BALTIMORE,
May 11, 2020 /PRNewswire/
-- Under Armour, Inc. (NYSE: UA, UAA) today announced
financial results for the first quarter ended March 31, 2020. 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 2020 restructuring plan and related
impairment charges, impairments associated with certain long-lived
assets and goodwill and related tax effects. 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.
"As extraordinary human and economic disruptions related
to COVID-19 continue to unfold globally, we are
prioritizing the health and welfare of our
teammates and consumers," said Under
Armour President and CEO Patrik
Frisk. "By instituting disciplined workplace
continuity protocols and adhering to the
recommendations of local health authorities, we remain
vigilant in monitoring this evolving situation and responsibly
playing our part."
"During the first quarter, our results in
January and February were tracking well to our plan. Since
mid-March, as the pandemic accelerated dramatically in North America and EMEA and retail store
closures ensued, we've experienced a significant decline in revenue
across all markets." Frisk continued, "As a result,
like so many businesses, we've had to make very
difficult decisions, including temporarily laying off teammates in
our U.S. retail stores and distribution centers along with other
actions to ensure we protect Under Armour's financial
stability."
Frisk concluded, "As we continue to navigate this crisis,
our balance sheet remains well managed, and our leadership team is
taking decisive actions to execute against our continued
transformation. We remain focused on driving greater
efficiencies across the core elements of our business by working to
identify additional opportunities to emerge with stronger and
greater capabilities over the long-term."
First Quarter 2020 Review
On March 31, our Board of
Directors approved the previously announced 2020 restructuring
plan, whereby we expect to incur total estimated
pre-tax restructuring and related charges in the range of
$475 million to $525 million during 2020 including up to
approximately $350
million of non-cash charges and $175
million of cash-related restructuring charges.
- Revenue was down 23 percent to
$930 million (down 22 percent
currency neutral) with approximately 15 percentage points of the
decline related to COVID-19 pandemic impacts in the
quarter.
-
- Wholesale revenue decreased 28 percent to $592 million and direct-to-consumer revenue was
down 14 percent to $284 million,
representing 31 percent of total revenue.
- North America revenue
decreased 28 percent to $609 million
and revenue from our international business decreased 12
percent to $287 million (down
11 percent currency neutral), representing 31 percent of total
revenue. Within the international business, revenue increased
3 percent in EMEA (up 4 percent currency neutral),
decreased 34 percent in Asia-Pacific (down 32 percent currency
neutral), and increased 8 percent in Latin America (up 11 percent currency
neutral).
- Apparel revenue decreased 23 percent to $598
million. Footwear revenue decreased 28 percent to
$210 million. Accessories revenue
decreased 17 percent to $68
million.
- Gross margin increased 110 basis
points to 46.3 percent compared to the prior year driven primarily
by channel mix which benefitted from lower off-price sales,
partially offset by the negative impacts from COVID-19 related
discounting and changes in foreign currency.
- Selling, general & administrative
expenses increased 8 percent to $553
million driven primarily by increased legal expenses and
amplified marketing related activities.
- Restructuring and impairment charges
were $436 million consisting of
$301 million in restructuring and
related impairment charges ($298
million in non-cash and $3
million in cash related charges) and $135
million from impairments of long-lived assets and
goodwill.
- Operating loss was $558 million. Excluding the impact of the
restructuring plan and impairments, adjusted operating loss
was $122 million.
- Net loss was $590 million. Adjusted net loss was
$152 million.
- Diluted loss per share was
$1.30. Adjusted diluted loss per
share was $0.34.
COVID-19 Overview
The coronavirus (COVID-19) pandemic has negatively
affected the U.S. and global economies, disrupted supply chains and
financial markets, and led to significant travel and transportation
restrictions, including mandatory closures and orders to
"shelter-in-place". Amid this global crisis, Under Armour is
focused on protecting the health and safety of our teammates and
consumers, while working with our customers and suppliers to
minimize potential disruptions and supporting our community to
address challenges posed by this pandemic. The following provides
an overview and status of certain parts of our business and some of
the actions we are taking in response to this situation:
- Business Continuity – as the virus
spread rapidly during the first quarter, we began adjusting our
operations and taking measures to ensure business continuity, as
well as implementing government recommendations to increase social
distancing, avoid large gatherings and requiring most office-based
teammates around the world to work remotely. Within our supply
chain, we quickly adjusted our plans and strategy to manage rapidly
changing dynamics in sourcing, logistics and
transportation.
