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MADISON SQUARE GARDEN ENTERTAINMENT CORP. REPORTS FISCAL 2025 FIRST QUARTER RESULTS

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NEW YORK, Nov. 8, 2024 /PRNewswire/ — Madison Square Garden Entertainment Corp. (NYSE: MSGE) (“MSG Entertainment” or the “Company”) today reported financial results for the fiscal first quarter ended September 30, 2024.

Since the start of fiscal 2025, the Madison Square Garden Arena (“The Garden”) has hosted a record number of concerts for a fiscal first quarter and, last month, welcomed back the New York Knicks (“Knicks”) and the New York Rangers (“Rangers”) for the start of their 2024-25 regular seasons at The Garden. Later today, the Christmas Spectacular production kicks off its 2024 holiday season at Radio City Music Hall with 199 performances currently on sale as compared to 193 shows in fiscal 2024. In addition, new sales and renewal activity in the Company’s premium hospitality business remains strong, while the Company also recently announced new multi-year sponsorship deals with Lenovo and its subsidiary Motorola Mobility and the Department of Culture and Tourism – Abu Dhabi, as well as a multi-year extension of its sponsorship deal with Verizon.

For the fiscal 2025 first quarter, the Company reported revenues of $138.7 million, a decrease of $3.5 million, or 2%, as compared to the prior year quarter. In addition, the Company reported an operating loss of $18.5 million, an improvement of $14.9 million, or 45%, and adjusted operating income of $1.9 million, an increase of $2.1 million, both as compared to the prior year quarter.(1)

Executive Chairman and CEO James L. Dolan said, “With fiscal ’25 underway, we expect our portfolio of assets and brands to continue benefiting from demand for shared experiences, including this year’s Christmas Spectacular production. Looking ahead, we remain confident in the strength of our Company and believe we are well positioned to generate long-term value for our shareholders.”

Results for the Three Months Ended September 30, 2024 and 2023:

Three Months Ended

September 30,

Change

$ millions

2024

2023

$

%

Revenues

$    138.7

$    142.2

$     (3.5)

(2) %

Operating Loss

$    (18.5)

$    (33.4)

$     14.9

45 %

Adjusted Operating Income (Loss)(1)

$        1.9

$      (0.2)

$       2.1

NM

Note: Amounts may not foot due to rounding. NM – Absolute percentages greater than 200% and comparisons from positive to negative values or to zero values are not considered meaningful.

(1)

See page 3 of this earnings release for the definition of adjusted operating income (loss) (“AOI”) included in the discussion of non-GAAP financial measures. During the fiscal 2024 third quarter, the Company amended this definition so that the non-cash portion of operating lease revenue related to the Company’s Arena License Agreements with Madison Square Garden Sports Corp. (“MSG Sports”) is no longer excluded in all periods presented. For the three months ended September 30, 2024 and the three months ended September 30, 2023, the non-cash portion of operating lease revenue was $0.5 million.

 

Entertainment Offerings, Arena License Fees and Other Leasing
Fiscal 2025 first quarter revenues from entertainment offerings of $115.1 million decreased $1.4 million, or 1%, as compared to the prior year period, primarily due to lower event-related revenues.

Event-related revenues decreased $1.5 million, primarily due to lower revenues from concerts. This reflects lower per-concert revenues primarily due to a shift in the mix of events at The Garden from promoted events to rentals and a decrease in the number of concerts at the Company’s theaters, partially offset by an increase in the number of concerts at The Garden.

Fiscal 2025 first quarter arena license fees and other leasing revenues of $4.7 million increased $2.2 million, or 90%, as compared to the prior year period, due to an increase in other leasing revenues.

Fiscal 2025 first quarter direct operating expenses associated with entertainment offerings, arena license fees and other leasing of $86.5 million decreased $4.1 million, or 5%, as compared to the prior year quarter, primarily due to lower event-related expenses of $3.5 million. The decrease in event-related expenses was primarily due to lower expenses from concerts, mainly driven by lower per-concert expenses due to a shift in the mix of events at The Garden from promoted events to rentals, partially offset by an increase in the number of events at The Garden.

Food, Beverage and Merchandise
Fiscal 2025 first quarter food, beverage and merchandise revenues of $19.0 million decreased $4.3 million, or 18%, as compared to the prior year period. This was primarily due to lower food and beverage sales at concerts held at the Company’s venues as compared to the prior year quarter, primarily due to lower per-concert food and beverage revenues and, to a lesser extent, the decrease in the number of events at the Company’s theaters, partially offset by the increase the number of events at The Garden.

