WWE® Reports 2012 Fourth Quarter and Full Year Results

  WWE® Reports 2012 Fourth Quarter and Full Year Results

Business Wire

STAMFORD, Conn. -- February 28, 2013

WWE (NYSE:WWE) today announced financial results for its fourth quarter ended
December31, 2012. Revenues totaled $115.1 million as compared to $112.9
million in the prior-year quarter. Operating income was $2.6 million as
compared to a loss of $13.1 million in the prior-year quarter. Net income was
$0.6 million, or $0.01 per share, as compared to a loss of $8.6 million, or
$(0.12) per share, in the prior-year quarter. Excluding items that impacted
comparability on a year-over-year basis, Adjusted Operating income was $5.4
million as compared to $3.1 million in the prior-year quarter, and Adjusted
Net income was $1.3 million, or $0.02 per share, as compared to $1.8 million,
or $0.02 per share, in the prior-year quarter. On an “As Reported” basis, the
results of WWE's movie portfolio, including reduced film impairment charges,
were a significant component of the rise in fourth-quarter earnings. Excluding
the impact of these impairment charges and network-related expenses, the
growth in “Adjusted” Operating income was predominantly from the licensing of
new television programs and digital content, which more than offset ongoing
investment to support the company's long-term growth objectives. Adjusted
earnings, however, declined due to an increase in the effective tax-rate.

“In the fourth quarter, we continued to make important progress on our key
strategic initiatives, expanding the production and licensing of new programs
and enhancing our brands,” stated Vince McMahon, Chairman and Chief Executive
Officer. “Although we did not announce the launch of a domestic television
network during the year, we believe, now more than ever, that we can realize
the full value of our intellectual property using a variety of approaches in
our global markets. Our confidence is based on the rising value of content and
the tremendous global appeal of our brands.”

“In 2012, our traditional core businesses (excluding the results of WWE
Studios and network-related expenses) delivered EBITDA of $77 million, in line
with our performance over the preceding four years, which has ranged from $76
million to $96 million. Based on the anticipated expiration of key commercial
agreements and other opportunities to maximize our content value, we believe
we have the potential to achieve a significant increase in earnings,” added
George Barrios, Chief Financial Officer. “In order to achieve this growth, it
is critical that we invest in our production and creative capabilities. We
expect that 2013 EBITDA performance will approximate our 2012 results, plus or
minus 10%. In addition, we anticipate that net income will be impacted by
incremental expenses from the return to a more normalized tax rate (30%-35% as
compared to 26% in 2012) and increased depreciation of approximately $2
million to $3 million that derives from our ongoing capital investments to
support our long-term growth initiatives. (Please see "WWE Announces Business
Plan And Path to Significant Earnings Growth" release for more details.)

Comparability of Results

Our results for the current-year quarter included $2.3 million in
network-related operating expenses and a $0.5 million film impairment charge.
Results for the prior-year quarter included $4.0 million in network-related
operating expenses and $12.2 million in film impairment charges. In order to
facilitate an analysis of our financial results on a more comparable basis,
where noted, we have adjusted our results to exclude these items. (See
Schedules of Adjustments in Supplemental Information.)

Three Months Ended December31, 2012 - Results by Region and Business Segment

Revenues increased 2% based on our growth in North America. Revenues from
North America increased 12% driven by increased rights fees from the licensing
of new television programs and digital content, increased home entertainment
sales and, to a lesser extent, increased ticket sales from a higher number of
live events in the region than the prior-year quarter. Revenues from outside
North America declined 21% or $7.2 million primarily due to an anticipated
reduction in the number of live events, which impacted our Live and Televised
Entertainment segment (as described in the business segment discussion below).

The following tables reflect net revenues by region and by segment (in
millions):

                                   
                                     Three Months Ended
                                     December 31,  December 31,
                                     2012           2011
Net Revenues By Region:
North America                        $  87.6        $  78.2   
Europe/Middle East/Africa (EMEA)     19.1           19.1
Asia Pacific (APAC)                  7.0            9.4
Latin America                        1.4           6.2       
Total net revenues                   $  115.1      $  112.9  

                                   
                                     Three Months Ended
                                     December 31,  December 31,
                                     2012           2011
Net Revenues By Segment:
Live and Televised Entertainment     $  82.0        $  81.0   
Consumer Products                    20.4           18.7
Digital Media                        12.1           8.9
WWE Studios                          0.6           4.3       
Total net revenues                   $  115.1      $  112.9  

Live and Televised Entertainment

Revenues from our Live and Televised Entertainment businesses were $82.0
million for the current quarter as compared to $81.0 million in the prior-year
quarter. Increased rights fees from the production and licensing of new
television programs were affected by timing, with 8 fewer international live
events and a reduction in the number of pay-per-view events (3 vs. 4 in the
prior-year quarter).

