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

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

  Second Quarter Revenues of $387.9 Million, a 4% Increase Compared to Prior
                                 Year Quarter

 Second Quarter AOCF of $108.3 Million, a 37% Increase Compared to Prior Year
                                   Quarter

  Second Quarter Operating Income of $81.0 Million, Up 69% Versus Prior Year
                                   Quarter

NEW YORK, Feb. 6, 2013 (GLOBE NEWSWIRE) -- The Madison Square Garden Company
(Nasdaq:MSG) today reported financial results for the fiscal second quarter
ended December 31, 2012.

Fiscal 2013 second quarter revenues of $387.9 million grew 4%, as compared to
the prior year quarter, primarily due to an increase in revenues in the MSG
Media segment. Adjusted operating cash flow ("AOCF")^(1) of $108.3 million
increased 37%, as compared to the prior year quarter, primarily due to an
increase in AOCF in the MSG Media segment and improved AOCF results in the MSG
Sports segment, partially offset by a decrease in AOCF in the MSG
Entertainment segment. Fiscal 2013 second quarter operating income of $81.0
million grew 69% and net income of $46.9 million ($0.60 per diluted share)
increased 83%, both as compared to the prior year quarter.

Results for the fiscal 2013 second quarter were impacted by the NHL work
stoppage and the New York Knicks' return to a full regular season schedule.
The NHL work stoppage delayed the start of the 2012-13 regular season by
approximately three months to January 19, 2013 and has led to a shortened
48-game regular season.As a result of the work stoppage, the New York Rangers
did not play preseason or regular season games in the fiscal 2013 second
quarter versus playing a combined 38 home and away games in the fiscal 2012
second quarter.

The New York Knicks played a combined 36 preseason and regular season home and
away games during the fiscal 2013 second quarter.During the prior year
quarter, the NBA work stoppage delayed the start of the 2011-12 regular season
by approximately two months to December 25, 2011 resulting in the Knicks only
playing a combined six preseason and regular season home and away games in the
fiscal 2012 second quarter.

President and CEO Hank Ratner said: "Our Company delivered strong results in
our fiscal second quarter, while navigating through the delayed start of the
NHL season and the impact of Hurricane Sandy.The second phase of the
Transformation has been enthusiastically received by all of our key customers,
including season ticket holders, suite holders and marketing partners, and we
now look forward to the successful completion of the final phase of this
historic project this upcoming offseason.We remain confident that our Company
is well-positioned to drive long-term growth and ongoing value creation for
our shareholders." 

Results from Operations

Segment results for the quarters ended December 31, 2012 and 2011 are as
follows:

               
               Revenues             AOCF                 Operating Income
                                                          (Loss)
$ millions      F'Q2   F'Q2   %      F'Q2   F'Q2  %      F'Q2   F'Q2  %
                2013   2012   Change 2013   2012   Change 2013   2012   Change
MSG Media       $156.8 $142.4 10%    $95.6  $63.6  50%    $90.2  $53.1  70%
MSG             151.1  151.2  (0)%   30.0   37.2   (19)%  26.2   33.0   (20)%
Entertainment
MSG Sports      89.9   88.6   1%     (14.5) (19.9) 27%    (18.3) (24.2) 24%
Other (includes (9.9)  (9.2)  (7)%   (2.9)  (1.7)  (74)%  (17.1) (13.9) (22)%
eliminations)
Total Company   $387.9 $373.0 4%     $108.3 $79.1  37%    $81.0  $48.0  69%
                                                               
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 below.

MSG Media

For the fiscal second quarter, MSG Media revenues of $156.8 million grew 10%,
as compared to the prior year period.Affiliate fee revenue increased $5.2
million, as compared to the prior year quarter, primarily attributable to
higher affiliation rates, with the overall increase largely offset by the net
impact of recorded provisions that are not expected to be
recurring.Advertising revenue increased $5.1 million, as compared to the
prior year quarter, primarily due to higher sales generated from professional
sports programming, resulting mainly from an increase in the number of Knicks
telecasts, partially offset by the absence of NHL telecasts.In addition, Fuse
advertising revenue increased, as compared to the prior year quarter.Other
net revenues increased $4.1 million, as compared to the prior year quarter,
primarily attributable to a short-term programming licensing agreement.AOCF
of $95.6 million increased 50% and operating income of $90.2 million increased
70%, both as compared to the prior year quarter, primarily due to lower direct
operating expenses and higher revenues. 

