Under Armour Reports Third Quarter Net Revenues Growth Of 26%; Raises Full Year Outlook

  Under Armour Reports Third Quarter Net Revenues Growth Of 26%; Raises Full
                                 Year Outlook

- Third Quarter Net Revenues Increased 26% to $723 Million

- Third Quarter Diluted EPS Increased 26% to $0.68

- Company Raises 2013 Net Revenues Outlook to Approximately $2.26 Billion
(+23%)

- Company Updates 2013 Operating Income Outlook to Approximately $260 Million
(+25%)

PR Newswire

BALTIMORE, Oct. 24, 2013

BALTIMORE, Oct. 24, 2013 /PRNewswire/ --Under Armour, Inc. (NYSE: UA) today
announced financial results for the third quarter ended September30, 2013.
Net revenues increased 26% in the third quarter of 2013 to $723 million
compared with net revenues of $575 million in the prior year's period. Net
income increased 27% in the third quarter of 2013 to $73 million compared with
$57 million in the prior year's period. Diluted earnings per share for the
third quarter of 2013 were $0.68 compared with $0.54 per share in the prior
year's period.

(Logo: http://photos.prnewswire.com/prnh/20110127/NE37387LOGO)

Third quarter apparel net revenues increased 26% to $561 million compared with
$445 million in the same period of the prior year, primarily driven by the
continued expansions of the Storm and Charged Cotton^® platforms, as well as
the introduction of ColdGear^® Infrared technology. Third quarter footwear
net revenues increased 28% to $81 million from $63 million in the prior year's
period, led by strong gains in both running and football. Third quarter
accessories net revenues increased 18% to $64 million from $54 million in the
prior year's period, primarily driven by bags and headwear.
Direct-to-Consumer net revenues, which represented 25% of total net revenues
for the third quarter, grew 34% year-over-year.

Kevin Plank, Chairman and CEO of Under Armour, Inc., stated, "We have a
consistent formula that is driving success across our business: deliver
newness and innovation and the consumer responds. This has been instrumental
in driving net revenue growth in excess of 20% for the past fourteen straight
quarters and we will continue to fuel this strategy going forward. During the
quarter we introduced our latest apparel innovation, ColdGear^® Infrared,
which utilizes a ceramic thermo-conductive inner coating to absorb and retain
body heat. With the limited release of Speedform we also provided a glimpse
of where we can take footwear and redefine fit in the category."

Gross margin for the third quarter of 2013 was 48.4% compared with 48.7% in
the prior year's quarter, primarily reflecting higher import duties, partially
offset by the net impact of lapping the prior year's sourcing challenges.
Selling, general and administrative expenses as a percentage of net revenues
were 31.7% in the third quarter of 2013 compared with 32.9% in the prior
year's period, primarily reflecting leverage of marketing expenses. Third
quarter operating income increased to $121 million compared with $91 million
in the prior year's period. 

Balance Sheet Highlights
Cash and cash equivalents increased 19% to $186 million at September30, 2013
compared with $157 million at September30, 2012. Inventory at September30,
2013 increased 59% to $497 million compared with $312 million at September30,
2012. Long-term debt decreased to $54 million at September30, 2013 from $72
million at September30, 2012.

Updated 2013 Outlook
The Company had previously anticipated 2013 net revenues in the range of $2.23
billion to $2.25 billion, representing growth of 22% to 23% over 2012, and
2013 operating income in the range of $258 million to $260 million,
representing growth of 24% to 25% over 2012. Based on current visibility, the
Company now expects 2013 net revenues of approximately $2.26 billion,
representing growth of 23% over 2012, and 2013 operating income of
approximately $260 million, representing growth of 25% over 2012. The Company
continues to anticipate an effective tax rate of 40.0% to 41.0% for the full
year, compared to 36.7% for 2012. The Company now anticipates fully diluted
weighted average shares outstanding of approximately 108 million for 2013.

Mr. Plank concluded, "The sustained momentum we are generating domestically
will help fuel our global ambitions. Many of these global efforts are ramping
up with recent specialty stores opening in China, Japan and Mexico, E-Commerce
platforms launching in Hong Kong and Taiwan, and new offices opening in Brasil
and Chile. Moreover, we are better aligning our internal leadership to help
capitalize on these global opportunities, while also adding talent across our
Direct-to-Consumer businesses. We have never been better positioned to take
the Under Armour performance story to athletes around the world."

