Maintains Solid Performance in Challenging
Environment
Third Quarter 2020
Highlights*
* (All comparisons are versus the prior year period unless
stated otherwise)
- Revenue was $221.6 million, an increase of 19% or $35.3
million
- Operating income was $63.4 million, an increase of nearly 9x or
$57.0 million
- Adjusted OIBDA1 was $84.3 million, an increase of more than 2x
or $58.9 million
- WWE ThunderDome debuted at the Amway Center in Orlando,
Florida. It provides an interactive virtual experience for WWE fans
and recreates the in-arena atmosphere (WWE has not performed an
event with ticketed fans since mid-March 2020)
- WWE Network average paid subscribers2 were 1.6 million, an
increase of 6%
- Digital video views were 9.2 billion, an increase of 3%, and
hours consumed were 342 million, an increase of 3%, across digital
and social media platforms3
- eCommerce revenue was $9.1 million, an increase of 60%,
offsetting the loss of venue merchandise sales due to 74 fewer
events in the quarter
Business Outlook
- The Company continues to adapt its business to the changing
environment with investment to enhance content production value and
further fan engagement, including an incremental $22 - $27 million
investment in the fourth quarter (4Q20 vs. 3Q20), primarily
associated with the creation of WWE ThunderDome, and increased
personnel expenses as employees return from furlough
- Management previously withdrew full year 2020 guidance. Based
on sustained uncertainties related to the potential impact of
COVID-19 on its business, WWE is not reinstating guidance at this
time4
- Management continues to believe WWE has significant long-term
opportunities and is well positioned to deliver on its strategic
initiatives (See COVID-19 Actions and Business Outlook on page
4)
WWE (NYSE: WWE) today announced financial results for its third
quarter ended September 30, 2020.
“Our third quarter financial performance was strong and
reflected our ongoing creativity in a challenging environment,”
said Vince McMahon, WWE Chairman & CEO. “We continue to adapt
our business, as demonstrated by the creation of WWE ThunderDome,
focusing on increasing audience interaction and engagement to
support the value of our content globally.”
Kristina Salen, WWE Chief Financial Officer, added “In the
quarter, we delivered revenue of $221.6 million and Adjusted OIBDA
of $84.3 million based on increased rights fees for the Company’s
flagship programming. With $638 million in cash and short-term
investments at quarter-end, we believe WWE has substantial capital
resources to manage challenges that may lie ahead and to deliver on
key strategic initiatives.”
Third-Quarter Consolidated
Results*
* (All comparisons are versus the prior year period unless
stated otherwise)
Revenue was $221.6 million, an increase of 19% or $35.3
million, primarily driven by the growth of core content rights fees
in the Media segment. This revenue increase was partially offset by
the loss of ticket and merchandise sales that resulted from the
continued cancellation, postponement and relocation of live events
due to public health concerns related to the COVID-19 outbreak that
began in mid-March 2020.
Operating Income was $63.4 million, an increase of nearly
9x or $57.0 million, primarily due to increased revenue from the
growth of core content rights fees as well as a decline in
event-related production expenses, and short-term cost reductions
implemented as a result of COVID-19. The increase in operating
income was partially offset by $5.5 million in severance expense
resulting from a reduction in force due to COVID-19. The Company’s
Operating income margin increased to 28.6%.
Adjusted OIBDA (which excludes stock compensation) was
$84.3 million, an increase of more than 2x or $58.9 million.
Adjusted OIBDA excludes $5.5 million in severance expense
(described above). The Company’s Adjusted OIBDA margin increased to
38.0%.
Income Tax Provision was $13.0 million, an increase of
$20.1 million. The increase was driven by stronger operating
performance coupled with an $8.2 million decrease in tax benefits
associated with the vesting of share-based compensation. The
effective tax rate in the quarter was 21%.
