VPM Media Corp. purchases Type Weekly

The weekly Richmond was closed by its owner in September

Released

November 18, 2021



from



Richmond’s Style Weekly ended on September 8, 2021 but was bought by VPM Media Corp., the parent company of public television and radio station VPM.

VPM Media Corp., the parent company of the Richmond-based public television and radio broadcaster VPM, announced Thursday that it has acquired Style Weekly, the Richmond publication that was bought by owner Alden Global Capital in September after nearly 39 years in print has been closed .

Financial terms were not disclosed, and a VPM spokesperson said he couldn’t say which former Style employees would be returning to the release. According to VPMs Notice, In the coming weeks, VPM will resume publishing art and culture and the local calendar of events on StyleWeekly.com and its Facebook, Instagram and Twitter accounts while evaluating the future of print publishing.

“This acquisition not only represents a strategic opportunity for VPM, it is also an opportunity for nonprofit media to innovate and experiment with new business models that could determine the future of local journalism,” said Jayme Swain, President and CEO of VPM , in a statement.

Style published its own announcement on Thursday Twitter: “With the support of VPM and its talented employees, we are ready to go back to work. You should start seeing stories on our website and social media channels from mid-December. “

Style was sold in 2018 by Norfolk-based Landmark Communications Inc. to Tribune Publishing Co. (then known as Tronc Inc.) along with The Virginian Pilot and Inside Business for $ 34 million. In May, Tribune Publishing was bought by hedge fund Alden Global Capital for $ 633 million. In September, Style Editor-in-Chief Brent Baldwin announced on Facebook that the September 8th issue of Style, already on the stands, would be the final. Started as a monthly publication in 1982, Style was later a free weekly newspaper that Richmond dealt with with its sale to Landmark from 1984 onwards.

It was known as an alternative to the two daily Richmonds newspapers – the Richmond Times-Dispatch and the now-defunct Richmond News Leader – and focused on the city’s food, arts and entertainment scenes. In the years that followed, Style also built a reputation for photojournalism and hard news, as well as popular “You’re Very Richmond If” and “Best of Richmond” features.

“Style Weekly has been an integral part of Richmond’s culture for nearly 40 years,” said Steve Humble, VPM’s chief content officer, in a statement. “Over the next six to eight months, we’ll take the time to listen to readers as we develop a long-term strategy and determine how Style Weekly can best serve the community.”

This is a breaking news item that will be updated.

Editor’s Note: Lori Collier Waran, editor of Virginia Business Associate, editor Richard Foster, art director Joel Smith, graphic designer Kira Jenkins, and account manager Toni McCracken have all previously worked at Style Weekly.

Snap, Intel, Moderna, Digital World Acquisition Corp and extra

Check out the companies that are making the headlines in midday trading.

Snap Snap stock slumped 26.6% after it released its quarterly results, which included both a drop in sales and a profit blow. The social media company said its advertising business had declined due to Apple’s privacy changes.

Facebook, TwitterSocial media and digital promotional stocks have gone down Based on Snap’s findings on the impact of Apple’s privacy changes. Facebook shares were down 5.5% and Twitter shares were down 4.8%.

Intel – Intel shares fell after a. 11.7% after weaker than expected sales report. The semiconductor company blamed an industry-wide chip shortage for its lost revenue and warned that its gross margin and free cash flow would decline over the next two to three years.

Modern – Shares in the biotech company fell 3.8% Deutsche Bank started coverage of Moderna with a sell rating. The company said potential innovations were already priced into Moderna’s stock. “We agree that there is potential to disrupt the dynamics in the broader realm of infectious viral diseases (e.g. influenza), but all of this is more than generously reflected in a rating that appears detached from a problematic assessment of reality “said German.

Digital World Acquisition Corp. – Shares of the SPAC, which make the planned social media platform of the former President Donald Trump public, skyrocketed again in the roller coaster trade. The blank check company, which trades on the Nasdaq under the ticker DWAC, shot up 216% at times and closed 107%. The stock rose more than 350% on Thursday due to its explosive trading volume and volatility.

Honeywell Honeywell’s shares are down 3.2% after the company lowered its full-year revenue forecast. The company also reported quarterly revenue that was below analysts’ expectations for the third quarter. However, the result exceeded the forecasts.

American Express American Express stocks rose 5.4% after the company beat earnings expectations. The company reported earnings of $ 2.27 per share on sales of $ 10.93 billion. Analysts polled by Refinitiv expected earnings of $ 1.80 per share on sales of $ 10.52 billion.

Urban Outfitters Urban Outfitters’ shares rose 1.5% after Citi upgraded the clothing retailer from neutral to buy. “We can’t ignore the -25% better risk / reward ratio in stocks since URBN’s 2nd quarter (reported August),” said Citi.

VF Corp. – The clothing company’s shares fell 4.5% after missing the top and bottom lines of quarterly results. VF Corp. reported earnings of $ 1.11 per share on sales of $ 3.2 billion. Wall Street expected earnings of $ 1.15 per share on sales of $ 3.5 billion, according to Refinitiv.

Seagate – Seagate shares rose 6.1% after the data storage company beat earnings estimates. The company reported earnings of $ 2.35 per share, 13 cents more than expected, according to Refinitiv. Seagate also outperformed revenue estimates and issued strong revenue and earnings per share projections for the current quarter.

Chipotle Mexican Grill – Chipotle shares fell 2.8% despite one Make a profit. The fast-casual chain has dashed analysts’ expectations, expecting adjusted earnings of $ 7.02 per share versus $ 6.32 per share, according to Refinitiv. Higher menu prices helped the company offset higher input costs.

Boston beer Boston Beer shares were up 1.6% on the brewery’s third-quarter sales report. Boston Beer had sales of $ 561.6 million, according to StreetAccount, beating analysts’ consensus estimate of $ 531.5 billion.

Whirlpool Whirlpool shares rose 2.7% after the home appliance maker beat Wall Street expectations for earnings per share. The company reported earnings of $ 6.68 per share, 56 cents more than Refinitiv’s consensus estimate.

Mattel Mattel shares rose 0.6% after the toy maker’s quarterly report beat analysts’ expectations. Mattel posted earnings of 84 cents per share on sales of $ 1.76 billion, while analysts polled by Refinitiv expected earnings of 72 cents per share on sales of 1.69 billion US dollars.

– CNBC’s Tanaya Macheel, Maggie Fitzgerald and Yun Li contributed to the coverage

Fertitta Leisure, Inc. Broadcasts Modification to Merger Settlement with FAST Acquisition Corp.

HOUSTON, June 30, 2021 /PRNewswire/ — Fertitta Entertainment, Inc., the parent company of Golden Nugget/Landry’s (“Fertitta” or the “Company”), a leader in the gaming, restaurant, hospitality and entertainment industry, and FAST Acquisition Corp. (NYSE: FST) (“FAST”), a special purpose acquisition company co-headed by Doug Jacob and Sandy Beall, announced today that they have entered into an amendment to their previously announced Agreement and Plan of Merger entered into between the parties on February 1, 2021.   According to the amendment, the Company has agreed to contribute certain operating businesses not originally included as part of the business combination with FAST for no additional debt.  Businesses that will now be contributed to the public company include the Mastro’s brand, the Aquariums, the Pleasure Pier, Vic and Anthony’s, and a handful of smaller restaurant concepts, adding a total of 42 incremental, high-quality business assets.  Also, the Company will enter into a transaction to acquire the Catch restaurants, including Catch Steak, which restaurant group is already 50% owned indirectly by Tilman J. Fertitta.  In connection with the amendment, Mr. Fertitta, the Company’s owner, will receive additional equity in the NYSE public company which will increase his total equity stake post -closing of the transaction to approximately 72%.   

Pro forma for the revised transaction, Fertitta Entertainment, Inc. will be one of the largest publicly-traded hospitality companies with 5 land-based casinos and substantial ownership of Golden Nugget Online Gaming, Inc. and over 500 restaurants, amusements, hotels, entertainment venues and other business units across 38 states, the District of Columbia, Puerto Rico, Hong Kong, mainland China, Mexico and Singapore, plus numerous licensed restaurants throughout the world.

In addition, the Company announced preliminary pro forma financial results for the quarter ended June 30, 2021.  Including the additional assets and business units, pro forma net revenues for the three-month period are expected to be between $917 million and $920 million, with pro forma adjusted EBITDA estimated to be between $270 million and $275 million.  For full year 2021, the Company believes that its pro forma adjusted EBITDA will exceed $800 million assuming the contribution or acquisition of all of the operating businesses by the Company was completed as of January 1, 2021.  According to Tilman J. Fertitta, “the contribution of the new business assets greatly improves the Company’s operating cash flow, provides better assets for organic growth, and significantly deleverages the Company as no incremental debt is being incurred by the Company as part of the revised transaction.  Since the rollout of covid vaccinations, the operating results of the incremental assets have been so strong, I decided that I should be focused all in on the Company as I see opportunities for a significant acquisition that would not otherwise be available to the Company without this revised transaction.  We were a great company before and now even better today.”

“The addition of Mastro’s and the destination entertainment businesses provide tremendous cash flow and growth opportunities to the Company and we are excited that Tilman is contributing the new assets to the Company,” said Doug Jacob. “These brands create an even stronger portfolio to leverage for potential future acquisitions.”

Sandy Beall added: “We believe the new assets provide tremendous value to the public company and greatly strengthen the balance sheet for future growth.”

Amended Transaction Overview

The amended transaction implies an enterprise valuation for Golden Nugget/Landry’s of approximately $8.6 billion. This enterprise value includes the value of the GNOG equity to be contributed to the Company, based on an assumed per share trading price of approximately $13.00 for GNOG shares, which will be subject to adjustment based on the 60 day average price of the stock before closing. Estimated cash proceeds from the transaction are expected to consist of FAST’s $200 million of cash in trust, assuming no redemptions. In addition, shareholders have committed to invest approximately $1.24 billion in the form of a PIPE at a price of $10.00 per share of common stock of FAST immediately prior to the closing of the transaction.

The Company expects to use the proceeds from the transaction to accelerate the Company’s growth initiatives, general corporate purposes and reduce existing debt. In connection with the merger, the parties will undertake certain reorganizational transactions to exclude from the public company certain businesses and assets that Tilman J. Fertitta will continue to wholly own on a private basis.

The boards of directors of each of FAST and Fertitta have unanimously approved the amended transaction. The amended transaction will require the approval of the stockholders of FAST and is subject to other customary closing conditions, including the receipt of certain regulatory and gaming approvals. The SEC review process is expected to begin around the third week in July, and the transaction is now expected to close in the fourth quarter of 2021.

Fertitta Entertainment, Inc.

Fertitta Entertainment, Inc. is Tilman J. Fertitta’s holding company for substantially all of his assets, including all of the equity in Golden Nugget, LLC and Landry’s, LLC, approximately 31.494 million shares in Golden Nugget Online Gaming, Inc. (“GNOG”), hotels, real estate, and other investments. The business combination will only include all of its holdings in GNOG and the majority of the assets and businesses that comprise Golden Nugget, LLC and Landry’s, LLC.  Golden Nugget/Landry’s is a multinational, diversified gaming, restaurant, hospitality, and entertainment company based in Houston, Texas.  The Company’s gaming division includes the renowned Golden Nugget Hotel and Casino concept, with locations in Las Vegas and Laughlin, NV; Atlantic City, NJ; Biloxi, MS; and Lake Charles, LA.  GNOG is a leading online gaming company that is considered a market leader by its peers and was first to bring Live Dealer and Live Casino Floor to the United States online gaming market. GNOG was the past recipient of 15 eGaming Review North America Awards, including the coveted “Operator of the Year” award in 2017, 2018, 2019 and 2020. Entertainment and hospitality divisions encompass popular destinations including the Kemah Boardwalk. The Company also operates more than 500 outlets, including over 400 high-end and casual dining establishments around the world, with well-known concepts such as Del Frisco’s, Landry’s Seafood House, Bubba Gump Shrimp Co., Rainforest Cafe, Morton’s The Steakhouse, The Oceanaire Seafood Room, McCormick & Schick’s Seafood, Chart House, Joe’s Crab Shack, and Saltgrass Steak House. Landry’s also operates the popular New York BR Guest Restaurants such as Dos Caminos, Strip House and Bill’s Bar & Burger.

FAST Acquisition Corp.

FAST is a hospitality-focused blank check company launched by the principals of &vestwhose business purpose is to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. FAST is led by founder Doug Jacob and CEO Sandy Beall. FAST raised $200,000,000 in its initial public offering on August 20, 2020 and is listed on NYSE under the ticker symbol “FST.”

