<PAGE>
Exhibit 99.1
USA
NETWORKS
INC
FOR IMMEDIATE RELEASE OCTOBER 26, 2000
22% HIGHER EBITDA AT USA NETWORKS, INC.
7 CONSECUTIVE QUARTERS OF GREATER THAN 20% EBITDA GROWTH
NEW YORK, NEW YORK, October 26, 2000 - USA Networks, Inc. (NASDAQ: USAI)
announced today its financial results for the quarter ended September 30, 2000.
On a pro forma comparative basis, USAi generated 22% higher EBITDA on 21% higher
revenue from its operating businesses.
- USA NETWORK and SCI FI combined for a 9.9% increase in revenue to
$265.1 million and 32.2% higher EBITDA to $109.6 million for Q3.
- USA averaged a 2.0 rating and delivered more adult viewers than any
other cable network in primetime during the period. In the most
recent period:
- Sunday primetime is up more than 30% in household rating and
in delivery of targeted adult demos even without WWF.
- Newly acquired female targeted movies on Saturday have
increased delivery to women 25-54 by 76%.
- Recently acquired sitcoms have lifted daytime viewing in the
top three adult demo categories.
- Late night viewing among hard to reach adults 18-34 is up 21%
- SCI FI continues its extraordinary growth, increasing revenue by
40.4% to $64.6 million and EBITDA by 67% to $22.4 million in Q3. SCI
FI increased its average primetime delivery by 26% to 578,000
households in Q3 and is now the #1 network in its concentration of
adult viewers 25-54, ahead of all cable and broadcast television
networks.
- SCI FIs 7 1/2 hours of weekly original programming helped lift the
channel's average primetine Q3 rating by 13% to a record 0.9,
including a 1.0 rating during the Olympics. Original episodes of
INVISIBLE MAN, produced by Studios USA, are averaging a 1.3 rating on
SCI FI, and an additional 0.5 national household rating from
syndication through Studios USA.
- STUDIOS USA has become the 3rd largest producer of primetime network
and first-run syndicated programming, delivering three new fall
series - DEADLINE, WELCOME TO NEW YORK, and THE DISTRICT - all of
which are among the major networks' top-rated new shows. ARREST &
TRIAL is the #1 rated new first-run series on television.
- STUDIOS USA'S LAW & ORDER began its 11th season and is delivering
more adult viewers 18 - 49 than WHO WANTS TO BE A MILLIONAIRE and WEST
WING during Wednesday primetime. LAW & ORDER: SVU, the only new show
last year to receive a multi-year renewal, premiered this fall as
the #1 show on Friday night. USA Network's airing of SVU augments
NBC's delivery by more than 10% every week.
- HSN strengthened its position as the world's #1 distributed
television retailer, expanding to more than 130 million households
during the period.
- HSN grew its combined operating revenue by 20.2% to $422.6 million
and EBITDA by 9.0% to $58.7 million in Q3.
- HSN attracted 575,000 new U.S. customers during the quarter, a 17%
increase versus Q3, increasing its active customer base with
virtually zero customer acquisition cost or marketing expense.
- HOT GERMANY grew revenue by 36.4% to $53.8 million and EBITDA
increased by 31.4% to $4.9 million.
- TICKETMASTER sold 20.2 million tickets during the period, a 14.4%
increase versus Q3 1999, and grew ticketing revenue by 18.8% to
$124.9 million.
- TICKETMASTER ONLINE accounted for 25.2% of tickets sold by
Ticketmaster in the U.S., Canada and U.K. versus 15.0% in Q3 1999.
For the sixth consecutive month, Ticketmaster.com was the #2 Web
retailer among US home users with 595,000 buying customers in August
2000, according to PC Data Online.
- HOTEL RESERVATIONS NETWORK increased revenue by 99% to $94.6 million
and increased EBITDA by 110% to $13.9 million for Q3. HRN grew its
affiliate base to more than 3,400 affiliate web sites and expanded into
23 additional markets during the period.
- PRECISION RESPONSE increased revenue 23% to $70.2 million and EBITDA by
34% to $11.1 million versus Q3 1999.