  *Live Event revenues declined 13% to  $23.3 million from $26.9 million in
    the prior-year quarter primarily due to a reduction in the number of
    international events and lower average attendance at both our domestic and
    international events.

       *There were 75 total events, including 52 events in North America and
         23 events in international markets, in the current quarter as
         compared to 78 events in the prior-year quarter, including 47 events
         in North America and 31 in international markets.
       *North American live event revenues increased 9% to $13.9 million from
         $12.7 million in the prior-year quarter, reflecting increases in the
         number of events and average realized ticket price, which more than
         offset a slight decline in average attendance. There were 5
         additional events in the period, representing an 11% increase while
         the average ticket price for the quarter's events increased 4% to
         $44.64 from $42.87 in the prior-year quarter. Average attendance
         declined 5% to approximately 5,700 from 6,000, primarily due to
         weaker performance.
       *International live events generated revenues of $9.4 million as
         compared to $14.2 million in the prior-year quarter, reflecting a 26%
         decline in the number of events, with 8 fewer events in the period,
         and an 11% decrease in average attendance to approximately 5,600 from
         6,300 in the prior-year quarter. The decline in average attendance
         was predominantly due to weaker performance, as the prior-year
         quarter included an especially strong eight-event tour in Mexico.
         Partially offsetting the decline in events and attendance, the
         average ticket price increased 5% to $69.81 due in part to changes in
         the mix of ticket sales.

  *Pay-Per-View revenues were $13.0 million as compared to $14.6 million in
    the prior-year quarter reflecting the production of three pay-per-view
    events in the current quarter as compared to four in the prior-year
    quarter. In addition, revenue and buys were impacted by the timing of our
    Pay-Per-View distribution in the U.K. as our television partner in that
    country selected one fewer event in the current quarter for distribution
    via pay-per-view. On a comparable basis, for the events produced in the
    quarter, revenue increased approximately 4% as a 3% decline in buys was
    more than offset by a 7% increase in the average revenue per buy due in
    part to an increased proportion of buys to view our events in high
    definition, which generally attracts higher retail prices.

The details for the number of buys (in 000s) are as follows:

                                               Three Months Ended
Broadcast        Events (in chronological          December 31,  December 31,
Month            order)                            2012           2011
                                                                  
October          Hell in a Cell                    199            182
October          Vengeance                         —              121
November         Survivor Series                   208            281
December         WWE TLC                           175            179
                                                                  
Prior events                                       70            33
Total                                              652           796

  *Television revenues increased 20% to $40.6 million from $33.9 million in
    the prior-year quarter primarily due to the production and licensing of
    new programs. An additional hour of our Raw program was licensed to the
    USA Network and debuted in July 2012, and a new Saturday morning kids
    show, WWE Saturday Morning Slam, was introduced on The CW Network in
    August 2012. In addition, during the quarter, WWE began distribution of a
    new original series, the WWE Main Event, which airs on ION Television.

  *Venue Merchandise revenues were $3.8 million as compared to $3.9 million
    in the prior-year quarter. The 3% decline was primarily due to a decrease
    in total international attendance that arose from 8 fewer international
    live events in the current-year quarter. Total paid attendance and sales
    per capita at our North American events increased 4% and 5%, respectively.

Consumer Products

Revenues from our Consumer Products businesses increased 9% to $20.4 million
from $18.7 million in the prior-year quarter, primarily due to strong unit
sales from our home entertainment catalog that were partially offset by lower
sales of our licensed products.

  *Home Entertainment net revenues increased 48% to $9.6 million as compared
    to $6.5 million in the prior-year quarter driven by the promotion and
    strong sales of our catalog titles and two additional, lower-priced new
    releases. Revenue growth stemmed from a 43% increase in shipments to
    nearly 1.2 million units and improved sell through rates of our
    prior-period releases that more than offset a 16% reduction in average
    price to $11.31.
  *Licensing revenues declined 12% to $8.4 million as compared to $9.5
    million in the prior-year quarter with reduced sales across most product
    categories, especially video games, as well as novelty products, and
    apparel. Royalties earned from the sale of video games declined by $0.5
    million primarily from the absence of WWE All Stars, which was released in
    March 2011 and was not refreshed in 2012. In addition, shipments of our
    annual franchise video game declined 21% to 128,000 units. Royalties from
    the sale of toys increased 11%, or $0.6 million, reflecting the successful
    launch of our Brawlin' Buddies toy by Mattel.