Advisors

Latham & Watkins LLP is acting as legal advisor to Fertitta, and Jefferies LLC is acting as financial advisor and capital markets advisor to Fertitta. Jefferies LLC acted as lead placement agent on the PIPE. Both Winston & Strawn LLP and White & Case LLP are acting as legal advisors to FAST.  Citigroup Global Markets Inc. is acting as sole financial advisor to FAST, and Citigroup Global Markets Inc. and UBS Investment Bank are jointly acting as capital markets advisor to FAST.  Goodwin Procter LLP and Skadden, Arps, Slate, Meagher & Flom LLP are acting as legal advisors to Jefferies LLC.

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures, including EBITDA and Pro forma Adjusted EBITDA. EBITDA is defined as net income plus interest expense, income tax expense, depreciation and amortization. Pro forma Adjusted EBITDA is defined as EBITDA, plus impairment expenses, pre-opening costs, and onetime non-recurring items, as if all of the businesses were owned as of January 1, 2021. These financial measures are not prepared in accordance with accounting principles generally accepted in the United States and may be different from non-GAAP financial measures used by other companies. FAST and the Company believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP measures with comparable names should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.  The Company’s and FAST’s actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward looking statements as predictions of future events.  Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements.  These forward-looking statements include, without limitation, the Company’s and FAST’s expectations with respect to future performance and anticipated financial impacts of the transactions contemplated by the merger (the “Business Combination”), the satisfaction of the closing conditions to the Business Combination and the timing of the completion of the Business Combination.  These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results.  Most of these factors are outside the Company’s and FAST’s control and are difficult to predict.  Factors that may cause such differences include, but are not limited to: (1) the occurrence of any event, change or other circumstances that could give rise to the termination of the agreement and plan of merger for the Business Combination (the “Merger Agreement”) or could otherwise cause the Business Combination to fail to close, (2) the outcome of any legal proceedings that may be instituted against the Company and FAST following the announcement of the Merger Agreement and the transactions contemplated therein; (3) the inability to complete the Business Combination, including due to failure to obtain approval of the stockholders of FAST or satisfy other conditions to closing in the Merger Agreement, including the failure to obtain gaming or other regulatory approvals; (4) the impact of COVID-19 on the Company’s business and/or the ability of the parties to complete the Business Combination; (5) the inability to obtain or maintain the listing of FAST’s shares of common stock on the New York Stock Exchange following the Business Combination; (6) the risk that the Business Combination disrupts current plans and operations as a result of the announcement and consummation of the Business Combination; (7) the ability to recognize the anticipated benefits of the Business Combination, which may be affected by, among other things, competition, the ability of the Company to grow and manage growth profitably and retain its key employees; (8) costs related to the Business Combination; (9) changes in applicable laws or regulations; (10) the possibility that FAST or the Company may be adversely affected by other economic, business, and/or competitive factors; and (11) other risks and uncertainties indicated from time to time in the Registration Statement (as defined below) relating to the Business Combination, including those under “Risk Factors” therein, and in FAST’s other filings with the SEC.  The foregoing list of factors is not exclusive.   Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made.  Neither FAST nor the Company undertakes or accepts any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. 

No Offer or Solicitation

This press release shall not constitute a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the proposed transaction. This press release shall also not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Additional Information

In connection with the proposed Business Combination, FAST’s wholly owned subsidiary, FAST Merger Corp. (“FAST TX”) intends to file with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4 (the “Registration Statement”), which will include a proxy statement/prospectus, and certain other related documents, which will be both the proxy statement to be distributed to holders of shares of FAST’s common stock in connection with its solicitation of proxies for the vote by FAST’s stockholders with respect to the proposed Business Combination and other matters as may be described in the Registration Statement, as well as the prospectus relating to the offer and sale of the securities of FAST TX to be issued in the Business Combination. FAST’s stockholders and other interested persons are advised to read, when available, the preliminary proxy statement/prospectus included in the Registration Statement and the amendments thereto and the definitive proxy statement/prospectus, as these materials will contain important information about the parties to the Merger Agreement, FAST and the Business Combination. After the Registration Statement is declared effective, the definitive proxy statement/prospectus will be mailed to stockholders of FAST as of a record date established for voting on the Business Combination and other matters as may be described in the Registration Statement. Stockholders will also be able to obtain copies of the proxy statement/prospectus and other documents filed with the SEC that will be incorporated by reference in the proxy statement/prospectus, without charge, once available, at the SEC’s web site at www.sec.gov, or by directing a request to: FAST Acquisition Corp., 3 Minetta Street, New York, New York 10012, Attention: Sandy Beall, Chief Executive Officer.

Participants in the Solicitation

FAST and Fertitta and their respective directors and executive officers may be deemed participants in the solicitation of proxies from FAST’s stockholders with respect to the Business Combination. A list of the names of those directors and executive officers and a description of their interests in FAST are contained in FAST’s final prospectus dated August 20, 2020 relating to its initial public offering and in FAST’s subsequent filings with the SEC, and is available free of charge from the sources. Additional information regarding the interests of such participants will be contained in the Registration Statement when available.

SOURCE Landry’s

Rovio Leisure Corp.: Share subscriptions based mostly on

Rovio Entertainment Corporation. Stock exchange announcement June 16, 2021 at 9.30 a.m. EEST

Stock subscriptions based on stock options 20th18th

Between April 20, 2021 and May 31, 2021, a total of 400,442 new shares in Rovio Entertainment Corporation were subscribed under the 2018 stock option program. 400,442 new shares were purchased as part of the 2018A stock options at a subscription price of EUR 4.96. The total subscription price of EUR 1,986,192.32 will be allocated to the invested free equity reserve.

The share subscriptions will increase the number of Rovio Entertainment shares to 82,101,203 shares.

The shares subscribed for as part of the stock options were entered in the commercial register on June 16, 2021, from this date the new shares establish shareholders’ rights.

The shares, along with the old shares, will be traded on Nasdaq Helsinki Plc from June 17, 2021.

ROVIO ENTERTAINMENT CORPORATION

More information:
Rene Lindell, CFO
RovioIR@rovio.com
Media desk: +358 40 485 8985

Distribution:
Nasdaq Helsinki Ltd
Key media
https://investors.rovio.com/de

About Rovio:

Rovio Entertainment Corporation is a global mobile-first games company that develops, develops, and publishes mobile games that have been downloaded over 4.5 billion times to date. Rovio is best known for the global brand Angry Birds, which started as a popular mobile game in 2009 and has since grown from games to various entertainment and consumer products under branded licensing. Today, Rovio offers several mobile games and animations and produced The Angry Birds Movie in 2016. The sequel The Angry Birds Movie 2 was released in 2019. Rovio is headquartered in Finland and the company’s shares are listed on the main listing of the NASDAQ HelsinkiQ stock exchange with trading code ROVIO. (www.rovio.com)

Fascinated about shopping for inventory in AMC Leisure, Vertex Vitality, Sonos, Multiplan Corp, or Aemetis?

NEW YORK, May 13, 2021 / PRNewswire / – InvestorsObserver issues critical PriceWatch alerts for AMC, VTNR, SONO, MPLN, and AMTX.

To see how InvestorsObserver’s proprietary rating system rates these stocks, check out the InvestorsObserver’s PriceWatch alert by selecting the appropriate link.

(Note: you may need to copy this link into your browser and then press the button [ENTER] Key.)

InvestorsObserver’s PriceWatch alerts are based on our proprietary valuation method. Each stock is valued based on short term technical, long term technical and fundamental factors. Each of these ratings are then combined into an overall rating that determines a stock’s general suitability for investment.

SOURCE InvestorsObserver

similar links

https://www.investorsobserver.com

Madison Sq. Backyard Leisure Corp. and MSG Networks Inc. Announce Key Submitting Dates and Plans to Host Joint Webcast on Proposed Merger

NEW YORK–() – Madison Square Garden Entertainment Corp. („MSG Entertainment“) (NYSE: MSGE) gab heute bekannt, dass am Freitag, dem 7. Mai 2021, vor Marktöffnung eine Pressemitteilung veröffentlicht werden soll, in der die Finanzergebnisse für das abgelaufene dritte Geschäftsquartal veröffentlicht werden 31. März 2021. MSG Networks Inc. („MSG Networks“) (NYSE: MSGN) gab zuvor bekannt, dass es am Freitag, dem 7. Mai 2021, vor Marktöffnung eine Pressemitteilung veröffentlichen wird, in der die Finanzergebnisse für das im März endende dritte Geschäftsquartal veröffentlicht werden 31, 2021.

Darüber hinaus plant MSG Entertainment, eine Registrierungserklärung auf Formular S-4 einzureichen, die eine gemeinsame Proxy-Erklärung und einen gemeinsamen Prospekt enthält, bevor der Markt am Freitag, dem 7. Mai 2021, eröffnet wird. MSG Entertainment und MSG Networks planen, eine gemeinsame Investorenpräsentation auf der Website einzureichen geplante Übernahme von MSG Networks durch MSG Entertainment am Freitag, den 7. Mai 2021.

Die Unternehmen planen, am Montag, dem 10. Mai 2021, um 16:30 Uhr Eastern Time einen gemeinsamen Webcast über die geplante Übernahme von MSG Networks durch MSG Entertainment zu moderieren, moderiert von Brandon Ross, Partner und TMT Analyst bei LightShed Partners. Die Veranstaltung wird per Webcast unter verfügbar sein investor.msgentertainment.com unter der Überschrift „Events & Presentations“ und unter investor.msgnetworks.com unter der Überschrift “Events & Presentations”.

Über Madison Square Garden Entertainment Corp.

Die Madison Square Garden Entertainment Corp. (MSG Entertainment) ist führend bei Live-Unterhaltungserlebnissen. Das Unternehmen präsentiert oder veranstaltet eine breite Palette von Veranstaltungen in seiner vielfältigen Sammlung von Veranstaltungsorten: New Yorks Madison Square Garden, Hulu Theatre im Madison Square Garden, Radio City Music Hall und Beacon Theatre; und das Chicago Theatre. MSG Entertainment baut außerdem in Las Vegas einen neuen hochmodernen Veranstaltungsort, MSG Sphere im The Venetian, und hat Pläne für den Bau einer zweiten MSG Sphere in London angekündigt, sofern die erforderlichen Genehmigungen vorliegen. Darüber hinaus zeigt das Unternehmen die Originalproduktion – das Weihnachtsspektakel mit den Radio City Rockettes – und produziert über Boston Calling Events das Boston Calling Music Festival. Unter dem Dach von MSG Entertainment befindet sich auch die Tao Group Hospitality mit Marken für Unterhaltungsrestaurants und Nachtleben, darunter Tao, Marquee, Lavo, Avenue, Beauty & Essex, Cathédrale, Hakkasan und Omnia. Weitere Informationen finden Sie unter www.msgentertainment.com.

Über MSG Networks Inc.

MSG Networks Inc., ein Pionier in den Sportmedien, besitzt und betreibt zwei preisgekrönte regionale Sport- und Unterhaltungsnetzwerke sowie einen begleitenden Streaming-Dienst, der den landesweit führenden Medienmarkt, den New York DMA, sowie andere Teile von New York bedient , New Jersey, Connecticut und Pennsylvania. Die Netzwerke bieten eine breite Palette überzeugender Sportinhalte, darunter exklusive lokale Live-Spiele und andere Programme der New York Knicks, der New York Rangers, der New York Islanders, der New Jersey Devils und der Buffalo Sabres sowie eine umfassende Berichterstattung über die New York Giants und Buffalo Bills. Dieser Inhalt hat neben einer Vielzahl anderer Sportveranstaltungen und der von der Kritik gefeierten Originalprogrammierung MSG Networks als Goldstandard im regionalen Sport etabliert.

