SPHERE ENTERTAINMENT CO. REPORTS FISCAL 2024 FOURTH QUARTER AND FULL YEAR RESULTS
Sphere Entertainment Co. (NYSE: SPHR) reported fiscal 2024 fourth quarter and full-year results. Key highlights include:
- Revenues of $1,026.9 million for fiscal 2024, up $453.1 million from prior year
- Operating loss of $341.2 million, increased by $68.2 million
- Adjusted operating income of $80.7 million, improved by $203.3 million
- Q4 revenues of $273.4 million, up $144.3 million year-over-year
- Sphere segment reported Q4 revenues of $151.2 million, including $74.5 million from The Sphere Experience
- MSG Networks segment Q4 revenues decreased 5% to $122.2 million
- MSG Networks facing debt refinancing challenges, pursuing work-out with lenders
Sphere Entertainment Co. (NYSE: SPHR) ha riportato i risultati del quarto trimestre e dell'intero anno fiscale 2024. I punti salienti includono:
- Ricavi di $1.026,9 milioni per l'anno fiscale 2024, in aumento di $453,1 milioni rispetto all'anno precedente
- Perdita operativa di $341,2 milioni, aumentata di $68,2 milioni
- Reddito operativo rettificato di $80,7 milioni, migliorato di $203,3 milioni
- Ricavi del Q4 di $273,4 milioni, in aumento di $144,3 milioni rispetto all'anno precedente
- Il segmento Sphere ha riportato ricavi del Q4 di $151,2 milioni, inclusi $74,5 milioni derivanti da The Sphere Experience
- I ricavi del segmento MSG Networks nel Q4 sono diminuiti del 5% a $122,2 milioni
- MSG Networks sta affrontando sfide nel rifinanziamento del debito, cercando di lavorare con i creditori
Sphere Entertainment Co. (NYSE: SPHR) reportó los resultados del cuarto trimestre y del año fiscal 2024. Los aspectos más destacados incluyen:
- Ingresos de $1,026.9 millones para el año fiscal 2024, un aumento de $453.1 millones en comparación con el año anterior
- Pérdida operativa de $341.2 millones, un incremento de $68.2 millones
- Ingreso operativo ajustado de $80.7 millones, mejorado en $203.3 millones
- Ingresos del Q4 de $273.4 millones, un aumento de $144.3 millones interanual
- El segmento Sphere reportó ingresos del Q4 de $151.2 millones, incluidos $74.5 millones de The Sphere Experience
- Los ingresos del segmento MSG Networks en el Q4 disminuyeron un 5% a $122.2 millones
- MSG Networks se enfrenta a desafíos en el refinanciamiento de deuda, buscando un acuerdo con los prestamistas
스피어 엔터테인먼트(주) (NYSE: SPHR)가 2024 회계연도 4분기 및 전체 연도 실적을 발표했습니다. 주요 하이라이트는 다음과 같습니다:
- 2024 회계연도 매출 $1,026.9 백만으로, 전년 대비 $453.1 백만 증가
- 운영 손실 $341.2 백만으로, $68.2 백만 증가
- 조정된 운영 수익 $80.7 백만으로, $203.3 백만 개선
- 4분기 매출 $273.4 백만으로, 전년 대비 $144.3 백만 증가
- 스피어 세그먼트는 4분기 매출 $151.2 백만을 기록했으며, 여기에는 The Sphere Experience에서 발생한 $74.5 백만 포함
- MSG Networks 세그먼트 4분기 매출이 5% 감소하여 $122.2 백만에 달함
- MSG Networks는 부채 재융자 문제에 직면하여 대출자와의 협상을 진행 중
Sphere Entertainment Co. (NYSE: SPHR) a publié les résultats du quatrième trimestre et de l'exercice fiscal 2024. Les points clés comprennent :
- Revenus de $1.026,9 millions pour l'exercice fiscal 2024, en hausse de $453,1 millions par rapport à l'année précédente
- Perte d'exploitation de $341,2 millions, augmentée de $68,2 millions
- Revenu d'exploitation ajusté de $80,7 millions, amélioré de $203,3 millions
- Revenus du Q4 de $273,4 millions, en hausse de $144,3 millions d'une année sur l'autre
- Le segment Sphere a enregistré des revenus du Q4 de $151,2 millions, dont $74,5 millions proviennent de The Sphere Experience
- Les revenus du segment MSG Networks pour le Q4 ont diminué de 5 % à $122,2 millions
