Training The Street

275 Madison Avenue Suite 1201

New York, NY 10016 USA
+1 (800) 887-1320 (in the United States)
+1 (704) 927-9688 (outside the United States)

[email protected]

© 1999-2024 Training The Street LLC

All rights reserved.
 764564730.xlsx

Financial Modeling Training

Core I Model

x Subject Company

Ticker: COLM
Company name: Columbia Sportswear <== cell is named "name"
Sub-header #1: Dollars in millions, except per share <== cell is named "Subheader"
Sub-header #2: Dollars in millions <== cell is named "Subheader2"
Last Fiscal Year End: 31-Dec-21 <== cell is named "FYE"
Number of days in a year 365 <== cell is named "Days"

x Color Codes

Input Blue cells are for data input.

Reference Green cells are links to different worksheets.
Formula Black cells are formulas.
Warning Red cells are "warnings". Something unique has been done in the cell and red formatting brings attention to i

x Model Features

Core statements
Normalized income statement
Supporting schedules
Cash sweep
Interest calculated using average balances
Circularity switch
Simple equity schedule
Basic ratios
DCF

x END

For training purposes only!

 764564730.xlsx

rmatting brings attention to it.

For training purposes only!

 764564730.xlsx

Income Statement for Columbia Sportswear

Dollars in millions, except per share

Historical Year Ending December 31,

2019 2020 2021

x Sales $3,042.5 $2,501.6 $3,126.4

Cost of sales 1,526.8 1,277.7 1,513.9
x Gross profit 1,515.7 1,223.9 1,612.5

SG&A expenses (excludes dep. and amort.) 1,073.4 950.6 1,133.0

Net licensing (income) (15.5) (12.1) (18.4)
x EBITDA 457.8 285.3 497.8

Depreciation 59.8 60.9 54.2

Amortization 3.0 2.5 1.7
x EBIT 395.0 221.9 441.9

Interest expense 0.0 0.0 0.0

Interest (income) (8.3) (0.4) (1.4)
Other non-operating (income) / expense (2.2) (2.0) 0.4
x Pretax income 405.4 224.4 442.9

Income taxes 81.5 52.4 95.1

x Normalized net income $323.9 $172.0 $347.8

x Diluted weighted average shares (in millions) 68.493 66.772 66.415

x Normalized diluted earnings per share $4.73 $2.58 $5.24

Ratios & assumptions

Sales growth rate (17.8%) 25.0%
Gross margin 49.8% 48.9% 51.6%
SG&A expenses (as a % of sales) 35.3% 38.0% 36.2%
Net licensing (income) ($15.5) ($12.1) ($18.4)
EBIT Margin 13.0% 8.9% 14.1%
Other non-operating (income) / expense ($ amount) ($2.2) ($2.0) $0.4
Effective tax rate 20.1% 23.3% 21.5%
Diluted weighted average shares (in millions) 68.493 66.772 66.415

x Comments and Non-Recurring Items Adjustments

2019 2020 2021

x Benefit of lease terminations and settlements
2021 10-K, MD&A, p. 26 and p. 28; Note 9, p. 55
Pre-tax expense (income) (COGS) $0.0
Pre-tax expense (income) (SG&A) (8.6)
Total pre-tax expense (income) ($8.6)

Total pre-tax expense (income) ($8.6)

Implied after-tax expense (income) (6.3)
Tax adjustment ($2.3)

Estimated Tax Rate 26.2%

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 764564730.xlsx

x Impairment charge on prAna trademark

2021 10-K, MD&A, pgs. 27-28, pg.32 and p.53
Pre-tax expense (income) (COGS) $0.0
Pre-tax expense (income) (SG&A) 17.5
Total pre-tax expense (income) $17.5

Total pre-tax expense (income) $17.5

Implied after-tax expense (income) 13.2
Tax adjustment $4.3

Estimated Tax Rate 24.6%

x Retail impairment and store closure charges

2021 10-K, MD&A, p. 26. and p. 28
Pre-tax expense (income) (COGS) $0.0
Pre-tax expense (income) (SG&A) 28.8
Total pre-tax expense (income) $28.8

Total pre-tax expense (income) $28.8

Implied after-tax expense (income) 21.7
Tax adjustment $7.1

Estimated Tax Rate 24.6%

x Bad debt expense

2021 10-K, MD&A, p. 26
Pre-tax expense (income) (COGS) $0.0
Pre-tax expense (income) (SG&A) 19.7
Total pre-tax expense (income) $19.7

Total pre-tax expense (income) $19.7

Implied after-tax expense (income) 14.9
Tax adjustment $4.8

Estimated Tax Rate 24.6%

x COVID related expenses

2021 10-K, MD&A, p. 27
Pre-tax expense (income) (COGS) $0.0
Pre-tax expense (income) (SG&A) 18.9
Total pre-tax expense (income) $18.9

Total pre-tax expense (income) $18.9

Implied after-tax expense (income) 14.3
Tax adjustment $4.6

Estimated Tax Rate 24.6%

x Swiss tax reform package

2019 10-K, MD&A, p. 24
Pre-tax expense (income) (COGS) $0.0
Pre-tax expense (income) (SG&A) 0.0
Total pre-tax expense (income) $0.0

Total pre-tax expense (income) $0.0

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 764564730.xlsx

Implied after-tax expense (income) (6.6)

Tax adjustment $6.6

Estimated Tax Rate 22.6%

x Sensitivity Analysis

"One-way, vertical table"

2022 EPS Sensitivity Tables
x
Err:522
47.6% Err:522 Steps to complete the one-way data table
48.1% #VALUE! 1) Link the red ''Output Cell'' in cell E122 to the cell you want to ''study
48.6% #VALUE! 2) Highlight the range D122:E131
2022 49.1% #VALUE! 3) Select Data Table (Alt A W T)
Gross Margin 49.6% #VALUE! 4) Skip the row input cell. Leave it blank. For the column input cell sel
50.1% #VALUE! 5) Press ENTER then F9 to calculate
50.6% #VALUE! 6) Stress test your data!
51.1% #VALUE!
51.6% #VALUE!

