NEW YORK (CelebrityAccess) — The Madison Square Garden Company reported their financial results for the fourth quarter and fiscal year ended June 30, 2014 with revenue for the company up, but profits falling.
Fiscal 2014 fourth quarter revenues of $371.7 million grew 10%, as compared to the prior year fourth quarter, mainly due to an increase in revenues in the MSG Entertainment and MSG Sports divisions. However, the company reported that their adjusted operating cash flow for the quarter of $55 million was down by 40% from the prior 4th quarter, driven by expenses in the sports unit.
Operating income of $20.3 million decreased 69% and net income of $11.6 million decreased 68%, both as compared to the prior year fourth quarter. Excluding the impact of the exercise of the NHL compliance buyout, AOCF would have been $84.6 million and operating income would have been $49.8 million.
For the year, the company reported a 16% increase in revenue over 2013 to $1.56 billion, with net income drooping to $115.1 million, or 19% from 2013.
Madison Square Garden's entertainment division saw an uptick of 62% in event-related revenues, led by The Theater at Madison Square Garden, the Madison Square Garden Arena, the Forum and The Chicago Theatre, as well as higher venue-related sponsorship and signage fee revenues.
President and CEO Tad Smith said: "Over the course of fiscal 2014, we strengthened our Company's foundation in many ways, which should benefit MSG for years to come. This includes the successful completion of the Transformation project and the reinvention of the Forum. The Company also reached an agreement to sell Fuse and successfully concluded the transaction in July. We remain focused on creating meaningful value for our shareholders and, looking ahead, believe that our Company has ample opportunities to drive growth." – Staff Writers