<PAGE>
FINANCIAL RESULTS
On a comparative pro forma basis, USAi reported the following:
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30,
---------------------------------
ACTUAL PRO FORMA
2000 1999 GROWTH
---- ---- -------
<S> <C> <C> <C> <C>
($ IN MILLIONS)
REVENUES - OPERATING BUSINESSES
Cable and studios................... $336.0 $307.1 9.4% Cable networks grew 9.9%
Electronic retailing - domestic..... 368.8 312.3 18.1% Combined HSN domestic and Germany grew 20.2%
Electronic retailing - Germany...... 53.8 39.5 36.4%
Ticketing........................... 124.9 105.2 18.8%
Hotel reservations.................. 94.6 47.7 98.6%
Teleservices........................ 70.2 57.0 23.1%
Other............................... 0.5 0.0
------- -------- -------
SUB-TOTAL - OPERATING........... 1,048.9 868.7 20.7%
REVENUES - EMERGING BUSINESSES
Online city guides and related...... 21.6 9.7
Internet commerce................... 5.3 7.4
Electronic commerce services........ 7.2 6.2
Electronic retailing - other
international...................... 3.9 2.5
Broadcasting........................ 5.3 2.3
Filmed entertainment................ 14.5 27.9
Emerging networks................... 8.6 0.3
--------- -------- -------
SUB-TOTAL - EMERGING............ 66.3 56.3
-------- -------- -------
TOTAL........................... $1,115.2 $924.9 20.6%
======== ======== =======
EBITDA - OPERATING BUSINESSES
Cable and studios................... $118.5 $92.8 27.6% Cable networks grew 32.2%
Electronic retailing - domestic..... 53.8 50.1 7.3% Combined HSN domestic and Germany grew 9.0%
Electronic retailing - Germany...... 4.9 3.7 31.4%
Ticketing........................... 20.1 21.3 (5.7%) (a)
Hotel reservations.................. 13.9 6.6 110.4%
Teleservices........................ 11.1 8.3 34.4%
Corporate and other................. (7.5) (6.3)
-------- -------- -------
SUB-TOTAL - OPERATING........... 214.8 176.5 21.7%
EBITDA - EMERGING BUSINESSES
Online city guides and related...... (14.3) (17.7)
Internet commerce................... (8.7) 12.8
Electronic commerce services........ (8.0) 0.5
Electronic retailing - other
international..................... (4.2) (1.7)
Broadcasting........................ (13.6) (9.5)
Filmed entertainment................ (5.8) 1.7
Emerging networks................... (0.3) (0.8)
-------- --------
SUB-TOTAL - EMERGING............ (55.0) (40.2)
-------- -------- -------
TOTAL........................... $159.8 $136.3 18.3%
======== ======== =======
</TABLE>
- Presented as if the acquisitions of Precision Response Corp., Hotel
Reservations Network, October Films and Styleclick and the
consolidation of HOT Germany had occurred at the beginning of the
periods presented.
- EBITDA is defined as net income plus, (1) provision for income taxes,
(2) minority interest, (3) interest income and expense, (4)
depreciation and amortization, (5) amortization of cable distribution
fees ($8.8 million and $6.9 million, respectively), and (6)
amortization of non-cash distribution and marketing expense.
- Filmed entertainment classified as an emerging business because of the
start-up nature of USA Films' operations.
(a) Decline due primarily to costs related to recent acquisitions including
TicketWeb and 2b Technology.
-- More --
<PAGE>
FINANCIAL RESULTS (CONTINUED)
65% of the company's Q3 revenue came from direct consumer transactions, 18%
was derived from affiliate and production fees, and 17% was
advertising-related.
On a comparative pro forma basis for its three organizational units, USAi
reported the following for its operating business:
THREE MONTHS ENDED SEPTEMBER 30,
ACTUAL PRO FORMA
2000 1999 GROWTH MIX
($ IN MILLIONS)
REVENUES - OPERATING BUSINESSES
Entertainment ....................... $ 336.0 $ 307.1 9.4% 32%
Electronic retailing ................ 422.6 351.7 20.2% 40%
Information and Services ............ 289.7 209.8 38.1% 28%
Other ............................... (0.5) 0.0
---------- -------- ------- -----
TOTAL ........................... $ 1,048.9 $ 868.7 20.7% 100%
========== ======== ======= =====
EBITDA - OPERATING BUSINESSES
Entertainment ....................... $ 118.5 $ 92.8 27.6% 55%
Electronic retailing ................ 58.7 53.9 9.0% 27%
Information and Services ............ 45.1 36.1 24.7% 21%
Corporate and other ................. (7.5) (6.3) (3%)
---------- -------- ------- -----
TOTAL ........................... $ 214.8 $ 176.5 21.7% 100%
========== ======== ======= =====
EPS AND CASH NET INCOME
FULLY CONVERTED EARNINGS PER SHARE, pro forma, excluding non-operating gains
and losses was ($.02) for the three months ended September 30, 2000, as
compared to ($.01) excluding non-operating gains for the pro forma period in
1999. EPS growth was limited by higher income tax expense, equity losses in
unconsolidated investments, higher depreciation charges, and amortization of
goodwill in connection with Ticketmaster Online - Citysearch, Inc.'s
acquisition of the arts and entertainment portion of Sidewalk.com in Q3 1999
and various other acquisitions by TMCS. The impact of the TMCS transactions
would have reduced fully converted earnings per share excluding non-operating
gains to ($.02) in the year ago period.
DILUTED LOSS PER SHARE, pro forma, excluding non-operating gains was ($.10)
for the three months ended September 30, 2000, as compared to a loss of
($.08) excluding non-operating gains for the pro forma period in 1999. EPS
growth was limited by higher income tax expense, equity losses in
unconsolidated investments, minority interest, higher depreciation charges,
and amortization of goodwill in connection with Ticketmaster Online -
Citysearch, Inc.'s acquisition of the arts and entertainment portion of
Sidewalk.com in Q3 1999 and various other acquisitions by TMCS. The impact of
the TMCS transactions would have increased diluted loss per share excluding
non-operating gains to ($.11) in the year ago period.
FULLY CONVERTED CASH NET INCOME, pro forma, or earnings before the
amortization of goodwill, excluding non-operating gains was $74.2 million for
the three months ended September 30, 2000, as compared to $70.2 million
excluding non-operating gains for the pro forma period in 1999.
-- More --
<PAGE>
Operating Highlights - Pro Forma
ENTERTAINMENT
NETWORKS AND STUDIOS
- Networks' combined revenue grew by 9.9% to $265.1 million, and EBITDA
improved by 32.2% to $109.6 million due primarily to increased
advertising and affiliate revenue.
