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First quarter revenue of
First quarter AOCF of
First quarter operating income of
Earnings per share of
First quarter 2011 revenues of
First quarter net income of
President and CEO
Results from Operations
Segment results for the quarters ended
| Revenue | AOCF | Operating Income (Loss) | |||||||
| $ millions | Q1 2011 | Q1 2010 | % Change | Q1 2011 | Q1 2010 | % Change | Q1 2011 | Q1 2010 | % Change |
| MSG Media | $147.6 | $139.5 | 5.8 % | $62.6 | $61.8 | 1.3 % | $56.2 | $55.8 | 0.7 % |
| MSG Entertainment | 42.8 | 41.5 | 3.2 % | (6.8) | (12.7) | 46.7 % | (10.0) | (16.3) | 38.6 % |
| MSG Sports | 157.7 | 142.7 | 10.6 % | 3.5 | 3.4 | 3.9 % | 0.1 | (0.1) | -- |
| Other (including eliminations) | (17.7) | (17.1) | (3.2) % | (4.5) | (4.0) | (12.5) % | (15.9) | (9.3) | (71.0)% |
| Total Company | $330.4 | $306.5 | 7.8 % | $54.9 | $48.5 | 13.1 % | $30.4 | $30.1 | 0.9 % |
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 2011 first quarter, MSG Media revenues of
For the 2011 first quarter,
For the 2011 first quarter,
About
Non-GAAP Financial Measures
We define adjusted operating cash flow ("AOCF"), which is a non-GAAP financial measure, as operating income (loss) before depreciation and amortization, excluding share-based compensation expense or benefit and 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 the distortive effects of fluctuating stock prices in the case of stock appreciation rights and, in the case of restricted shares, restricted stock units and stock options, 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 page 4 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
Conference Call Information:
The conference call will be Webcast live today at
Conference call dial-in number is 877-347-9170 / Conference ID Number 35057621
Conference call replay number is 800-642-1687 / Conference ID Number 35057621 until
| THE MADISON SQUARE GARDEN COMPANY | ||
| CONSOLIDATED OPERATIONS DATA AND RECONCILIATION | ||
| (In thousands, except per share data) | ||
| (Unaudited) | ||
| Three Months Ended | ||
| March 31, | ||
| 2011 | 2010 | |
| Revenues | $330,413 | $306,501 |
| Adjusted operating cash flow | $54,868 | $48,503 |
| Share-based compensation expense | (3,299) | (3,311) |
| Operating income before depreciation and amortization | 51,569 | 45,192 |
| Depreciation and amortization | (21,170) | (15,061) |
| Operating income | 30,399 | 30,131 |
| Other income (expense): | ||
| Interest expense, net | (1,059) | (118) |
| Miscellaneous | 5,561 | 2,000 |
| Income from operations before income taxes | 34,901 | 32,013 |
| Income tax expense | (15,814) | (14,632) |
| Net income | $19,087 | $17,381 |
| Basic earnings per common share | $0.26 | $0.24 |
| Diluted earnings per common share | $0.25 | $0.23 |
| Basic weighted-average number of common shares outstanding | 74,193 | 73,450 |
| Diluted weighted-average number of common shares outstanding | 77,200 | 76,200 |
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:
| THE MADISON SQUARE GARDEN COMPANY | |||
| CONSOLIDATED OPERATIONS DATA | |||
| (Dollars in thousands) | |||
| (Unaudited) | |||
| REVENUES | |||
|
Three Months Ended March 31, |
|||
|
2011 |
2010 |
% Change |
|
| MSG Media | $ 147,564 | $ 139,505 | 5.8 % |
| MSG Entertainment | 42,805 | 41,473 | 3.2 % |
| MSG Sports | 157,739 | 142,663 | 10.6 % |
| Inter-segment eliminations | (17,695) | (17,140) | (3.2) % |
| Total Madison Square Garden Company | $ 330,413 | $ 306,501 | 7.8 % |
| ADJUSTED OPERATING CASH FLOW AND OPERATING INCOME (LOSS) | ||||||
|
Adjusted Operating Cash Flow |
Operating Income (Loss) |
|||||
|
Three Months Ended March 31, |
% |
