Under Armour_Security Analysis

SECURITY ANALYSIS

Khiem NguyenSepehr Abdi Trang Nguyen Tian Zhang

2

INVESTMENT HIGHLIGHT

3


Mar. Jun. Sept. Dec. Year P/E Ratio

2013A $0.26 $0.28 $0.31 $0.31 $0.31 53.19x

2014A 0.38 0.38 0.38 0.38 0.38 77.41x

2015A 0.42 0.48 0.46 0.46 0.46 91.12x

2016E 0.49 0.53 0.39 0.65 0.65 83.01x

Recommendation: ● HoldPrice Target: ● $ 30.63Price as on 11/04: $ 30.8

4

INVESTMENT HIGHLIGHT• Debt:

• High D/E ratio means the shareholders will bear more financial risk and ask for higher return.

• Even if we forecast the ratio goes down during the following years, it is still higher than other competitive companies like NIKE and Adidas.

• In 2015, its long term debt was 628.5 million dollars.

2015 2016

D/E 40.2% 22.7%D/Capital 28.7% 18.5%

7 8 9 10 11 12 13 14 15 16 17 18 19 20 0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0% Total Debt/Equity

5

• SG&A:• SG&A margin is the ratio that shows how much percentage SG&A expense is

out of revenue.• Footwear grew 42%, and international sales, following the summer Olympics,

grew 74% year-over-year. • The highest number is 37.3% from 2013-2015.


6

INVESTMENT HIGHLIGHT• Assets:

• Assets keep going up at a rapid increasing growth rate because the company is going to broad their business especially in the overseas market.

7 8 9 10 11 12 13 14 15 16 17 18 19 200.0x

0.5x

1.0x

1.5x

2.0x

2.5x

Total Asset Turnover

7

BUSINESS DESCRIPTION

9

BUSINESS DESCRIPTION Connected Fitness Timeline

10

BUSINESS DESCRIPTION • Company Strategies

• Clear brand positioning • Focusing on fabric technology • Targeting youth and amateur movement • Advance in Technology

11

BUSINESS DESCRIPTION Connect Fitness Platform

12

Sport Category focus


13

2014 global mix statistic:


14

2018 global mix goal:


15

• Management• Under Armour’s executive board

• CEO and Chairman of the Board – Kevin A. Plank• CFO, and members of finance, audit, compensation and corporate governance

committees


16

INDUSTRY OVERVIEW

17

INDUSTRY OVERVIEW AND COMPETITIVE POSITIONING

18


• Intensity of competitive rivalry(high)• Nike and Adidas are the biggest

competitors.• Under Armour’s revenue in 2015

was around $3 billion comparing to Nike with over $30 billion and Adidas with over $16 billion.

• Under Armour has had a higher growth rate in revenue than its competitors in the recent years.

19


• Bargaining power of buyers (high)• Buyers have easy access to

product. • Buyers have low switching cost

for changing brands.• Brand loyalty and performance

does play an important role in customers buying decision especially for those who use the products at a higher level than regular use.

20


• Bargaining power of Suppliers (low-moderate)• Number of suppliers is high.• Companies have easy access to

suppliers• Companies have low switching

cost for changing suppliers.• Special material demand may

increase the bargaining power of suppliers.

21


• Threat of substitutes (low-moderate)• Technology development increase

probability of innovation product that replace current product in sport-wear market.

• Buyers could choose normal apparel to substitute sport-wear with less cost. (legging substitute for yoga pants)

22


• Potential of new entrants(low-medium)• High competition market discourage

new entrants.• Matured market with incumbent

firm fighting for market share discourage new entrants.

• New companies with market niche could still be success and encourage new entrants.

23

E-COMMERCE TRENDS• Online Shopping E-commerce has a positive trend and will continue to raise.

• Advantage: o Consumers have easy access to

product.o Companies could save placement cost

for inventory.o Companies have better inventory

control.• Disadvantage:

o Misleading color or product presentation could hurt company revenue stream.