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30,
2000 1999 GROWTH
---- ---- ------
<S> <C> <C> <C>
REVENUE ($ IN MILLIONS)
USA Network ................................ $ 200.5 $ 195.3 2.7%
SCI FI ..................................... 64.6 46.0 40.4%
-------- -------- ----
TOTAL .................................... $ 265.1 $ 241.3 9.9%
======== ======== ====
EBITDA ($ IN MILLIONS)
USA Network ................................ $ 87.2 $ 69.5 25.5%
SCI FI ..................................... 22.4 13.4 66.9%
-------- -------- ----
TOTAL .................................... $ 109.6 $ 82.9 32.2%
======== ======== ====
HOUSEHOLDS (IN MILLIONS @ 9/30)
USA Network ................................ 79.4 76.9 3%
SCI FI ..................................... 65.1 58.4 11%
</TABLE>
Q3 programming highlights include:
- USA NETWORK
Primetime...................... Tied for top rated basic cable network
with average 2.0 rating
Demos.......................... More adult viewers in primetime than any
other basic cable network
LAW & ORDER: SVU............... Adults 25-54 up 9% from Q3 99; repeat
episodes averaged 1.2 rating
COVER ME / THE HUNTRESS........ Among cable's highest rated original
dramas; 1.4 average in Wednesday prime
US Open........................ Adults 18-34 up 33% from last year;
1.4 average rating in primetime
JAG ........................... Up 31% from last year; 1.7 average rating
NASH BRIDGES................... Males 18-34 up 32% delivery for its time
period versus last year; 1.7 average
rating
- SCI FI
Primetime...................... Record average rating 0.9, up 13% from
Q3 99; 1.0 average rating during Olympics
Delivery....................... Record 578,000 average households, up 26%
from Q3 99
Demos.......................... Highest concentration of adults 25-54 of
any network on television
INVISIBLE MAN.................. Original episodes averaged 1.3 rating;
syndication extends reach to 90% of U.S.
FARSCAPE....................... 1.5 average rating, 50% improvement over
1999
CROSSING OVER.................. Average 0.8 rating at 11pm; 60% increase
for its time period vs. Q3 99
-- More --
<PAGE>
ENTERTAINMENT (CONTINUED)
- STUDIOS USA
Production..................... 3rd largest producer of primetime
network and first-run syndicated
programming
LAW & ORDER.................... Beats "Millionaire" and "West Wing" in
Adults 18-49 delivery in Wednesday prime
LAW & ORDER: SVU............... 2nd season premiere was #1 show on Friday
night with 9.5 rating
DEADLINE....................... Among NBC's top-rated new series; average
rating up 60% from lead-in program
WELCOME TO NEW YORK............ 12.7 million viewers watched premiere;
most popular new CBS fall show in 6 years
THE DISTRICT................... #1 show in Saturday primetime; among CBS's
top-rated new series
ARREST & TRIAL................. #1 new first-run series; 2.5 mm average
delivery, up 13% since debut
Talk shows..................... 3 of top 7; Maury is #1 among all talk
shows in ratings growth, up 13% from
`99/00
ELECTRONIC RETAILING
ELECTRONIC RETAILING - DOMESTIC
- HSN's domestic business grew revenue by 18.1% to $368.8 million and
EBITDA by 7.3% to $53.8 million due, primarily, to increased units
shipped and a slightly higher average price point in Q3.
- HSN highlights include:
<TABLE>
<CAPTION>
THREE MONTHS ENDED
SEPTEMBER 30,
------------------
2000 1999
---- ----
<S> <C> <C>
Units shipped (IN MILLIONS)............................. 8.2 7.8
Domestic on-air gross profit %.......................... 34.7% 35.4%
(reflects new accounting rule*)
Return rate............................................. 20.2% 19.1%
HSN U.S. cable / DBS homes (IN MILLIONS @ 9/30) ........ 64.6 57.6
</TABLE>
* In connection with new accounting regulations, HSN has reclassified
shipping and handling revenue from cost of goods sold to revenue. This
reclassification had no effect on HSN's reported EBITDA and no
significant effect on revenue growth. The effect of the
reclassification was to increase HSN revenue and decrease gross-profit
for all periods presented.
-- More --
<PAGE>
ELECTRONIC RETAILING (CONTINUED)
- HSN highlights include:
New customers............ Broader home category attracted majority of
1.7 million new customers in 9 months
NFL Shop................. Exclusive programming has attracted 23% new
customers since August launch
Barbra Streisand......... Exclusive TV retailer for Timeless CD
commemorating final live performance
Betula by Birkenstock.... Launched men's show segment in August, sold
an average 1,000 units per minute
- HSN.com highlights include:
Sales.................... Nearly $10 million in Q3 sales and
profitable EBITDA
Customers................ Grew its active customers base by 60%
Functionality............ 99% error-free operating rate since site
redesign in August 2000
ELECTRONIC RETAILING - INTERNATIONAL
- HSN's international services' households, live hours per day, and
ownership stake:
<TABLE>
<CAPTION>
TV HOUSEHOLDS LIVE HOURS
------------------- ----------
Consolidated: 9/00 9/99 GROWTH DAILY STAKE
------------- ---- ---- ------ ----- -----
(IN MILLIONS)
<S> <C> <C> <C> <C> <C>
HOT Germany (includes Austria and Switzerland) 28.8 22.7 6.1 16 hours 42%
Home Shopping en Espanol (U.S.) .............. 5.1 2.7 2.4 12 hours 100%
Unconsolidated:
TVSN (China) ................................. 22.4 -- 22.4 5 hours 21%
Shop Channel (Japan) ......................... 8.6 6.6 2.0 8 hours 30%
HOT LeGrand Magasin (Belgium) ................ 1.4 -- 1.4 6 hours 47%
</TABLE>
INFORMATION AND SERVICES
TICKETING OPERATIONS / ONLINE TICKETING
- Combined Ticketmaster / Ticketmaster Online revenue increased by 18.8%
to $124.9 million in Q3 due to market growth, including a 14.8%
increase in tickets sold to 20.2 million. EBITDA fell 5.7% to $20.1
million in Q3 due primarily to costs related to recent acquisitions
including TicketWeb and 2b Technology.
