TKO Reports Third Quarter 2024 Results
Updates Full Year 2024 Guidance
Announces Credit Facility Refinancing
TKO Transaction Highlights
On
Third Quarter 2024 Financial Highlights
-
Revenue of
$681.2 million -
Net income of
$57.7 million -
Adjusted EBITDA1 of
$310.0 million
Full Year 2024 Guidance
-
The Company revised its target for revenue to the upper end of the range of
$2.670 billion to$2.745 billion -
The Company revised its target for Adjusted EBITDA to the upper end of the range of
$1.220 billion to$1.240 billion - The Company reaffirmed its target for Free Cash Flow Conversion2 in excess of 40%
“Additionally, two weeks ago we announced the authorization of a robust capital return program and an agreement to acquire industry-leading sports assets that will power our profile, give us greater scale, strengthen our position in the sports marketplace, and accelerate returns for shareholders. Just over a year since UFC and WWE came together to form TKO, our conviction in this business is as strong as ever.”
Third Quarter Consolidated Results
Revenue increased 52%, or
Net Income was
Adjusted EBITDA1increased 29%, or
Cash flows generated by operating activities were
Free Cash Flow2 was
Cash and cash equivalents were
Results by Operating Segment 3
The schedule below reflects TKO’s performance by operating segment:
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Three Months Ended |
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Nine Months Ended |
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(in millions) |
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2024 |
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2023 |
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2024 |
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2023 |
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Revenue: |
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UFC |
|
$ |
354.9 |
|
|
$ |
397.5 |
|
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$ |
1,062.3 |
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$ |
1,009.4 |
|
WWE |
|
|
326.3 |
|
|
|
51.6 |
|
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|
1,099.8 |
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|
51.6 |
|
Total Revenue |
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$ |
681.2 |
|
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$ |
449.1 |
|
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$ |
2,162.1 |
|
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$ |
1,061.0 |
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Adjusted EBITDA: |
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UFC |
|
$ |
195.6 |
|
|
$ |
238.3 |
|
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$ |
622.6 |
|
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$ |
612.8 |
|
WWE |
|
|
175.3 |
|
|
|
22.0 |
|
|
|
566.8 |
|
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|
22.0 |
|
Corporate |
|
|
(60.9 |
) |
|
|
(20.6 |
) |
|
|
(176.3 |
) |
|
|
(48.9 |
) |
Total Adjusted EBITDA |
|
$ |
310.0 |
|
|
$ |
239.7 |
|
|
$ |
1,013.1 |
|
|
$ |
585.9 |
|
UFC
Third Quarter 2024
Revenue decreased 11%, or
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Three Months Ended |
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Nine Months Ended |
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(in millions) |
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2024 |
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2023 |
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2024 |
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2023 |
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UFC Revenue: |
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Media Rights & Content |
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$ |
216.3 |
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$ |
266.7 |
|
$ |
681.4 |
|
$ |
702.5 |
Live Events |
|
|
51.4 |
|
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51.9 |
|
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155.8 |
|
|
115.6 |
Sponsorship |
|
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74.0 |
|
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63.8 |
|
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184.3 |
|
|
148.0 |
Consumer Products |
|
|
13.2 |
|
|
15.1 |
|
|
40.8 |
|
|
43.3 |
Total Revenue |
|
$ |
354.9 |
|
$ |
397.5 |
|
$ |
1,062.3 |
|
$ |
1,009.4 |
Adjusted EBITDA decreased 18%, or
Adjusted EBITDA margin decreased to 55% from 60%.
WWE
Third Quarter 2024
The table below includes WWE’s reported results for three months ended
Revenue was
WWE revenue was
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Three Months Ended |
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Nine Months Ended |
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(in millions) |
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2024 |
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2023 |
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2024 |
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2023 |
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WWE Revenue: |
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Media Rights & Content |
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$ |
227.4 |
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$ |
37.3 |
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$ |
709.2 |
|
$ |
37.3 |
Live Events |
|
|
51.1 |
|
|
5.4 |
|
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245.4 |
|
|
5.4 |
Sponsorship |
|
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21.7 |
|
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2.6 |
|
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60.2 |
|
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2.6 |
Consumer Products |
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26.1 |
|
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6.3 |
|
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85.0 |
|
|
6.3 |
Total Revenue |
|
$ |
326.3 |
|
$ |
51.6 |
|
$ |
1,099.8 |
|
$ |
51.6 |
Adjusted EBITDA was
WWE Adjusted EBITDA was
Adjusted EBITDA margin was 54% for the period from
Corporate
Third Quarter 2024
Corporate Adjusted EBITDA was a loss of
Including WWE activity for the period from
Full Year 2024 Guidance
In February, the Company issued revenue and Adjusted EBITDA guidance of
The Company reaffirms its target for Free Cash Flow Conversion of in excess of 40%.
