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Madison Square Garden Entertainment Corp. Reports Fourth Quarter and Fiscal 2020 Results

08/14/2020

Company Implements Significant Cost-Reduction Measures

Lengthens Construction Timetable for MSG Sphere In Las Vegas; Expects to Open Venue in Calendar 2023

Maintains Strong Liquidity Position, With $1.2 Billion in Cash and Short-Term Investments at Fiscal Year-End

NEW YORK--(BUSINESS WIRE)-- Madison Square Garden Entertainment Corp. (NYSE: MSGE) today provided an update on its business operations and reported financial results for the fourth quarter and fiscal year ended June 30, 2020. On April 17, 2020, Madison Square Garden Entertainment Corp. (“the Company” or “MSG Entertainment”) became a standalone company, following the completion of its spin-off from The Madison Square Garden Company, which was renamed Madison Square Garden Sports Corp. (“MSG Sports”).

Executive Chairman and CEO James L. Dolan said, “Our core operations performed well over the first eight months of fiscal 2020 and, even after the onset of COVID-19, we completed important initiatives, including the Forum sale and spin-off transaction. However, the ongoing impact of the pandemic has required us to make difficult decisions and take significant action in order to preserve the strength of our balance sheet and ensure we are well-positioned to resume operations when the time is right. Despite the uncertainty for our industry, we remain confident in our business and look forward to when we can bring fans and artists back together in our venues.”

Business Update
Over the first eight months of fiscal 2020, the Company was experiencing positive momentum across its operations. The 2019 season of the Christmas Spectacular Starring the Radio City Rockettes marked the show’s highest grossing run ever. The Company’s entertainment and sports bookings business was on track for a record number of events for the fiscal year and Tao Group Hospitality was delivering strong year-over-year growth. In addition, the Company was making significant progress on a number of important initiatives, including the construction of its MSG Sphere venue in Las Vegas and the completion of both the spin-off transaction and the $400 million sale of the Forum in Inglewood, California.

As a result of the COVID-19 pandemic, in mid-March, the Company’s performance venues and Tao Group Hospitality’s entertainment dining and nightlife venues were closed, and, except for certain Tao Group Hospitality venues, remain closed today. The Boston Calling Music Festival, scheduled for Memorial Day weekend, was canceled. And last week, the Company canceled its Christmas Spectacular production for this upcoming holiday season as a result of the ongoing uncertainty.

Following the shutdown of its venues in March, the Company took immediate steps to reduce discretionary spending and made several difficult decisions. Tao Group Hospitality eliminated essentially all its venue line staff and manager positions. The Company also ended financial support of event-level employees at its performance venues at the end of May. The Company has continued to review its operations and last week implemented additional actions, including a workforce reduction and significantly reduced spending across all departments.

The Company’s MSG Sphere venue in Las Vegas is also impacted. In April, the Company announced that it was suspending construction of MSG Sphere due to COVID-19 related factors that were outside of its control, including supply chain issues. As the ongoing effects of the pandemic have continued to impact its operations, the Company has revised its processes and construction schedule, and has resumed work with a lengthened timetable that enables the Company to better preserve cash in the near-term. The Company remains committed to bringing MSG Sphere to Las Vegas and, based on its new construction schedule, now expects to open the venue in calendar 2023.

The Company has taken these steps to conserve cash and believes it is well positioned to navigate the temporary shutdown. As of June 30, 2020, the Company had approximately $1.2 billion in cash and short-term investments. Debt outstanding consisted of a $33.8 million bank term loan at Tao Group Hospitality. The Company’s cash and cash equivalents at fiscal year-end included approximately $200 million in deferred revenue and collections due to promoters, primarily related to tickets, suites and sponsorships – all of which will be addressed, to the extent necessary, through credits, make-goods, refunds and/or rescheduled dates. As of June 30, 2020, the significant majority of deferred ticket revenue was related to events that have been or are expected to be rescheduled into calendar 2021. Ticketholders for rescheduled events have primarily opted to retain their tickets, and the Company is providing ticket refunds as appropriate.

