Key Performance Metrics Improve
Second Quarter 2021
Highlights*
* (All comparisons are versus the prior year period unless
stated otherwise)
- Revenue was $265.6 million, an increase of 19% or $42.2
million, primarily due to an increase in Media segment revenue
driven by the increased monetization of content and, to a lesser
extent, an increase in Live Event segment revenue reflecting ticket
sales from WrestleMania, the Company’s first ticketed live event
since the first quarter 2020
- Operating income was $46.3 million, a decrease of 17% or $9.4
million, primarily driven by higher television and event-related
production expense related to WWE ThunderDome and WrestleMania 37
and, to a lesser extent, increased personnel expense, including
$8.1 million in severance expense as well as higher compensation
expense as employees returned from furlough
- Adjusted OIBDA1 was $68.1 million, a decrease of 7% or $5.4
million
- WWE announced its return to live event touring beginning July
16, 2021, with tickets for events on sale through the end of
September 2021. The five events that aired through July 26 have
been at or close to full capacity with current demand for future
events at least on par with 2019
- Digital video views were a record 11.2 billion, an increase of
13%, and hours consumed were a record 394 million, an increase of
5%, across digital and social platforms2
- Return of capital to shareholders totaled $27.9 million,
including $18.8 million in share repurchases and $9.1 million in
dividends paid
WWE (NYSE: WWE) today announced financial results for its second
quarter ended June 30, 2021.
“During the second quarter, we generated solid financial results
as we continued to focus on building fan engagement,” said Vince
McMahon, WWE Chairman & CEO. “With the announced return to live
event touring and robust ticket demand, we believe we can further
consumption across platforms, maximize new business opportunities
and drive long-term growth.”
Kristina Salen, WWE Chief Financial Officer, added “In the
quarter, Adjusted OIBDA results reflected an increase in television
production expenses to enhance the viewing experience of WWE’s
fans. Although Adjusted OIBDA declined, key performance metrics
demonstrated positive trends and we continue to realize better than
expected television production efficiencies, stronger sponsorship
sales and heightened demand for our live events.”
Second-Quarter Consolidated
Results*
* (All comparisons are versus the prior year period unless
stated otherwise)
Revenue was $265.6 million, an increase of 19% or $42.2
million, primarily due to an increase in Media segment revenue
driven by the increased monetization of content and, to a lesser
extent, an increase in Live Event segment revenue reflecting ticket
sales from WrestleMania, the Company’s first ticketed live event
since the first quarter 2020.
Operating Income was $46.3 million, a decrease of 17% or
$9.4 million, primarily driven by increased television and
event-related production expense due to WWE ThunderDome and
WrestleMania 37. In the prior year quarter, WWE produced all
televised content, including WrestleMania 36, from its lower
production cost training facility. The decrease in operating income
was also driven by an increase in personnel expense, which includes
$8.1 million in severance expense primarily related to the
combination of WWE’s television, digital and studios teams into one
organization for a more unified content strategy and more
streamlined content production, as well as higher compensation
expense as employees returned from furlough. The increase in
operating expense was partially offset by an increase in Media
segment revenue driven by the increased monetization of content
and, to a lesser extent, an increase in Live Event segment revenue
reflecting ticket sales from WrestleMania. Additionally, operating
income reflected a $4.2 million year-over-year reduction in stock
compensation expense primarily due to forfeitures arising from the
Company’s business restructuring. The Company’s operating income
margin decreased to 17.4% from 24.9%, driven by the increase in
production and personnel expenses (described above).
Adjusted OIBDA (which excludes stock compensation) was
$68.1 million, a decrease of 7% or $5.4 million. Adjusted OIBDA
excludes $8.1 million in severance expense (described above). The
Company’s Adjusted OIBDA margin decreased to 25.6% from 32.9%.
Net Income was $29.2 million, a decrease of 33% or $14.6
million, reflecting lower operating performance as described above.
Current period results reflected the after-tax impact of $6.3
million in severance expense and compared to the after-tax impact
of $6.1 million from an unrealized gain on an equity investment in
the prior year period. Excluding these items, Adjusted Net Income3
was $35.5 million, a decrease of 6% or $2.2 million.
Cash flows generated by operating activities were $19.5
million, a decrease from $74.8 million, primarily driven by the
timing of collections associated with Network revenue, higher
federal income tax payments due to lower foreign tax credits and,
to a lesser extent, lower operating performance.
