22.06.2004, 01:52
The Company has provided the following outlook for fiscal year 2005.
This outlook is subject to various risks and uncertainties outlined in
the forward-looking statements included in this release and other
Securities and Exchange Commission filings of the Company. While the
Company has provided a "range" for each estimate this in no way
precludes actual results from being more or less than the range
suggested by this outlook.
Range
Revenues:
Live & Televised $280 - $300 million
Branded Merchandise $ 65 - $ 70 million
Total Revenues $345 - $365 million
Profit Contribution:
Live & Televised 41 - 43%
Branded Merchandise 43 - 45%
Total Profit Contribution 42 - 44%
SG&A $ 88 - $ 93 million
Stock Compensation $ 4 - $ 5 million
Targeted EBITDA:
Internal budget $ 66 million
Management bonuses $ 68 million
Depreciation & Amortization $ 12 - $ 13 million
Operating Income $ 48 - $ 53 million
Pre-tax Income $ 52 - $ 57 million
Effective Tax Rate 38%
Income from Continuing Operations $ 32 - $ 35 million
Earnings Per Share from
Continuing Operations - Diluted $ 0.46 - $0.50
The following represents certain key drivers that comprise the fiscal
year 2005 outlook:
Number of Events 320 - 330
Average Attendance 4,700 - 5,000
Average Ticket Price $40 - $42
Pay-Per-View Buys 5.4 - 5.6 million
Average Weekly Household TV
Ratings:
RAW 3.5 - 4.0
SmackDown! 3.2 - 3.7
Capital Expenditures $ 10 - $ 12 million
Note: World Wrestling Entertainment, Inc. will host a conference
call on Tuesday, June 22, 2004 at 11:00 a.m. ET to discuss the
Company's fourth quarter earnings results for fiscal year
2004. All interested parties can access the conference call by
dialing 800-894-5910 (conference ID: WWE). Please reserve a
line 15 minutes prior to the start time of the conference
call. A presentation that will be referenced during the call
can be found at the Company web site at corporate.wwe.com. A
replay of the call will be available approximately three hours
after the conference call concludes, and can be accessed at
corporate.wwe.com.
World Wrestling Entertainment, Inc. (NYSE:WWE) is an integrated media and entertainment company headquartered in Stamford, Conn. Additional information on the Company can be found at wwe.com and corporate.wwe.com. Information on television ratings and community activities can be found at parents.wwe.com.
Trademarks: The names of all World Wrestling Entertainment televised and live programming, talent names, images, likenesses, slogans and wrestling moves and all World Wrestling Entertainment logos are trademarks, which are the exclusive property of World Wrestling Entertainment, Inc.
Forward-Looking Statements: This news 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 the conditions of the markets for live events, broadcast television, cable television, pay-per-view, Internet, entertainment, professional sports, and licensed merchandise; acceptance of the Company's brands, media and merchandise within those markets; uncertainties relating to litigation; risks associated with producing live events both domestically and internationally; uncertainties associated with international markets; risks relating to maintaining and renewing key agreements, including television distribution agreements; and other risks and factors set forth from time to time in Company filings with the Securities and Exchange Commission. Actual results could differ materially from those currently expected or anticipated.
World Wrestling Entertainment, Inc.
