BALTIMORE, Nov. 2, 2021 /PRNewswire/ -- Under Armour,
Inc. (NYSE: UA, UAA) today announced unaudited financial results
for the third quarter ended Sept. 30,
2021. 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.
"Our third-quarter results were driven by strong demand for
the Under Armour brand and our ability to execute quickly to meet
the needs of our consumers and customers," said Under Armour
President and CEO Patrik Frisk.
"With industry-leading innovations, increased marketing efforts to
deepen our connection with Focused Performers, and consistent
operational discipline – we're building greater brand affinity and
are on track to deliver record revenue and earnings results in
2021."
Third Quarter 2021 Review
- Revenue was up 8 percent to $1.5
billion (up 6 percent currency neutral) compared to the
prior year.
-
- Wholesale revenue increased 10 percent to $911 million and direct-to-consumer revenue
increased 12 percent to $604 million,
driven by a strong performance in owned and operated stores offset
by a 4 percent decline in eCommerce, which represented 33 percent
of the total direct-to-consumer business.
- North America revenue
increased 8 percent to $1.0 billion
and international revenue increased 18 percent to $510 million (up 13 percent currency neutral).
Within the international business, revenue increased 19 percent in
Asia-Pacific (up 13 percent
currency neutral), increased 15 percent in EMEA (up 11 percent
currency neutral), and increased 27 percent in Latin America (up 20 percent currency
neutral).
- Apparel revenue increased 14 percent to $1.1 billion. Footwear revenue increased 10
percent to $330 million. Accessories
revenue decreased 13 percent to $126
million.
- Gross margin increased 310 basis points to 51.0 percent,
driven by benefits from pricing and channel mix, offset by the
absence of MyFitnessPal and supply chain headwinds.
- Sales, general & administrative expenses increased 8
percent to $599 million.
- Restructuring charges were $17
million.
- Operating income was $172
million. Adjusted operating income was
$189 million.
- Net income was $113
million. Adjusted net income was $145 million.
- Diluted earnings per share was $0.24. Adjusted diluted earnings per share
was $0.31.
- Inventory was down 21 percent to $838 million.
- Cash and Cash Equivalents were $1.3 billion at the end of the quarter, and no
borrowings were outstanding under the company's $1.1 billion revolving credit facility.
Updated 2021 Outlook
Key points related to Under Armour's full-year 2021 outlook
include:
- Revenue is expected to be up approximately 25 percent
compared to the previous expectation of a low-twenties percentage
increase, reflecting a high-twenties percentage growth rate in
North America and a mid-thirties
percentage growth rate in the international business.
- Gross margin is expected to increase approximately 130
basis points compared to the previous expectation of an approximate
50 to 70 basis point improvement versus the prior year adjusted
gross margin of 48.6 percent with expected benefits from
pricing and changes in foreign currency partially offset by the
sale of the MyFitnessPal platform and expected higher
freight expenses.
- Operating income is expected to reach approximately
$425 million compared to the previous
range of $215 million to $225 million. Excluding the impact of
restructuring efforts, adjusted operating income is expected
to reach approximately $475 million
compared to the previous expectation of $340
million to $350 million.
- Diluted earnings per share is expected to reach
approximately $0.55 compared to the
previous expectation of diluted earnings per share of $0.14 to $0.16.
Adjusted diluted earnings per share is expected to
reach approximately $0.74 compared to
the previously expected range of $0.50 to $0.52 per
share.
2020 Restructuring Plan
In April 2020, Under Armour
announced a $550 million to
$600 million restructuring plan to
rebalance its cost base to improve profitability and cash flow. The
company now expects to recognize $525
million to $575 million in
charges related to this plan and has recognized $500 million of pre-tax charges, including
$17 million in the third quarter of
2021 or $26 million year-to-date. Of
the $500 million recognized in
charges, $140 million are
cash-related, and $360 million are
non-cash-related. The company currently expects to recognize any
remaining charges related to this plan by the first calendar
quarter of 2022.
