BALTIMORE, Feb. 12, 2019 /PRNewswire/ -- Under Armour,
Inc. (NYSE: UA, UAA) today announced financial results for the
fourth quarter ended December 31, 2018. The company reports
its financial performance in accordance with accounting principles
generally accepted in the United States
of America ("GAAP"). This press release refers to "currency
neutral" and "adjusted" amounts, which are non-GAAP financial
measures described below under the "Non-GAAP Financial Information"
paragraph. References to adjusted financial measures exclude the
impact of the company's restructuring plans and the related tax
effects, as well as adjustments to our one-time impacts of the 2017
U.S. tax reform legislation, which we refer to as the U.S. Tax Act.
Reconciliations of non-GAAP amounts to the most directly comparable
financial measure calculated in accordance with GAAP are presented
in supplemental financial information furnished with this release.
All per share amounts are reported on a diluted basis.
"Our 2018 results demonstrate significant progress against our
multi-year transformation toward becoming an even stronger brand
and more operationally excellent company," said Under Armour
Chairman and CEO Kevin Plank. "As we
look ahead to 2019, our accelerated innovation agenda, disciplined
go-to-market process and powerful consumer-centric approach gives
us increasingly greater confidence in our ability to deliver for
Under Armour athletes, customers and shareholders."
Fourth Quarter 2018 Review
- Revenue was up 2 percent to $1.4
billion (up 3 percent currency neutral).
-
- Wholesale revenue increased 1 percent to $737 million and direct-to-consumer revenue was
flat at $577 million, representing 41
percent of total revenue.
- North America revenue
decreased 6 percent to $965 million
and our international business increased 24 percent to $395 million (up 28 percent currency neutral),
representing 28 percent of total revenue. Within the international
business, revenue was up 32 percent in EMEA (up 35 percent currency
neutral), up 35 percent in Asia-Pacific (up 39 percent currency neutral),
and down 15 percent in Latin
America (down 11 percent currency neutral).
- Apparel revenue increased 2 percent to $970 million with growth in the train category.
Footwear revenue decreased 4 percent to $235
million primarily driven by lower sales to the off-price
channel. Accessories revenue decreased 2 percent to $108 million.
- Gross margin increased 160 basis points to 45.0 percent
compared to the prior year, including a $2
million impact related to restructuring efforts. Excluding
restructuring efforts in both periods, adjusted gross margin
increased 160 basis points to 45.1 percent compared to the prior
year driven predominantly by regional and channel mix, product cost
improvements, lower promotional activity, and lower air freight
partially offset by changes in foreign currency.
- Selling, general & administrative expenses decreased
1 percent to $587 million, or 42.3
percent of revenue.
- Restructuring and impairment charges were $48 million.
- Operating loss was $10
million. Adjusted operating income was $40 million.
- Net income was $4 million
or $0.01 earnings per share.
Adjusted net income was $42
million or $0.09 adjusted
earnings per share.
- Inventory decreased 12 percent to $1.0 billion.
- Cash and cash equivalents increased 78 percent to
$557 million.
Full Year 2018 Review
- Revenue was up 4 percent to $5.2
billion.
-
- Wholesale revenue increased 3 percent to $3.1 billion and direct-to-consumer revenue was
up 4 percent to $1.8 billion,
representing 35 percent of total revenue.
- North America revenue
decreased 2 percent to $3.7 billion
and our international business increased 23 percent to $1.3 billion (up 22 percent currency neutral),
representing 26 percent of total revenue. Within the international
business, revenue was up 25 percent in EMEA (up 23 percent currency
neutral), up 29 percent in Asia-Pacific (up 27 percent currency neutral),
and up 5 percent in Latin America
(up 8 percent currency neutral).
- Apparel revenue increased 5 percent to $3.5 billion with growth primarily driven by the
train category. Footwear revenue increased 2 percent to
$1.1 billion largely driven by growth
in the run category. Accessories revenue was down 5 percent to
$422 million due to softer demand and
continued actions to optimize our inventory and distribution.
- Gross margin was 45.1 percent, in line with the prior
year including a $21 million impact
related to restructuring efforts. Excluding restructuring efforts
in both periods, adjusted gross margin increased 30 basis
points to 45.5 percent driven predominantly by product cost
improvements, lower promotional activity, and changes in foreign
currency offset by channel mix.