- Channel & Business Impacts
-
- Asia-Pacific: in
China, which comprises a little
more than half of our revenue in this region, both
owned and partner doors began closing in late January and remained
substantially closed through early March when a slowly progressive
re-opening process started. By the end of March, more than 80
percent of these locations had re-opened in China and, at this time, substantially all
have re-opened. However, traffic in these locations,
while recovering steadily in recent weeks, continues to be down
year-over-year. Business results and trends in South Korea have been similar to those in
China, while retail
and partner locations outside of these countries in the
Asia-Pacific region have remained
predominantly closed since the end of the first
quarter.
- North America / EMEA /
Latin America: beginning
mid-March, the company temporarily closed all owned doors across
all three of these regions. In addition to these locations, the
vast majority of wholesale customer stores where our products are
sold also closed down beginning mid-March. At the time of this
communication, substantially all of our owned doors and those of
our retail partners remain closed. The pace and timing of store
openings, and traffic patterns when the stores re-open, remain
highly uncertain.
- Global eCommerce: within our owned eCommerce business,
which represents a low double-digit percentage of total revenue, we
have seen more favorable trends materializing in North America and EMEA since the beginning of
the second quarter.
- Financial Impact and Related 2020 Outlook
– following the withdrawal of our 2020 outlook on
April 3, local market policies and
procedures required to decrease COVID-19 transmission remain
largely unchanged around the world. Accordingly, due to the high
level of uncertainty with respect to the duration and scope of this
current event, the quantification of negative impacts on our
financial and operating results cannot reasonably be estimated at
this time.
- Cost Base Management – we are
expecting to reduce our originally planned 2020
operating expenses by approximately $325
million through various initiatives, including:
-
- Taking actions to limit broader marketing activations
until we have greater visibility into the magnitude of virus impact
on consumer demand and behavior.
- Reducing incentive compensation.
- Temporarily laying off teammates that worked in our owned
retail stores and U.S.-based distribution
centers.
- Tightening our hiring, contract services and travel and
other discretionary and variable costs.
- Postponing planned capital expenditures contributing to
reduced depreciation.
- Realizing the operating expense benefits included within
the approximate $40 million to $60
million of expected pre-tax savings in 2020 from our
restructuring plan.
- Liquidity and Cash Flow –
given ongoing uncertainty and pressures in global
markets, we moved quickly to prioritize
liquidity, cash preservation, and inventory management to
enhance our ability to navigate potential short
and mid-term challenges:
-
- We ended the first quarter with
cash and cash equivalents of $959 million, of which approximately $600 million was related to borrowings under our
revolving credit facility. We currently have $700 million outstanding under this
facility. Additionally, we are in the process of
amending our credit agreement, which is on track to close tomorrow.
Given the ongoing disruption throughout our industry, we expect
this amendment will provide improved access to liquidity going
forward.
- We ended the quarter with inventory up 7 percent to
$940 million. In anticipation of
significant changes in future demand, we are proactively
reducing planned inventory receipts amid the quickly evolving
retail environment.
- We have been prudently balancing the negotiation of
extended payment terms with both our customers and
vendors.
- We have reduced our planned capital expenditures to
approximately $100 million compared
with our previous expectation of approximately $160 million in 2020, with original investments
generally expected to continue at such point business conditions
stabilize.
Conference Call and Webcast
Under Armour will hold its first quarter 2020
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 approximately three
hours after the live event.
Non-GAAP Financial Information
This press release refers to "currency neutral" and
"adjusted" amounts. Currency neutral financial information is
calculated to exclude the impact of changes in foreign currency.
Currency neutral financial information is calculated to exclude the
impact of changes in foreign currency exchange rates.
