Takes Action on COVID-19 Impact
First Quarter 2020
Highlights
- Revenues increased 60% to $291.0 million as compared to the
prior year quarter
- Operating income was $53.3 million as compared to a loss of
$6.8 million in the prior year quarter
- Adj. OIBDA1 increased to $77.3 million from $12.4 million in
the prior year quarter
- Announced multi-year distribution agreements with Sony Pictures
Networks in India and DAZN in Germany to extend the reach of WWE
content across television and digital platforms
- WWE Network average paid subscribers2 were 1.46 million,
consistent with the Company’s guidance
- Digital video views increased 25% to 9.6 billion and hours
consumed increased 15% to 344 million across digital and social
media platforms3
WrestleMania Highlights (April 4-5, 2020)
- WWE set WrestleMania Week viewership records with more than 967
million video views across digital and social platforms4,
representing a 20% increase from the prior year. A record 46
million hours of content was consumed during the week, an increase
of 28% from the prior year
- WrestleMania(April 4 & 5, 2020) was the most social event
in WWE history with more than 13.8 million total social media
interactions on Facebook, Instagram and Twitter, up 57% vs. last
year’s WrestleMania5
- WWE Network’s WrestleMania weekend subscriber additions
(Friday-Sunday) were the highest in its history. Total subscribers
reached 2.10 million on April 6, 2020, up 5% from the day after
WrestleMania last year
COVID-19 Actions and
Outlook
- Due to COVID-19 and related government-mandated impacts on WWE
moving forward, the Company has implemented various short-term cost
reductions and cash flow improvement actions. These precautionary
measures include reducing executive and board member compensation,
decreasing operating expenses, cutting third-party staffing,
consulting and talent costs, and reducing employee headcount by way
of furlough
- To enhance liquidity, management deferred spending on the
Company’s new headquarters (reducing 2020 capital expenditures by
$140 million), temporarily suspended the repurchase of stock under
its $500 million program, and drew $200 million from its revolving
credit facility after quarter-end
- Management continues to believe the Company’s growth prospects
remain strong and that WWE is well positioned to take full
advantage of the changing media landscape and increasing value of
live sports rights over the longer term (See COVID-19 Actions and
Business Outlook, page 7)
WWE (NYSE: WWE) today announced financial results for its first
quarter ended March 31, 2020.
“Our first quarter financial performance was strong and largely
unimpacted by the COVID-19 outbreak,” said Vince McMahon, WWE
Chairman & CEO. “Now we are in the midst of unprecedented
times, which require us to be especially nimble, creative and
efficient in order to ensure the long-term value of WWE. We are
taking precautions to protect the health and safety of our
performers and staff as we produce content in new ways, engage fans
with a much-needed diversion and operate effectively in this
evolving environment.”
Frank Riddick, interim Chief Financial Officer, added, “In the
quarter, we delivered revenue of $291 million and Adjusted OIBDA of
$77.3 million exceeding our rescinded guidance as we offset the
impact of canceled events by reducing production and other costs.
Given the current uncertainties of the potential impacts of
COVID-19 on our business, we have reduced employee, talent and
other costs and delayed approximately $140 million in capital
spending related to our new headquarters to strengthen our
financial performance going forward and to ensure we have the
resources necessary to execute our value creation strategy.”
First-Quarter Consolidated
Results
Revenues increased 60% to $291.0 million as compared to
the prior year quarter, primarily due to increased monetization of
content in the Media segment, which was partially offset by a
reduction in live event ticket revenue and lower merchandise
sales.
Operating Income was $53.3 million as compared to a loss
of $6.8 million in the prior year quarter, driven by increased
revenues in the Media segment partially offset by increases in
fixed costs, particularly to support the creation of content. The
Company’s Operating income margin increased to 18% from (4%) in the
prior year quarter.
