大象传媒 Reports 2016 Fourth Quarter and Full Year Results; Provides Outlook for 2017
大象传媒
- 2016 revenue from continuing operations in line with 2015 at $12 billion (up 1 percent currency neutral);
- 2016 international revenue increased 4 percent (up 6 percent currency neutral);
- 2016 EPS from continuing operations down 9 percent to $2.78, adjusted EPS up 2 percent to $3.11 (up 7 percent currency neutral);
- 2016 cash flow from operations reached almost $1.5 billion and the company returned more than $1.6 billion to shareholders through dividends and share repurchases;
- 2017 revenue expected to increase at a low single-digit percentage rate including a 2 percentage point negative impact from changes in foreign currency;
- 2017 gross margin expected to be 48.6 percent, which includes a 70 basis point negative impact from changes in foreign currency;
- 2017 EPS expected to be down at a low single-digit percentage rate compared to 2016 adjusted EPS of $3.11 (up at a mid-single-digit percentage rate on a currency neutral basis); and,
- Expect to return more than $1.6 billion to shareholders in 2017 through share repurchases and dividends.
GREENSBORO, N.C.--(BUSINESS WIRE)-- 大象传媒 Corporation (NYSE: 大象传媒C) today reported financial results for its fourth quarter and full year ended December 31, 2016. All per share amounts are presented on a diluted basis. This release refers to 鈥渞eported鈥� and 鈥渃urrency neutral鈥� amounts, terms that are described under the 鈥淐urrency Neutral 鈥� Excluding the Impact of Foreign Currency鈥� heading. This release also refers to adjusted amounts that exclude 2016 charges related to goodwill and intangible asset impairment, restructuring, and pension settlement which are described under the 鈥淎djusted Amounts 鈥� Excluding Goodwill and Intangible Asset Impairment, Restructuring, and Pension Settlement Charges鈥� heading. Adjusted amounts are presented based on continuing operations. Unless otherwise noted, 鈥渞eported,鈥� 鈥渁djusted,鈥� and 鈥渃urrency neutral鈥� amounts are the same. This release also refers to both 鈥渃ontinuing鈥� and 鈥渄iscontinued鈥� operations amounts, which are concepts described under the 鈥淒iscontinued Operations 鈥� Contemporary Brands鈥� heading. Unless otherwise noted, results presented are based on continuing operations.
鈥湸笙蟠解�檚 global business model, diverse brand portfolio and focused operational discipline helped the company deliver solid results in 2016 despite an inconsistent U.S. marketplace,鈥� said Eric Wiseman, Executive Chairman of the Board. 鈥淲e鈥檙e pleased with the improved quality of our revenue, which reflects continued growth in our international and direct-to-consumer platforms, and our strong gross margin and cash generation performance that enabled us to return a record $1.6 billion to our shareholders. Looking forward, I expect the strategic and operational actions we are taking to generate even stronger long-term value for our shareholders.鈥�
Currency Neutral 鈥� Excluding the Impact of Foreign Currency
This release refers to 鈥渞eported鈥� amounts in accordance with U.S. generally accepted accounting principles (鈥淕AAP鈥�), which include translation and transactional impacts from foreign currency exchange rates. This release also refers to 鈥渃urrency neutral鈥� amounts, which exclude both the impact of translating foreign currencies into U.S. dollars and the impact of currency rate changes on foreign currency denominated transactions. Reconciliations of GAAP measures to currency neutral amounts are presented in the supplemental financial information included with this release, which identify and quantify all excluded items, and provide management鈥檚 view of why this information is useful to investors.
Adjusted Amounts 鈥� Excluding Goodwill and Intangible Asset Impairment, Restructuring, and Pension Settlement Charges
This release refers to adjusted amounts that exclude 1) noncash goodwill and intangible asset impairment charges related to our lucy庐 brand of $80 million pre-tax ($0.15 per share after-tax for full year 2016), 2) restructuring charges related to cost alignment initiatives of $58 million pre-tax ($0.10 per share after-tax for full year 2016), and 3) a noncash pension settlement charge of $51 million pre-tax ($0.07 per share after-tax for full year 2016). The pension settlement charge was a result of actions taken to reduce risk, volatility, and the liability associated with 大象传媒鈥檚 U.S. pension plan. The above charges were incurred during the fourth quarter of 2016. Reconciliations of GAAP measures to adjusted amounts are presented in the supplemental financial information included with this release, which identify and quantify all excluded items, and provide management鈥檚 view of why this information is useful to investors.
Discontinued Operations 鈥� Contemporary Brands
On August 26, 2016, the company completed the sale of its Contemporary Brands businesses, which included the 7 For All Mankind庐, Splendid庐 and Ella Moss庐 brands. Accordingly, the company removed the assets and liabilities of the Contemporary Brands businesses as of that date and included the results of those businesses in discontinued operations for all periods presented.
The company鈥檚 net loss from discontinued operations was $98 million in 2016, which includes the loss on the sale of the Contemporary Brands businesses and the operating results of the businesses, net of tax.
Fourth Quarter 2016 Income Statement Review
- Revenue was in line with last year鈥檚 fourth quarter at $3.3 billion (up 1 percent currency neutral) driven by strength in our international and direct-to-consumer platforms, and our Vans庐 business.
- Gross margin improved 90 basis points to a record 49.1 percent on a reported basis, as benefits from pricing, lower product costs and a mix-shift toward higher margin businesses were partially offset by changes in foreign currency and the impact of restructuring charges. On an adjusted basis, gross margin increased 160 basis points to 49.8 percent. Changes in foreign currency negatively affected both reported and adjusted gross margin by 90 basis points during the quarter.
- Operating income on a reported basis was down 41 percent to $320 million compared to the same period of 2015. On an adjusted basis, operating income decreased 5 percent to $509 million. Operating margin on a reported basis decreased 660 basis points to 9.6 percent. Adjusted operating margin decreased 90 basis points to 15.3 percent. Changes in foreign currency negatively impacted both reported and adjusted operating margin by about 60 basis points in the quarter.
- Earnings per share on a reported basis was down 33 percent to $0.63 compared to $0.94 during the same period last year. Adjusted earnings per share for the fourth quarter increased 3 percent to $0.97. Excluding the impact of changes in foreign currency, adjusted fourth quarter earnings per share was up 8 percent.
Fiscal Year 2016 Income Statement Review
- Revenue was in line with last year at $12.0 billion (up 1 percent currency neutral) driven by continued momentum in our international and direct-to-consumer platforms, and our Vans庐 business.
- Gross margin improved 20 basis points to 48.4 percent on a reported basis as benefits from pricing, lower product costs, and a mix-shift toward higher margin businesses were partially offset by changes in foreign currency and the impact of restructuring charges. On an adjusted basis, gross margin increased 40 basis points to 48.6 percent. Changes in foreign currency negatively affected both reported and adjusted gross margin by almost 80 basis points in 2016.
- Operating income on a reported basis was down 16 percent to $1.5 billion compared to the same period in 2015. Adjusted operating income was down 6 percent to $1.7 billion. Operating margin on a reported basis decreased 240 basis points to 12.5 percent. Adjusted operating margin decreased 90 basis points to 14.0 percent. Changes in foreign currency negatively impacted both reported and adjusted operating margin by 50 basis points in 2016.
