EX-99.1 3 a2062104zex-99_1.txt EXHIBIT 99.1 Exhibit 99.1 USA NETWORKS, INC. PRO FORMA SEGMENT RESULTS $ IN MILLIONS; ROUNDING DIFFERENCES MAY EXIST. UNAUDITED.
REVENUE 1999 2000 2001 -------- ------------------------------------------------ -------------------------------------------- YE 12/31 Q1 Q2 Q3 Q4 YE 12/31 Q1 Q2 Q3 Q4 YTD 9/30 -------- -------- -------- -------- -------- -------- -------- -------- -------- ------ -------- OPERATING BUSINESSES Network and studios $1,304.7 $ 379.0 $ 390.7 $ 336.0 $ 424.8 $1,530.5 $ 437.7 $ 444.2 $ 382.2 $1,264.1 HSN - U.S. 1,332.9 324.5 319.9 348.2 437.4 1,430.0 349.6 356.5 374.8 1,080.9 HSN - Germany 166.7 65.8 57.1 62.7 74.0 259.6 78.9 80.2 60.0 219.0 Ticketing 442.7 128.0 143.0 124.9 122.7 518.6 150.1 163.9 133.9 447.9 Hotel Reservations 161.8 55.3 78.1 94.6 100.0 328.0 105.3 138.3 151.2 394.8 Expedia* 73.0 33.2 37.0 42.1 44.4 156.7 57.2 78.5 79.5 215.2 Precision Response 215.9 69.6 70.2 70.2 72.1 282.1 80.7 75.6 72.6 228.9 Match.com 9.0 6.9 7.5 7.6 7.2 29.2 8.5 10.7 12.5 31.7 -------- -------- -------- -------- -------- -------- -------- -------- -------- ------ -------- SUB-TOTAL 3,706.8 1,062.2 1,103.5 1,086.4 1,282.5 4,534.6 1,268.0 1,347.9 1,266.7 3,882.5 Emerging Businesses Citysearch and related 27.3 10.1 12.8 14.0 14.0 50.8 12.4 12.4 11.1 35.8 HSN - Other International 8.9 3.8 3.6 4.4 9.4 21.3 4.5 7.5 6.2 18.2 Trio, NWI, Crime, other emerging 1.2 0.6 3.7 8.6 7.5 20.3 6.2 6.2 5.8 18.1 ECS/Styleclick 55.4 12.5 10.1 12.5 13.4 48.5 8.8 8.4 5.7 22.9 USA Films 82.1 30.3 20.8 14.5 20.5 86.1 51.0 62.6 16.0 129.6 -------- -------- -------- -------- -------- -------- -------- -------- -------- ------ -------- SUB-TOTAL 174.9 57.3 50.9 53.9 64.9 227.1 82.9 97.0 44.8 224.7 -------- -------- -------- -------- -------- -------- -------- -------- -------- ------ -------- Non-recurring items 6.9 -- -- -- -- -- -- -- 16.0 16.0 Foreign exchange conversion -- (7.9) (6.7) (8.9) (11.8) (35.3) (13.7) (13.8) (9.1) (36.6) Disengaged HSN Homes -- 34.0 24.1 20.6 24.7 103.3 35.8 25.3 21.6 82.7 Intersegment Elimination -- -- -- -- -- -- -- (6.5) (4.1) (10.7) -------- -------- -------- -------- -------- -------- -------- -------- -------- ------ -------- TOTAL $3,888.6 $1,145.6 $1,171.8 $1,152.0 $1,360.3 $4,829.7 $1,372.9 $1,449.9 $1,335.8 $4,158.6 ======== ======== ======== ======== ======== ======== ======== ======== ======== ====== ======== USA Network $ 757.7 $ 196.9 $ 208.9 $ 200.5 $ 201.4 $ 807.8 $ 216.8 $ 221.4 $ 198.0 $ 636.2 SCI FI 198.5 62.4 71.3 64.6 78.4 276.7 69.3 70.3 63.1 202.8 Studios, net 348.6 119.6 110.5 71.0 144.9 446.0 151.5 152.5 121.1 425.1 -------- -------- -------- -------- -------- -------- -------- -------- -------- ------ -------- Cable and studios $1,304.7 $ 379.0 $ 390.7 $ 336.0 $ 424.8 $1,530.5 $ 437.7 $ 444.2 $ 382.2 $1,264.1 =================================================================================================================================== Operating Businesses Entertainment $1,304.7 $ 379.0 $ 390.7 $ 336.0 $ 424.8 $1,530.5 $ 437.7 $ 444.2 $ 382.2 $1,264.1 Electronic retailing 1,499.6 390.3 377.0 411.0 511.4 1,689.6 428.5 436.7 434.8 1,300.0 Information and services 902.5 293.0 335.7 339.4 346.4 1,314.5 401.9 467.0 449.7 1,318.5 -------- -------- -------- -------- -------- -------- -------- -------- -------- ------ -------- SUB-TOTAL $3,706.8 $1,062.2 $1,103.5 $1,086.4 $1,282.5 $4,534.6 $1,268.0 $1,347.9 $1,266.7 $3,882.5 ======== ======== ======== ======== ======== ======== ======== ======== ======== ====== ========
THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. *The acquisition of Expedia is expected to close during Q4 '01. As filed with the Securities and Exchange Commission on October 30, 2001. USA NETWORKS, INC. PRO FORMA SEGMENT RESULTS $ IN MILLIONS; ROUNDING DIFFERENCES MAY EXIST. UNAUDITED.
EBITDA 1999 2000 2001 -------- -------------------------------------------- ------------------------------------------ YE 12/31 Q1 Q2 Q3 Q4 YE 12/31 Q1 Q2 Q3 Q4 YTD 9/30 -------- ------ ------ ------ ------ --------- ------ ------ ------ ------ -------- OPERATING BUSINESSES Network and studios $ 433.9 $138.8 $139.4 $118.5 $151.1 $547.7 $163.4 $171.3 $139.2 $473.9 HSN - U.S. 214.7 44.5 49.1 50.8 71.0 215.4 46.8 51.7 45.9 144.4 HSN - Germany 16.3 8.7 4.7 5.8 9.0 28.2 5.6 5.9 (5.0) 6.6 Ticketing 93.3 27.4 31.6 16.7 24.4 100.0 30.2 35.5 19.0 84.8 Hotel Reservations 24.2 8.2 12.9 13.9 17.6 52.6 15.8 21.0 21.8 58.6 Expedia* (44.3) (22.8) (15.6) (2.2) (3.3) (43.9) 3.7 15.3 15.1 34.1 Precision Response 30.4 9.5 11.9 11.1 11.0 43.6 10.0 10.2 7.9 28.1 Match.com (0.4) 0.9 1.7 2.3 1.4 6.3 0.3 2.8 5.8 8.9 Corporate and other (36.1) (9.6) (6.8) (6.2) (5.0) (27.6) (7.9) (8.2) (8.1) (24.2) -------- ------ ------ ------ ------ ------- ------ ------ ------ ------ ------ SUB-TOTAL 731.9 205.4 228.9 210.7 277.3 922.2 267.9 305.5 241.7 815.1 EMERGING BUSINESSES Citysearch and related (60.4) (18.3) (16.9) (16.3) (12.6) (64.0) (11.8) (11.0) (10.8) (33.6) HSN - Other International (4.5) (1.5) (2.5) (4.6) (5.0) (13.5) (6.4) (7.5) (7.5) (21.4) Trio, NWI, Crime, other emerging (3.0) (2.3) (2.0) (0.3) (2.5) (7.1) (1.7) (2.4) (3.1) (7.1) ECS/Styleclick (56.0) (16.3) (21.4) (16.7) (16.8) (71.2) (16.9) (14.5) (14.4) (45.8) USA Films 6.4 2.2 (2.3) (5.8) (0.6) (6.6) (1.0) 0.6 0.4 0.0 -------- ------ ------ ------ ------ ------- ------ ------ ------ ------ ------ SUB-TOTAL (117.5) (36.1) (45.1) (43.8) (37.4) (162.5) (37.8) (34.7) (35.3) (107.8) Non recurring items -- 6.3 (7.8) -- (4.1) (5.6) -- (4.8) 3.7 (1.1) Foreign exchange conversion -- (1.0) (0.6) (0.9) (1.5) (3.9) (0.9) (1.0) 0.9 (1.0) Disengaged HSN Homes -- 4.9 3.5 3.0 3.6 14.9 5.0 3.5 3.0 11.5 Intersegment Elimination -- -- -- -- -- -- -- (3.9) (1.8) (5.8) -------- ------ ------ ------ ------ ------- ------ ------ ------ ------ ------ TOTAL $ 614.3 $179.5 $178.8 $169.0 $237.8 $ 765.1 $234.1 $264.6 $212.2 $711.0 ======== ====== ====== ====== ====== ========= ====== ====== ====== ====== ====== USA Network $ 312.1 $ 97.1 $105.4 $ 87.2 $105.6 $ 395.2 $112.2 $123.3 $ 97.7 $333.2 SCI FI 68.9 24.2 24.9 22.4 30.2 101.7 29.7 27.8 23.9 81.4 Studios, net 52.9 17.5 9.1 8.8 15.4 50.8 21.5 20.2 17.6 59.3 -------- ------ ------ ------ ------ ------- ------ ------ ------ ------ ------ Cable and studios $ 433.9 $138.8 $139.4 $118.5 $151.1 $ 547.7 $163.4 $171.3 $139.2 $473.9 ================================================================================================================================ OPERATING BUSINESSES Entertainment $ 433.9 $138.8 $139.4 $118.5 $151.1 $ 547.7 $163.4 $171.3 $139.2 $473.9 Electronic retailing 230.9 53.2 53.8 56.6 80.0 243.6 52.4 57.6 40.9 150.9 Information and services 103.2 23.1 42.5 41.8 51.2 158.6 60.0 84.8 69.6 214.5 Corporate and other (36.1) (9.6) (6.8) (6.2) (5.0) (27.6) (7.9) (8.2) (8.1) (24.2) -------- ------ ------ ------ ------ ------- ------ ------ ------ ------ ------ TOTAL $ 731.9 $205.4 $228.9 $210.7 $277.3 $ 922.2 $267.9 $305.5 $241.7 $815.1 -------- ------ ------ ------ ------ ------- ------ ------ ------ ------ ------
THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. *The acquisition of Expedia is expected to close during Q4 '01. As filed with the Securities and Exchange Commission on October 30, 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 10/24/01 02/01/01 02/01/01 Revenues, net $3,815.6 $1,112.4 $1,134.9 $1,109.9 $1,315.9 $4,673.0 Operating costs and expenses: Costs related to revenues 2,301.7 665.6 676.3 669.1 801.3 2,812.4 Other costs and expenses 855.1 244.9 264.1 269.6 278.6 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 38.3 54.0 166.1 Amortization of goodwill 374.0 108.0 110.5 113.6 135.1 467.3 -------- -------- -------- -------- -------- -------- Total operating costs 3,650.1 1,056.5 1,096.8 1,093.2 1,276.1 4,521.7 -------- -------- -------- -------- -------- -------- Operating income 165.4 55.9 38.0 16.7 39.8 151.3 Interest expense, net (50.2) (8.6) (7.9) (8.2) (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) 61.7 (28.3) 14.3 -------- -------- -------- -------- -------- -------- Earnings before income taxes and minority interest 200.1 46.7 28.2 78.4 11.5 165.7 Income tax expense (83.9) (30.3) (29.6) (25.6) (26.3) (113.0) Minority interest (136.7) (40.4) (30.2) (66.7) (14.4) (128.5) -------- -------- -------- -------- -------- -------- Loss before cumulative effect of accounting change (20.5) (23.9) (31.6) (13.9) (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) (13.9) (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 745.8 752.5 724.7 729.0 752.6 747.4 ======== ======== ======== ======== ======== ======== Basic earnings per share $ (.06) $ .07 $ (.09) $ (.04) $ (.08) $ (.21) ======== ======== ======== ======== ======== ======== Diluted earnings per share $ (.06) $ .07 $ (.09) $ (.04) $ (.08) $ (.21) ======== ======== ======== ======== ======== ======== Fully converted earnings per share $ .12 $ .01 $ (.02) $ (.02) $ (.00) $ .05 ======== ======== ======== ======== ======== ======== EBITDA 658.7 201.9 194.4 171.2 236.0 796.3 ======== ======== ======== ======== ======== ======== Excluding one-time charges and non-operating gains: Basic and diluted earnings per share $ (.11) $ (.07) $ (.07) $ (.08) $ (.03) $ (.19) ======== ======== ======== ======== ======== ======== Cash net income earnings per share $ .11 $ .17 $ .16 $ .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 10/24/01 Revenues, net $1,315.7 $1,371.4 $1,256.3 Operating costs and expenses: Costs related to revenues 800.2 831.7 746.7 Other costs and expenses 285.4 290.5 312.5 Amort. of non-cash distribution and marketing expense 8.0 6.6 5.2 Depreciation 48.7 57.6 51.2 Amortization of goodwill 100.2 100.8 103.0 -------- -------- -------- -------- -------- Total operating costs 1,242.5 1,287.3 1,218.6 -------- -------- -------- -------- -------- Operating income 73.2 84.2 37.7 Interest expense, net (11.4) (12.9) (10.1) Gain on