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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
10-Q
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☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
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For the quarterly period ended
March 31,
2022
or
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
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For the transition period from
to
Commission File Number:
001-40373
ENDEAVOR GROUP HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
|
|
|
Delaware
|
83-3340169
|
|
(State or other jurisdiction of incorporation or
organization)
|
(I.R.S. Employer
Identification No.)
|
9601 Wilshire Boulevard,
3rd
Floor
Beverly Hills,
CA
90210
(Address of principal executive offices) (Zip Code)
(310)
285-9000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed
since last report)
Securities registered pursuant to Section 12(b) of the
Act:
|
|
|
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
Class A Common Stock, par value $0.00001 per
share
|
EDR
|
The New York Stock Exchange
|
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days.
Yes
☒ No ☐
Indicate by check mark whether the registrant has submitted
electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter)
during the preceding 12 months (or for such shorter period that the
registrant was required to submit such files).
Yes
☒ No ☐
Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, a
smaller reporting company, or an emerging growth company. See the
definitions of "large accelerated filer," "accelerated filer,"
"smaller reporting company," and "emerging growth company" in Rule
12b-2 of the Exchange Act.
|
|
|
|
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
|
Non-accelerated filer
|
☒
|
Smaller reporting company
|
☐
|
|
|
|
Emerging growth company
|
☐
|
If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
☒
As of May 9, 2022, there were
284,019,250
shares of the registrant’s Class A common stock outstanding,
185,433,757
shares of the registrant’s Class X common stock outstanding
and
235,299,672
shares of the registrant’s Class Y common stock
outstanding.
Table of Contents
TABLE OF
CONTENTS
Table of Contents
FORWARD
LOOKING STATEMENTS
This Quarterly Report on Form 10-Q (the "Quarterly Report")
contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. We intend such
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in Section 27A
of the Securities Act of 1933, as amended (the "Securities Act")
and Section 21E of the Securities Exchange Act of 1934, as amended
(the "Exchange Act"). All statements other than statements of
present and historical facts contained in this Quarterly Report,
including without limitation, statements regarding our
expectations, beliefs, plans, strategies, objectives, prospects,
assumptions, future events or expected performance, are
forward-looking statements.
Without limiting the foregoing, you can generally identify
forward-looking statements by the use of forward-looking
terminology, including the terms "aim," "anticipate," "believe,"
"could," "mission," "may," "will," "should," "believe," "expect,"
"anticipate," "intend," "plan," "estimate," "project," "target,"
"predict," "potential," "contemplate," or, in each case, their
negative, or other variations or comparable terminology and
expressions. The forward-looking statements in this Quarterly
Report are only predictions and are based on our current
expectations and projections about future events and financial
trends that we believe may affect our business, financial
condition, and results of operations. These forward-looking
statements speak only as of the date of this Quarterly Report and
are subject to a number of known and unknown risks, uncertainties
and assumptions, including, but not limited to:
•
changes in public and consumer tastes and preferences and industry
trends;
•
impacts from changes in discretionary and corporate spending on
entertainment and sports events due to factors beyond our control,
such as adverse economic conditions, on our
operations;
•
the impact of the global pandemic related to COVID-19 and its
variants on our business, financial condition, liquidity and
results of operations;
•
our ability to adapt to or manage new content distribution
platforms or changes in consumer behavior resulting from new
technologies;
•
our reliance on our professional reputation and brand
name;
•
our dependence on the relationships of our management, agents, and
other key personnel with clients across many content
categories;
•
our ability to identify, recruit, and retain qualified and
experienced agents and managers;
•
our ability to identify, sign, and retain clients;
•
our ability to avoid or manage conflicts of interest arising from
our client and business relationships;
•
the loss or diminished performance of members of our executive
management and other key employees;
•
