Fiscal 2012 revenue of $1.3 billion, an
8% increase compared to prior year
Fiscal 2012 AOCF of $283.2 million, a 36%
increase compared to prior year
Fiscal 2012 operating income of $177.5
million, up 44% versus prior year
NEW YORK, Aug. 24, 2012 (GLOBE NEWSWIRE) --The Madison Square
Garden Company (Nasdaq:MSG) today reported financial results for
the fourth quarter and fiscal year ended June 30, 2012.
Fiscal 2012 revenues of $1.3 billion grew 8%, as compared to the
prior year, primarily due to an increase in revenues in the MSG
Sports and MSG Media segments, partially offset by a decrease in
revenues in the MSG Entertainment segment. Fiscal 2012 adjusted
operating cash flow ("AOCF")(1) of $283.2 million increased 36%, as
compared to the prior year, primarily driven by improved AOCF
results in all three of the Company's business segments. Fiscal
2012 operating income of $177.5 million grew 44% and net income of
$106.5 million ($1.38 per diluted share) grew 34%, both as compared
to the prior year.
Fiscal 2012 fourth quarter revenues of $332.9 million grew 42%,
as compared to the prior year period, primarily due to an increase
in revenues in all three of the Company's business segments. Fiscal
2012 fourth quarter AOCF of $77.8 million increased 90%, as
compared to the prior year period, primarily driven by an AOCF
increase in the MSG Sports segment and, to a lesser extent, by an
AOCF increase in the MSG Media segment and improved AOCF results in
the MSG Entertainment segment. Operating income of $49.9 million
grew 245% and net income of $28.6 million ($0.37 per diluted share)
grew 235%, both as compared to the prior year quarter.
President and CEO Hank Ratner said: "Our Company had an
impressive year as the ongoing strength of our fully integrated
media, entertainment and sports business drove record AOCF for
fiscal 2012. The second phase of the Arena Transformation is
progressing well and we look forward to the debut of the
transformed upper bowl this fall. Looking ahead, we remain
confident that the breadth and strength of our assets and brands
position us well for long-term growth and value creation for our
shareholders."
Results from Operations
Segment results for the quarters ended June 30, 2012 and 2011
are as follows:
|
|
|
|
|
Revenue |
AOCF |
Operating Income
(Loss) |
$ millions |
Q4
2012 |
Q4 2011 |
% Change |
Q4
2012 |
Q4 2011 |
% Change |
Q4
2012 |
Q4 2011 |
% Change |
MSG Media |
$167.0 |
$139.6 |
20 % |
$65.9 |
$58.2 |
13 % |
$59.5 |
$51.6 |
15 % |
MSG Entertainment |
50.8 |
36.0 |
41 % |
(5.3) |
(11.9) |
55 % |
(8.7) |
(14.5) |
40 % |
MSG Sports |
131.2 |
75.4 |
74 % |
19.8 |
(1.3) |
NM |
16.0 |
(5.0) |
NM |
Other (includes
eliminations) |
(16.0) |
(17.0) |
6 % |
(2.6) |
(4.2) |
38 % |
(17.0) |
(17.5) |
3 % |
Total Company |
$332.9 |
$233.9 |
42 % |
$77.8 |
$40.9 |
90 % |
$49.9 |
$14.5 |
245 % |
|
|
|
|
|
|
|
|
|
|
Note: Does not foot due to
rounding |
|
|
|
|
|
|
|
|
|
1. See definition of
adjusted operating cash flow ("AOCF") included in the discussion of
non-GAAP financial measures on page 4 of this earnings
release. |
|
|
|
|
|
|
|
|
|
MSG Media
For fiscal 2012, MSG Media revenues of $614.2 million grew 9%,
as compared to the prior year. AOCF of $258.6 million
increased 13% and operating income of $228.3 million increased 12%,
both as compared to the prior year.
