MSG
The Madison Square Garden Co
TMT
04/26/2013
Presented
| Date | 04/24/2013 |
| Price | $56.33 |
| Market Cap | $4.26B |
| Ent Value | $4.01B |
| P/E Ratio | 29.9x |
| Book Value | $22.93 |
| Div Yield | N/A |
| Shares O/S | 75.54M |
| Ave Daily Vol | 360,000 |
| Short Int | 0.62% |
Current
| Price | $219.38 |
| Market Cap | $5.25B |
| The Madison Square Garden Company, through its subsidiaries, operates in the sports, entertainment, and media businesses primarily in the United States. The company operates in three segments: MSG Media, MSG Entertainment, and MSG Sports. The MSG Media segment produces, develops, and acquires content for various distribution platforms, including content originating from the company's venues. It consists of the MSG Networks and regional sports networks; and Fuse, a national television network dedicated to music. This segment also manages interactive Web sites, social networking sites, and mobile applications; and mobile, video on demand, and digital platforms. The MSG Entertainment segment presents or hosts live entertainment events, such as concerts, family shows, performing arts, and special events, and theatrical productions, as well as creates, produces, and/or presents live productions. This segment owns the Garden, Radio City Music Hall, the Theater at Madison Square Garden, the Beacon Theatre, the Chicago Theatre, and the Forum. The MSG Sports segment owns and operates sports franchises, including New York Knicks, New York Rangers, New York Liberty, and Connecticut Whale. This segment also promotes, produces, and/or presents an array of live sporting events, such as professional boxing, college basketball, track and field, professional bull riding, tennis, and wrestling, as well as the NFL draft. The company was founded in 1874 and is based in New York, New York. As of February 09, 2010, Madison Square Garden, Inc. operates independently of Cablevision Systems Corporation. |
Highlights
The presenter is bullish on the outlook for MSG, and believes the company is presently undervalued based on its assets and potential earnings power. The NY media conglomerate has spent ~$1 billion on The Garden to-date and should be finished with the renovations/ upgrades in the 2nd half of 2013. Once the project is complete, provided the Dolans do not make any mistakes with the ~$250 million cash balance, MSG could materially improve its balance sheet and FCF profile over the next 12 months. In addition, he reviewed the following points supporting his investment case:
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