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): October 27, 2000 USA NETWORKS, INC. (Exact Name of Registration business as Specified in Its Charter) Delaware 0-20570 59-2712887 (State or other Jurisdiction (Commission File (I.R.S. Employer of incorporation) Number) Identification Number) 152 West 57th Street, New York, New York 10019 (Address, including zip code, of Principal Executive Offices) (212) 314-7300 (Registrant's telephone number including area code)
Item 7(c). Exhibits. 99.1 Company Overiew 99.2 Supplemental Information Item 9. Regulation FD Disclosure The full text of the Company Overview, 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 and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunder duly authorized. Date: October 27, 2000 USA NETWORKS, INC. By: /s/ Julius Genachowski ------------------------------------------ Name: Julius Genachowski Title: Senior Vice President and General Counsel
EXHIBIT INDEX 99.1 Company Overview. 99.2 Supplemental Information.
Exhibit 99.1 USA NETWORKS, INC. USA NETWORKS, INC. IS FOCUSED ON THE NEW CONVERGENCE OF ENTERTAINMENT, INFORMATION, AND DIRECT SELLING. USA ENTERTAINMENT USA CABLE USA FILMS USA Network October Films SCI FI Channel Gramercy Pictures TRIO USA Home Entertainment Newsworld International (NWI) USA BROADCASTING STUDIOS USA WAMI-TV (Miami) KSTR-TV (Dallas) USA INTERACTIVE ENTERTAINMENT WHOT-TV (Atlanta) SCIFI.com WHUB-TV (Boston) USANetwork.com StudiosUSA.com ================================================================================ USA ELECTRONIC RETAILING HSN HSN INTERNATIONAL HSN HSN en Espanol (U.S.) America's Store HOT Germany (42%) HSN Interactive HOT LeGrand Magasin -- HSN.com Belgium (47%)* Direct Response Shop Channel -- Japan (30%)* TVSN -- China (21%)* *unconsolidated ================================================================================ USA INFORMATION & SERVICES TICKETMASTER STYLECLICK INC. (NASDAQ: IBUY) Styleclick.com TICKETMASTER ONLINE-CITYSEARCH (NASDAQ: TMCS) Internet Shopping Network Ticketmaster Online First Auction Citysearch First Jewelry Match.Com ELECTRONIC COMMERCE SOLUTIONS HOTEL RESERVATIONS NETWORK (NASDAQ: ROOM) USA Fulfillment USA eSolutions PRECISION RESPONSE CORPORATION USA Database Marketing Precision Response prcnetcare.com
USA NETWORKS, INC. USA NETWORKS, INC. IS FOCUSED ON THE NEW CONVERGENCE OF ENTERTAINMENT, INFORMATION, AND DIRECT SELLING. OPERATING ESTIMATES FOR THE NEXT TWELVE MONTHS (ROUNDED) TV HOUSEHOLDS (9/30/00; ESTIMATED IN MILLIONS) Full-time employees 18,000 U.S. TV household reach (unduplicated) 91% Worldwide TV households (unduplicated) 135.0 U.S. cities 80 Worldwide cities 100 USA Network 79.4 Worldwide offices 165 SCI FI Channel 65.1 TRIO 6.9 Primary consumer web sites 15 Newsworld International 6.5 Average number of new customers added daily 30,000 Active / registered customers 17 million HSN: Cable / DBS 64.6 Customer database 30 million HSN: Broadcast / C-Band 11.3 ---- 75.9 Customer Inbound telephone minutes 1 billion Customer Inbound telephone calls 315 million America's Store 9.0 Orders processed 75 million Credit card transactions 60 million HOT Germany (w/Austria, Switzerland) (42%) 28.8 Items shipped 40 million HSN en Espanol -- U.S. 5.1 In-house merchants 200 Merchandise SKUs processed 60,000 TVSN -- China (21%)* 22.4 Telephone operator positions 10,000 Ticketing outlets 3,430 Shop Channel -- Japan (30%)* 8.6 Call centers 34 Fulfillment center square feet 2.5 million HOT LeGrand Magasin -- Belgium (47%)* 1.4 USAB: Owned & operated (13 stations) 31.6 USAB: Minority interest (4 stations) 6.9 ---- 38.5 *unconsolidated FINANCIAL ESTIMATES (PRO FORMA) CAPITALIZATION (10/20/00; ESTIMATED IN MILLIONS) 1999 revenue, combined businesses $3.8 billion Ticker (NASDAQ) USAI 1999 EBITDA, operating businesses $777 million USAi Common Stock 305.1 Revenue sources (Q3 '00): USAi Class B 63.0 Merchandise 37% USAi Exchangeable 361.2 ----- Ticketing 11% Total Shares Outstanding 729.3 Teleservices / ECS 8% Hotel rooms 9% Estimated dilutive options (treasury method) 34.0 -- ---- Commerce 65% Fully diluted shares 763.3 === ===== Advertising 17% Outstanding equity cap $13.1 billion Affiliate fees and subscriptions 12% Fully diluted equity cap $13.7 billion Production and distribution 6% -- Media 35% Total assets (9/30/00) $10.5 billion === Online (% of total) 15% International (% of total) 6% ESTIMATED AND UNAUDITED. ADDITIONAL INFORMATION CAN BE FOUND IN USAI'S PUBLIC FILINGS, INCLUDING ITS ANNUAL REPORT ON FORM 10-K.
