WWE® Reports Record 2020 Results and 2021 Business Outlook
WWE (NYSE: WWE) reported its Q4 and full-year 2020 financial results, highlighting a 26% revenue decline in Q4 to $238.2 million, driven by the absence of large-scale events due to COVID-19. Full-year revenue increased slightly to $974.2 million. Adjusted OIBDA rose nearly 60% to $286.2 million for the year. The company signed a licensing deal with Peacock to enhance its content distribution. However, operating income fell 64% in Q4, reflecting pandemic-related challenges. WWE anticipates 2021 Adjusted OIBDA between $270 million and $305 million amid ongoing COVID-19 impacts.
- Full-year 2020 revenue increased by 1% to $974.2 million.
- Adjusted OIBDA for 2020 rose nearly 60% to $286.2 million.
- Secured a licensing agreement to distribute WWE Network content on Peacock, expected to boost brand reach.
- Q4 revenue decreased by 26% compared to the previous year.
- Operating income fell 64% in Q4 to $36.2 million.
- Live event revenue dropped 97% in Q4 due to COVID-19 restrictions.
WWE (NYSE: WWE) today announced financial results for its fourth quarter and year ended December 31, 2020.
“During the fourth quarter, we continued to produce live content in new ways, which successfully increased audience interaction and engagement,” said Vince McMahon, WWE Chairman & CEO. “As we continued to adapt our business to the changing media environment, we completed an important agreement to license WWE Network content to Peacock, which we expect will expand the reach of our brands and enhance the value of our content.”
Kristina Salen, WWE Chief Financial Officer, added “For the year, we achieved record revenue and Adjusted OIBDA, which was at the high end of our rescinded guidance. Adjusted OIBDA increased nearly
Fourth-Quarter Consolidated Results*
* (All comparisons are versus the prior year period unless stated otherwise)
Revenue was
Operating Income was
Adjusted OIBDA (which excludes stock compensation) was
Net Income was
Cash flows generated by operating activities were
Free Cash Flow was
Return of Capital to Shareholders
The Company paid
Full Year 2020 Consolidated Results*
* (All comparisons are versus the prior year period unless stated otherwise)
Revenue was
Operating Income was
Adjusted OIBDA (which excludes stock compensation) was
Net Income was
Cash flows generated by operating activities were
Free Cash Flow was
Cash, cash equivalents and short-term investments were
Return of Capital to Shareholders
The Company paid
Basis of Presentation
For the fourth quarter of 2020, the Company’s consolidated pre-tax results included the impact of an
Results by Operating Segment*
* (All comparisons are versus the prior year period unless stated otherwise)
Media
Fourth-Quarter 2020
Revenue was
sponsorship. These factors were partially offset by growth in WWE Network subscription revenue.
WWE Network’s average paid subscribers were 1.5 million, an increase of
Operating income was
Adjusted OIBDA was
Full Year 2020
Revenue was
WWE Network’s average paid subscribers were 1.6 million (flat on a year-over-year basis).
Operating income was
Adjusted OIBDA was
Live Events
Fourth-Quarter 2020
Revenue was
Operating income reflected a loss of
Adjusted OIBDA reflected a loss of
Full Year 2020
Revenue was
Operating income reflected a loss of
Adjusted OIBDA reflected a loss of
Consumer Products
Fourth-Quarter 2020
Revenue was
Operating income was
Adjusted OIBDA was
Full Year 2020
Revenue was
Operating income was
Adjusted OIBDA was
2021 Business Outlook4
On January 25, 2021, WWE issued guidance for 2021 Adjusted OIBDA. As previously indicated, management expects restrictions related to COVID-19, particularly related to the cancellation, postponement or reduced capacity of ticketed live events, to continue at least through the first half of 2021. Additionally, management anticipates a significant year-over-year increase in WWE’s expense base due to the return of employees from furlough and continued higher expenses associated with the production of its weekly Raw and SmackDown television content at the WWE ThunderDome from its stadium residence at Tropicana Field. The Company estimates it can achieve 2021 Adjusted OIBDA of
Management estimates that the stated 2021 Adjusted OIBDA guidance range would be
Although the Company continues to adapt its business to the changing environment, the timing and rate of returning ticket audiences to its live events remains subject to significant uncertainty, and as such management is not reinstating quarterly guidance at this time.