- Selling, general & administrative expenses increased
4 percent to $2.2 billion, or 42.0
percent of revenue.
- Restructuring and impairment charges were $183 million.
- Operating loss was $25
million. Adjusted operating income was $179 million.
- Net loss was $46 million
or $0.10 loss per share. Adjusted
net income was $122 million or
$0.27 adjusted earnings per
share.
2018 Restructuring Plan
For the full year the company recognized $204 million of pre-tax charges, inclusive of
$50 million in the fourth quarter. Of
the $204 million recognized, there
were $151 million in cash related
charges and $53 million in non-cash
related charges. This compares to the previously announced 2018
plan which anticipated approximately $200 to $220
million in restructuring related charges for the full
year.
Full Year 2019 Outlook
There are no changes to the company's 2019 outlook, which was
provided at its December 12, 2018
investor day:
- Revenue is expected to increase approximately 3 to 4
percent reflecting relatively flat results for North America and a low double-digit
percentage rate increase in the international business.
- Gross margin is expected to improve approximately 60 to
80 basis points compared to 2018 adjusted gross margin due to
channel mix benefits from lower planned sales to the off-price
channel and a higher percentage of direct-to-consumer sales along
with more favorable product costs due to ongoing supply chain
initiatives.
- Operating income is expected to reach $210 million to $230
million.
- Interest and other expense net is planned at
approximately $40 million.
- Effective tax rate is expected to be in the 19 percent
to 22 percent range.
- Earnings per share is expected to be in the range of
$0.31 to $0.33; and,
- Capital expenditures are planned at approximately
$210 million.
Conference Call and Webcast
Under Armour will hold its fourth quarter 2018 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.
U.S. Tax Act
The U.S. Tax Act was enacted into law on December 22, 2017. The legislation contained
several key tax provisions that affect Under Armour and, as
required, the company included reasonable estimates of the income
tax effects of the changes in tax law and tax rate in the company's
2017 financial results. These changes included a one-time mandatory
transition tax on accumulated foreign earnings and a re-measuring
of deferred tax assets which impacted our fourth quarter and full
year of 2017. During the fourth quarter of 2018, the company
revised and finalized its accounting for the one-time mandatory
transition tax on accumulated foreign earnings and the re-measuring
of deferred tax assets due to the U.S. Tax Act in accordance within
the one-year measurement period allowed by the SEC.
Non-GAAP Financial Information
This press release refers to "currency neutral" and "adjusted"
results. Currency neutral financial information is calculated to
exclude the impact of changes in foreign currency. Management
believes this information is useful to investors to facilitate a
comparison of the company's results of operations
period-over-period. Adjusted gross margin, adjusted operating
income, adjusted net income, adjusted diluted earnings per share
and adjusted effective tax rate exclude the impact of restructuring
and other related charges and the impact of the U.S. Tax Act, as
applicable. Management believes this information is useful to
investors because it provides enhanced visibility into the
company's actual underlying results excluding the impact of its
restructuring plans and recent significant changes in U.S. tax
laws. These non-GAAP financial measures should not be considered in
isolation and should be viewed in addition to, and not as an
alternative for, the company's reported results prepared in
accordance with GAAP. Additionally, the company's non-GAAP
financial information may not be comparable to similarly titled
measures reported by other companies.
About Under Armour, Inc.
