Endeavor Releases Second Quarter 2024 Results
Endeavor Group Holdings (NYSE: EDR) reported its Q2 2024 financial results, showing revenue of $1.751 billion and an Adjusted EBITDA of $380.7 million. The company experienced growth across its Owned Sports Properties segment, driven by successful events like WrestleMania 40 and UFC 300. The Representation segment also showed strength due to recovery following industry strikes. However, the company reported a net loss of $253.8 million.
Notably, Endeavor is in the process of being acquired by Silver Lake in a take-private transaction, expected to close by Q1 2025. As part of this deal, the company plans to divest its Sports Data & Technology segment. Endeavor's cash and cash equivalents stood at $697.7 million, with total debt at $5.073 billion as of June 30, 2024.
Endeavor Group Holdings (NYSE: EDR) ha riportato i risultati finanziari per il secondo trimestre del 2024, mostrando un fatturato di 1,751 miliardi di dollari e un EBITDA rettificato di 380,7 milioni di dollari. L'azienda ha registrato una crescita nel suo segmento Proprietà Sportive, grazie a eventi di successo come WrestleMania 40 e UFC 300. Anche il segmento Rappresentanza ha mostrato solidità a causa della ripresa dopo gli scioperi nel settore. Tuttavia, la società ha riportato un perdita netta di 253,8 milioni di dollari.
È importante notare che Endeavor è in fase di acquisizione da parte di Silver Lake in una transazione di privatizzazione, prevista per chiudere entro il primo trimestre del 2025. Come parte di questo accordo, l'azienda prevede di dismettere il suo segmento Dati e Tecnologia Sportiva. Le disponibilità liquide di Endeavor ammontavano a 697,7 milioni di dollari, con un debito totale di 5,073 miliardi di dollari al 30 giugno 2024.
Endeavor Group Holdings (NYSE: EDR) reportó sus resultados financieros del segundo trimestre de 2024, mostrando ingresos de 1.751 millones de dólares y un EBITDA ajustado de 380,7 millones de dólares. La compañía experimentó crecimiento en su segmento de Propiedades Deportivas, impulsado por eventos exitosos como WrestleMania 40 y UFC 300. El segmento de Representación también mostró fuerza gracias a la recuperación tras las huelgas en la industria. Sin embargo, la empresa reportó una pérdida neta de 253,8 millones de dólares.
Es notable que Endeavor está en proceso de ser adquirido por Silver Lake en una transacción de privatización, que se espera se cierre para el primer trimestre de 2025. Como parte de este acuerdo, la compañía planea deshacerse de su segmento de Datos y Tecnología Deportiva. El efectivo y equivalentes de efectivo de Endeavor alcanzaron 697,7 millones de dólares, con una deuda total de 5.073 millones de dólares al 30 de junio de 2024.
엔데버 그룹 홀딩스 (NYSE: EDR)는 2024년 2분기 재무 결과를 발표하며 매출 17억 5,100만 달러와 조정된 EBITDA 3억 8,070만 달러를 기록했습니다. 회사는 레슬매니아 40 및 UFC 300과 같은 성공적인 이벤트 덕분에 소유 스포츠 자산 부문에서 성장을 경험했습니다. 대리 부문도 업계 파업 이후 회복세 덕분에 강세를 보였습니다. 그러나 회사는 순손실 2억 5,380만 달러를 보고했습니다.
특히, 엔데버는 실버 레이크에 인수되는 과정에 있다는 점이 주목할 만하며, 이는 2025년 1분기 내에 완료될 것으로 예상됩니다. 이 거래의 일환으로 회사는 스포츠 데이터 및 기술 부문을 분사할 계획입니다. 엔데버의 현금 및 현금성 자산은 6억 9,770만 달러로, 2024년 6월 30일 기준 총 부채는 50억 7300만 달러였습니다.