The Company intends to provide additional detail related to its 2024 guidance on today’s earnings call.
Other Matters
Return of Capital Program
As previously disclosed, on
Endeavor Asset Acquisition
As previously disclosed, on
Credit Facility Refinancing
On
Legal Matters
As previously disclosed, on
For the three months ended
TKO Transaction
As previously disclosed, on
Notes
(1) |
The definition of Adjusted EBITDA can be found in the Non-GAAP Financial Measures section of the release on page 7. A reconciliation of Net Income (Loss) to Adjusted EBITDA for the three and nine months ended |
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(2) |
The definition of Free Cash Flow and Free Cash Flow Conversion can be found in the Non-GAAP Financial Measures section of the release on page 7. A reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow for the three and nine months ended |
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(3) |
An explanation of the basis of presentation can be found in this release on page 8. |
Non-GAAP Financial Measures
The Company refers to certain financial measures that are not recognized under
The Company definesAdjusted EBITDA as net income excluding income taxes, net interest expense, depreciation and amortization, equity-based compensation, merger and acquisition costs, certain legal costs, restructuring, severance and impairment charges, and certain other items when applicable. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue.
TKO management believes that Adjusted EBITDA and Adjusted EBITDA margin are useful to investors as these measures eliminate the significant level of non-cash depreciation and amortization expense that results from its capital investments and intangible assets, and improve comparability by eliminating the significant level of interest expense associated with TKO’s debt facilities, as well as income taxes which may not be comparable with other companies based on TKO’s tax and corporate structure. Adjusted EBITDA and Adjusted EBITDA margin are used as the primary bases to evaluate TKO’s consolidated operating performance.
Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of TKO’s results as reported under GAAP. Some of these limitations are:
- they do not reflect every cash expenditure, future requirements for capital expenditures, or contractual commitments;
- Adjusted EBITDA does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on TKO’s debt;
- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and Adjusted EBITDA and Adjusted EBITDA margin do not reflect any cash requirement for such replacements or improvements; and
- they are not adjusted for all non-cash income or expense items that are reflected in TKO’s statements of cash flows.
TKO management compensates for these limitations by using Adjusted EBITDA and Adjusted EBITDA margin along with other comparative tools, together with GAAP measurements, to assist in the evaluation of TKO’s operating performance.
Adjusted EBITDA and Adjusted EBITDA margin should not be considered substitutes for the reported results prepared in accordance with GAAP and should not be considered in isolation or as alternatives to net income as indicators of TKO’s financial performance, as measures of discretionary cash available to it to invest in the growth of its business or as measures of cash that will be available to TKO to meet its obligations. Although TKO uses Adjusted EBITDA and Adjusted EBITDA margin as financial measures to assess the performance of its business, such use is limited because it does not include certain material costs necessary to operate TKO’s business. TKO’s presentation of Adjusted EBITDA and Adjusted EBITDA margin should not be construed as indications that its future results will be unaffected by unusual or nonrecurring items. These non-GAAP financial measures, as determined and presented by TKO, may not be comparable to related or similarly titled measures reported by other companies. Set forth below are reconciliations of TKO’s most directly comparable financial measures calculated in accordance with GAAP to these non-GAAP financial measures on a consolidated basis.
