Financial Performance - Net loss attributable to common stockholders decreased by $703.7 million, or 96%, to $32.5 million for the three months ended September 30, 2024, compared to $736.2 million in the prior-year period[205]. - Total revenue for the three months ended September 30, 2024, was $39.7 million, a decrease of $789, or 2%, from $40.5 million in the same period of 2023[202]. - General and administrative costs increased by $11.1 million, or 154%, to $18.3 million for the three months ended September 30, 2024, compared to $7.2 million in the prior-year period[208]. - Total expenses for the three months ended September 30, 2024, were $64.5 million, an increase of $7.6 million, or 13%, from $56.9 million in the same period of 2023[202]. - Hospitality revenue decreased by $1.9 million, or 17%, to $8.8 million for the three months ended September 30, 2024, compared to $10.7 million in the prior-year period[202]. - Sponsorships, events, and entertainment revenue increased by $221, or 1%, to $24.7 million for the three months ended September 30, 2024, compared to $24.5 million in the prior-year period[202]. - Total revenue for the nine months ended September 30, 2024, decreased by $4.5 million, or 5%, to $88.3 million compared to $92.8 million in the prior-year period[214]. - Sponsorships, events, and entertainment revenue declined by $3.1 million, or 6%, while hospitality revenue decreased by $3.9 million, or 15%[214]. Operational Highlights - The Company completed its spin-off from HHH on July 31, 2024, with HHH contributing $23.4 million in capital to support operations[184][185]. - The Company operates in three segments: Landlord Operations, Hospitality, and Sponsorships, Events, and Entertainment, focusing on strategic acquisitions and partnerships for growth[178]. - The Company aims to leverage the growing consumer appetite for unique restaurant experiences to expand its culinary footprint[182]. - Seasonality significantly impacts operations, with increased revenue during warmer months and potential revenue losses due to weather-related disruptions[192][193]. - The weighted average remaining term of leases for retail, office, and other properties is approximately seven years, excluding renewal options[194]. - The Company recognizes all economic interest in the Tin Building by Jean-Georges joint venture, impacting overall results of operations[190]. - The Aviators, a Triple-A Minor League Baseball team, play at the Las Vegas Ballpark, which has a capacity of 10,000, contributing to the Company's entertainment segment[183]. - The Company is exploring opportunities for year-round entertainment at the Rooftop at Pier 17, which hosts a popular Summer Concert Series[183]. Cash Flow and Financing - As of September 30, 2024, the company's cash and cash equivalents were $23.7 million, compared to $1.8 million as of December 31, 2023[251]. - Cash used in operating activities increased by $19.8 million to $48.0 million for the nine months ended September 30, 2024, compared to $28.2 million in the prior-year period[258]. - Cash used in investing activities rose by $3.6 million to $82.2 million for the nine months ended September 30, 2024, compared to $78.6 million in the prior-year period[260]. - Cash provided by financing activities increased by $22.8 million to $114.1 million for the nine months ended September 30, 2024, compared to $91.3 million in the prior-year period[261]. - The company commenced a $175 million Rights Offering in September 2024, issuing 7.0 million shares at a subscription price of $25.00 per share, resulting in total gross proceeds of $175.0 million[256]. - The company expects the additional liquidity from the Rights Offering to be sufficient to fund operations until cash generation from operating activities begins[259]. - The variable rate mortgage related to 250 Water Street was refinanced on July 31, 2024, with HHH paying down $53.7 million of the outstanding principal balance[252]. - The company’s ability to fund operations and development projects will depend on future cash flow management and access to debt or equity financing on acceptable terms[253]. Cost Management - General and administrative costs increased by $33.8 million, or 171%, to $53.5 million, primarily due to a $23.8 million rise in separation costs[217]. - Depreciation and amortization expense decreased by $18.9 million, or 47%, to $21.1 million, attributed to prior impairment recognized on buildings and equipment[218]. - Interest expense, net rose by $7.1 million, or 381%, to $8.9 million, mainly due to a decrease in amounts capitalized to development assets[219]. - Hospitality costs decreased by $0.1 million, or 1%, to $8.4 million for the three months ended September 30, 2024, compared to $8.5 million in the prior-year period[233]. Legal and Compliance - As of September 30, 2024, the company believes there were no pending lawsuits or claims that could have a material adverse effect on its business or financial condition[284]. - There were no changes in internal control over financial reporting during the quarter ended September 30, 2024, that materially affected the internal control[283].
Seaport Entertainment Group Inc.(SEG) - 2024 Q3 - Quarterly Report