BALTIMORE, May 4, 2021 /PRNewswire/ -- Under
Armour, Inc. (NYSE: UA, UAA) today announced unaudited financial
results for the first quarter ended March
31, 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.
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 measures, the
non-cash amortization of debt discount on the company's convertible
debt, and related tax effects. 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.
"Under Armour is off to an excellent start for the year. Our
first-quarter results demonstrate that our improved operating model
and investments we're making to amplify our connection with
consumers are enabling us to deliver against strong demand for our
brand," said Under Armour President and CEO Patrik Frisk. "Additionally, with a solid
balance sheet and well-managed inventory, we're confident in our
ability to drive well through 2021 as we get back on offense and
make measured progress to returning to sustainable, profitable
growth over the long-term."
First Quarter 2021 Review
- Revenue was up 35 percent to $1.3
billion (up 32 percent currency neutral) compared to the
prior year.
-
- Wholesale revenue increased 35 percent to $800 million and direct-to-consumer revenue
increased 54 percent to $437 million,
driven by 69 percent growth in eCommerce.
- North America revenue
increased 32 percent to $806 million
and international revenue increased 58 percent to $452 million (up 50 percent currency neutral).
Within the international business, revenue increased 41 percent in
EMEA (up 33 percent currency neutral), increased 120 percent in
Asia-Pacific (up 107 percent
currency neutral), and decreased 9 percent in Latin America (down 7 percent currency
neutral).
- Apparel revenue increased 35 percent to $810 million. Footwear revenue increased 47
percent to $309 million. Accessories
revenue increased 73 percent to $117
million.
- Gross margin increased 370 basis points to 50.0 percent
compared to the prior year, driven primarily by benefits from
pricing, supply chain initiatives, and channel mix.
- Selling, general & administrative expenses decreased
7 percent to $515 million primarily
due to lower legal and marketing costs than the prior year.
- Restructuring and impairment charges were $7 million.
- Operating income was $107
million. Adjusted operating income was
$114 million.
- Net income was $78
million. Adjusted net income was $75 million.
- Diluted earnings per share was $0.17. Adjusted diluted earnings per
share was $0.16.
- Inventory was down 9 percent to $852 million.
- Cash and Cash Equivalents was $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 now expected to be up at a high-teen
percentage rate compared to the previous expectation of a
high-single-digit percentage rate increase, reflecting a high-teen
percentage growth rate in North
America and low thirties percentage growth rate in the
international business.
- Gross margin is now expected to be up approximately 50
basis points compared to the previous expectation of 'up slightly,'
versus the prior year adjusted gross margin of 48.6 percent
with benefits from pricing and supply chain efficiency, being
largely offset by the sale of MyFitnessPal, which carried a
high gross margin rate.
- Operating income is now expected to reach approximately
$105 million to $115 million compared to the previous range of
$5 million to $25 million. Excluding the impact of
restructuring efforts, adjusted operating income is expected
to reach $230 million to $240 million compared to the previous expectation
of $130 million to $150 million.
- Diluted loss per share is now expected to be about
$0.02 to $0.04 compared to the previous expectation of a
diluted loss per share of $0.18 to
$0.20 and adjusted diluted
earnings per share is expected to be in the range of
$0.28 to $0.30 compared to the previous expectation of
adjusted diluted earnings per share in the range of $0.12 to $0.14.
2020 Restructuring Plan
In April 2020, Under Armour
announced a restructuring plan designed to rebalance its cost base
to improve profitability and cash flow. Of the estimated
$550 million to $600 million restructuring plan range, the
company has recognized $480 million
of pre-tax charges, including $7
million in the first quarter of 2021. Of the $480 million recognized, there has been
$126 million in cash-related charges
and $354 million in non-cash-related
charges. The company expects to realize approximately $35 million to $40
million in charges related to this plan in the second
quarter.
COVID-19 Update
Under Armour remains focused on protecting teammate and consumer
health and safety while working with its suppliers, partners, and
customers to navigate potential disruptions. Given continued
uncertainty related to COVID-19, there could be potential material
impacts on its full-year business results in 2021.