Adjusted OIBDA (which excludes stock compensation)
increased to $77.3 million from $12.4 million in the prior year
quarter. The Company’s Adjusted OIBDA margin increased to 27% from
7%.
Net Income was $26.2 million, or $0.31 per diluted share,
as compared to a loss of $8.4 million, or a loss of $0.11 per
diluted share, in the first quarter 2019. Net income in the current
period reflected the impact of the finance lease that commenced in
July 2019 related to the Company’s new headquarters. Current period
results also included $11.5 million in impairment charges related
to certain equity investments. Excluding the impact of the equity
investment impairment charges, Adjusted Net Income6 increased to
$34.9 million, or $0.41 per diluted share, due to improved
operating performance.
Effective Tax Rate declined to 25% as compared to 26% in
the prior year quarter.
Cash flows generated by operating activities reached
$65.9 million as compared to $6.7 million in the prior year quarter
driven by improved operating performance and, to a lesser extent, a
reduced payout of management incentive compensation.
Free Cash Flow totaled $57.6 million as compared to a
$10.1 million use of cash in the first quarter 2019 primarily due
to the change in operating cash flow and, to a lesser extent, a
reduction in capital expenditures.7
Cash, cash equivalents and short-term investments were
$292 million as of March 31, 2020. Additionally, subsequent to
quarter-end, the Company drew $200 million in cash under its
revolving line of credit. The Company’s current liquidity position
(cash and short-term investments) is approximately $500 million,
which management believes provides adequate liquidity in this
uncertain environment.
Return of Capital to
Shareholders
The Company paid $9.3 million in dividends to shareholders
during the first quarter. Given the economic uncertainties of the
current business environment, the Company has temporarily suspended
purchases of WWE stock under its $500 million share repurchase
program.
The schedule below reflects WWE’s performance by operating
segment (in millions):1
Three Months Ended
March 31,
2020
2019
Net Revenues:
Media
$
256.6
$
135.4
Live Events
17.5
26.2
Consumer Products
16.9
20.8
Total Net Revenues
$
291.0
$
182.4
Operating Income (Loss):
Media
$
89.3
$
16.3
Live Events
(3.2
)
(0.2
)
Consumer Products
2.9
5.0
Corporate
(35.7
)
(27.9
)
Total Operating Income (Loss)
$
53.3
$
(6.8
)
Adjusted OIBDA:
Media
$
102.6
$
28.5
Live Events
(2.6
)
0.8
Consumer Products
3.8
6.0
Corporate
(26.5
)
(22.9
)
Total Adjusted OIBDA
$
77.3
$
12.4
Basis of Presentation
For the first quarter ending March 31, 2020, net income included
the impact of our finance lease related to the Company’s new
headquarters and $11.5 million in impairment charges related to
certain equity investments which are included as a component of
Other (expense) income, net. Given the one-time nature of the
equity investment impairments, the related charges have been
adjusted from net income to show our results on a comparable
year-over-year basis. A reconciliation of Net Income to Adjusted
Net Income for the three-month periods ended March 31, 2020 and
2019 can be found in the supplemental schedule on page 14 of this
release.
Results by Operating
Segment
Media
Revenues increased 90% to $256.6 million from $135.4
million in the prior year quarter, primarily due to the escalation
of domestic rights fees for the Company’s flagship programs, Raw
and SmackDown, and the favorable timing of the Company’s
large-scale international event, Super ShowDown, as reflected in
Other media revenues.
WWE Network’s average paid subscribers decreased 8% to
approximately 1.46 million, consistent with the Company’s
guidance.
Three Months Ended
March 31,
2020
2019
Revenues:
Network (including pay-per-view)
$
43.5
$
47.0
Core content rights fees 8
133.2
68.1
Advertising and sponsorship
17.4
10.9
Other 9
62.5
9.4
Total Revenues
$
256.6
$
135.4
Operating income increased by $73.0 million to $89.3
million as the growth in revenue was partially offset by increased
fixed costs, particularly to support the creation of content.