    THQ Termination Agreement / Take-Two License Agreement

    On December 19, 2012, our video game licensee THQ Inc. ("THQ") declared
    bankruptcy. As a result, the Company reserved $1.7 million as bad debt for
    amounts that were due the Company from THQ at December 31, 2012. The
    amounts reserved primarily related to sponsorship agreements and various
    services WWE provided to THQ in support of WWE '13. In connection with the
    termination of our license agreement with THQ, the Company will recognize
    approximately $8.0 million of revenue during the first quarter of 2013
    relating to the unrecognized portion of an advance received when the
    Company entered into the license agreement with THQ in 2009. Additionally,
    upon termination of the agreement with THQ, the Company entered into a
    multi-year agreement with Take-Two Interactive Software, Inc. (Take-Two)
    to be the Company's video game licensee. As a result of THQ's bankruptcy,
    the Company will not collect royalties due in the first quarter. The
    Company has estimated the amount of this economic loss at between $4.0
    million to $5.0 million, and does not believe that this loss will have a
    material adverse effect on the Company's business, financial condition or
    results of operations.

  *Magazine publishing net revenues were $1.7 million as compared to $2.0
    million in the prior-year quarter, reflecting lower newsstand sales in the
    current-year quarter.

Digital Media

Revenues from our Digital Media related businesses were $12.1 million as
compared to $8.9 million in the prior-year quarter, representing a 36%
increase.

  *WWE.com revenues increased to $6.2 million from $2.7 million in the
    prior-year quarter, primarily due to increased rights fees associated with
    the licensing of original short-form content to YouTube and the licensing
    of next-day access of current WWE TV programs to Hulu Plus. The related
    programming agreements with YouTube and Hulu commenced February 2012 and
    September 2012, respectively. Sales of online advertising also increased
    from the prior-year quarter.
  *WWEShop revenues declined to $5.9 million from $6.2 million in the
    prior-year quarter as a 10% decline in average revenue per order to $47.10
    was partially offset by a 4% increase in the number of online merchandise
    sales to 125,000 orders.

WWE Studios

During the quarter, WWE Studios recognized revenue of $0.6 million as compared
to $4.3 million in the prior-year quarter, reflecting the timing of releases.
There were no feature films released in the current quarter  as compared to
one release, The Reunion, in the prior-year quarter. WWE Studios' movie
portfolio generated a loss of $0.6 million, including a $0.5 million film
impairment charge, compared to a loss of $13.8 million in the prior-year
quarter, which included $12.2 million in film charges. Excluding the impact of
those charges in both the current and prior-year quarter, the WWE Studios'
movie portfolio generated essentially break-even results compared to an
adjusted loss of $1.6 million in the prior-year quarter.

Profit Contribution (Net revenues less cost of revenues)

Profit contribution increased 89% to $45.9 million primarily due to improved
results (i.e., reduced losses) from our WWE Studios' movie projects as well as
increased rights fees from the licensing of new television programs and
digital content, stronger sell-through rates of our home entertainment catalog
titles and a reduction in certain talent-related expenses. The profit
contribution margin increased to 40% compared to 22% in the prior-year
quarter. Excluding the impact of film impairments, our Adjusted Profit
contribution increased 27% to $46.4 million and our adjusted profit
contribution margin was 40% compared to 32% in the prior-year quarter. (See
Schedules of Adjustments in Supplemental Information.)

Selling, general and administrative expenses

SG&A expenses were $37.4 million for the current-year quarter as compared to
$33.3 million in the prior-year quarter. These results reflected the return to
a more normalized level of management incentive compensation, which resulted
in a year-over-year increase of approximately $2.3 million, increased salary
expenses, and incremental bad debt expense due, in part, to the bankruptcy of
our former video game licensee. The rise in staffing costs (excluding
management incentive compensation) was incurred to support the expansion of
our television and digital content, including a potential network.

Depreciation and amortization

Depreciation and amortization expense totaled $5.9 million for the
current-year quarter as compared to $4.1 million in the prior-year quarter.
The increase in depreciation and amortization expense derives from our
investment in assets to support our long-term growth objectives, including the
launch of a potential network.

EBITDA

EBITDA was $8.5 million in the current-year quarter as compared to a loss of
$9.0 million in the prior-year quarter. Improved results were driven by the
performance of our movie portfolio and the licensing of additional television
and digital content, partially offset by the aforementioned increase in SG&A
expenses. Adjusted EBITDA (excluding the impact of network-related expenses
and film impairments) increased 57% to $11.3 million from $7.2 million in the
prior-year quarter.

Investment and Other (Expense) Income

Investment income, interest and other expense, net was a loss of $0.2 million
in the current-year quarter compared to a loss of $0.2 million in the
prior-year quarter.