Net Income was $48.2 million, or $0.57 per diluted share,
an increase from $5.8 million, or $0.06 per diluted share, in the
third quarter 2019, primarily reflecting stronger operating
performance partially offset by the impact of the decrease in tax
benefits as discussed above. Current period results also reflected
after-tax unrealized gains of $5.2 million primarily related to the
value of the Company’s DraftKings investment, partially offset by
$4.3 million in after-tax severance expense (described above).
Excluding these items, Adjusted Net Income5 was $47.3 million, or
$0.56 per diluted share.
Cash flows generated by operating activities were $116.8
million, an increase from $3.2 million, driven by improved working
capital, which reflects the timing of collections associated with
our large-scale international events, and stronger operating
performance.
Free Cash Flow was $110.8 million, an increase from a
$16.4 million use of cash, primarily due to the change in operating
cash flow and, to a lesser extent, a reduction in capital
expenditures.6
Cash, cash equivalents and short-term investments were
$638 million as of September 30, 2020, which includes $200 million
the Company borrowed under its revolving line of credit during the
second quarter 2020.
Return of Capital to
Shareholders
The Company paid $9.3 million in dividends to shareholders
during the third quarter. There were no share repurchases under the
Company’s existing share repurchase program.
Basis of Presentation
For the third quarter of 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.
For the nine month period ended September 30, 2020, the Company’s
consolidated pre-tax results included $13.1 million of incremental
costs related to the finance lease for the Company’s new
headquarters, $5.5 million in severance expense, and a net gain of
$2.9 million related to certain equity investments, which included
unrealized holding 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. As the underlying market value
of our marketable equity investments fluctuate, WWE is exposed to
future earnings volatility to the extent WWE continues to hold
these investments. A reconciliation of Net Income to Adjusted Net
Income for the three and nine month ended September 30, 2020 and
2019 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 $201.0 million, an increase of 38% or $54.9
million, primarily driven by the growth of domestic core content
rights fees for the Company’s flagship programs Raw and SmackDown
and, to a lesser extent, the growth in WWE Network subscription
revenue as well as increased sales of advertising and sponsorship
across platforms. These factors were partially offset by the
unfavorable timing of episodic series for programs, such as Total
Divas and Miz & Mrs., as well as the timing and performance of
WWE Studios’ portfolio of releases, as reflected in “Other.”
WWE Network’s average paid subscribers were 1.6 million, an
increase of 6%, marking the first quarterly increase since the
first quarter 2019.
Operating income was $94.5 million, an increase of nearly
2x or $61.5 million, primarily due to the growth in revenue and, to
a lesser extent, a reduction in operating expenses.
Adjusted OIBDA was $101.7 million, representing an
increase of nearly 1.5x or $60.2 million.
Live Events
Revenue was $0.7 million, a decrease of 97% or $22.5
million, resulting from the absence of live events and a
corresponding decline in ticket sales in North American and
international markets. (The third quarter 2019 had 67 events in
North America and 7 events in international markets.)
Operating income reflected a loss of $4.4 million, a
decrease of 26% or $0.9 million, as the decline in North America
and international ticket sales (as described above) was partially
offset by a reduction in event-related expenses.
Adjusted OIBDA reflected a loss of $4.1 million,
representing a decrease of 41% or $1.2 million.
Consumer Products
Revenue was $19.9 million, an increase of 17% or $2.9
million, reflecting increased merchandise sales at the Company’s
eCommerce site, WWE Shop, and higher video game and toy royalties.
Increased sales at the Company’s eCommerce site substantially
offset the absence of venue merchandise sales resulting from the
absence of ticketed-audience events in the quarter (as described
above).
Operating income was $5.4 million, an increase of 59% or
$2.0 million, reflecting the growth in revenue driven by higher
royalties and increased sales at the Company’s eCommerce site,
which more than offset the decrease of venue-based merchandise
sales resulting from the absence of events.
Adjusted OIBDA was $5.6 million, representing an increase
of 40% or $1.6 million.
