Endeavor(EDR) - 2021 Q3 - Quarterly Report

Financial Performance - Revenue for the three months ended September 30, 2021, was $1,391.3 million, a 61.0% increase from $864.5 million for the same period in 2020[19] - Net income attributable to Endeavor Group Holdings, Inc. for the three months ended September 30, 2021, was $42.5 million, compared to a net loss of $21.8 million for the same period in 2020[22] - Total revenue for the nine months ended September 30, 2021 was $3.57 billion, an increase from $2.52 billion in the same period of 2020[124] - Media rights revenue for the nine months ended September 30, 2021 was $1.29 billion, compared to $920.77 million for the same period in 2020[125] - The Company recorded a consolidated net income of $63.6 million for the three months ended September 30, 2021, with a basic net income per share of $0.16[110] Assets and Liabilities - Total current assets increased to $3,310,100, up from $2,065,208, representing a growth of 60.4% year-over-year[17] - Total assets reached $10,730,858, up from $9,633,634, indicating an increase of 11.4%[17] - Total liabilities decreased slightly to $8,476,176 from $8,478,885, a reduction of 0.02%[17] - Long-term debt decreased to $5,032,543 from $5,712,834, a decline of 11.9%[17] - Total shareholders' equity increased to $2,045,792 from $963,976, representing a growth of 112.5%[17] Cash Flow and Liquidity - Cash and cash equivalents rose to $1,028,709 from $1,008,485, showing a slight increase of 2.2%[17] - Operating cash flows provided net cash of $188.1 million for the nine months ended September 30, 2021, compared to $106.0 million for the same period in 2020, indicating a significant increase in operational efficiency[37] - Cash, cash equivalents, and restricted cash at the end of the period were $1.28 billion, up from $1.14 billion at the end of September 2020, showing a 12% increase in liquidity[37] Operating Expenses - Total operating expenses for the three months ended September 30, 2021, were $1,254.0 million, up from $797.9 million in the same period of 2020, indicating increased operational costs[19] - Direct operating costs for the nine months ended September 30, 2021, were $1,790.6 million, compared to $1,276.0 million for the same period in 2020, reflecting a 40.0% increase[19] - Selling, general and administrative expenses increased by $201.7 million, or 63.2%, to $520.6 million for the three months ended September 30, 2021, driven by higher equity-based compensation and personnel costs[177] Acquisitions and Investments - The company raised $1.89 billion in net proceeds from its IPO and private placement, which will be used for strategic acquisitions and operational growth[41] - The Company acquired On Location Events, LLC for a total consideration of $441.1 million, including cash of $366.4 million and rollover equity valued at $65.2 million[61] - The company made acquisitions totaling $258.5 million during the nine months ended September 30, 2021, compared to $314.7 million in the prior year, indicating a strategic focus on selective growth[37] Equity and Shareholder Information - Basic and diluted income per share for Class A common stock was $0.16 for the three months ended September 30, 2021, while the previous year showed a loss of $1.07[19] - The weighted average number of diluted shares used in computing income per share was 435.9 million for the three months ended September 30, 2021[19] - The total unrecognized equity-based compensation related to stock options and restricted stock units was $166.8 million as of September 30, 2021, expected to be recognized over approximately 1.93 years[116] COVID-19 Impact - The COVID-19 pandemic has significantly impacted the company's cash flows, particularly due to the lack of live events and restrictions on gatherings[54] - The company has made estimates regarding the potential impacts of COVID-19 on its financial condition, which may change and could be material[54] - The company experienced significant adverse impacts from COVID-19, including the cancellation of events and reduced corporate spending, affecting all segments[160] Legal and Compliance Matters - The company has ongoing legal proceedings that could materially impact its financial condition, including claims totaling approximately EUR 2.1 billion related to alleged anti-competitive practices[134] - The company is implementing additional procedures for compliance with public company standards, incurring non-recurring costs related to this transition[168]