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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________________

FORM 10-Q

____________________

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______

Commission File Number: 001-16131

WORLD WRESTLING ENTERTAINMENT, INC.

(Exact name of Registrant as specified in its charter)

Delaware

04-2693383

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

1241 East Main Street

Stamford, CT 06902

(203) 352-8600

(Address, including zip code, and telephone number, including area code,

of Registrant’s principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock, par value $0.01 per share

WWE

New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.   Yes    No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes    No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer x

Accelerated Filer  ¨

Non-Accelerated Filer  ¨

Smaller Reporting Company  ¨

Emerging Growth Company  ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes    No 

At November 2, 2021, the number of shares outstanding of the Registrant’s Class A common stock, par value $.01 per share, was 44,718,070 and the number of shares outstanding of the Registrant’s Class B common stock, par value $.01 per share, was 31,099,011.

TABLE OF CONTENTS

Page #

Part I – FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements (unaudited)

2

Consolidated Statements of Operations for the three and nine months ended September 30, 2021 and 2020

2

Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2021 and 2020

3

Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020

4

Consolidated Statements of Stockholders’ Equity for the three and nine months ended September 30, 2021 and 2020

5

Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 and 2020

7

Notes to Consolidated Financial Statements

8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

31

Item 3. Quantitative and Qualitative Disclosures about Market Risk

44

Item 4. Controls and Procedures

44

Part II – OTHER INFORMATION

45

Item 1. Legal Proceedings

45

Item 1A. Risk Factors

45

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

45

Item 6. Exhibits

45

Signatures

46

 

WORLD WRESTLING ENTERTAINMENT, INC.

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2021

2020

2021

2020

Net revenues

$

255,853

$

221,595

$

784,917

$

736,009

Operating expenses

139,039

107,999

437,192

400,783

Marketing and selling expenses

17,776

14,513

52,702

54,687

General and administrative expenses

24,941

25,144

87,835

75,891

Depreciation and amortization

10,161

10,557

31,845

32,225

Operating income

63,936

63,382

175,343

172,423

Interest expense

8,508

9,147

25,508

26,477

Other income, net

340

7,003

770

5,066

Income before income taxes

55,768

61,238

150,605

151,012

Provision for income taxes

12,282

12,960

34,086

32,772

Net income

$

43,486

$

48,278

$

116,519

$

118,240

Earnings per share: basic

$

0.57

$

0.62

$

1.52

$

1.53

Earnings per share: diluted

$

0.52

$

0.57

$

1.37

$

1.40

Weighted average common shares outstanding:

Basic

76,058

77,705

76,559

77,487

Diluted

84,264

84,125

85,156

84,397

Dividends declared per common share (Class A and B)

$

0.12

$

0.12

$

0.36

$

0.36


See accompanying notes to consolidated financial statements.

2


WORLD WRESTLING ENTERTAINMENT, INC.

Consolidated Statements of Comprehensive Income

(In thousands)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2021

2020

2021

2020

Net income

$

43,486

$

48,278

$

116,519

$

118,240

Other comprehensive (loss) income:

Foreign currency translation adjustments

(113)

181

(164)

(13)

Net unrealized holding (losses) gains on available-for-sale debt securities (net of tax (benefit) expense of $(45) and $8, and $(15) and $38, respectively)

(23)

26

(48)

120

Total other comprehensive (loss) income

(136)

207

(212)

107

Comprehensive income

$

43,350

$

48,485

$

116,307

$

118,347


See accompanying notes to consolidated financial statements.

3


WORLD WRESTLING ENTERTAINMENT, INC.