COVID-19 Actions and Business
Outlook4
The spread of COVID-19 and related government mandates have
impacted WWE’s business as the Company has been directed to cancel,
postpone or relocate its live events beginning in mid-March 2020.
The Company continues to adapt its business to the changing
environment with investment to enhance content production value and
further fan engagement. Management anticipates $40 - $45 million in
incremental fourth quarter expenses (4Q20 vs. 3Q20) due to $18
million in production incentives (recognized in the third quarter)
and due to $22 - $27 million in ongoing incremental production
expenses associated with the creation of the WWE Thunderdome and
incremental personnel expenses associated with employees returning
from furlough, both of which are expected to continue in the coming
year. Management is currently developing its 2021 annual operating
and strategic plans, and it remains challenging to quantify the
potential impact of COVID-19 on its business, and the financial
impact to the Company may be material. Accordingly, management
previously withdrew its full year 2020 guidance and based on
sustained economic uncertainties is not reinstating guidance at
this time.
Management continues to believe that WWE has significant
long-term opportunities and is well positioned to deliver on its
strategic initiatives.
Notes
(1) The definition of Adjusted OIBDA can be found in the
Non-GAAP Measures section of the release on pages 5-6. A
reconciliation of three and nine months ended September 30, 2020
and 2019 Operating Income to Adjusted OIBDA can be found in the
Supplemental Information in this release on page 14
(2) Average paid subscribers are calculated based on the
arithmetic daily mean over the relevant period, and may differ
substantially from paid subscribers at the end of any period due to
the timing of paid subscriber additions and losses
(3) Consumption includes videos viewed on third party (Facebook,
YouTube, Twitter, Instagram, Snapchat, TikTok, Twitch, etc.) and
WWE platforms (WWE.com and WWE App, including the Free Version of
WWE Network)
(4) The Company’s business model and expected results will
continue to be subject to significant execution and other risks,
including risks relating to the impact of the COVID-19 outbreak on
WWE’s business, results of operations and financial condition,
entering, maintaining and renewing major distribution agreements,
uncertainties associated with international markets and risks
inherent in large live events, and other risk factors previously
disclosed in our annual report on Form 10-K for the year ended
December 31, 2019 and supplemented in our Current Report on Form
8-K filed with the SEC on March 17, 2020 and further supplemented
in Part II, Item 1A, Risk Factors, in our quarterly report on Form
10-Q for the period ended June 30, 2020 filed with the SEC on July
30, 2020
(5) A reconciliation of three and nine months ended September
30, 2020 and 2019 Net Income to Adjusted Net Income can be found in
the Supplemental Information in this release on page 13
(6) A reconciliation of three and nine months ended September
30, 2020 and 2019 Free Cash Flow to Net cash provided by operating
activities can be found in the Supplemental Information in this
release on page 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
October 29th to discuss the Company's earnings results for the
third quarter of 2020. All interested parties are welcome to listen
to a live web cast that will be hosted through the Company’s
website at corporate.wwe.com/investors. Participants can
access the conference call by dialing 1-855-200-4993 (toll free) or
1-323-794-2092 from outside the U.S. (conference ID for both lines:
1180166). 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 October 29, 2020 at corporate.wwe.com/investors. A replay of the call
will be available approximately two hours after the conference call
concludes and can be accessed on the Company’s website.
About WWE
WWE, a publicly traded company (NYSE: WWE), is an integrated
media organization and recognized leader in global entertainment.
The Company consists of a portfolio of businesses that create and
deliver original content 52 weeks a year to a global audience. WWE
is committed to family friendly entertainment on its television
programming, pay-per-view, digital media and publishing platforms.
WWE’s TV-PG, family-friendly programming can be seen in more than
800 million homes worldwide in 28 languages. WWE Network, the
first-ever 24/7 over-the-top premium network that includes all live
pay-per-views, scheduled programming and a massive video-on-demand
library, is currently available in more than 180 countries. The
Company is headquartered in Stamford, Conn., with offices in New
York, Los Angeles, London, Mexico City, Mumbai, Shanghai,
Singapore, Dubai, Munich and Tokyo.
