( X )
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
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ACT OF 1934
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For the quarterly period ended September 30, 2013
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or
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||
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( )
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
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ACT OF 1934
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For the transition period from ______ to ______
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Commission file number 001-16131
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Delaware
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04-2693383
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(State or other jurisdiction of
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(I.R.S. Employer
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incorporation or organization)
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Identification No.)
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Yes
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X
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No
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Yes
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X
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No
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Large accelerated filer
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o
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Accelerated filer
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ý
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Non-accelerated filer
|
o
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(Do not check if a smaller reporting company)
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Smaller reporting company
|
o
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Yes
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No
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X
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Page #
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Part I – FINANCIAL INFORMATION
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Item 1. Consolidated Financial Statements (unaudited)
|
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|||
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Three Months Ended
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Nine Months Ended
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||||||||||||
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September 30,
2013 |
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September 30,
2012 |
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September 30,
2013 |
|
September 30,
2012 |
||||||||
Net revenues
|
$
|
113,292
|
|
|
$
|
104,197
|
|
|
$
|
389,575
|
|
|
$
|
368,913
|
|
Cost of revenues (including amortization and impairments of feature film and television production assets of $12,039 and $2,132, respectively, and $19,485 and $7,776, respectively)
|
70,947
|
|
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61,406
|
|
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242,668
|
|
|
215,287
|
|
||||
Selling, general and administrative expenses
|
32,640
|
|
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32,459
|
|
|
110,976
|
|
|
98,920
|
|
||||
Depreciation and amortization
|
6,503
|
|
|
5,307
|
|
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17,819
|
|
|
14,046
|
|
||||
Operating income
|
3,202
|
|
|
5,025
|
|
|
18,112
|
|
|
40,660
|
|
||||
Investment income, net
|
264
|
|
|
635
|
|
|
1,102
|
|
|
1,679
|
|
||||
Interest expense
|
(438
|
)
|
|
(457
|
)
|
|
(1,270
|
)
|
|
(1,354
|
)
|
||||
Other income (expense), net
|
313
|
|
|
(203
|
)
|
|
(1,420
|
)
|
|
(746
|
)
|
||||
Income before income taxes
|
3,341
|
|
|
5,000
|
|
|
16,524
|
|
|
40,239
|
|
||||
Provision for income taxes
|
902
|
|
|
1,473
|
|
|
5,870
|
|
|
9,440
|
|
||||
Net income
|
$
|
2,439
|
|
|
$
|
3,527
|
|
|
$
|
10,654
|
|
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$
|
30,799
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic and diluted
|
$
|
0.03
|
|
|
$
|
0.05
|
|
|
$
|
0.14
|
|
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$
|
0.41
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
75,030
|
|
|
74,681
|
|
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74,885
|
|
|
74,542
|
|
||||
Diluted
|
75,388
|
|
|
74,845
|
|
|
75,335
|
|
|
74,864
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
2013 |
|
September 30,
2012 |
|
September 30,
2013 |
|
September 30,
2012 |
||||||||
Net income
|
$
|
2,439
|
|
|
$
|
3,527
|
|
|
$
|
10,654
|
|
|
$
|
30,799
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
73
|
|
|
105
|
|
|
(107
|
)
|
|
180
|
|
||||
Unrealized holding gain/(loss) - available-for-sale securities (net of tax (benefit)/expense of $49 and $36, respectively, and ($225) and $516, respectively)
|
79
|
|
|
59
|
|
|
(367
|
)
|
|
841
|
|
||||
Reclassification adjustment for gains realized in net income - available-for-sale securities (net of tax expense of $0 and $66, respectively, and $1 and $75, respectively)
|
—
|
|
|
(107
|
)
|
|
(1
|
)
|
|
(121
|
)
|
||||
Total other comprehensive income (loss)
|
152
|
|
|
57
|
|
|
(475
|
)
|
|
900
|
|
||||
Comprehensive income
|
$
|
2,591
|
|
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$
|
3,584
|
|
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$
|
10,179
|
|
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$
|
31,699
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As of
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||||||
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September 30,
2013 |
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December 31,
2012 |
||||
ASSETS
|
|
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|
||||
CURRENT ASSETS:
|
|
|
|
||||
Cash and cash equivalents
|
$
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37,081
|
|
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$
|
66,048
|
|
Short-term investments, net
|
77,743
|
|
|
86,326
|
|
||
Accounts receivable (net of allowances for doubtful accounts and returns
|
|
|
|
||||
of $8,940 and $14,691, respectively)
|
69,537
|
|
|
50,716
|
|
||
Inventory
|
2,532
|
|
|
1,770
|
|
||
Deferred income tax assets
|
11,048
|
|
|
14,403
|
|
||
Prepaid expenses and other current assets
|
15,536
|
|
|
15,269
|
|
||
Total current assets
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213,477
|
|
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234,532
|
|
||
PROPERTY AND EQUIPMENT, NET
|
133,194
