Financial Analysis by Jacob Pifer LDR 640 AC 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 Competition

Under Armour Horizontal Analysis (in thousands) 2009 2008 2007 Revenues $856,411 $725,244 $606,561 118% 119% 100% Cost of goods sold $443,386 $370,296 $301,217 123% Gross Profit $413,025 $354,948 $305,044 116% Selling Expense $327,752 $278,023 218,779 127% Income Operations $85,273 $76,925 $86,265 111% 89% Interest inc (exp) ($2,344) $(850) $749 -275% -113% Other Inc (Exp) ($511) ($6,175) $2029 1235% -304% Income before tax $82,418 $69,900 $89,043 78% Taxes $35,633 $31,671 $36,485 Net Income $46,785 $38,229 $52,558 122% 72%

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 $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

Asset Management Ratios Under Armour Liquidity Ratios Industry Avg Current Ratio: 3.7x 3.5x Quick Ratio: 2.2x 1.1x Asset Management Ratios Days Sales Outstanding: 34.2 43 Total Asset Turnover 1.66x 1.7x

Under Armour Debt Management Ratios Profitability Ratios Debt Ratio: 27% Industry Average TIE Ratio: 36.1 Industry Average: 2.2 Book Value Per Share Profit Margin: 5.4% ROA: 9% ROE: 12.8% $7.96

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/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 Armour Thank You