x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
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SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended September 30, 2014
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or
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
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SECURITIES EXCHANGE 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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Large accelerated filer
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o
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Accelerated filer
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x
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Non-accelerated filer
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o
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(Do not check if a smaller reporting company)
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Smaller reporting company
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o
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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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Three Months Ended
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Nine Months Ended
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||||||||||||
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September 30,
2014 |
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September 30,
2013 |
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September 30,
2014 |
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September 30,
2013 |
||||||||
Net revenues
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$
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120,183
|
|
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$
|
113,292
|
|
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$
|
402,065
|
|
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$
|
389,575
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|
Cost of revenues (including amortization and impairments of feature film and television production assets of $6,261 and $12,039, respectively, and $22,644 and $19,485, respectively)
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78,417
|
|
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70,947
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284,880
|
|
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242,668
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|
||||
Selling, general and administrative expenses
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39,075
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32,640
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136,279
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110,976
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Depreciation and amortization
|
7,730
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6,503
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20,648
|
|
|
17,819
|
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Operating (loss) income
|
(5,039
|
)
|
|
3,202
|
|
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(39,742
|
)
|
|
18,112
|
|
||||
Loss on equity investment
|
(3,962
|
)
|
|
—
|
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(3,962
|
)
|
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—
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||||
Investment income, net
|
81
|
|
|
264
|
|
|
541
|
|
|
1,102
|
|
||||
Interest expense
|
(546
|
)
|
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(438
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)
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(1,536
|
)
|
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(1,270
|
)
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||||
Other (expense) income, net
|
(1,061
|
)
|
|
313
|
|
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(1,100
|
)
|
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(1,420
|
)
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||||
(Loss) income before income taxes
|
(10,527
|
)
|
|
3,341
|
|
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(45,799
|
)
|
|
16,524
|
|
||||
(Benefit from) provision for income taxes
|
(4,606
|
)
|
|
902
|
|
|
(17,345
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)
|
|
5,870
|
|
||||
Net (loss) income
|
$
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(5,921
|
)
|
|
$
|
2,439
|
|
|
$
|
(28,454
|
)
|
|
$
|
10,654
|
|
|
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||||||||
(Loss) Earnings per share:
|
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||||||||
Basic and diluted
|
$
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(0.08
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)
|
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$
|
0.03
|
|
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$
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(0.38
|
)
|
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$
|
0.14
|
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|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
75,402
|
|
|
75,030
|
|
|
75,232
|
|
|
74,885
|
|
||||
Diluted
|
75,402
|
|
|
75,388
|
|
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75,232
|
|
|
75,335
|
|
||||
Dividends declared per common share (Class A and B)
|
$
|
0.12
|
|
|
$
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0.12
|
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$
|
0.36
|
|
|
$
|
0.36
|
|
|
Three Months Ended
|
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Nine Months Ended
|
||||||||||||
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September 30,
2014 |
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September 30,
2013 |
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September 30,
2014 |
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September 30,
2013 |
||||||||
Net (loss) income
|
$
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(5,921
|
)
|
|
$
|
2,439
|
|
|
$
|
(28,454
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)
|
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$
|
10,654
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|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
(118
|
)
|
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73
|
|
|
(64
|
)
|
|
(107
|
)
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||||
Gains/(losses) on unrealized holding gains on available-for-sale securities (net of tax (benefit)/expense of ($64) and $49, respectively, ($1) and ($225), respectively)
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(105
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)
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79
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|
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(2
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)
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(367
|
)
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Reclassification adjustment for losses (gains) realized in net income - available-for-sale securities (net of tax (benefit)/expense of ($15) and $0, respectively, and ($14) and $1, respectively)
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25
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—
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23
|
|
|
(1
|
)
|
||||
Total other comprehensive (loss) income
|
(198
|
)
|
|
152
|
|
|
(43
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)
|
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(475
|
)
|
||||
Comprehensive (loss) income
|
$
|
(6,119
|
)
|
|
$
|
2,591
|
|
|
$
|
(28,497
|
)
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|
$
|
10,179
|
|
|
As of
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||||||
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September 30,
2014 |
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December 31,
2013 |
||||
ASSETS
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CURRENT ASSETS:
|
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Cash and cash equivalents
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$
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29,599