Under Armour, Inc., headquartered in Baltimore, Maryland, is a leading inventor,
marketer and distributor of branded performance athletic apparel,
footwear and accessories. Designed to make all athletes better, the
brand's innovative products are sold worldwide to consumers with
active lifestyles. The company's Connected Fitness™
platform powers the world's largest digitally
connected health and fitness community. For further
information, please visit 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, our prospects and strategies for future growth, our
anticipated charges and restructuring costs and the timing of these
measures, the impact of recent tax reform legislation on our
results of operations, the development and introduction of new
products, the implementation of our marketing and branding
strategies, and the future benefits and opportunities from
significant investments. In many cases, you can identify
forward-looking statements by terms such as "may," "will,"
"should," "expects," "plans," "assumes," "anticipates," "believes,"
"estimates," "predicts," "outlook," "potential" or the negative of
these terms or other comparable terminology. The forward-looking
statements contained in this press release reflect our current
views about future events and are subject to risks, uncertainties,
assumptions and changes in circumstances that may cause events or
our actual activities or results to differ significantly from those
expressed in any forward-looking statement. Although we believe
that the expectations reflected in the forward-looking statements
are reasonable, we cannot guarantee future events, results,
actions, levels of activity, performance or achievements. Readers
are cautioned not to place undue reliance on these forward-looking
statements. A number of important factors could cause actual
results to differ materially from those indicated by the
forward-looking statements, including, but not limited to: changes
in general economic or market conditions that could affect overall
consumer spending or our industry; changes to the financial health
of our customers; our ability to successfully execute our long-term
strategies; our ability to successfully execute any restructuring
plans and realize expected benefits; our ability to effectively
drive operational efficiency in our business; our ability to manage
the increasingly complex operations of our global business; our
ability to comply with existing trade and other regulations, and
the potential impact of new trade, 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; loss
of key suppliers or manufacturers or failure of our suppliers or
manufacturers to produce or deliver our products in a timely or
cost-effective manner, including due to port disruptions; our
ability to further expand our business globally and to drive brand
awareness and consumer acceptance of our products in other
countries; our ability to accurately anticipate and respond to
seasonal or quarterly fluctuations in our operating results; our
ability to successfully manage or realize expected results from
acquisitions and other significant investments or capital
expenditures; risks related to foreign currency exchange rate
fluctuations; our ability to effectively market and maintain a
positive brand image; the availability, integration and effective
operation of information systems and other technology, as well as
any potential interruption of such systems or technology; risks
related to data security or privacy breaches, including the 2018
