乱伦巴士 Corporation Reports Balanced Performance in Second Quarter and Revises Full Year Fiscal 2023 Outlook
DENVER--(BUSINESS WIRE)-- 乱伦巴士 Corporation (NYSE: 乱伦巴士C) today announced financial results for its second quarter (Q2'FY23) ended October 1, 2022.
Q2'FY23 Financial Highlights
- Revenue $3.1 billion, declined 4% (up 2% in constant dollars) with big four brands down 5% (up 1% in constant dollars) and the balance of the portfolio up 4% (up 13% in constant dollars)
- The North Face庐 revenue $1.0 billion, up 8% (up 14% in constant dollars)
- Vans庐 revenue $1.0 billion, down 13% (down 8% in constant dollars)
- Gross margin 51.4%, down 230 basis points; Adjusted gross margin 51.5%, down 240 basis points
- Operating margin (2.9)%, down 2,040 basis points; Adjusted operating margin 12.3%, down 440 basis points
- Earnings (loss) per share (EPS) $(0.31), down 126%; Adjusted EPS $0.73, down 34%
- Return of $194 million to shareholders through cash dividends
H1'FY23 Financial Highlights
- Revenue $5.3 billion, down 1% (up 4% in constant dollars) with big four brands down 2% (up 3% in constant dollars) and the balance of the portfolio increasing 6% (up 14% in constant dollars)
- The North Face庐 revenue $1.4 billion, up 15% (up 21% in constant dollars)
- Vans庐 revenue $1.9 billion, down 10% (down 6% in constant dollars)
- Gross margin 52.4%, down 240 basis points; Adjusted gross margin 52.6%, down 250 basis points
- Operating margin (0.5)%, down 1,460 basis points; Adjusted operating margin 8.5%, down 420 basis points
- Earnings (loss) per share $(0.45), down 129%; Adjusted EPS $0.81, down 41%
- Return of $388 million to shareholders through cash dividends
FY23 Financial Outlook
- 乱伦巴士 is maintaining its constant dollar revenue outlook but revising its earnings outlook to reflect increased negative impacts from foreign currency fluctuations as well as heightened inventory levels and increased promotional activity in the marketplace
- Total 乱伦巴士 revenue up 5% to 6% in constant dollars, unchanged from the previous outlook
- Adjusted gross margin down 100 to 150 basis points, compared to the previous outlook of down 50 basis points
- Adjusted operating margin 11.0%, compared to the previous outlook of approximately 12.0%
- Adjusted EPS is now expected to be in the range of $2.40 to $2.50, versus $3.18 in the prior year and compared to the previous outlook of $2.60 to $2.70
- Adjusted cash flow from operations at least $0.9 billion, compared to the previous outlook of $1.0 billion; Capital expenditures approximately $230 million versus the previous outlook of $240 million
- Excludes the impact of an $876 million payment 乱伦巴士 made on October 19, 2022 to the Internal Revenue Service (IRS) for the dispute regarding the timing of income inclusion associated with 乱伦巴士's acquisition of Timberland in 2011, as previously disclosed
- 乱伦巴士's FY23 outlook assumes the following:
- No additional significant COVID-19 related lockdowns in any key commercial or production regions
- No significant worsening in global inflation rates and consumer sentiment
Steve Rendle, Chairman, President and CEO of 乱伦巴士 said:
"乱伦巴士鈥檚 balanced performance in Q2 demonstrates the resiliency of our brand portfolio against a more disrupted global marketplace. Our purpose built portfolio of iconic, deeply-loved brands continues to benefit from tailwinds in the outdoor, active, streetwear and workwear spaces while we also actively address the near-term challenges at Vans, the ongoing COVID-related disruption in China, and the broader macro-economic and geopolitical headwinds, which have created tremendous uncertainty for all businesses and consumers.
In the near term, in light of the challenging environment, we are acting proactively to generate increased revenue through the balance of the year while protecting profitability by tightly controlling all non-strategic spend. I am confident in our ability to deliver on our targets and to maximize the potential of all our brands when the environment improves. We will remain focused on the things we can control and will continue leveraging 乱伦巴士鈥檚 unique business model and competitive strengths to drive consistent, sustainable and profitable growth."
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Summary Revenue Information (Unaudited) |
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Three Months Ended September |
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Six Months Ended September |
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(Dollars in millions) |
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2022 |
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2021 |
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% Change |
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% Change (constant currency) |
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2022 |
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2021 |
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% Change |
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% Change (constant currency) |
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Brand: |
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Vans庐 |
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$ |
952.1 |
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$ |
1,090.3 |
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(13 |
)% |
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(8 |
)% |
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$ |
1,899.0 |
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$ |
2,110.2 |
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(10 |
)% |
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(6 |
)% |
|
The North Face庐 |
听 |
听 |
950.8 |
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听 |
883.7 |
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8 |
% |
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14 |
% |
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1,431.9 |
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1,249.9 |
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15 |
% |
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21 |
% |
|
Timberland庐 |
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524.2 |
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545.4 |
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(4 |
)% |
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3 |
% |
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793.6 |
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794.8 |
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鈥� |
% |
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7 |
% |
|
Dickies庐 |
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186.4 |
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230.0 |
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(19 |
)% |
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(15 |
)% |
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356.8 |
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429.3 |
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(17 |
)% |
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(14 |
)% |
|
Other Brands |
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467.1 |
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448.7 |
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4 |
% |
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13 |
% |
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860.9 |
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808.5 |
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6 |
% |
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14 |
% |
|
乱伦巴士 Revenue |
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$ |
3,080.6 |
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$ |
3,198.2 |
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(4 |
)% |
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2 |
% |
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$ |
5,342.2 |
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$ |
5,392.8 |
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(1 |
)% |
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4 |
% |
|
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Region: |
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Americas |
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$ |
1,754.1 |
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$ |
1,807.1 |
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(3 |
)% |
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(3 |
)% |
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$ |
3,139.2 |
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$ |
3,109.0 |
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1 |
% |
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1 |
% |
|
EMEA |
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932.4 |
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972.6 |
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(4 |
)% |
听 |
12 |
% |
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1,527.0 |
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1,512.6 |
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1 |
% |
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16 |
% |
|
APAC |
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394.0 |
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418.5 |
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(6 |
)% |
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2 |
% |
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676.0 |
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771.2 |
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(12 |
)% |
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(6 |
)% |
|
乱伦巴士 Revenue |
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$ |
3,080.6 |
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$ |
3,198.2 |
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(4 |
)% |
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2 |
% |
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$ |
5,342.2 |
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$ |
5,392.8 |
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(1 |
)% |
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4 |
% |
|
International |
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$ |
1,511.4 |
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$ |
1,583.0 |
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(5 |
)% |
听 |
8 |
% |
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$ |
2,503.4 |
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$ |
2,581.0 |
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(3 |
)% |
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8 |
% |
|
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Channel: |
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DTC |
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$ |
1,146.1 |
听 |
$ |
1,192.1 |
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(4 |
)% |
听 |
1 |
% |
听 |
$ |
2,145.2 |
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$ |
2,265.8 |
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(5 |
)% |
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(1 |
)% |
|
Wholesale (a) |
听 |
听 |
1,934.5 |
听 |
听 |
2,006.2 |
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(4 |
)% |
听 |
3 |
% |
听 |
听 |
3,197.0 |
听 |
听 |
3,127.0 |
听 |
2 |
% |
听 |
8 |
% |
|
乱伦巴士 Revenue |
听 |
$ |
3,080.6 |
听 |
$ |
3,198.2 |
听 |
(4 |
)% |
听 |
2 |
% |
听 |
$ |
5,342.2 |
听 |
$ |
5,392.8 |
听 |
(1 |
)% |
听 |
4 |
% |
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All references to periods ended September 2022 relate to the 13-week and 26-week fiscal periods ended October 1, 2022 and all references to periods ended September 2021 relate to the 13-week and 26-week fiscal periods ended October 2, 2021. |
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Note: Amounts may not sum due to rounding |
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(a) Royalty revenues are included in the wholesale channel for all periods. |
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All per share amounts are presented on a diluted basis. This release refers to 鈥渞eported鈥� and 鈥渃onstant dollar鈥� amounts, terms that are described under the heading below 鈥淐onstant Currency - Excluding the Impact of Foreign Currency.鈥� Unless otherwise noted, 鈥渞eported鈥� and 鈥渃onstant dollar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 below 鈥淒iscontinued Operations - Occupational Workwear Business.鈥� Unless otherwise noted, results presented are based on continuing operations. This release also refers to 鈥渁djusted鈥� amounts, a term that is described under the heading below 鈥淎djusted Amounts - Excluding Transaction and Deal Related Activities, Costs Related to Specified Strategic Business Decisions, Noncash Impairment Charges and Pension Settlement Charge.鈥� Unless otherwise noted, 鈥渞eported鈥� and 鈥渁djusted鈥� amounts are the same.