Fiscal 2025 first quarter food, beverage and merchandise direct operating expenses of $11.2 million increased $0.1 million, or 1%, as compared to the prior year period.

Selling, General and Administrative Expenses
Fiscal 2025 first quarter selling, general and administrative expenses of $45.7 million decreased $3.1 million, or 6%, as compared to the prior year period. The decrease was primarily due to (i) lower professional fees, mainly due to the absence of non-recurring costs incurred by the Company in the prior year period in connection with the registration and sale of the Company’s Class A common stock by Sphere Entertainment Co.; (ii) a decrease in employee compensation and benefits; and (iii) lower other costs, all as compared to the prior year period. These decreases were partially offset by higher rent expense as compared to the prior year period.

Operating Loss and Adjusted Operating Income (Loss)
Fiscal 2025 first quarter operating loss of $18.5 million improved $14.9 million, or 45%, as compared to the prior year period, primarily due to lower restructuring charges and, to a lesser extent, the decrease in direct operating expenses and selling, general and administrative expenses, partially offset by the decrease in revenues. Fiscal 2025 first quarter adjusted operating income of $1.9 million increased $2.1 million as compared to the prior year quarter, primarily due to lower direct operating expenses and selling, general and administrative expenses (excluding merger, spin-off and acquisition-related costs), partially offset by the decrease in revenues. 

About Madison Square Garden Entertainment Corp.
Madison Square Garden Entertainment Corp. (MSG Entertainment) is a leader in live entertainment, delivering unforgettable experiences while forging deep connections with diverse and passionate audiences. The Company’s portfolio includes a collection of world-renowned venues – New York’s Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall, and Beacon Theatre; and The Chicago Theatre – that showcase a broad array of sporting events, concerts, family shows, and special events for millions of guests annually. In addition, the Company features the original production, the Christmas Spectacular Starring the Radio City Rockettes, which has been a holiday tradition for more than 90 years. More information is available at www.msgentertainment.com.

Non-GAAP Financial Measures
During the fiscal 2024 third quarter the Company amended its definition of adjusted operating income so that the impact of the non-cash portion of operating lease revenue related to the Company’s Arena License Agreements with MSG Sports is no longer excluded in all periods presented.

We define adjusted operating income (loss), which is a non-GAAP financial measure, as operating income (loss) excluding (i) depreciation, amortization and impairments of property and equipment, goodwill and other intangible assets, (ii) share-based compensation expense or benefit, (iii) restructuring charges or credits, (iv) merger, spin-off, and acquisition-related costs, including merger-related litigation expenses, (v) gains or losses on sales or dispositions of businesses and associated settlements, (vi) the impact of purchase accounting adjustments related to business acquisitions, (vii) amortization for capitalized cloud computing arrangement costs and (viii) gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan. 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 the settlement of an obligation that is not expected to be made in cash. We eliminate merger, spin-off, and acquisition-related costs, when applicable, because the Company does not consider such costs to be indicative of the ongoing operating performance of the Company as they result from an event that is of a non-recurring nature, thereby enhancing comparability. In addition, management believes that the exclusion of gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan, provides investors with a clearer picture of the Company’s operating performance given that, in accordance with U.S. generally accepted accounting principles, gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan are recognized in Operating (income) loss whereas gains and losses related to the remeasurement of the assets under the executive deferred compensation plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in Other income (expense), net, which is not reflected in Operating income (loss).

We believe adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of the Company on a consolidated and combined basis. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze our performance. Internally, we use revenues and adjusted operating income (loss) as the most important indicators of our business performance, and evaluate management’s effectiveness with specific reference to these indicators. Adjusted operating income (loss) 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 GAAP. Since adjusted operating income (loss) 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 operating income (loss) to adjusted operating income (loss), please see page 5 of this release.

Forward-Looking Statements
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, developments or events may differ materially from those in the forward-looking statements as a result of various factors, including financial community perceptions of the Company and its business, operations, financial condition and the industries 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.

Contacts:

Ari Danes, CFA

Senior Vice President, Investor Relations, Financial Communications & Treasury

Madison Square Garden Entertainment Corp.

(212) 465-6072

Justin Blaber

Vice President, Financial Communications

Madison Square Garden Entertainment Corp.

(212) 465-6109

Grace Kaminer

Vice President, Investor Relations & Treasury

Madison Square Garden Entertainment Corp.