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|
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102,162
|
|
||
FEATURE FILM PRODUCTION ASSETS, NET
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17,195
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|
|
23,691
|
|
||
TELEVISION PRODUCTION ASSETS, NET
|
10,992
|
|
|
6,331
|
|
||
INVESTMENT SECURITIES
|
7,859
|
|
|
5,220
|
|
||
OTHER ASSETS
|
8,792
|
|
|
9,447
|
|
||
TOTAL ASSETS
|
$
|
391,509
|
|
|
$
|
381,383
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
CURRENT LIABILITIES:
|
|
|
|
||||
Current portion of long-term debt
|
$
|
4,228
|
|
|
$
|
—
|
|
Accounts payable and accrued expenses
|
41,596
|
|
|
48,954
|
|
||
Deferred income
|
30,320
|
|
|
28,611
|
|
||
Total current liabilities
|
76,144
|
|
|
77,565
|
|
||
LONG-TERM DEBT
|
25,164
|
|
|
—
|
|
||
NON-CURRENT INCOME TAX LIABILITIES
|
9,336
|
|
|
9,092
|
|
||
COMMITMENTS AND CONTINGENCIES
|
|
|
|
||||
STOCKHOLDERS’ EQUITY:
|
|
|
|
||||
Class A common stock: ($.01 par value; 180,000,000 shares authorized;
|
|
|
|
||||
30,789,056 and 29,253,665 shares issued and outstanding as of
|
|
|
|
||||
September 30, 2013 and December 31, 2012, respectively)
|
308
|
|
|
293
|
|
||
Class B convertible common stock: ($.01 par value; 60,000,000 shares authorized;
|
|
|
|
||||
44,302,830 and 45,500,830 shares issued and outstanding as of
|
|
|
|
||||
September 30, 2013 and December 31, 2012, respectively)
|
443
|
|
|
455
|
|
||
Additional paid-in-capital
|
344,939
|
|
|
341,762
|
|
||
Accumulated other comprehensive income
|
3,556
|
|
|
4,031
|
|
||
Accumulated deficit
|
(68,381
|
)
|
|
(51,815
|
)
|
||
Total stockholders’ equity
|
280,865
|
|
|
294,726
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
391,509
|
|
|
$
|
381,383
|
|
|
Common Stock
|
|
Additional
|
|
Accumulated
Other
|
|
|
|
|
||||||||||||||||||||
|
Class A
|
|
Class B
|
|
Paid - in
|
|
Comprehensive
|
|
Accumulated
|
|
|
||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Income
|
|
Deficit
|
|
Total
|
||||||||||||||
Balance, December 31, 2012
|
29,254
|
|
|
$
|
293
|
|
|
45,501
|
|
|
$
|
455
|
|
|
$
|
341,762
|
|
|
$
|
4,031
|
|
|
$
|
(51,815
|
)
|
|
$
|
294,726
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,654
|
|
|
10,654
|
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(475
|
)
|
|
—
|
|
|
(475
|
)
|
||||||
Stock issuances, net
|
337
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
(842
|
)
|
|
—
|
|
|
—
|
|
|
(839
|
)
|
||||||
Conversion of Class B common stock by shareholder
|
1,198
|
|
|
12
|
|
|
(1,198
|
)
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Excess tax benefits from stock-based payment arrangements
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
223
|
|
|
—
|
|
|
—
|
|
|
223
|
|
||||||
Dividends paid
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
253
|
|
|
—
|
|
|
(27,220
|
)
|
|
(26,967
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,543
|
|
|
—
|
|
|
—
|
|
|
3,543
|
|
||||||
Balance, September 30, 2013
|
30,789
|
|
|
$
|
308
|
|
|
44,303
|
|
|
$
|
443
|
|
|
$
|
344,939
|
|
|
$
|
3,556
|
|
|
$
|
(68,381
|
)
|
|
$
|
280,865
|
|
|
Nine Months Ended
|
||||||
|
September 30,
2013 |
|
September 30,
2012 |
||||
OPERATING ACTIVITIES:
|
|
|
|
||||
Net income
|
$
|
10,654
|
|
|
$
|
30,799
|
|
Adjustments to reconcile net income to net cash (used in)/provided by operating
|
|
|
|
||||
activities:
|
|
|
|
||||
Amortization and impairments of feature film and television production assets
|
19,485
|
|
|
7,776
|
|
||
Depreciation and amortization
|
17,819
|
|
|
14,046
|
|
||
Amortization of bond premium
|
391
|
|
|
1,745
|
|
||
Amortization of debt issuance costs
|
1,559
|
|
|
461
|
|
||
Stock-based compensation
|
3,543
|
|
|
2,791
|
|
||
(Recovery from) provision for doubtful accounts
|
(356
|
)
|
|
1,204
|
|
||
Services provided in exchange for equity instruments
|
(659
|
)
|
|
219
|
|
||
Loss on disposal of property and equipment
|
335
|
|
|
40
|
|
||
Provision for deferred income taxes
|
4,040
|
|
|
2,052
|
|
||
Other non-cash adjustments
|
(252
|
)
|
|
(202
|
)
|
||
Cash (used in)/provided by changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(17,913
|
)
|
|
(2,820
|
)
|
||
Inventory
|
(761
|
)
|
|
(531
|
)
|
||
Prepaid expenses and other assets
|
(541
|
)
|
|
(2,488
|
)
|
||
Feature film production assets
|
(6,706
|
)
|
|
(6,975
|
)
|
||
Television production assets
|
(8,687
|
)
|
|
(5,507
|
)
|
||
Accounts payable and accrued expenses
|
(11,506
|
)
|
|
(1,585
|
)
|
||
Deferred income
|
1,709
|
|
|
(49
|
)
|
||
Net cash provided by operating activities
|
12,154
|
|
|
40,976
|
|
||
INVESTING ACTIVITIES:
|
|
|
|
||||
Purchases of property and equipment and other assets
|
(18,302
|
)
|
|
(26,697
|
)
|
||
Purchase of corporate aircraft and related improvements
|
(29,730
|
)
|
|
—
|
|
||
Purchases of short-term investments
|
(24,112
|
)
|
|
(18,639
|
)
|
||
Proceeds from sales and maturities of investments
|
30,543
|
|
|
37,271
|
|
||
Purchase of cost method investments
|
(2,200
|
)
|
|
(5,000
|
)
|
||
Proceeds from sales of property and equipment
|
38
|
|
|
—
|
|
||
Net cash used in investing activities
|
(43,763
|
)
|
|
(13,065
|
)
|
||
FINANCING ACTIVITIES:
|
|
|
|
||||
Proceeds from the issuance of note payable
|
29,730
|
|
|
—
|
|
||
Repayment of long-term debt
|
(348
|
)
|
|
(1,621
|
)
|
||
Dividends paid
|
(26,967
|
)
|
|
(26,845
|
)
|
||
Debt issuance costs
|
(674
|
)
|
|
—
|
|
||
Issuance of stock, net
|
640
|
|
|
751
|
|
||
Excess tax benefits from stock-based payment arrangements
|
261
|
|
|
6
|
|
||
Net cash provided by/(used in) financing activities
|
2,642
|
|
|
(27,709
|
)
|
||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
(28,967
|
)
|
|
202
|
|
||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
66,048
|
|
|
52,491
|
|
||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
37,081
|
|
|
$
|
52,693
|
|
NON-CASH INVESTING AND FINANCING TRANSACTIONS:
|
|
|
|
||||
Non-cash purchase of property and equipment and other assets
|
1,611
|
|
|
1,609
|
|
•
|
Revenues consist principally of ticket sales to live events, sales of merchandise at these live events, television rights fees, integrated sponsorships fees, and fees for viewing our pay-per-view and video-on-demand programming.
|
•
|
Revenues consist principally of sales of WWE produced content via home entertainment platforms, magazine sales and royalties or license fees related to various WWE themed products such as video games, toys and apparel.
|
•
|
Revenues consist principally of advertising sales on our websites, rights fees received for digital content, sale of merchandise on our website through our WWEShop internet storefront and sales of various broadband and mobile content.
|
•
|
Revenues consist of amounts earned from the distribution of filmed entertainment.