Second Quarter Fiscal 2023 Income Statement Review
- Revenue decreased 4% (up 2% in constant dollars) to $3.1 billion driven by increases in the EMEA and APAC regions partially offset by lower sales in the Americas region.
- Gross margin decreased 230 basis points to 51.4%, primarily driven by higher costs and promotional activity partially offset by price increases. On an adjusted basis, gross margin decreased 240 basis points to 51.5%.
- Operating income (loss) on a reported basis was $(90.8) million. Operating margin on a reported basis was (2.9)%. On an adjusted basis, operating income decreased 29% (down 22% in constant dollars) to $378.7 million. Adjusted operating margin decreased 440 basis points to 12.3%.
- Earnings (loss) per share was $(0.31) on a reported basis. On an adjusted basis, earnings per share decreased 34% (down 27% in constant dollars) to $0.73.
COVID-19 Update
To help mitigate the spread of COVID-19 and in response to public health advisories and governmental actions and regulations, 乱伦巴士 has modified its business practices in certain locations, including the temporary closing of offices and retail stores, instituting travel bans and restrictions and implementing health and safety measures including social distancing and quarantines.
The majority of 乱伦巴士's supply chain is currently operational. Raw material suppliers in China are currently operational, though the 8-week lockdown in China during 乱伦巴士's first quarter resulted in logistics challenges which continue to contribute to ongoing product delays. Suppliers are complying with local public health advisories and governmental restrictions. Most final product manufacturing and assembly suppliers are largely back to normal operating levels. 乱伦巴士 is working with its suppliers to minimize disruption and is employing expedited freight strategically as needed. 乱伦巴士's distribution centers are operational in accordance with local government guidelines while maintaining enhanced health and safety protocols.
In North America, no stores were closed during the second quarter. Currently, all stores are open.
In the EMEA region, no stores were closed during the second quarter due to COVID-19. Currently, all stores are open.
In the APAC region, including Mainland China, no stores were closed at the beginning of the second quarter with a peak of 7% of stores (including partner doors) closed and an average of 3% of stores closed throughout the quarter. At the end of the second quarter, 4% of stores were closed and, as of today, 7% of stores are closed.
乱伦巴士 is continuing to monitor the evolution of COVID-19 globally and will comply with guidance from government entities and public health authorities to prioritize the health and well-being of its employees, customers, trade partners and consumers.
Balance Sheet Highlights
Inventories were up 88% compared with the same period last year, partially driven by an increase of in-transit inventory of approximately $510 million as 乱伦巴士 modified terms with the majority of its suppliers in the first quarter of fiscal 2023 to take ownership of inventory at point of shipment rather than destination. Accounts payable increased 91%, which was largely driven by the increase of in-transit inventory. 乱伦巴士 returned approximately $194 million of cash to shareholders through dividends during the quarter.
Dividend Declared
乱伦巴士鈥檚 Board of Directors declared a quarterly dividend of $0.51 per share, reflecting a 2% increase over the previous quarter鈥檚 dividend. This dividend will be payable on December 20, 2022, to shareholders of record at the close of business on December 12, 2022. Subject to approval by its Board of Directors, 乱伦巴士 intends to continue to pay its regularly scheduled cash dividend.
Webcast Information
乱伦巴士 will host its second quarter fiscal 2023 conference call beginning at 4:30 p.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.
Presentation
A presentation on second quarter fiscal 2023 results will be available at today before the conference call and will be archived at the same location.
About 乱伦巴士
Founded in 1899, 乱伦巴士 Corporation is one of the world鈥檚 largest apparel, footwear and accessories companies connecting people to the lifestyles, activities and experiences they cherish most through a family of iconic outdoor, active and workwear brands including Vans庐, The North Face庐, Timberland庐 and Dickies庐. Our purpose is to power movements of sustainable and active lifestyles for the betterment of people and our planet. We connect this purpose with a relentless drive to succeed to create value for all stakeholders and use our company as a force for good. For more information, please visit vfc.com.
Constant Currency - 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onstant dollar鈥� amounts, which exclude the impact of translating foreign currencies into U.S. dollars. Reconciliations of GAAP measures to constant currency 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 - Occupational Workwear Business
On June 28, 2021, 乱伦巴士 completed the sale of its Occupational Workwear business. The Occupational Workwear business was comprised primarily of the following brands and businesses: Red Kap庐, 乱伦巴士 Solutions庐, Bulwark庐, Workrite庐, Walls庐, Terra庐, Kodiak庐, Work Authority庐 and Horace Small庐. The business also included a license for certain Dickies庐 occupational workwear products that were historically sold through the business-to-business channel. Accordingly, the company has reported the operating results and cash flows of the business in discontinued operations for all periods through the date of sale.
Adjusted Amounts - Excluding Transaction and Deal Related Activities, Costs Related to Specified Strategic Business Decisions, Noncash Impairment Charges and Pension Settlement Charge
The adjusted amounts in this release exclude transaction and deal related activities associated with the acquisition of the Supreme庐 brand. Total transaction and deal related activities include integration costs of approximately $0.3 million in the first six months of fiscal 2023.
The adjusted amounts in this release exclude costs related to 乱伦巴士's business model transformation primarily driven by Corporate actions and resulting restructuring costs, and a transformation initiative for our Asia-Pacific regional operations. Total costs were approximately $48 million in the second quarter of fiscal 2023 and $61 million in the first six months of fiscal 2023.
The adjusted amounts in this release exclude noncash impairment charges related to the Supreme庐 reporting unit goodwill and indefinite-lived trademark intangible asset of approximately $422 million in the second quarter and first six months of fiscal 2023. The impairment charges were driven by non-operating factors including higher interest rates and foreign currency fluctuations.
The adjusted amounts in this release exclude a noncash pension settlement charge. The pension settlement charge resulted from the purchase of a group annuity contract, which was an action taken to streamline administration, manage financial risk associated with pension plans, and to transfer a portion of the liability associated with 乱伦巴士's U.S. pension plan to an insurance company. Total expense was approximately $92 million in the first six months of fiscal 2023.
Combined, the above items negatively impacted earnings per share by $1.04 during the second quarter of fiscal 2023 and $1.26 during the first six months of fiscal 2023. 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. The company also provides guidance on a non-GAAP basis as we cannot predict certain elements which are included in reported GAAP results. Additionally, the impact of the payment of taxes and interest related to the dispute with the IRS regarding the Timberland acquisition in 2011 has been excluded from fiscal 2023 adjusted cash flow from operations.
