Raises Full Year 2021 Guidance
Third Quarter 2021
Highlights*
* (All comparisons are versus the prior year period unless
stated otherwise)
- Revenue was $255.8 million, an increase of 15% or $34.2
million, primarily driven by higher ticket sales and, to a lesser
extent, venue merchandise sales, resulting from the Company’s
return to ticketed live events, including SummerSlam
- Operating income was $64.0 million, an increase of 1% or $0.6
million, benefitting from the growth in revenue and the absence of
COVID-associated severance expense as compared to the prior year.
This benefit was largely offset by higher television and
event-related production expense
- Adjusted OIBDA1 was $77.9 million, a decrease of 8% or $6.4
million. Adjusted OIBDA in the prior year quarter excludes
COVID-associated severance expense
- WWE returned to live event touring beginning July 16, 2021,
with strong demand for tickets that outpaced expectations. WWE live
events in North America attracted the highest quarterly average
attendance in more than a decade
- SummerSlam was held at Allegiant Stadium in Las Vegas in front
of a record-breaking, sold-out crowd of more than 51,000 fans. As
the most watched SummerSlam in the Company’s history, the event
also set a record for sponsorship and grew merchandise sales by
155% compared with 2019’s SummerSlam
- Digital video views were a record 12.8 billion, an increase of
39%, and hours consumed were a record 411 million, an increase of
20%, across digital and social platforms2
- Return of capital to shareholders totaled $31.0 million,
including $21.9 million in share repurchases and $9.1 million in
dividends paid
* (All comparisons are versus the prior year period unless
stated otherwise)
- In January, the Company issued Adjusted OIBDA guidance of $270
million to $305 million for the full year 2021. Based on
outperformance to-date and revised expectations for the full year,
the Company is raising its guidance. Adjusted OIBDA is now expected
to be within a range of $305 million to $315 million with the
staging of only one large-scale international event. The revised
full year guidance implies fourth quarter Adjusted OIBDA of $75
million to $85 million as compared to $51.2 million in the fourth
quarter 2020. The year-over-year increase in fourth quarter 2021 is
driven by the staging of one large-scale international event, which
the Company was unable to stage in fourth quarter 2020
WWE (NYSE: WWE) today announced financial results for its third
quarter ended September 30, 2021.
“During the third quarter, we returned to live event touring
with record average attendance, driving our better-than-expected
performance,” said Vince McMahon, WWE Chairman & CEO. “Even
with only one large-scale international event due to COVID-related
circumstances, we will exceed our previous financial guidance given
the overall strength in each of our business lines. We think our
performance highlights the strength of our brand globally and
supports our belief that we are well-positioned to maximize the
value of our content and drive long-term shareholder value.”
Kristina Salen, WWE Chief Financial Officer, added “In the
quarter, our better-than-expected revenue of $255.8 million and
Adjusted OIBDA of $77.9 million reflected robust demand for our
live events as we returned to touring and attracted average
attendance above 2019 levels. Even with only one large-scale
international event this year, we are raising our full-year 2021
Adjusted OIBDA guidance to a range of $305 million to $315
million.”
Third-Quarter Consolidated
Results*
* (All comparisons are versus the prior year period unless
stated otherwise)
Revenue was $255.8 million, an increase of 15% or $34.2
million, primarily driven by higher ticket sales and, to a lesser
extent, venue merchandise sales, resulting from the Company’s
return to ticketed live events, including SummerSlam. Additionally,
the contractual escalation of core content rights fees from the
distribution of the Company’s flagship programs, Raw and SmackDown,
was partially offset by a decrease in network revenue, driven by
the timing of the recognition of content license fees associated
with the delivery of WWE Network content to Peacock as compared to
the recognition of subscription revenue in the prior year
quarter.
Operating Income was $64.0 million, an increase of 1% or
$0.6 million, benefitting from the growth in revenue (described
above) and the absence of a $5.5 million COVID-associated severance
expense as compared to the prior year. This benefit was largely
offset by higher television and event-related production expense
related to the Company’s weekly, in-ring content and SummerSlam as
the Company returned to live event touring in July. In the prior
year quarter, WWE produced a majority of weekly, televised content
from its lower production cost training facility. The Company’s
operating income margin decreased to 25.0% from 28.6%, driven by
the increase in production expense (described above).