Endeavor Group Holdings (NYSE: EDR) a annoncé ses résultats financiers pour le deuxième trimestre 2024, affichant un chiffre d'affaires de 1,751 milliard de dollars et un EBITDA ajusté de 380,7 millions de dollars. L'entreprise a connu une croissance dans son segment des Propriétés Sportives, soutenue par des événements réussis tels que WrestleMania 40 et UFC 300. Le segment de Représentation a également montré de la solidité grâce à la reprise après les grèves de l'industrie. Cependant, la société a déclaré une perte nette de 253,8 millions de dollars.
Il est important de noter qu'Endeavor est en cours de rachat par Silver Lake dans le cadre d'une transaction de privatisation, prévue pour être finalisée d'ici le premier trimestre 2025. Dans le cadre de cet accord, la société prévoit de céder son segment Données et Technologie Sportives. Les liquidités d'Endeavor s'élevaient à 697,7 millions de dollars, avec une dette totale de 5,073 milliards de dollars au 30 juin 2024.
Endeavor Group Holdings (NYSE: EDR) hat die finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht, mit Umsätzen von 1,751 Milliarden Dollar und einem bereinigten EBITDA von 380,7 Millionen Dollar. Das Unternehmen verzeichnete Wachstum in seinem Segment der eigenen Sportimmobilien, angetrieben durch erfolgreiche Veranstaltungen wie WrestleMania 40 und UFC 300. Auch das Segment der Vertretung zeigte Stärke aufgrund der Erholung nach den branchenweiten Streiks. Allerdings meldete das Unternehmen einen Nettoverlust von 253,8 Millionen Dollar.
Bemerkenswert ist, dass Endeavor sich in einem Übernahmeprozess durch Silver Lake befindet, der voraussichtlich im ersten Quartal 2025 abgeschlossen sein wird. Im Rahmen dieses Deals plant das Unternehmen, sein Segment für Sportdaten und -technologie zu veräußern. Endeavors Bargeld und Bargeldäquivalente beliefen sich auf 697,7 Millionen Dollar, bei einer Gesamtschuld von 5,073 Milliarden Dollar zum 30. Juni 2024.
- Revenue increased to $1.751 billion in Q2 2024
- Owned Sports Properties segment revenue up 162.9% year-over-year
- Representation segment revenue increased by 7.9% compared to Q2 2023
- Adjusted EBITDA for Owned Sports Properties segment up 135.9% year-over-year
- Net loss of $253.8 million for Q2 2024
- Events, Experiences & Rights segment revenue down 20.1% year-over-year
- Cash and cash equivalents decreased from $778.6 million in Q1 to $697.7 million in Q2 2024
- Total debt increased from $5.010 billion in Q1 to $5.073 billion in Q2 2024
Endeavor's Q2 2024 results show a mixed financial picture. Revenue increased to
The Adjusted EBITDA of
The pending Silver Lake take-private transaction at
Endeavor's Q2 results reflect strong consumer demand in key areas. The outperformance of marquee events like WrestleMania 40, UFC 300 and UFC 303 indicates robust engagement in combat sports and entertainment. This trend aligns with the broader post-pandemic resurgence in live events.
The growth in PBR's partnerships and team series suggests an expanding market for alternative sports. Meanwhile, the recovery in the Representation segment, particularly in talent and music divisions, points to a rebound in the entertainment industry following the WGA and SAG-AFTRA strikes.
However, the decrease in the Events, Experiences & Rights segment highlights the volatility in this sector, with event timing and asset sales impacting performance. The planned divestiture of the Sports Data & Technology segment signals a strategic shift, potentially in response to market demands or to streamline operations ahead of the Silver Lake acquisition.
