EX-99.2 3 a2036653zex-99_2.txt EXHIBIT 99.2 Exhibit 99.2
USA NETWORKS, INC. ($ IN MILLIONS) 2001 (a) Q1 '01 Q2 '01 Q3 '01 Q4 '01 2001 (a) ------------------ ------------------ ------------------- ------------------ ------------------- Guidance Growth Guidance Growth Guidance Growth Guidance Growth Guidance Growth --------- -------- --------- -------- --------- -------- --------- -------- --------- --------- (b, c, d) b e Revenue - operating $1,150 9% $1,220 13% $1,270 20% $1,435 14% $5,075 14% Revenue - emerging 75 17% 90 54% 100 63% 145 100% 410 60% --------- -------- --------- -------- --------- -------- --------- -------- --------- --------- Total Revenue $1,225 10% $1,310 15% $1,370 23% $1,580 20% $5,485 17% ========= ======== ========= ======== ========= ======== ========= ======== ========= ========= EBITDA - operating $ 262 10% $ 283 15% $ 265 25% $ 330 18% $1,140 17% EBITDA - emerging (42) -18% (38) 13% (30) 28% (15) 65% (125) 24% --------- -------- --------- -------- --------- -------- --------- -------- --------- --------- Total EBITDA $ 220 10% $ 245 29% $ 235 38% $ 315 36% $1,015 28% ========= ======== ========= ======== ========= ======== ========= ======== ========= ========= Basic EPS (0.15) (0.16) (0.18) (0.14) (0.61) Fully converted cash EPS 0.08 0.10 0.07 0.09 0.35
FREE CASH FLOW Estimated Guidance 2000 2001 -------- --------- EBITDA, net $ 791 $1,015 Capital expenditures (203) (160) Programming payments in excess of amortization (153) (90) Taxes, including distributions to LLC partners (102) (200) Cable distribution fees (79) (65) Interest (47) (35) Other, net (312)f (115) -------- --------- Total Free Cash Flow (105) 350 g ======== =========
FOOTNOTES a The Company's overall 2001 guidance is unchanged from its filing on October 26, 2000, except to remove guidance for USA Broadcasting, the sale of which was announced in December, 2000. Growth rates for total revenue and total EBITDA also account for non-recurring charges and German Deutschemark currency fluctuations recognized during 2000. b A weak advertising market is anticipated to continue for the first half of 2001, and is expected to have a greater impact on USA Network revenue than on SCI FI revenue. c HSN's EBITDA growth in Q1 '01 will be tempered by a one-time $4.7 million income credit recognized as the result of a lawsuit settlement in Q1 '00. d Ticketmaster's growth in Q1 will be impacted by costs related to the acquired operations of TicketWeb and 2b Technology, which are expected to be EBITDA profitable by the second half of 2001. e Studios USA Q3 revenue and EBITDA growth will be favorably impacted by the syndication sale of Law & Order to TNT. f Includes investments, acquisitions, changes in working capital, and other items in 2000. g 2001 free cash flow excludes the anticipated proceeds from the sale of USA Broadcasting. IMPORTANT This guidance reflects estimates that USAi is comfortable releasing to analysts and the public, and contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include the information relating to possible or assumed future results of operations of USAi. This guidance reflects the current views of USAi with respect to future events. The following important factors, in addition to those described in USAi's filings with the Securities and Exchange Commission, could affect the future results of USAi, and could cause those results to differ materially from those expressed in the forward-looking statements: material adverse changes in economic conditions in the markets served by our businesses; future regulatory actions and conditions in our businesses' operating areas; competition from others; successful integration of our divisions, including recently acquired businesses; product demand and market acceptance; the ability to protect proprietary information and technology or to obtain necessary licenses on commercially reasonable terms; and obtaining and retaining key executives and employees. These forward-looking statements are made as of the date hereof and USAi undertakes no obligation to update or revise them, whether as a result of new information, future events or any other reason. These statements do not include the potential impact of any mergers, acquisitions or other business combinations that may be completed in the future.