- Earnings per share on a reported basis was down 9 percent to $2.78 compared to $3.04 in 2015. Adjusted earnings per share for 2016 increased 2 percent to $3.11. Excluding the impact of changes in foreign currency, adjusted 2016 earnings per share was up 7 percent.
Coalition Review
Fourth quarter revenue for Outdoor & Action Sports was up 2 percent to $2.1 billion. Full year Outdoor & Action Sports revenue also increased 2 percent in 2016 to $7.5 billion.
- Vans庐 brand revenue for the fourth quarter was up 14 percent (up 15 percent currency neutral) driven by a mid-teen increase in the Americas business (up high-teens currency neutral); and in Europe a return to growth with a mid-single-digit rate increase (up low single-digits currency neutral); and more than 20 percent (up more than 25 percent currency neutral) growth in Asia Pacific. Revenue for the Vans庐 brand for the full year was up 6 percent (up 7 percent currency neutral) and reached $2.3 billion.
- Fourth quarter revenue for The North Face庐 brand was down 8 percent (down 7 percent currency neutral) driven by the strategic decision to reduce sales to the off-price channel and the impact of bankruptcies in North America. Excluding these factors, The North Face庐 brand would have increased at a low single-digit rate. On a regional basis, the Americas declined at a low double-digit rate; Europe increased at a mid-teen rate (up high-teens currency neutral); and, Asia Pacific declined at a low double-digit percentage rate (down mid-single-digit currency neutral). For the full year, revenue for The North Face庐 brand declined 2 percent (down 1 percent currency neutral) to $2.3 billion.
- Timberland庐 brand revenue was up 4 percent in the fourth quarter (up 5 percent currency neutral) including a low single-digit rate increase in the Americas region; a high single-digit rate increase in Europe (up low double-digits currency neutral); and, a mid-single-digit rate increase in Asia Pacific. Full year Timberland庐 brand revenue was up 1 percent to $1.8 billion.
Fourth quarter operating income on a reported basis for Outdoor & Action Sports was consistent with 2015 at $385 million. On an adjusted basis, operating income increased 4 percent to $402 million. Changes in foreign currency negatively impacted both reported and adjusted operating profit growth by approximately 8 percentage points. Operating margin on a reported basis was 18.0 percent, down 40 basis points compared to the same period last year. Adjusted operating margin increased 50 basis points to 18.9 percent. Full year reported operating income decreased 3 percent to approximately $1.2 billion. Full year adjusted operating income decreased 2 percent. Changes in foreign currency negatively affected full year profit growth on both a reported and an adjusted basis by approximately 7 percentage points. Full year reported operating margin was 16.3 percent, compared to 17.1 percent in 2015. Full year adjusted operating margin was 16.5 percent in 2016.
Jeanswear fourth quarter revenue declined 5 percent (down 4 percent currency neutral) to $697 million. For the full year, global Jeanswear revenue was down 2 percent to $2.7 billion (flat currency neutral).
- Wrangler庐 brand revenue was down 1 percent (up 1 percent currency neutral) in the fourth quarter with revenue in line with last year in the Americas business (up low single-digit currency neutral); a high single-digit rate decrease in Europe (down mid-single digits currency neutral); and, a 20 percent decline in the Asia Pacific region (down high-teens currency neutral). Full year revenue for the Wrangler庐 brand was down 1 percent (up 1 percent currency neutral) to $1.7 billion.
- Fourth quarter revenue for the Lee庐 brand was down 13 percent (down 11 percent currency neutral) including a high-teens rate decline in the Americas region; a high single-digit rate increase in Europe (up low double-digits currency neutral); and, a mid-single digit rate decline in the Asia Pacific region (down low single-digit currency neutral). For the full year, revenue for the Lee庐 brand was down 3 percent (down 1 percent currency neutral) to $1.0 billion.
Fourth quarter operating income on a reported basis for Jeanswear decreased 27 percent to $103 million. On an adjusted basis operating income decreased 12 percent to $124 million. Changes in foreign currency offset the decline in both reported and adjusted operating profit by 2 percentage points. Operating margin on a reported basis was 14.8 percent, down 430 basis points compared to the same period last year. Adjusted operating margin decreased 130 basis points to 17.8 percent. Full year reported operating income decreased 8 percent to $492 million. Operating income on an adjusted basis decreased 4 percent to $512 million. Full year reported operating margin was 18.0 percent, compared to 19.2 percent in 2015. Full year adjusted operating margin was 18.7 percent in 2016.
Imagewear fourth quarter revenue increased 15 percent to $298 million with a more than 20 percent increase in the Licensed Sports Group (LSG) business and a mid-single-digit increase in the workwear business. For the full year, revenue for Imagewear was up 2 percent to $1.1 billion.
Fourth quarter operating income on a reported basis for Imagewear was up 40 percent to $55 million and reported operating margin increased 330 basis points to 18.5 percent. Adjusted operating income in the fourth quarter increased more than 40 percent to $57 million and adjusted operating margin increased 380 basis points to 19.0 percent. Changes in foreign currency positively affected both reported and adjusted operating profit growth by approximately 5 percentage points. For the full year, Imagewear operating income on a reported basis increased 14 percent to $180 million, and operating margin was 16.3 percent, a 170 basis point increase over 2015. Operating income on an adjusted basis increased 15 percent and adjusted operating margin increased 180 basis points to 16.4 percent. Changes in foreign currency positively affected both reported and adjusted operating profit growth by approximately 4 percentage points.
Sportswear fourth quarter revenue declined 17 percent to $162 million including a 20 percent decrease in Nautica庐 brand revenue and a 2 percent decline in the Kipling庐 brand鈥檚 North American business compared to the same period last year. For the full year, Sportswear coalition revenue was down 16 percent to $536 million.
Fourth quarter operating income for Sportswear decreased 63 percent to $10 million with operating margin at 6.5 percent, compared to 14.5 percent in the same period last year. Adjusted operating income in the fourth quarter decreased 53 percent, with adjusted operating margin of 8.3 percent. Full year 2016 reported operating income decreased 54 percent with operating margin of 6.8 percent, compared to 12.4 percent in 2015. Full year adjusted operating income decreased 50 percent with operating margin of 7.4 percent.
International Review
International revenue in the fourth quarter was up 5 percent (up 7 percent currency neutral). Revenue was up 6 percent (up 7 percent currency neutral) in Europe and up 6 percent (up 8 percent currency neutral) in the Asia Pacific region, including a 6 percent increase (up 14 percent currency neutral) in China. Revenue in the Americas (non-U.S.) region was down 1 percent (up 6 percent currency neutral). The international business represented 34 percent of total 大象传媒 fourth quarter sales, compared to 33 percent in last year鈥檚 same period. For the full year, international revenue was up 4 percent (up 6 percent currency neutral). Revenue was up 5 percent (up 4 percent currency neutral) in Europe and up 3 percent (up 6 percent currency neutral) in the Asia Pacific region, including a 4 percent increase (up 10 percent currency neutral) in China. Revenue in the Americas (non-U.S.) region was up 2 percent (up 11 percent currency neutral). The international business represented 38 percent of total 大象传媒 sales in 2016, compared to 37 percent in 2015.