Highlights
-
$1.75 1 billion - Growth across Owned Sports Properties driven by outperformance of marquee live events including WrestleMania 40, UFC 300 and UFC 303, as well as growth in new and existing partnerships at Professional Bull Riders (“PBR”)
- Strength within Representation segment driven by continued recovery following WGA and SAG-AFTRA strikes and continued consumer demand for music tours
Q2 2024 Consolidated Financial Results
-
Revenue:
$1.75 1 billion -
Net loss:
$253.8 million -
Adjusted EBITDA:
$380.7 million
“TKO and PBR benefited from strong consumer demand and engagement during the quarter, and we continued to drive growth in our representation segment,” said Ariel Emanuel, CEO, Endeavor. “We remain focused on delivering for our clients and partners and maintaining momentum throughout the business as we work toward the close of our take-private transaction with Silver Lake.”
Segment Operating Results
-
Owned Sports Properties segment revenue was
$894.1 million $554.0 million 162.9% , compared to the second quarter of 2023. The increase was primarily attributed to the acquisition of WWE in September 2023, which contributed$457 million $422.8 million $243.6 million 135.9% , year-over-year.
-
Events, Experiences & Rights segment revenue was
$472.2 million $118.9 million 20.1% , compared to the second quarter of 2023. Segment revenue was primarily impacted by a decrease of$91 million $(68.7) million $145.3 million
-
Representation segment revenue was
$411.4 million $30.3 million 7.9% , compared to the second quarter of 2023. The increase in revenue is primarily attributed to growth in WME’s talent and music divisions and at 160over90, partially offset by decreases in WME’s fashion business. Adjusted EBITDA was$107.4 million $0.2 million 0.2% , year-over-year.
Sports Data & Technology Segment Update
As part of the
Balance Sheet and Liquidity
At June 30, 2024, cash and cash equivalents totaled
For further information regarding the Company's financial results, as well as certain non-GAAP financial measures, and the reconciliations thereof, please refer to the following pages of this release or visit the Company’s Investor Relations site at investor.endeavorco.com.
Silver Lake Transaction
On April 2, 2024, Endeavor announced that it entered into a definitive agreement to be acquired by
Webcast Details
Following the prior announcement of Endeavor’s definitive agreement to be acquired by
Forward-Looking Statements
This press release 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, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, the expected take-private of the Company by
Non-GAAP Financial Measures
We refer to certain financial measures that are not recognized under
About Endeavor
Endeavor (NYSE: EDR) is a global sports and entertainment company, home to many of the world’s most dynamic and engaging storytellers, brands, live events, and experiences. The Endeavor network specializes in talent representation through entertainment agency WME; sports operations and advisory, event management, media production and distribution, and brand licensing through IMG; live event experiences and hospitality through On Location; full-service marketing through global cultural marketing agency 160over90; and sports data and technology through OpenBet. Endeavor is also the majority owner of TKO Group Holdings (NYSE: TKO), a premium sports and entertainment company comprising UFC and WWE.
Website Disclosure
Investors and others should note that we announce material financial and operational information to our investors using press releases, SEC filings and public conference calls and webcasts, as well as our Investor Relations site at investor.endeavorco.com. We may also use our website as a distribution channel of material Company information. In addition, you may automatically receive email alerts and other information about Endeavor when you enroll your email address by visiting the “Investor Email Alerts” option under the Resources tab on investor.endeavorco.com.