Free Cash Flow was $13.3 million, a decrease from $67.7
million, primarily driven by the change in operating cash
flow.4
Cash, cash equivalents and short-term investments were
$443 million as of June 30, 2021.
Debt totaled $220 million as of June 30, 2021, including
$198 million associated with the carrying value of convertible
senior notes due 2023. The Company has no amounts outstanding under
its revolving line of credit and estimates related debt capacity of
approximately $200 million.
Return of Capital to
Shareholders
The Company returned $27.9 million to shareholders in the second
quarter 2021, including $18.8 million in share repurchases and $9.1
million in dividends paid. Under the Company’s existing share
repurchase program, more than 336,000 shares were repurchased at an
average price of $55.77 per share in the second quarter 2021,
resulting in approximately $323 million remaining available for
repurchase of the $500 million authorization. WWE intends to
continue opportunistic repurchases under the program.
Basis of Presentation
For the three and six-month periods ended June 30, 2021, the
Company’s consolidated pre-tax results included the impact of $8.1
million in severance expense. For the three-month period ended June
30, 2020, the Company’s consolidated pre-tax results included the
impact of an unrealized gain of $7.7 million related to the
recognition of an upward mark-to-market adjustment on a certain
equity investment. For the six-month period ended June 30, 2020,
the Company’s consolidated pre-tax results included a net loss of
$3.8 million related to certain equity investments, which included
$11.5 million of impairment charges partially offset by an
unrealized gain of $7.7 million. A reconciliation of Net Income to
Adjusted Net Income for the three and six-month periods ended June
30, 2021 and 2020 can be found in the supplemental schedule on page
13 of this release.
Results by Operating
Segment*
* (All comparisons are versus the prior year period unless
stated otherwise)
Media
Second-Quarter 2021
Revenue was $233.9 million, an increase of 17% or $33.8
million, primarily driven by the increased monetization of content,
including higher content license fees associated with the delivery
of WWE Network content, the contractual escalation of core content
rights fees from the distribution of the Company’s flagship
programs, Raw and SmackDown, as well as license fees from the
distribution of original content. Finally, Media revenue increased
due to higher sales of advertising and sponsorship across
platforms.
Operating income was $80.8 million, a decrease of 1% or
$0.8 million, as the increase in revenue (described above) was more
than offset by an increase in television production expense due to
WWE ThunderDome as well as a $3.4 million decrease in stock
compensation expense (as described above).
Adjusted OIBDA (which excludes stock compensation) was
$86.2 million, representing a decrease of 5% or $4.3 million.
Live Events
Second-Quarter 2021
Revenue was $9.2 million, an increase of more than 8x or
$8.2 million, driven by an increase in ticket sales as the Company
staged its marquee annual event, WrestleMania, over two-consecutive
sold-out nights. WrestleMania was the Company’s first
ticketed-audience event held since the onset of the COVID-19
outbreak more than one year ago.
Operating income was $0.9 million, an increase of 120% or
$5.4 million, as the increase in ticket sales (described above) was
partially offset by an increase in event-related expenses.
Adjusted OIBDA was $1.1 million, an increase of 126% or
$5.3 million.
Consumer Products
Second-Quarter 2021
Revenue was $22.5 million, an increase of 1% or $0.2
million, as higher toy royalties and venue merchandise sales
resulting from WrestleMania (described above) offset lower
eCommerce merchandise sales. The decrease in eCommerce sales
reflected a tough comparison to elevated COVID-related sales in the
prior year quarter.
Operating income was $7.9 million, an increase of 4% or
$0.3 million, primarily due to changes in product mix and, to a
lesser extent, an increase in revenue (described above).
Adjusted OIBDA was $8.4 million, representing an increase
of 4% or $0.3 million.
Business Outlook5
In January, the Company issued Adjusted OIBDA guidance of $270
million to $305 million for the full year 2021. During the second
quarter, key performance metrics demonstrated positive trends, and
the Company continue to realize better-than-expected television
production efficiencies, stronger sponsorship sales, and heightened
demand for its live events. However, management is not adjusting
full year 2021 guidance at this time given ongoing caution
regarding the potential impact of COVID-19 and its variants on
WWE’s operations.
Additionally, the Company anticipates spending on its new
headquarters buildout as the projects re-starts in the second half
of 2021. For the full year 2021, the Company estimates total
capital expenditures of [$85 million to $105 million]. The increase
in capital expenditures for 2021 reflects the acceleration of
certain construction spend, as the overall cost of construction –
net of tenant incentives, tax credits and other capital offsets -
has not materially increased. The total net cost of the Company’s
new headquarters through completion is estimated within a range of
[$160 million to $180 million].
