Financial Analysisby

Jacob PiferLDR 640 AC

Under Armour

Under Armour

Founded in 1996 in the Basement of a Georgetown Home

Now based in Baltimore, Maryland

Offices throughout the worldToronto, Japan, China and Amsterdam

Employs over 2,000 workers worldwide

Owns over 70% of Performance Apparel Market

Under ArmourGoverning 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

Competition

Under ArmourHorizontal 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 ArmourBalance 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 ArmourBalance 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 ArmourLiquidity Ratios

Industry AvgCurrent Ratio: 3.7x 3.5x

Quick Ratio: 2.2x 1.1x

Asset Management RatiosIndustry Avg

Days Sales Outstanding: 34.2 43

Total Asset Turnover 1.66x 1.7x

Under Armour

DEBT MANAGEMENT RATIOS

Debt Ratio: 27% Industry Average

TIE Ratio: 36.1 Industry Average: 2.2

Book Value Per Share

PROFITABILITY RATIOS

Profit Margin: 5.4%

ROA: 9%

ROE: 12.8%

$7.96

Under ArmourConclusion

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 apparellines in these other markets, they will become a very successful company.

Under ArmourReferences:

•Business Week. http://investing.businessweek.com/research/stocks/financials/ratios.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

Under ArmourThank You