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Financial Analysis by Jacob Pifer LDR 66O AC

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Financial Analysis by Jacob Pifer LDR 66O AC Powered By Docstoc
					Under Armour


    Financial Analysis
           by
       Jacob Pifer
       LDR 640 AC
             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
                   Under Armour
                         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
Under Armour
                              Under Armour
                                Horizontal Analysis
                                  (in thousands)
                     2009        2008       2007       2009    2008    2007
Revenues             $856,411    $725,244   $606,561   118%    119%    100%
Cost of goods sold   $443,386    $370,296   $301,217   119%    123%    100%
Gross Profit         $413,025    $354,948   $305,044   116%    116%    100%
Selling Expense      $327,752    $278,023   218,779    118%    127%    100%
Income Operations    $85,273     $76,925    $86,265    111%    89%     100%
Interest inc (exp)   ($2,344)    $(850)     $749       -275%   -113%   100%
Other Inc (Exp)      ($511)      ($6,175)   $2029      1235%   -304%   100%
Income before tax    $82,418     $69,900    $89,043    118%    78%     100%
Taxes                $35,633     $31,671    $36,485
Net Income           $46,785     $38,229    $52,558    122%    72%     100%
                                Under Armour
                                    Balance Sheet
                                      (in thousands)
Assets                                                 2009       2008       2007
Current Assets
  Cash and cash equivalents                            $187,297   $102,042   $40,588
  Accounts Receivables                                 $79,356    $81,302    $93,515
  Inventories                                          $148,488   $182,232   $166,082
  Prepaid expenses and other Current Assets            $19,989    $18,023    $11,642
  Deferred income taxes                                $12,870    $12,824    $10,418
         Total Current Assets                          $448,000   $396,423   $322,245
  Property and Equipment                               $72,926    $73,548    $52,332
  Other long term assets                               $10,754    $8,897     $7,863
  Deferred income taxes                                $13,908    $8,687     $8,173
         Total Assets                                  $545,588   $487,555   $390,613
                               Under Armour
                                    Balance Sheet
                                     (in thousands)
Current Liabilities                                   2009       2008       2007
  Revolving Credit                                    ----       $25,000    ---
  Accounts Payable                                    $68,710    $72,435    $55,012
  Accrued Expenses                                    $40,885    $25,905    $36,111
  Current Maturities                                  $9275      $7431      $4,576
  Other Current Liabilities                           $1292      $2337      ---
        Total Current Liabilities                     $120,162   $133,110   $95,699
  Long Term Debt                                      $10,948    $13,061    $9,298
  Capital Lease Obligations                           ----       $97        $458
  Other Long Term Liabilities                         $14,481    $10,190    $4,673
        Total Liabilities                             $145,591   $156,458   $110,128
Total Stockholder’s Equity                            $399,997   $331,097   $280,485
Total Liabilities and Equity                          $545,588   $487,555   $390,613
                  Under Armour
                          Liquidity Ratios
                                       Industry Avg
Current Ratio:         3.7x                3.5x

Quick Ratio:           2.2x                1.1x

                   Asset Management Ratios
                                 Industry Avg
Days Sales Outstanding:    34.2         43

Total Asset Turnover          1.66x         1.7x
Under Armour

      PROFITABILITY RATIOS
      DEBT MANAGEMENT RATIOS

        Profit Margin:
       Debt Ratio:        5.4%
            27%
         Industry Average 9%
       ROA:

        ROE:
       TIE Ratio:           12.8%
                             36.1
         Industry Average: 2.2

        $7.96
        Book Value Per Share
                   Under Armour
                          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.
                  Under Armour
                         References:
•Business Week.
http://investing.businessweek.com/research/stocks/financials/rat
ios.asp?ticker=UA:US

•Sports Illustrated online.
http://sportsillustrated.cnn.com/2009/more/04/09/under.armou
r/index.html

•Under Armour INC online.
http://investor.underarmour.com/company/about.cfm
Under Armour
   Thank You

				
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posted:7/16/2013
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