Consolidated Statements of Operations
(dollars in thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
April 30, April 30, April 30, April 30,
2004 2003 2004 2003
------------------------------------------
Net revenues $ 126,733 $ 105,927 $ 374,909 $ 374,264
Cost of revenues 61,578 61,842 207,121 237,343
Selling, general and
administrative expenses 26,535 28,518 78,170 99,349
Stock compensation costs 2,348 - 3,675 -
Depreciation and
amortization 3,510 3,919 12,363 10,965
---------- ---------- ---------- ----------
Operating income 32,762 11,648 73,580 26,607
Interest and other, net 1,516 (349) 6,414 331
---------- ---------- ---------- ----------
Income before income taxes 34,278 11,299 79,994 26,938
Provision for income taxes 13,130 5,105 30,421 10,836
---------- ---------- ---------- ----------
Income from continuing
operations 21,148 6,194 49,573 16,102
---------- ---------- ---------- ----------
Loss from discontinued
operations (1,413) (10,379) (1,381) (35,557)
---------- ---------- ---------- ----------
Net income (loss) $ 19,735 $ (4,185) $ 48,192 $ (19,455)
========== ========== ========== ==========
Earnings (loss) per share
- Basic:
Continuing operations $ 0.31 $ 0.09 $ 0.72 $ 0.22
Discontinued
operations (0.02) (0.15) (0.02) (0.50)
---------- ---------- ---------- ----------
Net income (loss) $ 0.29 $ (0.06) $ 0.70 $ (0.28)
========== ========== ========== ==========
Earnings (loss) per share
- Diluted:
Continuing operations $ 0.30 $ 0.09 $ 0.72 $ 0.22
Discontinued
operations (0.02) (0.15) (0.02) (0.50)
---------- ---------- ---------- ----------
Net income (loss) $ 0.28 $ (0.06) $ 0.70 $ (0.28)
========== ========== ========== ==========
Weighted average common
shares outstanding:
Basic 68,413 70,417 68,621 70,622
Diluted 69,424 70,417 69,036 70,623
World Wrestling Entertainment, Inc.
Consolidated Balance Sheets
(dollars in thousands)
(Unaudited)
As of As of
April 30, April 30,
2004 2003
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 48,467 $ 128,473
Short-term investments 224,824 142,641
Accounts receivable, net 62,703 49,075
Inventory, net 856 839
Prepaid expenses and other current assets 15,718 18,609
Assets of discontinued operations 691 21,129
---------- ----------
Total current assets 353,259 360,766
PROPERTY AND EQUIPMENT - NET 71,369 59,325
INTANGIBLE ASSETS - NET 4,492 4,625
OTHER ASSETS 4,235 7,447
ASSETS OF DISCONTINUED OPERATIONS 20,703 -
---------- ----------
TOTAL ASSETS $ 454,058 $ 432,163
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 700 $ 777
Accounts payable 13,118 14,188
Accrued expenses and other liabilities 41,845 34,503
Deferred income 23,512 24,662
Liabilities of discontinued operations 2,401 11,554
---------- ----------
Total current liabilities 81,576 85,684
LONG-TERM DEBT 7,955 9,126
LIABILITIES OF DISCONTINUED OPERATIONS 7,316 -
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 250,773 297,315
Accumulated other comprehensive (loss)
income (1,118) 243
Retained earnings 106,872 69,634
---------- ----------
Total stockholders' equity 357,211 337,353
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 454,058 $ 432,163
========== ==========
World Wrestling Entertainment, Inc.
Consolidated Statements of Cash Flows
(dollars in thousands)
(Unaudited)
April 30, April 30,
2004 2003
---------------------
OPERATING ACTIVITIES:
NET INCOME (LOSS) $ 48,192 $ (19,455)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Loss from discontinued operations, net of
tax 1,381 35,557
Depreciation and amortization 12,363 10,965
Amortization of deferred income (1,052) (1,268)
Stock compensation costs 2,814 -
Recoveries, net of provision for doubtful
accounts (2,295) 3,697
Provision for inventory obsolescence 237 797
Provision for deferred income taxes 5,445 1,490
Revaluation of warrants (671) -
Impairment of long-lived asset 2,942 -
Changes in assets and liabilities:
Accounts receivable (11,332) 9,696
Inventory (255) (185)
Prepaid expenses and other assets 2,798 (521)
Accounts payable (1,070) (5,302)
Accrued expenses and other liabilities 7,631 (10,179)
Deferred income (1,737) 2,740
---------- ----------
Net cash provided by continuing
operations 65,391 28,032
Net cash used in discontinued operations (3,477) (6,894)
---------- ----------
Net cash provided by operating
activities 61,914 21,138
This outlook is subject to various risks and uncertainties outlined in
the forward-looking statements included in this release and other
Securities and Exchange Commission filings of the Company. While the
Company has provided a "range" for each estimate this in no way
precludes actual results from being more or less than the range
suggested by this outlook.