Consolidated Statements of Operations (Unaudited) (In thousands, except share and per share data) |
|||||||||||||||||
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|
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||||||||
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Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
| Revenue | $ |
1,751,274 |
|
$ |
1,305,648 |
|
$ |
3,510,918 |
|
$ |
2,801,626 |
|
|||||
| Operating expenses: | |||||||||||||||||
| Direct operating costs |
|
741,989 |
|
|
515,902 |
|
|
1,532,804 |
|
|
1,187,487 |
|
|||||
| Selling, general and administrative expenses |
|
759,244 |
|
|
585,274 |
|
|
1,805,145 |
|
|
1,213,063 |
|
|||||
| Depreciation and amortization |
|
138,562 |
|
|
49,833 |
|
|
281,032 |
|
|
105,113 |
|
|||||
| Total operating expenses |
|
1,639,795 |
|
|
1,151,009 |
|
|
3,618,981 |
|
|
2,505,663 |
|
|||||
| Operating income (loss) from continuing operations |
|
111,479 |
|
|
154,639 |
|
|
(108,063 |
) |
|
295,963 |
|
|||||
| Other (expense) income: | |||||||||||||||||
| Interest expense, net |
|
(97,551 |
) |
|
(90,368 |
) |
|
(194,397 |
) |
|
(175,540 |
) |
|||||
| Tax receivable agreement liability adjustment |
|
— |
|
|
10,174 |
|
|
(2,444 |
) |
|
12,518 |
|
|||||
| Other income (expense), net |
|
682 |
|
|
742,066 |
|
|
(1,272 |
) |
|
766,533 |
|
|||||
| Income (loss) from continuing operations before income taxes and equity losses of affiliates |
|
14,610 |
|
|
816,511 |
|
|
(306,176 |
) |
|
899,474 |
|
|||||
| (Benefit from) provision for income taxes |
|
(143,377 |
) |
|
139,811 |
|
|
(206,903 |
) |
|
174,668 |
|
|||||
| Income (loss) from continuing operations before equity losses of affiliates |
|
157,987 |
|
|
676,700 |
|
|
(99,273 |
) |
|
724,806 |
|
|||||
| Equity losses of affiliates, net of tax |
|
(2,833 |
) |
|
(12,997 |
) |
|
(5,096 |
) |
|
(19,543 |
) |
|||||
| Income (loss) from continuing operations, net of tax |
|
155,154 |
|
|
663,703 |
|
|
(104,369 |
) |
|
705,263 |
|
|||||
| Discontinued operations: | |||||||||||||||||
| (Loss) income from discontinued operations |
|
(176,351 |
) |
|
3,462 |
|
|
(268,607 |
) |
|
(1,230 |
) |
|||||
| Provision for income taxes |
|
232,575 |
|
|
630 |
|
|
184,267 |
|
|
1,243 |
|
|||||
| (Loss) income from discontinued operations, net of tax |
|
(408,926 |
) |
|
2,832 |
|
|
(452,874 |
) |
|
(2,473 |
) |
|||||
| Net (loss) income |
|
(253,772 |
) |
|
666,535 |
|
|
(557,243 |
) |
|
702,790 |
|
|||||
| Less: Net (loss) income attributable to non-controlling interests |
|
(39,254 |
) |
|
263,361 |
|
|
(205,385 |
) |
|
291,585 |
|
|||||
| Net (loss) income attributable to Endeavor Group Holdings, Inc. | $ |
(214,518 |
) |
$ |
403,174 |
|
$ |
(351,858 |
) |
$ |
411,205 |
|
|||||
| (Loss) earnings per share of Class A common stock: | |||||||||||||||||
| Basic from continuing operations | $ |
0.20 |
|
$ |
1.33 |
|
$ |
(0.16 |
) |
$ |
1.37 |
|
|||||
| Basic from discontinued operations |
|
(0.90 |
) |
|
0.01 |
|
|
(1.00 |
) |
|
- |
|
|||||
| Basic | $ |
(0.70 |
) |
$ |
1.34 |
|
$ |
(1.16 |
) |
$ |
1.37 |
|
|||||
| Diluted from continuing operations | $ |
0.19 |
|
$ |
1.28 |
|
$ |
(0.16 |
) |
$ |
1.35 |
|
|||||
| Diluted from discontinued operations |
|
(0.89 |
) |
|
0.01 |
|
|
(1.00 |
) |
|
- |
|
|||||
| Diluted | $ |
(0.70 |
) |
$ |
1.29 |
|
$ |
(1.16 |
) |
$ |
1.35 |
|
|||||
| Weighted average number of shares used in computing (loss) earnings per share: | |||||||||||||||||
| Basic |
|
304,193,981 |
|
|