Forward-looking Statements
Certain statements included in this release 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 乱伦巴士 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, however, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements regarding 乱伦巴士鈥檚 plans, objectives, projections and expectations relating to 乱伦巴士鈥檚 operations or financial performance, and assumptions related thereto are forward-looking statements. 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. 乱伦巴士 undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Potential risks and uncertainties that could cause the actual results of operations or financial condition of 乱伦巴士 to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: risks arising from the widespread outbreak of an illness or any other communicable disease, or any other public health crisis, including the coronavirus (COVID-19) global pandemic; the level of consumer demand for apparel, footwear and accessories; disruption to 乱伦巴士鈥檚 distribution system; changes in global economic conditions and the financial strength of 乱伦巴士鈥檚 customers, including as a result of current inflationary pressures; fluctuations in the price, availability and quality of raw materials and contracted products; disruption and volatility in the global capital and credit markets; 乱伦巴士鈥檚 response to changing fashion trends, evolving consumer preferences and changing patterns of consumer behavior; intense competition from online retailers and other direct-to-consumer business risks; third-party manufacturing and product innovation; increasing pressure on margins; 乱伦巴士鈥檚 ability to implement its business strategy; 乱伦巴士鈥檚 ability to grow its international, direct-to-consumer and digital businesses; 乱伦巴士鈥檚 ability to transform its model to be more consumer-minded, retail-centric and hyper-digital; retail industry changes and challenges; 乱伦巴士鈥檚 ability to create and maintain an agile and efficient operating model and organizational structure; 乱伦巴士鈥檚 and its vendors鈥� ability to maintain the strength and security of information technology systems; the risk that 乱伦巴士鈥檚 facilities and systems and those of our third-party service providers may be vulnerable to and unable to anticipate or detect data or information security breaches and data or financial loss; 乱伦巴士鈥檚 ability to properly collect, use, manage and secure business, consumer and employee data and comply with privacy and security regulations; foreign currency fluctuations; stability of 乱伦巴士鈥檚 vendors鈥� manufacturing facilities and 乱伦巴士鈥檚 ability to establish and maintain effective supply chain capabilities; continued use by 乱伦巴士鈥檚 suppliers of ethical business practices; 乱伦巴士鈥檚 ability to accurately forecast demand for products; continuity of members of 乱伦巴士鈥檚 management; 乱伦巴士鈥檚 ability to recruit, develop or retain qualified employees; 乱伦巴士鈥檚 ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment such as the recent impairment charges related to the Supreme庐 reporting unit goodwill and indefinite-lived trademark intangible asset; maintenance by 乱伦巴士鈥檚 licensees and distributors of the value of 乱伦巴士鈥檚 brands; 乱伦巴士鈥檚 ability to execute acquisitions and dispositions and integrate acquisitions; business resiliency in response to natural or man-made economic, political or environmental disruptions; changes in tax laws and additional tax liabilities, including for the timing of income inclusion associated with our acquisition of the Timberland庐 brand in 2011; legal, regulatory, political, economic, and geopolitical risks, including those related to the current conflict in Ukraine; changes to laws and regulations; adverse or unexpected weather conditions; 乱伦巴士's indebtedness and its ability to obtain financing on favorable terms, if needed, could prevent 乱伦巴士 from fulfilling its financial obligations; climate change and increased focus on environmental, social and governance issues; and tax risks associated with the spin-off of our Jeanswear business completed in 2019. More information on potential factors that could affect 乱伦巴士鈥檚 financial results is included from time to time in 乱伦巴士鈥檚 public reports filed with the SEC, including 乱伦巴士鈥檚 Annual Report on Form 10-K, and Quarterly Reports on Form 10-Q, and Forms 8-K filed or furnished with the SEC.
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乱伦巴士 CORPORATION Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) |
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|
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|
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Three Months Ended September |
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Six Months Ended September |
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|
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2022 |
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2021 |
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2022 |
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2021 |
听 |
听 |
|
Net revenues |
听 |
$ |
3,080,600 |
听 |
听 |
$ |
3,198,235 |
听 |
听 |
$ |
5,342,195 |
听 |
听 |
$ |
5,392,792 |
听 |
听 |
|
Costs and operating expenses |
听 |
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听 |
听 |
听 |
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听 |
||||||||
|
Cost of goods sold |
听 |
听 |
1,498,177 |
听 |
听 |
听 |
1,479,446 |
听 |
听 |
听 |
2,541,159 |
听 |
听 |
听 |
2,434,997 |
听 |
听 |
|
Selling, general and administrative expenses |
听 |
听 |
1,251,320 |
听 |
听 |
听 |
1,160,303 |
听 |
听 |
听 |
2,406,571 |
听 |
听 |
听 |
2,196,425 |
听 |
听 |
|
Impairment of goodwill and intangible assets |
听 |
听 |
421,922 |
听 |
听 |
听 |
鈥� |
听 |
听 |
听 |
421,922 |
听 |
听 |
听 |
鈥� |
听 |
听 |
|
Total costs and operating expenses |
听 |
听 |
3,171,419 |
听 |
听 |
听 |
2,639,749 |
听 |
听 |
听 |
5,369,652 |
听 |
听 |
听 |
4,631,422 |
听 |
听 |
|
Operating income (loss) |
听 |
听 |
(90,819 |
) |
听 |
听 |
558,486 |
听 |
听 |
听 |
(27,457 |
) |
听 |
听 |
761,370 |
听 |
听 |
|
Interest expense, net |
听 |
听 |
(33,903 |
) |
听 |
听 |
(34,370 |
) |
听 |
听 |
(65,165 |
) |
听 |
听 |
(67,145 |
) |
听 |
|
Other income (expense), net |
听 |
听 |
(9,280 |
) |
听 |
听 |
7,549 |
听 |
听 |
听 |
(103,994 |
) |
听 |
听 |
16,590 |
听 |
听 |
|
Income (loss) from continuing operations before income taxes |
听 |
听 |
(134,002 |
) |
听 |
听 |
531,665 |
听 |
听 |
听 |
(196,616 |
) |
听 |
听 |
710,815 |
听 |
听 |
|
Income tax expense (benefit) |
听 |
听 |
(15,570 |
) |
听 |
听 |
67,612 |
听 |
听 |
听 |
(22,224 |