- MSG Networks fait face à des défis de refinancement de la dette, cherchant à négocier avec les prêteurs
Sphere Entertainment Co. (NYSE: SPHR) hat die Ergebnisse für das vierte Quartal und das gesamte Fiskaljahr 2024 veröffentlicht. Wichtige Höhepunkte sind:
- Umsatz von $1.026,9 Millionen für das Fiskaljahr 2024, ein Anstieg um $453,1 Millionen im Vergleich zum Vorjahr
- Operativer Verlust von $341,2 Millionen, gestiegen um $68,2 Millionen
- Bereinigtes Betriebsergebnis von $80,7 Millionen, verbessert um $203,3 Millionen
- Q4-Umsatz von $273,4 Millionen, ein Anstieg um $144,3 Millionen im Jahresvergleich
- Der Sphere-Sektor berichtete im Q4 von Umsätzen in Höhe von $151,2 Millionen, einschließlich $74,5 Millionen aus The Sphere Experience
- Der Umsatz des MSG Networks-Segments im Q4 ging um 5 % auf $122,2 Millionen zurück
- MSG Networks sieht sich Herausforderungen bei der Schuldenrefinanzierung gegenüber und verfolgt eine Lösung mit den Gläubigern
- Significant revenue growth for fiscal 2024, up $453.1 million to $1,026.9 million
- Substantial improvement in adjusted operating income, up $203.3 million to $80.7 million
- Strong Q4 performance with revenues up $144.3 million to $273.4 million
- Successful launch of Sphere in Las Vegas, generating $151.2 million in Q4 revenues
- The Sphere Experience generated over $1 million in average daily ticket sales during Q4
- Increased operating loss of $341.2 million for fiscal 2024, up $68.2 million
- MSG Networks segment revenues declined 5% in Q4 to $122.2 million
- MSG Networks facing difficulties in refinancing $849.8 million debt due October 2024
- Total subscribers for MSG Networks decreased by approximately 13%
Insights
Sphere Entertainment's fiscal 2024 results show a significant revenue increase but continued operating losses. The company reported
The Sphere segment generated
Of particular concern is MSG Networks'
The Sphere venue in Las Vegas shows promising early results, with over
However, the
The company's ability to monetize the Sphere through diverse events and advertising on the Exosphere is important for future profitability. The upcoming refinancing challenge for MSG Networks adds significant uncertainty to the company's financial outlook.
Recent Sphere highlights include:
- Dead & Co. completed a successful 30-show residency in early August, while the Eagles residency begins in September and is slated for 20 shows after multiple extensions due to demand;
- Afterlife presents Anyma 'The End Of Genesys' will be the first electronic dance music performances at the venue with 6 shows starting in late December;
- The Sphere Experience featuring Postcard from Earth generated over
one million dollars in average daily ticket sales on the days it ran during the fiscal fourth quarter; - In June, Sphere hosted its first corporate keynote event with Hewlett Packard Enterprise, as well as the NHL Draft, which was the first live television event broadcast from Sphere; and
- In September, Sphere will host UFC 306, the first live sports event at the venue.
During the fiscal 2024 fourth quarter, MSG Networks concluded full regular season coverage of its five NBA and NHL professional sports teams followed by extensive programming around the New York Knicks, Rangers and Islanders postseason runs. This included telecasts of first-round playoff games, along with additional comprehensive pre/post-game coverage of the Knicks, Rangers and Islanders playoff series across its linear and digital platforms.
