
|
|
Unrealized foreign
currency exchange rate gains
|
(5,030)
|
|
|
(8,313)
|
|
Loss on disposal of
property and equipment
|
159
|
|
|
556
|
|
Impairment
charges
|
2,248
|
|
|
—
|
|
Amortization of bond
premium
|
63
|
|
|
63
|
|
Stock-based
compensation
|
8,137
|
|
|
12,082
|
|
Excess tax deficiency
from stock-based compensation arrangements
|
—
|
|
|
(1,258)
|
|
Deferred income
taxes
|
(10,645)
|
|
|
15,905
|
|
Changes in reserves
and allowances
|
(251,194)
|
|
|
(21,187)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
53,703
|
|
|
21,261
|
|
Inventories
|
16,697
|
|
|
19,084
|
|
Prepaid expenses and
other assets
|
(83,917)
|
|
|
(6,588)
|
|
Other non-current
assets
|
(731)
|
|
|
—
|
|
Accounts
payable
|
(66,894)
|
|
|
(90,982)
|
|
Accrued expenses and
other liabilities
|
(3,933)
|
|
|
7,253
|
|
Customer refund
liability
|
350,312
|
|
|
—
|
|
Income taxes payable
and receivable
|
(2,805)
|
|
|
(19,169)
|
|
Net cash provided by
(used in) operating activities
|
22,024
|
|
|
(32,552)
|
|
Cash flows from
investing activities
|
|
|
|
Purchases of property
and equipment
|
(55,930)
|
|
|
(91,790)
|
|
Net cash used in
investing activities
|
(55,930)
|
|
|
(91,790)
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from long
term debt and revolving credit facility
|
165,000
|
|
|
200,000
|
|
Payments on long term
debt and revolving credit facility
|
(161,750)
|
|
|
(156,750)
|
|
Employee taxes paid
for shares withheld for income taxes
|
(1,759)
|
|
|
(2,474)
|
|
Proceeds from
exercise of stock options and other stock issuances
|
2,319
|
|
|
2,782
|
|
Payments of debt
financing costs
|
(11)
|
|
|
—
|
|
Net cash provided by
financing activities
|
3,799
|
|
|
43,558
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
2,157
|
|
|
3,452
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
(27,950)
|
|
|
(77,332)
|
|
Cash, cash
equivalents and restricted cash
|
|
|
|
Beginning of
period
|
318,135
|
|
|
252,725
|
|
End of
period
|
$
|
290,185
|
|
|
$
|
175,393
|
|
Under Armour,
Inc.
|
For the Quarter Ended
March 31, 2018
|
(Unaudited)
|
|
The table below
presents the reconciliation of net revenue growth calculated in
accordance with GAAP to currency neutral net revenue which is a
non-GAAP measure. See "Non-GAAP Financial Information" above for
further information regarding the Company's use of non-GAAP
financial measures.
|
|
CURRENCY NEUTRAL
NET REVENUE GROWTH/(DECLINE) RECONCILIATION
|
|
|
|
Quarter Ended
March 31, 2018
|
Total Net
Revenue
|
|
|
Net revenue growth -
GAAP
|
|
5.9
|
%
|
Foreign exchange
impact
|
|
(2.1)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
3.8
|
%
|
|
|
|
North
America
|
|
|
Net revenue decline -
GAAP
|
|
(0.4)
|
%
|
Foreign exchange
impact
|
|
(0.4)
|
%
|
Currency neutral net
revenue decline - Non-GAAP
|
|
(0.8)
|
%
|
|
|
|
EMEA
|
|
|
Net revenue growth -
GAAP
|
|
23.4
|
%
|
Foreign exchange
impact
|
|
(10.3)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
13.1
|
%
|
|
|
|
Asia-Pacific
|
|
|
Net
revenue growth - GAAP
|
|
34.6
|
%
|
Foreign exchange
impact
|
|
(7.0)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
27.6
|
%
|
|
|
|
Latin
America
|
|
|
Net revenue growth -
GAAP
|
|
21.0
|
%
|
Foreign exchange
impact
|
|
(6.6)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
14.4
|
%
|
|
|
|
Total
International
|
|
|
Net revenue growth -
GAAP
|
|
27.2
|
%
|
Foreign exchange
impact
|
|
(8.4)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
18.8
|
%
|
Under Armour,
Inc.
