Madison Square Garden Sports Corp. Reports Fiscal 2022 Second Quarter Results
Madison Square Garden Sports Corp. (NYSE: MSGS) reported FY2022 Q2 revenues of $289.6 million, a significant rise from $28.8 million in the previous year. Operating income reached $35.9 million, up $74.3 million year-over-year, while adjusted operating income improved to $55.7 million. The company benefited from the return of fans to The Garden, leading to increased ticket sales and media rights fees. Comparatively, the prior year saw significant restrictions due to COVID-19. The positive momentum is expected to continue throughout the fiscal year.
- Revenues increased by $260.8 million compared to the previous year due to increased attendance and fan engagement.
- Regular season average per-game revenues exceeded pre-pandemic levels, indicating strong demand.
- Operating income improved to $35.9 million from an operating loss of $38.4 million in the prior year.
- None.
FY2022 Second Quarter Revenues of
FY2022 Second Quarter Regular Season Per-Game Revenues Above Pre-Pandemic Levels(2)
The
As a result of this positive momentum, the Company generated revenues of
Results from Operations
Results for the three and six months ended
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Three Months Ended |
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Six Months Ended |
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Change |
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Change |
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$ millions |
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2021 |
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2020 |
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$ |
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% |
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2021 |
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2020 |
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$ |
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% |
Revenues |
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NM |
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NM |
Operating income (loss) |
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NM |
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Adjusted operating income (loss)(1) |
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NM |
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Note: Does not foot due to rounding
- See page 3 of this earnings release for the definition of adjusted operating income (loss) included in the discussion of non-GAAP financial measures.
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Fiscal 2020 second quarter results on a pro-forma basis for the spin-off of Madison Square Garden Entertainment Corp ("
MSG Entertainment ").
Summary of Reported Results from Operations for the Fiscal 2022 Second Quarter
For the fiscal 2022 second quarter, the Company generated revenues of
Pre/regular season ticket-related revenues increased
Local media rights fees increased
League distribution revenues increased
Suite license fee revenues increased
Direct operating expenses of
Selling, general and administrative expenses of
Operating income of
About
Non-GAAP Financial Measures
We define adjusted operating income (loss), which is a non-GAAP financial measure, as operating income (loss) excluding (i) deferred rent expense under the Arena License Agreements with
We believe adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of our Company. 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 industry 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 833-942-2482 / Conference ID Number 6569519
Conference call replay number is 855-859-2056 / Conference ID Number 6569519 until
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) |
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Three Months Ended |
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Six Months Ended |
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2021 |
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2020 |
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2021 |
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2020 |
Revenues |
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Direct operating expenses |
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192,847 |
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16,661 |
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201,425 |
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56,447 |
Selling, general and administrative expenses |
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59,600 |
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48,909 |
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103,328 |
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91,905 |
Depreciation and amortization |
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1,215 |
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1,607 |
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2,641 |
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3,267 |
Operating income (loss) |
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35,919 |
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(38,406) |
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981 |
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(65,810) |
Other income (expense): |
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Interest income |
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43 |
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— |
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93 |
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— |
Interest expense |
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(3,585) |
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(2,487) |
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(6,688) |
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(4,476) |
Miscellaneous expense, net |
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(64) |
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(70) |
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(127) |
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(190) |
Income (loss) from operations before income taxes |
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32,313 |
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(40,963) |
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(5,741) |
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(70,476) |
Income tax (expense) benefit |
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(17,115) |
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(170) |
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4,054 |
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328 |
Net income (loss) |
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15,198 |
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(41,133) |
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(1,687) |
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(70,148) |
Less: Net loss attributable to nonredeemable noncontrolling interests |
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(647) |
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(508) |
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(1,127) |
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(1,106) |
Net income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders |
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Basic earnings (loss) per common share attributable to Madison
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Diluted earnings (loss) per common share attributable to Madison
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Basic weighted-average number of common shares outstanding |
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24,261 |
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24,144 |
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24,217 |
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24,103 |
Diluted weighted-average number of common shares outstanding |
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24,373 |
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24,144 |
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24,217 |
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24,103 |
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO
ADJUSTED OPERATING INCOME (LOSS)
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:
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Deferred rent. This adjustment eliminates the impact of the non-cash portion of rent expense associated with the Arena License Agreements with
MSG Entertainment . - Depreciation and amortization. This adjustment eliminates depreciation, amortization and impairments of property and equipment, goodwill and other intangible assets in all periods.
