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Press Release: Columbia Sportswear Company -2-

· 02/04/2021 16:12
COLUMBIA SPORTSWEAR COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) December 31, ------------------------ (in thousands) 2020 2019 ----------------------------------------- ---------- ------------ ASSETS Current Assets: Cash and cash equivalents $ 790,725 $ 686,009 Short-term investments 1,224 1,668 Accounts receivable, net 452,945 488,233 Inventories, net 556,530 605,968 Prepaid expenses and other current assets 54,197 93,868 ---------- ---------- Total current assets 1,855,621 1,875,746 Property, plant, and equipment, net 309,792 346,651 Operating lease right-of-use assets 339,244 394,501 Intangible assets, net 103,558 123,595 Goodwill 68,594 68,594 Deferred income taxes 96,126 78,849 Other non-current assets 63,636 43,655 ---------- ---------- Total assets $2,836,571 $2,931,591 ========= ========= LIABILITIES AND EQUITY Current Liabilities: Accounts payable 206,697 255,372 Accrued liabilities 257,278 295,723 Operating lease liabilities 65,466 64,019 Income taxes payable 23,181 15,801 ---------- ---------- Total current liabilities 552,622 630,915 Non-current operating lease liabilities 353,181 371,507 Income taxes payable 49,922 48,427 Deferred income taxes 5,205 6,361 Other long-term liabilities 42,870 24,934 ---------- ---------- Total liabilities 1,003,800 1,082,144 Shareholders' equity 1,832,771 1,849,447 ---------- ---------- Total liabilities and shareholders' equity $2,836,571 $2,931,591 ========= ========= COLUMBIA SPORTSWEAR COMPANY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended December 31, Twelve Months Ended December 31, ----------------------------- -------------------------------- (In thousands, except per share amounts) 2020 2019 2020 2019 --------------- -------------- ------------- -------------- -------------- Net sales $915,623 $954,867 $2,501,554 $3,042,478 Cost of sales 452,586 476,212 1,277,665 1,526,808 -------- ---- -------- --- ---------- ---------- Gross profit 463,037 478,655 1,223,889 1,515,670 50.6% 50.1% 48.9% 49.8% Selling, general and administrative expenses 343,284 344,419 1,098,948 1,136,186 Net licensing income 3,940 4,397 12,108 15,487

At its regular board meeting on January 29, 2021, the Board of Directors approved an additional $400.0 million share repurchase authorization. This is in addition to the $82.2 million currently remaining available under the prior share repurchase authorization. The share repurchase authorization does not obligate the company to acquire any specific number of shares or to acquire shares over any specified period of time.

Quarterly Cash Dividend

The Board of Directors approved a regular quarterly cash dividend of $0.26 per share, payable on March 22, 2021 to shareholders of record on March 9, 2021.

Conference Call

The Company will hold its fourth quarter 2020 conference call at 5:00 p.m. ET today. Dial (877) 407-9205 to participate. The call will also be webcast live on the Investor Relations section of the Company's website at http://investor.columbia.com.

First Quarter 2021 Reporting Date

Columbia Sportswear Company plans to report first quarter 2021 financial results on Thursday, April 29, 2021 at approximately 4:00 p.m. ET.

Supplemental Financial Information

Since Columbia Sportswear Company is a global company, the comparability of its operating results reported in United States dollars is affected by foreign currency exchange rate fluctuations because the underlying currencies in which it transacts change in value over time compared to the United States dollar. To supplement financial information reported in accordance with GAAP, the Company discloses constant-currency net sales information, which is a non-GAAP financial measure, to provide a framework to assess how the business performed excluding the effects of changes in the exchange rates used to translate net sales generated in foreign currencies into United States dollars. The Company calculates constant-currency net sales by translating net sales in foreign currencies for the current period into United States dollars at the average exchange rates that were in effect during the comparable period of the prior year. Management believes that this non-GAAP financial measure reflects an additional and useful way of viewing an aspect of our operations that, when viewed in conjunction with our GAAP results, provides a more comprehensive understanding of our business and operations. In particular, investors may find the non-GAAP financial measure useful by reviewing our net sales results without the volatility in foreign currency exchange rates. This non-GAAP financial measure also facilitates management's internal comparisons to our historical net sales results and comparisons to competitors' net sales results.

The non-GAAP financial measures should be viewed in addition to, and not in lieu of or superior to, our financial measures calculated in accordance with GAAP. The Company provides a reconciliation of non-GAAP measures to the most directly comparable financial measure calculated in accordance with GAAP. See the "Reconciliation of GAAP to Non-GAAP Financial Measures" table included herein. The non-GAAP financial measures presented may not be comparable to similarly titled measures reported by other companies.

Forward-Looking Statements

This document contains forward-looking statements within the meaning of the federal securities laws, including statements regarding the Company's expectations, anticipations or beliefs about brick and mortar retail traffic, net sales, operating income and diluted earnings per share for 2021. Forward-looking statements often use words such as "will, " "anticipate," "estimate," "expect," "should," "may" and other words and terms of similar meaning or reference future dates. The Company's expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis; however, each forward-looking statement involves a number of risks and uncertainties, including those set forth in this document, those described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q under the heading "Risk Factors," and those that have been or may be described in other reports filed by the Company, including reports on Form 8-K. Potential risks and uncertainties include those relating to the impact of the COVID-19 pandemic on our operations, which is highly dependent on numerous factors that we may not be able to predict or control, including: the duration and scope of the COVID-19 pandemic, including any recurrence due to variants; actions that may be taken to contain the pandemic or to treat its impact, including lock-downs and the speed of the vaccination roll-out; economic slowdowns that have and may continue to result from the pandemic; workforce staffing and productivity; our ability to continue operations in affected areas; supply chain and logistics capacity constraints; and consumer demand and spending patterns, as well as the effects on suppliers, creditors, and wholesale customers, all of which are uncertain. The Company cautions that forward-looking statements are inherently less reliable than historical information. The Company does not undertake any duty to update any of the forward-looking statements after the date of this document to conform them to actual results or to reflect changes in events, circumstances or its expectations. New factors emerge from time to time and it is not possible for the Company to predict or assess the effects of all such factors or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement.

About Columbia Sportswear Company

Columbia Sportswear Company has assembled a portfolio of brands for active lives, making it a leader in the global active outdoor lifestyle apparel, footwear, accessories, and equipment industry. Founded in 1938 in Portland, Oregon, the Company's brands are today sold in approximately 90 countries. In addition to the Columbia(R) brand, Columbia Sportswear Company also owns the Mountain Hardwear(R), SOREL(R) and prAna(R) brands. To learn more, please visit the Company's websites at www.columbia.com, www.mountainhardwear.com, www.sorel.com, and www.prana.com.

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February 04, 2021 16:12 ET (21:12 GMT)