|
|
|
Units
|
|
Weighted-Average Grant-Date Fair Value
|
|||
Unvested at January 1, 2013
|
|
146,175
|
|
|
$
|
9.97
|
|
Granted
|
|
40,477
|
|
|
$
|
9.31
|
|
Vested
|
|
(60,538
|
)
|
|
$
|
10.12
|
|
Forfeited
|
|
(17,582
|
)
|
|
$
|
9.38
|
|
Dividend equivalents
|
|
5,000
|
|
|
$
|
9.23
|
|
Unvested at September 30, 2013
|
|
113,532
|
|
|
$
|
9.37
|
|
|
|
Units
|
|
Weighted-Average Grant-Date Fair Value
|
|||
Unvested at January 1, 2013
|
|
685,703
|
|
|
$
|
8.37
|
|
Granted
|
|
932,786
|
|
|
$
|
9.94
|
|
Vested
|
|
(314,008
|
)
|
|
$
|
9.35
|
|
Forfeited
|
|
(69,560
|
)
|
|
$
|
9.20
|
|
Dividend equivalents
|
|
25,902
|
|
|
$
|
9.45
|
|
Unvested at September 30, 2013
|
|
1,260,823
|
|
|
$
|
9.52
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
2013 |
|
September 30,
2012 |
|
September 30,
2013 |
|
September 30,
2012 |
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||||
Live and Televised Entertainment
|
$
|
89,532
|
|
|
$
|
79,049
|
|
|
$
|
294,735
|
|
|
$
|
271,804
|
|
Consumer Products
|
13,339
|
|
|
15,834
|
|
|
62,247
|
|
|
67,419
|
|
||||
Digital Media
|
8,609
|
|
|
7,442
|
|
|
26,758
|
|
|
22,376
|
|
||||
WWE Studios
|
1,812
|
|
|
1,872
|
|
|
5,835
|
|
|
7,314
|
|
||||
Total net revenues
|
$
|
113,292
|
|
|
$
|
104,197
|
|
|
$
|
389,575
|
|
|
$
|
368,913
|
|
OIBDA:
|
|
|
|
|
|
|
|
||||||||
Live and Televised Entertainment
|
$
|
35,390
|
|
|
$
|
30,534
|
|
|
$
|
95,312
|
|
|
$
|
99,284
|
|
Consumer Products
|
5,395
|
|
|
6,879
|
|
|
36,515
|
|
|
37,644
|
|
||||
Digital Media
|
3,573
|
|
|
3,175
|
|
|
6,954
|
|
|
6,824
|
|
||||
WWE Studios
|
(7,417
|
)
|
|
(2,014
|
)
|
|
(12,789
|
)
|
|
(4,297
|
)
|
||||
Unallocated Corporate
|
(27,236
|
)
|
|
(28,242
|
)
|
|
(90,061
|
)
|
|
(84,749
|
)
|
||||
Total OIBDA
|
$
|
9,705
|
|
|
$
|
10,332
|
|
|
$
|
35,931
|
|
|
$
|
54,706
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
2013 |
|
September 30,
2012 |
|
September 30,
2013 |
|
September 30,
2012 |
||||||||
Total operating income
|
$
|
3,202
|
|
|
$
|
5,025
|
|
|
$
|
18,112
|
|
|
$
|
40,660
|
|
Depreciation and amortization
|
6,503
|
|
|
5,307
|
|
|
17,819
|
|
|
14,046
|
|
||||
Total OIBDA
|
$
|
9,705
|
|
|
$
|
10,332
|
|
|
$
|
35,931
|
|
|
$
|
54,706
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
2013 |
|
September 30,
2012 |
|
September 30,
2013 |
|
September 30,
2012 |
||||||||
North America
|
$
|
87,341
|
|
|
$
|
79,972
|
|
|
$
|
304,190
|
|
|
$
|
278,343
|
|
Europe/Middle East/Africa
|
11,249
|
|
|
9,465
|
|
|
51,406
|
|
|
51,584
|
|
||||
Asia Pacific
|
13,737
|
|
|
13,284
|
|
|
29,580
|
|
|
30,144
|
|
||||
Latin America
|
965
|
|
|
1,476
|
|
|
4,399
|
|
|
8,842
|
|
||||
Total net revenues
|
$
|
113,292
|
|
|
$
|
104,197
|
|
|
$
|
389,575
|
|
|
$
|
368,913
|
|
|
|
As of
|
||||||
|
|
September 30,
2013 |
|
December 31,
2012 |
||||
Land, buildings and improvements
|
|
$
|
105,178
|
|
|
$
|
97,551
|
|
Equipment
|
|
103,462
|
|
|
93,316
|
|
||
Corporate aircraft
|
|
50,588
|
|
|
20,858
|
|
||
Vehicles
|
|
244
|
|
|
1,474
|
|
||
|
|
259,472
|
|
|
213,199
|
|
||
Less accumulated depreciation
|
|
(126,278
|
)
|
|
(111,037
|
)
|
||
Total
|
|
$
|
133,194
|
|
|
$
|
102,162
|
|
|
|
As of
|
||||||
|
|
September 30,
2013 |
|
December 31,
2012 |
||||
Feature film productions:
|
|
|
|
|
||||
In release
|
|
$
|
9,620
|
|
|
$
|
13,238
|
|
Completed but not released
|
|
4,418
|
|
|
7,849
|
|
||
In production
|
|
2,407
|
|
|
1,977
|
|
||
In development
|
|
750
|
|
|
627
|
|
||
Total
|
|
$
|
17,195
|
|
|
$
|
23,691
|
|
|
September 30, 2013
|
|
December 31, 2012
|
||||||||||||||||||||||||||||
|
|
|
Gross Unrealized
|
|
|
|
|
|
Gross Unrealized
|
|
|
||||||||||||||||||||
|
Amortized
Cost
|
|
Gain
|
|
(Loss)
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Gain
|
|
(Loss)
|
|
Fair
Value
|
||||||||||||||||
Municipal bonds
|
$
|
56,643
|
|
|
$
|
248
|
|
|
$
|
(173
|
)
|
|
$
|
56,718
|
|
|
$
|
68,517
|
|
|
$
|
566
|
|
|
$
|
(84
|
)
|
|
$
|
68,999
|
|
Corporate bonds
|
21,067
|
|
|
86
|
|
|
(128
|
)
|
|
21,025
|
|
|
17,182
|
|
|
145
|
|
|
—
|
|
|
17,327
|
|
||||||||
Total
|
$
|
77,710
|
|
|
$
|
334
|
|
|
$
|
(301
|
)
|
|
$
|
77,743
|
|
|
$
|
85,699
|
|
|
$
|
711
|
|
|
$
|
(84
|
)
|
|
$
|
86,326
|
|
|
Maturities
|
Municipal bonds
|
1 month-10 years
|
Corporate bonds
|
3 months-5 years
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
2013 |
|
September 30,
2012 |
|
September 30,
2013 |
|
September 30,
2012 |
||||||||
Proceeds from sale of short-term investments
|
$
|
—
|
|
|
$
|
13,478
|
|
|
$
|
2,793
|
|
|
$
|
16,486
|
|
Proceeds from maturities and calls of short-term investments
|
7,480
|
|
|
4,175
|
|
|
27,750
|
|
|
20,785
|
|
||||
Gross realized gains on sale of short-term investments
|
—
|
|
|
173
|
|
|
1
|
|
|
196
|
|
Level 1-
|
quoted prices in active markets for identical assets or liabilities;
|
Level 2-
|
quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability; or
|
Level 3-
|
unobservable inputs, such as discounted cash flow models or valuations
|
|
|
Fair Value at September 30, 2013
|
|
Fair Value at December 31, 2012
|
||||||||||||||||||||||||||||
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||||||
Municipal bonds
|
|
$
|
56,718
|
|
|
$
|
—
|
|
|
$
|
56,718
|
|
|
$
|
—
|
|
|
$
|
68,999
|
|
|
$
|
—
|
|
|
$
|
68,999
|
|
|
$
|
—
|
|
Corporate bonds
|
|
21,025
|
|
|
—
|
|
|
21,025
|
|
|
—
|
|
|
17,327
|
|
|
—
|
|
|
17,327
|
|
|
—
|
|
||||||||
Total
|
|
$
|
77,743
|
|
|
$
|
—
|
|
|
$
|
77,743
|
|
|
$
|
—
|
|
|
$
|
86,326
|
|
|
$
|
—
|
|
|
$
|
86,326
|
|
|
$
|
—
|
|
|
|
As of
|
||||||
|
|
September 30,
2013 |
|
December 31,
2012 |
||||
Trade related
|
|
$
|
6,106
|
|
|
$
|
7,364
|
|
Payroll and related benefits
|
|
11,380
|
|
|
16,099
|
|
||
Talent related
|
|
6,318
|
|
|
9,805
|
|
||
Accrued event and television production
|
|
3,918
|
|
|
5,122
|
|
||
Accrued home entertainment expenses
|
|
1,599
|
|
|
1,989
|
|
||
Accrued legal and professional
|
|
1,727
|
|
|
1,243
|
|
||
Accrued purchases of property and equipment and other assets
|
|
1,611
|
|
|
1,415
|
|
||
Accrued film liability
|
|
2,875
|
|
|
572
|
|
||
Accrued other
|
|
6,062
|
|
|
5,345
|
|
||
Total
|
|
$
|
41,596
|
|
|
$
|
48,954
|
|
Remainder of 2013
|
|
$
|
1,048
|
|
December 31, 2014
|
|
4,251
|
|
|
December 31, 2015
|
|
4,345
|
|
|
December 31, 2016
|
|
4,440
|
|
|
December 31, 2017
|
|
4,538
|
|
|
December 31, 2018
|
|
4,638
|
|
|
Thereafter
|
|
7,960
|
|
|
|
|
$
|
31,220
|
|
•
|
Revenues consist principally of ticket sales to live events, sales of merchandise at these live events, television rights fees, integrated sponsorship fees, and fees for viewing our pay-per-view and video-on-demand programming.
|
•
|
Revenues consist principally of sales of WWE produced content via home entertainment platforms, magazine sales and royalties or license fees related to various WWE themed products such as video games, toys and apparel.
|
•
|
Revenues consist principally of advertising sales on our websites, rights fees received for digital content, sale of merchandise on our website through our WWEShop internet storefront and sales of various broadband and mobile content.
|
•
|
Revenues consist of amounts earned from the distribution of filmed entertainment.
|
|
|
Three Months Ended
|
|
|
|||||||
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
Net Revenues
|
|
|
|
|
|
|
|||||
Live and Televised Entertainment
|
|
$
|
89.5
|
|
|
$
|
79.0
|
|
|
13
|
%
|
Consumer Products
|
|
13.4
|
|
|
15.8
|
|
|
(15
|
)%
|
||
Digital Media
|
|
8.6
|
|
|
7.5
|
|
|
15
|
%
|
||
WWE Studios
|
|
1.8
|
|
|
1.9
|
|
|
(5
|
)%
|
||
Total
|
|
113.3
|
|
|
104.2
|
|
|
9
|
%
|
||
|
|
|
|
|
|
|
|||||
OIBDA
|
|
|
|
|
|
|
|
|
|||
Live and Televised Entertainment
|
|
35.4
|
|
|
30.5
|
|
|
16
|
%
|
||
Consumer Products
|
|
5.4
|
|
|
6.8
|
|
|
(21
|
)%
|
||
Digital Media
|
|
3.6
|
|
|
3.2
|
|
|
13
|
%
|
||
WWE Studios
|
|
(7.4
|
)
|
|
(2.0
|
)
|
|
270
|
%
|
||
Unallocated Corporate Expenses
|
|
(27.3
|
)
|
|
(28.2
|
)
|
|
(3
|
)%
|
||
Total
|
|
9.7
|
|
|
10.3
|
|
|
(6
|
)%
|
||
OIBDA as a percentage of revenues
|
|
9
|
%
|
|
10
|
%
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization expense
|
|
6.5
|
|
|
5.3
|
|
|
23
|
%
|
||
Operating income
|
|
3.2
|
|
|
5.0
|
|
|
(36
|
)%
|
||
Investment and other income, net
|
|
0.1
|
|
|
—
|
|
|
100
|
%
|
||
Income before income taxes
|
|
3.3
|
|
|
5.0
|
|
|
(34
|
)%
|
||
Provision for income taxes
|
|
0.9
|
|
|
1.5
|
|
|
(40
|
)%
|
||
Net income
|
|
$
|
2.4
|
|
|
$
|
3.5
|
|
|
(31
|
)%
|
|
|
Three Months Ended
|
|
|
|||||||
Revenues- Live and Televised Entertainment
(dollars in millions except where noted)
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
Live events
|
|
$
|
25.0
|
|
|
$
|
22.8
|
|
|
10
|
%
|
North America
|
|
$
|
17.5
|
|
|
$
|
17.0
|
|
|
3
|
%
|
International
|
|
$
|
7.5
|
|
|
$
|
5.8
|
|
|
29
|
%
|
Total live event attendance
|
|
435,200
|
|
|
426,200
|
|
|
2
|
%
|
||
Number of North American events
|
|
62
|
|
|
70
|
|
|
(11
|
)%
|
||
Average North American attendance
|
|
5,500
|
|
|
5,200
|
|
|
6
|
%
|
||
Average North American ticket price (dollars)
|
|
$
|
46.78
|
|
|
$
|
42.73
|
|
|
9
|
%
|
Number of international events
|
|
14
|
|
|
7
|
|
|
100
|
%
|
||
Average international attendance
|
|
6,700
|
|
|
8,400
|
|
|
(20
|
)%
|
||
Average international ticket price (dollars)
|
|
$
|
72.30
|
|
|
$
|
98.23
|
|
|
(26
|
)%
|
Venue merchandise
|
|
$
|
4.0
|
|
|
$
|
4.5
|
|
|
(11
|
)%
|
Domestic per capita spending (dollars)
|
|
$
|
9.53
|
|
|
$
|
10.68
|
|
|
(11
|
)%
|
Pay-per-view
|
|
$
|
14.6
|
|
|
$
|
16.3
|
|
|
(10
|
)%
|
Number of pay-per-view events
|
|
3
|
|
|
3
|
|
|
—
|
%
|
||
Number of buys from pay-per-view events
|
|
761,000
|
|
|
789,000
|
|
|
(4
|