Conference Call and Webcast
Under Armour will hold its first-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. Currency-neutral financial
information is calculated to exclude the impact of changes in
foreign currency exchange rates. Management believes this
information is helpful to investors to compare 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 its actual underlying results,
excluding these impacts. Adjusted interest expense, adjusted other
expense, 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. Management believes the
non-cash portion of the interest expense, which represents the
accretion of the bifurcated equity component of the convertible
senior notes' conversion option, 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 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, 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, 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; 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 or failure of our
suppliers or manufacturers to produce or deliver our products in a
timely or cost-effective manner; 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 Months
Ended March 31, 2021 and 2020
|
(Unaudited; in
thousands, except per share amounts)
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
Three Months Ended
March 31,
|
|
|
2021
|
|
% of Net
Revenues
|
|
2020
|
|
% of Net
Revenues
|
Net
revenues
|
|
$
|
1,257,195
|
|
|
100.0
|
%
|
|
$
|
930,240
|
|
|
100.0
|
%
|
Cost of goods
sold
|
|
628,554
|
|
|
50.0
|
%
|
|
499,256
|
|
|
53.7
|
%
|
Gross
profit
|
|
628,641
|
|
|
50.0
|
%
|
|
430,984
|
|
|
46.3
|
%
|
Selling, general and
administrative expenses
|
|
514,638
|
|
|
40.9
|
%
|
|
552,701
|
|
|
59.4
|
%
|
Restructuring and
impairment charges
|
|
7,113
|
|
|
0.6
|
%
|
|
436,463
|
|
|
46.9
|
%
|
Income (loss) from
operations
|
|
106,890
|
|
|
8.5
|
%
|
|
(558,180)
|
|
|
(60.0)
|
%
|
Interest expense,
net
|
|
(14,137)
|
|
|
(1.1)
|
%
|
|
(5,960)
|
|
|
(0.6)
|
%
|
Other income
(expense), net
|
|
(7,180)
|
|
|
(0.6)
|
%
|
|
1,534
|
|
|
0.2
|
%
|
Income (loss)
before income taxes
|
|
85,573
|
|
|
6.8
|
%
|
|
(562,606)
|
|
|
(60.5)
|
%
|
Income tax
expense
|
|
9,881
|
|
|
0.8
|
%
|
|
21,547
|
|
|
2.3
|
%
|
Income (loss) from
equity method investments
|
|
2,060
|
|
|
0.2
|
%
|
|
(5,528)
|
|
|
(0.6)
|
%
|
Net income
(loss)
|
|
$
|
77,752
|
|
|
6.2
|
%
|
|
$
|
(589,681)
|
|
|
(63.4)
|
%
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share of Class A, B and C common stock
|
|
$
|
0.17
|
|
|
|
|
$
|
(1.30)
|
|
|
|
Diluted net income
(loss) per share of Class A, B and C common
stock
|
|
$
|
0.17
|
|
|
|
|
$
|
(1.30)
|
|
|
|
Weighted average
common shares outstanding Class A, B and C common
stock
|
Basic
|
|
456,014
|
|
|
|
|
452,871
|
|
|
|
Diluted
|
|
459,226
|
|
|
|
|
452,871
|
|
|
|
Under Armour,
Inc.
