NEW YORK--(BUSINESS WIRE)--Madison Square Garden Entertainment Corp. (NYSE: MSGE) ("MSG Entertainment") today reported financial results for the fiscal third quarter ended March 31, 2022. While the Company completed the acquisition of MSG Networks on July 9, 2021, MSG Networks' results are included on a combined basis with the Company for all periods presented.
The fiscal 2022 third quarter reflected ongoing momentum in the Company’s live entertainment businesses. Despite the impact of the Omicron variant, which resulted in the postponement of a number of events in the quarter, the Company’s performance venues had a busy concert schedule, while the New York Knicks (“Knicks”) and New York Rangers (“Rangers”) continued their 2021-22 regular seasons at The Garden. Tao Group Hospitality also saw demand improve as the quarter progressed after the Omicron variant impacted its operating momentum early in the fiscal third quarter. Subsequent to the end of the quarter, MSG Networks concluded its full regular season telecast schedules for its five professional sports teams, and with the Rangers currently competing in the first round of the NHL playoffs, is now broadcasting comprehensive coverage of the postseason.
For the fiscal 2022 third quarter, the Company reported revenues of $460.1 million, an increase of $245.8 million as compared with the prior year quarter. In addition, the Company reported operating income of $2.0 million and adjusted operating income of $46.5 million for the fiscal 2022 third quarter, as compared to an operating loss of $38.7 million and adjusted operating income of $20.9 million in the prior year quarter.(1)
Executive Chairman and CEO James L. Dolan said, “We are pleased with the positive momentum we are seeing across our business and are confident that our Company is well positioned to capitalize on the strong demand for live experiences. At the same time, we continue to prepare for the opening of MSG Sphere in Las Vegas in the second half of calendar 2023, which we believe will set the stage for long-term value creation for our shareholders.”
Segment Results for the Three and Nine Months Ended March 31, 2022 and 2021:
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||||||
|
|
March 31, |
|
Change |
|
March 31, |
|
Change |
||||||||||||||||||||
$ millions |
|
|
2022 |
|
|
|
2021 |
|
|
$ |
|
% |
|
|
2022 |
|
|
|
2021 |
|
|
$ |
|
% |
||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Entertainment |
|
$ |
194.6 |
|
|
$ |
31.0 |
|
|
$ |
163.6 |
|
|
NM |
|
$ |
476.4 |
|
|
$ |
51.2 |
|
|
$ |
425.3 |
|
|
NM |
MSG Networks |
|
|
167.6 |
|
|
|
177.9 |
|
|
|
(10.3 |
) |
|
(6)% |
|
|
469.0 |
|
|
|
481.5 |
|
|
|
(12.4 |
) |
|
(3)% |
Tao Group Hospitality |
|
|
108.6 |
|
|
|
12.8 |
|
|
|
95.8 |
|
|
NM |
|
|
345.1 |
|
|
|
30.5 |
|
|
|
314.6 |
|
|
NM |
Other(2) |
|
|
(10.6 |
) |
|
|
(7.3 |
) |
|
|
(3.3 |
) |
|
(46)% |
|
|
(19.5 |
) |
|
|
(9.5 |
) |
|
|
(10.0 |
) |
|
(105)% |
Total Revenues |
|
$ |
460.1 |
|
|
$ |
214.3 |
|
|
$ |
245.8 |
|
|
115% |
|
$ |
1,271.1 |
|
|
$ |
553.6 |
|
|
$ |
717.5 |
|
|
130% |
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Entertainment |
|
$ |
(43.2 |
) |
|
$ |
(80.1 |
) |
|
$ |
36.8 |
|
|
46% |
|
$ |
(168.2 |
) |
|
$ |
(287.8 |
) |
|
$ |
119.6 |
|
|
42% |
MSG Networks |
|
|
45.9 |
|
|
|
69.9 |
|
|
|
(23.9 |
) |
|
(34)% |
|
|
104.3 |
|
|
|
203.5 |
|
|
|
(99.2 |
) |
|
(49)% |
Tao Group Hospitality |
|
|
3.0 |
|
|
|
(9.8 |
) |
|
|
12.8 |
|
|
NM |
|
|
29.8 |
|
|
|
(32.3 |
) |
|
|
62.1 |
|
|
NM |
Other(2) |
|
|
(3.7 |
) |
|
|
(18.7 |
) |
|
|
15.1 |
|
|
80% |
|
|
(11.9 |
) |
|
|
(27.7 |
) |
|
|
15.8 |
|
|
57% |
Total Operating Income (Loss) |
|
$ |
2.0 |
|
|
$ |
(38.7 |
) |
|
$ |
40.8 |
|
|
NM |
|
$ |
(45.9 |
) |
|
$ |
(144.2 |
) |
|
$ |
98.3 |
|
|
68% |
Adjusted Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Entertainment |
|
$ |
(10.7 |
) |
|
$ |
(50.5 |
) |
|
$ |
39.8 |
|
|
79% |
|
$ |
(67.1 |
) |
|
$ |
(163.8 |
) |
|
$ |
96.7 |
|
|
59% |
MSG Networks |
|
|
50.8 |
|
|
|
76.3 |
|
|
|
(25.5 |
) |
|
(33)% |
|
|
150.5 |
|
|
|
224.5 |
|
|
|
(74.0 |
) |
|
(33)% |
Tao Group Hospitality |
|
|
6.5 |
|
|
|
(4.6 |
) |
|
|
11.2 |
|
|
NM |
|
|
50.2 |
|
|
|
(22.2 |
) |
|
|
72.4 |
|
|
NM |
Other(2) |
|
|
(0.2 |
) |
|
|
(0.3 |
) |
|
|
0.1 |
|
|
30% |
|
|
(0.7 |
) |
|
|
(0.8 |
) |
|
|
0.1 |
|
|
10% |
Total Adjusted Operating Income |
|
$ |
46.5 |
|
|
$ |
20.9 |
|
|
$ |
25.6 |
|
|
122% |
|
$ |
132.8 |
|
|
$ |
37.7 |
|
|
$ |
95.2 |
|
|
NM |
Note: Does not foot due to rounding | |||
(1) |
See page 4 of this earnings release for the definition of adjusted operating income (loss) included in the discussion of non-GAAP financial measures. | ||
(2) |
Includes inter-segment eliminations and, for operating income (loss), purchase accounting adjustments. |
For the fiscal 2022 third quarter, the Entertainment segment generated revenues of $194.6 million, an increase of $163.6 million as compared with the prior year period. Revenues related to the Company’s arena license agreements with Madison Square Garden Sports Corp. ("MSG Sports") increased $69.3 million ($18.2 million of which was due to higher arena license fees) due to the Knicks and Rangers playing a combined 38 regular season home games at The Garden without any capacity restrictions in the current year period as compared to the same number of home games with certain capacity restrictions in the prior year period. In addition to the impact from the Knicks and Rangers home games, event-related revenues increased $63.4 million, suite license fee revenues increased $14.7 million and venue-related sponsorship and signage revenues increased $7.8 million, all primarily due to the return of live events at the Company's performance venues during the current year quarter, as compared to no live events held in the prior year period as a result of the COVID-19 pandemic.
Fiscal 2022 third quarter direct operating expenses of $110.7 million increased $86.0 million, as compared with the prior year quarter. Direct operating expenses associated with revenue or profit sharing under the arena license agreements with MSG Sports increased $36.9 million as a result of the elimination of capacity restrictions that were in place during the prior year period. In addition to the impact from the Knicks and Rangers home games, event-related expenses increased $34.0 million primarily due to the return of live events at the Company’s performance venues during the current year quarter. Direct operating expenses associated with the arena license agreements and venue operating costs also increased $7.6 million and $7.6 million, respectively.
Fiscal 2022 third quarter selling, general and administrative expenses of $94.6 million increased $27.3 million, as compared with the prior year quarter. This increase primarily reflected higher employee compensation and related benefits of $30.6 million (including the impact of severance-related costs attributable to separation agreements in the current year period), and higher professional fees of $2.1 million, inclusive of costs for MSG Sphere development, partially offset by lower expenses related to the Company's acquisition of MSG Networks of $9.6 million.
Fiscal 2022 third quarter operating loss improved by $36.8 million to a loss of $43.2 million and adjusted operating loss improved by $39.8 million to a loss of $10.7 million, both as compared with the prior year quarter. The improvements in operating loss and adjusted operating loss were primarily due to the increase in revenues, offset by higher direct operating expenses and selling, general and administrative expenses. The improvement in operating loss was also partially offset by the impact of restructuring charges in the current year period.
For the fiscal 2022 third quarter, the MSG Networks segment generated total revenues of $167.6 million, a decrease of $10.3 million as compared with the prior year period. Affiliation fee revenue decreased $20.6 million, primarily due to the impact of the non-renewal of MSG Networks' carriage agreement with Comcast as of October 1, 2021 and a decrease in subscribers of approximately 7% (excluding the impact of the non-renewal with Comcast). These decreases were partially offset by the absence of net unfavorable affiliate adjustments of approximately $5.8 million recorded in the prior year quarter and the impact of higher affiliation rates.
Fiscal 2022 third quarter advertising revenue increased $9.9 million, as compared with the prior year period, primarily reflecting the impact of higher per-game advertising sales from the telecast of live professional sports programming and, to a lesser extent, an increase in advertising sales related to the Company's non-ratings based advertising initiatives. These increases were partially offset by the impact of fewer live professional sports telecasts as compared with the prior year period.
Fiscal 2022 third quarter direct operating expenses of $87.2 million increased $12.8 million, as compared with the prior year quarter, primarily due to higher rights fees expense of $9.9 million and, to a lesser extent, an increase in other programming and production-related costs of $2.8 million. The increase in rights fees expense was primarily due to the impact of lower media rights fees in the prior year period as a result of fewer NBA and NHL games made available for exclusive broadcast by MSG Networks during the NBA and NHL's shortened 2020-2021 regular seasons and annual contractual rate increases. These increases were partially offset by the impact of the compressed timing of the shortened 2020-21 NBA and NHL regular seasons.
Fiscal 2022 third quarter selling, general and administrative expenses of $32.2 million increased $0.5 million, as compared with the prior year quarter. The increase primarily reflects higher advertising sales commissions of approximately $3.0 million, which are eliminated in consolidation, offset by lower employee compensation and related benefits of approximately $2.3 million, as well as other net decreases.
