EX-99.2 3 a2055081zex-99_2.txt EXHIBIT 99.2 Exhibit 99.2 USA NETWORKS, INC. PRO FORMA SEGMENT RESULTS $ IN MILLIONS; ROUNDING DIFFERENCES MAY EXIST. UNAUDITED.
REVENUE 1999 2000 -------- --------------------------------------------------------- YE 12/31 Q1 Q2 Q3 Q4 YE 12/31 -------- ------- ----- ----- ----- -------- OPERATING BUSINESSES Cable and studios 1,304.7 379.0 390.7 336.0 424.8 1,530.5 Electronic retailing - U.S. 1,332.9 358.5 344.0 368.8 462.1 1,533.3 Electronic retailing - Germany 166.7 65.8 57.1 62.7 74.0 259.6 Ticketing 442.7 128.0 143.0 124.9 122.7 518.6 Hotel reservations 161.8 55.3 78.1 94.6 100.0 328.0 Teleservices 215.9 69.6 70.2 70.2 72.1 282.1 Other 6.9 0.0 0.0 0.0 0.0 0.0 Intersegment Elimination ------- ------- ----- ----- ----- ------- SUB-TOTAL 3,631.7 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 36.3 17.0 20.2 21.6 21.2 80.0 Styleclick 35.1 7.9 6.3 5.3 4.8 24.2 Electronic Commerce Solutions 20.2 4.7 3.8 7.2 8.7 24.3 HSN - international and other 8.9 3.8 3.6 4.4 9.4 21.3 USA Films 82.1 30.3 20.8 14.5 20.5 86.1 Trio, NWI, Crime, other emerging media 1.2 0.6 3.7 8.6 7.5 20.3 ------- ------- ----- ----- ----- ------- SUB-TOTAL 183.9 64.2 58.4 61.5 72.1 256.3 ------- ------- ----- ----- ----- ------- TOTAL 3,815.6 1,112.4 1,134.9 1,109.9 1,315.9 4,673.0 ------- ------- ----- ----- ----- ------- USA Network 757.7 196.9 208.9 200.5 201.4 807.8 SCI FI 198.5 62.4 71.3 64.6 78.4 276.7 Studios, net 348.6 119.6 110.5 71.0 144.9 446.0 ------- ------- ----- ----- ----- ------- Cable and studios 1,304.7 379.0 390.7 336.0 424.8 1,530.5 ------- ------- ----- ----- ----- ------- OPERATING BUSINESSES Entertainment 1,304.7 379.0 390.7 336.0 424.8 1,530.5 Electronic retailing 1,499.6 424.3 401.1 431.5 536.0 1,792.9 Information and services 820.5 252.9 291.3 289.7 294.8 1,128.7 Intersegment Elimination 6.9 0.0 0.0 0.0 0.0 0.0 ------- ------- ----- ----- ----- ------- SUB-TOTAL 3,631.7 1,056.1 1,083.1 1,057.3 1,255.6 4,452.0 ------- ------- ------- ------- ------- -------
REVENUE 2001 --------------------------------------------------------------------- Q1 Q2 Q3 Q4 YTD 6/30 ----- ---- ---- ----- -------- OPERATING BUSINESSES Cable and studios 437.7 444.2 881.9 Electronic retailing - U.S. 385.4 381.8 767.2 Electronic retailing - Germany 78.9 80.2 159.1 Ticketing 150.1 163.9 314.0 Hotel reservations 105.3 138.3 243.6 Teleservices 80.7 75.6 156.3 Other 0.0 0.0 0.0 Intersegment Elimination (6.5) (6.5) ------- ------- ------- ------- ------- SUB-TOTAL 1,238.0 1,277.5 2,515.5 German DM exchange rate fluctuation (13.7) (13.8) (27.5) EMERGING BUSINESSES Citysearch, Match.com and related 20.9 23.1 44.0 Styleclick 4.0 2.4 6.5 Electronic Commerce Solutions 4.7 6.0 10.7 HSN - international and other 4.5 7.5 12.0 USA Films 51.0 62.6 113.6 Trio, NWI, Crime, other emerging media 6.2 6.2 12.3 ------- ------- ------- ------- ------- SUB-TOTAL 91.4 107.7 199.1 ------- ------- ------- ------- ------- TOTAL 1,315.7 1,371.4 2,687.1 ------- ------- ------- ------- ------- USA Network 216.8 221.4 438.2 SCI FI 69.3 70.3 139.7 Studios, net 151.5 152.5 304.0 ------- ------- ------- ------- ------- Cable and studios 437.7 444.2 881.9 ------- ------- ------- ------- ------- OPERATING BUSINESSES Entertainment 437.7 444.2 881.9 Electronic retailing 464.2 462.0 926.2 Information and services 336.1 377.8 713.9 Intersegment Elimination 0.0 (6.5) (6.5) ------- ------- ------- ------- ------- SUB-TOTAL 1,238.0 1,277.5 2,515.5 ------- ------- ------- ------- -------
THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. As filed with the Securities and Exchange Commission on July 25, 2001. USA NETWORKS, INC. PRO FORMA SEGMENT RESULTS $ IN MILLIONS; ROUNDING DIFFERENCES MAY EXIST. UNAUDITED.