our dependence on key relationships with television and cable
networks, satellite providers, digital streaming partners,
corporate sponsors, and other distribution partners;
•
our ability to effectively manage the integration of and recognize
economic benefits from businesses acquired, our operations at our
current size, and any future growth;
•
the conduct of our operations through joint ventures and other
investments with third parties;
•
immigration restrictions and related factors;
•
failure in technology, including at live events, or security
breaches of our information systems;
•
the unauthorized disclosure of sensitive or confidential client or
customer information;
•
our substantial indebtedness;
•
our ability to protect our trademarks and other intellectual
property rights, including our brand image and reputation, and the
possibility that others may allege that we infringe upon their
intellectual property rights;
•
the risks associated with the legislative, judicial, accounting,
regulatory, political and economic risks and conditions specific to
both domestic and international markets;
•
fluctuations in foreign currency exchange rates;
•
litigation and other proceedings to the extent uninsured or
underinsured;
•
our ability to comply with the U.S. and foreign governmental
regulations to which we are subject;
•
our compliance with certain franchise and licensing requirements of
unions and guilds and dependence on unionized labor;
•
our control by Messrs. Emanuel and Whitesell, the Executive
Holdcos, and the Silver Lake Equityholders;
•
risk related to our organization and structure;
•
risks related to tax matters;
•
risks related to our Class A common stock; and
•
other important factors that could cause actual results,
performance or achievements to differ materially from those
described in Part I, Item 1A. "Risk Factors" and Part II, Item 7.
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" of our Annual Report on Form 10-K for the
fiscal year ended December 31, 2021 ("2021 Annual Report"), and
Part I,
1
Table of Contents
Item 2. "Management’s Discussion and Analysis of Financial
Condition and Results of Operations" in this Quarterly Report and
in our subsequent filings with the Securities and Exchange
Commission.
These risks could cause actual results to differ materially from
those implied by forward-looking statements in this Quarterly
Report. Moreover, we operate in an evolving environment. New risk
factors and uncertainties may emerge from time to time, and it is
not possible for management to predict all risk factors and
uncertainties. Even if our results of operations, financial
condition and liquidity and the development of the industry in
which we operate are consistent with the forward-looking statements
contained in this Quarterly Report, those results or developments
may not be indicative of results or developments in subsequent
periods.
You should read this Quarterly Report and the documents that we
reference herein completely and with the understanding that our
actual future results may be materially different from what we
expect. We qualify all of our forward-looking statements by these
cautionary statements. Except as required by applicable law, we
have no obligation to update or revise any forward-looking
statements contained herein, whether as a result of any new
information, future events, changed circumstances or
otherwise.
DEFINITIONS
As used in this Quarterly Report, unless we state otherwise or the
context otherwise requires:
•
"we," "us," "our," "Endeavor," the "Company," and similar
references refer (a) after giving effect to the reorganization
transactions, to Endeavor Group Holdings and its consolidated
subsidiaries, and (b) prior to giving effect to the reorganization
transactions, to Endeavor Operating Company and its consolidated
subsidiaries.
•
"Endeavor Full Catch-Up Profits Units" refer to the Endeavor
Profits Units that are designated as "catchup" units. Endeavor Full
Catch-Up Profits Units have a per unit hurdle price and are
entitled to receive a preference on distributions once the hurdle
price applicable to such unit has been met. Upon our achievement of
a price per share that would have fully satisfied such preference
on distributions, the Endeavor Full Catch-Up Profits Units were
converted into Endeavor Operating Company Units.
•
"Endeavor Group Holdings" refers to Endeavor Group Holdings, Inc.
("EGH").
•
"Endeavor Manager" refers to Endeavor Manager, LLC, a Delaware
limited liability company and a direct subsidiary of Endeavor Group
Holdings following the reorganization transactions.
•
"Endeavor Manager Units" refers to the common interest units in
Endeavor Manager.
•
"Endeavor Operating Company" refers to Endeavor Operating Company,
LLC, a Delaware limited liability company and a direct subsidiary
of Endeavor Manager’s and indirect subsidiary of ours following the
reorganization transactions ("EOC").