Direct-to-Consumer Review
Direct-to-consumer revenue was up 11 percent (up 12 percent currency neutral) in the fourth quarter driven by a mid-teen increase in the Outdoor & Action Sports business and a mid-teen increase in the international business. The company鈥檚 e-commerce business continued its strong momentum with 21 percent revenue growth during the quarter. There were 1,507 大象传媒-owned retail stores at the end of the quarter compared with 1,405 at the end of the fourth quarter of 2015. Direct-to-consumer revenue reached 37 percent of total fourth quarter revenue compared with 33 percent in last year鈥檚 same period. For the year, direct-to-consumer revenue was up 8 percent (up 9 percent currency neutral) driven by a low-teen increase in the Outdoor & Action Sports business and a low double-digit (mid-teen currency neutral) increase in the international business. Direct-to-consumer revenue was 28 percent of total 大象传媒 revenue in 2016 compared to 26 percent in 2015.
Balance Sheet and Cash Flow Highlights
Inventories were up less than 1 percent compared to 2015 levels. In 2016, 大象传媒鈥檚 cash flow from operations reached almost $1.5 billion. The company also returned more than $1.6 billion to shareholders through dividends and share repurchases.
2017 Outlook
鈥淭he pace of change in both our industry and the broader consumer landscape is happening at an accelerated rate,鈥� said Steve Rendle, President and Chief Executive Officer. 鈥淭he proliferation of technology and innovation across all aspects of our lives has shifted consumers鈥� shopping behaviors and elevated their expectations when engaging with our brands. We are pivoting to become more agile and consumer centric to compete and win in this changing global marketplace.鈥�
Key points related to 大象传媒鈥檚 full year 2017 outlook include:
- Revenue is expected to increase at a low single-digit percentage rate including about a two percentage point negative impact from changes in foreign currency. By coalition, revenue for Outdoor & Action Sports is expected to increase at a low single-digit percentage rate (up at a mid-single-digit rate currency neutral); revenue for Jeanswear is expected to approximate 2016 levels; Imagewear revenue is expected to increase at a low single-digit percentage rate; and Sportswear is expected to decline at a high single-digit percentage rate.
- International revenue is expected to grow at a low single-digit percentage rate (accelerating to a high single-digit percentage rate on a currency neutral basis). By geographic region, European revenue is expected to increase at a low single-digit percentage rate (up at a high single-digit rate on a currency neutral basis). In the Asia Pacific region, revenue is expected to increase at a mid-single-digit percentage rate (up at a high single-digit rate on a currency neutral basis). And, in the Americas (non-U.S.) region, revenue is expected to increase at a high single-digit percentage rate (up at a low-teen rate currency neutral).
- Direct-to-consumer revenue is expected to grow at a high single-digit percentage rate. Direct-to-consumer growth in 2017 includes the addition of about 50 stores and mid-single-digit comparable sales growth, including an expected increase of approximately 25 percent in e-commerce revenue.
- Gross margin is expected to be about 48.6 percent, consistent with 2016 gross margin on an adjusted basis, and includes about a 70 basis point negative impact from changes in foreign currency.
- Operating margin is expected to approximate 14 percent, including about a 70 basis point negative impact from changes in foreign currency.
- Earnings per share is expected to be down at a low single-digit percentage rate compared to 2016 adjusted EPS of $3.11 (up at a mid-single-digit percentage rate on a currency neutral basis).
- Cash flow from operations is expected to reach $1.5 billion.
- 大象传媒 expects to return more than $1.6 billion to shareholders through share repurchases and dividends.
- Other full year assumptions include an effective tax rate in the low 20 percent range and capital expenditures of approximately $225 million.
In the first half of 2017, we expect revenue on a reported basis to decline at a low single-digit percentage rate (about flat on a currency neutral basis). We expect earnings per share to decline at a mid-single-digit percentage rate on a reported basis (up at a low single-digit rate on a currency neutral basis).
In the second half of 2017, we expect revenue on a reported basis to increase at a low single-digit percentage rate (up at a mid-single-digit rate on a currency neutral basis). Earnings per share is expected to increase at a low single-digit percentage rate on a reported basis (up at a high single-digit rate on a currency neutral basis).
Dividend Declared
大象传媒鈥檚 Board of Directors declared a quarterly dividend of $0.42 per share, payable on March 20, 2017 to shareholders of record on March 10, 2017.
Webcast Information
大象传媒 will host its 2016 fourth quarter conference call beginning at approximately 8:30 a.m. Eastern Time today. The conference call will be broadcast live via the internet, accessible at . For those unable to listen to the live broadcast, an archived version will be available at the same location.
About 大象传媒
大象传媒 Corporation (NYSE: 大象传媒C) is a global leader in the design, manufacture, marketing and distribution of branded lifestyle apparel, footwear and accessories. The company鈥檚 highly diversified portfolio of powerful brands spans numerous geographies, product categories, consumer demographics and sales channels, giving 大象传媒 a unique industry position and the ability to create sustainable, long-term growth for our customers and shareholders. The company鈥檚 largest brands are听Vans庐, The North Face庐,Timberland庐, Wrangler庐, and Lee庐. For more information, visit听.