- Share-based compensation. This adjustment eliminates the compensation expense related to restricted stock units and stock options granted under the Company's employee stock plan and non-employee director plan in all periods.
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Restructuring charges. This adjustment eliminates costs related to termination benefits provided to employees as part of the Company's workforce reduction in
August 2020 .
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Three Months Ended |
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Six Months Ended |
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2021 |
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2020 |
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2021 |
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2020 |
Operating income (loss) |
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Deferred rent |
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11,179 |
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1,802 |
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11,708 |
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1,802 |
Depreciation and amortization |
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1,215 |
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1,607 |
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2,641 |
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3,267 |
Share-based compensation |
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7,354 |
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15,981 |
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12,205 |
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22,326 |
Restructuring charges |
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— |
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— |
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— |
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1,644 |
Adjusted operating income (loss) |
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CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) |
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(Unaudited) |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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Restricted cash |
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745 |
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7,134 |
Accounts receivable, net of allowance for doubtful accounts of |
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79,737 |
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74,197 |
Net related party receivables |
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31,751 |
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6,420 |
Prepaid expenses |
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33,996 |
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16,724 |
Other current assets |
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17,511 |
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15,869 |
Total current assets |
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218,555 |
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185,246 |
Property and equipment, net of accumulated depreciation and amortization of |
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34,233 |
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35,716 |
Right-of-use lease assets |
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697,309 |
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703,521 |
Amortizable intangible assets, net |
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1,165 |
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1,695 |
Indefinite-lived intangible assets |
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112,144 |
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112,144 |
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226,955 |
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226,955 |
Deferred income tax assets, net |
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19,975 |
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15,943 |
Other assets |
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39,085 |
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28,719 |
Total assets |
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CONSOLIDATED BALANCE SHEETS (continued) (In thousands, except per share data) |
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(Unaudited) |
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LIABILITIES AND EQUITY |
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Current Liabilities: |
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Accounts payable |
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Net related party payables |
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24,708 |
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17,089 |
Debt |
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30,000 |
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30,000 |
Accrued liabilities: |
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Employee related costs |
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88,312 |
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90,269 |
Other accrued liabilities |
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85,883 |
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55,718 |
Operating lease liabilities, current |
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43,081 |
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41,951 |
Deferred revenue |
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176,805 |
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131,025 |
Total current liabilities |
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451,798 |
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368,278 |
Long-term debt |
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330,000 |
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355,000 |
Operating lease liabilities, noncurrent |
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692,532 |
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691,152 |
Defined benefit obligations |
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6,149 |
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6,283 |
Other employee related costs |
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46,234 |
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57,740 |
Deferred revenue, noncurrent |
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31,324 |
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31,603 |
Other liabilities |
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994 |
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1,749 |
Total liabilities |
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1,559,031 |
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1,511,805 |
Commitments and contingencies |
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Class A Common stock, par value |
|
204 |
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204 |
Class |
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45 |
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45 |
Preferred stock, par value |
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— |
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— |
Additional paid-in capital |
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6,460 |
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23,102 |
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(129,426) |
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(146,734) |
Accumulated deficit |
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(87,390) |
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(78,898) |
Accumulated other comprehensive loss |
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(1,983) |
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(2,027) |
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(212,090) |
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(204,308) |
Nonredeemable noncontrolling interests |
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2,480 |
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2,442 |
Total equity |
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(209,610) |
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(201,866) |
Total liabilities and equity |
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SELECTED CASH FLOW INFORMATION (Dollars in thousands) (Unaudited) |
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Six Months Ended |
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2021 |
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2020 |
Net cash provided by (used in) operating activities |
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Net cash used in investing activities |
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(627) |
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(141) |
Net cash (used in) provided by financing activities |
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(39,879) |
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11,363 |
Net decrease in cash, cash equivalents and restricted cash |
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(16,476) |
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(10,411) |
Cash, cash equivalents and restricted cash at beginning of period |
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72,036 |
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90,673 |
Cash, cash equivalents and restricted cash at end of period |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20220203005247/en/
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Source:
FAQ
What were Madison Square Garden Sports Corp.'s revenues for FY2022 Q2?
How much did the operating income improve in FY2022 Q2 for MSGS?
Did MSGS see an increase in ticket sales in FY2022 Q2?