COVID-19 Update
Under Armour remains focused on protecting teammate and consumer
health and safety while navigating the ongoing and wide-ranging
disruptions resulting from the pandemic. The company continues to
work with its suppliers, partners, and customers to navigate these
disruptions. However, given continued uncertainty related to
COVID-19, particularly the ongoing and evolving impact on the
company's suppliers and logistics providers, there could be further
material impacts on Under Armour's full-year business results in
2021, as well as future periods.
Conference Call and Webcast
Under Armour will hold its third-quarter conference call
and webcast today at approximately 8:30 a.m.
Eastern Time. The call will be webcast live at
https://about.underarmour.com/investor-relations/financials and
will be archived and available for replay about 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 2021 outlook. Management believes this
information is useful to investors to compare the company's results
of operations period-over-period because it enhances visibility
into its actual underlying results, excluding these impacts.
Currency-neutral financial information is calculated to exclude the
effect of changes in foreign currency exchange rates. References to
adjusted financial measures exclude the impact of the company's
2020 restructuring plan and related impairment charges and
impairments associated with certain long-lived assets and goodwill
and related tax effects. Where applicable, adjusted net income
(loss) and adjusted diluted income (loss) per share exclude the
non-cash amortization of debt discount on the company's convertible
senior notes, any gain or loss on extinguishing the company's
convertible senior notes and related tax effects, and any gain or
loss from divestitures. Management believes these adjustments
are not core to the company's operations. The reconciliation
of non-GAAP amounts to the most directly comparable financial
measure calculated according to GAAP is presented in supplemental
financial information furnished with this release. All per share
amounts are reported on a diluted basis. These supplemental
non-GAAP financial measures should not be considered in isolation
and should be contemplated in addition to, and not as an
alternative for, the company's reported results prepared per 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 athletic performance apparel,
footwear and accessories. Designed to empower human performance,
Under Armour's innovative products and experiences are engineered
to make athletes better. For further information, please visit
http://about.underarmour.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
impact of the COVID-19 pandemic on our business and results of
operations and the operations of our suppliers and logistics
providers, our plans to reduce our operating expenses, anticipated
charges and restructuring costs, projected savings related to our
restructuring plans and the timing thereof, 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," "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, activity levels, 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: the
impact of the COVID-19 pandemic on our industry and our business,
financial condition and results of operations, including recent
impacts on global supply chains and logistics; failure of our
suppliers or manufacturers to produce or deliver our products in a
timely or cost-effective manner; changes in general economic
or market conditions that could affect overall consumer spending or
our industry; 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 raw materials and commodities we use in our products and our
supply chain; changes to the financial health of our
customers; our ability to successfully execute our long-term
strategies; our ability to effectively drive operational
efficiency in our business and successfully execute any
