Record Revenues of Over $1 Billion for Fiscal 2024, up 16% Year-over-Year Record Operating Income of $146.0 Million and Adjusted Operating Income of $172.2 Million for Fiscal 2024(1) NEW YORK, Aug. 13, 2024 /PRNewswire/ -- Madison Square Garden Sports Corp. (NYSE:MSGS) (the "Company") today reported financial results for the fiscal fourth quarter and full-year ended June 30, 2024. The fiscal 2024 fourth quarter was highlighted by the New York Knicks (the "Knicks") and New York Rangers (the "Rangers") both qualifying for the playoffs, culminating with the Knicks advancing to the Eastern Conference Semifinals and the Rangers advancing to the Eastern Conference Finals. Fiscal fourth quarter results reflected strong demand from fans and partners, as well as the positive impact of a combined four more Knicks and Rangers regular season home games at the Madison Square Garden Arena ("The Garden") and a combined seven more playoff home games, both as compared to the prior year period. For fiscal 2024, the Company reported revenues of $1.03 billion, an increase of $139.7 million, or 16%, as compared to the prior year. In addition, the Company had operating income of $146.0 million, an increase of $60.9 million, or 71%, and adjusted operating income of $172.2 million, an increase of $57.2 million, or 50%, both as compared to the prior year.(1) For the fiscal 2024 fourth quarter, the Company reported revenues of $227.3 million, an increase of $100.3 million, or 79%, as compared to the prior year quarter. In addition, the Company had operating income of $52.3 million and adjusted operating income of $56.5 million, as compared to an operating loss of $12.2 million and an adjusted operating loss of $7.8 million in the prior year quarter.(1) Madison Square Garden Sports Corp. Executive Chairman and CEO James L. Dolan said, "Our Company delivered record financial results in fiscal 2024, driven by robust demand for the Knicks and the Rangers, as both teams had successful regular seasons which led to playoff runs. Looking ahead, we remain confident in the strength of our professional sports franchises and believe we are well positioned to generate long-term shareholder value." Results from OperationsResults for the quarter and year ended June 30, 2024 and 2023 are as follows: Three Months Ended Twelve Months Ended June 30, Change June 30, Change $ millions 2024 2023 $ % 2024 2023 $ % Revenues $       227.3 $      126.9 $     100.3 79 % $   1,027.1 $      887.4 $     139.7 16 % Operating income (loss) $         52.3 $       (12.2) $       64.5 NM $       146.0 $        85.2 $       60.9 71 % Adjusted operating income (loss)(1) $         56.5 $         (7.8) $       64.3 NM $       172.2 $      115.0 $       57.2 50 % Note: Amounts may not foot due to rounding. NM - Absolute percentages greater than 200% and comparisons from positive to negative values or to zero values are considered not meaningful. (1)      See page 3 of this earnings release for the definition of adjusted operating income (loss) included in the discussion of financial measures not calculated in accordance with generally accepted accounting principles ("GAAP"). During the fourth quarter of fiscal 2023, the Company amended this definition so that the non-cash portion of operating lease costs (which was $2,417 and $24,850 for the three and twelve months ended June 30, 2024, respectively, and $1,439 and $26,096 for the three and twelve months ended June 30, 2023, respectively) related to the Company's arena license agreements with Madison Square Garden Entertainment Corp. ("MSG Entertainment") is no longer excluded in all periods presented. Summary of Reported Results from Operations for the Fiscal 2024 Fourth QuarterFor the fiscal 2024 fourth quarter, the Company generated revenues of $227.3 million, an increase of $100.3 million, or 79%, as compared to the prior year period. This increase was primarily due to higher playoff-related revenues, regular season ticket-related revenues, suite revenues, sponsorship and signage revenues, and revenues from league distributions. During the fiscal 2024 fourth quarter, the Rangers and the Knicks played a combined four more regular season games and seven more playoff games at The Garden, both as compared to the prior year quarter. Playoff-related revenues increased $71.8 million, primarily due to the Rangers and the Knicks playing additional playoff games at The Garden in the fiscal 2024 fourth quarter, as well as higher average per-game revenues in the current year period. Regular season ticket-related revenues increased $14.4 million as compared to the prior year period, primarily due to the Rangers and the Knicks playing more regular season home games at The Garden during the fiscal 2024 fourth quarter and, to a lesser extent, higher average per-game revenue. Suite revenues increased $5.9 million as compared to the prior year period, primarily due to the Rangers and the Knicks playing more regular season home games at The Garden during the fiscal 2024 fourth quarter and, to a lesser extent, higher net sales of suite products, including revenue related to new premium hospitality offerings which were made available at the start of the 2023-24 seasons.  