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$
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32,911
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Short-term investments, net
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39,139
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|
76,476
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|
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Accounts receivable (net of allowances for doubtful accounts and returns
|
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|
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of $7,325 and $9,344 respectively)
|
56,669
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59,552
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|
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Inventory
|
4,539
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2,874
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||
Deferred income tax assets
|
16,911
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|
12,237
|
|
||
Prepaid expenses and other current assets
|
11,997
|
|
|
16,147
|
|
||
Total current assets
|
158,854
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200,197
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PROPERTY AND EQUIPMENT, NET
|
116,383
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133,480
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FEATURE FILM PRODUCTION ASSETS, NET
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27,884
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16,018
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TELEVISION PRODUCTION ASSETS, NET
|
6,205
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|
10,772
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INVESTMENT SECURITIES
|
7,200
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|
|
8,299
|
|
||
NON-CURRENT DEFERRED INCOME TAX ASSETS
|
14,407
|
|
|
—
|
|
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OTHER ASSETS, NET
|
20,632
|
|
|
9,696
|
|
||
TOTAL ASSETS
|
$
|
351,565
|
|
|
$
|
378,462
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
CURRENT LIABILITIES:
|
|
|
|
||||
Current portion of long-term debt
|
$
|
4,321
|
|
|
$
|
4,251
|
|
Accounts payable and accrued expenses
|
69,448
|
|
|
47,882
|
|
||
Deferred income
|
31,389
|
|
|
30,112
|
|
||
Total current liabilities
|
105,158
|
|
|
82,245
|
|
||
LONG-TERM DEBT
|
22,670
|
|
|
25,385
|
|
||
NON-CURRENT INCOME TAX LIABILITIES
|
1,700
|
|
|
4,884
|
|
||
NON-CURRENT DEFERRED INCOME
|
6,375
|
|
|
—
|
|
||
COMMITMENTS AND CONTINGENCIES
|
|
|
|
||||
STOCKHOLDERS’ EQUITY:
|
|
|
|
||||
Class A common stock: ($.01 par value; 180,000,000 shares authorized;
|
|
|
|
||||
33,173,259 and 31,302,790 shares issued and outstanding as of
|
|
|
|
||||
September 30, 2014 and December 31, 2013, respectively)
|
332
|
|
|
313
|
|
||
Class B convertible common stock: ($.01 par value; 60,000,000 shares authorized;
|
|
|
|
||||
42,298,437 and 43,797,830 shares issued and outstanding as of
|
|
|
|
||||
September 30, 2014 and December 31, 2013, respectively)
|
423
|
|
|
438
|
|
||
Additional paid-in-capital
|
352,589
|
|
|
346,974
|
|
||
Accumulated other comprehensive income
|
3,469
|
|
|
3,512
|
|
||
Accumulated deficit
|
(141,151
|
)
|
|
(85,289
|
)
|
||
Total stockholders’ equity
|
215,662
|
|
|
265,948
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
351,565
|
|
|
$
|
378,462
|
|
|
Common Stock
|
|
Additional
|
|
Accumulated
Other
|
|
|
|
|
||||||||||||||||||||
|
Class A
|
|
Class B
|
|
Paid - in
|
|
Comprehensive
|
|
Accumulated
|
|
|
||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Income
|
|
Deficit
|
|
Total
|
||||||||||||||
Balance, December 31, 2013
|
31,303
|
|
|
$
|
313
|
|
|
43,798
|
|
|
$
|
438
|
|
|
$
|
346,974
|
|
|
$
|
3,512
|
|
|
$
|
(85,289
|
)
|
|
$
|
265,948
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(28,454
|
)
|
|
(28,454
|
)
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(43
|
)
|
|
—
|
|
|
(43
|
)
|
||||||
Stock issuances, net
|
370
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
(1,117
|
)
|
|
—
|
|
|
—
|
|
|
(1,113
|
)
|
||||||
Conversion of Class B common stock by shareholder
|
1,500
|
|
|
15
|
|
|
(1,500
|
)
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Tax effect from stock-based payment arrangements
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(80
|
)
|
|
—
|
|
|
—
|
|
|
(80
|
)
|
||||||
Dividends paid
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
315
|
|
|
—
|
|
|
(27,408
|
)
|
|
(27,093
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,497
|
|
|
—
|
|
|
—
|
|
|
6,497
|
|
||||||
Balance, September 30, 2014
|
33,173
|
|
|
$
|
332
|
|
|
42,298
|
|
|
$
|
423
|
|
|
$
|
352,589
|
|
|
$
|
3,469
|
|
|
$
|
(141,151
|
)
|
|
$
|
215,662
|
|
|
Nine Months Ended
|
||||||
|
September 30,
2014 |
|
September 30,
2013 |
||||
OPERATING ACTIVITIES:
|
|
|
|
||||
Net (loss) income
|
$
|
(28,454
|
)
|
|
$
|
10,654
|
|
Adjustments to reconcile net (loss) income to net cash used in operating activities:
|
|
|
|
||||
Amortization and impairments of feature film production assets
|
3,210
|
|
|
15,459
|
|
||
Amortization of television production assets
|
19,435
|
|
|
4,026
|
|
||
Depreciation and amortization
|
22,042
|
|
|
17,819
|
|
||
Loss on equity investment
|
3,962
|
|
|
—
|
|
||
Amortization of bond premium
|
1,014
|
|
|
391
|
|
||
Amortization of debt issuance costs
|
471
|
|
|
1,559
|
|
||
Stock-based compensation
|
6,497
|
|
|
3,543
|
|
||
Recovery from doubtful accounts
|
(403
|
)
|
|
(356
|
)
|
||
Services provided in exchange for equity instruments
|
(439
|
)
|
|
(659
|
)
|
||
Loss on disposal of property and equipment
|
148
|
|
|
335
|
|
||
(Benefit from) provision for deferred income taxes
|
(21,761
|
)
|
|
4,040
|
|
||
Other non-cash items
|
(346
|
)
|
|
(149
|
)
|
||
Cash (used in)/provided by changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
3,002
|
|
|
(17,913
|
)
|
||
Inventory
|
(1,665
|
)
|
|
(761
|
)
|
||
Prepaid expenses and other assets
|
1,404
|
|
|
(644
|
)
|
||
Feature film production assets
|
(15,076
|
)
|
|
(6,706
|
)
|
||
Television production assets
|
(14,868
|
)
|
|
(8,687
|
)
|
||
Accounts payable, accrued expenses and other liabilities
|
8,939
|
|
|
(11,506
|
)
|
||
Deferred income
|
7,652
|
|
|
1,709
|
|
||
Net cash (used in)/provided by operating activities
|
(5,236
|
)
|
|
12,154
|
|
||
INVESTING ACTIVITIES:
|
|
|
|
||||
Purchases of property and equipment and other assets
|
(9,181
|
)
|
|
(18,302
|
)
|
||
Purchase of corporate aircraft and related improvements
|
—
|
|
|
(29,730
|
)
|
||
Proceeds from sale of corporate aircraft
|
3,167
|
|
|
—
|
|
||
Net proceeds from infrastructure improvement incentives
|
2,937
|
|
|
—
|
|
||
Purchases of short-term investments
|
(2,511
|
)
|
|
(24,112
|
)
|
||
Proceeds from sales and maturities of investments
|
38,832
|
|
|
30,543
|
|
||
Purchase of equity investments
|
(2,204
|
)
|
|
(2,200
|
)
|
||
Proceeds from sales of property and equipment
|
—
|
|
|
38
|
|
||
Net cash provided by/(used in) investing activities
|
31,040
|
|
|
(43,763
|
)
|
||
FINANCING ACTIVITIES:
|
|
|
|
||||
Proceeds from the issuance of note payable
|
364
|
|
|
29,730
|
|
||
Repayment of long-term debt
|
(3,009
|
)
|
|
(348
|
)
|
||
Dividends paid
|
(27,093
|
)
|
|
(26,967
|
)
|
||
Debt issuance costs
|
(758
|
)
|
|
(674
|
)
|
||
Proceeds from issuance of stock
|
895
|
|
|
640
|
|
||
Excess tax benefits from stock-based payment arrangements
|
485
|
|
|
261
|
|
||
Net cash (used in)/provided by financing activities
|
(29,116
|
)
|
|
2,642
|
|
||
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
(3,312
|
)
|
|
(28,967
|
)
|
||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
32,911
|
|
|
66,048
|
|
||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
29,599
|
|
|
$
|
37,081
|
|
NON-CASH INVESTING TRANSACTIONS:
|
|
|
|
||||
Non-cash purchase of property and equipment
|
$
|
720
|
|
|
$
|
1,611
|
|
•
|
Revenues consist principally of subscriptions to WWE Network and fees for viewing our pay-per-view and video-on-demand programming.
|
•
|
Revenues consist principally of advertising sales on our websites, rights fees received for digital content, sales of various broadband and mobile content and magazine publishing.