Adjusted OIBDA (which excludes stock compensation) was
$77.9 million, a decrease of 8% or $6.4 million. Adjusted OIBDA in
the prior year quarter excludes $5.5 million in COVID-associated
severance expense (described above). The Company’s Adjusted OIBDA
margin decreased to 30.5% from 38.0%.
Net Income was $43.5 million, or $0.52 per diluted share,
a decrease from $48.2 million, or $0.57 per diluted share, in the
third quarter 2020, reflecting after-tax unrealized gains of $5.2
million in the prior year quarter primarily related to the value of
the Company’s DraftKings investment.
Cash flows generated by operating activities were $56.9
million, a decrease from $116.8 million, primarily driven by the
timing of collections associated with our large-scale international
events in the prior year quarter.
Free Cash Flow was $44.8 million, a decrease from $110.8
million, driven by the decrease in operating cash flow primarily
due to the change in working capital and, to a lesser extent, the
increase in capital expenditures.4
Cash, cash equivalents and short-term investments were
$449 million as of September 30, 2021.
Debt totaled $221 million as of September 30, 2021,
including $200 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 $31.0 million to shareholders in the third
quarter 2021, including $21.9 million in share repurchases and $9.1
million in dividends paid. Under the Company’s existing share
repurchase program, nearly 432,000 shares were repurchased at an
average price of $50.68 per share in the third quarter 2021,
resulting in approximately $301 million remaining available for
repurchase pursuant to the Company’s $500 million authorization.
WWE intends to continue opportunistic repurchases under the
program.
Basis of Presentation
For the nine-month period ended September 30, 2021, the
Company’s consolidated pre-tax results included the impact of $8.1
million in severance expense. For the nine-month period ended
September 30, 2020, the Company’s consolidated pre-tax results
included $5.5 million in severance expense, partially offset by a
net gain of $2.9 million related to certain equity investments,
which included unrealized gains of $14.4 million primarily related
to the Company’s DraftKings investment (which was subsequently sold
in the fourth quarter 2020) partially offset by $11.5 million in
impairment charges. For the three-month period ended September 30,
2020, the Company’s consolidated pre-tax results included the
impact of $6.7 million of unrealized gains primarily related to the
value of the Company’s DraftKings investment, partially offset by
$5.5 million in severance expense. A reconciliation of Net Income
to Adjusted Net Income for the three and nine-month periods ended
September 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
Revenue was $202.7 million, an increase of 1% or $1.7
million, as the contractual escalation of core content rights fees
from the distribution of the Company’s flagship programs, Raw and
SmackDown, was partially offset by a decrease in network revenue,
driven by the timing of the recognition of content license fees
associated with the delivery of WWE Network content to Peacock in
the current year quarter as compared to the recognition of
subscription revenue in the prior year quarter.
Operating income was $79.2 million, a decrease of 16% or
$15.3 million, primarily due to an increase in television
production expense, driven by the return to live event touring in
July 2021 versus production of televised content from the Company’s
lower production cost training facility in the prior year
quarter.
Adjusted OIBDA (which excludes stock compensation) was
$85.6 million, representing a decrease of 16% or $16.1 million.
Live Events
Revenue was $28.0 million, an increase of more than 39x
or $27.3 million, driven by an increase in ticket sales as the
Company returned to staging ticketed live events and held a
record-breaking, sold-out SummerSlam event in front of more than
51,000 fans. The Company staged weekly, ticketed live events as
well as a live ticketed SummerSlam event for the first time since
the onset of the COVID-19 outbreak in the first quarter 2020. There
were 42 total ticketed live events in the current quarter,
consisting of 38 events in North America and 4 events in
international markets. With the return to live event touring,
average attendance in the Company’s North America events (including
SummerSlam) surpassed 8,300, representing the highest quarterly
average attendance in more than a decade.
Operating income was $9.1 million, an increase of more
than 3x or $13.5 million, as the increase in ticket sales
(described above) was partially offset by an increase in
event-related expenses.
Adjusted OIBDA (which excludes stock compensation) was
$9.3 million, representing an increase of more than 3x or $13.4
million.
Consumer Products
Revenue was $25.1 million, an increase of 26% or $5.2
million, reflecting higher sales of merchandise at the Company’s
live event venues driven by the return to ticketed live events,
including a record-breaking SummerSlam event, in the quarter
(described above).
Operating income was $7.2 million, an increase of 33% or
$1.8 million, reflecting the growth in revenue driven by an
increase in venue-based merchandise sales resulting from the return
to ticketed live events.
