UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) of the
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 25, 2001
USA NETWORKS, INC.
(Exact name of Registrant as specified in charter)
Delaware 0-20570 59-2712887
(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
152 West 57th Street, New York, NY 10019
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(212) 314-7300
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits.
99.1 Press Release of USA Networks, Inc. dated April 25, 2001.
99.2 Supplemental Information.
ITEM 9. REGULATION FD DISCLOSURE
On April 25, 2001, the Registrant issued a press release announcing its
results for the quarter ended March 31, 2001. The full text of this press
release, appearing in Exhibit 99.1 hereto, and Supplemental Information,
appearing in Exhibit 99.2 hereto, are furnished pursuant to Regulation FD.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
USA NETWORKS, INC.
By: /s/ Julius Genachowski
-----------------------
Name: Julius Genachowski
Title: Senior Vice President and
General Counsel
Date: April 25, 2001
EXHIBIT INDEX
Exhibit No. Description
99.1 Press Release of USA Networks, Inc. dated April 25, 2001.
99.2 Supplemental Information.
Exhibit 99.1
USA
NETWORKS
INC
FOR IMMEDIATE RELEASE APRIL 25, 2001
16% EBITDA GROWTH AT USAI
EXCEEDS ESTIMATES FOR 20TH CONSECUTIVE QUARTER SINCE INCEPTION
REAFFIRMS OVERALL GUIDANCE FOR 2001 AND 2002
COMPANY IS 2ND MOST PROFITABLE IN INTERNET COMMERCE
NEW YORK, April 25, 2001 - USA Networks, Inc. (NASDAQ: USAI) reported results
for its quarter ended March 31, 2001.
HIGHLIGHTS
o Overall guidance remains unchanged for 2001 and 2002, which provides for
18% and 20% EBITDA growth, respectively, for the Operating Businesses. USAi
expects to grow total EBITDA by at least 25% annually through 2002. The
Company has exceeded EBITDA estimates for five straight years.
o Deriving 61% of its Q1 revenue from direct consumer transactions, 24% from
subscriptions and production fees, and 15% from advertising, USAi believes
its multiple revenue streams provide a real fundamental advantage in
withstanding a slowing general business environment.
o The Operating Businesses increased EBITDA by 16% to $268.9 million on 17%
higher revenue to $1.238 billion. Five divisions posted record revenues in
the period: USA Network, Studios USA, Ticketing, Hotel Reservations
Network, and Precision Response.
o USA Network had a record quarter, growing revenue by 10% to $216.8 million
and EBITDA by 16% to $112.2 million. SCI FI grew revenue by 11% and EBITDA
by 23%. Studios USA increased revenue by 27% and EBITDA by 23%.
o HSN grew revenue by 8% in the United States, including a 14% increase
during March. HSN has continued to grow its sales by a double digit
increase in April. These results have been achieved amidst one of the most
difficult overall retail environments in nearly a decade.
o Information & Services is the Company's fastest growing unit and increased
its Operating Business revenue by 33% and EBITDA by 25% for the period.
o The Company's Internet Commerce Group grew revenue by 89% to $182 million
and EBITDA by 70% to $39 million in Q1. Estimating $750 million in revenue
and $120 million in EBITDA in 2001, the group expects to be second in
profitability only to eBay in consumer commerce on the Internet. The
Internet Commerce Group is comprised of HSN.com, Hotel Reservations
Network, Ticketmaster.com and Match.com.
FINANCIAL RESULTS
On a comparative pro forma basis, USAi reported the following, excluding
discontinued operations:
ACTUAL PRO FORMA
Q1 01 Q1 00 GROWTH
------ ------- ------
($ IN MILLIONS)
REVENUES - OPERATING BUSINESSES
Cable and studios...................... $437.6 $379.0 15%
Electronic retailing - U.S............. 385.4 358.5 8%
Electronic retailing - Germany......... 78.9 65.8 20%
Ticketing.............................. 150.1 128.0 17%
Hotel reservations..................... 105.3 55.3 91%
Teleservices........................... 80.7 69.6 16%
--------- -------- ----
SUB-TOTAL - OPERATING.............. 1,238.0 1,056.1 17%
Euro exchange rate fluctuation (a).......... (13.7) (7.9)
REVENUES - EMERGING BUSINESSES
Citysearch, Match.com, and related..... 20.9 17.0
Styleclick............................. 4.0 7.9
Electronic Commerce Solutions.......... 4.8 4.7
HSN - other international.............. 4.5 3.8
USA Films.............................. 51.0 30.3
Trio, NWI, SCIFI.com, USA Network.com.. 6.2 0.6
-------- --------
SUB-TOTAL - EMERGING............... 91.4 64.2
-------- -------- ----
TOTAL.............................. $1,315.7 $1,112.4 18%
======== ======== ====
EBITDA - OPERATING BUSINESSES
Cable and studios...................... $163.4 $138.8 18%
Electronic retailing - U.S............. 51.7 49.4 5%
Electronic retailing - Germany......... 5.6 8.7 (35%)(b)
Ticketing.............................. 30.2 27.4 10%
Hotel reservations..................... 15.8 8.2 94%
Teleservices........................... 10.0 9.5 6%
Corporate and other.................... (7.9) (9.6)
-------- -------- ----
SUB-TOTAL - OPERATING.............. 268.9 232.2 16%
Euro exchange rate fluctuation (a)..... (0.9) (1.0)
Nonrecurring credits (charges) (c)..... -- 6.3
EBITDA - EMERGING BUSINESSES
Citysearch, Match.com, and related..... (11.8) (17.7)
Styleclick............................. (10.4) (10.7)
Electronic Commerce Solutions.......... (6.5) (5.6)
HSN - other international.............. (6.4) (1.5)
USA Films.............................. (1.0) 2.2
Trio, NWI, SCIFI.com, USA Network.com.. (1.7) (2.3)
-------- --------
SUB-TOTAL - EMERGING............... (37.9) (35.6)
-------- -------- ----
TOTAL.............................. $230.1 $201.9 14%
======= ======= ====
o Excludes results from USA Broadcasting, the sale of which to Univision
was announced in December, 2000.
o Presented as if the acquisitions of Precision Response and Styleclick had
occurred at the beginning of the periods presented.
o EBITDA is defined as net income plus, (1) provision for income taxes,
(2) minority interest, (3) interest income and expense, (4) depreciation
and amortization, (5) amortization of cable distribution fees ($8.8 million
and $8.2 million, respectively), and (6) amortization of non-cash
distribution and marketing expense and non-cash compensation.
