18.02.2004, 15:29
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 821 $ 777
Accounts payable 15,771 14,188
Accrued expenses and other liabilities 41,232 34,991
Deferred income 20,496 24,662
Liabilities of discontinued operations 8,867 11,554
--------- ---------
Total current liabilities 87,187 86,172
LONG-TERM DEBT 8,506 9,126
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Class A common stock 136 182
Class B common stock 548 548
Treasury stock - (30,569)
Additional paid-in capital 248,143 297,315
Accumulated other comprehensive (loss)
income (30) 243
Retained earnings 94,674 74,240
--------- ---------
Total stockholders' equity 343,471 341,959
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 439,164 $ 437,257
========= =========
World Wrestling Entertainment, Inc.
Consolidated Statements of Cash Flows
(dollars in thousands)
(Unaudited)
Nine Months Ended
January 23, January 24,
2004 2003
-------------------------
OPERATING ACTIVITIES:
NET INCOME (LOSS) $ 28,652 $ (15,075)
Adjustments to reconcile net income (loss) to net
cash provided
by operating activities:
(Income) loss from discontinued operations, net
of tax (32) 25,178
Depreciation and amortization 8,538 6,731
Amortization of warrants (836) (952)
Stock compensation costs 469 -
Change in value of warrants (422) -
Recoveries, net of provision for doubtful
accounts (1,994) 1,353
Provision for inventory obsolescence 19 618
Changes in assets and liabilities:
Accounts receivable 12,675 10,806
Inventory (179) (314)
Prepaid expenses and other assets 1,628 (2,688)
Accounts payable 1,583 (4,562)
Accrued expenses and other liabilities 6,530 200
Deferred income (4,969) 2,732
-------- -----------
Net cash provided by continuing
operations 51,662 24,027
Net cash used in discontinued
operations (2,370) (7,842)
-------- -----------
Net cash provided by operating
activities 49,292 16,185
---------- ---------
INVESTING ACTIVITIES:
Purchase of property and equipment (3,485) (8,885)
Buyout of corporate aircraft lease (20,122) -
Purchase of other assets (1,641) -
(Purchase) sale of short-term investments, net (54,239) 93,124
-------- ---------
Net cash (used in) provided by
continuing operations (79,487) 84,239
Net cash used in discontinued
operations - (2,344)
-------- ---------
Net cash (used in) provided
by investing activities (79,487) 81,895
---------- ----------
FINANCING ACTIVITIES:
Repayment of long-term debt (576) (444)
Purchase of treasury stock (19,182) (29,477)
Dividends paid (8,218) -
Net proceeds from exercise of stock options 65 405
-------- ---------
Net cash used in continuing
operations (27,911) (29,516)
Net cash provided by discontinued
operations - 322
-------- ---------
Net cash used in financing
activities (27,911) (29,194)
-------- -----------
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS (58,106) 68,886
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 128,473 86,397
-------- ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 70,367 $ 155,283
========== =========
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the period for income taxes, net of
refunds 9,771 3,369
Cash paid during the period for interest 585 574
World Wrestling Entertainment, Inc.
Supplemental Information - EBITDA
(dollars in thousands)
(Unaudited)
Three Months Ended Nine Months Ended
January 23, January 24, January 23, January 24,
2004 2003 2004 2003
------------------------------------------------
Net income (loss)
reported on U.S. GAAP basis $ 8,852 $ (16,000) $ 28,652 $(15,075)
Loss (income) from discontinued
operations 76 21,988 (32) 25,178
Provision for income taxes 5,372 3,484 17,411 5,851
Interest and other, net (2,111) ( 668) (4,898) (680)
Depreciation and amortization 2,942 2,641 8,538 6,731
-------- --------- -------- ---------
EBITDA $ 15,131 $ 11,445 $ 49,671 $ 22,005
======== ========= ======== ============
Non-GAAP Measure:
We define EBITDA as earnings from continuing operations before interest and other, net, income taxes, depreciation and amortization. Although it is not a recognized measure of performance under U.S. GAAP, EBITDA is presented because it is a widely accepted financial indicator of a company's cash flow. The Company uses EBITDA to measure its own performance and to set goals for operating managers. EBITDA should not be considered as an alternative to income from continuing operations, net income, cash flows from operations or any other indicator of World Wrestling Entertainment Inc.'s performance or liquidity, determined in accordance with U.S. GAAP.
World Wrestling Entertainment, Inc.
Supplemental Information- Free Cash Flow
(dollars in thousands)
(Unaudited)
Three Months Ended Nine Months Ended
2004 2003 2004 2003
-------------------------------------------------
Net cash provided by continuing
operations $ 17,825 $ 12,738 $ 51,662 $ 24,027
Less cash used for capital
expenditures (1):
Purchase of property and
equipment (1,027) (3,712) (3,485) (8,885)
Purchase of other assets (1,641) - (1,641) -
-------- -------- -------- --------
Free Cash Flow $ 15,157 $ 9,026 $ 46,536 $ 15,142
======== ======== ======== =========
(1) During the three and nine months ended January 23, 2004, the Company paid $20,122 to pay off a lease on its corporate jet. This amount, which is an unusual, non-recurring item, has been excluded from the calculation.
Non-GAAP Measure:
We define Free Cash Flow as net cash provided by continuing operations less cash used for capital expenditures. Although it is not a recognized measure of performance under U.S. GAAP, Free Cash Flow provides useful information regarding the amount of cash our continuing business is generating after capital expenditures, available for reinvesting in the business and for payment of dividends.
