Sphere Entertainment Co. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Sphere Entertainment Co. has filed its quarterly report (10-Q) for the period ending December 31, 2023, detailing its financial performance and operational status.</b>

AI Summary

Sphere Entertainment Co. (SPHR) filed a Quarterly Report (10-Q) with the SEC on February 5, 2024. Sphere Entertainment Co. filed its 10-Q report for the period ending December 31, 2023. The company's fiscal year ends on June 30. The filing covers the second quarter of fiscal year 2024. The company was formerly known as Madison Square Garden Entertainment Corp. The filing includes data for both continuing and discontinued operations.

Why It Matters

For investors and stakeholders tracking Sphere Entertainment Co., this filing contains several important signals. This 10-Q filing provides investors with the latest financial data for Sphere Entertainment Co., crucial for understanding its performance in the second quarter of fiscal year 2024. The inclusion of data for both continuing and discontinued operations offers a comprehensive view of the company's financial health and strategic direction.

Risk Assessment

Risk Level: medium — Sphere Entertainment Co. shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains detailed financial information but does not usually include significant new strategic announcements or immediate market-moving data, hence a medium risk assessment.

Analyst Insight

Review the detailed financial statements and segment performance within the 10-Q to assess Sphere Entertainment Co.'s operational efficiency and revenue trends.

Key Numbers

• 2023-12-31 — Report Period End Date (The 10-Q filing is for the period ending December 31, 2023.)
• 2024-02-05 — Filing Date (The 10-Q report was filed on February 5, 2024.)
• 2023-07-01 — Quarter Start Date (The reporting period began on July 1, 2023.)
• 2023-06-30 — Fiscal Year End (The company's fiscal year concludes on June 30.)

Key Players & Entities

• Sphere Entertainment Co. (company) — Filer of the 10-Q report.
• Madison Square Garden Entertainment Corp. (company) — Former name of Sphere Entertainment Co.
• MSG ENTERTAINMENT SPINCO, INC. (company) — Previous former name of Sphere Entertainment Co.

Forward-Looking Statements

• Sphere Entertainment Co. will continue to emphasize its 'continuing operations' segment in future reports, potentially indicating further divestitures or strategic focus shifts. (Sphere Entertainment Co.) — medium confidence, target: 2024-06-30

FAQ

Industry Context

Sphere Entertainment Co. operates within the amusement and recreation services industry, focusing on unique entertainment experiences.

Regulatory Implications

The company is subject to standard SEC reporting requirements for publicly traded entities, including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Analyze the revenue and expense details for the Sphere venue and other entertainment segments.
2. Examine any disclosures related to debt, liquidity, and capital expenditures.
3. Review management's discussion and analysis (MD&A) for insights into operational performance and future outlook.

Key Dates

• 2024-02-05: 10-Q Filing — Submission of the quarterly financial report for the period ending December 31, 2023.
• 2023-12-31: Reporting Period End — End date for the financial data presented in the 10-Q.
• 2023-07-01: Reporting Period Start — Start date for the financial data presented in the 10-Q.
• 2020-04-17: Name Change — Date when Madison Square Garden Entertainment Corp. changed its name to Sphere Entertainment Co.

Year-Over-Year Comparison

This is the initial 10-Q filing for Sphere Entertainment Co. under its current structure and name, following its separation from Madison Square Garden Sports Corp. and its rebranding.