data security issue related to our Connected Fitness business; our
ability to raise additional capital required to grow our business
on terms acceptable to us; our potential exposure to litigation and
other proceedings; and our ability to attract key talent and retain
the services of our senior management and key employees. The
forward-looking statements contained in this press release reflect
our views and assumptions only as of the date of this press
release. We undertake no obligation to update any forward-looking
statement to reflect events or circumstances after the date on
which the statement is made or to reflect the occurrence of
unanticipated events.
Under Armour,
Inc.
|
For the Three Months
and Year Ended December 31, 2018 and 2017
|
(Unaudited; in
thousands, except per share amounts)
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2018
|
|
% of Net
Revenues
|
|
2017
|
|
% of Net
Revenues
|
|
2018
|
|
% of Net
Revenues
|
|
2017
|
|
% of Net
Revenues
|
Net
revenues
|
|
$
|
1,389,980
|
|
100.0
|
%
|
|
$
|
1,369,216
|
|
100.0
|
%
|
|
$
|
5,193,185
|
|
100.0
|
%
|
|
$
|
4,989,244
|
|
100.0
|
%
|
Cost of goods
sold
|
|
764,753
|
|
55.0
|
%
|
|
775,658
|
|
56.6
|
%
|
|
2,852,714
|
|
54.9
|
%
|
|
2,737,830
|
|
54.9
|
%
|
Gross
profit
|
|
625,227
|
|
45.0
|
%
|
|
593,558
|
|
43.4
|
%
|
|
2,340,471
|
|
45.1
|
%
|
|
2,251,414
|
|
45.1
|
%
|
Selling, general
and
administrative expenses
|
|
587,446
|
|
42.3
|
%
|
|
594,694
|
|
43.4
|
%
|
|
2,182,339
|
|
42.0
|
%
|
|
2,099,522
|
|
42.1
|
%
|
Restructuring and
impairment
charges
|
|
48,228
|
|
3.4
|
%
|
|
35,952
|
|
2.6
|
%
|
|
183,149
|
|
3.5
|
%
|
|
124,049
|
|
2.5
|
%
|
Income (loss) from
operations
|
|
(10,447)
|
|
(0.7)
|
%
|
|
(37,088)
|
|
(2.7)
|
%
|
|
(25,017)
|
|
(0.4)
|
%
|
|
27,843
|
|
0.6
|
%
|
Interest expense,
net
|
|
(7,302)
|
|
(0.5)
|
%
|
|
(9,301)
|
|
(0.7)
|
%
|
|
(33,568)
|
|
(0.7)
|
%
|
|
(34,538)
|
|
(0.7)
|
%
|
Other income
(expense), net
|
|
272
|
|
—
|
%
|
|
(2,231)
|
|
(0.2)
|
%
|
|
(9,203)
|
|
(0.2)
|
%
|
|
(3,614)
|
|
(0.1)
|
%
|
Loss before income
taxes
|
|
(17,477)
|
|
(1.2)
|
%
|
|
(48,620)
|
|
3.6
|
%
|
|
(67,788)
|
|
(1.3)
|
%
|
|
(10,309)
|
|
(0.2)
|
%
|
Income tax expense
(benefit)
|
|
(21,242)
|
|
(1.5)
|
%
|
|
39,300
|
|
2.9
|
%
|
|
(20,552)
|
|
(0.4)
|
%
|
|
37,951
|
|
0.8
|
%
|
Income from equity
method
investment
|
|
453
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
934
|
|
—
|
%
|
|
—
|
|
—
|
%
|
Net income
(loss)
|
|
$
|
4,218
|
|
0.3
|
%
|
|
$
|
(87,920)
|
|
(6.4)
|
%
|
|
$
|
(46,302)
|
|
(0.9)
|
%
|
|
$
|
(48,260)
|
|
(1.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share
of Class A, B and C common
stock
|
|
$
|
0.01
|
|
|
|
$
|
(0.20)
|
|
|
|
$
|
(0.10)
|
|
|
|
$
|
(0.11)
|
|
|
Diluted net income
(loss) per
share of Class A, B and C
common stock
|
|
$
|
0.01
|
|
|
|
(0.20)
|
|
|
|
(0.10)
|
|
|
|
(0.11)
|
|
|
Weighted average
common shares outstanding Class A, B and C common
stock
|
Basic
|
|
448,438
|
|
|
|
441,826
|
|
|
|
445,815
|
|
|
|
440,729
|
|
|
Diluted
|
|
452,497
|
|
|
|
441,826
|
|
|
|
445,815
|
|
|
|
440,729
|
|
|
Under Armour,
Inc.
|
For the Three Months
and Year Ended December 31, 2018 and 2017
|
(Unaudited; in
thousands)
|
|
NET REVENUES BY
PRODUCT CATEGORY
|
|
|
|
Three Months Ended
December 31,
|
Year Ended December
31,
|
|
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
Apparel
|
|
$
|
970,392
|
|
$
|
951,667
|
|
2.0
|
%
|
|
$
|
3,462,372
|
|
$
|
3,287,121
|
|
5.3
|
%
|
Footwear
|
|
235,174
|
|
246,204
|
|
(4.5)
