Madison Square Garden Entertainment Corp. Reports Fiscal 2022 Second Quarter Results
Madison Square Garden Entertainment Corp. (MSGE) reported robust fiscal second-quarter results for 2022, with revenues reaching $516.4 million, up $347.7 million year-over-year. The operating income improved to $35.4 million, compared to a loss of $46.8 million in the prior year. Notably, the Entertainment segment generated $247.6 million in revenues, driven by increased live events, while Tao Group Hospitality saw revenues of $117.1 million. However, the emergence of the Omicron variant affected operations, leading to the early conclusion of the Christmas Spectacular and event cancellations.
- Revenues increased to $516.4 million, a 206% year-over-year growth.
- Operating income improved to $35.4 million, significantly better than the prior year's loss.
- Tao Group Hospitality generated $117.1 million in revenue, benefiting from strong demand.
- Entertainment segment revenues rose to $247.6 million due to increased events.
- The Omicron variant impacted operations, resulting in event cancellations.
- MSG Networks experienced a $16.1 million decline in affiliation fee revenue.
FY2022 Second Quarter Results Reflect Continued Ramp-up of Live Events at Company's Performance Venues
During the fiscal 2022 second quarter, events at the Company’s performance venues continued to ramp up, highlighted by a busy schedule of concerts,
For the fiscal 2022 second quarter, the Company reported revenues of
Executive Chairman and CEO
Segment Results for the Three and Six Months Ended |
||||||||||||||||||||||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||||||||||||||||||||
|
|
Change |
|
Change |
||||||||||||||||||||||||||
$ millions |
2021 |
2020 |
$ |
% |
2021 |
2020 |
$ |
% |
||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Entertainment |
$ |
247.6 |
|
$ |
12.7 |
|
$ |
234.9 |
|
|
NM |
$ |
281.8 |
|
$ |
20.2 |
|
$ |
261.6 |
|
|
NM |
||||||||
MSG Networks |
|
160.0 |
|
|
146.2 |
|
|
13.7 |
|
|
9% |
|
301.5 |
|
|
303.6 |
|
|
(2.1 |
) |
|
(1)% |
||||||||
Tao Group Hospitality |
|
117.1 |
|
|
10.5 |
|
|
106.6 |
|
|
NM |
|
236.6 |
|
|
17.7 |
|
|
218.8 |
|
|
NM |
||||||||
Other(2) |
|
(8.2 |
) |
|
(0.6 |
) |
|
(7.6 |
) |
|
NM |
|
(8.9 |
) |
|
(2.2 |
) |
|
(6.7 |
) |
|
NM |
||||||||
Total Revenues |
$ |
516.4 |
|
$ |
168.8 |
|
$ |
347.7 |
|
|
NM |
$ |
810.9 |
|
$ |
339.3 |
|
$ |
471.7 |
|
|
|||||||||
Operating Income (Loss) |
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Entertainment |
$ |
(10.3 |
) |
$ |
(97.1 |
) |
$ |
86.8 |
|
|
89% |
$ |
(125.0 |
) |
$ |
(207.7 |
) |
$ |
82.8 |
|
|
40% |
||||||||
MSG Networks |
|
35.1 |
|
|
65.7 |
|
|
(30.6 |
) |
|
(47)% |
|
58.4 |
|
|
133.6 |
|
|
(75.3 |
) |
|
(56)% |
||||||||
Tao Group Hospitality |
|
16.7 |
|
|
(11.2 |
) |
|
27.9 |
|
|
NM |
|
26.8 |
|
|
(22.4 |
) |
|
49.2 |
|
|
NM |
||||||||
Other(2) |
|
(6.2 |
) |
|
(4.3 |
) |
|
(2.0 |
) |
|
(46)% |
|
(8.2 |
) |
|
(9.0 |
) |
|
0.7 |
|
|
8% |
||||||||
Total Operating Income (Loss) |
$ |
35.4 |
|
$ |
(46.8 |
) |
$ |
82.2 |
|
|
NM |
$ |
(48.0 |
) |
$ |
(105.5 |
) |
$ |
57.5 |
|
|
55% |
||||||||