Zusätzliche Informationen und wo sie zu finden sind

Diese Pressemitteilung kann als Werbematerial für die geplante Transaktion zwischen MSG Entertainment und MSG Networks angesehen werden. Im Zusammenhang mit der geplanten Transaktion beabsichtigen MSG Entertainment und MSG Networks, bei der Securities and Exchange Commission („SEC“) eine Registrierungserklärung auf Formular S-4 einzureichen, die eine gemeinsame Proxy-Erklärung von MSG Entertainment und MSG Networks enthält, aus der auch besteht ein Prospekt von MSG Entertainment. MSG Entertainment und MSG Networks können bei der SEC auch andere Dokumente bezüglich der geplanten Transaktion einreichen. Dieses Dokument ist kein Ersatz für die gemeinsame Proxy-Erklärung / den gemeinsamen Prospekt, das Formular S-4 oder ein anderes Dokument, das MSG Entertainment oder MSG Networks bei der SEC einreichen können. INVESTOREN UND SICHERHEITSINHABER VON MSG ENTERTAINMENT UND MSG NETWORKS SIND VERPFLICHTET, DIE REGISTRIERUNGSERKLÄRUNG, die GEMEINSAME PROXYERKLÄRUNG / den GEGENSTANDSPROSPEKT UND ALLE ANDEREN RELEVANTEN DOKUMENTE, DIE ANGEGEBEN SIND oder ANGEGEBEN WERDEN , SORGFÄLTIG UND VOLLSTÄNDIG, WEIL SIE WICHTIGE INFORMATIONEN ÜBER DIE VORGESCHLAGENE TRANSAKTION ENTHALTEN ODER ENTHALTEN WERDEN. Anleger und Wertpapierinhaber können kostenlose Kopien des Formulars S-4 und der gemeinsamen Proxy-Erklärung / des gemeinsamen Prospekts (sofern verfügbar) sowie anderer Dokumente, die von MSG Entertainment und MSG Networks bei der SEC eingereicht wurden, auf der Website der SEC unter www.sec.gov erhalten. Kopien von Dokumenten, die von MSG Entertainment bei der SEC eingereicht wurden, werden kostenlos auf der Investor Relations-Website von MSG Entertainment unter https://investor.msgentertainment.com zur Verfügung gestellt. Kopien von Dokumenten, die von MSG Networks bei der SEC eingereicht wurden, werden kostenlos auf der Investor Relations-Website von MSG Networks unter https://investor.msgnetworks.com zur Verfügung gestellt.

Kein Angebot oder Aufforderung

Diese Mitteilung dient nur zu Informationszwecken und ist nicht dazu gedacht und stellt kein Angebot zum Verkauf oder zur Aufforderung zur Abgabe eines Angebots zum Abonnieren oder Kaufen oder zur Aufforderung zur Stimmabgabe oder Genehmigung in einer Rechtsordnung dar, und es wird auch keine geben Verkauf, Ausgabe oder Übertragung von Wertpapieren in einer Gerichtsbarkeit, in der ein solches Angebot, ein solcher Verkauf oder eine solche Werbung rechtswidrig wäre, bevor sie gemäß den Wertpapiergesetzen einer solchen Gerichtsbarkeit registriert oder qualifiziert werden. Es wird kein Angebot von Wertpapieren gemacht, außer mittels eines Prospekts, der die Anforderungen von Abschnitt 10 des Securities Act von 1933 in seiner jeweils gültigen Fassung und ansonsten in Übereinstimmung mit geltendem Recht erfüllt.

Teilnehmer an der Aufforderung

MSG Entertainment, MSG Networks und einige ihrer jeweiligen Direktoren und leitenden Angestellten können als Teilnehmer an der Einholung von Stimmrechtsvertretern der Inhaber von MSG Entertainment- und MSG Networks-Wertpapieren in Bezug auf die geplante Transaktion gemäß den Regeln der SEC angesehen werden. Bestimmte Informationen zu diesen Direktoren und leitenden Angestellten sowie eine Beschreibung ihrer direkten und indirekten Interessen durch Wertpapierbestände oder auf andere Weise werden in das Formular S-4 und die gemeinsame Proxy-Erklärung / den gemeinsamen Prospekt bezüglich der geplanten Transaktion (sofern verfügbar) und anderer relevanter Informationen aufgenommen Materialien, die von MSG Entertainment und MSG Networks bei der SEC eingereicht werden müssen. Informationen zu den Direktoren und leitenden Angestellten von MSG Entertainment finden Sie in der Proxy-Erklärung von MSG Entertainment zu der am 27. Oktober 2020 bei der SEC eingereichten Jahreshauptversammlung 2020. Informationen zu den Direktoren und leitenden Angestellten von MSG Networks finden Sie in der Proxy-Erklärung von MSG Networks Diese Dokumente werden kostenlos bei den oben genannten Quellen erhältlich sein.

Vorausschauende Aussagen

Dieses Dokument enthält Aussagen, die zukunftsgerichtete Aussagen im Sinne des Private Securities Litigation Reform Act von 1995 in seiner jeweils gültigen Fassung darstellen können. Einige dieser zukunftsgerichteten Aussagen können durch die Verwendung zukunftsgerichteter Wörter wie „glaubt“, „erwartet“, „kann“, „wird“, „sollte“, „sucht“, „ungefähr“ und „beabsichtigt“ identifiziert werden , “Pläne”, “Schätzungen”, “Projekte”, “Strategie” oder “antizipiert” oder das Negative dieser Wörter oder einer anderen vergleichbaren Terminologie. Das Fehlen dieser Wörter bedeutet jedoch nicht, dass die Aussagen nicht zukunftsgerichtet sind. Diese zukunftsgerichteten Aussagen umfassen, ohne darauf beschränkt zu sein, Aussagen bezüglich der geplanten Transaktion, Pro-forma-Beschreibungen des kombinierten Unternehmens und seiner Geschäftstätigkeit, Integrations- und Übergangspläne, Synergien, Chancen und erwartete zukünftige Leistung. Solche zukunftsgerichteten Aussagen sind keine Garantie für zukünftige Leistungen oder Ergebnisse und beinhalten Risiken und Ungewissheiten. Die tatsächlichen Ergebnisse, Entwicklungen und Ereignisse können aufgrund verschiedener Faktoren, einschließlich, aber nicht beschränkt, erheblich von denen in den zukunftsgerichteten Aussagen abweichen zu den folgenden Faktoren: die Auswirkungen von Krisen im Bereich der öffentlichen Gesundheit wie Pandemien (einschließlich Coronavirus (COVID-19)) und Epidemien sowie alle damit verbundenen Unternehmens- oder Regierungsrichtlinien und -maßnahmen zum Schutz der Gesundheit und Sicherheit von Einzelpersonen oder Regierungsrichtlinien oder -maßnahmen Aufrechterhaltung des Funktionierens nationaler oder globaler Volkswirtschaften und Märkte; Die Fähigkeit von MSG Entertainment und MSG Networks, die Auswirkungen der COVID-19-Pandemie und die Maßnahmen, die Regierungsbehörden und bestimmte professionelle Sportligen ergriffen haben, wirksam zu bewältigen; das Eintreten eines Ereignisses, einer Änderung oder anderer Umstände, die zur Beendigung des Fusionsvertrags in Bezug auf die geplante Transaktion zwischen MSG Entertainment und MSG Networks führen oder auf andere Weise dazu führen könnten, dass die Transaktion nicht stattfindet; das Risiko, dass die Bedingungen für den Abschluss der geplanten Transaktion zwischen MSG Entertainment und MSG Networks möglicherweise nicht erfüllt oder aufgehoben werden, einschließlich des Risikos, dass Genehmigungen der Aktionäre von MSG Entertainment und MSG Networks, behördliche Genehmigungen und andere Genehmigungen nicht eingeholt werden müssen; das Risiko, dass die erwartete steuerliche Behandlung der geplanten Transaktion zwischen MSG Entertainment und MSG Networks nicht erreicht wird; potenzielle Rechtsstreitigkeiten im Zusammenhang mit der geplanten Transaktion zwischen MSG Entertainment und MSG Networks; Unsicherheiten hinsichtlich des Zeitpunkts des Vollzugs der geplanten Transaktion zwischen MSG Entertainment und MSG Networks; das Risiko, dass die vorgeschlagene Transaktion die aktuellen Geschäftspläne und den Betrieb von MSG Entertainment oder MSG Networks stört; die Fähigkeit von MSG Entertainment und MSG Networks, Schlüsselpersonal zu halten und einzustellen; unerwartete Kosten, Gebühren oder Aufwendungen, die sich aus der geplanten Transaktion ergeben; mögliche nachteilige Reaktionen oder Änderungen der Geschäftsbeziehungen von MSG Entertainment und MSG Networks aufgrund der Ankündigung, Anhängigkeit oder des Abschlusses der geplanten Transaktion; Wahrnehmung der Finanzgemeinschaft und der Ratingagenturen in Bezug auf MSG Entertainment und MSG Networks sowie deren Geschäft, Betrieb, Finanzlage und die Branche, in der das Unternehmen tätig ist; strategische oder finanzielle Vorteile oder Chancen, wenn die Fusion abgeschlossen ist; die Auswirkungen des Zusammenschlusses auf die Liquiditätsposition oder die finanzielle Flexibilität sowie andere potenzielle Auswirkungen der geplanten Transaktion; Möglichkeiten im Zusammenhang mit Sportspielen oder Wachstumsinitiativen; und die möglichen Auswirkungen allgemeiner wirtschaftlicher, politischer und marktbezogener Faktoren auf MSG Entertainment und MSG Networks oder die geplante Transaktion. Diese Risiken sowie andere Risiken im Zusammenhang mit der geplanten Transaktion zwischen MSG Entertainment und MSG Networks werden in der gemeinsamen Proxy-Erklärung / dem gemeinsamen Prospekt, die in der Registrierungserklärung auf Formular S-4 enthalten ist, bei der eingereicht wird, ausführlicher erörtert die SEC im Zusammenhang mit der geplanten Transaktion. Die Auswirkungen der COVID-19-Pandemie können zu derzeit unbekannten Risiken führen oder die mit vielen dieser Faktoren verbundenen Risiken verstärken. Darüber hinaus unterliegen die zukünftige Leistung und die tatsächlichen Ergebnisse anderen Risiken und Ungewissheiten, die sich allgemeiner auf die allgemeine Geschäfts- und Finanzlage von MSG Entertainment und MSG Networks beziehen, einschließlich derjenigen, die in den bei der SEC eingereichten Unterlagen von MSG Entertainment und MSG Networks einschließlich ihrer ausführlicher beschrieben sind entsprechende Jahresberichte auf Formblatt 10-K, nachfolgende Quartalsberichte auf Formblatt 10-Q und andere SEC-Einreichungen, einschließlich der darin enthaltenen Abschnitte mit dem Titel „Risikofaktoren“ und „Diskussion und Analyse der Finanzlage und der Ertragslage durch das Management“. Zukunftsgerichtete Aussagen gelten nur zum Zeitpunkt der Veröffentlichung, und MSG Entertainment und MSG Networks lehnen jede Verpflichtung ab, zukunftsgerichtete Aussagen zu aktualisieren oder zu überarbeiten, es sei denn, dies ist gesetzlich vorgeschrieben.

Did Madison Sq. Backyard Leisure Corp. (NYSE:MSGE) Insiders Promote Shares?

It’s not uncommon for companies to do well in the years after insiders have bought stocks. The downside of this is that there aren’t just a few examples of insiders dumping stocks before a period of poor performance. So before you buy or sell Madison Square Garden Entertainment Corp. ((NYSE: MSGE) You may want to know if any insiders bought or sold.

What is Insider buying?

Most investors know that it is perfectly permissible for company directors, such as directors, to buy and sell shares in the company. However, most countries require the company to disclose such transactions to the market.

We do not believe that shareholders should simply pursue insider trades. However, logic dictates that you should be careful about whether insiders are buying or selling stocks. For example a Harvard University study found that “insider buying generates unusual returns in excess of 6% per year”.

Check out our latest analysis for Madison Square Garden Entertainment

The past 12 months of insider trading at Madison Square Garden Entertainment

The insider’s biggest single sale in the past twelve months was when Senior VP Joseph Yospe sold $ 493,000 of shares at $ 77.47 per share. So it’s clear that an insider wanted to take some cash off the table, even below the current price of $ 87.32. We generally consider it negative for insiders to sell, especially if they did so below the current price, as it implies that they considered a lower price to be reasonable. Please note, however, that sellers can sell for a variety of reasons, so we do not know exactly what they think of the stock price. We find that the largest single sale was 61% of Joseph Yospe’s stake.

Madison Square Garden Entertainment insiders didn’t buy any shares in the past year. The following graph shows insider transactions (by companies and individuals) over the past year. If you want to know exactly who sold how much and when, just click on the graphic below!

NYSE: MSGE Insider Trading Volume April 19, 2021

If you’re looking to buy stocks that insiders are buying instead of selling, then you might love this free List of companies. (Note: Insiders bought them).

Does Madison Square Garden Entertainment have a high level of inside ownership?

For an ordinary shareholder, it is worth checking how many shares are held by insiders. The higher the proportion of insiders, the more likely it is that insiders will receive incentives to build the company over the long term. Madison Square Garden Entertainment insiders own approximately $ 28 million in shares. That corresponds to 1.3% of the company. While this is a strong but not outstanding level of inside stewardship, it is enough to indicate some consistency between management and smaller shareholders.

What could the insider deals at Madison Square Garden Entertainment tell us?

There has been no insider trading in the past three months – that doesn’t mean much. Still, Madison Square Garden Entertainment’s insider deals over the past 12 months are not very encouraging. The modest level of inside ownership is at least some consolation. While it is helpful to know what insiders are doing to buy or sell, it is also helpful to know the risks a particular company is facing. Every business has risks and we have discovered 1 warning sign for Madison Square Garden Entertainment You should know it.

