Based on an evaluation of the Company's film assets, an impairment charge of $7.0 million was recognized in the quarter. The impairment charge, which primarily relates to the movies released over the 2010 through 2012 period, was driven recent performance of these titles. As a result of the impairment, WWE Studios generated a loss of $7.4 million compared to a loss of $2.0 million in the prior year quarter, which included no film impairment charges. Excluding the impact of film impairment charges, the WWE Studios' movie portfolio generated an adjusted loss of $0.4 million compared to a loss of $2.0 million in the prior year quarter.
Unallocated SG&A expense was $27.3 million for the current year quarter as compared to $28.2 million in the prior year quarter. The decrease in expense was driven by a $2.1 million year-over-year reduction in accrued management incentive compensation based on current expectations of the Company's 2013 financial performance, which were revised during the quarter, and by a $0.5 million reduction in bad debt expense. These items were partially offset by a $1.3 million increase in consulting and professional fees and a $0.5 million increase in salary and benefits.
Operating Income Before Depreciation and Amortization (OIBDA)
OIBDA declined $0.6 million, or 6%, to $9.7 million as an increase of television rights fees was more than offset by film impairments, the relatively weak performance of the SummerSlam pay-per-view and lower results from the video game business. Profits from television increased $6.3 million with the production and licensing of programs, such as the third hour of Raw, WWE Main Event and Total Divas, and contractual increases from existing programs. Results of film operations reflected $7.0 million in impairments primarily related to the Company's 2010-2012 film slate (as described above). Pay-per-view profits declined $1.4 million driven by a 17% reduction in buys for the Company's SummerSlam event, and profits from the Company's licensing business declined $0.7 million with lower sales of video games in both domestic and international markets. Favorably impacting the quarter's results was a year-over-year reduction in accrued management incentive compensation that was based on revised expectations for the Company's full year performance, which partially offset the rise in compensation and other overhead costs.
Based on the impact of film impairments and resulting changes in business mix, the Company's OIBDA margin was 9% in the quarter as compared to 10% in the prior year quarter. Excluding the impact of film impairments, Adjusted OIBDA was $16.7 million in the period as compared to $10.3 million in the prior year period, and the Adjusted OIBDA margin was 15% in the current period as compared to 10% in the prior year period. (See Schedules of Adjustments in Supplemental Information).
Depreciation and amortization
Depreciation and amortization expense totaled $6.5 million for the current year quarter as compared to $5.3 million in the prior year quarter. The increase in depreciation and amortization expense derived from investment in assets to support the Company's content initiatives including efforts to launch a potential network.
Investment Income, Interest and Other Income, Net
Investment income, interest and other income, net yielded an expense of $0.1 million compared to $0.0 million in the prior year quarter.
Short URL: http://winc.cc/p9Gct1
Jim Ross Blogs About The WWE Brand Split, How TNA And NXT Will Be Affected, More
Lucha Underground's Willie Mack Talks About Having His NXT Contract Rescinded, Using The Stunner
The 50 Greatest Wrestlers Of The Last 50 Years: Who Is 30?
Stephanie McMahon Talks Her Favorite Wrestler, Injuring Her Neck At Concert, Training, More
WWE Pulls New John Cena Merchandise, Hideo Itami On His Return, WWE On Superstar Betrayals
John Cena Talks Enzo Amore And Big Cass, Shane McMahon Being Back With WWE, Camp WWE
Lana Training At The WWE Performance Center, WWE NXT Superstar Suffers Stinger, WWE Power Rankings
How Old Is Seth Rollins Today?, CM Punk Does Running Man Challenge (Video), Split WWE Referee Crews
Dixie Carter On Signing Recently Released WWE Stars, Rumors Of TNA's Financial Situtation
Backstage WWE Brand Split Updates, Women's Division Talk, RAW And SmackDown Leaders, John Cena, More
Paige Gets New Tattoo For Alberto Del Rio? (Photos)
Steve Austin On Brand Split, If There Should Be Two World Titles, WWE Not Having "Incredible Depth"
WWE Planning Big RAW Episodes, WWE Star Shares Embarrassing Moment With TMZ, PPV Announce Teams
John Cena Wearing New Gear For RAW Return, Sitdown Interview On WWE NXT, Drew Gulak - WWE CWC
Backstage News On Dana Brooke's WWE Status, Seth Rollins In New WWE 360 Video, SmackDown Top 10
More On WWE Brand Split, Why WWE May Load Up Debut, SmackDown Airing Live Outside Of U.S., Touring