Additional information on WWE (NYSE: WWE) can be found at
wwe.com and corporate.wwe.com. For information on our global
activities, go to http://www.wwe.com/worldwide/.
Trademarks: All WWE programming,
talent names, images, likenesses, slogans, wrestling moves,
trademarks, logos and copyrights are the exclusive property of WWE
and its subsidiaries. All other trademarks, logos and copyrights
are the property of their respective owners.
Forward-Looking Statements: This
press release contains forward-looking statements pursuant to the
safe harbor provisions of the Securities Litigation Reform Act of
1995, which are subject to various risks and uncertainties. These
risks and uncertainties include, without limitation, risks relating
to: the impact of the COVID-19 outbreak on our business, results of
operations and financial condition; entering, maintaining and
renewing major distribution agreements; a rapidly evolving media
landscape; WWE Network (including the risk that we are unable to
attract, retain and renew subscribers); our need to continue to
develop creative and entertaining programs and events; the
possibility of a decline in the popularity of our brand of sports
entertainment; the continued importance of key performers and the
services of Vincent K. McMahon; possible adverse changes in the
regulatory atmosphere and related private sector initiatives; the
highly competitive, rapidly changing and increasingly fragmented
nature of the markets in which we operate and greater financial
resources or marketplace presence of many of our competitors;
uncertainties associated with international markets including
possible disruptions and reputational risks; our difficulty or
inability to promote and conduct our live events and/or other
businesses if we do not comply with applicable regulations; our
dependence on our intellectual property rights, our need to protect
those rights, and the risks of our infringement of others’
intellectual property rights; the complexity of our rights
agreements across distribution mechanisms and geographical areas;
potential substantial liability in the event of accidents or
injuries occurring during our physically demanding events including
without limitation, claims alleging traumatic brain injury; large
public events as well as travel to and from such events; our
feature film business; our expansion into new or complementary
businesses and/or strategic investments; our computer systems and
online operations; privacy norms and regulations; a possible
decline in general economic conditions and disruption in financial
markets; our accounts receivable; our indebtedness including our
convertible notes; litigation; our potential failure to meet market
expectations for our financial performance, which could adversely
affect our stock; Vincent K. McMahon exercises control over our
affairs, and his interests may conflict with the holders of our
Class A common stock; a substantial number of shares are eligible
for sale by the McMahons and the sale, or the perception of
possible sales, of those shares could lower our stock price; and
the volatility of our Class A common stock. In addition, our
dividend is dependent on a number of factors, including, among
other things, our liquidity and historical and projected cash flow,
strategic plan (including alternative uses of capital), our
financial results and condition, contractual and legal restrictions
on the payment of dividends (including under our revolving credit
facility), general economic and competitive conditions and such
other factors as our Board of Directors may consider relevant.
Forward-looking statements made by the Company speak only as of the
date made and are subject to change without any obligation on the
part of the Company to update or revise them. Undue reliance should
not be placed on these statements. For more information about risks
and uncertainties associated with the Company’s business, please
refer to the “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and “Risk Factors” sections of
the Company’s SEC filings, including, but not limited to, our
annual report on Form 10-K and quarterly reports on Form 10-Q.
World Wrestling Entertainment,
Inc.
