WWE 3 Quartals Bericht

[Nefercheperur]

Hier der 3. Finanz Quartals Bericht der WWE.Soviel zum Thema die WWE faehrt gewinne ein..........

World Wrestling Entertainment, Inc. Reports Q3 Results: E.P.S. Rises 44% to $0.13; Increases Full-Year EBITDA Guidance

STAMFORD, Conn.--(BUSINESS WIRE)--Feb. 17, 2004--World Wrestling Entertainment, Inc. (NYSE:WWE) today announced financial results for its third quarter ended January 23, 2004. The Company reported income from continuing operations of $8.9 million, or $0.13 per share, versus $6.0 million, or $0.09 cents per share in the prior year.


Revenues totaled $79.1 million as compared to $92.6 million in the prior year quarter, a decline of approximately 15%. A significant portion of the decrease is due to the fact that during the fiscal quarter, the Company aired only two pay-per-view events as compared to three in the year-ago quarter. Revenues for our January 25, 2004 pay-per-view event, Royal Rumble, which will be recorded in our fiscal fourth quarter, are estimated to be approximately $8.8 million. In addition, revenues from our live events were down approximately 27% primarily as a result of lower attendance, due in part to fewer events held during the current quarter.

EBITDA was $15.1 million in the current quarter as compared to $11.4 million in the prior year quarter. The increase in EBITDA was attributable to a significant reduction in our selling, general and administrative costs as well as increased profitability across much of our branded merchandise businesses and the change in our arrangement with UPN for our SmackDown! program. EBITDA attributable to our January 2004 pay-per-view event, Royal Rumble, which will be reflected in our fiscal fourth quarter, is estimated to be approximately $5.3 million.

"Results for the third quarter exceeded our expectations. Improved operating results across our television, advertising and home video businesses coupled with a continued decrease in our overhead contributed to a strong and profitable quarter. Management remains focused on execution and continuing to improve our profitability," said Linda McMahon, WWE CEO. "The success of the Royal Rumble pay-per-view, coupled with the buzz being generated around WrestleMania XX, our much anticipated, sold-out pay-per-view event at Madison Square Garden on March 14, indicates significant momentum going into our fourth quarter. We've had a solid fiscal year so far, and I'm excited by the prospects of a strong fourth quarter. In particular, WrestleMania XX is shaping up to be something special and a must-see event in 2004."

Operating income for the quarter was $12.2 million versus $8.8 million in the prior year quarter. Net income was $8.9 million, or $0.13 per share, as compared to a net loss of $16.0 million, or a net loss of $0.23 per share, in the prior year quarter. Included in the prior year quarter was an impairment charge of $32.9 million ($20.4 million, net of tax) related to the Company's New York restaurant.

Results By Business Segment

Live and Televised Entertainment

Revenues from the Company's Live and Televised businesses were $55.6 million for the current quarter as compared to $71.0 million in the prior year quarter.

-- Pay-Per-View revenues were $13.2 million versus $21.2 million in the prior year quarter. In the third quarter of fiscal 2004, two pay-per-view events were produced as compared to three in the prior year quarter due to the timing of our third quarter end as compared to the air date of our January program. The Company will produce 12 pay-per-view events in fiscal 2004.

-- Total domestic pay-per-view buys for the quarter were 0.8 million as compared to 1.3 million in the prior year quarter.

-- Buys for our November 2003 event Survivor Series were 0.4 million as compared to 0.3 million in the prior year while buys for Armageddon in December 2003 were 0.2 million as compared to 0.3 million in the prior year.

-- Buys for our January 2004 event, Royal Rumble, are currently estimated to be approximately 0.5 million and will be recorded in our fourth fiscal quarter as compared to 0.4 million in the prior year third quarter.

-- Live Event revenues were $11.7 million as compared to $16.0 million in the third quarter of last year.

-- There were 74 events, including 3 international events, during the quarter as compared to 79 events, including 7 international events, during the same period last year.

-- Average attendance for our domestic live events was approximately 4,000 this quarter as compared to approximately 4,300 in the prior year quarter while average attendance for our international live events was 8,700 in the current quarter as compared to 9,100 in the prior year quarter.

-- The average ticket price decreased to approximately $37.90 as compared to approximately $41.70 in the prior year quarter.

-- Television Advertising revenues were $11.7 million as compared to $17.5 million in the prior year quarter. Commencing with the new television season, which began September 29, 2003, UPN began to sell the inventory related to our SmackDown! program and to pay us a rights fee. The decline in advertising revenues was due to this new arrangement, offset partially by increased advertising revenues from our Spike TV programming.