(a) In order to present comparable results for HSN Germany, the results have
been translated from Euros to U.S. dollars at a constant exchange rate.
(b) HSN Germany's EBITDA growth was impacted primarily by costs associated with
adding four hours of daily live programming during Q1 and the implementation
of a new sales order system.
(c) Represents one-time credits recognized in Q1 `00 by HSN in connection with
a favorable settlement of litigation relating to an HSN broadcast
affiliation agreement ($4.7 million) and a cable affiliation agreement
($1.6 million).
-- More --
BUSINESS MIX
61% of USAi's Q1 revenue came from direct consumer transactions, 24% was derived
from subscriptions and production fees, and 15% was advertising-related. The
operating business of the company's organizational units reported the following:
ACTUAL PRO FORMA
($ IN MILLIONS) Q1 01 Q1 00 GROWTH MIX
------ ------- ------ ---
REVENUES - OPERATING BUSINESSES
Entertainment................................... $437.6 $379.0 15% 35%
Electronic retailing............................ 464.3 424.3 9% 38%
Information and Services........................ 336.1 252.9 33% 27%
-------- -------- --- ----
TOTAL....................................... $1,238.0 $1,056.1 17% 100%
======== ======== === ====
EBITDA - OPERATING BUSINESSES
Entertainment................................... $163.4 $138.8 18% 61%
Electronic retailing............................ 57.3 58.1 -1%(a) 21%
Information and Services........................ 56.1 45.0 25% 21%
Corporate and other............................. (7.9) (9.6) (3%)
-------- -------- --- ----
TOTAL....................................... $268.9 $232.2 16% 100%
======== ======== === ====
(a) HSN Germany's EBITDA growth was impacted primarily by costs associated with
adding four hours of daily live programming during Q1 and the
implementation of a new sales order system.
CASH NET INCOME AND EARNINGS PER SHARE
PRO FORMA(a) PRO FORMA(a)(b)
Q1 01 Q1 00
----- ------
Fully converted cash net income per share....... 0.12 0.09
Fully converted earnings per share.............. 0.02 (0.01)
Cash net income per share....................... 0.16 0.11
Basic loss per share............................ (0.05) (0.07)
(a) Amounts based on net income before cumulative effect of accounting change
($9.2 loss million in Q1 '01) and discontinued operations ($11.8 million
loss in Q1 '00).
(b) Excluding one-time credits ($6.3 million, pre-tax, in Q1 `00).
Due to regulatory restrictions, Universal and Liberty own a significant portion
of their interests in USAi through USAi subsidiaries. This structure causes USAi
to record net losses in situations where net income would otherwise have been
recorded if their ownership were entirely in USAi common stock. Fully converted
earnings and fully converted cash net income reflect the impact as if all shares
exchangeable into common stock had been exchanged during the period.
-- More --
ENTERTAINMENT HIGHLIGHTS
USA NETWORK grew revenue by 10% to $216.8 million and EBITDA by 16% to $112.2
million, its best quarter in history.
o USA climbed one-half rating point over five months to tie for #1 in
February cable primetime. Its Q1 average primetime rating increased 12%
from Q4 '00 to 1.9. Delivery of targeted adults 25-54 is up more than 30%
from Q1 '00 in primetime on Wednesdays and Saturdays.
o Mark Burnett's ECO-CHALLENGE: BORNEO did a 2.0 rating, nearly doubling its
adult 25-54 audience from last year and making it the most viewed
ECO-CHALLENGE in its 7-year history.
o ATTILA averaged a 5.8 to become cable's #2 most watched mini-series in
history, behind USA's own MOBY DICK in 1998.
o USA's acquired movies averaged a 1.8 rating in Q1 '01 and increased
delivery of adults 25-54 by 12% versus Q1 '00.
o USA Sports coverage of 10 professional golf tournaments in Q1 has
generated 10% higher ratings and delivered 31% more targeted men
25-54 versus last season.
o JAG, cable's top rated acquired strip series, is up 14% from Q1 '00. NASH
BRIDGES, cable's 2nd highest rated acquired strip series, averaged a 2.0
rating in Q1, and WALKER, TEXAS RANGER, has improved its time slot ratings
by 70% vs. Q1 `00.
SCI FI grew revenue by 11% to $69.3 million and EBITDA by 23% to $29.7 million.
o One of the fastest growing cable networks in history, SCI FI surpassed 70
million households in April.
o SCI FI's average primetime rating in Q1 was 0.8 and its average delivery
was 565,000.
o SCI FI continues to have the highest concentration of adult viewers 25-54
of any network on television, ranks in the top 10 among basic cable
networks in its delivery of adults and men 25-54, and for the last three
weeks of March, delivered more viewers in these targeted demos than WB and
UPN on Friday night.
o New episodes of SCI FI's Friday night original series - INVISIBLE MAN,
FARSCAPE and OUTER LIMITS - have set new rating and delivery records for
their regularly scheduled time periods. FARSCAPE'S new episodes are up 38%
from its 2000 average rating.
o CROSSING OVER WITH JOHN EDWARD has improved the 11:00pm and 11:30pm ratings
by 33% versus Q1 '00.
o SCI FI is the #1 provider of original scripted series in cable primetime.