Results from Operations
For all periods presented through the date of the spin-off, the financial results of the Company are presented in accordance with accounting requirements for the preparation of carve-out financial statements, reflecting the results of the entertainment businesses previously owned and operated by MSG Sports through its MSG Entertainment business segment, as well as the sports bookings business previously owned and operated by MSG Sports through its MSG Sports business segment. These results (through April 17, 2020) do not include the impact of intercompany agreements between the Company and MSG Sports, which were effective as of the date of the spin-off, and may not reflect the level of expenses that would have been incurred by the Company had it been a stand-alone company for the periods presented. Results for the period after the completion of the spin-off (April 18, 2020 through June 30, 2020) reflect the Company on a standalone basis.

The COVID-19 pandemic significantly impacted the Company’s fiscal 2020 results, and also led to significant non-cash impairment charges related to Tao Group Hospitality. In addition, fiscal 2020 results include a gain, resulting from the Forum sale and associated settlements, which was recorded during the fiscal 2020 fourth quarter. For fiscal 2020, the Company generated $762.9 million in revenues, a 27% decrease as compared to fiscal 2019. The Company had an operating loss of $59.8 million and an adjusted operating loss of $43.3 million in fiscal 2020, compared to an operating loss of $45.6 million and adjusted operating income of $103.9 million in fiscal 2019.(1)(2)(3)

For the fiscal 2020 fourth quarter, the Company reported revenues of $9.0 million, a decrease of 96% as compared with the prior year quarter. The Company had operating income of $94.4 million and an adjusted operating loss of $103.5 million, compared to an operating loss of $57.2 million and an adjusted operating loss of $21.5 million in the prior year quarter.(2)(3)(4)

Segment Results for the Quarters and Years Ended June 30, 2020 and 2019:

 

Three Months Ended
June 30,

 

Twelve Months Ended
June 30,

 

 

2020

2019

% Change

2020

2019

% Change

Revenues:

 

 

 

 

 

 

Entertainment

$

8.6

 

$

153.8

 

(94

)%

$

585.2

 

$

797.1

 

(27

)%

Tao Group Hospitality

 

1.3

 

 

61.9

 

(98

)%

 

180.2

 

 

253.7

 

(29

)%

Other(5)

 

(0.9

)

 

(0.5

)

NM

 

 

(2.5

)

 

(1.8

)

NM

 

Total Revenues

$

9.0

 

$

215.2

 

(96

)%

$

762.9

 

$

1,048.9

 

(27

)%

 

 

 

 

 

 

Operating Income (Loss):

 

 

 

 

 

 

Entertainment

$

118.2

 

$

(57.5

)

NM

 

$

71.0

 

$

(42.6

)

NM

 

Tao Group Hospitality

 

(20.6

)

 

5.6

 

NM

 

 

(102.6

)

 

17.7

 

NM

 

Other(5)

 

(3.3

)

 

(5.2

)

NM

 

 

(28.2

)

 

(20.7

)

NM

 

Total Operating Income (Loss)

$

94.4

 

$

(57.2

)

NM

 

$

(59.8

)

$

(45.6

)

(31

)%

 

 

 

 

 

 

Adjusted Operating Income (Loss):

 

 

 

 

 

 

Entertainment

$

(90.2

)

$

(28.5

)

NM

 

$

(44.3

)

$

79.7

 

NM

 

Tao Group Hospitality

 

(13.0

)

 

7.1

 

NM

 

 

1.5

 

 

24.3

 

(94

)%

Other(5)

 

(0.3

)

 

(0.1

)

NM

 

 

(0.5

)

 

(0.1

)

NM

 

Total Adjusted Operating Income (Loss)

$

(103.5

)

$

(21.5

)

NM

 

$

(43.3

)

$

103.9

 

NM

 

 

Note: Does not foot due to rounding

 
  1. See page 4 of this earnings release for the definition of adjusted operating income (loss) included in the discussion of non-GAAP financial measures.
  2. Fiscal 2020 and fiscal 2020 fourth quarter operating loss results include $105.8 million and $3.6 million, respectively, in impairment charges related to Tao Group Hospitality. Fiscal 2020 and fiscal 2020 fourth quarter operating results include a $240.8 million gain on the sale of the Forum and associated settlements.
  3. Fiscal 2019 operating results include the results for the Forum for the entire period while fiscal 2020 operating results include the Forum’s results through May 1, 2020.
  4. In the fiscal 2020 fourth quarter, the Company eliminated the three-month lag in Tao Group Hospitality’s operating results.
  5. Includes inter-segment eliminations and, for operating income (loss), purchase accounting adjustments.