) |
听 |
听 |
92,790 |
听 |
听 |
|
Income (loss) from continuing operations |
听 |
听 |
(118,432 |
) |
听 |
听 |
464,053 |
听 |
听 |
听 |
(174,392 |
) |
听 |
听 |
618,025 |
听 |
听 |
|
Income from discontinued operations, net of tax |
听 |
听 |
鈥� |
听 |
听 |
听 |
鈥� |
听 |
听 |
听 |
鈥� |
听 |
听 |
听 |
170,273 |
听 |
听 |
|
Net income (loss) |
听 |
$ |
(118,432 |
) |
听 |
$ |
464,053 |
听 |
听 |
$ |
(174,392 |
) |
听 |
$ |
788,298 |
听 |
听 |
|
Earnings (loss) per common share - basic (a) |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||
|
Continuing operations |
听 |
$ |
(0.31 |
) |
听 |
$ |
1.18 |
听 |
听 |
$ |
(0.45 |
) |
听 |
$ |
1.58 |
听 |
听 |
|
Discontinued operations |
听 |
听 |
鈥� |
听 |
听 |
听 |
鈥� |
听 |
听 |
听 |
鈥� |
听 |
听 |
听 |
0.43 |
听 |
听 |
|
Total earnings (loss) per common share - basic |
听 |
$ |
(0.31 |
) |
听 |
$ |
1.18 |
听 |
听 |
$ |
(0.45 |
) |
听 |
$ |
2.01 |
听 |
听 |
|
Earnings (loss) per common share - diluted (a) |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||
|
Continuing operations |
听 |
$ |
(0.31 |
) |
听 |
$ |
1.18 |
听 |
听 |
$ |
(0.45 |
) |
听 |
$ |
1.57 |
听 |
听 |
|
Discontinued operations |
听 |
听 |
鈥� |
听 |
听 |
听 |
鈥� |
听 |
听 |
听 |
鈥� |
听 |
听 |
听 |
0.43 |
听 |
听 |
|
Total earnings (loss) per common share - diluted |
听 |
$ |
(0.31 |
) |
听 |
$ |
1.18 |
听 |
听 |
$ |
(0.45 |
) |
听 |
$ |
2.00 |
听 |
听 |
|
Weighted average shares outstanding |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||
|
Basic |
听 |
听 |
387,688 |
听 |
听 |
听 |
391,779 |
听 |
听 |
听 |
387,625 |
听 |
听 |
听 |
391,565 |
听 |
听 |
|
Diluted |
听 |
听 |
387,688 |
听 |
听 |
听 |
394,017 |
听 |
听 |
听 |
387,625 |
听 |
听 |
听 |
394,072 |
听 |
听 |
|
Cash dividends per common share |
听 |
$ |
0.50 |
听 |
听 |
$ |
0.49 |
听 |
听 |
$ |
1.00 |
听 |
听 |
$ |
0.98 |
听 |
听 |
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||
|
Basis of presentation of condensed consolidated financial statements: 乱伦巴士 operates and reports using a 52/53 week fiscal year ending on the Saturday closest to March 31 of each year. For presentation purposes herein, all references to periods ended September 2022 relate to the 13-week and 26-week fiscal periods ended October 1, 2022 and all references to periods ended September 2021 relate to the 13-week and 26-week fiscal periods ended October 2, 2021. References to March 2022 relate to information as of April 2, 2022. |
|||||||||||||||||
|
(a) Amounts have been calculated using unrounded numbers. |
听 |
听 |
听 |
听 |
|||||||||||||
|
乱伦巴士 CORPORATION
Condensed Consolidated Balance Sheets (Unaudited) (In thousands) |
|||||||||
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
|||
|
听 |
听 |
September |
听 |
March |
听 |
September |
|||
|
听 |
听 |
2022 |
听 |
2022 |
听 |
2021 |
|||
|
ASSETS |
听 |
听 |
听 |
听 |
听 |
听 |
|||
|
Current assets |
听 |
听 |
听 |
听 |
听 |
听 |
|||
|
Cash and equivalents |
听 |
$ |
552,811 |
听 |
$ |
1,275,943 |
听 |
$ |
1,360,138 |
|
Accounts receivable, net |
听 |
听 |
1,834,598 |
听 |
听 |
1,467,842 |
听 |
听 |
1,787,331 |
|
Inventories |
听 |
听 |
2,749,894 |
听 |
听 |
1,418,673 |
听 |
听 |
1,464,714 |
|
Other current assets |
听 |
听 |
550,940 |
听 |
听 |
425,622 |
听 |
听 |
357,687 |
|
Total current assets |
听 |
听 |
5,688,243 |
听 |
听 |
4,588,080 |
听 |
听 |
4,969,870 |
|
Property, plant and equipment, net |
听 |
听 |
984,115 |
听 |
听 |
1,041,777 |
听 |
听 |
1,011,415 |
|
Goodwill and intangible assets, net |
听 |
听 |
4,878,722 |
听 |
听 |
5,394,158 |
听 |
听 |
5,434,009 |
|
Operating lease right-of-use assets |
听 |
听 |
1,217,172 |
听 |
听 |
1,247,056 |
听 |
听 |
1,380,106 |
|
Other assets |
听 |
听 |
1,015,890 |
听 |
听 |
1,071,137 |
听 |
听 |
1,093,687 |
|
Total assets |
听 |
$ |
13,784,142 |
听 |
$ |
13,342,208 |
听 |
$ |
13,889,087 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
听 |
听 |
听 |
听 |
听 |
听 |
|||
|
Current liabilities |
听 |
听 |
听 |
听 |
听 |
听 |
|||
|
Short-term borrowings |
听 |
$ |
1,692,745 |
听 |
$ |
335,462 |
听 |
$ |
10,173 |
|
Current portion of long-term debt |
听 |
听 |
832,136 |
听 |
听 |
501,051 |
听 |
听 |
1,001,037 |
|
Accounts payable |
听 |
听 |
1,022,408 |
听 |
听 |
562,992 |
听 |
听 |
534,365 |
|
Accrued liabilities |
听 |
听 |
1,798,702 |
听 |
听 |
1,915,892 |
听 |
听 |
1,838,790 |
|
Total current liabilities |
听 |
听 |
5,345,991 |
听 |
听 |
3,315,397 |
听 |
听 |
3,384,365 |
|
Long-term debt |
听 |
听 |
3,526,101 |
听 |
听 |
4,584,261 |
听 |
听 |
4,682,751 |
|
Operating lease liabilities |
听 |
听 |
1,022,451 |
听 |
听 |
1,023,759 |
听 |
听 |
1,146,944 |
|
Other liabilities |
听 |
听 |
803,963 |
听 |
听 |
888,436 |
听 |
听 |
1,076,546 |
|
Total liabilities |
听 |
听 |
10,698,506 |
听 |
听 |
9,811,853 |
听 |
听 |
10,290,606 |
|
Stockholders' equity |
听 |
听 |
3,085,636 |
听 |
听 |
3,530,355 |
听 |
听 |
3,598,481 |
|
Total liabilities and stockholders' equity |
听 |
$ |
13,784,142 |
听 |
$ |
13,342,208 |
听 |
$ |
13,889,087 |
|
听 |
|||||||||
|
乱伦巴士 CORPORATION
Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) 听 |
||||||||
|
听 |
听 |
听 |
||||||
|
听 |
听 |
Six Months Ended September |
||||||
|
听 |
听 |
听 |
2022 |
听 |
听 |
听 |
2021 |
听 |
|
Operating activities |
听 |
听 |
听 |
听 |
||||
|
Net income (loss) |
听 |
$ |
(174,392 |
) |
听 |
$ |
788,298 |
听 |
|
Income from discontinued operations, net of tax |
听 |
听 |
鈥� |
听 |
听 |
听 |
170,273 |
听 |
|
Income (loss) from continuing operations, net of tax |
听 |
听 |
(174,392 |
) |
听 |
听 |
618,025 |
听 |
|
Impairment of goodwill and intangible assets |
听 |
听 |
421,922 |
听 |
听 |
听 |
鈥� |
听 |
|
Depreciation and amortization |
听 |
听 |
130,623 |
听 |
听 |
听 |
134,553 |
听 |
|
Reduction in the carrying amount of right-of-use assets |
听 |
听 |
185,880 |
听 |
听 |
听 |
208,687 |
听 |
|
Other adjustments |
听 |
听 |
(1,477,990 |
) |
听 |
听 |
(1,138,492 |
) |
|
Cash used by operating activities - continuing operations |
听 |
听 |
(913,957 |
) |
听 |
听 |
(177,227 |
) |
|
Cash provided by operating activities - discontinued operations |
听 |
听 |
鈥� |
听 |
听 |
听 |
6,090 |
听 |
|
Cash used by operating activities |
听 |
听 |
(913,957 |
) |
听 |
听 |
(171,137 |
) |
|
Investing activities |
听 |
听 |
听 |
听 |
||||
|
Business acquisitions, net of cash received |
听 |
听 |
鈥� |
听 |
听 |
听 |
3,760 |
听 |
|
Proceeds from sale of businesses, net of cash sold |
听 |
听 |
鈥� |
听 |
听 |
听 |
616,529 |
听 |
|
Proceeds from sale of short-term investments |
听 |
听 |
鈥� |
听 |
听 |
听 |
598,806 |
听 |
|
Capital expenditures |
听 |
听 |
(89,958 |
) |
听 |
听 |
(144,582 |
) |
|
Software purchases |
听 |
听 |
(47,858 |
) |
听 |
听 |
(42,119 |
) |
|
Other, net |
听 |
听 |
6,112 |
听 |
听 |
听 |
20,491 |
听 |
|
Cash provided (used) by investing activities - continuing operations |