restructuring plans and realize their expected benefits; our
ability to effectively develop and launch new, innovative and
updated products; our ability to accurately forecast consumer
shopping preferences and consumer demand for our products and
manage our inventory in response to changing demands; loss of
key customers, suppliers or manufacturers; 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 manage the increasingly complex operations of our global
business; our ability to successfully manage or realize
expected results from significant transactions and
investments; 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; any disruptions, delays or deficiencies in the
design, implementation or application of our global operating and
financial reporting information technology system; our ability
to attract key talent and retain the services of our senior
management and key employees; our ability to access capital
and financing required to manage our business on terms acceptable
to us; 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 comply with existing trade and
other regulations, and the potential impact of new trade, tariff
and tax regulations on our profitability; risks related to
data security or privacy breaches; and our potential exposure
to litigation and other proceedings. 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 Three and
Nine Months Ended September 30, 2021 and 2020
(Unaudited; in
thousands, except per share amounts)
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
in '000s
|
|
2021
|
|
% of Net
Revenues
|
|
2020
|
|
% of Net
Revenues
|
|
2021
|
|
% of Net
Revenues
|
|
2020
|
|
% of Net
Revenues
|
Net
revenues
|
|
$
|
1,545,532
|
|
|
100.0
|
%
|
|
$
|
1,433,021
|
|
|
100.0
|
%
|
|
$
|
4,154,261
|
|
|
100.0
|
%
|
|
$
|
3,070,901
|
|
|
100.0
|
%
|
Cost of goods
sold
|
|
757,428
|
|
|
49.0
|
%
|
|
746,701
|
|
|
52.1
|
%
|
|
2,068,695
|
|
|
49.8
|
%
|
|
1,604,428
|
|
|
52.2
|
%
|
Gross
profit
|
|
788,104
|
|
|
51.0
|
%
|
|
686,320
|
|
|
47.9
|
%
|
|
2,085,566
|
|
|
50.2
|
%
|
|
1,466,473
|
|
|
47.8
|
%
|
Selling, general and
administrative expenses
|
|
599,384
|
|
|
38.8
|
%
|
|
553,549
|
|
|
38.6
|
%
|
|
1,659,025
|
|
|
39.9
|
%
|
|
1,586,156
|
|
|
51.7
|
%
|
Restructuring and
impairment charges
|
|
16,656
|
|
|
1.1
|
%
|
|
74,201
|
|
|
5.2
|
%
|
|
26,382
|
|
|
0.6
|
%
|
|
549,601
|
|
|
17.9
|
%
|
Income (loss) from
operations
|
|
172,064
|
|
|
11.1
|
%
|
|
58,570
|
|
|
4.1
|
%
|
|
400,159
|
|
|
9.6
|
%
|
|
(669,284)
|
|
|
(21.8)
|
%
|
Interest income
(expense), net
|
|
(9,261)
|
|
|
(0.6)
|
%
|
|
(14,955)
|
|
|
(1.0)
|
%
|
|
(36,705)
|
|
|
(0.9)
|
%
|
|
(32,251)
|
|
|
(1.1)
|
%
|
Other income
(expense), net
|
|
(29,476)
|
|
|
(1.9)
|
%
|
|
(7,184)
|
|
|
(0.5)
|
%
|
|
(75,150)
|
|
|
(1.8)
|
%
|
|
(10,493)
|
|
|
(0.3)
|
%
|
Income (loss)
before income taxes
|
|
133,327
|
|
|
8.6
|
%
|
|
36,431
|
|
|
2.5
|
%
|
|
288,304
|
|
|
6.9
|
%
|
|
(712,028)
|
|
|
(23.2)
|
%
|
Income tax expense
(benefit)
|
|
18,962
|
|
|
1.2
|
%
|
|
(3,714)
|
|
|
(0.3)
|
%
|
|
38,870
|
|
|
0.9
|
%
|
|
14,696
|
|
|
0.5
|
%
|
Income (loss) from
equity method investments
|
|
(921)
|
|
|
(0.1)
|
%
|
|
(1,199)
|
|
|
(0.1)
|
%
|
|
969
|
|
|
—
|
%
|
|
(6,906)
|
|
|
(0.2)
|
%
|
Net income
(loss)
|
|
$
|
113,444
|
|
|
7.3
|
%
|
|
$
|
38,946
|
|
|
2.7
|
%
|
|
$
|
250,403
|
|
|
6.0
|
%
|
|
$
|
(733,630)
|
|
|
(23.9)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share of
Class A, B and C common stock
|
|
$
|
0.24
|
|
|
|
|
$
|
0.09
|
|
|
|
|
$
|
0.54
|
|
|
|
|
$
|
(1.62)
|
|
|
|
Diluted net income
(loss) per share of
Class A, B and C common stock
|
|
$
|
0.24
|
|
|
|
|
$
|
0.09
|
|
|
|
|
$
|
0.54
|
|
|
|
|
$
|
(1.62)
|
|
|
|
Weighted average
common shares outstanding Class A, B and C common
stock
|
Basic
|
|
470,002
|
|
|
|
|
454,541
|
|
|
|
|
461,908
|
|
|
|
|
453,847
|
|
|
|
Diluted
|
|
473,116
|
|
|
|
|
456,674
|
|
|
|
|
464,918
|
|
|
|
|
453,847
|
|
|
|
Under Armour,
Inc.
