大象传媒 Reports Better Than Expected Fourth Quarter and Full Year 2017 Results; Provides Outlook for Transition Quarter Ending March 31, 2018
大象传媒
- Full year 2017 revenue from continuing operations increased 7 percent to $11.8 billion, including an approximate 2 percentage point revenue growth contribution from the Williamson-Dickie acquisition;
- Full year 2017 reported gross margin from continuing operations increased 120 basis points (up 180 basis points currency neutral) to a record high of 50.5 percent. On an adjusted basis, gross margin increased 100 basis points (up 160 basis points currency neutral) to 50.5 percent;
- Full year 2017 reported earnings per share from continuing operations was $1.79, including a $1.15 per share negative impact from recent U.S. tax legislation. Adjusted earnings per share from continuing operations increased 4 percent to $2.98 (up 7 percent currency neutral) including a $0.04 per share contribution from the Williamson-Dickie acquisition;
- Fourth quarter and full year 2017 earnings per share results include an incremental $0.06 per share ($35 million pretax) impact from additional investments to drive accelerated growth in 2018 and beyond. Relative to the company's original outlook provided on February 17, 2017, full year 2017 earnings per share included a $0.19 (about $100 million pretax) impact from incremental investments;
- 2017 cash flow from operations reached approximately $1.5 billion and the company returned approximately $1.9 billion to shareholders through dividends and share repurchases; and,
- Revenue and adjusted earnings per share from continuing operations for the transition quarter ending March 31, 2018 expected to approximate $2.9 billion and $0.65, respectively.
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听30, 2017. 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 heading 鈥淐urrency Neutral - Excluding the Impact of Foreign Currency.鈥� Unless otherwise noted, 鈥渞eported鈥� and 鈥渃urrency neutral鈥� amounts are the same. This release also refers to 鈥渃ontinuing鈥� and 鈥渄iscontinued鈥� operations amounts, which are concepts described under the heading 鈥淒iscontinued Operations - Nautica庐 Brand Business, Licensing Business and Contemporary Brands.鈥� Unless otherwise noted, results presented are based on continuing operations. This release also refers to 鈥渁djusted鈥� amounts, terms that are described under the heading 鈥淎djusted Amounts - Excluding Williamson-Dickie and Icebreaker庐 Transaction and Deal Related Expenses and the Impact of U.S. Tax Legislation.鈥� Unless otherwise noted, 鈥渞eported鈥� and 鈥渁djusted鈥� amounts are the same.
鈥湸笙蟠�'s fourth quarter results were stronger than we expected as growth continues to accelerate across core dimensions of our portfolio,鈥� said Steve Rendle, Chairman and Chief Executive Officer. 鈥淲e delivered a top-quartile total return for shareholders in 2017 and our strong performance provided us with the capacity to reinvest about $100 million back into our business. I am confident that our investments will accelerate growth and drive even stronger long term value for shareholders. We remain in the early phase of a multi-year journey to become a purpose led, agile, consumer centric organization. I am pleased with our early progress and look forward to building on our momentum in 2018.鈥�
Currency Neutral - 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 identifies and quantifies all excluded items, and provides management鈥檚 view of why this information is useful to investors.
Discontinued Operations - Nautica庐 Brand Business, Licensing Business and Contemporary Brands
During the fourth quarter of 2017, the company reached the decision to sell its Nautica庐 brand business and determined that it met the held-for-sale and discontinued operations accounting criteria. Accordingly, the company has classified the assets and liabilities of the Nautica庐 brand business as held-for-sale and has included the results of this business in discontinued operations for all periods presented.
On April 28, 2017, the company completed the sale of its Licensed Sports Group (LSG) business, including the Majestic庐 brand. In conjunction with the LSG divestiture, 大象传媒 executed its plan to entirely exit the licensing business and completed the sale of the assets of the JanSport庐 brand collegiate business in the fourth quarter of 2017. On August 26, 2016, the company completed the sale of its Contemporary Brands businesses, which included the听7 For All Mankind庐,听Splendid庐听and听Ella Moss庐听brands. Accordingly, the company has removed the assets and liabilities of the licensing and the Contemporary Brands businesses as of the dates noted above and included the operating results of these businesses in discontinued operations for all periods presented.
The company鈥檚 after-tax net loss from discontinued operations was $17 million in the fourth quarter of 2017, which includes the operating results of the Nautica庐 brand business, a noncash impairment charge to adjust the Nautica庐 brand business to its estimated fair value, and the gain on sale of the assets of the JanSport庐 brand collegiate business. The company's after-tax net loss from discontinued operations was $106 million for the full year 2017, which includes the loss on sale of the licensing business, the noncash impairment charges related to the Nautica庐 brand business, and the operating results of the licensing and Nautica庐 brand businesses.
Adjusted Amounts - Excluding Williamson-Dickie and Icebreaker庐 Transaction and Deal Related Expenses and the Impact of U.S. Tax Legislation
This release refers to adjusted amounts that exclude transaction and deal related expenses associated with the acquisition of Williamson-Dickie and Icebreaker庐. Total transaction and deal related expenses were $16 million and $21 million in the fourth quarter and full year 2017, respectively.
Adjusted amounts in this release also exclude the impact of recent U.S. tax legislation. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act ("Tax Act"). The Tax Act reduces the federal tax rate on U.S. earnings to 21 percent and moves from a global taxation regime to a modified territorial regime. As part of the legislation, U.S. companies are required to pay a tax on historical earnings generated offshore that have not been repatriated to the U.S. Additionally, revaluation of deferred tax asset and liability positions at the lower federal base rate of 21 percent is also required. The transitional impact of the Tax Act resulted in a provisional net charge of approximately $465 million for the fourth quarter and full year 2017. Given the significant complexity of the Tax Act, anticipated guidance from the U.S. Treasury about implementing the Tax Act, and the potential for additional guidance from the Securities and Exchange Commission or the Financial Accounting Standards Board related to the Tax Act, these estimates may be adjusted during 2018.
Combined, the above charges negatively impacted earnings per share by $1.19 for both the fourth quarter and full year 2017. All adjusted amounts referenced herein exclude the effects of these amounts.
Reconciliations of measures calculated in accordance with GAAP to adjusted amounts are presented in the supplemental financial information included with this release, which identifies and quantifies all excluded items, and provides management鈥檚 view of why this information is useful to investors.
Fourth Quarter 2017 Income Statement Review
- Revenue increased 20 percent to $3.6 billion (up 18 percent currency neutral), including a $247 million contribution from the Williamson-Dickie acquisition, which closed on October 2, 2017. Excluding the Williamson-Dickie acquisition, revenue increased 12 percent (up 10 percent currency neutral), driven by broad-based strength across 大象传媒鈥檚 international and direct-to-consumer platforms, Outdoor & Action Sports coalition and Workwear businesses.