24

FASHION TRENDS

• Young people are more attracted to sport products and being more athletic looking than formal.

• Popular professional athletes are contracted by companies to promote their brands.

25

FINANCIAL ANALYSIS

26REVENUE STREAM

27FINANCIAL ANALYSIS

2007 2008 2009 2010 2011 2012 2013 2014 2015 2017 2018 2019 2020 20210.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Profitability (2007-2020)

Return on Assets % Return on Equity %

• Profitability decrease due to the company expanding internationally.

• We project Return on Asset and Return on Equity will be 8.5% and 11.7% by the end of this year.

• The profitability will pick up once the company enter mature stage (we estimate the company will be more stable in 2018)

28FINANCIAL ANALYSIS• The turnover ratio reflects the

company efficiency in managing its capital and deploying its asset to reinvest in the business and generate revenue.

• The historical data shows a decrease in asset turnover.

• We expect to see an increase in total asset turnover that correlated with the growth rate of the company revenue.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2017 2018 2019 2020 20210

0.5

1

1.5

2

2.5

Total Asset Turnover Ratio (2007-2020)

29FINANCIAL ANALYSIS• Capital Expenditure expected

change

30FINANCIAL ANALYSIS• Current ratio

• We assume no new stock will be issue in the next 5 years. • New stock issued in 2016 will finance the company operation and lighten the debt.• Current ratio is high in 2016 (4.06x), but will decrease in the future.

• Revenue and Net Income• Recruiting famous athletes has become Under Armour strategy to increase sales in this

passed years and will continue to bring in revenue.• We expect increase in future revenue and net income.• Net income will increase at a slower rate with increase in capital expenditure spending.

• Concern• Selling general and admin expenses increased in the passed years and are suspected

to continue increasing in the future.

31VALUATION• Weighted Average Cost of Capital (WACC):

• Cost of debt is based on the book value of company’s loan adjusted by tax rate.

• We weight the debt and equity based on the book value of the company and calculate WACC of 4.13%

• Market Multiple• Prive/Book Value of Under Armour is estimated to

be 6.98x in 2016 and will reduce to 5.31x in2018.

CALCULATION OF WEIGHTED AVERAGE COST OF CAPITAL Ko=(Ke*We+Kd*Wd) 4.13%

Calculation of Cost of Equity using CAPM (=)Rf+B(Rm-Rf) 5.68%Weight of equity (We) 0.64

Calculation of Cost of Debt Kd= Interest(1-t)/debt 2.29%Weight of Debt 0.36

Tax 40.00%

32VALUATION• Discounted Cash Flow (DCF)

• Enterprise Value was received from CapIQ data base

• Price per Share Estimated is: $30.63• Actual price: $30.8 (11/4/2016)• The company passed performance reflect a

growth stocks while current performance somewhat shows value characteristic.

• We expect the company growth will be more stable beginning 2018.

Terminal value

Growth rate 4%

Free Cash Flow (t+1) 402.9

terminal value 309,924.88

Present value of Terminal 253,149.52

Enterprise Value 13,420.30

Shares Outstanding 438.20

Price per Share 30.63

Premium/Discount to Current -0.57%

33

INVESTMENT RISK

34INVESTMENT RISK

• Financial risk:• The investors may bear more risk in

the future if D/E is high.• If the liquidity is low, the investor

will experience more financial risk

Ratio %

WACC 4.13%

Weighs of equity 0.64

Cost of equity 5.68%

Weighs of debt 0.37

Cost of debt 1.35%

35INVESTMENT RISK

• Market risk:• Consumer’s demand keeping increasing

overall. • Olympic event increase market activities

and demand.• New policies could influence market risk

• Operation risk:• The main operation risk is to maintain

enough cash flow through the whole

operation.