0.5% Step function

"Two-way table"
Columbia Sportswear 2021 - 2026 EPS CAGR Sensitivity Table
x
2023 Sales Growth Rate
Err:522 5.0% 6.0% 7.0% 8.0% 9.0% 10.0%
48.3% Err:522 #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
48.8% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
49.3% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
2023 49.8% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Gross Margin 50.3% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
50.8% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
51.3% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
51.8% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
52.3% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

0.5% Step function

10.0% conditional formatting cell
Conditional formatting: (Alt H L N)

x END

For training purposes only!

 764564730.xlsx

Projected Year Ending December 31, 2021 - 2026

2022 2023 2024 2025 2026 CAGR

$3,470.3 $3,713.2 $3,954.6 $4,191.9 $4,422.4 7.2%

1,749.0 1,864.0 1,973.3 2,079.2 2,180.3
1,721.3 1,849.2 1,981.2 2,112.7 2,242.2 6.8%

1,256.3 1,336.8 1,403.9 1,467.2 1,525.7

(20.9) (20.9) (20.9) (20.9) (20.9)
485.9 533.3 598.3 666.4 737.3 8.2%
CIRC
56.0 70.2 86.9 105.8 126.7 1
1.7 1.7 0.7 0.0 0.0
FIX 461.5 510.7 560.7 610.6 6.7%
For Jump Starting
Err:522 Err:522 Err:522 Err:522 Err:522 0.0
Err:522 Err:522 Err:522 Err:522 Err:522 0.0
(1.3) (1.3) (1.3) (1.3) (1.3)
Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

Err:522 Err:522 Err:522 Err:522 Err:522

Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

63.000 60.250 59.000 57.000 54.000

Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

Step
11.0% 7.0% 6.5% 6.0% 5.5% (0.5%)
49.6% 49.8% 50.1% 50.4% 50.7% 0.3%
36.2% 36.0% 35.5% 35.0% 34.5% (0.5%)
($20.9) ($20.9) ($20.9) ($20.9) ($20.9) $0.0
#VALUE! 12.4% 12.9% 13.4% 13.8%
($1.3) ($1.3) ($1.3) ($1.3) ($1.3)
24.4% 24.4% 24.4% 24.4% 24.4%
63.000 60.250 59.000 57.000 54.000

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 764564730.xlsx

For training purposes only!

 764564730.xlsx

to the cell you want to ''study'' K29

For the column input cell select K33

Step function
11.0% 1.0%
#VALUE!
#VALUE! Steps to complete the two-way data table
#VALUE! 1) Link the ''Output Cell'' D139 to the cell you want to ''study'' Q29
#VALUE! 2) Highlight the range D139:K148
#VALUE! 3) Select Data Table (Alt A W T)
#VALUE! 4) Row input cell select L32. Column input cell select L33
#VALUE! 5) Press ENTER then F9 to calculate
#VALUE! 6) Stress test your data!
#VALUE!

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 764564730.xlsx

0 = "Off"
1 = "On"

or Jump Starting
0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0

For training purposes only!

 764564730.xlsx

Balance Sheet for Columbia Sportswear

Dollars in millions

Historical Year Ending December 31,

2019 2020 2021

x Cash $687.7 $791.9 $894.5

Accounts receivable, net 488.2 452.9 487.8
Inventories 606.0 556.5 654.4
Other current assets 93.9 54.2 86.3
Total current assets 1,875.7 1,855.6 2,123.0

x PP&E, net 346.7 309.8 291.1

Definite life intangibles 8.2 5.6 4.0
Indefinite life intangibles 115.4 97.9 97.9
Goodwill 68.6 68.6 68.6
Operating lease assets 394.5 339.2 330.9
Other long-term assets 122.5 159.8 160.6
Total assets $2,931.6 $2,836.6 $3,076.1

x Accounts payable $255.4 $206.7 $283.3

Other current liabilities 311.5 280.5 329.6
Current operating lease liabilities 64.0 65.5 67.4
Total current liabilities 630.9 552.6 680.4

x Revolver 0.0 0.0 0.0

Long-term debt 0.0 0.0 0.0
Non-current operating lease liabilities 371.5 353.2 317.7
Deferred income taxes 6.4 5.2 0.0
Other long-term liabilities 73.4 92.8 79.8
Total liabilities 1,082.1 1,003.8 1,077.9

x Total stockholder's equity 1,849.4 1,832.8 1,989.3

Total liabilities and equity $2,931.6 $2,836.6 $3,067.1

x Parity check (A = L+E) 0.000 0.000 9.000

x END

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 764564730.xlsx

Projected Year Ending December 31,

2022 2023 2024 2025 2026

Err:522 Err:522 Err:522 Err:522 Err:522

541.9 579.9 617.6 654.6 690.6
747.5 786.5 821.8 854.5 884.0
86.8 92.8 98.9 104.8 110.6
Err:522 Err:522 Err:522 Err:522 Err:522

