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Annual Report
»World Wrestling
Entertainment (WWE)
»Don Gordon
»002
» Link to corporate Site:
http://corporate.wwe.com/investors/overview.jsp
EXECUTIVE SUMMARY
• After completing my own annual report of WWE,
I would definitely recommend this stock to
anyone. After WWEs main competitor WCW
folded it has given WWE an uncontested legal
monopoly on the wrestling trade not just in
America but globally.
• Link to Report:
http://ww3.ics.adp.com/streetlink_data/dirWWE/
mis/HTML1/default.htm
INTRODUCTION
• CEO: Linda E. McMahon
• Corporate HQ Address: WWE
» 1241 East Main Street
» Stamford, CT 06902
• Ending Fiscal Year Date: 4/30/2005
• Product/ Branding Line: WWE merchandise, TV
shows featuring live wrestling performances in
front of a large audience, and movies.
• Main Market: North America
AUDIT REPORT
• IND. AUDITOR: D. Eloitte & T. Ouche LLP
• Auditor Report: All information and
material in the provided report is
presented fairly and accurately.
STOCK MARKET INFO.
•
•
•
•
•
Latest Trading Price: $16.31
52 week range: $9.91-16.93
Dividend Per Share: $.24
Date of Above Info: 3/5/2005
BUY.. I just happen to be a proud
shareholder of WWE.
Income Statement
YEAR
2005
GROSS
PROFIT
$153,100,000
INCOME
FROM
OPERATION
S
NET
INCOME
• SINGLE STEP
2004 • PROFIT FOR WWE
HAS MADE A VERY
NOTICABLE
INCREASE EACH
$167,800,000
YEAR.
$50,300,000
$73,600,000
$39,100,000
$48,200,000
Industry Situation and Company
Plans
• WWE is planning some major expanding in the present
and most definitely in the future. Currently the WWE has
already invaded most of the globe VIA TV. Countries in
Europe, Asia, Canada, and Australia are all in the
planning to have regularly scheduled annual events held
in their countries. Besides global expansion the WWE is
going to the silver screen with its upcoming movie about
WWE superstar Kane, titled Kane: Evil Unearthed.
• Sources:
http://ww3.ics.adp.com/streetlink_data/dirWWE/mis/HTM
L1/004.htm
• My friend and I were at the movie theater the other day
and saw the movie poster Kane: Evil Unearthed. I easily
saw this as a new branding technique by WWE.
Balance Sheet
• A= L+SE
• 2004: $454,344= 101,239+353,105
• 2005: $441,405= 65,871+375,534
• There was a pretty nice increase in SE
from 2004- 2005. It was Liabilities that
moved the most from 04-05 decreasing
from $101,239 to 65,871.
STATEMENT OF CASH FLOWS
• Cash flows are less then NI over the past
2 years.
• Not growing by buying real-estate or
others, because WWE is a traveling
company only permanent structure is
Corporate HQ.
• Primary source of Financing: Selling of
Stock
• Cash has Decreased
ACCOUNTING POLICIES
•
Cash and Equivalents — Cash and equivalents include
cash on deposit in overnight deposit accounts and
investments in money market accounts.
• Inventory — Inventory consists of merchandise sold on
a direct sales basis, and videotapes and DVDs, which
are sold through wholesale distributors and retailers.
Substantially all of our inventory is comprised of finished
goods. Inventory is stated at the lower of cost (first-in,
first-out basis) or market. The valuation of our
inventories requires management to make market
estimates assessing the quantities and the prices at
which we believe the inventory can be sold.
• Source: www.shareholder.com SEC filing WWE
FINANCIAL ANALYSIS &
LIQUIDIDTY RATIOS
»
•
•
•
•
•
•
05
04
WORKING CAPITAL: $278.1 (mil)
265.2(mil)
CURRENT RATIO:
5.25
4.08
RECIEVABLE TURNOVER: 5881 times (na)
AVG. DAYS SALES UNCOLL: .06 days (na)
INVENTORY TURNOVER: 222.9
216.5
AVG. DAYS INV. ON HAND: 1.63
1.68
FINANCIAL ANALYSIS &
PROFITABLITITY RATIOS
• Steady growth.
»
•
•
•
•
2005
PROFIT MARGIN: 13%
ASSET TURNOVER: .75
RETURN ON ASSETS: 11.15
RETURN ON EQUITY: 13.05
2004
12.48%
.83
10%
11.65%
FINANCIAL ANALYSIS &
SOLVENCY RATIO
• DEBT TO EQUITY: 2005: 1.97
• DEBT TO EQUITY 2004: • A slight increase in Debt to Equity.
FINANCIAL ANALYSIS & MARKET
STRENGTH RATIOS
»
05
• EARNINGS PER SHARE: $.72
• DIVIDEND YIELD:
5.95%
04
$.55
4.27%
• A nice increase in dividend. I love it.