For the fiscal fourth quarter, MSG Media revenues of $167.0
million grew 20%, as compared to the prior year
period. Affiliate fee revenue increased $19.5 million, as
compared to the prior year quarter, primarily attributable to
higher affiliation rates. Advertising revenue increased $3.7
million, as compared to the prior year quarter. Other revenue
increased $4.3 million, as compared to the prior year quarter,
primarily attributable to a short-term programming licensing
agreement. AOCF of $65.9 million increased 13% and operating
income of $59.5 million increased 15%, both as compared to the
prior year quarter. The increase in AOCF and operating income
primarily reflects higher revenues, largely offset by an increase
in direct operating expenses and, to a lesser extent, an increase
in selling, general and administrative expenses.
MSG Entertainment
For fiscal 2012, MSG Entertainment revenues of $264.0 million
decreased 10%, as compared to the prior year. AOCF of $5.3
million increased by $16.8 million and operating loss of $9.3
million improved by $14.7 million, both as compared to the prior
year.
For the fiscal fourth quarter, MSG Entertainment revenues of
$50.8 million grew 41%, as compared to the prior year
period. The increase in revenues was primarily attributable to
higher event-related revenues at the Company's New York venues due
to an increase in the overall number of events, including promoted
events, as well as higher suite rental fee, sponsorship and signage
revenues. AOCF loss of $5.3 million improved 55% and operating
loss of $8.7 million improved 40%, both as compared to the prior
year quarter, primarily due to higher overall revenues, partially
offset by an increase in direct operating expenses and, to a lesser
extent, an increase in selling, general and administrative
expenses.
MSG Sports
For fiscal 2012, MSG Sports revenues of $464.7 million grew 17%,
as compared to the prior year. AOCF of $28.7 million increased
by $21.7 million and operating income of $13.1 million increased by
$20.3 million, both as compared to the prior year.
For the fiscal fourth quarter, MSG Sports revenues of $131.2
million grew 74%, as compared to the prior year period. The
increase in revenues was primarily due to an increase in the
aggregate number of New York Rangers and New York Knicks home
playoff games versus the prior year quarter, the financial benefits
of the first phase of the Arena Transformation project, and, to a
lesser extent, a higher percentage of New York Knicks-related
revenues being recognized during the quarter versus the prior year
period as a result of the timing of the compressed NBA
season. The overall revenue increase included higher
playoff-related revenues, professional sports team ticket-related
revenue, suite rental fee revenue, sponsorship and signage
revenues, and food, beverage and merchandise revenues. AOCF
increased by $21.1 million to $19.8 million and operating income
increased by $21.0 million to $16.0 million, both as compared to
the prior year quarter. The increase in AOCF and operating
income primarily reflects higher revenues, partially offset by an
increase in direct operating expenses and, to a lesser extent, an
increase in selling, general and administrative expenses.
About The Madison Square Garden Company
The Madison Square Garden Company is a fully-integrated sports,
media and entertainment business. The Company is comprised of three
business segments: MSG Sports, MSG Media and MSG Entertainment,
which are strategically aligned to work together to drive the
Company's overall business, which is built on a foundation of
iconic venues and compelling content that the company creates,
produces, presents and/or distributes through its programming
networks and other media assets. MSG Sports owns and operates the
following sports franchises: the New York Knicks (NBA), the New
York Rangers (NHL), the New York Liberty (WNBA), and the
Connecticut Whale (AHL). MSG Sports also features the presentation
of a wide variety of live sporting events including professional
boxing, college basketball, track and field and tennis. MSG Media
is a leader in production and content development for multiple
distribution platforms, including content originating from the
Company's venues. MSG Media's television networks consist of
regional sports networks, MSG Network and MSG+, collectively
referred to as MSG Networks; and Fuse, a national television
network dedicated to music. MSG Networks also include
high-definition channels, MSG HD and MSG+ HD, and Fuse includes its
high-definition channel, Fuse HD. MSG Entertainment is one of
the country's leaders in live entertainment. MSG Entertainment
creates, produces and/or presents a variety of live productions,
including the Radio City Christmas Spectacular featuring the Radio
City Rockettes. MSG Entertainment also presents or hosts other
live entertainment events such as concerts, family shows and
special events in the Company's diverse collection of venues. These
venues consist of Madison Square Garden, Radio City Music Hall, The
Theater at Madison Square Garden, the Beacon Theatre, The Chicago
Theatre, the Forum in Inglewood, CA, and the Wang Theatre in
Boston, MA. More information is available at
www.themadisonsquaregardencompany.com.