- Gross margin improved 130 basis points to a quarterly record high of 51.5 percent, as benefits from pricing, lower restructuring costs, and a mix-shift toward higher margin businesses were partially offset by the Williamson-Dickie acquisition and changes in foreign currency. On an adjusted basis, gross margin increased 60 basis points to 51.6 percent. Excluding the Williamson-Dickie acquisition, adjusted gross margin increased 140 basis points to 52.4 percent. Changes in foreign currency negatively impacted gross margin by 10 basis points.
- Operating income on a reported basis was $481 million. On an adjusted basis, operating income increased 6 percent to $497 million, including a $19 million contribution from the Williamson-Dickie acquisition. Operating margin on a reported basis increased 390 basis points to 13.2 percent. Adjusted operating margin declined 180 basis points to 13.6 percent. Adjusted operating margin, excluding the Williamson-Dickie acquisition, declined 130 basis points to 14.1 percent. Changes in foreign currency negatively impacted operating margin by 30 basis points.
- Fourth quarter loss per share was $0.18 on a reported basis, including a $1.16 negative impact from recent U.S. tax legislation. On an adjusted basis, earnings per share increased 13 percent to $1.01, including a $0.04 contribution from the Williamson-Dickie acquisition. Relative to the company's outlook provided on October 23, 2017, fourth quarter earnings per share included an incremental $0.06 ($35 million pretax) impact from additional investments to drive accelerated growth in 2018 and beyond.
Fiscal Year 2017 Income Statement Review
- Revenue increased 7 percent to $11.8 billion, including a $247 million contribution from the Williamson-Dickie acquisition. Excluding the Williamson-Dickie acquisition, revenue increased 5 percent (up 4 percent currency neutral), driven by continued momentum in 大象传媒's international and direct-to-consumer platforms, Outdoor & Action Sports coalition and Workwear businesses.
- Gross margin increased 120 basis points to an annual record high of 50.5 percent, as benefits from pricing, lower product and restructuring costs, and a mix-shift toward higher margin businesses were partially offset by changes in foreign currency and the Williamson-Dickie acquisition. On an adjusted basis, gross margin increased 100 basis points to 50.5 percent. Excluding the Williamson-Dickie acquisition, adjusted gross margin increased 120 basis points to 50.7 percent. Changes in foreign currency negatively affected gross margin by 60 basis points.
- Operating income on a reported basis increased 10 percent to $1.5 billion. Adjusted operating income decreased 2 percent to $1.5 billion, including a $19 million contribution from the Williamson-Dickie acquisition. Operating margin on a reported basis increased 30 basis points to 12.7 percent. Adjusted operating margin declined 120 basis points to 12.9 percent. Excluding the Williamson-Dickie acquisition, adjusted operating margin declined 110 basis points to 13.0 percent. Changes in foreign currency negatively impacted operating margin by 50 basis points.
- Earnings per share on a reported basis declined 30 percent to $1.79, including a $1.15 negative impact from recent U.S. tax legislation. Adjusted earnings per share increased 4 percent (up 7 percent currency neutral) to $2.98, including a $0.04 contribution from the Williamson-Dickie acquisition. Relative to the company's original outlook provided on February 17, 2017, full year 2017 earnings per share included a $0.19 (about $100 million pretax) impact from incremental investments.
Balance Sheet and Cash Flow Highlights
Inventories were up 20 percent compared to 2016 levels. Excluding the Williamson-Dickie acquisition, inventories increased 3 percent. In 2017, 大象传媒鈥檚 cash flow from operations reached approximately $1.5 billion. The company also returned approximately $1.9 billion to shareholders through dividends and share repurchases.
Fiscal Year Change
As previously disclosed, 大象传媒's Board of Directors authorized a change in the company's fiscal year end to the Saturday closest to March 31 from the Saturday closest to December 31.听This change will be effective March 31, 2018.听大象传媒 will report results for the transition quarter ending March 31, 2018. The first 12-month fiscal year (Fiscal 2019) will run from April 1, 2018 through March 30, 2019.
Outlook For Transition Quarter Ending March 31, 2018
大象传媒鈥檚 outlook for the transition quarter ending March 31, 2018 includes the following:
- Revenue is expected to approximate $2.9 billion, up 16 percent, including about a $200 million contribution from the Williamson-Dickie acquisition. Excluding the Williamson-Dickie acquisition, revenue is expected to increase at a high single-digit rate due in part to changes in foreign currency.
- Adjusted earnings per share is expected to approximate $0.65, up 27 percent, including about a $0.02 contribution from the Williamson-Dickie acquisition. Excluding the Williamson-Dickie acquisition, adjusted earnings per share is expected to increase more than 20 percent due in part to changes in foreign currency.
Dividend Declared
VF鈥檚 Board of Directors declared a quarterly dividend of $0.46 per share, payable on March 19, 2018 to shareholders of record on March 9, 2018.
Webcast Information
大象传媒 will host its 2017 fourth quarter conference call beginning at 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) outfits consumers around the world with its diverse portfolio of iconic lifestyle brands, including Vans庐, The North Face庐,听Timberland庐, Wrangler庐 and Lee庐. Founded in 1899, 大象传媒 is one of the world鈥檚 largest apparel, footwear and accessories companies with socially and environmentally responsible operations spanning numerous geographies, product categories and distribution channels. 大象传媒 is committed to delivering innovative products to consumers and creating long-term value for its customers and shareholders. 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 several 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, evolving consumer preferences and changing patterns of consumer behavior, intense competition from online retailers, manufacturing and product innovation; 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; 大象传媒's ability to execute and integrate acquisitions; changes in tax laws and 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.