Operating Segment
Performance
(In millions)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Net Revenue:
Media
$
201.0
$
146.1
$
657.7
$
478.5
Live Events
0.7
23.2
19.2
98.2
Consumer Products
19.9
17.0
59.1
60.9
Total Net Revenue
$
221.6
$
186.3
$
736.0
$
637.6
Operating Income (Loss):
Media
$
94.5
$
33.0
$
265.4
$
76.2
Live Events
(4.4)
(3.5)
(12.1)
8.7
Consumer Products
5.4
3.4
15.9
13.6
Corporate
(32.1)
(26.5)
(96.8)
(81.8)
Total Operating Income
$
63.4
$
6.4
$
172.4
$
16.7
Adjusted OIBDA:
Media
$
101.7
$
41.5
$
294.8
$
107.5
Live Events
(4.1)
(2.9)
(10.9)
11.2
Consumer Products
5.6
4.0
17.5
16.2
Corporate
(18.9)
(17.2)
(66.4)
(62.5)
Total Adjusted OIBDA
$
84.3
$
25.4
$
235.0
$
72.4
World Wrestling Entertainment,
Inc.
Operating Segment
Performance
(In millions)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Media Revenue:
Network (including pay-per-view)
$
47.8
$
44.2
$
140.7
$
143.0
Core content rights fees (1)
132.4
72.2
398.5
209.3
Advertising and sponsorship
18.1
15.0
48.8
44.8
Other (2)
2.7
14.7
69.7
81.4
Total Revenue
$
201.0
$
146.1
$
657.7
$
478.5
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Live Events Revenue:
North American ticket sales
$
—
$
18.3
$
15.2
$
76.0
International ticket sales
—
2.3
0.2
12.0
Advertising and sponsorship
—
0.5
0.4
1.7
Other (3)
0.7
2.1
3.4
8.5
Total Revenue
$
0.7
$
23.2
$
19.2
$
98.2
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Consumer Products Revenue:
Consumer product licensing
$
10.8
$
7.8
$
28.2
$
26.6
eCommerce
9.1
5.7
27.7
18.9
Venue merchandise
—
3.5
3.2
15.4
Total Revenue
$
19.9
$
17.0
$
59.1
$
60.9
(1) 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
(2) 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
(3) Other Live Events includes revenue from the sale of travel
packages associated with the Company’s global live events, and
commissions earned through secondary ticketing as well as revenue
from events for which the Company receives a fixed fee
World Wrestling Entertainment,
Inc.
Consolidated Income
Statements
(In millions, except per share
data)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Net revenues
$
221.6
$
186.3
$
736.0
$
637.6
Operating expenses
108.0
133.8
400.8
466.6
Marketing and selling expenses
14.5
16.4
54.7
64.4
General and administrative expenses
25.2
18.5
75.9
66.4
Depreciation and amortization
10.5
11.2
32.2
23.5
Operating income
63.4
6.4
172.4
16.7
Interest expense
9.2
7.9
26.5
18.2
Other income, net
7.0
0.2
5.1
2.8
Income (loss) before income taxes
61.2
(1.3)
151.0
1.3
Provision for (benefit from) income
taxes
13.0
(7.1)
32.8
(6.5)
Net income
$
48.2
$
5.8
$
118.2
$
7.8
Earnings per share:
Basic
$
0.62
$
0.07
$
1.53
$
0.10
Diluted
$
0.57
$
0.06
$
1.40
$
0.09
Weighted average common shares
outstanding:
Basic
77.7
78.5
77.5
78.2
Diluted
84.1
89.9
84.4
90.8
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,
2020
2019
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
519.5
$
90.4
Short-term investments, net
118.8
160.0
Accounts receivable, net
69.2
124.8
Inventory
8.2
8.3
Prepaid expenses and other current
assets
43.5
20.8
Total current assets
759.2
404.3
PROPERTY AND EQUIPMENT, NET
164.3
174.8
FINANCE LEASE RIGHT-OF-USE ASSETS, NET
315.0
289.9
OPERATING LEASE RIGHT-OF-USE ASSETS,
NET
14.3
20.8
CONTENT PRODUCTION ASSETS, NET
21.5
20.1
INVESTMENT SECURITIES
31.2
28.1
DEFERRED INCOME TAX ASSETS, NET
—
7.2
OTHER ASSETS, NET
48.8
47.0
TOTAL ASSETS
$
1,354.3
$
992.2
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt
$
200.4
$
3.6
Finance lease liabilities
9.2
7.9
Operating lease liabilities
4.1
6.6
Convertible debt
193.2
188.7
Accounts payable and accrued expenses
86.3
80.6
Deferred income
64.3
56.9
Total current liabilities
557.5
344.3
LONG-TERM DEBT
21.8
22.1
FINANCE LEASE LIABILITIES
378.8
335.5
OPERATING LEASE LIABILITIES
10.6
14.6
OTHER NON-CURRENT LIABILITIES
3.4
0.4
Total liabilities
972.1
716.9
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Class A common stock
0.5
0.5
Class B convertible common stock
0.3
0.3
Additional paid-in capital
422.4
405.4
Accumulated other comprehensive income
2.9
2.8
Accumulated deficit
(43.9)
(133.7)
Total stockholders’ equity
382.2
275.3
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
1,354.3
$
992.2
World Wrestling Entertainment,
Inc.