听 |
听 |
(131,704 |
) |
听 |
听 |
1,052,885 |
听 |
|
Cash used by investing activities - discontinued operations |
听 |
听 |
鈥� |
听 |
听 |
听 |
(525 |
) |
|
Cash provided (used) by investing activities |
听 |
听 |
(131,704 |
) |
听 |
听 |
1,052,360 |
听 |
|
Financing activities |
听 |
听 |
听 |
听 |
||||
|
Contingent consideration payment |
听 |
听 |
(56,976 |
) |
听 |
听 |
鈥� |
听 |
|
Net increase (decrease) from short-term borrowings and long-term debt |
听 |
听 |
855,955 |
听 |
听 |
听 |
(1,397 |
) |
|
Cash dividends paid |
听 |
听 |
(388,284 |
) |
听 |
听 |
(384,427 |
) |
|
Proceeds from issuance of Common Stock, net of (payments) for tax withholdings |
听 |
听 |
(1,931 |
) |
听 |
听 |
25,971 |
听 |
|
Cash provided (used) by financing activities |
听 |
听 |
408,764 |
听 |
听 |
听 |
(359,853 |
) |
|
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash |
听 |
听 |
(85,888 |
) |
听 |
听 |
(10,958 |
) |
|
Net change in cash, cash equivalents and restricted cash |
听 |
听 |
(722,785 |
) |
听 |
听 |
510,412 |
听 |
|
Cash, cash equivalents and restricted cash 鈥� beginning of year |
听 |
听 |
1,277,082 |
听 |
听 |
听 |
851,205 |
听 |
|
Cash, cash equivalents and restricted cash 鈥� end of period |
听 |
$ |
554,297 |
听 |
听 |
$ |
1,361,617 |
听 |
|
乱伦巴士 CORPORATION
Supplemental Financial Information Reportable Segment Information (Unaudited) (In thousands) |
||||||||||||
| 听 | ||||||||||||
|
听 |
Three Months Ended September |
听 |
% Change Constant |
|||||||||
|
听 |
2022 |
2021 |
% Change | Currency (a) | ||||||||
|
Segment revenues |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||
|
Outdoor |
$ |
1,555,328 |
听 |
$ |
1,506,621 |
听 |
3% |
10% |
||||
|
Active |
听 |
1,260,110 |
听 |
听 |
1,392,173 |
听 |
(9)% |
(4)% |
||||
|
Work |
听 |
265,162 |
听 |
听 |
299,163 |
听 |
(11)% |
(9)% |
||||
|
Other (b) |
听 |
鈥� |
听 |
听 |
278 |
听 |
* |
* |
||||
|
Total segment revenues |
$ |
3,080,600 |
听 |
$ |
3,198,235 |
听 |
(4)% |
2% |
||||
|
Segment profit (loss) |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||
|
Outdoor |
$ |
260,439 |
听 |
$ |
284,076 |
听 |
听 |
听 |
||||
|
Active |
听 |
180,255 |
听 |
听 |
284,349 |
听 |
听 |
听 |
||||
|
Work |
听 |
39,500 |
听 |
听 |
61,973 |
听 |
听 |
听 |
||||
|
Other (b) |
听 |
(157 |
) |
听 |
(370 |
) |
听 |
听 |
||||
|
Total segment profit |
听 |
480,037 |
听 |
听 |
630,028 |
听 |
听 |
听 |
||||
|
Impairment of goodwill and intangible assets |
听 |
(421,922 |
) |
听 |
鈥� |
听 |
听 |
听 |
||||
|
Corporate and other expenses |
听 |
(158,214 |
) |
听 |
(63,993 |
) |
听 |
听 |
||||
|
Interest expense, net |
听 |
(33,903 |
) |
听 |
(34,370 |
) |
听 |
听 |
||||
|
Income (loss) from continuing operations before income taxes |
$ |
(134,002 |
) |
$ |
531,665 |
听 |
听 |
听 |
||||
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||
|
(a) Refer to constant currency definition on the following pages. |
||||||||||||
|
(b) Other is included for purposes of reconciliation of revenues and profit, but it is not considered a reportable segment. Includes results primarily related to the sale of non-乱伦巴士 products and sourcing activities related to transition services. |
||||||||||||
|
* Calculation not meaningful |
||||||||||||
|
乱伦巴士 CORPORATION
Supplemental Financial Information Reportable Segment Information (Unaudited) (In thousands) |
||||||||||||
| 听 | ||||||||||||
|
听 |
Six Months Ended September |
听 |
% Change Constant |
|||||||||
|
听 |
2022 |
2021 |
% Change |
Currency (a) |
||||||||
|
Segment revenues |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||
|
Outdoor |
$ |
2,323,952 |
听 |
$ |
2,124,375 |
听 |
9% |
16% |
||||
|
Active |
听 |
2,514,055 |
听 |
听 |
2,694,241 |
听 |
(7)% |
(2)% |
||||
|
Work |
听 |
504,040 |
听 |
听 |
573,898 |
听 |
(12)% |
(10)% |
||||
|
Other (b) |
听 |
148 |
听 |
听 |
278 |
听 |
* |
* |
||||
|
Total segment revenues |
$ |
5,342,195 |
听 |
$ |
5,392,792 |
听 |
(1)% |
4% |
||||
|
Segment profit (loss) |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||
|
Outdoor |
$ |
213,588 |
听 |
$ |
212,329 |
听 |
听 |
听 |
||||
|
Active |
听 |
394,286 |
听 |
听 |
555,211 |
听 |
听 |
听 |
||||
|
Work |
听 |
74,502 |
听 |
听 |
102,977 |
听 |
听 |
听 |
||||
|
Other (b) |
听 |
(382 |
) |
听 |
(652 |
) |
听 |
听 |
||||
|
Total segment profit |
听 |
681,994 |
听 |
听 |
869,865 |
听 |
听 |
听 |
||||
|
Impairment of goodwill and intangible assets |
听 |
(421,922 |
) |
听 |
鈥� |
听 |
听 |
听 |
||||
|
Corporate and other expenses |
听 |
(391,523 |
) |
听 |
(91,905 |
) |
听 |
听 |
||||
|
Interest expense, net |
听 |
(65,165 |
) |
听 |
(67,145 |
) |
听 |
听 |
||||
|
Income (loss) from continuing operations before income taxes |
$ |
(196,616 |
) |
$ |
710,815 |
听 |
听 |
听 |
||||
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||
|
(a) Refer to constant currency definition on the following pages. |
||||||||||||
|
(b) Other is included for purposes of reconciliation of revenues and profit, but it is not considered a reportable segment. Includes results primarily related to the sale of non-乱伦巴士 products and sourcing activities related to transition services. |
||||||||||||
|
* Calculation not meaningful |
||||||||||||
|
乱伦巴士 CORPORATION
Supplemental Financial Information Reportable Segment Information 鈥� Constant Currency Basis (Unaudited) (In thousands) |
||||||||||||
| 听 | ||||||||||||
|
听 |
听 |
Three Months Ended September 2022 |
||||||||||
|
听 |
听 |
As Reported |
听 |
Adjust for Foreign |
听 |
听 |
||||||
|
听 |
听 |
under GAAP |
听 |
Currency Exchange |
听 |
Constant Currency |
||||||
|
Segment revenues |
听 |
听 |
听 |
听 |
听 |
听 |
||||||
|
Outdoor |
听 |
$ |
1,555,328 |
听 |
听 |
$ |
106,555 |
听 |
听 |
$ |
1,661,883 |
听 |
|
Active |
听 |
听 |
1,260,110 |
听 |
听 |
听 |
79,943 |
听 |
听 |
听 |
1,340,053 |
听 |
|
Work |
听 |
听 |
265,162 |
听 |
听 |
听 |
8,454 |
听 |
听 |
听 |
273,616 |
听 |
|
Other |
听 |
听 |
鈥� |
听 |
听 |
听 |
鈥� |
听 |
听 |
听 |
鈥� |
听 |
|
Total segment revenues |
听 |
$ |
3,080,600 |
听 |
听 |
$ |
194,952 |
听 |
听 |
$ |
3,275,552 |
听 |
|
Segment profit (loss) |
听 |
听 |
听 |
听 |
听 |
听 |
||||||
|
Outdoor |
听 |
$ |
260,439 |
听 |
听 |
$ |
19,152 |
听 |
听 |
$ |
279,591 |
听 |
|
Active |
听 |
听 |
180,255 |
听 |
听 |
听 |
18,337 |
听 |
听 |
听 |
198,592 |
听 |
|
Work |
听 |
听 |
39,500 |
听 |
听 |
听 |
1,187 |
听 |
听 |
听 |
40,687 |
听 |
|
Other |
听 |
听 |
(157 |
) |
听 |
听 |
(16 |
) |
听 |
听 |
(173 |
) |
|
Total segment profit |
听 |
听 |
480,037 |
听 |
听 |
听 |
38,660 |
听 |
听 |
听 |
518,697 |
听 |
|
Impairment of goodwill and intangible assets |
听 |
听 |
(421,922 |
) |
听 |
听 |
鈥� |
听 |
听 |
听 |
(421,922 |
) |
|
Corporate and other expenses |
听 |
听 |
(158,214 |
) |