Conference Call and Webcast
The Company will provide additional commentary regarding its third quarter
results as well as its updated 2013 outlook during its earnings conference
call today, October 24, at 8:30 a.m. ET. The call will be webcast live at
http://investor.underarmour.com/events.cfm and will be archived and available
for replay approximately three hours after the live event. Additional
supporting materials related to the call will also be available at
http://investor.underarmour.com. The Company's financial results are also
available online at http://investor.underarmour.com/results.cfm.

About Under Armour, Inc.
Under Armour®(NYSE: UA) is a leading developer, marketer, and distributor of
branded performance apparel, footwear, and accessories. The Company's products
are sold worldwide and worn by athletes at all levels, from youth to
professional, on playing fields around the globe. The Under Armour global
headquarters is in Baltimore, Maryland. For further information, please visit
the Company's website at www.ua.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 development
and introduction of new products, and the implementation of our marketing and
branding strategies. 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: changes in general economic or market conditions that could affect
consumer spending and the financial health of our retail customers; our
ability to effectively manage our growth and a more complex business; 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; increased
competition causing us to reduce the prices of our products or to increase
significantly our marketing efforts in order to avoid losing market share;
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; changes in consumer
preferences or the reduction in demand for performance apparel, footwear and
other products; our ability to accurately anticipate and respond to seasonal
or quarterly fluctuations in our operating results; our ability to effectively
market and maintain a positive brand image; the availability, integration and
effective operation of management information systems and other technology;
and our ability to attract and maintain 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.

(Tables Follow)



Under Armour, Inc.

For the Quarter and Nine Months Ended September 30, 2013 and 2012

(Unaudited; in thousands, except per share amounts)

CONSOLIDATED STATEMENTS OF INCOME
                Quarter Ended                               Nine Months Ended
                September30,                               September30,
                            % of Net              % of Net                % of Net                % of Net
                2013                  2012                  2013                    2012
                            Revenues              Revenues                Revenues                Revenues
Net revenues    $ 723,146   100.0  %  $ 575,196   100.0  %  $ 1,649,295   100.0  %  $ 1,329,058   100.0  %
Cost of goods   373,011     51.6   %  294,805     51.3   %  862,978       52.3   %  703,996       53.0   %
sold
Gross profit    350,135     48.4   %  280,391     48.7   %  786,317       47.7   %  625,062       47.0   %
Selling,
general and     229,306     31.7   %  189,411     32.9   %  619,686       37.6   %  497,959       37.4   %
administrative
expenses
Income from     120,829     16.7   %  90,980      15.8   %  166,631       10.1   %  127,103       9.6    %
operations
Interest        (691)       (0.1)  %  (1,303)     (0.2)  %  (2,127)       (0.2)  %  (3,978)       (0.3)  %
expense, net
Other income    (113)       —      %  (31)        0.0    %  (670)         0.0    %  561           —      %
(expense), net
Income before   120,025     16.6   %  89,646      15.6   %  163,834       9.9    %  123,686       9.3    %
income taxes
Provision for   47,241      6.5    %  32,329      5.6    %  65,670        3.9    %  45,040        3.4    %
income taxes
Net income      $ 72,784    10.1   %  $ 57,317    10.0   %  $ 98,164      6.0    %  $ 78,646      5.9    %
Net income available per common
share
Basic           $ 0.69                $ 0.55                $ 0.93                  $ 0.75
Diluted         $ 0.68                $ 0.54                $ 0.91                  $ 0.74
Weighted average common shares
outstanding
Basic           105,527               104,515               105,229                 104,228
Diluted         107,768               106,795               107,426                 106,157





NET REVENUES BY PRODUCT CATEGORY
             Quarter Ended                     Nine Months Ended
             September30,                     September30,
             2013        2012        %Change  2013          2012          %Change
Apparel      $ 560,899   $ 444,643   26.1  %   $ 1,216,645   $ 980,823     24.0  %
Footwear     81,024      63,153      28.3  %   243,458       194,241       25.3  %
Accessories  64,373      54,379      18.4  %   151,480       123,234       22.9  %
Total net    706,296     562,175     25.6  %   1,611,583     1,298,298     24.1  %
sales
Licensing    16,850      13,021      29.4  %   37,712        30,760        22.6  %
revenues
Total net    $ 723,146   $ 575,196   25.7  %   $ 1,649,295   $ 1,329,058   24.1  %
revenues





NET REVENUES BY GEOGRAPHIC SEGMENT
           Quarter Ended                     Nine Months Ended
           September30,                     September30,
           2013        2012        %Change  2013          2012          %Change
North      $ 678,894   $ 543,089   25.0  %   $ 1,548,621   $ 1,254,508   23.4  %
America
Other
foreign    44,252      32,107      37.8  %   100,674       74,550        35.0  %
countries
Total net  $ 723,146   $ 575,196   25.7  %   $ 1,649,295   $ 1,329,058   24.1  %
revenues





Under Armour, Inc.