Three Months Ended March 31, |
% |
|||
| 2011 | 2010 | Change | 2011 | 2010 | Change | |
| MSG Media | $ 62,577 | $ 61,779 | 1.3 % | $ 56,164 | $ 55,777 | 0.7 % |
| MSG Entertainment | (6,782) | (12,713) | 46.7 % | (9,998) | (16,285) | 38.6 % |
| MSG Sports | 3,540 | 3,407 | 3.9 % | 129 | (66) | -- |
| All other | (4,467) | (3,970) | (12.5) % | (15,896) | (9,295) | (71.0) % |
| Total Madison Square Garden Company | $ 54,868 | $ 48,503 | 13.1 % | $ 30,399 | $ 30,131 | 0.9 % |
| THE MADISON SQUARE GARDEN COMPANY | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (In thousands, except per share data) | ||
| (Unaudited) | ||
|
March 31, 2011 |
December 31, 2010 |
|
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $ 310,817 | $ 354,498 |
| Restricted cash | 7,464 | 4,215 |
| Accounts receivable, net of allowance for doubtful accounts of $2,375 and $2,410 | 133,234 | 127,897 |
| Net receivable due from Cablevision | 25,210 | 22,907 |
| Prepaid expenses | 33,741 | 40,411 |
| Other current assets | 24,551 | 25,638 |
| Total current assets | 535,017 | 575,566 |
| Property and equipment, net of accumulated depreciation and amortization of $425,426 and $408,561 | 515,438 | 472,821 |
| Other assets | 125,936 | 118,429 |
| Amortizable intangible assets, net of accumulated amortization of $117,789 and $113,484 | 126,098 | 130,403 |
| Indefinite-lived intangible assets | 158,096 | 158,096 |
| Goodwill | 742,492 | 742,492 |
| $ 2,203,077 | $ 2,197,807 | |
|
LIABILITIES AND EQUITY |
||
| Current Liabilities: | ||
| Accounts payable | $ 14,887 | $ 8,118 |
| Accrued liabilities: | ||
| Employee related costs | 56,798 | 71,859 |
| Other accrued liabilities | 142,873 | 117,509 |
| Deferred revenue | 126,650 | 148,819 |
| Total current liabilities | 341,208 | 346,305 |
| Defined benefit and other postretirement obligations | 54,125 | 55,700 |
| Other employee related costs | 36,403 | 40,079 |
| Other liabilities | 62,659 | 57,272 |
| Deferred tax liability | 519,332 | 527,527 |
| Total liabilities | 1,013,727 | 1,026,883 |
| Commitments and contingencies | ||
| Stockholders' Equity: | ||
| Class A Common stock, par value $0.01, 360,000 shares authorized; 62,103 and 62,265 shares outstanding | 625 | 624 |
| Class B Common stock, par value $0.01, 90,000 shares authorized; 13,589 shares outstanding | 136 | 136 |
| Preferred stock, par value $0.01, 45,000 shares authorized; none outstanding | -- | -- |
| Additional paid-in capital | 1,038,730 | 1,032,121 |
| Treasury stock, at cost, 479 and 234 shares | (10,279) | (3,723) |
| Retained earnings | 180,340 | 161,253 |
| Accumulated other comprehensive loss | (20,202) | (19,487) |
| Total stockholders' equity | 1,189,350 | 1,170,924 |
| $ 2,203,077 | $ 2,197,807 | |
| THE MADISON SQUARE GARDEN COMPANY | ||
| SELECTED CASH FLOW INFORMATION | ||
| (Dollars in thousands) | ||
| (Unaudited) | ||
|
Three Months Ended March 31, |
||
| 2011 | 2010 | |
| Net cash provided by (used in) operating activities | $ 3,100 | $ (1,074) |
| Net cash used in investing activities | (43,215) | (21,346) |
| Net cash provided by (used in) financing activities | (3,566) | 180,251 |
| Net increase (decrease) in cash and cash equivalents | (43,681) | 157,831 |
| Cash and cash equivalents at beginning of period | 354,498 | 109,716 |
| Cash and cash equivalents at end of period | $ 310,817 | $ 267,547 |
CONTACT:Barry Watkins Executive Vice President CommunicationsMadison Square Garden (212) 465-5920Justin Edelman Vice President CommunicationsMadison Square Garden (212) 465-6442Ari Danes , CFA Vice President Investor RelationsMadison Square Garden (212) 465-6072
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