Management continues to believe that WWE has significant long-term opportunities and is well positioned, particularly given its substantial cash and liquidity, to deliver on its strategic initiatives and to drive long-term shareholder value.
Notes
(1) |
|
The definition of Adjusted OIBDA can be found in the Non-GAAP Measures section of the release on pages 7-8. A reconciliation of three and twelve months ended December 31, 2020 and 2019 Operating Income to Adjusted OIBDA can be found in the Supplemental Information in this release on page 16 |
(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 COVID-19 on WWE’s business, results of operations and financial condition;entering, maintaining and renewing major distribution agreements; WWE Network; uncertainties associated with international markets and risks inherent in large live events, and other risk factors disclosed in our annual report on Form 10-K for the year ended December 31, 2020 |
(5) |
|
A reconciliation of three and twelve months ended December 31, 2020 and 2019 Net Income to Adjusted Net Income can be found in the Supplemental Information in this release on page 15 |
(6) |
|
A reconciliation of three and twelve months ended December 31, 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 17 |
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 February 4, 2021 to discuss the Company's earnings results for the fourth quarter and full year ended 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: 3809873). 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 February 4, 2021 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 900 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; 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 |
|
Year Ended |
||||||||||||
|
|
December 31, |
|
December 31, |
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Net Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Media |
|
$ |
210.5 |
|
|
$ |
264.6 |
|
|
$ |
868.2 |
|
|
$ |
743.1 |
|
Live Events |
|
|
0.7 |
|
|
|
27.4 |
|
|
|
19.9 |
|
|
|
125.6 |
|
Consumer Products |
|
|
27.0 |
|
|
|
30.8 |
|
|
|
86.1 |
|
|
|
91.7 |
|
Total Net Revenue |
|
$ |
238.2 |
|
|
$ |
322.8 |
|
|
$ |
974.2 |
|
|
$ |
960.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating Income (Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Media |
|
$ |
67.1 |
|
|
$ |
114.6 |
|
|
$ |
332.5 |
|
|
$ |
190.8 |
|
Live Events |
|
|
(7.0 |
) |
|
|
(1.0 |
) |
|
|
(19.1 |
) |
|
|
7.7 |
|
Consumer Products |
|
|
8.9 |
|
|
|
12.8 |
|
|
|
24.8 |
|
|
|
26.4 |
|
Corporate |
|
|
(32.8 |
) |
|
|
(26.6 |
) |
|
|
(129.6 |
) |
|
|
(108.4 |
) |
Total Operating Income |
|
$ |
36.2 |
|
|
$ |
99.8 |
|
|
$ |
208.6 |
|
|
$ |
116.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted OIBDA: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Media |
|
$ |
73.0 |
|
|
$ |
116.6 |
|
|
$ |
367.8 |
|
|