| 听 | 听 | 听 | 听 | |||||||||||||||||||
| 大象传媒 CORPORATION | ||||||||||||||||||||||
| Condensed Consolidated Statements of Income | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||||||||
| 听 | ||||||||||||||||||||||
| 听 | ||||||||||||||||||||||
| Three Months Ended December | % | Twelve Months Ended December | % | |||||||||||||||||||
| 2017 | 听 | 2016 | Change | 2017 | 听 | 2016 | Change | |||||||||||||||
| Net sales | $ | 3,624,804 | $ | 3,020,107 | 20 | % | $ | 11,735,695 | $ | 10,957,922 | 7 | % | ||||||||||
| Royalty income | 24,479 | 听 | 17,436 | 听 | 40 | % | 75,482 | 听 | 68,225 | 听 | 11 | % | ||||||||||
| Total revenues | 3,649,283 | 听 | 3,037,543 | 听 | 20 | % | 11,811,177 | 听 | 11,026,147 | 听 | 7 | % | ||||||||||
| Costs and operating expenses | ||||||||||||||||||||||
| Cost of goods sold | 1,769,819 | 1,513,087 | 17 | % | 5,844,941 | 5,589,923 | 5 | % | ||||||||||||||
| Selling, general and administrative expenses | 1,398,093 | 1,162,386 | 20 | % | 4,463,146 | 3,988,320 | 12 | % | ||||||||||||||
| Impairment of goodwill and intangible assets | 鈥� | 听 | 79,644 | 听 | * | 鈥� | 听 | 79,644 | 听 | * | ||||||||||||
| Total costs and operating expenses | 3,167,912 | 听 | 2,755,117 | 听 | 15 | % | 10,308,087 | 听 | 9,657,887 | 听 | 7 | % | ||||||||||
| Operating income | 481,371 | 282,426 | 70 | % | 1,503,090 | 1,368,260 | 10 | % | ||||||||||||||
| Interest, net | (22,548 | ) | (21,564 | ) | 5 | % | (85,880 | ) | (85,546 | ) | 0 | % | ||||||||||
| Other (expense) income, net | 1,346 | 听 | 306 | 听 | * | (715 | ) | 2,002 | 听 | * | ||||||||||||
| Income from continuing operations before income taxes | 460,169 | 261,168 | 76 | % | 1,416,495 | 1,284,716 | 10 | % | ||||||||||||||
| Income taxes | 533,148 | 听 | 23,085 | 听 | * | 695,286 | 听 | 205,862 | 听 | * | ||||||||||||
| Income (loss) from continuing operations | (72,979 | ) | 238,083 | (131 | )% | 721,209 | 1,078,854 | (33 | )% | |||||||||||||
| Income (loss) from discontinued operations, net of tax | (17,290 | ) | 26,250 | 听 | * | (106,286 | ) | (4,748 | ) | * | ||||||||||||
| Net income (loss) | $ | (90,269 | ) | $ | 264,333 | 听 | (134 | )% | $ | 614,923 | 听 | $ | 1,074,106 | 听 | (43 | )% | ||||||
| Earnings (loss) per common share - basic (a) | ||||||||||||||||||||||
| Continuing operations | $ | (0.18 | ) | $ | 0.58 | (132 | )% | $ | 1.81 | $ | 2.59 | (30 | )% | |||||||||
| Discontinued operations | (0.04 | ) | 0.06 | 听 | * | (0.27 | ) | (0.01 | ) | * | ||||||||||||
| Total earnings per common share - basic | $ | (0.23 | ) | $ | 0.64 | 听 | (136 | )% | $ | 1.54 | 听 | $ | 2.58 | 听 | (40 | )% | ||||||
|
Earnings (loss) per common share - diluted (a) |
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| Continuing operations | $ | (0.18 | ) | $ | 0.57 | (132 | )% | $ | 1.79 | $ | 2.56 | (30 | )% | |||||||||
| Discontinued operations | (0.04 | ) | 0.06 | 听 | * | (0.26 | ) | (0.01 | ) | * | ||||||||||||
| Total earnings per common share - diluted | $ | (0.23 | ) | $ | 0.63 | 听 | (136 | )% | $ | 1.52 | 听 | $ | 2.54 | 听 | (40 | )% | ||||||
| Weighted average shares outstanding | ||||||||||||||||||||||
| Basic | 394,577 | 413,214 | 399,223 | 416,103 | ||||||||||||||||||
| Diluted | 400,378 | 417,891 | 403,559 | 422,081 | ||||||||||||||||||
| Cash dividends per common share | $ | 0.46 | $ | 0.42 | 10 | % | $ | 1.72 | $ | 1.53 | 12 | % | ||||||||||
| 听 | ||||||||||||||||||||||
| * Calculation not meaningful | ||||||||||||||||||||||
| 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 2017 and December 2016 relate to the 13-week and 52-week fiscal periods ended December 30, 2017 and December 31, 2016, respectively. | ||||||||||||||||||||||
| (a) Amounts have been calculated using unrounded numbers. | ||||||||||||||||||||||
| 听 | 听 | ||||||
| 大象传媒 CORPORATION | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (Unaudited) | |||||||
| (In thousands) | |||||||
| 听 | |||||||
| 听 | |||||||
| December | December | ||||||
| 2017 | 2016 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and equivalents | $ | 566,075 | $ | 1,227,862 | |||
| Accounts receivable, net | 1,422,101 | 1,148,797 | |||||
| Inventories | 1,705,171 | 1,424,571 | |||||
| Other current assets | 698,777 | 听 | 491,868 | ||||
| Total current assets | 4,392,124 | 4,293,098 | |||||
| 听 | |||||||
| Property, plant and equipment | 1,002,700 | 895,960 | |||||
| Intangible assets | 2,089,781 | 1,533,928 | |||||
| Goodwill | 1,692,644 | 1,554,667 | |||||
| Other assets | 781,253 | 听 | 1,461,634 | ||||
| Total assets | $ | 9,958,502 | 听 | $ | 9,739,287 | ||
| 听 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities | |||||||
| Short-term borrowings | $ | 729,384 | $ | 26,029 | |||
| Current portion of long-term debt | 6,165 | 253,689 | |||||
| Accounts payable | 755,569 | 620,194 | |||||
| Accrued liabilities | 1,254,082 | 听 | 885,488 | ||||
| Total current liabilities | 2,745,200 | 1,785,400 | |||||
| 听 | |||||||
| Long-term debt | 2,187,789 | 2,039,180 | |||||
| Other liabilities | 1,305,613 | 听 | 973,786 | ||||
| Total liabilities | 6,238,602 | 听 | 4,798,366 | ||||
| 听 | |||||||
| Stockholders' equity | 3,719,900 | 听 | 4,940,921 | ||||
| Total liabilities and stockholders' equity | $ | 9,958,502 | 听 | $ | 9,739,287 | ||
| 听 | |||||||
| 听 | ||||||||
| 大象传媒 CORPORATION | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (Unaudited) | ||||||||
| (In thousands) | ||||||||
| 听 | ||||||||
| 听 | ||||||||
| Twelve Months Ended December | ||||||||
| 2017 (b) | 听 | 2016 (a) (b) | ||||||
| Operating activities | ||||||||
| Net income | $ | 614,923 | $ | 1,074,106 | ||||
| Depreciation and amortization |
290,503 |
281,577 | ||||||