听 |
听 |
(1,429 |
) |
听 |
听 |
(159,643 |
) |
|
Interest expense, net |
听 |
听 |
(33,903 |
) |
听 |
听 |
鈥� |
听 |
听 |
听 |
(33,903 |
) |
|
Income (loss) from continuing operations before income taxes |
听 |
$ |
(134,002 |
) |
听 |
$ |
37,231 |
听 |
听 |
$ |
(96,771 |
) |
|
Diluted earnings per share growth |
听 |
听 |
(126 |
)% |
听 |
听 |
7 |
% |
听 |
听 |
(119 |
)% |
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||
|
Constant Currency Financial Information |
||||||||||||
|
乱伦巴士 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 乱伦巴士 from translating its foreign revenues and expenses into U.S. dollars. These rate fluctuations can have a significant effect on reported operating results. As a supplement to our reported operating results, we present constant currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. We use constant currency 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. 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 constant currency 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). |
||||||||||||
|
These constant currency 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 constant currency information presented may not be comparable to similarly titled measures reported by other companies. |
||||||||||||
|
乱伦巴士 CORPORATION
Supplemental Financial Information Reportable Segment Information 鈥� Constant Currency Basis (Unaudited) (In thousands) |
||||||||||||
| 听 | ||||||||||||
|
听 |
听 |
Six Months Ended September 2022 |
||||||||||
|
听 |
听 |
As Reported |
听 |
Adjust for Foreign |
听 |
听 |
||||||
|
听 |
听 |
under GAAP |
听 |
Currency Exchange |
听 |
Constant Currency |
||||||
|
Segment revenues |
听 |
听 |
听 |
听 |
听 |
听 |
||||||
|
Outdoor |
听 |
$ |
2,323,952 |
听 |
听 |
$ |
145,764 |
听 |
听 |
$ |
2,469,716 |
听 |
|
Active |
听 |
听 |
2,514,055 |
听 |
听 |
听 |
132,017 |
听 |
听 |
听 |
2,646,072 |
听 |
|
Work |
听 |
听 |
504,040 |
听 |
听 |
听 |
12,938 |
听 |
听 |
听 |
516,978 |
听 |
|
Other |
听 |
听 |
148 |
听 |
听 |
听 |
鈥� |
听 |
听 |
听 |
148 |
听 |
|
Total segment revenues |
听 |
$ |
5,342,195 |
听 |
听 |
$ |
290,719 |
听 |
听 |
$ |
5,632,914 |
听 |
|
Segment profit (loss) |
听 |
听 |
听 |
听 |
听 |
听 |
||||||
|
Outdoor |
听 |
$ |
213,588 |
听 |
听 |
$ |
19,036 |
听 |
听 |
$ |
232,624 |
听 |
|
Active |
听 |
听 |
394,286 |
听 |
听 |
听 |
30,379 |
听 |
听 |
听 |
424,665 |
听 |
|
Work |
听 |
听 |
74,502 |
听 |
听 |
听 |
1,736 |
听 |
听 |
听 |
76,238 |
听 |
|
Other |
听 |
听 |
(382 |
) |
听 |
听 |
(26 |
) |
听 |
听 |
(408 |
) |
|
Total segment profit |
听 |
听 |
681,994 |
听 |
听 |
听 |
51,125 |
听 |
听 |
听 |
733,119 |
听 |
|
Impairment of goodwill and intangible assets |
听 |
听 |
(421,922 |
) |
听 |
听 |
鈥� |
听 |
听 |
听 |
(421,922 |
) |
|
Corporate and other expenses |
听 |
听 |
(391,523 |
) |
听 |
听 |
(2,321 |
) |
听 |
听 |
(393,844 |
) |
|
Interest expense, net |
听 |
听 |
(65,165 |
) |
听 |
听 |
鈥� |
听 |
听 |
听 |
(65,165 |
) |
|
Income (loss) from continuing operations before income taxes |
听 |
$ |
(196,616 |
) |
听 |
$ |
48,804 |
听 |
听 |
$ |
(147,812 |
) |
|
Diluted earnings per share growth |
听 |
听 |
(129 |
)% |
听 |
听 |
7 |
% |
听 |
听 |
(122 |
)% |
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||
|
Constant Currency Financial Information |
||||||||||||
|
乱伦巴士 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 乱伦巴士 from translating its foreign revenues and expenses into U.S. dollars. These rate fluctuations can have a significant effect on reported operating results. As a supplement to our reported operating results, we present constant currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. We use constant currency 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. 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 constant currency 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). |
||||||||||||
|
These constant currency 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 constant currency information presented may not be comparable to similarly titled measures reported by other companies. |
||||||||||||
|
乱伦巴士 CORPORATION
Supplemental Financial Information Reconciliation of Select GAAP Measures to Non-GAAP Measures - Three and Six Months Ended September 2022 (Unaudited) (In thousands, except per share amounts) |
||||||||||||||||||||
| 听 | ||||||||||||||||||||
|
Three Months Ended September 2022 |
听 |
As Reported under GAAP |
听 |
Transaction and Deal Related Activities (a) |
听 |
Specified Strategic Business Decisions (b) |
听 |
Impairment and Pension Settlement Charge (c) |
听 |
Adjusted |
||||||||||
|
Revenues |
听 |
$ |
3,080,600 |
听 |
听 |
$ |
鈥� |
听 |
$ |
鈥� |
听 |
$ |
鈥� |
听 |
$ |
3,080,600 |
听 |
|||
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||||
|
Gross profit |
听 |
听 |
1,582,423 |
听 |
听 |
听 |
鈥� |
听 |
听 |
听 |
3,283 |
听 |
听 |
听 |
鈥� |
听 |
听 |
听 |
1,585,706 |
听 |
|
Percent |
听 |
听 |
51.4 |
% |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
51.5 |
% |
||||||
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||||
|
Operating income (loss) |
听 |
听 |
(90,819 |
) |
听 |
听 |
鈥� |
听 |
听 |
听 |
47,644 |
听 |
听 |
听 |
421,922 |
听 |
听 |
听 |
378,747 |
听 |
|
Percent |
听 |
听 |
(2.9 |
)% |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
12.3 |
% |
||||||
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||||
|
Diluted earnings (loss) per share from continuing operations (d) |
听 |
听 |
(0.31 |
) |
听 |
听 |
鈥� |
听 |
听 |
听 |
0.10 |
听 |
听 |
听 |
0.94 |
听 |
听 |
听 |
0.73 |
听 |
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||||
|
Six Months Ended September 2022 |
听 |
As Reported under GAAP |
听 |
Transaction and Deal Related Activities (a) |
听 |
Specified Strategic Business Decisions (b) |
听 |
Impairment and Pension Settlement Charge (c) |
听 |
Adjusted |
||||||||||
|
Revenues |
听 |
$ |
5,342,195 |
听 |
听 |
$ |
鈥� |
听 |
听 |
$ |
鈥� |
听 |
听 |
$ |
鈥� |
听 |
听 |
$ |
5,342,195 |
听 |
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||||
|
Gross profit |
听 |
听 |
2,801,036 |
听 |
听 |
听 |
鈥� |
听 |
听 |
听 |
8,364 |
听 |
听 |
听 |
鈥� |
听 |
听 |
听 |
2,809,400 |
听 |
|
Percent |
听 |
听 |
52.4 |
% |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
52.6 |
% |
||||||
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||||
|
Operating income (loss) |
听 |
听 |
(27,457 |
) |
听 |
听 |
331 |
听 |
听 |
听 |
61,422 |
听 |
听 |
听 |
421,922 |
听 |
听 |
听 |
456,218 |
听 |
|
Percent |
听 |
听 |
(0.5 |
)% |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
8.5 |
% |
||||||
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||||
|
Diluted earnings (loss) per share from continuing operations (d) |