$ |
224.1 |
|
Live Events |
|
|
(6.7 |
) |
|
|
(1.8 |
) |
|
|
(17.6 |
) |
|
|
9.4 |
|
Consumer Products |
|
|
9.1 |
|
|
|
12.3 |
|
|
|
26.6 |
|
|
|
28.5 |
|
Corporate |
|
|
(24.2 |
) |
|
|
(19.5 |
) |
|
|
(90.6 |
) |
|
|
(82.0 |
) |
Total Adjusted OIBDA |
|
$ |
51.2 |
|
|
$ |
107.6 |
|
|
$ |
286.2 |
|
|
$ |
180.0 |
|
World Wrestling Entertainment, Inc. Operating Segment Performance (In millions) (Unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
December 31, |
|
December 31, |
||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||
Media Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Network (including pay-per-view) |
|
$ |
45.0 |
|
$ |
41.6 |
|
$ |
185.7 |
|
$ |
184.6 |
Core content rights fees (1) |
|
|
139.8 |
|
|
139.3 |
|
|
538.3 |
|
|
348.6 |
Advertising and sponsorship |
|
|
16.5 |
|
|
27.6 |
|
|
65.3 |
|
|
72.4 |
Other (2) |
|
|
9.2 |
|
|
56.1 |
|
|
78.9 |
|
|
137.5 |
Total Revenue |
|
$ |
210.5 |
|
$ |
264.6 |
|
$ |
868.2 |
|
$ |
743.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
December 31, |
|
December 31, |
||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||
Live Events Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
North American ticket sales |
|
$ |
— |
|
$ |
17.8 |
|
$ |
15.2 |
|
$ |
93.8 |
International ticket sales |
|
|
— |
|
|
7.0 |
|
|
0.2 |
|
|
19.0 |
Advertising and sponsorship |
|
|
— |
|
|
0.4 |
|
|
0.4 |
|
|
2.1 |
Other (3) |
|
|
0.7 |
|
|
2.2 |
|
|
4.1 |
|
|
10.7 |
Total Revenue |
|
$ |
0.7 |
|
$ |
27.4 |
|
$ |
19.9 |
|
$ |
125.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
December 31, |
|
December 31, |
||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||
Consumer Products Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Consumer product licensing |
|
$ |
13.5 |
|
$ |
16.6 |
|
$ |
41.7 |
|
$ |
43.2 |
eCommerce |
|
|
13.5 |
|
|
11.0 |
|
|
41.2 |
|
|
29.9 |
Venue merchandise |
|
|
— |
|
|
3.2 |
|
|
3.2 |
|
|
18.6 |
Total Revenue |
|
$ |
27.0 |
|
$ |
30.8 |
|
$ |
86.1 |
|
$ |
91.7 |
(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 |
|
Year Ended |
||||||||||
|
|
December 31, |
|
December 31, |
||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||
Net revenues |
|
$ |
238.2 |
|
|
$ |
322.8 |
|
$ |
974.2 |
|
|
$ |
960.4 |
Operating expenses |
|
|
148.7 |
|
|
|
171.6 |
|
|
549.5 |
|
|
|
638.2 |
Marketing and selling expenses |
|
|
16.6 |
|
|
|
20.3 |
|
|
71.3 |
|
|
|
84.7 |
General and administrative expenses |
|
|
26.3 |
|
|
|
20.5 |
|
|
102.2 |
|
|
|
86.9 |
Depreciation and amortization |
|
|
10.4 |
|
|
|
10.6 |
|
|
42.6 |
|
|
|
34.1 |
Operating income |
|
|
36.2 |
|
|
|
99.8 |
|
|
208.6 |
|
|
|
116.5 |
Interest expense |
|
|
9.1 |
|
|
|
7.9 |
|
|
35.6 |
|
|
|
26.1 |
Other (expense) income, net |
|
|
(7.0 |
) |
|
|
1.5 |
|
|
(1.9 |
) |
|
|
4.3 |
Income before income taxes |
|
|
20.1 |
|
|
|
93.4 |
|
|
171.1 |
|
|
|
94.7 |
