WWE Files Amended Forms; Revises Accounting for 2001 WCW Asset Acquisition
Submitted by Matthew Tremley on Saturday, April 24, 2004 at 2:14 PM EST
- WWE Files Amended Forms 10-K and 10-Q; Revises Accounting for 2001 WCW Asset Acquisition
STAMFORD, Conn.--(BUSINESS WIRE)--04/23/2004--World Wrestling Entertainment, Inc. (NYSE:WWE) announced today that it has filed an amended Form 10-K for fiscal 2003 and amended Form 10-Qs for fiscal 2004 with the Securities and Exchange Commission to revise the accounting related to the March 2001 acquisition of certain assets of World Championship Wrestling, Inc. ("WCW"(TM)). These changes principally affect fiscal 2001 and 2002 as follows:
-- $6.6 million of costs, which were originally recorded and capitalized as intangible assets, are now recorded as $1.7 million and $4.9 million of selling, general and administrative expense in fiscal 2001 and 2002, respectively. These costs arose from the termination of certain WCW licenses and related agreement assumed in the transaction.
-- The remaining $2.5 million of purchase price, which was originally assigned an indefinite life for accounting purposes, is now being amortized over a six-year period. This increases annual amortization expense by approximately $0.4 million in fiscal 2002 through 2007.
-- There were no changes to revenue or costs of revenues in any of the periods.
The company has also amended its fiscal 2004 quarterly financial statements to reflect the impact on the opening balance sheet, most significantly a $6.6 million decrease in its gross intangible assets, and additional amortization expense of approximately $0.3 million for the nine months ended January 23, 2004.
The following table summarizes the significant changes to the company's consolidated statements of operations. All amounts are in thousands except per share amounts.
Fiscal 2003
-----------
As
Previously As
Reported Restated
------------ ------------
Consolidated Statements of Operations:
Selling, general and administrative
expenses $ 99,349 $ 99,349
Gain on sale of property - -
Depreciation and amortization 10,545 10,965
Operating income 27,027 26,607
Interest income and other, net 1,114 -
Interest income - 2,011
Other (loss) income, net - (897)
Income from continuing operations
before income taxes 27,358 26,938
Provision for income taxes 10,996 10,836
Income from continuing operations 16,362 16,102
Cumulative effect of change in
accounting principle, net - -
Net (loss) income $ (19,195) $ (19,455)
Earnings (loss) per share (basic and
diluted):
Continuing operations $ 0.23 $ 0.22
Cumulative effect of change in
accounting principle $ - $ -
Net (loss) income $ ( 0.27) $ ( 0.28)
Fiscal 2002
-----------
As
Previously As
Reported Restated
------------ ------------
Consolidated Statements of Operations:
Selling, general and administrative
expenses $ 98,291 $ 103,191
Gain on sale of property - -
Depreciation and amortization 10,174 10,594
Operating income 50,033 44,713
Interest income and other, net 18,202 -
Interest income - 10,591
Other (loss) income, net - 5,213
Income from continuing operations
before income taxes 67,451 59,733
Provision for income taxes 24,953 22,020
Income from continuing operations 42,498 37,713
Cumulative effect of change in
accounting principle, net - 1,487
Net (loss) income $ 42,233 $ 38,935
Earnings (loss) per share (basic and
diluted):
Continuing operations $ 0.58 $ 0.51
Cumulative effect of change in
accounting principle $ - $ 0.02
Net (loss) income $ 0.58 $ 0.53
Fiscal 2001
-----------
As
Previously As
Reported Restated
------------ ------------
Consolidated Statements of Operations:
Selling, general and administrative
expenses $ 96,486 $ 98,141
Gain on sale of property - (1,249)
Depreciation and amortization 4,736 4,771
Operating income 87,609 87,168
Interest income and other, net 15,916 -
Interest income - 15,305
Other (loss) income, net - (638)
Income from continuing operations
before income taxes 102,669 100,979
Provision for income taxes 38,143 37,501
Income from continuing operations 64,526 63,478
Cumulative effect of change in
accounting principle, net - -
Net (loss) income $ 15,987 $ 14,939
Earnings (loss) per share (basic and
diluted):
Continuing operations $ 0.90 $ 0.88
Cumulative effect of change in
accounting principle $ - $ -
Net (loss) income $ 0.22 $ 0.21
The complete Forms 10-K/A and 10-Q/A are available on our Web site and have been filed with the SEC.
World Wrestling Entertainment, Inc. is an integrated media and entertainment company headquartered in Stamford, Conn., with offices in New York City, Los Angeles, Toronto, and London. Additional information on the company can be found at wwe.com and corporate.wwe.com.
Trademarks: The names of all World Wrestling Entertainment televised and live programming, talent names, images, likenesses, slogans and wrestling moves and all World Wrestling Entertainment logos are trademarks which are the exclusive property of World Wrestling Entertainment, Inc.
Forward-Looking Statements: This news release contains forward-looking statements pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995, which are subject to various risks and uncertainties. These risks and uncertainties include the conditions of the markets for live events, broadcast television, cable television, pay-per-view, Internet, entertainment, professional sports, and licensed merchandise; acceptance of the Company's brands, media and merchandise within those markets; uncertainties relating to litigation; risks associated with producing live events both domestically and internationally; uncertainties associated with international markets; risks relating to maintaining and renewing key agreements, including television distribution agreements; and other risks and factors set forth from time-to-time in Company filings with the Securities and Exchange Commission. Actual results could differ materially from those currently expected or anticipated.
CONTACT:World Wrestling Entertainment, Inc., Stamford Media: Gary Davis, 203-353-5066 or Investors: Michele Goldstein, 203-352-8642
Credit: corporate.wwe.com
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