The Company defines Free Cash Flow as net cash provided by operating activities less cash used for capital expenditures. TKO views net cash provided by operating activities as the most directly comparable GAAP measure. Free Cash Flow Conversion is defined as Free Cash Flow divided by Adjusted EBITDA. Although they are not recognized measures of liquidity under
Reconciliations of the Company’s Adjusted EBITDA and Free Cash Flow Conversion guidance to the most directly comparable GAAP financial measures cannot be provided without unreasonable efforts and are not provided herein because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations and certain other items reflected in our reconciliation of historical Adjusted EBITDA and Free Cash Flow, the amounts of which could be material.
Basis of Presentation
As a result of the timing of the consummation of the business combination on
Information in this release includes results for the WWE segment and Corporate on a combined basis to include periods prior to the business combination. Information presented on a combined basis does not reflect any pro forma adjustments or other adjustments for costs related to integration activities, cost savings or synergies that have been or may be achieved if the business combination occurred on
Effective
Additional Information
As previously announced, TKO will host a conference call at
Any accompanying materials referenced during the call will be made available on
About TKO
Website Disclosure
Investors and others should note that TKO announces material financial and operational information to its investors using press releases,
Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding TKO’s business strategy and plans, its expected strategic transactions, TKO’s announced capital return program, financial condition, and anticipated financial or operational performance. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees and involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from what is expressed or implied by the forward-looking statements, including, but not limited to: TKO’s ability to generate revenue from discretionary and corporate spending on events; TKO’s dependence on key relationships with television and cable networks, satellite providers, digital streaming partners and other distribution partners; TKO’s ability to adapt to or manage new content distribution platforms or changes in consumer behavior; adverse publicity concerning the Company or its key personnel; the highly competitive, rapidly changing and increasingly fragmented nature of the markets in which TKO operates; financial risks with owning and managing events for which TKO sells media and sponsorship rights, ticketing and hospitality; risks related to the integration and realization of the expected benefits of the business combination of UFC and WWE; the Company’s substantial indebtedness; and other important factors discussed in the section entitled “Risk Factors” in TKO’s Annual Report on Form 10-K for the fiscal year ended
Consolidated Income Statements (In millions, except share and per share data) (Unaudited) |
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Three Months Ended |
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Nine Months Ended |
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2024 |
|
2023 |
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2024 |
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2023 |
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Revenue |
|
$ |
681.2 |
|
|
$ |
449.1 |
|
|
$ |
2,162.1 |
|
|
$ |
1,061.0 |
|
Operating expenses: |
|
|
|
|
|
|