Provision for income taxes |
|
|
6.5 |
|
|
|
24.1 |
|
|
39.3 |
|
|
|
17.6 |
Net income |
|
$ |
13.6 |
|
|
$ |
69.3 |
|
$ |
131.8 |
|
|
$ |
77.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||
Basic |
|
$ |
0.17 |
|
|
$ |
0.89 |
|
$ |
1.70 |
|
|
$ |
0.99 |
Diluted |
|
$ |
0.16 |
|
|
$ |
0.78 |
|
$ |
1.56 |
|
|
$ |
0.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||
Basic |
|
|
77.8 |
|
|
|
78.1 |
|
|
77.6 |
|
|
|
78.2 |
Diluted |
|
|
83.7 |
|
|
|
88.3 |
|
|
84.2 |
|
|
|
90.2 |
Dividends declared per common share (Class A and B) |
|
$ |
0.12 |
|
|
$ |
0.12 |
|
$ |
0.48 |
|
|
$ |
0.48 |
World Wrestling Entertainment, Inc. Consolidated Balance Sheets (In millions) (Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
As of |
||||||
|
|
December 31, |
|
December 31, |
||||
|
|
2020 |
|
2019 |
||||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
462.1 |
|
|
$ |
90.4 |
|
Short-term investments, net |
|
|
131.3 |
|
|
|
160.0 |
|
Accounts receivable, net |
|
|
52.0 |
|
|
|
124.8 |
|
Inventory |
|
|
8.4 |
|
|
|
8.3 |
|
Prepaid expenses and other current assets |
|
|
73.1 |
|
|
|
20.8 |
|
Total current assets |
|
|
726.9 |
|
|
|
404.3 |
|
Property and equipment, net |
|
|
161.5 |
|
|
|
174.8 |
|
Finance lease right-of-use assets, net |
|
|
310.8 |
|
|
|
289.9 |
|
Operating lease right-of-use assets, net |
|
|
13.5 |
|
|
|
20.8 |
|
Content production assets, net |
|
|
15.4 |
|
|
|
20.1 |
|
Investment securities |
|
|
11.1 |
|
|
|
28.1 |
|
Deferred income tax assets, net |
|
|
10.1 |
|
|
|
7.2 |
|
Other assets, net |
|
|
48.0 |
|
|
|
47.0 |
|
Total assets |
|
$ |
1,297.3 |
|
|
$ |
992.2 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Current portion of long-term debt |
|
$ |
100.4 |
|
|
$ |
3.6 |
|
Finance lease liabilities |
|
|
9.6 |
|
|
|
7.9 |
|
Operating lease liabilities |
|
|
4.0 |
|
|
|
6.6 |
|
Convertible debt |
|
|
194.7 |
|
|
|
188.7 |
|
Accounts payable and accrued expenses |
|
|
124.7 |
|
|
|
80.6 |
|
Deferred income |
|
|
62.9 |
|
|
|
56.9 |
|
Total current liabilities |
|
|
496.3 |
|
|
|
344.3 |
|
Long-term debt |
|
|
21.7 |
|
|
|
22.1 |
|
Finance lease liabilities |
|
|
379.9 |
|
|
|
335.5 |
|
Operating lease liabilities |
|
|
9.7 |
|
|
|
14.6 |
|
Other non-current liabilities |
|
|
0.9 |
|
|
|
0.4 |
|
Total liabilities |
|
|
908.5 |
|
|
|
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 |
|
|
424.7 |
|
|
|
405.4 |
|
Accumulated other comprehensive income |
|
|
3.0 |
|
|
|
2.8 |
|
Accumulated deficit |
|
|
(39.7 |
) |
|
|
(133.7 |
) |
Total stockholders’ equity |
|
|
388.8 |
|
|
|
275.3 |
|
Total liabilities and stockholders' equity |
|
$ |
1,297.3 |
|
|
$ |
992.2 |
|
World Wrestling Entertainment, Inc. Consolidated Statements of Cash Flows (In millions) (Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
Year Ended |
||||||
|
|
December 31, |
||||||
|
|
2020 |
|
2019 |
||||
OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net income |
|
$ |
131.8 |
|
|
$ |
77.1 |
|
Adjustments to reconcile net income to net cash
|
|
|
|
|
|
|
||
Amortization and impairments of content production assets |
|
|
26.3 |
|
|
|
35.7 |
|
Depreciation and amortization |
|
|
48.5 |
|
|
|
39.6 |
|
Other amortization |
|
|
18.0 |
|
|
|
13.9 |
|
Loss on equity investments, net |
|
|
5.7 |
|
|
|
3.3 |
|
Stock-based compensation |
|
|
28.0 |
|
|
|
29.4 |
|
(Benefit from) provision for deferred income taxes |
|
|
(3.0 |
) |
|
|
9.9 |
|
Other non-cash adjustments |
|
|
22.4 |
|
|
|
8.2 |
|
Cash provided by (used in) changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
70.0 |
|
|
|
(41.5 |
) |
Inventory |
|
|
(1.3 |
) |
|
|
(0.5 |
) |
Prepaid expenses and other assets |
|
|
(12.1 |
) |
|
|
2.6 |
|
Content production assets |
|
|
(25.6 |
) |
|
|
(34.3 |
) |
Accounts payable, accrued expenses and other liabilities |
|
|
5.1 |
|
|
|
(32.0 |
) |
Deferred income |
|
|
6.1 |
|
|
|
10.3 |
|
Net cash provided by operating activities |
|
|
319.9 |
|
|
|
121.7 |
|
INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Purchases of property and equipment and other assets |
|
|
(27.6 |
) |
|
|
(69.1 |
) |
Purchases of short-term investments |
|
|
(153.9 |
) |
|
|
(124.3 |
) |
Proceeds from sales and maturities of short-term investments |
|
|
182.3 |
|
|
|
157.5 |
|
Purchase of equity investments |
|
|
(0.6 |
) |
|
|
(1.4 |
) |
Proceeds from sale of investment securities |
|
|
11.7 |
|
|
|
— |
|
Other |
|
|
— |
|
|
|
1.4 |
|
Net cash provided by (used in) investing activities |
|
|
11.9 |
|
|
|
(35.9 |
) |
FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Repayment of debt |
|
|
(103.6 |
) |
|
|
(5.1 |
) |
Repayment of finance leases |
|
|
(10.8 |
) |
|
|
(8.4 |
) |
Dividends paid |
|
|
(37.2 |
) |
|
|
(37.4 |
) |
Debt issuance costs |
|
|
— |
|
|
|
(0.7 |
) |
Proceeds from borrowings under the credit facility |
|
|
200.0 |
|
|
|
— |
|
Taxes paid related to net settlement upon vesting of equity awards |
|
|
(11.1 |
) |
|
|
(30.2 |
) |
Proceeds from issuance of stock |
|
|
2.6 |
|
|
|
2.3 |
|
Repurchase and retirement of common stock |
|
|
— |
|
|
|
(83.4 |
) |
Net cash provided by (used in) financing activities |
|
|
39.9 |
|
|
|
(162.9 |
) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
|
371.7 |
|
|
|
(77.1 |
) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
|
|
90.4 |
|
|
|
167.5 |
|
CASH AND CASH EQUIVALENTS, END OF PERIOD |
|
$ |
462.1 |
|
|
$ |
90.4 |
|
SUPPLEMENTAL CASH FLOW INFORMATION: |
|
|
|
|
|
|
||
Cash paid for income taxes, net of refunds |
|
$ |
45.6 |
|
|
$ |
7.4 |
|
Cash paid for interest |
|
$ |
12.3 |
|
|
$ |
10.7 |
|
NON-CASH INVESTING TRANSACTIONS: |
|
|
|
|
|
|
||
Purchases of property and equipment recorded in accounts payable
|
|
$ |
4.4 |
|
|
$ |
5.0 |
|