STUDIOS USA grew net revenue by 27% to $151.5 million, its best ever, and net
EBITDA by 23% to $21.5 million.
o LAW & ORDER, the #2 drama on television, averaged a 13.2 rating in
February, its best sweep performance in history.
o LAW & ORDER: SVU, the most watched show on Friday by adults 18-49, improved
its sweeps rating by 8% versus 2/00.
o THE DISTRICT, the #1 rated series on Saturday, is also second highest rated
new television drama this season.
o MAURY remains the only syndicated daytime series to grow its ratings in two
consecutive years.
o Studios USA is the #3 producer of primetime and first-run syndicated
programming including two of the top four syndicated talk shows and two of
the top ten primetime dramas.
-- More --
ENTERTAINMENT HIGHLIGHTS (CONTINUED)
CABLE AND STUDIOS:
Q1 01 Q1 00 GROWTH
----- ----- ------
Revenue ($ IN MILLIONS):
USA Network................................. $216.8 $196.9 10%
SCI FI...................................... 69.3 62.4 11%
Studios, net................................ 151.5 119.6 27%
------ ------ ------
Total................................. $437.6 $379.0 15%
====== ====== ======
EBITDA ($ IN MILLIONS):
USA Network................................. $112.2 $97.1 16%
SCI FI...................................... 29.7 24.2 23%
Studios, net................................ 21.5 17.5 23%
------ ------ ------
Total................................. $163.4 $138.8 18%
====== ====== ======
Households (IN MILLIONS @ 3/31):
USA Network................................. 81.3 77.4 5%
SCI FI...................................... 69.4 60.5 15%
Advertising and other revenue / affiliate revenue:
USA Network mix............................. 58:42 57:43
SCI FI mix.................................. 63:37 64:36
USA FILMS' TRAFFIC has generated more than $120 million at the box office, and
was the 3rd highest-grossing film during Q1 in North America. TRAFFIC garnered
four ACADEMY AWARDS for Best Director, Best Screenplay (Adapted), Best
Supporting Actor and Best Editing. USA Films' theatrical releases during the
period also included IN THE MOOD FOR LOVE and SERIES 7. USA Home Entertainment's
Q1 releases included NURSE BETTY, 2001 SUPER BOWL CHAMPION BALTIMORE RAVENS, and
USA's original mini-series ATTILA.
-- More --
ELECTRONIC RETAILING HIGHLIGHTS
HSN grew revenue by 8% to $385.4 million and EBITDA by 5% to $51.7 million in
the United States (excluding one-time credits recognized in Q1 '00).
o HSN added more than 530,000 new customers during the period, increasing its
active customer base by 20% to 4.8 million customers versus March 2000.
o HSN.com sales grew more than 300% to nearly $19 million in Q1 with
virtually no incremental customer acquisition costs. 42% of HSN.com's
customers are new to the HSN franchise. Customers shopping on HSN and
HSN.com are spending an average 25% more than they were on HSN TV alone.
o Programming highlights include: HSN became a significant player in the arts
and crafts business by acquiring the assets of Craftopia.com; HSN is
partnering with GOOD HOUSEKEEPING to develop and launch a line of houseware
products found only on the network; HSN will be the exclusive retailer of
THE LOOK designed by Randolph Duke, a collection of apparel and accessories
from the celebrity designer.
Q1 01 Q1 00 GROWTH
----- ----- ------
U.S. units shipped (IN MILLIONS)..................... 8.4 8.3 1%
On air gross profit %................................ 32.3% 33.6%
On air return rate................................... 20.0% 20.9%
On air product mix:
Homegoods................................... 49% 50%
Jewelry..................................... 26% 25%
Health / Beauty............................. 10% 11%
Apparel / Accessories....................... 15% 14%
HSN cable / DBS homes (IN MILLIONS @ 3/31)........... 68.1 62.0 10%
HSN total homes (IN MILLIONS @ 3/31)................. 79.9 75.2 6%
-- More --
ELECTRONIC RETAILING HIGHLIGHTS (CONTINUED)
HSN - INTERNATIONAL
o HSN Germany grew revenue by 20% in Q1. HSN Germany's EBITDA growth was
impacted primarily by costs associated with adding four additional hours of
daily live programming during Q1 and the implementation of a new sales
order system.
o Home Shopping Espanol expanded into Puerto Rico in February and expects to
go into Mexico this spring. HSE attracted 110,000 new customers in Q1 `01,
a 40% increase over the year ago period
o HSN also recently launched new services in Italy and a Dutch language
service in Belgium and The Netherlands.
o HSN is the world's #1 distributed television retailer, reaching 154 million
households.
TV HOUSEHOLDS LIVE HOURS
----------------------------
3/01 3/00 GROWTH DAILY 3/01 STAKE
---- ---- ------ --------- ------
Consolidated Services: (IN MILLIONS @ 3/31)
HOT Germany (includes Austria / Switzerland).......... 29.7 28.2 1.5 20 hours 42%
Home Shopping en Espanol (U.S. / Puerto Rico)......... 4.5 2.7 1.8 18 hours 100%
Unconsolidated Services:
TVSN (China).......................................... 17.8 -- 17.8 5 hours 21%
Shop Channel (Japan) ................................. 9.4 7.2 2.2 12 hours 30%
HOT Italia (Italy).................................... 9.4 -- 9.4 6 hours 33%
HOT Thuis Winkelen (Belgium / The Netherlands)........ 1.6 -- 1.6 6 hours 47%
HOT LeGrand Magasin (France / Belgium)................ 1.5 1.4 0.1 8 hours 47%
INFORMATION & SERVICES HIGHLIGHTS
TICKETMASTER grew ticketing revenue by 17% to a record $150.1 million and EBITDA
by 10% to $30.2 million.
o Online ticket sales accounted for a record 29.5% of total tickets sold by
Ticketmaster, versus 19.6% in Q1 '00.
o Ticketing highlights include: A strategic partnership with AOL covering
event ticketing, movie ticketing and personals; the acquisitions of
ReserveAmerica and Evite; the installation of Print My Own technology in
five new venues; and the installation of Ultimate Fan systems in 3
additional venues.