Naturally, You could find a fantastic investment by looking elsewhere. So take a look at it free List of interesting companies.

For the purposes of this article, insiders are persons who report their transactions to the competent supervisory authority. We currently consider open market transactions and private sales, but not derivative transactions.

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This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.
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Six Flags Leisure Corp (SIX) This fall 2020 Earnings Name Transcript

Image source: The Motley Fool.

Six Flags Entertainment Corp (NYSE:SIX)
Q4 2020 Earnings Call
Feb 24, 2021, 8:00 a.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Good morning, ladies and gentlemen, welcome to the Six Flags Q4 and Full Year 2020 Earnings Conference Call. My name is Catherine and I’ll be your operator for today’s call. [Operator Instructions]

I will now turn the call over to Steve Purtell, Senior Vice President, Investor Relations.

Stephen R. Purtell — Senior Vice President, Investor Relations, Treasury and Strategy

Good morning and welcome to our fourth quarter and full-year 2020 call. With me are Mike Spanos, President and CEO of Six Flags and Sandeep Reddy, our Chief Financial Officer. We will begin the call with prepared comments and then open the call to your questions.

Our comments will include forward-looking statements within the meaning of the federal securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in such statements and the company undertakes no obligation to update or revise these statements.

In addition, on the call, we will discuss non-GAAP financial measures. Investors can find, both a detailed discussion of business risks and reconciliations of non-GAAP financial measures to GAAP financial measures in the company’s annual reports, quarterly reports and other forms filed or furnished with the SEC.

At this time, I will turn the call over to Mike.

Mike Spanos — President and Chief Executive Officer

Good morning. Thank you for joining our call. This past year has been exceptionally challenging as the world contends with a pandemic that has upended all of our lives. We are grateful for the first responders who keep us safe and for those who provide the services we all count on every day. I am proud that Six Flags has been able to make a difference in the communities we serve by hosting vaccination sites and testing locations and by donating food banks for those in need. I also want to thank our Six Flags team for rising to meet the challenges of the past year. They have continued to amaze me with their dedication, perseverance and resilience as we found innovative ways to safely entertain nearly 7 million guests as a preferred entertainment choice.

We established the highest standards of cleanliness and safety protocol as validated by local health officials and our guest feedback. We strengthened our liquidity position, significantly reduced our operating and capital expenditures and continue to innovate to safely and successfully reopen our parks. I’ve never been more proud of our company or more confident in our future.

In the fourth quarter, we continued to make significant progress on our transformation plan, which focuses on strengthening our core business. This plan is in full action and will fuel our new strategy to drive long-term profitable growth. Our new strategy is evolutionary, not revolutionary. We are going to do many of the same things we did in the past. We are going to do them better. Specifically, we will modernize all aspects of the guest experience and we will operate more efficiently as an organization.

As I stressed on our last call, our guests still love our roller coasters and funnel cakes. They just want a more seamless experience and we can provide them that through technology. We have divided our call into three parts. First, I will provide an overview of our recent operating performance and the strong demand trends we are seeing. Second, Sandeep will go into more detail about our financial results and give an update on the progress of our transformation plan. Finally, I will return to discuss our new strategy in more detail and review our three strategic focus areas.

We are pleased that our attendance has consistently improved since we first reopened our parks last year in the second quarter. I’d like to highlight a few reasons why we’re so optimistic about the upcoming season despite the challenging operating environment. First, on a comparable period basis, attendance trends in open parks have increased from 20% to 25% of 2019 levels in the second quarter to 35% in the third quarter to 51% in the fourth quarter. We have continued to see strong signs so far this year with attendance in open parks trending at consistent levels as the fourth quarter despite extreme weather conditions in Texas over the past couple of weeks.

Our guest surveys indicate that there is extraordinary pent-up demand for outdoor entertainment options close to home. And we believe that this widespread desire will drive attendance in the coming quarters.

Second, we are encouraged by the resiliency of our Active Pass Base which was approximately flat between the third quarter and fourth quarter of 2020. Even more encouraging, the number of members who retained their memberships after their initial 12-month commitment period, our most valuable guests, is actually up versus this time last year. We see the strong retention of our members even in the midst of a pandemic as a testament to our unique offering and our loyal following. Once our parks are back up and running at full capacity, we expect that our Active Pass Base will quickly ramp back up to previous levels and beyond.

Third, the pandemic encourage us to think creatively about how to maximize use of our parks. Both the creative solutions we found and the underlying dynamism of our team will continue to drive growth well past COVID. Our drive-through safari operators have separately gated attraction through the Thanksgiving weekend. Demand was so high that we will operate the drive-through safari again starting in March 2021 creating the longest season in the Animal Parks history. In the fourth quarter, we also offered drive-through or walk-through holiday experiences with our rides at four of our theme parks giving our guests the opportunity to celebrate the season with lights, beloved characters and festivities. These events proved so popular that we extended them into January. Going forward, we expect to continue many of these events, which will allow us to extend our operating season and give guests even more reasons to visit our parks throughout the year.

So while the environment remains fluid, we are encouraged by recent trends and are optimistic about both the short and long-term prospects of our business.

I will now turn the call over to Sandeep, who will give us some more details about the quarter and our transformation efforts. Sandeep?

Sandeep Reddy — Executive Vice President and Chief Financial Officer

Thank you, Mike and good morning, everyone. Results for the fourth quarter and full-year are not comparable to prior year because of temporary park closures, modified operations and attendance limitations. Total attendance for the quarter was 2.2 million guests, 338,000 of which came from the four parks that offered modified Holiday in the Park lights without rides and our drive-through safari in New Jersey.

Revenue in the quarter was down $152 million or 58% to $109 million as a result of a 65% decline in attendance. Sponsorship, international and accommodations revenue in the fourth quarter declined by $8 million due to the deferral of most sponsorship revenue and the suspension of the majority of our accommodations operations. Guest spending per capita in the quarter increased 17% driven by a 16% increase in admissions spending per capita and a 19% increase in in-park spending per capita.

The increase in admissions spending per capita was driven primarily by recurring monthly membership revenue from members who retained their memberships after their initial 12-month commitment period, as well as an increase in the mix of single-day guests. The increase in in-park spending per capita was primarily driven by a higher mix of single-day guests who tend to spend more per visit.

In addition, revenue from recurring monthly all-season membership products such as the all-season dining pass contributed to the increase. Attendance from our Active Pass Base in the fourth quarter represented 55% of total attendance versus 71% for the fourth quarter of 2019 demonstrating our success in attracting visitation of single-day guests.

On the cost side, cash, operating and SG&A expenses decreased by $30 million or 18%, primarily due to the following: first, cost saving measures, primarily related to reduced salaries and wages and lower Fright Fest and Holiday in the Park related costs due to the restricted operating environment and our organization redesign completed in October; second, lower advertising costs; third, savings in utilities and other costs related to the fact that several of our parks were not operating or were operating with a reduced product offering.

These cost savings were offset by a charge of $19 million due to an increase in legal reserves. The total amount recorded reflects managements estimate of the probable outcome of a legacy class action lawsuit. Excluding the litigation charge, cash costs decreased by $49 million or 29%. While we have taken measures to reduce our variable costs, we retained 90% of our full-time members and maintained their benefits in order to position ourselves to reopen parks as safely and as soon as possible. We reduced salaries of all employees by 25% during 2020 in order to preserve cash and our Directors also deferred their compensation for the last three quarters of 2020. Several of them, including our retiring and new Chairman, opted to take that compensation in the form of stock. Due to the improving outlook, we have restored all our employees to full salaries, with the exception of our CEO who opted to be restored in March. Although these actions offset our cost reduction efforts somewhat, we believe they were the right decisions for both the short and long-term.

By keeping our parks in a state of readiness, we were able to maximize the number of days we could operate. We also were able to keep our guests engaged, our employees motivated and our parks prepared for 2021.

Adjusted EBITDA for the quarter was a loss of $39 million which included a $19 million increase in legal reserves compared to income of $72 million in the prior year period.

Moving to full year performance. Attendance of 6.8 million guests was down 79% from prior year. Total revenue of $357 million was down 76% driven by lower attendance due to park closures, limited operations. Total guest spending per capita increased more than $6 or 14% due to a higher percentage of single-day guests and the positive revenue impact from members who have remained past their initial 12-month commitment period. Attendance from our Active Pass Base for the full year represented 56% of total attendance versus 63% for full year 2019.

Cash, operating and SG&A expenses were down 35% for the year due to cost savings measures taken immediately after we suspended operations. This cost reduction offset a portion of the revenue decline resulting in an adjusted EBITDA loss of $231 million. Fully diluted GAAP loss per share was $4.99, a decline of $7.10 primarily due to the lower attendance in our parks. We are making significant efforts to ensure the continued loyalty of our Active Pass Base. We extended the use of all 2020 season passes through the end of 2021. For our members, we added an additional month to their membership for every month they paid when their home park was closed. We are also rolling out a gift card option in the second quarter that members can choose to use in our parks in lieu of adding additional months to their membership.

Finally, all members have the option to pause their membership payments at any time through spring 2021. However, we have offered a menu of benefits including upgrades to higher membership tiers if they elect to continue on their normal payment schedule. As of today, only about 20% of current members have chosen to pause their membership. We anticipate that most of these paused members will return to active paying members once we reopen our remaining parks.

We are pleased with the retention of our very large Active Pass Base, which included 1.7 million members and 2.1 million season pass holders at the end of 2020. Our Active Pass Base was approximately flat compared to the end of the third quarter 2020 when we had 1.9 million members and 1.9 million season pass holders. Our Active Pass Base at the end of 2020 is down 51% compared to the end of 2019. While this is a significant decline, it is important to assess this in proper context. This decline is almost entirely due to lower sales of new season passes and memberships during 2020 as they were difficult to sell with so much uncertainty during the pandemic.

We also did not hold our usual pass sales events including our flash sale in September, which contribute significantly to our year-end Active Pass Base. That being said, because we extended our 2020 season passes through the end of 2021, our Active Pass Base, as of today, is down less than 10% versus the same day last year, which preceded the pandemic’s impact. We believe this represents a more meaningful comparison for our Active Pass Base heading into the 2021 operating season as we believe the season pass holders and members who were extended will visit our parks in 2021. Looking ahead, we expect the Active Pass Base trends to continue to improve as we start selling more new passes and memberships.

Deferred revenue as of December 31, 2020 was $205 million, up $61 million or 42% to prior year as we expect to recognize most of this deferred revenue in 2021. The increase was primarily due to the deferral of revenue from members and season pass holders whose benefits were extended through 2021, partially offset by lower new season pass and membership sales.

Total capital expenditures for the year were $98 million, a reduction of 30% from 2019. We expect our 2021 capital spend to be slightly lower than 2020 due to the carryover of new rides that were delivered and paid for, but not commissioned in 2020.

Our liquidity position, as of December 31, was $618 million. This included $460 million of available revolver capacity, net of $21 million of letters of credit and $158 billion of cash. This compares to a liquidity position of $673 million as of September 30, 2020.

Net cash outflow for the quarter was $56 million, representing an average of $19 million per month. As a reminder, our net cash outflow in the fourth quarter included partnership park distributions that represented an average of $7 million per month. Our fourth quarter cash flow benefited by $8 million from the sale of some excess land in New Jersey, which was not in our prior estimates. Without the landfill, our net cash outflow was $21 million per month, an improvement from our prior estimates of $25 million to $30 million.

We historically experienced significant cash outflow in the first quarter of the year as the majority of our parks are closed, yet, we incurred an elevated operating and capital expenditures to prepare for our parks opening in the spring. We estimate that our net cash outflow in the first quarter of 2021 will be higher than normal or approximately $53 million to $58 million per month. This is primarily due to three things. First, the normal seasonality of our business. Second, the timing of interest payments on our newly issued $725 million of senior secured debt. And, third, the pandemic-related limitations on our parks, including our California and Mexico parks that typically have year round operations.

We are striving to be cash flow positive for the balance of the year but this is largely dependent upon all our parks opening and attendance levels continuing to normalize.

I would now like to give you an update on the progress of our transformation plan. The headline is this. We are on track with our plan and we are highly confident in our ability to achieve our objectives. Executing the transformation plan will require one-time cost of approximately $70 million through 2021, including $60 million of cash and $10 million of non-cash write-offs. So far, $35 million has been incurred through the end of 2020, including the non-cash write-offs of $10 million. We expect to incur the remaining $35 million by the end of 2021. Approximately two-thirds of the spending in 2021 is related to investments in technology, beginning with the implementation of a state-of-the art CRM system.

