Madison Square Garden Entertainment (MSGE) - 2024 Q3 - Quarterly Report

Filing Information This section details the company's quarterly report filing, including its type and registered stock information - MADISON SQUARE GARDEN ENTERTAINMENT CORP. filed a Quarterly Report on Form 10-Q for the period ended March 31, 2024[2] Title of each class | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Class A Common Stock | MSGE | New York Stock Exchange | Class A Common Stock par value $0.01 per share | Class A Common Stock par value $0.01 per share | 41,158,016 | | :----------------------------------- | :--------- | | Class B Common Stock par value $0.01 per share | 6,866,754 | PART I. FINANCIAL INFORMATION This part presents the company's unaudited condensed consolidated financial statements and management's discussion Item 1. Financial Statements (unaudited) This section presents the unaudited condensed consolidated financial statements, covering balance sheets, operations, cash flows, and equity Condensed Consolidated Balance Sheets This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific dates Condensed Consolidated Balance Sheets (in thousands) | ASSETS | March 31, 2024 | June 30, 2023 | | :-------------------------------- | :------------- | :------------ | | Cash, cash equivalents, and restricted cash | $28,308 | $84,355 | | Accounts receivable, net | $108,560 | $63,898 | | Total current assets | $255,798 | $295,281 | | Total assets | $1,458,571 | $1,401,157 | | LIABILITIES AND DEFICIT | March 31, 2024 | June 30, 2023 | | :-------------------------------- | :------------- | :------------ | | Total current liabilities | $550,762 | $540,640 | | Long-term debt, net | $602,468 | $630,184 | | Total liabilities | $1,553,134 | $1,470,629 | | Total deficit | $(94,563) | $(69,472) | | Total liabilities and deficit | $1,458,571 | $1,401,157 | - Total assets increased by $57,414 thousand (4.1%) from June 30, 2023, to March 31, 2024, while total liabilities increased by $82,505 thousand (5.6%). The company's deficit widened from $(69,472) thousand to $(94,563) thousand[9] Condensed Consolidated and Combined Statements of Operations This section details the company's revenues, expenses, and net income over specific reporting periods Condensed Consolidated and Combined Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Nine Months Ended March 31, 2024 | Nine Months Ended March 31, 2023 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------- | :------------------------------- | | Total revenues | $228,313 | $201,229 | $773,191 | $703,561 | | Total direct operating expenses | $(142,021) | $(115,133) | $(446,459) | $(397,398) | | Operating income | $16,803 | $24,664 | $120,801 | $126,798 | | Net income attributable to MSG Entertainment's stockholders | $2,795 | $21,720 | $77,373 | $101,080 | | Basic EPS | $0.06 | $0.42 | $1.59 | $1.95 | | Diluted EPS | $0.06 | $0.42 | $1.58 | $1.95 | - For the three months ended March 31, 2024, total revenues increased by 13.5% YoY, but net income attributable to stockholders decreased significantly by 87.1% YoY. For the nine months ended March 31, 2024, total revenues increased by 9.9% YoY, while net income attributable to stockholders decreased by 23.5% YoY[12] Condensed Consolidated and Combined Statements of Comprehensive Income This section presents the company's comprehensive income, including net income and other comprehensive income components Condensed Consolidated and Combined Statements of Comprehensive Income (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Nine Months Ended March 31, 2024 | Nine Months Ended March 31, 2023 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------- | :------------------------------- | | Net income | $2,795 | $21,720 | $77,373 | $100,527 | | Other comprehensive income, net of income taxes | $372 | $267 | $1,114 | $878 | | Comprehensive income attributable to MSG Entertainment | $3,167 | $21,987 | $78,487 | $101,958 | - Comprehensive income attributable to MSG Entertainment decreased by 85.6% for the three months ended March 31, 2024, and by 23.0% for the nine months ended March 31, 2024, compared to the prior year periods[15] Condensed Consolidated and Combined Statements of Cash Flows This section outlines the company's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated and Combined Statements of Cash Flows (in thousands) | Activity | Nine Months Ended March 31, 2024 | Nine Months Ended March 31, 2023 | | :--------------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $111,054 | $132,341 | | Net cash (used in) provided by investing activities | $(72,625) | $13,261 | | Net cash used in financing activities | $(94,476) | $(85,194) | | Net (decrease) increase in cash, cash equivalents, and restricted cash | $(56,047) | $60,408 | | Cash, cash equivalents, and restricted cash, end of period | $28,308 | $122,981 | - Net cash provided by operating activities decreased by $21,287 thousand (16.1%) for the nine months ended March 31, 2024, compared to the prior year. Investing activities shifted from a net cash inflow of $13,261 thousand to a net cash outflow of $(72,625) thousand, primarily due to a loan to a related party and the absence of proceeds from dispositions[18][207][208] Condensed Consolidated and Combined Statements of (Deficit) Equity This section details changes in the company's stockholders' equity or deficit over the reporting period Condensed Consolidated and Combined Statements of (Deficit) Equity (in thousands) | Equity Component | Balance as of June 30, 2023 | Net Income | Other Comprehensive Income | Share-based Compensation | Tax withholding | Stock Repurchases | Balance as of March 31, 2024 | | :-------------------------------- | :-------------------------- | :--------- | :------------------------- | :----------------------- | :-------------- | :---------------- | :--------------------------- | | Common Stock | $519 | — | — | — | $5 | — | $524 | | Additional Paid-in Capital | $17,727 | — | — | $26,186 | $(13,383) | $(874) | $29,656 | | Treasury Stock | $(25,000) | — | — | — | — | $(115,512) | $(140,512) | | Retained Earnings (Deficit) | $(28,697) | $77,373 | — | — | — | — | $48,676 | | Accumulated Other Comprehensive Loss | $(34,021) | — | $1,114 | — | — | — | $(32,907) | | Total Stockholders' (Deficit) Equity | $(69,472) | $77,373 | $1,114 | $26,186 | $(13,378) | $(116,386) | $(94,563) | - The total stockholders' deficit increased from $(69,472) thousand as of June 30, 2023, to $(94,563) thousand as of March 31