Effective tax rate

The current year quarter'seffective tax rate was75%. The current quarter was
adversely impacted by $0.4 million of additional tax expense as a result of
differences between estimated and actual full year taxable income.
Additionally, the fourth quarter rate reflected a $0.2 million increase in
unrecognized tax benefits and $0.2 million to provide for dividends from a
foreign subsidiary. In total, these items were responsible for 33 percentage
points of the quarter's 75% effective rate.

Summary Results for the Year Ended December31, 2012

Total revenues for the year ended December31, 2012 were $484.0 million as
compared to $483.9 million in the prior year. Operating income for the current
year was $43.2 million versus $37.0 million in the prior year. Net income was
$31.4 million, or $0.42 per share, as compared to $24.8 million, or $0.33 per
share, in the prior year. EBITDA was $63.2 million for the current year as
compared to $52.0 million in the prior year. Excluding items that impacted
comparability on a year-over-year basis, Adjusted Operating income was $52.6
million compared to $64.4 million in the prior year, and Adjusted Net income
was $38.6 million, or $0.51 per share, compared to $43.3 million, or $0.58 per
share, in the prior year. On an “As Reported” basis, the results of WWE's
portfolio of movies, including a $22.2 million reduction in film impairment
charges, was a significant component of the rise in EBITDA for the year.
Excluding the impact of these impairment charges and network-related expenses,
“Adjusted” EBITDA declined 9% as growth from the licensing of new television
programs and digital content, as well as improved results from our
Pay-Per-View operations, were more than offset by lower video game sales,
ongoing investment to support the company's long-term objectives, and $10.8
million in incremental expenses from the return to a more normalized level of
management incentive compensation in the current year.

Year Ended December31, 2012 - Results by Region and Business Segment

Revenues were essentially flat to the prior year as growth from North America
was offset by a corresponding international decline. Revenue from North
America increased 4%, or $15.4 million, as the licensing of new television
programs and digital content, improved home entertainment sales, and a rise in
the number of domestic live events were partially offset by lower revenues
from our movie releases. Revenues from outside North America declined 11%, or
$15.3 million, primarily due to an anticipated reduction in the number of live
events and lower sales of licensed consumer products, particularly in the
Latin American and EMEA regions.

The following tables reflect net revenues by region and by segment (in
millions):

                            Year Ended
                              December 31,  December 31,
                              2012           2011
Net Revenues By Region:
North America                 $  365.9       $  350.5  
Europe/Middle East/Africa     70.7           76.1
Asia Pacific                  37.1           38.7
Latin America                 10.3          18.6      
Total net revenues            $  484.0      $  483.9  

                                  
                                     Year Ended
                                     December 31,  December 31,
                                     2012           2011
Net Revenues By Segment:                            
Live and Televised Entertainment     $  353.8       $  340.0  
Consumer Products                    87.8           94.9
Digital Media                        34.5           28.1
WWE Studios                          7.9           20.9      
Total net revenues                   $  484.0      $  483.9  

Live and Televised Entertainment

Revenues from our Live and Televised Entertainment businesses were $353.8
million for the current-year period as compared to $340.0 million in the
prior-year period, representing an increase of 4%.

                         Year Ended
                           December 31,  December 31,
                           2012           2011
Live events                $  103.7       $  104.7  
Venue merchandise          18.8           18.3
Pay-per-view               83.6           78.3
Television rights fees     139.5          131.5
Other                      8.2           7.2       
Total                      $  353.8      $  340.0  

Consumer Products

Revenues from our Consumer Products businesses were $87.8 million for the
current-year period as compared to $94.9 million in the prior-year period,
representing a decrease of 7%.

                     Year Ended
                      December 31,  December 31,
                      2012           2011
Licensing             $   46.3       $   54.4  
Home entertainment    33.0           30.4
Magazine publishing   6.0            7.7
Other                 2.5           2.4       
Total                 $   87.8      $   94.9  

Digital Media

Revenues from our Digital Media related businesses were $34.5 million as
compared to $28.1 million in the prior-year period, representing an increase
of 23%.

           Year Ended
              December 31,  December 31,
              2012           2011
WWE.com       $   19.7      $   12.5  
WWEShop       14.8          15.6      
Total         $   34.5      $   28.1  

WWE Studios

During the current year, WWE Studios recognized revenue of $7.9 million as
compared to $20.9 million in the prior year, reflecting the timing of releases
from our movie portfolio. Film performance improved by $24.0 million over the
prior year driven by the $22.2 million reduction of impairment charges in the
current year.

