WWE Reports 2013 Second Quarter Results: Vince McMahon Comments On Earnings Declining
Depreciation and amortization
Depreciation and amortization expense totaled $11.3 million for the current year period as compared to $8.8 million in the prior year period. The increase in depreciation and amortization expense derives from our investment in assets to support our efforts to launch a potential network.
Investment Income, Interest and Other Expense, Net
Investment income, interest and other expense, net yielded an expense of $1.7 million compared to $0.4 million in the prior year period, reflecting incremental expenses associated with other non-income taxes, realized foreign exchange losses and the disposal of property and equipment in the current year period as compared to the prior year period.
Effective tax rate
In the current year period, the effective tax rate was 38% as compared to 23% in the prior year period. The 23% rate in the prior year period was lower primarily due to the recognition of an approximate $4 million benefit related to previously unrecognized tax benefits.
Net cash generated by operating activities was $5.9 million for the six months ended June 30, 2013 as compared to $44.7 million in the prior year period. This $38.8 million decrease was driven by an approximate $19.1 million reduction in operating performance, an $11.0 million increase in the annual payout of management incentive compensation (with the return to a more normalized level of management compensation in 2012), and changes in working capital associated with international live event tours and pay-per-view events.
Purchases of property and equipment and other assets declined by $4.4 million from the prior year period, primarily due to lower investment in assets to support our efforts to create and distribute new content, including through a potential network.
Additional business metrics are made available to investors on a monthly basis on our corporate website - corporate.wwe.com. Note: WWE will host a conference call on August 1, 2013 at 11:00 a.m. ET to discuss the Company's earnings results for the second quarter of 2013. All interested parties can access the conference call by dialing 855-993-1400 (toll free) or 630-691-2763 from outside the U.S. (conference ID for both lines: WWE). Please reserve a line 15 minutes prior to the start time of the conference call.
The earnings release and presentation to be referenced during the call will be available at corporate.wwe.com. A replay of the call will be available approximately two hours after the conference call concludes, and can be accessed on the Company's web site.