| Other adjustments |
569,234 |
听 | 124,885 | 听 | ||||
| Cash provided by operating activities | 1,474,660 | 1,480,568 | ||||||
| 听 | ||||||||
| Investing activities | ||||||||
| Proceeds from sale of businesses, net of cash sold | 214,968 | 115,983 | ||||||
| Business acquisitions, net of cash received | (740,541 | ) | 鈥� | |||||
| Capital expenditures | (169,553 | ) | (175,840 | ) | ||||
| Software purchases | (65,177 | ) | (44,226 | ) | ||||
| Other, net | (15,948 | ) | (8,331 | ) | ||||
| Cash used by investing activities | (776,251 | ) | (112,414 | ) | ||||
| 听 | ||||||||
| Financing activities | ||||||||
| Net proceeds from short-term borrowings, long-term debt and other | 432,139 | 510,665 | ||||||
| Purchases of treasury stock | (1,200,356 | ) | (1,000,468 | ) | ||||
| Cash dividends paid | (684,679 | ) | (635,994 | ) | ||||
| Proceeds from issuance of Common Stock, net of shares withheld for taxes | 89,893 | 听 | 48,918 | 听 | ||||
| Cash used by financing activities | (1,363,003 | ) | (1,076,879 | ) | ||||
| 听 | ||||||||
| Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | 2,965 | 听 | (6,645 | ) | ||||
| 听 | ||||||||
| Net change in cash, cash equivalents and restricted cash | (661,629 | ) | 284,630 | |||||
| 听 | ||||||||
| Cash, cash equivalents and restricted cash - beginning of year (c) | 1,231,026 | 听 | 946,396 | 听 | ||||
| 听 | ||||||||
| Cash, cash equivalents and restricted cash - end of year (c) | $ | 569,397 | 听 | $ | 1,231,026 | 听 | ||
| 听 | ||||||||
| (a) Reflects the impact of adopting the new accounting guidance on the presentation of restricted cash and restricted cash equivalents as of the beginning of the first quarter of 2017, which resulted in a $2.6 million reclassification of cash flows used by operating activities in the Condensed Consolidated Statement of Cash Flows for the twelve months ended December 2016. | ||||||||
| 听 | ||||||||
| (b) The cash flows related to discontinued operations have not been segregated, and are included in the Condensed Consolidated Statements of Cash Flows. | ||||||||
| 听 | ||||||||
| (c) The cash amounts presented above differ from the Condensed Consolidated Balance Sheets due to the adoption of the new accounting guidance discussed in (a) above. | ||||||||
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| 大象传媒 CORPORATION | ||||||||||||||||||||
| Quarterly Condensed Consolidated Statements of Income | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||||||
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| 听 | ||||||||||||||||||||
| 2017 (a) | ||||||||||||||||||||
| First Quarter | 听 | Second Quarter | 听 | Third Quarter | 听 | Fourth Quarter | 听 | Full Year | ||||||||||||
| Net sales | $ | 2,483,896 | $ | 2,252,590 | $ | 3,374,405 | $ | 3,624,804 | $ | 11,735,695 | ||||||||||
| Royalty income | 16,444 | 听 | 16,030 | 听 | 18,529 | 听 | 24,479 | 听 | 75,482 | 听 | ||||||||||
| Total revenues | 2,500,340 | 听 | 2,268,620 | 听 | 3,392,934 | 听 | 3,649,283 | 听 | 11,811,177 | 听 | ||||||||||
| Costs and operating expenses | ||||||||||||||||||||
| Cost of goods sold | 1,243,605 | 1,142,476 | 1,689,041 | 1,769,819 | 5,844,941 | |||||||||||||||
| Selling, general and administrative expenses | 967,082 | 听 | 968,027 | 听 | 1,129,944 | 听 | 1,398,093 | 听 | 4,463,146 | 听 | ||||||||||
| Total costs and operating expenses | 2,210,687 | 听 | 2,110,503 | 听 | 2,818,985 | 听 | 3,167,912 | 听 | 10,308,087 | 听 | ||||||||||
| Operating income | 289,653 | 158,117 | 573,949 | 481,371 | 1,503,090 | |||||||||||||||
| Interest, net | (20,188 | ) | (20,607 | ) | (22,537 | ) | (22,548 | ) | (85,880 | ) | ||||||||||
| Other (expense) income, net | (68 | ) | (1,658 | ) | (335 | ) | 1,346 | 听 | (715 | ) | ||||||||||
| Income from continuing operations before income taxes | 269,397 | 135,852 | 551,077 | 460,169 | 1,416,495 | |||||||||||||||
| Income taxes | 56,121 | 听 | 28,760 | 听 | 77,257 | 听 | 533,148 | 听 | 695,286 | 听 | ||||||||||
| Income (loss) from continuing operations | 213,276 | 107,092 | 473,820 | (72,979 | ) | 721,209 | ||||||||||||||
| Income (loss) from discontinued operations, net of tax | (4,113 | ) | 2,797 | 听 | (87,680 | ) | (17,290 | ) | (106,286 | ) | ||||||||||
| Net income (loss) | $ | 209,163 | 听 | $ | 109,889 | 听 | $ | 386,140 | 听 | $ | (90,269 | ) | $ | 614,923 | 听 | |||||
| Earnings (loss) per common share - basic (b) | ||||||||||||||||||||
| Continuing operations | $ | 0.52 | $ | 0.27 | $ | 1.20 | $ | (0.18 | ) | $ | 1.81 | |||||||||
| Discontinued operations | (0.01 | ) | 0.01 | 听 | (0.22 | ) | (0.04 | ) | (0.27 | ) | ||||||||||
| Total earnings per common share - basic | $ | 0.51 | 听 | $ | 0.28 | 听 | $ | 0.98 | 听 | $ | (0.23 | ) | $ | 1.54 | 听 | |||||
| Earnings (loss) per common share - diluted (b) | ||||||||||||||||||||
| Continuing operations | $ | 0.51 | $ | 0.27 | $ | 1.19 | $ | (0.18 | ) | $ | 1.79 | |||||||||
| Discontinued operations | (0.01 | ) | 0.01 | 听 | (0.22 | ) | (0.04 | ) | (0.26 | ) | ||||||||||
| Total earnings per common share - diluted | $ | 0.50 | 听 | $ | 0.27 | 听 | $ | 0.97 | 听 | $ | (0.23 | ) | $ | 1.52 | 听 | |||||
| Weighted average shares outstanding | ||||||||||||||||||||
| Basic | 411,990 | 397,065 | 393,258 | 394,577 | 399,223 | |||||||||||||||
| Diluted | 415,960 | 400,512 | 397,384 | 400,378 | 403,559 | |||||||||||||||
| Cash dividends per common share | $ | 0.42 | $ | 0.42 | $ | 0.42 | $ | 0.46 | $ | 1.72 | ||||||||||
| 听 | ||||||||||||||||||||
