Madison Square Garden Entertainment Corp 10-Q for FY2025 Q1

Madison Square Garden Entertainment Corp. (MSGE)

10-Q 2024-11-08 For: 2024-09-30

Added on April 11, 2026

About this 10-Q

Madison Square Garden Entertainment Corp filed this 10-Q on November 8, 2024, covering the quarter ended September 30, 2024 (FY2025 Q1).

Headline figures

Quarter ended September 30, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $138.71M; down 2.5% from $142.21M a year earlier
Net loss: $19.32M; compared with a net loss of $50.67M a year earlier
Diluted EPS: -$0.40; compared with -$1.00 a year earlier

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Delaware						92-0318813
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock	MSGE	New York Stock Exchange


Class A Common Stock par value $0.01 per share	—	41,605,791
Class B Common Stock par value $0.01 per share	—	6,866,754


			Page
PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited)

Condensed Consolidated Balance Sheets as of Sept ember 3 0 , 2024 and June 30, 202 4 (unaudited)			2

Condensed Consolidated Statements of Operations for the three months ended September 3 0 , 2024 and 2023 (unaudited)			3

Condensed Consolidated Statements of Comprehensive Loss for the three months ended September 30, 2024 and 2023 (unaudited)			4

Condensed Consolidated Statements of Cash Flows for the three months ended September 3 0 , 2024 and 2023 (unaudited)			5

Condensed Consolidated Statements of Deficit for the three months ended September 3 0 , 2024 and 2023 (unaudited)			6

Notes to the Condensed Consolidated Financial Statements (unaudited)			7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			21

Item 3. Quantitative and Qualitative Disclosures About Market Risk			30

Item 4. Controls and Procedures			30

PART II - OTHER INFORMATION

Item 1. Legal Proceedings			31

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			31

Item 6. Exhibits			31





	As of
	September 30,		June 30,
	2024		2024

ASSETS
Current Assets:
Cash, cash equivalents, and restricted cash	$	37,613	$	33,555
Accounts receivable, net	95,525		77,259
Related party receivables, current	20,768		17,469
Prepaid expenses and other current assets	106,490		90,801
Total current assets	260,396		219,084
Non-Current Assets:
Property and equipment, net	642,338		633,533
Right-of-use lease assets	391,058		388,658
Goodwill	69,041		69,041
Indefinite-lived intangible assets	63,801		63,801
Deferred tax assets, net	81,733		68,307
Other non-current assets	101,960		110,283
Total assets	$	1,610,327	$	1,552,707
LIABILITIES AND DEFICIT
Current Liabilities:
Accounts payable, accrued and other current liabilities	$	159,261	$	203,750
Related party payables, current	43,671		42,506
Long-term debt, current	20,313		16,250
Operating lease liabilities, current	27,014		27,736
Deferred revenue	270,955		215,581
Total current liabilities	521,214		505,823
Non-Current Liabilities:
Long-term debt, net of deferred financing costs	646,975		599,248
Operating lease liabilities, non-current	451,071		427,014

Other non-current liabilities	39,765		43,787
Total liabilities	1,659,025		1,575,872
Commitments and contingencies (see Note 8)
Deficit:
Class A Common Stock (a)	460		456
Class B Common Stock (b)	69		69
Additional paid-in-capital	26,909		33,481
Treasury stock at cost (4,365 shares outstanding as of September 30, 2024 and June 30, 2024)	(140,512)		(140,512)
Retained earnings	96,282		115,603
Accumulated other comprehensive loss	(31,906)		(32,262)
Total deficit	(48,698)		(23,165)


Total liabilities and deficit	$	1,610,327	$	1,552,707


			☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


			☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three Months Ended
	September 30,
	2024		2023
Revenues (a)
Revenues from entertainment offerings	$	115,081	$	116,505
Food, beverage, and merchandise revenues	18,975		23,261
Arena license fees and other leasing revenue	4,658		2,446
Total revenues	138,714		142,212
Direct operating expenses (a)

Entertainment offerings, arena license fees, and other leasing direct operating expenses	(86,466)		(90,559)
Food, beverage, and merchandise direct operating expenses	(11,243)		(11,118)
Total direct operating expenses	(97,709)		(101,677)
Selling, general, and administrative expenses (a)	(45,746)		(48,822)
Depreciation and amortization	(13,781)		(13,585)

