Madison Square Garden Sports (MSGS) - 2025 Q3 - Quarterly Report

Revenue Performance - Revenues decreased by $5,757, or 1%, to $424,197 for the three months ended March 31, 2025, while increasing by $35,365, or 4%, to $835,263 for the nine months ended March 31, 2025 compared to the prior year periods [158]. - The company anticipates a continued impact on revenues from local media rights fees due to the proposed amendments to the media rights agreements with MSG Networks [159]. - Revenues from league distributions rose primarily due to increased national media rights fees, contributing to the overall revenue growth for the nine months ended March 31, 2025 [164]. Operating Income and Expenses - Operating income for the three months ended March 31, 2025 was $32,342, a decrease of $47,400 or 59%, and for the nine months ended March 31, 2025 was $37,384, a decrease of $56,351 or 60% compared to the prior year periods [158]. - Direct operating expenses increased by $43,309, or 16%, to $316,335 for the three months ended March 31, 2025, and by $91,528, or 18%, to $600,299 for the nine months ended March 31, 2025 compared to the prior year periods [158]. - Selling, general and administrative expenses decreased by $1,701, or 2%, to $74,697 for the three months ended March 31, 2025, while increasing by $164 to $195,184 for the nine months ended March 31, 2025 [174][175]. Net Income and Loss - The company recorded a net loss of $14,227 for the three months ended March 31, 2025, compared to a net income of $37,877 in the prior year period, representing a decrease of $52,104 [158]. - The company reported a net loss of $20,658 for the nine months ended March 31, 2025, compared to a net income of $33,280 for the same period in 2024 [197]. Cash Flow and Financial Position - As of March 31, 2025, the company had $96,536 in cash and cash equivalents and $258,000 of additional available borrowing capacity under existing credit facilities [194]. - Net cash provided by operating activities for the nine months ended March 31, 2025, improved by $58,104 to $41,884 compared to the prior year period, driven by changes in working capital assets and liabilities [198]. - The company experienced a net increase in cash, cash equivalents, and restricted cash of $10,129 for the nine months ended March 31, 2025 [197]. Interest Income and Expense - Interest income increased by $574, or NM, to $1,051 for the three months ended March 31, 2025, and by $1,056, or 68%, to $2,605 for the nine months ended March 31, 2025 compared to the prior year periods [158]. - Interest expense decreased by $1,901, or 27%, to $5,020 for the three months ended March 31, 2025, and by $4,607, or 22%, to $16,662 for the nine months ended March 31, 2025 [178][179]. Impairment and Intangible Assets - The company performed its most recent annual impairment test of goodwill during the first quarter of fiscal year 2025, concluding there was no impairment [206]. - Identifiable indefinite-lived intangible assets amounted to $103,644 as of March 31, 2025, with no impairments identified during the latest annual impairment test [207]. Media Rights and Sponsorship - The New York Knicks' annual rights fee was reduced by 28%, while the New York Rangers' annual rights fee was reduced by 18% as part of the proposed amendments to media rights agreements [156]. - Sponsorship and signage revenues increased by $8,898 for the three months ended March 31, 2025, and by $11,602 for the nine months ended March 31, 2025 compared to the prior year periods [159]. - Suite revenues increased due to higher net sales of suite products, with a notable increase for the nine months ended March 31, 2025, attributed to one additional home game played [163].