| Basis of presentation of unaudited quarterly Condensed Consolidated Statements of Income: 大象传媒 operates and reports using a 52/53 week fiscal year end ending on the Saturday closest to December 31 of each year. For presentation purposes herein, all references to First Quarter, Second Quarter, Third Quarter, Fourth Quarter and Full Year 2017 relate to the 13-week fiscal periods ended April 1, 2017, July 1, 2017, September 30, 2017, December 30, 2017 and the 52-week fiscal period ended December 30, 2017, respectively. | ||||||||||||||||||||
| 听 | ||||||||||||||||||||
| (a) In order to assist investors in understanding the impact of dispositions on 大象传媒's results of operations, 大象传媒 has presented its 2017 unaudited quarterly Condensed Consolidated Statements of Income to reflect discontinued operations of the licensing and Nautica庐 brand businesses. | ||||||||||||||||||||
| 听 | ||||||||||||||||||||
| (b) Amounts have been calculated using unrounded numbers. | ||||||||||||||||||||
| 听 | ||||||||||||||||||||
| 听 | 听 | 听 | 听 | 听 | 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 |
|||||||||||||||||||||
|
Three Months Ended December |
Twelve Months Ended December |
|||||||||||||||||||||||||||
|
2017 |
2016 |
% |
% Change |
2017 |
2016 |
% |
% Change |
|||||||||||||||||||||
| Coalition revenues | ||||||||||||||||||||||||||||
| Outdoor & Action Sports | $ | 2,500,203 | $ | 2,160,310 | 16 | % | 13 | % | $ | 8,212,456 | $ | 7,618,564 | 8 | % | 7 | % | ||||||||||||
| Jeanswear | 709,411 | 696,515 | 2 | % | 1 | % | 2,655,361 | 2,737,701 | (3 | )% | (3 | )% | ||||||||||||||||
| Imagewear | 406,356 | 147,175 | 176 | % | 176 | % | 830,215 | 551,808 | 50 | % | 50 | % | ||||||||||||||||
| Other | 33,313 | 听 | 33,543 | 听 | (1 | )% | (1 | )% | 113,145 | 听 | 118,074 | 听 | (4 | )% | (4 | )% | ||||||||||||
| Total coalition revenues | $ | 3,649,283 | 听 | $ | 3,037,543 | 听 | 20 | % | 18 | % | $ | 11,811,177 | 听 | $ | 11,026,147 | 听 | 7 | % | 7 | % | ||||||||
| 听 | ||||||||||||||||||||||||||||
| Coalition profit (loss) | ||||||||||||||||||||||||||||
| Outdoor & Action Sports | $ | 486,303 | $ | 391,139 | 24 | % | 25 | % | $ | 1,378,294 | $ | 1,243,201 | 11 | % | 15 | % | ||||||||||||
| Jeanswear | 97,950 | 103,348 | (5 | )% | (9 | )% | 421,945 | 491,912 | (14 | )% | (15 | )% | ||||||||||||||||
| Imagewear | 40,903 | 30,112 | 36 | % | 33 | % | 113,252 | 104,023 | 9 | % | 7 | % | ||||||||||||||||
| Other | 139 | 听 | (1,295 | ) | 111 | % | 111 | % | (3,086 | ) | (4,817 | ) | 36 | % | 36 | % | ||||||||||||
| Total coalition profit | 625,295 | 523,304 | 19 | % | 19 | % | 1,910,405 | 1,834,319 | 4 | % | 7 | % | ||||||||||||||||
| 听 | ||||||||||||||||||||||||||||
| Impairment of goodwill | 鈥� | (79,644 | ) | * | * | 鈥� | (79,644 | ) | * | * | ||||||||||||||||||
| Corporate and other expenses | (142,578 | ) | (160,928 | ) | (11 | )% | (11 | )% | (408,030 | ) | (384,413 | ) | 6 | % | 6 | % | ||||||||||||
| Interest, net | (22,548 | ) | (21,564 | ) | 5 | % | 5 | % | (85,880 | ) | (85,546 | ) | 0 | % | 0 | % | ||||||||||||
| 听 | ||||||||||||||||||||||||||||
|
Income from continuing operations before income taxes |
$ | 460,169 | 听 | $ | 261,168 | 听 | 76 | % | 76 | % | $ | 1,416,495 | 听 | $ | 1,284,716 | 听 | 10 | % | 14 | % | ||||||||
| 听 | ||||||||||||||||||||||||||||
| (a) Refer to currency neutral definition on the following pages. | ||||||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||||||
| * Calculation not meaningful | ||||||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||||||
| 听 | ||||||||||||
| 大象传媒 CORPORATION | ||||||||||||
| Supplemental Financial Information | ||||||||||||
| Business Segment Information 鈥� Currency Neutral Basis | ||||||||||||
| (Unaudited) | ||||||||||||
| (In thousands) | ||||||||||||
| 听 | ||||||||||||
| 听 | ||||||||||||
| Three Months Ended December 2017 | ||||||||||||
| As Reported | 听 | Adjust for Foreign | 听 | |||||||||
| under GAAP | Currency Exchange | Currency Neutral | ||||||||||
| Coalition revenues | ||||||||||||
| Outdoor & Action Sports | $ | 2,500,203 | $ | (53,536 | ) | $ | 2,446,667 | |||||
| Jeanswear | 709,411 | (8,065 | ) | 701,346 | ||||||||
| Imagewear | 406,356 | (435 | ) | 405,921 | ||||||||
| Other | 33,313 | 听 | 鈥� | 听 | 33,313 | 听 | ||||||
| 听 | ||||||||||||
| Total coalition revenues | $ | 3,649,283 | 听 | $ | (62,036 | ) | $ | 3,587,247 | 听 | |||
| Coalition profit (loss) | ||||||||||||
| Outdoor & Action Sports | $ | 486,303 | $ | 3,875 | $ | 490,178 | ||||||
| Jeanswear | 97,950 | (3,464 | ) | 94,486 | ||||||||
| Imagewear | 40,903 | (847 | ) | 40,056 | ||||||||
| Other | 139 | 听 | 鈥� | 听 | 139 | 听 | ||||||
| 听 | ||||||||||||
| Total coalition profit | 625,295 | (436 | ) | 624,859 | ||||||||
| Corporate and other expenses | (142,578 | ) | (662 | ) | (143,240 | ) | ||||||
| Interest, net | (22,548 | ) | 鈥� | 听 | (22,548 | ) | ||||||
| 听 | ||||||||||||
| Income from continuing operations before income taxes | $ | 460,169 | 听 | $ | (1,098 | ) | $ | 459,071 | 听 | |||
| Diluted earnings per share growth | (132 | )% | 0 | % | (132 | )% | ||||||
| 听 | ||||||||||||
| Currency Neutral Financial Information | ||||||||||||
| 听 | ||||||||||||
| 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 both the impact of translating foreign currencies into U.S. dollars and the impact of currency rate changes on foreign currency denominated transactions. 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. | ||||||||||||
| 听 | ||||||||||||
| 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. | ||||||||||||
| 听 | ||||||||||||
| 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 | ||||||||||||
| 听 | ||||||||||||
| 大象传媒 CORPORATION | ||||||||||||
| Supplemental Financial Information | ||||||||||||
| Business Segment Information 鈥� Currency Neutral Basis | ||||||||||||
| (Unaudited) | ||||||||||||
| (In thousands) | ||||||||||||