|
•
|
Revenues consist principally of royalties or license fees related to various WWE themed products such as video games, toys and apparel.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
2014 |
|
September 30,
2013 |
|
September 30,
2014 |
|
September 30,
2013 |
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||||
Network
|
$
|
26,119
|
|
|
$
|
15,553
|
|
|
$
|
87,786
|
|
|
$
|
69,719
|
|
Television
|
42,198
|
|
|
44,817
|
|
|
126,277
|
|
|
121,273
|
|
||||
Home Entertainment
|
3,625
|
|
|
5,135
|
|
|
19,488
|
|
|
19,197
|
|
||||
Digital Media
|
5,001
|
|
|
7,134
|
|
|
16,879
|
|
|
21,683
|
|
||||
Live Events
|
21,742
|
|
|
25,138
|
|
|
83,742
|
|
|
87,719
|
|
||||
Licensing
|
10,011
|
|
|
5,733
|
|
|
29,534
|
|
|
36,396
|
|
||||
Venue Merchandise
|
4,163
|
|
|
4,024
|
|
|
15,663
|
|
|
16,024
|
|
||||
WWEShop
|
4,290
|
|
|
2,956
|
|
|
12,485
|
|
|
9,497
|
|
||||
WWE Studios
|
1,928
|
|
|
1,812
|
|
|
8,009
|
|
|
5,835
|
|
||||
Corporate & Other
|
1,106
|
|
|
990
|
|
|
2,202
|
|
|
2,232
|
|
||||
Total net revenues
|
$
|
120,183
|
|
|
$
|
113,292
|
|
|
$
|
402,065
|
|
|
$
|
389,575
|
|
OIBDA:
|
|
|
|
|
|
|
|
||||||||
Network
|
$
|
2,317
|
|
|
$
|
7,378
|
|
|
$
|
(8,619
|
)
|
|
$
|
20,598
|
|
Television
|
20,712
|
|
|
21,260
|
|
|
43,001
|
|
|
44,680
|
|
||||
Home Entertainment
|
1,277
|
|
|
1,942
|
|
|
10,423
|
|
|
8,226
|
|
||||
Digital Media
|
2,004
|
|
|
3,115
|
|
|
811
|
|
|
5,531
|
|
||||
Live Events
|
3,850
|
|
|
5,690
|
|
|
23,149
|
|
|
27,232
|
|
||||
Licensing
|
5,828
|
|
|
3,228
|
|
|
16,450
|
|
|
27,659
|
|
||||
Venue Merchandise
|
1,632
|
|
|
1,653
|
|
|
6,325
|
|
|
6,184
|
|
||||
WWEShop
|
729
|
|
|
551
|
|
|
2,400
|
|
|
1,709
|
|
||||
WWE Studios
|
(421
|
)
|
|
(7,417
|
)
|
|
940
|
|
|
(12,789
|
)
|
||||
Corporate & Other
|
(35,237
|
)
|
|
(27,695
|
)
|
|
(113,974
|
)
|
|
(93,099
|
)
|
||||
Total OIBDA
|
$
|
2,691
|
|
|
$
|
9,705
|
|
|
$
|
(19,094
|
)
|
|
$
|
35,931
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
2014 |
|
September 30,
2013 |
|
September 30,
2014 |
|
September 30,
2013 |
||||||||
Total operating (loss) income
|
$
|
(5,039
|
)
|
|
$
|
3,202
|
|
|
$
|
(39,742
|
)
|
|
$
|
18,112
|
|
Depreciation and amortization
|
7,730
|
|
|
6,503
|
|
|
20,648
|
|
|
17,819
|
|
||||
Total OIBDA
|
$
|
2,691
|
|
|
$
|
9,705
|
|
|
$
|
(19,094
|
)
|
|
$
|
35,931
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
2014 |
|
September 30,
2013 |
|
September 30,
2014 |
|
September 30,
2013 |
||||||||
North America
|
$
|
93,866
|
|
|
$
|
87,341
|
|
|
$
|
318,842
|
|
|
$
|
304,190
|
|
Europe/Middle East/Africa
|
11,646
|
|
|
11,249
|
|
|
47,840
|
|
|
51,406
|
|
||||
Asia Pacific
|
13,704
|
|
|
13,737
|
|
|
30,991
|
|
|
29,580
|
|
||||
Latin America
|
967
|
|
|
965
|
|
|
4,392
|
|
|
4,399
|
|
||||
Total net revenues
|
$
|
120,183
|
|
|
$
|
113,292
|
|
|
$
|
402,065
|
|
|
$
|
389,575
|
|
|
|
Units
|
|
Weighted-Average Grant-Date Fair Value
|
|||
Unvested at January 1, 2014
|
|
107,034
|
|
|
$
|
9.87
|
|
Granted
|
|
106,296
|
|
|
$
|
23.28
|
|
Vested
|
|
(71,300
|
)
|
|
$
|
11.14
|
|
Forfeited
|
|
(25,184
|
)
|
|
$
|
13.09
|
|
Dividend equivalents
|
|
3,482
|
|
|
$
|
18.69
|
|
Unvested at September 30, 2014
|
|
120,328
|
|
|
$
|
20.54
|
|
|
|
Units
|
|
Weighted-Average Grant-Date Fair Value
|
|||
Unvested at January 1, 2014
|
|
1,259,629
|
|
|
$
|
13.46
|
|
Granted
|
|
278,281
|
|
|
$
|
13.77
|
|
Achievement adjustment
|
|
(387,633
|
)
|
|
$
|
23.99
|
|
Vested
|
|
(371,197
|
)
|
|
$
|
13.71
|
|
Forfeited
|
|
(39,828
|
)
|
|
$
|
18.32
|
|
Dividend equivalents
|
|
16,569
|
|
|
$
|
15.51
|
|
Unvested at September 30, 2014
|
|
755,821
|
|
|
$
|
15.44
|
|
|
|
As of
|
||||||
|
|
September 30,
2014 |
|
December 31,
2013 |
||||
Land, buildings and improvements
|
|
$
|
106,021
|
|
|
$
|
106,749
|
|
Equipment
|
|
109,394
|
|
|
107,305
|
|
||
Corporate aircrafts
|
|
31,277
|
|
|
51,757
|
|
||
Vehicles
|
|
244
|
|
|
244
|
|
||
|
|
246,936
|
|
|
266,055
|
|
||
Less accumulated depreciation
|
|
(130,553
|
)
|
|
(132,575
|
)
|
||
Total
|
|
$
|
116,383
|
|
|
$
|
133,480
|
|
|
|
As of
|
||||||
|
|
September 30,
2014 |
|
December 31,
2013 |
||||
Feature film productions:
|
|
|
|
|
||||
In release
|
|
$
|
11,740
|
|
|
$
|
9,413
|
|
Completed but not released
|
|
5,115
|
|
|
3,130
|
|
||
In production
|
|
10,490
|
|
|
2,686
|
|
||
In development
|
|
539
|
|
|
789
|
|
||
Total
|
|
$
|
27,884
|
|
|
$
|
16,018
|
|
|
|
As of
|
||||||
|
|
September 30,
2014 |
|
December 31,
2013 |
||||
Television productions:
|
|
|
|
|
||||
In release
|
|
$
|
5,932
|
|
|
$
|
1,365
|
|
In production
|
|
273
|
|
|
9,407
|
|
||
Total
|
|
$
|
6,205
|
|
|
$
|
10,772
|
|
|
September 30, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||||||
|
|
|
Gross Unrealized
|
|
|
|
|
|
Gross Unrealized
|
|
|
||||||||||||||||||||
|
Amortized
Cost
|
|
Gain
|
|
(Loss)
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Gain
|
|
(Loss)
|
|
Fair
Value
|
||||||||||||||||
Municipal bonds
|
$
|
19,577
|
|
|
$
|
64
|
|
|
$
|
—
|
|
|
$
|
19,641
|
|
|
$
|
44,636
|
|
|
$
|
176
|
|
|
$
|
(91
|
)
|
|
$
|
44,721
|
|
Corporate bonds
|
19,512
|
|
|
39
|
|
|
(53
|
)
|
|
19,498
|
|
|
31,825
|
|
|
104
|
|
|
(174
|
)
|
|
31,755
|
|
||||||||
Total
|
$
|
39,089
|
|
|
$
|
103
|
|
|
$
|
(53
|
)
|
|
$
|
39,139
|
|
|
$
|
76,461
|
|
|
$
|
280
|
|
|
$
|
(265
|
)
|
|
$
|
76,476
|
|
|
Maturities
|
Municipal bonds
|
1 month-4 years
|
Corporate bonds
|
4 months-3 years
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
2014 |
|
September 30,