•
"Endeavor Operating Company Units" refers to all of the existing
equity interests in Endeavor Operating Company (other than the
Endeavor Profits Units) that were reclassified into Endeavor
Operating Company’s non-voting common interest units upon the
consummation of the reorganization transactions.
•
"Endeavor Profits Units" refers to the profits units of Endeavor
Operating Company and that are economically similar to stock
options (other than with respect to Endeavor Full Catch-up Profits
Units which, upon our achievement of a price per share that would
have fully satisfied their preference on distributions, were
converted into Endeavor Operating Company Units). Each Endeavor
Profits Unit (other than Endeavor Full Catch-Up Profits Units) has
a per unit hurdle price, which is economically similar to the
exercise price of a stock option.
•
"Endeavor Full Catch-Up Profits Units" refer to the Endeavor
Profits Units that are designated as "catchup" units. Endeavor Full
Catch- Up Profits Units have a per unit hurdle price and are
entitled to receive a preference on distributions once the hurdle
price applicable to such unit has been met. Upon our achievement of
a price per share that would have fully satisfied such preference
on distributions, the Endeavor Full Catch-Up Profits Units were
converted into Endeavor Operating Company Units.
•
"Executive Holdcos" refers to Endeavor Executive Holdco, LLC,
Endeavor Executive PIU Holdco, LLC, and Endeavor Executive II
Holdco, LLC, each a management holding company, the equity owners
of which include current and former senior officers, employees, or
other service providers of Endeavor Operating Company, and which
are controlled by Messrs. Emanuel and Whitesell.
•
"Other UFC Holders" refers to the other persons that held equity
interests in UFC Parent prior to the IPO and certain of their
affiliates.
•
"reorganization transactions" refers to the internal reorganization
completed in connection with our May 2021 initial public offering,
following which Endeavor Group Holdings manages and operates the
business and control the strategic decisions and day-to-day
operations of Endeavor Operating Company through Endeavor Manager
and includes the operations of Endeavor Operating Company in its
consolidated financial statements.
•
"Silver Lake Equityholders" refers to certain affiliates of Silver
Lake that are our stockholders.
•
"UFC LLC Agreement" refers to the limited liability company
agreement which governs the management of UFC Parent and the rights
of UFC's Parent's equityholders.
•
"UFC Parent" refers to Zuffa Parent LLC, which owns and operations
the Ultimate Fighting Championship ("UFC"), the professional mixed
martial arts ("MMA") organization.
2
Table of Contents
Item 1. Financial
Statements (Unaudited)
PART I – FINANCIAL INFORMATION
ENDEAVOR GROUP HOLDINGS, INC.
CONSOLIDATED BALANCE
SHEETS
(In thousands, except share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
2,030,255
|
|
|
$
|
1,560,995
|
|
|
Restricted cash
|
|
|
259,334
|
|
|
|
232,041
|
|
|
Accounts receivable (net of allowance for doubtful accounts of
$61,731 and
$57,102,
respectively)
|
|
|
760,518
|
|
|
|
615,010
|
|
|
Deferred costs
|
|
|
165,545
|
|
|
|
255,371