Notes
- The definition of Adjusted OIBDA can be found in the Non-GAAP
Measures section of the release on page 5. A reconciliation of
three and six-month periods ended June 30, 2021 and 2020 Operating
Income to Adjusted OIBDA can be found in the Supplemental
Information in this release on page 14
- Consumption includes videos viewed on third-party (Facebook,
YouTube, Twitter, Instagram, Snapchat, TikTok, Twitch, etc.) and
WWE platforms (WWE.com and WWE App, including the Free Version of
WWE Network). Facebook consumption, which is a primary driver of
the growth in digital consumption, reflects an increase in the
related measurement window from 30 days to 6 months after posting-
effective April 1, 2021
- A reconciliation of three and six-month periods ended June 30,
2021 and 2020 Net Income to Adjusted Net Income can be found in the
Supplemental Information in this release on page 13
- A reconciliation of three and six-month periods ended June 30,
2021 and 2020 Free Cash Flow to Net cash provided by operating
activities can be found in the Supplemental Information in this
release on page 15
- 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 COVID-19 on WWE’s business, results
of operations and financial condition; entering, maintaining and
renewing major distribution agreements; WWE Network; uncertainties
associated with international markets and risks inherent in large
live events, and other risk factors disclosed in our annual report
on Form 10-K for the year ended December 31, 2020. In addition, WWE
is unable to provide a reconciliation of full year 2021 guidance to
GAAP measures as, at this time, WWE cannot accurately determine all
of the adjustments that would be required
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 supporting the operations
of our segments, 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 July
29, 2021, to discuss the Company's earnings results for the second
quarter ended 2021. 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: 1324046). 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 July 29, 2021 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 programming can be seen in more than 900 million homes
worldwide in 28 languages through world-class distribution partners
including NBCUniversal, FOX Sports, BT Sport, Sony India and
Rogers. The award-winning WWE Network includes all live
pay-per-views, scheduled programming and a massive video-on-demand
library and is currently available in more than 180 countries. In
the United States, NBCUniversal’s streaming service, Peacock, is
the exclusive home to WWE Network. The Company is headquartered in
Stamford, Connecticut.
Additional information on WWE (NYSE: WWE) can be found at
wwe.com and corporate.wwe.com.
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 and licensing agreements; a rapidly
evolving media landscape; WWE Network; 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.
Operating Segment
Performance
(In millions)
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2020
2021
2020
Net Revenue:
Media
$
233.9
$
200.1
$
475.9
$
456.7
Live Events
9.2
1.0
9.7
18.5
Consumer Products
22.5
22.3
43.5
39.2
Total Net Revenue
$
265.6
$
223.4
$
529.1
$
514.4
Operating Income (Loss):
Media
$
80.8
$
81.6
$
177.9
$
170.9
Live Events
0.9
(4.5)
(3.6)
(7.7)
Consumer Products
7.9
7.6
14.1
10.5
Corporate (1)
(43.3)
(29.0)
(77.0)
(64.7)
Total Operating Income
$
46.3
$
55.7
$
111.4
$
109.0
Adjusted OIBDA:
Media
$
86.2
$
90.5
$
192.8
$
193.1
Live Events
1.1
(4.2)
(3.2)
(6.8)
Consumer Products
8.4
8.1
15.1
11.9
Corporate (1)
(27.6)
(20.9)
(52.7)
(47.4)
Total Adjusted OIBDA
$
68.1
$
73.5
$
152.0
$
150.8
(1) During the three and six-month periods ended June 30, 2021,
corporate expense increased $14.3 million, primarily driven by an
increase in severance expense, including $8.1 million in severance
expense (excluded in Adjusted OIBDA) primarily related to the
combination of WWE’s television, digital and studios teams into one
organization for a more unified content strategy and more
streamlined content production. The Company did not record any such
severance expense during the three and six-month periods ended June
30, 2020
World Wrestling Entertainment,
Inc.