- Ticketmaster.com accounted for 25.2% of total tickets sold by
Ticketmaster in the U.S., Canada, and U.K., versus 15.0% in the year
ago period. The top-selling events during the period included Ringling
Bros. and Barnum & Bailey, WWF, *NSYNC, Dixie Chicks, and Tina Turner.
- For the sixth consecutive month, Ticketmaster.com was the #2 Web
retailer among US home users with 595,000 buying customers in August
2000, according to PC Data Online.
-- More --
<PAGE>
INFORMATION AND SERVICES (CONTINUED)
- Ticketing highlights include:
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30,
--------------------------------
2000 1999 GROWTH
---- ---- ------
<S> <C> <C> <C> <C>
Number of tickets sold (IN MILLIONS)............. 20.2 17.6 14.8%
Gross value of tickets sold (IN MILLIONS)........ $781.6 $650.8 20.1%
Revenue per ticket - combined.................... $5.67 $5.34 6.2%
Revenue per ticket - online...................... $6.72 $6.45 4.2% (United States, Canada, U.K.)
Share of tickets sold online..................... 25.2% 15.0%
</TABLE>
HOTEL RESERVATIONS
- Hotel Reservations Network grew revenue by 99% to $94.6 million,
increased EBITDA by 110% to $13.9 million, and sold 92% more hotel room
nights versus Q3 1999.
- HRN increased its affiliate base to more than 3,400 affiliate web sites
during the period.
- HRN sold 1,732,000 room nights during the first nine months of
2000, compared to 846,000 rooms for the same period last year.
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30,
--------------------------------
2000 1999 GROWTH
---- ---- ------
<S> <C> <C> <C>
Hotel room nights sold (ROUNDED)............. 717,000 374,000 92%
Portion of total revenues generated online... 94% 85%
Affiliate revenues as % of total revenue..... 53% 44%
Cities served (AS OF 9/30)................... 83 38 118%
</TABLE>
ONLINE CITY GUIDES AND RELATED
- TMCS's total network traffic grew to an estimated 773 million page
views during the period, an increase of 108% from Q3 1999. TMCS's
combined reach among home and work users increased to 9.7%, and unique
users grew 58% to 7.8 million in September.
- TMCS's combined personals sites, including Match.com and One and Only,
attracted a monthly average of 1.7 million unique users in Q3 2000, a
73% annual increase from a year ago. The personals sites currently have
nearly 9 million registrants, and approximately 165,000 affiliate
sites.
- Citysearch launched its first national advertising television campaign
on USA Network and SCI FI during the period.
INFORMATION AND SERVICES HIGHLIGHTS ALSO INCLUDE:
- PRECISION RESPONSE grew revenue 23% to 70.2 million while reducing the
concentration of its top ten revenue-producing clients to 65% from
approximately 70% in the year-ago period. PRC's new clients include
Amway, IDT, Nextlink and West AWS.
- STYLECLICK launched its new merchandising technology and announced
strategic alliances with About, Inc., Barrow Industries, Diane von
Furstenberg, and Dr. Jay's.
- ECS's Short Shopping generated $1.3 million in revenue during Q3 from
contextual selling spots, including during USA Network's coverage of
the US Open.
- NBA. com, in partnership with ECS, launched the 2000/2001 season
with NBA On-Sale 2000, the first league-wide single game ticket
sale. Year-to-date, ECS has processed more than 40,000 merchandise
orders for NBA.com.
-- More --
<PAGE>
STATEMENTS OF OPERATIONS
Due to regulatory restrictions, Universal and Liberty own a significant portion
of their interests in USAi through USAi subsidiaries. This structure causes USAi
to record net losses in situations where net income would otherwise have been
recorded if their ownership were entirely in USAi common stock. Fully converted
earnings per share reflect the impact as if all shares exchangeable into common
stock had been exchanged during the period.
The actual quarterly results are not comparable due to:
1) the acquisition of Hotel Reservations Network in May 1999;
2) the acquisition of October Films and certain assets of Polygram Filmed
Entertainment in May 1999;
3) TMCS's acquisition of the arts and entertainment portion of
Sidewalk.com, Match.Com, and One and Only Network;
4) the consolidation of Home Order Television as of January 1, 2000; and
5) the acquisition of Styleclick.com in August 2000.
SHARES OUTSTANDING AND MARKET CAPITALIZATION
As of October 20, 2000, USAi had outstanding 729.3 million shares, including
exchangeable securities, with an aggregate market capitalization of
approximately $13.1 BILLION.
IMPORTANT DISCLOSURES
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
include the information relating to possible or assumed future results of
operations of USAi, including those preceded by, followed by or that include the
words "believes," "projects," "expects," "anticipates" or similar expressions.