|
For the Quarter Ended
March 31, 2018
|
(Unaudited)
|
|
The table below
presents the reconciliation of the Company's consolidated statement
of operations presented in accordance with GAAP to certain adjusted
non-GAAP financial measures discussed in this press release. See
"Non-GAAP Financial Information" above for further information
regarding the Company's use of non-GAAP financial
measures.
|
|
Quarter Ended
March 31, 2018
|
|
|
GAAP
|
|
Impact of
Restructuring Plan
|
|
Adjusted
(Non-GAAP)
|
Net
revenues
|
|
$
|
1,185,370
|
|
|
$
|
—
|
|
|
$
|
1,185,370
|
|
Cost of goods
sold
|
|
661,917
|
|
|
(7,474)
|
|
|
654,443
|
|
Gross
Profit
|
|
523,453
|
|
|
7,474
|
|
|
530,927
|
|
Gross
Margin
|
|
44.2
|
%
|
|
0.6
|
%
|
|
44.8
|
%
|
Selling, general and
administrative expenses
|
|
514,634
|
|
|
—
|
|
|
514,634
|
|
Restructuring and
impairment charges
|
|
37,480
|
|
|
(37,480)
|
|
|
—
|
|
Income (loss) from
operations
|
|
(28,661)
|
|
|
44,954
|
|
|
16,293
|
|
Interest expense,
net
|
|
(8,564)
|
|
|
—
|
|
|
(8,564)
|
|
Other income,
net
|
|
2,888
|
|
|
—
|
|
|
2,888
|
|
Income (loss) before
income taxes
|
|
(34,337)
|
|
|
44,954
|
|
|
10,617
|
|
Income tax expense
(benefit)
|
|
(4,093)
|
|
|
13,942
|
|
|
9,849
|
|
Effective Income Tax
Rate
|
|
11.9
|
%
|
|
80.9
|
%
|
|
92.8
|
%
|
Net income
(loss)
|
|
$
|
(30,244)
|
|
|
$
|
31,012
|
|
|
$
|
768
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) per share of Class A, B and C common stock
|
|
$
|
(0.07)
|
|
|
$
|
0.07
|
|
|
$
|
—
|
|
Under Armour,
Inc.
|
Outlook For the Year
Ending December 31, 2018
|
|
The tables below
present the reconciliation of the Company's fiscal 2018 outlook for
income from operations calculated in accordance with GAAP to
adjusted operating income. This adjusted amount is a non-GAAP
financial measures. See "Non-GAAP Financial Information" above for
further information regarding the Company's use of non-GAAP
financial measures.
|
|
ADJUSTED OPERATING
INCOME RECONCILIATION
|
|
|
|
Year Ending December
31, 2018
|
(in
millions)
|
|
Low End
|
|
High End
|
Income from
operations
|
|
$
|
20
|
|
|
$
|
30
|
|
Add: Estimated impact
of restructuring(1)
|
|
110
|
|
|
110
|
|
Adjusted operating
income
|
|
$
|
130
|
|
|
$
|
140
|
|
|
(1) The estimated
impact of restructuring plan presented above assumes the low end of
the Company's estimated range of 2018 restructuring and related
charges.
|
The company is not able to provide a reconciliation of the
non-GAAP adjusted effective tax rate or adjusted diluted earnings
per share to the GAAP effective tax rate or diluted earnings per
share for its 2018 outlook. As a result of the 2018 restructuring
plan, the company's GAAP net income for fiscal year 2018 is
expected to be insignificant, and therefore the GAAP effective tax
rate is subject to significant variability. Given this variability,
the company cannot provide a meaningful outlook of the GAAP
effective tax rate or diluted earnings per share without
unreasonable effort. These non-GAAP measures exclude the
impact of the 2018 restructuring plan.
BRAND HOUSE AND
FACTORY HOUSE DOOR COUNT
|
|
|
|
As of March 31,
2018
|
|
|
2018
|
|
2017
|
Factory
House
|
|
160
|
|
150
|
Brand
House
|
|
18
|
|
18
|
North
America total doors
|
|
178
|
|
168
|
|
|
|
|
|
Factory
House
|
|
57
|
|
38
|
Brand
House
|
|
62
|
|
39
|
International total doors
|
|
119
|
|
77
|
|
|
|
|
|
Factory
House
|
|
217
|
|
188
|
Brand
House
|
|
80
|
|
57
|
Total
doors
|
|
297
|
|
245
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/under-armour-reports-first-quarter-results-300639592.html
SOURCE Under Armour, Inc.