Adjusted OIBDA increased to $102.6 million as compared to
$28.5 million in the prior year quarter.
Key Highlights: During the quarter, WWE continued to
produce high-quality flagship programming, secured content
distribution agreements in key international markets, and leveraged
platforms and partners to expand reach. Monday Night Raw remained
the highest-rated program on USA Network and Friday Night SmackDown
viewership on FOX broadcast increased by 16% over the prior year
period.10 The Company completed multi-year distribution agreements
with Sony Pictures Networks in India and DAZN in Germany, extending
the reach of WWE content among television and digital platforms.
The Company continued to develop new original programs across
platforms, partnering with Netflix to launch a feature film, The
Main Event, and scripted series, The Big Show Show, which both
ranked among Netflix’s top 10 most viewed programs during their
premiere week in the second week of April. The Company also
completed its second season of Miz & Mrs. on USA Network,
premiered the fifth season of Total Bellas (April 2020), and
expanded the reach of its content with sports partners. These
sports partnerships included an expansion of its relationship with
Fox Sports to offer 22 hours of content on Tuesday nights,
beginning with a re-airing of Royal Rumble 2020 (March 31), and a
collaboration with ESPN to air historic WrestleMania events on
Sundays (March 22 – April 5). On WWE Network, the Company continued
to provide compelling content to fans, airing historic pay-per-view
events, headlined by its first-ever, two-night (April 4-5) marquee
annual event, WrestleMania, and its Saudi Arabia event, Super
ShowDown, as well as granting free access of its library content to
global fans for a limited time.
Live Events
Revenues declined to $17.5 million from $26.2 million in
the prior year quarter primarily due to a decrease in ticket
revenue from events in North America. This reduction in ticket
revenue was driven by the staging of 49 fewer events, resulting
from the Company’s efforts to optimize its touring schedule and, to
a lesser extent, COVID-19 related impacts. Average attendance at
these events increased 33% to approximately 6,320 while the average
ticket price of $53.46 was essentially unchanged from the prior
year quarter. There were no Raw or SmackDown events held in
international markets during the quarter.
Three Months Ended
March 31,
2020
2019
Revenues:
North American ticket sales
$
15.2
$
24.1
International ticket sales
0.2
0.2
Advertising and sponsorship
0.1
0.4
Other 11
2.0
1.5
Total Revenues
$
17.5
$
26.2
Operating income reflected a loss of $3.2 million as
compared to a loss of $0.2 million in the prior year quarter, as
the decrease in North America ticket sales (as described above) was
partially offset by a reduction in event-related expenses.
Adjusted OIBDA reflected a loss of $2.6 million as
compared to income of $0.8 million in the prior year quarter.
Key Highlights: During the quarter, WWE continued to
stage successful, large-scale events globally, including Royal
Rumble, which was performed before a capacity crowd of more than
42,000 fans at Minute Maid Park in Houston, and Super ShowDown in
Saudi Arabia. Late in the quarter, WWE’s ability to stage
action-packed events in front of arena audiences was impacted by
both public health concerns associated with the COVID-19 outbreak
and the related government mandates. This resulted in the
cancellation, postponement, and relocation of the Company’s live
events beginning in mid-March. Despite these challenges, WWE
demonstrated its creativity in continuing to deliver compelling
content to its global fanbase, including its flagship programs, Raw
and SmackDown, and its marquee annual event, WrestleMania.
Consumer Products
Revenues declined to $16.9 million from $20.8 million in
the prior year quarter reflecting lower product sales across the
Company’s distribution platforms, including licensing agreements,
live event venues and, to a lesser extent, at the Company’s
e-commerce site, WWE Shop. Lower sales of merchandise at the
Company’s live event venues was driven by the staging of fewer
events (as described above).