Adjusted Operating Income (Loss) |
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Entertainment |
$ |
15.0 |
|
$ |
(55.3 |
) |
$ |
70.3 |
|
|
NM |
$ |
(56.4 |
) |
$ |
(113.5 |
) |
$ |
57.1 |
|
|
50% |
||||||||
MSG Networks |
|
43.8 |
|
|
73.8 |
|
|
(29.9 |
) |
|
(41)% |
|
99.6 |
|
|
148.2 |
|
|
(48.5 |
) |
|
(33)% |
||||||||
Tao Group Hospitality |
|
17.5 |
|
|
(8.4 |
) |
|
25.9 |
|
|
NM |
|
43.7 |
|
|
(17.5 |
) |
|
61.2 |
|
|
NM |
||||||||
Other(2) |
|
(0.2 |
) |
|
(0.3 |
) |
|
0.1 |
|
|
26% |
|
(0.5 |
) |
|
(0.5 |
) |
|
— |
|
|
—% |
||||||||
Total Adjusted Operating Income |
$ |
76.1 |
|
$ |
9.8 |
|
$ |
66.3 |
|
|
NM |
$ |
86.4 |
|
$ |
16.6 |
|
$ |
69.8 |
|
|
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.
Entertainment
For the fiscal 2022 second quarter, the Entertainment segment generated revenues of
Fiscal 2022 second quarter direct operating expenses of
Fiscal 2022 second quarter selling, general and administrative expenses of
Fiscal 2022 second quarter operating loss improved by
MSG Networks
For the fiscal 2022 second quarter, the MSG Networks segment generated total revenues of
Fiscal 2022 second quarter advertising revenue increased
Fiscal 2022 second quarter direct operating expenses of
Fiscal 2022 second quarter selling, general and administrative expenses of
Fiscal 2022 second quarter operating income of
Tao Group Hospitality
For the fiscal 2022 second quarter, the Tao Group Hospitality segment generated revenues of
Fiscal 2022 second quarter direct operating expenses of
Fiscal 2022 second quarter selling, general and administrative expenses of
Fiscal 2022 second quarter operating income improved by
About
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
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
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
Conference Call Information:
The conference call will be Webcast live today at
Conference call dial-in number is 833-420-0364 / Conference ID Number 9077917
Conference call replay number is 855-859-2056 / Conference ID Number 9077917 until
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(Unaudited) |
||||||||||||||||
(In thousands, except per share data) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenues |
|
$ |
516,439 |
|
|
$ |
168,752 |
|
|
$ |
810,949 |
|
|
$ |
339,298 |
|
Direct operating expenses |
|
|
296,258 |
|
|
|
92,497 |
|
|
|
462,019 |
|
|
|
191,728 |
|
Selling, general and administrative expenses |
|
|
162,277 |
|
|
|
96,018 |
|
|
|
337,116 |
|
|
|
177,675 |
|
Depreciation and amortization |
|
|
30,533 |
|
|
|
25,677 |
|
|
|
59,963 |
|
|
|
54,087 |
|
Impairment and other (gains) loss, net |
|
|
(7,979 |
) |
|
|
— |
|
|
|
(161 |
) |
|
|
— |
|
Restructuring charges |
|
|
— |
|
|
|
1,372 |
|
|
|
— |
|
|
|
21,299 |
|
Operating income (loss) |
|
|
35,350 |
|
|
|
(46,812 |
) |
|
|
(47,988 |
) |
|
|
(105,491 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
||||||||
Loss in equity method investments |
|
|
(1,774 |
) |
|
|
(1,568 |
) |
|
|
(2,981 |
) |
|
|
(3,264 |
) |
Interest income |
|
|
773 |
|
|
|
837 |
|
|
|
1,548 |
|
|
|
1,609 |
|
Interest expense |
|
|
(8,167 |
) |
|
|
(5,262 |
) |
