BALTIMORE, July 31, 2020 /PRNewswire/ -- Under
Armour, Inc. (NYSE: UA, UAA) today announced financial results for
the second quarter ended June 30,
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, and with respect to certain measure, the
non-cash amortization of debt discount on the company's convertible
debt 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.
"With the majority of our own stores and wholesale locations
closed for most of the second quarter due to the COVID-19 pandemic,
while we performed better than expected, we still experienced a
significant decline in revenue across all markets," said Under
Armour President and CEO Patrik
Frisk. "In navigating this environment, our team continues
to respond strategically and methodically – amplifying Under
Armour's connection with our consumers through innovative digital
activations, proactively managing our cost structure and working to
harness our brand strength amid shifts in consumer behavior to
emerge as a stronger company."
Frisk continued, "Now, with most of these doors reopened, we are
encouraged by some of the momentum we've experienced in June and
July. However, we remain appropriately cautious with respect to the
balance of 2020 due to continued uncertainty related to consumer
shopping dynamics, the potential for a highly promotional
environment and proactive decisions to reduce inventory purchases
to be more aligned with anticipated demand related to ongoing
COVID-19 impacts."
Second Quarter 2020 Review
- Revenue was down 41 percent to $708 million (down 40 percent currency neutral)
predominantly related to the COVID-19 pandemic impacts in the
quarter.
-
- Wholesale revenue decreased 58 percent to $299 million and direct-to-consumer revenue was
down 13 percent to $368 million.
- North America revenue
decreased 45 percent to $450 million
and revenue from our international business decreased 34 percent to
$224 million (down 32 percent
currency neutral). Within the international business, revenue
decreased 39 percent in EMEA (down 37 percent currency neutral),
decreased 20 percent in Asia-Pacific (down 17 percent currency
neutral), and decreased 72 percent in Latin America (down 68 percent currency
neutral).
- Apparel revenue decreased 42 percent to $426 million. Footwear revenue decreased 35
percent to $185 million. Accessories
revenue decreased 47 percent to $56
million.
- Gross margin increased 280 basis points to 49.3 percent
compared to the prior year driven by channel mix which benefitted
from significantly lower sales to the off-price channel, as well as
a higher mix of direct-to-consumer sales, partially offset by the
negative impacts from COVID-19 related discounting.
- Selling, general & administrative expenses decreased
15 percent to $480 million driven
primarily by reduced marketing spend in addition to other cost
cutting initiatives to mitigate top line impacts from COVID-19
including lower incentive compensation and reduced variable
expenses tied to revenue.
- Restructuring and impairment charges were $39 million consisting of $28 million in non-cash and $11 million in cash related charges. For the full
year, the company has recognized $475
million of restructuring and impairment charges consisting
of $340 million in restructuring and
related impairment charges ($326
million in non-cash and $14
million in cash related charges) and $135 million from impairments of long-lived
assets and goodwill.
- Operating loss was $170
million. Excluding the impact of restructuring and
impairment charges, adjusted operating loss was $131 million.
- Net loss was $183 million.
Adjusted net loss was $141
million.
- Diluted loss per share was $0.40. Adjusted diluted loss per share was
$0.31.
- Inventory was up 24 percent to $1.2 billion.
COVID-19 Update
Due to ongoing uncertainty related to COVID-19 and its potential
effect on global markets, the company continues to anticipate
material impacts on its business results for the remainder of 2020.
The following provides additional information on channels and the
company's cash and liquidity position.
- Channel Status and Trends
-
- Through mid-May, the company estimated that approximately 80
percent of locations where the brand could be purchased globally
were closed. As of today, with most of these doors having reopened,
traffic trends continue to be considerably lower than the prior
year period, however, the overall rate of conversion is higher. The
company expects traffic trends to remain lower for the remainder of
2020.
- Additionally, the company experienced significant eCommerce
growth around the world during the quarter.
- Cash and Liquidity
-
- The company ended the second quarter with Cash and
Cash Equivalents of $1.1
billion.
- During the quarter, the company amended its credit agreement,
in order to provide improved access to liquidity during this
period. Under the amended $1.1
billion revolving credit facility, there was $250 million outstanding at the end of the second
quarter.