CURRENT LIABILITIES:
Current portion of long-term debt $ 821 $ 777
Accounts payable 15,771 14,188
Accrued expenses and other liabilities 41,232 34,991
Deferred income 20,496 24,662
Liabilities of discontinued operations 8,867 11,554
--------- ---------
Total current liabilities 87,187 86,172
LONG-TERM DEBT 8,506 9,126
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Class A common stock 136 182
Class B common stock 548 548
Treasury stock - (30,569)
Additional paid-in capital 248,143 297,315
Accumulated other comprehensive (loss)
income (30) 243
Retained earnings 94,674 74,240
--------- ---------
Total stockholders' equity 343,471 341,959
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 439,164 $ 437,257
========= =========
World Wrestling Entertainment, Inc.
Consolidated Statements of Cash Flows
(dollars in thousands)
(Unaudited)
Nine Months Ended
January 23, January 24,
2004 2003
-------------------------
OPERATING ACTIVITIES:
NET INCOME (LOSS) $ 28,652 $ (15,075)
Adjustments to reconcile net income (loss) to net
cash provided
by operating activities:
(Income) loss from discontinued operations, net
of tax (32) 25,178
Depreciation and amortization 8,538 6,731
Amortization of warrants (836) (952)
Stock compensation costs 469 -
Change in value of warrants (422) -
Recoveries, net of provision for doubtful
accounts (1,994) 1,353
Provision for inventory obsolescence 19 618
Changes in assets and liabilities:
Accounts receivable 12,675 10,806
Inventory (179) (314)
Prepaid expenses and other assets 1,628 (2,688)
Accounts payable 1,583 (4,562)
Accrued expenses and other liabilities 6,530 200
Deferred income (4,969) 2,732
-------- -----------
Net cash provided by continuing
operations 51,662 24,027
Net cash used in discontinued
operations (2,370) (7,842)
-------- -----------
Net cash provided by operating
activities 49,292 16,185
---------- ---------
INVESTING ACTIVITIES:
Purchase of property and equipment (3,485) (8,885)
Buyout of corporate aircraft lease (20,122) -
Purchase of other assets (1,641) -
(Purchase) sale of short-term investments, net (54,239) 93,124
-------- ---------
Net cash (used in) provided by
continuing operations (79,487) 84,239
Net cash used in discontinued
operations - (2,344)
-------- ---------
Net cash (used in) provided
by investing activities (79,487) 81,895
---------- ----------
FINANCING ACTIVITIES:
Repayment of long-term debt (576) (444)
Purchase of treasury stock (19,182) (29,477)
Dividends paid (8,218) -
Net proceeds from exercise of stock options 65 405
-------- ---------
Net cash used in continuing
operations (27,911) (29,516)
Net cash provided by discontinued
operations - 322
-------- ---------
Net cash used in financing
activities (27,911) (29,194)
-------- -----------
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS (58,106) 68,886
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 128,473 86,397
-------- ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 70,367 $ 155,283
========== =========
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the period for income taxes, net of
refunds 9,771 3,369
Cash paid during the period for interest 585 574
World Wrestling Entertainment, Inc.
Supplemental Information - EBITDA
(dollars in thousands)
(Unaudited)
Three Months Ended Nine Months Ended
January 23, January 24, January 23, January 24,
2004 2003 2004 2003
------------------------------------------------
Net income (loss)
reported on U.S. GAAP basis $ 8,852 $ (16,000) $ 28,652 $(15,075)
Loss (income) from discontinued
operations 76 21,988 (32) 25,178
Provision for income taxes 5,372 3,484 17,411 5,851
Interest and other, net (2,111) ( 668) (4,898) (680)
Depreciation and amortization 2,942 2,641 8,538 6,731
-------- --------- -------- ---------
EBITDA $ 15,131 $ 11,445 $ 49,671 $ 22,005
======== ========= ======== ============
Non-GAAP Measure:
We define EBITDA as earnings from continuing operations before interest and other, net, income taxes, depreciation and amortization. Although it is not a recognized measure of performance under U.S. GAAP, EBITDA is presented because it is a widely accepted financial indicator of a company's cash flow. The Company uses EBITDA to measure its own performance and to set goals for operating managers. EBITDA should not be considered as an alternative to income from continuing operations, net income, cash flows from operations or any other indicator of World Wrestling Entertainment Inc.'s performance or liquidity, determined in accordance with U.S. GAAP.
World Wrestling Entertainment, Inc.
Supplemental Information- Free Cash Flow
(dollars in thousands)
(Unaudited)
Three Months Ended Nine Months Ended
2004 2003 2004 2003
-------------------------------------------------
Net cash provided by continuing
operations $ 17,825 $ 12,738 $ 51,662 $ 24,027
Less cash used for capital
expenditures (1):
Purchase of property and
equipment (1,027) (3,712) (3,485) (8,885)
Purchase of other assets (1,641) - (1,641) -
-------- -------- -------- --------
Free Cash Flow $ 15,157 $ 9,026 $ 46,536 $ 15,142
======== ======== ======== =========
(1) During the three and nine months ended January 23, 2004, the Company paid $20,122 to pay off a lease on its corporate jet. This amount, which is an unusual, non-recurring item, has been excluded from the calculation.
Non-GAAP Measure:
We define Free Cash Flow as net cash provided by continuing operations less cash used for capital expenditures. Although it is not a recognized measure of performance under U.S. GAAP, Free Cash Flow provides useful information regarding the amount of cash our continuing business is generating after capital expenditures, available for reinvesting in the business and for payment of dividends.