We expect the transformation plan to unlock $80 million to $110 million in incremental annual run rate EBITDA once fully implemented and the company is now operating in a normal business environment. In 2021, we expect to achieve $30 million to $35 million from our organization redesign and other fixed cost reductions. In January alone, we realized more than $2 million of fixed cost value due to transformation, so we are well on track to achieve our estimated savings for 2021. We expect to ramp up to the full amount of benefits as attendance grows to 2019 levels.

We have already completed significant portions of the work that will benefit us in 2021 starting with our three cost initiatives. First, as we announced last fall, we reduced our full time headcount costs by approximately 10%. We are piloting new approaches to recruiting and training and moving to centralize some of our back office operations, such as finance, human resources and IT. Second, from a non-headcount cost perspective, we closed offices in New York City and West Hollywood and are in the midst of driving savings through centralized negotiations with a number of our vendors. Initial results are validating the projected value opportunities of these initiatives. Third, from a variable labor perspective, we are piloting our park level labor model, which will allow us to dynamically match stuffing with attendance levels throughout the day. We are conducting this pilot in our Texas parks and plan to roll it out to our remaining parks once we validate that the model is working effectively. We will realize the benefits of the model as attendance levels rise and we will keep you updated as our parks continue to open.

We are also making excellent progress on our revenue initiatives. Specifically, we are testing our new and improved menu assortment, pricing and merchandising strategy in Over Texas and Fiesta Texas. We expect to expand these initiatives to all other parks once they reopen. Our marketing team and media agency have incorporated the use of our media ROI tool and we plan to measure our ROI by park in the future. We continue to improve our website, which we rolled out last fall. We will soon make it available for our parks in Mexico and Canada.

Finally, we continue to make progress with our initiative to bring back single-day visitors, particularly those living far away enough from our parks where a season pass is not an attractive option. While we always prefer to sell a season pass or a membership because of the highest full season revenue, we believe there is a significant opportunity to capture additional attendance by targeting single-day visitors. We are already seeing a positive impact on our attendance and per caps as a result of this initiative.

As we announced last December, we are changing our method of determining our fiscal quarters and fiscal years, such that each fiscal quarter shall consist of 13 consecutive weeks ending on a Sunday. Each fiscal year shall consist of 52 weeks or 53 weeks and shall end on the Sunday closest to December 31. During the years when there are 53 weeks, the fourth quarter shall consist of 14 weeks. Because of this change, our first fiscal quarter of 2021 will end on April 4 instead of March 31 and the current fiscal year will end on January 2, 2022. The purpose of this change is to align our reporting calendar with how we operate our business and to improve comparability across periods.

Looking ahead, the operating environment remains unpredictable. So it’s difficult to project beyond the next three months. For that reason, we are not providing annual guidance at this time. We have announced opening dates for all our parks that are not already open with start dates beginning in March. That being said, we will remain flexible and we’ll be cautious to commit our capital, media and labor dollars only when we believe there will be a strong ROI.

We are extremely encouraged by the improvements in our attendance trends in the face of the pandemic, and we are very excited about the value creation that will come from implementing our transformation plan. We have more work to do, but I’m pleased by our progress so far. The whole company is intently focused on executing the transformation plan over the coming quarters.

Now, I will pass the call back over to Mike who will tell you more about our strategy.

Mike Spanos — President and Chief Executive Officer

Thank you, Sandeep. Our strategy is to drive profit from our core business because this will create sustainable value over time. We can grow our business from its core because we operate in a healthy industry that is benefiting from long-term secular trends as consumers increasingly choose to spend on experiences over objects. Even within out-of-home entertainment, regional theme parks are a compelling sector because they enjoy high recurring cash flow that has proven to be extremely resilient during downturns. These attributes have enabled our industry and our company to deliver strong revenue and earnings growth over time.

However, over the past few years, we did not evolve at the same pace as our guest expectations. As a result, we underperformed the industry from both a top-line and bottom-line perspective. To reinvigorate profitable growth, our team has reassessed every aspect of our business. We have developed an updated strategy to ensure that we constantly evolve so we not only meet but exceed our guests’ expectations, both now and for many years to come.

So here it is. Our strategy is to create thrilling memorable experiences at our regional parks delivered by a diverse and empowered team through industry-leading innovation and technology. Our vision is to be the preferred regional destination for entertainment and our mission is to create fun and thrilling memories for all. Our core values prioritize safety and the guest experience and drive accountability throughout the organization. Our values will result in a guest-centric culture; a commitment to prioritize the guest at every decision point.

Looking to the future, three key long-term focus areas will drive our strategy. First, modernizing the guest experience through technology; second, continuously improving operational efficiency; and third, driving financial excellence. For each of these focus areas, we will measure our progress based on certain key performance indicators.

For our first focus area, modernizing the guest experience through technology, our goal is to create a seamless and improved in-park experience with new applications of technology. First, we will provide opportunities for our guests to tailor the in-park experience to each of their individual preferences. Second, we will decrease wait times wherever possible, especially for our roller coasters where we are testing several virtual queuing and reservation systems. Third, we will facilitate our guests’ ability and desire to share their experience on social media. Finally, we will improve food and beverage quality and the overall appearance of our parks. In everything we do, we will prioritize the guest experience.

Here are a few highlights of our progress on this focus area thus far. Website redesign; our new simplified website has made it easier than ever for guests to find information about our offerings and to purchase tickets. This has led to higher sales conversion rates and higher per caps.

Customer relationship management; we are in the midst of developing a new CRM platform that will allow us to understand and predict our guests’ preferences from the moment they visit our website to the moment they leave the park. Based on this consumer data, we will begin tailoring our offerings to their preferences and customize their experiences so they get exactly what they want when they want it.

Contactless security; our guests no longer have to wait in long lines or have their bags searched to enter our parks. They now walk seamlessly through our contactless security systems which scans them for anything unsafe and also measures their temperature to ensure safe environment.

Cash card kiosks; our domestic parks that opened for normal operations in the fourth quarter have offered any guests who only have cash the ability to obtain cash cards from kiosks throughout the parks in order to facilitate electronic transactions. This improves hygiene within our parks, while also speeding up transactions and eliminating cash handling costs.

Mobile dining; our guests no longer have to wait in long lines to order food. Instead they can choose to order on their smartphones and pick up their food when it is ready. Mobile dining has also led to higher average checks.

For this first focus area of modernizing the guest experience through technology, the key performance indicators will be attendance and revenue.

Moving on to our second focus area; continuously improving operational efficiency, we will deliver products and services in a more cost-efficient manner, including effectively deploying park-level labor, leveraging our scale of increased purchasing power and optimizing our ride portfolio. We are also focused on increased guest throughput on our rides, as well as our food and beverage locations. As Sandeep mentioned, we have moved quickly to streamline our organization and reduced other fixed costs and we expect to realize $30 million to $35 million of fixed cost savings in 2021.

For the second focus area; continuously improving operational efficiency, the key performance indicator will be operating expense ratio, which is the ratio of our operating expenses relative to our revenue. We will begin to measure this ratio once we return to a more normal business environment.

Finally, our third focus area is driving financial excellence. We expect our transformation initiatives to create a new adjusted EBITDA baseline of $530 million to $560 million once our plan is implemented and we are operating in a more normal business environment. After we achieve this baseline, we believe our strategy will allow us to grow revenue at low-to-mid single-digits, in line with the overall out-of-home entertainment industry. Combined with our annual productivity initiatives, we will continue to invest back in our parks and improve margins to accelerate annual adjusted EBITDA growth to a range of mid-to-high single-digits. In addition, we will be disciplined in the way we allocate capital to ensure we deliver sustainable earnings growth.

We have developed the following capital allocation priorities to guide our path toward financial excellence. First, invest in our base business to facilitate profitable and sustainable growth. this includes investments in our park infrastructure, in technology for our parks, and in systems that help us oversee our park operations. This also includes investments in new rides and attractions, as well as other in-park offerings such as food and beverage. We expect to maintain our annual capital expenditures at 9% to 10% of revenue. Second, use free cash flow to pay down debt and return our net leverage ratio to between 3 and 4 times. Third, once we are within our targeted leverage range, consider strategic acquisition opportunities to further build our regional network of parks. Finally, if there are no acquisition opportunities that meet our strategic and financial return thresholds, we will return excess cash flow to shareholders via dividends or share repurchases.

For this third focus area of driving financial excellence, the key performance indicator will be adjusted EBITDA. We have a resilient team and a resilient business. Our team’s focus for 2021 is to safely open all of our parks and ensure that we successfully execute our transformation plan.

I look forward to updating you on our continued progress in the months ahead.

Catherine, at this point, can you please open the call for any questions?

Questions and Answers:

Operator

[Operator Instructions] Your first question comes from the line of Steve Wieczynski with Stifel.

Steve Wieczynski — Stifel — Analyst

Hey, guys, good morning. So, Mike, I guess, first of all, when you guys talk about becoming potentially cash flow positive over the last nine months, can you help us understand maybe what is going into making that statement? I guess what I’m trying to get at here is, is that assuming kind of park operations are — everything is basically up and running and still running at some kind of capacity restraint or are there other things that’s kind of embedded in there?

Mike Spanos — President and Chief Executive Officer

Steve, how are you doing? Good morning to you. And I’ll take the first part of it and Sandeep can go from there. I think the first thing is we are seeing consistent and continued improving signs of pent-up demand across all the geographies and we’re ready to operate all of our parks starting in the spring of 2021. As far as right now, which parks are open and not open that go into that, as we saw last week, we got the green light to open up our water park in Mexico, Oaxtepec, February 27 and we got the green light in New York as well. We are still working collaboratively through California, Massachusetts, Illinois and Mexico and Montreal. But remember, it’s a volatile environment as far as where we’re at and we continue to work with the cities and states.

Sandeep has been clear in the past that the assumptions to get to cash flow neutral assumes that we’re roughly at about a 65 to 75 index to 2019 attendance levels. And that’s the guard rail. But again, we’ll continue to keep you posted. So Sandeep anything there I missed?

Sandeep Reddy — Executive Vice President and Chief Financial Officer

Yeah, I think just to be clear on the assumptions. What we’re saying is, once we get past Q1, for the remaining nine months, we are looking to be cash flow positive. It’s to, definitely an extent, dependent on the park opening schedule. We’re ready to open in spring 2021. It’s more a question of getting authorization. And I think if you go back to look at our historical cash flows, the second quarter and the third quarter typically are significant cash generators and if you think back to what happened last year, especially the second quarter and third quarter, we didn’t really have that much of attendance because of the closure for the most part of the second quarter and limited operations in the third quarter. So I think, yeah, it is dependent for sure on the opening cadence, but I think we feel that we can get to positive cash flows if it actually works to what we’re expecting.

Steve Wieczynski — Stifel — Analyst

Okay, got you. Thanks, guys. And then second question, Mike and Sandeep, you guys saw a nice uptick in the fourth quarter in terms of the single-day guest, so to speak, and I’m just wondering, do you have any more data from — meaning, from where did those folks come from? And I guess what I’m trying to get at here is, are these folks that were potentially on a path before and dropped off the paths or are these folks that essentially have never even really visited one of your parks before?

Sandeep Reddy — Executive Vice President and Chief Financial Officer

Yeah, I think on this one, Steve, we are extremely pleased on the single-day ticket strength that we actually have been seeing. And it’s actually not just the fourth quarter. If you go back to Jan, Feb of 2020 before the pandemic hit, we were already seeing significant single-day ticket improvement in terms of penetration and growth. We were up 38%, I think, in the first couple of months of 2020. And I think, historically, we’ve actually probably in the last few years, lost a bit of traction on single-day tickets and this has been an initiative that we actually looked to embrace in the early part of 2020. And, in fact, when we went and talked about the transformation plan back in October, we identified the pricing and promotion initiative as one of our key prongs, and this is a key component of it, because we are looking to drive a mix improvement in our portfolio, but it’s an and, it is not an or.

So these single-day ticket guests are intended to be incremental to the Active Pass Base that we have and I think we feel very pleased that we’re getting traction on this — on the single-day tickets side and what’s really good is, we are actually pleased about our Active Pass Base because we’ve been able to retain — our Q3 to Q4 was relatively flat. And frankly, going back to Q2, Q2 was relatively flat with Q3. So it’s been pretty consistent over the six-month period in terms of the Active Pass Base in total. There has been a bit of a trade between members and season pass holders.

But overall, we’re really pleased about it and in the prepared remarks, I told you, because we extended the season pass holders from 2020 to the end of 2021, given the pandemic, if we look at it today, we’re actually down less than double-digits on the Active Pass base and these season pass holders and members who have been given extensions are going to come and visit our parks and they will definitely drive attendance, and in addition to that, incremental revenue on in-park spend, depending on the type of [Indecipherable]. So overall we feel really good about the single-day ticket attendance being incremental to the Active Pass Base and accretive to our overall attendance long term.