- Additionally, the company issued $500
million of convertible senior notes, utilizing $440 million of the net proceeds to reduce the
amount outstanding under its revolving credit facility.
Conference Call and Webcast
Under Armour will hold its second 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 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. Management believes this
information is useful to investors because it enhances visibility
into the company's actual underlying results excluding these
impacts. Adjusted net loss and adjusted diluted loss per share also
exclude the non-cash amortization of debt discount on the company's
convertible senior notes and related tax effects. Management
believes the non-cash portion of the interest expense, which
represents the accretion of the bifurcated equity component of the
conversion option of the convertible senior notes, is not core to
the company's operations given the intent and ability to settle in
shares of the company's Class C common stock. 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. 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 access 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 and Six
Months Ended June 30, 2020 and 2019
(Unaudited; in
thousands, except per share amounts)
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June
30,
|
|
|
|
|
|
|
|
2020
|
|
% of Net
Revenues
|
|
2019
|
|
% of Net
Revenues
|
|
2020
|
|
% of Net
Revenues
|
|
2019
|
|
% of Net
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
$
|
707,640
|
|
|
100.0
|
%
|
|
$
|
1,191,729
|
|
|
100.0
|
%
|
|
$
|
1,637,880
|
|
|
100.0
|
%
|
|
$
|
2,396,451
|
|
|
100.0
|
%
|
Cost of goods
sold
|
|
358,471
|
|
|
50.7
|
%
|
|
637,408
|
|
|
53.5
|
%
|
|
857,727
|
|
|
52.4
|
%
|
|
1,297,343
|
|
|
54.1
|
%
|
Gross
profit
|
|
349,169
|
|
|
49.3
|
%
|
|
554,321
|
|
|
46.5
|
%
|
|
780,153
|
|
|
47.6
|
%
|
|
1,099,108
|
|
|
45.9
|
%
|
Selling, general and
administrative expenses
|
|
479,906
|
|
|
67.8
|
%
|
|
565,803
|
|
|
47.5
|
%
|
|
1,032,607
|
|
|
63.0
|
%
|
|
1,075,331
|
|
|
44.9
|
%
|
Restructuring and
impairment charges
|
|
38,937
|
|
|
5.5
|
%
|
|
—
|
|
|
—
|
%
|
|
475,400
|
|
|
29.0
|
%
|
|
—
|
|
|
—
|
%
|
Income (loss) from
operations
|
|
(169,674)
|
|
|
(24.0)
|
%
|
|
(11,482)
|
|
|
(1.0)
|
%
|
|
(727,854)
|
|
|
(44.4)
|
%
|
|
23,777
|
|
|
1.0
|
%
|
Interest expense,
net
|
|
(11,336)
|
|
|
(1.6)
|
%
|
|
(5,988)
|
|
|
(0.5)
|
%
|
|
(17,296)
|
|
|
(1.1)
|
%
|
|
(10,226)
|
|
|
(0.4)
|
%
|
Other expense,
net
|
|
(4,843)
|
|
|
(0.7)
|
%
|
|
(1,128)
|
|
|
(0.1)
|
%
|
|
(3,309)
|
|
|
(0.2)
|
%
|
|
(1,795)
|
|
|
(0.1)
|
%
|
Income (loss)
before income taxes
|
|
(185,853)
|
|
|
(26.3)
|
%
|
|
(18,598)
|
|
|
(1.6)
|
%
|
|
(748,459)
|
|
|
(45.7)
|
%
|
|
11,756
|
|
|
0.5
|
%
|
Income tax expense
(benefit)
|
|
(3,137)
|
|
|
(0.4)
|
%
|
|
(5,740)
|
|
|
(0.5)
|
%
|
|
18,410
|
|
|
1.1
|
%
|
|
2,391
|
|
|
0.1
|
%
|
Loss from equity
method investments
|
|
(179)
|
|
|
—
|
%
|
|
(4,491)
|
|
|
(0.4)
|
%
|
|
(5,707)
|
|
|
(0.3)
|
%
|
|
(4,237)
|
|
|
(0.2)
|
%
|
Net income
(loss)
|
|
$
|
(182,895)
|
|
|
(25.8)
|
%
|
|
$
|
(17,349)
|
|
|
(1.5)
|
%
|
|
$
|
(772,576)
|
|
|
(47.2)
|
%
|
|
$
|
5,128
|
|
|
0.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share of Class A,
B and C common stock
|
|
$
|
(0.40)
|
|
|
|
|
$
|
(0.04)
|
|
|
|
|
$
|
(1.70)
|
|
|
|
|
$
|
0.01
|
|
|
|
Diluted net income
(loss) per share of Class
A, B and C common stock
|
|
$
|
(0.40)
|
|
|
|
|
$
|
(0.04)
|
|
|
|
|
$
|
(1.70)
|
|
|
|
|
$
|
0.01
|
|
|
|
Weighted average
common shares outstanding Class A, B and C common
stock
|
Basic
|
|
454,121
|
|
|
|
|
451,066
|
|
|
|
|
453,496
|
|
|
|
|
450,411
|
|
|
|
Diluted
|
|
454,121
|
|
|
|
|
451,066
|
|
|
|
|
453,496
|
|
|
|
|
453,717
|
|
|
|
Under Armour,
Inc.