|
|
|
Assets held for sale
|
|
|
—
|
|
|
|
885,633
|
|
|
Other current assets
|
|
|
200,541
|
|
|
|
204,697
|
|
|
Total current assets
|
|
|
3,416,193
|
|
|
|
3,753,747
|
|
|
Property and equipment, net
|
|
|
630,035
|
|
|
|
629,807
|
|
|
Operating lease right-of-use assets
|
|
|
361,512
|
|
|
|
373,652
|
|
|
Intangible assets, net
|
|
|
1,601,477
|
|
|
|
1,611,684
|
|
|
Goodwill
|
|
|
4,530,728
|
|
|
|
4,506,554
|
|
|
Investments
|
|
|
492,721
|
|
|
|
298,212
|
|
|
Other assets
|
|
|
326,721
|
|
|
|
260,861
|
|
|
Total assets
|
|
$
|
11,359,387
|
|
|
$
|
11,434,517
|
|
|
LIABILITIES, REDEEMABLE INTERESTS AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
527,406
|
|
|
$
|
558,863
|
|
|
Accrued liabilities
|
|
|
460,428
|
|
|
|
524,061
|
|
|
Current portion of long-term debt
|
|
|
82,649
|
|
|
|
82,022
|
|
|
Current portion of operating lease liabilities
|
|
|
59,910
|
|
|
|
59,743
|
|
|
Deferred revenue
|
|
|
496,577
|
|
|
|
651,760
|
|
|
Deposits received on behalf of clients
|
|
|
242,411
|
|
|
|
216,632
|
|
|
Liabilities held for sale
|
|
|
—
|
|
|
|
507,303
|
|
|
Other current liabilities
|
|
|
129,413
|
|
|
|
105,053
|
|
|
Total current liabilities
|
|
|
1,998,794
|
|
|
|
2,705,437
|
|
|
Long-term debt
|
|
|
5,621,429
|
|
|
|
5,631,714
|
|
|
Long-term operating lease liabilities
|
|
|
351,695
|
|
|
|
363,568
|
|
|
Other long-term liabilities
|
|
|
421,011
|
|
|
|
402,472
|
|
|
Total liabilities
|
|
|
8,392,929
|
|
|
|
9,103,191
|
|
|
Commitments and contingencies (Note
16)
|
|
|
|
|
|
|
|
Redeemable non-controlling interests
|
|
|
242,534
|
|
|
|
209,863
|
|
|
Shareholders' Equity:
|
|
|
|
|
|
|
|
Class A common stock, $0.00001 par
value;
5,000,000,000 shares
authorized;
275,698,529 and
265,553,327 shares
issued and outstanding as of March 31, 2022
and December 31, 2021, respectively
|
|
|
2
|
|
|
|
2
|
|
|
Class B common stock, $0.00001 par
value;
5,000,000,000 shares
authorized;
none issued
and outstanding as of March 31, 2022 and December 31,
2021
|
|
|
—
|
|
|
|
—
|
|
|
Class C common stock, $0.00001 par
value;
5,000,000,000 shares
authorized;
none issued
and outstanding as of March 31, 2022 and December 31,
2021
|
|
|
—
|
|
|
|
—
|
|
|
Class X common stock, $0.00001 par
value;
5,000,000,000 shares
authorized;
176,967,757 and
186,222,061 shares
issued and outstanding as of March 31, 2022
and December 31, 2021, respectively
|
|
|
1
|
|
|
|
1
|
|
|
Class Y common stock, $0.00001 par
value;
1,000,000,000 shares
authorized;
235,415,621 and
238,154,296 shares
issued and outstanding as of March 31, 2022
and December 31, 2021, respectively
|
|
|
2
|
|
|
|
2
|
|
|
Additional paid-in capital
|
|
|
1,696,851
|
|
|
|
1,624,201
|
|
|
Retained earnings (accumulated deficit)
|
|
|
22,921
|
|
|
|
(296,625
|
)
|
|
Accumulated other comprehensive loss
|
|
|
(49,428
|
)
|
|
|
(80,535
|
)
|
|
Total Endeavor Group Holdings, Inc. shareholders' equity
|
|
|
1,670,349
|
|
|
|
1,247,046
|
|
|
Nonredeemable non-controlling interests
|
|
|
1,053,575
|
|
|
|
874,417
|
|
|
Total shareholders' equity
|
|
|
2,723,924
|
|
|
|
2,121,463
|
|
|
Total liabilities, redeemable interests and shareholders'
equity
|
|
$
|
11,359,387
|
|
|
$
|
11,434,517
|
|
See accompanying notes to consolidated financial