| 听 | ||||||||||||
| 听 | ||||||||||||
| Twelve Months Ended December 2017 | ||||||||||||
| As Reported | 听 | Adjust for Foreign | 听 | |||||||||
| under GAAP | Currency Exchange | Currency Neutral | ||||||||||
| Coalition revenues | ||||||||||||
| Outdoor & Action Sports | $ | 8,212,456 | $ | (45,711 | ) | $ | 8,166,745 | |||||
| Jeanswear | 2,655,361 | (2,423 | ) | 2,652,938 | ||||||||
| Imagewear | 830,215 | (500 | ) | 829,715 | ||||||||
| Other | 113,145 | 听 | 鈥� | 听 | 113,145 | 听 | ||||||
| 听 | ||||||||||||
| Total coalition revenues | $ | 11,811,177 | 听 | $ | (48,634 | ) | $ | 11,762,543 | 听 | |||
| Coalition profit (loss) | ||||||||||||
| Outdoor & Action Sports | $ | 1,378,294 | $ | 56,907 | $ | 1,435,201 | ||||||
| Jeanswear | 421,945 | (3,886 | ) | 418,059 | ||||||||
| Imagewear | 113,252 | (1,796 | ) | 111,456 | ||||||||
| Other | (3,086 | ) | 鈥� | 听 | (3,086 | ) | ||||||
| 听 | ||||||||||||
| Total coalition profit | 1,910,405 | 51,225 | 1,961,630 | |||||||||
| Corporate and other expenses | (408,030 | ) | 201 | (407,829 | ) | |||||||
| Interest, net | (85,880 | ) | 鈥� | 听 | (85,880 | ) | ||||||
| 听 | ||||||||||||
| Income from continuing operations before income taxes | $ | 1,416,495 | 听 | $ | 51,426 | 听 | $ | 1,467,921 | 听 | |||
| Diluted earnings per share growth | (30 | )% | 4 | % | (26 | )% | ||||||
| 听 | ||||||||||||
| Currency Neutral Financial Information | ||||||||||||
| 听 | ||||||||||||
| 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 both the impact of translating foreign currencies into U.S. dollars and the impact of currency rate changes on foreign currency denominated transactions. 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. | ||||||||||||
| 听 | ||||||||||||
| 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. | ||||||||||||
| 听 | ||||||||||||
| 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 | ||||||||||||
| 听 | 听 | 听 | 听 | 听 | 听 | |||||||||||||||||||
| 大象传媒 CORPORATION | ||||||||||||||||||||||||
| Supplemental Financial Information | ||||||||||||||||||||||||
| Reconciliation of Select 2017 GAAP Measures to Non-GAAP Measures | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||
| Three Months Ended December 2017 |
As Reported under GAAP |
Transaction and |
Impact of |
Adjusted |
Contribution from |
Adjusted |
||||||||||||||||||
| Revenues | $ | 3,649,283 | $ | 鈥� | $ | 鈥� | $ | 3,649,283 | $ | (247,247 | ) | $ | 3,402,036 | |||||||||||
| 听 | ||||||||||||||||||||||||
| Gross profit | 1,879,464 | 3,635 | 鈥� | 1,883,099 | (101,546 | ) | 1,781,553 | |||||||||||||||||
| Percent | 51.5 | % | 51.6 | % | 41.1 | % | 52.4 | % | ||||||||||||||||
| 听 | ||||||||||||||||||||||||
| Operating income | 481,371 | 15,646 | 鈥� | 497,017 | (18,721 | ) | 478,296 | |||||||||||||||||
| Percent | 13.2 | % | 13.6 | % | 7.6 | % | 14.1 | % | ||||||||||||||||
| 听 | ||||||||||||||||||||||||
| Diluted earnings per share from continuing operations (e) | (0.18 | ) | 0.03 | 1.16 | 1.01 | (0.04 | ) | 0.98 | ||||||||||||||||
| 听 | ||||||||||||||||||||||||
| Twelve Months Ended December 2017 |
As Reported under GAAP |
Transaction and |
Impact of |
Adjusted |
Contribution from |
Adjusted |
||||||||||||||||||
| Revenues | $ | 11,811,177 | $ | 鈥� | $ | 鈥� | $ | 11,811,177 | $ | (247,247 | ) | $ | 11,563,930 | |||||||||||
| 听 | ||||||||||||||||||||||||
| Gross profit | 5,966,236 | 3,635 | 鈥� | 5,969,871 | (101,546 | ) | 5,868,325 | |||||||||||||||||
| Percent | 50.5 | % | 50.5 | % | 41.1 | % | 50.7 | % | ||||||||||||||||
| 听 | ||||||||||||||||||||||||
| Operating income | 1,503,090 | 20,535 | 鈥� | 1,523,625 | (18,721 | ) | 1,504,904 | |||||||||||||||||
| Percent | 12.7 | % | 12.9 | % | 7.6 | % | 13.0 | % | ||||||||||||||||
| 听 | ||||||||||||||||||||||||
| Diluted earnings per share from continuing operations (e) | 1.79 | 0.04 | 1.15 | 2.98 | (0.04 | ) | 2.95 | |||||||||||||||||
| 听 | ||||||||||||||||||||||||
| (a) Transaction and deal related costs for the three months ended December 2017 include $15.5 million ($13.8 million after-tax) of expenses related to the Williamson-Dickie Mfg. Co. (鈥淲illiamson-Dickie鈥�) acquisition and integration, $3.6 million ($2.9 million after-tax) of additional cost of goods sold recognized by Williamson-Dickie due to fair value inventory adjustments calculated as part of the purchase price accounting and $3.5 million ($3.1 million after-tax) of net benefit from the hedge of the purchase price and acquisition costs for the Icebreaker Holdings Limited acquisition. The diluted earnings per share impact was calculated using 400,378,000 shares. | ||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||
| (b) On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (鈥淭ax Act鈥�). The Tax Act reduces the federal tax rate on U.S. earnings to 21% and moves from a global taxation regime to a modified territorial regime. As part of the legislation, U.S. companies are required to pay a tax on historical earnings generated offshore that have not been repatriated to the U.S. Additionally, revaluation of deferred tax asset and liability positions at the lower federal base rate of 21% is also required. The transitional impact of the Tax Act resulted in a provisional net charge of $465.5 million for the fourth quarter and full year 2017. The diluted earnings per share impact was calculated using 400,378,000 and 403,559,000 shares for the three and twelve months ended December 2017, respectively. | ||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||
