Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  The Madison Square Garden Company    MSG

THE MADISON SQUARE GARDEN COMPANY

(MSG)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

MADISON SQUARE GARDEN : Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q)

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/08/2019 | 04:22pm EST

This Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In this MD&A, there are statements concerning the future operating and future financial performance of The Madison Square Garden Company and its direct and indirect subsidiaries (collectively, "we," "us," "our," "Madison Square Garden," "MSG," or the "Company"), including, possible impacts from the timing and costs of new venue construction, increased investment in personnel, content and technology for the MSG Spheres, the potential spin-off of the Company's entertainment businesses (the "Entertainment Distribution"), and the winding down of Obscura's third-party production business. See Note 1 to the consolidated financial statements included in "Part I - Item 1. Financial Statements" of this Quarterly Report on Form 10-Q for further discussion of the Entertainment Distribution. Words such as "expects," "anticipates," "believes," "estimates," "may," "will," "should," "could," "potential," "continue," "intends," "plans," and similar words and terms used in the discussion of future operating and future financial performance identify forward-looking statements. Investors are cautioned that such forward-looking statements are not guarantees of future performance, results or events and involve risks and uncertainties and that actual results or developments may differ materially from the forward-looking statements as a result of various factors. Factors that may cause such differences to occur include, but are not limited to: • our ability to successfully design, construct, finance and operate new

       venues in Las Vegas, London and other markets, and the investments, costs
       and timing associated with those efforts, including the impact of any
       unexpected construction delays and/or cost overruns;


•      the level of our revenues, which depends in part on the popularity and
       competitiveness of our sports teams and the level of popularity of the
       Christmas Spectacular and other entertainment events which are presented
       in our venues;


•      costs associated with player injuries, waivers or contract terminations of
       players and other team personnel;


•      changes in professional sports teams' compensation, including the impact
       of signing free agents and trades, subject to league salary caps and the
       impact of luxury tax;


• the level of our capital expenditures and other investments;


•      general economic conditions, especially in the New York City, Los Angeles,
       Las Vegas and London metropolitan areas where we have business activities;

• the demand for sponsorship arrangements and for advertising;


•      competition, for example, from other teams, other venues and other sports
       and entertainment options, including the construction of new competing
       venues;


•      changes in laws, NBA or NHL rules, regulations, guidelines, bulletins,
       directives, policies and agreements including the leagues' respective
       collective bargaining agreements (each a "CBA") with their players'
       associations, salary caps, revenue sharing, NBA luxury tax thresholds and
       media rights or other regulations under which we operate;

• any NBA or NHL work stoppage;


•      seasonal fluctuations and other variations in our operating results and
       cash flow from period to period;

• the level of our expenses, including our corporate expenses;


•      the successful development of new live productions, enhancements or
       changes to existing productions and the investments associated with such
       development, enhancements, or changes, as well as investment in personnel,
       content and technology for the MSG Spheres;


•      business, reputational and litigation risk if there is a security incident
       resulting in loss, disclosure or misappropriation of stored personal
       information or other breaches of our information security;


•      activities or other developments that discourage or may discourage
       congregation at prominent places of public assembly, including our venues;


•      the continued popularity and success of the Tao Group Hospitality
       restaurants and nightlife and hospitality venues, as well as its existing
       brands, and the ability to successfully open and operate new restaurants
       and nightlife and hospitality venues;



                                       36

--------------------------------------------------------------------------------

Table of Contents

• the ability of BCE to attract attendees and performers to its festival;

• the evolution of the esports industry and its potential impact on our

esports businesses;

• the acquisition or disposition of assets or businesses and/or the impact

of, and our ability to successfully pursue, acquisitions or other

strategic transactions;

• our ability to successfully integrate acquisitions, new venues or new

businesses into our operations;

• the operating and financial performance of our strategic acquisitions and

investments, including those we do not control;

• the costs associated with, and the outcome of, litigation and other

proceedings to the extent uninsured, including litigation or other claims

against companies we invest in or acquire;

• the impact of governmental regulations or laws, including changes in how

       those regulations and laws are interpreted and the continued benefit of
       certain tax exemptions and the ability to maintain necessary permits or
       licenses;

• the impact of any government plans to redesign New York City's

Pennsylvania Station;

• a default by our subsidiaries under their respective credit facilities;

• financial community and rating agency perceptions of our business,

operations, financial condition and the industry in which we operate;

• the ability of our investees and others to repay loans and advances we

have extended to them;

• our ownership of professional sports franchises in the NBA and NHL and

certain related transfer restrictions on our common stock;

• the tax-free treatment of the 2015 Distribution;


•      whether or not we pursue and complete the Entertainment Distribution and,
       if so, its impact on our business, financial condition and results of
       operations; and


•      the factors described under "Risk Factors" in our Annual Report on Form
       10-K for the year ended June 30, 2019.


