EX-99.3 4 a2036653zex-99_3.txt EXHIBIT 99.3 USA NETWORKS, INC. PRO FORMA SEGMENT RESULTS $ IN MILLIONS; ROUNDING DIFFERENCES MAY EXIST. UNAUDITED.
----------- -------------------------------------------------------- REVENUE 1998* 1999 ----------- -------------------------------------------------------- YE 12/31 Q1 Q2 Q3 Q4 YE 12/31 ----------- ------- ------- ------- ------- ------------- OPERATING BUSINESSES Cable and studios 1,243.0 331.5 316.4 307.1 349.7 1,304.7 Electronic retailing - U.S. 1,080.7 307.3 315.7 312.3 397.7 1,332.9 Electronic retailing - Germany 97.7 39.3 37.5 39.5 50.5 166.7 Ticketing 386.4 99.7 119.7 105.2 118.1 442.7 Hotel reservations 66.6 22.9 37.8 47.7 53.4 161.8 Teleservices 175.3 46.2 50.1 57.0 62.6 215.9 Other 15.1 4.1 2.8 0.0 0.0 6.9 ------- ----- ----- ----- ----- ------- SUB-TOTAL 3,064.8 851.0 880.0 868.7 1,032.0 3,631.7 German DM exchange rate fluctuation EMERGING BUSINESSES Citysearch, Match.com and related 16.8 5.8 6.9 9.7 14.0 36.3 Styleclick 21.1 11.2 8.0 7.4 8.5 35.1 Electronic Commerce Solutions 0.7 3.2 5.1 6.2 5.8 20.2 HSN - other international 2.8 1.5 2.3 2.5 2.7 8.9 USA Films 44.8 6.7 22.4 27.9 25.1 82.1 Trio, NWI, SCIFI.com, USA Network.com 0.0 0.2 0.2 0.3 0.5 1.2 ------- ----- ----- ----- ------- ------- SUB-TOTAL 86.2 28.7 44.8 53.9 56.5 183.9 ------- ----- ----- ----- ------- ------- TOTAL 3,151.0 879.7 924.8 922.6 1,088.5 3,815.6 ======= ===== ===== ===== ======= ======= USA Network 676.8 175.0 184.7 195.3 202.7 757.7 SCI FI 148.0 40.5 48.2 46.0 63.8 198.5 Studios, net 418.2 116.1 83.5 65.8 83.2 348.6 ------- ----- ----- ----- ----- ------- Cable and studios 1,243.0 331.5 316.4 307.1 349.7 1,304.7 ------- ----- ----- ----- ----- ------- OPERATING BUSINESSES Entertainment 1,243.0 331.5 316.4 307.1 349.7 1,304.7 Electronic retailing 1,178.4 346.5 353.1 351.7 448.2 1,499.6 Information and services 628.3 168.9 207.6 209.8 234.1 820.5 Corporate and other 15.1 4.1 2.8 0.0 0.0 6.9 ------- ----- ----- ----- ------- ------- SUB-TOTAL 3,064.8 851.0 880.0 868.7 1,032.0 3,631.7 ------- ----- ----- ----- ------- ------- -------------------------------------------------------- 2000 -------------------------------------------------------- Q1 Q2 Q3 Q4 YE 12/31 ------- ------- ------- ------- ------------- OPERATING BUSINESSES Cable and studios 379.0 390.7 336.0 424.8 1,530.5 Electronic retailing - U.S. 358.5 344.0 368.8 462.1 1,533.3 Electronic retailing - Germany 65.8 57.1 62.7 74.0 259.6 Ticketing 128.0 143.0 124.9 122.7 518.6 Hotel reservations 55.3 78.1 94.6 100.0 328.0 Teleservices 69.6 70.2 70.2 72.1 282.1 Other 0.0 0.0 0.0 0.0 0.0 ------- ------- ------- ------- ------- SUB-TOTAL 1,056.1 1,083.1 