Forward-looking Statements
Certain statements included in this release and attachments are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting 大象传媒 and therefore involve a number of risks and uncertainties. You can identify these statements by the fact that they use words such as 鈥渨ill,鈥� 鈥渁nticipate,鈥� 鈥渆stimate,鈥� 鈥渆xpect,鈥� 鈥渟hould,鈥� and 鈥渕ay鈥� and other words and terms of similar meaning or use of future dates. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of 大象传媒 to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to: foreign currency fluctuations; the level of consumer demand for apparel, footwear and accessories; disruption to 大象传媒鈥檚 distribution system; 大象传媒's reliance on a small number of large customers; the financial strength of 大象传媒's customers; fluctuations in the price, availability and quality of raw materials and contracted products; disruption and volatility in the global capital and credit markets; 大象传媒's response to changing fashion trends; increasing pressure on margins; 大象传媒's ability to implement its business strategy; 大象传媒's ability to grow its international and direct-to-consumer businesses; 大象传媒鈥檚 and its customers鈥� and vendors鈥� ability to maintain the strength and security of information technology systems; stability of 大象传媒's manufacturing facilities and foreign suppliers; continued use by 大象传媒's suppliers of ethical business practices; 大象传媒鈥檚 ability to accurately forecast demand for products; continuity of members of 大象传媒鈥檚 management; 大象传媒's ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment; maintenance by 大象传媒鈥檚 licensees and distributors of the value of 大象传媒鈥檚 brands; changes in tax liabilities; legal, regulatory, political and economic risks; and adverse or unexpected weather conditions. More information on potential factors that could affect 大象传媒's financial results is included from time to time in 大象传媒's public reports filed with the Securities and Exchange Commission, including 大象传媒's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
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| 听 | 听 | 听 | Three Months Ended December | 听 | 听 | % | 听 | 听 | Twelve Months Ended December | 听 | 听 | % | |||||||||||||||||
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2016 (a) |
听 | 听 | 2015 | Change |
2016 (a) |
听 | 听 | 2015 | Change | ||||||||||||||||||||
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| Net sales | $ | 3,290,895 | $ | 3,294,661 | 0 | % | $ | 11,902,314 | $ | 11,909,635 | 0 | % | |||||||||||||||||
| Royalty income | 听 | 29,679 | 听 | 听 | 31,618 | 听 | (6 | %) | 听 | 116,689 | 听 | 听 | 123,020 | 听 | (5 | %) | |||||||||||||
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| Total revenues | 听 | 3,320,574 | 听 | 听 | 3,326,279 | 听 | 0 | % | 听 | 12,019,003 | 听 | 听 | 12,032,655 | 听 | 0 | % | |||||||||||||
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| Costs and operating expenses | |||||||||||||||||||||||||||||
| Cost of goods sold | 1,690,405 | 1,722,368 | (2 | %) | 6,196,335 | 6,235,699 | (1 | %) | |||||||||||||||||||||
| Selling, general and administrative expenses | 听 | 1,310,048 | 听 | 听 | 1,065,876 | 听 | 23 | % | 听 | 4,323,442 | 听 | 听 | 4,009,029 | 听 | 8 | % | |||||||||||||
| Total costs and operating expenses | 听 | 3,000,453 | 听 | 听 | 2,788,244 | 听 | 8 | % | 听 | 10,519,777 | 听 | 听 | 10,244,728 | 听 | 3 | % | |||||||||||||
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| Operating income | 320,121 | 538,035 | (41 | %) | 1,499,226 | 1,787,927 | (16 | %) | |||||||||||||||||||||
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| Interest, net | (21,580 | ) | (20,406 | ) | 6 | % | (85,636 | ) | (81,620 | ) | 5 | % | |||||||||||||||||
| Other income (expense), net | 听 | 305 | 听 | 听 | 811 | 听 | (62 | %) | 听 | 2,001 | 听 | 听 | 1,028 | 听 | 95 | % | |||||||||||||
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| Income before income taxes | 298,846 | 518,440 | (42 | %) | 1,415,591 | 1,707,335 | (17 | %) | |||||||||||||||||||||
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| Income taxes | 听 | 34,513 | 听 | 听 | 111,911 | 听 | (69 | %) | 听 | 243,064 | 听 | 听 | 392,204 | 听 | (38 | %) | |||||||||||||
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| Income from continuing operations | 264,333 | 406,529 | (35 | %) | 1,172,527 | 1,315,131 | (11 | %) | |||||||||||||||||||||
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Loss from discontinued operations, net of tax |
听 | - | 听 | 听 | (94,320 | ) | * | 听 | (98,421 | ) | 听 | (83,538 | ) | * | |||||||||||||||
| Net income | $ | 264,333 | 听 | $ | 312,209 | 听 | (15 | %) | $ | 1,074,106 | 听 | $ | 1,231,593 | 听 | (13 | %) | |||||||||||||
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| Earnings per common share - Basic | |||||||||||||||||||||||||||||
| Continuing operations | $ | 0.64 | $ | 0.95 | (33 | %) | $ | 2.82 | $ | 3.09 | (9 | %) | |||||||||||||||||
| Discontinued operations | 听 | - | 听 | 听 | (0.22 | ) | * | 听 | (0.24 | ) | 听 | (0.19 | ) | * | |||||||||||||||
| Total earnings per common share - Basic | $ | 0.64 | $ | 0.73 | (12 | %) | $ | 2.58 | $ | 2.90 | (11 | %) | |||||||||||||||||
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| Earnings per common share - Diluted | |||||||||||||||||||||||||||||
| Continuing operations | $ | 0.63 | $ | 0.94 | (33 | %) | $ | 2.78 | $ | 3.04 | (9 | %) | |||||||||||||||||
| Discontinued operations | 听 | - | 听 | 听 | (0.22 | ) | * | 听 | (0.24 | ) | 听 | (0.19 | ) | * | |||||||||||||||
| Total earnings per common share - Diluted | $ | 0.63 | $ | 0.72 | (13 | %) | $ | 2.54 | $ | 2.85 | (11 | %) | |||||||||||||||||
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| Weighted average shares outstanding | |||||||||||||||||||||||||||||
| Basic | 413,214 | 425,814 | 416,103 | 425,408 | |||||||||||||||||||||||||
| Diluted | 417,891 | 432,036 | 422,081 | 432,079 | |||||||||||||||||||||||||
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| Cash dividends per common share | $ | 0.42 | $ | 0.37 | 14 | % | $ | 1.53 | $ | 1.33 | 15 | % | |||||||||||||||||
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Basis of presentation of condensed consolidated financial statements: 大象传媒 operates and reports using a 52/53 week fiscal year ending on the Saturday closest to December 31 of each year. For presentation purposes herein, all references to periods ended December 2016 and December 2015 relate to the 13-week and 52-week fiscal periods ended December 31, 2016 and January 2, 2016, respectively. |