Fiscal 2022 third quarter operating income of $45.9 million decreased $23.9 million and adjusted operating income of $50.8 million decreased $25.5 million, both as compared with the prior year quarter. The decreases in operating income and adjusted operating income were primarily due to the increase in direct operating expenses and the decrease in revenues.
Tao Group Hospitality
For the fiscal 2022 third quarter, the Tao Group Hospitality segment generated revenues of $108.6 million as compared with $12.8 million in the prior year period. Tao Group Hospitality acquired Hakkasan Group on April 27, 2021 and, as a result, revenues in the current year quarter reflect $47.2 million from Hakkasan Group. The portfolio of venues operated by Tao Group Hospitality prior to the acquisition of Hakkasan Group (which the Company refers to as the “legacy venues”) generated $61.4 million in revenues in the current year quarter as compared with $12.8 million in the prior year period, which primarily reflects the easing of government-mandated capacity restrictions, with Tao Group Hospitality now operating without capacity restrictions in domestic and key international markets.
Fiscal 2022 third quarter direct operating expenses of $63.8 million increased $53.3 million, as compared with the prior year quarter. The current year quarter included $25.4 million in direct operating expenses from Hakkasan Group. In addition, employee compensation and related benefits at legacy venues increased $12.6 million, primarily reflecting a staffing increase following the easing of government-mandated capacity restrictions, while the cost of food, beverage and venue entertainment at legacy venues increased $11.3 million. Rent expense increased $2.7 million, primarily due to rent concessions in the prior year period resulting from the COVID-19 pandemic.
Fiscal 2022 third quarter selling, general and administrative expenses of $40.4 million increased $29.4 million as compared with the prior year quarter. This primarily reflects $14.3 million in selling, general and administrative expenses from Hakkasan Group; a $6.2 million increase in employee compensation and related benefits; a $5.6 million increase in restaurant expenses, as well as supplies, utilities, general liability insurance, pre-opening expenses and repairs and maintenance; and a $2.6 million increase in marketing; partially offset by a $2.3 million decrease in professional fees primarily related to the acquisition of Hakkasan Group.
Fiscal 2022 third quarter operating income increased by $12.8 million to $3.0 million while adjusted operating income increased by $11.2 million to $6.5 million, both as compared with the prior year quarter. The increases in operating income and adjusted operating income were primarily due to the increase in revenues, partially offset by the increase in direct operating expenses and, to a lesser extent, the increase in selling, general and administrative expenses.
About Madison Square Garden Entertainment Corp.
Madison Square Garden Entertainment Corp. (MSG Entertainment) is a leader in live entertainment. The Company presents or hosts a broad array of events in its diverse collection of venues: New York’s Madison Square Garden, Hulu Theater at Madison Square Garden, Radio City Music Hall and Beacon Theatre; and The Chicago Theatre. MSG Entertainment is also building a new state-of-the-art venue in Las Vegas, MSG Sphere at The Venetian. In addition, the Company features the original production – the Christmas Spectacular Starring the Radio City Rockettes – and through Boston Calling Events, produces the Boston Calling Music Festival. The Company’s two regional sports and entertainment networks, MSG Network and MSG+, deliver a wide range of live sports content and other programming. Also under the MSG Entertainment umbrella is Tao Group Hospitality, with entertainment dining and nightlife brands including: Tao, Marquee, Lavo, Beauty & Essex, Cathédrale, Hakkasan and Omnia. More information is available at www.msgentertainment.com.
Non-GAAP Financial Measures
We define adjusted operating income (loss), which is a non-GAAP financial measure, as operating income (loss) before (i) adjustments to remove the impact of non-cash straight-line leasing revenue associated with the arena license agreements with MSG Sports, (ii) depreciation, amortization and impairments of property and equipment, goodwill and other intangible assets, (iii) amortization for capitalized cloud computing arrangement costs, (iv) share-based compensation expense or benefit, (v) restructuring charges or credits, (vi) merger and acquisition-related costs, including litigation expenses, (vii) gains or losses on sales or dispositions of businesses and associated settlements, and (viii) the impact of purchase accounting adjustments related to business acquisitions. We believe that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of the various operating units of our business without regard to the settlement of an obligation that is not expected to be made in cash. We believe that given the length of the arena license agreements and resulting magnitude of the difference in leasing revenue recognized and cash revenue received, the exclusion of non-cash leasing revenue provides investors with a clearer picture of the Company's operating performance. We eliminate merger and acquisition-related costs because the Company does not consider such costs to be indicative of the ongoing operating performance of the Company as they result from an event that is of a non-recurring nature, thereby enhancing comparability.
We believe adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of our business segments and the Company on a consolidated basis. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze our performance. Internally, we use revenues and adjusted operating income (loss) as the most important indicators of our business performance, and evaluate management’s effectiveness with specific reference to these indicators. Adjusted operating income (loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Since adjusted operating income (loss) is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. For a reconciliation of operating income (loss) to adjusted operating income (loss), please see page 6 of this release.
Forward-Looking Statements
This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments and events may differ materially from those in the forward-looking statements as a result of various factors, including financial community and rating agency perceptions of the Company and its business, operations, financial condition and the industries in which it operates, the impact of the COVID-19 pandemic and the factors described in the Company’s filings with the Securities and Exchange Commission, including the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein.
Conference Call Information:
The conference call will be Webcast live today at 10:00 a.m. ET at investor.msgentertainment.com Conference call dial-in number is 833-420-0364 / Conference ID Number 4864015 Conference call replay number is 855-859-2056 / Conference ID Number 4864015 until May 16, 2022
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) |
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
March 31, |
|
March 31, |
||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues |
|
$ |
460,127 |
|
|
$ |
214,318 |
|
|
$ |
1,271,076 |
|
|
$ |
553,616 |
|
Direct operating expenses |
|
|
262,476 |
|
|
|
110,022 |
|
|
|
724,495 |
|
|
|
301,750 |
|
Selling, general and administrative expenses |
|
|
157,598 |
|
|
|
103,425 |
|
|
|
494,714 |
|
|
|
281,100 |
|
Depreciation and amortization |
|
|
28,639 |
|
|
|
39,611 |
|
|
|
88,602 |
|
|
|
93,698 |
|
Impairment and other (gains) losses, net |
|
|
(5,319 |
) |
|
|
— |
|
|
|
(5,480 |
) |
|
|
— |
|
Restructuring charges |
|
|
14,690 |
|
|
|
— |
|
|
|
14,690 |
|
|
|
21,299 |
|
Operating income (loss) |
|
|
2,043 |
|
|
|
(38,740 |
) |
|
|
(45,945 |
) |
|
|
(144,231 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
||||||||
Loss in equity method investments |
|
|
(1,528 |
) |
|
|
(2,314 |
) |
|
|
(4,509 |
) |
|
|
(5,578 |
) |
Interest income |
|
|
774 |
|
|
|
792 |
|
|
|
2,322 |
|
|
|
2,401 |
|
Interest expense |
|
|
(5,831 |
) |
|
|
(6,503 |
) |
|
|
(23,246 |
) |
|
|
(17,038 |
) |
Miscellaneous income (expense), net |
|
|
(8,449 |
) |
|
|
27,483 |
|
|
|
(28,096 |
) |
|
|
53,932 |
|
Loss from operations before income taxes |
|
|
(12,991 |
) |
|
|
(19,282 |
) |
|
|
(99,474 |
) |
|
|
(110,514 |
) |
Income tax benefit (expense) |
|
|
(6,315 |
) |
|
|
(6,556 |
) |
|
|
8,532 |
|
|
|
(15,715 |
) |
Net loss |
|
|
(19,306 |
) |
|
|
(25,838 |
) |
|
|
(90,942 |
) |
|
|
(126,229 |
) |
Less: Net income (loss) attributable to redeemable noncontrolling interests |
|
|
(442 |
) |
|
|
(6,860 |
) |
|
|
4,412 |
|
|
|
(14,091 |
) |
Less: Net loss attributable to nonredeemable noncontrolling interests |
|
|
(1,373 |
) |
|
|
(718 |
) |
|
|
(902 |
) |
|
|
(2,250 |
) |
Net loss attributable to Madison Square Garden Entertainment Corp.’s stockholders |
