World Wrestling Entertainment, Inc. Reports Second Fiscal Quarter Results.Business Editors STAMFORD, Conn.--(BUSINESS WIRE)--Nov. 21, 2002 World Wrestling Entertainment World Wrestling Entertainment, Inc. (WWE) is a publicly traded, privately controlled integrated media (focusing in television, Internet, and live events), and sports entertainment company dealing primarily in the professional wrestling industry, with major revenue sources , Inc. (NYSE NYSE See: New York Stock Exchange :WWE WWE World Wrestling Entertainment, Inc. (formerly World Wrestling Federation) WWE Witwe (German: Widow) WWE William Webb Ellis (inventor of rugby) WWE World Wide Education WWE Well Woman Exam ) today announced financial results for its second fiscal quarter ended October 25, 2002. Total revenues were $92.8 million as compared to $98.2 million in the prior year. The net loss for the quarter was $1.6 million versus net income of $4.8 million in the second fiscal quarter last year. In the current quarter, the Company recorded a $5.9 million charge ($3.7 million after-tax or $0.05 per common share), for the settlement of previously disclosed litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. with William Morris Agency Founded in 1898, the William Morris Agency is the largest diversified talent and literary agency in the world, with offices in New York City, Beverly Hills, Nashville, Miami, London, and Shanghai. , Inc. The net loss per common share was $0.02 for the quarter as compared to earnings per common share of $0.07 last year. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
"We are continuing our rebuilding phase to strengthen television ratings Television ratings may refer to:
tr.v. re·in·vig·o·rat·ed, re·in·vig·o·rat·ing, re·in·vig·o·rates To give new life or energy to. re the WWE brand time and time again. The increase in our talent roster and the emergence of new talent are also key to both our brand extension and international expansion strategies." "In the international arena, our success is ahead of our expectations," continued Mrs. McMahon. "So far in calendar year 2002, we have conducted four international tours and have played to audiences totaling nearly 180,000 fans. This week we are in India and will perform three live events in New Delhi New Delhi (dĕl`ē), city (1991 pop. 294,149), capital of India and of Delhi state, N central India, on the right bank of the Yamuna River. , Mumbai, and Bangalore. Based on the enthusiastic reaction that we witnessed from the fans who attended our recent tours, we accelerated our plans to launch future live event tours and have scheduled eight international tours for calendar year 2003 in Europe, Asia, Australia, Africa, and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. ," said Mrs. McMahon. "During the quarter, we extended our partnership with Total Sports Asia and inked new deals encompassing our licensing, home video/DVD, and publishing businesses. We are renewing our television contract with J Sky Sports in Japan which will result in a significant increase in television rights fees. The successful expansion of our international live event tours, in conjunction with the subsequent introduction of a wide array of WWE branded merchandise, ensures that we now have all of the critical elements in place to further increase our penetration in markets across the globe," added Mrs. McMahon. Second Quarter Results Total revenues were $92.8 million for the quarter versus $98.2 million in the prior year quarter. Live and Televised Entertainment Total revenues for Live and Televised businesses were $70.7 million as compared to $72.7 million in the same period last year. -- Live Event revenues increased 12% to $18.1 million. -- There were 87 events, including 3 international events, during the quarter as compared to 55 domestic events during the same period last year. -- Attendance for the quarter was approximately 458,000 as compared to 472,000 in the prior year quarter. The current quarter includes attendance of approximately 72,000 from our international live event tours. -- The average ticket price increased approximately 15% to $39.05 primarily attributable to the impact of higher international ticket prices which averaged approximately $59.00 for the quarter. -- Pay-Per-View revenues declined 14% to $19.0 million from $22.2 million in the prior year quarter. -- Total domestic pay-per-view buys for the quarter were 1.1 million as compared to 1.5 million in the prior year quarter. -- The retail price of our domestic pay-per-views increased 17% from $29.95 to $34.95 effective April 2002. -- Television Rights Fees revenues increased slightly to $13.8 million due to the executive producer fee that we received from the upcoming feature film, Helldorado, starring The Rock(TM). -- Television Advertising revenues were $19.7 million as compared to $20.9 million last year. This decrease was principally due to the impact of lower television ratings and a decrease in sponsorship revenues in the quarter. Branded Merchandise Total revenues were $22.1 million for the quarter versus $25.5 million last year. -- Licensing revenues were $5.2 million as compared to $9.2 million in the prior year quarter. -- The variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality was impacted by the timing of cash receipts of $2.0 million which were received and recorded in the prior year second quarter. -- Revenues from our book publishing book publishing. The term publishing means, in the broadest sense, making something publicly known. Usually it refers to the issuing of printed materials, such as books, magazines, periodicals, and the like. and toy categories declined versus the prior year quarter and were offset in part by increased revenues from SmackDown! Records reflecting the recent release of WWE Forceable Entry. -- Merchandise revenues decreased 4% to $5.3 million. The increase in merchandise sold at our venues was more than offset by declines in WWE Shopzone.com and catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. revenues. -- Publishing revenues increased 12% to $3.9 million primarily due to the increase in the number of special magazine titles and an increase in the cover price of Raw Magazine. -- Home video revenues increased 37% to $4.5 million from $3.3 million. -- The total number of units sold increased 9%. -- The number of DVD DVD: see digital versatile disc. DVD in full digital video disc or digital versatile disc Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. units sold, which wholesale for approximately $5.00 more than a VHS (Video Home System) A half-inch, analog videocassette recorder (VCR) format introduced by JVC in 1976 to compete with Sony's Betamax, introduced a year earlier. unit, accounted for approximately 72% of total units sold compared to approximately 31% in the prior year quarter. -- According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Billboard Magazine, 6 of our home videos ranked among the 10 best selling home videos in the "Recreational Sports" category as of November 16, 2002. -- The World(TM)revenues declined 32% to $2.0 million due to decreased traffic in the restaurant and bar at the venue. Profit Contribution Total profit contribution for the quarter was $28.6 million as compared to $35.4 million in the prior year quarter. Total profit contribution margin decreased to 31% from 36%. The profit contribution margin for the Live and Televised businesses was approximately 30% versus 36% in the second quarter last year principally reflecting the decline in pay-per-view revenues and the charge of $3.5 million for the William Morris Agency, Inc. settlement. The profit contribution margin for the Branded Merchandise businesses was 34% as compared to 37% during the same period last year primarily due to the decline in revenues at The World.