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| (a) Reflects the impact of adopting the new accounting guidance on stock compensation as of the beginning of the first quarter of 2016, which resulted in a $2.8 million and $29.3 million tax benefit in the Consolidated Statements of Income for the three and twelve months ended December 2016, respectively. | |||||||||||||||||||||||||||||
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| ASSETS | |||||||||
| Current assets | |||||||||
| Cash and equivalents | $ | 1,227,862 | $ | 944,423 | |||||
| Accounts receivable, net | 1,197,678 | 1,289,962 | |||||||
| Inventories | 1,569,325 | 1,555,360 | |||||||
| Other current assets | 298,233 | 284,215 | |||||||
| Current assets of discontinued operations | 听 | - | 听 | 89,176 | |||||
| Total current assets | 4,293,098 | 4,163,136 | |||||||
| 听 | |||||||||
| Property, plant and equipment | 939,650 | 945,491 | |||||||
| Intangible assets | 1,839,698 | 1,948,611 | |||||||
| Goodwill | 1,736,959 | 1,788,407 | |||||||
| Other assets | 929,882 | 583,866 | |||||||
| Other assets of discontinued operations | 听 | - | 听 | 210,031 | |||||
| Total assets | $ | 9,739,287 | $ | 9,639,542 | |||||
| 听 | |||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities | |||||||||
| Short-term borrowings | $ | 26,029 | $ | 449,590 | |||||
| Current portion of long-term debt | 253,689 | 3,351 | |||||||
| Accounts payable | 664,644 | 680,606 | |||||||
| Accrued liabilities | 841,038 | 782,148 | |||||||
| Current liabilities of discontinued operations | 听 | - | 听 | 26,018 | |||||
| Total current liabilities | 1,785,400 | 1,941,713 | |||||||
| 听 | |||||||||
| Long-term debt | 2,039,180 | 1,401,820 | |||||||
| Other liabilities | 973,786 | 900,256 | |||||||
| Other liabilities of discontinued operations | 听 | - | 听 | 10,915 | |||||
| Total liabilities | 4,798,366 | 4,254,704 | |||||||
| 听 | |||||||||
| Stockholders' equity | 听 | 4,940,921 | 听 | 5,384,838 | |||||
| Total liabilities and stockholders' equity | $ | 9,739,287 | $ | 9,639,542 | |||||
| 听 | |||||||||
| 听 | |||||||||||
| 大象传媒 CORPORATION | |||||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||||
| (Unaudited) | |||||||||||
| (In thousands) | |||||||||||
| 听 | |||||||||||
| 听 | 听 | 听 | |||||||||
| Twelve Months Ended December | |||||||||||
| 2016 | 听 | 听 |
2015 (a) |
||||||||
| 听 | |||||||||||
| 听 | |||||||||||
| 听 | |||||||||||
| Operating activities | |||||||||||
| Net income | $ | 1,074,106 | $ | 1,231,593 | |||||||
| Depreciation and amortization | 281,577 | 272,075 | |||||||||
| Other adjustments | 听 | 122,236 | 听 | 听 | (300,238 | ) | |||||
| Cash provided by operating activities | 1,477,919 | 1,203,430 | |||||||||
| 听 | |||||||||||
| Investing activities | |||||||||||
| Capital expenditures | (175,840 | ) | (254,501 | ) | |||||||
| Proceeds from sale of businesses, net of cash sold | 115,983 | - | |||||||||
| Software purchases | (44,226 | ) | (63,283 | ) | |||||||
| Other, net | 听 | (8,331 | ) | 听 | (5,038 | ) | |||||
| Cash used by investing activities | (112,414 | ) | (322,822 | ) | |||||||
| 听 | |||||||||||
| Financing activities | |||||||||||
| Net increase (decrease) in short-term borrowings | (421,069 | ) | 432,262 | ||||||||
| Payments on long-term debt | (13,276 | ) | (3,975 | ) | |||||||
| Payments of debt issuance costs | (6,807 | ) | (1,475 | ) | |||||||
| Proceeds from long-term debt | 951,817 | - | |||||||||
| Purchases of treasury stock | (1,000,468 | ) | (732,623 | ) | |||||||
| Cash dividends paid | (635,994 | ) | (565,275 | ) | |||||||
| Proceeds from issuance of Common Stock, net of shares withheld
for taxes |
听 | 48,918 | 听 | 听 | 30,871 | 听 | |||||
| Cash used by financing activities | (1,076,879 | ) | (840,215 | ) | |||||||
| 听 | |||||||||||
| Effect of foreign currency rate changes on cash and equivalents | 听 | (6,369 | ) | 听 | (66,683 | ) | |||||
| 听 | |||||||||||
| Net change in cash and equivalents | 282,257 | (26,290 | ) | ||||||||
| 听 | |||||||||||
| Cash and equivalents - beginning of year (b) | 听 | 945,605 | 听 | 听 | 971,895 | 听 | |||||
| 听 | |||||||||||
| Cash and equivalents - end of year (b) | $ | 1,227,862 | 听 | $ | 945,605 | 听 | |||||
| 听 | |||||||||||
|
(a) Reflects the impact of adopting the new accounting guidance on stock compensation as of the beginning of the first quarter of 2016, which resulted in a $56.9 million reclassification of cash flows from financing activities to operating activities in the Condensed Consolidated Statement of Cash Flows for the twelve months ended December 2015. |
|||||||||||
| 听 | |||||||||||
|
(b) The cash flows related to discontinued operations have not been segregated, and are included in the Condensed Consolidated Statements of Cash Flows. The cash and equivalents amounts presented at December 2015 differs from cash and equivalents in the Condensed Consolidated Balance Sheet due to cash included in the "Current assets of discontinued operations." |
|||||||||||
| 听 | |||||||||||||||||||||||||||||||||||||
| 大象传媒 CORPORATION | |||||||||||||||||||||||||||||||||||||
| Supplemental Financial Information | |||||||||||||||||||||||||||||||||||||
| Business Segment Information | |||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||
| 听 | |||||||||||||||||||||||||||||||||||||
| 听 | |||||||||||||||||||||||||||||||||||||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 |
听 |
听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
听 |
|||||||||||||||||||||
| Three Months Ended December |
听 |
听 |
Twelve Months Ended December |
听 |
听 |
||||||||||||||||||||||||||||||||
| 2016 | 听 | 听 | 2015 |
% |
% Change |
2016 | 2015 |
% |
% Change |
||||||||||||||||||||||||||||
| 听 | |||||||||||||||||||||||||||||||||||||
| Coalition revenues | |||||||||||||||||||||||||||||||||||||
| Outdoor & Action Sports | $ | 2,133,229 | $ | 2,100,662 | 2 | % | 2 | % | $ | 7,533,145 | $ | 7,400,446 | 2 | % | 2 | % | |||||||||||||||||||||
| Jeanswear | 696,515 | 736,519 | (5 | %) | (4 | %) | 2,737,701 | 2,792,244 | (2 | %) | 0 | % | |||||||||||||||||||||||||
| Imagewear | 297,921 | 259,341 | 15 | % | 15 | % | 1,103,813 | 1,082,565 | 2 | % | 2 | % | |||||||||||||||||||||||||
| Sportswear | 162,325 | 195,511 | (17 | %) | (17 | %) | 536,302 | 635,056 | (16 | %) | (16 | %) | |||||||||||||||||||||||||
| Other | 听 | 30,584 | 听 | 听 | 34,246 | 听 | (11 | %) | (11 | %) | 听 | 108,042 | 听 | 听 | 122,344 | 听 | (12 | %) | (12 | %) | |||||||||||||||||
| 听 | |||||||||||||||||||||||||||||||||||||