statements
3
Table of Contents
ENDEAVOR GROUP HOLDINGS, INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
Revenue
|
|
$
|
1,473,763
|
|
|
$
|
1,069,582
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
Direct operating costs
|
|
|
694,641
|
|
|
|
546,392
|
|
|
Selling, general and administrative expenses
|
|
|
540,206
|
|
|
|
381,113
|
|
|
Insurance recoveries
|
|
|
(993
|
)
|
|
|
(19,657
|
)
|
|
Depreciation and amortization
|
|
|
65,994
|
|
|
|
67,236
|
|
|
Total operating expenses
|
|
|
1,299,848
|
|
|
|
975,084
|
|
|
Operating income
|
|
|
173,915
|
|
|
|
94,498
|
|
|
Other (expense) income:
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
(59,272
|
)
|
|
|
(68,351
|
)
|
|
Tax receivable agreements liability adjustment
|
|
|
(53,497
|
)
|
|
|
—
|
|
|
Other income (expense), net
|
|
|
459,941
|
|
|
|
(3,215
|
)
|
|
Income before income taxes and equity losses of
affiliates
|
|
|
521,087
|
|
|
|
22,932
|
|
|
(Benefit from) provision for income taxes
|
|
|
(17,234
|
)
|
|
|
5,085
|
|
|
Income before equity losses of affiliates
|
|
|
538,321
|
|
|
|
17,847
|
|
|
Equity losses of affiliates, net of tax
|
|
|
(20,655
|
)
|
|
|
(15,471
|
)
|
|
Net income
|
|
|
517,666
|
|
|
|
2,376
|
|
|
Less: Net income attributable to non-controlling
interests
|
|
|
198,120
|
|
|
|
27,246
|
|
|
Less: Net loss attributable to Endeavor Operating Company, LLC
prior to the reorganization transactions
|
|
|
—
|
|
|
|
(24,870
|
)
|
|
Net income attributable to Endeavor Group Holdings, Inc.
|
|
$
|
319,546
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share of Class A common stock:
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.19
|
|
|
N/A
|
|
|
Diluted
|
|
$
|
1.16
|
|
|
N/A
|
|
|
Weighted average number of shares used in computing earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
|
|
268,489,176
|
|
|
N/A
|
|
|
Diluted
|
|
|
443,038,617
|
|
|
N/A
|
|
See accompanying notes to consolidated financial
statements
4
Table of Contents
ENDEAVOR GROUP HOLDINGS, INC.
CONSOLIDATED STATEMENTS
OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
Net income
|
|
$
|
517,666
|
|
|
$
|
2,376
|
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
Change in unrealized gains/losses on cash flow hedges:
|
|
|
|
|
|
|
|
Unrealized gains (losses) on forward foreign exchange
contracts
|
|
|
184
|
|
|
|
(1,358
|
)
|
|
Reclassification of gains to net income for forward foreign
exchange contracts
|
|
|
(786
|
)
|
|
|
—
|
|
|
Unrealized gains on interest rate swaps
|
|
|
48,194
|
|
|
|
15,076
|
|
|
Reclassification of losses to net income for interest rate
swaps
|
|
|
7,333
|
|
|
|
7,384
|
|
|
Foreign currency translation adjustments
|
|
|
(648
|
)
|
|
|
(4,550
|
)
|
|
Reclassification of foreign currency translation gains to net
income for business divestiture
|
|
|
(127
|
)
|
|
|
—
|
|
|
Total comprehensive income, net of tax
|
|
|
571,816
|
|
|
|
18,928
|
|
|
Less: Comprehensive income attributable to non-controlling
interests
|
|
|
218,615
|
|
|
|
27,246
|
|
|
Less: Net loss attributable to Endeavor Operating Company, LLC
prior to the reorganization transactions
|
|
|
—
|
|
|
|
(8,318
|
)
|
|
Comprehensive income attributable to Endeavor Group Holdings,
Inc.
