Annual Report

1
Annual Report

• World Wrestling Entertainment (WWE)
• Don Gordon
• 002
• Link to corporate Site http//corporate.wwe.com/i
  nvestors/overview.jsp

2
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

3
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

4
AUDIT REPORT

• IND. AUDITOR D. Eloitte T. Ouche LLP
• Auditor Report All information and material in
  the provided report is presented fairly and
  accurately.

5
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.

6
Income Statement

• SINGLE STEP
• PROFIT FOR WWE HAS MADE A VERY NOTICABLE INCREASE
  EACH YEAR.

YEAR 2005 2004
GROSS PROFIT 153,100,000 167,800,000
INCOME FROM OPERATIONS 50,300,000 73,600,000
NET INCOME 39,100,000 48,200,000
7
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/di
  rWWE/mis/HTML1/004.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.

8
Balance Sheet

• A LSE
• 2004 454,344 101,239353,105
• 2005 441,405 65,871375,534
• 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.

9
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

10
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

11
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

12
FINANCIAL ANALYSIS PROFITABLITITY RATIOS

• Steady growth.
• 2005
  2004
• PROFIT MARGIN 13 12.48
• ASSET TURNOVER .75 .83
• RETURN ON ASSETS 11.15 10
• RETURN ON EQUITY 13.05 11.65

13
FINANCIAL ANALYSIS SOLVENCY RATIO

• DEBT TO EQUITY 2005 1.97
• DEBT TO EQUITY 2004 -
• A slight increase in Debt to Equity.

14
FINANCIAL ANALYSIS MARKET STRENGTH RATIOS

• 
  05 04
• EARNINGS PER SHARE .72 .55
• DIVIDEND YIELD 5.95 4.27
• A nice increase in dividend. I love it.