|
For the Three Months
Ended March 31, 2021 and 2020
|
(Unaudited; in
thousands)
|
|
NET REVENUES BY
PRODUCT CATEGORY
|
|
|
|
Three Months Ended
March 31,
|
in '000s
|
|
2021
|
|
2020
|
|
% Change
|
Apparel
|
|
$
|
810,041
|
|
|
$
|
598,287
|
|
|
35.4
|
%
|
Footwear
|
|
309,047
|
|
|
209,688
|
|
|
47.4
|
%
|
Accessories
|
|
117,396
|
|
|
67,748
|
|
|
73.3
|
%
|
Total net
sales
|
|
1,236,484
|
|
|
875,723
|
|
|
41.2
|
%
|
Licensing
revenues
|
|
21,657
|
|
|
19,935
|
|
|
8.6
|
%
|
Corporate Other
(1)
|
|
(946)
|
|
|
34,582
|
|
|
(102.7)
|
%
|
Total net
revenues
|
|
$
|
1,257,195
|
|
|
$
|
930,240
|
|
|
35.1
|
%
|
NET REVENUES BY
SEGMENT
|
|
|
|
Three Months Ended
March 31,
|
in '000s
|
|
2021
|
|
2020
|
|
% Change
|
North
America
|
|
$
|
805,727
|
|
|
$
|
608,980
|
|
|
32.3
|
%
|
EMEA
|
|
193,883
|
|
|
137,904
|
|
|
40.6
|
%
|
Asia-Pacific
|
|
210,220
|
|
|
95,686
|
|
|
119.7
|
%
|
Latin
America
|
|
48,311
|
|
|
53,088
|
|
|
(9.0)
|
%
|
Corporate Other
(1)
|
|
(946)
|
|
|
34,582
|
|
|
(102.7)
|
%
|
Total net
revenues
|
|
$
|
1,257,195
|
|
|
$
|
930,240
|
|
|
35.1
|
%
|
INCOME (LOSS) FROM
OPERATIONS
|
|
|
|
Three Months Ended
March 31,
|
in '000s
|
|
2021
|
% of Net
Revenues (2)
|
|
2020
|
% of Net
Revenues (2)
|
North
America
|
|
$
|
210,562
|
|
26.1
|
%
|
|
$
|
(3,773)
|
|
(0.6)
|
%
|
EMEA
|
|
26,686
|
|
13.8
|
%
|
|
3,704
|
|
2.7
|
%
|
Asia-Pacific
|
|
46,513
|
|
22.1
|
%
|
|
(36,841)
|
|
(38.5)
|
%
|
Latin
America
|
|
1,457
|
|
3.0
|
%
|
|
(48,184)
|
|
(90.8)
|
%
|
Corporate
Other
|
|
(178,328)
|
|
NM
|
|
(473,086)
|
|
NM
|
Income (loss) from
operations
|
|
$
|
106,890
|
|
8.5
|
%
|
|
$
|
(558,180)
|
|
(60.0)
|
%
|
|
(1) Prior to
Fiscal 2021, the Company's Connected Fitness segment was discretely
disclosed; however, effective January 1, 2021 Corporate Other now
includes the remaining Connected Fitness business consisting of
MapMyRun for Fiscal 2021 and the entire Connected Fitness,
including MyFitnessPal for Fiscal 2020. All prior period balances
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.
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.
|
|
(2) 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 a meaningful metric
(NM).
|
Under Armour,
Inc.
|
As of March 31,
2021, December 31, 2020 and March 31, 2020
|
(Unaudited; in
thousands)
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
in '000s
|
|
March 31,
2021
|
|
December 31,
2020
|
|
March 31,
2020
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,348,737
|
|
|
$
|
1,517,361
|
|
|
$
|
959,318
|
|
Accounts receivable,
net
|
|
696,287
|
|
|
527,340
|
|
|
668,409
|
|
Inventories
|
|
851,829
|
|
|
895,974
|
|
|
940,236
|
|
Prepaid expenses and
other current assets, net
|
|
260,865
|
|
|
282,300
|
|
|
300,044
|
|
Total current
assets
|
|
3,157,718
|
|
|
3,222,975
|
|
|
2,868,007
|
|
Property and
equipment, net
|
|
632,307
|
|
|
658,678
|
|
|
726,568
|
|
Operating lease
right-of-use assets
|
|
511,130
|
|
|
536,660
|
|
|
583,418
|
|
Goodwill
|
|
497,970
|
|
|
502,214
|
|
|
485,672
|
|
Intangible assets,
net
|
|
12,548
|
|
|
13,295
|
|
|
40,490
|
|
Deferred income
taxes
|
|
23,796
|
|
|
23,930
|
|
|
39,576
|
|
Other long term
assets
|
|
78,827
|
|
|
72,876
|
|
|
93,844
|
|
Total
assets
|
|
$
|
4,914,296
|
|
|
$
|
5,030,628
|
|
|
$
|
4,837,575
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Revolving credit
facility, current
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
600,000
|