Profit Contribution (Net revenues less cost of revenues)

Profit contribution increased 18% to $199.6 million primarily driven by
reduced losses from our WWE Studios film projects, the strong performance of
our Pay-Per-View events, and the licensing of new television programming and
digital content. The growth in profit from these businesses was partially
offset by reduced video game sales and the return to a more normalized level
of management incentive compensation, which resulted in a $3.2 million
increase in expenses on a year-over-year basis. Excluding the film impairment
charges in the current and prior year, Adjusted Profit contribution increased
5% to $200.8 million and Adjusted Profit contribution margin increased to 41%
from 40% in the prior year. (See Schedules of Adjustments in Supplemental
Information.)

Selling, general and administrative expenses

SG&A expenses were $136.4 million for the current-year period as compared to
$116.7 million in the prior-year period. This 17% increase reflected the
return to a more normalized level of management incentive compensation, which
resulted in a year-over-year increase of approximately $7.6 million, higher
salary expenses as well as increased bad debt expense. The rise in staffing
costs (excluding management incentive compensation) was incurred primarily to
support a potential network. Network-related costs, including staffing costs,
totaled $8.2 million in the current-year period. Excluding these costs in both
periods, SG&A expenses increased 14% to $128.2 million from $112.7 million in
the prior-year period.

EBITDA

EBITDA increased 22% to $63.2 million from $52.0 million in the prior year.
The growth in profit contribution, driven by reduced losses from our WWE
Studios film projects and the strong performance of our Pay-Per-View events,
more than offset the aforementioned increase in SG&A expenses. Excluding the
impact of network-related expenses and film impairments, however, Adjusted
EBITDA declined 9% to $72.6 million from $79.4 million in the prior year.

Investment and Other Income (Expense)

Investment income was $2.2 million in the current year as compared to $2.1
million in the prior year. Interest expense of $1.7 million in the current
year includes the amortization of loan origination costs and a fee on the
unused portion of our revolving credit facility, which was established in the
third quarter of 2011. Interest expense in the prior year was $0.6 million and
related primarily to our mortgage which was repaid in full in 2012. Other
expense was approximately $1.0 million in the current year as compared to $1.6
million in the prior year. The decline reflected changes in state taxes not
based on income.

Effective tax rate

The effective tax rate was 26% in the current year as compared to 33% in the
prior year. The current-year effective tax rate was positively impacted by the
recognition of approximately $4.4 million in previously unrecognized tax
benefits, primarily related to the settlement of several audits including the
State of Connecticut, the IRS and other state and local jurisdictions.

Cash Flows

Net cash provided by operating activities was $63.0 million for the year ended
December31, 2012 as compared to $63.2 million in the prior year.

Purchases of property and equipment and other assets increased $6.0 million
from the prior-year period to $33.9 million. The level of capital spending and
the increase from the prior year were primarily due to investment in assets to
develop the infrastructure which supports our efforts to create and distribute
new content, including through a potential network.

Additional Information

Additional business metrics are made available to investors on a monthly basis
on our corporate website - corporate.wwe.com.

Note: WWE will host a conference call on February28, 2013 at 11:00 a.m. ET to
discuss the Company's earnings results for the fourth quarter of 2012. All
interested parties can access the conference call by dialing 855-993-1400
(conference ID: WWE). Please reserve a line 15 minutes prior to the start time
of the conference call. A presentation that will be referenced during the call
can be found at the Company web site at corporate.wwe.com. A replay of the
call will be available approximately three hours after the conference call
concludes, and can be accessed at corporate.wwe.com.

WWE, a publicly traded company (NYSE: WWE), is an integrated media
organization and recognized leader in global entertainment. The company
consists of a portfolio of businesses that create and deliver original content
52 weeks a year to a global audience. WWE is committed to family friendly
entertainment on its television programming, pay-per-view, digital media and
publishing platforms. WWE programming is broadcast in more than 145 countries
and 30 languages and reaches more than 600 million homes worldwide. The
company is headquartered in Stamford, Conn., with offices in New York, Los
Angeles, Miami, London, Mumbai, Shanghai, Singapore, Istanbul and Tokyo.
Additional information on WWE (NYSE: WWE) can be found at wwe.com and
corporate.wwe.com. For information on our global activities, go to
http://www.wwe.com/worldwide/.

Trademarks: All WWE programming, talent names, images, likenesses, slogans,
wrestling moves, trademarks, logos and copyrights are the exclusive property
of WWE and its subsidiaries. All other trademarks, logos and copyrights are
the property of their respective owners.