325.1 355.2 379.0 394.8 400.7

2.3 0.7 0.0 0.0 0.0
97.9 97.9 97.9 97.9 97.9
68.6 68.6 68.6 68.6 68.6
330.9 330.9 330.9 330.9 330.9
160.6 160.6 160.6 160.6 160.6
Err:522 Err:522 Err:522 Err:522 Err:522

$325.8 $337.1 $346.0 $353.2 $358.4

349.8 372.8 394.7 415.8 436.1
67.4 67.4 67.4 67.4 67.4
743.1 777.3 808.1 836.4 861.9

Err:522 Err:522 Err:522 Err:522 Err:522

0.0 0.0 0.0 0.0 0.0
317.7 317.7 317.7 317.7 317.7
0.0 0.0 0.0 0.0 0.0
79.8 79.8 79.8 79.8 79.8
Err:522 Err:522 Err:522 Err:522 Err:522

Err:522 Err:522 Err:522 Err:522 Err:522

Err:522 Err:522 Err:522 Err:522 Err:522

Err:522 Err:522 Err:522 Err:522 Err:522

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 764564730.xlsx

Projected Cash Flow for Columbia Sportswear

Dollars in millions

Operating activities
Net income
Depreciation
Amortization
(Increase) / decrease in operating working capital
Change in other long-term assets and liabilities
x Cash flow from operating activities

Investing activities
Capital expenditures
Additions to definite life intangibles
x Cash flow from investing activities

Financing activities
Issuance / (repayment) of revolver
Issuance of long-term debt
(Repayment) of long-term debt
Share issuance / (repurchase)
Dividends
x Cash flow from financing activities

Net change in cash

Beginning cash balance
x Ending cash balance

x Cash flow available for financing activities

x END

For training purposes only!

 764564730.xlsx

Projected Year Ending December 31,

2022 2023 2024 2025 2026

Err:522 Err:522 Err:522 Err:522 Err:522

56.0 70.2 86.9 105.8 126.7
1.7 1.7 0.7 0.0 0.0
(85.0) (48.7) (48.2) (47.3) (45.9)
0.0 0.0 0.0 0.0 0.0
Err:522 Err:522 Err:522 Err:522 Err:522

90.0 (100.3) (110.7) (121.6) (132.7)

0.0 0.0 0.0 0.0 0.0
90.0 (100.3) (110.7) (121.6) (132.7)

Err:522 Err:522 Err:522 Err:522 Err:522

0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
(400.0) (100.0) (200.0) (300.0) (350.0)
Err:522 Err:522 Err:522 Err:522 Err:522
Err:522 Err:522 Err:522 Err:522 Err:522

Err:522 Err:522 Err:522 Err:522 Err:522

894.5 Err:522 Err:522 Err:522 Err:522
Err:522 Err:522 Err:522 Err:522 Err:522

Err:522 Err:522 Err:522 Err:522 Err:522

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 764564730.xlsx

Operating Working Capital Schedule for Columbia Sportswear

Dollars in millions

Historical Year Ending December 31,

2019 2020 2021

Sales $3,042.5 $2,501.6 $3,126.4

Cost of goods sold 1,526.8 1,277.7 1,513.9

Operating working capital balances

x Accounts receivable, net $488.2 $452.9 $487.8
Inventories 606.0 556.5 654.4
Other current assets 93.9 54.2 86.3
Total non-cash current assets $1,188.1 $1,063.7 $1,228.5

x Accounts payable $255.4 $206.7 $283.3

Other current liabilities 311.5 280.5 329.6
Total non-debt current liabilities $566.9 $487.2 $613.0

Operating working capital / (deficit) $621.2 $576.5 $615.5

x (Increase) / decrease in operating working capital $44.7 ($39.0)

Ratios and assumptions

x Accounts receivable, net (collection period in days) 58.6 66.1 56.9
Inventories (days outstanding) 144.9 159.0 157.8
Other current assets (as % of sales) 3.1% 2.2% 2.8%

Accounts payable (days outstanding) 61.0 59.0 68.3

Other current liabilities (as % cost of sales) 20.4% 22.0% 21.8%

x END

For training purposes only!

 764564730.xlsx

Projected Year Ending December 31,

2022 2023 2024 2025 2026

$3,470.3 $3,713.2 $3,954.6 $4,191.9 $4,422.4

1,749.0 1,864.0 1,973.3 2,079.2 2,180.3

$541.9 $579.9 $617.6 $654.6 $690.6

747.5 786.5 821.8 854.5 884.0
86.8 92.8 98.9 104.8 110.6
$1,376.2 $1,459.2 $1,538.2 $1,613.9 $1,685.2

$325.8 $337.1 $346.0 $353.2 $358.4

349.8 372.8 394.7 415.8 436.1
$675.7 $709.9 $740.7 $769.0 $794.4

$700.6 $749.3 $797.5 $844.9 $890.8

($85.0) ($48.7) ($48.2) ($47.3) ($45.9)

Step function
57.0 57.0 57.0 57.0 57.0 0.0
156.0 154.0 152.0 150.0 148.0 (2.0)
2.5% 2.5% 2.5% 2.5% 2.5%