听 |
听 |
(0.45 |
) |
听 |
听 |
鈥� |
听 |
听 |
听 |
0.13 |
听 |
听 |
听 |
1.14 |
听 |
听 |
听 |
0.81 |
听 |
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||||
|
(a) Transaction and deal related activities reflect activities associated with the acquisition of Supreme Holdings, Inc. and include integration costs of $0.3 million for the six months ended September 2022. The transaction and deal related activities resulted in a net tax benefit of $0.1 million in the six months ended September 2022. |
||||||||||||||||||||
|
(b) Specified strategic business decisions include costs related to 乱伦巴士's business model transformation of $45.2 million and $51.2 million during the three and six months ended September 2022, respectively, related primarily to Corporate actions and resulting restructuring costs. Specified strategic business decisions also include costs related to a transformation initiative for our Asia-Pacific regional operations of $2.4 million and $10.2 million in the three and six months ended September 2022, respectively. The specified strategic business decisions resulted in a net tax benefit of $10.1 million and $12.3 million in the three and six months ended September 2022, respectively. |
||||||||||||||||||||
|
(c) 乱伦巴士 recognized noncash impairment charges related to the Supreme reporting unit goodwill and indefinite-lived trademark intangible asset of $421.9 million during the three and six months ended September 2022. The impairment charges were driven by non-operating factors including higher interest rates and foreign currency fluctuations. A noncash pension settlement charge of $91.8 million was recorded in the Other income (expense), net line item during the six months ended September 2022. The pension settlement charge resulted from the purchase of a group annuity contract, which was an action taken to streamline administration, manage financial risk associated with pension plans, and to transfer a portion of the liability associated with 乱伦巴士's U.S. pension plan to an insurance company. The impairment and pension settlement charges resulted in a net tax benefit of $58.6 million and $72.4 million in the three and six months ended September 2022, respectively. |
||||||||||||||||||||
|
(d) Amounts shown in the table have been calculated using unrounded numbers. The GAAP diluted earnings per share was calculated using 387,688,000 and 387,625,000 weighted average common shares for the three and six months ended September 2022, respectively. The adjusted diluted earnings per share impacts were calculated using 388,483,000 and 388,439,000 weighted average common shares for the three and six months ended September 2022, respectively. |
||||||||||||||||||||
|
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 transaction and deal related activities, activity related to specified strategic business decisions, impairment and a pension settlement charge. The adjusted presentation provides non-GAAP measures. Management believes these measures provide investors with useful supplemental information regarding 乱伦巴士's underlying business trends and the performance of 乱伦巴士'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, 乱伦巴士'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. |
||||||||||||||||||||
|
乱伦巴士 CORPORATION
Supplemental Financial Information Reconciliation of Select GAAP Measures to Non-GAAP Measures - Three and Six Months Ended September 2021 (Unaudited) (In thousands, except per share amounts) |
||||||||||||||||
| 听 | ||||||||||||||||
|
Three Months Ended September 2021 |
听 |
As Reported under GAAP |
听 |
Transaction and Deal Related Costs (a) |
听 |
Specified Strategic Business Decisions (b) |
听 |
Adjusted |
||||||||
|
Revenues |
听 |
$ |
3,198,235 |
听 |
听 |
$ |
鈥� |
听 |
听 |
$ |
鈥� |
听 |
$ |
3,198,235 |
听 |
|
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||
|
Gross profit |
听 |
听 |
1,718,789 |
听 |
听 |
听 |
鈥� |
听 |
听 |
听 |
5,868 |
听 |
听 |
听 |
1,724,657 |
听 |
|
Percent |
听 |
听 |
53.7 |
% |
听 |
听 |
听 |
听 |
听 |
听 |
53.9 |
% |
||||
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||
|
Operating income |
听 |
听 |
558,486 |
听 |
听 |
听 |
(33,886 |
) |
听 |
听 |
9,738 |
听 |
听 |
听 |
534,338 |
听 |
|
Percent |
听 |
听 |
17.5 |
% |
听 |
听 |
听 |
听 |
听 |
听 |
16.7 |
% |
||||
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||
|
Diluted earnings per share from continuing operations (c) |
听 |
听 |
1.18 |
听 |
听 |
听 |
(0.09 |
) |
听 |
听 |
0.02 |
听 |
听 |
听 |
1.11 |
听 |
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||
|
Six Months Ended September 2021 |
听 |
As Reported under GAAP |
听 |
Transaction and Deal Related Costs(a) |
听 |
Specified Strategic Business Decisions (b) |
听 |
Adjusted |
||||||||
|
Revenues |
听 |
$ |
5,392,792 |
听 |
听 |
$ |
鈥� |
听 |
听 |
$ |
鈥� |
听 |
听 |
$ |
5,392,792 |
听 |
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||
|
Gross profit |
听 |
听 |
2,957,795 |
听 |
听 |
听 |
鈥� |
听 |
听 |
听 |
12,069 |
听 |
听 |
听 |
2,969,864 |
听 |
|
Percent |
听 |
听 |
54.8 |
% |
听 |
听 |
听 |
听 |
听 |
听 |
55.1 |
% |
||||
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||
|
Operating income |
听 |
听 |
761,370 |
听 |
听 |
听 |
(102,482 |
) |
听 |
听 |
23,862 |
听 |
听 |
听 |
682,750 |
听 |
|
Percent |
听 |
听 |
14.1 |
% |
听 |
听 |
听 |
听 |
听 |
听 |
12.7 |
% |
||||
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||
|
Diluted earnings per share from continuing operations (c) |
听 |
听 |
1.57 |
听 |
听 |
听 |
(0.24 |
) |
听 |
听 |
0.05 |
听 |
听 |
听 |
1.38 |
听 |
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
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|
(a) Transaction and deal related activities include activities associated with the acquisition of Supreme Holdings, Inc. for the three and six months ended September 2021. Transaction and deal related activities include a decrease in the estimated fair value of the contingent consideration liability of $35.0 million and $108.0 million for the three and six months ended September 2021, respectively, and integration costs of $1.1 million and $5.5 million for the three and six months ended September 2021, respectively. The transaction and deal related activities resulted in a net tax benefit of $1.2 million and net tax expense of $8.3 million in the three and six months ended September 2021, respectively, primarily related to the impact of the decreases in the estimated fair value of the contingent consideration liability on the interim tax rate calculations. |