)%
|
||
Average revenue per buy (dollars)
|
|
$
|
19.35
|
|
|
$
|
20.57
|
|
|
(6
|
)%
|
Domestic retail price excluding
WrestleMania
(dollars)
|
|
$
|
44.95
|
|
|
$
|
44.95
|
|
|
—
|
%
|
Television rights fees
|
|
$
|
44.1
|
|
|
$
|
34.0
|
|
|
30
|
%
|
Domestic
|
|
$
|
30.5
|
|
|
$
|
21.3
|
|
|
43
|
%
|
International
|
|
$
|
13.6
|
|
|
$
|
12.7
|
|
|
7
|
%
|
Other
|
|
$
|
1.8
|
|
|
$
|
1.4
|
|
|
29
|
%
|
Total Live and Televised Entertainment
|
|
$
|
89.5
|
|
|
$
|
79.0
|
|
|
13
|
%
|
Ratings
|
|
|
|
|
|
|
|||||
Average weekly household ratings for
RAW
|
|
3.3
|
|
|
3.4
|
|
|
(3
|
)%
|
||
Average weekly household ratings for
SmackDown
|
|
2.2
|
|
|
2.2
|
|
|
—
|
%
|
||
Average weekly household ratings for
WWE Main Event
|
|
0.9
|
|
|
N/A
|
|
|
|
|
|
Three Months Ended
|
|
|
|||||||
OIBDA-Live and Televised Entertainment
(dollars in millions)
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
Live events
|
|
$
|
5.6
|
|
|
$
|
5.0
|
|
|
12
|
%
|
Venue merchandise
|
|
1.7
|
|
|
1.5
|
|
|
13
|
%
|
||
Pay-per-view
|
|
8.3
|
|
|
9.7
|
|
|
(14
|
)%
|
||
Television rights fees
|
|
21.8
|
|
|
15.5
|
|
|
41
|
%
|
||
Other
|
|
(2.0
|
)
|
|
(1.2
|
)
|
|
67
|
%
|
||
Total
|
|
$
|
35.4
|
|
|
$
|
30.5
|
|
|
16
|
%
|
OIBDA as a percentage of revenues
|
|
40
|
%
|
|
39
|
%
|
|
|
|
|
Three Months Ended
|
|
|
|||||||
Revenues-Consumer Products
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
Licensing
|
|
$
|
5.7
|
|
|
$
|
7.1
|
|
|
(20
|
)%
|
Home entertainment
|
|
$
|
5.2
|
|
|
$
|
6.4
|
|
|
(19
|
)%
|
Gross units shipped
|
|
718,200
|
|
|
933,100
|
|
|
(23
|
)%
|
||
Magazine publishing
|
|
$
|
1.5
|
|
|
$
|
1.6
|
|
|
(6
|
)%
|
Net units sold
|
|
444,700
|
|
|
533,300
|
|
|
(17
|
)%
|
||
Other
|
|
$
|
1.0
|
|
|
$
|
0.7
|
|
|
43
|
%
|
Total
|
|
$
|
13.4
|
|
|
$
|
15.8
|
|
|
(15
|
)%
|
|
|
Three Months Ended
|
|
|
|||||||
OIBDA-Consumer Products
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
Licensing
|
|
$
|
3.3
|
|
|
$
|
4.0
|
|
|
(18
|
)%
|
Home entertainment
|
|
1.9
|
|
|
2.5
|
|
|
(24
|
)%
|
||
Magazine publishing
|
|
0.1
|
|
|
0.2
|
|
|
(50
|
)%
|
||
Other
|
|
0.1
|
|
|
0.1
|
|
|
—
|
%
|
||
Total
|
|
$
|
5.4
|
|
|
$
|
6.8
|
|
|
(21
|
)%
|
OIBDA as a percentage of revenues
|
|
40
|
%
|
|
43
|
%
|
|
|
|
|
Three Months Ended
|
|
|
|||||||
Revenues-Digital Media
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
WWE.com
|
|
$
|
5.7
|
|
|
$
|
4.8
|
|
|
19
|
%
|
WWEShop
|
|
2.9
|
|
|
2.7
|
|
|
7
|
%
|
||
Total
|
|
$
|
8.6
|
|
|
$
|
7.5
|
|
|
15
|
%
|
Average WWEShop revenues per order (dollars)
|
|
$
|
48.87
|
|
|
$
|
47.77
|
|
|
2
|
%
|
|
|
Three Months Ended
|
|
|
|||||||
OIBDA-Digital Media
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
WWE.com
|
|
$
|
3.1
|
|
|
$
|
3.0
|
|
|
3
|
%
|
WWEShop
|
|
0.5
|
|
|
0.2
|
|
|
150
|
%
|
||
Total
|
|
$
|
3.6
|
|
|
$
|
3.2
|
|
|
13
|
%
|
OIBDA as a percentage of revenues
|
|
42
|
%
|
|
43
|
%
|
|
|
|
|
|
|
|
|
Feature
Film
Production
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
Assets-net as of
|
|
|
|
|
|
For the Three Months Ended September 30,
|
||||||||||||||||||||||
|
|
|
|
|
|
Sept 30,
|
|
Inception to-date
|
|
Revenue
|
|
OIBDA
|
||||||||||||||||||||||
Title
|
|
Release Date
|
|
Production Costs*
|
|
2013
|
|
Revenue
|
|
OIBDA
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
12 Rounds 2: Reloaded
|
|
June 2013
|
|
$
|
1.5
|
|
|
$
|
1.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$ N/A
|
|
|
$
|
—
|
|
|
$ N/A
|
|
||
No One Lives
|
|
May 2013
|
|
2.2
|
|
|
0.5
|
|
|
0.8
|
|
|
(0.9
|
)
|
|
0.1
|
|
|
N/A
|
|
|
(0.9
|
)
|
|
N/A
|
|
||||||||
The Call
|
|
Mar 2013
|
|
1.0
|
|
|
1.0
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
|
N/A
|
|
||||||||
Dead Man Down
|
|
Mar 2013
|
|
5.8
|
|
|
1.0
|
|
|
—
|
|
|
(4.7
|
)
|
|
—
|
|
|
N/A
|
|
|
—
|
|
|
N/A
|
|
||||||||
The Marine 3: Homefront
|
|
Mar 2013
|
|
1.5
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
|
N/A
|
|
||||||||
|
|
|
|
12.0
|
|
|
5.3
|
|
|
0.9
|
|
|
(5.5
|
)
|
|
0.1
|
|
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
||||||||
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
The Day
|
|
Nov 2012
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.1
|
|
|
0.2
|
|
|
N/A
|
|
|
—
|
|
|
N/A
|
|
||||||||
Barricade
|
|
Sept 2012
|
|
4.1
|
|
|
0.1
|
|
|
1.2
|
|
|
(4.0
|
)
|
|
0.1
|
|
|
0.9
|
|
|
(0.3
|
)
|
|
(0.5
|
)
|
||||||||
No Holds Barred
|
|
July 2012
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|
0.3
|
|
|
0.1
|
|
|
0.5
|
|
|
0.1
|
|
|
0.2
|
|
||||||||
Bending The Rules
|
|
Mar 2012
|
|
5.5
|
|
|
0.1
|
|
|
1.0
|
|
|
(5.4
|
)
|
|
—
|
|
|
(0.4
|
)
|
|
(0.7
|
)
|
|
(0.4
|
)
|
||||||||
|
|
|
|
9.6
|
|
|
0.2
|
|
|
3.0
|
|
|
(9.0
|
)
|
|
0.4
|
|
|
1.0
|
|
|
(0.9
|
)
|
|
(0.7
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Prior Releases
|
|
|
|
106.7
|
|
|
4.1
|
|
|
98.2
|
|
|
(22.9
|
)