(TM) Selling, General and Administrative Expenses SG&A expenses for the quarter were $27.3 million as compared to $27.0 million last year. SG&A for the quarter includes approximately $2.4 million associated with the William Morris Agency, Inc. settlement. Excluding the settlement and the absence of the expenses associated with the WWE Hotel and Casino casino or cassino (both: kəsē`nō). 1 Card game played with a full deck by two to four players. Its origins are obscure though it probably traces back to the Italian game of Scopa. , SG&A expenses for the quarter decreased approximately 6% reflecting the positive impact of the Company's initiatives to reduce and realign re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. its operating budgets Noun 1. operating budget - a budget for current expenses as distinct from financial transactions or permanent improvements budget items, operating cost, operating expense, overhead - the expense of maintaining property (e.g. . Six Months ended October 25, 2002 Total revenues for the six-month period ended October 25, 2002 were $180.9 million versus $188.9 million last year. Net income was $0.9 million and earnings per common share was $0.01 compared to $16.8 million and $0.23 respectively, in the prior fiscal year. The prior year results included a $5.8 million after-tax gain, or $0.08 per common share, associated with the revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. and sale of certain equity instruments. Live and Televised Entertainment Total revenues for the Live and Televised businesses were $138.5 million as compared to $145.1 million in the same period last year. -- Live Event revenues increased 20% to $37.0 million. -- There were 174 events, including 7 international events year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. . This compares to 98 events, including 1 international event, during the same period last year. -- Attendance increased 8% to approximately 958,000. This includes attendance of 109,000 from our international live event tours in the current year and approximately 16,000 in the prior year. -- The average ticket price increased approximately 11% to $38.50 primarily due to the impact of higher international ticket prices in the current year. -- The average ticket price for international events in the current year was approximately $59.30. -- Pay-Per-View revenues declined 20% to $38.2 million from $47.6 million in the prior year. -- Total domestic pay-per-view buys were 2.3 million as compared to 3.1 million in the prior year. -- Television Rights Fees revenues increased slightly to $26.7 million primarily due to our Divas Undressed special that aired on TNN TNN The National Network (formerly The Nashville Network) TNN The Nashville Network (now The National Network) TNN The Nerd Network (online gaming clan) . -- Television Advertising revenues were $36.5 million as compared to $40.4 million last year. This decrease was principally due to the impact of lower television ratings and decreased sponsorship revenues in the current year. Branded Merchandise Total revenues were $42.4 million versus $43.8 million last year. -- Licensing revenues were $8.4 million as compared to $10.4 million in the prior year. Strength in the video game software category was more than offset by declines in our book publishing and toy categories. -- Merchandise revenues increased 11% to $11.6 million. The growth in revenues was primarily due to an increase in per capita spending at our live events to $8.78 from $7.87 in the prior year period. -- Publishing revenues increased slightly to $7.8 million primarily due to the increase in the number of special magazine titles and an increase in the cover price of Raw Magazine. -- Home video revenues increased 32% to $8.0 million from $6.1 million due to a 20% increase in the number of units sold. The number of units sold in DVD format See VOB and DVD. accounted for about 62% of total units sold versus approximately 26% in the prior year. -- The World revenues declined 32% to $4.3 million due to decreased traffic in the restaurant and bar at the venue. Profit Contribution Total profit contribution for the six months ended October 25, 2002 was $58.2 million as compared to $67.8 million in the prior year. Total profit contribution margin decreased to 32% from 36%. The profit contribution margin for the Live and Televised businesses was approximately 32% versus 37% in the prior year primarily reflecting the decline in pay-per-view revenues and the William Morris Agency, Inc. settlement. The profit contribution margin for the Branded Merchandise businesses was 34% versus 32% in the prior year primarily due to increases in home video revenues and the positive impact on expenses arising from the expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created in December 2001 of a prior licensing agreement with National Hot Rod Association
The National Hot Rod Association (NHRA) (NHRA NHRA National Hot Rod Association NHRA Northland Human Resource Association NHRA National Human Resources Association NHRA Nursing Home Reform Act NHRA National Hospice Regatta Alliance NHRA National Heritage Resources Act (South Africa) ). Selling, General and Administrative Expenses SG&A expenses decreased approximately 2% to $51.2 million as compared to $52.3 million last year. The decrease was due to the absence of expenses associated with the WWE Hotel and Casino and the impact of the $1.1 million net gain from the settlements of outstanding litigation in the current year. Increases in advertising and promotion expenses were partially offset by the impact of the Company's expense reduction initiatives. Balance Sheet Total assets as of quarter end were $445.7 million which included $263.9 million in cash, cash equivalents and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments and $49.0 million in receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed . Long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. , including the current portion, as of quarter end was $9.6 million and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. totaled $361.1 million. Capital expenditures for the six months ended totaled approximately $6.9 million.