These statements reflect the current views of USAi with respect to future
events. The following important factors, in addition to those described in
USAi's filings with the Securities and Exchange Commission, could affect the
future results of USAi, and could cause those results to differ materially from
those expressed in the forward-looking statements: material adverse changes in
economic conditions in the markets served by our businesses; future regulatory
actions and conditions in our businesses' operating areas; competition from
others; successful integration of our divisions, including recently acquired
businesses; product demand and market acceptance; the ability to protect
proprietary information and technology or to obtain necessary licenses on
commercially reasonable terms; and obtaining and retaining key executives and
employees. These forward-looking statements are made as of the date of this
press release, and USAi undertakes no obligation to update or revise them,
whether as a result of new information, future events or any other reason.
The financial, statistical and other information contained herein is unaudited.
USA Network and SCI FI ratings and household delivery data per NMR Galaxy
Explorer for NHI defined periods versus same weeks previous year. Subscriber
counts based on Nielsen People Meter Installed Sample, September `00 vs. `99.
All ratings within each network's coverage area. Studios' syndicated program
ratings per NSS (GAA % where applicable), and broadcast network data per NTI for
comparable time periods. TMCS and competitor unique users and national reach
data per Media Metrix (Digital Media Universe) Key Measures Report, September
2000. SCI FI.com user data per I/PRO Research, September 2000. Subject to
qualifications.
USA Networks, Inc. (NASDAQ: USAI) is focused on the new convergence of
entertainment, information and direct selling. Formed in February 1998, the
Company is organized into three distinct but interrelated units which include
the following assets: USA Entertainment's USA Network, SCI FI Channel, TRIO,
NWI, Studios USA, USA Films, USA Broadcasting and Interactive Entertainment; USA
Electronic Retailing's HSN, HSN International, HSN Interactive; and USA
Information and Services' Ticketmaster, Ticketmaster Online-Citysearch (NASDAQ:
TMCS), Match.com, Hotel Reservations Network (NASDAQ: ROOM), Electronic Commerce
Solutions, Styleclick, Inc. (NASDAQ: IBUY) and Precision Response Corporation.
CONTACTS: MEDIA RELATIONS: INVESTOR RELATIONS:
Adrienne Becker Roger Clark
212-314-7254 212-314-7400
<PAGE>
USA NETWORKS, INC. AND SUBSIDIARIES
Business Segment Information
Unaudited
( $ IN THOUSANDS )
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30,
PRO FORMA (a) ACTUAL PRO FORMA (a) ACTUAL
------------- ------ ------------- ------
2000 2000 1999 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
REVENUES - OPERATING BUSINESSES
Cable and studios $ 336,047 $ 336,047 $ 307,094 $ 307,094
Electronic retailing - domestic 368,773 368,773 312,259 312,259
Electronic retailing - Germany 53,841 53,841 39,481 --
Ticketing 124,929 124,929 105,188 105,188
Hotel reservations 94,619 94,619 47,652 47,652
Teleservices 70,162 70,162 57,006 --
Other 509 509 -- --
----------- ----------- ----------- -----------
SUB-TOTAL 1,048,880 1,048,880 868,680 772,193
REVENUES - EMERGING BUSINESSES
Online city guides and related 21,562 21,562 9,673 9,673
Internet commerce 5,291 5,147 7,447 6,660
Electronic commerce services 7,174 7,174 6,168 6,168
Electronic retailing - other international 3,935 3,935 2,459 2,459
Broadcasting 5,263 5,263 2,341 2,341
Filmed entertainment (c) 14,468 14,468 27,912 27,912
Emerging networks 8,591 8,591 266 266
----------- ----------- ----------- -----------
SUB-TOTAL 66,284 66,140 56,266 55,479
----------- ----------- ----------- -----------
Total $ 1,115,164 $ 1,115,020 $ 924,946 $ 827,672
=========== =========== =========== ===========
EBITDA - OPERATING BUSINESSES (b)
Cable and studios $ 118,453 $ 118,453 $ 92,834 $ 92,834
Electronic retailing - domestic 53,798 53,798 50,130 50,130
Electronic retailing - Germany 4,922 4,922 3,746 --
Ticketing 20,055 20,055 21,262 21,262
Hotel reservations 13,907 13,907 6,610 6,654
Teleservices 11,120 11,120 8,275 --
Corporate and other (7,494) (7,494) (6,334) (6,334)
----------- ----------- ----------- -----------
SUB-TOTAL 214,761 214,761 176,523 164,546
EBITDA - EMERGING BUSINESSES
Online city guides and related (14,307) (14,307) (17,680) (17,680)
Internet commerce (8,734) (7,290) (12,807) (8,292)
Electronic commerce services (8,001) (8,001) 483 483
Electronic retailing - other international (4,213) (4,213) (1,728) (1,728)
Broadcasting (13,563) (13,563) (9,463) (9,463)
Filmed entertainment (c) (5,819) (5,819) 1,735 1,735
Emerging networks (339) (339) (787) (787)
----------- ----------- ----------- -----------
SUB-TOTAL (54,976) (53,532) (40,247) (35,732)
----------- ----------- ----------- -----------
Total $ 159,785 $ 161,229 $ 136,276 $ 128,814
=========== =========== =========== ===========
</TABLE>
(a) Presented as if the acquisitions of Styleclick, Precision Response
Corp., Hotel Reservations Network and October Films and the
consolidation of HOT Germany had occurred at the beginning of the
period presented.
(b) EBITDA is defined as net income plus, (1) provision for income taxes,
(2) interest income and expense, (3) depreciation and amortization, (4)
amortization of cable distribution fees of $8,845 and $6,938, (5)
amortization of non-cash distribution and marketing expense, and
(6) minority interest.