|
|
1.3
|
|
|
0.9
|
|
|
(4.7
|
)
|
|
(0.3
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Completed but not released
|
|
4.4
|
|
|
4.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
In production
|
|
|
|
2.4
|
|
|
2.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
In development
|
|
|
|
0.8
|
|
|
0.8
|
|
|
—
|
|
|
(4.1
|
)
|
|
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
||||||||
Sub-total
|
|
|
|
$
|
135.9
|
|
|
$
|
17.2
|
|
|
$
|
102.1
|
|
|
$
|
(41.5
|
)
|
|
$
|
1.8
|
|
|
$
|
1.9
|
|
|
$
|
(6.5
|
)
|
|
$
|
(1.5
|
)
|
Selling, General & Administrative Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.9
|
)
|
|
(0.5
|
)
|
|||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(7.4
|
)
|
|
$
|
(2.0
|
)
|
|
|
Three Months Ended
|
|
|
|||||||
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
Staff related
|
|
$
|
12.4
|
|
|
$
|
11.9
|
|
|
4
|
%
|
Management incentive compensation
|
|
0.5
|
|
|
2.6
|
|
|
(81
|
)%
|
||
Legal, accounting and other professional
|
|
4.9
|
|
|
3.6
|
|
|
36
|
%
|
||
Travel and entertainment expense
|
|
1.3
|
|
|
1.0
|
|
|
30
|
%
|
||
Advertising, marketing and promotion
|
|
1.3
|
|
|
1.2
|
|
|
8
|
%
|
||
Corporate insurance
|
|
1.2
|
|
|
0.9
|
|
|
33
|
%
|
||
Bad debt (recovery) expense
|
|
(0.2
|
)
|
|
0.3
|
|
|
(167
|
)%
|
||
All other
|
|
5.9
|
|
|
6.7
|
|
|
(12
|
)%
|
||
Total unallocated corporate expenses
|
|
$
|
27.3
|
|
|
$
|
28.2
|
|
|
(3
|
)%
|
Unallocated corporate expenses as a percentage of net revenues
|
|
24
|
%
|
|
27
|
%
|
|
|
|
|
Three Months Ended
|
|
|
|||||||
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
Depreciation and amortization
|
|
$
|
6.5
|
|
|
$
|
5.3
|
|
|
23
|
%
|
|
|
Three Months Ended
|
|
|
|||||||
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
Investment income, interest expense and other income, net
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
100
|
%
|
|
|
Three Months Ended
|
|
|
|||||||
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
Provision for income taxes
|
|
$
|
0.9
|
|
|
$
|
1.5
|
|
|
(40
|
)%
|
Effective tax rate
|
|
27
|
%
|
|
30
|
%
|
|
|
|
|
Nine Months Ended
|
|
|
|||||||
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
Net Revenues
|
|
|
|
|
|
|
|||||
Live and Televised Entertainment
|
|
$
|
294.7
|
|
|
$
|
271.8
|
|
|
8
|
%
|
Consumer Products
|
|
62.3
|
|
|
67.4
|
|
|
(8
|
)%
|
||
Digital Media
|
|
26.8
|
|
|
22.4
|
|
|
20
|
%
|
||
WWE Studios
|
|
5.8
|
|
|
7.3
|
|
|
(21
|
)%
|
||
Total
|
|
389.6
|
|
|
368.9
|
|
|
6
|
%
|
||
|
|
|
|
|
|
|
|||||
OIBDA
|
|
|
|
|
|
|
|||||
Live and Televised Entertainment
|
|
95.3
|
|
|
99.3
|
|
|
(4
|
)%
|
||
Consumer Products
|
|
36.5
|
|
|
37.6
|
|
|
(3
|
)%
|
||
Digital Media
|
|
7.0
|
|
|
6.8
|
|
|
3
|
%
|
||
WWE Studios
|
|
(12.8
|
)
|
|
(4.3
|
)
|
|
198
|
%
|
||
Unallocated Corporate Expenses
|
|
(90.1
|
)
|
|
(84.7
|
)
|
|
6
|
%
|
||
Total
|
|
35.9
|
|
|
54.7
|
|
|
(34
|
)%
|
||
OIBDA as a percentage of revenues
|
|
9
|
%
|
|
15
|
%
|
|
|
|||
|
|
|
|
|
|
|
|||||
Depreciation and amortization expense
|
|
17.8
|
|
|
14.0
|
|
|
27
|
%
|
||
Operating income
|
|
18.1
|
|
|
40.7
|
|
|
(56
|
)%
|
||
Investment and other expense, net
|
|
(1.6
|
)
|
|
(0.4
|
)
|
|
300
|
%
|
||
Income before income taxes
|
|
16.5
|
|
|
40.3
|
|
|
(59
|
)%
|
||
Provision for income taxes
|
|
5.8
|
|
|
9.5
|
|
|
(39
|
)%
|
||
Net income
|
|
$
|
10.7
|
|
|
$
|
30.8
|
|
|
(65
|
)%
|
|
|
Nine Months Ended
|
|
|
|||||||
Revenues- Live and Televised Entertainment
(dollars in millions except where noted)
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
Live events
|
|
$
|
86.1
|
|
|
$
|
80.4
|
|
|
7
|
%
|
North America
|
|
$
|
67.6
|
|
|
$
|
58.2
|
|
|
16
|
%
|
International
|
|
$
|
18.5
|
|
|
$
|
22.2
|
|
|
(17
|
)%
|
Total live event attendance
|
|
1,483,700
|
|
|
1,430,400
|
|
|
4
|
%
|
||
Number of North American events
|
|
204
|
|
|
196
|
|
|
4
|
%
|
||
Average North American attendance
|
|
6,100
|
|
|
5,900
|
|
|
3
|
%
|
||
Average North American ticket price (dollars)
|
|
$
|
49.63
|
|
|
$
|
45.57
|
|
|
9
|
%
|
Number of international events
|
|
39
|
|
|
43
|
|
|
(9
|
)%
|
||
Average international attendance
|
|
6,300
|
|
|
6,200
|
|
|
2
|
%
|
||
Average international ticket price (dollars)
|
|
$
|
69.92
|
|
|
$
|
75.96
|
|
|
(8
|
)%
|
Venue merchandise
|
|
$
|
16.0
|
|
|
$
|
15.0
|
|
|
7
|
%
|
Domestic per capita spending (dollars)
|
|
$
|
10.65
|
|
|
$
|
10.75
|
|
|
(1
|
)%
|
Pay-per-view
|
|
$
|
66.8
|
|
|
$
|
70.6
|
|
|
(5
|
)%
|
Number of pay-per-view events
|
|
8
|
|
|
9
|
|
|
(11
|
)%
|
||
Number of buys from pay-per-view events
|
|
3,056,400
|
|
|
3,371,000
|
|
|
(9
|
)%
|
||
Average revenue per buy (dollars)
|
|
$
|
21.80
|
|
|
$
|
20.71
|
|
|
5
|
%
|
Domestic retail price
WrestleMania
(dollars)
|
|
$
|
59.95
|
|
|
$
|
54.95
|
|
|
9
|
%
|
Domestic retail price excluding