|
$ |
(17,491 |
) |
|
$ |
(18,260 |
) |
|
$ |
(94,452 |
) |
|
$ |
(109,888 |
) |
Basic and diluted loss per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders |
|
$ |
(0.51 |
) |
|
$ |
(0.79 |
) |
|
$ |
(2.76 |
) |
|
$ |
(3.48 |
) |
Basic and diluted weighted-average number of common shares outstanding |
|
|
34,320 |
|
|
|
34,060 |
|
|
|
34,230 |
|
|
|
34,083 |
|
_________________ | |
Note: |
For all periods presented, the net assets of MSG Networks have been combined with those of the Company at their historical carrying amount. All prior periods balances in these consolidated financial statements (including share activities) have been retrospectively adjusted as if both companies had been operating as a single company. |
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME (LOSS) (Unaudited)
The following is a description of the adjustments to operating income (loss) in arriving at adjusted operating income (loss) as described in this earnings release:
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
March 31, |
|
March 31, |
||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Operating income (loss) |
|
$ |
2,043 |
|
|
$ |
(38,740 |
) |
|
$ |
(45,945 |
) |
|
$ |
(144,231 |
) |
Non-cash portion of arena license fees from MSG Sports |
|
|
(12,073 |
) |
|
|
(7,564 |
) |
|
|
(23,962 |
) |
|
|
(8,740 |
) |
Share-based compensation |
|
|
14,033 |
|
|
|
11,437 |
|
|
|
57,732 |
|
|
|
57,421 |
|
Depreciation and amortization(1) |
|
|
28,639 |
|
|
|
39,611 |
|
|
|
88,602 |
|
|
|
93,698 |
|
Amortization for capitalized cloud computing costs |
|
|
81 |
|
|
|
— |
|
|
|
176 |
|
|
|
— |
|
Merger and acquisition related costs |
|
|
2,760 |
|
|
|
15,269 |
|
|
|
42,283 |
|
|
|
15,481 |
|
Impairment and other (gains) losses, net |
|
|
(5,319 |
) |
|
|
— |
|
|
|
(5,480 |
) |
|
|
— |
|
Restructuring charges |
|
|
14,690 |
|
|
|
— |
|
|
|
14,690 |
|
|
|
21,299 |
|
Other purchase accounting adjustments |
|
|
1,622 |
|
|
|
887 |
|
|
|
4,745 |
|
|
|
2,735 |
|
Adjusted operating income |
|
$ |
46,476 |
|
|
$ |
20,900 |
|
|
$ |
132,841 |
|
|
$ |
37,663 |
|
_________________ | |
Note: |
For all periods presented, the net assets of MSG Networks have been combined with those of the Company at their historical carrying amount. All prior periods balances in these consolidated financial statements (including share activities) have been retrospectively adjusted as if both companies had been operating as a single company. |
(1) |
Includes depreciation and amortization related to purchase accounting adjustments. |
SEGMENT RESULTS (Dollars in thousands) (Unaudited) |
|||||||||||||||||||
BUSINESS SEGMENT RESULTS |
|||||||||||||||||||
|
|
Three Months Ended March 31, 2022 |
|||||||||||||||||
|
|
Entertainment |
|
Networks |
|
Tao Group
|
|
Other(2) |
|
Total |
|||||||||
Revenues |
|
$ |
194,585 |
|
|
$ |
167,569 |
|
$ |
108,572 |
|
|
$ |
(10,599 |
) |
|
$ |
460,127 |
|
Direct operating expenses |
|
|
110,688 |
|
|
|
87,174 |
|
|
63,783 |
|
|
|
831 |
|
|
|
262,476 |
|
Selling, general and administrative expenses |
|
|
94,603 |
|
|
|
32,237 |
|
|
40,376 |
|
|
|
(9,618 |
) |
|
|
157,598 |
|
Depreciation and amortization |
|
|
18,522 |
|
|
|
1,764 |
|
|
6,490 |
|
|
|
1,863 |
|
|
|
28,639 |
|
Impairment and other (gains) loss, net |
|
|
(245 |
) |
|
|
— |
|
|
(5,074 |
) |
|
|
— |
|
|
|
(5,319 |
) |
Restructuring charges |
|
|
14,238 |
|
|
|
452 |
|
|
— |
|
|
|
— |
|
|
|
14,690 |
|
Operating income (loss) |
|
$ |
(43,221 |
) |
|
$ |
45,942 |
|
$ |
2,997 |
|
|
$ |
(3,675 |
) |
|
$ |
2,043 |
|
Reconciliation to adjusted operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-cash portion of arena license fees from MSG Sports |
|
|
(12,073 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(12,073 |
) |
Share-based compensation |
|
|
10,399 |
|
|
|
1,758 |
|
|
1,876 |
|
|
|
— |
|
|
|
14,033 |
|
Depreciation and amortization(1) |
|
|
18,522 |
|
|
|
1,764 |
|
|
6,490 |
|
|
|
3,485 |
|
|
|
30,261 |
|
Amortization for capitalized cloud computing costs |
|
|
38 |
|
|
|
43 |
|
|
— |
|
|
|
— |
|
|
|
81 |
|
Merger and acquisition related costs |
|
|
1,647 |
|
|
|
866 |
|
|
247 |
|
|
|
— |
|
|
|
2,760 |
|
Impairment and other (gains) losses, net |
|
|
(245 |
) |
|
|
— |
|
|
(5,074 |
) |
|
|
— |
|
|
|
(5,319 |
) |
Restructuring charges |
|
|
14,238 |
|
|
|
452 |
|
|
— |
|
|
|
— |
|
|
|
14,690 |
|
Adjusted operating income (loss) |
|
$ |
(10,695 |
) |
|
$ |
50,825 |
|
$ |
6,536 |
|
|
$ |
(190 |
) |
|
$ |
46,476 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Three Months Ended March 31, 2021 |
|||||||||||||||||
|
|
Entertainment |
|
Networks |
|
Tao Group
|
|
Other(2) |
|
Total |
|||||||||
Revenues |
|
$ |
30,957 |
|
|
$ |
177,853 |
|
$ |
12,790 |
|
|
$ |
(7,282 |
) |
|
$ |
214,318 |
|
Direct operating expenses |
|
|
24,644 |
|
|
|
74,392 |
|
|
10,480 |
|
|
|
506 |
|
|
|
110,022 |
|
Selling, general and administrative expenses |
|
|
67,286 |
|
|
|
31,743 |
|
|
11,025 |
|
|
|
(6,629 |
) |
|
|
103,425 |
|
Depreciation and amortization |
|
|
19,081 |
|
|
|
1,833 |
|
|
1,130 |
|
|
|
17,567 |
|
|
|
39,611 |
|
Operating income (loss) |
|
$ |
(80,054 |
) |
|
$ |
69,885 |
|
$ |
(9,845 |
) |
|
$ |
(18,726 |
) |
|
$ |
(38,740 |
) |
Reconciliation to adjusted operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-cash portion of arena license fees from MSG Sports |
|
|
(7,564 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(7,564 |
) |
Share-based compensation |
|
|
6,799 |
|
|
|
3,324 |
|
|
1,314 |
|
|
|
— |
|
|
|
11,437 |
|
Depreciation and amortization(1) |
|
|
19,081 |
|
|
|
1,833 |
|
|
1,130 |
|
|
|
18,454 |
|
|
|
40,498 |
|
Merger and acquisition related costs |
|
|
11,267 |
|
|
|
1,238 |
|
|
2,764 |
|
|
|
— |
|
|
|
15,269 |
|
Adjusted operating income (loss) |
|
$ |
(50,471 |
) |
|
$ |
76,280 |
|
$ |
(4,637 |
) |
|
$ |
(272 |
) |
|
$ |
20,900 |
|
_________________ | ||
(1) |
|
Depreciation and amortization includes other purchase accounting adjustments of $1,622 and $887 for the three months ended March 31, 2022 and 2021, respectively. |
(2) |
|
Includes inter-segment eliminations and, for operating income (loss), purchase accounting adjustments. |
SEGMENT RESULTS (continued) (Dollars in thousands) (Unaudited) |
|||||||||||||||||||
|
|
Nine Months Ended March 31, 2022 |
|||||||||||||||||
|
|
Entertainment |
|
MSG Networks |
|
Tao Group Hospitality |
|
Other(2) |
|
Total |
|||||||||
Revenues |
|
$ |
476,434 |
|
|
$ |
469,023 |
|
$ |
345,122 |
|
|
$ |
(19,503 |
) |
|
$ |
1,271,076 |
|
Direct operating expenses |
|
|
294,333 |
|
|
|
241,521 |
|
|
185,756 |
|
|
|
2,885 |
|
|
|
724,495 |
|
Selling, general and administrative expenses |
|
|
279,081 |
|
|
|
117,404 |
|
|
115,155 |
|
|
|
(16,926 |
) |
|
|
494,714 |
|
Depreciation and amortization |
|
|
57,202 |
|
|
|
5,317 |
|
|
19,111 |
|
|
|
6,972 |
|
|
|
88,602 |
|
Impairment and other (gains) loss, net |
|
|
(245 |
) |
|
|
— |
|
|
(4,699 |
) |
|
|
(536 |
) |
|
|
(5,480 |
) |
Restructuring charges |
|
|
14,238 |
|
|
|
452 |
|
|
— |
|
|
|
— |
|
|
|
14,690 |
|
Operating income (loss) |
|
$ |
(168,175 |
) |
|
$ |
104,329 |
|
$ |
29,799 |
|
|
$ |
(11,898 |
) |
|
$ |
(45,945 |
) |
Reconciliation to adjusted operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-cash portion of arena license fees from MSG Sports |
|
|
(23,962 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(23,962 |
) |
Share-based compensation |
|
|
36,697 |
|
|
|
15,290 |
|
|
5,745 |
|
|
|
— |
|
|
|
57,732 |
|
Depreciation and amortization(1) |
|
|
57,202 |
|
|
|
5,317 |
|
|
19,111 |
|
|
|
11,717 |
|
|
|
93,347 |
|
Amortization for capitalized cloud computing costs |
|
|
45 |
|
|
|
131 |
|
|
— |
|
|
|
— |
|
|
|
176 |
|
Merger and acquisition related costs |
|
|
17,095 |
|
|
|
24,941 |
|
|
247 |
|
|
|
— |
|
|
|
42,283 |
|
Impairment and other (gains) losses, net |
|
|
(245 |
) |
|
|
— |
|
|
(4,699 |
) |
|
|
(536 |
) |
|
|
(5,480 |
) |
Restructuring charges |
|
|
14,238 |
|
|
|
452 |
|
|
— |
|
|
|
— |
|
|
|
14,690 |
|
Adjusted operating income (loss) |
|
$ |
(67,105 |
) |
|
$ |
150,460 |
|
$ |
50,203 |
|
|
$ |
(717 |
) |
|
$ |
132,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Nine Months Ended March 31, 2021 |
|||||||||||||||||
|
|
Entertainment |
|
MSG Networks |
|
Tao Group Hospitality |
|
Other(2) |
|
Total |
|||||||||
Revenues |
|
$ |
51,181 |
|
|
$ |
481,455 |
|
$ |
30,502 |
|
|
$ |
(9,522 |
) |
|
$ |
553,616 |
|
Direct operating expenses |
|
|
71,668 |
|
|
|
196,497 |
|
|
31,288 |
|
|
|
2,297 |
|
|
|
301,750 |
|
Selling, general and administrative expenses |
|
|
185,666 |
|
|
|
75,962 |
|
|
27,759 |
|
|
|
(8,287 |
) |
|
|
281,100 |
|
Depreciation and amortization |
|
|
60,341 |
|
|
|
5,463 |
|
|
3,739 |
|
|
|
24,155 |
|
|
|
93,698 |
|
Restructuring charges |
|
|
21,299 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
21,299 |
|
Operating income (loss) |
|
$ |
(287,793 |
) |
|
$ |
203,533 |
|
$ |
(32,284 |
) |
|
$ |
(27,687 |
) |
|
$ |
(144,231 |
) |
Reconciliation to adjusted operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-cash portion of arena license fees from MSG Sports |
|
|