As of September 30, 2013, December 31, 2012 and September 30, 2012

(Unaudited; in thousands)

CONDENSED CONSOLIDATED BALANCE SHEETS
                                      As of         As of         As of

                                      9/30/13       12/31/12      9/30/12
Assets
Cash and cash equivalents             $ 186,377     $ 341,841     $ 157,047
Accounts receivable, net              353,257       175,524       311,001
Inventories                           497,406       319,286       312,158
Prepaid expenses and other current    56,064        43,896        42,726
assets
Deferred income taxes                 29,811        23,051        19,370
Total current assets                  1,122,915     903,598       842,302
Property and equipment, net           201,603       180,850       170,157
Intangible assets, net                3,721         4,483         4,815
Deferred income taxes                 26,766        22,606        20,544
Other long term assets                41,985        45,546        40,821
Total assets                          $ 1,396,990   $ 1,157,083   $ 1,078,639
Liabilities and Stockholders' Equity
Accounts payable                      $ 184,405     $ 143,689     $ 112,187
Accrued expenses                      109,344       85,077        81,802
Current maturities of long term debt  5,034         9,132         41,552
Other current liabilities             34,201        14,330        18,300
Total current liabilities             332,984       252,228       253,841
Long term debt, net of current        49,148        52,757        30,682
maturities
Other long term liabilities           48,403        35,176        35,736
Total liabilities                     430,535       340,161       320,259
Total stockholders' equity            966,455       816,922       758,380
Total liabilities and stockholders'   $ 1,396,990   $ 1,157,083   $ 1,078,639
equity







Under Armour, Inc.

For the Nine Months Ended September 30, 2013 and 2012

(Unaudited; in thousands)

CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                        Nine Months Ended

                                                        September 30,
                                                        2013        2012
Cash flows from operating activities
Net income                                              $ 98,164    $ 78,646
Adjustments to reconcile net income to net cash used
in operating activities
Depreciation and amortization                           36,052      31,755
Unrealized foreign currency exchange rate (gains)       1,021       (2,405)
losses
Loss on disposal of property and equipment              598         485
Stock-based compensation                                25,586      15,155
Deferred income taxes                                   (10,691)    (7,509)
Changes in reserves and allowances                      12,007      3,861
Changes in operating assets and liabilities:
Accounts receivable                                     (181,100)   (180,065)
Inventories                                             (186,276)   12,593
Prepaid expenses and other assets                       (7,027)     2,461
Accounts payable                                        42,344      10,205
Accrued expenses and other liabilities                  37,404      17,611
Income taxes payable and receivable                     19,577      11,195
Net cash used in operating activities                   (112,341)   (6,012)
Cash flows from investing activities
Purchases of property and equipment                     (62,058)    (37,550)
Purchases of other assets                               (475)       —
Change in loans receivable                              (1,700)     —
Change in restricted cash                               —           (166)
Net cash used in investing activities                   (64,233)    (37,716)
Cash flows from financing activities
Payments on long term debt                              (4,212)     (5,490)
Excess tax benefits from stock-based compensation       13,770      16,219
arrangements
Proceeds from exercise of stock options and other       12,727      13,193
stock issuances
Net cash provided by financing activities               22,285      23,922
Effect of exchange rate changes on cash and cash        (1,175)     1,469
equivalents
Net decrease in cash and cash equivalents               (155,464)   (18,337)
Cash and cash equivalents
Beginning of period                                     341,841     175,384
End of period                                           $ 186,377   $ 157,047
Non-cash investing and financing activities
Increase (decrease) in accrual for property and         $ (6,289)   $ 530
equipment



SOURCE Under Armour, Inc.

Website: http://www.underarmour.com
Contact: Investors: Tom Shaw, CFA, Under Armour, Inc., 410.843.7676 or Media:
Diane Pelkey, Under Armour, Inc., 617.256.4541
 
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