Entertainment
For the fiscal 2020 fourth quarter, Entertainment segment revenues of $8.6 million decreased 94%, or $145.2 million, as compared with the prior year quarter, primarily reflecting the impact of COVID-19. The temporary closure of the Company’s venues led to decreases of $93.8 million in event-related revenues; $21.5 million in venue-related sponsorship and signage revenues; and $16.2 million in suite license fees. In addition, the cancellation of the Boston Calling Music Festival led to an additional revenue decrease of $10.6 million.

Fiscal 2020 fourth quarter direct operating expenses of $34.4 million decreased 72%, or $89.7 million, as compared with the prior year quarter. The absence of events in the quarter led to decreases of $55.0 million in event-related expenses at the Company’s venues; $14.9 million in event-related expenses for the Boston Calling Music Festival; $11.9 million in suite license expenses; and $9.4 million in venue-related sponsorship and signage expenses. This was partially offset by an increase in venue operating expenses of $5.8 million, primarily due to the Company’s decision to pay certain event-level employees through May 2020.

Fiscal 2020 fourth quarter selling, general and administrative expenses of $76.4 million increased 16%, or $10.7 million, as compared with the prior year quarter. This primarily reflects higher employee compensation and related benefits of $14.6 million, including the impact of severance-related costs attributable to separation agreements, partially offset by a decrease in professional fees of $3.7 million.

Fiscal 2020 fourth quarter operating income of $118.2 million increased by $175.7 million and adjusted operating loss of $90.2 million increased by $61.7 million. The improvement in operating income includes the impact of a $240.8 million gain on the sale of the Forum and associated settlements recorded in the fiscal 2020 fourth quarter. The increased adjusted operating loss primarily reflects the decrease in revenues and, to a lesser extent, higher selling, general and administrative expenses, partially offset by lower direct operating expenses.

Tao Group Hospitality
For the fiscal 2020 fourth quarter, Tao Group Hospitality segment revenues of $1.3 million decreased 98%, or $60.5 million, as compared to the prior year quarter, primarily due to the temporary closure of its entertainment dining and nightlife venues as a result of the COVID-19 pandemic.

Fiscal 2020 fourth quarter direct operating expenses of $6.6 million decreased 82%, or $29.7 million, as compared to the prior year quarter. Employee compensation and related benefits decreased $16.0 million, primarily due to the elimination of essentially all of Tao Group Hospitality’s venue staff positions in late March. In addition, the cost of food and beverage decreased $10.7 million, a result of the temporary closure of Tao Group Hospitality’s venues.

Fiscal 2020 fourth quarter selling, general and administrative expenses of $8.6 million decreased 53%, or $9.8 million, as compared to the prior year quarter. This primarily reflects a decrease in marketing costs of $3.4 million, as well as a decrease in employee compensation and related benefits of $1.5 million and other net decreases.

Fiscal 2020 fourth quarter operating income decreased by $26.1 million to a loss of $20.6 million and adjusted operating income decreased by $20.1 million to a loss of $13.0 million, both compared to the prior year quarter. This primarily reflects the decrease in revenues, partially offset by lower direct operating expenses and, to a lesser extent, lower selling, general and administrative expenses. Fiscal 2020 fourth quarter operating loss includes a net impairment charge of $4.8 million.