36

THANK YOU

38APPENDIXFor the Fiscal Period Ending

Dec-31-2007

Dec-31-2008

Dec-31-2009

Dec-31-2010

Dec-31-2011

Dec-31-2012

Dec-31-2013

Dec-31-2014

Dec-31-2015

Dec-31-2016

Dec-31-2017

Dec-31-2018

Dec-31-2019

Dec-31-2020

ProfitabilityReturn on Assets %

15.9% 10.9% 10.3% 11.5% 12.8% 12.6% 12.1% 12.1% 10.4% 8.5% 8.4% 9.2% 10.0% 10.1%

Return on Equity %

21.2% 12.5% 12.8% 15.3% 17.1% 17.7% 17.4% 17.3% 15.4% 11.7% 11.1% 12.7% 14.1% 14.5%

Margin AnalysisGross Margin %

50.3% 48.7% 47.9% 49.9% 48.4% 47.9% 48.7% 49.0% 48.1% 47.8% 48.4% 48.5% 48.3% 48.6%

Profit Margin %

8.7% 5.3% 5.5% 6.4% 6.6% 7.0% 7.0% 6.7% 5.9% 5.3% 5.2% 5.0% 4.8% 4.4%

SG&A Margin %

27.9% 30.0% 29.6% 30.2% 28.6% 27.9% 37.3% 37.3% 37.3% 35.3% 35.8% 36.0% 35.8% 36.1%

EBITDA Margin %

16.6% 13.6% 13.3% 13.5% 13.5% 13.7% 13.5% 13.8% 13.0% 9.8% 9.5% 9.1% 8.5% 7.8%

Asset TurnoverTotal Asset Turnover

1.8x 1.7x 1.7x 1.7x 1.8x 1.8x 1.7x 1.7x 1.6x 1.43x 1.44x 1.65x 1.91x 2.07x

Accounts Receivable Turnover

7.3x 8.3x 10.7x 11.7x 12.5x 11.9x 12.1x 12.6x 11.1x 8.60x 7.39x 7.83x 9.00x 10.16x

Inventory Turnover

2.4x 2.1x 2.7x 2.9x 2.8x 3.0x 3.0x 3.1x 3.1x 2.83x 2.87x 3.27x 3.77x 4.23x

Short Term LiquidityCurrent Ratio

3.4x 3.0x 3.7x 3.7x 3.8x 3.6x 2.6x 3.7x 3.1x 4.06x 3.37x 3.10x 2.78x 2.70x

Quick Ratio 1.4x 1.4x 2.2x 2.1x 1.7x 2.1x 1.3x 2.1x 1.2x 1.20x 1.19x 1.10x 0.95x 2.14xAvg. Days Inventory Out.

149.6 171.3 135.2 124.5 129.6 123.3 120.3 116.7 117.0 129.14 127.37 111.68 96.70 86.20

Long Term SolvencyTotal Debt/Equity

5.1% 13.8% 5.1% 3.2% 12.2% 7.6% 14.5% 21.1% 40.2% 22.7% 21.6% 21.0% 18.9% 16.7%

Total Debt/Capital

4.9% 12.1% 4.8% 3.1% 10.9% 7.1% 12.7% 17.4% 28.7% 18.5% 17.8% 17.4% 15.9% 14.3%

EBIT / Interest Exp.

114.9x 51.7x 34.9x 48.7x 42.0x 40.1x 89.7x 64.2x 28.0x 19.21x 14.89x 17.96x 20.44x 23.14x

EBITDA / Interest Exp.