301,011,276 |
|
|
302,327,311 |
|
|
296,499,094 |
|
|||||
| Diluted(1) |
|
309,319,813 |
|
|
311,046,135 |
|
|
302,327,311 |
|
|
299,810,998 |
|
|||||
| (1) The diluted weighted average number of shares of 309,319,813 for the three months ended June 30, 2024, included weighted average Class A common shares outstanding, plus an assumed exchange of Endeavor Profits Units into shares of the Company’s Class A common stock, plus additional shares from RSUs, Stock Options and Phantom Units. The diluted weighted average number of shares did not include any additional shares from securities which had an anti-dilutive impact on the calculation of (loss) earnings per share. | |
Securities that are anti-dilutive for the three months ended June 30, 2024, are additional shares based on an assumed exchange of Endeavor Manager Units and Endeavor Operating Units into 145,868,156 shares, as well as additional shares from certain Stock Options, RSUs and redeemable non-controlling interests. |
|
Segment Results (Unaudited) (In thousands) |
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| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
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| Revenue: | |||||||||||||||||
| Owned Sports Properties | $ |
894,061 |
|
$ |
340,088 |
|
$ |
1,579,486 |
|
$ |
693,377 |
|
|||||
| Events, Experiences & Rights |
|
472,221 |
|
|
591,078 |
|
|
1,217,118 |
|
|
1,391,864 |
|
|||||
| Representation |
|
411,410 |
|
|
381,149 |
|
|
756,757 |
|
|
731,389 |
|
|||||
| Eliminations |
|
(26,418 |
) |
|
(6,667 |
) |
|
(42,443 |
) |
|
(15,004 |
) |
|||||
| Total Revenue | $ |
1,751,274 |
|
$ |
1,305,648 |
|
$ |
3,510,918 |
|
$ |
2,801,626 |
|
|||||
| Adjusted EBITDA: | |||||||||||||||||
| Owned Sports Properties | $ |
422,827 |
|
$ |
179,234 |
|
$ |
721,799 |
|
$ |
364,905 |
|
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| Events, Experiences & Rights |
|
(68,745 |
) |
|
76,583 |
|
|
27,166 |
|
|
184,574 |
|
|||||
| Representation |
|
107,388 |
|
|
107,149 |
|
|
172,585 |
|
|
191,355 |
|
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| Corporate and other |
|
(80,728 |
) |
|
(74,722 |
) |
|
(160,231 |
) |
|
(152,747 |
) |
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Consolidated Balance Sheets (Unaudited) (In thousands, except share data) |
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|
June 30, |
|
December 31, |
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|
|
2024 |
|
|
|
2023 |
|
| ASSETS | |||||||||
| Current Assets: | |||||||||
| Cash and cash equivalents | $ |
697,656 |
|
$ |
1,166,526 |
|
|||
| Restricted cash |
|
403,309 |
|
|
278,456 |
|
|||
| Accounts receivable (net of allowance for doubtful accounts of |
|
1,008,782 |
|
|
810,857 |
|
|||
| Deferred costs |
|
646,465 |
|
|
606,207 |
|
|||
| Other current assets |
|
438,999 |
|
|
432,042 |
|
|||
| Current assets of discontinued operations |
|
209,531 |
|
|
170,459 |
|
|||
| Total current assets |
|
3,404,742 |
|
|
3,464,547 |
|
|||
| Property and equipment, net |
|
861,464 |
|
|
914,645 |
|
|||
| Operating lease right-of-use assets |
|
416,645 |
|
|
309,704 |
|
|||
| Intangible assets, net |
|
4,615,399 |
|
|
4,812,284 |
|
|||
| Goodwill |
|
9,516,086 |
|
|
9,517,143 |
|
|||
| Investments |
|
397,084 |
|
|
394,179 |
|
|||
| Deferred income taxes |
|
446,484 |
|
|
429,729 |
|
|||
| Other assets |
|
630,541 |
|
|
599,394 |
|
|||
| Long-term assets of discontinued operations |
|
872,655 |
|
|
1,103,148 |
|
|||