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Direct operating costs |
|
|
207.1 |
|
|
|
130.3 |
|
|
|
667.9 |
|
|
|
302.3 |
|
Selling, general and administrative expenses |
|
|
239.6 |
|
|
|
193.2 |
|
|
|
1,004.1 |
|
|
|
313.0 |
|
Depreciation and amortization |
|
|
98.1 |
|
|
|
31.7 |
|
|
|
309.1 |
|
|
|
61.9 |
|
Total operating expenses |
|
|
544.8 |
|
|
|
355.2 |
|
|
|
1,981.1 |
|
|
|
677.2 |
|
Operating income |
|
|
136.4 |
|
|
|
93.9 |
|
|
|
181.0 |
|
|
|
383.8 |
|
Other expenses: |
|
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|
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|
|
|
|
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Interest expense, net |
|
|
(62.7 |
) |
|
|
(60.6 |
) |
|
|
(192.9 |
) |
|
|
(172.4 |
) |
Other income (expense), net |
|
|
1.4 |
|
|
|
(0.7 |
) |
|
|
1.9 |
|
|
|
(1.6 |
) |
Income (loss) before income taxes and equity (earnings) losses of affiliates |
|
|
75.1 |
|
|
|
32.6 |
|
|
|
(10.0 |
) |
|
|
209.8 |
|
Provision for income taxes |
|
|
17.8 |
|
|
|
11.2 |
|
|
|
31.8 |
|
|
|
17.7 |
|
Income (loss) before equity (earnings) losses of affiliates |
|
|
57.3 |
|
|
|
21.4 |
|
|
|
(41.8 |
) |
|
|
192.1 |
|
Equity (earnings) losses of affiliates, net of tax |
|
|
(0.4 |
) |
|
|
(0.6 |
) |
|
|
(0.7 |
) |
|
|
0.3 |
|
Net income (loss) |
|
|
57.7 |
|
|
|
22.0 |
|
|
|
(41.1 |
) |
|
|
191.8 |
|
Less: Net income (loss) attributable to non-controlling interests |
|
|
34.6 |
|
|
|
(22.5 |
) |
|
|
(19.5 |
) |
|
|
(21.7 |
) |
Less: Net income attributable to |
|
|
— |
|
|
|
66.4 |
|
|
|
— |
|
|
|
235.4 |
|
Net income (loss) attributable to |
|
$ |
23.1 |
|
|
$ |
(21.9 |
) |
|
$ |
(21.6 |
) |
|
$ |
(21.9 |
) |
|
|
|
|
|
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|
|
|
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Basic net earnings (loss) per share of Class A common stock |
|
$ |
0.29 |
|
|
$ |
(0.26 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.26 |
) |
Diluted net earnings (loss) per share of Class A common stock |
|
$ |
0.28 |
|
|
$ |
(0.26 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.26 |
) |
|
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|
|
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Weighted average number of common shares used in computing basic net earnings (loss) per share |
|
|
80,966,252 |
|
|
|
83,161,406 |
|
|
|
81,399,221 |
|
|
|
83,161,406 |
|
Weighted average number of common shares used in computing diluted net earnings (loss) per share |
|
|
171,601,095 |
|
|
|
83,161,406 |
|
|
|
81,399,221 |
|
|
|
83,161,406 |
|
Consolidated Balance Sheets (In millions) (Unaudited) |
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As of |
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2024 |
|
2023 |
||||
Assets |
|
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|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
457.4 |
|
|
$ |
235.8 |
|
Accounts receivable, net |
|
|
250.6 |
|
|
|
135.4 |
|
Other current assets |
|
|
185.8 |
|
|
|
121.2 |
|
Total current assets |
|
|
893.8 |
|
|
|
492.4 |
|
Property, buildings and equipment, net |
|
|
528.2 |
|
|
|
608.4 |
|
Intangible assets, net |
|
|
3,325.2 |
|
|
|
3,563.7 |
|
Finance lease right-of-use assets, net |
|
|
233.0 |
|
|
|
255.7 |
|
Operating lease right-of-use assets, net |
|
|
33.5 |
|
|
|
35.5 |
|
|
|
|
7,664.0 |
|
|
|
7,666.5 |
|
Investments |
|
|
33.2 |
|
|
|
16.4 |
|
Other assets |
|
|
59.5 |
|
|
|
52.1 |
|
Total assets |
|
$ |
12,770.4 |
|
|
$ |
12,690.7 |
|
Liabilities, Non-controlling Interests and Stockholders' Equity |
|
|
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|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
31.7 |
|
|
$ |
42.0 |
