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Historical Financial Statements (Income Statement, Balance Sheet…
Historical Financial Statements (Income Statement, Balance Sheet and Statement of Cash Flows) from the 3 most current years for the firm. These should be downloaded from the SEC website. The financial statements must include horizontal (shown between the years) and vertical analysis (shown to the right of the last year of historical data).
Income Statement
Consolidated Statements of Comprehensive Income (Loss) – USD ($) $ in Thousands 12 Months Ended
Dec. 31, 2021 Dec. 31, 2020 Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income (loss) $ 360,060 $ (549,177) $ 92,139
Other comprehensive income (loss):
Foreign currency translation adjustment (6,552) (5,060) 10,754
Unrealized gain (loss) on cash flow hedges, net of tax benefit (expense) of $(5,725), $1,791 and $7,798 for the years ended December 31, 2021, 2020 and 2019, respectively. 18,603 (18,075) (21,646)
Gain (loss) on intra-entity foreign currency transactions (476) 14,715 (886)
Total other comprehensive income (loss) 11,575 (8,420) (11,778)
Comprehensive income (loss) $ 371,635 $ (557,597) $ 80,361
Balance Sheet
Customer refund liabilities 164,294 203,399
Operating lease liabilities 138,664 162,561
Other current liabilities 73,746 92,503
Total current liabilities 1,450,176 1,413,276
Long term debt, net of current maturities 662,531 1,003,556
Operating lease liabilities, non-current 703,111 839,414
Other long term liabilities 86,584 98,389
Total liabilities 2,902,402 3,354,635
Stockholders’ equity
Additional paid-in capital 1,108,613 1,061,173
Retained earnings 1,027,833 673,855
Accumulated other comprehensive (income) loss (47,610) (59,185)
Total stockholders’ equity 2,088,994 1,675,993
Total liabilities and stockholders’ equity 4,991,396 5,030,628
Class A Common Stock
Stockholders’ equity
Common Stock 63 62
Class B Convertible Common Stock
Stockholders’ equity
Common Stock 11 11
Class C Common Stock
Stockholders’ equity
Common Stock $ 84 $ 77
Consolidated Balance Sheets (Parenthetical) – $ / shares Dec. 31, 2021 Dec. 31, 2020
Class A Common Stock
Commons stock, par value (USD per share) $ 0.0003 $ 0.0003
Common stock, authorized (in shares) 400,000,000 400,000,000
Common stock, shares issued (in shares) 188,650,987 188,603,686
Common stock, shares outstanding (in shares) 188,650,987 188,603,686
Class B Convertible Common Stock
Commons stock, par value (USD per share) $ 0.0003 $ 0.0003
Common stock, authorized (in shares) 34,450,000 34,450,000
Common stock, shares issued (in shares) 34,450,000 34,450,000
Common stock, shares outstanding (in shares) 34,450,000 34,450,000
Class C Common Stock
Commons stock, par value (USD per share) $ 0.0003 $ 0.0003
Common stock, authorized (in shares) 400,000,000 400,000,000
Common stock, shares issued (in shares) 253,161,064 231,953,667
Common stock, shares outstanding (in shares) 253,161,064 231,953,667
Statement of Cash Flows
Consolidated Statements of Cash Flows – USD ($) $ in Thousands 12 Months Ended
Dec. 31, 2021 Dec. 31, 2020 Dec. 31, 2019
Cash flows from operating activities
Net income (loss) $ 360,060 $ (549,177) $ 92,139
Adjustments to reconcile net income (loss) to net cash used in operating activities
Depreciation and amortization 141,144 164,984 186,425
Unrealized foreign currency exchange rate gain (loss) 18,877 (9,295) (2,073)
Loss on extinguishment of senior convertible notes 58,526 0 0
Loss on disposal of property and equipment 4,468 3,740 4,640
Gain on sale of the MyFitnessPal platform 0 (179,318) 0
Non-cash restructuring and impairment charges 26,938 470,543 39,000
Amortization of bond premium 16,891 12,070 254
Stock-based compensation 43,794 42,070 49,618
Deferred income taxes (2,642) 43,992 38,132
Changes in reserves and allowances (25,766) 10,347 (26,096)
Changes in operating assets and liabilities:
Accounts receivable (31,153) 167,614 (45,450)
Inventories 93,287 15,306 149,519
Prepaid expenses and other assets 10,224 18,603 24,334
Other non-current assets 79,782 (259,735) 19,966
Accounts payable 26,027 (40,673) 59,458
Accrued expenses and other liabilities (114,794) 318,532 (18,987)
Customer refund liability (38,861) (19,250) (80,710)
Income taxes payable and receivable (1,973) 2,511 18,862
Net cash provided by (used in) operating activities 664,829 212,864 509,031
Cash flows from investing activities
Purchases of property and equipment (69,759) (92,291) (145,802)
Sale of property and equipment 1,413 0 0
Sale of the MyFitnessPal platform 0 198,916 0
Purchase of businesses 0 (40,280) 0
Purchases of other assets 0 0 (1,311)
Net cash provided by (used in) investing activities (68,346) 66,345 (147,113)
Cash flows from financing activities
Proceeds from long term debt and revolving credit facility 0 1,288,753 25,000
Payments on long term debt and revolving credit facility (506,280) (800,000) (162,817)
Proceeds from capped call 91,722 0 0
Purchase of capped call 0 (47,850) 0
Employee taxes paid for shares withheld for income taxes (5,983) (3,675) (4,235)
Proceeds from exercise of stock options and other stock issuances 3,688 4,744 7,472
Payments of debt financing costs (1,884) (5,219) (2,553)
Other financing fees 0 100 63
Net cash provided by (used in) financing activities (418,737) 436,853 (137,070)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (23,391) 16,445 5,100
Net increase (decrease) in cash, cash equivalents and restricted cash 154,355 732,507 229,948
Cash, cash equivalents and restricted cash
Beginning of period 1,528,515 796,008 566,060
End of period 1,682,870 1,528,515 796,008
Non-cash investing and financing activities
Change in accrual for property and equipment 19,214 (13,875) (8,084)
Other supplemental information
Cash paid (received) for income taxes, net of refunds 42,623 24,443 23,352
Cash paid for interest, net of capitalized interest 25,226 28,626 18,031
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents 1,669,453 1,517,361 788,072
Restricted cash 13,417 11,154 7,936
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Total $ 1,682,870 $ 1,528,515 $ 796,008
Ratio analysis for the ratios shown on Table 1 in the Guide to Case Analysis (CA) of the textbook:
Profitability ratios
Liquidity ratios
Leverage ratios
Activity ratios
Price-to-earnings ratio
The changes between years are included in the calculations.
Competitor ratios to compare with the ratios that were calculated in item 2. These should be included on the same tab as the ratio analysis for the firm.
Financial analysis should include comparisons to the firm’s main competitor as well as to the industry. How does the financial position of the firm influence the strategic direction of the company? This section should not be used to define what each ratio is rather it should clearly provide analysis based on the calculations as to the strategic choices and implications of the firm’s financial position. A compare and contrast with the main competitor should be included in this section of narrative.