Consolidated Statements of
Cash Flows
(In millions)
(Unaudited)
Nine Months Ended
September 30,
2020
2019
OPERATING ACTIVITIES:
Net income
$
118.2
$
7.8
Adjustments to reconcile net income to net
cash provided by operating activities:
Amortization and impairments of content
production assets
14.9
27.6
Depreciation and amortization
36.4
27.8
Other amortization
13.6
10.3
(Gain) loss on equity investments, net
(2.9)
3.2
Stock-based compensation
24.9
32.2
Benefit from deferred income taxes
10.1
0.5
Other non-cash adjustments
15.5
4.7
Cash provided by (used in) changes in
operating assets and liabilities:
Accounts receivable
54.2
(64.2)
Inventory
(1.6)
(0.8)
Prepaid expenses and other assets
(21.8)
(8.8)
Content production assets
(19.5)
(26.6)
Accounts payable, accrued expenses and
other liabilities
8.0
(31.6)
Deferred income
7.5
20.2
Net cash provided by operating
activities
257.5
2.3
INVESTING ACTIVITIES:
Purchases of property and equipment and
other assets
(21.4)
(56.3)
Purchases of short-term investments
(64.3)
(74.9)
Proceeds from sales and maturities of
investments
105.4
113.3
Purchase of investment securities
(0.2)
(1.0)
Other
—
0.8
Net cash provided by (used in) investing
activities
19.5
(18.1)
FINANCING ACTIVITIES:
Repayment of debt
(3.5)
(3.8)
Repayment of finance leases
(8.2)
(6.2)
Dividends paid
(27.9)
(28.2)
Debt issuance costs
—
(0.7)
Proceeds from borrowings under Revolving
Credit Facility
200.0
—
Taxes paid related to net settlement upon
vesting of equity awards
(11.0)
(30.1)
Proceeds from issuance of stock
2.7
2.3
Repurchase and retirement of common
stock
—
(8.5)
Net cash provided by (used in) financing
activities
152.1
(75.2)
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
429.1
(91.0)
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD
90.4
167.5
CASH AND CASH EQUIVALENTS, END OF
PERIOD
$
519.5
$
76.5
NON-CASH INVESTING TRANSACTIONS:
Purchases of property and equipment
recorded in accounts payable and accrued expenses
$
2.7
$
7.2
World Wrestling Entertainment,
Inc.