| (c) The contribution from Williamson-Dickie represents the operating results from October 2, 2017 through December 30, 2017, excluding transaction and deal related costs. The income from continuing operations was calculated using a 20% tax rate and the diluted earnings per share impact was calculated using 400,378,000 and 403,559,000 shares for the three and twelve months ended December 2017, respectively. | ||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||
| (d) Transaction and deal related costs for the twelve months ended December 2017 include $20.4 million ($17.1 million after-tax) of expenses related to the Williamson-Dickie acquisition and integration, $3.6 million ($2.9 million after-tax) of additional cost of goods sold recognized by Williamson-Dickie due to fair value inventory adjustments calculated as part of the purchase price accounting and $3.5 million ($3.1 million after-tax) of net benefit from the hedge of the purchase price and acquisition costs for the Icebreaker Holdings Limited acquisition. The diluted earnings per share impact was calculated using 403,559,000 shares. | ||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||
| (e) Amounts shown in the table have been calculated using unrounded numbers. | ||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||
| Non-GAAP Financial Information | ||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||
| The financial information above has been presented on a GAAP basis, on an adjusted basis, which excludes the impact of tax reform and transaction and deal related costs, and on an adjusted organic basis, which excludes the operating results of Williamson-Dickie from October 2, 2017 through December 30, 2017. 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. | ||||||||||||||||||||||||
| 听 | ||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||
| 听 | 听 | 听 | 听 | 听 | ||||||||||||||||
| 大象传媒 CORPORATION | ||||||||||||||||||||
| Supplemental Financial Information | ||||||||||||||||||||
| Reconciliation of Select 2016 GAAP Measures to Non-GAAP Measures | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||||||
| 听 | ||||||||||||||||||||
| 听 | ||||||||||||||||||||
| Three Months Ended December 2016 |
As Reported under GAAP |
Goodwill and |
Restructuring |
Pension Settlement |
Adjusted | |||||||||||||||
| Gross profit | $ | 1,524,456 | $ | 鈥� | $ | 23,275 | $ | 鈥� | $ | 1,547,731 | ||||||||||
| Percent | 50.2 | % | 51.0 | % | ||||||||||||||||
| 听 | ||||||||||||||||||||
| Operating income | 282,426 | 79,644 | 55,019 | 50,922 | 468,011 | |||||||||||||||
| Percent | 9.3 | % | 15.4 | % | ||||||||||||||||
| 听 | ||||||||||||||||||||
|
Diluted earnings per share from continuing |
0.57 | 0.15 | 0.10 | 0.08 | 0.90 | |||||||||||||||
| 听 | ||||||||||||||||||||
| Twelve Months Ended December 2016 |
As Reported under GAAP |
Goodwill and |
Restructuring |
Pension Settlement |
Adjusted | |||||||||||||||
| Gross profit | $ | 5,436,224 | $ | 鈥� | $ | 23,275 | 鈥� | $ | 5,459,499 | |||||||||||
| Percent | 49.3 | % | 49.5 | % | ||||||||||||||||
| 听 | ||||||||||||||||||||
| Operating income | 1,368,260 | 79,644 | 55,019 | 50,922 | 1,553,845 | |||||||||||||||
| Percent | 12.4 | % | 14.1 | % | ||||||||||||||||
| 听 | ||||||||||||||||||||
| Diluted earnings per share from continuing operations (a) (b) | 2.56 | 0.15 | 0.10 | 0.07 | 2.88 | |||||||||||||||
| 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, $13.3 million and $19.5 million, respectively, for the three and twelve month periods ended December 2016. The diluted earnings per share impact was calculated using 417,891,000 and 422,081,000 shares for the three and twelve months ended December 2016, respectively. | ||||||||||||||||||||
| 听 | ||||||||||||||||||||
| (b) Amounts shown in the table have been calculated using unrounded numbers. | ||||||||||||||||||||
| 听 | ||||||||||||||||||||
| Non-GAAP Financial Information | ||||||||||||||||||||
| 听 | ||||||||||||||||||||
| 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. | ||||||||||||||||||||
| 听 | ||||||||||||||||||||
| 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 | ||||||||||||||||||||
| 听 | 听 | |||||
| 大象传媒 CORPORATION | ||||||
| Supplemental Financial Information | ||||||
| Reconciliation of 2017 Results to 2017 Outlook | ||||||
| (Unaudited) | ||||||
| (In thousands, except per share amounts) | ||||||
| 听 | ||||||
| 听 | ||||||
| Twelve Months Ended December 2017 |
As Reported under GAAP |
2017 Outlook Provided |
||||
| Revenues from continuing operations | $ | 11,811,177 | ||||
| Revenues from Nautica庐 discontinued operations (a) | 427,771 | |||||
| Total revenues | $ | 12,238,948 | $ | 12,100,000 | ||
|
听 |
||||||
| Twelve Months Ended December 2017 |
Reconciliation to |
2017 Outlook Provided |
||||
| Reported diluted earnings per share from continuing operations | $ | 1.79 | ||||
| Adjustments to diluted earnings per share from continuing operations: | ||||||
| Transaction and deal related costs (b) | 0.04 | |||||
| Impact of Tax Act (c) | 1.15 | |||||
| Adjusted diluted earnings per share from continuing operations | 2.98 | |||||
| Adjusted diluted earnings per share from Nautica庐 discontinued operations (d) | 0.09 | |||||
| Total adjusted diluted earnings per share | $ | 3.07 | $ | 3.01 | ||
| 听 | ||||||
| (a) The Nautica庐 brand business (鈥�Nautica庐鈥�) met the discontinued operations criteria in the fourth quarter of 2017, and accordingly, is presented as discontinued operations in the Company's financial statements as of and for the year ended December 2017. The Company's adjusted outlook provided to investors in the press release dated October 23, 2017 did not contemplate the presentation of Nautica庐 as discontinued operations. Nautica庐 revenues of $427.8 million are included in the calculation of the loss from discontinued operations, net of tax line item presented on the Company's income statement for the year ended December 2017. | ||||||