The Madison Square Garden Company logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7079
Non-GAAP Financial Measures
We define adjusted operating cash flow ("AOCF"), which is a
non-GAAP financial measure, as operating income (loss) before 1)
depreciation, amortization and impairments of property and
equipment and intangible assets, 2) share-based compensation
expense or benefit, and 3) restructuring charges or credits.
Because it is based upon operating income (loss), AOCF also
excludes interest expense (including cash interest expense) and
other non-operating income and expense items. We believe that the
exclusion of share-based compensation expense or benefit allows
investors to better track the performance of the various operating
units of our business without regard to either the distortive
effects of fluctuating stock prices or the settlement of an
obligation that is not expected to be made in cash.
We believe AOCF is an appropriate measure for evaluating the
operating performance of our business segments and the company on a
consolidated basis. AOCF and similar measures with similar titles
are common performance measures used by investors and analysts to
analyze our performance. Internally, we use revenues and AOCF
measures as the most important indicators of our business
performance, and evaluate management's effectiveness with specific
reference to these indicators. AOCF should be viewed as a
supplement to and not a substitute for operating income (loss), net
income (loss), cash flows from operating activities, and other
measures of performance and/or liquidity presented in accordance
with U.S. generally accepted accounting principles ("GAAP"). Since
AOCF is not a measure of performance calculated in accordance with
GAAP, this measure may not be comparable to similar measures with
similar titles used by other companies. For a reconciliation of
AOCF to operating income (loss), please see page 5 of this
release.
This press release may contain statements that constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned
that any such forward-looking statements are not guarantees of
future performance or results and involve risks and uncertainties,
and that actual results or developments may differ materially from
those in the forward-looking statements as a result of various
factors, including financial community and rating agency
perceptions of the Company and its business, operations, financial
condition and the industry in which it operates and the factors
described in the Company's filings with the Securities and Exchange
Commission, including the sections titled "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" contained therein. The Company disclaims any
obligation to update any forward-looking statements contained
herein.
Conference Call Information:
The conference call will be Webcast live today at 10:00 a.m. ET
at www.themadisonsquaregardencompany.com
Conference call dial-in number is 877-347-9170 / Conference ID
Number 97223678
Conference call replay number is 855-859-2056 / Conference ID
Number 97223678 until August 31, 2012
THE MADISON SQUARE
GARDEN COMPANY |
|
|
|
|
|
CONSOLIDATED OPERATIONS
DATA AND RECONCILIATION |
(In thousands, except
per share data) |
(Unaudited) |
|
|
|
|
|
|
Three Months Ended June
30, |
Twelve Months Ended June
30, |
|
2012 |
2011 |
2012 |
2011 |
|
|
|
|
|
Revenues |
$ 332,919 |
$ 233,874 |
$ 1,284,016 |
$ 1,187,791 |
|
|
|
|
|
Adjusted operating cash flow |
$ 77,782 |
$ 40,858 |
$ 283,235 |
$ 207,545 |
Share-based compensation
expense |
(3,388) |
(2,625) |
(18,205) |
(11,398) |
Operating income before depreciation and
amortization |
74,394 |
38,233 |
265,030 |
196,147 |
Depreciation and amortization
(incl. impairments) |
(24,509) |
(23,756) |
(87,503) |
(72,573) |
Operating income |
49,885 |
14,477 |
177,527 |
123,574 |
Other income (expense): |
|
|
|
|
Interest expense,
net |
(1,151) |
(1,157) |
(4,752) |
(4,567) |
Miscellaneous |
482 |
-- |
7,072 |
7,485 |
Income from operations before
income taxes |
49,216 |
13,320 |
179,847 |
126,492 |
Income tax expense |
(20,653) |
(4,793) |
(73,302) |
(46,892) |
Net income |
$ 28,563 |
$ 8,527 |
$ 106,545 |
$ 79,600 |
Basic earnings per common share |
$ 0.38 |
$ 0.11 |
$ 1.42 |
$ 1.07 |
Diluted earnings per common share |
$ 0.37 |
$ 0.11 |
$ 1.38 |
$ 1.03 |
|
|
|
|
|
Basic weighted-average number of common
shares outstanding |
75,606 |
74,506 |
74,938 |
74,184 |
Diluted weighted-average number of common
shares outstanding |
77,664 |
77,186 |
77,459 |
77,058 |
ADJUSTMENTS TO RECONCILE ADJUSTED
OPERATING CASH FLOW TO OPERATING INCOME
(LOSS)
The following is a description of the adjustments to operating
income (loss) in arriving at adjusted operating cash flow as
described in this earnings release:
- Depreciation and amortization. This adjustment eliminates
depreciation, amortization and impairments of property and
equipment and intangible assets in all periods.
