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The Madison Square Garden Company Reports Results for Fiscal 2012 Second Quarter
New York, NY (February 8, 2012) - The Madison Square Garden Company (NASDAQ: MSG) today reported financial results for the fiscal second quarter ended December 31, 2011.
Fiscal 2012 second quarter results include the impact of the NBA work stoppage, which delayed the start of the regular season by approximately two months to December 25, 2011 and which has resulted in a shortened 66-game regular season. As a result of the delayed start to the NBA season, the New York Knicks only played a combined 6 preseason and regular season games in the fiscal 2012 second quarter versus a combined 40 preseason and regular season games in the prior year period.
Fiscal 2012 second quarter revenues of $373.0 million decreased 13.8%, as compared to the prior year period, primarily reflecting a decrease in revenues in the MSG Sports segment, due to the NBA work stoppage, and, to a lesser extent, a decrease in revenues in the MSG Entertainment segment.
Fiscal 2012 second quarter adjusted operating cash flow ("AOCF")(1) of $79.1 million increased 13.8%, as compared to the prior year period, primarily reflecting AOCF increases in the MSG Entertainment and MSG Media segments, offset by an AOCF decrease in the MSG Sports segment, due to the NBA work stoppage. Operating income of $48.0 million decreased 8.6% and net income of $25.6 million ($0.33 per diluted share) decreased 21.7%, both as compared to the prior year period.
President and CEO Hank Ratner said: "We are pleased with our second quarter financial results, as we generated double-digit AOCF growth while managing our business through the delayed start to the NBA season. Our solid overall results are a reflection of the breadth and strength of our assets and brands across all three of our business segments. In particular, our MSG Entertainment segment was a strong performer for the second quarter, driven by our recent initiatives with respect to the Radio City Christmas Spectacular franchise. Looking ahead, we remain confident in our Company's long-term growth opportunities due to our unique and valuable content, as well as our expectations for meaningful incremental revenues and AOCF from the Arena Transformation project."
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