Consolidated Balance Sheets

(In thousands, except share data)

(Unaudited)

As of

September 30,

December 31,

2021

2020

Assets

Current assets:

Cash and cash equivalents

$

271,034

$

462,102

Short-term investments, net

177,732

131,295

Accounts receivable (net of allowance for doubtful accounts and returns

   of $5,409 and $4,050, respectively)

125,448

52,007

Inventory, net

7,314

8,386

Prepaid expenses and other current assets

28,501

73,062

Total current assets

610,029

726,852

Property and equipment, net

160,726

161,545

Finance lease right-of-use assets, net

297,273

310,844

Operating lease right-of-use assets, net

10,403

13,476

Content production assets, net

10,071

15,425

Investment securities

11,278

11,148

Deferred income tax assets, net

19,819

10,052

Other assets, net

47,014

47,980

Total assets

$

1,166,613

$

1,297,322

Liabilities and Stockholders' Equity

Current liabilities:

Current portion of long-term debt

$

425

$

100,412

Finance lease liabilities

9,283

9,587

Operating lease liabilities

4,952

3,963

Convertible debt

199,448

194,683

Accounts payable and accrued expenses

115,333

124,742

Deferred income

57,709

62,887

Total current liabilities

387,150

496,274

Long-term debt

21,390

21,700

Finance lease liabilities

372,034

379,894

Operating lease liabilities

6,127

9,723

Other non-current liabilities

7,149

937

Total liabilities

793,850

908,528

Commitments and contingencies

 

 

Stockholders' equity:

Class A common stock: ($0.01 par value; 180,000,000 shares authorized;

   44,713,333 and 46,694,963 shares issued and outstanding as of

   September 30, 2021 and December 31, 2020, respectively)

447

467

Class B convertible common stock: ($0.01 par value; 60,000,000 shares authorized;

   31,099,011 and 31,099,011 shares issued and outstanding as of

   September 30, 2021 and December 31, 2020, respectively)

311

311

Additional paid-in capital

415,054

424,758

Accumulated other comprehensive income

2,773

2,985

Accumulated deficit

(45,822)

(39,727)

Total stockholders’ equity

372,763

388,794

Total liabilities and stockholders' equity

$

1,166,613

$

1,297,322


See accompanying notes to consolidated financial statements.

4


WORLD WRESTLING ENTERTAINMENT, INC.

Consolidated Statements of Stockholders’ Equity

(In thousands)

(Unaudited)

Three Months Ended September 30, 2021

Accumulated

Common Stock

Additional

Other

Class A

Class B

Paid - in

Comprehensive

Accumulated

Shares

Amount

Shares

Amount

Capital

Income

Deficit

Total

Balance, June 30, 2021

44,928 

$

450 

31,099 

$

311 

$

419,239 

$

2,909 

$

(61,970)

$

360,939 

Net income

43,486 

43,486 

Other comprehensive loss

(136)

(136)

Repurchase and retirement of common stock

(432)

(5)

(4,028)

(17,847)

(21,880)

Stock issuances, net

217 

2 

1,004 

1,006 

Taxes paid related to net settlement upon vesting of equity awards

(4,904)

(4,904)

Cash dividends declared

386 

(9,491)

(9,105)

Stock-based compensation

3,357 

3,357 

Balance, September 30, 2021

44,713 

$

447 

31,099 

$

311 

$

415,054 

$

2,773 

$

(45,822)

$

372,763 

Nine Months Ended September 30, 2021

Accumulated

Common Stock

Additional

Other

Class A

Class B

Paid - in

Comprehensive

Accumulated

Shares

Amount

Shares

Amount

Capital

Income

Deficit

Total

Balance, December 31, 2020

46,695 

$

467 

31,099 

$

311 

$

424,758 

$

2,985 

$

(39,727)

$

388,794 

Net income

116,519 

116,519 

Other comprehensive loss

(212)

(212)

Repurchase and retirement of common stock

(2,266)

(23)

(20,773)

(94,834)

(115,630)

Stock issuances and other, net

284 

3 

2,970 

2,973 

Taxes paid related to net settlement upon vesting of equity awards

(5,609)

(5,609)

Cash dividends declared

386 

(27,780)

(