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The Madison Square Garden Company Reports Fourth Quarter and Fiscal 2013 Results

The Madison Square Garden Company Reports Fourth Quarter and Fiscal 2013
Results

  Fiscal 2013 revenues of $1.3 billion, a 4% increase compared to prior year

  Fiscal 2013 AOCF of $355.6 million, a 26% increase compared to prior year

   Fiscal 2013 operating income of $251.1 million, up 41% versus prior year

                                      

  Fourth quarter revenues of $336.4 million, a 1% increase compared to prior
                             year fourth quarter

 Fourth quarter AOCF of $92.2 million, a 19% increase compared to prior year
                                fourth quarter

  Fourth quarter operating income of $66.1 million, up 32% versus prior year
                                fourth quarter

NEW YORK, Aug. 21, 2013 (GLOBE NEWSWIRE) -- The Madison Square Garden Company
(Nasdaq:MSG) today reported financial results for the fourth quarter and
fiscal year ended June 30, 2013.

Fiscal 2013 revenues of $1.3 billion grew 4%, as compared to the prior year,
primarily due to an increase in revenues in the MSG Media and MSG Sports
segments, partially offset by a decrease in revenues in the MSG Entertainment
segment. Adjusted operating cash flow ("AOCF")^(1) of $355.6 million increased
26%, as compared to the prior year, primarily due to an increase in AOCF in
the MSG Media segment, partially offset by a decrease in AOCF in the MSG
Entertainment and MSG Sports segments.Fiscal 2013 operating income of $251.1
million grew 41% and net income of $142.4 million ($1.83 per diluted share)
increased 34%, both as compared to the prior year.

Fiscal 2013 fourth quarter revenues of $336.4 million grew 1%, as compared to
the prior year fourth quarter, primarily due to an increase in revenues in the
MSG Media and MSG Sports segments, mostly offset by a decrease in revenues in
the MSG Entertainment segment. AOCF of $92.2 million increased 19%, as
compared to the prior year fourth quarter, primarily due to an increase in
AOCF in the MSG Media and MSG Sports segments, partially offset by a decrease
in AOCF in the MSG Entertainment segment. Fiscal 2013 fourth quarter operating
income of $66.1 million grew 32% and net income of $36.4 million ($0.47 per
diluted share) increased 27%, both as compared to the prior year fourth
quarter.

President and CEO Hank Ratner said: "We concluded fiscal 2013 with a solid
fourth quarter, capping off another record year of revenues and adjusted
operating cash flow for our company, as we continue to benefit from the
combined strength of our fully integrated media, entertainment and sports
business.This fall, we will reach one of the most important moments in
Madison Square Garden's history as we debut a completely transformed arena
that will continue to deliver multiple benefits for our company.This will be
followed early next calendar year with the re-opening of a revitalized Forum
arena, which will mark the company's venue expansion to the West Coast.This
is an exciting time for our company and, looking ahead, we feel confident that
the successful completion of these significant capital investments, along with
our strong balance sheet, will leave us well positioned to pursue
opportunities to drive continued growth over the long-term." 

Results from Operations

Segment results for the quarters ended June 30, 2013 and 2012 are as follows:

             
             Revenues             AOCF                     Operating Income
                                                            (Loss)
$ millions    F'Q4   F'Q4   %      F'Q4   F'Q42012 %      F'Q4   F'Q4   %
              2013   2012   Change 2013              Change 2013   2012  Change
MSG Media     $176.8 $167.0 6 %   $81.8  $65.9      24 %  $77.6  $59.5  30 %
MSG           34.8   50.8   (31) % (14.6) (5.3)      (174)  (17.8) (8.7)  (106)
Entertainment                                        %                    %
MSG Sports    140.7  131.2  7%    28.4   19.8       43 %  25.8   16.0   61 %
Other
(includes     (15.9) (16.0) (0) %  (3.4)  (2.6)      (31) % (19.4) (17.0) (14) %
eliminations)
Total Company $336.4 $332.9 1 %   $92.2  $77.8      19 %  $66.1  $49.9  32 %

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 fiscal 2013 as compared to the prior year, MSG Media revenues of $677.7
million increased 10%. The increase in revenues was primarily due to an
increase in affiliation fee revenue and, to a lesser extent, an increase in
advertising revenue and other net increases.AOCF of $349.5 million increased
35% and operating income of $328.6 million increased 44%, both primarily due
to the increase in revenues and a decrease in direct operating expenses.

For the fiscal 2013 fourth quarter as compared to the prior year period, MSG
Media revenues of $176.8 million grew 6%.Affiliation fee revenue increased
$7.1 million, primarily attributable to higher affiliation rates.Advertising
revenue increased $5.8 million, primarily due to higher advertising revenue at
both MSG Networks and Fuse.Other revenues decreased $3.1 million, primarily
due to the expiration of a short-term programming licensing agreement in April
2013. Fourth quarter AOCF of $81.8 million increased 24% and operating income
of $77.6 million increased 30%, primarily due to the increase in revenues and
a decrease in direct operating expenses. The decrease in direct operating
expenses was primarily due to lower programming expenses at Fuse, partially
offset by higher programming expenses at MSG Networks and other net increases.

