Vince sells 1.9 mln WWF shares, WWF Reports First Quarter Results Submitted by Calvin Martin on Thursday, August 23, 2001 at 10:22 AM EST
World Wrestling Federation Entertainment, Inc. Announces Invemed Catalyst Fund, L.P. as a 3.5% Shareholder of the Company
STAMFORD, Conn.--(BUSINESS WIRE)--Aug. 23, 2001--World Wrestling Federation Entertainment, Inc. (NYSE:WWF - news) announced today that the Invemed Catalyst Fund, L.P., a Delaware limited partnership, has agreed to purchase approximately 1.9 million shares of Class A common stock in a private transaction with Vincent K. McMahon, Chairman of World Wrestling Federation Entertainment, Inc. The shares were priced at $13.25 per share for a total value of $25.0 million. Prior to this transaction, Invemed Catalyst Fund had purchased approximately 696,000 shares of Class A common stock on the open market. Invemed Catalyst Fund will have acquired 3.5% of the total outstanding common shares of World Wrestling Federation Entertainment, Inc. as a cumulative effect of these transactions.
As part of the transaction, the Board of Directors of World Wrestling Federation Entertainment, Inc. will appoint Michael B. Solomon, Managing Principal of Gladwyne Partners, LLC, a general partner of the Invemed Catalyst Fund, to serve on the Board of the Company.
``The opportunity to have such a distinguished fund as Invemed Catalyst Fund as one of our largest shareholders is unquestionably a major plus for the Company,'' said Linda E. McMahon, Chief Executive Officer. ``I would like to welcome Mike to our Board and look forward to what promises to be a great working relationship,'' added Ms. McMahon.
Prior to founding Gladwyne Partners, Mr. Solomon was a 17-year partner of Lazard Freres.
World Wrestling Federation Entertainment, Inc. is an integrated media and entertainment company principally engaged in the development, production and marketing of television programming, pay-per-view programming, live events, and the licensing and sale of branded consumer products.
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, food and beverage, entertainment, professional sports, and licensed merchandise; acceptance of the Company's brands, media and merchandise within those markets; uncertainties relating to litigation 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 anticipated.
Credit: Yahoo! News
WWF Chairman sells 1.9 mln WWF shares to Invemed
NEW YORK, Aug 23 (Reuters) - World Wrestling Federation Entertainment Inc. (NYSE:WWF - news) on Thursday said that its chairman, Vincent McMahon, is selling 1.9 million WWF shares owned by him at a premium to Invemed Catalyst Fund LP. for $25 million.
WWF, a producer and promoter of professional wrestling matches, said McMahon received $13.25 a share for the stake, a premium to WWF's closing price of $12 on Wednesday.
Prior to the transaction, WWF said that the fund had acquired 696,000 of WWF's shares in the open market. In total, the fund now holds a 3.5 percent stake in WWF.
Michael Solomon, managing principal of Gladwyne Partners, LLC, a general partner of the Invemed Catalyst Fund, will now serve on WWF's board.
Credit: Yahoo! News
World Wrestling Federation Entertainment, Inc. Reports First Quarter Results: Revenues of $90.7 Million and Earnings Per Share of $0.16
STAMFORD, Conn.--(BUSINESS WIRE)--Aug. 23, 2001--World Wrestling Federation Entertainment, Inc. (NYSE:WWF - news) today announced its financial results for the first quarter ended July 27, 2001. Total revenues for the quarter were $90.7 million compared to $101.9 million in the same period last year. Earnings per common share were $0.16 for the quarter versus $0.22 in the first quarter in the prior fiscal year. During the quarter, the Company recorded a pre-tax gain of $9.3 million associated with the revaluation and sale of its warrant position in one of its licensees.
``Our first quarter earnings are largely within the range that we expected,'' said Linda E. McMahon Chief Executive Officer. ``We were aware that the year-over-year comparisons would be affected by lower ratings and increases in operating expenses and we included this in our most recent guidance. Our business plans assume growth in our key business drivers as the introduction of new story lines and talent take hold.''