EBITDA 1999 2000 -------- --------------------------------------------------- YE 12/31 Q1 Q2 Q3 Q4 YTD 12/31 -------- ---- ---- ---- ---- --------- OPERATING BUSINESSES Cable and studios 433.9 138.8 139.4 118.5 151.1 547.7 Electronic retailing - U.S. 214.7 49.4 52.6 53.8 74.5 230.3 Electronic retailing - Germany 16.3 8.7 4.7 5.8 9.0 28.2 Ticketing 93.3 27.4 31.6 16.7 24.4 100.0 Hotel reservations 24.2 8.2 12.9 13.9 17.6 52.6 Teleservices 30.4 9.5 11.9 11.1 11.0 43.6 Corporate and other (36.1) (9.6) (6.8) (7.1) (10.0) (33.5) --------- -------- ------- -------- ------- -------- SUB-TOTAL 776.6 232.2 246.3 212.6 277.7 968.9 German DM exchange rate fluctuation (1.0) (0.6) (0.9) (1.5) (3.9) Nonrecurring credits (charges) 6.3 (7.8) (4.1) (5.6) EMERGING BUSINESSES Citysearch, Match.com and related (60.8) (17.4) (15.3) (14.3) (11.4) (58.3) Styleclick (53.6) (10.7) (15.2) (8.7) (8.2) (42.8) Electronic Commerce Solutions (2.4) (5.6) (6.3) (8.0) (8.5) (28.4) HSN - international and other (4.5) (1.5) (2.5) (4.6) (5.0) (13.5) USA Films 6.4 2.2 (2.3) (5.8) (0.6) (6.6) Trio, NWI, Crime, other emerging media (3.0) (2.3) (2.0) (0.3) (2.5) (7.1) Intersegment Elimination --------- -------- ------- -------- ------- -------- SUB-TOTAL (117.9) (35.2) (43.5) (41.8) (36.2) (156.7) Styleclick restructuring charge --------- -------- ------- -------- ------- -------- TOTAL 658.7 202.3 194.4 169.9 236.0 802.6 --------- -------- ------- -------- ------- -------- --------- -------- ------- -------- ------- -------- USA Network 312.1 97.1 105.4 87.2 105.6 395.2 SCI FI 68.9 24.2 24.9 22.4 30.2 101.7 Studios, net 52.9 17.5 9.1 8.8 15.4 50.8 --------- -------- ------- -------- ------- -------- Cable and studios 433.9 138.8 139.4 118.5 151.1 547.7 --------- -------- ------- -------- ------- -------- OPERATING BUSINESSES Entertainment 433.9 138.8 139.4 118.5 151.1 547.7 Electronic retailing 230.9 58.1 57.3 59.6 83.5 258.5 Information and services 147.9 45.0 56.4 41.7 53.1 196.2 Corporate and other (36.1) (9.6) (6.8) (7.1) (10.0) (33.5) --------- -------- ------- -------- ------- -------- TOTAL 776.6 232.2 246.3 212.6 277.7 968.9 --------- -------- ------- -------- ------- --------
EBITDA 2001 -------------------------------------------------------------------- Q1 Q2 Q3 Q4 YTD 6/30 ---- ---- ---- ---- -------- OPERATING BUSINESSES Cable and studios 163.4 171.3 334.7 Electronic retailing - U.S. 51.7 55.2 106.9 Electronic retailing - Germany 5.6 5.9 11.5 Ticketing 30.2 35.5 65.8 Hotel reservations 15.8 21.0 36.8 Teleservices 10.0 10.2 20.2 Corporate and other (7.9) (8.2) (16.1) -------- -------- -------- -------- -------- SUB-TOTAL 268.9 290.9 559.8 German DM exchange rate fluctuation (0.9) (1.0) (1.9) Nonrecurring credits (charges) 0.0 EMERGING BUSINESSES Citysearch, Match.com and related (11.5) (8.2) (19.7) Styleclick (10.4) (5.8) (16.3) Electronic Commerce Solutions (6.5) (8.6) (15.1) HSN - international and other (6.4) (7.5) (13.9) USA Films (1.0) 0.6 (0.4) Trio, NWI, Crime, other emerging media (1.7) (2.4) (4.1) Intersegment Elimination (3.9) (3.9) -------- -------- -------- -------- -------- SUB-TOTAL (37.6) (35.8) (73.4) Styleclick restructuring charge (4.8) (4.8) -------- -------- -------- -------- -------- TOTAL 230.4 249.3 479.7 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- USA Network 112.2 123.3 235.5 SCI FI 29.7 27.8 57.5 Studios, net 21.5 20.2 41.7 -------- -------- -------- -------- -------- Cable and studios 163.4 171.3 334.7 -------- -------- -------- -------- -------- OPERATING BUSINESSES Entertainment 163.4 171.3 334.7 Electronic retailing 57.4 61.1 118.5 Information and services 56.1 66.7 122.8 Corporate and other (7.9) (8.2) (16.1) -------- -------- -------- -------- -------- TOTAL 268.9 290.9 559.8 -------- -------- -------- -------- --------
THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. As filed with the Securities and Exchange Commission on July 25, 2001. USA NETWORKS, INC. PRO FORMA RESULTS OF OPERATIONS (AS REPORTED) $ IN MILLIONS; ROUNDING DIFFERENCES MAY EXIST. UNAUDITED.
P&L 1999 2000 --------- ------------------------------------------------------------- YE 12/31* Q1* Q2 Q3 * Q4 * YE 12/31 * --------- -------- -------- -------- -------- --------- Date Reported: 02/01/01 04/25/01 07/25/01 10/26/00 02/01/01 02/01/01 Revenues, net 3,815.6 1,112.4 1,134.9 1,115.2 1,315.9 4,673.0 Operating costs and expenses: Costs related to revenues 2,301.7 665.6 676.3 673.6 801.3 2,812.4 Other costs and expenses 855.1 244.9 264.1 281.8 278.6 1,064.4 Amort. of non-cash distribution and marketing expense 0.0 1.6 1.3 2.7 7.1 11.5 Depreciation 119.2 36.5 44.6 46.3 54.0 166.1 Amortization of goodwill 374.0 108.0 110.5 108.9 135.1 467.3 ------- ------- ------- ------- ------- ------- Total operating costs 3,650.1 1,056.5 1,096.8 1,113.3 1,276.1 4,521.7 ------- ------- ------- ------- ------- ------- Operating income 165.4 55.9 38.0 1.9 39.8 151.3 Interest expense, net (50.2) (8.6) (7.9) (9.6) (10.3) (35.0) Gain on disposition of television station 0.0 0.0 0.0 0.0 0.0 0.0 Gain on sale of securities 89.7 0.0 0.0 0.0 0.0 0.0 Other, net (4.9) (0.6) (1.9) 69.9 (18.1) 49.3 ------- ------- ------- ------- ------- ------- 34.6 (9.2) (9.8) 60.3 (28.3) 14.3 ------- ------- ------- ------- ------- ------- Earnings before income taxes and minority interest 200.1 46.7 28.2 62.2 11.5 165.7 Income tax expense (83.9) (30.3) (29.6) (23.0) (26.3) (113.0) Minority interest (136.7) (40.4) (30.2) (58.6) (14.4) (128.5) ------- ------- ------- ------- ------- ------- Loss before cumulative effect of accounting change (20.5) (23.9) (31.6) (19.5) (29.2) (75.9) Cumulative effect of accounting change, net of tax 0.0 0.0 0.0 0.0 0.0 0.0 ------- ------- ------- ------- ------- ------- Net loss from continuing operations (20.5) (23.9) (31.6) (19.5) (29.2) (75.9) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Weighted average diluted shares 352.6 361.9 363.6 367.8 368.3 366.0 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Weighted average fully converted shares 745.8 752.5 724.7 754.8 752.6 747.4 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Basic earnings per share $ (.06) $ .07 $ (.09) $ (.05) $ (.08) $ (.21) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Diluted earnings per share $ (.06) $ .07 $ (.09) $ (.05) $ (.08) $ (.21) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Fully converted earnings per share $ .12 $ .01 $ (.02) $ .04 $ (.00) $ .05 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- EBITDA 658.7 201.9 194.4 159.8 236.0 796.3 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Excluding one-time charges and non-operating gains: Basic and diluted earnings per share $ (.11) $ (.07) $ (.07) $ (.10) $ (.03) $ (.19) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Cash net income earnings per share $ .11 $ .17 $ .07 $ .21 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Fully converted earnings per share $ .05 $ (.01) $ (.01) $ (.02) $ .03 $ .03 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Fully converted cash net income earnings per share $ .09 $ .11 $ .10 $ .15 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