Q1 01 Q1 00 GROWTH
----- ----- ------
Number of tickets sold (IN MILLIONS)............ 23.6 21.8 8%
Gross value of tickets sold (IN MILLIONS)....... $937 $812 15%
Revenue per ticket.............................. $5.96 $5.44 10%
Share of tickets sold online.................... 29.5% 19.6%
Top-selling events in Q1 `01.................... *NSYNC, U.S. Hot Rod Association Monster Truck Events, Ringling
Brothers and Barnum and Bailey Circus, U2
-- More --
INFORMATION & SERVICES HIGHLIGHTS (CONTINUED)
HOTEL RESERVATIONS NETWORK grew revenue by 91% to a record $105.2 million and
EBITDA by 94% to $15.8 million.
o HRN expanded into 38 new markets and sold 799,000 room nights during Q1.
HRN now has more than 18,600 mostly-exclusive affiliates, including those
affiliated with the newly acquired TravelNow.
o HRN is the #1 provider of discount hotel accommodations worldwide.
Q1 01 Q1 00 GROWTH
----- ----- -------
Hotel room nights sold.......................... 799,000 429,000 86%
Affiliates (including TravelNow)................ 18,649 6,000 211%
Properties...................................... 3,084 1,750 76%
Cities served (AS OF 3/31)...................... 135 49 176%
PRECISION RESPONSE had its best revenue quarter ever, increasing sales by 16% to
$81 million.
o PRC clients added during the recent period include Orbitz, Mellon Investor
Services, and the U.S. Army. The company also expanded its relationships
with Avaya and DirectTV.
o PRC is the #2 inbound teleservices and integrated customer care company in
the United States.
CROSS COMPANY HIGHLIGHTS
o ECO CHALLENGE was a multidimensional success for USAi. USA Networks' 4-day
coverage attracted 2.6 million viewers, Mark Burnett's appearance on HSN
and HSN.com's new Chat Cafe generated more than $40,000 in exclusive
merchandise sales, and Citysearch benefited from joint online and radio
promotions in NY, LA and Chicago.
o USA Network acquired the exclusive off-network rights to Studios USA's LAW
& ORDER: SPECIAL VICTIMS UNIT and will begin airing the series in September
2003. USA Network also acquired the cable television rights to USA Films'
TRAFFIC.
o The Company continues to strengthen its commerce activities in the area of
professional sports. ECS now manages commerce on 4 of the top Internet
sports sites: NBA.com, NASCAR.com, CBS.SportsLine.com and PGATour.com. In
addition, Ticketmaster sells 12 million tickets to major league games and
events, USA Films produces and distributes 1 million sports-related videos,
HSN sells 250,000 units of merchandise through its NFL SHOP and NBA STORE
specials, and USA Network broadcasts live 15 professional sporting events
annually.
o Citysearch is now Hotel Reservation Network's 5th largest affiliate, up
from #7 in the fourth quarter.
SHARES OUTSTANDING, MARKET CAPITALIZATION, NET DEBT
As of April 20, 2001, USAi had outstanding 733.6 million shares, including
exchangeable securities, with an aggregate market capitalization of
approximately $17.1 billion. USAi's net debt, including that of its public
subsidiaries, offset by an advance receivable to Universal, was approximately
$215 million as of March 31, 2001. Net debt is expected to be reduced further
using net cash proceeds from the sale of USA Broadcasting to Univision.
-- More --
STATEMENTS OF OPERATIONS
The actual quarterly results are not comparable due to:
1) the acquisition of Precision Response in April, 2000;
2) the acquisition of Styleclick.com in August 2000; and
3) Ticketmaster's acquisition of TicketWeb.
ANALYST CONFERENCE CALL
USA Networks, Inc. will audiocast its conference call with analysts and
investors discussing the company's first quarter financial results on Wednesday,
April 25, 2001, at 12:00 p.m. Eastern Time (ET). The live audiocast is open to
the public at WWW.USANETWORKS.COM/INVESTOR.RELATIONS. A replay of the audiocast
will begin approximately one hour after its completion at
WWW.USANETWORKS.COM/INVESTOR.RELATIONS.
IMPORTANT DISCLOSURES
This press release 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, including those preceded by, followed by or that include the
words "believes," "projects," "expects," "anticipates" or similar expressions.
These statements reflect 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 of this
press release, and USAi undertakes no obligation to update or revise them,
whether as a result of new information, future events or any other reason.
The financial, statistical and other information contained in this press release
and its attachments is unaudited. USA Network and SCI FI ratings and household
delivery data per NMR Galaxy Explorer for NHI defined periods versus comparable
periods. Subscriber counts based on Nielsen People Meter Installed Sample, March
`01 vs. `00. All ratings within each network's coverage area. Studios'
syndicated program ratings per NSS (GAA % where applicable), and broadcast
network data per NTI for comparable time periods. Subject to qualifications.
USA Networks, Inc. (NASDAQ: USAI) is focused on the new convergence of
entertainment, information and direct selling. Formed in February 1998, the
Company is organized into three distinct but interrelated units which include
the following assets: USA Entertainment's USA Network, SCI FI Channel, TRIO,
NWI, Studios USA, USA Films, and Interactive Entertainment; USA Electronic
Retailing's HSN, HSN International, HSN Interactive; and USA Information and
Services' Ticketmaster, (NASDAQ: TMCS), Citysearch,com, Match.com, Hotel
Reservations Network (NASDAQ: ROOM), Electronic Commerce Solutions, Styleclick,
Inc. (NASDAQ: IBUY) and Precision Response Corporation. More at
www.usanetworks.com.