Management believes this information is useful to investors to
facilitate a comparison of the company's results of operations
period-over-period. Adjusted financial measures
exclude the impact of the company's 2020 restructuring plan and
related impairment charges, impairments associated
with certain long-lived assets and goodwill, and
related tax effects. Specifically,
in the first quarter of fiscal 2020, we recorded $301 million of restructuring and related
impairment charges in connection with our 2020 restructuring
plan. Also, we performed an interim long-lived
asset impairment and goodwill analysis as of March 31, 2020. In the first quarter of fiscal
2020, we recorded $84 million of
impairment charges for long-lived assets primarily related to
globally owned retail locations and $51
million of impairment charges related to goodwill allocated
to our Latin American as well as our North America reporting segments (due to
impacts on our business in Canada). These goodwill charges were as a
result of declines in both current and future expected cash flows
compared to current net carrying value and were primarily a result
of decreased net revenue and cash flow projections worsened by the
COVID-19 pandemic, which has resulted in a substantial and
prolonged store closures and traffic declines within our global
retail store fleet. Management believes this information is useful
to investors because it provides enhanced visibility into the
company's actual underlying results excluding these
impacts. These supplemental 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 athletic performance apparel,
footwear and accessories. Powered by one of the world's largest
digitally connected fitness and wellness communities, Under
Armour's innovative products and experiences are designed to help
advance human performance, making all athletes better. For further
information, please visit https://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, the impact of the COVID-19 pandemic on our business,
our plans to reduce our 2020 operating expenses, anticipated
charges and restructuring costs, the timing of these measures and
projected savings related to our restructuring plans, and the
potential amendment to our credit agreement, including the timing
of the amendment and related impact on our liquidity. 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: the
impact of the COVID-19 pandemic on our industry and our business,
financial condition and results of operations; changes in general
economic or market conditions that could affect overall consumer
spending or our industry; changes to the financial health of our
customers; 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; our ability to raise capital and
financing required to manage our business on terms acceptable to
us; our ability to successfully execute our long-term strategies;
our ability to successfully execute any potential restructuring
plans and realize their 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, tariff 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; 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; 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 Three Months
Ended March 31, 2020 and 2019
(Unaudited; in thousands, except per share
amounts)
|
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
|
Three Months Ended
March 31,
|
|
|
2020
|
|
% of Net
Revenues
|
|
2019
|
|
% of Net
Revenues
|
Net
revenues
|
|
$
|
930,240
|
|
|
100.0
|
%
|
|
$
|
1,204,722
|
|
|
100.0
|
%
|
Cost of goods
sold
|
|
499,256
|
|
|
53.7
|
%
|
|
659,935
|
|
|
54.8
|
%
|
Gross profit
|
|
430,984
|
|
|
46.3
|
%
|
|
544,787
|
|
|
45.2
|
%
|
Selling, general and
administrative expenses
|
|
552,701
|
|
|
59.4
|
%
|
|
509,528
|
|
|
42.3
|
%
|
Restructuring and
impairment charges
|
|
436,463
|
|
|
46.9
|
%
|
|
—
|
|
|
—
|
%
|
Income (loss) from operations
|
|
(558,180)
|
|
|
(60.0)
|
%
|
|
35,259
|
|
|
2.9
|
%
|
Interest expense,
net
|
|
(5,960)
|
|
|
(0.6)
|
%
|
|
(4,238)
|
|
|
(0.4)
|
%
|
Other income
(expense), net
|
|
1,534
|
|
|
0.2
|
%
|
|
(667)
|
|
|
(0.1)
|
%
|
Income (loss) before income
taxes
|
|
(562,606)
|
|
|
(60.5)
|
%
|
|
30,354
|
|
|
2.5
|
%
|
Income tax
expense
|
|
21,547
|
|
|
2.3
|
%
|
|
8,131
|
|
|
0.7
|
%
|
Income (loss) from
equity method investments
|
|
(5,528)
|
|
|
(0.6)
|
%
|
|
254
|
|
|
—
|
%
|
Net income (loss)
|
|
$
|
(589,681)
|
|
|
(63.4)
|
%
|
|
$
|
22,477
|
|
|
1.9
|
%
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share of Class A, B and C common stock
|
|
$
|
(1.30)
|
|
|
|
|
$
|
0.05
|
|
|
|
Diluted net income
(loss) per share of Class A, B and C common stock
|
|
$
|
(1.30)
|
|
|
|
|
$
|
0.05
|
|
|
|
Weighted average common shares outstanding Class A, B
and C common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
452,871
|
|
|
|
|
449,749
|
|
|
|
Diluted
|
|
452,871
|
|
|
|
|
453,230
|
|
|
|
Under Armour,
Inc.