|
|
(17,415 |
) |
|
|
(10,535 |
) |
Miscellaneous income (expense), net |
|
|
(17,100 |
) |
|
|
(7,568 |
) |
|
|
(19,647 |
) |
|
|
26,449 |
|
Income (loss) from operations before income taxes |
|
|
9,082 |
|
|
|
(60,373 |
) |
|
|
(86,483 |
) |
|
|
(91,232 |
) |
Income tax benefit (expense) |
|
|
(4,063 |
) |
|
|
298 |
|
|
|
14,847 |
|
|
|
(9,159 |
) |
Net income (loss) |
|
|
5,019 |
|
|
|
(60,075 |
) |
|
|
(71,636 |
) |
|
|
(100,391 |
) |
Less: Net income (loss) attributable to redeemable noncontrolling interests |
|
|
2,642 |
|
|
|
(3,342 |
) |
|
|
4,854 |
|
|
|
(7,231 |
) |
Less: Net income (loss) attributable to nonredeemable noncontrolling interests |
|
|
106 |
|
|
|
(902 |
) |
|
|
471 |
|
|
|
(1,532 |
) |
Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders |
|
$ |
2,271 |
|
|
$ |
(55,831 |
) |
|
$ |
(76,961 |
) |
|
$ |
(91,628 |
) |
Basic earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders |
|
$ |
0.07 |
|
|
$ |
(1.64 |
) |
|
$ |
(2.25 |
) |
|
$ |
(2.70 |
) |
Diluted earnings (loss) per common share attributable to The Madison Square Garden Company’s stockholders |
|
$ |
0.07 |
|
|
$ |
(1.64 |
) |
|
$ |
(2.25 |
) |
|
$ |
(2.70 |
) |
Basic weighted-average number of common shares outstanding |
|
|
34,278 |
|
|
|
34,021 |
|
|
|
34,186 |
|
|
|
33,961 |
|
Diluted weighted-average number of common shares outstanding |
|
|
34,436 |
|
|
|
34,021 |
|
|
|
34,186 |
|
|
|
33,961 |
|
_________________
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:
-
Non-cash portion of arena license fees from
MSG Sports . This adjustment removes the impact of non-cash straight-line leasing revenue associated with the Arena License Agreements withMSG Sports . -
Share-based compensation. This adjustment eliminates the compensation expense relating to restricted stock units and stock options granted under the MSG Entertainment Employee Stock Plan, MSG Sports Employee Stock Plan, MSG Networks Employee Stock Plan, as amended and assumed by
MSG Entertainment , MSG Entertainment Non-Employee Director Plan and MSG Networks Non-Employee Director Plan in all periods. - Depreciation and amortization. This adjustment eliminates depreciation and amortization of property and equipment and intangible assets in all periods.
- Amortization for capitalized cloud computing arrangement costs. This adjustment eliminates amortization of capitalized cloud computing arrangement costs.
- Merger and acquisition related costs. This adjustment eliminates costs related to mergers and acquisitions, including litigation expenses, in all periods.
- Impairment and other (gains) loss, net. This adjustment eliminates non-cash impairment charges and the impact of gains or losses from the disposition of assets or businesses in all periods.
- Restructuring charges. This adjustment eliminates costs related to termination benefits provided to employees as part of the Company's full-time workforce reductions.
- Purchase accounting adjustments. This adjustment eliminates the impact of various purchase accounting adjustments related to business acquisitions, primarily favorable / unfavorable lease agreements of the acquiree.