Operating Segment
Performance
(In millions)
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2020
2021
2020
Media Revenue:
Network (including pay-per-view) (1)
$
61.5
$
49.4
$
140.9
$
92.9
Core content rights fees (2)
141.8
132.9
281.5
266.1
Advertising and sponsorship (3)
18.7
13.3
34.3
30.7
Other (4)
11.9
4.5
19.2
67.0
Total Revenue
$
233.9
$
200.1
$
475.9
$
456.7
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2020
2021
2020
Live Events Revenue:
North American ticket sales
$
6.7
$
—
$
6.7
$
15.2
International ticket sales
—
—
—
0.2
Advertising and sponsorship (5)
0.3
0.3
0.3
0.4
Other (6)
2.2
0.7
2.7
2.7
Total Revenue
$
9.2
$
1.0
$
9.7
$
18.5
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2020
2021
2020
Consumer Products Revenue:
Consumer product licensing
$
11.3
$
9.7
$
22.3
$
17.4
eCommerce
9.9
12.6
19.9
18.6
Venue merchandise
1.3
—
1.3
3.2
Total Revenue
$
22.5
$
22.3
$
43.5
$
39.2
(1) Network revenue consists of revenue earned from fees from
customers of WWE Network and license fees under international
licensed partner agreements, as well as amounts earned from our
pay-per-view broadcasts. Effective March 18, 2021, Network revenue
includes the domestic monetization of WWE Network generated from
content license fees. Network revenue for the six months ended June
30, 2021, includes the upfront revenue recognition related to the
delivery of certain WWE Network intellectual property rights
recorded in the first quarter 2021
(2) Core content rights fees consist primarily of licensing
revenue 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
(3) Advertising and sponsorship revenue consists primarily of
advertising revenue generated from the Company’s content on
third-party social media platforms and sponsorship fees from
sponsors that promote products utilizing the Company’s media
platforms, including promotion on the Company’s digital websites
and on-air promotional media spots
(4) Other forms of media monetization reflect revenue 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
(5) Advertising and sponsorship revenue consists primarily of
fees from advertisers and sponsors that promote products utilizing
the Company’s live events (i.e., presenting sponsor of fan
engagement events and advertising signage at events)
(6) Other Live Events includes revenue from the sale of travel
packages associated with the Company’s global live events,
commissions earned through secondary ticketing, and revenue from
events for which the Company receives a fixed fee
World Wrestling Entertainment,
Inc.
Consolidated Income
Statements
(In millions, except per share
data)
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2020
2021
2020
Net revenues
$
265.6
$
223.4
$
529.1
$
514.4
Operating expenses
156.1
117.4
298.2
292.8
Marketing and selling expenses
16.0
17.5
34.9
40.2
General and administrative expenses
36.3
22.0
62.9
50.7
Depreciation and amortization
10.9
10.8
21.7
21.7
Operating income
46.3
55.7
111.4
109.0
Interest expense
8.5
9.1
17.0
17.3
Other (expense) income, net
(0.1)
8.5
0.4
(1.9)
Income before income taxes
37.7
55.1
94.8
89.8
Provision for income taxes
8.5
11.3
21.8
19.8
Net income
$
29.2
$
43.8
$
73.0
$
70.0
Earnings per share:
Basic
$
0.38
$
0.57
$
0.95
$
0.90
Diluted
$
0.34
$
0.52
$
0.85
$
0.83
Weighted average common shares
outstanding:
Basic
76.3
77.4
76.8
77.4
Diluted
85.5
83.9
85.6
84.5
Dividends declared per common share (Class
A and B)
$
0.12
$
0.12
$
0.24
$
0.24
World Wrestling Entertainment,
Inc.
Consolidated Balance
Sheets
(In millions)
(Unaudited)
As of
June 30,
December 31,
2021
2020
Assets
Current assets:
Cash and cash equivalents
$
322.6
$
462.1
Short-term investments, net
120.2
131.3
Accounts receivable, net
113.9
52.0
Inventory
7.0
8.4
Prepaid expenses and other current
assets
57.5
73.1
Total current assets
621.2
726.9
Property and equipment, net
152.0
161.5
Finance lease right-of-use assets, net
301.8
310.8
Operating lease right-of-use assets,
net
11.9
13.5
Content production assets, net
8.8
15.4
Investment securities
10.8
11.1
Deferred income tax assets, net
11.9
10.1
Other assets, net
47.5
48.0
Total assets
$
1,165.9
$
1,297.3
Liabilities and Stockholders'
Equity
Current liabilities:
Current portion of long-term debt
$
0.4
$
100.4
Finance lease liabilities
9.5
9.6
Operating lease liabilities
5.0
4.0
Convertible debt
197.9
194.7
Accounts payable and accrued expenses
128.1
124.7
Deferred income
55.4
62.9
Total current liabilities
396.3
496.3
Long-term debt
21.5
21.7
Finance lease liabilities
374.7
379.9
Operating lease liabilities
7.4
9.7
Other non-current liabilities
5.1
0.9
Total liabilities
805.0
908.5
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
419.2
424.7
Accumulated other comprehensive income
2.9
3.0
Accumulated deficit
(62.0)
(39.7)
Total stockholders’ equity
360.9
388.8
Total liabilities and stockholders'
equity
$
1,165.9
$
1,297.3
World Wrestling Entertainment,
Inc.