Adjusted OIBDA (which excludes stock compensation) was
$7.5 million, representing an increase of 34% or $1.9 million.
Business Outlook3
In January, the Company issued Adjusted OIBDA guidance of $270
million to $305 million for the full year 2021. Based on
outperformance to-date and revised expectations for the full year,
the Company is raising its guidance. Adjusted OIBDA is now expected
to be within a range of $305 million to $315 million with the
staging of only one large-scale international event. The revised
full year guidance implies fourth quarter Adjusted OIBDA of $75
million to $85 million as compared to $51.2 million in the fourth
quarter 2020. The projected fourth quarter growth reflects the
impact of staging one large-scale international event (which the
Company was unable to stage in the fourth quarter 2020),
contractual increases in media rights, and higher revenue and
profits from the return to live event touring partially offset by
an increase in operating expenses, including certain costs to
support the creation of content.
Through the first nine months of 2021, WWE has incurred
approximately $24 million in capital expenditures primarily related
to the support of the Company’s technology infrastructure and the
restart of the construction of its new headquarters. The Company
continues to anticipate increased spending in the fourth quarter
related to the construction of its new headquarters and to enhance
WWE’s technology infrastructure. For the full year 2021, total
capital expenditures are expected to be within a range of $60
million to $75 million. The revised range incorporates some
potential for supply chain disruption and associated potential
timing related changes in spending (and compares to the previous
full-year guidance of $85 million to $105 million).
Notes
(1) 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 nine-month periods ended September 30,
2021 and 2020 Operating Income to Adjusted OIBDA can be found in
the Supplemental Information in this release on page 14
(2) 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, reflected an increase in the
related measurement window from 30 days, prior to 2Q21, to 6 months
in 2Q21 and, effective 3Q21, the related measurement window
reflected an increase from 6 months to 12 months. Facebook data in
2020 has not been adjusted; therefore, the change in measurement
may have had a significant impact on the year-over-year
comparison
(3) 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
(4) A reconciliation of three and nine-month periods ended
September 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
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
November 4, 2021, to discuss the Company's earnings results for the
third 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:
3759105). 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 November 4, 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.
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
Nine Months Ended
September 30,
September 30,
2021
2020
2021
2020
Net Revenue:
Media
$
202.7
$
201.0
$
678.6
$
657.7
Live Events
28.0
0.7
37.7
19.2
Consumer Products
25.1
19.9
68.6
59.1
Total Net Revenue
$
255.8
$
221.6
$
784.9
$
736.0
Operating Income (Loss):
Media
$
79.2
$
94.5
$
257.1
$
265.4
Live Events
9.1
(4.4)
5.5
(12.1)
Consumer Products
7.2
5.4
21.3
15.9
Corporate (1)
(31.5)
(32.1)
(108.5)
(96.8)
Total Operating Income
$
64.0
$
63.4
$
175.4
$
172.4
Adjusted OIBDA:
Media
$
85.6
$
101.7
$
278.4
$
294.8
Live Events
9.3
(4.1)
6.1
(10.9)
Consumer Products
7.5
5.6
22.6
17.5
Corporate (1)
(24.5)
(18.9)
(77.2)
(66.4)
Total Adjusted OIBDA
$
77.9
$
84.3
$
229.9
$
235.0
(1) During the three-month period ended September 30, 2021,
corporate expense declined $0.6 million resulting from an absence
of $5.5 million in COVID-associated severance expense (excluded in
Adjusted OIBDA) recorded in the prior year quarter. During the
nine-month period ended September 30, 2021, corporate expense
increased $11.7 million, primarily driven by an increase in
staff-related 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’s policy is to include
company-wide severance expense within corporate unallocated general
and administrative expenses. The Company did not record any such
expense during the three-month period ended September 30, 2021
World Wrestling Entertainment,
Inc.
