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The Madison Square Garden Company Reports Results for Fiscal 2013 First Quarter

The Madison Square Garden Company Reports Results for Fiscal 2013 First
Quarter

First quarter revenue of $204.2 million, a 15% increase compared to prior year
                                   quarter

  First quarter AOCF of $63.3 million, a 37% increase compared to prior year
                                   quarter

  First quarter operating income of $40.2 million, up 52% versus prior year
                                   quarter

   Second phase of the Arena Transformation project successfully completed

NEW YORK, Nov. 2, 2012 (GLOBE NEWSWIRE) -- The Madison Square Garden Company
(Nasdaq:MSG) today reported financial results for the fiscal first quarter
ended September 30, 2012.

Fiscal 2013 first quarter revenues of $204.2 million grew 15%, as compared to
the prior year quarter, primarily due to an increase in revenues in the MSG
Media segment and, to a lesser extent, an increase in revenues in the MSG
Entertainment and MSG Sports segments.

Fiscal 2013 first quarter adjusted operating cash flow ("AOCF")^(1) of $63.3
million increased 37%, as compared to the prior year quarter, primarily due to
an increase in AOCF in the MSG Media segment and, to a lesser extent, by
improved AOCF results in the MSG Sports and MSG Entertainment segments. Fiscal
2013 operating income of $40.2 million grew 52% and net income of $20.6
million ($0.26 per diluted share) decreased 3%, both as compared to the prior
year quarter. The increase in operating income was primarily due to the
increase in AOCF, while the decrease in net income was primarily due to an
increase in the effective tax rate, largely a result of deferred tax benefits
recognized in the first quarter of fiscal 2012.

President and CEO Hank Ratner said: "Our Company had a strong start to fiscal
2013, reflecting continued positive momentum across all three of our business
segments. We delivered robust first quarter results while also continuing to
invest in our businesses to drive long-term growth and create value for our
shareholders. With respect to the Transformation project, we have successfully
completed the second offseason shutdown of The Garden and The Theater at
Madison Square Garden and look forward to unveiling the second phase of the
Transformation to our customers and partners at tonight's Knicks game."

Results from Operations

Segment results for the quarters ended September 30, 2012 and 2011 are as
follows:


              
             Revenue               AOCF                 Operating Income
                                                          (Loss)
$ millions     Q1 2013 Q1     %      Q1     Q1     %      Q1     Q1     %
                       2012   Change 2013   2012   Change 2013   2012   Change
MSG Media      $159.5  $138.6 15 %  $76.7  $63.8  20 %  $71.0  $57.2  24 %
MSG            30.8    27.6   12 %  (12.6) (13.8) 9 %   (16.0) (17.2) 7 %
Entertainment
MSG Sports     31.6    28.8   10%   1.5    (0.5)  NM    (2.1)  (4.1)  49%
Other
(includes      (17.7)  (17.4) (2) %  (2.3)  (3.5)  34 %  (12.7) (9.5)  (34) %
eliminations)
Total Company  $204.2  $177.6 15 %  $63.3  $46.1  37 %  $40.2  $26.4  52 %

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 3 of this earnings
  release.

MSG Media

For the fiscal first quarter, MSG Media revenues of $159.5 million grew 15%,
as compared to the prior year period.Affiliate fee revenue increased $17.0
million, as compared to the prior year quarter, primarily attributable to
higher affiliation rates.Other net revenues increased $4.0 million, as
compared to the prior year quarter, primarily attributable to a short-term
programming licensing agreement.AOCF of $76.7 million increased 20% and
operating income of $71.0 million increased 24%, 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. 

MSG Entertainment

For the fiscal first quarter, MSG Entertainment revenues of $30.8 million grew
12%, as compared to the prior year period.The increase in revenues was
primarily attributable to higher sponsorship, signage and suite rental fee
revenues, and higher event-related revenues at the Beacon Theatre and The
Chicago Theatre, partially offset by a decrease in event-related revenues at
Radio City Music Hall.AOCF loss of $12.6 million improved 9% and operating
loss of $16.0 million improved 7%, both as compared to the prior year quarter,
primarily due to higher overall revenues, largely offset by an increase in
selling, general and administrative expenses and, to a lesser extent, an
increase in direct operating expenses. 

MSG Sports

For the fiscal first quarter, MSG Sports revenues of $31.6 million grew 10%,
as compared to the prior year period.The increase in revenues was primarily
due to an increase in suite rental fee revenue and sponsorship and signage
revenues, partially offset by a decrease in other net revenues.AOCF increased
by $1.9 million to $1.5 million and operating loss improved by $2.0 million to
a loss of $2.1 million, both as compared to the prior year quarter.The
increase in AOCF and improvement in operating loss primarily reflects lower
direct operating expenses and higher revenues, largely offset by 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, The Theater at Madison Square Garden,
Radio City Music Hall, the Beacon Theatre, the Forum in Inglewood, CA, The
Chicago Theatre, 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 page4 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 40282492

Conference call replay number is 855-859-2056 / Conference ID Number 40282492
until November 9, 2012