|
Accrued liabilities |
|
|
613.4 |
|
|
|
267.4 |
|
Current portion of long-term debt |
|
|
22.2 |
|
|
|
22.4 |
|
Current portion of finance lease liabilities |
|
|
9.6 |
|
|
|
8.1 |
|
Current portion of operating lease liabilities |
|
|
4.7 |
|
|
|
4.2 |
|
Deferred revenue |
|
|
67.7 |
|
|
|
119.0 |
|
Other current liabilities |
|
|
14.1 |
|
|
|
9.0 |
|
Total current liabilities |
|
|
763.4 |
|
|
|
472.1 |
|
Long-term debt |
|
|
2,697.3 |
|
|
|
2,713.9 |
|
Long-term finance lease liabilities |
|
|
224.6 |
|
|
|
245.3 |
|
Long-term operating lease liabilities |
|
|
30.3 |
|
|
|
32.9 |
|
Deferred tax liabilities |
|
|
373.0 |
|
|
|
372.9 |
|
Other non-current liabilities |
|
|
5.9 |
|
|
|
3.0 |
|
Total liabilities |
|
|
4,094.5 |
|
|
|
3,840.1 |
|
Commitments and contingencies |
|
|
|
|
||||
Redeemable non-controlling interests |
|
|
13.8 |
|
|
|
11.6 |
|
Stockholders' equity: |
|
|
|
|
||||
Class A common stock |
|
|
— |
|
|
|
— |
|
Class B common stock |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
4,370.4 |
|
|
|
4,244.5 |
|
Accumulated other comprehensive loss |
|
|
(3.0 |
) |
|
|
(0.3 |
) |
Accumulated deficit |
|
|
(322.8 |
) |
|
|
(135.2 |
) |
|
|
|
4,044.6 |
|
|
|
4,109.0 |
|
Nonredeemable non-controlling interests |
|
|
4,617.5 |
|
|
|
4,730.0 |
|
Total stockholders' equity |
|
|
8,662.1 |
|
|
|
8,839.0 |
|
Total liabilities, nonredeemable non-controlling interests and stockholders' equity |
|
$ |
12,770.4 |
|
|
$ |
12,690.7 |
|
Consolidated Statements of Cash Flows (In millions) (Unaudited) |
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|
|
Nine Months Ended |
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|
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|
||||||
|
|
2024 |
|
2023 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
||||
Net (loss) income |
|
$ |
(41.1 |
) |
|
$ |
191.8 |
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
309.1 |
|
|
|
61.9 |
|
Amortization and impairments of content costs |
|
|
20.2 |
|
|
|
13.2 |
|
Amortization of original issue discount and deferred financing cost |
|
|
8.2 |
|
|
|
7.9 |
|
Loss on impairment of assets |
|
|
25.8 |
|
|
|
— |
|
Equity-based compensation |
|
|
74.6 |
|
|
|
36.1 |
|
Income taxes |
|
|
0.7 |
|
|
|
6.0 |
|
Other, net |
|
|
0.4 |
|
|
|
3.1 |
|
Changes in operating assets and liabilities, net of acquisition: |
|
|
|
|
||||
Accounts receivable |
|
|
(116.5 |
) |
|
|
(46.2 |
) |
Other current assets |
|
|
(41.7 |
) |
|
|
19.4 |
|
Other noncurrent assets |
|
|
(24.5 |
) |
|
|
(11.4 |
) |
Accounts payable and accrued liabilities |
|
|
357.4 |
|
|
|
13.0 |
|
Deferred revenue |
|
|
(49.3 |
) |
|
|
(39.8 |
) |
Other liabilities |
|
|
3.3 |
|
|
|
(7.3 |
) |
Net cash provided by operating activities |
|
|
526.6 |
|
|
|
247.7 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
||||
Purchases of property, buildings and equipment and other assets |
|
|
(54.6 |
) |
|
|
(12.6 |
) |
Investment in affiliates, net |
|
|
(21.5 |
) |
|
|
— |
|
Cash acquired from WWE |
|
|
— |
|
|
|
381.2 |
|
Payment of deferred consideration in the form of a dividend to former WWE shareholders |
|
|
— |
|
|
|
(321.0 |
) |
Proceeds from sale of property, buildings and equipment |
|
|
11.0 |
|
|
|
— |
|
Net cash (used in) provided by investing activities |
|
|
(65.1 |
) |
|
|
47.6 |
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
||||
Proceeds from borrowings |
|
|
150.0 |
|
|
|
— |
|
Repayment of long-term debt |
|
|
(183.5 |
) |
|
|
(24.5 |
) |
Taxes paid related to net settlement upon vesting of equity awards |
|
|
(5.7 |
) |
|
|
— |
|
Payments for financing costs |
|
|
— |
|
|
|
(0.3 |
) |
Distributions to members |
|
|
