Madison Square Garden Sports (MSGS) - 2025 Q1 - Quarterly Report

Revenue Performance - Revenues increased by $10,261, or 24%, to $53,307 for the three months ended September 30, 2024, compared to $43,046 in the prior year period[87] - The increase in revenues from league distributions was $9,727, primarily due to certain league distributions unrelated to national media rights fees[88] Operating Expenses - Direct operating expenses rose by $4,691 to $8,211 for the three months ended September 30, 2024, primarily due to an increase in net provisions for league revenue sharing and NBA luxury tax[89] - Selling, general and administrative expenses decreased by $969, or 2%, to $52,587, driven by lower sales and marketing costs and employee compensation[90] - Direct operating expenses for fiscal year 2025 are expected to reflect higher team personnel compensation and corresponding NBA luxury tax due to the Knicks' 2024-25 season roster[89] Operating Loss - Operating loss decreased by $6,551, or 44%, to $8,273 for the three months ended September 30, 2024, attributed to higher revenues and lower selling, general and administrative expenses[92] - Operating loss for the three months ended September 30, 2024, was $(8,273) million, a decrease of $6,551 million or 44% compared to $(14,824) million in the prior year[99] - Adjusted operating loss decreased by $7,727 million or 77% to $(2,258) million for the three months ended September 30, 2024, primarily due to higher revenues and lower selling, general, and administrative expenses[99] Net Loss - Net loss for the three months ended September 30, 2024, was $7,542, a decrease of $11,279, or 60%, compared to the prior year period[88] Cash Flow - Net cash used in operating activities for the three months ended September 30, 2024, was $(26,158) million, a decrease of $27,983 million compared to $(54,141) million in the prior year[105] - Net cash used in investing activities for the three months ended September 30, 2024, was $(1,163) million, a decrease of $566 million compared to $(1,729) million in the prior year[106] - Net cash used in financing activities for the three months ended September 30, 2024, was $(9,502) million, compared to net cash provided of $67,830 million in the prior year[106] Interest Income and Expense - Interest income increased by $411, or 91%, to $864, primarily due to higher average cash balances[93] - Interest expense decreased by $874, or 13%, to $6,055, mainly due to lower average borrowings under the Rangers Revolving Credit Facility[94] Miscellaneous Expenses - Miscellaneous expense, net decreased by $11,539, or 91%, to $1,126, primarily due to lower unrealized losses related to investments[95] Financial Position - Cash and cash equivalents as of September 30, 2024, were $52,252 million, with an additional $250,000 million available under existing credit facilities[101] - Deferred revenue obligations as of September 30, 2024, totaled $272,957 million, primarily related to tickets, suites, and local media rights[101] - As of September 30, 2024, total borrowings outstanding under credit facilities were $275 million, with a potential interest expense increase of approximately $2.8 million for a hypothetical 100 basis point rise in interest rates[116] Goodwill and Intangible Assets - The carrying amount of goodwill as of September 30, 2024, was $226,523 million, with no impairment identified during the annual testing[110] - Identifiable indefinite-lived intangible assets totaled $103,644 million as of September 30, 2024, with no impairments identified during the annual testing[113]