MSG Entertainment

For fiscal 2013 as compared to the prior year, MSG Entertainment revenues of
$252.2 million decreased 4%.The decrease in revenues was primarily due to
lower overall event-related revenues at the Company's venues and lower
revenues for the Radio City Christmas Spectacular franchise, primarily as a
result of Superstorm Sandy's impact on attendance in New York, partially
offset by higher suite rental fee revenue, venue-related sponsorship and
signage revenues and other net increases. AOCF decreased by $15.5 million to
a loss of $10.2 million and operating loss of $24.7 million increased by $15.4
million, both primarily due to the decrease in revenues and, to a lesser
extent, higher selling, general and administrative expenses. Fiscal 2013
results were also impacted by operating expenses related to the Forum, which
was not open for events during the year, as well as by 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.

For the fiscal 2013 fourth quarter as compared to the prior year period, MSG
Entertainment revenues of $34.8 million decreased 31%.The decrease was
primarily due to lower event-related revenues at the Company's venues, mainly
the result of fewer theater events, inclusive of fewer promoted events,
partially offset by higher suite rental fee revenue and venue-related
sponsorship and signage revenues.Fourth quarter AOCF loss of $14.6 million
increased $9.3 million and operating loss of $17.8 million increased $9.2
million, primarily due to the decrease in revenues, partially offset by lower
direct operating expenses.The decrease in direct operating expenses was
primarily due to fewer events in the Company's venues, partially offset by
higher venue operating costs, primarily for Radio City Music Hall, the Forum,
The Garden and The Theater at Madison Square Garden, and other net expense
increases. 

MSG Sports

For fiscal 2013 as compared to the prior year, MSG Sports revenues of $470.3
million increased 1%. The increase in revenues was due to higher suite rental
fee revenue and professional sports team sponsorship and signage revenues,
mostly offset by lower professional sports team ticket-related revenue,
event-related revenues from other live sporting events, professional sports
team food, beverage and merchandise sales, and other net decreases. AOCF of
$27.0 million decreased 6%, due to an increase in selling, general and
administrative and direct operating expenses, mostly offset by the increase in
revenues. Operating income of $13.5 million increased 3%, due to the increase
in revenues and lower depreciation and amortization expense, mostly offset by
higher selling, general and administrative and direct operating expenses.

For the fiscal 2013 fourth quarter as compared to the prior year period, MSG
Sports revenues of $140.7 million increased 7%. Segment revenues were
positively impacted by the New York Rangers' compressed regular season
schedule in the quarter as a result of the NHL work stoppage.In addition, the
comparability of segment revenues to the prior year period was negatively
impacted by the New York Knicks' compressed regular season schedule in the
prior year quarter as a result of the NBA work stoppage. On an overall basis,
the increase in revenues was primarily due to higher suite rental fee revenue,
sponsorship and signage revenues, and professional sports team food, beverage
and merchandise sales, partially offset by lower league distributions.In
addition, event-related revenues from other live sporting events increased,
while professional sports team playoff-related revenues slightly
decreased.Fourth quarter AOCF of $28.4 million increased 43% and operating
income of $25.8 million increased 61%, both primarily due to higher revenues,
slightly offset by higher direct operating 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 Hartford Wolf Pack (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 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 19643473
Conference call replay number is 855-859-2056 / Conference ID Number 19643473
until August 28, 2013

THE MADISON SQUARE GARDEN COMPANY

CONSOLIDATED OPERATIONS DATA AND RECONCILIATION
(In thousands, except per share data)
(Unaudited)
                                                               
                                  Three Months Ended  Twelve Months Ended
                                  June 30,            June 30,
                                  2013      2012      2013        2012
                                                               
Revenues                          $336,360 $ 332,919 $1,340,818 $ 1,284,016
                                                               
Adjusted operating cash flow       $ 92,225 $77,782  $ 355,561  $283,235
Share-based compensation expense   (1,442)   (3,388)   (15,340)    (18,205)
Operating income before            90,783    74,394    340,221     265,030
depreciation and amortization
Depreciation and amortization      (24,693)  (24,509)  (89,132)    (87,503)
(incl. impairments)
Operating income                   66,090    49,885    251,089     177,527
Other income (expense):                                         
Interest expense, net              (2,115)   (1,151)   (5,722)     (4,752)
Miscellaneous                      22        482       3,497       7,072
Income from operations before      63,997    49,216    248,864     179,847
income taxes
Income tax expense                 (27,580)  (20,653)  (106,482)   (73,302)
Net income                         $ 36,417 $28,563  $142,382   $106,545
Basic earnings per common share    $0.47    $0.38    $1.87      $1.42
Diluted earnings per common share  $0.47    $0.37    $1.83      $1.38
                                                               
