Madison Square Garden Sports (US:MSGS)2025-10-31 11:34Financial Performance - Revenues decreased by $13,853, or 26%, to $39,454 for the three months ended September 30, 2025, compared to the prior year period [149]. - Operating loss increased by $19,152 to $27,425 for the three months ended September 30, 2025, primarily due to lower revenues and higher expenses [156]. - Net loss for the three months ended September 30, 2025, was $8,798, compared to a net loss of $7,542 in the prior year, reflecting a decrease of $1,256 or 17% [148]. - For the three months ended September 30, 2025, the adjusted operating loss increased by $18,549 to $20,807 compared to the prior year period, primarily due to lower revenues and higher selling, general, and administrative expenses [167]. Expenses - Direct operating expenses increased by $68, or 1%, to $8,279 for the three months ended September 30, 2025 [152]. - Selling, general and administrative expenses rose by $5,202, or 10%, to $57,789 for the three months ended September 30, 2025, driven by higher costs related to the Services Agreement and employee compensation [155]. - Interest income decreased by $286, or 33%, to $578 for the three months ended September 30, 2025, attributed to lower average interest rates [157]. - Interest expense decreased by $464, or 8%, to $5,591 for the three months ended September 30, 2025, primarily due to lower average borrowings [158]. Cash Flow and Liquidity - As of September 30, 2025, the company had $48,634 in cash and cash equivalents and $258,000 of additional available borrowing capacity under existing credit facilities [172]. - Net cash used in operating activities for the three months ended September 30, 2025 increased by $58,796 to $84,954 compared to the prior year period, primarily due to changes in working capital assets and liabilities [176]. - Net cash used in investing activities for the three months ended September 30, 2025 increased by $685 to $1,848 compared to the prior year period [177]. Revenue Sources and Projections - The annual local media rights fees are expected to be $139,237 for the year ending June 30, 2026, down from $162,939 for the fiscal year ended June 30, 2025, reflecting a reduction due to amendments to media rights agreements [150]. - The New York Knicks' annual rights fee was modified to a 28% reduction effective January 1, 2025, while the New York Rangers' fee was reduced by 18% [146]. - The company’s dependence on revenues from its NBA and NHL sports teams results in a disproportionate share of revenues earned in the second and third quarters of the fiscal year [179]. Other Financial Information - Miscellaneous income for the three months ended September 30, 2025, was $15,085, compared to a net expense of $1,126 in the prior year, indicating a significant increase in income from investments [159]. - The company's deferred revenue obligations as of September 30, 2025 were $302,021, net of billed but not yet collected deferred revenue [170]. - The company performed its most recent annual impairment test of goodwill during the first quarter of fiscal year 2026, and there was no impairment identified [183]. - The company had total borrowings of $267 million outstanding under its credit facilities as of September 30, 2025 [190]. - A hypothetical 100 basis point increase in floating interest rates would increase interest expense by approximately $2.7 million [190].