CONTACTS: MEDIA RELATIONS: INVESTOR RELATIONS:
Adrienne Becker Roger Clark
212-314-7254 212-314-7400
USA NETWORKS, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION - CONTINUING OPERATIONS
UNAUDITED
($ IN THOUSANDS)
THREE MONTHS ENDED MARCH 31,
ACTUAL PRO FORMA (a) ACTUAL
--------------- ---------------- ----------------
2001 2000 2000
--------------- ---------------- ----------------
REVENUES - OPERATING BUSINESSES
Cable and studios $ 437,651 $ 378,953 $ 378,953
Electronic retailing - U.S. 385,372 358,479 358,479
Electronic retailing - Germany 78,861 65,798 65,798
Ticketing 150,109 127,961 127,961
Hotel reservations 105,286 55,263 55,263
Teleservices 80,692 69,649 -
----------- ----------- -----------
SUB-TOTAL 1,237,971 1,056,103 986,454
Euro's exchange rate fluctuation (c) (13,705) (7,890) (7,890)
REVENUES - EMERGING BUSINESSES
Citysearch, Match.com and related 20,928 16,975 16,975
Styleclick 4,019 7,869 6,617
Electronic Commerce Solutions 4,749 4,666 4,666
HSN - international and other 4,547 3,830 3,830
USA Films 51,006 30,307 30,307
Trio, NWI, SCIFI.com, USA Network.com 6,162 562 562
----------- ----------- -----------
SUB-TOTAL 91,411 64,209 62,957
----------- ----------- -----------
TOTAL $ 1,315,677 $ 1,112,422 $ 1,041,521
=========== =========== ===========
EBITDA - OPERATING BUSINESSES (b)
Cable and studios $ 163,407 $ 138,757 $ 138,757
Electronic retailing - U.S. 51,735 49,390 49,390
Electronic retailing - Germany 5,645 8,674 8,674
Ticketing 30,233 27,383 27,383
Hotel reservations 15,822 8,176 8,176
Teleservices 10,017 9,461 -
Corporate and other (7,937) (9,603) (9,603)
----------- ----------- -----------
SUB-TOTAL 268,922 232,238 222,777
Euro's exchange rate fluctuation (c) (936) (1,034) (1,034)
Nonrecurring charges (d) - 6,308 6,308
EBITDA - EMERGING BUSINESSES
Citysearch, Match.com and related (11,830) (17,719) (17,719)
Styleclick (10,436) (10,708) (6,367)
Electronic Commerce Solutions (6,482) (5,563) (5,563)
HSN - international and other (6,414) (1,493) (1,493)
USA Films (1,035) 2,182 2,182
Trio, NWI, SCIFI.com, USA Network.com (1,699) (2,266) (2,266)
----------- ----------- -----------
SUB-TOTAL (37,896) (35,567) (31,226)
----------- ----------- -----------
TOTAL $ 230,090 $ 201,945 $ 196,825
=========== =========== ===========
(a) Presented as if the acquisitions of Precision Response and Styleclick
had occurred at the beginning of the period presented.
(b) EBITDA is defined as net income plus, (1) provision for income taxes, (2)
minority interest, (3) interest income and expense, (4) depreciation and
amortization, (5) amortization of cable distribution fees of $8,756 and
$8,223, respectively, and (6) amortization of non-cash distribution and
marketing expense and non-cash compensation expense.
(c) In order to present comparable results for Germany, the results have been
translated from Euros to U.S. dollars at a constant exchange rate.
(d) Represents one-time credits recognized in Q1 '00 by HSN in connection with
a favorable settlement of litigation relating to an HSN broadcasting
affiliation agreement ($4,661) and a cable affiliation agreement ($1,647).
USA NETWORKS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
Unaudited
($ IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED MARCH 31,
PRO FORMA (a) ACTUAL PRO FORMA(a)(b) ACTUAL
------------- ---------- --------------- -----------
2001 2001 2000 2000
------------- ---------- -------------- ------------
Revenues, net $ 1,315,677 $ 1,315,677 $ 1,112,422 $ 1,041,521
Operating costs and expenses:
Costs related to revenues 800,173 800,173 665,603 611,402
Other costs and expenses 285,414 285,414 244,874 233,294
Amortization of non cash distribution and marketing expense (c) 8,017 8,017 1,593 1,593
Amortization of non cash compensation expense (d) 2,512 2,512 990 990
Amortization of cable distribution fees 8,756 8,756 8,223 8,223
Depreciation and amortization 137,599 137,599 135,198 104,000
----------- ----------- ----------- -----------
Total operating costs and expenses 1,242,471 1,242,471 1,056,481 959,502
----------- ----------- ----------- -----------
Operating income 73,206 73,206 55,941 82,019
Interest expense, net (11,416) (11,416) (8,602) (8,029)
Other, net (6,522) (6,522) (637) (631)
----------- ----------- ----------- -----------
Earnings before income taxes and minority interest 55,268 55,268 46,702 73,359
Income tax expense (25,457) (26,462) (30,273) (35,073)
Minority interest (49,337) (46,189) (40,361) (45,385)
=========== =========== ========== ===========
Loss from continuing operations, before cumulative effect
of accounting change (19,526) (17,383) (23,932) (7,099)
Cumulative effect of accounting change, net of tax (e) (9,187) (9,187) - -
=========== =========== ========== ===========
Net loss from continuing operations (f) $ (28,713) $ (26,570) $ (23,932) $ (7,099)
=========== =========== ========== ===========
Net loss from continuing operations, excluding one-time charges and
non-operating gains, before cum. effect of accounting change $ (19,526) $ (17,383) $ (24,791) $ (7,958)
=========== =========== ========== ===========
Fully converted net earnings from continuing operations,
excluding one-time charges and non-operating gains,
before cum. effect of accounting change $ 11,563 $ 13,706 $ (7,724) $ 17,888
=========== =========== ========== ===========
Weighted average diluted shares 370,176 370,176 361,856 337,511
=========== =========== ========== ===========
Weighted average fully converted shares 758,046 758,046 752,474 728,129
=========== =========== ========== ===========
EPS FROM CONTINUING OPERATIONS, BEFORE CUM. EFFECT OF
ACCOUNTING CHANGE:
Basic loss per share $ (.05) $ (.05) $ (.07) $ (.02)
=========== =========== ========== ===========
Basic loss per share, excluding one-time charges
and non-operating gains $ (.05) $ (.05) $ (.07) $ (.02)
=========== =========== ========== ===========
Fully converted earnings per share, excluding
one-time charges $ .02 $ .02 $ (.01) $ .02
=========== =========== ========== ===========
EBITDA (g) $ 230,090 $ 230,090 $ 201,945 $ 196,825
=========== =========== ========== ===========
(a) Presented as if the merger of Ticketmaster and TMCS had occurred at the
beginning of the period presented. The merger has no impact on revenues or
EBITDA. Pro forma results reflect the impact of the merger on minority
interest and income taxes.