P&L 2001 ---------------------------------------------------------------------- Q1* Q2 Q3 Q4 YE 12/31 -------- -------- ------ ------- -------- Date Reported: 04/25/01 07/25/01 Revenues, net 1,315.7 1,371.4 Operating costs and expenses: Costs related to revenues 800.2 831.7 Other costs and expenses 285.4 290.5 Amort. of non-cash distribution and marketing expense 8.0 6.6 Depreciation 48.7 57.6 Amortization of goodwill 100.2 100.8 ------- ------- ------- ------- ------- Total operating costs 1,242.5 1,287.3 ------- ------- ------- ------- ------- Operating income 73.2 84.2 Interest expense, net (11.4) (12.9) Gain on disposition of television station 0.0 0.0 Gain on sale of securities 0.0 0.0 Other, net (6.5) (13.7) ------- ------- ------- ------- ------- (17.9) (26.6) ------- ------- ------- ------- ------- Earnings before income taxes and minority interest 55.3 57.5 Income tax expense (25.5) (22.8) Minority interest (49.3) (45.0) ------- ------- ------- ------- ------- Loss before cumulative effect of accounting change (19.5) (10.3) Cumulative effect of accounting change, net of tax (9.2) 0.0 ------- ------- ------- ------- ------- Net loss from continuing operations (28.7) (10.3) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Weighted average diluted shares 370.2 373.8 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Weighted average fully converted shares 758.0 763.4 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Basic earnings per share $ (.05) $ (.03) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Diluted earnings per share $ (.05) $ (.03) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Fully converted earnings per share $ .02 $ .03 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- EBITDA 230.1 249.3 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Excluding one-time charges and non-operating gains: Basic and diluted earnings per share $ (.05) $ (.02) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Cash net income earnings per share $ .16 $ .20 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Fully converted earnings per share $ .02 $ .04 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Fully converted cash net income earnings per share $ .12 $ .14 ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
* 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 July 25, 2001. USA NETWORKS, INC. OPERATING METRICS IN MILLIONS EXCEPT PERCENTAGES AND RATINGS.
1999 2000 2001 -------- ----------------------------------------------------------- --------------- YE Q1 Q2 Q3 Q4 YE Q1 Q2 -------- ----------------------------------------------------------- --------------- USA NETWORK Advertising and other revenue 57% 57% 59% 58% 57% 58% 58% 59% Affiliate revenue 43% 43% 41% 42% 43% 42% 42% 41% Average primetime rating 2.4 2.4 2.2 2.0 1.7 2.1 1.9 1.8 Households (end of period) 77.2 77.4 78.2 79.4 79.9 79.9 81.3 81.9
1999 2000 2001 -------- ----------------------------------------------------------- --------------- YE Q1 Q2 Q3 Q4 YE Q1 Q2 -------- ----------------------------------------------------------- --------------- SCI FI CHANNEL Advertising and other revenue 60% 65% 66% 63% 67% 65% 63% 66% Affiliate revenue 40% 35% 34% 37% 33% 35% 37% 34% Average primetime rating 0.8 0.9 0.8 0.9 0.9 0.9 0.8 0.8 Households (end of period) 59.7 60.5 62.7 65.1 66.7 66.7 69.4 70.9
2000 2001 ------------------------------------------------------------- ------------------- Q1 Q2 Q3 Q4 YE Q1 Q2 ------------------------------------------------------------- ------------------- TRIO Households (end of period) 6.9 7.3 7.3 8.8 11.3 NWI Households (end of period) 6.5 6.7 6.7 8.0 10.3
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 July 25, 2001. USA NETWORKS, INC. OPERATING METRICS IN MILLIONS EXCEPT PERCENTAGES.