(8,740 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(8,740 |
) |
Share-based compensation |
|
|
39,606 |
|
|
|
14,217 |
|
|
3,598 |
|
|
|
— |
|
|
|
57,421 |
|
Depreciation and amortization(1) |
|
|
60,341 |
|
|
|
5,463 |
|
|
3,739 |
|
|
|
26,890 |
|
|
|
96,433 |
|
Merger and acquisition related costs |
|
|
11,479 |
|
|
|
1,238 |
|
|
2,764 |
|
|
|
— |
|
|
|
15,481 |
|
Restructuring charges |
|
|
21,299 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
21,299 |
|
Adjusted operating income (loss) |
|
$ |
(163,808 |
) |
|
$ |
224,451 |
|
$ |
(22,183 |
) |
|
$ |
(797 |
) |
|
$ |
37,663 |
|
_________________ | |
Note: |
For all periods presented, the net assets of MSG Networks have been combined with those of the Company at their historical carrying amount. All prior periods balances in these consolidated financial statements (including share activities) have been retrospectively adjusted as if both companies had been operating as a single company. |
(1) |
Depreciation and amortization includes other purchase accounting adjustments of $4,745 and $2,735 for the nine months ended March 31, 2022 and 2021, respectively. |
(2) |
Includes inter-segment eliminations and, for operating income (loss), purchase accounting adjustments. |
CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) |
||||||||
|
|
March 31,
|
|
June 30,
|
||||
ASSETS |
|
|
|
|
||||
Current Assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
999,063 |
|
$ |
1,516,992 |
||
Restricted cash |
|
|
21,690 |
|
|
22,984 |
||
Accounts receivable, net |
|
|
250,853 |
|
|
184,613 |
||
Net related party receivables |
|
|
58,835 |
|
|
31,916 |
||
Prepaid income taxes |
|
|
3,705 |
|
|
12,772 |
||
Prepaid expenses |
|
|
77,257 |
|
|
67,445 |
||
Other current assets |
|
|
46,771 |
|
|
36,014 |
||
Total current assets |
|
|
1,458,174 |
|
|
1,872,736 |
||
Investments in nonconsolidated affiliates |
|
|
44,697 |
|
|
49,221 |
||
Property and equipment, net |
|
|
2,707,193 |
|
|
2,156,292 |
||
Right-of-use lease assets |
|
|
462,479 |
|
|
280,579 |
||
Amortizable intangible assets, net |
|
|
177,069 |
|
|
198,274 |
||
Indefinite-lived intangible assets |
|
|
63,801 |
|
|
63,801 |
||
Goodwill |
|
|
500,181 |
|
|
502,195 |
||
Other assets |
|
|
166,825 |
|
|
166,781 |
||
Total assets |
|
$ |
5,580,419 |
|
$ |
5,289,879 |
_________________ | |
Note: |
For all periods presented, the net assets of MSG Networks have been combined with those of the Company at their historical carrying amount. All prior periods balances in these consolidated financial statements (including share activities) have been retrospectively adjusted as if both companies had been operating as a single company. |
CONSOLIDATED BALANCE SHEETS (continued) (In thousands, except per share data) (Unaudited) |
||||||||
|
|
March 31,
|
|
June 30,
|
||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY |
|
|
|
|
||||
Current Liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
40,380 |
|
|
$ |
26,644 |
|
Net related party payables, current |
|
|
76,075 |
|
|
|
23,173 |
|
Current portion of long-term debt, net of deferred financing costs |
|
|
65,989 |
|
|
|
53,973 |
|
Income taxes payable |
|
|
— |
|
|
|
2,527 |
|
Accrued liabilities: |
|
|
|
|
||||
Employee related costs |
|
|
95,185 |
|
|
|
91,853 |
|
Other accrued liabilities |
|
|
310,030 |
|
|
|
210,749 |
|
Operating lease liabilities, current |
|
|
67,012 |
|
|
|
73,423 |
|
Collections due to promoters |
|
|
46,744 |
|
|
|
37,877 |
|
Deferred revenue |
|
|
263,494 |
|
|
|
209,651 |
|
Total current liabilities |
|
|
964,909 |
|
|
|
729,870 |
|
Long-term debt, net of deferred financing costs |
|
|
1,584,072 |
|
|
|
1,650,628 |
|
Operating lease liabilities, noncurrent |
|
|
440,319 |
|
|
|
233,556 |
|
Defined benefit and other postretirement obligations |
|
|
51,424 |
|
|
|
54,179 |
|
Other employee related costs |
|
|
18,059 |
|
|
|
21,193 |
|
Collections due to promoters, noncurrent |
|
|
— |
|
|
|
6,625 |
|
Deferred tax liabilities, net |
|
|
185,481 |
|
|
|
200,325 |
|
Other liabilities |
|
|
76,755 |
|
|
|
75,263 |
|
Total liabilities |
|
|
3,321,019 |
|
|
|
2,971,639 |
|
Redeemable noncontrolling interests |
|
|
137,778 |
|
|
|
137,834 |
|
Madison Square Garden Entertainment Corp. Stockholders’ Equity: |
|
|
|
|
||||
Class A Common stock, par value $0.01, 120,000 shares authorized; 27,341 and 27,093 shares outstanding as of March 31, 2022 and June 30, 2021, respectively |
|
|
273 |
|
|
|
271 |
|
Class B Common stock, par value $0.01, 30,000 shares authorized; 6,867 shares outstanding as of March 31, 2022 and June 30, 2021 |
|
|
69 |
|
|
|
69 |
|
Preferred stock, par value $0.01, 15,000 shares authorized; none outstanding as of March 31, 2022 and June 30, 2021 |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
2,334,271 |
|
|
|
2,294,775 |
|
Accumulated deficit |
|
|
(190,793 |
) |
|
|
(96,341 |
) |
Accumulated other comprehensive loss |
|
|
(37,010 |
) |
|
|
(30,272 |
) |
Total Madison Square Garden Entertainment Corp. stockholders’ equity |
|
|
2,106,810 |
|
|
|
2,168,502 |
|
Nonredeemable noncontrolling interests |
|
|
14,812 |
|
|
|
11,904 |
|
Total equity |
|
|
2,121,622 |
|
|
|
2,180,406 |
|
Total liabilities, redeemable noncontrolling interests and equity |
|
$ |
5,580,419 |
|
|
$ |
5,289,879 |
_________________ | |
Note: |
For all periods presented, the net assets of MSG Networks have been combined with those of the Company at their historical carrying amount. All prior periods balances in these consolidated financial statements (including share activities) have been retrospectively adjusted as if both companies had been operating as a single company. |
SELECTED CASH FLOW INFORMATION (Dollars in thousands) (Unaudited) |
||||||||
|
|
Nine Months Ended |
||||||
|
|
March 31, |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
Net cash provided by (used in) operating activities |
|
$ |
106,201 |
|
|
$ |
(114,116 |
) |
Net cash (used in) provided by investing activities |
|
|
(547,926 |
) |
|
|
21,834 |
|
Net cash (used in) provided by financing activities |
|
|
(77,520 |
) |
|
|
589,598 |
|
Effect of exchange rates on cash, cash equivalents and restricted cash |
|
|
22 |
|
|
|
7,918 |
|
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
|
(519,223 |
) |
|
|
505,234 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
1,539,976 |
|
|
|
1,121,141 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
1,020,753 |
|
|
$ |
1,626,375 |
|
_________________ | |
Note: |
For all periods presented, the net assets of MSG Networks have been combined with those of the Company at their historical carrying amount. All prior periods balances in these consolidated financial statements (including share activities) have been retrospectively adjusted as if both companies had been operating as a single company. |
НЬЮ-ЙОРК - (ДЕЛОВАЯ ТЕЛЕГРАММА) - Madison Square Garden Entertainment Corp. (NYSE: MSGE) ("MSG Entertainment") сегодня сообщила о финансовых результатах за третий финансовый квартал, закончившийся 31 марта 2022 года. В то время как Компания завершила приобретение MSG Networks 9 июля 2021 года, результаты MSG Networks включены на объединенной основе с Компанией за все представленные периоды.
Третий квартал 2022 финансового года отразил сохраняющуюся динамику в сфере развлечений Компании. Несмотря на влияние варианта Omicron, который привел к переносу ряда мероприятий в квартале, концертные площадки компании имели плотный концертный график, в то время как “Нью-Йорк Никс” (“Никс”) и "Нью-Йорк Рейнджерс" ("Рейнджерс") продолжили свои регулярные сезоны 2021-22 годов в The Garden. Tao Group Hospitality также отметила улучшение спроса по мере продвижения квартала после того, как вариант Omicron повлиял на ее операционную динамику в начале третьего финансового квартала. После окончания квартала MSG Networks завершила полное расписание телетрансляций регулярного сезона для своих пяти профессиональных спортивных команд и, поскольку "Рейнджерс" в настоящее время соревнуются в первом раунде плей-офф НХЛ, теперь транслирует всестороннее освещение послесезонного периода.
За третий квартал 2022 финансового года Компания сообщила о выручке в размере 460,1 миллиона долларов, увеличившись на 245,8 миллиона долларов по сравнению с предыдущим кварталом. Кроме того, Компания сообщила об операционной прибыли в размере 2,0 млн долларов и скорректированной операционной прибыли в размере 46,5 млн долларов за третий квартал 2022 финансового года по сравнению с операционным убытком в размере 38,7 млн долларов и скорректированной операционной прибылью в размере 20,9 млн долларов в предыдущем квартале.(1)
Исполнительный председатель и главный исполнительный директор Джеймс Л. Долан сказал: “Мы довольны позитивной динамикой, которую мы наблюдаем в нашем бизнесе, и уверены, что наша компания имеет хорошие возможности извлечь выгоду из высокого спроса на живые впечатления. В то же время мы продолжаем готовиться к открытию MSG Sphere в Лас-Вегасе во второй половине 2023 календарного года, что, по нашему мнению, заложит основу для долгосрочного создания стоимости для наших акционеров”.
Результаты сегмента за три и девять месяцев, закончившихся 31 марта 2022 и 2021 годов:
|
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Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||||||
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March 31, |
|
Change |
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March 31, |
|
Change |
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$ millions |
|
|
2022 |
|
|
|
2021 |
|
|
$ |
|
% |
|
|
2022 |
|
|
|
2021 |
|
|
$ |
|
% |
||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Entertainment |
|
$ |
194.6 |
|
|
$ |
31.0 |
|
|
$ |
163.6 |
|
|
NM |
|
$ |
476.4 |
|
|
$ |
51.2 |
|
|
$ |
425.3 |
|
|
NM |
MSG Networks |
|
|
167.6 |
|
|
|
177.9 |
|
|
|
(10.3 |
) |
|
(6)% |
|
|
469.0 |
|
|
|
481.5 |
|
|
|
(12.4 |
) |
|
(3)% |
Tao Group Hospitality |
|
|
108.6 |
|
|
|
12.8 |
|
|
|
95.8 |
|
|
NM |
|
|
345.1 |
|
|
|
30.5 |
|
|
|
314.6 |
|
|
NM |
Other(2) |
|
|
(10.6 |
) |
|
|
(7.3 |
) |
|
|
(3.3 |
) |
|
(46)% |
|
|
(19.5 |
) |
|
|
(9.5 |
) |
|
|
(10.0 |
) |
|
(105)% |
Total Revenues |
|
$ |
460.1 |
|
|
$ |
214.3 |
|
|
$ |
245.8 |
|
|
115% |
|
$ |
1,271.1 |
|
|
$ |
553.6 |
|
|
$ |
717.5 |
|
|
130% |
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Entertainment |
|
$ |
(43.2 |
) |
|
$ |
(80.1 |
) |
|
$ |
36.8 |
|
|
46% |
|
$ |
(168.2 |
) |
|
$ |
(287.8 |
) |
|
$ |
119.6 |
|
|
42% |
MSG Networks |
|
|
45.9 |
|
|
|
69.9 |
|
|
|
(23.9 |
) |
|
(34)% |
|
|
104.3 |
|
|
|
203.5 |
|
|
|
(99.2 |
) |
|
(49)% |
Tao Group Hospitality |
|
|
3.0 |
|
|
|
(9.8 |
) |
|
|
12.8 |
|
|
NM |
|
|
29.8 |
|
|
|
(32.3 |
) |
|
|
62.1 |
|
|
NM |
Other(2) |
|
|
(3.7 |
) |
|
|
(18.7 |
) |
|
|
15.1 |
|
|
80% |
|
|
(11.9 |
) |
|
|
(27.7 |
) |
|
|
15.8 |
|
|
57% |
Total Operating Income (Loss) |
|
$ |
2.0 |
|
|
$ |
(38.7 |
) |
|
$ |
40.8 |
|
|
NM |
|
$ |
(45.9 |
) |
|
$ |
(144.2 |
) |
|
$ |
98.3 |
|
|
68% |
Adjusted Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Entertainment |
|
$ |
(10.7 |
) |
|
$ |
(50.5 |
) |
|
$ |
39.8 |
|
|
79% |
|
$ |
(67.1 |
) |
|
$ |
(163.8 |
) |
|
$ |
96.7 |
|
|
59% |
MSG Networks |
|
|
50.8 |
|
|
|
76.3 |
|
|
|
(25.5 |
) |
|
(33)% |
|
|
150.5 |
|
|
|
224.5 |
|
|
|
(74.0 |
) |
|
(33)% |
Tao Group Hospitality |
|
|
6.5 |
|
|
|
(4.6 |
) |
|
|
11.2 |
|
|
NM |
|
|
50.2 |
|
|
|
(22.2 |
) |
|
|
72.4 |
|
|
NM |
Other(2) |
|
|
(0.2 |
) |
|
|
(0.3 |
) |
|
|
0.1 |
|
|
30% |
|
|
(0.7 |
) |
|
|
(0.8 |
) |
|
|
0.1 |
|
|
10% |
Total Adjusted Operating Income |
|
$ |
46.5 |
|
|
$ |
20.9 |
|
|
$ |
25.6 |
|
|
122% |
|
$ |
132.8 |
|
|
$ |
37.7 |
|
|
$ |
95.2 |
|
|
NM |
Note: Does not foot due to rounding | |||
(1) |
See page 4 of this earnings release for the definition of adjusted operating income (loss) included in the discussion of non-GAAP financial measures. | ||
(2) |
Includes inter-segment eliminations and, for operating income (loss), purchase accounting adjustments. |
За третий квартал 2022 финансового года выручка развлекательного сегмента составила 194,6 миллиона долларов, что на 163,6 миллиона долларов больше, чем за аналогичный период предыдущего года. Доходы, связанные с лицензионными соглашениями Компании на арену с Madison Square Garden Sports Corp. ("MSG Sports"), увеличились на 69,3 миллиона долларов (18,2 миллиона долларов из которых были связаны с более высокими лицензионными сборами за арену) из-за того, что "Никс" и "Рейнджерс" провели 38 домашних матчей регулярного сезона на "Гарден" без каких-либо ограничений по вместимости в текущем году по сравнению с тем же количеством домашних игр с определенными ограничениями вместимости в предыдущем году. В дополнение к влиянию домашних игр "Никс" и "Рейнджерс" доходы, связанные с мероприятиями, увеличились на 63,4 миллиона долларов, доходы от лицензионных сборов выросли на 14,7 миллиона долларов, а доходы от спонсорства и вывесок, связанные с местом проведения, увеличились на 7,8 миллиона долларов, и все это в основном из-за возвращения прямых трансляций на концертных площадках Компании во время квартал текущего года по сравнению с отсутствием прямых трансляций, проведенных в предыдущем году в результате пандемии COVID-19.
Прямые операционные расходы за третий квартал 2022 финансового года в размере 110,7 млн долларов увеличились на 86,0 млн долларов по сравнению с предыдущим кварталом. Прямые операционные расходы, связанные с распределением доходов или прибыли в соответствии с лицензионными соглашениями на арену с MSG Sports, увеличились на 36,9 млн. долларов США в результате устранения ограничений на пропускную способность, действовавших в течение предыдущего года. В дополнение к влиянию домашних игр "Никс" и "Рейнджерс" расходы, связанные с мероприятиями, увеличились на 34,0 миллиона долларов, главным образом из-за возвращения прямых трансляций на концертных площадках Компании в течение квартала текущего года. Прямые операционные расходы, связанные с лицензионными соглашениями на арену, и эксплуатационные расходы на арену также увеличились на 7,6 млн и 7,6 млн долларов соответственно.
В третьем квартале 2022 финансового года коммерческие, общие и административные расходы в размере 94,6 млн долларов увеличились на 27,3 млн долларов по сравнению с предыдущим кварталом. Это увеличение в первую очередь отражает более высокую компенсацию сотрудникам и связанные с ней льготы в размере 30,6 млн долларов США (включая влияние расходов, связанных с выходным пособием, связанных с соглашениями о прекращении службы в текущем году), а также более высокие профессиональные гонорары в размере 2,1 млн долларов США, включая расходы на развитие сферы MSG, частично компенсируемые более низкими расходами, связанными с Компаниейприобретение MSG Networks за 9,6 млн. долл.
Операционный убыток за третий квартал 2022 финансового года увеличился на 36,8 млн долларов до убытка в 43,2 млн долларов, а скорректированный операционный убыток увеличился на 39,8 млн долларов до убытка в 10,7 млн долларов по сравнению с предыдущим кварталом. Улучшение операционных убытков и скорректированных операционных убытков было в основном обусловлено увеличением выручки, компенсированным увеличением прямых операционных расходов и продаж, общих и административных расходов. Увеличение операционных убытков также было частично компенсировано влиянием расходов на реструктуризацию в текущем году.
За третий квартал 2022 финансового года сегмент MSG Networks получил общую выручку в размере 167,6 млн долларов, что на 10,3 млн долларов меньше, чем за аналогичный период предыдущего года. Выручка от членских взносов снизилась на 20,6 млн долларов, в основном из-за последствий непродления соглашения о перевозке MSG Networks с Comcast с 1 октября 2021 года и сокращения числа подписчиков примерно на 7% (без учета влияния непродления с Comcast). Это снижение было частично компенсировано отсутствием чистых неблагоприятных корректировок для аффилированных лиц в размере примерно 5,8 млн. долларов США, зарегистрированных в предыдущем квартале, и влиянием более высоких показателей аффилированности.
Выручка от рекламы в третьем квартале 2022 финансового года увеличилась на 9,9 млн долларов по сравнению с аналогичным периодом предыдущего года, что в первую очередь отражает влияние увеличения продаж рекламы за игру в результате трансляции профессиональных спортивных программ в прямом эфире и, в меньшей степени, увеличения продаж рекламы, связанной с рекламой Компании, не основанной на рейтингах. инициативы. Это увеличение было частично компенсировано меньшим количеством прямых трансляций профессиональных спортивных трансляций по сравнению с предыдущим годом.
Прямые операционные расходы за третий квартал 2022 финансового года в размере 87,2 млн долларов увеличились на 12,8 млн долларов по сравнению с предыдущим кварталом, в основном из-за увеличения расходов на оплату прав на 9,9 млн долларов и, в меньшей степени, увеличения других расходов, связанных с программированием и производством, на 2,8 млн долларов. Увеличение расходов на гонорары за права было вызвано главным образом влиянием более низких сборов за права на медиа в предыдущем году в результате уменьшения количества игр НБА и НХЛ, доступных для эксклюзивной трансляции MSG Networks во время сокращенных регулярных сезонов НБА и НХЛ 2020-2021 годов, и ежегодного повышения ставок по контрактам. Это увеличение было частично компенсировано влиянием сжатых сроков проведения сокращенных регулярных сезонов НБА и НХЛ 2020-21 годов.
В третьем квартале 2022 финансового года коммерческие, общие и административные расходы в размере 32,2 млн долларов увеличились на 0,5 млн долларов по сравнению с предыдущим кварталом. Увеличение в первую очередь отражает более высокие комиссионные за продажу рекламы в размере примерно 3,0 млн. долларов США, которые исключаются при консолидации, компенсируются снижением вознаграждения сотрудников и связанных с ним льгот примерно на 2,3 млн. долларов США, а также другими чистыми сокращениями.
Операционная прибыль за третий квартал 2022 финансового года в размере 45,9 млн долларов снизилась на 23,9 млн долларов, а скорректированная операционная прибыль в размере 50,8 млн долларов снизилась на 25,5 млн долларов по сравнению с предыдущим кварталом. Снижение операционных доходов и скорректированных операционных доходов было в основном обусловлено увеличением прямых операционных расходов и снижением выручки.
Гостеприимство Tao Group
За третий квартал 2022 финансового года гостиничный сегмент Tao Group получил выручку в размере 108,6 млн долларов США по сравнению с 12,8 млн долларов США за аналогичный период предыдущего года. Tao Group Hospitality приобрела Hakkasan Group 27 апреля 2021 года, и в результате выручка в текущем квартале составила 47,2 миллиона долларов от Hakkasan Group. Портфель заведений, которыми управляла Tao Group Hospitality до приобретения Hakkasan Group (которые Компания называет “унаследованными заведениями”), принес 61,4 миллиона долларов дохода в текущем квартале по сравнению с 12,8 миллионами долларов в предыдущем году, что в первую очередь отражает смягчение государственного регулирования.-установленные ограничения пропускной способности, при этом Tao Group Hospitality в настоящее время работает без ограничений пропускной способности на внутреннем и ключевых международных рынках.
Прямые операционные расходы в третьем квартале 2022 финансового года в размере 63,8 млн долларов увеличились на 53,3 млн долларов по сравнению с предыдущим кварталом. В текущем квартале прямые операционные расходы Hakkasan Group составили 25,4 миллиона долларов. Кроме того, вознаграждение сотрудников и связанные с ним льготы в устаревших местах увеличились на 12,6 млн. долл. США, что в основном отражает увеличение штата после ослабления установленных правительством ограничений на вместимость, в то время как стоимость еды, напитков и развлечений в устаревших местах увеличилась на 11,3 млн. долл. Расходы на аренду увеличились на 2,7 миллиона долларов, главным образом из-за льгот на аренду в предыдущем году, вызванных пандемией COVID-19.
В третьем квартале 2022 финансового года коммерческие, общие и административные расходы в размере 40,4 млн долларов увеличились на 29,4 млн долларов по сравнению с предыдущим кварталом. Это в первую очередь отражает коммерческие, общие и административные расходы Hakkasan Group на сумму 14,3 млн. долларов США; увеличение вознаграждения сотрудников и связанных с ними льгот на 6,2 млн. долларов США; увеличение расходов на ресторан на 5,6 млн. долларов США, а также на расходные материалы, коммунальные услуги, страхование общей ответственности, расходы перед открытием, ремонт и техническое обслуживание; и Увеличение расходов на маркетинг на 2,6 миллиона долларов; частично компенсируется снижением профессиональных гонораров на 2,3 миллиона долларов, главным образом связанным с приобретением Hakkasan Group.
Операционная прибыль за третий квартал 2022 финансового года увеличилась на 12,8 млн долларов до 3,0 млн долларов, в то время как скорректированная операционная прибыль увеличилась на 11,2 млн долларов до 6,5 млн долларов по сравнению с предыдущим кварталом. Увеличение операционных доходов и скорректированных операционных доходов было в основном обусловлено увеличением выручки, частично компенсированным увеличением прямых операционных расходов и, в меньшей степени, увеличением коммерческих, общих и административных расходов.
О Madison Square Garden Entertainment Corp.
Madison Square Garden Entertainment Corp. (MSG Entertainment) является лидером в области живых развлечений. Компания представляет или проводит широкий спектр мероприятий в своей разнообразной коллекции площадок: нью-йоркский Мэдисон-сквер-Гарден, Театр Hulu в Мэдисон-сквер-Гарден, Radio City Music Hall и Beacon Theatre, а также Чикагский театр. MSG Entertainment также строит новое современное заведение в Лас-Вегасе, MSG Sphere at The Venetian. Кроме того, Компания представляет оригинальную постановку – рождественский спектакль с участием Radio City Rockettes в главной роли – и через Boston Calling Events продюсирует музыкальный фестиваль Boston Calling. Две региональные спортивно-развлекательные сети компании, MSG Network и MSG+, предоставляют широкий спектр спортивного контента в прямом эфире и других программ. Также под эгидой MSG Entertainment находится Tao Group Hospitality с развлекательными ресторанами и ночными клубами, включая Tao, Marquee, Lavo, Beauty & Essex, Cathédrale, Hakkasan и Omnia. Более подробная информация доступна по адресу www.msgentertainment.com .
Финансовые показатели, Не относящиеся к ОПБУ
Мы определяем скорректированный операционный доход (убыток), который является финансовым показателем, не относящимся к GAAP, как операционный доход (убыток) до (i) корректировок, направленных на устранение влияния неденежного линейного дохода от аренды, связанного с лицензионными соглашениями на арену с MSG Sports, (ii) износа, амортизации и обесценения основных средств, гудвила и других нематериальных активов, (iii) амортизация капитализированных затрат на организацию облачных вычислений, (iv) компенсационные расходы или льготы на основе акций, (v) расходы на реструктуризацию или кредиты, (vi) расходы, связанные со слияниями и поглощениями, включая судебные издержки, (vii) прибыль или убытки от продажи или продажи предприятий и связанных с ними расчетов, и (viii) влияние корректировок учета покупок, связанных с приобретением бизнеса. Мы считаем, что исключение компенсационных расходов или льгот, основанных на акциях, позволяет инвесторам лучше отслеживать эффективность различных операционных подразделений нашего бизнеса без учета погашения обязательств, которые, как ожидается, не будут выплачены наличными. Мы считаем, что, учитывая продолжительность лицензионных соглашений arena и, как следствие, величину разницы в признанном доходе от лизинга и полученном денежном доходе, исключение безналичного дохода от лизинга дает инвесторам более четкое представление об операционных показателях Компании. Мы исключаем расходы, связанные со слияниями и поглощениями, поскольку Компания не считает такие расходы показателем текущих операционных показателей Компании, поскольку они являются результатом события, которое носит разовый характер, тем самым повышая сопоставимость.
Мы считаем, что скорректированный операционный доход (убыток) является подходящим показателем для оценки операционных показателей наших бизнес-сегментов и Компании на консолидированной основе. Скорректированный операционный доход (убыток) и аналогичные показатели с аналогичными названиями являются общими показателями эффективности, используемыми инвесторами и аналитиками для анализа нашей деятельности. Внутри компании мы используем выручку и скорректированный операционный доход (убыток) в качестве наиболее важных показателей эффективности нашего бизнеса и оцениваем эффективность руководства с конкретной привязкой к этим показателям. Скорректированный операционный доход (убыток) следует рассматривать как дополнение, а не замену операционного дохода (убытка), чистой прибыли (убытка), денежных потоков от операционной деятельности и других показателей эффективности и/или ликвидности, представленных в соответствии с общепринятыми принципами бухгалтерского учета США (“GAAP”).). Поскольку скорректированный операционный доход (убыток) не является показателем эффективности, рассчитанным в соответствии с GAAP, этот показатель может быть несопоставим с аналогичными показателями с аналогичными названиями, используемыми другими компаниями. Для сверки операционных доходов (убытков) с скорректированными операционными доходами (убытками), пожалуйста, смотрите страницу 6 этого выпуска.
Прогнозные заявления
Этот пресс-релиз может содержать заявления, которые представляют собой прогнозные заявления по смыслу Закона о реформе судебных разбирательств по частным ценным бумагам 1995 года. Инвесторы предупреждаются о том, что любые такие прогнозные заявления не являются гарантией будущих результатов или результатов и сопряжены с рисками и неопределенностями, а также о том, что фактические результаты, события и события могут существенно отличаться от указанных в прогнозных заявлениях в результате различных факторов, включая восприятие Компании финансовым сообществом и рейтинговыми агентствами и его бизнес, операции, финансовое состояние и отрасли, в которых он работает, влияние пандемии COVID-19 и факторы, описанные в заявках Компании в Комиссию по ценным бумагам и биржам, включая разделы, озаглавленные “Факторы риска” и “Обсуждение и анализ руководством финансового состояния и результатов операций”, содержащихся в нем. Компания отказывается от каких-либо обязательств по обновлению любых прогнозных заявлений, содержащихся в настоящем документе.
Информация о конференц-звонке:
Селекторное совещание будет транслироваться в прямом эфире сегодня в 10:00 по восточному времени в investor.msgentertainment.com Телефонный номер конференц-связи: 833-420-0364 / Идентификационный номер конференции 4864015 Номер повтора конференц-связи: 855-859-2056 / Идентификационный номер конференции 4864015 до 16 мая 2022 года
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) |
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
March 31, |
|
March 31, |
||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues |
|
$ |
460,127 |
|
|
$ |
214,318 |
|
|
$ |
1,271,076 |
|
|
$ |
553,616 |
|
Direct operating expenses |
|
|
262,476 |
|
|
|
110,022 |
|
|
|
724,495 |
|
|
|
301,750 |
|
Selling, general and administrative expenses |
|
|
157,598 |
|
|
|
103,425 |
|
|
|
494,714 |
|
|
|
281,100 |
|
Depreciation and amortization |
|
|
28,639 |
|
|
|
39,611 |
|
|
|
88,602 |
|
|
|
93,698 |
|
Impairment and other (gains) losses, net |
|
|
(5,319 |
) |
|
|
— |
|
|
|
(5,480 |
) |
|
|
— |
|
Restructuring charges |
|
|
14,690 |
|
|
|
— |
|
|
|
14,690 |
|
|
|
21,299 |
|
Operating income (loss) |
|
|
2,043 |
|
|
|
(38,740 |
) |
|
|
(45,945 |
) |
|
|
(144,231 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
||||||||
Loss in equity method investments |
|
|
(1,528 |
) |
|
|
(2,314 |
) |
|
|
(4,509 |
) |
|
|
(5,578 |
) |
Interest income |
|
|
774 |
|
|
|
792 |
|
|
|
2,322 |
|
|
|
2,401 |
|
Interest expense |
|
|
(5,831 |
) |
|
|
(6,503 |
) |
|
|
(23,246 |
) |
|
|
(17,038 |
) |
Miscellaneous income (expense), net |
|
|
(8,449 |
) |
|
|
27,483 |
|
|
|
(28,096 |
) |
|
|
53,932 |
|
Loss from operations before income taxes |
|
|
(12,991 |
) |
|
|
(19,282 |
) |
|
|
(99,474 |
) |
|
|
(110,514 |
) |
Income tax benefit (expense) |
|
|
(6,315 |
) |
|
|
(6,556 |
) |
|
|
8,532 |
|
|
|
(15,715 |
) |
Net loss |
|
|
(19,306 |
) |
|
|
(25,838 |
) |
|
|
(90,942 |
) |
|
|
(126,229 |
) |
Less: Net income (loss) attributable to redeemable noncontrolling interests |
|
|
(442 |
) |
|
|
(6,860 |
) |
|
|
4,412 |
|
|
|
(14,091 |
) |
Less: Net loss attributable to nonredeemable noncontrolling interests |
|
|
(1,373 |
) |
|
|
(718 |
) |
|
|
(902 |
) |
|
|
(2,250 |
) |
Net loss attributable to Madison Square Garden Entertainment Corp.’s stockholders |
|
$ |
(17,491 |
) |
|
$ |
(18,260 |
) |
|
$ |
(94,452 |
) |
|
$ |
(109,888 |
) |
Basic and diluted loss per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders |
|
$ |
(0.51 |
) |
|
$ |
(0.79 |
) |
|
$ |
(2.76 |
) |
|
$ |
(3.48 |
) |
Basic and diluted weighted-average number of common shares outstanding |
|
|
34,320 |
|
|
|
34,060 |
|
|
|
34,230 |
|
|
|
34,083 |
|
_________________ | |
Note: |
For all periods presented, the net assets of MSG Networks have been combined with those of the Company at their historical carrying amount. All prior periods balances in these consolidated financial statements (including share activities) have been retrospectively adjusted as if both companies had been operating as a single company. |
КОРРЕКТИРОВКИ ДЛЯ ПРИВЕДЕНИЯ ОПЕРАЦИОННЫХ ДОХОДОВ (УБЫТКОВ) В СООТВЕТСТВИЕ С СКОРРЕКТИРОВАННЫЙ ОПЕРАЦИОННЫЙ ДОХОД (УБЫТОК) (Неаудировано)
Ниже приводится описание корректировок операционного дохода (убытка) при расчете скорректированного операционного дохода (убытка), как описано в настоящем отчете о прибылях и убытках:
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
March 31, |
|
March 31, |
||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Operating income (loss) |
|
$ |
2,043 |
|
|
$ |
(38,740 |
) |
|
$ |
(45,945 |
) |
|
$ |
(144,231 |
) |
Non-cash portion of arena license fees from MSG Sports |
|
|
(12,073 |
) |
|
|
(7,564 |
) |
|
|
(23,962 |
) |
|
|
(8,740 |
) |
Share-based compensation |
|
|
14,033 |
|
|
|
11,437 |
|
|
|
57,732 |
|
|
|
57,421 |
|
Depreciation and amortization(1) |
|
|
28,639 |
|
|
|
39,611 |
|
|
|
88,602 |
|
|
|
93,698 |
|
Amortization for capitalized cloud computing costs |
|
|
81 |
|
|
|
— |
|
|
|
176 |
|
|
|
— |
|
Merger and acquisition related costs |
|
|
2,760 |
|
|
|
15,269 |
|
|
|
42,283 |
|
|
|
15,481 |
|
Impairment and other (gains) losses, net |
|
|
(5,319 |
) |
|
|
— |
|
|
|
(5,480 |
) |
|
|
— |
|
Restructuring charges |
|
|
14,690 |
|
|
|
— |
|
|
|
14,690 |
|
|
|
21,299 |
|
Other purchase accounting adjustments |
|
|
1,622 |
|
|
|
887 |
|
|
|
4,745 |
|
|
|
2,735 |
|
Adjusted operating income |
|
$ |
46,476 |
|
|
$ |
20,900 |
|
|
$ |
132,841 |
|
|
$ |
37,663 |
|
_________________ | |
Note: |
For all periods presented, the net assets of MSG Networks have been combined with those of the Company at their historical carrying amount. All prior periods balances in these consolidated financial statements (including share activities) have been retrospectively adjusted as if both companies had been operating as a single company. |
(1) |
Includes depreciation and amortization related to purchase accounting adjustments. |
SEGMENT RESULTS (Dollars in thousands) (Unaudited) |
|||||||||||||||||||
BUSINESS SEGMENT RESULTS |
|||||||||||||||||||
|
|
Three Months Ended March 31, 2022 |
|||||||||||||||||
|
|
Entertainment |
|
Networks |
|
Tao Group
|
|
Other(2) |
|
Total |
|||||||||
Revenues |
|
$ |
194,585 |
|
|
$ |
167,569 |
|
$ |
108,572 |
|
|
$ |
(10,599 |
) |
|
$ |
460,127 |
|
Direct operating expenses |
|
|
110,688 |
|
|
|
87,174 |
|
|
63,783 |
|
|
|
831 |
|
|
|
262,476 |
|
Selling, general and administrative expenses |
|
|
94,603 |
|
|
|
32,237 |
|
|
40,376 |
|
|
|
(9,618 |
) |
|
|
157,598 |
|
Depreciation and amortization |
|
|
18,522 |
|
|
|
1,764 |
|
|
6,490 |
|
|
|
1,863 |
|
|
|
28,639 |
|
Impairment and other (gains) loss, net |
|
|
(245 |
) |
|
|
— |
|
|
(5,074 |
) |
|
|
— |
|
|
|
(5,319 |
) |
Restructuring charges |
|
|
14,238 |
|
|
|
452 |
|
|
— |
|
|
|
— |
|
|
|
14,690 |
|
Operating income (loss) |
|
$ |
(43,221 |
) |
|
$ |
45,942 |
|
$ |
2,997 |
|
|
$ |
(3,675 |
) |
|
$ |
2,043 |
|
Reconciliation to adjusted operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-cash portion of arena license fees from MSG Sports |
|
|
(12,073 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(12,073 |
) |
Share-based compensation |
|
|
10,399 |
|
|
|
1,758 |
|
|
1,876 |
|
|
|
— |
|
|
|
14,033 |
|
Depreciation and amortization(1) |
|
|
18,522 |
|
|
|
1,764 |
|
|
6,490 |
|
|
|
3,485 |
|
|
|
30,261 |
|
Amortization for capitalized cloud computing costs |
|
|
38 |
|
|
|
43 |
|
|
— |
|
|
|
— |
|
|
|
81 |
|
Merger and acquisition related costs |
|
|
1,647 |
|
|
|
866 |
|
|
247 |
|
|
|
— |
|
|
|
2,760 |
|
Impairment and other (gains) losses, net |
|
|
(245 |
) |
|
|
— |
|
|
(5,074 |
) |
|
|
— |
|
|
|
(5,319 |
) |
Restructuring charges |
|
|
14,238 |
|
|
|
452 |
|
|
— |
|
|
|
— |
|
|
|
14,690 |
|
Adjusted operating income (loss) |
|
$ |
(10,695 |
) |
|
$ |
50,825 |
|
$ |
6,536 |
|
|
$ |
(190 |
) |
|
$ |
46,476 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Three Months Ended March 31, 2021 |
|||||||||||||||||
|
|
Entertainment |
|
Networks |
|
Tao Group
|
|
Other(2) |
|
Total |
|||||||||
Revenues |
|
$ |
30,957 |
|
|
$ |
177,853 |
|
$ |
12,790 |
|
|
$ |
(7,282 |
) |
|
$ |
214,318 |
|
Direct operating expenses |
|
|
24,644 |
|
|
|
74,392 |
|
|
10,480 |
|
|
|
506 |
|
|
|
110,022 |
|
Selling, general and administrative expenses |
|
|
67,286 |
|
|
|
31,743 |
|
|
11,025 |
|
|
|
(6,629 |
) |
|
|
103,425 |
|
Depreciation and amortization |
|
|
19,081 |
|
|
|
1,833 |
|
|
1,130 |
|
|
|
17,567 |
|
|
|
39,611 |
|
Operating income (loss) |
|
$ |
(80,054 |
) |
|
$ |
69,885 |
|
$ |
(9,845 |
) |
|
$ |
(18,726 |
) |
|
$ |
(38,740 |
) |
Reconciliation to adjusted operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-cash portion of arena license fees from MSG Sports |
|
|
(7,564 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(7,564 |
) |
Share-based compensation |
|
|
6,799 |
|
|
|
3,324 |
|
|
1,314 |
|
|
|
— |
|
|
|
11,437 |
|
Depreciation and amortization(1) |
|
|
19,081 |
|
|
|
1,833 |
|
|
1,130 |
|
|
|
18,454 |
|
|
|
40,498 |
|
Merger and acquisition related costs |
|
|
11,267 |
|
|
|
1,238 |
|
|
2,764 |
|
|
|
— |
|
|
|
15,269 |
|
Adjusted operating income (loss) |
|
$ |
(50,471 |
) |
|
$ |
76,280 |
|
$ |
(4,637 |
) |
|
$ |
(272 |
) |
|
$ |
20,900 |
|
_________________ | ||
(1) |
|
Depreciation and amortization includes other purchase accounting adjustments of $1,622 and $887 for the three months ended March 31, 2022 and 2021, respectively. |
(2) |
|
Includes inter-segment eliminations and, for operating income (loss), purchase accounting adjustments. |
SEGMENT RESULTS (continued) (Dollars in thousands) (Unaudited) |
|||||||||||||||||||
|
|
Nine Months Ended March 31, 2022 |
|||||||||||||||||
|
|
Entertainment |
|
MSG Networks |
|
Tao Group Hospitality |
|
Other(2) |
|
Total |
|||||||||
Revenues |
|
$ |
476,434 |
|
|
$ |
469,023 |
|
$ |
345,122 |
|
|
$ |
(19,503 |
) |
|
$ |
1,271,076 |
|
Direct operating expenses |
|
|
294,333 |
|
|
|
241,521 |
|
|
185,756 |
|
|
|
2,885 |
|
|
|
724,495 |
|
Selling, general and administrative expenses |
|
|
279,081 |
|
|
|
117,404 |
|
|
115,155 |
|
|
|
(16,926 |
) |
|
|
494,714 |
|
Depreciation and amortization |
|
|
57,202 |
|
|
|
5,317 |
|
|
19,111 |
|
|
|
6,972 |
|
|
|
88,602 |
|
Impairment and other (gains) loss, net |
|
|
(245 |
) |
|
|
— |
|
|
(4,699 |
) |
|
|
(536 |
) |
|
|
(5,480 |
) |
Restructuring charges |
|
|
14,238 |
|
|
|
452 |
|
|
— |
|
|
|
— |
|
|
|
14,690 |
|
Operating income (loss) |
|
$ |
(168,175 |
) |
|
$ |
104,329 |
|
$ |
29,799 |
|
|
$ |
(11,898 |
) |
|
$ |
(45,945 |
) |
Reconciliation to adjusted operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-cash portion of arena license fees from MSG Sports |
|
|
(23,962 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(23,962 |
) |
Share-based compensation |
|
|
36,697 |
|
|
|
15,290 |
|
|
5,745 |
|
|
|
— |
|
|
|
57,732 |
|
Depreciation and amortization(1) |
|
|
57,202 |
|
|
|
5,317 |
|
|
19,111 |
|
|
|
11,717 |
|
|
|
93,347 |
|
Amortization for capitalized cloud computing costs |
|
|
45 |
|
|
|
131 |
|
|
— |
|
|
|
— |
|
|
|
176 |
|
Merger and acquisition related costs |
|
|
17,095 |
|
|
|
24,941 |
|
|
247 |
|
|
|
— |
|
|
|
42,283 |
|
Impairment and other (gains) losses, net |
|
|
(245 |
) |
|
|
— |
|
|
(4,699 |
) |
|
|
(536 |
) |
|
|
(5,480 |
) |
Restructuring charges |
|
|
14,238 |
|
|
|
452 |
|
|
— |
|
|
|
— |
|
|
|
14,690 |
|
Adjusted operating income (loss) |
|
$ |
(67,105 |
) |
|
$ |
150,460 |
|
$ |
50,203 |
|
|
$ |
(717 |
) |
|
$ |
132,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Nine Months Ended March 31, 2021 |
|||||||||||||||||
|
|
Entertainment |
|
MSG Networks |
|
Tao Group Hospitality |
|
Other(2) |
|
Total |
|||||||||
Revenues |
|
$ |
51,181 |
|
|
$ |
481,455 |
|
$ |
30,502 |
|
|
$ |
(9,522 |
) |
|
$ |
553,616 |
|
Direct operating expenses |
|
|
71,668 |
|
|
|
196,497 |
|
|
31,288 |
|
|
|
2,297 |
|
|
|
301,750 |
|
Selling, general and administrative expenses |
|
|
185,666 |
|
|
|
75,962 |
|
|
27,759 |
|
|
|
(8,287 |
) |
|
|
281,100 |
|
Depreciation and amortization |
|
|
60,341 |
|
|
|
5,463 |
|
|
3,739 |
|
|
|
24,155 |
|
|
|
93,698 |
|
Restructuring charges |
|
|
21,299 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
21,299 |
|
Operating income (loss) |
|
$ |
(287,793 |
) |
|
$ |
203,533 |
|
$ |
(32,284 |
) |
|
$ |
(27,687 |
) |
|
$ |
(144,231 |
) |
Reconciliation to adjusted operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-cash portion of arena license fees from MSG Sports |
|
|
(8,740 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(8,740 |
) |
Share-based compensation |
|
|
39,606 |
|
|
|
14,217 |
|
|
3,598 |
|
|
|
— |
|
|
|
57,421 |
|
Depreciation and amortization(1) |
|
|
60,341 |
|
|
|
5,463 |
|
|
3,739 |
|
|
|
26,890 |
|
|
|
96,433 |
|
Merger and acquisition related costs |
|
|
11,479 |
|
|
|
1,238 |
|
|
2,764 |
|
|
|
— |
|
|
|
15,481 |
|
Restructuring charges |
|
|
21,299 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
21,299 |
|
Adjusted operating income (loss) |
|
$ |
(163,808 |
) |
|
$ |
224,451 |
|
$ |
(22,183 |
) |
|
$ |
(797 |
) |
|
$ |
37,663 |
|
_________________ | |
Note: |
For all periods presented, the net assets of MSG Networks have been combined with those of the Company at their historical carrying amount. All prior periods balances in these consolidated financial statements (including share activities) have been retrospectively adjusted as if both companies had been operating as a single company. |
(1) |
Depreciation and amortization includes other purchase accounting adjustments of $4,745 and $2,735 for the nine months ended March 31, 2022 and 2021, respectively. |
(2) |
Includes inter-segment eliminations and, for operating income (loss), purchase accounting adjustments. |
CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) |
||||||||
|
|
March 31,
|
|
June 30,
|
||||
ASSETS |
|
|
|
|
||||
Current Assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
999,063 |
|
$ |
1,516,992 |
||
Restricted cash |
|
|
21,690 |
|
|
22,984 |
||
Accounts receivable, net |
|
|
250,853 |
|
|
184,613 |
||
Net related party receivables |
|
|
58,835 |
|
|
31,916 |
||
Prepaid income taxes |
|
|
3,705 |
|
|
12,772 |
||
Prepaid expenses |
|
|
77,257 |
|
|
67,445 |
||
Other current assets |
|
|
46,771 |
|
|
36,014 |
||
Total current assets |
|
|
1,458,174 |
|
|
1,872,736 |
||
Investments in nonconsolidated affiliates |
|
|
44,697 |
|
|
49,221 |
||
Property and equipment, net |
|
|
2,707,193 |
|
|
2,156,292 |
||
Right-of-use lease assets |
|
|
462,479 |
|
|
280,579 |
||
Amortizable intangible assets, net |
|
|
177,069 |
|
|
198,274 |
||
Indefinite-lived intangible assets |
|
|
63,801 |
|
|
63,801 |
||
Goodwill |
|
|
500,181 |
|
|
502,195 |
||
Other assets |
|
|
166,825 |
|
|
166,781 |
||
Total assets |
|
$ |
5,580,419 |
|
$ |
5,289,879 |
_________________ | |
Note: |
For all periods presented, the net assets of MSG Networks have been combined with those of the Company at their historical carrying amount. All prior periods balances in these consolidated financial statements (including share activities) have been retrospectively adjusted as if both companies had been operating as a single company. |
CONSOLIDATED BALANCE SHEETS (continued) (In thousands, except per share data) (Unaudited) |
||||||||
|
|
March 31,
|
|
June 30,
|
||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY |
|
|
|
|
||||
Current Liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
40,380 |
|
|
$ |
26,644 |
|
Net related party payables, current |
|
|
76,075 |
|
|
|
23,173 |
|
Current portion of long-term debt, net of deferred financing costs |
|
|
65,989 |
|
|
|
53,973 |
|
Income taxes payable |
|
|
— |
|
|
|
2,527 |
|
Accrued liabilities: |
|
|
|
|
||||
Employee related costs |
|
|
95,185 |
|
|
|
91,853 |
|
Other accrued liabilities |
|
|
310,030 |
|
|
|
210,749 |
|
Operating lease liabilities, current |
|
|
67,012 |
|
|
|
73,423 |
|
Collections due to promoters |
|
|
46,744 |
|
|
|
37,877 |
|
Deferred revenue |
|
|
263,494 |
|
|
|
209,651 |
|
Total current liabilities |
|
|
964,909 |
|
|
|
729,870 |
|
Long-term debt, net of deferred financing costs |
|
|
1,584,072 |
|
|
|
1,650,628 |
|
Operating lease liabilities, noncurrent |
|
|
440,319 |
|
|
|
233,556 |
|
Defined benefit and other postretirement obligations |
|
|
51,424 |
|
|
|
54,179 |
|
Other employee related costs |
|
|
18,059 |
|
|
|
21,193 |
|
Collections due to promoters, noncurrent |
|
|
— |
|
|
|
6,625 |
|
Deferred tax liabilities, net |
|
|
185,481 |
|
|
|
200,325 |
|
Other liabilities |
|
|
76,755 |
|
|
|
75,263 |
|
Total liabilities |
|
|
3,321,019 |
|
|
|
2,971,639 |
|
Redeemable noncontrolling interests |
|
|
137,778 |
|
|
|
137,834 |
|
Madison Square Garden Entertainment Corp. Stockholders’ Equity: |
|
|
|
|
||||
Class A Common stock, par value $0.01, 120,000 shares authorized; 27,341 and 27,093 shares outstanding as of March 31, 2022 and June 30, 2021, respectively |
|
|
273 |
|
|
|
271 |
|
Class B Common stock, par value $0.01, 30,000 shares authorized; 6,867 shares outstanding as of March 31, 2022 and June 30, 2021 |
|
|
69 |
|
|
|
69 |
|
Preferred stock, par value $0.01, 15,000 shares authorized; none outstanding as of March 31, 2022 and June 30, 2021 |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
2,334,271 |
|
|
|
2,294,775 |
|
Accumulated deficit |
|
|
(190,793 |
) |
|
|
(96,341 |
) |
Accumulated other comprehensive loss |
|
|
(37,010 |
) |
|
|
(30,272 |
) |
Total Madison Square Garden Entertainment Corp. stockholders’ equity |
|
|
2,106,810 |
|
|
|
2,168,502 |
|
Nonredeemable noncontrolling interests |
|
|
14,812 |
|
|
|
11,904 |
|
Total equity |
|
|
2,121,622 |
|
|
|
2,180,406 |
|
Total liabilities, redeemable noncontrolling interests and equity |
|
$ |
5,580,419 |
|
|
$ |
5,289,879 |
_________________ | |
Note: |
For all periods presented, the net assets of MSG Networks have been combined with those of the Company at their historical carrying amount. All prior periods balances in these consolidated financial statements (including share activities) have been retrospectively adjusted as if both companies had been operating as a single company. |
SELECTED CASH FLOW INFORMATION (Dollars in thousands) (Unaudited) |
||||||||
|
|
Nine Months Ended |
||||||
|
|
March 31, |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
Net cash provided by (used in) operating activities |
|
$ |
106,201 |
|
|
$ |
(114,116 |
) |
Net cash (used in) provided by investing activities |
|
|
(547,926 |
) |
|
|
21,834 |
|
Net cash (used in) provided by financing activities |
|
|
(77,520 |
) |
|
|
589,598 |
|
Effect of exchange rates on cash, cash equivalents and restricted cash |
|
|
22 |
|
|
|
7,918 |
|
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
|
(519,223 |
) |
|
|
505,234 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
1,539,976 |
|
|
|
1,121,141 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
1,020,753 |
|
|
$ |
1,626,375 |
|
_________________ | |
Note: |
For all periods presented, the net assets of MSG Networks have been combined with those of the Company at their historical carrying amount. All prior periods balances in these consolidated financial statements (including share activities) have been retrospectively adjusted as if both companies had been operating as a single company. |