For the Three and
Nine Months Ended September 30, 2021 and 2020
(Unaudited; in
thousands)
|
|
|
|
|
|
NET REVENUES BY PRODUCT
CATEGORY
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
in '000s
|
|
2021
|
|
2020
|
|
% Change
|
|
2021
|
|
2020
|
|
% Change
|
Apparel
|
|
$
|
1,058,231
|
|
|
$
|
927,041
|
|
|
14.2
|
%
|
|
$
|
2,742,465
|
|
|
$
|
1,951,186
|
|
|
40.6
|
%
|
Footwear
|
|
329,718
|
|
|
298,687
|
|
|
10.4
|
%
|
|
981,406
|
|
|
693,464
|
|
|
41.5
|
%
|
Accessories
|
|
126,345
|
|
|
145,060
|
|
|
(12.9)
|
%
|
|
355,244
|
|
|
268,912
|
|
|
32.1
|
%
|
Total net
sales
|
|
1,514,294
|
|
|
1,370,788
|
|
|
10.5
|
%
|
|
4,079,115
|
|
|
2,913,562
|
|
|
40.0
|
%
|
Licensing
revenues
|
|
31,099
|
|
|
25,121
|
|
|
23.8
|
%
|
|
76,017
|
|
|
51,244
|
|
|
48.3
|
%
|
Corporate Other
(1)
|
|
139
|
|
|
37,112
|
|
|
(99.6)
|
%
|
|
$
|
(871)
|
|
|
$
|
106,095
|
|
|
(100.8)
|
%
|
Total net
revenues
|
|
$
|
1,545,532
|
|
|
$
|
1,433,021
|
|
|
7.9
|
%
|
|
$
|
4,154,261
|
|
|
$
|
3,070,901
|
|
|
35.3
|
%
|
NET REVENUES BY SEGMENT
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
in '000s
|
|
2021
|
|
2020
|
|
% Change
|
|
2021
|
|
2020
|
|
% Change
|
North
America
|
|
$
|
1,035,862
|
|
|
$
|
962,565
|
|
|
7.6
|
%
|
|
$
|
2,747,082
|
|
|
$
|
2,021,247
|
|
|
35.9
|
%
|
EMEA
|
|
241,201
|
|
|
210,111
|
|
|
14.8
|
%
|
|
642,308
|
|
|
437,140
|
|
|
46.9
|
%
|
Asia-Pacific
|
|
211,950
|
|
|
178,895
|
|
|
18.5
|
%
|
|
614,539
|
|
|
397,846
|
|
|
54.5
|
%
|
Latin
America
|
|
56,380
|
|
|
44,338
|
|
|
27.2
|
%
|
|
151,203
|
|
|
108,573
|
|
|
39.3
|
%
|
Corporate Other
(1)
|
|
139
|
|
|
37,112
|
|
|
(99.6)
|
%
|
|
(871)
|
|
|
$
|
106,095
|
|
|
(100.8)
|
%
|
Total net
revenues
|
|
$
|
1,545,532
|
|
|
$
|
1,433,021
|
|
|
7.9
|
%
|
|
$
|
4,154,261
|
|
|
$
|
3,070,901
|
|
|
35.3
|
%
|
INCOME (LOSS) FROM OPERATIONS
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
in '000s
|
|
2021
|
% of Net
Revenues (2)
|
|
2020
|
% of Net
Revenues (2)
|
|
2021
|
% of Net
Revenues (2)
|
|
2020
|
|
% of Net
Revenues (2)
|
North
America
|
|
$
|
292,367
|
|
28.2
|
%
|
|
$
|
224,593
|
|
23.3
|
%
|
|
$
|
728,698
|
|
26.5
|
%
|
|
$
|
251,579
|
|
|
12.4
|
%
|
EMEA
|
|
41,772
|
|
17.3
|
%
|
|
40,834
|
|
19.4
|
%
|
|
108,350
|
|
16.9
|
%
|
|
43,840
|
|
|
10.0
|
%
|
Asia-Pacific
|
|
40,529
|
|
19.1
|
%
|
|
19,248
|
|
10.8
|
%
|
|
111,088
|
|
18.1
|
%
|
|
(30,040)
|
|
|
(7.6)
|
%
|
Latin
America
|
|
10,831
|
|
19.2
|
%
|
|
1,802
|
|
4.1
|
%
|
|
18,289
|
|
12.1
|
%
|
|
(50,756)
|
|
|
(46.7)
|
%
|
Corporate Other
(1)
|
|
(213,435)
|
|
NM
|
|
(227,907)
|
|
NM
|
|
(566,266)
|
|
NM
|
|
(883,907)
|
|
|
NM
|
Income (loss)
from
operations
|
|
$
|
172,064
|
|
11.1
|
%
|
|
$
|
58,570
|
|
4.1
|
%
|
|
$
|
400,159
|
|
9.6
|
%
|
|
$
|
(669,284)
|
|
|
(21.8)
|
%
|
|
(1)
Corporate Other primarily includes foreign currency hedge gains
and losses related to revenues generated by entities within the