USA NETWORKS, INC. USA NETWORKS, INC. IS FOCUSED ON THE NEW CONVERGENCE OF ENTERTAINMENT, INFORMATION, AND DIRECT SELLING. CORPORATE HISTORY / MAJOR TRANSACTIONS JULY 1986 Silver King Broadcasting formed by Home Shopping Network DECEMBER 1992 SILVER KING COMMUNICATIONS, INC. spun-off to HSN shareholders AUGUST 1995 Barry Diller named Chairman and CEO of Silver King DECEMBER 1996 Silver King, HOME SHOPPING NETWORK (including INTERNET SHOPPING NETWORK (ISN)), and Savoy Pictures Entertainment merge; Silver King Communications, Inc. is renamed HSN, INC. (announced 11/95) JULY 1997 HSN, inc. acquires 50% of TICKETMASTER Group, Inc. from Paul Allen (announced 5/97) FEBRUARY 1998 HSN, inc. acquires USA NETWORK, SCI FI, and Universal domestic TV (renamed STUDIOS USA) from Seagram; HSN, inc. renamed USA NETWORKS, INC., (announced 10/97) MARCH 1998 USAi two-for-one stock split on March 26 JUNE 1998 USAi acquires remaining interest in Ticketmaster from public SEPTEMBER 1998 Ticketmaster Online merges with CITYSEARCH (announced 8/98) DECEMBER 1998 Ticketmaster Online-CitySearch, Inc. (TMCS) completes IPO (merged 9/98) MAY 1999 USAi acquires HOTEL RESERVATIONS NETWORK (announced 4/99) SEPTEMBER 1999 TMCS acquires the Sidewalk city guides from Microsoft (announced 7/99) SEPTEMBER 1999 USAi forms USA ELECTRONIC COMMERCE SOLUTIONS (ECS) FEBRUARY 2000 USAi two-for-one stock split on February 24 APRIL 2000 USAi acquires PRECISION RESPONSE CORPORATION (announced 1/00) MAY 2000 USA Cable acquires North American Television (TRIO and NWI) JUNE 2000 USAi organizes into three business units: USA ENTERTAINMENT, USA ELECTRONIC RETAILING, and USA INFORMATION & SERVICES JULY 2000 Styleclick (IBUY) merges with ISN to form STYLECLICK, INC. (announced 1/00)
IMPORTANT DISCLOSURES This company overview 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 "expects", "anticipates", "estimates", 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.
Exhibit 99.2 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"). For additional information on each of these transactions, see the Company's filings on Form 10-K for the year ended December 31, 1999 and on Form 10-Q for the three months ended June 30, 2000. 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.