|
%
|
|
1,063,175
|
|
1,037,840
|
|
2.4
|
%
|
Accessories
|
|
108,246
|
|
110,666
|
|
(2.2)
|
%
|
|
422,496
|
|
445,838
|
|
(5.2)
|
%
|
Total net
sales
|
|
1,313,812
|
|
1,308,537
|
|
0.4
|
%
|
|
4,948,043
|
|
4,770,799
|
|
3.7
|
%
|
Licensing
revenues
|
|
45,909
|
|
32,936
|
|
39.4
|
%
|
|
124,785
|
|
116,575
|
|
7.0
|
%
|
Connected
Fitness
|
|
30,259
|
|
27,743
|
|
9.1
|
%
|
|
120,357
|
|
101,870
|
|
18.1
|
%
|
Total net
revenues
|
|
$
|
1,389,980
|
|
$
|
1,369,216
|
|
1.5
|
%
|
|
$
|
5,193,185
|
|
$
|
4,989,244
|
|
4.1
|
%
|
|
NET REVENUES BY
SEGMENT
|
|
|
|
Three Months Ended
December 31,
|
Year Ended December
31,
|
|
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
North
America
|
|
$
|
964,830
|
|
$
|
1,024,242
|
|
(5.8)
|
%
|
|
$
|
3,735,293
|
|
$
|
3,802,406
|
|
(1.8)
|
%
|
EMEA
|
|
178,153
|
|
135,313
|
|
31.7
|
%
|
|
588,580
|
|
469,996
|
|
25.2
|
%
|
Asia-Pacific
|
|
167,513
|
|
123,936
|
|
35.2
|
%
|
|
558,160
|
|
433,648
|
|
28.7
|
%
|
Latin
America
|
|
49,225
|
|
57,982
|
|
(15.1)
|
%
|
|
190,795
|
|
181,324
|
|
5.2
|
%
|
Connected
Fitness
|
|
30,259
|
|
27,743
|
|
9.1
|
%
|
|
120,357
|
|
101,870
|
|
18.1
|
%
|
Total net
revenues
|
|
$
|
1,389,980
|
|
$
|
1,369,216
|
|
1.5
|
%
|
|
$
|
5,193,185
|
|
$
|
4,989,244
|
|
4.1
|
%
|
|
INCOME (LOSS) FROM
OPERATIONS
|
|
|
|
Three Months Ended
December 31,
|
Year Ended December
31,
|
|
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
North
America
|
|
$
|
(7,083)
|
|
$
|
(43,945)
|
|
83.9
|
%
|
|
$
|
(66,305)
|
|
$
|
20,179
|
|
(428.6)
|
%
|
EMEA
|
|
(11,145)
|
|
3,986
|
|
(379.6)
|
%
|
|
(9,379)
|
|
17,976
|
|
(152.2)
|
%
|
Asia-Pacific
|
|
21,379
|
|
12,989
|
|
64.6
|
%
|
|
95,128
|
|
82,039
|
|
16.0
|
%
|
Latin
America
|
|
(11,004)
|
|
(10,910)
|
|
(0.9)
|
%
|
|
(48,470)
|
|
(37,085)
|
|
(30.7)
|
%
|
Connected
Fitness
|
|
(2,594)
|
|
792
|
|
(427.5)
|
%
|
|
4,009
|
|
(55,266)
|
|
107.3
|
%
|
Income (loss) from
operations
|
|
$
|
(10,447)
|
|
$
|
(37,088)
|
|
(71.8)
|
%
|
|
$
|
(25,017)
|
|
$
|
27,843
|
|
(189.9)
|
%
|
Under Armour,
Inc.
|
As of
December 31, 2018 and December 31, 2017
|
(Unaudited; in
thousands)
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
December 31,
2018
|
|
December 31,
2017
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
557,403
|
|
$
|
312,483
|
Accounts receivable,
net
|
|
652,546
|
|
609,670
|
Inventories
|
|
1,019,496
|
|
1,158,548
|
Prepaid expenses and
other current assets
|
|
364,183
|
|
256,978
|
Total current
assets
|
|
2,593,628
|
|
2,337,679
|
Property and
equipment, net
|
|
826,868
|
|
885,774
|
Goodwill
|
|
546,494
|
|
555,674
|
Intangible assets,
net
|
|
41,793
|
|
46,995
|
Deferred income
taxes
|
|
112,420
|
|
82,801
|
Other long term
assets
|
|
123,819
|
|
97,444
|
Total
assets
|
|
$
|
4,245,022
|
|
$
|
4,006,367
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Revolving credit
facility, current
|
|
$
|
—
|
|
$
|
125,000
|
Accounts
payable
|
|
560,884
|
|
561,108
|
Accrued
expenses
|
|
340,415
|
|
296,841
|
Customer refund
liability
|
|
301,421
|
|
—
|
Current maturities of
long term debt
|
|
25,000
|
|
27,000
|
Other current
liabilities
|
|
88,257
|
|
50,426
|
Total current
liabilities
|
|
1,315,977
|
|
1,060,375
|
Long term debt, net
of current maturities
|
|
703,834
|
|
765,046
|
Other long term
liabilities
|
|
208,340
|
|
162,304
|
Total
liabilities
|
|
2,228,151
|
|
1,987,725
|
Total stockholders'
equity
|
|
2,016,871
|
|
2,018,642
|
Total liabilities
and stockholders' equity
|
|
$
|
4,245,022
|
|
$
|
4,006,367
|
Under Armour,
Inc.