| Total coalition revenues | $ | 3,320,574 | 听 | $ | 3,326,279 | 听 | 0 | % | 1 | % | $ | 12,019,003 | 听 | $ | 12,032,655 | 听 | 0 | % | 1 | % | |||||||||||||||||
| 听 | |||||||||||||||||||||||||||||||||||||
| 听 | |||||||||||||||||||||||||||||||||||||
| Coalition profit (a) | |||||||||||||||||||||||||||||||||||||
| Outdoor & Action Sports | $ | 384,795 | $ | 385,723 | 0 | % | 8 | % | $ | 1,226,208 | $ | 1,266,763 | (3 | %) | 3 | % | |||||||||||||||||||||
| Jeanswear | 103,348 | 140,641 | (27 | %) | (29 | %) | 491,912 | 535,385 | (8 | %) | (8 | %) | |||||||||||||||||||||||||
| Imagewear | 55,247 | 39,332 | 40 | % | 35 | % | 179,793 | 157,959 | 14 | % | 10 | % | |||||||||||||||||||||||||
| Sportswear | 10,492 | 28,411 | (63 | %) | (63 | %) | 36,648 | 78,879 | (54 | %) | (54 | %) | |||||||||||||||||||||||||
| Other | 听 | (1,271 | ) | 听 | (343 | ) | * | * | 听 | (4,403 | ) | 听 | 15,135 | 听 | * | * | |||||||||||||||||||||
| 听 | |||||||||||||||||||||||||||||||||||||
| Total coalition profit | 552,611 | 593,764 | (7 | %) | (3 | %) | 1,930,158 | 2,054,121 | (6 | %) | (2 | %) | |||||||||||||||||||||||||
| 听 | |||||||||||||||||||||||||||||||||||||
| Corporate and other expenses (b) | (232,185 | ) | (54,918 | ) | * | * | (428,931 | ) | (265,166 | ) | 62 | % | 62 | % | |||||||||||||||||||||||
| Interest, net | 听 | (21,580 | ) | 听 | (20,406 | ) | 6 | % | 6 | % | 听 | (85,636 | ) | 听 | (81,620 | ) | 5 | % | 5 | % | |||||||||||||||||
| 听 | |||||||||||||||||||||||||||||||||||||
| Income before income taxes | $ | 298,846 | 听 | $ | 518,440 | 听 | (42 | %) | (38 | %) | $ | 1,415,591 | 听 | $ | 1,707,335 | 听 | (17 | %) | (13 | %) | |||||||||||||||||
| 听 | |||||||||||||||||||||||||||||||||||||
| * Calculation not meaningful | |||||||||||||||||||||||||||||||||||||
| **Refer to currency neutral definition on the following pages. | |||||||||||||||||||||||||||||||||||||
| 听 | |||||||||||||||||||||||||||||||||||||
| (a) Restructuring charges totaling $43.3 million incurred in the fourth quarter of 2016 reduced fourth quarter and full year coalition profit for the periods ended December 2016 as follows: Outdoor & Action Sports $17.4 million; Jeanswear $20.4 million; Imagewear $1.3 million; Sportswear $2.9 million; and Other $1.3 million. | |||||||||||||||||||||||||||||||||||||
| 听 | |||||||||||||||||||||||||||||||||||||
| (b) Corporate and other expenses includes $79.6 million of goodwill and intangible asset impairment charges, a $50.9 million pension settlement charge and $14.8 million in restructuring charges in both the fourth quarter and full year periods ended December 2016. | |||||||||||||||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||
| 大象传媒 CORPORATION | ||||||||||||||||||||||||
| Supplemental Financial Information | ||||||||||||||||||||||||
| Reconciliation of Select GAAP Measures to Non-GAAP Measures | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||||||||||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||||||||
| 听 | ||||||||||||||||||||||||
| As reported | Goodwill and Intangible | Restructuring | Pension Settlement | |||||||||||||||||||||
| Three Months Ended December 2016 |
under GAAP |
听 | 听 |
Asset Impairment Charges |
听 | 听 | Charges | 听 | 听 | Charge | 听 | 听 | Adjusted | |||||||||||
| 听 | ||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||
| Gross margin | $ | 1,630,169 | $ | - | $ | 23,275 | $ | - | $ | 1,653,444 | ||||||||||||||
| 听 | ||||||||||||||||||||||||
| Selling, general and administrative expenses | 1,310,048 | (79,644 | ) | (34,816 | ) | (50,922 | ) | 1,144,666 | ||||||||||||||||
| 听 | ||||||||||||||||||||||||
| Operating income | 320,121 | 79,644 | 58,091 | 50,922 | 508,778 | |||||||||||||||||||
| 听 | ||||||||||||||||||||||||
| Income from continuing operations (a) | 264,333 | 64,124 | 43,669 | 31,368 | 403,494 | |||||||||||||||||||
| 听 | ||||||||||||||||||||||||
| Diluted earnings per share (b) | 0.63 | 0.15 | 0.10 | 0.08 | 0.97 | |||||||||||||||||||
| 听 | ||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||
| As reported | Goodwill and Intangible | Restructuring | Pension Settlement | |||||||||||||||||||||
| Twelve months ended December 2016 | under GAAP | 听 | 听 | Asset Impairment Charges | 听 | 听 | Charges | 听 | 听 | Charge | 听 | 听 | Adjusted | |||||||||||
| 听 | ||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||
| Gross margin | $ | 5,822,668 | $ | - | $ | 23,275 | $ | - | $ | 5,845,943 | ||||||||||||||
| 听 | ||||||||||||||||||||||||
| Selling, general and administrative expenses | 4,323,442 | (79,644 | ) | (34,816 | ) | (50,922 | ) | 4,158,060 | ||||||||||||||||
| 听 | ||||||||||||||||||||||||
| Operating income | 1,499,226 | 79,644 | 58,091 | 50,922 | 1,687,883 | |||||||||||||||||||
| 听 | ||||||||||||||||||||||||
| Income from continuing operations (a) | 1,172,527 | 64,124 | 43,669 | 31,368 | 1,311,688 | |||||||||||||||||||
| 听 | ||||||||||||||||||||||||
| Diluted earnings per share (b) | 2.78 | 0.15 | 0.10 | 0.07 | 3.11 | |||||||||||||||||||
| 听 | ||||||||||||||||||||||||
| (a) Goodwill and intangible asset impairment charges, restructuring charges, and the pension settlement charge are presented net of income taxes of $15.5 million, $14.4 million and $19.5 million, respectively, for the three and twelve month periods ended December 2016. | ||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||
| (b) Amounts shown in the table have been calculated using unrounded numbers. | ||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||
Non-GAAP Financial Information
The financial information above has been presented on a GAAP basis and on an adjusted basis which excludes the impact of impairment charges for goodwill and intangible assets, pension settlement charges and restructuring charges. These adjusted presentations are non-GAAP measures. Management believes these measures provide investors with useful supplemental information regarding 大象传媒's underlying business trends and the performance of 大象传媒's ongoing operations and are useful for period-over-period comparisons of such operations.
Management uses the above financial measures internally in its budgeting and review process and, in some cases, as a factor in determining compensation. While management believes that these non-GAAP financial measures are useful in evaluating the business, this information should be considered as supplemental in nature and should be viewed in addition to, and not in lieu of or superior to, 大象传媒's operating performance measures calculated in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures presented by other companies.