Operating Segment
Performance
(In millions)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2021
2020
2021
2020
Media Revenue:
Network (including pay-per-view) (1)
$
43.1
$
47.8
$
184.0
$
140.7
Core content rights fees (2)
141.3
132.4
422.8
398.5
Advertising and sponsorship (3)
16.1
18.1
50.4
48.8
Other (4)
2.2
2.7
21.4
69.7
Total Revenue
$
202.7
$
201.0
$
678.6
$
657.7
Three Months Ended
Nine Months Ended
September 30,
September 30,
2021
2020
2021
2020
Live Events Revenue:
North American ticket sales
$
23.8
$
—
$
30.5
$
15.2
International ticket sales
2.4
—
2.4
0.2
Advertising and sponsorship (5)
0.4
—
0.7
0.4
Other (6)
1.4
0.7
4.1
3.4
Total Revenue
$
28.0
$
0.7
$
37.7
$
19.2
Three Months Ended
Nine Months Ended
September 30,
September 30,
2021
2020
2021
2020
Consumer Products Revenue:
Consumer product licensing
$
11.6
$
10.8
$
33.9
$
28.2
eCommerce
8.2
9.1
28.1
27.7
Venue merchandise
5.3
—
6.6
3.2
Total Revenue
$
25.1
$
19.9
$
68.6
$
59.1
(1) Network revenue consists of subscription fees from customers
of WWE Network and license fees associated with the Company’s
international licensed partner agreements, as well as revenue
related to the distribution of the Company’s pay-per-view
broadcasts. Effective March 18, 2021, network revenue includes
content license fees associated with the domestic monetization of
WWE Network. Network revenue for the nine-month period ended
September 30, 2021, includes the upfront revenue recognition
related to the delivery of certain WWE Network intellectual
property rights
(2) Core content rights fees consist primarily of licensing
revenue from the distribution of the Company’s flagship programs,
Raw and SmackDown, as well as its NXT programming, through global
broadcast, pay television and digital platforms
(3) Advertising and sponsorship revenue within the Media segment
consists primarily of advertising revenue from the Company’s
content on third-party social media platforms and sponsorship fees
from sponsors who promote products utilizing the Company’s media
platforms, including promotion on the Company’s digital websites
and on-air promotional media spots
(4) Other revenue within the Media segment reflects revenue 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
Nine Months Ended
September 30,
September 30,
2021
2020
2021
2020
Net revenues
$
255.8
$
221.6
$
784.9
$
736.0
Operating expenses
139.0
108.0
437.2
400.8
Marketing and selling expenses
17.8
14.5
52.7
54.7
General and administrative expenses
24.9
25.2
87.8
75.9
Depreciation and amortization
10.1
10.5
31.8
32.2
Operating income
64.0
63.4
175.4
172.4
Interest expense
8.5
9.2
25.5
26.5
Other income, net
0.3
7.0
0.7
5.1
Income before income taxes
55.8
61.2
150.6
151.0
Provision for income taxes
12.3
13.0
34.1
32.8
Net income
$
43.5
$
48.2
$
116.5
$
118.2
Earnings per share:
Basic
$
0.57
$
0.62
$
1.52
$
1.53
Diluted
$
0.52
$
0.57
$
1.37
$
1.40
Weighted average common shares
outstanding:
Basic
76.1
77.7
76.6
77.5
Diluted
84.3
84.1
85.2
84.4
Dividends declared per common share (Class
A and B)
$
0.12
$
0.12
$
0.36
$
0.36
World Wrestling Entertainment,
Inc.
Consolidated Balance
Sheets
(In millions)
(Unaudited)
As of
September 30,
December 31,
2021
2020
Assets
Current assets:
Cash and cash equivalents
$
271.0
$
462.1
Short-term investments, net
177.7
131.3
Accounts receivable, net
125.5
52.0
Inventory
7.3
8.4
Prepaid expenses and other current
assets
28.5
73.1
Total current assets
610.0
726.9
Property and equipment, net
160.7
161.5
Finance lease right-of-use assets, net
297.3
310.8
Operating lease right-of-use assets,
net
10.4
13.5
Content production assets, net
10.1
15.4
Investment securities
11.3
11.1
Deferred income tax assets, net
19.8
10.1
Other assets, net
47.0
48.0
Total assets
$
1,166.6
$
1,297.3
Liabilities and Stockholders'
Equity
Current liabilities:
Current portion of long-term debt
$
0.4
$
100.4
Finance lease liabilities
9.3
9.6
Operating lease liabilities
5.0
4.0
Convertible debt
199.5
194.7
Accounts payable and accrued expenses
115.3
124.7
Deferred income
57.7
62.9
Total current liabilities
387.2
496.3
Long-term debt
21.4
21.7
Finance lease liabilities
372.0
379.9
Operating lease liabilities
6.1
9.7
Other non-current liabilities
7.1
0.9
Total liabilities
793.8
908.5
Commitments and contingencies
Stockholders' equity:
Class A common stock
0.4
0.5
Class B convertible common stock
0.3
0.3
Additional paid-in capital
415.1
424.7
Accumulated other comprehensive income
2.8
3.0
Accumulated deficit
(45.8)
(39.7)
Total stockholders’ equity
372.8
388.8
Total liabilities and stockholders'
equity
$
1,166.6
$
1,297.3
World Wrestling Entertainment,
Inc.