1,057.3 1,255.6 4,452.0 German DM exchange rate fluctuation (7.9) (6.7) (8.9) (11.8) (35.3) Emerging Businesses Citysearch, Match.com and related 17.0 20.2 21.6 21.2 80.0 Styleclick 7.9 6.3 5.3 4.8 24.2 Electronic Commerce Solutions 4.7 3.8 7.2 8.7 24.3 HSN - other international 3.8 3.6 4.4 9.4 21.3 USA Films 30.3 20.8 14.5 20.5 86.1 Trio, NWI, SCIFI.com, USA Network.com 0.6 3.7 8.6 7.5 20.3 ------- ------- ------- ------- ------- SUB-TOTAL 64.2 58.4 61.5 72.1 256.3 ------- ------- ------- ------- ------- TOTAL 1,112.4 1,134.8 1,109.9 1,315.9 4,673.0 ======= ======= ======= ======= ======= USA Network 196.9 208.9 200.5 201.4 807.8 SCI FI 62.4 71.3 64.6 78.4 276.7 Studios, net 119.6 110.5 71.0 144.9 446.0 ------- ------- ------- ------- ------- Cable and studios 379.0 390.7 336.0 424.8 1,530.5 ------- ------- ------- ------- ------- OPERATING BUSINESSES Entertainment 379.0 390.7 336.0 424.8 1,530.5 Electronic retailing 424.3 401.1 431.5 536.0 1,792.9 Information and services 252.9 291.3 289.7 294.8 1,128.7 Corporate and other 0.0 0.0 0.0 0.0 0.0 ------- ------- ------- ------- ------- SUB-TOTAL 1,056.1 1,083.1 1,057.3 1,255.6 4,452.0 ------- ------- ------- ------- -------
* 1998 has not been adjusted to include shipping and handling revenue for HSN. THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. As filed with the Securities and Exchange Commission on February 1, 2001. USA NETWORKS, INC. PRO FORMA SEGMENT RESULTS $ IN MILLIONS; ROUNDING DIFFERENCES MAY EXIST. UNAUDITED.
-------- -------------------------------------------- EBITDA 1998 1999 -------- -------------------------------------------- YE 12/31 Q1 Q2 Q3 Q4 YE 12/31 -------- -- -- -- -- -------- OPERATING BUSINESSES Cable and studios 330.3 109.1 106.1 92.8 125.9 433.9 Electronic retailing - U.S. 180.2 42.1 48.2 50.1 74.3 214.7 Electronic retailing - Germany (10.7) 3.6 1.9 3.7 7.0 16.3 Ticketing 61.3 19.5 27.2 21.3 25.4 93.3 Hotel reservations 10.9 3.4 5.6 6.4 8.7 24.2 Teleservices 19.6 5.8 6.5 8.3 9.8 30.4 Corporate and other (21.6) (7.2) (12.0) (6.2) (10.7) (36.1) ----- ----- ----- ---- ----- ----- SUB-TOTAL 570.0 176.4 183.4 176.4 240.4 776.6 German DM exchange rate fluctuation Nonrecurring charges EMERGING BUSINESSES Citysearch, Match.com and related (29.0) (8.9) (13.9) (17.7) (20.4) (60.8) Styleclick (15.8) (6.9) (15.4) (12.8) (18.4) (53.6) Electronic Commerce Solutions (1.0) (0.2) 0.4 0.5 (3.2) (2.4) HSN - other international (3.0) (0.7) (1.6) (1.7) (0.5) (4.5) USA Films 2.6 (1.0) 1.2 1.7 4.5 6.4 Trio, NWI, SCIFI.com, USA Network.com 0.0 (0.6) (0.5) (0.8) (1.1) (3.0) ----- ----- ----- ---- ----- ----- SUB-TOTAL (46.2) (18.2) (29.8) (30.8) (39.1) (117.9) ----- ----- ----- ---- ----- ----- TOTAL 