Steve Wieczynski — Stifel — Analyst

Okay, great, thanks, guys. Appreciate it.

Operator

Your next question comes from the line of David Katz with Jefferies.

David Katz — Jeffries — Analyst

Morning, everyone.

Sandeep Reddy — Executive Vice President and Chief Financial Officer

Morning.

David Katz — Jeffries — Analyst

And thanks for all of the detail. When we look forward to this notional or aspirational kind of normal year again, that we all wish for, that you’re basing the $530 million to $560 million EBITDA on, can you talk about the mix of membership/pass members coupled with kind of the spend per capita and how you’re assuming that mix evolves within that kind of $530 million to $560 million, please? Because we can sort of think out loud both ways where perhaps there is less growth in the pass base or membership base and more of it coming from the spend per capita or we could probably argue with the other way too.

Sandeep Reddy — Executive Vice President and Chief Financial Officer

David, great question and I think if you think back to what I just talked about in the earlier answer on single-day ticket penetration in the Active Pass Base, look, I mean, our per caps have been extremely strong as we’ve gone through this past year and the fourth quarter in particular and I think as you have been seeing the sequential acceleration in the per caps within Q3 and Q4, it was driven by a few things. One is, our members on core parks with 12-month commitment period contributed definitely to those admissions per caps growing. In addition, the single-day ticket holders contributed to the growth in per caps. The single-day ticket holders actually spend more per visit in the parks when they come in. So all of that actually contributed to the per cap increase.

However, we do have a good strong retention of the Active Pass Base and I think what we are looking for is the and not the or. So we want to basically layer these single-day tickets on top of the Active Pass Base and as we move into the normal operating seasons, we would like to actually rebuild the Active Pass Base as we go through the year to have a much more balanced approach between single-day ticket and Active Pass Base. It’s not trading of one for the other, it’s just that I think we were further behind on single-day tickets and so the growth was actually a bit higher in the initial phases, but over time, it should be very balanced. And so the revenue mix that should come from that should reflect that balance and the per caps will adjust accordingly.

David Katz — Jeffries — Analyst

And if I can follow that up, right, with what Mike laid out is sort of a flow-through of 1 to 1.5 times growth on that mid single-digit top-line. How does the evolving mix sort of slide the outcome, right, the profit outcome within that? Presumably the more single-day visitors you have, the closer you can get to the top end of that range. Is that a fair assumption?

Sandeep Reddy — Executive Vice President and Chief Financial Officer

Yeah, I would say that — let me just step back a little bit, David, and just say that overall, we’ve been talking about mid-to-high single-digit improvements in EBITDA growth. It is based on productivity improvements, which include elements of the cost structure that we are investing in, as well as the revenue growth levers. And so what I would say is the mix impact is part of our revenue growth plans and so it’s embedded, but I wouldn’t necessarily say that it’s going to hurt us or help us one way or the other. The key is to maintain the balance at all times and we will continuously evaluate if the balance is out of kilter and push one side or the other a little bit more.

But the key over here is we’re looking to make sure that we deliver the option the guest looks for because we can look at both our pricing and promotions approach on the transformation initiative to understand if they are more inclined to go for a single-day ticket because of the cohort they belong to, like Mike described. And — or if they want to basically trade up and buy a season pass or a membership and that balance is something we’ll continuously reevaluate. As part of the transformation, we’ve invested in this revenue management team that is now in place and you have seen the results, you’ve actually seen the results in Q4, there’s more of it that should come as we continue down this year.

David Katz — Jeffries — Analyst

Perfect, thank you, all.

Sandeep Reddy — Executive Vice President and Chief Financial Officer

Thank you.

Mike Spanos — President and Chief Executive Officer

Thanks, David.

Operator

Your next question comes from James Hardiman with Wedbush Securities.

James Hardiman — Wedbush Securities — Analyst

Hey, good morning, guys. Really appreciate all the color, particularly, with respect to the longer term outlook, the longer term plan, obviously, we’re in the midst of some pretty unprecedented disruption. But I wanted to continue down this path of what things look like sort of post-pandemic, particularly, on the capital priority side. As you sort of laid out your priorities, it seems like M&A is a higher priority than dividends and share repurchases. Maybe just help us think about why that’s the case. Are you seeing — do you believe that they are better returns sort of in a post-pandemic environment on M&A than dividends and share repos? And then the previous management team obviously had a pretty well-defined strategy for acquiring small parks, water parks, specifically, at the local level. Do you see your M&A strategy as a continuation of that or something that’s new and different in some way?

Mike Spanos — President and Chief Executive Officer

Well, good morning, James. What I would start with is our focus is on our core business and that’s the focus. We want to absolutely leverage transformation to drive real operational effectiveness in our core business and I start there. Second, on M&A, as you know, it’s always been our policy not to comment on that topic, but I want to go to your question as well is we — as we said in our prepared remarks, our first priority, consistent with transformation and our focus on the core business and delivering sustainable value creation there, is to invest in the base business to facilitate profitable sustainable growth out of rides, attractions, other in-park areas. That is absolutely going to be the focus. Second is to use that free cash flow to pay down the debt, get that net leverage ratio to between 3 and 4. And then we’ll consider opportunities on the M&A front and any excess cash will definitely return in terms of dividends and share repurchases. We’re always going to look at the return aspect, but that is the priority. But I think everybody should take away, the focus is the base business here.

James Hardiman — Wedbush Securities — Analyst

I definitely get that. I guess to the question of the previous water park acquisition strategy, is that sort of something we should think about as the previous management team and not continued under your leadership?

Mike Spanos — President and Chief Executive Officer

No, what I would say is we’ve been clear on this, I think with any M&A, it’s always going to be about, is it strategically relevant? Does it deliver shareholder value? And do we think we have the capability and capacity to deal with it? And I think we’re going to look at anything in that framework.

James Hardiman — Wedbush Securities — Analyst

Got it. And then my second question. I wanted to talk about wages, which are obviously an important topic, just given the momentum that a federal minimum wage seems to be gaining here, who knows, obviously, that wouldn’t — presumably wouldn’t happen over overnight, if at all. But just curious where you stand in terms of sort of a weighted average basis in terms of your associates at your parks. And maybe as I think about this $530 million to $560 million baseline EBITDA number, sort of what’s assumed in there? Is there potentially some downside if we do see a ramping up of the minimum wage? Thanks.

Mike Spanos — President and Chief Executive Officer

Sure, sure. Yeah, it’s a really good question, James. Let me start with this is clearly an area that we’ve been focused on in managing for quite some time. As you remember in our earnings baseline, as part of our 2020 earnings guidance prior to COVID, we already reflected minimum wage risk in seven states, which was about approximately $20 million. And so we know and we knew that was an issue, we got ahead of it. So that’s why our second strategic focus area is about continuously improving our operating efficiencies. It’s a major part of the strategy. Now we also believe conversely, there is going to be potentially bigger labor pools out there as well because there is a higher unemployment rate, but I think the last thing I would say on this is, that’s the whole reason we engaged on park-level labor as part of transformation. We knew we had to get ahead of this. So we’re going to continue to monitor it and stay close to the states, but we do think we got the right tools in place with transformation and we also think that our earnings baseline before the pandemic reflected that. Sandeep anything I missed there? Apparently not. So, pick the next question, who’s next in the queue. And one question please, just because I know we’ve got a number of other folks in the queue.

Sandeep Reddy — Executive Vice President and Chief Financial Officer

Sorry, Mike, I actually have been on mute. Just to answer the question that you asked specifically, James, on what’s assumed in our EBITDA goal of $530 million to $560 million, we have assumed both the headwind from minimum wage and also the offset from productivity gains from the park-level labor model that Mike just talked about. So that is already assumed in our EBITDA goals.

James Hardiman — Wedbush Securities — Analyst

Got it. Thanks, Mike. Thanks, Sandeep.

Mike Spanos — President and Chief Executive Officer

Thanks, James.

Operator

Your next question comes from the line of Tyler Batory with Janney.

Tyler Batory — Janney Capital — Analyst

Good morning. Thank you. I wanted to circle back on pent-up demand, specifically this year. And in the prepared remarks, you cited some guest survey data but just interested if you can give us a better sense of what indicators you’re looking at that’s informing your opinions on pent-up demand for the second half of this year, whether it’s group bookings or the pass sales. Just trying to get a sense of what’s most important there and what those indicators are telling you about what demand might look like in the summer season.

Mike Spanos — President and Chief Executive Officer

Yeah, good morning, Tyler. I hope you’re well. So I’d start with the broad umbrella of — I think it’s fantastic that as an industry and we at Six Flags have — we’ve entertained nearly 7 million guests and I believe that our safety protocols and standards have created a significant trust lever with our guests, both in terms of recruiting guests, as well as retaining. This gets to the single-day ticket and the retention of the Active Pass Base. So I’d start there because people feel confident in the safety umbrella we give them and I think that is a big deal for the industry and it’s a big deal for us in a positive way. Specifically, to your question, first, we’re seeing very consistent demand across all geographies, which I think, number one, is a really positive sign. Second, as Sandeep mentioned, we continue to see really good attendance trends from 35% in Q3 of 2019 to 51% in Q4 and similar levels year-to-date that includes what has been two weekends of tough weather in Texas. We’re also, as part of that, seeing guest satisfaction surveys now equal or better in our open parks in 2019. We think that’s a very good positive as guests are understanding the safety protocols.

The other item, obviously, is the resilient Active Pass Base. We think that’s a big positive that we’re roughly flat really from actually quarter two and we still have the opportunity with our Active Pass Base to revamp once we reopen up the parks. And then lastly, when we look at our surveys, I mentioned this on the last call, we’ve seen an improvement. As we’ve been surveying guests, we’ve seen that 97% of those surveyed want to visit in a COVID-free environment. Last call was approximately 93% and we’re seeing 96% of guests who are saying they want to visit immediately after taking a vaccine. And as part of that, we are seeing data that people want this close-to-home fun, safe experience and we are seeing data that says people do have more vacation days and they have saved up money, but they want to be able to enjoy it in a safe, fun, close-to-home experience.

And then we’ve also been watching the overseas parks as well. And we’ve seen some good trends there. So we’ll continue to monitor it. We stay close to our guests every week, but we’re ready to go. We’re ready to operate in 2021.

Tyler Batory — Janney Capital — Analyst

Okay, very good. I appreciate the color. I’ll leave it there. Thank you.

Mike Spanos — President and Chief Executive Officer

Thank you.

Operator

Your next question comes from the line of Ian Zaffino with Oppenheimer.

Ian Zaffino — Oppenheimer — Analyst

Hey, great. I’ll kind of touch on that minimal wage question again on the revenue side, maybe just kind of give us an idea of what your demographics are as far as people who are showing up to the parks. Does a boost in minimum wage actually put more dollars into your visitors’ pockets or are you planning for just a higher demographic? Any type of color you could give there would be great.

Sandeep Reddy — Executive Vice President and Chief Financial Officer

Ian, you’re right because I think to the extent that there is minimum wage increases in certain of our demographics where we operate, that has got a halo effect on the revenue side as well. I think we’ve talked about this in the past too. But that is a factor and I think that’s part of what plays into the assumptions that I talked about on the $530 million to $560 million adjusted EBITDA goal that we’ve articulated previously and reiterated today. So it’s all in there in the assumptions. The headwind on wage is definitely in there and it wasn’t there back when we guided for 2020. And also the assumptions of improving productivity are in there because of park-level labor. And on the revenue side, the assumptions include the assumptions of benefits from a more disposable income available in those demographics too. So it’s all in there and it’s embedded in the EBITDA goal of $530 million to $560 million.

Mike Spanos — President and Chief Executive Officer

And just quickly to add, I mean we’re roughly — specific, were roughly half teens and young adults, and roughly half families and children. And to Sandeep’s point, we think it absolutely helps in that regard, put more money in their pockets.

Ian Zaffino — Oppenheimer — Analyst

Okay, great, thank you very much.

Operator

Your next question comes from the line of Eric Wold with B. Riley.

Eric Wold — B.Riley FBR Capital Markets and Co. — Analyst

Thank you and good morning. I know obviously from the way you talked about today, you’re focused on the core business, improving base and operations and getting those ramped back up. But can you maybe provide just an update as to where you are with potentially restarting the China park development? Have you been in discussion with any potential new partners there since that fell out a year or so ago? And is there a timetable as to kind of when you would want to get that restarted or potentially it becomes maybe too late on that front?

Mike Spanos — President and Chief Executive Officer

Morning, Eric. So we’ve been clear with this and I have stated this in the past, we obviously are — from an international standpoint, we are focused on Qiddiya in Saudi Arabia. And we are excited about the future there. And we do not anticipate any revenue or operations from China in ’21 or moving forward.

