NEW YORK, May 2, 2024 /PRNewswire/ -- Madison Square Garden Sports Corp. (NYSE:MSGS) today reported financial results for the fiscal third quarter ended March 31, 2024.   During the fiscal 2024 third quarter, the New York Knicks ("Knicks") and New York Rangers ("Rangers") continued their 2023-24 regular seasons, with operating results reflecting increases in average per-game paid attendance, average ticket prices and ancillary per-capita spending, as well as strong demand for premium hospitality offerings. This translated into growth in average per-game revenues across tickets and suites, as well as food, beverage and merchandise. Local and national media rights fees were also higher, reflecting contractual rate increases. In addition, fiscal 2024 third quarter results reflect the positive impact of five additional Knicks home games played at The Garden, as compared to the prior year period. Subsequent to the end of the fiscal 2024 third quarter, both teams concluded their regular seasons and are currently competing in the NBA and NHL playoffs. In addition, the Company launched its 2024-25 Knicks and Rangers season ticket renewal initiative, which has seen strong demand to date. In the fiscal 2024 third quarter, the Company generated revenues of $430.0 million, an increase of $47.2 million, or 12%, as compared to the prior year period. In addition, the Company reported operating income of $79.7 million, a decrease of $2.0 million, or 2%, and adjusted operating income of $88.7 million, an increase of $2.5 million, or 3%, both as compared to the prior year period.(1) Madison Square Garden Sports Corp. Executive Chairman James L. Dolan said, "Our third quarter results reflect solid operating performance across our business, driven by ongoing enthusiasm for the Knicks and Rangers, as both teams concluded successful regular seasons and qualified for the playoffs. As we look ahead, we remain confident that we are well positioned to generate long-term value for our shareholders." Results from OperationsResults for the three and nine months ended March 31, 2024 and 2023 were as follows: Three Months Ended Nine Months Ended March 31, Change March 31, Change $ millions 2024 2023 $ % 2024 2023 $ % Revenues $     430.0 $     382.7 $       47.2 12 % $    799.9 $    760.5 $      39.4 5 % Operating income $       79.7 $       81.8 $       (2.0) (2) % $      93.7 $      97.4 $      (3.6) (4) % Adjusted operating      income(1) $       88.7 $       86.2 $         2.5 3 % $    115.7 $    122.8 $      (7.1) (6) % Note: Does not foot due to rounding 1. See page 3 of this earnings release for the definition of adjusted operating income (loss) included in the discussion of non-GAAP financial measures. During the fourth quarter of fiscal 2023, the Company amended this definition so that the impact of the non-cash portion of operating lease costs (which was $13.0 million and $22.4 million for the three and nine months ended March 31, 2024, respectively, and $11.9 million and $24.7 million for the three and nine months ended March 31, 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 OperationsFor the fiscal 2024 third quarter, revenues of $430.0 million increased $47.2 million, or 12%, as compared to the prior year period.  This increase was primarily due to higher ticket-related revenues, suite revenues, food, beverage and merchandise sales, local media rights fees and revenues from league distributions. The Knicks played five more regular season home games at The Garden in the current year period as compared to the prior year period. Ticket-related revenues increased $29.9 million, as compared to the prior year period, primarily due to the Knicks playing additional games at The Garden during the fiscal 2024 third quarter, and higher average Knicks and Rangers per-game revenue. Suite revenues increased $10.9 million, as compared to the prior year period, primarily due to the Knicks playing additional games at The Garden during the fiscal 2024 third quarter, and 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.  Food, beverage, and merchandise sales increased $4.3 million, as compared to the prior year period, primarily due to higher average per-game revenue, the Knicks playing additional games at The Garden during the fiscal 2024 third quarter and higher online sales of merchandise. Local media rights fees increased $1.3 million as compared to the prior year period, primarily due to contractual rate increases, partially offset by a reduction in rights fees due to a decrease in the number of games exclusively available to MSG Networks during the current year. In addition, revenues from league distributions increased $0.6 million as compared to the prior year period, primarily due to higher national media rights fees, partially offset by lower other league distributions and the absence of league distributions related to Counter Logic Gaming ("CLG") in the current year period following the Company's sale of its controlling interest in CLG in April 2023. Direct operating expenses of $273.0 million increased $34.0 million, or 14%, as compared to the prior year period, primarily reflecting higher team personnel compensation of $11.8 million and higher net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax of $8.4 million, as well as an increase in other team operating expenses of $5.1 million. In addition, operating lease costs under the arena license agreements with MSG Entertainment increased $4.4 million, expenses associated with merchandise sales were higher by $2.2 million, and net provisions for certain team personnel transactions increased $2.1 million, all as compared to the prior year period. Selling, general and administrative expenses of $76.4 million increased $15.3 million, or 25%, as compared to the prior year period. This increase mainly reflects higher employee compensation and related benefits of $12.2 million, primarily due to executive management transition costs recognized in the current year period, as well as higher other general and administrative expenses. Operating income of $79.7 million decreased $2.0 million, or 2%, as compared to the prior year period, primarily due to the increase in direct operating expenses and, to a lesser extent, higher selling, general and administrative expenses, partially offset by higher revenues. Adjusted operating income of $88.7 million increased $2.5 million, or 3%, 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, an increase in 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 ...