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Endeavor’s IPO filing Thursday offers a hard look at the company’s financial performance during the past three years during a period of rapid growth for the company that’s home to UFC, WME, Professional Bull Riders and a clutch of other assets.
Endeavor is generating solid free cash flow from operations and healthy adjusted earnings for a company with its revenue base. But the spree of investments, acquisitions and restructuring over the past five years has led to a net income loss of $98 million in 2016 and $173 million in 2017. Net income was positive in 2018 ($231 million), thanks mostly to a nearly $400 million gain on the sale of the IMG College sports marketing unit.
Earnings - Events - Revenue - Year - Acquisition
Adjusted earnings, balanced for one-time events, were $355.1 million in 2016, $516.1 million in 2017 and $551 million in 2018, on revenue that jumped from $2.3 billion in 2016 to $3.6 billion last year. The acquisition of MMA giant UFC for $4 billion in August 2016 greatly expanded Endeavor’s earnings power. But it also added to the company’s debt load. At present, Endeavor is shouldering about $4.6 billion in debt and $500,000 in cash on hand.
The prospectus filing signals the start of the company’s roadshow with Wall Streeters and investment firms to generate enthusiasm for the IPO. There’s still no timetable for the IPO date. Endeavor plans to trade on the New York Stock Exchange under the EDR symbol.
Endeavor - Shareholders - % - Power - Company
Endeavor will have preferred shareholders that control more than 50% of the voting power in the company, which gives them a tight grip on the board of directors and management decisions — similar to the Redstone family’s control of CBS and Viacom and the Roberts family’s control of Comcast. Endeavor CEO Ari Emanuel and chairman Patrick Whitesell are among those preferred holders, along with private equity giant...
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