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Operating income (loss) |
|
$ |
35,350 |
|
|
$ |
(46,812 |
) |
|
$ |
(47,988 |
) |
|
$ |
(105,491 |
) |
Non-cash portion of arena license fees from |
|
|
(11,346 |
) |
|
|
(1,176 |
) |
|
|
(11,889 |
) |
|
|
(1,176 |
) |
Share-based compensation |
|
|
24,171 |
|
|
|
29,828 |
|
|
|
43,699 |
|
|
|
45,984 |
|
Depreciation and amortization(1) |
|
|
30,533 |
|
|
|
25,677 |
|
|
|
59,963 |
|
|
|
54,087 |
|
Amortization for capitalized cloud computing costs |
|
|
10 |
|
|
|
— |
|
|
|
95 |
|
|
|
— |
|
Merger and acquisition related costs |
|
|
2,331 |
|
|
|
— |
|
|
|
39,523 |
|
|
|
— |
|
Impairment and other (gains) loss, net |
|
|
(7,979 |
) |
|
|
— |
|
|
|
(161 |
) |
|
|
— |
|
Restructuring charges |
|
|
— |
|
|
|
1,372 |
|
|
|
— |
|
|
|
21,299 |
|
Other purchase accounting adjustments |
|
|
3,038 |
|
|
|
924 |
|
|
|
3,123 |
|
|
|
1,848 |
|
Adjusted operating income |
|
$ |
76,108 |
|
|
$ |
9,813 |
|
|
$ |
86,365 |
|
|
$ |
16,551 |
|
_________________
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 |
|||||||||||||||||
|
|
Entertainment |
|
Networks |
|
Tao Group Hospitality |
|
Other(2) |
|
Total |
|||||||||
Revenues |
|
$ |
247,610 |
|
|
$ |
159,981 |
|
$ |
117,086 |
|
|
$ |
(8,238 |
) |
|
$ |
516,439 |
|
Direct operating expenses |
|
|
147,343 |
|
|
|
85,924 |
|
|
60,880 |
|
|
|
2,111 |
|
|
|
296,258 |
|
Selling, general and administrative expenses |
|
|
91,516 |
|
|
|
37,192 |
|
|
40,685 |
|
|
|
(7,116 |
) |
|
|
162,277 |
|
Depreciation and amortization |
|
|
19,024 |
|
|
|
1,756 |
|
|
6,243 |
|
|
|
3,510 |
|
|
|
30,533 |
|
Impairment and other (gains) loss, net |
|
|
— |
|
|
|
— |
|
|
(7,443 |
) |
|
|
(536 |
) |
|
|
(7,979 |
) |
Operating income (loss) |
|
$ |
(10,273 |
) |
|
$ |
35,109 |
|
$ |
16,721 |
|
|
$ |
(6,207 |
) |
|
$ |
35,350 |
|
Reconciliation to adjusted operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-cash portion of arena license fees from |
|
|
(11,346 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(11,346 |
) |
Share-based compensation |
|
|
16,155 |
|
|
|
6,058 |
|
|
1,958 |
|
|
|
— |
|
|
|
24,171 |
|
Depreciation and amortization(1) |
|
|
19,024 |
|
|
|
1,756 |
|
|
6,243 |
|
|
|
6,548 |
|
|
|
33,571 |
|
Amortization for capitalized cloud computing costs |
|
|
(34 |
) |
|
|
44 |
|
|
— |
|
|
|
— |
|
|
|
10 |
|
Merger and acquisition related costs |
|
|
1,456 |
|
|
|
875 |
|
|
— |
|
|
|
— |
|
|
|
2,331 |
|
Impairment and other (gains) loss, net |
|
|
— |
|
|
|
— |
|
|
(7,443 |
) |
|
|
(536 |
) |
|
|
(7,979 |
) |
Adjusted operating income (loss) |
|
$ |
14,982 |