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(b) Specified strategic business decisions for the three and six months ended September 2021 include costs related to 乱伦巴士's business model transformation of $0.2 million and $1.7 million in the three and six months ended September 2021, respectively, related primarily to restructuring and other costs. Specified strategic business decisions also include costs related to a transformation initiative for our Asia-Pacific regional operations of $13.3 million and $21.8 million in the three and six months ended September 2021, respectively. Specified strategic business decisions also include cost optimization charges and other activities, including the sale of certain assets, indirectly related to the divestiture of the Occupational Workwear business, which totaled income of $3.8 million and costs of $0.4 million during the three and six months ended September 2021, respectively. The specified strategic business decisions also include non-operating income of $1.7 million during the three and six months ended September 2021 associated with 乱伦巴士's transformation initiatives. The specified strategic business decisions resulted in a net tax benefit of $1.0 million and $3.2 million in the three and six months ended September 2021, respectively. |
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(c) Amounts shown in the table have been calculated using unrounded numbers. The diluted earnings per share impacts were calculated using 394,017,000 and 394,072,000 weighted average common shares for the three and six months ended September 2021, respectively. |
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听 |
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|
Non-GAAP Financial Information |
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|
The financial information above has been presented on a GAAP basis and on an adjusted basis, which excludes the impact of transaction and deal related costs and activity related to specified strategic business decisions. The adjusted presentation provides non-GAAP measures. Management believes these measures provide investors with useful supplemental information regarding 乱伦巴士's underlying business trends and the performance of 乱伦巴士's ongoing operations and are useful for period-over-period comparisons of such operations. |
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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, 乱伦巴士'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. |
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乱伦巴士 CORPORATION
Supplemental Financial Information Top 4 Brand Revenue Information (Unaudited) |
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| 听 | ||||||||||||||||||||||||
|
听 |
听 |
Three Months Ended September 2022 |
听 |
Six Months Ended September 2022 |
||||||||||||||||||||
|
Top 4 Brand Revenue Growth |
听 |
Americas |
听 |
EMEA |
听 |
APAC |
听 |
Global |
听 |
Americas |
听 |
EMEA |
听 |
APAC |
听 |
Global |
||||||||
|
Vans庐 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||
|
% change |
听 |
(11 |
)% |
听 |
(12 |
)% |
听 |
(20 |
)% |
听 |
(13 |
)% |
听 |
(4 |
)% |
听 |
(11 |
)% |
听 |
(30 |
)% |
听 |
(10 |
)% |
|
% change constant currency* |
听 |
(11 |
)% |
听 |
2 |
% |
听 |
(14 |
)% |
听 |
(8 |
)% |
听 |
(4 |
)% |
听 |
2 |
% |
听 |
(26 |
)% |
听 |
(6 |
)% |
|
The North Face庐 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||
|
% change |
听 |
11 |
% |
听 |
(5 |
)% |
听 |
31 |
% |
听 |
8 |
% |
听 |
19 |
% |
听 |
4 |
% |
听 |
25 |
% |
听 |
15 |
% |
|
% change constant currency* |
听 |
11 |
% |
听 |
11 |
% |
听 |
37 |
% |
听 |
14 |
% |
听 |
19 |
% |
听 |
20 |
% |
听 |
30 |
% |
听 |
21 |
% |
|
Timberland庐 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||
|
% change |
听 |
(6 |
)% |
听 |
2 |
% |
听 |
(11 |
)% |
听 |
(4 |
)% |
听 |
(5 |
)% |
听 |
9 |
% |
听 |
(1 |
)% |
听 |
0 |
% |
|
% change constant currency* |
听 |
(5 |
)% |
听 |
19 |
% |
听 |
(4 |
)% |
听 |
3 |
% |
听 |
(5 |
)% |
听 |
26 |
% |
听 |
5 |
% |
听 |
7 |
% |
|
Dickies庐 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||
|
% change |
听 |
(17 |
)% |
听 |
(1 |
)% |
听 |
(35 |
)% |
听 |
(19 |
)% |
听 |
(17 |
)% |
听 |
5 |
% |
听 |
(27 |
)% |
听 |
(17 |
)% |
|
% change constant currency* |
听 |
(17 |
)% |
听 |
16 |
% |
听 |
(27 |
)% |
听 |
(15 |
)% |
听 |
(17 |
)% |
听 |
21 |
% |
听 |
(20 |
)% |
听 |
(14 |
)% |
|
*Refer to constant currency definition on previous pages. |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||||||||||||
|
乱伦巴士 CORPORATION
Supplemental Financial Information Geographic and Channel Revenue Information (Unaudited) |
||||
| 听 | ||||
|
听 |
听 |
Three Months Ended September 2022 |
||
|
听 |
听 |
% Change |
听 |
% Change Constant Currency* |
|
Geographic Revenue Growth |
听 |
听 |
听 |
听 |
|
Americas |
听 |
(3)% |
听 |
(3)% |
|
EMEA |
听 |
(4)% |
听 |
12% |
|
APAC |
听 |
(6)% |
听 |
2% |
|
Greater China |
听 |
(15)% |
听 |
(10)% |
|
International |
听 |
(5)% |
听 |
8% |
|
Global |
听 |
(4)% |
听 |
2% |
|
听 |
听 |
听 |
听 |
听 |
|
听 |
听 |
Six Months Ended September 2022 |
||
|
听 |
听 |
% Change |
听 |
% Change Constant Currency* |
|
Geographic Revenue Growth |
听 |
听 |
听 |
听 |
|
Americas |
听 |
1% |
听 |
1% |
|
EMEA |
听 |
1% |
听 |
16% |
|
APAC |
听 |
(12)% |
听 |
(6)% |
|
Greater China |
听 |
(23)% |
听 |
(19)% |
|
International |
听 |
(3)% |
听 |
8% |
|
Global |
听 |
(1)% |
听 |
4% |
|
听 |
听 |
听 |
听 |
听 |
|
听 |
听 |
Three Months Ended September 2022 |
||
|
听 |
听 |
% Change |
听 |
% Change Constant Currency* |
|
Channel Revenue Growth |
听 |
听 |
听 |
听 |
|
Wholesale (a) |
听 |
(4)% |
听 |
3% |
|
Direct-to-consumer |
听 |
(4)% |
听 |
1% |
|
Digital |
听 |
(7)% |
听 |
(1)% |
|
听 |
听 |
听 |
听 |
听 |
|
听 |
听 |
Six Months Ended September 2022 |
||
|
听 |
听 |
% Change |
听 |
% Change Constant Currency* |
|
Channel Revenue Growth |
听 |
听 |
听 |
听 |
|
Wholesale (a) |
听 |
2% |
听 |
8% |
|
Direct-to-consumer |
听 |
(5)% |
听 |
(1)% |
|
Digital |
听 |
(13)% |
听 |
(8)% |
|
听 |
听 |
听 |
听 |
听 |
|
听 |
听 |
As of September |
||
|
听 |
听 |
2022 |
听 |
2021 |
|
DTC Store Count |
听 |
听 |
听 |
听 |
|
Total |
听 |
1,283 |
听 |
1,358 |
|
听 |
听 |
听 |
听 |
听 |
|
*Refer to constant currency definition on previous pages. |
||||
|
(a) Royalty revenues are included in the wholesale channel for all periods. |
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听
View source version on businesswire.com:
Investor Contact:
Allegra Perry
ir@vfc.com
Media Contact:
Colin Wheeler
corporate_communications@vfc.com
Source: 乱伦巴士 Corporation