Transcript Powerpoint - Jacob Pifer
Under Armour
Founded in 1996 in the Basement of a Georgetown Home Now based in Baltimore, Maryland Offices throughout the world Toronto, Japan, China and Amsterdam Employs over 2,000 workers worldwide Owns over 70% of Performance Apparel Market
Governing Board Kevin Plank – CEO, President, Chairman Brad Dickerson – Chief Financial Officer Wayne Marino – Chief of Operations J. Scott Plank – Executive Vice President Business Development Kip J. Fulks Executive Vice President - Product Mark M. Dowley Executive Vice President Global Brand President - International
Revenues Cost of goods sold Gross Profit Selling Expense Income Operations Interest inc (exp) Other Inc (Exp) Income before tax Taxes Net Income
2009
$856,411 $443,386 $413,025 $327,752 $85,273 ($2,344) ($511) $82,418 $35,633 $46,785 Horizontal Analysis (in thousands)
2008 2007
$725,244 $370,296 $354,948 $278,023 $76,925 $(850) $606,561 $301,217 $305,044 218,779 $86,265 $749 ($6,175) $69,900 $31,671 $38,229 $2029 $89,043 $36,485 $52,558 122%
2009
118% 119% 116% 118% 111% -275% 1235% 118%
2008
119% 123% 116% 127% 89% -113% -304% 78%
2007
100% 100% 100% 100% 100% 100% 100% 100% 72% 100%
Balance Sheet (in thousands)
Assets
Current Assets Cash and cash equivalents Accounts Receivables Inventories Prepaid expenses and other Current Assets Deferred income taxes Total Current Assets Property and Equipment Other long term assets Deferred income taxes Total Assets
2009
$187,297 $79,356 $148,488 $19,989 $12,870 $448,000 $72,926 $10,754 $13,908 $545,588
2008 2007
$102,042 $81,302 $182,232 $18,023 $12,824 $396,423 $73,548 $8,897 $8,687 $487,555 $40,588 $93,515 $166,082 $11,642 $10,418 $322,245 $52,332 $7,863 $8,173 $390,613
Current Liabilities
Revolving Credit Accounts Payable Accrued Expenses Current Maturities Other Current Liabilities Total Current Liabilities Long Term Debt Capital Lease Obligations Other Long Term Liabilities Total Liabilities Total Stockholder’s Equity Total Liabilities and Equity Balance Sheet (in thousands)
2009
--- $68,710 $40,885 $9275 $1292 $120,162 $10,948 --- $14,481 $145,591 $399,997 $545,588
2008
$25,000 $72,435 $25,905 $7431 $2337 $133,110 $13,061 $97 $10,190 $156,458 $331,097 $487,555
2007
-- $55,012 $36,111 $4,576 -- $95,699 $9,298 $458 $4,673 $110,128 $280,485 $390,613
Current Ratio: Quick Ratio: 3.7x
Liquidity Ratios Industry Avg 3.5x
2.2x
1.1x
Asset Management Ratios Days Sales Outstanding: 34.2
Industry Avg 43 Total Asset Turnover 1.66x
1.7x
DEBT MANAGEMENT RATIOS Debt Ratio: Industry Average 27% TIE Ratio: 36.1
Industry Average: 2.2
PROFITABILITY RATIOS Profit Margin: 5.4% ROA: 9% ROE: 12.8% Book Value Per Share $7.96
Conclusion
Under Armour is gaining ground on the giant that is NIKE.
Under Armour appears to be on solid financial ground.
Under Armour is reaching out to other markets, ie Military and Law Enforcement Once Under Armour fully launches the footwear and apparel lines in these other markets, they will become a very successful company.
References:
• Business Week. http://investing.businessweek.com/research/stocks/financials/rati os.asp?ticker=UA:US • Sports Illustrated online. http://sportsillustrated.cnn.com/2009/more/04/09/under.armour
/index.html
• Under Armour INC online. http://investor.underarmour.com/company/about.cfm