USA NETWORKS, INC. PRO FORMA SEGMENT RESULTS $ IN MILLIONS; ROUNDING DIFFERENCES MAY EXIST. ------------- -------------------------------------------------------------------- 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 - domestic 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 15.8 4.1 2.8 0.0 0.0 6.9 ------------- ------------- ------------- ------------- -------------------------- Sub-total 3,065.5 851.0 880.0 868.7 1,032.0 3,631.7 Emerging Businesses Online city guides and related 16.8 5.8 6.9 9.7 14.0 36.3 Internet commerce 21.1 11.2 8.0 7.4 8.5 35.1 Electronic commerce services 0.7 3.2 5.1 6.2 5.8 20.2 Broadcasting 1.6 0.9 2.4 2.3 2.9 8.6 Electronic retailing - other int'l 2.8 1.5 2.3 2.5 2.7 8.9 Filmed entertainment 44.8 6.7 22.4 27.9 25.1 82.1 Emerging networks 0.0 0.2 0.2 0.3 0.5 1.2 ------------- ------------- ------------- ------------- -------------------------- Sub-total 87.8 29.6 47.3 56.3 59.4 192.5 ------------- ------------- ------------- ------------- -------------------------- Total 3,153.3 880.6 927.2 924.9 1,091.4 3,824.2 ============= ============= ============= ============= ========================== 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 15.8 4.1 2.8 0.0 0.0 6.9 ------------- ------------- ------------- ------------- -------------------------- Sub-total 3,065.5 851.0 880.0 868.7 1,032.0 3,631.7 ------------- ------------- ------------- ------------- -------------------------- Emerging Businesses Entertainment 46.4 7.8 25.0 30.5 28.5 91.8 Electronic retailing 2.8 1.5 2.3 2.5 2.7 8.9 Information and services 38.6 20.3 19.9 23.3 28.2 91.7 ------------- ------------- ------------- ------------- -------------------------- Sub-total 87.8 29.6 47.3 56.3 59.4 192.5 ------------- ------------- ------------- ------------- -------------------------- Total Entertainment 1,289.4 339.3 341.4 337.6 378.1 1,396.5 Electronic retailing 1,181.2 348.0 355.4 354.2 450.9 1,508.6 Information and services 666.9 189.2 227.5 233.1 262.4 912.2 Corporate and other 15.8 4.1 2.8 0.0 0.0 6.9 ------------- ------------- ------------- ------------- -------------------------- Total 3,153.3 880.6 927.2 924.9 1,091.4 3,824.2 ============= ============= ============= ============= ========================== * 1998 has not been adjusted to include shipping and handling revenue for HSN. THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. PRO FORMA SEGMENT RESULTS $ IN MILLIONS; ROUNDING DIFFERENCES MAY EXIST. ----------------------------------------------------------------- REVENUE 2000 ----------------------------------------------------------------- Q1 Q2 Q3 Q4 YTD 9/30 ------------ ------------ ------------- ------------ ------------ OPERATING BUSINESSES Cable and studios 379.0 390.7 336.0 1,105.7 Electronic retailing - domestic 358.5 344.0 368.8 1,071.2 Electronic retailing - Germany 57.9 50.5 53.8 162.2 Ticketing 128.0 143.0 124.9 395.9 Hotel reservations 55.3 78.1 94.6 228.0 Teleservices 69.6 70.2 70.2 210.0 Other 0.7 0.4 0.5 1.6 ------------ ------------ ------------- ------------ ------------ Sub-total 1,048.9 1,076.8 1,048.9 3,174.6 Emerging Businesses Online city guides and related 17.0 20.2 21.6 58.8 Internet commerce 7.9 6.3 5.3 19.4 Electronic commerce services 4.7 3.8 7.2 15.6 Broadcasting 3.6 4.7 5.3 13.6 Electronic retailing - other int'l 3.2 3.2 3.9 10.3 Filmed entertainment 30.3 20.8 14.5 65.5 Emerging networks 0.6 3.7 8.6 12.9 ------------ ------------ ------------- ------------ ------------ Sub-total 67.2 62.8 66.3 196.2 ------------ ------------ ------------- ------------ ------------ Total 1,116.1 1,139.6 1,115.2 3,370.8 ============ ============ ============= ============ ============ USA Network 196.9 208.9 200.5 606.4 SCI FI 62.4 71.3 64.6 198.3 Studios, net 119.6 110.5 71.0 301.1 ------------ ------------ ------------- ------------ ------------ Cable and studios 379.0 390.7 336.0 1,105.7 ------------ ------------ ------------- ------------ ------------ Operating Businesses Entertainment 379.0 390.7 336.0 1,105.7 Electronic retailing 416.4 394.4 422.6 1,233.4 Information and services 252.9 291.3 289.7 833.9 Corporate and other 0.7 0.4 0.5 1.6 ------------ ------------ ------------- ------------ ------------ Sub-total 1,048.9 1,076.8 1,048.9 3,174.6 ------------ ------------ ------------- ------------ ------------ Emerging Businesses Entertainment 34.5 29.2 28.3 92.0 Electronic retailing 3.2 3.2 3.9 10.3 Information and services 29.5 30.3 34.0 93.9 ------------ ------------ ------------- ------------ ------------ Sub-total 67.2 62.8 66.3 196.2 ------------ ------------ ------------- ------------ ------------ Total Entertainment 413.5 419.9 364.4 1,197.7 Electronic retailing 419.6 397.7 426.5 1,243.8 Information and services 282.4 321.6 323.7 927.8 Corporate and other 0.7 0.4 0.5 1.6 ------------ ------------ ------------- ------------ ------------ Total 1,116.1 1,139.6 1,115.2 3,370.8 ============ ============ ============= ============ ============ THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED.
