 NEW YORK, Aug. 14, 2020 GLOBE NEWSWIRE -- Madison Square Garden Sports Corp. NYSE: MSGS today reported financial results for the fourth quarter and fiscal year ended June 30, 2020. On April 17, 2020, The Madison Square Garden Company completed the spin-off of its entertainment businesses into a new company named Madison Square Garden Entertainment Corp. MSG Entertainment and changed its name to Madison Square Garden Sports Corp. the Company or MSG Sports. For all periods through the date of the spin-off, the financial results of the entertainment businesses previously owned and operated by the Company through its MSG Entertainment segment, as well as the sports booking business previously owned and operated by the Company through its MSG Sports segment, are reflected as discontinued operations. In addition, results from continuing operations through April 17, 2020 include certain corporate overhead expenses that the Company did not incur after the spin-off date and does not expect to incur in future periods, but did not meet the criteria for inclusion in discontinued operations. The financial results of the Company for the period after the spin-off date April 18, 2020 through June 30, 2020 reflect the Companys results on a standalone basis.Results for the fourth quarter and fiscal year ended June 30, 2020 reflect the impact of the COVID-19 pandemic. When the NBA and NHL regular seasons were suspended in March, the Knicks had 16 games remaining, including eight home games; and the Rangers had 12 games remaining, including five home games. Both leagues have resumed play, and while the Knicks were not part of the NBAs re-start in the Orlando bubble, the Rangers were part of the NHLs return in the hub cities of Toronto and Edmonton. Based on the completion of the 2019-20 seasons, the Company would recognize both NBA and NHL national media rights fees related to those seasons in the first quarter of fiscal 2021.For fiscal 2020, the Company generated 603.3 million in revenues, a 17 decrease as compared to the prior year. In addition, the Company had an operating loss of 93.9 million and an adjusted operating loss of 27.5 million, compared to an operating loss of 58.2 million and adjusted operating income of 11.2 million in the prior year.1On a pro forma basis for fiscal 2019, which was the last full fiscal year of operations before the impact of the COVID-19 pandemic, the Company generated 695.3 million in revenues, 25.4 million in operating income and 95.5 million in adjusted operating income.12For the fiscal 2020 fourth quarter, the Company reported negative revenues of 7.0 million, as compared to revenues of 68.2 million in the prior year quarter. In addition, the Company had an operating loss of 44.9 million and an adjusted operating loss of 33.6 million in the fiscal 2020 fourth quarter, compared to an operating loss of 56.0 million and an adjusted operating loss of 38.3 million in the prior year quarter.Madison Square Garden Sports Corp. President and CEO Andrew Lustgarten said: We remain confident in our Companys future prospects and are comfortable that we have the financial flexibility to navigate through this period of uncertainty. The strong response from fans to the return of the NBA and NHL this summer has, once again, reminded us of the power and popularity of sports. And with a portfolio that features some of the most recognized brands in professional sports, we believe our business is well-positioned to drive long-term growth and value creation for our shareholders.Results from Operations Results for the quarter and year ended June 30, 2020 and 2019 are as follows: Three Months Ended Twelve Months Ended June 30, Change June 30, Change millions2020 2019 2020 2019 Revenues7.0 68.2 75.1 NM 603.3 729.4 126.1 17 Operating loss44.9 56.0 11.0 20 93.9 58.2 35.7 61 Adjusted operating income loss33.6 38.3 4.7 12 27.5 11.2 38.7 NM 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. 2 Pro forma results are derived from the Companys unaudited pro forma condensed combined financial statements included in the Companys Current Report on Form 8-K filed with the Securities and Exchange Commission on April 23, 2020 and reflect adjustments related to the spin-off of MSG Entertainment, as well as certain adjustments that are incremental to those related to the spin-off including arrangements we entered into with MSG Entertainment, as if the spin-off had occurred on July 1, 2018. The unaudited pro forma condensed combined financial statements should not be considered representative of the Companys future consolidated results of operations. See Page 5 for additional information regarding the pro forma results. Summary of Reported Results from