Restructuring credits (charges)	40		(11,553)
Operating loss	(18,482)		(33,425)

Interest income	372		851
Interest expense	(14,043)		(14,287)
Other expense, net	(769)		(4,469)

Loss from operations before income taxes	(32,922)		(51,330)
Income tax benefit	13,601		659
Net loss	$	(19,321)	$	(50,671)



Loss per share attributable to MSG Entertainment’s stockholders:
Basic and diluted	$	(0.40)	$	(1.00)


Weighted-average number of shares of common stock:
Basic and diluted	48,217		50,437






	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained earnings (Accumulated deficit)		Accumulated Other Comprehensive Loss		Total Deficit
Balance as of June 30, 2024	$	525	$	33,481	$	(140,512)	$	115,603	$	(32,262)	$	(23,165)
Net loss	—		—		—		(19,321)		—		(19,321)
Other comprehensive income	—		—		—		—		356		356
Comprehensive loss	—		—		—		—		—		(18,965)
Share-based compensation	—		6,262		—		—		—		6,262
Tax withholding associated with shares issued for share-based compensation	4		(12,834)		—		—		—		(12,830)
Balance as of September 30, 2024	$	529	$	26,909	$	(140,512)	$	96,282	$	(31,906)	$	(48,698)

Balance as of June 30, 2023	$	519	$	17,727	$	(25,000)	$	(28,697)	$	(34,021)	$	(69,472)
Net loss	—		—		—		(50,671)		—		(50,671)
Other comprehensive income	—		—		—		—		197		197
Comprehensive loss	—		—		—		—		—		(50,474)
Share-based compensation	—		12,965		—		—		—		12,965
Tax withholding associated with shares issues for share-based compensation	4		(11,838)		—		—		—		(11,834)
Stock repurchases, inclusive of tax	—		(874)		(115,512)		—		—		(116,386)
Balance as of September 30, 2023	$	523	$	17,980	$	(140,512)	$	(79,368)	$	(33,824)	$	(235,201)


	As of
	September 30, 2024		June 30, 2024
Receivables from contracts with customers, net (a)	$	100,967	$	74,113
Contract assets, current (b)	$	7,255	$	7,844
Deferred revenue, including non-current portion (c)	$	270,955	$	215,581


	Restructuring Liability
June 30, 2024	$	7,140
Restructuring credits	(40)
Payments	(3,640)

September 30, 2024	$	3,460


	Interest Payments				Principal Repayments
	Three Months Ended				Three Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
National Properties Facilities	$	13,277	$	13,193	$	4,063	$	—


	Pension Plans				Postretirement Plan
	Three Months Ended				Three Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Service cost	$	18	$	17	$	5	$	6
Interest cost	1,668		1,469		30		24
Expected return on plan assets	(1,292)		(1,091)		—		—
Recognized actuarial loss	446		238		6		—
Net periodic cost	$	840	$	633	$	41	$	30


	Three Months
	September 30,
	2024		2023
Revenues	$	7,883	$	5,159
Operating expenses (credits):
Revenue sharing expenses	$	1,150	$	1,152
Reimbursement under Arena License Arrangements	(73)		(429)
Cost reimbursement from MSG Sports	(8,387)		(9,861)
Cost reimbursement from Sphere Entertainment	(22,993)		(30,336)
Other operating (credits) expenses, net	(1,117)		553
Total operating expenses (credits), net (a)	$	(31,420)	$	(38,921)


	Three Months Ended
	September 30,				Change
	2024		2023		Amount		Percentage
Revenues
Revenues from entertainment offerings	$	115,081	$	116,505	$	(1,424)	(1)	%
Food, beverage, and merchandise revenues	18,975		23,261		(4,286)		(18)	%
Arena license fees and other leasing revenue	4,658		2,446		2,212		90	%
Total revenues	138,714		142,212		(3,498)		(2)	%
Direct operating expenses
Entertainment offerings, arena license fees, and other leasing direct operating expenses	(86,466)		(90,559)		4,093		5	%
Food, beverage, and merchandise direct operating expenses	(11,243)		(11,118)		(125)		(1)	%
Total direct operating expenses	(97,709)		(101,677)		3,968		4	%
Selling, general, and administrative expenses	(45,746)		(48,822)		3,076		6	%
Depreciation and amortization	(13,781)		(13,585)		(196)		(1)	%