68.0 66.0 64.0 62.0 60.0 (2.0)

20.0% 20.0% 20.0% 20.0% 20.0%

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 764564730.xlsx

Depreciation Schedule for Columbia Sportswear

Dollars in millions

Historical Year Ending December 31,

2019 2020 2021

x Sales $3,042.5 $2,501.6 $3,126.4

x Beginning PP&E, net

Capital expenditures DO NOT BACK RECONCILE
(Depreciation expense)
Ending PP&E, net $346.7 $309.8 $291.1

x Ratios and assumptions

Capital expenditures $123.5 $28.8 $34.7
Capital expenditures as % of sales 4.1% 1.1% 1.1%
Depreciation expense $59.8 $60.9 $54.2
Depreciation as % of capex 48.4% 211.8% 156.0%
Depreciation as % of PP&E, net 17.3% 19.7% 18.6%

x END

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 764564730.xlsx

Projected Year Ending December 31,

2022 2023 2024 2025 2026

$3,470.3 $3,713.2 $3,954.6 $4,191.9 $4,422.4

$291.1 $325.1 $355.2 $379.0 $394.8

90.0 100.3 110.7 121.6 132.7
(56.0) (70.2) (86.9) (105.8) (126.7)
$325.1 $355.2 $379.0 $394.8 $400.7

$90.0 $100.3 $110.7 $121.6 $132.7 Step function

2.6% 2.7% 2.8% 2.9% 3.0% 0.1%
$56.0 $70.2 $86.9 $105.8 $126.7
62.2% 70.0% 78.5% 87.0% 95.5% 8.5%
17.2% 19.8% 22.9% 26.8% 31.6%

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 764564730.xlsx

Amortization Schedule for Columbia Sportswear

Dollars in millions

Historical Year Ending December 31,

2019 2020 2021

x Sales $3,042.5 $2,501.6 $3,126.4

Beginning definite life intangibles, net

Additions to definite life intangibles DO NOT BACK RECONCILE
(Amortization expense)
Ending definite life intangibles, net $8.2 $5.6 $4.0

x Ratios and assumptions

Additions to definite life intangibles $0.0 $0.0 $0.0
Additions as % of sales 0.0% 0.0% 0.0%
Amortization expense $3.0 $2.5 $1.7
Amortization as % of definite life intangibles, net 36.7% 44.3% 42.6%

x END

For training purposes only!

 764564730.xlsx

Projected Year Ending December 31,

2022 2023 2024 2025 2026

$3,470.3 $3,713.2 $3,954.6 $4,191.9 $4,422.4

$4.0 $2.3 $0.7 $0.0 $0.0

0.0 $0.0 $0.0 $0.0 $0.0
(1.7) ($1.7) ($0.7) $0.0 $0.0
$2.3 $0.7 $0.0 $0.0 $0.0

Step function
$0.0 $0.0 $0.0 $0.0 $0.0 $0.0
0.0% $0.0 $0.0 $0.0 $0.0
$1.7 $1.7 $0.7 $0.0 $0.0
70.6% NM NM NM NM

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 764564730.xlsx

Other Long-Term Items Schedule for Columbia Sportswear

Dollars in millions

Historical Year Ending December 31,

2019 2020 2021

x Other Long-Term Assets

Indefinite life intangibles $115.4 $97.9 $97.9
Goodwill 68.6 68.6 68.6
Operating lease assets 394.5 339.2 330.9
Other long-term assets 122.5 159.8 160.6
Total other long-term assets $701.0 $665.5 $658.0
(Increase) / decrease in long-term other assets 35.5 7.5

x Other Long-Term Liabilities

Current operating lease liabilities $64.0 $65.5 $67.4
Non-current operating lease liabilities 371.5 353.2 317.7
Deferred income taxes 6.4 5.2 0.0
Other long-term liabilities 73.4 92.8 79.8
Total other long-term liabilities $515.2 $516.6 $464.9
Increase / (decrease) in other long-term liabilities 1.4 (51.7)

Change in other long-term assets and liabilities $36.9 ($44.2)

x END

For training purposes only!

 764564730.xlsx

Projected Year Ending December 31,

2022 2023 2024 2025 2026

$97.9 $97.9 $97.9 $97.9 $97.9

68.6 68.6 68.6 68.6 68.6
330.9 330.9 330.9 330.9 330.9
160.6 160.6 160.6 160.6 160.6
$658.0 $658.0 $658.0 $658.0 $658.0
0.0 0.0 0.0 0.0 0.0

$67.4 $67.4 $67.4 $67.4 $67.4

317.7 317.7 317.7 317.7 317.7
0.0 0.0 0.0 0.0 0.0
79.8 79.8 79.8 79.8 79.8
$464.9 $464.9 $464.9 $464.9 $464.9
0.0 0.0 0.0 0.0 0.0

$0.0 $0.0 $0.0 $0.0 $0.0

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 764564730.xlsx

Shareholders' Equity Schedule for Columbia Sportswear

Dollars in millions

Historical Year Ending December 31,

2019 2020 2021

x Beginning equity balance

Net income DO NOT BACK RECONCILE
Share issuance / (repurchase)
Dividends
x Ending equity balance $1,849.4 $1,832.8 $1,989.3

x Ratios and assumptions

Dividends $65.1 $17.2 $68.6
Net income 323.9 172.0 347.8
Dividend payout ratio 20.1% 10.0% 19.7%
Share issuance / (repurchases) ($121.7) ($132.9) ($165.4)

x END

For training purposes only!