(b) Presented as if the acquisitions of Precision Response and Styleclick
had occurred at the beginning of the period presented.
(c) Amortization of warrants and stock issued in exchange for distribution and
marketing services.
(d) Expense relates to the Company's bonus stock purchase program and
restricted stock awards.
(e) Represents the cumulative effect of adoption of SOP 00-2, "Accounting by
Producers and Distributors of Films".
(f) Q1 '00 excludes the results of USA Broadcasting, the sale of which to
Univision was announced in December 2000. The results for the discontinued
operations was an after tax loss of $11,773.
(g) EBITDA is defined as net income plus, (1) provision for income taxes, (2)
minority interest, (3) interest income and expense, (4) depreciation and
amortization, (5) amortization of cable distribution fees of $8,756 and
$8,223, respectively, and (6) amortization of non-cash distribution and
marketing expense and non-cash compensation expense.
USA NETWORKS, INC. AND SUBSIDIARIES
EPS AND CASH NET INCOME RECONCILIATION INFORMATION - CONTINUING OPERATIONS,
BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE
UNAUDITED
( $ IN THOUSANDS, EXCEPT PER SHARE DATA )
THREE MONTHS ENDED MARCH 31,
PRO FORMA (a) ACTUAL PRO FORMA (a) (b) ACTUAL
-------------- -------------- ------------------ ---------
2001 2001 2000 2000
-------------- -------------- ------------------ ---------
BASIC LOSS PER SHARE:
Net loss $ (19,526) $ (17,383) $ (23,932) $ (7,099)
Impact of unusual items, net of tax and minority interest (c) -- -- (859) (859)
--------- --------- --------- ---------
BASIC LOSS, EXCLUDING UNUSUAL ITEMS (c) $ (19,526) $ (17,383) $ (24,791) $ (7,958)
========= ========= ========= =========
Weighted average basic shares 370,176 370,176 361,856 337,511
========= ========= ========= =========
Basic loss per share: $ (.05) $ (.05) $ (.07) $ (.02)
========= ========= ========= =========
Basic loss per share excluding unusual items (c) $ (.05) $ (.05) $ (.07) $ (.02)
========= ========= ========= =========
===================================================================================================================================
CASH NET INCOME:
Net loss $ (19,526) $ (17,383) $ (23,932) $ (7,099)
Impact of goodwill amortization, net of tax and minority interest 76,909 76,909 64,721 60,635
--------- --------- --------- ---------
CASH NET INCOME 57,383 59,526 40,789 53,536
Impact of unusual items, net of tax and minority interest (c) -- -- (859) (859)
--------- --------- --------- ---------
CASH NET INCOME, EXCLUDING UNUSUAL ITEMS (c) $ 57,383 $ 59,526 $ 39,930 $ 52,677
========= ========= ========= =========
Weighted average basic shares 370,176 370,176 361,856 337,511
========= ========= ========= =========
Cash net income per share $ .16 $ .16 $ .11 $ .16
========= ========= ========= =========
Cash net income per share, excluding unusual items (c) $ .16 $ .16 $ .11 $ .16
========= ========= ========= =========
===================================================================================================================================
FULLY CONVERTED NET EARNINGS:
Net loss $ (19,526) $ (17,383) $ (23,932) $ (7,099)
Impact of minority interest, net of tax 31,089 31,089 20,045 28,824
--------- --------- --------- ---------
FULLY CONVERTED NET EARNINGS 11,563 13,706 (3,887) 21,725
Impact of unusual items, net of tax and minority interest (c) -- -- (3,837) (3,837)
--------- --------- --------- ---------
FULLY CONVERTED NET EARNINGS, EXCLUDING UNUSUAL ITEMS (c) $ 11,563 $ 13,706 $ (7,724) $ 17,888
========= ========= ========= =========
Weighted average fully converted shares 758,046 758,046 752,474 728,129
========= ========= ========= =========
Fully converted earnings per share $ .02 $ .02 $ (.01) $ .03
========= ========= ========= =========
Fully converted earnings per share, excluding unusual items (c) $ .02 $ .02 $ (.01) $ .02
========= ========= ========= =========
===================================================================================================================================
FULLY CONVERTED CASH NET INCOME:
Net loss $ (19,526) $ (17,383) $ (23,932) $ (7,099)
Impact of minority interest, net of tax 31,089 31,089 20,045 28,824
Impact of goodwill amortization, net of tax and minority interest 76,909 76,909 79,209 60,635
--------- --------- --------- ---------
FULLY CONVERTED CASH NET INCOME 88,472 90,615 75,322 82,360
Impact of unusual items, net of tax and minority interest (c) -- -- (3,837) (3,837)
--------- --------- --------- ---------
FULLY CONVERTED CASH NET INCOME, EXCLUDING UNUSUAL ITEMS (c) $ 88,472 $ 90,615 $ 71,485 $ 78,523
========= ========= ========= =========
Weighted average fully converted shares 758,046 758,046 752,474 728,129
========= ========= ========= =========
Fully converted cash net income per share $ .12 $ .12 $ .10 $ .11
========= ========= ========= =========
Fully converted cash net income per share, excluding unusual items (c) $ .12 $ .12 $ .09 $ .11
========= ========= ========= =========
(a) Presented as if the merger of Ticketmaster and TMCS had occurred at the
beginning of the period presented. The merger has no impact on revenues or
EBITDA. Pro forma results reflect the impact of the merger on minority
interest and income taxes.
(b) Presented as if the acquisitions of Precision Response and Styleclick
had occurred at the beginning of the period presented.
(c) Excludes one time charges and non-operating gains.