|
Accounts
payable
|
|
490,860
|
|
|
575,954
|
|
|
417,397
|
|
Accrued
expenses
|
|
311,905
|
|
|
378,859
|
|
|
267,115
|
|
Customer refund
liabilities
|
|
191,979
|
|
|
203,399
|
|
|
208,172
|
|
Operating lease
liabilities
|
|
160,918
|
|
|
162,561
|
|
|
129,758
|
|
Other current
liabilities
|
|
78,655
|
|
|
92,503
|
|
|
69,060
|
|
Total current
liabilities
|
|
1,234,317
|
|
|
1,413,276
|
|
|
1,691,502
|
|
Long term debt, net
of current maturities
|
|
1,009,951
|
|
|
1,003,556
|
|
|
593,281
|
|
Operating lease
liabilities, non-current
|
|
801,292
|
|
|
839,414
|
|
|
913,754
|
|
Other long term
liabilities
|
|
98,537
|
|
|
98,389
|
|
|
88,858
|
|
Total
liabilities
|
|
3,144,097
|
|
|
3,354,635
|
|
|
3,287,395
|
|
Total stockholders'
equity
|
|
1,770,199
|
|
|
1,675,993
|
|
|
1,550,180
|
|
Total liabilities
and stockholders' equity
|
|
$
|
4,914,296
|
|
|
$
|
5,030,628
|
|
|
$
|
4,837,575
|
|
Under Armour,
Inc.
|
For the Three Months
Ended March 31, 2021 and 2020
|
(Unaudited; in
thousands)
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
Three Months Ended
March 31,
|
in '000s
|
2021
|
|
2020
|
Cash flows from
operating activities
|
|
|
|
Net income
(loss)
|
$
|
77,752
|
|
|
$
|
(589,681)
|
|
Adjustments to
reconcile net income (loss) to net cash used in operating
activities
|
|
|
|
Depreciation and
amortization
|
35,512
|
|
|
48,565
|
|
Unrealized foreign
currency exchange rate gain (loss)
|
14,702
|
|
|
12,976
|
|
Loss on disposal of
property and equipment
|
575
|
|
|
129
|
|
Impairment
charges
|
5,601
|
|
|
437,517
|
|
Amortization of bond
premium
|
5,273
|
|
|
63
|
|
Stock-based
compensation
|
10,372
|
|
|
10,465
|
|
Deferred income
taxes
|
(9)
|
|
|
23,253
|
|
Changes in reserves
and allowances
|
(9,262)
|
|
|
10,130
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(170,493)
|
|
|
27,596
|
|
Inventories
|
49,246
|
|
|
(59,701)
|
|
Prepaid expenses and
other assets
|
22,295
|
|
|
27,153
|
|
Other non-current
assets
|
19,467
|
|
|
(336,357)
|
|
Accounts
payable
|
(80,092)
|
|
|
(192,651)
|
|
Accrued expenses and
other liabilities
|
(121,841)
|
|
|
226,315
|
|
Customer refund
liabilities
|
(10,949)
|
|
|
(8,334)
|
|
Income taxes payable
and receivable
|
1,263
|
|
|
(4,150)
|
|
Net cash provided by
(used in) operating activities
|
(150,588)
|
|
|
(366,712)
|
|
Cash flows from
investing activities
|
|
|
|
Purchases of property
and equipment
|
(8,465)
|
|
|
(31,498)
|
|
Sale of property and
equipment
|
561
|
|
|
—
|
|
Purchase of
businesses
|
—
|
|
|
(37,343)
|
|
Net cash used in
investing activities
|
(7,904)
|
|
|
(68,841)
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from long
term debt and revolving credit facility
|
—
|
|
|
700,000
|
|
Payments on long term
debt and revolving credit facility
|
—
|
|
|
(100,000)
|
|
Employee taxes paid
for shares withheld for income taxes
|
(4,301)
|
|
|
(2,732)
|
|
Proceeds from
exercise of stock options and other stock issuances
|
858
|
|
|
1,649
|
|
Other financing
fees
|
—
|
|
|
35
|
|
Net cash provided by
(used in) financing activities
|
(3,443)
|
|
|
598,952
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(6,900)
|
|
|
8,761
|
|
Net increase in
(decrease in) cash, cash equivalents and restricted cash
|
(168,835)
|
|
|
172,160
|
|
Cash, cash
equivalents and restricted cash
|
|
|
|
Beginning of
period
|
1,528,515
|
|
|
796,008
|
|
End of
period
|
$
|
1,359,680
|
|
|
$
|
968,168
|
|
Under Armour,
Inc.