523.8 158.2 153.6 145.6 201.3 658.7 ===== ===== ===== ===== ===== ===== USA Network 237.3 70.7 84.9 69.5 87.0 312.1 SCI FI 44.6 15.7 9.9 13.4 29.9 68.9 Studios, net 48.4 22.8 11.2 9.9 9.0 52.9 ----- ----- ----- ---- ----- ----- Cable and studios 330.3 109.1 106.1 92.8 125.9 433.9 ----- ----- ----- ---- ----- ----- OPERATING BUSINESSES Entertainment 330.3 109.1 106.1 92.8 125.9 433.9 Electronic retailing 169.5 45.7 50.1 53.9 81.3 230.9 Information and services 91.8 28.8 39.3 35.9 43.9 147.9 Corporate and other (21.6) (7.2) (12.0) (6.2) (10.7) (36.1) ----- ----- ----- ---- ----- ----- TOTAL 570.0 176.4 183.4 176.4 240.4 776.6 ----- ----- ----- ---- ----- ----- ------------------------------------------- EBITDA 2000 ------------------------------------------- Q1 Q2 Q3 Q4 YE 12/31 -- -- -- -- -------- OPERATING BUSINESSES Cable and studios 138.8 139.4 118.5 151.1 547.7 Electronic retailing - U.S. 55.7 52.5 53.8 74.5 236.5 Electronic retailing - Germany 8.7 4.7 5.8 9.0 28.2 Ticketing 27.4 31.6 16.7 24.4 100.0 Hotel reservations 8.2 12.9 13.9 17.6 52.6 Teleservices 9.5 11.9 11.1 11.0 43.6 Corporate and other (10.6) (7.4) (7.1) (10.0) (35.1) ----- ----- ----- ----- ----- SUB-TOTAL 237.6 245.6 212.6 277.7 973.5 German DM exchange rate fluctuation (1.0) (0.6) (0.9) (1.5) (3.9) Nonrecurring charges (11.6) (4.1) (15.7) Emerging Businesses Citysearch, Match.com and related (17.9) (15.6) (14.3) (11.4) (59.2) Styleclick (10.7) (15.2) (8.7) (8.2) (42.8) Electronic Commerce Solutions (5.6) (6.3) (8.0) (8.5) (28.4) HSN - other international (1.5) (2.5) (4.6) (5.0) (13.5) USA Films 2.2 (2.3) (5.8) (0.6) (6.6) Trio, NWI, SCIFI.com, USA Network.com (2.3) (2.0) (0.3) (2.5) (7.1) ----- ----- ----- ----- ----- SUB-TOTAL (35.7) (43.8) (41.8) (36.2) (157.6) ----- ----- ----- ----- ----- TOTAL 200.8 189.6 169.9 236.0 796.3 ===== ===== ===== ===== ===== USA Network 97.1 105.4 87.2 105.6 395.2 SCI FI 24.2 24.9 22.4 30.2 101.7 Studios, net 17.5 9.1 8.8 15.4 50.8 ----- ----- ----- ----- ----- Cable and studios 138.8 139.4 118.5 151.1 547.7 ----- ----- ----- ----- ----- OPERATING BUSINESSES Entertainment 138.8 139.4 118.5 151.1 547.7 Electronic retailing 64.4 57.2 59.6 83.5 264.7 Information and services 45.0 56.4 41.7 53.1 196.2 Corporate and other (10.6) (7.4) (7.1) (10.0) (35.1) ----- ----- ----- ----- ----- TOTAL 237.6 245.6 212.6 277.7 973.5 ----- ----- ----- ----- -----
THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. As filed with the Securities and Exchange Commission on February 1, 2001. USA NETWORKS, INC. PRO FORMA RESULTS OF OPERATIONS (AS REPORTED) $ IN MILLIONS; ROUNDING DIFFERENCES MAY EXIST. UNAUDITED.
