Troy Bayer
Growth at reasonable price, small-cap, energy, media

Knicks Struggles Will Continue To Hinder MSG Growth

Madison Square Garden's (NASDAQ:MSG) fiscal 2014 third quarter financial results were greeted with great disappointment from its shareholders as the company's share price tumbled nearly 7 percent in just a few days.

(click to enlarge)

While Q3 revenues did increase 11 percent to $459 million, operating income and net income dropped 57 and 50 percent respectively when compared to fiscal 2013 Q3. Adjusted Operating Cash Flow (AOCF) also declined in all three of MSG's business segments, with a total decrease of 28 percent to $65.7 million.

The company narrative is to place blame on delays to a new theatrical production called "Heart and Lights," featuring the Rockettes. However, this is not an acceptable justification as MSG's Entertainment segment...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details