2013 |
|
September 30,
2014 |
|
September 30,
2013 |
||||||||
Proceeds from sale of short-term investments
|
$
|
14,794
|
|
|
$
|
—
|
|
|
$
|
22,572
|
|
|
$
|
2,793
|
|
Proceeds from maturities and calls of short-term investments
|
$
|
7,225
|
|
|
$
|
7,480
|
|
|
$
|
16,260
|
|
|
$
|
27,750
|
|
Gross realized (loss) gains on sale of short-term investments
|
$
|
(40
|
)
|
|
$
|
—
|
|
|
$
|
(37
|
)
|
|
$
|
1
|
|
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, 2014
|
|
Fair Value at December 31, 2013
|
||||||||||||||||||||||||||||
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||||||
Municipal bonds
|
|
$
|
19,641
|
|
|
$
|
—
|
|
|
$
|
19,641
|
|
|
$
|
—
|
|
|
$
|
44,721
|
|
|
$
|
—
|
|
|
$
|
44,721
|
|
|
$
|
—
|
|
Corporate bonds
|
|
19,498
|
|
|
—
|
|
|
19,498
|
|
|
—
|
|
|
31,755
|
|
|
—
|
|
|
31,755
|
|
|
—
|
|
||||||||
Total
|
|
$
|
39,139
|
|
|
$
|
—
|
|
|
$
|
39,139
|
|
|
$
|
—
|
|
|
$
|
76,476
|
|
|
$
|
—
|
|
|
$
|
76,476
|
|
|
$
|
—
|
|
|
|
As of
|
||||||
|
|
September 30,
2014 |
|
December 31,
2013 |
||||
Trade related
|
|
$
|
9,563
|
|
|
$
|
8,565
|
|
Staff related
|
|
9,236
|
|
|
5,580
|
|
||
Management incentive compensation
|
|
9,978
|
|
|
5,711
|
|
||
Talent related
|
|
6,226
|
|
|
6,304
|
|
||
Accrued WWE Network related expenses
|
|
13,116
|
|
|
2,477
|
|
||
Accrued event and television production
|
|
4,294
|
|
|
4,429
|
|
||
Accrued home entertainment expenses
|
|
738
|
|
|
1,341
|
|
||
Accrued legal and professional
|
|
1,802
|
|
|
1,903
|
|
||
Accrued purchases of property and equipment
|
|
720
|
|
|
1,700
|
|
||
Accrued film liability
|
|
2,559
|
|
|
2,654
|
|
||
Accrued other
|
|
11,216
|
|
|
7,218
|
|
||
Total
|
|
$
|
69,448
|
|
|
$
|
47,882
|
|
•
|
Revenues consist principally of subscriptions to WWE Network and fees for viewing our pay-per-view and video-on-demand programming.
|
•
|
Revenues consist principally of advertising sales on our websites, rights fees received for digital content, sales of various broadband and mobile content and magazine publishing.
|
•
|
Revenues consist principally of royalties or license fees related to various WWE themed products such as video games, toys and apparel.
|
•
|
Revenues consist of amounts earned from talent appearances. Expenses include corporate overhead and certain expenses related to sales and marketing, including our international offices, and talent development functions.
|
|
|
Three Months Ended
|
|
|
|||||||
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Net Revenues
|
|
|
|
|
|
|
|||||
Media Division
|
|
$
|
76.9
|
|
|
$
|
72.7
|
|
|
6
|
%
|
Live Events
|
|
21.8
|
|
|
25.1
|
|
|
(13
|
)%
|
||
Consumer Products Division
|
|
18.5
|
|
|
12.6
|
|
|
47
|
%
|
||
WWE Studios
|
|
1.9
|
|
|
1.8
|
|
|
6
|
%
|
||
Corporate & Other
|
|
1.1
|
|
|
1.1
|
|
|
—
|
%
|
||
Total
|
|
120.2
|
|
|
113.3
|
|
|
6
|
%
|
||
|
|
|
|
|
|
|
|||||
OIBDA
|
|
|
|
|
|
|
|||||
Media Division
|
|
$
|
26.3
|
|
|
$
|
33.7
|
|
|
(22
|
)%
|
Live Events
|
|
3.9
|
|
|
5.6
|
|
|
(30
|
)%
|
||
Consumer Products Division
|
|
8.2
|
|
|
5.5
|
|
|
49
|
%
|
||
WWE Studios
|
|
(0.4
|
)
|
|
(7.4
|
)
|
|
(95
|
)%
|
||
Corporate & Other
|
|
(35.3
|
)
|
|
(27.7
|
)
|
|
27
|
%
|
||
Total
|
|
2.7
|
|
|
9.7
|
|
|
(72
|
)%
|
||
OIBDA as a percentage of revenues
|
|
2
|
%
|
|
9
|
%
|
|
|
|||
|
|
|
|
|
|
|
|||||
Depreciation and amortization expense
|
|
$
|
7.7
|
|
|
$
|
6.5
|
|
|
18
|
%
|
Operating (loss) income
|
|
(5.0
|
)
|
|
3.2
|
|
|
(256
|
)%
|
||
Loss in equity investment
|
|
(4.0
|
)
|
|
—
|
|
|
(100
|
)%
|
||
Investment and other (expense) income, net
|
|
(1.5
|
)
|
|
0.1
|
|
|
(1,600
|
)%
|
||
(Loss) income before income taxes
|
|
(10.5
|
)
|
|
3.3
|
|
|
(418
|
)%
|
||
(Benefit from) provision for income taxes
|
|
(4.6
|
)
|
|
0.9
|
|
|
(611
|
)%
|
||
Net (loss) income
|
|
$
|
(5.9
|
)
|
|
$
|
2.4
|
|
|
(346
|
)%
|
|
|
Three Months Ended
|
|
|
|||||||
Revenues-Media Division
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Network
|
|
$
|
26.1
|
|
|
$
|
15.5
|
|
|
68
|
%
|
Subscriptions
|
|
$
|
22.4
|
|
|
N/A
|
|
|
|
||
Pay-per-view
|
|
$
|
3.7
|
|
|
$
|
14.6
|
|
|
(75
|
)%
|
Video-on-demand
|
|
$
|
—
|
|
|
$
|
0.9
|
|
|
(100
|
)%
|
Monthly subscription price (dollars)
(a)
|
|
$9.99 / $12.99
|
|
|
N/A
|
|
|
|
|||
Number of paid subscribers at period end
|
|
731,359
|
|
|
N/A
|
|
|
|
|||
Domestic
|
|
702,883
|
|
|
N/A
|
|
|
|
|||
International
|
|
28,476
|
|
|
N/A
|
|
|
|
|||
Number of average paid subscribers
(b)
|
|
723,174
|
|
|
N/A
|
|
|
|
|||
Number of pay-per-view events
|
|
3
|
|
|
3
|
|
|
—
|
%
|
||
Number of buys from pay-per-view events
|
|
284,600
|
|
761,000
|
|
(63
|
)%
|
||||
Average revenue per buy (dollars)
|
|
$
|
12.83
|
|
|
$
|
19.35
|
|
|
(34
|
)%
|
Pay-per-view domestic retail price, excluding
WrestleMania
(dollars)
|
|
$
|
44.95
|
|
|
$
|
44.95
|
|
|
—
|
%
|
Television
|
|
$
|
42.2
|
|
|
$
|
44.8
|
|
|
(6
|
)%
|
Home Entertainment
|
|
$
|
3.6
|
|
|
$
|
5.2
|
|
|
(31
|
)%
|
Gross units shipped
|
|
429,000
|
|
|
718,200
|
|
|
(40
|
)%
|
||
Digital Media
|
|
$
|
5.0
|
|
|
$
|
7.2
|
|
|
(31
|
)%
|
Total
|
|
$
|
76.9
|
|
|
$
|
72.7
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|||||
Television Ratings
|
|
|
|
|
|
|
|||||
Average weekly household ratings for
RAW
|
|
3.4
|
|
|
3.3
|
|
|
3
|
%
|
||
Average weekly household ratings for
SmackDown
|
|
2.2
|
|
|
2.2
|
|
|
—
|
%
|
||
Average weekly household ratings for
WWE Main Event
|
|
N/A
|
|
|
0.9
|
|
|
|
|
||
Average weekly household ratings for
Total Divas
(E!)