 764564730.xlsx

Projected Year Ending December 31,

2022 2023 2024 2025 2026

$1,989.3 Err:522 Err:522 Err:522 Err:522

Err:522 Err:522 Err:522 Err:522 Err:522
(400.0) (100.0) (200.0) (300.0) (350.0)
Err:522 Err:522 Err:522 Err:522 Err:522
Err:522 Err:522 Err:522 Err:522 Err:522

Err:522 Err:522 Err:522 Err:522 Err:522

Err:522 Err:522 Err:522 Err:522 Err:522 Step function
20.0% 20.0% 20.0% 20.0% 20.0% 0.0%
($400.0) ($100.0) ($200.0) ($300.0) ($350.0)

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 764564730.xlsx

Debt and Interest Schedule for Columbia Sportswear

Dollars in millions

Historical Year Ending December 31,

2019 2020 2021

x Cash flow available for financing activities

Share issuance / (repurchase)
Dividends
Plus: beginning cash balance
Less: minimum cash balance
x Cash available for debt repayment
Long-term debt issuance
Long-term debt (repayment)
x Cash available for revolver

Revolver
Beginning balance
Issuance / (repayment) of revolver
x Ending balance $0.0 $0.0 $0.0

Long-term debt
Beginning balance
Issuance
(Repayment)
x Ending balance $0.0 $0.0 $0.0

Revolver Average balances

Interest rate
x Interest expense

Long-term debt Average balances

Interest rate
x Interest expense

x Total interest expense

Cash Average balances

Interest rate
x Interest (income)

x Ratios and assumptions

Minimum cash balance
Long-term debt issuance
Long-term debt repayment
Interest rate on revolver
Interest rate on long-term debt
Interest rate on cash

x END

For training purposes only!

 764564730.xlsx

Projected Year Ending December 31,

2022 2023 2024 2025 2026

Err:522 Err:522 Err:522 Err:522 Err:522

(400.0) (100.0) (200.0) (300.0) (350.0)
Err:522 Err:522 Err:522 Err:522 Err:522
894.5 Err:522 Err:522 Err:522 Err:522
(750.0) (750.0) (750.0) (750.0) (750.0)
Err:522 Err:522 Err:522 Err:522 Err:522
0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
Err:522 Err:522 Err:522 Err:522 Err:522

$0.0 Err:522 Err:522 Err:522 Err:522

Err:522 Err:522 Err:522 Err:522 Err:522
Err:522 Err:522 Err:522 Err:522 Err:522

$0.0 $0.0 $0.0 $0.0 $0.0

0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
$0.0 $0.0 $0.0 $0.0 $0.0

Err:522 Err:522 Err:522 Err:522 Err:522

3.29% 3.29% 3.29% 3.29% 3.29%
Err:522 Err:522 Err:522 Err:522 Err:522

$0.0 $0.0 $0.0 $0.0 $0.0

0.00% 0.00% 0.00% 0.00% 0.00%
$0.0 $0.0 $0.0 $0.0 $0.0

Err:522 Err:522 Err:522 Err:522 Err:522

Err:522 Err:522 Err:522 Err:522 Err:522

0.70% 0.70% 0.70% 0.70% 0.70%
Err:522 Err:522 Err:522 Err:522 Err:522

$750.0 $750.0 $750.0 $750.0 $750.0

0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
3.29% 3.29% 3.29% 3.29% 3.29%
0.00% 0.00% 0.00% 0.00% 0.00%
0.70% 0.70% 0.70% 0.70% 0.70%

For training purposes only!

 764564730.xlsx

Ratio Analysis for Columbia Sportswear

Dollars in millions

Historical Year Ending December 31,

2019 2020 2021

Growth rates and margins

x Sales $3,042.5 $2,501.6 $3,126.4
Gross profit 1,515.7 1,223.9 1,612.5
EBITDA 457.8 285.3 497.8
EBIT 395.0 221.9 441.9
Normalized net income 323.9 172.0 347.8

x Sales growth (17.8%) 25.0%

Gross margin 49.8% 48.9% 51.6%
EBITDA margin 15.0% 11.4% 15.9%
EBIT margin 13.0% 8.9% 14.1%
Normalized net margin 10.6% 6.9% 11.1%

Asset efficiency
x PP&E, Net $346.7 $309.8 $291.1
OWC 621.2 576.5 615.5
Capex 123.5 28.8 34.7
Depreciation 59.8 60.9 54.2

x PP&E / Sales 13.1% 9.6%

OWC / Sales 23.9% 19.1%
Capex / Depreciation 2.1x 0.5x 0.6x

Credit
Debt $0.0 $0.0 $0.0
Capital 1,849.4 1,832.8 1,989.3

Debt / EBITDA 0.0x 0.0x 0.0x

Debt / Capital 0.0% 0.0% 0.0%

For training purposes only!