Three Months Ended
March 31,
2020
2019
Revenues:
Consumer product licensing
$
7.7
$
9.4
eCommerce
6.0
6.6
Venue merchandise
3.2
4.8
Total Revenues
$
16.9
$
20.8
Operating income was $2.9 million as compared to $5.0
million in the prior year quarter resulting from the decline in
revenue.
Adjusted OIBDA was $3.8 million as compared to $6.0
million in the prior year quarter.
Key Highlights: During the quarter, WWE continued to
support new product releases in key and emerging categories such as
Food, Toy, and proprietary Title Belts, while driving growth in its
mobile game portfolio. Expanding its channels of distribution, WWE
and Unilever launched its Superstar Ice Cream Sandwiches at grocery
accounts nationwide. WWE Shop continued to grow the collectibles
business, releasing three unique replica titles resulting in more
than 21% collectibles category revenue growth year over year, for
the quarter. Additionally, mobile games WWE SuperCard and WWE
Champions both saw greater than 10% revenue growth over the prior
year quarter.
COVID-19 Actions and Business
Outlook12
The spread of COVID-19 and related government mandates have
impacted WWE’s business as the Company has been directed to cancel,
postpone or relocate its live events beginning in mid-March.
To-date, the company has been able to substantially offset the loss
of ticket and merchandise sales at its live events by reducing its
operating expenses across each area of business. These efforts were
highlighted by the introduction of a new model for producing
content.
The Company believes, however, that the potential impact of
COVID-19 may not be limited to the sale of live event tickets and
merchandise and the adverse impacts on other areas of operation are
not known at this time. To mitigate the potential risks to its
performance, the Company evaluated its operations and developed
extensive contingency plans, which resulted in the implementation
of various short-term cost reductions and cash flow improvement
actions. These precautionary measures included reducing executive
and board member compensation, decreasing operating expenses,
cutting third party staffing, consulting and talent expenses, and a
reduction of headcount by way of furlough. The decision to furlough
rather than permanently reduce headcount reflects the fact that the
Company currently believes the reduction will be temporary in
nature. Notably, the Company’s reductions of employee compensation
and headcount result in an estimated savings of $4 million per
month.
To enhance WWE’s liquidity, management has deferred spending on
the Company’s new headquarters, directly reducing 2020 capital
expenditures by approximately $140 million. For 2020, the Company
now estimates total capital expenditures of $40 - $50 million (as
compared to previous guidance of $180 - $220 million). As
additional precautionary measures, management has also temporarily
suspended the repurchase of stock under its $500 million program
and drew $200 million from its revolving credit facility after
quarter-end. As such, management believes the Company will have
sufficient liquidity, which currently totals approximately $500
million, to manage the challenges ahead.
The Company remains unable to quantify the potential impact of
COVID-19 on its business, but the financial impact to the Company
may be material. Accordingly, the Company previously withdrew its
full year 2020 guidance and, based on sustained economic
uncertainties, is not reinstating guidance at this time. Management
continues to believe the Company’s growth prospects remain strong
and that WWE is well positioned to take full advantage of the
changing media landscape and increasing value of live sports rights
over the longer term.