For the Three Months
Ended March 31, 2020 and 2019
(Unaudited; in thousands)
|
|
NET REVENUES BY PRODUCT
CATEGORY
|
|
|
|
Three Months Ended
March 31,
|
|
|
2020
|
|
2019
|
|
% Change
|
Apparel
|
|
$
|
598,287
|
|
|
$
|
774,630
|
|
|
(22.8)
|
%
|
Footwear
|
|
209,688
|
|
|
292,547
|
|
|
(28.3)
|
%
|
Accessories
|
|
67,748
|
|
|
81,992
|
|
|
(17.4)
|
%
|
Total net
sales
|
|
875,723
|
|
|
1,149,169
|
|
|
(23.8)
|
%
|
Licensing
revenues
|
|
19,935
|
|
|
21,657
|
|
|
(8.0)
|
%
|
Connected
Fitness
|
|
32,794
|
|
|
30,104
|
|
|
8.9
|
%
|
Corporate
Other
|
|
1,788
|
|
|
3,792
|
|
|
(52.8)
|
%
|
Total net revenues
|
|
$
|
930,240
|
|
|
$
|
1,204,722
|
|
|
(22.8)
|
%
|
NET REVENUES BY SEGMENT
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2020
|
|
2019
|
|
% Change
|
North
America
|
|
$
|
608,980
|
|
|
$
|
843,249
|
|
|
(27.8)
|
%
|
EMEA
|
|
137,904
|
|
|
134,104
|
|
|
2.8
|
%
|
Asia-Pacific
|
|
95,686
|
|
|
144,285
|
|
|
(33.7)
|
%
|
Latin
America
|
|
53,088
|
|
|
49,188
|
|
|
7.9
|
%
|
Connected
Fitness
|
|
32,794
|
|
|
30,104
|
|
|
8.9
|
%
|
Corporate
Other
|
|
1,788
|
|
|
3,792
|
|
|
(52.8)
|
%
|
Total net revenues
|
|
$
|
930,240
|
|
|
$
|
1,204,722
|
|
|
(22.8)
|
%
|
INCOME (LOSS) FROM OPERATIONS
|
|
|
|
Three Months Ended
March 31,
|
|
|
2020
|
% of Net Revenues
(1)
|
|
2019
|
% of Net Revenues
(1)
|
North
America
|
|
$
|
(3,773)
|
|
(0.6)
|
%
|
|
$
|
160,273
|
|
19.0
|
%
|
EMEA
|
|
3,704
|
|
2.7
|
%
|
|
12,218
|
|
9.1
|
%
|
Asia-Pacific
|
|
(36,841)
|
|
(38.5)
|
%
|
|
19,803
|
|
13.7
|
%
|
Latin
America
|
|
(48,184)
|
|
(90.8)
|
%
|
|
(359)
|
|
(0.7)
|
%
|
Connected
Fitness
|
|
3,700
|
|
11.3
|
%
|
|
1,069
|
|
3.6
|
%
|
Corporate
Other
|
|
(476,786)
|
|
NM
|
|
(157,745)
|
|
NM
|
Income (loss) from operations
|
|
$
|
(558,180)
|
|
(60.0)
|
%
|
|
$
|
35,259
|
|
2.9
|
%
|
(1)
|
The operating income
(loss) percentage is calculated based on total segment net
revenues. Additionally, the operating income (loss) percentage for
Corporate Other is not presented as it is not a meaningful metric
(NM).
|
Under Armour,
Inc.
As of March 31,
2020, December 31, 2019 and March 31, 2019
(Unaudited; in thousands)
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
|
|
March 31,
2020
|
|
December 31,
2019
|
|
March 31,
2019
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
959,318
|
|
|
$
|
788,072
|
|
|
$
|
288,726
|
|
Accounts receivable,
net
|
|
668,409
|
|
|
708,714
|
|
|
743,677
|
|
Inventories
|
|
940,236
|
|
|
892,258
|
|
|
875,252
|
|
Prepaid expenses and
other current assets
|
|
300,044
|
|
|
313,165
|
|
|
299,053
|
|
Total current
assets
|
|
2,868,007
|
|
|
2,702,209
|
|
|
2,206,708
|
|
Property and
equipment, net
|
|
726,568
|
|
|
792,148
|
|
|
810,470
|
|
Operating lease
right-of-use assets
|
|
583,418
|
|
|
591,931
|
|
|
590,984
|
|
Goodwill
|
|
485,672
|
|
|
550,178
|
|
|
548,735
|
|
Intangible assets,
net
|
|
40,490
|
|
|
36,345
|
|
|
40,109
|
|
Deferred income
taxes
|
|
39,576
|
|
|
82,379
|
|
|
114,705
|
|
Other long term
assets
|
|
93,844
|
|
|
88,341
|
|
|
124,361
|
|
Total assets
|
|
$
|
4,837,575
|
|
|
$
|
4,843,531
|
|
|
$
|
4,436,072
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
|
|
Revolving credit
facility, current
|
|
$
|
600,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Accounts
payable
|
|
417,397
|
|
|
618,194
|
|
|
377,401
|
|
Accrued
expenses
|
|
267,115
|
|
|
374,694
|
|
|
268,187
|
|