About Madison Square Garden Entertainment Corp.
Madison Square Garden Entertainment Corp. (MSG Entertainment) is a leader in live entertainment experiences. The Company presents or hosts a broad array of events in its diverse collection of venues: New York’s Madison Square Garden, Hulu Theater at Madison Square Garden, Radio City Music Hall and Beacon Theatre; and The Chicago Theatre. MSG Entertainment is also building a new state-of-the-art venue in Las Vegas, MSG Sphere at The Venetian, and has announced plans to build a second MSG Sphere in London, pending necessary approvals. In addition, the Company features the original production – the Christmas Spectacular Starring the Radio City Rockettes – and through Boston Calling Events, produces the Boston Calling Music Festival. Also under the MSG Entertainment umbrella is Tao Group Hospitality, with entertainment dining and nightlife brands including Tao, Marquee, Lavo, Avenue, Beauty & Essex and Cathédrale. More information is available at www.msgentertainment.com.

Non-GAAP Financial Measures
We define adjusted operating income (loss), which is a non-GAAP financial measure, as operating income (loss) before (i) adjustments to remove the impact of non-cash straight-line leasing revenue associated with the arena license agreements with Madison Square Garden Sports Corp., (ii) depreciation, amortization and impairments of property and equipment, goodwill and other intangible assets, (iii) amortization for capitalized cloud computing arrangement costs, (iv) share-based compensation expense or benefit, (v) restructuring charges or credits, and (vi) gains or losses on sales or dispositions of businesses and associated settlements, which is referred to as adjusted operating income (loss), a non-GAAP measure. In addition to excluding the impact of the items discussed above, the impact of purchase accounting adjustments related to business acquisitions is also excluded in evaluating the Company’s consolidated adjusted operating income (loss). 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 believe that given the length of the arena license agreements and resulting magnitude of the difference in leasing revenue recognized and cash revenue received, the exclusion of non-cash leasing revenue provides investors with a clearer picture of the Company's operating performance. We did not accrue any leasing revenue during fiscal 2020 because the arena license agreements provide that license payments are not due during the government mandated closure of The Garden.

We believe adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of our business segments and the Company on a consolidated 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 U.S. generally accepted accounting principles (“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 6 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 and events 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, the impact of the COVID-19 pandemic 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 9:00 a.m. ET at investor.msgentertainment.com
Conference call dial-in number is 888-421-7163 / Conference ID Number 1447748
Conference call replay number is 855-859-2056 / Conference ID Number 1447748 until August 21, 2020

CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

 

 

 

Three Months Ended
June 30,

 

Twelve Months Ended
June 30,

 

 

2020

 

2019

 

2020

 

2019

Revenues

 

$

8,999

 

 

$

215,197

 

 

$

762,936

 

 

$

1,048,909

 

Direct operating expenses

 

41,729

 

 

161,221

 

 

508,122

 

 

670,641

 

Selling, general and administrative expenses

 

84,981

 

 

83,893

 

 

344,637

 

 

314,522

 

Depreciation and amortization

 

25,100

 

 

27,296

 

 

104,899

 

 

109,343

 

Impairment for intangibles, long-lived assets, and goodwill

 

3,606

 

 

 

 

105,817

 

 

 

Gain on disposal of assets held for sale and associated settlements

 

(240,783

)

 

 

 

(240,783

)

 

 

Operating income (loss)

 

94,366

 

 

(57,213

)

 

(59,756

)

 

(45,597

)

Other income (expense):

 

 

 

 

 

 

 

 

Earnings (loss) in equity method investments

 

(694

)

 

(9,790

)

 

(4,433

)

 

7,062

 

Interest income

 

751

 

 

8,072

 

 

17,993

 

 

30,163

 

Interest expense

 

(446

)

 

(5,393

)

 

(2,300

)

 

(15,262

)

Miscellaneous expense, net

 

39,850

 

 

(1,943

)

 

38,855

 

 

(6,061

)

Income (loss) from operations before income taxes

 

133,827

 

 

(66,267

)

 

(9,641

)

 

(29,695

)

Income tax benefit (expense)

 

(13,732

)

 

1,169

 

 

(5,046

)

 

(443

)

Net income (loss)

 

120,095

 

 

(65,098

)

 

(14,687

)

 

(30,138

)