Eric Wold — B.Riley FBR Capital Markets and Co. — Analyst

Got it. Thank you.

Operator

Your next question comes from the line of Stephen Grambling with Goldman Sachs.

Stephen Grambling — Goldman Sachs — Analyst

Hey, good morning. Very quick follow-up on the transformation plan. I think last quarter you gave some big buckets on the fixed cost savings. Can you Just confirm the total amount of $40 million to $55 million hasn’t changed and what are the big buckets being achieved this year versus next?

Sandeep Reddy — Executive Vice President and Chief Financial Officer

So I think we talked about a $30 million to $35 million of value being achieved in 2021, which is consistent with what we said last time in October. And I think for what we’re expecting is the $40 million to $55 million is achieved in 2022. And I think that’s the fixed costs, independent of attendance. The total transformation value as we said was $80 million to $110 million with the remaining part of the $40 million to $55 million coming from a combination of the revenue initiatives that we outlined and the park-level labor initiatives that we talked about earlier as well. So, no change really in what we previously communicated. I think from a proof point standpoint, we’re just a month into the year and as I mentioned in the prepared remarks, we’ve already realized over $2 million in the first month of the year.

So we feel pretty well on track to getting the fixed cost savings that we’ve actually outlined for the year. And it’s really coming from a couple of major areas that we’ve outlined in the previous call, which was the org redesign, which we executed in Q4. And in addition to that we also have the procurement effort on non-headcount, which is going to be an additional element that’s going to drive it. So pretty confident of the $30 million to $35 million and we’re going to continue to update you every quarter as we go along on progress that we’re making.

Stephen Grambling — Goldman Sachs — Analyst

And so, just to be clear, it sounds like some of the park-level labor expenses like the system to better forecast attendance and labor needs, maybe that will evolve and be what kind of builds on this into next year.

Sandeep Reddy — Executive Vice President and Chief Financial Officer

Yeah, you’re exactly right. So park-level labor is a variable component. So the $30 million to $35 million is fixed costs, independent of attendance. Right? So the park-level labor will flex based on the attendance and also based on when we implement it. The revenue initiatives should also be happening depending on where the attendance basically goes. So we’re going to basically update you on the fixed piece and the variable piece as time goes along. So you know how much of transformation value has been realized.

Stephen Grambling — Goldman Sachs — Analyst

Understood. Clear. Thank you.

Sandeep Reddy — Executive Vice President and Chief Financial Officer

Okay.

Operator

Your next question comes from the line of Paul Golding with Macquarie Capital.

Paul Golding — Macquarie Capital — Analyst

Yeah. Thanks so much. Mike, you mentioned earlier in the call that you’re testing the virtual queuing and reservation system for some rides. I was wondering just what the outlook is on capacity this year, any limitations and, I guess as an indication of that, whether you’re going to maintain the reservation system to get through the front gate. And then I have a quick follow-up.

Mike Spanos — President and Chief Executive Officer

Yeah, good morning, Paul. How are you? First, on your latter, we have the ability to continue the reservation system and we have used it where we’ve needed to use it based on local, state officials, as well as where we’ve been able to flow capacity and we’ve made decisions park-by-park, based on the local guard rails. As far as capacity in total, to your former question, first, we’re very confident. We have ample capacity to meet pent-up demand and satisfy our safety standards. Remember, the same thing I would stress again, is we’re outdoor, we’re spread over dozens to hundreds of usable acres which allows us to reach high levels versus our theoretical max capacity, while still satisfying social distancing.

And then the third, which you alluded to, when you look at our technology and safety protocols we put in place in 2020, it’s really allowed us to, even beyond the pandemic, control the flow capacity and safely increase throughputs. From the website to going through security, you are not even touched. And I think, lastly, just as a reminder, we only reach our max capacity on roughly a handful of days. So we average about 50% of theoretical max capacity on a pretty typical year. So all that combined with why we’re excited about the progress of vaccines, we feel very good about our capacity to meet that pent-up demand across all geographies. And, as I said, we’re ready to operate.

Paul Golding — Macquarie Capital — Analyst

Thanks for that color. And then just a quick follow-up on the earlier question around international. I know you were saying that you don’t expect to see anymore revenue or EBITDA to come from licensing in China. In parts of the world where maybe COVID wasn’t as protracted, do you still see an opportunity for maybe any new deals where the appetite for mass gatherings may be higher than it is currently in the States?

Mike Spanos — President and Chief Executive Officer

Relative to — you mean in terms of pent-up demand or business opportunity? Just so I’m clear on your question, Paul.

Paul Golding — Macquarie Capital — Analyst

Yeah. Just business opportunities because we know that the China arrangement — that we shouldn’t expect to see anything further come from that. So I guess the question is maybe you…

Mike Spanos — President and Chief Executive Officer

Got it.

Paul Golding — Macquarie Capital — Analyst

[Speech Overlap] opportunities or you’re still open to other opportunities since COVID was not as severe in some other parts of the world.

Mike Spanos — President and Chief Executive Officer

Yeah. Very clear. What I would reinforce again is our focus is delivering profit from our core business. And again transformation is all about driving operational effectiveness of that core business, and that’s going to be our focus.

Paul Golding — Macquarie Capital — Analyst

Got it. Thanks so much, Mike, appreciate it.

Mike Spanos — President and Chief Executive Officer

Yeah, you bet.

Operator

Your next question comes from the line of Alex Maroccia with Berenberg.

Alex Maroccia — Berenberg Capital Markets — Analyst

Hi, good morning, guys. Thanks for taking my questions. Based on some of the technology and park improvements you outlined, it sounds like many of these could be related to the pandemic or at least accelerated by it. And here, I’m talking about contactless security, mobile dining and the cash kiosks, all due to their hygienic benefits. How will you be measuring the return on the investments, both financially and then in terms of customer satisfaction going forward?

Mike Spanos — President and Chief Executive Officer

Alex, I think it’s a really good point. What — I think, first, the pandemic helped us accelerate what we needed to do to be a more guest-centric culture. And as we looked at even the pre-pandemic, as I said in the last call, our guests love our parks, they love our roller coasters, they love our funnel cakes, they just want an easier experience and part of that is just modernizing that guest experience through technology, which is one of our key strategic focus areas. So our measure, our KPI is going to absolutely be attendance and revenue. As we look at that, it should — we should be seeing top-line momentum as we modernize the guest experience through technology and we will obviously continue to look at guest satisfaction surveys and other levels of guest feedbacks. So very consistent, as I said, albeit, attendance and revenue will be the key KPIs.

Alex Maroccia — Berenberg Capital Markets — Analyst

Right. That’s great. Thank you, Mike.

Mike Spanos — President and Chief Executive Officer

Thank you.

Operator

Your next question comes from the line of Mike Swartz with Truist Securities.

Michael Swartz — Truist Securities — Analyst

Hey. Good morning, guys. Just maybe for Sandeep, I think you said that, in your prepared remarks, that each park that was open in 2019 was also open in the fourth quarter of 2020 and I may have missed it, but did you give us the operating days in the fourth quarter versus — of ’20 versus ’19?

Mike Spanos — President and Chief Executive Officer

Yeah…

Sandeep Reddy — Executive Vice President and Chief Financial Officer

So, Mike — sorry, go ahead.

Mike Spanos — President and Chief Executive Officer

I got it, Sandeep. So we’ve been focused on — obviously, on open parks. And as you know, not all operating days are created equal. The way you want to think about it for the fourth quarter is, first, for the days that the parks were open in 2020, comparable operations in 2019 represented approximately 70% of the 2019 total attendance. That was an increase from about 60% at the end of the third quarter. So we feel good about that. We think that’s also another sign of good pent-up demand. Remember, in those numbers, that includes Mexico. Mexico was open part of the quarter but we ended up closing it early. And it also includes the fact we have four additional parks that offer drive-through or walk-through Holiday in the Lights experiences and also the drive-through safari that was open for a portion of the quarter. So — and I think we’re also clear on — in the table — releases, but we had 18 parks, one water park in the Great Escape Lodge were open during that quarter.

Michael Swartz — Truist Securities — Analyst

Okay, that’s helpful. And is there maybe a way to think about that kind of comparable ops percentage for ’21 and maybe how that flows throughout the year? I know first quarter will be constrained but how does that look as we progress through the year?

Mike Spanos — President and Chief Executive Officer

It’s a good point. I mean, we’ve been — it’s, obviously, as Sandeep said, it’s really a volatile environment. And we’ve been very focused on open parks and getting the parks reopened in terms of that focus because we think that’s where it is. So our focus is about getting all the parks open by the spring of 2021 and that would be the guidance I would give you. That is the true north for us is to continue to leverage our safety protocols. We’re collaboratively in those places, we don’t have set dates and to get all the gates open to drive that positive performance, balance of the year.

Michael Swartz — Truist Securities — Analyst

Okay, great. And maybe just follow — sorry, go ahead, Sandeep.

Sandeep Reddy — Executive Vice President and Chief Financial Officer

Yeah, just to add on. I think, obviously, once we get open especially across 2021, we should be going to normal operating schedules. So what you’ve seen historically is what you would expect to see if the parks are open. So that’s the objective.

Michael Swartz — Truist Securities — Analyst

Okay, that’s helpful. And maybe just related to that talk about marketing spend, the cadence of marketing spend and maybe how does your marketing strategy compare in 2021 relative to maybe when we were — had normal operations back in 2019?

Sandeep Reddy — Executive Vice President and Chief Financial Officer

Yeah. And I think one of the things that we talked about is, we’re going to be very choiceful about how we deploy our media and which is the effect of the marketing spend that we’re incurring. And I think we’re just [Indecipherable] look at what is happening actually with the pandemic and the pandemic trajectory. So depending on when things become much more clear in terms of pent-up demand being leveraged in a much more significant way, we’ve historically done a lot of advertising and marketing around the time we actually sell our passes, and so that that typically has been done spring and fall. But I think in this year, we could look at it as spring, summer and fall and we will time our spend to make sure we are driving that demand and accelerate it.

Michael Swartz — Truist Securities — Analyst

Okay, great. Thank you.

Sandeep Reddy — Executive Vice President and Chief Financial Officer

Sure.

Operator

Your next question comes from the line of Brett Andress with KeyBanc.

Brett Andress — KeyBanc Capital — Analyst

Hey, good morning. Just to be clear on the last point on the operating days. So assuming all of the parks open, how many operating days are you planning for right now compared to 2019? I mean, is this as simple as just taking a normal calendar, backing out 1Q and then maybe adding some of the extensions you talked about earlier? I’m just looking for kind of a ballpark, as you said today.

Sandeep Reddy — Executive Vice President and Chief Financial Officer

Yeah, Brett, I would say, I’ll go back to the last part of what I answered on the calendar. So once we get past spring ’21 and we could reopen, go back to normal operating calendars starting Memorial Day, give or take, sometime in the second quarter. So that is what the expectation is. So if you go back and look at 2019, that should give you a pretty good indication of what the operating calendar would look like. The additional, the add-ons, I would say, that are incremental to that are the safari that became a stand-alone experience, some of the holiday events that we did, which were incremental. But I think that’s the way you would think about the operating calendar.

Brett Andress — KeyBanc Capital — Analyst

All right, thank you for the clarity.

Mike Spanos — President and Chief Executive Officer

Yeah. And Brett, just the last thing I’d add. The reason, and we’ve been clear on this, is just they’re just not created equal as you know. So that’s why we’re not drilling into that as much as just focusing on the calendar of the parks.

Brett Andress — KeyBanc Capital — Analyst

Yeah, understood. Okay, thank you.

Operator

Your last question comes from the line of Ryan Sundby with William Blair.

Ryan Sundby — William Blair — Analyst

Yeah, hey, thanks for taking my question. Mike or Sandeep, just I guess to follow up a little bit on the last question. When you look at adding something like West Coast Customs Car Show at Magic Mountain or even just some of the way you’ve modified operations to do more drive-through or walk-through of the parks, has there been any change in view, I guess, internally on the kind of programing or types of activities your parks need to support it? I guess what I’m asking here is, just given some of the popularity, is there more demand for using the parks than you realized kind of pre-pandemic?

Mike Spanos — President and Chief Executive Officer

Ryan, it’s a good question. I think what you’re seeing is a testament to how we have and will continue to lead innovation and that’s a driver of being the regional entertainment choice and it’s going to be — we’re going to always focus on our core assets and we’re going to focus on our core offerings and if our guests are looking for a product, we can bring it to them safely and it’s cash flow positive on a variable basis, we’re going to do it because we got a great set of team members that can do it. So we will continue to be innovative and listen and learn from our guests and that’s a big part of the guest-centric culture.