Notes
(1)
The definition of Adjusted OIBDA
can be found in the Non-GAAP Measures section of the release on
pages 8-9. A reconciliation of three months ended March 31, 2020
and 2019 Operating Income to Adjusted OIBDA can be found in the
Supplemental Information in this release on page 15
(2)
Average paid subscribers are
calculated based on the arithmetic daily mean over the relevant
period, and may differ substantially from paid subscribers at the
end of any period due to the timing of paid subscriber additions
and losses
(3)
Consumption includes videos
viewed on third party (Facebook, YouTube, Twitter, Instagram,
Snapchat, TikTok, Twitch, etc.) and WWE platforms (WWE.com and WWE
App)
(4)
WrestleMania week video views
measured across WWE Network, WWE.com, YouTube, Twitter, Facebook,
Instagram, TikTok and Snapchat
(5)
WWE’s social media interactions
during WrestleMania (April 4 & 5) measured according to Nielsen
Social
(6)
A reconciliation of three months
ended March 31, 2020 and 2019 Net Income to Adjusted Net Income can
be found in the Supplemental Information in this release on page
14
(7)
A reconciliation of three months
ended March 31, 2020 and 2019 Free Cash Flow to Net cash provided
by operating activities can be found in the Supplemental
Information in this release on page 16
(8)
Core content rights fees consist
primarily of licensing revenues earned from the distribution of our
flagship programs, Raw and SmackDown, as well as our NXT
programming, through global broadcast, pay television and digital
platforms
(9)
Other forms of media monetization
reflect revenues earned from the distribution of other WWE content,
including, but not limited to, certain live in-ring programming
content in international markets, scripted, reality and other
programming, as well as theatrical and direct-to-home video
releases
(10)
SmackDown television viewership
is measured on a Live+SD basis for Q1 2020 and Q1 2019, during
which the program aired on FOX broadcast and USA Network,
respectively
(11)
Other Live Events includes
revenue from the sale of travel packages associated with the
Company’s global live events, and commissions earned through
secondary ticketing as well as revenue from events for which the
Company receives a fixed fee
(12)
The Company’s business model and
expected results will continue to be subject to significant
execution and other risks, including risks relating to the impact
of the COVID-19 outbreak on WWE’s business, results of operations
and financial condition, entering, maintaining and renewing major
distribution agreements, uncertainties associated with
international markets and risks inherent in large live events, and
other risk factors previously disclosed in our annual report on
Form 10-K for the year ended December 31, 2019 and supplemented in
our Current Report on Form 8-K filed with the SEC on March 17,
2020
Non-GAAP Measures
The Company defines Adjusted OIBDA as operating income
excluding depreciation and amortization, stock-based compensation
expense, certain impairment charges and other non-recurring
material items that otherwise would impact the comparability of
results between periods. Adjusted OIBDA includes amortization and
depreciation expenses directly related to the Company's revenue
generating activities, including content production asset
amortization, depreciation and amortization of costs related to
content delivery and technology assets utilized for the WWE
Network, as well as amortization of right-of-use assets related to
finance leases of equipment used to produce and broadcast our live
events. The Company believes the presentation of Adjusted OIBDA is
relevant and useful for investors because it allows them to view
the Company’s segment performance in the same manner as the primary
method used by management to evaluate segment performance and to
make decisions regarding the allocation of resources. Additionally,
the Company believes that Adjusted OIBDA is a primary measure used
by media investors, analysts and peers for comparative
purposes.
Adjusted OIBDA is a non-GAAP financial measure and may be
different than similarly-titled non-GAAP financial measures used by
other companies. WWE views operating income as the most directly
comparable GAAP measure. Adjusted OIBDA (and other non-GAAP
measures such as Adjusted Operating Income, Adjusted Net
Income and Adjusted EPS which are defined as the GAAP
measures excluding certain nonrecurring, material items that impact
the comparability between periods) should not be considered in
isolation from, or as a substitute for, operating income, net
income, EPS or other GAAP measures, such as operating cash flow, as
an indicator of operating performance or liquidity.
The Company defines Free Cash Flow as net cash provided
by operating activities less cash used for capital expenditures.
WWE views net cash provided by operating activities as the most
directly comparable GAAP measure. Although it is not a recognized
measure of liquidity under U.S. GAAP, Free Cash Flow provides
useful information regarding the amount of cash WWE’s continuing
business generates after capital expenditures and is available for
reinvesting in the business, debt service, and payment of
dividends.
Additional Information
Additional business metrics are made available to investors on
the corporate website - corporate.wwe.com/investors. Note: As previously
announced WWE will host a conference call at 5:00 p.m. ET on April
23rd to discuss the Company's earnings results for the first
quarter of 2020. All interested parties are welcome to listen to a
live web cast that will be hosted through the Company’s website at
corporate.wwe.com/investors.