Continuing Operations For the fiscal 2020 fourth quarter, the Company reported negative revenues of 7.0 million, a decrease of 75.1 million as compared to the prior year period. The overall decrease in revenue was primarily due to the suspension of the 2019-20 NBA and NHL regular seasons.League distributions decreased 35.7 million as compared to the prior year quarter. Due to the suspension of the NBA and NHL regular seasons, a portion of national media rights fees that was recognized during the first nine months of fiscal 2020 was reversed in the fiscal 2020 fourth quarter. Based on the completion of the 2019-20 NBA and NHL seasons, the Company would recognize the remainder of national media rights fees related to those seasons in the first quarter of fiscal 2021.Ticket-related revenue, suite license fees, sponsorship and signage revenues and food, beverage and merchandise sales decreased a combined 38.1 million, as compared to the prior year quarter, primarily due to the suspensions of the NBA and NHL regular seasons.Local media rights fees from MSG Networks decreased 3.1 million as compared to the prior year quarter, primarily reflecting the Knicks and Rangers being unable to deliver for broadcast the contractually-obligated minimum threshold of games for the 2019-20 seasons. This decrease was partially offset by contractual rate increases. As a result of the Rangers participation in the Stanley Cup Qualifiers, the Company will recognize additional local media rights fees in the first quarter of fiscal 2021.For the fiscal 2020 fourth quarter, the Company recorded a 17.6 million credit in direct operating expenses as compared to 34.2 million in direct operating expenses in the prior year period. Net provisions for league revenue sharing expense and NBA luxury tax resulted in a 42.7 million credit in the current year quarter as compared to 6.2 million in expenses in the prior year period. This primarily reflects higher estimated net player escrow recoveries and lower estimated revenue sharing expense for the 2019-20 seasons due to the impact of the regular season suspensions and the leagues return-to-play format. Based on the completion of the NBA and NHL seasons, in the first quarter of fiscal 2021 the Company would recognize a portion of revenue sharing expense, net of escrow recoveries, as well as team personnel compensation, that would have otherwise been recognized in fiscal 2020.For the fiscal 2020 fourth quarter, selling, general and administrative expenses were 53.4 million, a decrease of 37, or 31.2 million, as compared to the prior year period primarily due to lower corporate overhead costs. This primarily reflects the absence of certain corporate expenses in the period following the completion of the spin-off April 18, 2020 through June 30, 2020. The Company did not incur these expenses after the spin-off date and does not expect to incur these costs in future periods. However, these costs did not meet the criteria for inclusion in discontinued operations for the periods prior to the spin-off date. The overall decrease in expenses was partially offset by corporate costs incurred during the period following the spin-off, higher professional fees and an increase in employee compensation and related benefits.Fiscal 2020 fourth quarter operating loss of 44.9 million decreased 20, or 11.0 million, and adjusted operating loss of 33.6 million decreased by 12, or 4.7 million. This primarily reflects lower direct operating expenses and selling, general and administrative expenses, partially offset by the decrease in revenues.Other Matters As of June 30, 2020, the Company had 293 million of liquidity, comprised of the following components: 78 million of cash and cash equivalents, 200 million in borrowing capacity under two delayed draw term loan facilities with MSG Entertainment; and 15 million available under an unsecured revolving credit facility associated with the New York Knicks. Total debt outstanding under the Companys New York Knicks and New York Rangers senior secured revolving credit facilities was 350 million.As of June 30, 2020, the Companys current deferred revenue obligations were approximately 126 million. Of this amount, approximately 61 million is related to the 2019-20 NBA and NHL seasons, including approximately 42 million associated with national media rights fees. Based on the completion of the 2019-20 NBA and NHL seasons, the Company would recognize these fees in the first quarter of fiscal 2021. The balance of deferred revenue obligations related to the 2019-20 seasons is comprised of suites and sponsorships, which will be addressed, to the extent necessary, through credits, make-goods andor refunds, as applicable. 