(41.8 |
) |
|
|
(260.5 |
) |
Repurchase and retirement of common stock |
|
|
(165.0 |
) |
|
|
— |
|
Proceeds from principal shareholder contributions |
|
|
6.4 |
|
|
|
— |
|
Net cash used in financing activities |
|
|
(239.6 |
) |
|
|
(285.3 |
) |
|
|
|
|
|
||||
Effects of exchange rate movements on cash |
|
|
(0.3 |
) |
|
|
(2.0 |
) |
|
|
|
|
|
||||
NET INCREASE IN CASH AND CASH EQUIVALENTS |
|
|
221.6 |
|
|
|
8.0 |
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
|
|
235.8 |
|
|
|
180.6 |
|
CASH AND CASH EQUIVALENTS, END OF PERIOD |
|
$ |
457.4 |
|
|
$ |
188.6 |
|
SUPPLEMENTAL CASH FLOW INFORMATION: |
|
|
|
|
||||
Cash paid for interest |
|
$ |
190.1 |
|
|
$ |
159.9 |
|
Cash payments for income taxes |
|
$ |
46.1 |
|
|
$ |
11.9 |
|
NON-CASH INVESTING AND FINANCING TRANSACTIONS: |
|
|
|
|
||||
Capital expenditures included in current liabilities |
|
$ |
10.3 |
|
|
$ |
4.9 |
|
Acquisition of WWE, net of deferred considerations |
|
$ |
- |
|
|
$ |
8,111.1 |
|
Capital contribution from parent for equity-based compensation |
|
$ |
5.8 |
|
|
$ |
15.8 |
|
Principal stockholder contributions |
|
$ |
1.5 |
|
|
$ |
- |
|
Excise taxes on repurchases of common stock |
|
$ |
1.0 |
|
|
$ |
- |
|
Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin (In millions, except percentages) (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income (loss) |
|
$ |
57.7 |
|
|
$ |
22.0 |
|
|
$ |
(41.1 |
) |
|
$ |
191.8 |
|
Provision for income taxes |
|
|
17.8 |
|
|
|
11.2 |
|
|
|
31.8 |
|
|
|
17.7 |
|
Interest expense, net |
|
|
62.7 |
|
|
|
60.6 |
|
|
|
192.9 |
|
|
|
172.4 |
|
Depreciation and amortization |
|
|
98.1 |
|
|
|
31.7 |
|
|
|
309.1 |
|
|
|
61.9 |
|
Equity-based compensation expense (1) |
|
|
20.0 |
|
|
|
24.6 |
|
|
|
74.6 |
|
|
|
36.1 |
|
Merger and acquisition costs (2) |
|
|
8.9 |
|
|
|
67.5 |
|
|
|
11.8 |
|
|
|
82.5 |
|
Certain legal costs (3) |
|
|
44.6 |
|
|
|
6.3 |
|
|
|
395.8 |
|
|
|
6.8 |
|
Restructuring, severance and impairment (4) |
|
|
1.6 |
|
|
|
15.1 |
|
|
|
39.7 |
|
|
|
15.1 |
|
Other adjustments |
|
|
(1.4 |
) |
|
|
0.7 |
|
|
|
(1.5 |
) |
|
|
1.6 |
|
Total Adjusted EBITDA |
|
$ |
310.0 |
|
|
$ |
239.7 |
|
|
$ |
1,013.1 |
|
|
$ |
585.9 |
|
Net income (loss) margin |
|
|
8 |
% |
|
|
5 |
% |
|
|
(2 |
)% |
|
|
18 |
% |
Adjusted EBITDA margin |
|
|
46 |
% |
|
|
53 |
% |
|
|
47 |
% |
|
|
55 |
% |
(1) |
Equity-based compensation represents primarily non-cash compensation expense for awards issued under Endeavor’s 2021 Plan subsequent to its |
|
(2) |
Includes (i) certain costs of professional fees and bonuses related to the TKO transaction and payable contingent on the closing of the TKO transaction and (ii) certain costs of professional advisors related to other strategic transactions, primarily the Endeavor asset acquisition announced on |
|
(3) |
Includes costs related to certain litigation matters including antitrust matters for UFC and WWE and matters where |
|
(4) |
Includes impairment charges of |
Reconciliation of Free Cash Flow (In millions) (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net cash provided by operating activities |
|
$ |
236.6 |
|
|
$ |
67.0 |
|
|
$ |
526.6 |
|
|
$ |
247.7 |
|
Less cash used for capital expenditures: |
|
|
|
|
|
|
|
|
||||||||
Purchases of property, buildings and equipment and other assets (1) |
|
|
(11.0 |
) |
|
|
(3.4 |
) |
|
|
(54.6 |
) |
|
|
(12.6 |
) |
Free Cash Flow |
|
$ |
225.6 |
|
|
$ |
63.6 |
|
|
$ |
472.0 |
|
|
$ |
235.1 |
(1) |
Purchases of property, buildings and equipment and other assets for the three and nine months ended |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106832322/en/
Investors:
Media: press@tkogrp.com
Source: