OWNERSHIP:
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AMERICA
ONLINE INC., 66.70% (PRX 06-26-2000) |
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T
ROWE PRICE ASSOCIATES INC.,10.10% (PRX 06-26-2000) |
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JANUS
CAPITAL CORP., 14.00% (PRX 06-26-2000) |
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PUTNAMINVESTMENT
MANAGEMENT, 11.80% (PRX 06-26-2000) |
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MONTAG
& CALDWELL INC.,12.80% (PRX 06-26-2000) |
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NEWS
AMERICA INC., 33.30% (PRX 06-26-2000) |
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FIVE YEAR SUMMARY |
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YEAR |
SALES |
NET INCOME |
EPS |
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2000 |
1,420,011,000 |
116,751,000 |
1.86 |
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1999 |
1,221,863,000 |
72,872,000 |
1.20 |
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1998 |
908,852,000 |
72,562,000 |
1.23 |
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1997 |
673,028,000 |
51,327,000 |
0.89 |
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1996 |
587,299,000 |
46,677,000 |
0.84 |
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5-YEAR GROWTH RATE |
24.6 |
25.7 |
21.9 |
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RATIO ANALYSIS |
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FISCAL YEAR END |
03/31/2000 |
03/31/1999 |
03/31/1998 |
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QUICK
RATIO |
2.16 |
1.98 |
2.85 |
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CURRENT
RATIO |
2.66 |
2.41 |
3.25 |
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SALES/CASH |
4.18 |
3.85 |
2.40 |
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SALES,
GENERAL & ADMIN/SALES |
0.20 |
0.20 |
0.20 |
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RECEIVABLES
TURNOVER |
6.07 |
8.17 |
6.52 |
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RECEIVABLES
DAY SALES |
59.35 |
44.04 |
55.21 |
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INVENTORIES
TURNOVER |
61.78 |
54.61 |
46.31 |
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INVENTORIES
DAY SALES |
5.83 |
6.59 |
7.77 |
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NET
SALES/WORKING CAPITAL |
3.23 |
3.67 |
2.23 |
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NET
SALES/PLANT & EQUIPMENT |
4.97 |
6.74 |
8.65 |
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NET
SALES/CURRENT ASSETS |
2.01 |
2.15 |
1.54 |
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NET
SALES/TOTAL ASSETS |
1.19 |
1.35 |
1.22 |
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NET
SALES/EMPLOYEES |
458,068 |
488,745 |
432,787 |
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TOTAL
LIAB/TOTAL ASSETS |
0.22 |
0.26 |
0.24 |
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TOTAL
LIAB/INVESTED CAPITAL |
0.29 |
0.36 |
0.32 |
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TOTAL
LIAB/COMMON EQUITY |
0.29 |
0.36 |
0.32 |
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TIMES
INTEREST EARNED |
NA |
NA |
NA |
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CURRENT
DEBT/EQUITY |
NA |
NA |
NA |
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LONG
TERM DEBT/EQUITY |
NA |
NA |
NA |
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TOTAL
DEBT/EQUITY |
NA |
NA |
NA |
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TOTAL
ASSETS/EQUITY |
1.29 |
1.36 |
1.32 |
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PRE-TAX
INCOME/NET SALES |
0.12 |
0.10 |
0.12 |
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PRE-TAX
INCOME/TOTAL ASSETS |
0.14 |
0.13 |
0.15 |
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PRE-TAX
INCOME/INVESTED CAP |
0.18 |
0.18 |
0.19 |
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PRE-TAX
INCOME/COMM EQUITY |
0.18 |
0.18 |
0.19 |
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NET
INCOME/NET SALES |
0.08 |
0.06 |
0.08 |
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NET
INCOME/TOTAL ASSETS |
0.10 |
0.08 |
0.10 |
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NET
INCOME/INVESTED CAP |
0.13 |
0.11 |
0.13 |
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NET
INCOME/COMMON EQUITY |
0.13 |
0.11 |
0.13 |
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R
& D/NET SALES |
0.18 |
0.16 |
0.16 |
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R
& D/NET INCOME |
2.23 |
2.73 |
2.01 |
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R
& D/EMPLOYEES |
84,116 |
79,656 |
69,396 |
Advertising Costs
The Company generally expenses advertising costs as incurred,
except for
production costs associated with media campaigns which are
deferred and charged
to expense at the first run of the ad. Cooperative advertising
with distributors
and retailers is accrued when revenue is recognized.
Cooperative advertising
credits are reimbursed when qualifying claims are submitted.
For the fiscal
years ended March 31, 2000, 1999 and 1998, advertising
expenses totaled
approximately $ 87,377,000, $ 72,437,000 and $ 55,090,000,
respectively.
AMERICA ONLINE, INC. ("AOL") AGREEMENT
In November 1999, Electronic Arts Inc., EA.com and AOL entered
into a five year agreement which establishes the basis for EA.com's
production of a games site on the world wide web that will be available to
AOL subscribers and to users of other branded AOL properties. Under this
agreement, EA.com is required to launch its site no later than June 1,
2000, although, under certain circumstances described in the agreement,
this date can be extended to September 1, 2000. If the site is not
launched within the specified time frame, and if prescribed additions to
the site are not achieved within a specified time frame or the site does
not contain content as required under the agreement, then, under certain
circumstances, AOL would have the ability to terminate the agreement.
The Company is required to pay $ 50,000,000 to AOL as a
carriage fee (including certain advertising fees of which $ 604,000 was
expensed for the fiscal year ended March 31, 2000) under the AOL
agreement. Of this amount, $ 25,000,000 was paid upon signing the
agreement and the remainder is due in four equal installments on the first
four anniversaries of the initial payment. Payment of the first annual
installment of $ 6,250,000 will be accelerated to June 1, 2000 since
certain launch requirements will not be met by that date. The Company is
also required to pay to AOL $ 31,000,000 as an advance of a minimum
guaranteed revenue share for revenues generated by subscriptions and other
certain commercial transactions on the EA.com site. Of this amount $
11,000,000 was paid upon signing of the agreement and the remainder is due
in four equal annual installments on the first anniversary of the initial
payment. The fair value of the payments made under the AOL agreement was
determined by an independent valuation and the resulting amounts will be
amortized (beginning with the site launch) over the remaining term of the
five year agreement. Advances of $ 35,395,000 are included in other
long-term assets as of March 31, 2000.