| Total assets | $ |
21,161,100 |
|
$ |
21,544,773 |
|
|||
| LIABILITIES, REDEEMABLE INTERESTS AND SHAREHOLDERS' EQUITY | |||||||||
| Current Liabilities: | |||||||||
| Accounts payable | $ |
531,300 |
|
$ |
462,361 |
|
|||
| Accrued liabilities |
|
977,928 |
|
|
684,390 |
|
|||
| Current portion of long-term debt |
|
2,329,585 |
|
|
58,894 |
|
|||
| Current portion of operating lease liabilities |
|
65,618 |
|
|
73,899 |
|
|||
| Deferred revenue |
|
860,165 |
|
|
802,344 |
|
|||
| Deposits received on behalf of clients |
|
391,135 |
|
|
262,436 |
|
|||
| Current portion of tax receivable agreement liability |
|
122,189 |
|
|
156,155 |
|
|||
| Other current liabilities |
|
64,603 |
|
|
97,191 |
|
|||
| Current liabilities of discontinued operations |
|
166,857 |
|
|
199,276 |
|
|||
| Total current liabilities |
|
5,509,380 |
|
|
2,796,946 |
|
|||
| Long-term debt |
|
2,743,045 |
|
|
4,969,417 |
|
|||
| Long-term operating lease liabilities |
|
391,979 |
|
|
279,042 |
|
|||
| Long-term tax receivable agreement liability |
|
743,332 |
|
|
834,298 |
|
|||
| Deferred tax liabilities |
|
445,375 |
|
|
446,250 |
|
|||
| Other long-term liabilities |
|
394,178 |
|
|
392,951 |
|
|||
| Long-term liabilities of discontinued operations |
|
101,043 |
|
|
103,358 |
|
|||
| Total liabilities |
|
10,328,332 |
|
|
9,822,262 |
|
|||
| Commitments and contingencies | |||||||||
| Redeemable non-controlling interests |
|
229,736 |
|
|
215,458 |
|
|||
| Shareholders' Equity: | |||||||||
| Class A common stock, 306,602,233 and 298,698,490 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively |
|
3 |
|
|
3 |
|
|||
| Class B common stock, none issued and outstanding as of June 30, 2024 and December 31, 2023 |
|
— |
|
|
— |
|
|||
| Class C common stock, none issued and outstanding as of June 30, 2024 and December 31, 2023 |
|
— |
|
|
— |
|
|||
| Class X common stock, 161,433,926 and 166,569,908 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively |
|
1 |
|
|
1 |
|
|||
| Class Y common stock, 216,298,160 and 225,960,405 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively |
|
2 |
|
|
2 |
|
|||
| Additional paid-in capital |
|
4,956,534 |
|
|
4,901,922 |
|
|||
| Accumulated deficit |
|
(505,359 |
) |
|
(117,065 |
) |
|||
| Accumulated other comprehensive loss |
|
(25,502 |
) |
|
(157 |
) |
|||
| Total Endeavor Group Holdings, Inc. shareholders' equity |
|
4,425,679 |
|
|
4,784,706 |
|
|||
| Nonredeemable non-controlling interests |
|
6,177,353 |
|
|
6,722,347 |
|
|||
| Total shareholders' equity |
|
10,603,032 |
|
|
11,507,053 |
|
|||
| Total liabilities, redeemable interests and shareholders' equity | $ |
21,161,100 |
|
$ |
21,544,773 |
|
|||
Note Regarding Non-GAAP Financial Measures
This press release includes financial measures that are not calculated in accordance with
Adjusted EBITDA is a non-GAAP financial measure and is defined as net income (loss), excluding the results of discontinued operations, income taxes, net interest expense, depreciation and amortization, equity-based compensation, merger, acquisition and earn-out costs, certain legal costs and settlements, restructuring, severance and impairment charges, certain non-cash fair value adjustments, certain equity earnings (losses), net gains on sales of businesses, tax receivable agreement (“TRA”) liability adjustment, and certain other items, when applicable. Adjusted EBITDA margin is a non-GAAP financial measure defined as Adjusted EBITDA divided by Revenue.