| 听 | ||||||
| (b) Transaction and deal related costs for the twelve months ended December 2017 include $20.4 million ($17.1 million after-tax) of expenses related to the Williamson-Dickie acquisition and integration, $3.6 million ($2.9 million after-tax) of additional cost of goods sold recognized by Williamson-Dickie due to fair value inventory adjustments calculated as part of the purchase price accounting and $3.5 million ($3.1 million after-tax) of net benefit from the hedge of the purchase price and acquisition costs for the Icebreaker Holdings Limited acquisition. The diluted earnings per share impact was calculated using 403,559,000 shares. | ||||||
| 听 | ||||||
| (c) On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (鈥淭ax Act鈥�). The Tax Act reduces the federal tax rate on U.S. earnings to 21% and moves from a global taxation regime to a modified territorial regime. As part of the legislation, U.S. companies are required to pay a tax on historical earnings generated offshore that have not been repatriated to the U.S. Additionally, revaluation of deferred tax asset and liability positions at the lower federal base rate of 21% is also required. The transitional impact of the Tax Act resulted in a provisional net charge of $465.5 million for the fourth quarter of 2017. The diluted earnings per share impact was calculated using 403,559,000 shares. | ||||||
| 听 | ||||||
| (d) The full year 2017 results of Nautica庐 are adjusted to exclude $130.2 million of impairment charges recorded in the third and fourth quarters of 2017. The net loss from Nautica庐 included in the calculation of the loss from discontinued operations, net of tax line item presented on the Company's income statement for the year ended December 2017 was $95.2 million. The diluted earnings per share impact was calculated using 403,559,000 shares. | ||||||
| 听 | ||||||
| Non-GAAP Financial Information | ||||||
| 听 | ||||||
| The financial information above has been presented on a GAAP basis and on an adjusted basis, which excludes the impact of U.S. tax reform, transaction and deal related costs and impairment charges to Nautica庐 for the year ended December 2017. 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. | ||||||
| 听 | ||||||
| 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 | ||||||
| 听 | 听 | |||||||||||||||
| 大象传媒 CORPORATION | ||||||||||||||||
| Supplemental Financial Information | ||||||||||||||||
| Top 5 Brand Revenue Information | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| 听 | ||||||||||||||||
| 听 | ||||||||||||||||
| Three Months Ended December 2017 | Twelve Months Ended December 2017 | |||||||||||||||
| Top 5 Brand Revenue Growth | Americas | 听 | EMEA | 听 | APAC | 听 | Global | Americas | 听 | EMEA | 听 | APAC | 听 | Global | ||
| Vans庐 | ||||||||||||||||
|
听听听% change |
39% | 38% | 25% | 37% | 19% | 19% | 23% | 19% | ||||||||
| % change currency neutral* | 38% | 31% | 21% | 35% | 19% | 19% | 24% | 19% | ||||||||
| The North Face庐 | ||||||||||||||||
|
听听听% change |
0% | 38% | 11% | 8% | (3)% | 24% | 3% | 4% | ||||||||
| % change currency neutral* | (1)% | 32% | 8% | 6% | (3)% | 23% | 3% | 3% | ||||||||
| Timberland庐 | ||||||||||||||||
|
听听听% change |
5% | 21% | 7% | 11% | (1)% | 8% | 0% | 2% | ||||||||
| % change currency neutral* | 5% | 14% | 3% | 8% | (1)% | 6% | (2)% | 1% | ||||||||
| Wrangler庐 | ||||||||||||||||
|
听听听% change |
2% | 12% | 0% | 3% | (1)% | 3% | (5)% | (1)% | ||||||||
| % change currency neutral* | 2% | 4% | (7)% | 2% | (1)% | 1% | (8)% | (1)% | ||||||||
| Lee庐 | ||||||||||||||||
|
听听听% change |
0% | 12% | (1)% | 1% | (9)% | 5% | (3)% | (6)% | ||||||||
| % change currency neutral* | (1)% | 4% | (5)% | (1)% | (9)% | 3% | (2)% | (6)% | ||||||||
| 听 | ||||||||||||||||
| *Refer to currency neutral definition on previous pages. | ||||||||||||||||
| 听 | ||||||||||||||||
| 听 | 听 | |||||||||||
| 大象传媒 CORPORATION | ||||||||||||
| Supplemental Financial Information | ||||||||||||
| Geographic and Channel Revenue Information | ||||||||||||
| (Unaudited) | ||||||||||||
| 听 | ||||||||||||
| 听 | ||||||||||||
|
Three Months Ended December 2017 |
Twelve Months Ended December 2017 |
|||||||||||
| % Change | 听 |
% Change |
听 |
% Change |
% Change | 听 |
% Change |
听 |
% Change |
|||
|
Geographic Revenue Growth |
||||||||||||
| U.S. | 15% | 15% | 7% | 4% | 4% | 1% | ||||||
| EMEA | 33% | 26% | 20% | 15% | 13% | 11% | ||||||
| APAC | 17% | 13% | 6% | 6% | 6% | 4% | ||||||
| China | 23% | 19% | 10% | 10% | 11% | 8% | ||||||
| Americas (non-U.S.) | 35% | 31% | 15% | 13% | 12% | 8% | ||||||
| International | 29% | 23% | 15% | 12% | 11% | 9% | ||||||
| 听 | ||||||||||||
|
Three Months Ended |
Twelve Months Ended December 2017 |
|||||||||||
| % Change |
% Change |
% Change |
% Change |
% Change |
% Change |
|||||||
|
Channel Revenue Growth |
||||||||||||
| Wholesale | 19% | 17% | 6% | 3% | 3% | 0% | ||||||
| Direct-to-Consumer | 22% | 20% | 16% | 17% | 16% | 15% | ||||||
| 听 | ||||||||||||
| As of December | ||||||||||||
| 2017 (b) | 2016 | |||||||||||
|
DTC Store Count |
||||||||||||
| Total | 1,518 | 1,433 | ||||||||||
| 听 | ||||||||||||
| *Refer to currency neutral definition on previous pages. | ||||||||||||
| (a) Refer to Non-GAAP financial information on "Reconciliation of Select GAAP Measures to Non-GAAP Measures" page. | ||||||||||||
| (b) The 2017 DTC store count includes 79 Williamson-Dickie stores. | ||||||||||||
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