|
|
$ |
43,842 |
|
$ |
17,479 |
|
|
$ |
(195 |
) |
|
$ |
76,108 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Three Months Ended |
|||||||||||||||||
|
|
Entertainment |
|
Networks |
|
Tao Group Hospitality |
|
Other(2) |
|
Total |
|||||||||
Revenues |
|
$ |
12,669 |
|
|
$ |
146,239 |
|
$ |
10,491 |
|
|
$ |
(647 |
) |
|
$ |
168,752 |
|
Direct operating expenses |
|
|
23,409 |
|
|
|
57,033 |
|
|
10,980 |
|
|
|
1,075 |
|
|
|
92,497 |
|
Selling, general and administrative expenses |
|
|
65,730 |
|
|
|
21,692 |
|
|
9,131 |
|
|
|
(535 |
) |
|
|
96,018 |
|
Depreciation and amortization |
|
|
19,246 |
|
|
|
1,802 |
|
|
1,563 |
|
|
|
3,066 |
|
|
|
25,677 |
|
Restructuring charges |
|
|
1,372 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
1,372 |
|
Operating income (loss) |
|
$ |
(97,088 |
) |
|
$ |
65,712 |
|
$ |
(11,183 |
) |
|
$ |
(4,253 |
) |
|
$ |
(46,812 |
) |
Reconciliation to adjusted operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-cash portion of arena license fees from |
|
|
(1,176 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(1,176 |
) |
Share-based compensation |
|
|
22,374 |
|
|
|
6,266 |
|
|
1,188 |
|
|
|
— |
|
|
|
29,828 |
|
Depreciation and amortization(1) |
|
|
19,246 |
|
|
|
1,802 |
|
|
1,563 |
|
|
|
3,990 |
|
|
|
26,601 |
|
Restructuring charges |
|
|
1,372 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
1,372 |
|
Adjusted operating income (loss) |
|
$ |
(55,272 |
) |
|
$ |
73,780 |
|
$ |
(8,432 |
) |
|
$ |
(263 |
) |
|
$ |
9,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
_________________
(1) Depreciation and amortization includes other purchase accounting adjustments of
(2) Includes inter-segment eliminations and, for operating income (loss), purchase accounting adjustments.
|
|||||||||||||||||||
SEGMENT RESULTS (continued) |
|||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
|
Six Months Ended |
|||||||||||||||||
|
|
Entertainment |
|
MSG Networks |
|
Tao Group Hospitality |
|
Other(2) |
|
Total |
|||||||||
Revenues |
|
$ |
281,849 |
|
|
$ |
301,454 |
|
$ |
236,550 |
|
|
$ |
(8,904 |
) |
|
$ |
810,949 |
|
Direct operating expenses |
|
|
183,645 |
|
|
|
154,347 |
|
|
121,973 |
|
|
|
2,054 |
|
|
|
462,019 |
|
Selling, general and administrative expenses |
|
|
184,478 |
|
|
|
85,167 |
|
|
74,779 |
|
|
|
(7,308 |
) |
|
|
337,116 |
|
Depreciation and amortization |
|
|
38,680 |
|
|
|
3,553 |
|
|
12,621 |
|
|
|
5,109 |
|
|
|
59,963 |
|
Impairment and other (gains) loss, net |
|
|
— |
|
|
|
— |
|
|
375 |
|
|
|
(536 |
) |
|
|
(161 |
) |
Operating income (loss) |
|
$ |
(124,954 |
) |