(c) Filmed entertainment classified as an emerging business because of the
start-up nature of USA Films' operations.
<PAGE>
USA NETWORKS, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
UNAUDITED
( $ IN THOUSANDS )
<TABLE>
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30,
PRO FORMA (a) ACTUAL PRO FORMA (a) ACTUAL
---------------- --------------- ----------------- -------------
2000 2000 1999 1999
---------------- --------------- ----------------- -------------
<S> <C> <C> <C> <C>
REVENUES - OPERATING BUSINESSES
Cable and studios $ 1,105,688 $ 1,105,688 $ 955,032 $ 955,032
Electronic retailing - domestic 1,071,203 1,071,203 935,192 935,192
Electronic retailing - Germany 162,220 162,220 116,216 --
Ticketing 395,909 395,909 324,614 324,614
Hotel reservations 227,964 227,964 108,371 70,670
Teleservices 210,023 140,374 153,344 --
Other 1,568 1,568 6,894 6,894
---------------- --------------- ---------------- -------------
SUB-TOTAL 3,174,575 3,104,926 2,599,663 2,292,402
REVENUES - EMERGING BUSINESSES
Online city guides and related 58,776 58,776 22,362 22,362
Internet commerce 19,444 17,555 26,641 21,489
Electronic commerce services 15,634 15,634 14,470 14,470
Broadcasting 13,620 13,620 5,691 5,691
Electronic retailing - other international 10,333 10,333 6,275 6,275
Filmed entertainment (d) 65,548 65,548 56,974 39,687
Emerging networks 12,862 12,862 693 693
---------------- --------------- ---------------- -------------
SUB-TOTAL 196,217 194,328 133,106 110,667
---------------- --------------- ---------------- -------------
Total $ 3,370,792 $ 3,299,254 $ 2,732,770 $ 2,403,070
================ =============== ================ =============
EBITDA - OPERATING BUSINESSES (b)
Cable and studios $ 396,580 $ 396,580 $ 308,024 $ 308,024
Electronic retailing - domestic 161,965 161,965 140,408 140,408
Electronic retailing - Germany 16,713 16,713 9,264 --
Ticketing 79,006 79,006 67,930 67,930
Hotel reservations 35,004 35,004 15,827 10,177
Teleservices 32,508 23,047 20,585 --
Corporate and other (26,181) (37,781) (25,560) (25,560)
---------------- --------------- ---------------- -------------
SUB-TOTAL 695,595 674,534 537,478 500,979
Executive consulting arrangement (c) (11,600)
EBITDA - EMERGING BUSINESSES
Online city guides and related (47,774) (47,774) (40,418) (40,418)
Internet commerce (34,593) (23,628) (35,155) (26,010)
Electronic commerce services (19,847) (19,847) 768 768
Electronic retailing - other international (7,467) (7,467) (3,975) (3,975)
Broadcasting (41,258) (41,258) (30,367) (30,367)
Filmed entertainment (d) (5,971) (5,971) 1,849 1,963
Emerging networks (4,602) (4,602) (1,885) (1,885)
---------------- --------------- ---------------- ------------
SUB-TOTAL (161,512) (150,547) (109,183) (99,924)
---------------- --------------- ---------------- -------------
Total $ 522,483 $ 523,987 $ 427,295 $ 401,055
================ =============== ================= ============
</TABLE>
(a) Presented as if the acquisitions of Styleclick, Precision Response
Corp., Hotel Reservations Network and October Films and the
consolidation of HOT Germany had occurred at the beginning of the
period presented.
(b) EBITDA is defined as net income plus, (1) provision for income taxes,
(2) interest income and expense, (3) depreciation and amortization, (4)
amortization of cable distribution fees of $25,335 and $19,214,
(5) amortization of non-cash distribution and marketing expense, and
(6) minority interest.
(c) As part of a resignation agreement with a senior executive, the company
recorded one-time compensation expense related to a consulting
arrangement.