|
For the Years Ended
December 31, 2018 and 2017
|
(Unaudited; in
thousands)
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
Cash flows from
operating activities
|
|
|
|
Net loss
|
$
|
(46,302)
|
|
$
|
(48,260)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities
|
|
|
|
Depreciation and
amortization
|
$
|
181,768
|
|
$
|
173,747
|
Unrealized foreign
currency exchange rate (gains) losses
|
14,023
|
|
(29,247)
|
Loss on disposal of
property and equipment
|
4,256
|
|
2,313
|
Impairment
charges
|
9,893
|
|
71,378
|
Amortization of bond
premium
|
254
|
|
254
|
Stock-based
compensation
|
41,783
|
|
39,932
|
Excess tax benefit
(loss) from stock-based compensation arrangements
|
—
|
|
(75)
|
Deferred income
taxes
|
(38,544)
|
|
55,910
|
Changes in reserves
and allowances
|
(234,998)
|
|
108,757
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
186,834
|
|
(79,106)
|
Inventories
|
109,919
|
|
(222,391)
|
Prepaid expenses and
other assets
|
(107,855)
|
|
(52,106)
|
Accounts
payable
|
26,413
|
|
145,695
|
Accrued expenses and
other liabilities
|
134,594
|
|
109,823
|
Customer refund
liability
|
305,141
|
|
—
|
Income taxes payable
and receivable
|
41,051
|
|
(39,164)
|
Net cash provided by
operating activities
|
628,230
|
|
237,460
|
Cash flows from
investing activities
|
|
|
|
Purchases of property
and equipment
|
$
|
(170,385)
|
|
$
|
(281,339)
|
Sale of property and
equipment
|
11,285
|
|
—
|
Purchase of equity
method investment
|
(39,207)
|
|
—
|
Purchases of other
assets
|
(4,597)
|
|
(1,648)
|
Net cash used in
investing activities
|
(202,904)
|
|
(282,987)
|
Cash flows from
financing activities
|
|
|
|
Proceeds from long
term debt and revolving credit facility
|
$
|
505,000
|
|
$
|
763,000
|
Payments on long term
debt and revolving credit facility
|
(695,000)
|
|
(665,000)
|
Employee taxes paid
for shares withheld for income taxes
|
(2,743)
|
|
(2,781)
|
Proceeds from
exercise of stock options and other stock issuances
|
2,580
|
|
11,540
|
Payments of debt
financing costs
|
(11)
|
|
—
|
Other financing
fees
|
306
|
|
—
|
Net cash provided by
(used in) financing activities
|
(189,868)
|
|
106,759
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
12,467
|
|
4,178
|
Net increase in cash,
cash equivalents and restricted cash
|
247,925
|
|
65,410
|
Cash, cash
equivalents and restricted cash
|
|
|
|
Beginning of
period
|
318,135
|
|
252,725
|
End of
period
|
$
|
566,060
|
|
$
|
318,135
|
Under Armour,
Inc.
|
For the Three Months
and Year Ended December 31, 2018
|
(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
December 31, 2018
|
|
Year Ended
December 31, 2018
|
Total Net
Revenue
|
|
|
|
|
Net revenue growth -
GAAP
|
|
1.5
|
%
|
|
4.1
|
%
|
Foreign exchange
impact
|
|
1.0
|
%
|
|
(0.3)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
2.5
|
%
|
|
3.8
|
%
|
|
|
|
|
|
North
America
|
|
|
|
|
Net revenue decline -
GAAP
|
|
(5.8)
|
%
|
|
(1.8)
|
%
|
Foreign exchange
impact
|
|
0.2
|
%
|
|
—
|
%
|
Currency neutral net
revenue decline - Non-GAAP
|
|
(5.6)
|
%
|
|
(1.8)
|
%
|
|
|
|
|
|
EMEA
|
|
|
|
|
Net revenue growth -
GAAP
|
|
31.7
|
%
|
|
25.2
|
%
|
Foreign exchange
impact
|
|
3.5
|
%
|
|
(2.4)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
35.2
|
%
|
|
22.8
|
%
|
|
|
|
|
|
Asia-Pacific
|
|
|
|
|
Net revenue growth -
GAAP
|
|
35.2
|
%
|
|
28.7
|
%
|
Foreign exchange
impact
|
|
3.6
|
%
|
|
(1.5)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
38.8
|
%
|
|
27.2
|
%
|
|
|
|
|
|
Latin
America
|
|
|
|
|
Net revenue growth
(decline) - GAAP
|
|
(15.1)
|
%
|
|
5.2
|
%
|
Foreign exchange
impact
|
|
4.3
|
%
|
|
3.1
|
%
|
Currency neutral net
revenue growth (decline) - Non-GAAP
|
|
(10.8)
|
%
|
|
8.3
|
%
|
|
|
|
|
|
Total
International
|
|
|
|
|
Net revenue growth -
GAAP
|
|
24.5
|
%
|
|
23.3
|
%
|
Foreign exchange
impact
|
|
3.7
|
%
|
|
(1.2)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
28.2
|
%
|
|
22.1
|
%
|
Under Armour,
Inc.