World Wrestling Entertainment, Inc. Supplemental Information – Reconciliation of Adjusted Net Income (In millions, except per share data) (Unaudited) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|||||||||||||||||
|
|
2020 |
|
2019 |
|||||||||||||||
|
|
As
|
|
Loss on Investments (1) |
|
Other Adjustments (3) |
|
Adjusted |
|
As
|
|
Adjusted |
|||||||
Operating income |
|
$ |
36.2 |
|
|
$ |
— |
|
$ |
1.5 |
|
$ |
37.7 |
|
$ |
99.8 |
|
$ |
99.8 |
Interest expense |
|
|
9.1 |
|
|
|
— |
|
|
— |
|
|
9.1 |
|
|
7.9 |
|
|
7.9 |
Other (expense) income, net |
|
|
(7.0 |
) |
|
|
8.6 |
|
|
— |
|
|
1.6 |
|
|
1.5 |
|
|
1.5 |
Income before taxes |
|
|
20.1 |
|
|
|
8.6 |
|
|
1.5 |
|
|
30.2 |
|
|
93.4 |
|
|
93.4 |
Provision for income taxes |
|
|
6.5 |
|
|
|
2.8 |
|
|
0.5 |
|
|
9.8 |
|
|
24.1 |
|
|
24.1 |
Net income |
|
$ |
13.6 |
|
|
$ |
5.8 |
|
$ |
1.0 |
|
$ |
20.4 |
|
$ |
69.3 |
|
$ |
69.3 |
Earnings per share - diluted |
|
$ |
0.16 |
|
|
$ |
0.07 |
|
$ |
0.01 |
|
$ |
0.24 |
|
$ |
0.78 |
|
$ |
0.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|||||||||||||||||
|
|
2020 |
|
2019 |
|||||||||||||||
|
|
As
|
|
Loss on Investments (2) |
|
Other Adjustments (3) |
|
Adjusted |
|
As
|
|
Adjusted |
|||||||
Operating income |
|
$ |
208.6 |
|
|
$ |
— |
|
$ |
7.0 |
|
$ |
215.6 |
|
$ |
116.5 |
|
$ |
116.5 |
Interest expense |
|
|
35.6 |
|
|
|
— |
|
|
— |
|
|
35.6 |
|
|
26.1 |
|
|
26.1 |
Other expense income, net |
|
|
(1.9 |
) |
|
|
5.7 |
|
|
— |
|
|
3.8 |
|
|
4.3 |
|
|
4.3 |
Income before taxes |
|
|
171.1 |
|
|
|
5.7 |
|
|
7.0 |
|
|
183.8 |
|
|
94.7 |
|
|
94.7 |
Provision for income taxes |
|
|
39.3 |
|
|
|
1.3 |
|
|
1.6 |
|
|
42.2 |
|
|
17.6 |
|
|
17.6 |
Net income |
|
$ |
131.8 |
|
|
$ |
4.4 |
|
$ |
5.4 |
|
$ |
141.6 |
|
$ |
77.1 |
|
$ |
77.1 |
Earnings per share - diluted |
|
$ |
1.56 |
|
|
$ |
0.05 |
|
$ |
0.06 |
|
$ |
1.68 |
|
$ |
0.85 |
|
$ |
0.85 |
(1) |
|
During the three months ended December 31, 2020, the Company recognized |
(2) |
|
During the twelve months ended December 31, 2020, the Company recognized a net loss of |
(3) |
|
During the three and twelve months ended December 31, 2020, the Company recorded severance expense of |
World Wrestling Entertainment, Inc. Supplemental Information – Reconciliation of Adjusted OIBDA (In millions, except per share data) (Unaudited) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Three Months Ended December 31, 2020 |
||||||||||||||||
|
|
Operating Income (Loss) |
|
Depreciation & Amortization |
|
Stock Compensation |
|
Other Adjustments (1) |
|
Adjusted OIBDA |
||||||||
Media |
|
$ |
67.1 |
|
|
$ |
3.7 |
|
$ |
2.2 |
|
|
$ |
— |
|
$ |
73.0 |
|
Live Events |
|
|
(7.0 |
) |
|
|
— |
|
|
0.3 |
|
|
|
— |
|
|
(6.7 |
) |
Consumer Products |
|
|
8.9 |
|
|
|
— |
|
|
0.2 |
|
|
|
— |
|
|
9.1 |
|
Corporate |
|
|
(32.8 |
) |
|
|
6.7 |
|
|
0.4 |
|
|
|
1.5 |
|
|
(24.2 |
) |
Total |
|
$ |
36.2 |
|
|
$ |
10.4 |
|
$ |
3.1 |
|
|
$ |
1.5 |
|
$ |