disposition of television station 0.0 0.0 0.0 Gain on sale of securities 0.0 0.0 0.0 Other, net (6.5) (13.7) (12.9) -------- -------- -------- -------- -------- (17.9) (26.6) (23.1) -------- -------- -------- -------- -------- Earnings before income taxes and minority interest 55.3 57.5 14.7 Income tax expense (25.5) (22.8) (21.9) Minority interest (49.3) (45.0) (33.2) -------- -------- -------- -------- -------- Loss before cumulative effect of accounting change (19.5) (10.3) (40.4) Cumulative effect of accounting change, net of tax (9.2) 0.0 0.0 -------- -------- -------- Net loss from continuing operations (28.7) (10.3) (40.4) ======== ======== ======== ======== ======== Weighted average diluted shares 370.2 373.8 376.4 ======== ======== ======== ======== ======== Weighted average fully converted shares 758.0 763.4 737.6 ======== ======== ======== ======== ======== Basic earnings per share $ (.05) $ (.03) $ (.11) ======== ======== ======== ======== ======== Diluted earnings per share $ (.05) $ (.03) $ (.08) ======== ======== ======== ======== ======== Fully converted earnings per share $ .02 $ .03 $ (.01) ======== ======== ======== ======== ======== EBITDA 230.1 249.3 197.1 ======== ======== ======== ======== ======== Excluding one-time charges and non-operating gains: Basic and diluted earnings per share $ (.05) $ (.02) $ (.08) ======== ======== ======== ======== ======== Cash net income earnings per share $ .16 $ .20 $ .13 ======== ======== ======== ======== ======== Fully converted earnings per share $ .02 $ .04 $ (.01) ======== ======== ======== ======== ======== Fully converted cash net income earnings per share $ .12 $ .14 $ .10 ======== ======== ======== ======== ========
* 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 October 30, 2001. NOTE: P&L EXCLUDES EXPEDIA, the acquisition of which is expected to close during Q4 '01. USA NETWORKS, INC. OPERATING METRICS IN MILLIONS EXCEPT PERCENTAGES AND RATINGS.
1999 2000 2001 ------- -------------------------------------------------- --------------------------- YE Q1 Q2 Q3 Q4 YE Q1 Q2 Q3 ------- ------- ------- ------- ------- ------- ------- ------- ------- USA NETWORK Advertising and other revenue 57% 57% 59% 58% 57% 58% 58% 59% 55% Affiliate revenue 43% 43% 41% 42% 43% 42% 42% 41% 45% Average primetime rating 2.4 2.4 2.2 2.0 1.7 2.1 1.9 1.8 1.7 Households (end of period) 77.2 77.4 78.2 79.4 79.9 79.9 81.3 81.9 84.3 1999 2000 2001 ------- -------------------------------------------------- --------------------------- YE Q1 Q2 Q3 Q4 YE Q1 Q2 Q3 ------- ------- ------- ------- ------- ------- ------- ------- ------- SCI FI CHANNEL Advertising and other revenue 60% 65% 66% 63% 67% 65% 63% 66% 61% Affiliate revenue 40% 35% 34% 37% 33% 35% 37% 34% 39% Average primetime rating 0.8 0.9 0.8 0.9 0.9 0.9 0.8 0.8 0.8 Households (end of period) 59.7 60.5 62.7 65.1 66.7 66.7 69.4 70.9 74.7 2000 2001 -------------------------------------------------- --------------------------- Q1 Q2 Q3 Q4 YE Q1 Q2 Q3 ------- ------- ------- ------- ------- ------- ------- ------- TRIO Households (end of period) 6.9 7.3 7.3 8.8 11.3 12.7 NWI Households (end of period) 6.5 6.7 6.7 8.0 10.3 11.6
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 October 30, 2001. USA NETWORKS, INC. OPERATING METRICS IN MILLIONS EXCEPT PERCENTAGES.