| 听 | ||||||||||||||||||||||||||||||||||||
| 大象传媒 CORPORATION | ||||||||||||||||||||||||||||||||||||
| Supplemental Financial Information | ||||||||||||||||||||||||||||||||||||
| Business Segment Information 鈥� Currency Neutral Adjusted Basis | ||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||||||||||||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||||||||||||||||
|
听 |
||||||||||||||||||||||||||||||||||||
|
听 |
听 |
听 |
听 |
听 |
听 |
|||||||||||||||||||||||||||||||
|
Three Months Ended December 2016 |
As Reported |
Adjust for |
Adjust for |
Adjust for Pension |
Adjusted |
Adjust for Foreign |
Currency |
|||||||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||||||||||||||
| Coalition profit | ||||||||||||||||||||||||||||||||||||
| Outdoor & Action Sports | $ | 384,795 | $ | - | $ | 17,401 | $ | - | $ | 402,196 | $ | 30,596 | $ | 432,792 | ||||||||||||||||||||||
| Jeanswear | 103,348 | - | 20,357 | - | 123,705 | (3,509 | ) | 120,196 | ||||||||||||||||||||||||||||
| Imagewear | 55,247 | - | 1,308 | - | 56,555 | (1,977 | ) | 54,578 | ||||||||||||||||||||||||||||
| Sportswear | 10,492 | - | 2,921 | - | 13,413 | - | 13,413 | |||||||||||||||||||||||||||||
| Other | 听 | (1,271 | ) | 听 | - | 听 | 听 | 1,277 | 听 | 听 | - | 听 | 听 | 6 | 听 | 听 | - | 听 | 听 | 6 | 听 | |||||||||||||||
| 听 | ||||||||||||||||||||||||||||||||||||
| Total coalition profit | 552,611 | - | 43,264 | - | 595,875 | 25,110 | 620,985 | |||||||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||||||||||||||
| Corporate and other expenses | (232,185 | ) | 79,644 | 14,827 | 50,922 | (86,792 | ) | (333 | ) | (87,125 | ) | |||||||||||||||||||||||||
| Interest, net | 听 | (21,580 | ) | 听 | - | 听 | 听 | - | 听 | 听 | - | 听 | 听 | (21,580 | ) | 听 | - | 听 | 听 | (21,580 | ) | |||||||||||||||
| 听 | ||||||||||||||||||||||||||||||||||||
|
Income from continuing operations before income taxes |
$ | 298,846 | 听 | $ | 79,644 | 听 | $ | 58,091 | 听 | $ | 50,922 | 听 | $ | 487,503 | 听 | $ | 24,777 | 听 | $ | 512,280 | 听 | |||||||||||||||
| Diluted earnings per share growth (b) | 听 | (33 | %) | 听 | 16 | % | 听 | 11 | % | 听 | 8 | % | 听 | 3 | % | 听 | 5 | % | 听 | 8 | % | |||||||||||||||
| 听 | ||||||||||||||||||||||||||||||||||||
|
听 |
||||||||||||||||||||||||||||||||||||
|
听 |
听 |
听 |
听 |
听 |
听 |
|||||||||||||||||||||||||||||||
| Twelve Months Ended December 2016 |
As Reported |
Adjust for |
Adjust for |
Adjust for Pension |
Adjusted |
Adjust for Foreign |
Currency |
|||||||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||||||||||||||
| Coalition profit | ||||||||||||||||||||||||||||||||||||
| Outdoor & Action Sports | $ | 1,226,208 | $ | - | $ | 17,401 | $ | - | $ | 1,243,609 | $ | 82,419 | $ | 1,326,028 | ||||||||||||||||||||||
| Jeanswear | 491,912 | - | 20,357 | - | 512,269 | 497 | 512,766 | |||||||||||||||||||||||||||||
| Imagewear | 179,793 | - | 1,308 | - | 181,101 | (6,057 | ) | 175,044 | ||||||||||||||||||||||||||||
| Sportswear | 36,648 | - | 2,921 | - | 39,569 | - | 39,569 | |||||||||||||||||||||||||||||
| Other | 听 | (4,403 | ) | 听 | - | 听 | 听 | 1,277 | 听 | 听 | - | 听 | 听 | (3,126 | ) | 听 | - | 听 | 听 | (3,126 | ) | |||||||||||||||
| 听 | ||||||||||||||||||||||||||||||||||||
| Total coalition profit | 1,930,158 | - | 43,264 | - | 1,973,422 | 76,859 | 2,050,281 | |||||||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||||||||||||||
| Corporate and other expenses | (428,931 | ) | 79,644 | 14,827 | 50,922 | (283,538 | ) | (485 | ) | (284,023 | ) | |||||||||||||||||||||||||
| Interest, net | 听 | (85,636 | ) | 听 | - | 听 | 听 | - | 听 | 听 | - | 听 | 听 | (85,636 | ) | 听 | - | 听 | 听 | (85,636 | ) | |||||||||||||||
| 听 | ||||||||||||||||||||||||||||||||||||
|
Income from continuing operations before income taxes |
$ | 1,415,591 | 听 | $ | 79,644 | 听 | $ | 58,091 | 听 | $ | 50,922 | 听 | $ | 1,604,248 | 听 | $ | 76,374 | 听 | $ | 1,680,622 | 听 | |||||||||||||||
| Diluted earnings per share growth (b) | 听 | (9 | %) | 听 | 5 | % | 听 | 3 | % | 听 | 2 | % | 听 | 2 | % | 听 | 5 | % | 听 | 7 | % | |||||||||||||||
| 听 | ||||||||||||||||||||||||||||||||||||
| (a) Restructuring charges totaling $43.3 million incurred in the fourth quarter of 2016 reduced fourth quarter and full year coalition profit for the periods ended December 2016 as follows: Outdoor & Action Sports $17.4 million; Jeanswear $20.4 million; Imagewear $1.3 million; Sportswear $2.9 million; and Other $1.3 million. Corporate and other expenses includes $79.6 million of goodwill and intangible asset impairment charges, a $50.9 million pension settlement charge and $14.8 million in restructuring charges in both the fourth quarter and full year periods ended December 2016. There were no material foreign currency impacts related to these charges in the fourth quarter and full year periods ended December 2016. | ||||||||||||||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||||||||||||||
| (b) Amounts shown in the table have been calculated using unrounded numbers. | ||||||||||||||||||||||||||||||||||||
|
听 |
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Currency Neutral Adjusted Financial Information
大象传媒 is a global company that reports financial information in U.S. dollars in accordance with GAAP. Foreign currency exchange rate fluctuations affect the amounts reported by 大象传媒 from translating its foreign revenues and expenses into U.S. dollars, and from entering foreign currency transactions. These rate fluctuations can have a significant effect on reported operating results. As a supplement to our reported operating results, we present currency neutral financial information, which is a non-GAAP financial measure that excludes the incremental current year impact of foreign currency exchange. We use currency neutral information to provide a framework to assess how our business performed excluding the effects of changes in the rates used to calculate foreign currency translation, and transaction gains and losses. Management believes this information is useful to investors to facilitate comparison of operating results and better identify trends in our businesses.
To calculate foreign currency translation on a currency neutral basis, operating results for the current year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period). Similarly, transaction gains and losses on a currency neutral basis are calculated using exchange rates from the comparable period of the prior year.
These currency neutral performance measures should be viewed in addition to, and not in lieu of or superior to, our operating performance measures calculated in accordance with GAAP. The currency neutral information presented may not be comparable to similarly titled measures reported by other companies.
The financial information above has been presented on a GAAP basis and on an adjusted basis which excludes the impact of impairment charges for goodwill and intangible assets, pension settlement charges and restructuring charges. These adjusted presentations are non-GAAP measures. Management believes these measures provide investors with useful supplemental information regarding 大象传媒's underlying business trends and the performance of 大象传媒's ongoing operations and are useful for period-over-period comparisons of such operations.