51.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Three Months Ended December 31, 2019 |
||||||||||||||||
|
|
Operating Income (Loss) |
|
Depreciation & Amortization |
|
Stock Compensation |
|
Other Adjustments |
|
Adjusted OIBDA |
||||||||
Media |
|
$ |
114.6 |
|
|
$ |
4.5 |
|
$ |
(2.5 |
) |
|
$ |
— |
|
$ |
116.6 |
|
Live Events |
|
|
(1.0 |
) |
|
|
— |
|
|
(0.8 |
) |
|
|
— |
|
|
(1.8 |
) |
Consumer Products |
|
|
12.8 |
|
|
|
— |
|
|
(0.5 |
) |
|
|
— |
|
|
12.3 |
|
Corporate |
|
|
(26.6 |
) |
|
|
6.1 |
|
|
1.0 |
|
|
|
— |
|
|
(19.5 |
) |
Total |
|
$ |
99.8 |
|
|
$ |
10.6 |
|
$ |
(2.8 |
) |
|
$ |
— |
|
$ |
107.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Year Ended December 31, 2020 |
||||||||||||||||
|
|
Operating Income (Loss) |
|
Depreciation & Amortization |
|
Stock Compensation |
|
Other Adjustments (1) |
|
Adjusted OIBDA |
||||||||
Media |
|
$ |
332.5 |
|
|
$ |
15.1 |
|
$ |
20.2 |
|
|
$ |
— |
|
$ |
367.8 |
|
Live Events |
|
|
(19.1 |
) |
|
|
— |
|
|
1.5 |
|
|
|
— |
|
|
(17.6 |
) |
Consumer Products |
|
|
24.8 |
|
|
|
— |
|
|
1.8 |
|
|
|
— |
|
|
26.6 |
|
Corporate |
|
|
(129.6 |
) |
|
|
27.5 |
|
|
4.5 |
|
|
|
7.0 |
|
|
(90.6 |
) |
Total |
|
$ |
208.6 |
|
|
$ |
42.6 |
|
$ |
28.0 |
|
|
$ |
7.0 |
|
$ |
286.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Year Ended December 31, 2019 |
||||||||||||||||
|
|
Operating Income (Loss) |
|
Depreciation & Amortization |
|
Stock Compensation |
|
Other Adjustments |
|
Adjusted OIBDA |
||||||||
Media |
|
$ |
190.8 |
|
|
$ |
12.6 |
|
$ |
20.7 |
|
|
$ |
— |
|
$ |
224.1 |
|
Live Events |
|
|
7.7 |
|
|
|
— |
|
|
1.7 |
|
|
|
— |
|
|
9.4 |
|
Consumer Products |
|
|
26.4 |
|
|
|
— |
|
|
2.1 |
|
|
|
— |
|
|
28.5 |
|
Corporate |
|
|
(108.4 |
) |
|
|
21.5 |
|
|
4.9 |
|
|
|
— |
|
|
(82.0 |
) |
Total |
|
$ |
116.5 |
|
|
$ |
34.1 |
|
$ |
29.4 |
|
|
$ |
— |
|
$ |
180.0 |
|
(1) |
|
During the three and twelve months ended December 31, 2020, the Company recorded severance expense of |
World Wrestling Entertainment, Inc. Supplemental Information - Free Cash Flow (In millions) (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
December 31, |
|
December 31, |
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Net cash provided by operating activities |
|
$ |
62.4 |
|
|
$ |
119.4 |
|
|
$ |
319.9 |
|
|
$ |
121.7 |
|
Less cash used for capital expenditures: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Purchase of property and equipment and other assets |
|
|
(6.2 |
) |
|
|
(12.8 |
) |
|
|
(27.6 |
) |
|
|
(69.1 |
) |
Free Cash Flow |
|
$ |
56.2 |
|
|
$ |
106.6 |
|
|
$ |
292.3 |
|
|
$ |
52.6 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210204005999/en/
FAQ
What were WWE's Q4 2020 financial results?
How did WWE perform in 2020 overall?
What impact did COVID-19 have on WWE's finances?
What is WWE's outlook for 2021?
What new agreements has WWE signed recently?