Management believes that Adjusted EBITDA is useful to investors as it eliminates the significant level of non-cash depreciation and amortization expense that results from our capital investments and intangible assets recognized in business combinations, and improves comparability by eliminating the significant level of interest expense associated with our debt facilities, as well as income taxes and the TRA, which may not be comparable with other companies based on our tax and corporate structure.
Adjusted EBITDA and Adjusted EBITDA margin are used as the primary bases to evaluate our consolidated operating performance.
Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:
- they do not reflect every cash expenditure, future requirements for capital expenditures, or contractual commitments;
- Adjusted EBITDA does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on our debt;
- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and Adjusted EBITDA and Adjusted EBITDA margin do not reflect any cash requirement for such replacements or improvements; and
- they are not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows.
We compensate for these limitations by using Adjusted EBITDA and Adjusted EBITDA margin along with other comparative tools, together with GAAP measurements, to assist in the evaluation of operating performance.
Adjusted EBITDA and Adjusted EBITDA margin should not be considered substitutes for the reported results prepared in accordance with GAAP and should not be considered in isolation or as alternatives to net income (loss) as indicators of our financial performance, as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations. Although we use Adjusted EBITDA and Adjusted EBITDA margin as financial measures to assess the performance of our business, such use is limited because it does not include certain material costs necessary to operate our business. Our presentation of Adjusted EBITDA and Adjusted EBITDA margin should not be construed as indications that our future results will be unaffected by unusual or nonrecurring items. These non-GAAP financial measures, as determined and presented by us, may not be comparable to related or similarly titled measures reported by other companies. Set forth below are reconciliations of our most directly comparable financial measures calculated in accordance with GAAP to these non-GAAP financial measures on a consolidated basis.
Adjusted EBITDA (Unaudited) (In thousands) |
|||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||||
| Net (loss) income | $ |
(253,772 |
) |
$ |
666,535 |
|
$ |
(557,243 |
) |
$ |
702,790 |
|
|||||
| Loss (income) from discontinued operations, net of tax |
|
408,926 |
|
|
(2,832 |
) |
|
452,874 |
|
|
2,473 |
|
|||||
| (Benefit from) provision for income taxes |
|
(143,377 |
) |
|
139,811 |
|
|
(206,903 |
) |
|
174,668 |
|
|||||
| Interest expense, net |
|
97,551 |
|
|
90,368 |
|
|
194,397 |
|
|
175,540 |
|
|||||
| Depreciation and amortization |
|
138,562 |
|
|
49,833 |
|
|
281,032 |
|
|
105,113 |
|
|||||
| Equity-based compensation expense (1) |
|
53,002 |
|
|
61,100 |
|
|
111,728 |
|
|
139,543 |
|
|||||
| Merger, acquisition and earn-out costs (2) |
|
32,903 |
|
|
15,831 |
|
|
57,182 |
|
|
29,738 |
|
|||||
| Certain legal costs (3) |
|
8,530 |
|
|
1,489 |
|
|
19,832 |
|
|
3,911 |
|
|||||
| Legal settlement (4) |
|
— |
|
|
— |
|
|
335,000 |
|
|
— |
|
|||||
| Restructuring, severance and impairment (5) |
|
34,884 |
|
|
13,736 |
|
|
60,414 |
|
|
21,936 |
|
|||||
| Fair value adjustment - equity investments (6) |
|
20 |
|
|
(68 |
) |
|
(100 |
) |
|
(781 |
) |
|||||
| Equity method losses - Fifth Season (7) |
|
3,594 |
|
|
6,580 |
|
|
7,328 |
|
|
15,103 |
|
|||||
| Net gain on sale of the Academy business (8) |
|
— |
|
|
(736,978 |
) |
|
— |
|
|
(736,978 |
) |
|||||
| Tax receivable agreement liability adjustment (9) |
|
— |
|
|
(10,174 |
) |
|
2,444 |
|
|
(12,518 |
) |
|||||
| Other (10) |
|
(81 |
) |
|
(6,987 |
) |
|
3,334 |
|
|
(32,451 |
) |
|||||
| Adjusted EBITDA | $ |
380,742 |
|
$ |
288,244 |
|
$ |
761,319 |
|
$ |
588,087 |
|
|||||
| Net (loss) income margin |
|
(14.5 |
%) |
|
51.1 |
% |
|
(15.9 |
%) |
|
25.1 |
% |
|||||
| Adjusted EBITDA margin |
|
21.7 |
% |
|
22.1 |
% |
|
21.7 |
% |
|
21.0 |
% |
|||||
______________
(1) |
Equity-based compensation represents primarily non-cash compensation expense associated with our equity-based compensation plans. |
|
|
|
The decrease for the three and six months ended June 30, 2024 as compared to the three and six months ended June 30, 2023 was primarily due to awards granted at the initial public offering under the Endeavor Group Holdings, Inc.'s 2021 Incentive Award Plan becoming fully vested partially offset by awards granted under the new TKO equity plan and the WWE plan assumed in connection with the business combination of UFC and WWE. Equity-based compensation was recognized in all segments and Corporate for three and six months ended June 30, 2024 and 2023. |
|
|
(2) |
Includes (i) certain costs of professional advisors related to mergers, acquisitions, dispositions or joint ventures and (ii) fair value adjustments for contingent consideration liabilities related to acquired businesses and compensation expense for deferred consideration associated with selling shareholders that are required to retain our employees. |
|
|
|
Such costs for the three months ended June 30, 2024 primarily related to professional advisor costs, which were approximately |
|
|
|
Such costs for the three months ended June 30, 2023 primarily related to professional advisor costs, which were approximately |
|
|
|
Such costs for the six months ended June 30, 2024 primarily related to professional advisor costs, which were approximately |
|
|
|
Such costs for the six months ended June 30, 2023 primarily related to professional advisor costs, which were approximately |
|
|
(3) |
Includes costs related to certain litigation or regulatory matters in our Owned Sports Properties and Events, Experiences & Rights segments and Corporate. |
|
|
(4) |
Relates to a legal settlement in our Owned Sports Properties segment. |
|
|
(5) |
Includes certain costs related to our restructuring activities and non-cash impairment charges. |
|
|
|
Such costs for the three months ended June 30, 2024 primarily relate to an estimated loss of |
|
|
|
Such costs for the six months ended June 30, 2024 primarily relate to an estimated loss of |
|
|
|
Such costs for the three and six months ended June 30, 2023 primarily relates to a loss of approximately |
|
|
(6) |
Includes the net change in fair value for certain equity investments with and without readily determinable fair values, based on observable price changes. |
(7) |
Relates to our share of losses for our investment in Fifth Season. |
(8) |
Relates to the gain recorded for the sale of the Academy business, net of transactions costs of |
(9) |
For the six months ended June 30, 2024 and the three and six months ended June 30, 2023, the adjustment for the tax receivable agreement liability related to a change in estimates of future TRA payments. No adjustment was recorded for the three months ended June 30, 2024. |
(10) |
For the three months ended June 30, 2024, other was comprised primarily of losses of approximately |
|
|
|
For the three months ended June 30, 2023, other was comprised primarily of gains of approximately |
|
|
|
For the six months ended June 30, 2024, other was comprised primarily of losses of approximately |
|
|
|
For the six months ended June 30, 2023, other was comprised primarily of gains of approximately |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807868154/en/
Investors: investor@endeavorco.com
Press: press@endeavorco.com
Source: Endeavor Group Holdings
FAQ
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