Madison Square Garden Entertainment (MSGE) - 2024 Q4 - Annual Results

Financial Performance - Fiscal 2024 revenues reached $959.3 million, an increase of $107.8 million or 13% compared to the prior year, exceeding the high-end of guidance range[1] - Fiscal 2024 operating income was $111.9 million, up $6.9 million or 7% year-over-year, and adjusted operating income was $211.5 million, an increase of $9.9 million or 5%[1][2] - In Q4 2024, revenues were $186.1 million, a 26% increase from $147.9 million in Q4 2023, with an operating loss of $8.9 million improving by $12.9 million[2][7] - Q4 2024 revenues from entertainment offerings were $142.9 million, a 20% increase, driven by higher event-related revenues and suite license fee revenues[3] - Revenues from entertainment offerings reached $142.9 million, a 19% increase compared to $119.6 million in the prior year[13] - Net income attributable to MSG Entertainment's stockholders for the three months ended June 30, 2024, was $66.9 million, compared to a net loss of $24.5 million in the same period of 2023[13] - Adjusted operating income for the three months ended June 30, 2024, was $13.1 million, significantly up from $0.7 million in the same period of 2023[16] - The company reported a basic earnings per share of $1.42 for the three months ended June 30, 2024, compared to a loss of $0.47 in the same period of 2023[13] Guest Attendance and Events - The company hosted approximately 6.3 million guests at over 960 events during fiscal 2024, including over 1 million tickets sold for the Christmas Spectacular[1] Revenue Sources - Food, beverage, and merchandise revenues in Q4 2024 were $34.7 million, up $11.2 million or 48%, reflecting increased sales at sporting events and concerts[5] - Arena license fees and other leasing revenues in Q4 2024 were $8.5 million, a 75% increase due to more regular season games played[3] Expenses - Selling, general, and administrative expenses in Q4 2024 were $55.8 million, an increase of $3.1 million or 6% compared to the prior year[6] - Direct operating expenses associated with entertainment offerings in Q4 2024 were $99.7 million, an increase of $11.7 million or 13% year-over-year[3] - Direct operating expenses for entertainment offerings increased to $99.7 million, up from $88.0 million in the prior year[13] - The company incurred restructuring charges of $2.8 million for the three months ended June 30, 2024, compared to $0.4 million in the same period of 2023[16] Cash Flow and Assets - Cash and cash equivalents decreased to $33.6 million as of June 30, 2024, down from $84.4 million a year earlier[17] - Total assets increased to $1.55 billion as of June 30, 2024, compared to $1.40 billion in the prior year[17] - Total liabilities rose to $1.58 billion as of June 30, 2024, up from $1.47 billion in the same period of 2023[17] - Net cash provided by operating activities for the twelve months ended June 30, 2024, was $111.266 million, a decrease from $135.694 million in the previous period[19] - Net cash used in investing activities was $(62.371) million, compared to $30.305 million in the prior year, indicating a significant increase in cash outflow[19] - Net cash used in financing activities totaled $(99.695) million, an improvement from $(144.217) million in the previous period[19] - The net decrease in cash, cash equivalents, and restricted cash for the period was $(50.800) million, contrasting with an increase of $21.782 million in the prior year[19] - Cash, cash equivalents, and restricted cash at the beginning of the period were $84.355 million, while the end of the period balance dropped to $33.555 million[19] Future Outlook - The company plans to generate robust adjusted operating income growth in fiscal 2025, leveraging its unique portfolio of live entertainment offerings[1]