World Wrestling Entertainment, Inc.
World Wrestling Entertainment, Inc.
Executive Summary
With over twenty years of experience in the sports entertainment business and the mergers of some of the leading companies in the wrestling industry, Vince McMahon organized the World Wrestling Entertainment Inc., in the late 1970s. The organization consist of an integrated media and entertainment company engaged in the development, production and marketing of television and pay-per-view programming, live events and the licensing and sale of branded consumer products. There are other wrestling organizations in Japan and Mexico, the World Wrestling Entertainment and National Wrestling Alliance are the only major one left in North America. (Edger WWE 10K, 2004). This paper will analyze this company’s long-term financing policies and capitol structure. A two to three year analysis will be conducted of this company for historical purposes. Section 1: Company’s Long-Time Financing Policy and Capital Structure
Recent long-term financing decisions WWE had cash flows from operating activities for the fiscal years ended April 30, 2004 of $61.9 million. There working capital which consist of current assets less current liabilities, was $265.6 million. They used $111.0 million in investing activities. As of June 25, 2004, they had approximately $224.8 million invested primarily in fixed income mutual funds and short-term U.S. Treasury notes. The company faces a rising interest rate environment will incur some capital loss. They plan to offset this loss by earning higher interest rates on short-term securities and mutual funds. In fiscal 2004, they had capital expenditures of approximately $5.3 million. The company used $30.9 cash flows for financing activities for the fiscal year ended April 30, 2004. In June 2003, they purchased approximately 2.0 million shares of our common stock from Viacom, Inc. for approximately $19.2 million (Edger WWE 10K, 2004). WWE’s investment portfolio consists primarily
Executive Summary
With over twenty years of experience in the sports entertainment business and the mergers of some of the leading companies in the wrestling industry, Vince McMahon organized the World Wrestling Entertainment Inc., in the late 1970s. The organization consist of an integrated media and entertainment company engaged in the development, production and marketing of television and pay-per-view programming, live events and the licensing and sale of branded consumer products. There are other wrestling organizations in Japan and Mexico, the World Wrestling Entertainment and National Wrestling Alliance are the only major one left in North America. (Edger WWE 10K, 2004). This paper will analyze this company’s long-term financing policies and capitol structure. A two to three year analysis will be conducted of this company for historical purposes. Section 1: Company’s Long-Time Financing Policy and Capital Structure
Recent long-term financing decisions WWE had cash flows from operating activities for the fiscal years ended April 30, 2004 of $61.9 million. There working capital which consist of current assets less current liabilities, was $265.6 million. They used $111.0 million in investing activities. As of June 25, 2004, they had approximately $224.8 million invested primarily in fixed income mutual funds and short-term U.S. Treasury notes. The company faces a rising interest rate environment will incur some capital loss. They plan to offset this loss by earning higher interest rates on short-term securities and mutual funds. In fiscal 2004, they had capital expenditures of approximately $5.3 million. The company used $30.9 cash flows for financing activities for the fiscal year ended April 30, 2004. In June 2003, they purchased approximately 2.0 million shares of our common stock from Viacom, Inc. for approximately $19.2 million (Edger WWE 10K, 2004). WWE’s investment portfolio consists primarily
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