(212) 631-5076

Sarah Rothschild

Senior Director, Investor Relations & Treasury

Madison Square Garden Entertainment Corp.

(212) 631-5345

Conference Call Information:
The conference call will be Webcast live today at 8:30 a.m. ET at investor.msgentertainment.com
Conference call dial-in number is 888-660-6386 / Conference ID Number 8020251
Conference call replay number is 800-770-2030 / Conference ID Number 8020251 until November 15, 2024
Investor presentation available at investor.msgentertainment.com/events-and-presentations

 

 

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(Unaudited)

Three Months Ended
September 30,

2024

2023

Revenues

Revenues from entertainment offerings

$       115,081

$       116,505

Food, beverage, and merchandise revenues

18,975

23,261

Arena license fees and other leasing revenue

4,658

2,446

Total revenues

138,714

142,212

Direct operating expenses

Entertainment offerings, arena license fees, and other leasing direct operating expenses

(86,466)

(90,559)

Food, beverage, and merchandise direct operating expenses

(11,243)

(11,118)

Total direct operating expenses

(97,709)

(101,677)

Selling, general, and administrative expenses

(45,746)

(48,822)

Depreciation and amortization

(13,781)

(13,585)

Restructuring credits (charges)

40

(11,553)

Operating loss

(18,482)

(33,425)

Interest income

372

851

Interest expense

(14,043)

(14,287)

Other expense, net

(769)

(4,469)

Loss from operations before income taxes

(32,922)

(51,330)

Income tax benefit

13,601

659

Net loss

$       (19,321)

$       (50,671)

Loss per share attributable to MSG Entertainment’s stockholders:

Basic and diluted

$            (0.40)

$            (1.00)

Weighted-average number of shares of common stock:

Basic and diluted

48,217

50,437

 

MADISON SQUARE GARDEN ENTERTAINMENT CORP.
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO
ADJUSTED OPERATING INCOME (LOSS)
(in thousands)
(Unaudited)

The following is a description of the adjustments to operating loss in arriving at adjusted operating income (loss) as described in this earnings release:

Depreciation and amortization. This adjustment eliminates depreciation and amortization of property and equipment and intangible assets.Share-based compensation. This adjustment eliminates the compensation expense relating to restricted stock units and stock options granted under the Company’s Employee Stock Plan and the Company’s Non-Employee Director Plan.Restructuring charges. This adjustment eliminates costs related to termination benefits provided to certain corporate executives and employees.Merger, spin-off, and acquisition-related costs. This adjustment eliminates costs related to mergers, spin-offs and acquisitions, including merger-related litigation expenses.Amortization for capitalized cloud computing arrangement costs. This adjustment eliminates amortization of capitalized cloud computing arrangement costs.Remeasurement of deferred compensation plan liabilities. This adjustment eliminates the impact of gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan.

Three Months Ended
September 30,

$ thousands

2024

2023

Operating loss

$       (18,482)

$       (33,425)

Depreciation and amortization

13,781

13,585

Share-based compensation (excluding share-based compensation included in restructuring charges)

6,262

6,177

Restructuring (credits) charges

(40)

11,553

Merger, spin-off, and acquisition-related costs (1)

2,035

Amortization for capitalized cloud computing arrangement costs

168

Remeasurement of deferred compensation plan liabilities

220

(145)

Adjusted operating income (loss) (2)

$           1,909

$             (220)

(1)

This adjustment represents non-recurring costs incurred and paid by the Company for the sale of the retained interest by Sphere Entertainment Co.

(2)

During the fiscal 2024 third quarter the Company amended the definition of adjusted operating income so that the non-cash portion of operating lease revenue related to the Company’s Arena License Agreements with MSG Sports is no longer excluded in all periods presented. Pursuant to GAAP, recognition of operating lease revenue is recorded on a straight-line basis over the term of the agreement based upon the value of total future payments under the arrangement. As a result, operating lease revenue is comprised of a contractual cash component plus or minus a non-cash component for each period presented. Adjusted operating income includes operating lease revenue of (i) $854 and $829 of revenue collected in cash for the three months ended September 30, 2024 and September 30, 2023, respectively, and (ii) a non-cash portion of $470 and $495 for the three months ended September 30, 2024 and September 30, 2023, respectively.

