Revenues totaled $108.5 million as compared to $109.6 million in the prior year quarter. Operating income was $15.9 million as compared to $20.3 million in the prior year quarter. Net income was $10.6 million, or $0.14 per share, as compared to $14.3 million, or $0.19 per share, in the prior year quarter. Impacting comparability of our year-over-year results were $5.1 million of film impairment charges in the current year quarter. Excluding the impact of the film impairments in the current quarter, Adjusted Operating income was $21.0 million as compared to $20.3 million in the prior year quarter. Adjusted Net income was $14.1 million, or $0.19 per share, as compared to $14.3 million, or $0.19 per share.
"In the third quarter, our results reflected the Company's continued focus on improving business results in a difficult environment"
"In the third quarter, our results reflected the Company's continued focus on improving business results in a difficult environment," stated Vince McMahon, Chairman and Chief Executive Officer. "Despite the challenging economic headwinds, both domestically and abroad, we generated increased profits across a majority of our businesses, with the main exception being our film business which we continue to monitor and refine to improve future performance. We believe the sluggish economy and our ongoing talent transition were important factors that affected the results of our other businesses. Based on our history of developing talent and creating content with broad appeal, we are confident we can address our creative challenges. Further, by taking advantage of our strategic opportunities, including the anticipated 2012 launch of a WWE network, we can achieve meaningful growth."
Comparability of Results
The current year quarter results included $5.1 million in film impairment charges related to our films Inside Out, The Chaperone, and Knucklehead. In order to facilitate an analysis of our financial results on a more comparable basis, where noted, we have adjusted our results to exclude these film impairment charges from our third quarter of 2011 results. Adjusted Operating income increased 3% to $21.0 million and Adjusted EBITDA increased 5% to $24.6 million. (See Schedules of Adjustments in Supplemental Information) Please note that our revised film strategy utilizing a self-distribution model also has an impact on the comparability of results but is not adjusted in the aforementioned schedules.
Three Months Ended September 30, 2011 – Results by Business Segment
Total revenues declined 1% to $108.5 million driven primarily by declines in WWE Studios and Consumer Products, partially offset by Live and Televised Entertainment. Revenues from North America increased by 1%, led by growth in our Pay-Per-View and Home Video businesses. Revenues outside North America decreased 6%, primarily due to a decline in our Consumer Products segment, which was partially offset by an increase in Television rights revenue and favorable changes in foreign exchange rates.
Live and Televised Entertainment
Jim Ross Blogs About Stars WWE Can Bring In For WrestleMania 32, Daniel Bryan Not Getting Cleared
Daniel Bryan's Trainer Talks About Working With Shawn Michaels, His Attitude, Training Bryan, More
Most Personal WWE Grudges Of All-Time, Xavier Woods And JoJo Play Power Rangers, More
Sound Off: What Will Be The WWE Championship Match At WrestleMania 32?
William Regal Reveals His Favorite Wrestling Moment; Talks Dressing In Drag On RAW, More
The Rock On People's Choice Nomination, WWE Shop Black Friday Sale, Daniel Bryan Appearance Tonight
WWE Hall Of Famer Says He's Still Feuding With Jerry Lawler, Talks Getting Heat In Memphis, More
Backstage Talk On WWE Pushing Roman Reigns To The WWE World Heavyweight Title, Turning The Fans
Raven On Why He Recently Sued WWE, Drinking With Shane McMahon, Impressing Vince McMahon, More
WWE Legend Pulled Due To Health, The Wyatts Vs. The Dudleyz, The Undertaker Gets WWE DVD Cover
Kurt Angle Talks About His Best Friends In WWE, Brock Lesnar Demanding To Lose To Him, Best Workers
Former WWE NXT Creative Assistant Nails It In Rant About WWE's Product And Their Ratings Decline