|
|
1.4
|
|
|
1.4
|
|
|
—
|
%
|
|
|
Three Months Ended
|
|
|
|||||||
OIBDA-Media Division
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Network
|
|
$
|
2.3
|
|
|
$
|
7.4
|
|
|
(69
|
)%
|
Television
|
|
20.7
|
|
|
21.3
|
|
|
(3
|
)%
|
||
Home Entertainment
|
|
1.3
|
|
|
1.9
|
|
|
(32
|
)%
|
||
Digital Media
|
|
2.0
|
|
|
3.1
|
|
|
(35
|
)%
|
||
Total
|
|
$
|
26.3
|
|
|
$
|
33.7
|
|
|
(22
|
)%
|
OIBDA as a percentage of revenues
|
|
34
|
%
|
|
46
|
%
|
|
|
|
|
September 30,
2014 |
|
Beginning subscribers
|
|
699,752
|
|
Net subscriber additions
|
|
31,607
|
|
Ending subscribers
|
|
731,359
|
|
|
|
Three Months Ended
|
|
|
|||||||
Revenues- Live Events
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Live events
|
|
$
|
21.6
|
|
|
$
|
25.0
|
|
|
(14
|
)%
|
North America
|
|
$
|
17.3
|
|
|
$
|
17.5
|
|
|
(1
|
)%
|
International
|
|
$
|
4.3
|
|
|
$
|
7.5
|
|
|
(43
|
)%
|
Total live event attendance
|
|
421,300
|
|
|
435,200
|
|
|
(3
|
)%
|
||
Number of North American events
|
|
73
|
|
|
62
|
|
|
18
|
%
|
||
Average North American attendance
|
|
5,100
|
|
|
5,500
|
|
|
(7
|
)%
|
||
Average North American ticket price (dollars)
|
|
$
|
44.60
|
|
|
$
|
46.78
|
|
|
(5
|
)%
|
Number of international events
|
|
6
|
|
|
14
|
|
|
(57
|
)%
|
||
Average international attendance
|
|
7,700
|
|
|
6,700
|
|
|
15
|
%
|
||
Average international ticket price (dollars)
|
|
$
|
92.89
|
|
|
$
|
72.30
|
|
|
28
|
%
|
Travel packages
|
|
$
|
0.2
|
|
|
$
|
0.1
|
|
|
100
|
%
|
Total live events
|
|
$
|
21.8
|
|
|
$
|
25.1
|
|
|
(13
|
)%
|
|
|
Three Months Ended
|
|
|
|||||||
OIBDA-Live Events
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Live events
|
|
$
|
3.8
|
|
|
$
|
5.6
|
|
|
(32
|
)%
|
Travel packages
|
|
0.1
|
|
|
—
|
|
|
100
|
%
|
||
Total
|
|
$
|
3.9
|
|
|
$
|
5.6
|
|
|
(30
|
)%
|
OIBDA as a percentage of revenues
|
|
18
|
%
|
|
22
|
%
|
|
|
|
|
Three Months Ended
|
|
|
|||||||
Revenues-Consumer Products Division
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Licensing
|
|
$
|
10.0
|
|
|
$
|
5.7
|
|
|
75
|
%
|
Venue merchandise
|
|
4.2
|
|
|
4.0
|
|
|
5
|
%
|
||
Domestic per capita spending (dollars)
|
|
$
|
9.69
|
|
|
$
|
9.53
|
|
|
2
|
%
|
WWEShop
|
|
4.3
|
|
|
2.9
|
|
|
48
|
%
|
||
Average WWEShop revenues per order (dollars)
|
|
$
|
47.59
|
|
|
$
|
48.87
|
|
|
(3
|
)%
|
Total
|
|
$
|
18.5
|
|
|
$
|
12.6
|
|
|
47
|
%
|
|
|
Three Months Ended
|
|
|
|||||||
OIBDA-Consumer Products Division
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Licensing
|
|
$
|
5.9
|
|
|
$
|
3.3
|
|
|
79
|
%
|
Venue merchandise
|
|
1.6
|
|
|
1.7
|
|
|
(6
|
)%
|
||
WWEShop
|
|
0.7
|
|
|
0.5
|
|
|
40
|
%
|
||
Total
|
|
$
|
8.2
|
|
|
$
|
5.5
|
|
|
49
|
%
|
OIBDA as a percentage of revenues
|
|
44
|
%
|
|
44
|
%
|
|
|
|
|
|
|
|
|
Feature
Film
Production
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
Assets-net as of
|
|
|
|
|
|
For the Three Months Ended September 30,
|
||||||||||||||||||||||
|
|
Release
|
|
Production
|
|
Sept 30,
|
|
Inception to-date
|
|
Revenue
|
|
OIBDA
|
||||||||||||||||||||||
Title
|
|
Date
|
|
Costs*
|
|
2014
|
|
Revenue
|
|
OIBDA
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Leprechaun: Origins
|
|
Aug 2014
|
|
$
|
1.0
|
|
|
$
|
1.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$ N/A
|
|
$
|
—
|
|
|
$ N/A
|
|
|||
Oculus
|
|
April 2014
|
|
3.0
|
|
|
3.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
—
|
|
|
N/A
|
|
|||||||||
Scooby Doo! WrestleMania Mystery
|
|
Mar 2014
|
|
1.3
|
|
|
1.0
|
|
|
0.5
|
|
|
0.2
|
|
|
0.5
|
|
|
N/A
|
|
0.2
|
|
|
N/A
|
|
|||||||||
|
|
|
|
5.3
|
|
|
5.0
|
|
|
0.5
|
|
|
0.2
|
|
|
0.5
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Christmas Bounty
|
|
Nov 2013
|
|
3.7
|
|
|
0.1
|
|
|
4.1
|
|
|
0.5
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
|
N/A
|
|
||||||||
12 Rounds 2: Reloaded
|
|
June 2013
|
|
1.4
|
|
|
1.0
|
|
|
0.8
|
|
|
0.4
|
|
|
0.3
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
||||||||
No One Lives
|
|
May 2013
|
|
2.2
|
|
|
0.4
|
|
|
0.9
|
|
|
(0.8
|
)
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
(0.9
|
)
|
||||||||
The Call
|
|
Mar 2013
|
|
1.0
|
|
|
0.4
|
|
|
4.0
|
|
|
3.4
|
|
|
0.2
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||||||
Dead Man Down
|
|
Mar 2013
|
|
5.8
|
|
|
1.0
|
|
|
—
|
|
|
(4.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
The Marine 3: Homefront
|
|
Mar 2013
|
|
1.5
|
|
|
0.8
|
|
|
1.2
|
|
|
0.6
|
|
|
0.4
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
||||||||
|
|
|
|
15.6
|
|
|
3.7
|
|
|
11.0
|
|
|
(0.6
|
)
|
|
0.9
|
|
|
0.1
|
|
|
0.5
|
|
|
(0.9
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Prior Releases
|
|
|
|
116.3
|
|
|
3.1
|
|
|
103.6
|
|
|
(31.0
|
)
|
|
0.5
|
|
|