 764564730.xlsx

Projected Year Ending December 31,

2022 2023 2024 2025 2026

$3,470.3 $3,713.2 $3,954.6 $4,191.9 $4,422.4

1,721.3 1,849.2 1,981.2 2,112.7 2,242.2
485.9 533.3 598.3 666.4 737.3
FIX 461.5 510.7 560.7 610.6
Err:522 Err:522 Err:522 Err:522 Err:522

11.0% 7.0% 6.5% 6.0% 5.5%

49.6% 49.8% 50.1% 50.4% 50.7%
14.0% 14.4% 15.1% 15.9% 16.7%
#VALUE! 12.4% 12.9% 13.4% 13.8%
Err:522 Err:522 Err:522 Err:522 Err:522

$325.1 $355.2 $379.0 $394.8 $400.7

700.6 749.3 797.5 844.9 890.8
90.0 100.3 110.7 121.6 132.7
56.0 70.2 86.9 105.8 126.7

8.9% 9.2% 9.3% 9.2% 9.0%

19.0% 19.5% 19.6% 19.6% 19.6%
1.6x 1.4x 1.3x 1.1x 1.0x

Err:522 Err:522 Err:522 Err:522 Err:522

Err:522 Err:522 Err:522 Err:522 Err:522

Err:522 Err:522 Err:522 Err:522 Err:522

Err:522 Err:522 Err:522 Err:522 Err:522

For training purposes only!

 764564730.xlsx

Columbia Sportswear Parity Checking

Dollars in millions

Select the first year out of parity Balance Sheet Cash Flow
x 2022 Err:522 2021 2022 Difference 2022

Cash 894.549 Err:522 Err:522 Err:522

Accounts receivable, net 487.803 541.938 (54.135)
Inventories 654.379 747.532 (93.153)
Other current assets 86.306 86.758 (0.452)
Total non-cash current assets ---> (147.740)

PP&E, net 291.088 325.088 (34.000) 146.000

Definite life intangibles 3.987 2.337 1.650 1.650
Indefinite life intangibles 97.921 97.921 0.000
Goodwill 68.594 68.594 0.000
Operating lease assets 330.928 330.928 0.000
Other long-term assets 160.573 160.573 0.000
Total other long-term assets ---> 0.000

Accounts payable 283.349 325.847 42.498

Other current liabilities 329.612 349.807 20.195
Current operating lease liabilities 67.429 67.429 0.000

Working Capital Total non-cash current assets ---> (147.740)

Total non-debt current liabilities ---> 62.693
(Increase) / decrease in working capital ---> (85.047) (85.047)

Other LT Items Total other long-term assets ---> 0.000

Total other long-term liabilities ---> 0.000
(Increase) / decrease in other long-term assets and liabilities ---> 0.000 0.000

Revolver 0.000 Err:522 Err:522 Err:522

Long-term debt 0.000 0.000 0.000 0.000
Non-current operating lease liabilities 317.666 317.666 0.000
Deferred income taxes 0.000 0.000 0.000
Other long-term liabilities 79.820 79.820 0.000
Total stockholder's equity 1,989.252 Err:522 Err:522 Err:522
Parity Check 9.000 Err:522 Err:522 Err:522
x Err:522

x
END

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 764564730.xlsx

Reconciliations for FYE 2022

Check
PP&E, net
Err:522 Balance Sheet Cash Flow
Beginning Bal. Ending Bal. Difference Depr. CapEx Total
$291.088 $325.088 ($34.000) $56.000 $90.000 $146.000

Definite life intangibles

Balance Sheet Cash Flow
(180.000) Beginning Bal. Ending Bal. Difference Amort. Additions Total
0.000 $3.987 $2.337 $1.650 $1.650 $0.000 $1.650

Long-term debt
Balance Sheet Cash Flow
Beginning Bal. Ending Bal. Difference Issuance Payment Total
$0.000 $0.000 $0.000 $0.000 $0.000 $0.000

Total stockholder's equity

Balance Sheet Cash Flow
Beginning Bal. Ending Bal. Difference NI Dividends Buyback
$1,989.252 Err:522 Err:522 Err:522 ($400.000) Err:522

0.000

0.000

Err:522
0.000

Err:522

For training purposes only!

 764564730.xlsx

ow
Total
Err:522

For training purposes only!

 764564730.xlsx

Discounted Cash Flow Analysis for Columbia Sportswear

Dollars in millions, except per share

Historical Year Ending December 31,

2019 2020 2021

x Sales $0.0 $0.0 $0.0

Effective tax rate 0.0% 0.0% 0.0%

EBITDA 0.0 0.0 0.0

Less: Depreciation 0.0 0.0 0.0
Less: Amortization 0.0 0.0 0.0
EBIT 0.0 0.0 0.0
Less: Taxes 0.0 0.0 0.0
x Tax-effected EBIT 0.0 0.0 0.0

Plus: Depreciation
Plus: Amortization
Less: Capital expenditures
Less: Additions to definite life intangibles
+ / - Changes in working capital
+ / - Changes in other assets and liabilities

x Unlevered Free Cash Flow

Unlevered Free Cash Flow Growth Rate

Perpetuity Growth Method

Weighted average cost of capital: 11.0%

Net present value of free cash flow (b) $0.0

Growth rate of FCF after 2026 3.0%

Terminal value $0.0
Present value of the terminal value (c) 0.0

Enterprise value $0.0

Plus: Net cash (e) 414.2
Equity value $0.0

Diluted shares: 62.461

Equity value per share (f) $0.00

Implied EBITDA Exit Multiple

Terminal year unlevered free cash flow $0.0
Weighted average cost of capital 11.0%
Growth rate of free cash flow after 2026 3.0%
2026 EBITDA $0.0
Implied EBITDA Exit Multiple: #DIV/0!
#DIV/0!