For fiscal 2024, the Company reported revenues of
For the fiscal 2024 fourth quarter, the Company reported revenues of
Executive Chairman and CEO James L. Dolan said, "Fiscal 2024 marked the opening of Sphere in
Segment Results for the Quarters and Years Ended June 30, 2024 and 2023:
(In millions) | Three Months Ended | Twelve Months Ended | ||||||||||||||
June 30, | Change | June 30, | Change | |||||||||||||
2024 | 2023 | $ | % | 2024 | 2023 | $ | % | |||||||||
Revenues: | ||||||||||||||||
Sphere | $ 151.2 | $ 0.7 | $ 150.5 | NM | $ 497.2 | $ 2.6 | $ 494.5 | NM | ||||||||
MSG Networks | 122.2 | 128.4 | (6.2) | (5) % | 529.7 | 571.2 | (41.5) | (7) % | ||||||||
Total Revenues | $ 273.4 | $ 129.1 | $ 144.3 | 112 % | $ 1,026.9 | $ 573.8 | $ 453.1 | 79 % | ||||||||
Operating Income (Loss): | ||||||||||||||||
Sphere | $ (95.2) | $ (9.3) | (10) % | (30) % | ||||||||||||
MSG Networks(2) | 33.2 | 24.8 | 8.3 | 33 % | 139.1 | 96.5 | 42.6 | 44 % | ||||||||
Total Operating Loss | $ (71.4) | $ (70.3) | $ (1.0) | (1) % | $ (68.2) | (25) % | ||||||||||
Adjusted Operating Income (Loss): | ||||||||||||||||
Sphere | $ (5.5) | $ (90.4) | $ 84.9 | 94 % | $ (61.5) | $ 230.9 | 79 % | |||||||||
MSG Networks(2) | 31.1 | 30.6 | 0.6 | 2 % | 142.3 | 169.9 | (27.6) | (16) % | ||||||||
Total Adjusted Operating Income (Loss) | $ 25.7 | $ (59.8) | $ 85.5 | NM | $ 80.7 | $ 203.3 | NM |
Note: Does not foot due to rounding. NM — Absolute percentages greater than | |
(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) | As a result of the spin-off of Madison Square Garden Entertainment Corp. ("MSG Entertainment") in April 2023 (which is presented as discontinued operations under GAAP), prior period results of the MSG Networks segment have been recast to exclude expenses related to MSG Networks' advertising sales representation agreement with MSG Entertainment, which was terminated effective as of December 31, 2022. The MSG Networks segment results previously included intercompany expenses of |
Sphere
For the fiscal 2024 fourth quarter, the Sphere segment reported revenues of
For the fiscal 2024 fourth quarter, the Sphere segment had direct operating expenses of
Fiscal 2024 fourth quarter selling, general and administrative expenses of
Fiscal 2024 fourth quarter operating loss of
MSG Networks
For the fiscal 2024 fourth quarter, the MSG Networks segment reported total revenues of
Distribution revenue decreased
As a result of the launch of MSG+ in June 2023, distribution revenue now includes both affiliation fee revenue earned from MSG Networks' distributors for the right to carry the Company's networks as well as revenue earned from subscriptions and single game purchases on MSG+. In addition, total subscribers includes both affiliate subscribers as well as monthly and annual subscribers of MSG+.
Advertising revenue increased
Fiscal 2024 fourth quarter direct operating expenses of
Fiscal 2024 fourth quarter selling, general and administrative expenses of
Fiscal 2024 fourth quarter operating income of
Other Matters
As of June 30, 2024, MSG Networks had approximately
About Sphere Entertainment Co.