 

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

(Unaudited)

September 30,
2024

June 30,
2024

ASSETS

Current Assets:

Cash, cash equivalents, and restricted cash

$             37,613

$             33,555

Accounts receivable, net

95,525

77,259

Related party receivables, current

20,768

17,469

Prepaid expenses and other current assets

106,490

90,801

Total current assets

260,396

219,084

Non-Current Assets:

Property and equipment, net

642,338

633,533

Right-of-use lease assets

391,058

388,658

Goodwill

69,041

69,041

Indefinite-lived intangible assets

63,801

63,801

Deferred tax assets, net

81,733

68,307

Other non-current assets

101,960

110,283

Total assets

$        1,610,327

$        1,552,707

LIABILITIES AND DEFICIT

Current Liabilities:

Accounts payable, accrued and other current liabilities

$           159,261

$           203,750

Related party payables, current

43,671

42,506

Long-term debt, current

20,313

16,250

Operating lease liabilities, current

27,014

27,736

Deferred revenue

270,955

215,581

Total current liabilities

521,214

505,823

Non-Current Liabilities:

Long-term debt, net of deferred financing costs

646,975

599,248

Operating lease liabilities, non-current

451,071

427,014

Other non-current liabilities

39,765

43,787

Total liabilities

1,659,025

1,575,872

Commitments and contingencies

Deficit:

Class A Common Stock (a)

460

456

Class B Common Stock (b)

69

69

Additional paid-in-capital

26,909

33,481

Treasury stock at cost (4,365 shares outstanding as of September 30, 2024 and June 30, 2024)

(140,512)

(140,512)

Retained earnings

96,282

115,603

Accumulated other comprehensive loss

(31,906)

(32,262)

Total deficit

(48,698)

(23,165)

Total liabilities and deficit

$        1,610,327

$        1,552,707

(a)

Class A Common Stock, $0.01 par value per share, 120,000 shares authorized; 45,958 and 45,556 shares issued as of September 30, 2024 and June 30, 2024, respectively.

(b)

Class B Common Stock, $0.01 par value per share, 30,000 shares authorized; 6,867 shares issued as of September 30, 2024 and June 30, 2024.

 

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

SELECTED CASH FLOW INFORMATION

(in thousands)

(Unaudited)

Three Months Ended

September 30,

2024

2023

Net cash (used in) provided by operating activities

$       (27,359)

$           1,378

Net cash used in investing activities

(6,690)

(55,490)

Net cash provided by financing activities

38,107

9,273

Net increase (decrease) in cash, cash equivalents, and restricted cash

4,058

(44,839)

Cash, cash equivalents, and restricted cash, beginning of period

33,555

84,355

Cash, cash equivalents, and restricted cash, end of period

$         37,613

$         39,516

 

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SOURCE Madison Square Garden Entertainment Corp.

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Converge Technology Solutions Named Solution Partner of the Year at the 2024 Ingram Micro ONE Innovation Summit

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TORONTO and GATINEAU, QC, Nov. 8, 2024 /PRNewswire/ — Converge Technology Solutions Corp. (“Converge” or “the Company”) (TSX: CTS) (FSE: 0ZB) (OTCQX: CTSDF) is pleased to announce it has been named Solution Partner of the Year for North America by Ingram Micro, a leading technology company for the global information technology ecosystem reaching nearly 90% of the world’s population. Converge’s award was presented as part of the 2024 Ingram Micro ONE Innovation Summit, held from November 6-8, 2024, in Maryland.

The Ingram Micro ONE Innovation Summit awards honor the success of top-performing channel partners who have measurably exhibited an elite ability to drive business growth and positively impact the IT ecosystem with the support of Ingram Micro. This year’s honorees have displayed extraordinary levels of innovation, advocacy, performance, and sales success in 2024.

The Solution Partner of the Year award category recognizes partners for multiple solution categories and those who have leveraged cross-solutions at Ingram Micro to create significant impact and outstanding success in 2024.

“We are proud to recognize Converge’s growing success and strategic engagement with Ingram Micro,” said Jennifer Anaya, Senior Vice President, Global Marketing, Ingram Micro. “This year’s honorees are among the best in the business and continue to lead by example, evolving their services and solutions to best support the needs of their customers now and in the future. Congratulations to all our winners and thank you for playing such an important and growing role in the success of today’s global, regional and local B2B and B2C markets.”

“Converge is thrilled to have been named Ingram Micro’s Solution Partner of the Year for 2024,” stated Greg Berard, Chief Executive Officer of Converge. “We’re proud of our long-standing and strong working relationship with Ingram Micro, having been named Cloud Reseller Partner of the Year in 2020, 2021, and 2022, along with Blue Series Partner of the Year and CORE Partner of the Year in 2021. Our designation as this year’s Solution Partner of the Year is a testament to our growth as a company and our consistent ability to deliver groundbreaking solutions to our customers alongside Ingram Micro. We look forward to even greater success together in 2025.”