MSG Entertainment

For the fiscal second quarter, MSG Entertainment revenues of $151.1 million
were essentially flat, as compared to the prior year period.Higher
event-related revenues at The Theater at Madison Square Garden and other net
increases were offset by lower revenues for the Radio City Christmas
Spectacular franchise and lower event-related revenues at the Beacon Theatre.
Lower revenues for the Radio City Christmas Spectacular franchise include a
decrease in revenues for the New York production, which was significantly
impacted by Hurricane Sandy. AOCF of $30.0 million decreased 19% and
operating income of $26.2 million decreased 20%, both as compared to the prior
year quarter, primarily due to an increase in direct operating expenses, which
include a $5.0 million impairment charge related to a production of the Radio
City Christmas Spectacular that played in three markets outside of New York.


MSG Sports

For the fiscal second quarter, MSG Sports revenues of $89.9 million increased
1% as compared to the prior year period.Total segment revenues increased
primarily due to the Knicks' return to a full regular season schedule, mostly
offset by the impact of the NHL work stoppage. The net impact of these two
items resulted in higher league distributions and inter-segment broadcast
rights revenue, mostly offset by lower professional sports team food, beverage
and merchandise revenues, suite rental fee revenue, and professional sports
team preseason and regular season ticket-related revenue.In addition,
event-related revenues from other live sporting events decreased, as compared
to the prior year quarter.AOCF loss improved by $5.4 million to a loss of
$14.5 million and operating loss improved by $5.9 million to a loss of $18.3
million, both as compared to the prior year quarter, primarily due to lower
direct operating expenses and, to a lesser extent, higher revenues and lower
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, bull riding 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=15647

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 the first table below.

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 87313255

Conference call replay number is 855-859-2056 / Conference ID Number 87313255
until February 13, 2012


THE MADISON SQUARE GARDEN COMPANY
                                                                 
CONSOLIDATED OPERATIONS DATA AND RECONCILIATION
(In thousands, except per share data)
(Unaudited)
                                                                 
                                      Three Months Ended  Six Months Ended
                                      December 31,        December 31,
                                      2012      2011      2012      2011
                                                                 
Revenues                               $387,886  $373,007  $592,052  $550,646
                                                                 
Adjusted operating cash flow           $108,288  $79,147   $171,597  $125,223
Share-based compensation expense       (5,521)  (7,097)  (8,940)  (10,446)
Operating income before depreciation   102,767  72,050   162,657  114,777
and amortization
Depreciation and amortization (incl.   (21,744) (24,094) (41,444) (40,458)
impairments)
Operating income                       81,023   47,956   121,213  74,319
Other income (expense):                                           
Interest expense, net                  (1,284)  (1,311)  (2,414)  (2,513)
Miscellaneous                          66       --      102      --
Income from operations before income   79,805   46,645   118,901  71,806
taxes
Income tax expense                     (32,894) (21,026) (51,385) (24,899)
Net income                             $46,911   $25,619   $67,516   $46,907
Basic earnings per common share        $0.62     $0.34     $0.89     $0.63
Diluted earnings per common share      $0.60     $0.33     $0.87     $0.61
                                                                 
Basic weighted-average number of       75,914    74,632    75,770    74,573
common shares outstanding
Diluted weighted-average number of     77,889    77,379    77,829    77,283
common shares 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  
                                             December 31,        %
                                             2012      2011      Change
                                                               
MSG Media                                    $156,770  $142,408  10%
MSG Entertainment                            151,122   151,224   (0)%
MSG Sports                                    89,903    88,622    1%
Other (including Inter-segment eliminations) (9,909)  (9,247)  (7)%
Total Madison Square Garden Company           $387,886  $373,007  4%
                                                               
                                             Six Months Ended    
                                             December 31,        %
                                             2012      2011      Change
                                                               
MSG Media                                    $316,308  $281,038  13%
MSG Entertainment                            181,899   178,826   2%
MSG Sports                                    121,467   117,436   3%
Other (including Inter-segment eliminations) (27,622) (26,654) (4)%
Total Madison Square Garden Company           $592,052  $550,646  8%


ADJUSTED OPERATING CASH FLOW AND OPERATING INCOME (LOSS)
                                                                  