Participants can access the conference call by dialing
1-855-200-4993 (toll free) or 1-323-794-2092 from outside the U.S.
(conference ID for both lines: 5927456). Please reserve a line 5-10
minutes prior to the start time of the conference call.
The earnings presentation referenced during the call will be
made available on April 23, 2020 at corporate.wwe.com/investors. A replay of the call
will be available approximately two hours after the conference call
concludes, and can be accessed on the Company’s website.
About WWE
WWE, a publicly traded company (NYSE: WWE), 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’s TV-PG, family-friendly programming can be seen in more than
800 million homes worldwide in 28 languages. WWE Network, the
first-ever 24/7 over-the-top premium network that includes all live
pay-per-views, scheduled programming and a massive video-on-demand
library, is currently available in more than 180 countries. The
Company is headquartered in Stamford, Conn., with offices in New
York, Los Angeles, London, Mexico City, Mumbai, Shanghai,
Singapore, Dubai, Munich and Tokyo.
Additional information on WWE (NYSE: WWE) can be found at
wwe.com and corporate.wwe.com. For information on our global
activities, go to http://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: the impact of the COVID-19 outbreak on our business, results of
operations and financial condition; entering, maintaining and
renewing major distribution agreements; a rapidly evolving media
landscape; WWE Network (including the risk that we are unable to
attract, retain and renew subscribers); our need to continue to
develop creative and entertaining programs and events; the
possibility of a decline in the popularity of our brand of sports
entertainment; the continued importance of key performers and the
services of Vincent K. McMahon; possible adverse changes in the
regulatory atmosphere and related private sector initiatives; the
highly competitive, rapidly changing and increasingly fragmented
nature of the markets in which we operate and greater financial
resources or marketplace presence of many of our competitors;
uncertainties associated with international markets including
possible disruptions and reputational risks; our difficulty or
inability to promote and conduct our live events and/or other
businesses if we do not comply with applicable regulations; our
dependence on our intellectual property rights, our need to protect
those rights, and the risks of our infringement of others’
intellectual property rights; the complexity of our rights
agreements across distribution mechanisms and geographical areas;
potential substantial liability in the event of accidents or
injuries occurring during our physically demanding events including
without limitation, claims alleging traumatic brain injury; large
public events as well as travel to and from such events; our
feature film business; our expansion into new or complementary
businesses and/or strategic investments; our computer systems and
online operations; privacy norms and regulations; a possible
decline in general economic conditions and disruption in financial
markets; our accounts receivable; our indebtedness including our
convertible notes; litigation; our potential failure to meet market
expectations for our financial performance, which could adversely
affect our stock; Vincent K. McMahon exercises control over our
affairs, and his interests may conflict with the holders of our
Class A common stock; a substantial number of shares are eligible
for sale by the McMahons and the sale, or the perception of
possible sales, of those shares could lower our stock price; and
the volatility of our Class A common stock. 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 (including under our revolving credit
facility), general economic and competitive conditions and such
other factors as our Board of Directors may consider relevant.
Forward-looking statements made by the Company speak only as of the
date made and are subject to change without any obligation on the
part of the Company to update or revise them. Undue reliance should
not be placed on these statements. For more information about risks
and uncertainties associated with the Company’s business, please
refer to the “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and “Risk Factors” sections of
the Company’s SEC filings, including, but not limited to, our
annual report on Form 10-K and quarterly reports on Form 10-Q.
World Wrestling Entertainment,
Inc.
