About WWE
WWE, a publicly traded company WWE +3.54% , is an integrated media organization and recognized leader in global entertainment. The company consists of a portfolio of businesses that create and deliver original content 52 weeks a year to a global audience. WWE is committed to family friendly entertainment on its television programming, pay-per-view, digital media and publishing platforms. WWE programming is broadcast in more than 150 countries and 30 languages and reaches more than 650 million homes worldwide. The company is headquartered in Stamford, Conn., with offices in New York, Los Angeles, London, Miami, Mexico City, Mumbai, Shanghai, Singapore, Munich and Tokyo.
Additional information on WWE WWE +3.54% can be found at wwe.com and corporate.wwe.com. For information on our global activities, go tohttp://www.wwe.com/worldwide/ .
Trademarks: All WWE programming, talent names, images, likenesses, slogans, wrestling moves, trademarks, logos and copyrights are the exclusive property of WWE and its subsidiaries. All other trademarks, logos and copyrights are the property of their respective owners.
Forward-Looking Statements: This press release contains forward-looking statements pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995, which are subject to various risks and uncertainties. These risks and uncertainties include, without limitation, risks relating to entering into, maintaining and renewing key agreements, including television and pay-per-view programming and our new network distribution agreements; risks relating to the launch and maintenance of our new network; the need for continually developing creative and entertaining programming; the continued importance of key performers and the services of Vincent McMahon; the conditions of the markets in which we compete and acceptance of the Company's brands, media and merchandise within those markets; uncertainties relating to regulatory matters; risks resulting from the highly competitive and fragmented nature of our markets; uncertainties associated with international markets; the importance of protecting our intellectual property and complying with the intellectual property rights of others; the risk of accidents or injuries during our physically demanding events; risks associated with producing and traveling to and from our large live events, both domestically and internationally; risks relating to our film business; risks relating to new businesses and strategic investments; risks relating to our computer systems and online operations; risks relating to general economic conditions and our exposure to bad debt risk; risks relating to litigation; risks relating to market expectations for our financial performance; risks relating to our revolving credit facility specifically and capital markets more generally; risks relating to the large number of shares of common stock controlled by members of the McMahon family and the possibility of the sale of their stock by the McMahon's or the perception of the possibility of such sales; the relatively small public float of our stock; and other risks and factors set forth from time to time in Company filings with the Securities and Exchange Commission. Actual results could differ materially from those currently expected or anticipated. In addition, our dividend is dependent on a number of factors, including, among other things, our liquidity and historical and projected cash flow, strategic plan (including alternative uses of capital), our financial results and condition, contractual and legal restrictions on the payment of dividends, general economic and competitive conditions and such other factors as our Board of Directors may consider relevant.
| World Wrestling Entertainment, Inc. | ||||||||||||||
| Three Months Ended | ||||||||||||||
| March 31, | March 31, | |||||||||||||
| Net revenues | $ | 125.6 | $ | 124.0 | ||||||||||
| Cost of revenues | 84.8 | 74.9 | ||||||||||||
| Selling, general and administrative expenses | 48.0 | 37.8 | ||||||||||||
| Depreciation and amortization | 5.0 | 5.2 | ||||||||||||
| Operating (loss) income | (12.2 | ) | 6.1 | |||||||||||
| Investment income, net | 0.3 | 0.4 | ||||||||||||
| Interest expense | (0.5 | ) | (0.4 | ) | ||||||||||
| Other expense, net | (0.1 | ) | (1.3 | ) | ||||||||||
| (Loss) income before income taxes | (12.5 | ) | 4.8 | |||||||||||
| (Benefit from) provision for income taxes | (4.5 | ) | 1.8 | |||||||||||