134.3x 66.1x 46.4x 62.3x 51.4x 48.3x 106.8x 77.2x 34.9x 27.43x 21.72x 26.89x 32.28x 39.24x

Total Debt/EBITDA

0.1x 0.5x 0.2x 0.1x 0.4x 0.2x 0.5x 0.7x 1.3x 1.02x 0.82x 0.68x 0.51x 0.43x

Ratio

39

Cash FlowCash Flow

For the Fiscal Period Ending Dec-31-2007 Dec-31-2008 Dec-31-2009 Dec-31-2010 Dec-31-2011 Dec-31-2012 Dec-31-2013 Dec-31-2014 Dec-31-2015 Dec-31-2016 Dec-31-2017 Dec-31-2018 Dec-31-2019 Dec-31-2020Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD Net Income 52.6 38.2 46.8 68.5 96.9 128.8 162.3 208.0 232.6 260.0 315.1 373.6 427.9 472.4 Depreciation & Amort. 13.1 19.7 26.3 29.3 33.4 40.9 48.4 63.6 87.0 120.2 120.2 120.2 120.2 120.2 Amort. of Goodwill and Intangibles 1.5 1.6 1.9 2.0 2.9 2.2 2.1 8.5 13.9 13.0 10.5 9.4 9.3 7.3

Depreciation & Amort., Total 14.6 21.3 28.2 31.3 36.3 43.1 50.5 72.1 100.9 133.2 130.7 129.6 129.5 127.5 (Gain) Loss From Sale Of Assets - 0.0 0.0 0.0 0.0 0.5 0.3 0.3 0.5 0.6 0.6 0.6 0.7 0.8

Asset Writedown & Restructuring Costs - - - - (3.3) - - - - - - - - -Stock-Based Compensation 4.2 8.5 12.9 16.2 18.1 19.8 43.2 50.8 60.4 80.0 64.9 69.0 73.2 77.3 Provision & Write-off of Bad debts 4.6 - - - - - - - - - - - - -Other Operating Activities (7.5) 11.4 (8.8) (6.7) 13.2 (1.5) (3.0) 25.5 69.3 60.0 - - - -Change in Acc. Receivable (24.2) 2.6 3.8 (32.3) (33.9) (53.4) (36.0) (101.1) (191.9) (280.1) (214.1) (46.4) (48.7) (51.1) Change In Inventories (84.0) (19.5) 33.0 (65.2) (114.6) 4.7 (156.9) (84.7) (278.5) (257.3) (104.0) (57.2) (60.1) (63.1) Change in Acc. Payable 11.9 17.0 (4.4) 16.2 17.2 35.4 14.6 49.1 (22.6) 38.0 23.3 25.6 28.2 (55.4) Change in Inc. Taxes 3.5 2.5 (6.1) 5.0 4.6 4.5 7.4 3.4 (2.5) 18.1 36.5 38.8 36.0 29.5 Change in Other Net Operating Assets 9.8 (12.5) 13.5 17.2 (19.2) 17.9 37.4 (4.5) (12.4) 19.7 9.9 10.5 11.1 11.7 Cash from Ops. (14.6) 69.5 119.0 50.1 15.2 199.8 120.1 219.0 (44.1) 72.3 262.9 544.2 597.7 549.4 Capital Expenditure (34.0) (38.6) (19.8) (30.2) (79.4) (50.7) (87.8) (140.5) (298.9) (281.0) (99.6) (56.9) (14.5) (10.0) Sale of Property, Plant, and Equipment - 0.0 - - 0 0 0 0 0

Cash Acquisitions - - - - - - (148.1) (10.9) (539.5) 0 0 0 0 0

Divestitures - - - - - - - - - - - - - -Sale (Purchase) of Intangible assets (0.1) (0.6) - - 0 0 0 0 0