Management uses the above financial measures internally in its budgeting and review process and, in some cases, as a factor in determining compensation. While management believes that these non-GAAP financial measures are useful in evaluating the business, this information should be considered as supplemental in nature and should be viewed in addition to, and not in lieu of or superior to, 大象传媒's operating performance measures calculated in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures presented by other companies.
| 听 | ||||||||||||||||
| 大象传媒 CORPORATION | ||||||||||||||||
| Supplemental Financial Information | ||||||||||||||||
| Business Segment Information 鈥� Currency Neutral Basis | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| 听 | ||||||||||||||||
| 听 | 听 | 听 | Three Months Ended December 2016 | |||||||||||||
| 听 | 听 | 听 | 听 | |||||||||||||
| As Reported | Adjust for Foreign | |||||||||||||||
| under GAAP | Currency Exchange | Currency Neutral | ||||||||||||||
| 听 | ||||||||||||||||
| Coalition revenues | ||||||||||||||||
| Outdoor & Action Sports | $ | 2,133,229 | $ | 14,364 | $ | 2,147,593 | ||||||||||
| Jeanswear | 696,515 | 12,617 | 709,132 | |||||||||||||
| Imagewear | 297,921 | (455 | ) | 297,466 | ||||||||||||
| Sportswear | 162,325 | - | 162,325 | |||||||||||||
| Other | 听 | 30,584 | 听 | 听 | - | 听 | 听 | 30,584 | 听 | |||||||
| 听 | ||||||||||||||||
| Total coalition revenues | $ | 3,320,574 | 听 | $ | 26,526 | 听 | $ | 3,347,100 | 听 | |||||||
| 听 | ||||||||||||||||
| Coalition profit | ||||||||||||||||
| Outdoor & Action Sports | $ | 384,795 | $ | 30,596 | $ | 415,391 | ||||||||||
| Jeanswear | 103,348 | (3,509 | ) | 99,839 | ||||||||||||
| Imagewear | 55,247 | (1,977 | ) | 53,270 | ||||||||||||
| Sportswear | 10,492 | - | 10,492 | |||||||||||||
| Other | 听 | (1,271 | ) | 听 | - | 听 | 听 | (1,271 | ) | |||||||
| 听 | ||||||||||||||||
| Total coalition profit | 552,611 | 25,110 | 577,721 | |||||||||||||
| 听 | ||||||||||||||||
| Corporate and other expenses | (232,185 | ) | (333 | ) | (232,518 | ) | ||||||||||
| Interest, net | 听 | (21,580 | ) | 听 | - | 听 | 听 | (21,580 | ) | |||||||
| 听 | ||||||||||||||||
| Income from continuing operations before income taxes | $ | 298,846 | 听 | $ | 24,777 | 听 | $ | 323,623 | 听 | |||||||
| 听 | ||||||||||||||||
Currency Neutral Financial Information
大象传媒 is a global company that reports financial information in U.S. dollars in accordance with GAAP. Foreign currency exchange rate fluctuations affect the amounts reported by 大象传媒 from translating its foreign revenues and expenses into U.S. dollars, and from entering foreign currency transactions. These rate fluctuations can have a significant effect on reported operating results. As a supplement to our reported operating results, we present currency neutral financial information, which is a non-GAAP financial measure that excludes the incremental current year impact of foreign currency exchange. We use currency neutral information to provide a framework to assess how our business performed excluding the effects of changes in the rates used to calculate foreign currency translation, and transaction gains and losses. Management believes this information is useful to investors to facilitate comparison of operating results and better identify trends in our businesses.
To calculate foreign currency translation on a currency neutral basis, operating results for the current year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period). Similarly, transaction gains and losses on a currency neutral basis are calculated using exchange rates from the comparable period of the prior year.
These currency neutral performance measures should be viewed in addition to, and not in lieu of or superior to, our operating performance measures calculated in accordance with GAAP. The currency neutral information presented may not be comparable to similarly titled measures reported by other companies.
| 听 | ||||||||||||||||
| 大象传媒 CORPORATION | ||||||||||||||||
| Supplemental Financial Information | ||||||||||||||||
| Business Segment Information 鈥� Currency Neutral Basis | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| 听 | ||||||||||||||||
| 听 | ||||||||||||||||
| 听 | ||||||||||||||||
| 听 | 听 | 听 | Twelve Months Ended December 2016 | |||||||||||||
| 听 | 听 | 听 | 听 | |||||||||||||
| As Reported | Adjust for Foreign | |||||||||||||||
| under GAAP | Currency Exchange | Currency Neutral | ||||||||||||||
| 听 | ||||||||||||||||
| Coalition revenues | ||||||||||||||||
| Outdoor & Action Sports | $ | 7,533,145 | $ | 36,879 | $ | 7,570,024 | ||||||||||
| Jeanswear | 2,737,701 | 57,890 | 2,795,591 | |||||||||||||
| Imagewear | 1,103,813 | (128 | ) | 1,103,685 | ||||||||||||
| Sportswear | 536,302 | - | 536,302 | |||||||||||||
| Other | 听 | 108,042 | 听 | 听 | - | 听 | 听 | 108,042 | 听 | |||||||
| 听 | ||||||||||||||||
| Total coalition revenues | $ | 12,019,003 | 听 | $ | 94,641 | 听 | $ | 12,113,644 | 听 | |||||||
| 听 | ||||||||||||||||
| Coalition profit | ||||||||||||||||
| Outdoor & Action Sports | $ | 1,226,208 | $ | 82,419 | $ | 1,308,627 | ||||||||||
| Jeanswear | 491,912 | 497 | 492,409 | |||||||||||||
| Imagewear | 179,793 | (6,057 | ) | 173,736 | ||||||||||||
| Sportswear | 36,648 | - | 36,648 | |||||||||||||
| Other | 听 | (4,403 | ) | 听 | - | 听 | 听 | (4,403 | ) | |||||||
| 听 | ||||||||||||||||
| Total coalition profit | 1,930,158 | 76,859 | 2,007,017 | |||||||||||||
| 听 | ||||||||||||||||
| Corporate and other expenses | (428,931 | ) | (485 | ) | (429,416 | ) | ||||||||||
| Interest, net | 听 | (85,636 | ) | 听 | - | 听 | 听 | (85,636 | ) | |||||||
| 听 | ||||||||||||||||
| Income from continuing operations before income taxes | $ | 1,415,591 | 听 | $ | 76,374 | 听 | $ | 1,491,965 | 听 | |||||||
| 听 | ||||||||||||||||
Currency Neutral Financial Information
大象传媒 is a global company that reports financial information in U.S. dollars in accordance with GAAP. Foreign currency exchange rate fluctuations affect the amounts reported by 大象传媒 from translating its foreign revenues and expenses into U.S. dollars, and from entering foreign currency transactions. These rate fluctuations can have a significant effect on reported operating results. As a supplement to our reported operating results, we present currency neutral financial information, which is a non-GAAP financial measure that excludes the incremental current year impact of foreign currency exchange. We use currency neutral information to provide a framework to assess how our business performed excluding the effects of changes in the rates used to calculate foreign currency translation, and transaction gains and losses. Management believes this information is useful to investors to facilitate comparison of operating results and better identify trends in our businesses.
To calculate foreign currency translation on a currency neutral basis, operating results for the current year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period). Similarly, transaction gains and losses on a currency neutral basis are calculated using exchange rates from the comparable period of the prior year.
These currency neutral performance measures should be viewed in addition to, and not in lieu of or superior to, our operating performance measures calculated in accordance with GAAP. The currency neutral information presented may not be comparable to similarly titled measures reported by other companies.
View source version on businesswire.com:
大象传媒 Corporation
Joe Alkire, 336-424-7711
VP, Investor Relations and Financial Planning & Analysis
or
Craig Hodges, 336-424-5636
Senior Director, Corporate Communications
Source: 大象传媒 Corporation
Released February 17, 2017