---------- ------------------------------------------------------- P&L 1998 1999 ---------- ------------------------------------------------------- YE 12/31 * Q1 * Q2* Q3* Q4 YE 12/31 ---------- ---- --- --- -- -------- Date Reported: 02/03/00 04/27/00 07/26/00 10/26/00 02/01/01 02/01/01 Revenues, net 2,879.7 793.2 889.4 924.9 1,088.5 3,815.6 Operating costs and expenses: Costs related to revenues 1,694.7 404.8 468.7 494.7 657.8 2,301.7 Other costs and expenses 693.1 244.9 274.5 293.9 229.4 855.1 Amort. of non-cash distribution and marketing expense 0.0 0.0 0.0 0.0 0.0 0.0 Depreciation 94.9 25.6 28.8 31.7 32.5 119.2 Amortization of goodwill 226.3 62.8 78.4 91.8 106.0 374.0 ------- ----- ----- ----- ------- ------- Total operating costs 2,709.0 738.0 850.3 912.1 1,025.7 3,650.1 ------- ----- ----- ----- ------- ------- Operating income 170.6 55.2 39.0 12.8 62.7 165.4 Interest expense, net (119.6) (13.0) (15.7) (12.4) (10.8) (50.2) Gain on disposition of television station 74.9 0.0 0.0 0.0 0.0 0.0 Gain on sale of securities 109.0 47.3 3.0 39.5 0.0 89.7 Other, net (23.4) 7.3 (8.8) (3.6) 0.6 (4.9) ------- ----- ----- ----- ------- ------- 40.9 41.6 (21.4) 23.4 (10.2) 34.6 ------- ----- ----- ----- ------- ------- Earnings before income taxes and minority interest 211.5 96.8 17.6 36.2 52.5 200.1 Income tax expense (118.4) (21.4) (13.7) (21.8) (28.1) (83.9) Minority interest (70.3) (74.1) (27.9) (33.9) (28.8) (136.7) ------- ----- ----- ----- ------- ------- Net income (loss) from continuing operations 22.8 1.3 (24.0) (19.5) (4.3) (20.5) ------- ----- ----- ----- ------- ------- Weighted average diluted shares 318.4 361.2 388.9 357.8 360.7 352.6 ------- ----- ----- ----- ------- ------- Weighted average fully converted shares 595.2 707.6 735.2 757.3 763.7 745.8 ------- ----- ----- ----- ------- ------- Basic earnings per share $ .07 $ .00 $ (.07) $ (.05) $ (.01) $ (.06) ------- ----- ----- ----- ------- ------- Diluted earnings per share $ .07 $ .00 $ (.07) $ (.05) $ (.01) $ (.06) ------- ----- ----- ----- ------- ------- Fully converted earnings per share $ .13 $ .07 $ (.00) $ .02 $ .02 $ .12 ------- ----- ----- ----- ------- ------- EBITDA 491.9 143.6 146.2 136.3 201.3 658.7 ------- ----- ----- ----- ------- ------- Excluding one-time charges and non-operating gains: Basic and diluted earnings per share $ (.28) $ (.03) $ (.08) $ (.08) $ (.01) $ (.11) ------- ------- ------- ------- -------- -------- Fully converted earnings per share $ (.04) $ .03 $ (.01) $ (.01) $ .02 $ .05 ======= ======= ======= ======= ======== ======== --------------------------------------------------------------- P&L 2000 --------------------------------------------------------------- Q1 * Q2 * Q3 * Q4 YE 12/31 ---- ---- ---- -- -------- Date Reported: 04/27/00 07/26/00 10/26/00 02/01/01 02/01/01 Revenues, net 1,002.8 1,098.1 1,115.2 1,315.9 4,673.0 Operating costs and expenses: Costs related to revenues 574.7 638.8 673.6 801.3 2,812.4 Other costs and expenses 243.8 280.1 281.8 278.6 1,064.4 Amort. of non-cash distribution and marketing expense 0.8 1.6 2.7 7.1 11.5 Depreciation 34.5 42.9 46.3 54.0 166.1 Amortization of goodwill 81.8 96.7 108.9 135.1 467.3 ------- ------- ------- ------- ------- Total operating costs 935.5 1,060.0 1,113.3 1,276.1 4,521.7 ------- ------- ------- ------- ------- Operating income 67.3 38.0 1.9 39.8 151.3 Interest expense, net (8.6) (8.8) (9.6) (10.3) (35.0) Gain on disposition