Consolidated Statements of
Cash Flows
(In millions)
(Unaudited)
Nine Months Ended
September 30,
2021
2020
OPERATING ACTIVITIES:
Net income
$
116.5
$
118.2
Adjustments to reconcile net income to net
cash provided by operating activities:
Amortization and impairments of content
production assets
18.2
14.9
Depreciation and amortization
37.5
36.4
Other amortization
13.9
13.6
Loss (gain) on equity investments, net
0.8
(2.9)
Stock-based compensation
14.6
24.9
(Benefit from) provision for deferred
income taxes
(9.8)
10.1
Other non-cash adjustments
0.8
15.5
Cash provided by (used in) changes in
operating assets and liabilities:
Accounts receivable
(74.9)
54.2
Inventory
2.2
(1.6)
Prepaid expenses and other assets
6.3
(21.8)
Content production assets
(12.6)
(19.5)
Accounts payable, accrued expenses and
other liabilities
28.0
8.0
Deferred income
(5.2)
7.5
Net cash provided by operating
activities
136.3
257.5
INVESTING ACTIVITIES:
Purchases of property and equipment and
other assets
(24.4)
(21.4)
Purchases of short-term investments
(225.3)
(64.3)
Proceeds from sales and maturities of
investments
177.3
105.4
Purchase of investment securities
(1.1)
(0.2)
Net cash (used in) provided by investing
activities
(73.5)
19.5
FINANCING ACTIVITIES:
Repayment of debt
(100.3)
(3.5)
Repayment of finance leases
(8.0)
(8.2)
Dividends paid
(27.4)
(27.9)
Proceeds from borrowings under Revolving
Credit Facility
—
200.0
Taxes paid related to net settlement upon
vesting of equity awards
(5.6)
(11.0)
Proceeds from issuance of stock
3.0
2.7
Repurchase and retirement of common
stock
(115.6)
—
Net cash (used in) provided by financing
activities
(253.9)
152.1
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS
(191.1)
429.1
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD
462.1
90.4
CASH AND CASH EQUIVALENTS, END OF
PERIOD
$
271.0
$
519.5
NON-CASH INVESTING TRANSACTIONS:
Purchases of property and equipment
recorded in accounts payable and accrued expenses
$
10.9
$
2.7
World Wrestling Entertainment,
Inc.
Supplemental Information –
Reconciliation of Adjusted Net Income
(In millions, except per share
data)
(Unaudited)
Three Months Ended September
30,
2021
2020
As Reported
Adjusted
As Reported
Gain on Investments
(1)
Other Adjustments (2)
Adjusted
Operating income
$
64.0
$
64.0
$
63.4
$
—
$
5.5
$
68.9
Interest expense
8.5
8.5
9.2
—
—
9.2
Other income (expense), net
0.3
0.3
7.0
(6.7)
—
0.3
Income before taxes
55.8
55.8
61.2
(6.7)
5.5
60.0
Provision for income taxes
12.3
12.3
13.0
(1.5)
1.2
12.6
Net income
$
43.5
$
43.5
$
48.2
$
(5.2)
$
4.3
$
47.4
Earnings per share - diluted
$
0.52
$
0.52
$
0.57
$
(0.06)
$
0.05
$
0.56
Nine Months Ended September
30,
2021
2020
As Reported
Other Adjustments (2)
Adjusted
As Reported
Gain on Investments
(1)
Other Adjustments (2)
Adjusted
Operating income
$
175.4
$
8.1
$
183.5
$
172.4
$
—
$
5.5
$
177.9
Interest expense
25.5
—
25.5
26.5
—
—
26.5
Other income (expense), net
0.7
—
0.7
5.1
(2.9)
—
2.2
Income before taxes
150.6
8.1
158.7
151.0
(2.9)
5.5
153.6
Provision for income taxes
34.1
1.8
35.9
32.8
(0.6)
1.2
33.4
Net income
$
116.5
$
6.3
$
122.8
$
118.2
$
(2.3)
$
4.3
$
120.2
Earnings per share - diluted
$
1.37
$
0.07
$
1.44
$
1.40
$
(0.03)
$
0.05
$
1.42
(1) During the three-month period ended September 30, 2020, the
Company’s consolidated pre-tax results included the impact of $6.7
million of unrealized holding gains primarily related to the value
of the Company’s DraftKings investment. During the nine-month
period ended September 30, 2020, the Company’s consolidated pre-tax
results included a net gain of $2.9 million related to certain
equity investments, which included unrealized gains of $14.4
million primarily related to the value of the Company’s DraftKings
investment partially offset by $11.5 million of impairment charges.