We disclaim any obligation to update or revise the forward-looking statements
contained herein, except as otherwise required by applicable federal securities
laws.
All dollar amounts included in the following MD&A are presented in thousands,
except as otherwise noted.
Introduction
This MD&A is provided as a supplement to, and should be read in conjunction
with, the Company's unaudited financial statements and accompanying notes
thereto included in this Quarterly Report on Form 10-Q, as well as the Company's
Annual Report on Form 10-K for the year ended June 30, 2019, to help provide an
understanding of our financial condition, changes in financial condition and
results of operations. Unless the context otherwise requires, all references to
"we," "us," "our," "Madison Square Garden" or the "Company" refer collectively
to The Madison Square Garden Company, a holding company, and its direct and
indirect subsidiaries through which substantially all of our operations are
actually conducted. The Company is comprised of two reportable segments: MSG
Entertainment and MSG Sports.
MSG Entertainment includes live entertainment events including concerts and
other live events, such as family shows, performing arts and special events,
which are presented or hosted in the Company's diverse collection of venues
along with live offerings through Tao Group Hospitality and BCE. Tao Group
Hospitality is a hospitality group with globally recognized entertainment,
dining and nightlife brands including Tao, Marquee, Lavo, Avenue, Beauty & Essex
and Cathédrale. BCE owns and operates New England's premier Boston Calling Music
Festival. MSG Entertainment also includes the Company's original production -
the Christmas Spectacular.

                                       37

--------------------------------------------------------------------------------

Table of Contents


MSG Sports includes the Company's professional sports franchises: the Knicks of
the NBA, the Rangers of the NHL, the Hartford Wolf Pack of the AHL, and the
Westchester Knicks of the NBAGL. For the three months ended September 30, 2018,
MSG Sports also included the Liberty of the WNBA, which was sold in January
2019. Our professional sports franchises are collectively referred to herein as
our "sports teams." MSG Sports also includes CLG, a premier North American
esports organization, and Knicks Gaming, the Company's franchise that competes
in the NBA 2K League. CLG and Knicks Gaming are collectively referred to herein
as our "esports teams," and, together with our sports teams, our "teams." In
addition, our sports business also promotes, produces and/or presents a broad
array of other live sporting events, including professional boxing, college
basketball, college hockey, professional bull riding, mixed martial arts,
esports, and college wrestling.
The Company conducts a significant portion of its operations at venues that it
either owns or operates under long-term leases. The Company owns The Garden and
Hulu Theater at Madison Square Garden in New York City, the Forum in Inglewood,
CA and The Chicago Theatre in Chicago. In addition, the Company leases Radio
City Music Hall and the Beacon Theatre in New York City. Additionally, Tao Group
Hospitality operates various restaurants, nightlife and hospitality venues under
long-term leases and management contracts in New York, Las Vegas, Los Angeles,
Chicago, Australia and Singapore.
Factors Affecting Results of Operations
For the three months ended September 30, 2018, MSG Sports also included the
Liberty of the WNBA, which was sold in January 2019.
This MD&A is organized as follows:
Results of Operations. This section provides an analysis of our unaudited
results of operations for the three months ended September 30, 2019 compared to
the three months ended September 30, 2018 on a consolidated and segment basis.
Liquidity and Capital Resources. This section provides a discussion of our
financial condition and liquidity, an analysis of our cash flows for the three
months ended September 30, 2019 compared to the three months ended September 30,
2018, as well as certain contractual obligations and off balance sheet
arrangements.
Seasonality of Our Business. This section discusses the seasonal performance of
our segments.
Recently Issued Accounting Pronouncements and Critical Accounting Policies. This
section discusses accounting pronouncements that have been adopted by the
Company, recently issued accounting pronouncements not yet adopted by the
Company, as well as the results of the Company's annual impairment testing of
goodwill and identifiable indefinite-lived intangible assets performed during
the first quarter of fiscal year 2020. This section should be read together with
our critical accounting policies, which are discussed in our Annual Report on
Form 10-K for the year ended June 30, 2019 under "Item 7. Management's
Discussion and Analysis of Financial Condition and Results of Operations -
Recently Issued Accounting Pronouncements and Critical Accounting Policies -
Critical Accounting Policies" and in the notes to the consolidated financial
statements of the Company included therein.

                                       38

--------------------------------------------------------------------------------

Table of Contents

© Edgar Online, source Glimpses

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on THE MADISON SQUARE GARDEN
12/06MSG NETWORKS INC. : Submission of Matters to a Vote of Security Holders (form 8-..
AQ
12/04MADISON SQUARE GARDEN CO : Amendments to Articles of Inc. or Bylaws; Change in F..
AQ
12/04MADISON SQUARE GARDEN : Annual Holiday Rock & Roll Bash Raises More Than $1 Mill..
AQ
12/03The Madison Square Garden Company Files Initial Form 10 Registration Statemen..
GL
11/20Ruiz defeat made me a smarter fighter, says Joshua
RE
11/13MADISON SQUARE GARDEN : Two of Rock's Most Legendary Bands, Foo Fighters and Red..
AQ
11/08MADISON SQUARE GARDEN : Management's Discussion and Analysis of Financial Condit..
AQ
11/08MADISON SQUARE GARDEN CO : Results of Operations and Financial Condition, Financ..
AQ
11/08MADISON SQUARE GARDEN : Reports Fiscal 2020 First Quarter Results
PU
11/08The Madison Square Garden Company Reports Fiscal 2020 First Quarter Results
GL
More news