Madison Square Garden Entertainment (US:MSGE)2025-02-06 22:08Revenue Performance - Total revenues for the three months ended December 31, 2024, were $407,417,000, a 1% increase from $402,666,000 in the same period of 2023[124] - Revenues from arena license fees and other leasing increased by 16% to $29,820,000 compared to $25,629,000 in the prior year[124] - Total revenues for the six months ended December 31, 2024, increased by $1,253, reaching $546,131 compared to $544,878 in the prior year[125] - Revenues from entertainment offerings decreased by $24,055 for the six months ended December 31, 2024, primarily due to lower event-related revenues[131] Income and Expenses - Net income decreased by 39% to $75,893,000 from $125,249,000 year-over-year[124] - Selling, general, and administrative expenses increased by 18% to $57,189,000 compared to $48,389,000 in the same period last year[124] - Net income for the six months ended December 31, 2024, was $56,572, a decrease of 24% compared to $74,578 in the prior year[125] - Direct operating expenses for the six months ended December 31, 2024, decreased by $9,655, totaling $294,783 compared to $304,438 in the prior year[142] - Selling, general, and administrative expenses increased by $5,724 for the six months ended December 31, 2024, totaling $102,935 compared to $97,211 in the prior year[150] - Operating income for the six months ended December 31, 2024, increased by $16,520, reaching $120,519 compared to $103,999 in the prior year[154] Cash Flow and Debt - The company reported net cash provided by operating activities of $85,499 for the six months ended December 31, 2024, down from $105,232 in the prior year[181] - As of December 31, 2024, the company's unrestricted cash and cash equivalents totaled $54,919, with total debt outstanding at $617,500[171] - The company has approximately $85,000 remaining under its share repurchase program as of December 31, 2024[170] - The company incurred $1,361 in merger, spin-off, and acquisition-related costs for the three months ended December 31, 2024, compared to none in the prior year[166] - Cash flow from investing activities was negative $16,282 for the six months ended December 31, 2024, compared to negative $62,731 in the prior year[181] - Net cash provided by operating activities decreased by $19,733 for the six months ended December 31, 2024, primarily due to a decrease in cash flows from changes in working capital of $22,637[182] - Net cash used in investing activities decreased by $46,449 to $16,282 for the six months ended December 31, 2024, mainly due to the absence of a loan to a related party[185] - Net cash used in financing activities decreased by $41,731 to $47,553 for the six months ended December 31, 2024, primarily due to a decrease in principal debt repayments and stock repurchases[185] Economic and Operational Factors - The company became an independent publicly traded entity on April 21, 2023, following the distribution of approximately 67% of its common stock by Sphere Entertainment[119] - The company operates primarily in the New York City metropolitan area, with all revenues and assets attributed to the United States[118] - The performance of professional sports teams hosted at The Garden significantly impacts the company's operating results[120] - The company anticipates that general economic conditions will affect customer demand for its events and services[121] - The company experiences seasonality in revenues, earning a disproportionate share in the second and third quarters due to events like the Christmas Spectacular[186] Interest and Taxation - Interest income decreased by 66% to $365,000 from $1,083,000 year-over-year[124] - Interest income decreased by $1,198 for the six months ended December 31, 2024, totaling $737 compared to $1,935 in the prior year[155] - Interest expense decreased by $2,338 for the six months ended December 31, 2024, totaling $26,998 compared to $29,336 in the prior year[156] - The effective tax rate for the six months ended December 31, 2024, was 39%, reflecting an increase from 1% in the prior year[159][160] - A hypothetical 200 basis point increase in floating interest rates would increase the company's interest expense by $12,350 on outstanding amounts under credit facilities[190] Performance Metrics - Adjusted operating income (AOI) for the three months ended December 31, 2024, was $164,012, a 2% increase from $160,080 in the prior year[166] - Operating income for the six months ended December 31, 2024, increased by 16% to $120,519 compared to $103,999 in the same period last year[166] - The company had 200 Christmas Spectacular performances during the holiday season, selling approximately 1.1 million tickets compared to over 1.0 million tickets sold in the prior year[129]