Less: Net loss attributable to redeemable noncontrolling interests

 

(5,238

)

 

(3,637

)

 

(30,387

)

 

(7,299

)

Less: Net loss attributable to nonredeemable noncontrolling interests

 

(1,293

)

 

(2,172

)

 

(1,534

)

 

(4,945

)

Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders

 

$

126,626

 

 

$

(59,289

)

 

$

17,234

 

 

$

(17,894

)

Basic earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders

 

$

5.27

 

 

$

(2.47

)

 

$

0.72

 

 

$

(0.75

)

Diluted earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders

 

$

5.26

 

 

$

(2.47

)

 

$

0.72

 

 

$

(0.75

)

Basic weighted-average number of common shares outstanding

 

24,019

 

 

23,992

 

 

23,998

 

 

23,992

 

Diluted weighted-average number of common shares outstanding

 

24,095

 

 

23,992

 

 

24,017

 

 

23,992

 

ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO
ADJUSTED OPERATING INCOME (LOSS)
(Unaudited)

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

  • Share-based compensation expense. This adjustment eliminates the compensation expense relating to restricted stock units and stock options granted under our employee stock plan and non-employee director plan in all periods.
  • Depreciation and amortization. This adjustment eliminates depreciation, amortization and impairments of property and equipment and intangible assets in all periods.
  • Impairment of intangibles, long-lived assets and goodwill. This adjustment eliminates non-cash impairment charges in all periods.
  • Gains or losses on disposal of assets. This adjustment eliminates the impact of gains or losses from the disposition of assets or businesses.
  • Purchase accounting adjustments. This adjustment eliminates the impact of various purchase accounting adjustments related to business acquisitions, primarily favorable / unfavorable lease agreements of the acquiree.

 

 

Three Months Ended
June 30,

 

Twelve Months Ended
June 30,

 

 

2020

 

2019

 

2020

 

2019

Operating income (loss)

 

$

94,366

 

 

$

(57,213

)

 

$

(59,756

)

 

$

(45,597

)

Share-based compensation

 

12,896

 

 

7,472

 

 

42,190

 

 

35,401

 

Depreciation and amortization(1)

 

25,100

 

 

27,296

 

 

104,899

 

 

109,343

 

Impairment of intangibles, long-lived assets, and goodwill(2)

 

3,606

 

 

 

 

105,817

 

 

 

Gain on disposal of assets held for sale, including associated settlements

 

(240,783

)

 

 

 

(240,783

)

 

 

Purchase accounting adjustments

 

1,338

 

 

960

 

 

4,367

 

 

4,764

 

Adjusted operating income (loss)

 

$

(103,477

)

 

$

(21,485

)

 

$

(43,266

)

 

$

103,911

 

_________________

 
  1. Includes depreciation and amortization related to purchase accounting adjustments.
  2. As a result of operating disruptions due to COVID-19, the Company was required to assess the carrying value of Tao Group Hospitality’s intangible assets, long-lived assets and goodwill. As a result, the Company recorded a non-cash impairment charge of $105,817 associated with Tao Group Hospitality for the twelve months ended June 30, 2020. This charge reflected $88,583 related to goodwill, as well as impairment charges related to Tao Group Hospitality venues of $13,693 for long-lived assets and $3,541 for intangible assets for the twelve months ended June 30, 2020. For the three months ended June 30, 2020, the Company recorded a non-cash impairment charge related to Tao Group Hospitality venues of $3,606. This charge reflected $7,885 related to goodwill, partially offset by net impairment credits related to Tao Group Hospitality venues of $4,279.

CONSOLIDATED OPERATIONS DATA
(Dollars in thousands)
(Unaudited)

   

REVENUES

 

 

 

Three Months Ended
June 30,

 

 

 

 

 

2020

 

2019

 

% Change

Entertainment

 

$

8,550

 

 

$

153,796

 

 

(94

)%

Tao Group Hospitality

 

1,337

 

 

61,861

 

 

(98

)%

Other(1)

 

(888

)

 

(460

)

 

NM

 

Total Madison Square Garden Entertainment Corp.