For the Three and Six
Months Ended June 30, 2020 and 2019
(Unaudited; in
thousands)
|
|
NET REVENUES BY
PRODUCT CATEGORY
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June
30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
% Change
|
|
2020
|
|
2019
|
|
% Change
|
Apparel
|
|
$
|
425,858
|
|
|
$
|
739,736
|
|
|
(42.4)
|
%
|
|
$
|
1,024,145
|
|
|
$
|
1,514,366
|
|
|
(32.4)
|
%
|
Footwear
|
|
185,089
|
|
|
284,080
|
|
|
(34.8)
|
%
|
|
394,777
|
|
|
576,627
|
|
|
(31.5)
|
%
|
Accessories
|
|
56,104
|
|
|
106,250
|
|
|
(47.2)
|
%
|
|
123,852
|
|
|
188,242
|
|
|
(34.2)
|
%
|
Total net
sales
|
|
667,051
|
|
|
1,130,066
|
|
|
(41.0)
|
%
|
|
1,542,774
|
|
|
2,279,235
|
|
|
(32.3)
|
%
|
Licensing
revenues
|
|
6,188
|
|
|
25,308
|
|
|
(75.5)
|
%
|
|
26,123
|
|
|
46,965
|
|
|
(44.4)
|
%
|
Connected
Fitness
|
|
32,912
|
|
|
31,935
|
|
|
3.1
|
%
|
|
65,706
|
|
|
62,039
|
|
|
5.9
|
%
|
Corporate
Other
|
|
1,489
|
|
|
4,420
|
|
|
(66.3)
|
%
|
|
$
|
3,277
|
|
|
$
|
8,212
|
|
|
(60.1)
|
%
|
Total net
revenues
|
|
$
|
707,640
|
|
|
$
|
1,191,729
|
|
|
(40.6)
|
%
|
|
$
|
1,637,880
|
|
|
$
|
2,396,451
|
|
|
(31.7)
|
%
|
|
|
NET REVENUES BY
SEGMENT
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June
30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
% Change
|
|
2020
|
|
2019
|
|
% Change
|
North
America
|
|
$
|
449,702
|
|
|
$
|
816,220
|
|
|
(44.9)
|
%
|
|
$
|
1,058,682
|
|
|
$
|
1,659,469
|
|
|
(36.2)
|
%
|
EMEA
|
|
89,125
|
|
|
145,320
|
|
|
(38.7)
|
%
|
|
227,029
|
|
|
279,424
|
|
|
(18.8)
|
%
|
Asia-Pacific
|
|
123,265
|
|
|
154,113
|
|
|
(20.0)
|
%
|
|
218,951
|
|
|
298,398
|
|
|
(26.6)
|
%
|
Latin
America
|
|
11,147
|
|
|
39,721
|
|
|
(71.9)
|
%
|
|
64,235
|
|
|
88,909
|
|
|
(27.8)
|
%
|
Connected
Fitness
|
|
32,912
|
|
|
31,935
|
|
|
3.1
|
%
|
|
65,706
|
|
|
62,039
|
|
|
5.9
|
%
|
Corporate
Other
|
|
1,489
|
|
|
4,420
|
|
|
(66.3)
|
%
|
|
3,277
|
|
|
$
|
8,212
|
|
|
(60.1)
|
%
|
Total net
revenues
|
|
$
|
707,640
|
|
|
$
|
1,191,729
|
|
|
(40.6)
|
%
|
|
$
|
1,637,880
|
|
|
$
|
2,396,451
|
|
|
(31.7)
|
%
|
|
INCOME (LOSS) FROM
OPERATIONS
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June
30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
% of Net
Revenues (1)
|
|
2019
|
% of Net
Revenues (1)
|
|
2020
|
% of Net
Revenues (1)
|
|
2019
|
|
% of Net
Revenues (1)
|
North
America
|
|
$
|
30,759
|
|
6.8
|
%
|
|
$
|
139,198
|
|
17.1
|
%
|
|
$
|
26,986
|
|
2.5
|
%
|
|
$
|
299,471
|
|
|
18.0
|
%
|
EMEA
|
|
(698)
|
|
(0.8)
|
%
|
|
10,493
|
|
7.2
|
%
|
|
3,006
|
|
1.3
|
%
|
|
22,711
|
|
|
8.1
|
%
|
Asia-Pacific
|
|
(12,447)
|
|
(10.1)
|
%
|
|
19,647
|
|
12.7
|
%
|
|
(49,288)
|