of television station 0.0 0.0 0.0 0.0 Gain on sale of securities 0.0 0.0 0.0 0.0 0.0 Other, net (0.6) (1.9) 69.9 (18.1) 49.3 ------- ------- ------- ------- ------- (9.3) (10.7) 60.3 (28.3) 14.3 ------- ------- ------- ------- ------- Earnings before income taxes and minority interest 58.1 27.3 62.2 11.5 165.7 Income tax expense (31.5) (19.0) (23.0) (26.3) (113.0) Minority interest (45.4) (36.9) (58.6) (14.4) (128.5) ------- ------- ------- ------- ------- Net income (loss) from continuing operations (18.9) (28.6) (19.5) (29.2) (75.9) ------- ------- ------- ------- ------- Weighted average diluted shares 337.5 362.0 367.8 368.3 366.0 ------- ------- ------- ------- ------- Weighted average fully converted shares 728.1 748.5 754.8 752.6 747.4 ------- ------- ------- ------- ------- Basic earnings per share $ (.06) $ (.08) $ (.05) $ (.08) $ (.21) ------- ------- ------- ------- ------- Diluted earnings per share $ (.06) $ (.08) $ (.05) $ (.08) $ (.21) ------- ------- ------- ------- ------- Fully converted earnings per share $ .03 $ .01 $ .04 $ (.00) $ .05 ------- ------- ------- ------- ------- EBITDA 184.3 179.2 159.8 236.0 796.3 ------- ------- ------- ------- ------- Excluding one-time charges and non-operating gains: Basic and diluted earnings per share $ (.06) $ (.07) $ (.10) $ (.03) $ (.19) -------- -------- -------- -------- -------- Fully converted earnings per share $ .03 $ .01 $ (.02) $ .03 $ .03 ======== ======== ======== ======== ========
* AS REPORTED. MAY NOT AGREE WITH PROFORMA REVENUE AND EBITDA RESULTS ABOVE. THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. As filed with the Securities and Exchange Commission on February 1, 2001. USA NETWORKS, INC. OPERATING METRICS IN MILLIONS EXCEPT PERCENTAGES AND RATINGS.
---- ---- ------------------------------------ ---------------------------------- 1997 1998 1999 2000 ---- ---- ------------------------------------ ---------------------------------- YE YE Q1 Q2 Q3 Q4 YE Q1 Q2 Q3 Q4 YE -- -- -- -- -- -- -- -- -- -- -- -- USA NETWORK Advertising revenue 53% 53% 54% 56% 59% 58% 56% 57% 58% 57% 55% 58% Affiliate revenue 47% 47% 46% 44% 41% 42% 44% 43% 42% 43% 45% 42% Average primetime rating 2.0 2.3 2.6 2.6 2.3 2.2 2.4 2.4 2.2 2.0 1.7 2.1 Households (end of period) 72.4 75.1 75.3 75.7 76.9 77.2 77.2 77.4 78.2 79.4 79.9 79.9 ---- ---- ------------------------------------ ---------------------------------- 1997 1998 1999 2000 ---- ---- ------------------------------------ ---------------------------------- YE YE Q1 Q2 Q3 Q4 YE Q1 Q2 Q3 Q4 YE -- -- -- -- -- -- -- -- -- -- -- -- SCI FI CHANNEL Advertising revenue 56% 56% 55% 61% 57% 62% 59% 64% 66% 62% 67% 65% Affiliate revenue 44% 44% 45% 39% 43% 38% 41% 36% 34% 38% 33% 35% Average primetime rating 0.7 0.7 0.7 0.7 0.8 0.9 0.8 0.9 0.8 0.9 0.9 0.9 Households (end of period) 46.7 52.6 54.4 55.9 58.4 59.7 59.7 60.5 62.7 65.1 66.7 66.7 ----------------------------------- 2000 ----------------------------------- Q3 Q4 YE -- -- -- TRIO Households (end of period) 6.9 7.3 7.3 NWI Households (end of period) 6.5 6.7 6.7
USA NETWORK AND SCI FI RATINGS AND HOUSEHOLD DELIVERY DATA ARE SOURCED FROM NMR GALAXY EXPLORER. SUBSCRIBER COUNTS ARE BASED ON NIELSEN PEOPLE METER INSTALLED SAMPLES. THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. As filed with the Securities and Exchange Commission on February 1, 2001. USA NETWORKS, INC. OPERATING METRICS IN MILLIONS EXCEPT PERCENTAGES.