Invest. in Marketable & Equity Securt. 0 - - (11.1) (3.9) - - - (6.5) 11.9 - - - -Net (Inc.) Dec. in Loans Originated/Sold - - - - - - (1.7) - - - - - - -Other Investing Activities - (2.9) 0 (0.5) (6.2) 3.7 (0.5) (0.9) (2.6) (0.7) (0.2) (0.1) (0.0) (0.0) Cash from Investing (34.1) (42.1) (19.9) (41.8) (89.4) (46.9) (238.1) (152.3) (847.5) (269.8) (99.8) (57.0) (14.5) (10.0) Short Term Debt Issued 14.0 40.0 - - 30.0 - - - - - - - - -Long-Term Debt Issued 11.8 13.2 7.6 5.3 30.6 50.0 100.0 250.0 650.0 - - - -Total Debt Issued 25.8 53.2 7.6 5.3 60.6 50.0 100.0 250.0 650.0 1,302.5 - - - -Short Term Debt Repaid (14.0) (15.0) (25.0) - (30.0) - - - - - - - - -Long-Term Debt Repaid (3.8) (7.0) (8.0) (9.5) (7.4) (69.3) (5.5) (118.7) (265.2) (1,124.7) (300.0) (500.0) (600.0) (100.0) Total Debt Repaid (17.8) (22.0) (33.0) (9.5) (37.4) (69.3) (5.5) (118.7) (265.2) (1,124.7) (300.0) (500.0) (600.0) (100.0) Issuance of Common Stock 3.2 2.0 5.1 7.3 14.6 14.8 15.1 15.8 10.3 15.8 24.2 37.1 56.9 87.1 Common Dividends Paid - - - - - - - - - (2.9) (5.0) (5.0) (5.0) (5.0) Total Dividends Paid 3.2 2.0 5.1 7.3 14.6 14.8 15.1 15.8 10.3 12.9 19.2 32.1 51.9 82.1 Special Dividend Paid - - - - - - - - - - - - - -Other Financing Activities 6.9 2.1 3.8 4.2 7.9 16.9 17.2 35.3 45.0 41.9 39.1 36.4 34.0 31.6 Cash from Financing 18.1 35.4 (16.5) 7.2 45.8 12.3 126.8 182.3 440.1 232.7 (241.7) (431.5) (514.2) 13.8 Foreign Exchange Rate Adj. 0.5 (1.4) 2.6 1.0 (0.1) 1.3 (3.1) (3.3) (11.8) (4.6) (1.8) (2.5) (3.5) (8.3) Net Change in Cash (30.1) 61.5 85.3 16.6 (28.5) 166.5 5.6 245.7 (463.3) 30.5 (80.4) 53.3 65.6 544.9

CashFlow

40

Balance SheetBalance Sheet

Balance Sheet as of: Dec-31-2007 Dec-31-2008 Dec-31-2009 Dec-31-2010 Dec-31-2011 Dec-31-2012 Dec-31-2013 Dec-31-2014 Dec-31-2015 Dec-31-2016 Dec-31-2017 Dec-31-2018 Dec-31-2019 Dec-31-2020Press ReleaseSep-30-2016 Jun-30-2016

Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USDASSETS Cash And Equivalents

40.6

102.0

187.3

203.9

175.4

341.8

347.5

593.2

129.9

160.4

80.0

133.3

198.9

743.8

180.0

121.2 Total Cash & ST Investments

40.6

102.0

187.3

203.9

175.4

341.8

347.5

593.2

129.9

160.4

80.0

133.3

198.9

743.8

180.0

121.2 Accounts Receivable

93.5

81.3

79.4

102.0

134.0

175.5

210.0

279.8

433.6

713.7

927.9

974.2

1,023.0

1,074.1

713.7

461.0 Total Receivables

93.5

81.3

79.4

102.0

134.0

175.5

210.0

279.8

433.6

713.7

927.9

974.2

1,023.0

1,074.1

713.7

461.0 Inventory

166.1

182.2

148.5

215.4

324.4

319.3

469.0

536.7

783.0

1,040.3

1,144.3

1,201.5

1,261.6

1,324.7

970.6

1,086.7 Prepaid Exp.