Consolidated Statements of
Cash Flows
(In millions)
(Unaudited)
Six Months Ended
June 30,
2021
2020
OPERATING ACTIVITIES:
Net income
$
73.0
$
70.0
Adjustments to reconcile net income to net
cash provided by operating activities:
Amortization and impairments of content
production assets
16.0
12.0
Depreciation and amortization
25.4
24.3
Other amortization
9.0
8.8
Loss on equity investments, net
0.8
3.8
Stock-based compensation
10.8
20.1
(Benefit from) provision for deferred
income taxes
(1.9)
2.6
Other non-cash adjustments
0.4
9.4
Cash provided by (used in) changes in
operating assets and liabilities:
Accounts receivable
(63.1)
(6.2)
Inventory
2.7
0.4
Prepaid expenses and other assets
15.2
6.7
Content production assets
(9.1)
(14.7)
Accounts payable, accrued expenses and
other liabilities
7.7
(3.8)
Deferred income
(7.5)
7.3
Net cash provided by operating
activities
79.4
140.7
INVESTING ACTIVITIES:
Purchases of property and equipment and
other assets
(12.3)
(15.4)
Purchases of short-term investments
(132.6)
(31.0)
Proceeds from sales and maturities of
investments
143.0
67.7
Purchase of investment securities
(0.6)
—
Net cash (used in) provided by investing
activities
(2.5)
21.3
FINANCING ACTIVITIES:
Repayment of debt
(100.2)
(2.6)
Repayment of finance leases
(5.4)
(5.4)
Dividends paid
(18.3)
(18.6)
Proceeds from borrowings under Revolving
Credit Facility
—
200.0
Taxes paid related to net settlement upon
vesting of equity awards
(0.7)
(2.6)
Proceeds from issuance of stock
2.0
1.4
Repurchase and retirement of common
stock
(93.8)
—
Net cash (used in) provided by financing
activities
(216.4)
172.2
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS
(139.5)
334.2
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD
462.1
90.4
CASH AND CASH EQUIVALENTS, END OF
PERIOD
$
322.6
$
424.6
NON-CASH INVESTING TRANSACTIONS:
Purchases of property and equipment
recorded in accounts payable and accrued expenses
$
3.0
$
3.4
World Wrestling Entertainment,
Inc.
Supplemental Information –
Reconciliation of Adjusted Net Income
(In millions, except per share
data)
(Unaudited)
Three Months Ended June
30,
2021
2020
As Reported
Other Adjustments (1)
Adjusted
As Reported
Gain on Investments
(2)
Adjusted
Operating income
$
46.3
$
8.1
$
54.4
$
55.7
$
—
$
55.7
Interest expense
8.5
—
8.5
9.1
—
9.1
Other (expense) income, net
(0.1)
—
(0.1)
8.5
(7.7)
0.8
Income before taxes
37.7
8.1
45.8
55.1
(7.7)
47.4
Provision for income taxes
8.5
1.8
10.3
11.3
(1.6)
9.7
Net income
$
29.2
$
6.3
$
35.5
$
43.8
$
(6.1)
$
37.7
Earnings per share - diluted
$
0.34
$
0.07
$
0.42
$
0.52
$
(0.07)
$
0.45
Six Months Ended June
30,
2021
2020
As Reported
Other Adjustments (1)
Adjusted
As Reported
Loss on Investments
(2)
Adjusted
Operating income
$
111.4
$
8.1
$
119.5
$
109.0
$
—
$
109.0
Interest expense
17.0
—
17.0
17.3
—
17.3
Other (expense) income, net
0.4
—
0.4
(1.9)
3.8
1.9
Income before taxes
94.8
8.1
102.9
89.8
3.8
93.6
Provision for income taxes
21.8
1.9
23.7
19.8
0.8
20.6
Net income
$
73.0
$
6.2
$
79.2
$
70.0
$
3.0
$
73.0
Earnings per share - diluted
$
0.85
$
0.07
$
0.93
$
0.83
$
0.04
$
0.86
(1) During the three and six-month periods ended June 30, 2021,
the Company’s consolidated pre-tax results included the impact of
$8.1 million in severance expense primarily related to the
combination of WWE’s television, digital and studios teams into one
organization for a more unified content strategy and more
streamlined content production. The Company did not record any such
expense during the three and six-month periods ended June 30,
2020
(2) During the three-month period ended June 20, 2020, the
Company’s consolidated pre-tax results included an unrealized gain
of $7.7 million related to the recognition of an upward
mark-to-market adjustment on a certain equity investment. During
the six-month period ended June 30, 2020, the Company’s
consolidated pre-tax results included a net loss of $3.8 million
related to certain equity investments, which included $11.5 million
of impairment charges partially offset by an unrealized holding
gain of $7.7 million. The Company did not record any such
unrealized gain or impairment charges during the three and
six-month periods ended June 30, 2021
World Wrestling Entertainment,
Inc.