Key Financial Figures

• $0.01 — 2024: Class A Common Stock par value $0.01 per share — 28,272,107 Class B Common

Filing Documents

• sphr-20231231.htm (10-Q) — 2585KB
• exhibit103-francoemploymen.htm (EX-10.3) — 78KB
• exhibit104-koesterjennifer.htm (EX-10.4) — 72KB
• exhibit105-firstamendmentt.htm (EX-10.5) — 24KB
• sphrexhibit3111231202310q.htm (EX-31.1) — 10KB
• sphrexhibit3121231202310q.htm (EX-31.2) — 10KB
• sphrexhibit3211231202310q.htm (EX-32.1) — 3KB
• sphrexhibit3221231202310q.htm (EX-32.2) — 4KB
• image.jpg (GRAPHIC) — 16KB
• image1.jpg (GRAPHIC) — 16KB
• sphr-20231231_g1.jpg (GRAPHIC) — 887KB
• 0001795250-24-000009.txt (&nbsp;) — 14958KB
• sphr-20231231.xsd (EX-101.SCH) — 75KB
• sphr-20231231_cal.xml (EX-101.CAL) — 96KB
• sphr-20231231_def.xml (EX-101.DEF) — 526KB
• sphr-20231231_lab.xml (EX-101.LAB) — 805KB
• sphr-20231231_pre.xml (EX-101.PRE) — 623KB
• sphr-20231231_htm.xml (XML) — 2425KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Condensed Consolidated Balance Sheets as of December 31, 2023 and June 30, 2023 ( U naudited) 1 Condensed Consolidated Statements of Operations for the three and six months ended December 31, 2023 and 2022 ( U naudited) 2 Condensed Consolidated Statements of Comprehensive (Loss) Income for the three and six months ended December 31, 2023 and 2022 ( U naudited) 3 Condensed Consolidated Statements of Cash Flows for the six months ended December 31, 2023 and 2022 ( U naudited) 4 Condensed Consolidated Statements of Stockholders' Equity and Redeemable Noncontrolling Interests for the three and six months ended December 31, 2023 and 2022 ( U naudited) 6 Notes to Condensed Consolidated Financial Statements ( U naudited) 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 37

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 56

Controls and Procedures

Item 4. Controls and Procedures 57

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 58

Risk Factors

Item 1A. Risk Factors 59

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 83

Exhibits

Item 6. Exhibits 84

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements SPHERE ENTERTAINMENT CO. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except per share data) As of December 31, June 30, 2023 2023 ASSETS Current Assets: Cash, cash equivalents, and restricted cash $ 627,827 $ 429,114 Accounts receivable, net 179,964 112,309 Related party receivables, current 24,047 26,405 Prepaid expenses and other current assets 46,810 56,085 Total current assets 878,648 623,913 Non-Current Assets: Investments in nonconsolidated affiliates 50,906 394,519 Property and equipment, net 3,287,933 3,307,161 Right-of-use lease assets 86,599 84,912 Goodwill 456,807 456,807 Intangible assets, net 16,353 17,910 Other non-current assets 106,038 87,793 Total assets $ 4,883,284 $ 4,973,015 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued and other current liabilities $ 391,903 $ 515,731 Related party payables, current 23,407 56,446 Current portion of long-term debt, net 890,110 82,500 Operating lease liabilities, current 14,727 10,127 Deferred revenue 78,381 27,337 Total current liabilities 1,398,528 692,141 Non-Current Liabilities: Long-term debt, net 521,413 1,118,387 Operating lease liabilities, non-current 109,296 110,259 Deferred tax liabilities, net 272,447 379,552 Other non-current liabilities 116,436 88,811 Total liabilities 2,418,120 2,389,150 Commitments and contingencies (see Note 10) Equity: Class A Common Stock (a) 283 278 Class B Common Stock (b) 69 69 Additional paid-in capital 2,365,913 2,376,420 Retained earnings 105,213 212,036 Accumulated other comprehensive loss ( 6,314 ) ( 4,938 ) Total stockholders' equity 2,465,164 2,583,865 Total liabilities and equity $ 4,883,284 $ 4,973,015 __________________ (a) Class A Common Stock, $ 0.01 par value per share, 120,000 shares authorized; 28,263 and 27,812 shares issued and outstanding as of December 31, 2023 and June 30, 2023, respectively. (b) Class B Common St

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View this 10-Q filing on SEC EDGAR