- Share-based compensation expense. This adjustment eliminates
the compensation expense relating to restricted stock, restricted
stock units, stock options and stock appreciation rights granted
under our employee stock plans and non-employee director plans in
all periods.
THE MADISON SQUARE
GARDEN COMPANY |
|
|
|
|
CONSOLIDATED OPERATIONS
DATA |
(Dollars in
thousands) |
(Unaudited) |
REVENUES |
|
|
|
|
|
|
|
|
Three Months Ended June
30, |
|
|
2012 |
2011 |
% Change |
|
|
|
|
MSG Media |
$ 166,950 |
$ 139,550 |
20 % |
MSG Entertainment |
50,808 |
35,965 |
41 % |
MSG Sports |
131,159 |
75,381 |
74 % |
Other (including Inter-segment
eliminations) |
(15,998) |
(17,022) |
6 % |
Total Madison Square
Garden Company |
$ 332,919 |
$ 233,874 |
42 % |
|
|
|
|
|
Twelve Months Ended June
30, |
|
|
2012 |
2011 |
% Change |
|
|
|
|
MSG Media |
$ 614,168 |
$ 564,653 |
9 % |
MSG Entertainment |
263,976 |
294,484 |
(10) % |
MSG Sports |
464,726 |
398,757 |
17 % |
Other (including Inter-segment
eliminations) |
(58,854) |
(70,103) |
16 % |
Total Madison Square
Garden Company |
$ 1,284,016 |
$ 1,187,791 |
8 % |
|
|
|
|
|
ADJUSTED OPERATING CASH
FLOW AND OPERATING INCOME (LOSS) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Cash
Flow |
|
Operating Income
(Loss) |
|
|
Three Months Ended June
30, |
|
Three Months Ended June
30, |
|
|
2012 |
2011 |
% Change |
2012 |
2011 |
% Change |
|
|
|
|
|
|
|
MSG Media |
$ 65,881 |
$ 58,228 |
13 % |
$ 59,509 |
$ 51,560 |
15 % |
MSG Entertainment |
(5,322) |
(11,915) |
55 % |
(8,658) |
(14,541) |
40 % |
MSG Sports |
19,784 |
(1,294) |
-- |
16,018 |
(5,023) |
-- |
All other |
(2,561) |
(4,161) |
38 % |
(16,984) |
(17,519) |
3 % |
Total Madison Square
Garden Company |
$ 77,782 |
$ 40,858 |
90 % |
$ 49,885 |
$ 14,477 |
245 % |
|
|
|
|
|
|
|
|
Adjusted Operating Cash
Flow |
|
Operating Income
(Loss) |
|
|
Twelve Months Ended June
30, |
|
Twelve Months Ended June
30, |
|
|
2012 |
2011 |
% Change |
2012 |
2011 |
% Change |
|
|
|
|
|
|
|
MSG Media |
$ 258,599 |
$ 228,180 |
13 % |
$ 228,346 |
$ 204,659 |
12 % |
MSG Entertainment |
5,295 |
(11,479) |
-- |
(9,302) |
(23,982) |
61 % |
MSG Sports |
28,717 |
7,003 |
310 % |
13,069 |
(7,199) |
-- |
All other |
(9,376) |
(16,159) |
42 % |
(54,586) |
(49,904) |
(9) % |
Total Madison Square
Garden Company |
$ 283,235 |
$ 207,545 |
36 % |
$ 177,527 |
$ 123,574 |
44 % |
|
THE MADISON SQUARE
GARDEN COMPANY |
|
|
|
CONSOLIDATED BALANCE
SHEETS |
(In thousands, except
per share data) |
(Unaudited) |
|
|
|
|
June 30, 2012 |
June 30, 2011 |
ASSETS |
|
Current Assets: |
|
|
Cash and cash
equivalents |
$ 206,500 |
$ 304,876 |
Restricted cash |
5,789 |
8,051 |
Accounts receivable, net of
allowance for doubtful accounts of $2,434 and $2,292 |