<PAGE>
USA NETWORKS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
( $ IN THOUSANDS, EXCEPT PER SHARE DATA )
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30,
PRO FORMA ACTUAL(b) PRO FORMA(a)(b) ACTUAL(b)
-------------- -------------- --------------- ---------------
2000 2000 1999 1999
-------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C>
Revenues, net $ 1,115,164 $ 1,115,020 $ 924,946 $ 827,672
Operating costs and expenses:
Costs related to revenues 673,600 673,539 494,728 427,362
Other costs and expenses 281,779 280,252 293,942 271,496
Amortization of non cash distribution and marketing
expense (c) 2,693 2,693 -- --
Amortization of cable distribution fees 8,845 8,845 6,938 6,938
Depreciation and amortization 146,370 141,564 116,526 83,544
-------------- -------------- --------------- ---------------
Total operating costs and expenses 1,113,288 1,106,894 912,134 789,340
-------------- -------------- --------------- ---------------
Operating income 1,876 8,126 12,812 38,332
Interest expense, net (9,617) (9,555) (12,436) (12,222)
Gain on sale of securities -- -- 39,451 39,451
Other, net (e) 69,907 69,907 (3,641) (509)
-------------- -------------- --------------- ---------------
60,290 60,352 23,374 26,720
-------------- -------------- --------------- ---------------
Earnings before income taxes and
minority interest 62,166 68,478 36,186 65,052
Income tax expense (23,034) (23,640) (21,819) (24,947)
Minority interest (58,619) (63,004) (33,889) (47,785)
-------------- -------------- --------------- ---------------
Net loss $ (19,486) $ (18,165) $ (19,522) $ (7,680)
============== ============== =============== ===============
Fully converted net earnings (loss), excluding
one-time charges and non-operating gains $ (17,774) $ (13,133) $ (5,674) $10,541
============== ============== =============== ===============
Weighted average shares 367,799 367,799 357,771 333,426
============== ============== =============== ===============
Weighted average diluted shares 367,799 367,799 357,771 333,426
============== ============== =============== ===============
Weighted average fully converted shares 754,750 754,750 757,291 732,946
============== ============== =============== ===============
Basic and diluted loss per share $ (.05) $ (.05) $ (.05) $ (.02)
============== ============== =============== ===============
Basic and diluted loss per share,
excluding one-time charges and non-operating gains $ (.10) $ (.09) $ (.08) $ (.05)
============== ============== =============== ===============
Fully converted earnings (loss) per share, excluding
one-time charges and non-operating gains $ (.02) $ (.02) $ (.01) $ .01
============== ============== =============== ===============
EBITDA (D) $159,785 $ 161,229 $ 136,276 $ 128,814
============== ============== =============== ===============
</TABLE>
(a) Presented as if the acquisitions of Styleclick, Precision Response Corp.,
Hotel Reservations Network and October Films and the consolidation of HOT
Germany had occurred at the beginning of the period presented.
(b) Earnings (loss) per common share data and shares outstanding retroactively
reflect the impact of two-for-one common stock and Class B common stock
split paid on February 24, 2000.
(c) Amortization of warrants and stock issued in exchange for distribution and
marketing services.
(d) EBITDA is defined as net income plus, (1) provision for income taxes, (2)
interest income and expense, (3) depreciation and amortization, (4)
amortization of cable distribution fees of $8,845 and $6,938, (5)
amortization of non-cash distribution and marketing expense, and
(6) minority interest.
(e) Includes non-operating gain related to Styleclick merger of $104.6 million
and non-operating losses related to equity investments of $30.5 million.
<PAGE>
USA NETWORKS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
( $ IN THOUSANDS, EXCEPT PER SHARE DATA )
<TABLE>
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30,
PRO FORMA (a)(b) ACTUAL (b) PRO FORMA (a)(b) ACTUAL (b)
---------------- ------------- ---------------- -----------
2000 2000 1999 1999
---------------- ------------- ---------------- -----------
<S> <C> <C> <C> <C>
Revenues, net $ 3,370,792 $ 3,299,254 $ 2,732,770 $ 2,403,070
Operating costs and expenses:
Costs related to revenues 2,024,823 1,970,334 1,465,124 1,234,858
Other costs and expenses 823,486 804,933 840,351 767,157
Amortization of non cash distribution and
marketing expense (c) 4,414 4,414 -- --
Amortization of cable distribution fees 25,335 25,335 19,213 19,213
Depreciation and amortization 429,924 380,830 337,449 230,582
-------------- ------------- --------------- -----------
Total operating costs and expenses 3,307,982 3,185,846 2,662,136 2,251,810
-------------- -------------- -------------- ------------
Operating income 62,810 113,408 70,634 151,260
Interest expense, net (27,696) (26,956) (43,759) (36,936)
Gain on sale of securities -- -- 89,721 89,721
Other, net (e) 67,360 67,362 (5,726) 1,986
-------------- -------------- -------------- ------------
39,664 40,406 40,236 54,771
-------------- -------------- -------------- ------------
Earnings before income taxes and
minority interest 102,474 153,814 110,870 206,031
Income tax expense (74,993) (74,139) (56,069) (65,302)
Minority interest (114,179) (145,299) (111,683) (150,582)
-------------- -------------- -------------- ------------
Net loss $ (86,698) $ (65,624) $ (56,883) $ (9,853)
============== ============== ============== ============
Fully converted net earnings (loss), excluding
one-time charges and non-operating gains $ (27,411) $ 3,580 $ (26,800) $ 29,385
============== ============== ============== ============
Weighted average shares 363,980 355,184 349,833 324,842
============== ============== ============== ============
Weighted average diluted shares 363,980 355,184 349,833 324,842
============== ============== ============== ============
Weighted average fully converted shares 752,756 743,960 740,561 715,570
============== ============== ============== ============
Basic and diluted loss per share $ (.24) $ (.18) $ (.16) $ (.03)
============== ============== ============== ============
Basic and diluted loss per share, excluding
one-time charges and non-operating gains $ (.27) $ (.22) $ (.22) $ (.09)
============== ============== ============== ============
Fully converted earnings per share, excluding
one-time charges and non-operating gains $ (.04) $ -- $ (.04) $ .04
============== ============== ============== ============
EBITDA (d) $ 522,483 $ 523,987 $ 427,295 $ 401,055
============== ============== ============== ============
</TABLE>
(a) Presented as if the acquisitions of Styleclick, Precision Response Corp.,
Hotel Reservations Network and October Films and the consolidation of HOT
Germany had occurred at the beginning of the period presented.
(b) Earnings (loss) per common share data and shares outstanding retroactively
reflect the impact of two-for-one common stock and Class B common stock
split paid on February 24, 2000.
(c) Amortization of warrants and stock issued in exchange for distribution and
marketing services.