1.7
|
|
|
0.1
|
|
|
(5.6
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Completed but not released
|
|
5.1
|
|
|
5.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
In production
|
|
|
|
10.5
|
|
|
10.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
In development
|
|
|
|
0.5
|
|
|
0.5
|
|
|
—
|
|
|
(4.4
|
)
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Sub-total
|
|
|
|
$
|
153.3
|
|
|
$
|
27.9
|
|
|
$
|
115.1
|
|
|
$
|
(35.8
|
)
|
|
$
|
1.9
|
|
|
$
|
1.8
|
|
|
0.8
|
|
|
(6.5
|
)
|
||
Selling, General & Administrative Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1.2
|
)
|
|
(0.9
|
)
|
|||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(0.4
|
)
|
|
$
|
(7.4
|
)
|
|
|
Three Months Ended
|
|
|
|||||||
Revenues- Corporate & Other
(dollars in millions )
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Other
|
|
$
|
1.1
|
|
|
$
|
1.1
|
|
|
—
|
%
|
|
|
Three Months Ended
|
|
|
|||||||
OIBDA- Corporate & Other
(dollars in millions )
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Corporate & Other
|
|
$
|
(35.3
|
)
|
|
$
|
(27.7
|
)
|
|
27
|
%
|
|
|
Three Months Ended
|
|
|
|||||||
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Staff related
|
|
$
|
14.8
|
|
|
$
|
11.4
|
|
|
30
|
%
|
Management incentive compensation
|
|
2.8
|
|
|
0.5
|
|
|
460
|
%
|
||
Legal, accounting and other professional
|
|
4.9
|
|
|
3.5
|
|
|
40
|
%
|
||
Travel and entertainment expense
|
|
1.4
|
|
|
1.3
|
|
|
8
|
%
|
||
Advertising, marketing and promotion
|
|
2.1
|
|
|
1.8
|
|
|
17
|
%
|
||
Corporate insurance
|
|
1.0
|
|
|
1.2
|
|
|
(17
|
)%
|
||
Bad debt recovery
|
|
(0.4
|
)
|
|
(0.2
|
)
|
|
100
|
%
|
||
All other
|
|
9.8
|
|
|
9.3
|
|
|
5
|
%
|
||
Total corporate & other expenses
|
|
$
|
36.4
|
|
|
$
|
28.8
|
|
|
26
|
%
|
Corporate & Other as a percentage of net revenues
|
|
30
|
%
|
|
25
|
%
|
|
|
|
|
Three Months Ended
|
|
|
|||||||
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Depreciation and amortization
|
|
$
|
7.7
|
|
|
$
|
6.5
|
|
|
18
|
%
|
|
|
Three Months Ended
|
|
|
|||||||
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Loss on equity investment
|
|
$
|
(4.0
|
)
|
|
$
|
—
|
|
|
(100
|
)%
|
Investment income, interest and other (expense) income, net
|
|
(1.5
|
)
|
|
0.1
|
|
|
(1,600
|
)%
|
|
|
Three Months Ended
|
|
|
|||||||
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
(Benefit from) provision for income taxes
|
|
$
|
(4.6
|
)
|
|
$
|
0.9
|
|
|
(611
|
)%
|
Effective tax rate
|
|
44
|
%
|
|
27
|
%
|
|
|
|
|
Nine Months Ended
|
|
|
|||||||
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Net Revenues
|
|
|
|
|
|
|
|||||
Media Division
|
|
$
|
250.4
|
|
|
$
|
231.9
|
|
|
8
|
%
|
Live Events
|
|
83.8
|
|
|
87.7
|
|
|
(4
|
)%
|
||
Consumer Products Division
|
|
57.7
|
|
|
61.9
|
|
|
(7
|
)%
|
||
WWE Studios
|
|
8.0
|
|
|
5.8
|
|
|
38
|
%
|
||
Corporate & Other
|
|
2.2
|
|
|
2.3
|
|
|
(4
|
)%
|
||
Total
|
|
402.1
|
|
|
389.6
|
|
|
3
|
%
|
||
|
|
|
|
|
|
|
|||||
OIBDA
|
|
|
|
|
|
|
|||||
Media Division
|
|
$
|
45.6
|
|
|
$
|
79.0
|
|
|
(42
|
)%
|
Live Events
|
|
23.2
|
|
|
27.2
|
|
|
(15
|
)%
|
||
Consumer Products Division
|
|
25.2
|
|
|
35.6
|
|
|
(29
|
)%
|
||
WWE Studios
|
|
0.9
|
|
|
(12.8
|
)
|
|
107
|
%
|
||
Corporate & Other
|
|
(114.0
|
)
|
|
(93.1
|
)
|
|
22
|
%
|
||
Total
|
|
(19.1
|
)
|
|
35.9
|
|
|
(153
|
)%
|
||
OIBDA as a percentage of revenues
|
|
(5
|
)%
|
|
9
|
%
|
|
|
|||
|
|
|
|
|
|
|
|||||
Depreciation and amortization expense
|
|
$
|
20.6
|
|
|
$
|
17.8
|
|
|
16
|
%
|
Operating (loss) income
|
|
(39.7
|
)
|
|
18.1
|
|
|
(319
|
)%
|
||
Loss on equity investment
|
|
(4.0
|
)
|
|
—
|
|
|
(100
|
)%
|
||
Investment and other expense, net
|
|
(2.1
|
)
|
|
(1.6
|
)
|
|
31
|
%
|
||
(Loss) income before income taxes
|
|
(45.8
|
)
|
|
16.5
|
|
|
(378
|
)%
|
||
(Benefit from) provision for income taxes
|
|
(17.3
|
)
|
|
5.8
|
|
|
(398
|
)%
|
||
Net (loss) income
|
|
$
|
(28.5
|
)
|
|
$
|
10.7
|
|
|
(366
|
)%
|
|
|
Nine Months Ended
|
|
|
|||||||
Revenues-Media Division
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Network
|
|
$
|
87.8
|
|
|
$
|
69.7
|
|
|
26
|
%
|
Subscriptions
|
|
$
|
46.2
|
|
|
N/A
|
|
|
|
|
|
Pay-per-view
|
|
$
|
41.3
|
|
|
$
|
66.8
|
|
|
(38
|
)%
|
Video-on-demand
|
|
$
|
0.3
|
|
|
$
|
2.9
|
|
|
(90
|
)%
|
Monthly subscription price (dollars)
(a)
|
|
$9.99 / $12.99
|
|
|
N/A
|
|
|
|
|||
Number of paid subscribers at period end
|
|
731,359
|
|
|
N/A
|
|
|
|
|||
Domestic
|
|
702,883
|
|
|
N/A
|
|
|
|
|||
International
|
|
28,476
|
|
|
N/A
|
|
|
|
|||
Number of average paid subscribers
(b)
|
|
514,652
|
|
|
N/A
|
|
|
|
|||
Number of pay-per-view events
|
|
9
|
|
|
8
|
|
|
13
|
%
|
||
Number of buys from pay-per-view events
|
|