|
|
$
|
353,201
|
|
|
$
|
—
|
|
See accompanying notes to consolidated financial
statements
5
Table of Contents
ENDEAVOR GROUP HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF REDEEMABLE INTERESTS AND SHAREHOLDERS’
EQUITY
(In thousands, except share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
Total Shareholders'
|
|
|
|
|
|
|
|
|
|
|
Redeemable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
|
Retained Earnings
|
|
|
Other
|
|
|
Equity Attributable
|
|
|
Nonredeemable
|
|
|
Total
|
|
|
|
|
Non-controlling
|
|
Class A Common Stock
|
|
|
Class X Common Stock
|
|
|
Class Y Common Stock
|
|
|
Paid-In
|
|
|
(Accumulated
|
|
|
Comprehensive
|
|
|
to Endeavor Group
|
|
|
Non-controlling
|
|
|
Shareholders'
|
|
|
|
|
Interests
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
|
Capital
|
|
|
Deficit)
|
|
|
Loss
|
|
|
Holdings, Inc.
|
|
|
Interests
|
|
|
Equity
|
|
|
Balance at January 1, 2022
|
|
$
|
209,863
|
|
|
265,553,327
|
|
|
$
|
2
|
|
|
|
186,222,061
|
|
|
$
|
1
|
|
|
|
238,154,296
|
|
|
$
|
2
|
|
|
$
|
1,624,201
|
|
|
$
|
(296,625
|
)
|
|
$
|
(80,535
|
)
|
|
$
|
1,247,046
|
|
|
$
|
874,417
|
|
|
$
|
2,121,463
|
|
|
Comprehensive income
|
|
|
4,236
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
319,546
|
|
|
|
33,655
|
|
|
|
353,201
|
|
|
|
214,379
|
|
|
|
567,580
|
|
|
Equity-based compensation
|
|
|
1,127
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
45,522
|
|
|
|
-
|
|
|
|
-
|
|
|
|
45,522
|
|
|
|
3,353
|
|
|
|
48,875
|
|
|
Issuance of Class A common stock due to exchanges
|
|
|
-
|
|
|
9,233,445
|
|
|
|
-
|
|
|
|
(9,254,304
|
)
|
|
|
-
|
|
|
|
(2,738,675
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Issuance of Class A common stock due to releases of RSUs
|
|
|
-
|
|
|
911,757
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Distributions
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(351
|
)
|
|
|
(351
|
)
|
|
Accretion of redeemable non- controlling interests
|
|
|
27,308
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(27,308
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(27,308
|
)
|
|
|
-
|
|
|
|
(27,308
|
)
|
|
Acquisition of non-controlling interests
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,346
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,346
|
|
|
|
3,754
|
|
|
|
5,100
|
|
|
Non-controlling interests for sale of businesses
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,884
|
|
|
|
7,884
|
|
|
Equity reallocation between controlling and non-controlling
interests
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
52,409
|
|
|
|
-
|
|
|
|
(2,548
|
)
|
|
|
49,861
|
|
|
|
(49,861
|
)
|
|
|
-
|
|
|
Tax receivable agreements in connection with exchanges
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
681
|
|
|
|
-
|
|
|
|
-
|
|
|
|
681
|
|
|
|
-
|
|
|
|
681
|
|
|
Balance at March 31, 2022
|
|
$
|
242,534
|
|
|
275,698,529
|
|
|
$
|
2
|
|
|
|
176,967,757
|
|
|
$
|
1
|
|
|
|