--------------------------------------------- --------------------------------------- 1999 2000 --------------------------------------------- --------------------------------------- Q1 Q2 Q3 Q4 YE Q1 Q2 Q3 Q4 YE --------------------------------------------- --------------------------------------- HSN - U.S. On air services: On-air gross profit 34.0% 33.7% 35.4% 34.0% 34.3% 33.6% 34.7% 34.7% 32.7% 33.8% Product mix: Homegoods 47% 47% 47% 54% 49% 50% 46% 49% 55% 51% Jewelry 30% 28% 26% 23% 27% 25% 28% 27% 25% 26% Heath / Beauty 10% 12% 11% 10% 11% 11% 13% 9% 8% 10% Apparel / Accessories 13% 13% 16% 13% 13% 14% 13% 15% 12% 13% Units shipped 7.7 7.8 7.8 8.7 32.0 8.2 7.8 8.2 9.2 33.4 Return rate 22.8% 20.4% 19.1% 19.1% 20.3% 20.9% 19.6% 20.2% 19.2% 19.9% America's Store Total HH (end of period) 9.8 9.9 8.7 8.3 8.3 8.8 8.8 9.0 8.6 8.6 HSN cable / DBS HH (end of period) 54.8 56.8 57.6 60.6 60.6 62.0 63.2 64.6 65.6 65.6 HSN total HH (end of period) 71.0 72.7 73.0 73.7 73.7 75.2 76.4 75.9 76.8 76.8
THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. As filed with the Securities and Exchange Commission on February 1, 2001. USA NETWORKS, INC. OPERATING METRICS IN MILLIONS EXCEPT REVENUE PER TICKET AND PERCENTAGES.
----- -------- ------------------------------------------ 1997 1998 1999 ----- -------- ------------------------------------------ YE YE Q1 Q2 Q3 Q4 YE -- -- -- -- -- -- -- TICKETMASTER Number of tickets sold (mm) 65.8 68.6 19.1 19.9 17.6 18.4 75.0 Gross value of tickets sold (mm) $ 2,168 $ 2,340 $ 615 $ 756 $ 651 $ 759 $ 2,781 Share of tickets sold online 1.6% 4.3% 8.7% 13.5% 15.0% 18.4% 13.4% Revenue per ticket- Combined $ 4.50 $ 4.66 $ 4.69 $ 5.36 $ 5.34 $ 5.62 $ 5.25 Revenue per ticket- Online $ 5.06 $ 5.45 $ 5.62 $ 6.68 $ 6.45 $ 6.46 $ 6.38 ------------------------------------------- 2000 ------------------------------------------- Q1 Q2 Q3 Q4 YE -- -- -- -- -- TICKETMASTER Number of tickets sold (mm) 21.8 22.3 20.2 18.7 83.0 Gross value of tickets sold (mm) $ 812 $ 881 $ 782 $ 781 $ 3,256 Share of tickets sold online 20.5% 25.8% 25.2% 26.2% 24.3% Revenue per ticket- Combined $ 5.44 $ 5.89 $ 5.67 $ 5.87 $ 5.71 Revenue per ticket- Online $ 6.49 $ 7.08 $ 6.72 $ 6.75 $ 6.78
THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. USA NETWORKS, INC. OPERATING METRICS
------------------------------------- --------------------------------------- 1999 2000 ------------------------------------- --------------------------------------- Q1 Q2 Q3 Q4 YE Q1 Q2 Q3 Q4 YE -- -- -- -- -- -- -- -- -- -- HOTEL RESERVATIONS NETWORK Hotel room nights sold (thousands) 181 291 374 383 1,229 429 587 717 700 2,433 Portion of revenues generated online 69% 81% 85% 87% 81% 91% 92% 94% 96% 93% Affiliated revenues as % of total revenue 27% 41% 44% 43% 40% 53% 52% 53% 56% 54% Cities served 27 37 38 40 40 49 60 83 97 97
THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. As filed with the Securities and Exchange Commission on February 1, 2001. USA NETWORKS, INC. OPERATING METRICS IN MILLIONS CAPITALIZATION (AS OF 1/29/01) Ticker (NASDAQ) USAI USAi Common Stock 305.5 USAi Class B 63.0 USAi Exchangeable 361.2 ---------- Total Shares Outstanding 729.7 Estimated dilutive options (treasury method) 32.0 ---------- Fully diluted shares 761.7 ========== Outstanding equity cap $14.2 billion Fully diluted equity cap $14.8 billion BUSINESS MIX Revenue sources (Q4 '00): Merchandise 41% Ticketing 9% Teleservices / ECS 6% Hotel rooms 8% ---------- Commerce 64% ========== Advertising 15% Affiliate fees and subscriptions 10% Production and distribution 11% ---------- Media 36% ========== Online (% of total) 15% International (% of total) 6% THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. As filed with the Securities and Exchange Commission on February 1, 2001. USA Networks, Inc. (the "Company" or "USAi") is a holding company, the subsidiaries of which are engaged in diversified media and electronic commerce businesses. In the third quarter of 1997, the Company acquired a controlling interest in Ticketmaster through the issuance of Common Stock to Paul G. Allen and purchases of Ticketmaster shares in the open market for total