About Converge

Converge Technology Solutions Corp. is a services-led, software-enabled, IT & Cloud Solutions provider focused on delivering industry-leading solutions. Converge’s global approach delivers advanced analytics, artificial intelligence (AI), application modernization, cloud platforms, cybersecurity, digital infrastructure, and digital workplace offerings to clients across various industries. The Company supports these solutions with advisory, implementation, and managed services expertise across all major IT vendors in the marketplace. This multi-faceted approach enables Converge to address the unique business and technology requirements for all clients in the public and private sectors. For more information, visit convergetp.com.

For further information contact: Converge Technology Solutions Corp., Email: investors@convergetp.com, Phone: 416-360-1495

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Do China and the U.S. have common interests?

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BEIJING, Nov. 8, 2024 /PRNewswire/ — A news report by China.org.cn on China-US relations:

 

No doubt they do.

First, when it comes to the future of the China-U.S. relationship, both countries have been aware that they need to keep the overall bilateral relationship stable, and avoid letting situations get out of control. This embodies the largest common interest between the two. Secondly, in terms of economic and trade ties, the two countries aggregately account for 40% of global GDP; although the trade war between the two nations has lasted for years, they remain one of each other’s major trade partners, with their trade volume adding up to over 660 billion USD. Even for America, the majority of voices still believe it’s not a good idea to decouple with China in economy and trade. For regional and global hot spot issues, and sometimes even for the major issues that influence the U.S.’s own national interest, there would be no real resolution without consensus and collaboration between China and the U.S. In addition, many places in the world are suffering from extreme weather, making climate change a common challenge for all countries. As the largest developing country and the largest developed country, China and the U.S. have their respective strengths in energy transformation, greenhouse gas reduction, and circular economy among other aspects. The two enjoy great potential and bright prospects.

Therefore, the said two countries should pay more attention to the common interests between them, guiding the bilateral relationship through collaboration, instead of leaving it to be defined by disagreements.

China Mosaic
http://chinamosaic.china.com.cn/index.htm
Do China and the U.S. have common interests?
http://www.china.org.cn/video/2024-11/08/content_117535374.htm 

 

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SOURCE China.org.cn

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FITPAWS STRENGTHENS COMMITMENT TO CANINE AGILITY SPORTS WITH EXTENDED SPONSORSHIP OF THE FITPAWS WORLD AGILITY OPEN THROUGH 2026

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DENVER, Nov. 8, 2024 /PRNewswire/ — The World Agility Open (WAO), one of the largest annual international dog agility competitions, is proud to announce that FitPaws has committed to sponsoring the event through 2026 after a successful first year of the partnership in 2024.

FitPaws combines the art and science of physical training and rehabilitation to design equipment that improves dogs’ overall fitness. Founded in 2010, FitPaws equipment is trusted and recommended by top canine fitness and rehabilitation experts worldwide for building strength, increasing flexibility, and improving proprioception.

Since 2011, WAO has highlighted the pinnacle of training, human-canine partnership, and athleticism through teams from across the globe, all within the realm of agility sports. Teams from various nations will compete for five world championship titles, showcasing their skills in agility, jumping, speedstakes, and more.

“We are thrilled to extend our successful partnership and support this exceptional event for another two years,” says Ryan DeCaire, CEO of Paw Prosper, parent company of FitPaws. “Our ongoing sponsorship of the FitPaws World Agility Open is a testament to our deep commitment to celebrating the incredible talent and dedication in the agility community.”

“We are extremely excited to be extending our partnership with FitPaws through 2026,” says Greg Derrett, CEO of UK Agility International and the WAO. “The success of the 2024 event highlighted our shared passion for supporting the agility community and our goal of providing the ultimate global agility competition. We are excited to work together and build on this success.”

The 2025 FitPaws World Agility Open will be held at the National Hippic Centre (KHNS) in Ermelo, Netherlands, from May 14th to 18th. The event is expected to attract 650 competitors from 44 countries. Aaron Froude, Kine Eimhjellen, and Marko Makela will judge the 2025 event.

Paw Prosper
Media Contact
Kathryn Groenewold
Director of Marketing
Kathryn.Groenewold@pawprosper.com

 

SOURCE Paw Prosper

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