THE MADISON SQUARE GARDEN COMPANY

CONSOLIDATED OPERATIONS DATA AND RECONCILIATION
(In thousands, except per share data)
(Unaudited)

                                                          Three Months Ended
                                                           September 30,
                                                          2012      2011
                                                                   
Revenues                                                  $ 204,166 $ 177,639
                                                                   
Adjusted operating cash flow                               $63,309  $46,076
Share-based compensation expense                           (3,419)   (3,349)
Operating income before depreciation and amortization      59,890    42,727
Depreciation and amortization (incl. impairments)          (19,700)  (16,364)
Operating income                                           40,190    26,363
Other income (expense):                                             
Interest expense, net                                      (1,130)   (1,202)
Miscellaneous                                              36        --
Income from operations before income taxes                 39,096    25,161
Income tax expense                                         (18,491)  (3,873)
Net income                                                 $20,605  $21,288
Basic earnings per common share                            $0.27    $0.29
Diluted earnings per common share                          $0.26    $0.28
                                                                   
Basic weighted-average number of common shares outstanding 75,627    74,514
Diluted weighted-average number of common shares           77,767    77,185
outstanding

  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  
                                             September 30,
                                                              %
                                             2012      2011      Change
                                                              
MSG Media                                    $159,538 $138,630 15%
MSG Entertainment                            30,777    27,602    12 %
MSG Sports                                   31,564    28,814    10%
Other (including Inter-segment eliminations) (17,713)  (17,407)  (2) %
Total Madison Square Garden Company         $204,166 $177,639 15%



ADJUSTED OPERATING CASH FLOW AND OPERATING INCOME (LOSS)

                       Adjusted Operating         Operating Income   
                        Cash Flow                   (Loss)
                       Three Months Ended   %      Three Months Ended %
                        September 30,               September 30,
                       2012      2011       Change 2012      2011     Change
                                                                 
MSG Media               $76,704  $63,816   20%   $71,013  $57,164 24 %
MSG Entertainment      (12,559) (13,792)   9 %   (16,030)  (17,213) 7%
MSG Sports              1,461     (463)      --     (2,100)   (4,122)  49%
All other               (2,297)   (3,485)    34 % (12,693)  (9,466)  (34) %
Total Madison Square   $63,309  $ 46,076 37%   $40,190  $26,363 52%
Garden Company

                                      


THE MADISON SQUARE GARDEN COMPANY

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

                                                  September 30, June 30,
                                                   2012            2012
ASSETS                                             
Current Assets:                                                   
Cash and cash equivalents                          $205,278       $206,500
Restricted cash                                    5,790           5,789
Accounts receivable, net of allowance for doubtful 132,245         126,565
accounts of $2,690 and $2,434
Net related party receivables                      27,170          27,277
Prepaid expenses                                   55,698          29,700
Other current assets                               23,838          19,980
Total current assets                               450,019         415,811
Property and equipment, net of accumulated
depreciation and amortization of $418,425 and      1,033,813       969,528
$435,696
Amortizable intangible assets, net of accumulated  98,505          101,814
amortization of $79,155 and $122,210
Indefinite-lived intangible assets                 158,636         158,636
Goodwill                                           742,492         742,492
Other assets                                       143,790         136,403
                                                  $ 2,627,255     $ 2,524,684

                                                                 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:                                              
Accounts payable                                   $25,345       $33,048
Net related party payables                         1,650         362
Accrued liabilities:                                              
Employee related costs                             54,436         82,886
Other accrued liabilities                          176,485         188,410
Deferred revenue                                   324,255         211,639
Total current liabilities                         582,171         516,345
Defined benefit and other postretirement           61,250          58,817
obligations
Other employee related costs                       37,570          36,689
Other liabilities                                  62,943          60,438
Deferred tax liability                             540,642         532,382
Total liabilities                                  1,284,576       1,204,671
Commitments and contingencies                                     
Stockholders' Equity:                                             
Class A Common stock, par value $0.01, 360,000
shares authorized; 62,050 and 62,016 shares        628             628
outstanding
Class B Common stock, par value $0.01, 90,000      136             136
shares authorized; 13,589 shares outstanding
Preferred stock, par value $0.01, 45,000 shares    --              --
authorized; none outstanding
Additional paid-in capital                         1,073,095       1,070,046
Treasury stock, at cost, 927 shares                (22,047)        (22,047)
Retained earnings                                  316,017         295,412
Accumulated other comprehensive loss               (25,150)        (24,162)
Total stockholders' equity                         1,342,679       1,320,013
                                                  $ 2,627,255     $ 2,524,684


THE MADISON SQUARE GARDEN COMPANY

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

                                                   Three Months Ended 
                                                    September 30,
                                                   2012      2011
Net cash provided by operating activities           $68,978  $70,704
Net cash used in investing activities               (70,348)   (146,691)
Net cash provided by (used in) financing activities 148        (285)
Net decrease in cash and cash equivalents           (1,222)    (76,272)
Cash and cash equivalents at beginning of period    206,500    304,876
Cash and cash equivalents at end of period          $205,278  $228,604

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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