Share Price Analysis

Share price as of September 1, 2022 $71.72
Implied DCF share price 0.00

For training purposes only!

 764564730.xlsx

Premium / (discount) to current share price (100.0%)

Consensus price target as of September 1, 2022 $94.76

x a) Projections based on internal estimates.

b) Present values calculated as of 9/1/22.
c) Discounted 5 years; based on 2026 unlevered free cash flow of $0.0 million.
d) Discounted 5 years; based on 2026 EBITDA of $0.0 million.
e) Net Cash includes market value of total debt less cash & equivalents, ST inv. and marketable securities.
f) Based on 62.461 million diluted shares outstanding.
Many practitioners use the latest available diluted shares as an estimate.

PV date: 9/1/2022 See cell named "pv.date"

Date of net debt and shares: 6/30/2022 See cell named "bs.date"
Valuation date: 9/1/2022
Diluted number of shares: 62.461

x DCF Sensitivity Analysis

x Equity Value Per Share (Perpetuity Growth Method)

Weighted average cost of

x $0.00 10.00% 10.25% 10.50% 10.75%
1.6%
1.8%
2.0%
2.2%
2.4%
Terminal 2.6%
growth 2.8%
rate 3.0%
3.2%
3.4%
3.6%
3.8%
4.0%
4.2%

0.20%

x Equity Value Per Share (EBITDA Exit Multiple Method)

Weighted average cost of
x $0.00 10.00% 10.25% 10.50% 10.75%
4.9x
5.2x
5.5x
5.8x
6.1x
EBITDA 6.4x

For training purposes only!

 764564730.xlsx

exit 6.7x
multiple 7.0x
7.3x
7.6x
7.9x
8.2x
8.5x
8.8x

0.30x

x END

For training purposes only!

 764564730.xlsx

Projected Year Ending December 31, 2021-2026

2022 2023 2024 2025 2026 CAGR

$0.0 $0.0 $0.0 $0.0 $0.0 0.0%

0.0% 0.0% 0.0% 0.0% 0.0%

0.0 0.0 0.0 0.0 0.0 0.0%

0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0%
0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0

$0.0 $0.0 $0.0 $0.0 $0.0

0.0% 0.0% 0.0% 0.0%

EBITDA Multiple Method

Weighted average cost of capital: 11.0%

Net present value of free cash flow (b) $0.0

Exit multiple 7.0x

Terminal value $0.0
Present value of the terminal value (d) 0.0

Enterprise value $0.0

Plus: Net cash (e) 414.2
Equity value $0.0

Diluted shares: 62.461

Equity value per share (f) $0.00

Implied Perpetuity Growth Rate

Terminal year EBITDA $0.0
Weighted average cost of capital 11.0%
Multiple 7.0x
Terminal year unlevered free cash flow $0.0
Implied Growth Rate: #DIV/0!
#DIV/0!

Share Price Analysis

Share price as of September 1, 2022 $71.72
Implied DCF share price 0.00

For training purposes only!

 764564730.xlsx

Premium / (discount) to current share price (100.0%)

Consensus price target as of March 4, 2014 $94.76

Weighted average cost of capital

11.00% 11.25% 11.50% 11.75% 12.00% 0.25%

Steps to complete the data table

1) Link the ''Output Cell'' F79 to the cell you want to ''stud
2) Highlight the range F79:O93
3) Select Data Table (Alt A W T)
4) Row input cell select I30. Column input cell select I33
5) Press ENTER then F9
6) Stress test your data!

Weighted average cost of capital

11.00% 11.25% 11.50% 11.75% 12.00% 0.25%

Steps to complete the data table

1) Link the ''Output Cell'' F101 to the cell you want to ''stu
2) Highlight the range F101:O115
3) Select Data Table (Alt A W T)

For training purposes only!

 764564730.xlsx

4) Row input cell select O30. Column input cell select O3

5) Press ENTER then F9
6) Stress test your data!

For training purposes only!

 764564730.xlsx

to the cell you want to ''study'' I43

Column input cell select I33

1 to the cell you want to ''study'' O43

For training purposes only!

 764564730.xlsx

Column input cell select O33

For training purposes only!

 764564730.xlsx

Discounted Cash Flow Analysis for Columbia Sportswear

Dollars in millions, except per share

Historical Year Ending December 31,

2019 2020 2021

x Sales $3,042.5 $2,501.6 $3,126.4

Effective tax rate 20.1% 23.3% 21.5%

EBITDA 457.8 285.3 497.8

Less: Depreciation (59.8) (60.9) (54.2)
Less: Amortization (3.0) (2.5) (1.7)
EBIT 395.0 221.9 441.9
Less: Taxes (79.4) (51.8) (94.9)
x Tax-effected EBIT 315.5 170.1 347.0

Plus: Depreciation
Plus: Amortization
Less: Capital expenditures
Less: Additions to definite life intangibles
+ / - Changes in working capital
+ / - Changes in other assets and liabilities

x Unlevered Free Cash Flow

Unlevered Free Cash Flow Growth Rate

Perpetuity Growth Method

Weighted average cost of capital: 11.0%

Net present value of free cash flow (b) $1,279.5

Growth rate of FCF after 2026 3.0%

Terminal value $5,275.4
Present value of the terminal value (c) 3,130.7

Enterprise value $4,410.3

Plus: Net cash (e) 414.2
Equity value $4,824.5

Diluted shares: 62.461

Equity value per share (f) $77.24

Implied EBITDA Exit Multiple

Terminal year unlevered free cash flow $409.7
Weighted average cost of capital 11.0%
Growth rate of free cash flow after 2026 3.0%
2026 EBITDA $737.3
Implied EBITDA Exit Multiple: 7.2x
($409.7 x (1+3.0%)) / ($737.3 x (11.00% - 3.0%)) = 7.2x

Share Price Analysis

Share price as of September 1, 2022 $71.72
Implied DCF share price 77.24

For training purposes only!