Forward-Looking Statements: This press release contains forward-looking
statements pursuant to the safe harbor provisions of the Securities Litigation
Reform Act of 1995, which are subject to various risks and uncertainties.
These risks and uncertainties include, without limitation, risks relating to
maintaining and renewing key agreements, including television and pay-per-view
programming distribution agreements; the need for continually developing
creative and entertaining programming; the continued importance of key
performers and the services of Vincent McMahon; the conditions of the markets
in which we compete and acceptance of the Company's brands, media and
merchandise within those markets; our exposure to bad debt risk; uncertainties
relating to regulatory and litigation matters; risks resulting from the highly
competitive nature of our markets; uncertainties associated with international
markets; the importance of protecting our intellectual property and complying
with the intellectual property rights of others; risks associated with
producing and travelling to and from our large live events, both domestically
and internationally; the risk of accidents or injuries during our physically
demanding events; risks relating to our film business; risks relating to
increasing content production for distribution on various platforms, including
the potential creation of a WWE Network; risks relating to our computer
systems and online operations; risks relating to the large number of shares of
common stock controlled by members of the McMahon family and the possibility
of the sale of their stock by the McMahons or the perception of the
possibility of such sales; the relatively small public float of our stock; 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. In addition, our dividend is
dependent on a number of factors, including, among other things, our liquidity
and historical and projected cash flow, strategic plan (including alternative
uses of capital), our financial results and condition, contractual and legal
restrictions on the payment of dividends, general economic and competitive
conditions and such other factors as our Board of Directors may consider
relevant.

                                               
                                                   
World Wrestling Entertainment, Inc.
Consolidated Income Statements
(In millions, except per share data)
(Unaudited)
                                                   
                     Three Months Ended            Year Ended
                     December 31,  December 31,   December 31,  December 31,
                     2012           2011           2012           2011
Net revenues         $  115.1       $  112.9       $  484.0       $  483.9
                                                                  
Cost of revenues     69.2           88.6           284.4          315.2
Selling, general
and                  37.4           33.3           136.4          116.7
administrative
expenses
Depreciation and     5.9           4.1           20.0          15.0      
amortization
Operating income     2.6           (13.1     )    43.2          37.0      
(loss)
Investment           0.5            0.6            2.2            2.1
income, net
Interest expense     (0.3      )    (0.4      )    (1.7      )    (0.6      )
Other expense,       (0.4      )    (0.4      )    (1.0      )    (1.6      )
net
Income (loss)
before income        2.4            (13.3     )    42.7           36.9
taxes
Provision
(benefit) for        1.8           (4.7      )    11.3          12.1      
income taxes
Net income           $  0.6        $  (8.6   )    $  31.4       $  24.8   
(loss)
Earnings (loss)
per share:
Basic and            $  0.01       $  (0.12  )    $  0.42       $  0.33   
diluted
Weighted average
common shares
outstanding:
Basic                74.8           74.4           74.6           74.2
Diluted              75.1           74.8           75.0           74.9

                                            
                                               
World Wrestling Entertainment, Inc.
Consolidated Balance Sheets
(In millions)
(Unaudited)
                                               
                                               As of
                                               December 31,  December 31,
                                               2012           2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                      $  66.0        $  52.5
Short-term investments, net                    86.3           103.3
Accounts receivable, net                       50.7           56.7
Inventory                                      1.8            1.7
Deferred income taxes                          14.4           11.1
Prepaid expenses and other current assets      15.3          14.4      
Total current assets                           234.5         239.7     
PROPERTY AND EQUIPMENT, NET                    102.2          96.5
FEATURE FILM PRODUCTION ASSETS, NET            23.7           23.6
TELEVISION PRODUCTION ASSETS                   6.3            0.3
INVESTMENT SECURITIES                          5.2            10.2
OTHER ASSETS                                   9.5           8.3       
TOTAL ASSETS                                   $  381.4      $  378.6  
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt              $  —           $  1.3
Accounts payable and accrued expenses          49.0           46.3
Deferred income                                28.6          21.7      
Total current liabilities                      77.6          69.3      
LONG-TERM DEBT                                 —              0.3
NON-CURRENT INCOME TAX LIABILITIES             9.1            5.6
NON-CURRENT DEFERRED INCOME                    —              8.2
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Class A common stock                           0.3            0.3
Class B convertible common stock               0.5            0.5
Additional paid-in capital                     341.7          338.4
Accumulated other comprehensive income         4.0            3.3
Accumulated deficit                            (51.8     )    (47.3     )
Total stockholders’ equity                     294.7         295.2     
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY     $  381.4      $  378.6  

                                               
                                                   
World Wrestling Entertainment, Inc.
Consolidated Statements of Cash Flows
(In millions)
(Unaudited)
                                                   