Restructuring credits (charges)	40		(11,553)		11,593		100	%
Operating loss	(18,482)		(33,425)		14,943		45	%
Interest income	372		851		(479)		(56)	%
Interest expense	(14,043)		(14,287)		244		2	%
Other expense, net	(769)		(4,469)		3,700		83	%
Loss from operations before income taxes	(32,922)		(51,330)		18,408		36	%
Income tax benefit	13,601		659		12,942		NM
Net loss attributable to MSG Entertainment’s stockholders	$	(19,321)	$	(50,671)	$	31,350	62	%


	As of
	September 30, 2024		June 30, 2024
Equity investments with readily determinable fair values:
Townsquare Class A common stock	$	1,287	$	1,438

Other equity investments with readily determinable fair values held in trust under the Company’s Executive Deferred Compensation Plan	5,047		4,226


Equity method investments and equity investments without readily determinable fair values(a)	708		656
Total investments	$	7,042	$	6,320


	Three Months Ended
	September 30,
	2024		2023
Unrealized loss — Townsquare	$	(101)	$	(5,449)

Unrealized gain (loss) — Executive Deferred Compensation Plan	220		(145)
Realized gain from shares sold — DraftKings	—		1,548
Realized gain from shares sold — Townsquare	5		—
Total realized and unrealized gain (loss)	$	124	$	(4,046)
Supplemental information on realized gain:
Shares of common stock sold — DraftKings	—		425
Cash proceeds from common stock sold — DraftKings	$	—	$	12,844
Shares of common stock sold — Townsquare	5		—
Cash proceeds from common stock sold — Townsquare	$	55	$	—


	As of
	September 30, 2024		June 30, 2024
Land	$	62,768	$	62,768
Buildings	1,012,370		1,011,308
Equipment, furniture, and fixtures	350,351		348,075
Leasehold improvements	133,267		133,267
Construction in progress	29,442		10,193
Total Property and equipment	$	1,588,198	$	1,565,611
Less: accumulated depreciation and amortization	(945,860)		(932,078)
Property and equipment, net	$	642,338	$	633,533


	As of
	September 30, 2024						June 30, 2024
	Principal		Unamortized Deferred Financing Costs		Net		Principal		Unamortized Deferred Financing Costs		Net
Non-current Portion
National Properties Term Loan Facility	$	601,250	$	(8,814)	$	592,436	$	609,375	$	(9,624)	$	599,751
National Properties Revolving Credit Facility	55,000		(461)		54,539		—		(503)		(503)

Long-term debt, net of deferred financing costs	$	656,250	$	(9,275)	$	646,975	$	609,375	$	(10,127)	$	599,248


EXHIBIT NO.						DESCRIPTION
















10.1						Employment Agreement, dated as of June 20, 2024, between Madison Square Garden Entertainment Corp. and James L. Dolan (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on June 21, 2024). †
10.2						Employment Agreement, dated as of July 24, 2024, between Madison Square Garden Entertainment Corp. and Layth Taki (incor porated by reference to Exhibit 10.1 to the Company ’s Current Report on Form 8-K filed on July 25, 2024). †
31.1						Certification by the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2						Certification by the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1						Certification by the Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
32.2						Certification by the Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
101						The following materials from the Madison Square Garden Entertainment Corp. Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) condensed consolidated balance sheets, (ii) condensed consolidated statements of operations, (iii) condensed consolidated statements of comprehensive loss, (iv) condensed consolidated statements of cash flows, (v) condensed consolidated statements of deficit, and (vi) notes to condensed consolidated financial statements.
104						The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 formatted in Inline XBRL and contained in Exhibit 101.


Madison Square Garden Entertainment Corp.

By:	/s/ MICHAEL J. GRAU
	Name:	Michael J. Grau
	Title:	Executive Vice President and Chief Financial Officer


/s/ JAMES L. DOLAN
James L. Dolan
Executive Chairman and Chief Executive Officer