| Net (loss) income | $ | (8.0 | ) | $ | 3.0 | |||||||||
| (Loss) earnings per share: | ||||||||||||||
| Basic and diluted | $ | (0.11 | ) | $ | 0.04 | |||||||||
| Weighted average common shares outstanding: | ||||||||||||||
| Basic | 75.1 | 74.8 | ||||||||||||
| Diluted | 75.1 | 75.2 | ||||||||||||
| Dividends declared per common share (Class A and B) | $ | 0.12 | $ | 0.12 | ||||||||||
| World Wrestling Entertainment, Inc. | |||||||||||||
| As of | |||||||||||||
| March 31, | December 31, | ||||||||||||
| ASSETS | |||||||||||||
| CURRENT ASSETS: | |||||||||||||
| Cash and cash equivalents | $ | 21.4 | $ | 32.9 | |||||||||
| Short-term investments, net | 65.9 | 76.5 | |||||||||||
| Accounts receivable, net | 67.4 | 59.6 | |||||||||||
| Inventory | 4.4 | 2.9 | |||||||||||
| Deferred income tax assets | 12.8 | 12.2 | |||||||||||
| Prepaid expenses and other current assets | 23.4 | 16.1 | |||||||||||
| Total current assets | 195.3 | 200.2 | |||||||||||
| PROPERTY AND EQUIPMENT, NET | 129.0 | 133.5 | |||||||||||
| FEATURE FILM PRODUCTION ASSETS, NET | 19.0 | 16.0 | |||||||||||
| TELEVISION PRODUCTION ASSETS, NET | 13.2 | 10.8 | |||||||||||
| INVESTMENT SECURITIES | 10.5 | 8.3 | |||||||||||
| OTHER ASSETS | 15.0 | 9.7 | |||||||||||
| TOTAL ASSETS | $ | 382.0 | $ | 378.5 | |||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||
| CURRENT LIABILITIES: | |||||||||||||
| Current portion of long-term debt | $ | 4.3 | $ | 4.3 | |||||||||
| Accounts payable and accrued expenses | 53.9 | 47.9 | |||||||||||
| Deferred income | 44.3 | 30.1 | |||||||||||
| Total current liabilities | 102.5 | 82.3 | |||||||||||
| LONG-TERM DEBT | 24.8 | 25.4 | |||||||||||
| NON-CURRENT INCOME TAX LIABILITIES | 2.3 | 4.9 | |||||||||||
| COMMITMENTS AND CONTINGENCIES | |||||||||||||
| STOCKHOLDERS’ EQUITY: | |||||||||||||
| Class A common stock | 0.3 | 0.3 | |||||||||||
| Class B convertible common stock | 0.4 | 0.4 | |||||||||||
| Additional paid-in-capital | 350.5 | 347.0 | |||||||||||
| Accumulated other comprehensive income | 3.6 | 3.5 | |||||||||||
| Accumulated deficit | (102.4 | ) | (85.3 | ) | |||||||||
| Total stockholders’ equity | 252.4 | 265.9 | |||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 382.0 | $ | 378.5 | |||||||||
| World Wrestling Entertainment, Inc. | |||||||||||||
| Three Months Ended | |||||||||||||
| March 31, | March 31, | ||||||||||||
| OPERATING ACTIVITIES: | |||||||||||||
| Net (loss) income | $ | (8.0 | ) | $ | 3.0 | ||||||||
| Adjustments to reconcile net (loss) income to net cash used in operating activities: | |||||||||||||
| Amortization and impairments of feature film production assets | 1.4 | 6.1 | |||||||||||
| Amortization of television production assets | 2.8 | — | |||||||||||
| Depreciation and amortization | 5.0 | 5.2 | |||||||||||
| Amortization of bond premium | 0.4 | 0.5 | |||||||||||
| Amortization of debt issuance costs | 0.1 | 0.2 | |||||||||||
| Stock-based compensation | 3.1 | 1.2 | |||||||||||
| Recovery from doubtful accounts | (0.1 | ) | (0.3 | ) | |||||||||
| Services provided in exchange for equity instruments | (0.2 | ) | (0.2 | ) | |||||||||
| Loss on disposal of property and equipment | — | 0.4 | |||||||||||
| Provision for deferred income taxes | 5.1 | 0.5 | |||||||||||
| Cash (used in)/provided by changes in operating assets and liabilities: | |||||||||||||
| Accounts receivable | (7.7 | ) | (3.7 | ) | |||||||||
| Inventory | (1.5 | ) | (1.3 | ) | |||||||||
| Prepaid expenses and other assets | (11.1 | ) | (2.5 | ) | |||||||||
| Feature film production assets | (4.4 | ) | (0.8 | ) | |||||||||
| Television production assets | (5.2 | ) | (0.6 | ) | |||||||||
| Accounts payable and accrued expenses | (3.3 | ) | (8.1 | ) | |||||||||
| Deferred income | 14.2 | (5.5 | ) | ||||||||||
| Net cash used in operating activities | (9.4 | ) | (5.9 | ) | |||||||||
| INVESTING ACTIVITIES: | |||||||||||||
| Purchases of property and equipment and other assets | (4.2 | ) | (4.9 | ) | |||||||||
| Net proceeds from infrastructure improvement incentives | 2.9 | — | |||||||||||
| Purchases of short-term investments | (2.5 | ) | (9.0 | ) | |||||||||
| Proceeds from sales and maturities of investments | 12.8 | 8.8 | |||||||||||
| Purchase of cost method investments | (2.0 | ) | — | ||||||||||
| Net cash provided by/(used in) investing activities | 7.0 | (5.1 | ) | ||||||||||
| FINANCING ACTIVITIES: | |||||||||||||