 764564730.xlsx

Premium / (discount) to current share price 7.7%

Consensus price target as of September 1, 2022 $94.76

x a) Projections based on internal estimates.

b) Present values calculated as of 9/1/22.
c) Discounted 5 years; based on 2026 unlevered free cash flow of $409.7 million.
d) Discounted 5 years; based on 2026 EBITDA of $737.3 million.
e) Net Cash includes market value of total debt less cash & equivalents, ST inv. and marketable securities.
f) Based on 62.461 million diluted shares outstanding.
Many practitioners use the latest available diluted shares as an estimate.

PV date: 9/1/2022 See cell named "pv.date"

Date of net debt and shares: 6/30/2022 See cell named "bs.date"
Valuation date: 9/1/2022
Diluted number of shares: 62.461

x DCF Sensitivity Analysis

x Equity Value Per Share (Perpetuity Growth Method)

Weighted average cost of

x $77.24 10.00% 10.25% 10.50% 10.75%
1.6%
1.8%
2.0%
2.2%
2.4%
Terminal 2.6%
growth 2.8%
rate 3.0%
3.2%
3.4%
3.6%
3.8%
4.0%
4.2%

0.20%

x Equity Value Per Share (EBITDA Exit Multiple Method)

Weighted average cost of
x $76.16 10.00% 10.25% 10.50% 10.75%
4.9x
5.2x
5.5x
5.8x
6.1x
EBITDA 6.4x

For training purposes only!

 764564730.xlsx

exit 6.7x
multiple 7.0x
7.3x
7.6x
7.9x
8.2x
8.5x
8.8x

0.30x

x END

For training purposes only!

 764564730.xlsx

Projected Year Ending December 31, 2021-2026

2022 2023 2024 2025 2026 CAGR

$3,470.3 $3,713.2 $3,954.6 $4,191.9 $4,422.4 7.2%

24.4% 24.4% 24.4% 24.4% 24.4%

485.9 533.3 598.3 666.4 737.3 8.2%

(56.0) (70.2) (86.9) (105.8) (126.7)
(1.7) (1.7) (0.7) 0.0 0.0
428.3 461.5 510.7 560.7 610.6 6.7%
(104.5) (112.6) (124.6) (136.8) (149.0)
323.8 348.9 386.1 423.9 461.6

56.0 70.2 86.9 105.8 126.7

1.7 1.7 0.7 0.0 0.0
90.0 (100.3) (110.7) (121.6) (132.7)
0.0 0.0 0.0 0.0 0.0
(85.0) (48.7) (48.2) (47.3) (45.9)
0.0 0.0 0.0 0.0 0.0

$386.4 $271.7 $314.7 $360.7 $409.7

(29.7%) 15.8% 14.6% 13.6%

EBITDA Multiple Method

Weighted average cost of capital: 11.0%

Net present value of free cash flow (b) $1,279.5

Exit multiple 7.0x

Terminal value $5,161.3
Present value of the terminal value (d) 3,063.0

Enterprise value $4,342.5

Plus: Net cash (e) 414.2
Equity value $4,756.7

Diluted shares: 62.461

Equity value per share (f) $76.16

Implied Perpetuity Growth Rate

Terminal year EBITDA $737.3
Weighted average cost of capital 11.0%
Multiple 7.0x
Terminal year unlevered free cash flow $409.7
Implied Growth Rate: 2.8%
($737.3 x 7.0 x 11.00%) - $409.7) / ($409.7 + ($737.3 x 7.0)) = 2.8%

Share Price Analysis

Share price as of September 1, 2022 $71.72
Implied DCF share price 76.16

For training purposes only!

 764564730.xlsx

Premium / (discount) to current share price 6.2%

Consensus price target as of March 4, 2014 $94.76

Weighted average cost of capital

11.00% 11.25% 11.50% 11.75% 12.00% 0.25%

Steps to complete the data table

1) Link the ''Output Cell'' F79 to the cell you want to ''stud
2) Highlight the range F79:O93
3) Select Data Table (Alt A W T)
4) Row input cell select I30. Column input cell select I33
5) Press ENTER then F9
6) Stress test your data!

Weighted average cost of capital

11.00% 11.25% 11.50% 11.75% 12.00% 0.25%

Steps to complete the data table

1) Link the ''Output Cell'' F101 to the cell you want to ''stu
2) Highlight the range F101:O115
3) Select Data Table (Alt A W T)

For training purposes only!

 764564730.xlsx

4) Row input cell select O30. Column input cell select O3

5) Press ENTER then F9
6) Stress test your data!

For training purposes only!

 764564730.xlsx

to the cell you want to ''study'' I43

Column input cell select I33

1 to the cell you want to ''study'' O43

For training purposes only!

 764564730.xlsx

Column input cell select O33

For training purposes only!