Monday, February 22, 2016

Under Armour : Expects to Distribute Class C Shares

Cash and Cash Equivalents declined from $593 million to $129 million from FY2014 to FY2015, a 78% decline.

Under Armour disclosed today it found an accounting error 2015 filings.
"The Company identified a prior period error in the classification of available-for-sale securities (“AFS”) for the first and second quarters of 2015. The Company concluded that the error was not material to any of its previously issued financial statements. The Company included purchases and sales of AFS for the first six months of 2015 of $41.5 million and $19.4 million, respectively, in its cash flows from investing activities for the six months ended June 30, 2015. Additionally, the Company intends to revise the affected periods when they are presented on a comparable basis to reflect the correct accounting. The revision will result in a reclassification from "Cash and cash equivalents" to "Prepaid expenses and other current assets" on the 2015 first and second quarter balance sheets of $7.1 million and $22.1 million, respectively. Correspondingly, the revision will result in the presentation of purchases and sales of AFS for the three months ended March 31, 2015 of $10.4 million and $3.3 million,respectively, in addition to the six months 2015 cash flow activities described above."

"400,000,000 Class C shares authorized as of December 31,2015."

"if the shares of our new class of non-voting Class C common stock are distributed as expected, the trading price of that class may experience volatility and may impact the trading price for our Class A common stock."

CEO ready to Sell Class C shares 

"The trading plan further provides for the sale of up to 1,350,000 shares of the Issuer’s Class C Common Stock held by the Reporting Person personally and up to 150,000 shares of the Issuer’s Class C Common Stock held by his charitable foundation.  Any sales of Class C Common Stock under the trading plan will begin only following the initial distribution of one share of the Class C Common Stock for each outstanding share of Class A and Class B Common Stock (the “Initial Class C Issuance”) and the listing of the Class C Common Stock on the New York Stock Exchange.  Sales of the Class C Common Stock may extend through August 2016."


SPORTS AUTHORITY BANKRUPTCY  "Subsequent to December 31, 2015, we became aware of the deteriorating financial condition of one of our wholesale customers, The Sports Authority. Our recorded reserve as of year-end materially reflects our best estimate, based on currently available information, of the ultimate recoverability of amounts due from this customer at December 31, 2015.As of December 31, 2015, the amount of this receivable totaled $32.5 million.  However, we do not currently believe that the exposure to our receivables as of December 31, 2015 is materially impacted by the developments related to The Sports Authority"

FY2015 10K filed this morning

NEGATIVE OPERATIONAL CASH FLOW (click to enlarge)



Equities Research WARNING @ $85.50 
(6 Days later shares traded at $70 )

Sunday, January 31, 2016


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