2,020,600
|
|
3,056,400
|
|
(34
|
)%
|
||||
Average revenue per buy (dollars)
|
|
$
|
20.29
|
|
|
$
|
21.80
|
|
|
(7
|
)%
|
Pay-per-view domestic retail price, excluding
WrestleMania
(dollars)
|
|
$
|
44.95
|
|
|
$
|
44.95
|
|
|
—
|
%
|
Pay-per-view domestic retail price
WrestleMania
(dollars)
|
|
$
|
59.95
|
|
|
$
|
59.95
|
|
|
—
|
%
|
Television
|
|
$
|
126.2
|
|
|
$
|
121.3
|
|
|
4
|
%
|
Home Entertainment
|
|
$
|
19.5
|
|
|
$
|
19.2
|
|
|
2
|
%
|
Gross units shipped
|
|
2,094,300
|
|
|
2,900,200
|
|
|
(28
|
)%
|
||
Digital Media
|
|
$
|
16.9
|
|
|
$
|
21.7
|
|
|
(22
|
)%
|
Total
|
|
$
|
250.4
|
|
|
$
|
231.9
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|||||
Television Ratings
|
|
|
|
|
|
|
|||||
Average weekly household ratings for
RAW
|
|
3.5
|
|
|
3.4
|
|
|
3
|
%
|
||
Average weekly household ratings for
SmackDown
|
|
2.3
|
|
|
2.2
|
|
|
5
|
%
|
||
Average weekly household ratings for
WWE Main Event
|
|
1.0
|
|
|
0.9
|
|
|
11
|
%
|
||
Average weekly household ratings for
Total Divas
(E!)
|
|
1.4
|
|
|
1.4
|
|
|
—
|
%
|
|
|
Nine Months Ended
|
|
|
|||||||
OIBDA-Media Division
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Network
|
|
$
|
(8.6
|
)
|
|
$
|
20.6
|
|
|
(142
|
)%
|
Television
|
|
43.0
|
|
|
44.7
|
|
|
(4
|
)%
|
||
Home Entertainment
|
|
10.4
|
|
|
8.2
|
|
|
27
|
%
|
||
Digital Media
|
|
0.8
|
|
|
5.5
|
|
|
(85
|
)%
|
||
Total
|
|
$
|
45.6
|
|
|
$
|
79.0
|
|
|
(42
|
)%
|
OIBDA as a percentage of revenues
|
|
18
|
%
|
|
34
|
%
|
|
|
|
|
Nine Months Ended
|
|
|
|||||||
Revenues- Live Events
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Live events
|
|
$
|
81.6
|
|
|
$
|
86.1
|
|
|
(5
|
)%
|
North America
|
|
$
|
66.5
|
|
|
$
|
67.6
|
|
|
(2
|
)%
|
International
|
|
$
|
15.1
|
|
|
$
|
18.5
|
|
|
(18
|
)%
|
Total live event attendance
|
|
1,454,500
|
|
|
1,483,700
|
|
|
(2
|
)%
|
||
Number of North American events
|
|
207
|
|
|
204
|
|
|
1
|
%
|
||
Average North American attendance
|
|
6,100
|
|
|
6,100
|
|
|
—
|
%
|
||
Average North American ticket price (dollars)
|
|
$
|
49.66
|
|
|
$
|
49.63
|
|
|
—
|
%
|
Number of international events
|
|
29
|
|
|
39
|
|
|
(26
|
)%
|
||
Average international attendance
|
|
6,400
|
|
|
6,300
|
|
|
2
|
%
|
||
Average international ticket price (dollars)
|
|
$
|
79.99
|
|
|
$
|
69.92
|
|
|
14
|
%
|
Travel packages
|
|
$
|
2.2
|
|
|
$
|
1.6
|
|
|
38
|
%
|
Total live events
|
|
$
|
83.8
|
|
|
$
|
87.7
|
|
|
(4
|
)%
|
|
|
Nine Months Ended
|
|
|
|||||||
OIBDA-Live Events
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Live events
|
|
$
|
22.4
|
|
|
$
|
26.5
|
|
|
(15
|
)%
|
Travel packages
|
|
0.8
|
|
|
0.7
|
|
|
14
|
%
|
||
Total
|
|
$
|
23.2
|
|
|
$
|
27.2
|
|
|
(15
|
)%
|
OIBDA as a percentage of revenues
|
|
28
|
%
|
|
31
|
%
|
|
|
|
|
Nine Months Ended
|
|
|
|||||||
Revenues-Consumer Products Division
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Licensing
|
|
$
|
29.5
|
|
|
$
|
36.4
|
|
|
(19
|
)%
|
Venue merchandise
|
|
15.7
|
|
|
16.0
|
|
|
(2
|
)%
|
||
Domestic per capita spending (dollars)
|
|
$
|
9.79
|
|
|
$
|
10.65
|
|
|
(8
|
)%
|
WWEShop
|
|
12.5
|
|
|
9.5
|
|
|
32
|
%
|
||
Average WWEShop revenues per order (dollars)
|
|
$
|
49.15
|
|
|
$
|
48.23
|
|
|
2
|
%
|
Total
|
|
$
|
57.7
|
|
|
$
|
61.9
|
|
|
(7
|
)%
|
|
|
Nine Months Ended
|
|
|
|||||||
OIBDA-Consumer Products Division
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Licensing
|
|
$
|
16.5
|
|
|
$
|
27.7
|
|
|
(40
|
)%
|
Venue merchandise
|
|
6.3
|
|
|
6.2
|
|
|
2
|
%
|
||
WWEShop
|
|
2.4
|
|
|
1.7
|
|
|
41
|
%
|
||
Total
|
|
$
|
25.2
|
|
|
$
|
35.6
|
|
|
(29
|
)%
|
OIBDA as a percentage of revenues
|
|
44
|
%
|
|
58
|
%
|
|
|
|
|
|
|
|
|
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*
|
|
2014
|
|
Revenue
|
|
OIBDA
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Leprechaun: Origins
|
|
Aug 2014
|
|
$
|
1.0
|
|
|
$
|
1.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$ N/A
|
|
$
|
—
|
|
|
$ N/A
|
|
|||
Oculus
|
|
April 2014
|
|
3.0
|
|
|
3.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
—
|
|
|
N/A
|
|
|||||||||
Scooby Doo! WrestleMania Mystery
|
|
Mar 2014
|
|
1.3
|
|
|
1.0
|
|
|
0.5
|
|
|
0.2
|
|
|
0.5
|
|
|
N/A
|
|
0.2
|
|
|
N/A
|
|
|||||||||
|
|
|
|
5.3
|
|
|
5.0
|
|
|
0.5
|
|
|
0.2
|
|
|
0.5
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Christmas Bounty
|
|
Nov 2013
|
|
3.7
|
|
|
0.1
|
|
|
4.1
|
|
|
0.5
|
|
|
—
|
|
|
N/A
|
|
|
(0.1
|
)
|
|
N/A
|
|
||||||||
12 Rounds 2: Reloaded
|
|
June 2013
|
|
1.4
|
|
|
1.0
|
|
|
0.8
|
|
|
0.4
|
|
|
0.8
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
||||||||
No One Lives
|
|
May 2013
|
|
2.2
|
|
|
0.4
|
|
|
0.9
|
|
|
(0.8
|
)
|
|
—
|
|
|
0.8
|
|
|
—
|
|
|
(0.9
|
)
|
||||||||
The Call
|
|