Consolidated Income
Statements
(In millions, except per share
data)
(Unaudited)
Three Months Ended
March 31,
2020
2019
Net revenues
$
291.0
$
182.4
Operating expenses
175.4
135.4
Marketing and selling expenses
22.7
23.1
General and administrative expenses
28.7
24.3
Depreciation and amortization
10.9
6.4
Operating income (loss)
53.3
(6.8
)
Interest expense
8.2
6.3
Other (expense) income, net
(10.4
)
1.8
Income (loss) before income taxes
34.7
(11.3
)
Provision for (benefit from) income
taxes
8.5
(2.9
)
Net income (loss)
$
26.2
$
(8.4
)
Earnings (loss) per share:
Basic
$
0.34
$
(0.11
)
Diluted
$
0.31
$
(0.11
)
Weighted average common shares
outstanding:
Basic
77.3
78.0
Diluted
85.1
78.0
Dividends declared per common share (Class
A and B)
$
0.12
$
0.12
World Wrestling Entertainment,
Inc.
Consolidated Balance
Sheets
(In millions)
(Unaudited)
As of
March 31,
December 31,
2020
2019
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
158.5
$
90.4
Short-term investments, net
133.0
160.0
Accounts receivable, net
136.3
124.8
Inventory
8.3
8.3
Prepaid expenses and other current
assets
25.7
20.8
Total current assets
461.8
404.3
PROPERTY AND EQUIPMENT, NET
172.9
174.8
FINANCE LEASE RIGHT-OF-USE ASSETS, NET
318.2
289.9
OPERATING LEASE RIGHT-OF-USE ASSETS,
NET
15.7
20.8
CONTENT PRODUCTION ASSETS, NET
17.5
20.1
INVESTMENT SECURITIES
16.4
28.1
DEFERRED INCOME TAX ASSETS, NET
8.1
7.2
OTHER ASSETS, NET
47.0
47.0
TOTAL ASSETS
$
1,057.6
$
992.2
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt
$
2.4
$
3.6
Finance lease liabilities
9.3
7.9
Operating lease liabilities
3.6
6.6
Convertible debt
190.2
188.7
Accounts payable and accrued expenses
84.3
80.6
Deferred income
62.4
56.9
Total current liabilities
352.2
344.3
LONG-TERM DEBT
22.0
22.1
FINANCE LEASE LIABILITIES
368.7
335.5
OPERATING LEASE LIABILITIES
12.2
14.6
OTHER NON-CURRENT LIABILITIES
0.4
0.4
Total liabilities
755.5
716.9
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Class A common stock
0.5
0.5
Class B convertible common stock
0.3
0.3
Additional paid-in capital
417.3
405.4
Accumulated other comprehensive income
0.8
2.8
Accumulated deficit
(116.8
)
(133.7
)
Total stockholders’ equity
302.1
275.3
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
1,057.6
$
992.2
World Wrestling Entertainment,
Inc.
Consolidated Statements of
Cash Flows
(In millions)
(Unaudited)
Three Months Ended
March 31,
2020
2019
OPERATING ACTIVITIES:
Net income (loss)
$
26.2
$
(8.4
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Amortization and impairments of content
production assets
8.9
8.9
Depreciation and amortization
12.1
8.0
Other amortization
4.2
3.5
Loss on equity investments, net
11.7
0.2
Services provided in exchange for equity
instruments
(0.2
)
(0.8
)
Stock-based compensation
13.1
12.8
Benefit from deferred income taxes
(0.8
)
(0.8
)
Other non-cash adjustments
4.8
1.1
Cash (used in) provided by changes in
operating assets and liabilities:
Accounts receivable
(21.4
)
24.0
Inventory
(0.5
)
(1.0
)
Prepaid expenses and other assets
6.7
(9.4
)
Content production assets
(9.3
)
(4.8
)
Accounts payable, accrued expenses and
other liabilities
4.7
(38.8
)
Deferred income
5.7
12.2
Net cash provided by operating
activities
65.9
6.7
INVESTING ACTIVITIES:
Purchases of property and equipment and
other assets
(8.3
)
(16.8
)
Purchases of short-term investments
(8.7
)
(13.4
)
Proceeds from sales and maturities of
investments
33.5
20.5
Purchase of investment securities
—
(0.1
)
Net cash provided by (used in) investing
activities
16.5
(9.8
)
FINANCING ACTIVITIES:
Repayment of debt
(1.3
)
(1.3
)
Repayment of finance leases
(2.6
)
(2.0
)
Dividends paid
(9.3
)
(9.4
)
Taxes paid related to net settlement upon
vesting of equity awards
(2.5
)
(0.1
)
Proceeds from issuance of stock
1.4
1.2
Net cash used in financing activities
(14.3
)
(11.6
)
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
68.1
(14.7
)
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD
90.4
167.5
CASH AND CASH EQUIVALENTS, END OF
PERIOD
$
158.5
$
152.8
NON-CASH INVESTING TRANSACTIONS:
Purchases of property and equipment
recorded in accounts payable and accrued expenses
$
4.5
$
10.3
World Wrestling Entertainment,
Inc.