Basic weighted-average number of   77,009    75,606    76,268      74,938
common shares outstanding
Diluted weighted-average number of 78,067    77,664    77,940      77,459
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    
                                             June 30,              
                                                                 %
                                             2013       2012       Change
                                                                 
MSG Media                                    $176,759   $166,950   6%
MSG Entertainment                            34,805     50,808     (31)%
MSG Sports                                    140,743    131,159    7%
Other (including Inter-segment eliminations) (15,947)  (15,998)  (0)%
Total Madison Square Garden Company          $336,360   $332,919   1%
                                                                 
                                                                 
                                             Twelve Months Ended   
                                             June 30,              
                                                                 %
                                             2013       2012       Change
                                                                 
MSG Media                                    $677,733   $614,168   10%
MSG Entertainment                            252,195    263,976    (4)%
MSG Sports                                    470,290    464,726    1%
Other (including Inter-segment eliminations) (59,400)  (58,854)  (1)%
Total Madison Square Garden Company          $1,340,818 $1,284,016 4%


ADJUSTED OPERATING CASH FLOW AND OPERATING INCOME (LOSS)
                                                                  
                      Adjusted Operating        Operating Income    
                      Cash Flow                  (Loss)               
                      Three Months Ended        Three Months Ended  
                      June 30,             %     June 30,             %
                      2013        2012     Change 2013       2012      Change
                                                                  
MSG Media             $81,794     $65,881  24%    $77,587    $59,509   30%
MSG Entertainment     (14,604)   (5,322) (174)% (17,828)  (8,658)  (106)%
MSG Sports             28,388     19,784  43%    25,753    16,018   61%
All other             (3,353)    (2,561) (31)%  (19,422)  (16,984) (14)%
Total Madison Square   $92,225     $77,782  19%    $66,090    $49,885   32%
Garden Company
                                                                  
                                                                  
                      Adjusted Operating        Operating Income    
                      Cash Flow                  (Loss)               
                      Twelve Months Ended       Twelve Months Ended 
                      June 30,             %     June 30,             %
                      2013        2012     Change 2013       2012      Change
                                                                  
MSG Media             $349,506    $258,599 35%    $328,569   $228,346  44%
MSG Entertainment     (10,205)   5,295   n/a    (24,732)  (9,302)  (166)%
MSG Sports             27,014     28,717  (6)%   13,474    13,069   3%
All other             (10,754)   (9,376) (15)%  (66,222)  (54,586) (21)%
Total Madison Square   $355,561    $283,235 26%    $251,089   $177,527  41%
Garden Company

                                      

THE MADISON SQUARE GARDEN COMPANY

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

                                                      June 30,    June 30,
                                                      2013       2012
ASSETS                                                 
Current Assets:                                                   
Cash and cash equivalents                              $277,913   $206,500
Restricted cash                                        8,413       5,789
Accounts receivable, net                               145,728     126,565
Net related party receivables                          18,565      27,277
Prepaid expenses                                       41,215      29,700
Other current assets                                   20,339      19,980
Total current assets                                   512,173     415,811
                                                                 
Property and equipment, net                            1,135,180   969,528
Amortizable intangible assets, net                     90,705      101,814
Indefinite-lived intangible assets                     158,636     158,636
Goodwill                                               742,492     742,492
Other assets                                           93,028      136,403
                                                      $ 2,732,214 $ 2,524,684

                                                                 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:                                              
Accounts payable                                       $16,006   $33,048
Net related party payables                             283       362
Accrued liabilities:                                              
Employee related costs                                 70,663     82,886
Other accrued liabilities                              221,405     188,410
Deferred revenue                                       237,537     211,639
Total current liabilities                             545,894     516,345
                                                                 
Defined benefit and other postretirement obligations   59,726      58,817
Other employee related costs                           45,370      36,689
Other liabilities                                      58,536      60,438
Deferred tax liability                                 543,753     532,382
Total liabilities                                      1,253,279   1,204,671
Commitments and contingencies                                     
Stockholders' Equity:                                             
Class A Common stock, par value $0.01, 360,000 shares  639         628
authorized; 63,268 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                             1,070,764   1,070,046
Treasury stock, at cost, 596 and 927 shares            (14,179)    (22,047)
Retained earnings                                      437,794     295,412
Accumulated other comprehensive loss                   (16,219)    (24,162)
Total stockholders' equity                             1,478,935   1,320,013
                                                      $ 2,732,214 $ 2,524,684

THE MADISON SQUARE GARDEN COMPANY

SELECTED CASH FLOW INFORMATION
(Dollars in thousands)
(Unaudited)
                                                    
                                                    Twelve Months Ended
                                                    June 30,
                                                    2013      2012
Net cash provided by operating activities            $263,055 $333,373
Net cash used in investing activities                (185,361)  (429,081)
Net cash used in financing activities                (6,281)    (2,668)
Net increase (decrease) in cash and cash equivalents 71,413     (98,376)
Cash and cash equivalents at beginning of period     206,500    304,876
Cash and cash equivalents at end of period           $277,913  $206,500

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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