consideration of $210.0 million (the "Ticketmaster Acquisition"). In connection with the issuance of new shares to Mr. Allen, the Company also issued shares of the Company's Class B common stock in accordance with Liberty's contingent right to receive such shares as part of the Home Shopping Merger in 1996. In connection with the Ticketmaster tax-free merger, as of June 24, 1998, the Company issued 31,934,400 shares of Common Stock to the public shareholders of Ticketmaster and converted 3.6 million options to acquire Ticketmaster common stock into options to acquire Common Stock for a total consideration of $467.7 million. The acquisition of the controlling interest in Ticketmaster and the tax-free merger are collectively referred to as the "Ticketmaster Transaction." On July 16, 1998, the Company sold the assets of SF Broadcasting, which owned and operated four television stations (the "SF Broadcasting Transaction"). On February 12, 1998, the Company acquired USA Networks, a New York general partnership, consisting of cable television networks USA Network and Sci-Fi Channel ("Networks"), as well as the domestic television production and distribution businesses of Universal Studios ("Studios USA") from Universal Studios, Inc. ("Universal"), an entity controlled by The Seagram Company Ltd. ("Seagram"), and the Company changed its name to USA Networks, Inc. (the "Universal Transaction"). On September 28, 1998, pursuant to an Amended and Restated Agreement and Plan of Reorganization among CitySearch, Inc. ("CitySearch"), the Company, Ticketmaster and certain of its subsidiaries, the Company merged the online ticketing operations of Ticketmaster (Ticketmaster.com) into a subsidiary of CitySearch, a publisher of local city guides on the Web (the "CitySearch Merger"), to create Ticketmaster Online-CitySearch, Inc. ("TMCS"). On May 10, 1999, the Company acquired substantially all of the assets and assumed substantially all of the liabilities of two entities which operate Hotel Reservations Network (the "Hotel Reservations Network Transaction"). On May 28, 1999, the Company acquired October Films, Inc. ("October Films"), in which Universal owned a majority interest, and the domestic film distribution and development business of Universal previously operated by Polygram Filmed Entertainment, Inc. ("PFE") (the "October Films/PFE Transaction"). On April 5, 2000, the Company acquired Precision Response Corporation ("PRC") (the "PRC Transaction"). On July 27, 2000 USAi and Styleclick.com Inc., a leading enabler of e-commerce for manufacturers and retailers, completed the merger of Internet Shopping Network ("ISN") and Styleclick.com (the "Styleclick Transaction"). On December 7, 2000, the Company announced that Univision Communications Inc. will acquire USA Broadcasting, the television station group of the Company. On January 31, 2001, the combination of the businesses of Ticketmaster Online-CitySearch, Inc. and Ticketmaster Corporation was completed. For additional information on each of these transactions, see the Company's filings on Form 10-K for the year ended December 31, 1999, on Form 10-Q for the three months ended September 30, 2000 and other filings that the Company and its subsidiaries have made with the Securities and Exchange Commission. The following unaudited pro forma operating results of USAi present combined results of operations as if the Universal Transaction, Ticketmaster Transaction, CitySearch Merger, the SF Broadcasting Transaction, the Hotel Reservations Network Transaction, the October Films/ PFE Transaction, the PRC Transaction and the Styleclick Transaction and the consolidation of HOT Germany all had occurred at the beginning of the periods presented. The unaudited combined condensed pro forma statements of operations of USAi are presented below for illustrative purposes only and are not necessarily indicative of the results of operations that would have actually been reported had any of the transactions occurred at the beginning of the periods presented, nor are they necessarily indicative of future results of operations. As filed with the Securities and Exchange Commission on February 1, 2000.