11.6

16.8

19.7

19.3

37.6

43.9

64.0

86.4

148.4

226.8

253.9

266.6

279.9

293.9

162.3

179.8 Deferred Tax Assets, Curr.

10.4

12.8

12.9

15.3

16.2

23.1

38.4

52.5 -

70.0

60.0

50.0

50.0

50.0 - -

Restricted Cash - - - - 2.0

- - - - - - - - - - -

Other Current Assets - 1.2

0.3

- - 0.0

0.0

0.8

3.8

0

0

0

0

0

- 0.5

Total Current Assets 322.2

396.4

448.0

555.9

689.7

903.6

1,128.8

1,549.4

1,498.8

2,211.2

2,466.0

2,625.6

2,813.3

3,486.5

2,026.6

1,849.2

%Prepaid Exp. Growth rate 0.4

0.2

(0.0)

0.9

0.2

0.5

0.4

0.7

0.5

0.1

0.1

0.1

0.1

Gross Property, Plant & Equipment

83.7

120.1

142.6

162.9

273.8

326.1

396.1

522.4

831.8 1,396.86

1,563.61

1,641.79

1,650.00

1,658.25

- -

Accumulated Depreciation (31.4)

(46.6)

(69.7)

(86.8)

(114.7)

(145.3)

(172.1)

(216.8)

(293.2)

(577.3)

(644.5)

(665.7)

(659.5)

(657.7)

- -

Net Property, Plant & Equipment 52.3

73.5

72.9

76.1

159.1

180.9

224.0

305.6

538.5

819.5

919.1

976.0

990.5

1,000.5

751.3

712.9

Long-term Investments - - - -

14.4

14.6

16.3

13.4

12.0

12.0

12.0

12.0

12.0

12.0 - -

Goodwill - - - - - - 122.2

123.3

585.2

600.0

600.0

600.0

600.0

600.0

576.9

580.3

Other Intangibles 6.5

5.5

5.7

3.9

5.5

4.5

24.1

26.2

75.7

68.2

68.2

68.2

68.2

68.2

68.2

70.7

Deferred Tax Assets, LT 8.2

8.7

13.9

21.3

15.9

22.6

31.1

33.6

92.2

205.1

205.1

205.1

205.1

205.1

155.6

118.1

Other Long-Term Assets 1.4

3.4

5.1

18.2

34.6

30.9

31.2

43.7

66.6

118.9

118.9

118.9

118.9

118.9

106.7

95.8

Total Long-term Assets 68.4

91.1

97.6

119.5

229.5

253.5

448.9

545.7

1,370.1

1,823.8

1,923.4

1,980.3

1,994.7

2,004.8

1,658.8

1,577.7

Total Assets

390.6

487.6

545.6

675.4

919.2

1,157.1

1,577.7

2,095.1

2,868.9

4,035.0

4,389.4

4,605.9

4,808.1

5,491.2

3,685.3

3,426.9 LIABILITIES Accounts Payable

55.0

72.4

68.7

84.7

100.5

143.7

165.5

210.4

200.5

194.6

232.7

255.9

281.5

309.7

254.2

332.1 Accrued Exp.

36.1

25.9

40.9

54.5

68.6

85.1

133.7

147.7

192.9

238.3

341.9

434.3

569.6

822.6

238.3

170.2 Short-term Borrowings -

25.0 - - - -

100.0 - -

0

0

0

0

0 -

150.0 Curr. Port. of LT Debt

4.1

7.1

9.2

6.9

6.9

9.1

5.0

29.0

42.0

30.0

28.6

28.6

28.6

26.3

277.0

27.0 Curr. Port. of Cap. Leases

0.5

0.4

0.1 - 0 0 0 0 0

-

Def. Tax Liability, Curr. - 0.3

- - -

Other Current Liabilities - 2.1

1.3

3.1

7.6

14.3

22.5

34.6

43.4

81.9

127.9

129.2

130.5

131.8

81.9

30.1

Total Current Liabilities 95.7

133.1

120.2

149.1

183.6

252.2

426.6

421.6

478.8

544.8

731.1

848.1

1,010.3

1,290.4

851.4

709.4

Long-Term Debt

9.3

13.1

10.9

9.1

70.8

52.9

48.0

255.9

628.5

600.0

600.0

600.0

550.0

550.0

796.8

843.2 Capital Leases

0.5

0.1 - -

0

0

0

0

0

0 -

Def. Tax Liability, Non-Curr. - 0.0

- -

0

-

Other Non-Current Liabilities 4.7

10.2

14.5

20.2

28.3

35.1

49.8

67.3

93.4

114.0

153.3

168.7

185.5

204.1

114.0

103.0

Total Long-term Liabilities 14.4

23.3

25.4

29.3

99.2

87.9

97.8

323.2

721.9

714.0

753.3

768.7

735.5

754.1

910.8

946.2

%Other non current liability growth rate 1.2

0.4

0.4

0.4

0.2

0.4

0.4

0.4

0.2

0.3

0.1

0.1

0.1

Total Liabilities

110.1

156.5

145.6

178.4

282.8

340.2

524.4

744.8

1,200.7

1,258.8

1,484.5

1,616.7

1,745.8

2,044.5

1,762.2

1,655.6 Common Stock

0.0

0.0

0.0

0.0

0.0

0.0

0.1

0.1

0.1 1,015.50

1,020.3

1,088.8

1,145.7

1,372.6

1,923.2

0.1 Additional Paid In Capital

162.4

174.7

197.3

224.9

268.2

321.3

397.2

508.4

636.6

627.4

752.8

767.9

783.2

939.9

0

787.1 Retained Earnings

117.8

156.0

202.2

270.0

366.2

493.2

653.8

856.7

1,076.5

1,127.8

1,126.0

1,126.6

1,127.3

1,128.0

0

1,029.4 Treasury Stock - - - - - - - - -

0

0

0

0

0 - -

Comprehensive Inc. and Other 0.3

0.3

0.5

2.0

2.0

2.4

2.2

(14.8)

(45.0)

5.5

5.8

5.9

6.1

6.2

- (45.3)

Total Common Equity 280.5

331.1

400.0

497.0

636.4

816.9

1,053.4

1,350.3

1,668.2

2,776.2

2,904.9

2,989.3

3,062.3

3,446.6

1,923.2

1,771.3

Total Liabilities And Equity

390.6

487.6

545.6

675.4

919.2

1,157.1

1,577.7

2,095.1

2,868.9

4,035.0

4,389.4

4,606.0

4,808.1

5,491.1

3,685.3

3,426.9

Balance Sheet

41

Income Statement

Income StatementIncome Statement Historical Projected FY 07A FY 08A FY 09A FY 10A FY 11A FY 12A FY 13A FY 14A FY 15A FY 16A FY 17E FY 18E FY 19E FY 20E

For the Fiscal Period Ending Dec-31-2007 Dec-31-2008 Dec-31-2009 Dec-31-2010 Dec-31-2011 Dec-31-2012 Dec-31-2013 Dec-31-2014 Dec-31-2015 Dec-31-2016 Dec-31-2017 Dec-31-2018 Dec-31-2019 Dec-31-2020Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD Revenue

606.6

725.2

856.4

1,063.9

1,472.7

1,834.9

2,332.1

3,084.4

3,963.3

4,936.3

6,066.0

7,443.3

8,991.5 10,653.4

Other Revenue -

-

-

-

-

-

-

-

-

-

-

-

-

-

Total Revenue 606.6

725.2

856.4

1,063.9

1,472.7

1,834.9

2,332.1

3,084.4

3,963.3

4,936.3

6,066.0

7,443.3

8,991.5

10,653.4

50% 51% 52% 50% 52% 52% 51% 51% 52% 52% 52% 52% 52% 51% Cost Of Goods Sold

301.5

372.1

446.2

533.0

759.9

956.0

1,196.3

1,573.0

2,057.0

2,576.7

3,130.1

3,833.3

4,648.6

5,475.9 Gross Profit

305.1

353.2

410.2

530.9

712.8

878.9

1,135.7

1,511.3

1,906.4

2,359.6

2,935.9

3,610.0

4,342.9

5,177.6 (Gross Margin %) 50.3% 48.7% 47.9% 49.9% 48.4% 47.9% 48.7% 49.0% 48.1% 47.8% 48.4% 48.5% 48.3% 48.6% Selling General & Admin Exp.