| Proceeds from the issuance of note payable | 0.4 | — | |||||||||||
| Repayment of long-term debt | (0.9 | ) | — | ||||||||||
| Dividends paid | (9.0 | ) | (9.0 | ) | |||||||||
| Issuance of stock | 0.4 | 0.3 | |||||||||||
| Net cash used in financing activities | (9.1 | ) | (8.7 | ) | |||||||||
| NET DECREASE IN CASH AND CASH EQUIVALENTS | (11.5 | ) | (19.7 | ) | |||||||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 32.9 | 66.0 | |||||||||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 21.4 | $ | 46.3 | |||||||||
| NON-CASH INVESTING TRANSACTIONS: | |||||||||||||
| Non-cash purchase of property and equipment | $ | 0.6 | $ | 1.8 | |||||||||
| World Wrestling Entertainment, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 2014 | Three Months Ended March 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
| As | Film | Video | Adjusted | As | Film | Video | Adjusted | ||||||||||||||||||||||||||||||||||||||||||
| Operating | $ | (12.2 | ) | $ | — | $ | — | $ | (12.2 | ) | $ | 6.1 | $ | 4.7 | $ | (3.4 | ) | $ | 7.4 | ||||||||||||||||||||||||||||||
| Investment, interest | (0.3 | ) | — | — | (0.3 | ) | (1.3 | ) | — | — | (1.3 | ) | |||||||||||||||||||||||||||||||||||||
| (Loss) income | (12.5 | ) | — | — | (12.5 | ) | 4.8 | 4.7 | (3.4 | ) | 6.1 | ||||||||||||||||||||||||||||||||||||||
| Benefit from (provision | 4.5 | — | — | 4.5 | (1.8 | ) | (1.6 | ) | 1.2 | (2.2 | ) | ||||||||||||||||||||||||||||||||||||||
| Net (loss) income | $ | (8.0 | ) | $ | — | $ | — | $ | (8.0 | ) | $ | 3.0 | $ | 3.1 | $ | (2.2 | ) | $ | 3.9 | ||||||||||||||||||||||||||||||
| (Loss) earnings per | $ | (0.11 | ) | $ | — | $ | — | $ | (0.11 | ) | $ | 0.04 | $ | 0.04 | $ | (0.03 | ) | $ | 0.05 | ||||||||||||||||||||||||||||||
| Reconciliation of | |||||||||||||||||||||||||||||||||||||||||||||||||
| Operating (loss) | $ | (12.2 | ) | $ | — | $ | — | $ | (12.2 | ) | $ | 6.1 | $ | 4.7 | $ | (3.4 | ) | $ | 7.4 | ||||||||||||||||||||||||||||||
| Depreciation & | 5.0 | — | — | 5.0 | 5.2 | — | — | 5.2 | |||||||||||||||||||||||||||||||||||||||||
| OIBDA | $ | (7.2 | ) | $ | — | $ | — | $ | (7.2 | ) | $ | 11.3 | $ | 4.7 | $ | (3.4 | ) | $ | 12.6 | ||||||||||||||||||||||||||||||
Non-GAAP Measures:
We define OIBDA as operating income before depreciation and amortization, excluding feature film and television production asset amortization and impairments. OIBDA is a non-GAAP financial measure and may be different than similarly-titled non-GAAP financial measures used by other companies. A limitation of OIBDA is that it excludes depreciation and amortization, which represents the periodic charge for certain fixed assets and intangible assets used in generating revenues for the Company's business. OIBDA should not be regarded as an alternative to operating income or net income as an indicator of operating performance, or to the statement of cash flows as a measure of liquidity, nor should it be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. We believe that operating income is the most directly comparable GAAP financial measure to OIBDA.
Adjusted OIBDA , Adjusted Operating income, Adjusted Net income and Adjusted Earnings per share exclude certain material items, which otherwise would impact the comparability of results between periods. These should not be considered as an alternative to net income, cash flows from operations or any other indicator of WWE's performance or liquidity, determined in accordance with U.S. GAAP.
| World Wrestling Entertainment, Inc. | ||||||||||||||
| Three Months Ended | ||||||||||||||
| March 31, | March 31, | |||||||||||||
| Net cash used in operating activities | $ | (9.4 | ) | $ | (5.9 | ) | ||||||||
| Less cash used for capital expenditures: | ||||||||||||||
| Purchase of property and equipment and other assets | (4.2 | ) | (4.9 | ) | ||||||||||
| Free Cash Flow | $ | (13.6 | ) | $ | (10.8 | ) | ||||||||
Non-GAAP Measure:
We define Free Cash Flow as net cash provided by operating activities less cash used for capital expenditures. Although it is not a recognized measure of liquidity under U.S. GAAP, Free Cash Flow provides useful information regarding the amount of cash our continuing business is generating after capital expenditures, available for reinvesting in the business, servicing and repaying debt, and for payment of dividends.
SOURCE: WWE
WWE
Investors:
Michael Weitz, 203-352-8642
or
Media:
Tara Carraro, 203-352-8625
Copyright Business Wire 2014