                        Adjusted Operating       Operating Income   
                        Cash Flow                 (Loss)
                        Three Months Ended       Three Months Ended 
                        December 31,        %      December 31,        %
                        2012      2011      Change 2012      2011      Change
                                                                  
MSG Media               $95,618   $63,555   50%    $90,183   $53,128   70%
MSG Entertainment       30,036   37,173   (19)%  26,228   32,984   (20)%
MSG Sports               (14,484) (19,920) 27%    (18,322) (24,208) 24%
All other               (2,882)  (1,661)  (74)%  (17,066) (13,948) (22)%
Total Madison Square     $108,288  $79,147   37%    $81,023   $47,956   69%
Garden Company
                                                                  
                        Adjusted Operating       Operating Income   
                        Cash Flow                 (Loss)
                        Six Months Ended         Six Months Ended   
                        December 31,        %      December 31,        %
                        2012      2011      Change 2012      2011      Change
                                                                  
MSG Media               $172,322  $127,371  35%    $161,196  $110,292  46%
MSG Entertainment       17,477   23,381   (25)%  10,198   15,771   (35)%
MSG Sports               (13,023) (20,383) 36%    (20,422) (28,330) 28%
All other               (5,179)  (5,146)  (1)%   (29,759) (23,414) (27)%
Total Madison Square     $171,597  $125,223  37%    $121,213  $74,319   63%
Garden Company



THE MADISON SQUARE GARDEN COMPANY
                                                                  
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
                                                                  
                                                      December 31, June 30,
                                                       2012         2012
ASSETS                                                             
Current Assets:                                                    
Cash and cash equivalents                              $248,594     $206,500
Restricted cash                                        250          5,789
Accounts receivable, net of allowance for doubtful     132,811      126,565
accounts of $2,327 and $2,434
Net related party receivables                          27,019       27,277
Prepaid expenses                                       60,363       29,700
Other current assets                                   19,166       19,980
Total current assets                                   488,203      415,811
Property and equipment, net of accumulated             1,075,107    969,528
depreciation and amortization of $436,922 and $435,696
Amortizable intangible assets, net of accumulated      95,905       101,814
amortization of $79,874 and $122,210
Indefinite-lived intangible assets                     158,636      158,636
Goodwill                                               742,492      742,492
Other assets                                           135,560      136,403
                                                      $2,695,903   $2,524,684
                                                                  
LIABILITIES AND STOCKHOLDERS' EQUITY                               
Current Liabilities:                                               
Accounts payable                                       $17,985      $33,048
Net related party payables                             376          362
Accrued liabilities:                                               
Employee related costs                                 68,834      82,886
Other accrued liabilities                              215,716     188,410
Deferred revenue                                       295,897     211,639
Total current liabilities                              598,808     516,345
                                                                  
Defined benefit and other postretirement obligations   62,290      58,817
Other employee related costs                           40,176      36,689
Other liabilities                                      58,177      60,438
Deferred tax liability                                 539,387     532,382
Total liabilities                                      1,298,838   1,204,671
Commitments and contingencies                                      
Stockholders' Equity:                                              
Class A Common stock, par value $0.01, 360,000 shares  637         628
authorized; 62,880 and 62,016 shares outstanding
Class B Common stock, par value $0.01, 90,000 shares   136         136
authorized; 13,589 shares outstanding
Preferred stock, par value $0.01, 45,000 shares        --         --
authorized; none outstanding
Additional paid-in capital                             1,078,693   1,070,046
Treasury stock, at cost, 927 shares                    (22,047)    (22,047)
Retained earnings                                      362,928     295,412
Accumulated other comprehensive loss                   (23,282)    (24,162)
Total stockholders' equity                             1,397,065    1,320,013
                                                      $2,695,903   $2,524,684



THE MADISON SQUARE GARDEN COMPANY
                                                               
SELECTED CASH FLOW INFORMATION
(Dollars in thousands)
(Unaudited)
                                                               
                                                     Six Months Ended
                                                      December 31,
                                                     2012       2011
Net cash provided by operating activities            $203,965   $180,947
Net cash used in investing activities                (159,313) (268,498)
Net cash provided by (used in) financing activities  (2,558)   4,093
                                                               
Net increase (decrease) in cash and cash equivalents 42,094    (83,458)
Cash and cash equivalents at beginning of period     206,500   304,876
Cash and cash equivalents at end of period           $248,594   $221,418

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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