Supplemental Information –
Reconciliation of Adjusted Net Income
(In millions, except per share
data)
(Unaudited)
Three Months Ended March
31,
2020
2019
As Reported
Loss on Investments
(1)
Adjusted
As Reported
Adjusted
Operating income (loss)
$
53.3
$
—
$
53.3
$
(6.8
)
$
(6.8
)
Interest expense
8.2
—
8.2
6.3
6.3
Other (expense) income, net
(10.4
)
11.5
1.1
1.8
1.8
Income (loss) before taxes
34.7
11.5
46.2
(11.3
)
(11.3
)
Provision for (benefit from) income
taxes
8.5
2.8
11.3
(2.9
)
(2.9
)
Net income (loss)
$
26.2
$
8.7
$
34.9
$
(8.4
)
$
(8.4
)
Earnings (loss) per share - diluted
$
0.31
$
0.10
$
0.41
$
(0.11
)
$
(0.11
)
(1)
During the first quarter of 2020,
the Company recorded impairment charges totaling $11.5 million on
certain equity investments as a result of our impairment
evaluations. The Company did not record any impairment charges
related to these investments during the three months ended March
31, 2019.
World Wrestling Entertainment,
Inc.
Supplemental Information –
Reconciliation of Adjusted OIBDA
(In millions, except per share
data)
(Unaudited)
Three Months Ended March 31,
2020
Operating
Income
(Loss)
Depreciation
&
Amortization
Stock
Compensation
Other
Adjustments
Adjusted
OIBDA
Media
$
89.3
$
3.9
$
9.4
$
—
$
102.6
Live Events
(3.2
)
—
0.6
—
(2.6
)
Consumer Products
2.9
—
0.9
—
3.8
Corporate
(35.7
)
7.0
2.2
—
(26.5
)
Total
$
53.3
$
10.9
$
13.1
$
—
$
77.3
Three Months Ended March 31,
2019
Operating
(Loss)
Income
Depreciation
&
Amortization
Stock
Compensation
Other
Adjustments
Adjusted
OIBDA
Media
$
16.3
$
2.8
$
9.4
$
—
$
28.5
Live Events
(0.2
)
—
1.0
—
0.8
Consumer Products
5.0
—
1.0
—
6.0
Corporate
(27.9
)
3.6
1.4
—
(22.9
)
Total
$
(6.8
)
$
6.4
$
12.8
$
—
$
12.4
World Wrestling Entertainment,
Inc.
Supplemental Information -
Free Cash Flow
(In millions)
(Unaudited)
Three Months Ended
March 31,
2020
2019
Net cash provided by operating
activities
$
65.9
$
6.7
Less cash used for capital
expenditures:
Purchase of property and equipment and
other assets
(8.3
)
(16.8
)
Free Cash Flow
$
57.6
$
(10.1
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200423005777/en/
Investors: Michael Weitz
203-352-8642 Michael Guido, CFA 203-352-8779
Media: Matthew Altman
203-352-1177
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