Company's operating segments but managed through the Company's
central foreign exchange risk management program. Prior to Fiscal
2021, the Company's Connected Fitness segment was separately
disclosed, however, effective January 1, 2021, Corporate Other now
includes the remaining Connected Fitness business consisting of the
MapMyRun business for Fiscal 2021 and the entire Connected Fitness
business for Fiscal 2020. All prior periods were recast to conform
to the current period presentation. Such reclassifications did not
affect total consolidated net revenues, consolidated income from
operations or consolidated net income
|
|
(2) Operating
income (loss) percentage is calculated based on total segment net
revenues. The operating income (loss) percentage for Corporate
Other is not presented as a meaningful metric (NM).
|
Under Armour,
Inc.
As of
September 30, 2021, December 31, 2020 and
September 30, 2020
(Unaudited; in
thousands)
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
in '000s
|
|
September 30,
2021
|
|
December 31,
2020
|
|
September 30,
2020
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,253,706
|
|
|
$
|
1,517,361
|
|
|
$
|
865,609
|
|
Accounts receivable,
net
|
|
735,779
|
|
|
527,340
|
|
|
806,916
|
|
Inventories
|
|
837,740
|
|
|
895,974
|
|
|
1,056,845
|
|
Prepaid expenses and
other current assets, net
|
|
300,719
|
|
|
282,300
|
|
|
243,971
|
|
Total current
assets
|
|
3,127,944
|
|
|
3,222,975
|
|
|
2,973,341
|
|
Property and
equipment, net
|
|
601,700
|
|
|
658,678
|
|
|
680,871
|
|
Operating lease
right-of-use assets
|
|
469,638
|
|
|
536,660
|
|
|
560,146
|
|
Goodwill
|
|
498,166
|
|
|
502,214
|
|
|
493,631
|
|
Intangible assets,
net
|
|
11,474
|
|
|
13,295
|
|
|
37,274
|
|
Deferred income
taxes
|
|
34,543
|
|
|
23,930
|
|
|
45,995
|
|
Other long term
assets
|
|
78,836
|
|
|
72,876
|
|
|
72,293
|
|
Total
assets
|
|
$
|
4,822,301
|
|
|
$
|
5,030,628
|
|
|
$
|
4,863,551
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Accounts
payable
|
|
532,919
|
|
|
575,954
|
|
|
643,315
|
|
Accrued
expenses
|
|
388,275
|
|
|
378,859
|
|
|
309,096
|
|
Customer refund
liabilities
|
|
174,274
|
|
|
203,399
|
|
|
197,496
|
|
Operating lease
liabilities
|
|
142,566
|
|
|
162,561
|
|
|
156,885
|
|
Other current
liabilities
|
|
116,504
|
|
|
92,503
|
|
|
141,607
|
|
Total current
liabilities
|
|
1,354,538
|
|
|
1,413,276
|
|
|
1,448,399
|
|
Long term debt, net
of current maturities
|
|
662,903
|
|
|
1,003,556
|
|
|
997,347
|
|
Operating lease
liabilities, non-current
|
|
728,077
|
|
|
839,414
|
|
|
872,791
|
|
Other long term
liabilities
|
|
99,034
|
|
|
98,389
|
|
|
74,668
|
|
Total
liabilities
|
|
2,844,552
|
|
|
3,354,635
|
|
|
3,393,205
|
|
Total stockholders'
equity
|
|
1,977,749
|
|
|
1,675,993
|
|
|
1,470,346
|
|
Total liabilities
and stockholders' equity
|
|
$
|
4,822,301
|
|
|
$
|
5,030,628
|
|
|
$
|
4,863,551
|
|
Under Armour,
Inc.