                                                   Year Ended
                                                   December 31,  December 31,
                                                   2012           2011
OPERATING ACTIVITIES:
Net income                                         $   31.4       $   24.8
Adjustments to reconcile net income to net
cash provided by operating
activities:
Amortization and impairments of feature film       8.8            39.7
production assets
Depreciation and amortization                      20.0           15.0
Realized gains on sales of investments             (0.2      )    (0.1      )
Amortization of bond premium                       2.3            2.6
Amortization of debt issuance costs                0.6            0.2
Stock-based compensation                           3.8            2.9
Provision for (recovery from) doubtful             2.5            (0.7      )
accounts
Services provided in exchange for equity           (0.4      )    —
instruments
Loss on disposal of property and equipment         0.1            1.4
Provision for (benefit from) deferred income       6.2            (6.4      )
taxes
Excess tax benefits from stock-based payment       —              (0.1      )
arrangements
Cash provided/(used) by changes in operating
assets and liabilities:
Accounts receivable                                4.5            (1.9      )
Inventory                                          (0.1      )    0.4
Prepaid expenses and other assets                  (2.7      )    4.8
Feature film production assets                     (8.9      )    (7.1      )
Television production assets                       (6.1      )    (0.3      )
Accounts payable and accrued expenses              2.5            (3.7      )
Deferred income                                    (1.3      )    (8.3      )
Net cash provided by operating activities          63.0          63.2      
INVESTING ACTIVITIES:
Purchase of property and equipment and other       (33.9     )    (27.9     )
assets
Purchases of short-term investments                (19.2     )    (47.9     )
Proceeds from sales or maturities of               45.2           45.1
investments
Purchase of cost method investment                 (5.0      )    —         
Net cash used in investing activities              (12.9     )    (30.7     )
FINANCING ACTIVITIES:
Repayment of long-term debt                        (1.6      )    (1.2      )
Debt issuance costs                                —              (1.8      )
Issuance of stock, net                             0.8            0.9
Dividends paid                                     (35.8     )    (47.8     )
Excess tax benefits from stock-based payment       —             0.1       
arrangements
Net cash used in financing activities              (36.6     )    (49.8     )
NET INCREASE (DECREASE) IN CASH AND CASH           13.5           (17.3     )
EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF            52.5          69.8      
PERIOD
CASH AND CASH EQUIVALENTS, END OF PERIOD           $   66.0      $   52.5  
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for income taxes, net of refunds         $   7.2        $   12.1
Cash paid for interest                             $   0.8        $   0.4
NON-CASH INVESTING AND FINANCING
TRANSACTIONS:
Non-cash purchase of property and equipment        $   1.4        $   5.3
and other assets

                                                
                                                     
World Wrestling Entertainment, Inc.
Supplemental Information – EBITDA
(In millions)
(Unaudited)
                                                     
                       Three Months Ended            Year Ended
                       December 31,   December 31,   December      December
                       2012          2011           31,          31,
                                                     2012          2011
Net income             $   0.6        $   (8.6  )    $  31.4       $  24.8  
(loss)
Provision
(benefit) for          1.8            (4.7      )    11.3          12.1
income taxes
Investment,
interest and           0.2            0.2            0.5           0.1
other expense
(income), net
Depreciation and       5.9           4.1           20.0         15.0     
amortization
EBITDA                 $   8.5       $   (9.0  )    $  63.2      $  52.0  

Non-GAAP Measure:

 EBITDA is defined as net income (loss) before investment, interest and other
  expense/income, income taxes, depreciation and amortization. The Company's
  definition of EBITDA does not adjust its U.S. GAAP basis earnings for the
     amortization of Feature Film production assets. Although it is not a
recognized measure of performance under U.S. GAAP, EBITDA is presented because
 it is a widely accepted financial indicator of a company's performance. The
 Company uses EBITDA to measure its own performance, set goals for operating
    managers, and in our calculations of compliance with debt covenants in
 conjunction with our credit facility. EBITDA should not be considered as an
 alternative to net income, cash flows from operations or any other indicator
 of WWE's performance or liquidity, determined in accordance with U.S. GAAP.