Sphere Entertainment Co. is a premier live entertainment and media company. The Company includes Sphere, a next-generation entertainment medium powered by cutting-edge technologies to redefine the future of entertainment. The first Sphere venue opened in
Non-GAAP Financial Measures
We define adjusted operating income (loss), which is a non-GAAP financial measure, as operating income (loss) before ((i) depreciation, amortization and impairments of property and equipment, goodwill and intangible assets, (ii) amortization for capitalized cloud computing arrangement costs, (iii) share-based compensation expense, (iv) restructuring charges or credits, (v) merger and acquisition-related costs, including litigation expenses, (vi) gains or losses on sales or dispositions of businesses and associated settlements, (vii) the impact of purchase accounting adjustments related to business acquisitions, and (ix) gains and losses related to the remeasurement of liabilities under the Company's Executive Deferred Compensation Plan. We believe that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of our business without regard to the settlement of an obligation that is not expected to be made in cash. We eliminate merger and acquisition-related costs, when applicable, 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. In addition, management believes that the exclusion of gains and losses related to the remeasurement of liabilities under the Company's Executive Deferred Compensation Plan, provides investors with a clearer picture of the Company's operating performance given that, in accordance 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 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 or events may differ materially from those in the forward-looking statements as a result of various factors, including financial community perceptions of the Company and its business, operations, financial condition and the industries in which it operates 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.
Contacts:
|
Ari Danes, CFA Investor Relations and Financial Communications (212) 465-6072
|
Justin Blaber Financial Communications (212) 465-6109
|
Sarah Rothschild Investor Relations (212) 631-5345 |
Conference Call Information:
The conference call will be Webcast live today at 10:00 a.m. ET at investor.sphereentertainmentco.com
Conference call dial-in number is 888-800-3155 / Conference ID Number 8089430
Conference call replay number is 800-770-2030 / Conference ID Number 8089430 until August 21, 2024
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) | ||||||||
Three Months Ended | Twelve Months Ended | |||||||
June 30, | June 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Revenues | $ 273,395 | $ 129,099 | $ 1,026,889 | $ 573,831 | ||||
Direct operating expenses | (149,519) | (82,726) | (547,824) | (342,211) | ||||
Selling, general and administrative expenses | (107,040) | (109,662) | (432,853) | (452,142) | ||||
Depreciation and amortization | (82,337) | (8,997) | (256,494) | (30,716) | ||||
Impairment and other (losses) gains, net | (5,735) | 3,120 | (121,473) | 6,120 | ||||
Restructuring charges | (141) | (1,179) | (9,486) | (27,924) | ||||
Operating loss | (71,377) | (70,345) | (341,241) | (273,042) | ||||
Other income (expense): | ||||||||
Interest income | 7,729 | 2,209 | 25,687 | 11,585 | ||||
Interest expense | (26,921) | — | (79,868) | — | ||||
Other (expense) income, net | (2,613) | 542,839 | 35,197 | 536,887 | ||||
(Loss) income from continuing operations before income taxes | (93,182) | 474,703 | (360,225) | 275,430 | ||||
Income tax benefit (expense) | 21,965 | (115,066) | 135,592 | (103,403) | ||||
(Loss) income from continuing operations | (71,217) | 359,637 | (224,633) | 172,027 | ||||
Income from discontinued operations, net of taxes | 24,631 | 178,087 | 23,984 | 333,653 | ||||
Net (loss) income | (46,586) | 537,724 | (200,649) | 505,680 | ||||
Less: Net income attributable to redeemable noncontrolling interests from discontinued operations | — | 1,264 | — | 3,925 | ||||
Less: Net loss attributable to nonredeemable noncontrolling interests from discontinued operations | — | (335) | — | (1,017) | ||||
Net (loss) income attributable to Sphere Entertainment Co.'s stockholders | $ (46,586) | $ 536,795 | $ (200,649) | $ 502,772 | ||||
Basic (loss) earnings per common share | ||||||||
Continuing operations | $ (2.00) | $ 10.34 | $ (6.36) | $ 4.96 | ||||
Discontinued operations | $ 0.69 | $ 5.09 | $ 0.68 | $ 9.55 | ||||
Basic (loss) earnings per common share attributable to Sphere Entertainment Co.'s stockholders | $ (1.31) | $ 15.43 | $ (5.68) | $ 14.51 | ||||
Diluted (loss) earnings per common share | ||||||||
Continuing operations | $ (2.00) | $ 10.21 | $ (6.36) | $ 4.93 | ||||
Discontinued operations | $ 0.69 | $ 5.03 | $ 0.68 | $ 9.47 | ||||
Diluted (loss) earnings per common share attributable to Sphere Entertainment Co.'s stockholders | $ (1.31) | $ 15.24 | $ (5.68) | $ 14.40 | ||||
Weighted-average number of common shares outstanding: | ||||||||
Basic | 35,570 | 34,792 | 35,301 | 34,651 | ||||
Diluted | 35,570 | 35,232 | 35,301 | 34,929 |
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO
ADJUSTED OPERATING INCOME (LOSS)
(In thousands)
(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:
- Share-based compensation. This adjustment eliminates the compensation expense relating to restricted stock units, performance stock units and stock options granted under the Sphere Entertainment Employee Stock Plan, MSG Sports Employee Stock Plan, MSG Networks Employee Stock Plan, as amended and assumed by Sphere Entertainment, Sphere Entertainment Non-Employee Director Plan and MSG Networks Non-Employee Director Plan.