For the Nine Months
Ended September 30, 2021 and 2020
(Unaudited; in
thousands)
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
Nine Months Ended
September 30,
|
in '000s
|
2021
|
|
2020
|
Cash flows from
operating activities
|
|
|
|
Net income
(loss)
|
$
|
250,403
|
|
|
$
|
(733,630)
|
|
Adjustments to
reconcile net income (loss) to net cash used in operating
activities
|
|
|
|
Depreciation and
amortization
|
107,847
|
|
|
124,169
|
|
Unrealized foreign
currency exchange rate gain (loss)
|
12,353
|
|
|
(3,676)
|
|
Loss on extinguishment
of senior convertible notes
|
58,526
|
|
|
—
|
|
Loss on disposal of
property and equipment
|
2,624
|
|
|
3,547
|
|
Non-cash restructuring
and impairment charges
|
11,903
|
|
|
452,945
|
|
Amortization of bond
premium
|
19,902
|
|
|
6,910
|
|
Stock-based
compensation
|
32,953
|
|
|
32,770
|
|
Deferred income
taxes
|
(23,414)
|
|
|
19,172
|
|
Changes in reserves
and allowances
|
(19,215)
|
|
|
22,910
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(200,079)
|
|
|
(105,874)
|
|
Inventories
|
64,202
|
|
|
(159,930)
|
|
Prepaid expenses and
other assets
|
(3,738)
|
|
|
64,404
|
|
Other non-current
assets
|
52,179
|
|
|
(288,111)
|
|
Accounts
payable
|
(36,913)
|
|
|
17,972
|
|
Accrued expenses and
other liabilities
|
(123,273)
|
|
|
301,720
|
|
Customer refund
liabilities
|
(29,072)
|
|
|
(23,164)
|
|
Income taxes payable
and receivable
|
32,680
|
|
|
18,159
|
|
Net cash provided by
(used in) operating activities
|
209,868
|
|
|
(249,707)
|
|
Cash flows from
investing activities
|
|
|
|
Purchases of property
and equipment
|
(57,660)
|
|
|
(71,639)
|
|
Sale of property and
equipment
|
1,413
|
|
|
—
|
|
Purchase of
businesses
|
—
|
|
|
(38,848)
|
|
Net cash used in
investing activities
|
(56,247)
|
|
|
(110,487)
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from long
term debt and revolving credit facility
|
—
|
|
|
1,288,753
|
|
Payments on long term
debt and revolving credit facility
|
(506,280)
|
|
|
(800,000)
|
|
Proceeds from capped
call
|
91,722
|
|
|
—
|
|
Purchase of capped
call
|
—
|
|
|
(47,850)
|
|
Employee taxes paid
for shares withheld for income taxes
|
(5,623)
|
|
|
(3,285)
|
|
Proceeds from
exercise of stock options and other stock issuances
|
2,739
|
|
|
3,855
|
|
Payments of debt
financing costs
|
—
|
|
|
(5,150)
|
|
Net cash provided by
(used in) financing activities
|
(417,442)
|
|
|
436,323
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
1,708
|
|
|
2,398
|
|
Net increase in
(decrease in) cash, cash equivalents and restricted cash
|
(262,113)
|
|
|
78,527
|
|
Cash, cash
equivalents and restricted cash
|
|
|
|
Beginning of
period
|
1,528,515
|
|
|
796,008
|
|
End of
period
|
$
|
1,266,402
|
|
|
$
|
874,535
|
|
Under Armour,
Inc.