|
(22.5)
|
%
|
|
39,450
|
|
|
13.2
|
%
|
Latin
America
|
|
(4,374)
|
|
(39.2)
|
%
|
|
(3,891)
|
|
(9.8)
|
%
|
|
(52,558)
|
|
(81.8)
|
%
|
|
(4,250)
|
|
|
(4.8)
|
%
|
Connected
Fitness
|
|
3,691
|
|
11.2
|
%
|
|
11
|
|
—
|
%
|
|
7,391
|
|
11.2
|
%
|
|
1,080
|
|
|
1.7
|
%
|
Corporate
Other
|
|
(186,605)
|
|
NM
|
|
|
(176,940)
|
|
NM
|
|
|
(663,391)
|
|
NM
|
|
|
(334,685)
|
|
|
NM
|
|
Income (loss)
from
operations
|
|
$
|
(169,674)
|
|
(24.0)
|
%
|
|
$
|
(11,482)
|
|
(1.0)
|
%
|
|
$
|
(727,854)
|
|
(44.4)
|
%
|
|
$
|
23,777
|
|
|
1.0
|
%
|
|
(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 June 30,
2020, December 31, 2019 and June 30, 2019
(Unaudited; in
thousands)
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
June 30,
2020
|
|
December 31,
2019
|
|
June 30,
2019
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,079,409
|
|
|
$
|
788,072
|
|
|
$
|
455,726
|
|
Accounts receivable,
net
|
|
568,430
|
|
|
708,714
|
|
|
735,181
|
|
Inventories
|
|
1,198,509
|
|
|
892,258
|
|
|
965,711
|
|
Prepaid expenses and
other current assets
|
|
242,661
|
|
|
313,165
|
|
|
287,829
|
|
Total current
assets
|
|
3,089,009
|
|
|
2,702,209
|
|
|
2,444,447
|
|
Property and
equipment, net
|
|
702,885
|
|
|
792,148
|
|
|
795,499
|
|
Operating lease
right-of-use assets
|
|
568,010
|
|
|
591,931
|
|
|
606,018
|
|
Goodwill
|
|
486,868
|
|
|
550,178
|
|
|
548,762
|
|
Intangible assets,
net
|
|
38,748
|
|
|
36,345
|
|
|
39,527
|
|
Deferred income
taxes
|
|
42,589
|
|
|
82,379
|
|
|
129,403
|
|
Other long term
assets
|
|
75,232
|
|
|
88,341
|
|
|
116,252
|
|
Total
assets
|
|
$
|
5,003,341
|
|
|
$
|
4,843,531
|
|
|
$
|
4,679,908
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Revolving credit
facility, current
|
|
$
|
250,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Accounts
payable
|
|
664,288
|
|
|
618,194
|
|
|
607,382
|
|
Accrued
expenses
|
|
266,399
|
|
|
374,694
|
|
|
304,063
|
|
Customer refund
liabilities
|
|
199,016
|
|
|
219,424
|
|
|
241,456
|
|
Operating lease
liabilities
|
|
148,408
|
|
|
125,900
|
|
|
116,219
|
|
Other current
liabilities
|
|
90,503
|
|
|
83,797
|
|
|
63,521
|
|
Total current
liabilities
|
|
1,618,614
|
|
|
1,422,009
|
|
|
1,332,641
|
|
Long term debt, net
of current maturities
|
|
987,949
|
|
|
592,687
|
|
|
591,396
|
|
Operating lease
liabilities, non-current
|
|
892,465
|
|
|
580,635
|
|
|
601,665
|
|
Other long term
liabilities
|
|
80,899
|
|
|
98,113
|
|
|
105,932
|
|
Total
liabilities
|
|
3,579,927
|
|
|
2,693,444
|
|
|
2,631,634
|
|
Total stockholders'
equity
|
|
1,423,414
|
|
|
2,150,087
|
|
|
2,048,274
|
|
Total liabilities
and stockholders' equity
|
|