- Depreciation and amortization. This adjustment eliminates depreciation and amortization of property and equipment and intangible assets.
- Restructuring charges. This adjustment eliminates costs related to termination benefits provided to employees as part of the Company's full-time workforce reductions.
- Impairment and other (gains) losses, net. This adjustment eliminates non-cash impairment charges and the impact of gains or losses from the disposition of assets or businesses.
- Merger and acquisition related costs, net of insurance recoveries. This adjustment eliminates costs related to mergers and acquisitions, including litigation expenses.
- Amortization for capitalized cloud computing arrangement costs. This adjustment eliminates amortization of capitalized cloud computing arrangement costs.
- Remeasurement of deferred compensation plan liabilities. This adjustment eliminates the impact of gains and losses related to the remeasurement of liabilities under the Company's executive deferred compensation plan.
Three Months Ended | Twelve Months Ended | |||||||
June 30, | June 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Operating loss | (71,377) | $ (70,345) | $ (341,241) | $ (273,042) | ||||
Share-based compensation | 13,321 | 5,657 | 46,844 | 42,607 | ||||
Depreciation and amortization | 82,337 | 8,997 | 256,494 | 30,716 | ||||
Restructuring charges | 141 | 1,179 | 9,486 | 27,924 | ||||
Impairment and other losses (gains), net | 5,735 | (3,120) | 121,473 | (6,120) | ||||
Merger and acquisition related costs, net of insurance recoveries | (4,563) | (2,134) | (12,718) | 55,047 | ||||
Amortization for capitalized cloud computing costs | 21 | (255) | 87 | 161 | ||||
Remeasurement of deferred compensation plan liabilities | 42 | 187 | 306 | 187 | ||||
Adjusted operating income (loss) | $ 25,657 | $ (59,834) | $ 80,731 | $ (122,520) |
SEGMENT RESULTS (In thousands) (Unaudited) | ||||||
BUSINESS SEGMENT RESULTS | ||||||
Three Months Ended June 30, 2024 | ||||||
Sphere | MSG Networks | Total | ||||
Revenues | $ 151,217 | $ 122,178 | $ 273,395 | |||
Direct operating expenses | (67,870) | (81,649) | (149,519) | |||
Selling, general and administrative expenses | (102,109) | (4,931) | (107,040) | |||
Depreciation and amortization | (80,121) | (2,216) | (82,337) | |||
Impairment and other losses, net | (5,735) | — | (5,735) | |||
Restructuring charges | 88 | (229) | (141) | |||
Operating (loss) income | $ (104,530) | $ 33,153 | $ (71,377) | |||
Reconciliation to adjusted operating (loss) income: | ||||||
Share-based compensation | 12,337 | 984 | 13,321 | |||
Depreciation and amortization | 80,121 | 2,216 | 82,337 | |||
Restructuring charges | (88) | 229 | 141 | |||
Impairment and other losses, net | 5,735 | — | 5,735 | |||
Merger and acquisition related costs, net of insurance recoveries | 910 | (5,473) | (4,563) | |||
Amortization for capitalized cloud computing costs | — | 21 | 21 | |||
Remeasurement of deferred compensation plan liabilities | 42 | — | 42 | |||
Adjusted operating (loss) income | $ (5,473) | $ 31,130 | $ 25,657 | |||
Three Months Ended June 30, 2023 | ||||||
Sphere | MSG Networks | Total | ||||
Revenues | $ 691 | $ 128,408 | $ 129,099 | |||
Direct operating expenses | (1,131) | (81,595) | (82,726) | |||
Selling, general and administrative expenses | (90,329) | (19,333) | (109,662) | |||