-- Average household ratings for our RAW program were 3.6 for the current quarter as compared to 3.5 for the prior year quarter.

-- Average household ratings for our SmackDown! program remained consistent with a 3.4 for the current quarter and the prior year quarter.

-- Raw continues to be the top rated regularly scheduled primetime program on ad-supported cable television while SmackDown! has consistently been the top rated program on UPN since its premiere in 1999.

-- Television Rights Fees revenues were $19.0 million as compared to $16.2 million in the prior year quarter. The increase was due primarily to rights fees received under the new UPN contract as well as from new international distribution contracts. The prior year quarter included approximately $2.7 million related primarily to rights fees from our former MTV reality series, Tough Enough, executive producer fees for a feature film and one additional television special.

Branded Merchandise

Revenues from the Company's Branded Merchandise businesses were $23.5 million versus $21.6 million in the prior year quarter.

-- Merchandise revenues were $4.3 million as compared to $5.0 million in the prior year quarter. The decrease was due in part to a change that occurred in fiscal 2004 from the direct sale of our merchandise to a licensing arrangement for merchandise sold at our Canadian and International events. In addition, revenues decreased due to the fewer live events held in the quarter as compared to the prior year.

-- Publishing revenues were $3.0 million as compared to $4.0 million in the prior year quarter. The decrease was due to a decrease in both newsstand and subscription units sold for our RAW and SmackDown! branded magazines.

-- Home Video revenues were $3.7 million as compared to $2.7 million in the prior year quarter, the increase due primarily to a 29% increase in units sold.

-- Our recent 3 DVD set titled The Ultimate Ric Flair Collection sold approximately 89,000 units during the current quarter.

-- Licensing revenues were $10.9 million as compared to $8.4 million in the prior year quarter. The increase was due primarily to increased book publishing revenues.

-- Titles released this quarter included The Stone Cold Truth, which has spent the last three months on the New York Times Best-Seller list, and Unscripted, a glossy photo coffee table book.

Profit Contribution (Net revenues less cost of revenues)

Profit contribution for the quarter was $35.0 million as compared to $35.9 million in the prior year quarter. Total profit contribution margin was approximately 44% for the current quarter as compared to 39% for the prior year quarter.

The profit contribution margin for the Live and Televised businesses was approximately 40% for the current quarter as compared to 37% in the prior year quarter. The profit margin for the current period was favorably impacted by the change in our UPN agreement and decreased television production costs.

The profit contribution margin for the Branded Merchandise businesses was approximately 54% for the current quarter as compared to 45% in the prior year quarter. The increase is due primarily to higher licensing, merchandise and home video margins.

[Nefercheperur]

Selling, general and administrative expenses

SG&A expenses decreased by $5.5 million for the quarter to $18.9 million as compared to $24.4 million in the prior year quarter. SG&A expenses decreased primarily due to lower professional fees and, to a lesser extent, the favorable impact of the cost cutting measures taken during fiscal 2003. The prior year included a $1.5 million expense for a proposed litigation settlement as well as $0.7 million related to the termination of a lease for additional office space.

Stock compensation costs

Stock compensation costs were $1.0 million for the current quarter. During the third quarter, we completed an exchange offer that gave all active employees and independent contractors that held options with a grant price of $17 or higher the ability to exchange options, at a 6 to 1 ratio, for restricted stock units, or, for holders with fewer than 25,000 options, for cash at a 25% discounted rate. Overall, 4.2 million options were eligible for the offer, of which 4.1 million were exchanged for either cash or restricted stock units. As a result of the offer, we will record a total charge of $6.7 million, of which approximately $0.9 million was recorded in the current quarter and the remaining charge will be amortized over the 24-month vesting period of the restricted stock units. As of January 23, 2004, after the exchange offer, there were approximately 3.1 million options outstanding at an average exercise price of $12.60 and there were approximately 0.8 million restricted stock units outstanding.

Depreciation and amortization

Depreciation and amortization was $2.9 million for the current quarter as compared to $2.6 million for the prior year quarter.

-- In January 2004, the Company paid $20.1 million to pay off a lease on our corporate jet. The lease, which was the Company's only synthetic lease, had previously been accounted for as an operating lease. The transaction will be accounted for as a capital acquisition in the current period. In addition, this transaction should result in a reduction in the Company's net financing costs.

-- The purchase price of the jet, net of a $9.5 million estimated residual value, will be depreciated over a 10 year period commencing in February 2004.

