Under Armour Income and Balance Sheet for 2017 and 2018 4. Income Statement (in thousands) Year Ended December 31 common stock iclou 6 2018 2017 2018 2017 Net revenues $5,193,185.00 $4,989,244.00 100.00% 100.00% Devic $2,852,714.00 $2,737,830.00 $2,340,471.00 $2,251,414.00 Cost of Goods Sold 54.93% 54.87% Gross profit 45.07% 45.13% $2,182,339.00 $2,099,522.00 $ 183,149.00 $ 124,049.00 $ (25,017.00)S $ (33,568.00)S 10 Selling, General and Admin Expenses Restructuring and impairment charges 42.02% 42.08% Tags 11 12 3.53% 2.49% Income from Operations 27,843.00 0.48% 0.56% 13 Interest Expense, net Other expense, net (34,538.00) -0.65% -0.69% O 14 (9,203.00) $ (67,788.00) $ (20,552.00) $ (3,614.00) (10,309.00) -0.18% -0.07% 15 Income before Income Taxes -1.31% -0.21% 16 Income tax expense (benefit) 37,951.00 -0.40% 0.76% 17 Income from equity method investment 934.00 0.02% 18 Net income (loss) $ (46,302.00) $ (48,260.00) 0.89% -0.97% 19 20 21 Asset Management (Turnover Ratios) 22 2018 2017 23 Inventory Turnover 24 Payables Turnover - COGS/Accounts Payable -COGS/Inventory 2.80 2.36 Times 5.09 4.88 Times 25 26 27 PROFITABILITY MEASURES 28 2018 2017 29 Profit Margin= Net Income/Sales 30 Return on Assets = Net Income/Total Assets 31 Return on Equity Net Income/Total Equity 0.89% 0.97% -1.79% -2.06% -2.30% -2.39% 32 33 34 Provide a statement about the Company's Captial structure and any changes you would recommend. 35 36 37 Under Armour Common size Ratio Year end December 31 2018 Common Stock As Reported Annual Balance Sheet Report Date Currency 2017 2018 2017 USD USD Not Available Yes Not Qualified Yes Audit Status Consolidated Scale Thousands Thousands 312483 13.13% 7.80% Cash & cash equivalents Accounts receivable, gross Less: allowance for doubtful accounts Accounts receivable, net 557403 674746 629370 15.89% 15.71% 22200 19700 0.52% 0.49% 652546 609670 15.37% 15.22% Inventories 1019496 1158548 24.02% 28.92% 8.58% 6.41% Prepald expenses & other current assets Deferred income taxes 364183 256978 Total current assets 2593628 2337679 61.10% 58.35% Leasehold & tenant improvements Furniture, fixtures & displays Buildings Software Office equipment Accumulated depreciation Property & equipment, net 446330 431761 10.51% 10.78% 218930 204926 5.16% 5.12% 48230 47625 1.14% 1.19% 286014 232660 6.74% 5.81% 121202 98802 2.86% 2.47% 655595 526984 15.44% 13.15% 826868 885774 19.48% 22.11% Goodwill 546494 555674 12.87% 13.87% Intangible assets, net 41793 0.98% 1.17% 46995 Deferred income taxes 112420 82801 2.65% 2.07% Other long term assets 123819 97444 2.92% 2.43% Total assets 4245022 4006367 100% 100% Revolving credit facility, current Accounts payable Accrued expenses 125000 3.12% 560884 561108 13.21% 14.01% 340415 296841 8.02% 7.41% Property & equipment, net Goodwill Intangible assets, net Deferred income taxes 826868 885774 19.48% 22.11% 546494 555674 12.87% 13.87% 41793 46995 0.98% 1.17% 112420 82801 2.65% 2.07% Other long term assets 123819 97444 2.92% 2.43% Total assets 4245022 400636 100% 100% Revolving credit facility, current Accounts payable Accrued expenses Customer refund liability Current maturities of long term debt 125000 3.12% 560884 561108 13.21% 14.01% 340415 296841 8.02% 7.41% 301421 7.10% 25000 27000 0.59% 0.67% Other current liabilities 88257 50426 2.08% 1.26% Total current liabilities Long term debt, net of current maturities Revolving credit facility, long term Other long term liabilities Total liabilities 1315977 1060375 31.00% 26.47% 703834 765046 16.58% 19.10% 208340 162304 4.91% 4.05% 2228151 1987725 52.49% 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 62 61 0.00% 0.00% 11 11 0.00% 0.00% 75 74 0.00% 0.00% 916628 872266 21.59% 21.77% 1139082 1184441 26.83% 29.56% -38987 -38211 -0.92% -0.95% 2016871 2018642 47.51% 50.39% 4245022 4006367 100.00% 100.00% 4. Analyze your company's capital structure. At a minimum you should: Provide a statement about the company's capital structure and any changes you would recommend making. This should include: i. 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. a. 