Customer refund
liabilities
|
|
208,172
|
|
|
219,424
|
|
|
270,612
|
|
Operating lease
liabilities
|
|
129,758
|
|
|
125,900
|
|
|
107,250
|
|
Other current
liabilities
|
|
69,060
|
|
|
83,797
|
|
|
70,562
|
|
Total current
liabilities
|
|
1,091,502
|
|
|
1,422,009
|
|
|
1,094,012
|
|
Long term debt, net
of current maturities
|
|
593,281
|
|
|
592,687
|
|
|
590,431
|
|
Operating lease
liabilities, non-current
|
|
913,754
|
|
|
580,635
|
|
|
594,613
|
|
Other long term
liabilities
|
|
88,858
|
|
|
98,113
|
|
|
107,209
|
|
Total
liabilities
|
|
3,287,395
|
|
|
2,693,444
|
|
|
2,386,265
|
|
Total stockholders'
equity
|
|
1,550,180
|
|
|
2,150,087
|
|
|
2,049,807
|
|
Total liabilities and stockholders'
equity
|
|
$
|
4,837,575
|
|
|
$
|
4,843,531
|
|
|
$
|
4,436,072
|
|
Under Armour,
Inc.
For the Three Months
Ended March 31, 2020 and 2019
(Unaudited; in thousands)
|
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
|
Three Months Ended March 31,
|
|
2020
|
|
2019
|
Cash flows from operating
activities
|
|
|
|
Net income
(loss)
|
$
|
(589,681)
|
|
|
$
|
22,477
|
|
Adjustments to
reconcile net income (loss) to net cash used in operating
activities
|
|
|
|
Depreciation and
amortization
|
48,565
|
|
|
46,464
|
|
Unrealized foreign
currency exchange rate gain (loss)
|
12,976
|
|
|
(1,725)
|
|
Loss on disposal of
property and equipment
|
129
|
|
|
1,008
|
|
Impairment
charges
|
437,517
|
|
|
—
|
|
Amortization of bond
premium
|
63
|
|
|
63
|
|
Stock-based
compensation
|
10,465
|
|
|
12,493
|
|
Deferred income
taxes
|
23,253
|
|
|
(1,514)
|
|
Changes in reserves
and allowances
|
10,130
|
|
|
(9,655)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
27,596
|
|
|
(87,042)
|
|
Inventories
|
(59,701)
|
|
|
156,880
|
|
Prepaid expenses and
other assets
|
27,153
|
|
|
54,198
|
|
Other non-current
assets
|
(336,357)
|
|
|
21,594
|
|
Accounts
payable
|
(192,651)
|
|
|
(178,428)
|
|
Accrued expenses and
other liabilities
|
226,315
|
|
|
(99,505)
|
|
Customer refund
liabilities
|
(8,334)
|
|
|
(32,168)
|
|
Income taxes payable
and receivable
|
(4,150)
|
|
|
5,071
|
|
Net cash used in
operating activities
|
(366,712)
|
|
|
(89,789)
|
|
Cash flows from investing
activities
|
|
|
|
Purchases of property
and equipment
|
(31,498)
|
|
|
(35,911)
|
|
Purchases of other
assets
|
—
|
|
|
—
|
|
Purchase of
businesses
|
(37,343)
|
|
|
—
|
|
Net cash used in
investing activities
|
(68,841)
|
|
|
(35,911)
|
|
Cash flows from financing
activities
|
|
|
|
Proceeds from long
term debt and revolving credit facility
|
700,000
|
|
|
25,000
|
|
Payments on long term
debt and revolving credit facility
|
(100,000)
|
|
|
(161,250)
|
|
Cash paid for hedge
settlement
|
—
|
|
|
(1,566)
|
|
Employee taxes paid
for shares withheld for income taxes
|
(2,732)
|
|
|
(3,077)
|
|
Proceeds from
exercise of stock options and other stock issuances
|
1,649
|
|
|
2,232
|
|
Payments of debt
financing costs
|
—
|
|
|
(3,024)
|
|
Other financing
fees
|
35
|
|
|
50
|
|
Net cash provided by
(used in) financing activities
|
598,952
|
|
|
(141,635)
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
8,761
|
|
|
(569)
|
|
Net increase in
(decrease in) cash, cash equivalents and restricted cash
|
172,160
|
|
|
(267,904)
|
|
Cash, cash equivalents and restricted
cash
|
|
|
|
Beginning of
period
|
796,008
|
|
|
566,060
|
|
End of
period
|
$
|
968,168
|
|
|
$
|
298,156
|
|
Under Armour,
Inc.