Discontinued Operations

The discontinued operations of The World was a loss of $0.1 million, after tax, as compared to a loss of $22.0 million, after tax, in the prior year quarter. Included in the prior year quarter was a charge of $32.9 million ($20.4 million, net of tax) as a result of impairment tests conducted on goodwill and other long-lived assets related to The World.

Nine months ended results

Total revenues through the first nine months of fiscal 2004 were $248.2 million as compared to $268.3 million in the prior year period. EBITDA was $49.7 million for the nine month period as compared to $22.0 million in the prior year period. EBITDA for the current year period included $5.9 million related to the favorable settlement of litigation. EBITDA for the prior year period included $3.9 million in net unfavorable settlements of litigation. Operating income for the current period was $41.1 million versus $15.3 million in the prior year period. Net income was $28.7 million, or $0.42 per share, as compared to a net loss of $15.1 million, or $0.21 per share, in the prior year period. Included in net loss for the prior year was a $25.2 million loss after tax from discontinued operations related to the Company's New York restaurant.

Free cash flow (net cash provided by continuing operations less cash used for capital expenditures) for the nine months ended January 23, 2004 was $46.5 million as compared to $15.1 million for the prior year.

Fiscal 2004 Outlook

The Company has updated its outlook for fiscal 2004 and accordingly, now anticipates that its net revenue results will be between $335.0 and $350.0 million as compared to $325.0 and $350.0 million previously. The Company's EBITDA range was increased by $2.5 million and is currently estimated to be between $57.5 and $62.5 million; and income from continuing operations is currently estimated to be between $32.0 and $34.5 million, or between $0.48 and $0.50 per share, an increase from $0.45 to $0.48 per share.

Note: World Wrestling Entertainment, Inc. will host a conference call on Wednesday, February 18, 2004 at 1:00 p.m. ET to discuss the Company's third quarter earnings results for fiscal year 2004. All interested parties can access the conference call by dialing 800-895-0198 (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. For additional information on WrestleMania XX, to be broadcast live on pay-per-view from Madison Square Garden in New York City on March 14, 2004, go to wrestlemania.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; 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 Nine Months Ended
January 23, January 24, January 23, January 24,
2004 2003 2004 2003
-----------------------------------------------

Net revenues $ 79,070 $ 92,565 $ 248,176 $ 268,337

Cost of revenues 44,055 56,711 145,543 175,501
Selling, general and
administrative
expenses 18,873 24,409 51,635 70,831
Stock compensation
costs 1,011 - 1,327 -
Depreciation and
amortization 2,942 2,641 8,538 6,731
----------- ----------- ----------- -----------


Operating income 12,189 8,804 41,133 15,274


Interest and other, net 2,111 668 4,898 680
----------- ----------- ----------- -----------

Income before income
taxes 14,300 9,472 46,031 15,954

Provision for income
taxes 5,372 3,484 17,411 5,851
----------- ----------- ----------- -----------

Income from continuing
operations 8,928 5,988 28,620 10,103


(Loss) income from
discontinued
operations (76) (21,988) 32 (25,178)

----------- ----------- ----------- -----------
Net income (loss) $ 8,852 $ (16,000)$ 28,652 $ (15,075)
=========== =========== =========== ===========

Earnings (loss) per
share - Basic and
Diluted:
Continuing
operations $0.13 $ 0.09 $0.42 $ 0.14
=========== =========== =========== ===========
Discontinued
operations - $ (0.31) - $ (0.36)
=========== =========== =========== ===========
Net income (loss)$ 0.13 $ (0.23)$ 0.42 $ (0.21)
=========== =========== =========== ===========

Weighted average common
and common equivalent
shares:
Basic 68,394,341 70,407,085 68,602,818 70,633,799
=========== =========== =========== ===========
Diluted 68,767,927 70,407,085 68,822,331 70,633,799
=========== =========== =========== ===========


World Wrestling Entertainment, Inc.
Consolidated Balance Sheets
(dollars in thousands)
(Unaudited)

As of As of
January 23, April 30,
2004 2003
------------------------

ASSETS

CURRENT ASSETS:

Cash and cash equivalents $ 70,367 $ 128,473
Short-term investments 196,321 142,641
Accounts receivable, net 39,048 49,729
Inventory, net 999 839
Prepaid expenses and other current assets 19,065 18,443
Assets of discontinued operations 20,844 21,129
--------- ---------
Total current assets 346,644 361,254

PROPERTY AND EQUIPMENT - NET 74,895 59,325

INTANGIBLE ASSETS - NET 12,735 12,055


OTHER ASSETS 4,890 4,623

--------- ---------
TOTAL ASSETS $ 439,164 $ 437,257
========= =========

[Nefercheperur]

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.