|
For the Three Months
and Year Ended December 31, 2018
|
(Unaudited; in
millions)
|
|
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 GROSS
MARGIN RECONCILIATION
|
|
|
|
Three months
ended
December 31, 2018
|
|
Year ended
December 31, 2018
|
Gross
margin
|
|
45.0
|
%
|
|
45.1
|
%
|
Add: Impact of
restructuring
|
|
0.1
|
%
|
|
0.4
|
%
|
Adjusted gross
margin
|
|
45.1
|
%
|
|
45.5
|
%
|
|
ADJUSTED OPERATING
INCOME (LOSS) RECONCILIATION
|
|
|
|
Three months ended
December 31, 2018
|
|
Year ended
December 31, 2018
|
Loss from
operations
|
|
$
|
(10)
|
|
$
|
(25)
|
Add: Impact of
restructuring
|
|
50
|
|
204
|
Adjusted operating
income
|
|
$
|
40
|
|
$
|
179
|
|
ADJUSTED NET
INCOME RECONCILIATION
|
|
|
|
Three months ended
December 31, 2018
|
|
Year ended
December 31, 2018
|
Net income
|
|
$
|
4
|
|
$
|
(46)
|
Add: Impact US tax
reform
|
|
2
|
|
—
|
Add: Impact of
restructuring
|
|
36
|
|
168
|
Adjusted net
income
|
|
$
|
42
|
|
$
|
122
|
|
ADJUSTED DILUTED
EARNINGS PER SHARE RECONCILIATION
|
|
|
|
Three months ended
December 31, 2018
|
|
Year ended
December 31, 2018
|
Diluted net income
per share
|
|
$
|
0.01
|
|
$
|
(0.10)
|
Add: Impact US tax
reform
|
|
—
|
|
—
|
Add: Impact of
restructuring
|
|
0.08
|
|
0.37
|
Adjusted diluted
income per share
|
|
$
|
0.09
|
|
$
|
0.27
|
|
ADJUSTED EFFECTIVE
TAX RATE RECONCILIATION
|
|
|
|
Three months ended
December 31, 2018
|
|
Year ended
December 31, 2018
|
Effective tax
rate
|
|
121.5
|
%
|
|
30.3
|
%
|
Add (less): Impact of
US tax reform
|
|
10.9
|
%
|
|
0.3
|
%
|
Less: Impact of
restructuring
|
|
162.0
|
%
|
|
18.7
|
%
|
Adjusted effective
tax rate
|
|
(29.6)
|
%
|
|
11.3
|
%
|
Under Armour,
Inc.
|
As of December 31,
2018 and 2017
|
|
BRAND HOUSE AND
FACTORY HOUSE DOOR COUNT
|
|
|
|
December
31,
|
|
|
2018
|
|
2017
|
Factory
House
|
|
163
|
|
162
|
Brand
House
|
|
16
|
|
19
|
North
America total doors
|
|
179
|
|
181
|
|
|
|
|
|
Factory
House
|
|
73
|
|
57
|
Brand
House
|
|
67
|
|
57
|
International total doors
|
|
140
|
|
114
|
|
|
|
|
|
Factory
House
|
|
236
|
|
219
|
Brand
House
|
|
83
|
|
76
|
Total
doors
|
|
319
|
|
295
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/under-armour-reports-fourth-quarter-and-full-year-2018-results-reiterates-2019-outlook-300793623.html
SOURCE Under Armour, Inc.