|
$ |
58,387 |
|
$ |
26,802 |
|
|
$ |
(8,223 |
) |
|
$ |
(47,988 |
) |
Reconciliation to adjusted operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-cash portion of arena license fees from |
|
|
(11,889 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(11,889 |
) |
Share-based compensation |
|
|
26,298 |
|
|
|
13,532 |
|
|
3,869 |
|
|
|
— |
|
|
|
43,699 |
|
Depreciation and amortization(1) |
|
|
38,680 |
|
|
|
3,553 |
|
|
12,621 |
|
|
|
8,232 |
|
|
|
63,086 |
|
Amortization for capitalized cloud computing costs |
|
|
7 |
|
|
|
88 |
|
|
— |
|
|
|
— |
|
|
|
95 |
|
Merger and acquisition related costs |
|
|
15,448 |
|
|
|
24,075 |
|
|
— |
|
|
|
— |
|
|
|
39,523 |
|
Impairment and other (gains) loss, net |
|
|
— |
|
|
|
— |
|
|
375 |
|
|
|
(536 |
) |
|
|
(161 |
) |
Adjusted operating income (loss) |
|
$ |
(56,410 |
) |
|
$ |
99,635 |
|
$ |
43,667 |
|
|
$ |
(527 |
) |
|
$ |
86,365 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Six Months Ended |
|||||||||||||||||
|
|
Entertainment |
|
MSG Networks |
|
Tao Group Hospitality |
|
Other(2) |
|
Total |
|||||||||
Revenues |
|
$ |
20,224 |
|
|
$ |
303,602 |
|
$ |
17,712 |
|
|
$ |
(2,240 |
) |
|
$ |
339,298 |
|
Direct operating expenses |
|
|
47,024 |
|
|
|
122,105 |
|
|
20,808 |
|
|
|
1,791 |
|
|
|
191,728 |
|
Selling, general and administrative expenses |
|
|
118,380 |
|
|
|
44,219 |
|
|
16,734 |
|
|
|
(1,658 |
) |
|
|
177,675 |
|
Depreciation and amortization |
|
|
41,260 |
|
|
|
3,630 |
|
|
2,609 |
|
|
|
6,588 |
|
|
|
54,087 |
|
Restructuring charges |
|
|
21,299 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
21,299 |
|
Operating income (loss) |
|
$ |
(207,739 |
) |
|
$ |
133,648 |
|
$ |
(22,439 |
) |
|
$ |
(8,961 |
) |
|
$ |
(105,491 |
) |
Reconciliation to adjusted operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-cash portion of arena license fees from |
|
|
(1,176 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(1,176 |
) |
Share-based compensation |
|
|
32,807 |
|
|
|
10,893 |
|
|
2,284 |
|
|
|
— |
|
|
|
45,984 |
|
Depreciation and amortization(1) |
|
|
41,260 |
|
|
|
3,630 |
|
|
2,609 |
|
|
|
8,436 |
|
|
|
55,935 |
|
Restructuring charges |
|
|
21,299 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
21,299 |
|
Adjusted operating income (loss) |
|
$ |
(113,549 |
) |
|
$ |
148,171 |
|
$ |
(17,546 |
) |
|
$ |
(525 |
) |
|
$ |
16,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
_________________
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
(2) Includes inter-segment eliminations and, for operating income (loss), purchase accounting adjustments.