Sponsorship and signage revenues increased $3.5 million as compared to the prior year period, primarily due to the Rangers and the Knicks playing more regular season games at The Garden during the current year period. Revenues from league distributions increased $3.2 million as compared to the prior year period, primarily due to a non-recurring territorial fee from the NHL in the current year period, partially offset by the timing of recognition of certain other league distributions in the prior year period. Direct operating expenses of $107.7 million increased $27.4 million, or 34%, as compared to the prior year period. Playoff-related expenses increased $27.6 million, as compared to the prior year period, primarily due to additional home playoff games. Other team operating expenses increased $6.1 million and arena operating lease costs increased $2.8 million, both as compared to the prior year period, primarily due to the Rangers and the Knicks playing more regular season games at The Garden during the fiscal 2024 fourth quarter. These increases were partially offset by a $6.0 million decrease in net provisions for certain team personnel transactions as compared to the prior year period. In addition, net provisions for league revenue sharing expense (net of escrow and excluding the playoffs) and NBA luxury tax decreased $4.2 million as compared to the prior year period. Selling, general and administrative expenses of $66.4 million increased $8.5 million, or 15%, as compared to the prior year period. This increase primarily reflects higher playoff-related expenses of $2.7 million, higher employee compensation and related benefits of $2.7 million and higher operating lease costs of $2.3 million. Operating income of $52.3 million increased $64.5 million and adjusted operating income of $56.5 million increased $64.3 million, both as compared to the prior year period, primarily due to the increase in revenues, partially offset by higher direct operating expenses and, to a lesser extent, higher selling, general and administrative expenses. About Madison Square Garden Sports Corp.Madison Square Garden Sports Corp. (MSG Sports) is a leading professional sports company, with a collection of assets that includes the New York Knicks (NBA) and the New York Rangers (NHL), as well as two development league teams – the Westchester Knicks (NBAGL) and the Hartford Wolf Pack (AHL). MSG Sports also operates a professional sports team performance center – the MSG Training Center in Greenburgh, NY. More information is available at www.msgsports.com. Non-GAAP Financial MeasuresDuring the fourth quarter of fiscal 2023, the Company amended its definition of adjusted operating income (loss) so that the impact of the non-cash portion of operating lease costs related to the Company's arena license agreements with MSG Entertainment is no longer excluded in the calculation of adjusted operating income (loss) in all periods presented. We define adjusted operating income (loss), which is a non-GAAP financial measure, as operating income (loss) excluding (i) depreciation, amortization and impairments of property and equipment, goodwill and other intangible assets, (ii) share-based compensation expense or benefit, (iii) restructuring charges or credits, (iv) gains or losses on sales or dispositions of businesses, (v) the impact of purchase accounting adjustments related to business acquisitions, and (vi) gains and losses related to the remeasurement of liabilities under the Company's Executive Deferred Compensation Plan. Because it is based upon operating income (loss), adjusted operating income (loss) 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 our business without regard to the settlement of an obligation that is not expected to be made in cash. In addition, we believe that the exclusion of gains and losses related to the remeasurement of liabilities under the Company's Executive Deferred Compensation Plan provides investors with a clearer picture of the Company's operating performance given that, in accordance with U.S. generally accepted accounting principles ("GAAP"), gains and losses related to the remeasurement of liabilities under the Company's Executive Deferred Compensation Plan are recognized in Operating (income) loss whereas gains and losses related to the remeasurement of the assets under the Company's Executive Deferred Compensation Plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in Miscellaneous income (expense), net, which is not reflected in Operating income (loss). We believe adjusted operating income (loss) is an appropriate ...