Mar 2013
|
|
1.0
|
|
|
0.4
|
|
|
4.0
|
|
|
3.4
|
|
|
3.7
|
|
|
0.1
|
|
|
3.1
|
|
|
0.1
|
|
||||||||
Dead Man Down
|
|
Mar 2013
|
|
5.8
|
|
|
1.0
|
|
|
—
|
|
|
(4.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.7
|
)
|
||||||||
The Marine 3: Homefront
|
|
Mar 2013
|
|
1.5
|
|
|
0.8
|
|
|
1.2
|
|
|
0.6
|
|
|
1.1
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
||||||||
|
|
|
|
15.6
|
|
|
3.7
|
|
|
11.0
|
|
|
(0.6
|
)
|
|
5.6
|
|
|
0.9
|
|
|
4.0
|
|
|
(5.5
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Prior Releases
|
|
|
|
116.3
|
|
|
3.1
|
|
|
103.6
|
|
|
(31.0
|
)
|
|
1.9
|
|
|
4.9
|
|
|
0.7
|
|
|
(4.8
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Completed but not released
|
|
5.1
|
|
|
5.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
In production
|
|
|
|
10.5
|
|
|
10.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
In development
|
|
|
|
0.5
|
|
|
0.5
|
|
|
—
|
|
|
(4.4
|
)
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
||||||||
Sub-total
|
|
|
|
$
|
153.3
|
|
|
$
|
27.9
|
|
|
$
|
115.1
|
|
|
$
|
(35.8
|
)
|
|
$
|
8.0
|
|
|
$
|
5.8
|
|
|
$
|
4.6
|
|
|
$
|
(10.3
|
)
|
Selling, General & Administrative Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3.7
|
)
|
|
(2.5
|
)
|
||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.9
|
|
|
$
|
(12.8
|
)
|
|
|
Nine Months Ended
|
|
|
|||||||
Revenues- Corporate & Other
(dollars in millions )
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Other
|
|
$
|
2.2
|
|
|
$
|
2.3
|
|
|
(4
|
)%
|
|
|
Nine Months Ended
|
|
|
|||||||
OIBDA- Corporate & Other
(dollars in millions )
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Corporate & Other
|
|
$
|
(114.0
|
)
|
|
$
|
(93.1
|
)
|
|
22
|
%
|
|
|
Nine Months Ended
|
|
|
|||||||
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Staff related
|
|
$
|
41.9
|
|
|
$
|
36.5
|
|
|
15
|
%
|
Management incentive compensation
|
|
9.4
|
|
|
5.1
|
|
|
84
|
%
|
||
Legal, accounting and other professional
|
|
17.4
|
|
|
11.0
|
|
|
58
|
%
|
||
Travel and entertainment expense
|
|
4.9
|
|
|
3.6
|
|
|
36
|
%
|
||
Advertising, marketing and promotion
|
|
7.2
|
|
|
5.9
|
|
|
22
|
%
|
||
Corporate insurance
|
|
2.7
|
|
|
3.1
|
|
|
(13
|
)%
|
||
Bad debt recovery
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|
—
|
%
|
||
All other
|
|
33.1
|
|
|
30.6
|
|
|
8
|
%
|
||
Total corporate & other expenses
|
|
$
|
116.2
|
|
|
$
|
95.4
|
|
|
22
|
%
|
Corporate & Other as a percentage of net revenues
|
|
29
|
%
|
|
24
|
%
|
|
|
|
|
Nine Months Ended
|
|
|
|||||||
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Depreciation and amortization
|
|
$
|
20.6
|
|
|
$
|
17.8
|
|
|
16
|
%
|
|
|
Nine Months Ended
|
|
|
|||||||
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
Loss on equity investment
|
|
$
|
(4.0
|
)
|
|
$
|
—
|
|
|
(100
|
)%
|
Investment income, interest and other expense, net
|
|
(2.1
|
)
|
|
(1.6
|
)
|
|
31
|
%
|
|
|
Nine Months Ended
|
|
|
|||||||
|
|
September 30,
2014 |
|
September 30,
2013 |
|
increase
(decrease)
|
|||||
(Benefit from) provision for income taxes
|
|
$
|
(17.3
|
)
|
|
$
|
5.8
|
|
|
(398
|
)%
|
Effective tax rate
|
|
38
|
%
|
|
36
|
%
|
|
|
•
|
Revenue Recognition for WWE Network
|
•
|
Programming Amortization for WWE Network
|
|
|
World Wrestling Entertainment, Inc.
(Registrant)
|
||
|
|
|
|
|
Dated:
|
October 30, 2014
|
By: /s/
|
George A. Barrios
|
|
|
|
|
George A. Barrios
|
|
|
|
|
Chief Strategy and Financial Officer
|
|
|
|
|
(principal financial officer
|
|
|
|
|
and authorized signatory)
|
|
|
|
|
|
|
|
|
/s/
|
Mark Kowal
|
|
|
|
|
Mark Kowal
|
|
|
|
|
Senior Vice President, Corporate Controller
|
|
|
|
|
(principal accounting officer and authorized
|
|
|
|
|
signatory)
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Indemnitee shall have the right to employ Indemnitee’s counsel in any such Proceeding at Indemnitee’s expense;
and
|
b.
|
if:
|
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 30, 2014
|
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;
|
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 30, 2014
|
By: /s/
|
George A. Barrios
|
|
|
|
|
George A. Barrios
|
|
|
|
|
Chief Strategy and Financial Officer
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as amended; and
|
(2)
|
The information contained in the report fairly presents, in all material aspects, the financial condition and results of operations of the Company.
|
Dated:
|
October 30, 2014
|
By: /s/
|
Vincent K. McMahon
|
|
|
|
|
Vincent K. McMahon
|
|
|
|
|
Chairman of the Board and
|
|
|
|
|
Chief Executive Officer
|
|
|
|
|
|
|
|
|
By: /s/
|
George A. Barrios
|
|
|
|
|
George A. Barrios
|
|
|
|
|
Chief Strategy and Financial Officer
|
|
|
|
|
|
|
|
|
|
|
|