Range
Revenues:
Live & Televised $280 - $300 million
Branded Merchandise $ 65 - $ 70 million
Total Revenues $345 - $365 million
Profit Contribution:
Live & Televised 41 - 43%
Branded Merchandise 43 - 45%
Total Profit Contribution 42 - 44%
SG&A $ 88 - $ 93 million
Stock Compensation $ 4 - $ 5 million
Targeted EBITDA:
Internal budget $ 66 million
Management bonuses $ 68 million
Depreciation & Amortization $ 12 - $ 13 million
Operating Income $ 48 - $ 53 million
Pre-tax Income $ 52 - $ 57 million
Effective Tax Rate 38%
Income from Continuing Operations $ 32 - $ 35 million
Earnings Per Share from
Continuing Operations - Diluted $ 0.46 - $0.50
The following represents certain key drivers that comprise the fiscal
year 2005 outlook:
Number of Events 320 - 330
Average Attendance 4,700 - 5,000
Average Ticket Price $40 - $42
Pay-Per-View Buys 5.4 - 5.6 million
Average Weekly Household TV
Ratings:
RAW 3.5 - 4.0
SmackDown! 3.2 - 3.7
Capital Expenditures $ 10 - $ 12 million
Note: World Wrestling Entertainment, Inc. will host a conference
call on Tuesday, June 22, 2004 at 11:00 a.m. ET to discuss the
Company's fourth quarter earnings results for fiscal year
2004. All interested parties can access the conference call by
dialing 800-894-5910 (conference ID: WWE). Please reserve a
line 15 minutes prior to the start time of the conference
call. A presentation that will be referenced during the call
can be found at the Company web site at corporate.wwe.com. A
replay of the call will be available approximately three hours
after the conference call concludes, and can be accessed at
corporate.wwe.com.
World Wrestling Entertainment, Inc. (NYSE:WWE) is an integrated media and entertainment company headquartered in Stamford, Conn. Additional information on the Company can be found at wwe.com and corporate.wwe.com. Information on television ratings and community activities can be found at parents.wwe.com.
Trademarks: The names of all World Wrestling Entertainment televised and live programming, talent names, images, likenesses, slogans and wrestling moves and all World Wrestling Entertainment logos are trademarks, which are the exclusive property of World Wrestling Entertainment, Inc.
Forward-Looking Statements: This news 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 the conditions of the markets for live events, broadcast television, cable television, pay-per-view, Internet, entertainment, professional sports, and licensed merchandise; acceptance of the Company's brands, media and merchandise within those markets; uncertainties relating to litigation; risks associated with producing live events both domestically and internationally; uncertainties associated with international markets; risks relating to maintaining and renewing key agreements, including television distribution agreements; and other risks and factors set forth from time to time in Company filings with the Securities and Exchange Commission. Actual results could differ materially from those currently expected or anticipated.
World Wrestling Entertainment, Inc.