|
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands) |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current Assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
1,258,105 |
|
|
$ |
1,516,992 |
|
Restricted cash |
|
|
23,914 |
|
|
22,984 |
||
Accounts receivable, net |
|
|
190,491 |
|
|
|
184,613 |
|
Net related party receivables |
|
|
48,929 |
|
|
|
31,916 |
|
Prepaid income taxes |
|
|
1,850 |
|
|
|
12,772 |
|
Prepaid expenses |
|
|
69,476 |
|
|
|
67,445 |
|
Other current assets |
|
|
42,637 |
|
|
|
36,014 |
|
Total current assets |
|
|
1,635,402 |
|
|
|
1,872,736 |
|
Investments in nonconsolidated affiliates |
|
|
46,412 |
|
|
|
49,221 |
|
Property and equipment, net |
|
|
2,474,693 |
|
|
|
2,156,292 |
|
Right-of-use lease assets |
|
|
470,253 |
|
|
|
280,579 |
|
Amortizable intangible assets, net |
|
|
182,006 |
|
|
|
198,274 |
|
Indefinite-lived intangible assets |
|
|
63,801 |
|
|
|
63,801 |
|
|
|
|
500,181 |
|
|
|
502,195 |
|
Other assets |
|
|
150,326 |
|
|
|
166,781 |
|
Total assets |
|
$ |
5,523,074 |
|
|
$ |
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) |
||||||||
|
|
|
|
|
||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY |
|
|
|
|
||||
Current Liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
43,815 |
|
|
$ |
26,644 |
|
Net related party payables, current |
|
|
56,597 |
|
|
|
23,173 |
|
Current portion of long-term debt, net of deferred financing costs |
|
|
56,483 |
|
|
|
53,973 |
|
Income taxes payable |
|
|
406 |
|
|
|
2,527 |
|
Accrued liabilities: |
|
|
|
|
||||
Employee related costs |
|
|
73,078 |
|
|
|
91,853 |
|
Other accrued liabilities |
|
|
268,135 |
|
|
|
210,749 |
|
Operating lease liabilities, current |
|
|
65,663 |
|
|
|
73,423 |
|
Collections due to promoters |
|
|
49,513 |
|
|
|
37,877 |
|
Deferred revenue |
|
|
256,154 |
|
|
|
209,651 |
|
Total current liabilities |
|
|
869,844 |
|
|
|
729,870 |
|
Long-term debt, net of deferred financing costs |
|
|
1,606,759 |
|
|
|
1,650,628 |
|
Operating lease liabilities, noncurrent |
|
|
450,019 |
|
|
|
233,556 |
|
Defined benefit and other postretirement obligations |
|
|
52,653 |
|
|
|
54,179 |
|
Other employee related costs |
|
|
17,814 |
|
|
|
21,193 |
|
Collections due to promoters, noncurrent |
|
|
— |
|
|
|
6,625 |
|
Deferred tax liabilities, net |
|
|
181,214 |
|
|
|
200,325 |
|
Other liabilities |
|
|
74,952 |
|
|
|
75,263 |
|
Total liabilities |
|
|
3,253,255 |
|
|
|
2,971,639 |
|
Redeemable noncontrolling interests |
|
|
142,004 |
|
|
|
137,834 |
|
|
|
|
|
|
||||
Class A Common stock, par value |
|
|
273 |
|
|
|
271 |
|
Class |
|
|
69 |
|
|
|
69 |
|
Preferred stock, par value |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
2,317,415 |
|
|
|
2,294,775 |
|
Retained earnings |
|
|
(173,302 |
) |
|
|
(96,341 |
) |
Accumulated other comprehensive loss |
|
|
(32,632 |
) |
|
|
(30,272 |
) |
|
|
|
2,111,823 |
|
|
|
2,168,502 |
|
Nonredeemable noncontrolling interests |
|
|
15,992 |
|
|
|
11,904 |
|
Total equity |
|
|
2,127,815 |
|
|
|
2,180,406 |
|
Total liabilities, redeemable noncontrolling interests and equity |
|
$ |
5,523,074 |
|
|
$ |
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) |
||||||||
|
|
Six Months Ended |
||||||
|
|
|
||||||
|
|
2021 |
|
2020 |
||||
Net cash provided by (used in) operating activities |
|
$ |
132,786 |
|
|
$ |
(102,467 |
) |
Net cash (used in) provided by investing activities |
|
|
(332,532 |
) |
|
|
136,238 |
|
Net cash (used in) provided by financing activities |
|
|
(57,639 |
) |
|
|
598,512 |
|
Effect of exchange rates on cash, cash equivalents and restricted cash |
|
|
(572 |
) |
|
|
7,795 |
|
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
|
(257,957 |
) |
|
|
640,078 |
|
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 |
|
$ |
1,282,019 |
|
|
$ |
1,761,219 |
|
_________________
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220209005400/en/
Senior Vice President, Communications
(212) 465-4402
Senior Vice President, Investor Relations &
(212) 465-6072
Source:
FAQ
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