WrestleMania (
dollars)
|
|
$
|
44.95
|
|
|
$
|
44.95
|
|
|
—
|
|
Television rights fees
|
|
$
|
119.6
|
|
|
$
|
98.9
|
|
|
21
|
%
|
Domestic
|
|
$
|
78.5
|
|
|
$
|
60.6
|
|
|
30
|
%
|
International
|
|
$
|
41.1
|
|
|
$
|
38.3
|
|
|
7
|
%
|
Other
|
|
$
|
6.2
|
|
|
$
|
6.9
|
|
|
(10
|
)%
|
Total live and televised entertainment
|
|
$
|
294.7
|
|
|
$
|
271.8
|
|
|
8
|
%
|
Ratings
|
|
|
|
|
|
|
|||||
Average weekly household ratings for
RAW
|
|
3.4
|
|
|
3.5
|
|
|
(3
|
)%
|
||
Average weekly household ratings for
SmackDown
|
|
2.2
|
|
|
2.1
|
|
|
5
|
%
|
||
Average weekly household ratings for
WWE
Main Event
|
|
0.9
|
|
|
N/A
|
|
|
|
|
|
Nine Months Ended
|
|
|
|||||||
OIBDA-Live and Televised Entertainment
(dollars in millions)
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
Live events
|
|
$
|
26.5
|
|
|
$
|
22.4
|
|
|
18
|
%
|
Venue merchandise
|
|
6.2
|
|
|
5.3
|
|
|
17
|
%
|
||
Pay-per-view
|
|
24.7
|
|
|
37.1
|
|
|
(33
|
)%
|
||
Television rights fees
|
|
46.4
|
|
|
38.0
|
|
|
22
|
%
|
||
Other
|
|
(8.5
|
)
|
|
(3.5
|
)
|
|
143
|
%
|
||
Total
|
|
$
|
95.3
|
|
|
$
|
99.3
|
|
|
(4
|
)%
|
OIBDA as a percentage of revenues
|
|
32
|
%
|
|
37
|
%
|
|
|
|
|
Nine Months Ended
|
|
|
|||||||
Revenues-Consumer Products
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
Licensing
|
|
$
|
36.4
|
|
|
$
|
37.9
|
|
|
(4
|
)%
|
Home entertainment
|
|
$
|
19.2
|
|
|
$
|
23.4
|
|
|
(18
|
)%
|
Gross units shipped
|
|
2,900,200
|
|
|
2,600,300
|
|
|
12
|
%
|
||
Magazine publishing
|
|
$
|
4.4
|
|
|
$
|
4.3
|
|
|
2
|
%
|
Net units sold
|
|
1,427,400
|
|
|
1,491,700
|
|
|
(4
|
)%
|
||
Other
|
|
$
|
2.3
|
|
|
$
|
1.8
|
|
|
28
|
%
|
Total
|
|
$
|
62.3
|
|
|
$
|
67.4
|
|
|
(8
|
)%
|
|
|
Nine Months Ended
|
|
|
|||||||
OIBDA-Consumer Products
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
Licensing
|
|
$
|
27.7
|
|
|
$
|
25.8
|
|
|
7
|
%
|
Home entertainment
|
|
8.2
|
|
|
11.3
|
|
|
(27
|
)%
|
||
Magazine publishing
|
|
0.3
|
|
|
0.2
|
|
|
50
|
%
|
||
Other
|
|
0.3
|
|
|
0.3
|
|
|
—
|
%
|
||
Total
|
|
$
|
36.5
|
|
|
$
|
37.6
|
|
|
(3
|
)%
|
OIBDA as a percentage of revenues
|
|
59
|
%
|
|
56
|
%
|
|
|
|
|
Nine Months Ended
|
|
|
|||||||
Revenues-Digital Media
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
WWE.com
|
|
$
|
17.3
|
|
|
$
|
13.5
|
|
|
28
|
%
|
WWEShop
|
|
9.5
|
|
|
8.9
|
|
|
7
|
%
|
||
Total
|
|
$
|
26.8
|
|
|
$
|
22.4
|
|
|
20
|
%
|
Average WWEShop revenues per order (dollars)
|
|
$
|
48.23
|
|
|
$
|
48.04
|
|
|
—
|
%
|
|
|
Nine Months Ended
|
|
|
|||||||
OIBDA-Digital Media
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
WWE.com
|
|
$
|
5.3
|
|
|
$
|
5.6
|
|
|
(5
|
)%
|
WWEShop
|
|
1.7
|
|
|
1.2
|
|
|
42
|
%
|
||
Total
|
|
$
|
7.0
|
|
|
$
|
6.8
|
|
|
3
|
%
|
OIBDA as a percentage of revenues
|
|
26
|
%
|
|
30
|
%
|
|
|
|
|
|
|
|
|
Feature
Film
Production
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
Assets-net as of
|
|
|
|
|
|
For the Nine Months Ended September 30,
|
||||||||||||||||||||||
|
|
Release
|
|
Production
|
|
Sept 30,
|
|
Inception to-date
|
|
Revenue
|
|
OIBDA
|
||||||||||||||||||||||
Title
|
|
Date
|
|
Costs*
|
|
2013
|
|
Revenue
|
|
OIBDA
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
12 Rounds 2: Reloaded
|
|
June 2013
|
|
$
|
1.5
|
|
|
$
|
1.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$ N/A
|
|
|
$
|
—
|
|
|
$ N/A
|
|||
No One Lives
|
|
May 2013
|
|
2.2
|
|
|
0.5
|
|
|
0.8
|
|
|
(0.9
|
)
|
|
0.8
|
|
|
N/A
|
|
|
(0.9
|
)
|
|
N/A
|
|
||||||||
The Call
|
|
Mar 2013
|
|
1.0
|
|
|
1.0
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
N/A
|
|
|
0.1
|
|
|
N/A
|
|
||||||||
Dead Man Down
|
|
Mar 2013
|
|
5.8
|
|
|
1.0
|
|
|
—
|
|
|
(4.7
|
)
|
|
—
|
|
|
N/A
|
|
|
(4.7
|
)
|
|
N/A
|
|
||||||||
The Marine 3: Homefront
|
|
Mar 2013
|
|
1.5
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
|
N/A
|
|
||||||||
|
|
|
|
12.0
|
|
|
5.3
|
|
|
0.9
|
|
|
(5.5
|
)
|
|
0.9
|
|
|
—
|
|
|
(5.5
|
)
|
|
—
|
|
||||||||
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
The Day
|
|
Nov 2012
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.1
|
|
|
0.2
|
|
|
N/A
|
|
|
0.1
|
|
|
N/A
|
|
||||||||
Barricade
|
|
Sept 2012
|
|
4.1
|
|
|
0.1
|
|
|
1.2
|
|
|
(4.0
|
)
|
|
0.4
|
|
|
0.9
|
|
|
(0.5
|
)
|
|
(0.5
|
)
|
||||||||
No Holds Barred
|
|
July 2012
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|
0.3
|
|
|
0.2
|
|
|
0.5
|
|
|
0.2
|
|
|
0.2
|
|
||||||||
Bending The Rules
|
|
Mar 2012
|
|
5.5
|
|
|
0.1
|
|
|
1.0
|
|
|
(5.4
|
)
|
|
0.1
|
|
|
0.9
|
|
|
(0.7
|
)
|
|
(1.4
|
)
|
||||||||
|
|
|
|
9.6
|
|
|
0.2
|
|
|
3.0
|
|
|
(9.0
|
)
|
|
0.9
|
|
|
2.3
|
|
|
(0.9
|
)
|
|
(1.7
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Prior Releases
|
|
|
|
106.7
|
|
|
4.1
|
|
|
98.2
|
|
|
(22.9
|
)
|
|
4.0
|
|
|
5.0
|
|
|
(3.9
|
)
|
|
(0.1
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Completed but not released