$
|
5,003,341
|
|
|
$
|
4,843,531
|
|
|
$
|
4,679,908
|
|
Under Armour,
Inc.
For the Six Months
Ended June 30, 2020 and 2019
(Unaudited; in
thousands)
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
Cash flows from
operating activities
|
|
|
|
Net income
(loss)
|
$
|
(772,576)
|
|
|
$
|
5,128
|
|
Adjustments to
reconcile net income (loss) to net cash used in operating
activities
|
|
|
|
Depreciation and
amortization
|
86,919
|
|
|
93,721
|
|
Unrealized foreign
currency exchange rate gain (loss)
|
(1,134)
|
|
|
(3,077)
|
|
Loss on disposal of
property and equipment
|
825
|
|
|
2,447
|
|
Impairment
charges
|
449,090
|
|
|
—
|
|
Amortization of bond
premium
|
1,867
|
|
|
127
|
|
Stock-based
compensation
|
23,258
|
|
|
25,635
|
|
Deferred income
taxes
|
22,296
|
|
|
(13,890)
|
|
Changes in reserves
and allowances
|
19,772
|
|
|
(10,196)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
126,059
|
|
|
(75,116)
|
|
Inventories
|
(307,430)
|
|
|
62,302
|
|
Prepaid expenses and
other assets
|
77,368
|
|
|
64,533
|
|
Other non-current
assets
|
(301,523)
|
|
|
12,812
|
|
Accounts
payable
|
46,449
|
|
|
57,674
|
|
Accrued expenses and
other liabilities
|
230,670
|
|
|
(48,094)
|
|
Customer refund
liabilities
|
(18,630)
|
|
|
(60,089)
|
|
Income taxes payable
and receivable
|
7,310
|
|
|
(1,210)
|
|
Net cash provided by
(used in) operating activities
|
(309,410)
|
|
|
112,707
|
|
Cash flows from
investing activities
|
|
|
|
Purchases of property
and equipment
|
(50,862)
|
|
|
(77,046)
|
|
Purchases of other
assets
|
—
|
|
|
(997)
|
|
Purchase of
businesses
|
(38,190)
|
|
|
—
|
|
Net cash used in
investing activities
|
(89,052)
|
|
|
(78,043)
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from long
term debt and revolving credit facility
|
1,288,753
|
|
|
25,000
|
|
Payments on long term
debt and revolving credit facility
|
(550,000)
|
|
|
(162,817)
|
|
Purchase of capped
call
|
(47,850)
|
|
|
—
|
|
Employee taxes paid
for shares withheld for income taxes
|
(2,732)
|
|
|
(3,077)
|
|
Proceeds from
exercise of stock options and other stock issuances
|
2,859
|
|
|
4,238
|
|
Payments of debt
financing costs
|
(4,823)
|
|
|
(2,661)
|
|
Other financing
fees
|
—
|
|
|
76
|
|
Net cash provided by
(used in) financing activities
|
686,207
|
|
|
(139,241)
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
4,351
|
|
|
4,463
|
|
Net increase in
(decrease in) cash, cash equivalents and restricted cash
|
292,096
|
|
|
(100,114)
|
|
Cash, cash
equivalents and restricted cash
|
|
|
|
Beginning of
period
|
796,008
|
|
|
566,060
|
|
End of
period
|
$
|
1,088,104
|
|
|
$
|
465,946
|
|
Under Armour,
Inc.
