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UA » Topics » Our international operations and the operations of many of our manufacturers are subject to additional risks that are beyond our control and that could harm our business.These excerpts taken from the UA 10-K filed Feb 20, 2009. Our international operations and the operations of many of our manufacturers are subject to additional risks that are beyond our control and that could harm our business. In 2008, our apparel and footwear were manufactured by 23 primary manufacturers, operating in 12 countries, eight of which manufactured approximately 55% of our products. These manufacturers are primarily located in China, Dominican Republic, Honduras, Mexico and Nicaragua. In 2008, approximately 59% of our products were manufactured in Asia, with 18% manufactured in Central and South America and 18% manufactured in Mexico. In addition, approximately 9% of our 2008 net revenues were generated through international sales and licensing fees. As a result of our international manufacturing and sales, we are subject to risks associated with doing business abroad, including:
Our international operations and the operations of many of our manufacturers are subject to additional risks that are In 2008, our apparel and footwear were manufactured by 23 primary manufacturers,
fluctuations or shortages in petroleum or other raw materials can materially adversely affect our cost of goods sold, results of operations and financial condition. net revenues and net income. These variations are primarily related to increased sales of our products during the fall season, reflecting our historical strength in fall sports, and the seasonality of sales of our higher priced COLDGEAR other factors, including, among other things, the timing of the introduction of and advertising for new products and changes in our product mix. Variations in weather conditions may also have an adverse effect on our quarterly results of operations. For example, warmer than normal weather conditions throughout the fall or winter may reduce sales of our COLDGEAR® line, leaving us with excess inventory and operating results below our expectations. As a result of these seasonal and quarterly fluctuations, we believe that comparisons of our operating results between
16 Table of ContentsThese excerpts taken from the UA 10-K filed Feb 22, 2008. Our international operations and the operations of many of our manufacturers are subject to additional risks that are beyond our control and that could harm our business. In 2007, our apparel and footwear products were manufactured by 19 primary manufacturers, operating in 15 countries, seven of which manufactured approximately 55% of our products. These manufacturers are primarily located in China, Dominican Republic, Honduras and Mexico. In 2007, approximately 53% of our products were manufactured in Asia, with 25% manufactured in Central and South America and 19% manufactured in Mexico. In addition, approximately 7% of our 2007 net revenues were generated through
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Table of Contentsinternational sales and licensing fees. As a result of our international manufacturing and sales, we are subject to risks associated with doing business abroad, including:
Our international operations and the operations of many of our manufacturers are subject to additional In 2007, our apparel and footwear products were manufactured by 19
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restrictions on our actions, and it could therefore limit our operational flexibility or otherwise adversely affect our financial condition. SIZE="2">We have, from time to time, financed our liquidity needs in part from borrowings made under our senior secured credit facility. The senior secured credit facility is a revolving facility of up to $100.0 million (based on the value of Our senior secured credit facility contains a number of significant restrictions
reduce our ability to borrow under the facility even if we are in compliance with all of the conditions of the facility. In addition, we are required to comply with certain financial covenants in the event we fail to maintain a minimum borrowing availability. Failure to comply with these operating or financial covenants could result from, among other things, changes in our results of operations or general economic changes. These covenants may restrict our ability to engage in transactions that would otherwise be in our best interests. Failure to comply with any of the covenants under our senior secured credit facility could result in a default under the facility. This could cause the lenders to accelerate the timing of payments and exercise their lien on essentially all of our assets, which would have a material adverse effect on our business, operations, financial condition and liquidity. In addition, because our senior secured credit facility bears interest at variable interest rates, which we do not anticipate hedging against, increases in interest rates would increase our cost of borrowing, resulting in a decline in our net income and cash flow. 17 Table of ContentsThis excerpt taken from the UA 10-K filed Feb 28, 2007. Our international operations and the operations of many of our manufacturers are subject to additional risks that are beyond our control and that could harm our business. In 2006, our apparel products were manufactured by 18 primary manufacturers, operating in 19 countries, four of which manufactured approximately 50% of our products. These four manufacturers are located in Mexico, China and Colombia. In 2006, approximately 40% of our products were manufactured in Asia, with 32% manufactured in Central and South America and 24% manufactured in Mexico. In addition, approximately 4% of our 2006 net revenues were generated through international sales and licensing fees. As a result of our international manufacturing and sales, we are subject to risks associated with doing business abroad, including:
This excerpt taken from the UA 10-K filed Mar 15, 2006. Our international operations and the operations of many of our manufacturers are subject to additional risks that are beyond our control and that could harm our business. In 2005, our products were manufactured by 18 primary manufacturers, operating in 19 countries. In 2005, approximately 50% of our products were manufactured in Central and South America, with 43% in Asia and 7% manufactured in the United States. In addition, approximately 5% of our 2005 net revenues were generated through international sales and licensing fees. As a result of our international manufacturing and sales, we are subject to risks associated with doing business abroad, including:
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These and other factors beyond our control could interrupt our manufacturers’ production in offshore facilities, influence the ability of our manufacturers to export our products cost-effectively or at all, inhibit our and our unaffiliated manufacturers’ ability to procure certain materials, increase our legal or compliance costs and influence our ability to sell our products in international markets, any of which could have an adverse effect on our business, financial condition and operations. | EXCERPTS ON THIS PAGE:
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