235,415,621
|
|
|
$
|
2
|
|
|
$
|
1,696,851
|
|
|
$
|
22,921
|
|
|
$
|
(49,428
|
)
|
|
$
|
1,670,349
|
|
|
$
|
1,053,575
|
|
|
$
|
2,723,924
|
|
See accompanying notes to consolidated financial
statements
6
Table of Contents
ENDEAVOR GROUP HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF REDEEMABLE INTERESTS
AND MEMBERS' EQUITY
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2021
|
|
|
|
|
Redeemable Non-controlling Interests
|
|
|
Redeemable Equity
|
|
|
|
Members' Capital
|
|
|
Accumulated Other Comprehensive (Loss) Income
|
|
|
Total Endeavor Operating Company, LLC Members' Equity
|
|
|
Nonredeemable Non-controlling Interests
|
|
|
Total Members' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2021
|
|
$
|
168,254
|
|
|
$
|
22,519
|
|
|
|
$
|
468,633
|
|
|
$
|
(190,786
|
)
|
|
$
|
277,847
|
|
|
$
|
686,129
|
|
|
$
|
963,976
|
|
|
Comprehensive (loss) income
|
|
|
(2,098
|
)
|
|
|
—
|
|
|
|
|
(24,870
|
)
|
|
|
16,552
|
|
|
|
(8,318
|
)
|
|
|
29,344
|
|
|
|
21,026
|
|
|
Equity-based compensation expense
|
|
|
—
|
|
|
|
—
|
|
|
|
|
3,444
|
|
|
|
—
|
|
|
|
3,444
|
|
|
|
6,006
|
|
|
|
9,450
|
|
|
Distributions
|
|
|
—
|
|
|
|
—
|
|
|
|
|
(718
|
)
|
|
|
—
|
|
|
|
(718
|
)
|
|
|
(8,124
|
)
|
|
|
(8,842
|
)
|
|
Accretion of redeemable non-controlling interests
|
|
|
(271
|
)
|
|
|
—
|
|
|
|
|
271
|
|
|
|
—
|
|
|
|
271
|
|
|
|
—
|
|
|
|
271
|
|
|
Establishment of non-controlling interests
|
|
|
2,888
|
|
|
|
—
|
|
|
|
|
560
|
|
|
|
—
|
|
|
|
560
|
|
|
|
(3,448
|
)
|
|
|
(2,888
|
)
|
|
Balance at March 31, 2021
|
|
$
|
168,773
|
|
|
$
|
22,519
|
|
|
|
$
|
447,320
|
|
|
$
|
(174,234
|
)
|
|
$
|
273,086
|
|
|
$
|
709,907
|
|
|
$
|
982,993
|
|
See accompanying notes to consolidated financial
statements
7
Table of Contents
ENDEAVOR GROUP HOLDINGS, INC.
CONSOLIDATED STATEMENTS
OF CASH FLOWS
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
517,666
|
|
|
$
|
2,376
|
|
|
Adjustments to reconcile net income to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
65,994
|
|
|
|
67,236
|
|
|
Amortization and write-off of original issue discount and deferred
financing cost
|
|
|
5,099
|
|
|
|
7,139
|
|
|
Amortization of content costs
|
|
|
9,848
|
|
|
|
10,730
|
|
|
Loss (gain) on sale/disposal and impairment of assets
|
|
|
1,108
|
|
|
|
(2,539
|
)
|
|
Gain on business divestiture
|
|
|
(478,641
|
)
|
|
|
—
|
|
|
Equity-based compensation expense
|
|
|
50,856
|
|
|
|
16,491
|
|
|
Change in fair value of contingent liabilities
|
|
|
790
|
|
|
|
4,572
|
|
|
Change in fair value of equity investments with and without readily
determinable fair value
|
|
|
(1,851
|
)
|
|
|
(5,205
|
)
|
|
Change in fair value of financial instruments
|
|
|
6,915
|
|
|
|
16,482
|
|
|
Equity losses of affiliates
|
|
|
20,655
|
|
|
|
15,471
|
|
|
Net provision for (benefit from) allowance for doubtful
accounts
|
|
|
5,128
|
|
|
|
(352
|
)
|
|
Net loss (gain) on foreign currency transactions
|
|
|
8,487
|
|