USA NETWORKS, INC. PRO FORMA SEGMENT RESULTS $ IN MILLIONS; ROUNDING DIFFERENCES MAY EXIST. ------------- -------------------------------------------------------------------- EBITDA 1998 1999 ------------- -------------------------------------------------------------------- YE 12/31 Q1 Q2 Q3 Q4 YE 12/31 ------------- ------------- ------------- ------------- -------------------------- OPERATING BUSINESSES Cable and studios 330.3 109.5 105.7 92.8 125.9 433.9 Electronic retailing - domestic 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 8.9 19.5 27.2 21.3 25.4 93.3 Hotel reservations 10.9 3.4 5.8 6.6 8.7 24.5 Teleservices 19.6 5.8 6.5 8.3 9.8 30.4 Corporate and other (21.6) (7.2) (12.0) (6.3) (10.7) (36.2) ------------- ------------- ------------- ------------- -------------------------- Sub-total 517.6 176.7 183.2 176.5 240.4 776.9 ------------- ------------- ------------- ------------- -------------------------- Executive consulting arrangement Emerging Businesses Online city guides and related (29.0) (8.9) (13.9) (17.7) (20.4) (60.8) Internet commerce (15.8) (6.9) (15.4) (12.8) (18.4) (53.6) Electronic commerce services (1.0) (0.2) 0.4 0.5 (3.2) (2.4) Broadcasting (23.0) (9.2) (11.7) (9.5) (17.9) (48.3) Electronic retailing - other int'l (12.5) (0.7) (1.6) (1.7) (0.5) (4.5) Filmed entertainment 2.6 (1.0) 1.2 1.7 2.8 4.7 Emerging networks 0.0 (0.6) (0.5) (0.8) (1.1) (3.0) ------------- ------------- ------------- ------------- -------------------------- Sub-total (78.7) (27.4) (41.6) (40.2) (58.7) (167.9) ------------- ------------- ------------- ------------- -------------------------- Total 438.9 149.4 141.7 136.3 181.7 608.9 ============= ============= ============= ============= ========================== 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 23.1 10.9 9.9 9.0 52.9 ------------- ------------- ------------- ------------- -------------------------- Cable and studios 330.3 109.5 105.7 92.8 125.9 433.9 ------------- ------------- ------------- ------------- -------------------------- Operating Businesses Entertainment 330.3 109.5 105.7 92.8 125.9 433.9 Electronic retailing 169.5 45.7 50.1 53.9 81.3 230.9 Information and services 39.4 28.8 39.4 36.1 43.9 148.3 Corporate and other (21.6) (7.2) (12.0) (6.3) (10.7) (36.2) ------------- ------------- ------------- ------------- -------------------------- Total 517.6 176.7 183.2 176.5 240.4 776.9 ------------- ------------- ------------- ------------- -------------------------- Emerging Businesses Entertainment (20.4) (10.8) (11.1) (8.5) (16.2) (46.6) Electronic retailing (12.5) (0.7) (1.6) (1.7) (0.5) (4.5) Information and services (45.8) (15.9) (28.9) (30.0) (42.0) (116.8) ------------- ------------- ------------- ------------- ------------------------- Sub-total (78.7) (27.4) (41.6) (40.2) (58.7) (167. ------------- ------------- ------------- ------------- -------------------------- Total Entertainment 309.9 98.7 94.6 84.3 109.7 387.3 Electronic retailing 157.0 45.1 48.5 52.1 80.7 226.4 Information and services (6.4) 12.8 10.6 6.1 1.9 