154.7

196.5

225.2

290.5

384.4

469.7

818.5

1,076.4

1,375.3

1,742.5

2,171.6

2,679.6

3,219.0

3,845.9 R & D Exp.

49.6

58.4

71.8

96.8

129.1

158.5

-

-

-

-

-

-

-

- Depreciation & Amort.

14.6

21.3

28.2

31.3

36.3

43.1

50.5

72.1

100.9

134.1

185.9

256.4

359.5

496.1 Amort. of Goodwill and Intangibles

-

-

-

-

-

-

2.1

8.5

13.9

13.0

10.5

9.4

9.3

7.3

Other Operating Expense/(Income)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Other Operating Exp., Total

218.9

276.3

325.3

418.6

549.8

671.3

871.2

1,157.0

1,490.1

1,889.6

2,368.0

2,945.3

3,587.7

4,349.3 Operating Income

86.2

76.9

84.9

112.3

163.0

207.6

264.5

354.3

416.2

469.9

567.9

664.7

755.2

828.3 Interest Expense

(0.8)

(1.5)

(2.4)

(2.3)

(3.9)

(5.2)

(3.0)

(5.5)

(14.8)

(22.7)

(35.4)

(34.8)

(35.0)

(34.1) Interest and Invest. Income

1.5

0.6

0.1

0.0

0.0

0.0

0.0

0.2

0.2

0.2

0.2

0.2

0.2

0.2 Net Interest Exp.

0.7

(0.9)

(2.3)

(2.3)

(3.9)

(5.2)

(3.0)

(5.3)

(14.6)

(22.5)

(35.2)

(34.6)

(34.8)

(33.9) Currency Exchange Gains (Loss)

2.0

(6.2)

(0.5)

(1.2)

(2.1)

(0.1)

(1.2)

(6.4)

(8.9)

(8.9)

(8.9)

(8.9)

(8.9)

(8.9)

Other Non-Operating Inc. (Exp.)

-

0.0

-

-

-

-

-

-

1.7

-

-

-

-

-

EBT Excl. Unusual Items 88.9

69.8

82.1

108.9

157.0

202.3

260.3

342.6

394.4

438.5

523.8

621.2

711.5

785.4

Merger & Related Restruct. Charges

-

-

-

-

-

-

-

(0.8)

(6.3)

(6.3)

-

-

-

-

Impairment of Goodwill -

-

-

-

-

-

-

-

-

-

-

-

-

-

Other Unusual Items -

-

-

-

-

-

-

-

-

-

-

-

-

-

EBT Incl. Unusual Items 88.9

69.8

82.1

108.9

157.0

202.3

260.3

341.8

388.1

432.2

523.8

621.2

711.5

785.4

(Tax rate) 41% 45% 43% 37% 38% 37% 38% 39% 40% 40% 40% 40% 40% 40%Income Tax Expense

36.5

31.7

35.6

40.4

59.9

74.7

98.7

134.2

154.1

172.2

208.8

247.6

283.5

313.0 Earnings from Cont. Ops.

52.6

38.2

46.8

68.5

96.9

128.8

162.3

208.0

232.6

260.0

315.1

373.6

427.9

472.4 Earnings of Discontinued Ops.

-

-

-

-

-

-

-

-

-

-

-

-

-

- Extraord. Item & Account. Change

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Net Income to Company 52.6

38.2

46.8

68.5

96.9

128.8

162.3

208.0

232.6

260.0

315.1

373.6

427.9

472.4

Minority Int. in Earnings

-

-

-

-

-

-

-

-

-

Net Income 52.6

38.2

46.8

68.5

96.9

128.8

162.3

208.0

232.6

260.0

315.1

373.6

427.9

472.4

Under Armour_Security Analysis

Documents

Transcript of Under Armour_Security Analysis