For the Three and Six
Months Ended June 30, 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
June 30, 2020
|
Total Net
Revenue
|
|
|
Net revenue decline -
GAAP
|
|
(40.6)
|
%
|
Foreign exchange
impact
|
|
0.8
|
%
|
Currency neutral net
revenue decline - Non-GAAP
|
|
(39.8)
|
%
|
|
|
|
North
America
|
|
|
Net revenue decline -
GAAP
|
|
(44.9)
|
%
|
Foreign exchange
impact
|
|
0.1
|
%
|
Currency neutral net
revenue decline - Non-GAAP
|
|
(44.8)
|
%
|
|
|
|
EMEA
|
|
|
Net revenue growth -
GAAP
|
|
(38.7)
|
%
|
Foreign exchange
impact
|
|
1.5
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
(37.2)
|
%
|
|
|
|
Asia-Pacific
|
|
|
Net revenue decline -
GAAP
|
|
(20.0)
|
%
|
Foreign exchange
impact
|
|
3.2
|
%
|
Currency neutral net
revenue decline - Non-GAAP
|
|
(16.8)
|
%
|
|
|
|
Latin
America
|
|
|
Net revenue growth -
GAAP
|
|
(71.9)
|
%
|
Foreign exchange
impact
|
|
3.5
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
(68.4)
|
%
|
|
|
|
Total
International
|
|
|
Net revenue decline -
GAAP
|
|
(34.1)
|
%
|
Foreign exchange
impact
|
|
2.5
|
%
|
Currency neutral net
revenue decline - Non-GAAP
|
|
(31.6)
|
%
|
Under Armour,
Inc.
For the Three and Six
Months Ended June 30, 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
June 30, 2020
|
Loss from
operations
|
|
$
|
(169,674)
|
|
Add: Impact of
restructuring and related impairment
|
|
38,937
|
|
Adjusted loss from
operations
|
|
$
|
(130,737)
|
|
|
|
ADJUSTED NET LOSS
RECONCILIATION
|
|
|
|
Three months
ended
June 30, 2020
|
Net loss
|
|
$
|
(182,895)
|
|
Add: Impact of
restructuring and related impairment
|
|
40,201
|
|
Add: Impact of
amortization of debt discount
|
|
1,797
|
|
Adjusted net
loss
|
|
$
|
(140,897)
|
|
|
|
ADJUSTED DILUTED
LOSS PER SHARE RECONCILIATION
|
|
|
|
Three months
ended
June 30, 2020
|
Diluted net loss per
share
|
|
$
|
(0.40)
|
|
Add: Impact of
restructuring and related impairment
|
|
0.09
|
|
Add: Impact of
amortization of debt discount
|
|
—
|
|
Adjusted diluted loss
per share
|
|
$
|
(0.31)
|
|
Under Armour,
Inc.
As of June 30, 2020
and 2019
|
|
BRAND HOUSE AND
FACTORY HOUSE DOOR COUNT
|
|
|
|
June 30,
|
|
|
2020
|
|
2019
|
Factory
House
|
|
170
|
|
165
|
Brand
House
|
|
18
|
|
16
|
North America
total doors
|
|
188
|
|
181
|
|
|
|
|
|
Factory
House
|
|
116
|
|
86
|
Brand
House
|
|
123
|
|
79
|
International
total doors
|
|
239
|
|
165
|
|
|
|
|
|
Factory
House
|
|
286
|
|
251
|
Brand
House
|
|
141
|
|
95
|
Total
doors
|
|
427
|
|
346
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/under-armour-reports-second-quarter-2020-results-301103607.html
SOURCE Under Armour, Inc.