31.5 Corporate and other (21.6) (7.2) (12.0) (6.3) (10.7) (36.2) ------------- ------------- ------------- ------------- -------------------------- Total 438.9 149.4 141.7 136.3 181.7 608.9 ============= ============= ============= ============= ========================== THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. ----------------------------------------------------------------- EBITDA 2000 ----------------------------------------------------------------- Q1 Q2 Q3 Q4 YTD 9/30 ------------ ------------ ------------- ------------ ------------ OPERATING BUSINESSES Cable and studios 138.8 139.4 118.5 396.6 Electronic retailing - domestic 55.7 52.5 53.8 162.0 Electronic retailing - Germany 7.6 4.2 4.9 16.7 Ticketing 27.4 31.6 20.1 79.0 Hotel reservations 8.2 12.9 13.9 35.0 Teleservices 9.5 11.9 11.1 32.5 Corporate and other (11.0) (7.7) (7.5) (26.2) ------------ ------------ ------------- ------------ ------------ Sub-total 236.1 244.7 214.8 695.6 ------------ ------------ ------------- ------------ ------------ Executive consulting arrangement (11.6) (11.6) Emerging Businesses Online city guides and related (17.9) (15.6) (14.3) (47.8) Internet commerce (10.7) (15.2) (8.7) (34.6) Electronic commerce services (5.6) (6.3) (8.0) (19.8) Broadcasting (11.8) (15.9) (13.6) (41.3) Electronic retailing - other int'l (1.1) (2.2) (4.2) (7.5) Filmed entertainment 2.2 (2.3) (5.8) (6.0) Emerging networks (2.3) (2.0) (0.3) (4.6) ------------ ------------ ------------- ------------ ------------ Sub-total (47.1) (59.4) (55.0) (161.5) ------------ ------------ ------------- ------------ ------------ Total 189.0 173.7 159.8 522.5 ============ ============ ============= ============ ============ USA Network 97.1 105.4 87.2 289.6 SCI FI 24.2 24.9 22.4 71.5 Studios, net 17.5 9.1 8.8 35.4 ------------ ------------ ------------- ------------ ------------ Cable and studios 138.8 139.4 118.5 396.6 ------------ ------------ ------------- ------------ ------------ Operating Businesses Entertainment 138.8 139.4 118.5 396.6 Electronic retailing 63.3 56.6 58.7 178.7 Information and services 45.0 56.4 45.1 146.5 Corporate and other (11.0) (19.3) (7.5) (37.8) ------------ ------------ ------------- ------------ ------------ Total 236.1 233.1 214.8 684.0 ------------ ------------ ------------- ------------ ------------ Emerging Businesses Entertainment (11.9) (20.3) (19.7) (51.8) Electronic retailing (1.1) (2.2) (4.2) (7.5) Information and services (34.1) (37.0) (31.0) (102.2) ------------ ------------ ------------- ------------ ------------ Sub-total (47.1) (59.4) (55.0) (161.5) ------------ ------------ ------------- ------------ ------------ Total Entertainment 126.9 119.1 98.7 344.7 Electronic retailing 62.2 54.5 54.5 171.2 Information and services 10.9 19.4 14.0 44.3 Corporate and other (11.0) (19.3) (7.5) (37.8) ------------ ------------ ------------- ------------ ------------ Total 189.0 173.7 159.8 522.5 ============ ============ ============= ============ ============ THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED.