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
--------- --------- --------- --------- --------- ---------
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, SCIFI.com, USA Network.com 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 1,134.8 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
Corporate and other 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 3/31
--------- --------- --------- --------- ---------
OPERATING BUSINESSES
Cable and studios 437.7 437.7
Electronic retailing - U.S. 385.4 385.4
Electronic retailing - Germany 78.9 78.9
Ticketing 150.1 150.1
Hotel reservations 105.3 105.3
Teleservices 80.7 80.7
Other 0.0 0.0
--------- --------- --------- --------- ---------
SUB-TOTAL 1,238.0 1,238.0
German DM exchange rate fluctuation (13.7) (13.7)
Emerging Businesses
Citysearch, Match.com and related 20.9 20.9
Styleclick 4.0 4.0
Electronic Commerce Solutions 4.7 4.7
HSN - international and other 4.5 4.5
USA Films 51.0 51.0
Trio, NWI, SCIFI.com, USA Network.com 6.2 6.2
--------- --------- --------- --------- ---------
SUB-TOTAL 91.4 91.4
--------- --------- --------- --------- ---------
Total 1,315.7 1,315.7
========= ========= ========= ========= =========
USA Network 216.8 216.8
SCI FI 69.3 69.3
Studios, net 151.5 151.5
--------- --------- --------- --------- ---------
Cable and studios 437.7 437.7
--------- --------- --------- --------- ---------
===============================================================================================================
Operating Businesses
Entertainment 437.7 437.7
Electronic retailing 464.2 464.2
Information and services 336.1 336.1
Corporate and other 0.0 0.0
--------- --------- --------- --------- ---------
SUB-TOTAL 1,238.0 1,238.0
--------- --------- --------- --------- ---------
THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS
UNAUDITED.
As filed with the Securities and Exchange Commission on April 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: 02/03/00 04/27/00 07/26/00 10/26/00 02/01/01 02/01/01
Revenues, net 3,815.6 1,112.4 1,098.1 1,115.2 1,315.9 4,673.0
Operating costs and expenses:
Costs related to revenues 2,301.7 665.6 638.8 673.6 801.3 2,812.4
Other costs and expenses 855.1 244.9 280.1 281.8 278.6 1,064.4
Amort. of non-cash distribution
and marketing expense 0.0 1.6 1.6 2.7 7.1 11.5
Depreciation 119.2 36.5 42.9 46.3 54.0 166.1
Amortization of goodwill 374.0 108.0 96.7 108.9 135.1 467.3
--------- --------- --------- -------- --------- ---------
Total operating costs 3,650.1 1,056.5 1,060.0 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) (8.8) (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) (10.7) 60.3 (28.3) 14.3
Earnings before income taxes and
minority interest 200.1 46.7 27.3 62.2 11.5 165.7
Income tax expense (83.9) (30.3) (19.0) (23.0) (26.3) (113.0)
Minority interest (136.7) (40.4) (36.9) (58.6) (14.4) (128.5)
--------- --------- --------- -------- --------- ---------
Loss before cumulative effect of accounting change (20.5) (23.9) (28.6) (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) (28.6) (19.5) (29.2) (75.9)
--------- --------- --------- -------- --------- ---------
Weighted average diluted shares 352.6 361.9 362.0 367.8 368.3 366.0
--------- --------- --------- -------- --------- ---------
Weighted average fully converted shares 745.8 752.5 748.5 754.8 752.6 747.4
--------- --------- --------- -------- --------- ---------
Basic earnings per share $ (.06) $ (.07) $ (.08) (.05) $ (.08) $ (.21)
--------- --------- --------- -------- --------- ---------
Diluted earnings per share $ (.06) $ (.07) $ (.08) (.05) $ (.08) $ (.21)
--------- --------- --------- -------- --------- ---------
Fully converted earnings per share $ .12 $ (.01) $ .01 .04 $ (.00) $ .05
--------- --------- --------- -------- --------- ---------
EBITDA 658.7 201.8 179.2 159.8 236.0 796.3
--------- --------- --------- -------- --------- ---------
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 $ .11 $ .07 $ .21
--------- --------- --------- -------- --------- ---------
Fully converted earnings per share $ .05 $ (.01) $ .01 (.02) $ .03 $ .03
--------- --------- --------- -------- --------- ---------
Fully converted cash net income earnings per share $ .09 $ .10 $ .10 $ .15
--------- --------- --------- -------- --------- ---------
-----------------------------------------------------------------------------
P&L 2001
-----------------------------------------------------------------------------
Q1 Q2 Q3 Q4 YE 12/31
--------- --------- --------- --------- ---------
Date Reported: 04/25/01
Revenues, net 1,315.7
Operating costs and expenses:
Costs related to revenues 800.2
Other costs and expenses 285.4
Amort. of non-cash distribution
and marketing expense 8.0
Depreciation 48.7
Amortization of goodwill 100.2
--------- --------- --------- --------- ---------
Total operating costs 1,242.5
--------- --------- --------- --------- ---------
Operating income 73.2
Interest expense, net (11.4)
Gain on disposition of television station 0.0
Gain on sale of securities 0.0
Other, net (6.5)
--------- --------- --------- --------- ---------
(17.9)
Earnings before income taxes and
minority interest 55.3
Income tax expense (25.5)
Minority interest (49.3)
--------- --------- --------- --------- ---------
Loss before cumulative effect of accounting change (19.5)
Cumulative effect of accounting change, net of tax (9.2)
--------- --------- --------- --------- ---------
Net loss from continuing operations (28.7)
--------- --------- --------- --------- ---------
Weighted average diluted shares 370.2
--------- --------- --------- --------- ---------
Weighted average fully converted shares 758.0
--------- --------- --------- --------- ---------
Basic earnings per share $ (.05)
--------- --------- --------- --------- ---------
Diluted earnings per share $ (.05)
--------- --------- --------- --------- ---------
Fully converted earnings per share $ .02
--------- --------- --------- --------- ---------
EBITDA 229.3
--------- --------- --------- --------- ---------
Excluding one-time charges and non-operating gains:
Basic and diluted earnings per share $ (.05)
--------- --------- --------- --------- ---------
Cash net income earnings per share $ .16
--------- --------- --------- --------- ---------
Fully converted earnings per share $ .02
--------- --------- --------- --------- ---------
Fully converted cash net income earnings per share $ .12
--------- --------- --------- --------- ---------
* 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 April 25, 2001.