Supplemental Information –
Reconciliation of Adjusted Net Income
(In millions, except per share
data)
(Unaudited)
Three Months Ended September
30,
2020
2019
As Reported
Gain on Investments
(1)
Other Adjustments (3)
Adjusted
As Reported
Adjusted
Operating income
$
63.4
$
—
$
5.5
$
68.9
$
6.4
$
6.4
Interest expense
9.2
—
—
9.2
7.9
7.9
Other income, net
7.0
(6.7)
—
0.3
0.2
0.2
Income before taxes
61.2
(6.7)
5.5
60.0
(1.3)
(1.3)
Provision for income taxes
13.0
(1.5)
1.2
12.7
(7.1)
(7.1)
Net income
$
48.2
$
(5.2)
$
4.3
$
47.3
$
5.8
$
5.8
Earnings per share - diluted
$
0.57
$
(0.06)
$
0.05
$
0.56
$
0.06
$
0.06
Nine Months Ended September
30,
2020
2019
As Reported
Gain on Investments
(2)
Other Adjustments (3)
Adjusted
As Reported
Adjusted
Operating income
$
172.4
$
—
$
5.5
$
177.9
$
16.7
$
16.7
Interest expense
26.5
—
—
26.5
18.2
18.2
Other income, net
5.1
(2.9)
—
2.2
2.8
2.8
Income before taxes
151.0
(2.9)
5.5
153.6
1.3
1.3
Provision for income taxes
32.8
(0.6)
1.2
33.4
(6.5)
(6.5)
Net income
$
118.2
$
(2.3)
$
4.3
$
120.2
$
7.8
$
7.8
Earnings per share - diluted
$
1.40
$
(0.03)
$
0.05
$
1.42
$
0.09
$
0.09
(1) During the three months ended September 30, 2020, the
Company recognized $6.7 million of unrealized holding gains
primarily related to the value of the Company’s DraftKings
investment. The Company did not recognize any material net gains or
losses related to its equity investments during the three months
ended September 30, 2019
(2) During the nine months ended September 30, 2020, the Company
recognized a net gain of $2.9 million related to certain equity
investments, which included unrealized holding 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 nine months ended September 30, 2019
(3) During the three and nine months 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 did not
record any such expense during the three and nine months ended
September 30, 2019
World Wrestling Entertainment,
Inc.
Supplemental Information –
Reconciliation of Adjusted OIBDA
(In millions, except per share
data)
(Unaudited)
Three Months Ended September
30, 2020
Operating Income
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
Three Months Ended September
30, 2019
Operating Income
Depreciation &
Amortization
Stock Compensation
Other Adjustments
Adjusted OIBDA
Media
$
33.0
$
3.2
$
5.3
$
—
$
41.5
Live Events
(3.5)
—
0.6
—
(2.9)
Consumer Products
3.4
—
0.6
—
4.0
Corporate
(26.5)
8.0
1.3
—
(17.2)
Total
$
6.4
$
11.2
$
7.8
$
—
$
25.4
Nine Months Ended September
30, 2020
Operating Income
Depreciation &
Amortization
Stock Compensation
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
Nine Months Ended September
30, 2019
Operating Income
Depreciation &
Amortization
Stock Compensation
Other Adjustments
Adjusted OIBDA
Media
$
76.2
$
8.1
$
23.2
$
—
$
107.5
Live Events
8.7
—
2.5
—
11.2
Consumer Products
13.6
—
2.6
—
16.2
Corporate
(81.8)
15.4
3.9
—
(62.5)
Total
$
16.7
$
23.5
$
32.2
$
—
$
72.4
(1) During the three and nine months 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 and nine months ended
September 30, 2019
World Wrestling Entertainment,
Inc.
Supplemental Information -
Free Cash Flow
(In millions)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Net cash provided by operating
activities
$
116.8
$
3.2
$
257.5
$
2.3
Less cash used for capital
expenditures:
Purchase of property and equipment and
other assets
(6.0)
(19.6)
(21.4)
(56.3)
Free Cash Flow
$
110.8
$
(16.4)
$
236.1
$
(54.0)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201029006030/en/
Investors: Michael Weitz
203-352-8642 Michael Guido, CFA 203-352-8779 Media: Matthew Altman 203-352-1177
World Wrestling Entertai... (NYSE:WWE)
Historical Stock Chart
From Mar 2024 to Apr 2024
World Wrestling Entertai... (NYSE:WWE)
Historical Stock Chart
From Apr 2023 to Apr 2024