For the Three Months
and Nine Months Ended September 30, 2021
(Unaudited)
|
|
|
|
|
|
The table below
presents the reconciliation of net revenue growth (decline)
calculated according to GAAP to currency neutral net revenue 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
|
|
|
|
|
|
|
|
Three months
ended
September 30, 2021
|
|
Nine months ended
September 30, 2021
|
Total Net
Revenue
|
|
|
|
|
Net revenue growth -
GAAP
|
|
7.9
|
%
|
|
35.3
|
%
|
Foreign exchange
impact
|
|
(2.0)
|
%
|
|
(3.1)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
5.9
|
%
|
|
32.2
|
%
|
|
|
|
|
|
North
America
|
|
|
|
|
Net revenue growth -
GAAP
|
|
7.6
|
%
|
|
35.9
|
%
|
Foreign exchange
impact
|
|
(0.7)
|
%
|
|
(0.9)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
6.9
|
%
|
|
35.0
|
%
|
|
|
|
|
|
EMEA
|
|
|
|
|
Net revenue growth -
GAAP
|
|
14.8
|
%
|
|
46.9
|
%
|
Foreign exchange
impact
|
|
(3.6)
|
%
|
|
(7.4)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
11.2
|
%
|
|
39.5
|
%
|
|
|
|
|
|
Asia-Pacific
|
|
|
|
|
Net revenue growth -
GAAP
|
|
18.5
|
%
|
|
54.5
|
%
|
Foreign exchange
impact
|
|
(5.6)
|
%
|
|
(9.7)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
12.9
|
%
|
|
44.8
|
%
|
|
|
|
|
|
Latin
America
|
|
|
|
|
Net revenue growth -
GAAP
|
|
27.2
|
%
|
|
39.3
|
%
|
Foreign exchange
impact
|
|
(6.8)
|
%
|
|
(5.4)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
20.4
|
%
|
|
33.9
|
%
|
|
|
|
|
|
Total
International
|
|
|
|
|
Net revenue growth -
GAAP
|
|
17.6
|
%
|
|
49.2
|
%
|
Foreign exchange
impact
|
|
(4.8)
|
%
|
|
(8.1)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
12.8
|
%
|
|
41.1
|
%
|
Under Armour,
Inc.
For the Three Months
Ended September 30, 2021
(Unaudited; in
thousands, except per share amounts)
|
|
|
|
The tables below
present the reconciliation of the Company's condensed 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.