``There are indications that the drivers have in fact responded as evidenced by our ratings. Ratings for Raw is War increased 17% over the past four weeks while ratings for SmackDown! increased 13% over the same period. Our July pay-per-view, Invasion/Fully Loaded, set an all-time record for this event with an initial estimate of approximately 681,000 buys, an increase of 70% compared to the same event last year,'' concluded Mrs. McMahon.
Quarterly Results by Business Segment
Live and Televised Entertainment
Total revenues decreased 4% to $72.4 million compared to $75.2 million in the prior year quarter.
Live Event revenues - There were seven fewer events in the quarter (43 events versus 50 events) compared to the same period last year. Event revenues were $14.9 million in the quarter ended July 27, 2001 compared to $18.6 million in the same period last year. Attendance was approximately 415,100 compared to 611,500 last year.
Pay-Per-View revenues - In period buys for the quarter were 1,431,000 as compared to 1,284,000 last year, an increase of 11%. There were approximately 167,000 out of period buys in the quarter versus 515,000 in the first quarter last year. As a result, total pay-per-view revenues declined 12% quarter versus quarter.
Television Rights Fees revenues more than doubled compared to the same period last year principally reflecting the impact of the agreement with Viacom that was effective as of last September. The increase in rights fees in international markets was a result of the combination of renegotiated contracts and new deals.
Television Advertising revenues decreased 17% largely due to lower sell through on Sunday Night Heat which is broadcast on MTV.
Branded Merchandise
Total revenues for branded merchandise decreased 32% to $18.3 million in the quarter compared to $26.7 million in the prior year quarter principally due to a decrease in licensing revenues resulting from the timing of cash receipts from our licensees.
Selling, General & Administrative Expenses
SG&A expenses for the quarter were $25.6 million. While the expenses were $5.0 million higher than last year, the prior year's SG&A expenses included a credit for the receipt of $2.2 million relating to the settlement of a lawsuit in the Company's favor. Additionally, the Company incurred increased overhead expenses related to its entertainment based complex in Times Square, advertising/promotion expenses, and consulting fees in part related to marketing and corporate communications initiatives.
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, food and beverage, entertainment, professional sports, and licensed merchandise; acceptance of the Company's brands, media and merchandise within those markets; uncertainties relating to litigation and other risks and factors set forth from time to time in Company filings with the SEC. Actual results could differ materially from those currently anticipated.
World Wrestling Federation Entertainment, Inc. Consolidated Statements of Income (dollars in thousands, except share and per share data) (Unaudited)
Three Months Ended
July 27, July 28, 2001 2000
Net revenues $ 90,669 $ 101,861 Cost of revenues 57,920 55,955 Selling, general and administrative expenses 25,602 20,593 Depreciation and amortization 2,240 1,303 Operating income 4,907 24,010 Interest expense 231 260 Interest and other income, net (a) 14,771 2,653 Income from continuing operations before income taxes 19,447 26,403 Provision for income taxes 7,455 10,147 Income from continuing operations 11,992 16,256 Discontinued Operations: (b) Loss from XFL operations, net of taxes of $280 and minority interest of $736 for the three months ended July 28, 2000 - (1,017) Net income $ 11,992 $ 15,239 Earnings (loss) per common share - basic and diluted: Continuing operations $ 0.16 $ 0.23 Discontinued operations $ - $ (0.01) Net income $ 0.16 $ 0.22 Weighted Average Shares Outstanding: Basic 72,932,384 69,370,189 Diluted 72,948,392 70,362,240
(a) Includes a $9.3 million gain ($5.8 million, net of tax) associated with the revaluation ($2.2 million) and sale ($7.1 million) of certain equity instruments. (b) Represents the results of operations of our discontinued XFL business.
