G H Under Armour Income and Balance Sheet for 2017 and 2018 Income Statement in thousands) Net revenues Cost of Goods Sold Gross profit Selling. General and Admin Expenses Restructuring and impairment charges Income from Operations Interest Expense, net Other expense, net Income before Income Taxes Income tax expense (benefit) Income from equity method investment Net Income (loss) Year Ended December 31 common stock 2018 2017 2018 $5,193,185.00 $4,989,244.00 100.00% $ 2,852.714.00 $ 2,737,830.00 54.93% $ 2,340,471.00 $2,251,414.00 45.07% $ 2,182,339.00 $2,099,522.00 42.02% $ 183,149.00 $ 124,049.00 3.53% $ 25,017.00) $ 27,843.00 -0.48% $ (33,568.00) $ (34,538.00) -0.65% $ 19,203.00) $ (3,614.00) -0.18% $ (67,788.00) $ (10,309.00) -1.31% $ (20,552.00) $ 37,951.00 -0.40% 934.00 0.02% $ (46,302.00) $ (48,260.00) -0.89% 2017 100.00% 54.87% 45.13% 42.08% 2.49% 0.56% -0.69% -0.07% -0.21% 0.76% As Report Report Da Currency Audit Sta Consolid Scale Cash & C Accounts Less: alld Account: Inventor Prepaid Deferred Total cu -0.97% Asset Management (Turnover Ratios) 23 Inventory Turnover =COGS/Inventory 24 Payables Turnover =COGS/Accounts Payable 2018 2.80 5.09 2017 2.36 Times 4.88 Times Leaseh Furnitur Building Softwa Office Accum: Propert Goodw Intang Deferre Other Total a PROFITABILITY MEASURES 9 Profit Margin- Net Income/Sales 0 Return on Assets - Net Income/Total Assets Return on Equity = Net Income/Total Equity 2018 -0.89% -1.79% -2.30% 2017 -0.97% -2.06% -2.39% Revolv Accour 2017 Year end December 31 2018 USD Not Available Yes 2017 0.00% 4.87% 5.13% 2.08% 2.49% 0.56% 0.69% 0.07% 0.21% 0.76% As Reported Annual Balance Sheet Report Date Currency Audit Status Consolidated Scale Cash & cash equivalents Accounts receivable, gross Less: allowance for doubtful accounts Accounts receivable, net Inventories Prepaid expenses & other current assets Deferred income taxes Total current assets Thousands 557403 674746 22200 652546 1019496 364183 Common Stock 2017 2018 USD Not Qualified Yes Thousands 312483 13.13% 629370 15.89% 19700 0.52% 609670 15.37% 1158548 24.02% 256978 8.58% 7.80% 15.71% 0.49% 15.22% 28.92% 6.41% 0.97% 2593628 2337679 61.10% 58.35% Leasehold & tenant improvements Furniture, fixtures & displays Buildings Software Office equipment Accumulated depreciation Property & equipment, net Goodwill Intangible assets, net Deferred Income taxes Other long term assets Total assets 446330 218930 48230 286014 121202 655595 826868 546494 41793 112420 123819 4245022 431761 204926 47625 232660 98802 526984 885774 555674 46995 82801 97444 4006367 10.51% 5.16% 1.14% 6.74% 2.86% 15.44% 19.48% 12.87% 0.98% 2.65% 2.92% 100% 10.78% 5.12% 1.19% 5.81% 2.47% 13.15% 22.11% 13.87% 1.17% 2.07% 2.43% 100% Revolving credit facility, current Accounts payable Accrued expenses 560884 340415 125000 561108 13.21% 2968418.02% 3.12% 14.01% 7.41% Check for Updates N 10.78% Leasehold & tenant improvements Furniture, fixtures & displays Buildings Software Office equipment Accumulated depreciation Property & equipment, net Goodwill Intangible assets, net Deferred Income taxes Other long term assets Total assets 446330 218930 48230 286014 121202 655595 826868 546494 41793 112420 123819 4245022 431761 204926 47625 232660 98802 526984 885774 555674 46995 82801 97444 4006367 10.51% 5.16% 1.14% 6.74% 2.86% 15.44% 19.48% 12.87% 0.98% 2.65% 2.92% 13.87% 100% 1001 125000 561108 296841 13.21% 8.02% 3.12 14.01% 7.41% Revolving credit facility, current Accounts payable Accrued expenses Customer refund liability Current maturities of long term debt Other current liabilities Total current liabilities Long term debt, net of current maturities Revolving credit facility, long term Other long term liabilities Total liabilities 560884 340415 301421 25000 88257 1315977 703834 0.59 27000 50426 1060375 765046 31.00% 16.58% 19.10% 208340 2228151 162304 1987725 4.91% 52.49% 4.05% 49.61% Class A common stock Class B convertible common stock Class C common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Total stockholders' equity (deficit) Total stockholders' equity and liabilites 916628 1139082 -38987 2016871 4245022 74 872266 1184441 -38211 2018642 4006367 0.00% 0.00% 0.00% 21.59% 26.83% 0.92% 47.51% 100.00% 0.00% 0.00% 0.00% 21.77% 29.56% -0.95% 50.39% 100.00% muie coALUL you company 4. Analyze your company's capital structure. At a minimum you should: a. Provide a statement about the company's capital structure and any changes you would recommend making. This should include: 1. The company's equity position and items like: number of shares, market price, EPS, PE ratio, and book to market value. ii. The company's debt with a particularly focus on bonds and items like: YTM, rating, ability to pay. 5. Calculate your company's WACC and Analyze if it is optimal. a. Be sure to clearly breakout the components (Darkside" article may help with this). b. Provide a clear statement that demonstrates your understanding of WACC and if it is optimal for your company. G