|
|
|
|
ADJUSTED OPERATING
INCOME RECONCILIATION
|
|
|
|
in '000s
|
|
Three months
ended
September 30, 2021
|
|
GAAP Income from
operations
|
|
$
|
172,064
|
|
Add: Impact of
restructuring and impairment charges
|
|
16,656
|
|
Add: Impact of
restructuring charges recorded under cost of goods sold
|
|
107
|
|
Adjusted income from
operations
|
|
$
|
188,827
|
|
|
|
|
ADJUSTED NET
INCOME RECONCILIATION
|
|
|
|
in '000s
|
|
Three months
ended
September 30, 2021
|
|
GAAP Net
income
|
|
$
|
113,444
|
|
Add: Impact of
restructuring and impairment charges
|
|
16,656
|
|
Add: Impact of
restructuring charges recorded under cost of goods sold
|
|
107
|
|
Add: Impact of
amortization of debt discount
|
|
2,251
|
|
Add: Impact of loss
on extinguishment of convertible senior notes
|
|
23,798
|
|
Add: Impact of
provision for income taxes
|
|
(11,441)
|
|
Adjusted net
income
|
|
$
|
144,815
|
|
|
|
|
ADJUSTED DILUTED
EARNINGS PER SHARE RECONCILIATION
|
|
|
|
|
|
Three months
ended
September 30, 2021
|
|
GAAP Diluted net
income per share
|
|
$
|
0.24
|
|
Add: Impact of
restructuring and impairment charges
|
|
0.04
|
|
Add: Impact of
restructuring charges recorded under cost of goods sold
|
|
—
|
|
Add: Impact of
amortization of debt discount
|
|
—
|
|
Add: Impact of loss
on extinguishment of convertible senior notes
|
|
0.05
|
|
Add: Impact of
provision for income taxes
|
|
(0.02)
|
|
Adjusted diluted
income per share
|
|
$
|
0.31
|
|
Under Armour,
Inc.
Outlook for the Year
Ending December 31, 2021
(Unaudited; in
millions, except per share amounts)
|
|
|
|
The tables below
present the reconciliation of the Company's fiscal 2021 outlook for
certain financial measures calculated in accordance with GAAP to
the corresponding 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
|
|
|
|
(in
millions)
|
|
Year Ending
December 31, 2021
|
|
GAAP Income (loss)
from operations
|
|
$
|
425
|
|
Add: Estimated impact
of restructuring and impairment charges (1)
|
|
50
|
|
Adjusted income
(loss) from operations
|
|
$
|
475
|
|
ADJUSTED OPERATING
MARGIN RECONCILIATION
|
|
|
|
|
|
Year Ending
December 31, 2021
|
GAAP operating
margin
|
|
7.6
|
%
|
Add: Estimated impact
of restructuring and impairment charges (1)
|
|
0.9
|
%
|
Adjusted operating
margin
|
|
8.5
|
%
|
ADJUSTED DILUTED
EARNINGS PER SHARE RECONCILIATION
|
|
|
|
|
|
Year Ending
December 31, 2021
|
|
GAAP diluted net
income (loss) per share (2)
|
|
$
|
0.55
|
|
Add: Estimated impact
of restructuring and impairment charges (1)
|
|
0.11
|
|
Add: Estimated impact
of amortization of debt discount
|
|
0.03
|
|
Add: Estimated impact
of loss on extinguishment of convertible senior notes
|
|
0.12
|
|
Add: Estimated impact
of tax expense related to items noted above
|
|
(0.07)
|
|
Adjusted diluted
income per share
|
|
$
|
0.74
|
|
|
(1) Under the
Company's 2020 restructuring plan's estimated range of $525 million
to $575 million, approximately $500 million of cumulative charges
have been recognized as of September 30, 2021. The impact of total
charges to be recognized for the fourth quarter and the full year
Fiscal 2021 assumes the low-end of the estimated remaining charges
included in this press release.
|
|
(2) GAAP diluted
net income (loss) per share excludes any potential earn-out related
to the sale of the MyFitnessPal platform.
|
Under Armour,
Inc.
As of September 30, 2021 and 2020
|
|
|
|
COMPANY-OWNED
& OPERATED DOOR COUNT
|
|
|
|
|
|
September
30,
|
|
|
2021
|
|
2020
|
Factory
House
|
|
179
|
|
172
|
Brand
House
|
|
18
|
|
18
|
North
America total doors
|
|
197
|
|
190
|
|
|
|
|
|
Factory
House
|
|
144
|
|
122
|
Brand
House
|
|
95
|
|
116
|
International total doors
|
|
239
|
|
238
|
|
|
|
|
|
Factory
House
|
|
323
|
|
294
|
Brand
House
|
|
113
|
|
134
|
Total
doors
|
|
436
|
|
428
|
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SOURCE Under Armour, Inc.