126,565 |
118,013 |
Net related party
receivables |
27,277 |
22,587 |
Prepaid expenses |
29,700 |
34,512 |
Other current assets |
19,980 |
21,379 |
Total current assets |
415,811 |
509,418 |
Property and equipment, net of accumulated
depreciation and amortization of $435,696 and $407,190 |
969,528 |
607,792 |
Amortizable intangible assets, net of
accumulated amortization of $122,210 and $122,093 |
101,814 |
121,794 |
Indefinite-lived intangible assets |
158,636 |
158,096 |
Goodwill |
742,492 |
742,492 |
Other assets |
136,403 |
140,664 |
|
$ 2,524,684 |
$ 2,280,256 |
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
Current Liabilities: |
|
|
Accounts payable |
$ 33,048 |
$ 31,769 |
Net related party
payables |
362 |
-- |
Accrued liabilities: |
|
|
Employee related
costs |
82,886 |
55,007 |
Other accrued
liabilities |
188,410 |
167,784 |
Deferred revenue |
211,639 |
156,047 |
Total current
liabilities |
516,345 |
410,607 |
Defined benefit and other postretirement
obligations |
58,817 |
52,865 |
Other employee related costs |
36,689 |
39,700 |
Other liabilities |
60,438 |
53,995 |
Deferred tax liability |
532,382 |
517,204 |
Total liabilities |
1,204,671 |
1,074,371 |
Commitments and contingencies |
|
|
Stockholders' Equity: |
|
|
Class A Common stock, par value
$0.01, 360,000 shares authorized; 62,016 and 62,094 shares
outstanding |
628 |
625 |
Class B Common stock, par value
$0.01, 90,000 shares authorized; 13,589 shares
outstanding |
136 |
136 |
Preferred stock, par value
$0.01, 45,000 shares authorized; none outstanding |
-- |
-- |
Additional paid-in
capital |
1,070,046 |
1,041,769 |
Treasury stock, at cost, 927
and 500 shares |
(22,047) |
(10,279) |
Retained earnings |
295,412 |
188,867 |
Accumulated other comprehensive
loss |
(24,162) |
(15,233) |
Total stockholders'
equity |
1,320,013 |
1,205,885 |
|
$ 2,524,684 |
$ 2,280,256 |
THE MADISON SQUARE
GARDEN COMPANY |
|
|
|
SELECTED CASH FLOW
INFORMATION |
(Dollars in
thousands) |
(Unaudited) |
|
|
|
|
Twelve Months Ended
June 30, |
|
2012 |
2011 |
Net cash provided by operating
activities |
$ 333,373 |
$ 180,523 |
Net cash used in investing
activities |
(429,081) |
(191,899) |
Net cash used in financing
activities |
(2,668) |
(3,493) |
Net decrease in cash and cash
equivalents |
(98,376) |
(14,869) |
Cash and cash equivalents at beginning of
period |
304,876 |
319,745 |
Cash and cash equivalents at end of
period |
$ 206,500 |
$ 304,876 |
CONTACT: Kimberly Kerns
Senior Vice President
Communications
The Madison Square Garden Company
(212) 465-6442
Ari Danes, CFA
Vice President
Investor Relations
The Madison Square Garden Company
(212) 465-6072
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