 

$

8,999

 

 

$

215,197

 

 

(96

)%

   
 

 

 

Twelve Months Ended
June 30,

 

 

 

 

 

2020

 

2019

 

% Change

Entertainment

 

$

585,208

 

 

$

797,058

 

 

(27

)%

Tao Group Hospitality

 

180,201

 

 

253,651

 

 

(29

)%

Other(1)

 

(2,473

)

 

(1,800

)

 

NM

 

Total Madison Square Garden Entertainment Corp.

 

$

762,936

 

 

$

1,048,909

 

 

(27

)%

OPERATING INCOME (LOSS) AND ADJUSTED OPERATING INCOME (LOSS)

   

 

 

Operating Income
(Loss)

 

 

 

 

Adjusted Operating Income
(Loss)

 

 

 

 

 

Three Months Ended
June 30,

 

 

 

 

Three Months Ended
June 30,

 

 

 

 

 

2020

 

2019

 

% Change

 

 

2020

 

2019

 

% Change

 

Entertainment

 

$

118,203

 

 

$

(57,537

)

 

NM

 

 

$

(90,223

)

 

$

(28,484

)

 

NM

 

Tao Group Hospitality

 

(20,583

)

 

5,564

 

 

NM

 

 

(12,987

)

 

7,074

 

 

NM

 

Other(1)

 

(3,254

)

 

(5,240

)

 

NM

 

 

(267

)

 

(75

)

 

NM

 

Total Madison Square Garden Entertainment Corp.

 

$

94,366

 

 

$

(57,213

)

 

NM

 

 

$

(103,477

)

 

$

(21,485

)

 

NM

 

   
   

 

 

Operating Income
(Loss)

 

 

 

Adjusted Operating Income
(Loss)

 

 

 

 

 

Twelve Months Ended
June 30,

 

 

 

Twelve Months Ended
June 30,

 

 

 

 

 

2020

 

2019

 

% Change

 

2020

 

2019

 

% Change

Entertainment

 

$

71,016

 

 

$

(42,573

)

 

NM

 

 

$

(44,251

)

 

$

79,696

 

 

 

NM

 

Tao Group Hospitality

 

(102,588

)

 

17,716

 

 

NM

 

 

1,477

 

 

24,290

 

 

(94

)%

Other(1)

 

(28,184

)

 

(20,740

)

 

NM

 

 

(492

)

 

(75

)

 

NM

 

Total Madison Square Garden Entertainment Corp.

 

$

(59,756

)

 

$

(45,597

)

 

(31

)%

 

$

(43,266

)

 

$

103,911

 

 

NM

 

  1. Includes inter-segment eliminations and, for operating income (loss), purchase accounting adjustments. For the three months ended June 30, 2020 and 2019, purchase accounting adjustments were $2,987 and $5,165, respectively. For the twelve months ended June 30, 2020 and 2019, purchase accounting adjustments were $27,692 and $20,665.

 

CONSOLIDATED AND COMBINED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)

 

 

 

June 30,

 

 

2020

 

2019

ASSETS

 

 

 

 

Current Assets:

 

 

 

 

Cash and cash equivalents

 

$

906,555

 

 

$

1,082,055

 

Restricted cash

 

17,749

 

 

10,010

 

Short-term investments

 

337,192

 

 

108,416

 

Accounts receivable, net

 

57,184

 

 

81,044

 

Net related party receivables

 

23,062

 

 

1,722

 

Prepaid expenses

 

62,127

 

 

24,067

 

Other current assets

 

22,633

 

 

39,430

 

Total current assets

 

1,426,502

 

 

1,346,744

 

Investments and loans to nonconsolidated affiliates

 

52,622

 

 

84,560

 

Property and equipment, net

 

1,646,115

 

 

1,349,122

 

Right-of-use lease assets

 

220,328

 

 

 

Amortizable intangible assets, net

 

150,426

 

 

214,391

 

Indefinite-lived intangible assets

 

63,801

 

 

65,421

 

Goodwill

 

74,309

 

 

165,558

 

Other assets

 