                                               
                                                   
World Wrestling Entertainment, Inc.
Supplemental Information – Schedule of Adjustments

(In millions)
(Unaudited)
                                                   
                      Three Months Ended           Year Ended
                      December      December 31,   December 31,   December 31,
                      31,          2011           2012          2011
                      2012
Profit                $  45.9       $  24.3        $  199.6       $  168.7
contribution
                                                                  
Adjustments
(Added back):
Film impairment       0.5          12.2          1.2           23.4      
charge
                                                                  
Adjusted Profit       $  46.4      $  36.5       $  200.8      $  192.1  
contribution
                                                                  
Selling, general
and                   37.4          33.3           136.4          116.7
administrative
expenses
                                                                  
Adjustments
(Less):
Network-related       (2.3     )    (4.0      )    (8.2      )    (4.0      )
expenses
                                                                  
Adjusted Selling,
general and           $  35.1      $  29.3       $  128.2      $  112.7  
administrative
expenses
                                                                  
Depreciation and      5.9          4.1           20.0          15.0      
amortization
                                                                  
Operating income      $  2.6       $  (13.1  )    $  43.2       $  37.0   
(loss)
                                                                  
Adjusted              $  5.4       $  3.1        $  52.6       $  64.4   
Operating income
                                                                  
EBITDA                $  8.5       $  (9.0   )    $  63.2       $  52.0   
                                                                  
Adjusted EBITDA       $  11.3      $  7.2        $  72.6       $  79.4   

Non-GAAP Measure:

  Adjusted Profit contribution, Adjusted Selling, general and administrative
   expenses, Adjusted Operating income and Adjusted EBITDA exclude certain
  material items, which otherwise would impact the comparability of results
   between periods. These should not be considered as an alternative to net
income, cash flows from operations or any other indicator of WWE's performance
            or liquidity, determined in accordance with U.S. GAAP.

                                                 
                                                     
World Wrestling Entertainment, Inc.
Supplemental Information – Schedule of Adjustments
(In millions, except per share data)
(Unaudited)
                                                     
                        Three Months Ended           Year Ended
                        December      December 31,   December      December
                        31,          2011           31,          31,
                        2012                         2012          2011
Operating income        $  2.6        $  (13.1  )    $  43.2       $  37.0
(loss)
                                                                   
Adjustments (Added
back):
Film impairment         0.5           12.2           1.2           23.4
charge
Network-related         2.3          4.0           8.2          4.0      
expenses
                                                                   
Adjusted Operating      $  5.4       $  3.1        $  52.6      $  64.4  
income
                                                                   
Investment,
interest and other      (0.2     )    (0.2      )    (0.5     )    (0.1     )
(expense) income,
net
                                                                   
Adjusted Income         $  5.2       $  2.9        $  52.1      $  64.3  
before taxes
                                                                   
Provision (benefit)     1.8           (4.7      )    11.3          12.1
for taxes
                                                                   
Adjustments (Added
back at period's
effective tax
rate):
Previously
unrecognized tax        —             —              4.1           —
benefits
Change due to
operating               2.1          5.8           (1.9     )    8.9      
adjustments
                                                                   
Adjusted Provision      $  3.9       $  1.1        $  13.5      $  21.0  
for taxes
                                                                   
Adjusted Net income     $  1.3       $  1.8        $  38.6      $  43.3  
                                                                   
Adjusted Earnings
per share:
Basic                   $  0.02      $  0.02       $  0.52      $  0.58  
Diluted                 $  0.02      $  0.02       $  0.51      $  0.58  
                                                                   
Weighted average
common shares
outstanding (In
millions):
Basic                   74.8         74.4          74.6         74.2     
Diluted                 75.1         74.8          75.0         74.9     

Non-GAAP Measure:

Adjusted Operating income, Adjusted Income before taxes, Adjusted Provision
for taxes, Adjusted Net income and Adjusted Earnings per share exclude certain
material items, which otherwise would impact the comparability of results
between periods. These should not be considered as an alternative to net
income, cash flows from operations or any other indicator of WWE’s performance
or liquidity, determined in accordance with U.S. GAAP.

                                                
                                                   
World Wrestling Entertainment, Inc.
Supplemental Information - Free Cash Flow
(In millions)
(Unaudited)
                                                   
                     Three Months Ended            Year Ended
                     December 31,  December 31,   December 31,  December 31,
                     2012           2011           2012           2011
Net cash provided
by operating         $   22.1       $   15.4       $   63.0       $   63.2
activities
                                                                  
Less cash used for
capital
expenditures and
other assets:
Purchase of
property and         (6.8      )    (17.5     )    (28.7     )    (26.2     )
equipment
Purchase of other    (0.4      )    —              (5.2      )    (1.8      )
assets
                                                               
Free Cash Flow       $   14.9      $   (2.1  )    $   29.1      $   35.2  

Non-GAAP Measure:

We define Free Cash Flow as net cash provided by operating activities less
cash used for capital expenditures. Although it is not a recognized measure of
liquidity under U.S. GAAP, Free Cash Flow provides useful information
regarding the amount of cash our continuing business is generating after
capital expenditures, available for reinvesting in the business and for
payment of dividends.

Contact:

WWE
Investors: Michael Weitz 203-352-8642
Media: Tara Carraro 203-352-8625
 
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