For the Three Months
Ended March 31, 2020
(Unaudited)
|
|
The table below presents the reconciliation of net
revenue growth (decline) 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
|
|
|
|
Three Months Ended
March 31, 2020
|
Total Net Revenue
|
|
|
Net revenue decline -
GAAP
|
|
(22.8)
|
%
|
Foreign exchange
impact
|
|
0.4
|
%
|
Currency neutral net
revenue decline - Non-GAAP
|
|
(22.4)
|
%
|
|
|
|
North America
|
|
|
Net revenue decline -
GAAP
|
|
(27.8)
|
%
|
Foreign exchange
impact
|
|
(0.1)
|
%
|
Currency neutral net
revenue decline - Non-GAAP
|
|
(27.9)
|
%
|
|
|
|
EMEA
|
|
|
Net revenue growth -
GAAP
|
|
2.8
|
%
|
Foreign exchange
impact
|
|
1.0
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
3.8
|
%
|
|
|
|
Asia-Pacific
|
|
|
Net revenue decline -
GAAP
|
|
(33.7)
|
%
|
Foreign exchange
impact
|
|
1.8
|
%
|
Currency neutral net
revenue decline - Non-GAAP
|
|
(31.9)
|
%
|
|
|
|
Latin America
|
|
|
Net revenue growth -
GAAP
|
|
7.9
|
%
|
Foreign exchange
impact
|
|
3.5
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
11.4
|
%
|
|
|
|
Total International
|
|
|
Net revenue decline -
GAAP
|
|
(12.5)
|
%
|
Foreign exchange
impact
|
|
1.7
|
%
|
Currency neutral net
revenue decline - Non-GAAP
|
|
(10.8)
|
%
|
Under Armour,
Inc.
For the Three Months
Ended March 31, 2020
(Unaudited)
|
|
The tables below present 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.
|
|
ADJUSTED OPERATING LOSS
RECONCILIATION
|
|
|
|
Three Months
Ended
March 31,
2020
|
Loss from
operations
|
|
$
|
(558,180)
|
|
Add: Impact of
restructuring and related impairment
|
|
301,089
|
|
Add: Impact of
impairment
|
|
135,374
|
|
Adjusted loss from
operations
|
|
$
|
(121,717)
|
|
ADJUSTED NET LOSS
RECONCILIATION
|
|
|
|
Three Months
Ended
March 31,
2020
|
Net loss
|
|
$
|
(589,681)
|
|
Add: Impact of
restructuring and related impairment
|
|
302,080
|
|
Add: Impact of
impairment
|
|
135,820
|
|
Adjusted net
loss
|
|
$
|
(151,781)
|
|
ADJUSTED DILUTED LOSS PER SHARE
RECONCILIATION
|
|
|
|
Three Months
Ended
March 31,
2020
|
Diluted net loss per
share
|
|
$
|
(1.30)
|
|
Add: Impact of
restructuring and related impairment
|
|
0.66
|
|
Add: Impact of
impairment
|
|
0.30
|
|
Adjusted diluted loss
per share
|
|
$
|
(0.34)
|
|
Under Armour,
Inc.
As of March 31, 2020
and 2019
|
|
BRAND HOUSE AND FACTORY HOUSE DOOR
COUNT
|
|
|
|
March 31,
|
|
|
2020
|
|
2019
|
Factory
House
|
|
169
|
|
162
|
Brand
House
|
|
19
|
|
16
|
North America
total doors
|
|
188
|
|
178
|
|
|
|
|
|
Factory
House
|
|
113
|
|
76
|
Brand
House
|
|
122
|
|
76
|
International
total doors
|
|
235
|
|
152
|
|
|
|
|
|
Factory
House
|
|
282
|
|
238
|
Brand
House
|
|
141
|
|
92
|
Total
doors
|
|
423
|
|
330
|
View original
content:http://www.prnewswire.com/news-releases/under-armour-reports-first-quarter-2020-results-and-highlights-efforts-to-manage-through-impacts-of-covid-19-301056330.html
SOURCE Under Armour, Inc.