World Wrestling Entertainment, Inc.
Consolidated Statements of Operations
(dollars in thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
October 25, October 26, October 25, October 26,
2002 2001 2002 2001
--------------------------------------------------
Net revenues $92,768 $98,208 $180,915 $188,877
Cost of revenues (a) 64,189 62,835 122,708 121,101
Selling, general
and
administrative
expenses (a) 27,252 27,017 51,155 52,273
Depreciation and
amortization 2,915 2,645 5,729 4,885
--------------------------------------------------
Operating (loss)
income (1,588) 5,711 1,323 10,618
Interest (expense)
income, net and
other income
(loss), net (b) (918) 2,105 11 16,645
--------------------------------------------------
(Loss) income
before income
taxes (2,506) 7,816 1,334 27,263
(Benefit)
provision for
income taxes (902) 2,975 410 10,430
--------------------------------------------------
Net (loss) income (1,604) 4,841 924 16,833
==================================================
(Loss) earnings
per share - Basic
and Diluted $(0.02) $0.07 $0.01 $0.23
==================================================
Weighted average
common and common
equivalent
shares:
Basic 70,407,229 72,837,879 70,749,703 72,884,339
==================================================
Diluted 70,407,229 72,837,879 70,749,703 72,884,588
==================================================
(a) Included in the results for the three and six months ended
October 25, 2002 was the impact of the Company's settlement of
litigation with William Morris, Inc., of which $3.5 million
was recorded to Cost of revenues and $2.4 million was recorded
to Selling, general and administrative expenses.
(b) Included in the results for the six months ended October 26,
2001 was a $9.3 million gain ($5.8 million, net of tax)
associated with the revaluation and sale of certain equity
instruments.
World Wrestling Entertainment, Inc.
Consolidated Balance Sheets
(dollars in millions)
(Unaudited)
As of
-------------------------------
October 25, April 30,
2002 2002
------------ --------------
Assets
Cash, cash equivalents and
short-term investments (A) $ 263.9 $ 294.1
Other current assets 68.4 81.5
Property, plant equipment and
other assets 113.4 111.8
------------ --------------
Total Assets $ 445.7 $ 487.4
============ ==============
Liabilities and Stockholders' Equity
Current liabilities $ 75.0 $ 88.1
Long-term debt, including
short-term portion 9.6 9.9
------------ --------------
Total Liabilities 84.6 98.0
Stockholders' Equity (A) 361.1 389.4
------------ --------------
Total Liabilities and
Stockholders' Equity $ 445.7 $ 487.4
============ ==============
(A) - Reflects the repurchase of shares of the Company's common
stock, primarily 2.3 million shares that that Company
repurchased from NBC in May 2002 at a price of $12 per share,
or $27.7 million.
World Wrestling Entertainment, Inc. (NYSE:WWE) is an integrated media and entertainment company headquartered in Stamford, Conn., with offices in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , Toronto and London. Additional information on the company can be found at wwe.com and corporate.wwe.com. Information on television ratings and community activities can be found at parents.wwe.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : This news release contains forward-looking statements pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Securities Litigation Reform Act of 1995, which are subject to various risks and uncertainties. These risks and uncertainties include the conditions of the markets for live events, broadcast television, cable television, pay-per-view, Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. , entertainment, professional sports The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , and licensed merchandise; acceptance of the Company's brands, media and merchandise within those markets; uncertainties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc litigation; risks associated with producing live events both domestically and internationally; uncertainties associated with international markets; 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. |
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