Depreciation and amortization | (7,273) | (1,724) | (8,997) | |||
Impairment and other gains (losses), net | 3,229 | (109) | 3,120 | |||
Restructuring charges | (379) | (800) | (1,179) | |||
Operating (loss) income | $ (95,192) | $ 24,847 | $ (70,345) | |||
Reconciliation to adjusted operating (loss) income: | ||||||
Share-based compensation | 4,880 | 777 | 5,657 | |||
Depreciation and amortization | 7,273 | 1,724 | 8,997 | |||
Restructuring charges | 379 | 800 | 1,179 | |||
Impairment and other (gains) losses, net | (3,229) | 109 | (3,120) | |||
Merger and acquisition related costs | (4,412) | 2,278 | (2,134) | |||
Amortization for capitalized cloud computing costs | (285) | 30 | (255) | |||
Remeasurement of deferred compensation plan liabilities | 187 | $ — | 187 | |||
Adjusted operating (loss) income | $ (90,399) | $ 30,565 | $ (59,834) |
SEGMENT RESULTS (Continued) (In thousands) (Unaudited) | ||||||
Year Ended June 30, 2024 | ||||||
Sphere | MSG Networks | Total | ||||
Revenues | $ 497,159 | $ 529,730 | $ 1,026,889 | |||
Direct operating expenses | (205,307) | (342,517) | (547,824) | |||
Selling, general and administrative expenses | (393,039) | (39,814) | (432,853) | |||
Depreciation and amortization | (248,248) | (8,246) | (256,494) | |||
Impairment and other losses, net | (121,473) | — | (121,473) | |||
Restructuring charges | (9,476) | (10) | (9,486) | |||
Operating (loss) income | $ (480,384) | $ 139,143 | $ (341,241) | |||
Reconciliation to adjusted operating (loss) income: | ||||||
Share-based compensation | 40,514 | 6,330 | 46,844 | |||
Depreciation and amortization | 248,248 | 8,246 | 256,494 | |||
Restructuring charges | 9,476 | 10 | 9,486 | |||
Impairment and other losses, net | 121,473 | — | 121,473 | |||
Merger and acquisition related costs, net of insurance recoveries | (1,176) | (11,542) | (12,718) | |||
Amortization for capitalized cloud computing costs | — | 87 | 87 | |||
Remeasurement of deferred compensation plan liabilities | 306 | — | 306 | |||
Adjusted operating (loss) income | $ (61,543) | $ 142,274 | $ 80,731 | |||
Year Ended June 30, 2023 | ||||||
Sphere | MSG Networks | Total | ||||
Revenues | $ 2,610 | $ 571,221 | $ 573,831 | |||
Direct operating expenses | (5,545) | (336,666) | (342,211) | |||
Selling, general and administrative expenses | (325,660) | (126,482) | (452,142) | |||
Depreciation and amortization | (24,048) | (6,668) | (30,716) | |||
Impairment and other gains (losses), net | 6,229 | (109) | 6,120 | |||
Restructuring charges | (23,136) | (4,788) | (27,924) | |||
Operating (loss) income | $ (369,550) | $ 96,508 | $ (273,042) | |||
Reconciliation to adjusted operating (loss) income: | ||||||
Share-based compensation | 36,188 | 6,419 | 42,607 | |||
Depreciation and amortization | 24,048 | 6,668 | 30,716 | |||
Restructuring charges | 23,136 | 4,788 | 27,924 | |||
Impairment and other (gains) losses, net | (6,229) | 109 | (6,120) | |||
Merger and acquisition related costs | (189) | 55,236 | 55,047 | |||
Amortization for capitalized cloud computing costs | — | 161 | 161 | |||
Remeasurement of deferred compensation plan liabilities | 187 | — | 187 | |||
Adjusted operating (loss) income | $ (292,409) | $ 169,889 | $ (122,520) |
CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) (Unaudited) | ||||
June 30, | ||||
2024 | 2023 | |||
ASSETS | ||||