|
For the Three Months
Ended March 31, 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
March 31, 2021
|
Total Net
Revenue
|
|
|
Net revenue growth -
GAAP
|
|
35.1
|
%
|
Foreign exchange
impact
|
|
(2.6)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
32.5
|
%
|
|
|
|
North
America
|
|
|
Net revenue growth -
GAAP
|
|
32.3
|
%
|
Foreign exchange
impact
|
|
(0.5)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
31.8
|
%
|
|
|
|
EMEA
|
|
|
Net revenue growth -
GAAP
|
|
40.6
|
%
|
Foreign exchange
impact
|
|
(7.4)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
33.2
|
%
|
|
|
|
Asia-Pacific
|
|
|
Net revenue growth -
GAAP
|
|
119.7
|
%
|
Foreign exchange
impact
|
|
(13.0)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
106.7
|
%
|
|
|
|
Latin
America
|
|
|
Net revenue decline -
GAAP
|
|
(9.0)
|
%
|
Foreign exchange
impact
|
|
1.7
|
%
|
Currency neutral net
revenue decline - Non-GAAP
|
|
(7.3)
|
%
|
|
|
|
Total
International
|
|
|
Net revenue growth -
GAAP
|
|
57.8
|
%
|
Foreign exchange
impact
|
|
(7.6)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
50.2
|
%
|
Under Armour,
Inc.
|
For the Three Months
Ended March 31, 2021
|
(Unaudited, in
thousands, except per share)
|
|
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
March 31, 2021
|
GAAP Income from
operations
|
|
$
|
106,890
|
|
Add: Impact of
restructuring and impairment charges
|
|
7,113
|
|
Adjusted income from
operations
|
|
$
|
114,003
|
|
|
ADJUSTED NET
INCOME RECONCILIATION
|
|
in '000s
|
|
Three months
ended
March 31, 2021
|
GAAP Net
income
|
|
$
|
77,752
|
|
Add: Impact of
restructuring and impairment charges
|
|
7,113
|
|
Add: Impact of
amortization of debt discount
|
|
5,210
|
|
Add: Impact of
provision for income taxes
|
|
(15,492)
|
|
Adjusted net
income
|
|
$
|
74,583
|
|
|
ADJUSTED DILUTED
EARNINGS PER SHARE RECONCILIATION
|
|
|
|
Three months
ended
March 31, 2021
|
GAAP Diluted net
income per share
|
|
$
|
0.17
|
|
Add: Impact of
restructuring and impairment charges
|
|
0.02
|
|
Add: Impact of
amortization of debt discount
|
|
0.01
|
|
Add: Impact of
provision for income taxes
|
|
(0.04)
|
|
Adjusted diluted
income per share
|
|
$
|
0.16
|
|
Under Armour,
Inc.
|
Outlook for the Three
Months Ended June 30, 2021 and Year Ended December 31,
2021
|
(Unaudited; in
millions, except per share amounts)
|
|
The table below
presents the reconciliation of the Company's fiscal 2021 outlook
for income from operations calculated in accordance with GAAP to
adjusted operating income, which is a non-GAAP financial measure.