USA NETWORKS, INC. PRO FORMA RESULTS OF OPERATIONS (AS REPORTED) $ IN MILLIONS; ROUNDING DIFFERENCES MAY EXIST. ------------- ---------------------------------------------------------------------- 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 02/03/00 02/03/00 Revenues, net 2,879.7 793.2 889.4 924.9 936.1 3,290.7 Operating costs and expenses: Costs related to revenues 1,694.7 404.8 468.7 494.7 544.3 1,908.7 Other costs and expenses 693.1 244.9 274.5 293.9 220.1 804.5 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 29.9 107.4 Amortization of goodwill 226.3 62.8 78.4 91.8 80.2 262.2 ------------- -------------- ------------- ------------- ------------- ----------- Total operating costs 2,709.0 738.0 850.3 912.1 874.5 3,082.8 ------------- -------------- ------------- ------------- ------------- ----------- Operating income 170.6 55.2 39.0 12.8 61.7 208.0 Interest expense, net (119.6) (13.0) (15.7) (12.4) (10.9) (51.6) 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) 3.8 5.8 ------------- -------------- ------------- ------------- ------------- ----------- 40.9 41.6 (21.4) 23.4 (7.1) 43.9 ------------- -------------- ------------- ------------- ------------- ----------- Earnings before income taxes and minority interest 211.5 96.8 17.6 36.2 54.6 251.9 Income tax expense (118.4) (21.4) (13.7) (21.8) (25.6) (88.3) Minority interest (70.3) (74.1) (27.9) (33.9) (46.7) (197.3) ============= ============== ============= ============= ============= =========== Net income (loss) 22.8 1.3 (24.0) (19.5) (17.8) (33.7) ============= ============== ============= ============= ============= =========== Weighted average diluted shares 318.4 361.2 388.9 357.8 336.4 328.3 ============= ============== ============= ============= ============= =========== Weighted average fully converted shares 595.2 707.6 735.2 757.3 739.4 721.5 ============= ============== ============= ============= ============= =========== Basic earnings per share $ .07 $ .00 $ (.07) $ (.05) $ (.05) $ (.10) ============= ============== ============= ============= ============= =========== Diluted earnings per share $ .07 $ .00 $ (.07) $ (.05) $ (.05) $ (.10) ============= ============== ============= ============= ============= =========== Fully converted earnings per share $ .13 $ .07 $ (.00) $ .02 $ .03 $ .16 ============= ============== ============= ============= ============= =========== EBITDA 491.9 143.6 146.2 136.3 171.8 577.5 ============= ============== ============= ============= ============= =========== Excluding one-time charges and non-operating gains: Basic and diluted earnings per share $ (.28) $ (.03) $ (.08) $ (.08) $ (.05) $ (.16) ============= ============== ============= ============= ============= =========== Fully converted earnings per share $ (.04) $ .03 $ (.01) $ (.01) $ .03 $ .09 ============= ============== ============= ============= ============= =========== *AS REPORTED. MAY NOT AGREE WITH PRO FORMA REVENUE AND EBITDA RESULTS ABOVE. THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED.
-------------------------------------------------------------------- P&L 2000 -------------------------------------------------------------------- Q1 * Q2 * Q3 Q4 YE 12/31 ------------- ------------- ------------- ------------- ------------ Date Reported: 04/27/00 07/26/00 10/26/00 Revenues, net 1,002.8 1,098.1 1,115.2 Operating costs and expenses: Costs related to revenues 574.7 638.8 673.6 Other costs and expenses 243.8 280.1 281.8 Amort. of non-cash distribution and marketing expense 0.8 1.6 2.7 Depreciation 34.5 42.9 46.3 Amortization of goodwill 81.8 96.7 108.9 ------------- ------------- ------------- ------------- ------------ Total operating costs 935.5 1,060.0 1,113.3 ------------- ------------- ------------- ------------- ------------ Operating income 67.3 38.0 1.9 Interest expense, net (8.6) (8.8) (9.6) 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 (0.6) (1.9) 69.9 ------------- ------------- ------------- ------------- ------------ (9.3) (10.7) 60.3 ------------- ------------- ------------- ------------- ------------ Earnings before income taxes and minority interest 58.1 27.3 62.2 Income tax expense (31.5) (19.0) (23.0) Minority interest (45.4) (36.9) (58.6) ============= ============= ============= ============= ============ Net income (loss) (18.9) (28.6) (19.5) ============= ============= ============= ============= ============ Weighted average diluted shares 337.5 362.0 367.8 ============= ============= ============= ============= ============ Weighted average fully converted shares 728.1 748.5 754.8 ============= ============= ============= ============= ============ Basic earnings per share $ (.06) $ (.08) $ (.05) ============= ============= ============= ============= ============ Diluted earnings per share $ (.06) $ (.08) $ (.05) ============= ============= ============= ============= ============ Fully converted earnings per share $ .03 $ .01 $ .04 ============= ============= ============= ============= ============ EBITDA 184.3 179.2 159.8 ============= ============= ============= ============= ============ Excluding one-time charges and non-operating gains: Basic and diluted earnings per share $ (.06) $ (.07) $ (.10) ============= ============= ============= ============= ============ Fully converted earnings per share $ .03 $ .01 $ (.02) ============= ============= ============= ============= ============ * AS REPORTED. MAY NOT AGREE WITH PROFORMA REVENUE AND EBITDA RESULTS ABOVE. THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED.