Current Assets: | ||||
Cash, cash equivalents and restricted cash | $ 573,233 | $ 429,114 | ||
Accounts receivable, net | 228,230 | 112,309 | ||
Related party receivables, current | 9,377 | 26,405 | ||
Prepaid expenses and other current assets | 54,855 | 56,085 | ||
Total current assets | 865,695 | 623,913 | ||
Non-Current Assets: | ||||
Investments | 30,728 | 395,606 | ||
Property and equipment, net | 3,158,420 | 3,307,161 | ||
Right-of-use lease assets | 106,468 | 84,912 | ||
Goodwill | 470,152 | 456,807 | ||
Intangible assets, net | 31,940 | 17,910 | ||
Other non-current assets | 124,489 | 86,706 | ||
Total assets | $ 4,787,892 | $ 4,973,015 | ||
LIABILITIES AND EQUITY | ||||
Current Liabilities: | ||||
Accounts payable, accrued and other current liabilities | $ 417,087 | $ 515,731 | ||
Related party payables, current | 8,200 | 56,446 | ||
Current portion of long-term debt, net | 849,437 | 82,500 | ||
Operating lease liabilities, current | 18,548 | 10,127 | ||
Deferred revenue | 80,404 | 27,337 | ||
Total current liabilities | 1,373,676 | 692,141 | ||
Non-Current Liabilities: | ||||
Long-term debt, net | 522,735 | 1,118,387 | ||
Operating lease liabilities, non-current | 128,022 | 110,259 | ||
Deferred tax liabilities, net | 225,169 | 379,552 | ||
Other non-current liabilities | 122,738 | 88,811 | ||
Total liabilities | 2,372,340 | 2,389,150 | ||
Commitments and contingencies | ||||
Equity: | ||||
Class A Common Stock (1) | 285 | 278 | ||
Class B Common Stock (2) | 69 | 69 | ||
Additional paid-in capital | 2,410,378 | 2,376,420 | ||
Retained earnings | 11,387 | 212,036 | ||
Accumulated other comprehensive loss | (6,567) | (4,938) | ||
Total stockholders' equity | 2,415,552 | 2,583,865 | ||
Total liabilities and equity | $ 4,787,892 | $ 4,973,015 |
_________________ | |
(1) | Class A Common Stock, 0.01 par value per share, 120,000 shares authorized; 28,493 and 27,812 shares outstanding as of June 30, 2024 and 2023, respectively. |
(2) | Class B Common Stock, 0.01 par value per share, 30,000 shares authorized; 6,867 shares outstanding as of June 30, 2024 and 2023. |
SELECTED CASH FLOW INFORMATION (In thousands) (Unaudited) | ||||
Twelve Months Ended | ||||
June 30, | ||||
2024 | 2023 | |||
Net cash (used in) provided by operating activities | (19,658) | 153,591 | ||
Net cash used in investing activities | (45,183) | (653,923) | ||
Net cash provided by financing activities | 209,731 | 85,542 | ||
Effect of exchange rates on cash, cash equivalents and restricted cash | (771) | (2,106) | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | 144,119 | (416,896) | ||
Cash, cash equivalents and restricted cash from continuing operations, beginning of period | 429,114 | 760,312 | ||
Cash, cash equivalents and restricted cash from discontinued operations, beginning of period | — | 85,698 | ||
Cash, cash equivalents and restricted cash at beginning of period | 429,114 | 846,010 | ||
Cash, cash equivalents and restricted cash from continuing operations, end of period | 573,233 | 429,114 | ||
Cash, cash equivalents and restricted cash from discontinued operations, end of period | — | — | ||
Cash, cash equivalents and restricted cash at end of period | $ 573,233 | $ 429,114 |
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SOURCE Sphere Entertainment Co.
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