Supplemental Information –
Reconciliation of Adjusted OIBDA
(In millions, except per share
data)
(Unaudited)
Three Months Ended June 30,
2021
Operating Income
(Loss)
Depreciation &
Amortization
Stock Compensation (1)
Other Adjustments (2)
Adjusted OIBDA
Media
$
80.8
$
3.8
$
1.6
$
—
$
86.2
Live Events
0.9
—
0.2
—
1.1
Consumer Products
7.9
0.1
0.4
—
8.4
Corporate
(43.3)
7.0
0.6
8.1
(27.6)
Total
$
46.3
$
10.9
$
2.8
$
8.1
$
68.1
Three Months Ended June 30,
2020
Operating Income
(Loss)
Depreciation &
Amortization
Stock Compensation (1)
Other Adjustments
Adjusted OIBDA
Media
$
81.6
$
3.8
$
5.1
$
—
$
90.5
Live Events
(4.5)
—
0.3
—
(4.2)
Consumer Products
7.6
—
0.5
—
8.1
Corporate
(29.0)
7.0
1.1
—
(20.9)
Total
$
55.7
$
10.8
$
7.0
$
—
$
73.5
Six Months Ended June 30,
2021
Operating Income
(Loss)
Depreciation &
Amortization
Stock Compensation (1)
Other Adjustments (2)
Adjusted OIBDA
Media
$
177.9
$
7.5
$
7.4
$
—
$
192.8
Live Events
(3.6)
—
0.4
—
(3.2)
Consumer Products
14.1
0.1
0.9
—
15.1
Corporate
(77.0)
14.1
2.1
8.1
(52.7)
Total
$
111.4
$
21.7
$
10.8
$
8.1
$
152.0
Six Months Ended June 30,
2020
Operating Income
(Loss)
Depreciation &
Amortization
Stock Compensation (1)
Other Adjustments
Adjusted OIBDA
Media
$
170.9
$
7.7
$
14.5
$
—
$
193.1
Live Events
(7.7)
—
0.9
—
(6.8)
Consumer Products
10.5
—
1.4
—
11.9
Corporate
(64.7)
14.0
3.3
—
(47.4)
Total
$
109.0
$
21.7
$
20.1
$
—
$
150.8
(1) During the three-month period ended June 30, 2021, stock
compensation expense decreased $4.2 million primarily due to
forfeitures arising from the Company’s business restructuring.
During the six-month period ended June 30, 2021, stock compensation
expense decreased $9.3 million primarily due to an immediate
vesting award in the prior year period as well as, in the current
period, forfeitures arising from the Company’s business
restructuring
(2) During the three and six-month periods ended June 30, 2021,
the Company’s consolidated pre-tax results included the impact of
$8.1 million in severance expense primarily related to the
combination of WWE’s television, digital and studios teams into one
organization for a more unified content strategy and more
streamlined content production. The Company did not record any such
expense during the three and six-month periods ended June 30,
2020
World Wrestling Entertainment,
Inc.
Supplemental Information -
Free Cash Flow
(In millions)
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2020
2021
2020
Net cash provided by operating
activities
$
19.5
$
74.8
$
79.4
$
140.7
Less cash used for capital
expenditures:
Purchase of property and equipment and
other assets
(6.2)
(7.1)
(12.3)
(15.4)
Free Cash Flow
$
13.3
$
67.7
$
67.1
$
125.3
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210729006097/en/
Investors: Michael Weitz 203-352-8642 Michael Guido, CFA
203-352-8779 Media: Matthew Altman 203-352-1177
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