|
|
4.4
|
|
|
4.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
In production
|
|
|
|
2.4
|
|
|
2.4
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
In development
|
|
|
|
0.8
|
|
|
0.8
|
|
|
—
|
|
|
(4.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.2
|
)
|
||||||||
Sub-total
|
|
|
|
$
|
135.9
|
|
|
$
|
17.2
|
|
|
$
|
102.1
|
|
|
$
|
(41.5
|
)
|
|
$
|
5.8
|
|
|
$
|
7.3
|
|
|
(10.3
|
)
|
|
(3.0
|
)
|
||
Selling, General & Administrative Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2.5
|
)
|
|
(1.3
|
)
|
||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(12.8
|
)
|
|
$
|
(4.3
|
)
|
|
|
Nine Months Ended
|
|
|
|||||||
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
Staff related
|
|
$
|
39.6
|
|
|
$
|
36.1
|
|
|
10
|
%
|
Management incentive compensation
|
|
5.3
|
|
|
7.0
|
|
|
(24
|
)%
|
||
Legal, accounting and other professional
|
|
15.0
|
|
|
12.0
|
|
|
25
|
%
|
||
Travel and entertainment expense
|
|
3.7
|
|
|
3.2
|
|
|
16
|
%
|
||
Advertising, marketing and promotion
|
|
4.3
|
|
|
3.2
|
|
|
34
|
%
|
||
Corporate insurance
|
|
3.1
|
|
|
2.9
|
|
|
7
|
%
|
||
Bad debt (recovery) expense
|
|
(0.4
|
)
|
|
1.2
|
|
|
(133
|
)%
|
||
All other
|
|
19.5
|
|
|
19.1
|
|
|
2
|
%
|
||
Total unallocated corporate expenses
|
|
$
|
90.1
|
|
|
$
|
84.7
|
|
|
6
|
%
|
Unallocated corporate as a percentage of net revenues
|
|
23
|
%
|
|
23
|
%
|
|
|
|
|
Nine Months Ended
|
|
|
|||||||
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
Depreciation and amortization
|
|
$
|
17.8
|
|
|
$
|
14.0
|
|
|
27
|
%
|
|
|
Nine Months Ended
|
|
|
|||||||
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
Investment income, interest and other expense, net
|
|
$
|
(1.6
|
)
|
|
$
|
(0.4
|
)
|
|
300
|
%
|
|
|
Nine Months Ended
|
|
|
|||||||
|
|
September 30,
2013 |
|
September 30,
2012 |
|
increase (decrease)
|
|||||
Provision for income taxes
|
|
$
|
5.8
|
|
|
$
|
9.5
|
|
|
(39
|
)%
|
Effective tax rate
|
|
36
|
%
|
|
24
|
%
|
|
|
*
|
Indicates management contract or compensatory plan or arrangement.
|
|
|
World Wrestling Entertainment, Inc.
(Registrant)
|
||
|
|
|
|
|
Dated:
|
October 31, 2013
|
By: /s/
|
George A. Barrios
|
|
|
|
|
George A. Barrios
|
|
|
|
|
Chief Financial Officer
|
|
|
|
|
(principal financial and accounting officer
|
|
|
|
|
and authorized signatory)
|
7.
|
PAYMENTS/ROYALTIES
|
(i)
|
at the time of disclosure was in the public domain;
|
(ii)
|
after such disclosure becomes generally available to the public other than through any act or omission by WRESTLER; and
|
(iii)
|
is required to be disclosed by any court of competent jurisdiction, provided that prior written notice of such disclosure is furnished to PROMOTER in a timely manner in order to afford PROMOTER an opportunity to seek a protective order against such disclosure.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of World Wrestling Entertainment, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Dated:
|
October 31, 2013
|
By:
|
/s/ Vincent K. McMahon
|
|
|
|
|
Vincent K. McMahon
|
|
|
|
|
Chairman of the Board and
|
|
|
|
|
Chief Executive Officer
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of World Wrestling Entertainment, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Dated:
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October 31, 2013
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By:
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/s/ George A. Barrios
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George A. Barrios
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Chief Financial Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as amended; and
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(2)
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The information contained in the report fairly presents, in all material aspects, the financial condition and results of operations of the Company.
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By:
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/s/ Vincent K McMahon
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Vincent K. McMahon
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|
Chairman of the Board and
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Chief Executive Officer
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Dated:
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October 31, 2013
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|
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By:
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/s/ George A. Barrios
|
|
George A. Barrios
|
|
Chief Financial Officer
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Dated:
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October 31, 2013
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