The Company did not recognize any such material net gains or
losses, or impairment charges related to its equity investments
during the three and nine-month periods ended September 30,
2021
(2) During the nine-month period ended September 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. During the three and nine-month
periods ended September 30, 2020, the Company’s consolidated
pre-tax results included the impact of $5.5 million in severance
expense resulting from a reduction in force due to COVID-19. The
Company did not record any such expense during the three-month
period ended September 30, 2021
World Wrestling Entertainment,
Inc.
Supplemental Information –
Reconciliation of Adjusted OIBDA
(In millions, except per share
data)
(Unaudited)
Three Months Ended September
30, 2021
Operating Income
(Loss)
Depreciation &
Amortization
Stock Compensation
Other Adjustments
Adjusted OIBDA
Media
$
79.2
$
3.5
$
2.9
$
—
$
85.6
Live Events
9.1
—
0.2
—
9.3
Consumer Products
7.2
—
0.3
—
7.5
Corporate
(31.5)
6.6
0.4
—
(24.5)
Total
$
64.0
$
10.1
$
3.8
$
—
$
77.9
Three Months Ended September
30, 2020
Operating Income
(Loss)
Depreciation &
Amortization
Stock Compensation
Other Adjustments (1)
Adjusted OIBDA
Media
$
94.5
$
3.7
$
3.5
$
—
$
101.7
Live Events
(4.4)
—
0.3
—
(4.1)
Consumer Products
5.4
—
0.2
—
5.6
Corporate
(32.1)
6.8
0.9
5.5
(18.9)
Total
$
63.4
$
10.5
$
4.9
$
5.5
$
84.3
Nine Months Ended September
30, 2021
Operating Income
(Loss)
Depreciation &
Amortization
Stock Compensation (2)
Other Adjustments (1)
Adjusted OIBDA
Media
$
257.1
$
11.0
$
10.3
$
—
$
278.4
Live Events
5.5
—
0.6
—
6.1
Consumer Products
21.3
0.1
1.2
—
22.6
Corporate
(108.5)
20.7
2.5
8.1
(77.2)
Total
$
175.4
$
31.8
$
14.6
$
8.1
$
229.9
Nine Months Ended September
30, 2020
Operating Income
(Loss)
Depreciation &
Amortization
Stock Compensation (2)
Other Adjustments (1)
Adjusted OIBDA
Media
$
265.4
$
11.4
$
18.0
$
—
$
294.8
Live Events
(12.1)
—
1.2
—
(10.9)
Consumer Products
15.9
—
1.6
—
17.5
Corporate
(96.8)
20.8
4.1
5.5
(66.4)
Total
$
172.4
$
32.2
$
24.9
$
5.5
$
235.0
(1) During the nine-month period ended September 30, 2021, the
Company recorded $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. During the three and
nine-month periods ended September 30, 2020, the Company recorded
$5.5 million in severance expense resulting from a reduction in
force due to COVID-19. The Company’s policy is to include
company-wide severance expense within corporate unallocated general
and administrative expenses. The Company did not record any such
expense during the three-month period ended September 30, 2021
(2) During the nine-month period ended September 30, 2021, stock
compensation expense decreased $10.3 million primarily due to an
immediate vesting award in the prior year period as well as, in the
current year period, forfeitures arising from the Company’s
business restructuring
World Wrestling Entertainment,
Inc.
Supplemental Information -
Free Cash Flow
(In millions)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2021
2020
2021
2020
Net cash provided by operating
activities
$
56.9
$
116.8
$
136.3
$
257.5
Less cash used for capital
expenditures:
Purchase of property and equipment and
other assets
(12.1)
(6.0)
(24.4)
(21.4)
Free Cash Flow
$
44.8
$
110.8
$
111.9
$
236.1
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211104006103/en/
Investors: Michael Weitz 203-352-8642 Michael Guido, CFA
203-352-8779 Media: Matthew Altman 203-352-1177
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