Consolidated Statements of Operations
(dollars in thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
April 30, April 30, April 30, April 30,
2004 2003 2004 2003
------------------------------------------
Net revenues $ 126,733 $ 105,927 $ 374,909 $ 374,264
Cost of revenues 61,578 61,842 207,121 237,343
Selling, general and
administrative expenses 26,535 28,518 78,170 99,349
Stock compensation costs 2,348 - 3,675 -
Depreciation and
amortization 3,510 3,919 12,363 10,965
---------- ---------- ---------- ----------
Operating income 32,762 11,648 73,580 26,607
Interest and other, net 1,516 (349) 6,414 331
---------- ---------- ---------- ----------
Income before income taxes 34,278 11,299 79,994 26,938
Provision for income taxes 13,130 5,105 30,421 10,836
---------- ---------- ---------- ----------
Income from continuing
operations 21,148 6,194 49,573 16,102
---------- ---------- ---------- ----------
Loss from discontinued
operations (1,413) (10,379) (1,381) (35,557)
---------- ---------- ---------- ----------
Net income (loss) $ 19,735 $ (4,185) $ 48,192 $ (19,455)
========== ========== ========== ==========
Earnings (loss) per share
- Basic:
Continuing operations $ 0.31 $ 0.09 $ 0.72 $ 0.22
Discontinued
operations (0.02) (0.15) (0.02) (0.50)
---------- ---------- ---------- ----------
Net income (loss) $ 0.29 $ (0.06) $ 0.70 $ (0.28)
========== ========== ========== ==========
Earnings (loss) per share
- Diluted:
Continuing operations $ 0.30 $ 0.09 $ 0.72 $ 0.22
Discontinued
operations (0.02) (0.15) (0.02) (0.50)
---------- ---------- ---------- ----------
Net income (loss) $ 0.28 $ (0.06) $ 0.70 $ (0.28)
========== ========== ========== ==========
Weighted average common
shares outstanding:
Basic 68,413 70,417 68,621 70,622
Diluted 69,424 70,417 69,036 70,623
World Wrestling Entertainment, Inc.
Consolidated Balance Sheets
(dollars in thousands)
(Unaudited)
As of As of
April 30, April 30,
2004 2003
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 48,467 $ 128,473
Short-term investments 224,824 142,641
Accounts receivable, net 62,703 49,075
Inventory, net 856 839
Prepaid expenses and other current assets 15,718 18,609
Assets of discontinued operations 691 21,129
---------- ----------
Total current assets 353,259 360,766
PROPERTY AND EQUIPMENT - NET 71,369 59,325
INTANGIBLE ASSETS - NET 4,492 4,625
OTHER ASSETS 4,235 7,447
ASSETS OF DISCONTINUED OPERATIONS 20,703 -
---------- ----------
TOTAL ASSETS $ 454,058 $ 432,163
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 700 $ 777
Accounts payable 13,118 14,188
Accrued expenses and other liabilities 41,845 34,503
Deferred income 23,512 24,662
Liabilities of discontinued operations 2,401 11,554
---------- ----------
Total current liabilities 81,576 85,684
LONG-TERM DEBT 7,955 9,126
LIABILITIES OF DISCONTINUED OPERATIONS 7,316 -
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 250,773 297,315
Accumulated other comprehensive (loss)
income (1,118) 243
Retained earnings 106,872 69,634
---------- ----------
Total stockholders' equity 357,211 337,353
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 454,058 $ 432,163
========== ==========
World Wrestling Entertainment, Inc.
Consolidated Statements of Cash Flows
(dollars in thousands)
(Unaudited)
April 30, April 30,
2004 2003
---------------------
OPERATING ACTIVITIES:
NET INCOME (LOSS) $ 48,192 $ (19,455)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Loss from discontinued operations, net of
tax 1,381 35,557
Depreciation and amortization 12,363 10,965
Amortization of deferred income (1,052) (1,268)
Stock compensation costs 2,814 -
Recoveries, net of provision for doubtful
accounts (2,295) 3,697
Provision for inventory obsolescence 237 797
Provision for deferred income taxes 5,445 1,490
Revaluation of warrants (671) -
Impairment of long-lived asset 2,942 -
Changes in assets and liabilities:
Accounts receivable (11,332) 9,696
Inventory (255) (185)
Prepaid expenses and other assets 2,798 (521)
Accounts payable (1,070) (5,302)
Accrued expenses and other liabilities 7,631 (10,179)
Deferred income (1,737) 2,740
---------- ----------
Net cash provided by continuing
operations 65,391 28,032
Net cash used in discontinued operations (3,477) (6,894)
---------- ----------
Net cash provided by operating
activities 61,914 21,138