2000 2001 ------------------------------------------------------- ------------------------------- Q1 Q2 Q3 Q4 YE Q1 Q2 Q3 ------- ------- ------- ------- ------- ------- ------- ------- HSN- U.S. Units shipped 8.5 8.1 8.6 10.0 35.2 8.6 9.0 8.8 Gross profit % 33.7% 34.6% 34.6% 32.3% 33.8% 32.1% 33.1% 32.0% Return rate 20.6% 19.4% 19.8% 18.8% 19.6% 19.6% 19.6% 19.4% Product mix: Homegoods 50% 46% 48% 54% 50% 51% 49% 52% Jewelry 24% 27% 26% 24% 25% 25% 26% 24% Health/Beauty 13% 15% 12% 10% 12% 11% 12% 10% Apparel/Accessories 14% 12% 14% 12% 13% 14% 13% 14% HSN cable/DBS HH (end of period) 62.0 63.2 64.9 65.6 65.6 68.1 69.2 71.5 HSN total HH (end of period) 75.2 76.4 75.9 76.8 76.8 79.9 80.8 82.8 America's Store FTE's (end of period) 8.8 8.8 9.0 8.6 8.6 8.3 10.6 10.8
THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. As filed with the Securities and Exchange Commission on October 30, 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 Q3 ------ ------ ------ ------ ------ ------ ------ ------ ------ TICKETMASTER Number of tickets sold (mm) 75.0 21.8 22.3 20.2 18.7 83.0 23.6 23.5 19.3 Gross value of tickets sold (mm) $2,781 $812 $881 $782 $781 $3,256 $937 $1,016 $788 Share of tickets sold online 13.4% 19.6% 25.5% 25.6% 27.9% 24.5% 29.5% 33.2% 31.9% Revenue per ticket $5.25 $5.44 $5.89 $5.67 $5.87 $5.71 $5.96 $6.29 $6.20
THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. As filed with the Securities and Exchange Commission on October 30, 2001. USA NETWORKS, INC. OPERATING METRICS
1999 2000 2001 ------- ----------------------------------------------- --------------------------- YE Q1 Q2 Q3 Q4 YE Q1 Q2 Q3 ------- ------- ------- ------- ------- ------- ------- ------- ------- HOTEL RESERVATIONS NETWORK Hotel room nights sold (thousands) 1,229 429 587 717 700 2,433 799 1,030 1,227 Affiliates (including TravelNow) 6,000 10,500 13,400 18,649 20,857 22,793 Properties 1,500 1,750 1,925 2,100 2,700 2,700 3,084 3,374 3,890 Cities served 40 49 60 83 97 97 135 146 171
THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. As filed with the Securities and Exchange Commission on October 30, 2001. USA NETWORKS, INC. OPERATING METRICS IN MILLIONS CAPITALIZATION (AS OF 10/15/01) Ticker (NASDAQ) USAI USAi Common Stock 314.0 USAi Class B 63.0 USAi Exchangeable Common Stock 213.0 USAi Exchangeable Class B 148.2 --------------- Total Shares Outstanding 738.2 Estimated dilutive options (treasury method) * 29.0 --------------- Fully diluted shares 767.2 =============== Outstanding equity cap $14.9 billion Fully diluted equity cap $15.6 billion * Does not include assumed tax savings. BUSINESS MIX Revenue sources (Q3 '01): Merchandise 36% Ticketing 11% Hotel rooms 12% Teleservices / ECS 6% Personals 1% --------------- Commerce 66% =============== Advertising 14% Production and distribution 10% Affiliate fees and subscriptions 10% --------------- Media 34% =============== Online (% of total) 20% International (% of total) 10%
THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. As filed with the Securities and Exchange Commission on October 30, 2001.