85,103

 

 

89,963

 

Total assets

 

$

3,719,206

 

 

$

3,315,759

 

MADISON SQUARE GARDEN ENTERTAINMENT CORP.
CONSOLIDATED AND COMBINED BALANCE SHEETS (continued)
(In thousands, except per share data)
(Unaudited)

 

 

 

June 30,

 

 

2020

 

2019

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

 

 

 

 

Current Liabilities:

 

 

 

 

Accounts payable

 

$

17,258

 

 

$

23,974

 

Net related party payables, current

 

18,418

 

 

18,911

 

Current portion of long-term debt, net of deferred financing costs

 

5,429

 

 

6,042

 

Accrued liabilities:

 

 

 

 

Employee related costs

 

68,837

 

 

82,411

 

Other accrued liabilities

 

125,452

 

 

88,614

 

Operating lease liabilities, current

 

53,388

 

 

 

Collections due to promoters

 

31,879

 

 

67,212

 

Deferred revenue

 

189,308

 

 

186,883

 

Total current liabilities

 

509,969

 

 

474,047

 

Related party payables, noncurrent

 

 

 

172

 

Long-term debt, net of deferred financing costs

 

28,126

 

 

48,556

 

Operating lease liabilities, noncurrent

 

174,219

 

 

 

Defined benefit and other postretirement obligations

 

26,132

 

 

41,318

 

Other employee related costs

 

15,591

 

 

15,703

 

Deferred tax liabilities, net

 

12,450

 

 

22,973

 

Other liabilities

 

78,279

 

 

59,525

 

Total liabilities

 

844,766

 

 

662,294

 

Commitments and contingencies

 

 

 

 

Redeemable noncontrolling interests

 

20,600

 

 

67,627

 

Madison Square Garden Entertainment Corp. Stockholders’ Equity:

 

 

 

 

Class A common stock, par value $0.01, 120,000 shares authorized; 19,493 shares outstanding as of June 30, 2020

 

195

 

 

 

Class B common stock, par value $0.01, 30,000 shares authorized; 4,530 shares outstanding as of June 30, 2020

 

45

 

 

 

Preferred stock, par value $0.01, 15,000 shares authorized; none outstanding as of June 30, 2020

 

 

 

 

Additional paid-in capital

 

2,751,318

 

 

 

Retained earnings

 

141,936

 

 

 

Madison Square Garden Sports Corp. Investment

 

 

 

2,618,971

 

Accumulated other comprehensive loss

 

(51,857

)

 

(46,923

)

Total Madison Square Garden Entertainment Corp. stockholders’ equity

 

2,841,637

 

 

2,572,048

 

Nonredeemable noncontrolling interests

 

12,203

 

 

13,790

 

Total equity

 

2,853,840

 

 

2,585,838

 

Total liabilities, redeemable noncontrolling interests and equity

 

$

3,719,206

 

 

$

3,315,759

 

SELECTED CASH FLOW INFORMATION
(Dollars in thousands)
(Unaudited)

 

 

Twelve Months Ended
June 30,

 

 

2020

 

2019

Net cash provided by operating activities

 

$

96,031

 

 

$

91,724

 

Net cash used in investing activities

 

(389,657

)

 

(228,063

)

Net cash provided by (used in) financing activities

 

122,938

 

 

(8,621

)

Effect of exchange rates on cash, cash equivalents and restricted cash

 

2,927

 

 

4,669

 

Net decrease in cash, cash equivalents and restricted cash

 

(167,761

)

 

(140,291

)

Cash, cash equivalents and restricted cash at beginning of period

 

1,092,065

 

 

1,232,356

 

Cash, cash equivalents and restricted cash at end of period

 

$

924,304

 

 

$

1,092,065

 

 

Kimberly Kerns
EVP and Chief Communications Officer
Madison Square Garden Entertainment Corp.
(212) 465-6442

Ari Danes, CFA
Senior Vice President, Investor Relations & Treasury
Madison Square Garden Entertainment Corp.
(212) 465-6072

Source: Madison Square Garden Entertainment Corp.

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