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. Under Armour Income and Balance Sheet for 2017 and 2018 4. Income Statement (in thousands) Year Ended December 31 common stock iclou 6 2018 2017 2018 2017 Net revenues $5,193,185.00 $4,989,244.00 100.00% 100.00% Devic $2,852,714.00 $2,737,830.00 $2,340,471.00 $2,251,414.00 Cost of Goods Sold 54.93% 54.87% Gross profit 45.07% 45.13% $2,182,339.00 $2,099,522.00 $ 183,149.00 $ 124,049.00 $ (25,017.00)S $ (33,568.00)S 10 Selling, General and Admin Expenses Restructuring and impairment charges 42.02% 42.08% Tags 11 12 3.53% 2.49% Income from Operations 27,843.00 0.48% 0.56% 13 Interest Expense, net Other expense, net (34,538.00) -0.65% -0.69% O 14 (9,203.00) $ (67,788.00) $ (20,552.00) $ (3,614.00) (10,309.00) -0.18% -0.07% 15 Income before Income Taxes -1.31% -0.21% 16 Income tax expense (benefit) 37,951.00 -0.40% 0.76% 17 Income from equity method investment 934.00 0.02% 18 Net income (loss) $ (46,302.00) $ (48,260.00) 0.89% -0.97% 19 20 21 Asset Management (Turnover Ratios) 22 2018 2017 23 Inventory Turnover 24 Payables Turnover - COGS/Accounts Payable -COGS/Inventory 2.80 2.36 Times 5.09 4.88 Times 25 26 27 PROFITABILITY MEASURES 28 2018 2017 29 Profit Margin= Net Income/Sales 30 Return on Assets = Net Income/Total Assets 31 Return on Equity Net Income/Total Equity 0.89% 0.97% -1.79% -2.06% -2.30% -2.39% 32 33 34 Provide a statement about the Company's Captial structure and any changes you would recommend. 35 36 37 Under Armour Common size Ratio Year end December 31 2018 Common Stock As Reported Annual Balance Sheet Report Date Currency 2017 2018 2017 USD USD Not Available Yes Not Qualified Yes Audit Status Consolidated Scale Thousands Thousands 312483 13.13% 7.80% Cash & cash equivalents Accounts receivable, gross Less: allowance for doubtful accounts Accounts receivable, net 557403 674746 629370 15.89% 15.71% 22200 19700 0.52% 0.49% 652546 609670 15.37% 15.22% Inventories 1019496 1158548 24.02% 28.92% 8.58% 6.41% Prepald expenses & other current assets Deferred income taxes 364183 256978 Total current assets 2593628 2337679 61.10% 58.35% Leasehold & tenant improvements Furniture, fixtures & displays Buildings Software Office equipment Accumulated depreciation Property & equipment, net 446330 431761 10.51% 10.78% 218930 204926 5.16% 5.12% 48230 47625 1.14% 1.19% 286014 232660 6.74% 5.81% 121202 98802 2.86% 2.47% 655595 526984 15.44% 13.15% 826868 885774 19.48% 22.11% Goodwill 546494 555674 12.87% 13.87% Intangible assets, net 41793 0.98% 1.17% 46995 Deferred income taxes 112420 82801 2.65% 2.07% Other long term assets 123819 97444 2.92% 2.43% Total assets 4245022 4006367 100% 100% Revolving credit facility, current Accounts payable Accrued expenses 125000 3.12% 560884 561108 13.21% 14.01% 340415 296841 8.02% 7.41% Property & equipment, net Goodwill Intangible assets, net Deferred income taxes 826868 885774 19.48% 22.11% 546494 555674 12.87% 13.87% 41793 46995 0.98% 1.17% 112420 82801 2.65% 2.07% Other long term assets 123819 97444 2.92% 2.43% Total assets 4245022 400636 100% 100% Revolving credit facility, current Accounts payable Accrued expenses Customer refund liability Current maturities of long term debt 125000 3.12% 560884 561108 13.21% 14.01% 340415 296841 8.02% 7.41% 301421 7.10% 25000 27000 0.59% 0.67% Other current liabilities 88257 50426 2.08% 1.26% Total current liabilities Long term debt, net of current maturities Revolving credit facility, long term Other long term liabilities Total liabilities 1315977 1060375 31.00% 26.47% 703834 765046 16.58% 19.10% 208340 162304 4.91% 4.05% 2228151 1987725 52.49% 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 62 61 0.00% 0.00% 11 11 0.00% 0.00% 75 74 0.00% 0.00% 916628 872266 21.59% 21.77% 1139082 1184441 26.83% 29.56% -38987 -38211 -0.92% -0.95% 2016871 2018642 47.51% 50.39% 4245022 4006367 100.00% 100.00% 4. Analyze your company's capital structure. At a minimum you should: Provide a statement about the company's capital structure and any changes you would recommend making. This should include: i. 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. a. 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