USA NETWORKS, INC. DIVISIONAL OPERATING METRICS IN MILLIONS EXCEPT PERCENTAGES AND RATINGS. ----------- ----------- --------------------------------------------------------------- 1997 1998 1999 ----------- ----------- --------------------------------------------------------------- YE YE Q1 Q2 Q3 Q4 YE ----------- ----------- --------------------------------------------------------------- USA NETWORK Advertising revenue 53% 53% 54% 56% 59% 58% 56% Affiliate revenue 47% 47% 46% 44% 41% 42% 44% Average primetime rating 2.0 2.3 2.6 2.6 2.3 2.2 2.4 Households (end of period) 72.4 75.1 75.3 75.7 76.9 77.2 77.2 -------------------------------------- 2000 -------------------------------------- Q1 Q2 Q3 -------------------------------------- USA NETWORK Advertising revenue 57% 58% 57% Affiliate revenue 43% 42% 43% Average primetime rating 2.4 2.2 2.0 Households (end of period) 77.4 78.2 79.4 ----------- ----------- --------------------------------------------------------------- 1997 1998 1999 ----------- ----------- --------------------------------------------------------------- YE YE Q1 Q2 Q3 Q4 YE ----------- ----------- --------------------------------------------------------------- SCI FI CHANNEL Advertising revenue 56% 56% 55% 61% 57% 62% 59% Affiliate revenue 44% 44% 45% 39% 43% 48% 41% Average primetime rating 0.7 0.7 0.7 0.7 0.8 0.9 0.8 Households (end of period) 46.7 52.6 54.4 55.9 58.4 59.7 59.7 -------------------------------------- 2000 -------------------------------------- Q1 Q2 Q3 -------------------------------------- SCI FI CHANNEL Advertising revenue 64% 66% 62% Affiliate revenue 36% 34% 38% Average primetime rating 0.9 0.8 0.9 Households (end of period) 60.5 62.7 65.1 THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED. 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.
USA NETWORKS, INC. DIVISIONAL OPERATING METRICS IN MILLIONS EXCEPT PERCENTAGES. --------------------------------------------------------- 1999 --------------------------------------------------------- Q1 Q2 Q3 Q4 YE --------------------------------------------------------- HSN - DOMESTIC On-air gross profit 34.0% 33.7% 35.4% 34.0% 34.3% Product mix: Homegoods 47% 49% 46% 54% 49% Jewelry 31% 27% 24% 26% 28% Heath / Beauty 10% 12% 11% 10% 11% Apparel / Accessories 12% 12% 19% 10% 12% Units shipped 7.7 7.8 7.8 8.7 32.0 Return rate 22.8% 20.4% 19.1% 19.1% 20.3% HSN cable / DBS HH (end of period) 54.8 56.8 57.6 60.6 60.6 HSN total HH (end of period) 71.0 72.7 73.0 73.7 73.7 -------------------------------------- 2000 -------------------------------------- Q1 Q2 Q3 -------------------------------------- HSN - DOMESTIC On-air gross profit 33.6% 34.7% 34.7% Product mix: Homegoods 50% 47% 49% Jewelry 27% 28% 26% Heath / Beauty 11% 13% 10% Apparel / Accessories 12% 12% 15% Units shipped 8.2 7.8 8.2 Return rate 20.9% 19.6% 20.2% HSN cable / DBS HH (end of period) 62.0 63.2 64.6 HSN total HH (end of period) 75.2 76.4 75.9 THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED.
USA NETWORKS, INC. DIVISIONAL 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 --------------------------------------- TICKETMASTER Number of tickets sold (mm) 21.8 22.3 20.2 Gross value of tickets sold (mm) $812 $881 $782 Share of tickets sold online 20.5% 25.8% 25.2% Revenue per ticket- Combined $5.44 $5.89 $5.67 Revenue per ticket- Online $6.49 $7.08 $6.72 THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED.
USA NETWORKS, INC. DIVISIONAL OPERATING METRICS ------------------------------------ ----------------------------------- 1999 2000 ------------------------------------ ----------------------------------- Q1 Q2 Q3 Q1 Q2 Q3 ------------------------------------ ----------------------------------- HOTEL RESERVATIONS NETWORK Hotel room nights sold (thousands) 181 291 374 429 587 717 Portion of revenues generated online 69% 81% 85% 91% 92% 94% Affiliated revenues as % of total revenue 27% 41% 44% 53% 52% 53% Cities served 27 37 38 49 60 83 THE FINANCIAL, STATISTICAL AND OTHER INFORMATION CONTAINED HEREIN IS UNAUDITED.