H Under Armour Income and Balance Sheet for 2017 and 2018 Income Statement in thousands) Net revenues Cost of Goods Sold Gross profit Selling. General and Admin Expenses Restructuring and impairment charges Income from Operations Interest Expense, net Other expense, net Income before Income Taxes Income tax expense (benefit) Income from equity method investment Net Income (loss) Year Ended December 31 common stock 2018 2017 2018 $5,193,185.00 $4,989,244.00 100.00% $ 2,852.714.00 $ 2,737,830.00 54.93% $ 2,340,471.00 $2,251,414.00 45.07% $ 2,182,339.00 $2,099,522.00 42.02% $ 183,149.00 $ 124,049.00 3.53% $ 25,017.00) $ 27,843.00 -0.48% $ (33,568.00) $ (34,538.00) -0.65% $ 19,203.00) $ (3,614.00) -0.18% $ (67,788.00) $ (10,309.00) -1.31% $ (20,552.00) $ 37,951.00 -0.40% 934.00 0.02% $ (46,302.00) $ (48,260.00) -0.89% 2017 100.00% 54.87% 45.13% 42.08% 2.49% 0.56% -0.69% -0.07% -0.21% 0.76% As Report Report Da Currency Audit Sta Consolid Scale Cash & C Accounts Less: alld Account: Inventor Prepaid Deferred Total cu -0.97% Asset Management (Turnover Ratios) 23 Inventory Turnover =COGS/Inventory 24 Payables Turnover =COGS/Accounts Payable 2018 2.80 5.09 2017 2.36 Times 4.88 Times Leaseh Furnitur Building Softwa Office Accum: Propert Goodw Intang Deferre Other Total a PROFITABILITY MEASURES 9 Profit Margin- Net Income/Sales 0 Return on Assets - Net Income/Total Assets Return on Equity = Net Income/Total Equity 2018 -0.89% -1.79% -2.30% 2017 -0.97% -2.06% -2.39% Revolv Accour 2017 Year end December 31 2018 USD Not Available Yes 2017 0.00% 4.87% 5.13% 2.08% 2.49% 0.56% 0.69% 0.07% 0.21% 0.76% As Reported Annual Balance Sheet Report Date Currency Audit Status Consolidated Scale Cash & cash equivalents Accounts receivable, gross Less: allowance for doubtful accounts Accounts receivable, net Inventories Prepaid expenses & other current assets Deferred income taxes Total current assets Thousands 557403 674746 22200 652546 1019496 364183 Common Stock 2017 2018 USD Not Qualified Yes Thousands 312483 13.13% 629370 15.89% 19700 0.52% 609670 15.37% 1158548 24.02% 256978 8.58% 7.80% 15.71% 0.49% 15.22% 28.92% 6.41% 0.97% 2593628 2337679 61.10% 58.35% Leasehold & tenant improvements Furniture, fixtures & displays Buildings Software Office equipment Accumulated depreciation Property & equipment, net Goodwill Intangible assets, net Deferred Income taxes Other long term assets Total assets 446330 218930 48230 286014 121202 655595 826868 546494 41793 112420 123819 4245022 431761 204926 47625 232660 98802 526984 885774 555674 46995 82801 97444 4006367 10.51% 5.16% 1.14% 6.74% 2.86% 15.44% 19.48% 12.87% 0.98% 2.65% 2.92% 100% 10.78% 5.12% 1.19% 5.81% 2.47% 13.15% 22.11% 13.87% 1.17% 2.07% 2.43% 100% Revolving credit facility, current Accounts payable Accrued expenses 560884 340415 125000 561108 13.21% 2968418.02% 3.12% 14.01% 7.41% Check for Updates N 10.78% Leasehold & tenant improvements Furniture, fixtures & displays Buildings Software Office equipment Accumulated depreciation Property & equipment, net Goodwill Intangible assets, net Deferred Income taxes Other long term assets Total assets 446330 218930 48230 286014 121202 655595 826868 546494 41793 112420 123819 4245022 431761 204926 47625 232660 98802 526984 885774 555674 46995 82801 97444 4006367 10.51% 5.16% 1.14% 6.74% 2.86% 15.44% 19.48% 12.87% 0.98% 2.65% 2.92% 13.87% 100% 1001 125000 561108 296841 13.21% 8.02% 3.12 14.01% 7.41% Revolving credit facility, current Accounts payable Accrued expenses Customer refund liability Current maturities of long term debt Other current liabilities Total current liabilities Long term debt, net of current maturities Revolving credit facility, long term Other long term liabilities Total liabilities 560884 340415 301421 25000 88257 1315977 703834 0.59 27000 50426 1060375 765046 31.00% 16.58% 19.10% 208340 2228151 162304 1987725 4.91% 52.49% 4.05% 49.61% Class A common stock Class B convertible common stock Class C common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Total stockholders' equity (deficit) Total stockholders' equity and liabilites 916628 1139082 -38987 2016871 4245022 74 872266 1184441 -38211 2018642 4006367 0.00% 0.00% 0.00% 21.59% 26.83% 0.92% 47.51% 100.00% 0.00% 0.00% 0.00% 21.77% 29.56% -0.95% 50.39% 100.00% muie coALUL you company 4. Analyze your company's capital structure. At a minimum you should: a. Provide a statement about the company's capital structure and any changes you would recommend making. This should include: 1. The company's equity position and items like: number of shares, market price, EPS, PE ratio, and book to market value. ii. The company's debt with a particularly focus on bonds and items like: YTM, rating, ability to pay. 5. Calculate your company's WACC and Analyze if it is optimal. a. Be sure to clearly breakout the components (Darkside" article may help with this). b. Provide a clear statement that demonstrates your understanding of WACC and if it is optimal for your company