Madison Square Garden Entertainment (US:MSGE)2025-11-06 21:37Revenue Performance - Total revenues for the three months ended September 30, 2025, increased by $19,548, reaching $158,262, a 14% increase compared to the same period in 2024[121] - Revenues from entertainment offerings rose by $16,229 to $131,310, driven by higher concert revenues of $8,263 and increased revenues from other live events of $6,806[124] - Food, beverage, and merchandise revenues increased by $3,862 to $22,837, primarily due to higher sales at concerts and other events[125] Operating Loss and Expenses - The net loss for the three months ended September 30, 2025, was $21,654, a 12% increase from the net loss of $19,321 in the same period last year[121] - The operating loss for the period was $29,739, which is a 61% increase compared to the operating loss of $18,482 in the prior year[121] - Direct operating expenses increased by $4,661 to $102,370, reflecting a 5% rise compared to the prior year[129] - For the three months ended September 30, 2025, operating loss increased by $11,257, or 61%, compared to the prior year period, primarily due to higher impairment of long-lived assets and increased selling, general, and administrative expenses[136] - Selling, general, and administrative expenses increased by $10,839 for the three months ended September 30, 2025, mainly due to higher employee compensation and benefits[132] Impairment and Depreciation - The company experienced an impairment of long-lived assets amounting to $13,782, which was not present in the previous year[121] - Impairment of long-lived assets rose by $13,782 for the three months ended September 30, 2025, compared to the prior year, reflecting significant losses recognized on right-of-use lease assets[134] - Depreciation and amortization expenses increased by $293, or 2%, for the three months ended September 30, 2025, primarily due to fixed asset additions[133] Cash Flow and Debt - As of September 30, 2025, the company's unrestricted cash and cash equivalents balance was $29,950, with total debt outstanding at $621,758[149] - The company had $112,573 of available borrowing capacity under the National Properties Revolving Credit Facility as of September 30, 2025[149] - Net cash provided by operating activities for the three months ended September 30, 2025 was $19,808, a significant increase of $47,167 compared to the prior year period[160] - Net cash used in investing activities increased by $108 to $6,798 compared to the prior year period, primarily due to the absence of proceeds from the sale of investments[161] - Net cash used in financing activities increased by $64,184 to $26,077 compared to the prior year period, driven by increased stock repurchases and decreased proceeds from the National Properties Revolving Credit Facility[162] Interest Income and Expense - Interest income increased by 40% to $520, while interest expense decreased by 21% to $11,028[121] - Interest income increased by $148 for the three months ended September 30, 2025, due to higher average balances in cash and cash equivalents[137] - Interest expense decreased by $3,015 for the three months ended September 30, 2025, primarily due to lower average borrowing rates[138] Tax and Seasonality - The effective tax rate for the three months ended September 30, 2025, was 46%, resulting in an income tax benefit of $18,765, up from $13,601 in the prior year[141] - The Company experiences seasonality in revenues, with a disproportionate share earned in the second and third quarters due to events like the Christmas Spectacular and arena license fees[163] Hypothetical Scenarios - A hypothetical 200 basis point increase in floating interest rates would increase the Company's interest expense by $12,435 on outstanding amounts under credit facilities[167]