(d) EBITDA is defined as net income plus, (1) provision for income taxes, (2)
interest income and expense, (3) depreciation and amortization, (4)
amortization of cable distribution fees of $25,335 and $19,214, (5)
amortization of non-cash distribution and marketing expense, and
(6) minority interest.
(e) Includes non-operating gain related to Styleclick merger of $104.6 million
and non-operating losses related to equity investments of $30.5 million.
<PAGE>
USA NETWORKS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
UNAUDITED
( $ IN THOUSANDS, EXCEPT PER SHARE DATA )
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30,
PRO FORMA ACTUAL (b) PRO FORMA (a)(b) ACTUAL (b)
----------- ----------- ----------------- ------------
2000 2000 1999 1999
----------- ----------- ----------------- ------------
<S> <C> <C> <C> <C>
RECONCILIATION OF FULLY CONVERTED NET EARNINGS:
Net earnings (loss) $ (19,486) $ (18,165) $ (19,522) $ (7,680)
Impact of one-time charges and non-operating
gains, net of tax (45,029) (45,029) (22,882) (22,882)
--------- --------- --------- ---------
Net loss, excluding one-time charges and non-
operating gains (64,515) (63,194) (42,404) (30,562)
Impact of minority interest, net of tax 46,741 50,061 36,730 41,103
--------- --------- --------- ---------
FULLY CONVERTED NET EARNINGS (LOSS), EXCLUDING ONE-TIME
CHARGES AND NON-OPERATING GAINS $ (17,774) $ (13,133) $ (5,674) $ 10,541
========= ========= ========= =========
Weighted average shares 367,799 367,799 357,771 333,426
========= ========= ========= =========
Weighted average diluted shares 367,799 367,799 357,771 333,426
========= ========= ========= =========
Weighted average fully converted shares 754,750 754,750 757,291 732,946
========= ========= ========= =========
Basic and diluted earnings (loss) per share, excluding
one-time charges and non-operating gains $ (.09) $ (.09) $ (.08) $ (.05)
========= ========= ========= =========
Fully converted earnings per share, excluding one-time
charges and non-operating gains $ (.02) $ (.02) $ (.01) $ .01
========= ========= ========= =========
RECONCILIATION OF FULLY CONVERTED CASH NET INCOME:
Net earnings (loss) $ (19,486) $ (18,165) $ (19,522) $ (7,680)
Impact of minority interest, net of tax 46,741 50,061 36,730 41,103
Impact of goodwill amortization, net of tax and
minority interest 91,948 91,905 75,914 36,317
--------- --------- --------- ---------
Cash net income 119,203 123,801 93,122 69,740
Impact of one-time charges and non-operating gains,
net of tax (45,029) (45,029) (22,882) (22,882)
--------- --------- --------- ---------
FULLY CONVERTED CASH NET INCOME, EXCLUDING ONE-TIME
CHARGES AND NON-OPERATING GAINS $ 74,174 $ 78,772 $ 70,240 $ 46,858
========= ========= ========= =========
</TABLE>
(a) Presented as if the acquisitions of Styleclick, Precision Response Corp.,
Hotel Reservations Network and October Films and the consolidation of HOT
Germany had occurred at the beginning of the period presented.
(b) Earnings (loss) per common share data and shares outstanding retroactively
reflect the impact of two-for-one common stock and Class B common stock
split paid on February 24, 2000.
<PAGE>
USA NETWORKS, INC. AND SUBSIDIARIES
Supplemental Information
Unaudited
( $ IN THOUSANDS, EXCEPT PER SHARE DATA )
<TABLE>
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30,
PRO FORMA (a)(b) ACTUAL (b) PRO FORMA (a)(b) ACTUAL (b)
----------------- ---------- ----------------- ----------
2000 2000 1999 1999
----------------- ---------- ----------------- ----------
<S> <C> <C> <C> <C>
RECONCILIATION OF FULLY CONVERTED NET EARNINGS:
Net earnings (loss) $ (86,698) $ (65,624) $ (57,223) $ (9,853)
Impact of one-time charges and non-operating gains, net of tax (38,301) (38,301) (52,038) (52,038)
--------- --------- --------- ---------
Net loss, excluding one-time charges and non-operating gains (124,999) (103,925) (108,921) (61,891)
Impact of minority interest, net of tax 97,589 107,505 82,121 91,276
--------- --------- --------- ---------
FULLY CONVERTED NET EARNINGS (LOSS), EXCLUDING ONE-TIME
CHARGES AND NON-OPERATING GAINS $ (27,411) $ 3,580 $ (26,800) $ 29,385
========= ========= ========= =========
Weighted average shares 363,980 355,184 349,833 324,842
========= ========= ========= =========
Weighted average diluted shares 363,980 355,184 349,833 324,842
========= ========= ========= =========
Weighted average fully converted shares 752,756 743,960 740,561 715,570
========= ========= ========= =========
Basic and diluted loss per share, excluding one-time charges and
non-operating gains $ (.27) $ (.22) $ (.22) $ (.09)
========= ========= ========= =========
Fully converted earnings per share, excluding one-time charges
and non-operating gains $ (.04) $ .00 $ (.04) $ .04
========= ========= ========= =========
</TABLE>
(a) Presented as if the acquisitions of Styleclick, Precision Response
Corp., Hotel Reservations Network and October Films and the
consolidation of HOT Germany had occurred at the beginning of the
period presented.
(b) Earnings (loss) per common share data and shares outstanding
retroactively reflect the impact of two-for-one common stock and Class
B common stock split paid on February 24, 2000.