USA NETWORKS, INC.
OPERATING METRICS
IN MILLIONS EXCEPT PERCENTAGES AND RATINGS.
----------- ---------------------------------------------- ---------
2000 2001
----------- ---------------------------------------------- ---------
YE Q1 Q2 Q3 Q4 YE Q1
----------- ---------------------------------------------- ---------
USA NETWORK
Advertising and other revenue 56% 57% 58% 57% 55% 58% 58%
Affiliate revenue 44% 43% 42% 43% 45% 42% 42%
Average primetime rating 2.4 2.4 2.2 2.0 1.7 2.1 1.9
Households (end of period) 77.2 77.4 78.2 79.4 79.9 79.9 81.3
----------- ---------------------------------------------- ---------
2000 2001
----------- ---------------------------------------------- ---------
YE Q1 Q2 Q3 Q4 YE Q1
----------- ---------------------------------------------- ---------
SCI FI CHANNEL
Advertising and other revenue 59% 64% 66% 62% 67% 65% 63%
Affiliate revenue 41% 36% 34% 38% 33% 35% 37%
Average primetime rating 0.8 0.9 0.8 0.9 0.9 0.9 0.8
Households (end of period) 59.7 60.5 62.7 65.1 66.7 66.7 69.4
---------------------------------------------- ---------
2000 2001
---------------------------------------------- ---------
Q1 Q2 Q3 Q4 YE Q1
---------------------------------------------- ---------
TRIO Households (end of period) 6.9 7.3 7.3 8.8
NWI Households (end of period) 6.5 6.7 6.7 8.0
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 April 25, 2001.
USA NETWORKS, INC.
OPERATING METRICS
IN MILLIONS EXCEPT PERCENTAGES.
---------- ----------------------------------------------- ----------
2000 2001
---------- ----------------------------------------------- ----------
YE Q1 Q2 Q3 Q4 YE Q1
---------- ----------------------------------------------- ----------
HSN - Domestic
U.S. units shipped 32.0 8.3 7.9 8.4 9.6 34.2 8.4
On-air gross profit% 34.3% 33.6% 34.7% 34.7% 32.7% 33.8% 32.3%
On air product mix:
Homegoods 49% 50% 46% 49% 55% 51% 49%
Jewelry 27% 25% 28% 27% 25% 26% 26%
Heath/Beauty 11% 11% 13% 9% 8% 10% 10%
Apparel/Accessories 13% 14% 13% 15% 12% 13% 15%
On air return rate 20.3% 20.9% 19.6% 20.2% 19.2% 19.9% 20.0%
HSN cable/DBS HH (end of period) 60.6 62.0 63.2 64.6 65.6 65.6 68.1
HSN total HH (end of period) 73.7 75.2 76.4 75.9 76.8 76.8 79.9
America's Store FTE's (end of period) 8.3 8.8 8.8 9.0 8.6 8.6 8.3
THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED.
As filed with the Securities and Exchange Commission on April 25, 2001.
USA NETWORKS, INC.
OPERATING METRICS
IN MILLIONS EXCEPT REVENUE PER TICKET AND PERCENTAGES.
---------- --------------------------------------------------------------- -----------
2000 2001
---------- --------------------------------------------------------------- -----------
YE Q1 Q2 Q3 Q4 YE Q1
---------- --------------------------------------------------------------- -----------
TICKETMASTER
Number of tickets sold(mm) 75.0 21.8 22.3 20.2 18.7 83.0 23.6
Gross value of tickets sold(mm) $ 2,781 $ 812 $ 881 $ 782 $ 781 $ 3,256 $ 937
Share of tickets sold online 13.4% 19.6% 25.5% 25.6% 27.9% 24.5% 29.5%
Revenue per ticket $ 5.25 $ 5.44 $ 5.89 $ 5.67 $ 5.87 $ 5.71 $ 5.96
THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED.
As filed with the Securities and Exchange Commission on April 25, 2001.
USA NETWORKS, INC.
OPERATING METRICS
---------- --------------------------------------------------------------- -----------
1999 2000 2001
---------- --------------------------------------------------------------- -----------
YE Q1 Q2 Q3 Q4 YE Q1
---------- --------------------------------------------------------------- -----------
HOTEL RESERVATIONS NETWORK
Hotel room nights sold (thousands) 1,229 429 587 717 700 2,433 799
Affiliates (including TravelNow) 6,000 18,649
Properties 1,500 1,750 1,950 2,150 2,700 2,700 3,084
Cities served 40 49 60 83 97 97 135
THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED.
As filed with the Securities and Exchange Commission on April 25, 2001.
USA NETWORKS, INC.
OPERATING METRICS
IN MILLIONS
CAPITALIZATION
(as of 4/20/01)
Ticker (NASDAQ) USAI
USAi Common Stock 309.5
USAi Class B 63.0
USAi Exchangeable Common Stock 213.0
USAi Exchangeable Class B 148.1
---------------
Total Shares Outstanding 733.6
Estimated dilutive options (treasury method) 41.0
---------------
Fully diluted shares 774.6
===============
Outstanding equity cap $17.1 billion
Fully diluted equity cap $18.1 billion
================================================================================
BUSINESS MIX
Revenue sources (Q1 '01):
Merchandise 35%
Ticketing 11%
Teleservices / ECS 7%
Hotel rooms 8%
---------------
Commerce 61%
===============
Advertising 15%
Affiliate fees and subscriptions 9%
Production and distribution 15%
---------------
Media 39%
===============
Online (% of total) 16%
International (% of total) 10%
THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED.
As filed with the Securities and Exchange Commission on April 25, 2001.