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)
|
|
Three Months Ended
June 30, 2021
|
|
Year Ended December
31, 2021
|
|
|
Low end of
estimate
|
High end of
estimate
|
|
Low end of
estimate
|
High end of
estimate
|
GAAP Income (loss)
from operations
|
|
$
|
5
|
|
$
|
5
|
|
|
$
|
105
|
|
$
|
115
|
|
Add: Estimated impact
of restructuring and impairment charges (1)
|
|
35
|
|
40
|
|
|
125
|
|
125
|
|
Adjusted income
(loss) from operations
|
|
$
|
40
|
|
$
|
45
|
|
|
$
|
230
|
|
$
|
240
|
|
ADJUSTED OPERATING
MARGIN RECONCILIATION
|
|
|
|
Year Ended December
31, 2021
|
|
|
Low end of
estimate
|
High end of
estimate
|
GAAP Operating
margin
|
|
2.0
|
%
|
2.2
|
%
|
Add: Estimated impact
of restructuring and impairment charges (1)
|
|
2.4
|
%
|
2.3
|
%
|
Adjusted operating
margin
|
|
4.4
|
%
|
4.5
|
%
|
ADJUSTED DILUTED
EARNINGS PER SHARE RECONCILIATION
|
|
|
|
Year Ended December
31, 2021
|
|
|
Low end of
estimate
|
High end of
estimate
|
GAAP Diluted net
income (loss) per share
|
|
$
|
(0.04)
|
|
$
|
(0.02)
|
|
Add: Impact of
restructuring and related impairment charges (1)
|
|
0.27
|
|
0.27
|
|
Add: Impact of
amortization of debt discount
|
|
0.05
|
|
0.05
|
|
Adjusted diluted
income per share
|
|
$
|
0.28
|
|
$
|
0.30
|
|
|
(1) Under the
Company's 2020 restructuring plan's approved range of $550 million
to $600 million in restructuring and impairment charges, the impact
of total charges to be realized in fiscal 2021 assumes the high-end
of an estimated $77 million to $127 million range.
|
|
In connection with
the Company's first-quarter conference call and webcast, the
Company will discuss its projected adjusted diluted earnings per
share for the three months ended June 30, 2021 and the full year
ended December 31, 2021. As a result of restructuring expenses
incurred in fiscal year 2021, in connection with the 2020
restructuring plan, the United States and certain other foreign
jurisdictions are considered loss jurisdictions for fiscal year
2021. These jurisdictions are accounted for discretely and excluded
from the annual effective tax rate computation for purposes of
computing the interim tax provision and a separate annual effective
rate is calculated for each of these jurisdictions and applied
against their respective year-to-date ordinary income or loss each
quarter. As a result, the income tax expense for the three months
ended June 30, 2021, is subject to significant variability based on
the actual quarterly pre-tax results, and a meaningful estimated
range of GAAP-based income tax expense cannot be provided. Given
this variability, there is substantial uncertainty associated with
accurately projecting the Company's GAAP-based income tax expense
and GAAP-based diluted earnings per share for the three months
ended June 30, 2021. Alternatively, Adjusted income tax expense
includes all global jurisdictions in the annual effective tax rate
mitigating significant quarterly variability. Therefore, a
reconciliation to the Company's adjusted diluted earnings per share
for the three months ended June 30, 2021 has not been provided, as
the Company believes the reconciliation is not
meaningful.
|
|
The Company's net
income for the three months ended June 30, 2021, is expected to be
impacted by approximately $35 to $40 million of restructuring and
impairment charges, and approximately $5 million of non-cash
amortization of debt discount on its convertible debt, both of
which are excluded for purposes of calculating adjusted net
income.
|
Under Armour,
Inc.
|
As of March 31, 2021
and 2020
|
|
BRAND HOUSE AND
FACTORY HOUSE DOOR COUNT
|
|
|
|
March 31,
|
|
|
2021
|
|
2020
|
Factory
House
|
|
176
|
|
169
|
Brand
House
|
|
16
|
|
19
|
North
America total doors
|
|
192
|
|
188
|
|
|
|
|
|
Factory
House
|
|
136
|
|
113
|
Brand
House
|
|
98
|
|
122
|
International total doors
|
|
234
|
|
235
|
|
|
|
|
|
Factory
House
|
|
312
|
|
282
|
Brand
House
|
|
114
|
|
141
|
Total
doors
|
|
426
|
|
423
|
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SOURCE Under Armour, Inc.