1999 2000 2001 ------ -------------------------------------------------------- ---------------- YE Q1 Q2 Q3 Q4 YE Q1 Q2 ------ -------------------------------------------------------- ---------------- HSN - DOMESTIC U.S. units shipped 32.1 8.4 8.1 8.6 10.0 35.1 8.6 9.1 On air gross profit % 34.3% 33.6% 34.7% 34.7% 32.7% 33.8% 32.3% 33.3% On air return rate 20.3% 20.9% 19.6% 20.2% 19.2% 19.9% 20.0% 20.0% On air product mix: Homegoods 49% 50% 46% 49% 55% 51% 49% 48% Jewelry 27% 25% 28% 27% 25% 26% 26% 27% Heath / Beauty 11% 11% 13% 9% 8% 10% 10% 12% Apparel / Accessories 13% 14% 13% 15% 12% 13% 15% 13% HSN cable / DBS HH (end of period) 60.6 62.0 63.2 64.6 65.6 65.6 68.1 69.2 HSN total HH (end of period) 73.7 75.2 76.4 75.9 76.8 76.8 79.9 80.8 America's Store FTE's (end of period) 8.3 8.8 8.8 9.0 8.6 8.6 8.3 10.6
THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. As filed with the Securities and Exchange Commission on July 25, 2001. USA NETWORKS, INC. OPERATING METRICS IN MILLIONS EXCEPT REVENUE PER TICKET AND PERCENTAGES.
1999 2000 2001 ---------- ----------------------------------------------------- ------------------ YE Q1 Q2 Q3 Q4 YE Q1 Q2 ---------- ----------------------------------------------------- ------------------ TICKETMASTER Number of tickets sold (mm) 75.0 21.8 22.3 20.2 18.7 83.0 23.6 23.5 Gross value of tickets sold (mm) $2,781 $812 $881 $782 $781 $3,256 $937 $1,016 Share of tickets sold online 13.4% 19.6% 25.5% 25.6% 27.9% 24.5% 29.5% 33.2% Revenue per ticket $5.25 $5.44 $5.89 $5.67 $5.87 $ 5.71 $5.96 $6.29
THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. As filed with the Securities and Exchange Commission on July 25, 2001. USA NETWORKS, INC. OPERATING METRICS
1999 2000 2001 ----------- ------------------------------------------------ ------------------ YE Q1 Q2 Q3 Q4 YE Q1 Q2 ----------- ------------------------------------------------ ------------------ HOTEL RESERVATIONS NETWORK Hotel room nights sold (thousands) 1,229 429 587 717 700 2,433 799 1,030 Affiliates (including TravelNow) 6,000 10,500 18,649 20,857 Properties 1,500 1,750 1,925 2,150 2,700 2,700 3,084 3,374 Cities served 40 49 60 83 97 97 135 146
THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. As filed with the Securities and Exchange Commission on July 25, 2001. USA NETWORKS, INC. OPERATING METRICS IN MILLIONS CAPITALIZATION (AS OF 7/20/01) Ticker (NASDAQ) USAI USAi Common Stock 312.6 USAi Class B 63.0 USAi Exchangeable Common Stock 213.0 USAi Exchangeable Class B 148.2 --------------- Total Shares Outstanding 736.8 Estimated dilutive options (treasury method)* 47.0 --------------- Fully diluted shares 783.8 =============== Outstanding equity cap $19.9 billion Fully diluted equity cap $21.1 billion * Does not include assumed tax savings. ---------------------------------------------------------------------------------- BUSINESS MIX Revenue sources (Q2 '01): Merchandise 33% Ticketing 12% Hotel rooms 10% Teleservices / ECS 6% Personals 1% --------------- Commerce 62% =============== Advertising 14% Production and distribution 15% Affiliate fees and subscriptions 9% --------------- Media 38% =============== Online (% of total) 18% International (% of total) 12%
THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. As filed with the Securities and Exchange Commission on July 25, 2001.