Ryan Sundby — William Blair — Analyst

Perfect, thanks, guys.

Operator

And there are no further questions at this time.

Mike Spanos — President and Chief Executive Officer

Thank you, Catherine. For everyone, again, I want to thank you for your continued support. Our guests are eagerly looking for a memorable experience that is fun, safe, convenient, affordable and close to home; something Six Flags is uniquely able to offer. Six Flags is truly the preferred regional destination for entertainment, creating fun and thrilling memories for all. Take care and please stay safe.

Operator

[Operator Closing Remarks]

Duration: 74 minutes

Call participants:

Stephen R. Purtell — Senior Vice President, Investor Relations, Treasury and Strategy

Mike Spanos — President and Chief Executive Officer

Sandeep Reddy — Executive Vice President and Chief Financial Officer

Steve Wieczynski — Stifel — Analyst

David Katz — Jeffries — Analyst

James Hardiman — Wedbush Securities — Analyst

Tyler Batory — Janney Capital — Analyst

Ian Zaffino — Oppenheimer — Analyst

Eric Wold — B.Riley FBR Capital Markets and Co. — Analyst

Stephen Grambling — Goldman Sachs — Analyst

Paul Golding — Macquarie Capital — Analyst

Alex Maroccia — Berenberg Capital Markets — Analyst

Michael Swartz — Truist Securities — Analyst

Brett Andress — KeyBanc Capital — Analyst

Ryan Sundby — William Blair — Analyst

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Madison Sq. Backyard Leisure Corp. (MSGE) Q2 2021 Earnings Name Transcript

Image source: The Motley Fool.

Madison Square Garden Entertainment Corp. (NYSE:MSGE)
Q2 2021 Earnings Call
Feb 12, 2021, 10:00 a.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Good morning. My name is Theresa, and I will be your conference operator today. At this time, I would like to welcome everyone to the Madison Square Garden Entertainment Corp. fiscal 2021 second-quarter earnings conference call.

[Operator instructions] I would now like to turn the call over to Ari Danes, investor relations. Please go ahead, sir.

Ari Danes — Investor Relations

Thank you. Good morning, and welcome to MSG Entertainment’s fiscal 2021 second-quarter earnings conference call. Our president, Andy Lustgarten, will begin today’s call with an update on the company’s operations. This will be followed by a review of our financial results with Mark Fitzpatrick, our EVP and chief financial officer.

After our prepared remarks, we will open up the call for questions. If you do not have a copy of today’s earnings release, it is available in the Investors section of our corporate website. Please take note of the following. Today’s discussion may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties and that actual results, development and events may differ materially from those in the forward-looking statements as a result of various factors. These include financial community perceptions of the company and its business, operations, financial condition and the industry in which it operates as well as the factors described in the company’s filings with the Securities and Exchange Commission, including the sections entitled Risk Factors and management’s discussion and analysis of financial condition and results of operations contained therein. The company disclaims any obligation to update any forward-looking statements that may be discussed during this call. On Pages 5 and 6 of today’s earnings release, we provide consolidated statements of operations and a reconciliation of operating income to adjusted operating income, or AOI, a non-GAAP financial measure.

And with that, I will now turn the call over to Andy.

Andy Lustgarten — President

Thank you, Ari, and good morning, everyone. Let me start by saying that we are thrilled with Governor Cuomo’s announcement on Wednesday that arenas in New York can reopen with limited capacity. This comes on the heels of the governor’s reopening New York City restaurants for indoor dining at reduced capacity starting today. We believe this is the beginning of our path back to normal operations, and we look forward to returning to what we do best.

We’ve been preparing for this moment, working with state and local health officials to develop a comprehensive plan with rigorous safety protocols for our reopening. In addition, thanks to the NBA and NHL, we’ve learned best practices as a number of teams have been playing with limited in-arena fan attendance this season. We think the time is right to welcome back fans, and we’ve been encouraged by the tremendous demand for live events we’ve seen recently. From the success of the Buffalo Bills playoff games to the crowds at the Super Bowl this past weekend, it’s clear that people are eager to gather again.

And we expect to see this enthusiasm once we’re able to reopen our doors to fans, which we intend to do on February 23 with the Knicks and February 26 with the Rangers for roughly 2,000 people per game. These types of events will be taking place not only at The Garden, but also in arenas across New York. And we believe this push forward, coupled with the ongoing vaccine rollout, will pave the way for our other assets and brands to participate in a broader reopening. With this week’s news, we’ve taken the next step and started talking to artists and managers to gauge their interest in playing in The Garden to reduce capacity crowds.

While the economics may prove to be more challenging for concerts, if there’s one thing we know, it’s that there’s an intense desire by the entire industry for the return of live music. Nowhere is this more apparent than the impressive bookings schedule we’ve lined up for the second half of calendar 2021, which has the potential to be one of our busiest ever if we are able to fully reopen. And although it’s still early, we’re also seeing artists hold dates during the first half of calendar 2022. Demand from fans is also strong, as evidenced by our rescheduled shows where 73% of ticket holders have chosen to hold on to their tickets instead of requesting a refund.

We’ve also continued to see strong engagement with our Rockettes and Christmas Spectacular brands, which we believe bodes well for the production’s continued success. Traditional broadcast media still reaches the widest audience for the Rockettes. And their feature performance at Macy’s Thanksgiving Day Parade and the Rockefeller Center Christmas Tree Lighting were seen by more than 29 million viewers. We also partnered with NBC to televise a Christmas Spectacular special, which became one of the season’s most watched holiday shows with nearly nine million viewers over two airings and led to a noticeable bump in ticket sales around those areas.

Social media platforms have become another key tool we’re using to stay connected with our existing audience as we also engage the next generation of fans. This fall, we relaunched the Rockettes’ presence on TikTok, and during the holiday season shared a video highlighting fun facts about the Rockettes that generated more than five million views, significantly exceeding our average views. This enthusiasm from a younger demographic has only reinforced our strong belief in the enduring popularity of the Christmas Spectacular and the Rockettes. Turning to Tao Group.

Tao entered the quarter with a number of its venues, including in New York, Las Vegas and Chicago, opened at reduced capacities. However, as a result of government mandates, select restrictions were reinstated in late fall. For example, in Las Vegas, nightclub capacity was reduced from 50% to 25%. And while venues in New York City were again closed, as I noted earlier, that changed today with indoor dining now reopened at 25% capacity.

In this fluid environment, we are pleased with the Tao Group’s creativity and flexibility, which will help ensure they’re able to reopen their venues quickly as restrictions are lifted. We truly believe that this is a significant moment for the company. And until we can fully reopen, we are confident that the steps we have taken over the past several months to cut costs, raise additional capital and strengthen our balance sheet have provided us with sufficient liquidity to weather this period. While protecting our core business is, of course, our top priority, we are also making important progress on the construction of MSG Sphere in Las Vegas, a venue that we believe will create significant long-term value for our shareholders.

We recently announced that we have assumed the role of construction manager for MSG Sphere. AECOM has transitioned from its role as general contractor to a new service agreement that facilitates their ongoing support through the project’s completion. This new structure enables us to continue benefiting from AECOM’s experience while also giving us greater transparency and control over the construction process. Jayne McGivern, who joined us in 2018, has been named president of Development and Construction and will continue to lead our construction efforts.

As many of you will recall, she has spearheaded a number of large development projects, including her work on Wembley Stadium and leading the development of the O2 Arena. Jayne has taken significant steps to build out our internal construction team, which played an important part enabling us to assume the Construction Manager role. Our internal team now has direct responsibility for strategic planning and the construction time line and also currently oversees 30 AECOM employees who continue to support key areas, including specialist roles, such as health and safety. On the construction front, we remain focused on several of MSG Sphere’s critical path elements, including structural steel work, and we anticipate starting to build the steel frame for the venues group in the coming months.

In closing, we are excited to see the start of live entertainment return to New York. We have already been hosting Knicks and Rangers games at The Garden without fans. And we’re now thrilled that later this month, those teams will play in front of crowds at the arena for the first time since last March. With this reopening, we believe that we’ve started down a path that, aided by vaccinations and better health and safety protocols, will lead to the return of normal operations.

And when that day comes, our premier collection of assets and brands places us in a prime position to capitalize on the significant pent-up demand for live entertainment. I’d like to thank our employees, partners, fans and shareholders for their continued support. With that, I will now turn the call over to Mark.

Mark FitzPatrick — Executive Vice President and Chief Financial Officer

Thank you, Andy, and good morning, everyone. I will start by discussing our second-quarter financial performance, and then I will review our liquidity position. For the quarter, total revenues were $23.1 million, and our adjusted operating loss was $64 million. This compares to $394.1 million in revenues and adjusted operating income of $108.5 million in the second quarter of fiscal 2020 as the vast majority of our operations remained impacted by COVID-19.

Also as a reminder, our results are not directly comparable on a year-over-year basis as the second quarter of fiscal 2020 is based on carve-out financials and does not include the impact of the various agreements between our company and MSG Sports. In terms of our revenue, I wanted to spend a moment discussing the Arena License Agreement with MSG Sports. We were happy to welcome the Knicks back to The Garden in the second quarter. And as a result, we started to recognize arena license revenue and AOI related to these agreements, although at a substantially reduced rate this year given the current environment.

As a reminder, while cash payments from these licenses grow at 3% per year, we recognize the revenue on a straight-line basis over the 35-year term of the agreement. As a result, in this quarter, approximately $1.2 million of the $1.6 million of revenue recorded was noncash. For the purposes of determining adjusted operating income, we exclude the noncash portion of the arena license fee revenue. This adjustment can be seen in the reconciliation of operating income to adjusted operating income on Page 6 of our earnings press release.

So turning to our liquidity position. As of December 31, we had $1.45 billion of cash and short-term investments, which represented an increase of approximately $487 million compared to our September 30 balance of $965 million. This increase was driven by the net proceeds from our $650 million debt raised in November, $6.5 million of drawdowns under our Tao revolving credit facility and $20.6 million from the partial sale of our equity position in DraftKings. As a reminder, we invested approximately $10 million in DraftKings.

And as of quarter end, we have sold shares for total proceeds of approximately $28.2 million while retaining approximately 894,000 shares. These inflows were partially offset by $64 million of operational cash burn for the quarter, or about $21 million per month, which was slightly better than our previously disclosed expectations. We also had $107 million of capital expenditures, which is primarily related to the construction of the MSG Sphere in Las Vegas. Through December 31, project to date construction costs incurred were approximately $645 million, which includes $73 million of accrued costs that were not paid as of December 31 and which is net of $65 million received from the Las Vegas Sands.

In February 2020, we announced the cost estimate for the MSG Sphere, inclusive of core technology and self costs of approximately $1.66 billion, but this is subject to uncertainty given the project’s complexity and more than two years remaining until the planned opening and the ongoing impact to the global pandemic. That said, we continue to aggressively manage costs. We’re happy with the progress we made on the construction so far this fiscal year and look forward to opening the venue in 2023. Finally, I would note that our cash balance as of December 31 included approximately $190 million in deferred revenue and collections due to promoters, which was roughly unchanged since September 30.

With that, I will now turn the call back over to Ari.

Ari Danes — Investor Relations

Thanks, Mark. Operator, can we open up the call for questions, please?

Questions & Answers:

Operator

[Operator instructions] And the first question comes from John Janedis with Wolfe Research.

John Janedis — Wolfe Research — Analyst

Thanks. Good morning. Maybe one for Andy, one for Mark. Andy, starting with your opening remarks.

On a practical level, can you talk about what being able to operate at 10% capacity actually means? And to your point, is talent toward that level? And for other the teams or concerts, does 10% translate to positive cash flow? And then for Mark, just wanted to follow up on the cost of the Sphere project. I’m not sure, but your comments suggest some incremental uncertainty around the cost side and as moving away from AECOM impact, again, the cost or timing of the project.

Andy Lustgarten — President

Thanks, John. So in terms of the 10% capacity, so let me start as I started the call. Like we are absolutely thrilled by this move. This was earlier than we had expected.

We’ve been preparing for a long time. We’ve been working with the government and health officials. I’ll say 10% — we should split the types of events that would come through, right? So the sports teams, which, mind you, as the MSG Entertainment, we have a license agreement where we got paid rental fees as well as shares of ticketing, of suite revenue, of F&B revenue, merch revenue. Since the events are already on because they’re being produced by the sports team, it’s automatically marginally profitable, right, minus the small number of people that we would staff the building to make it worthwhile.

So put that into one bucket of events. The touring business, it’s going to be much more challenging. It’s a big production to put somebody on the road. There’s a lot of pieces, and not only the talent, but the risk involved.

So while we’re enthused by the moving toward capacity, I don’t expect a big piece of the touring market to be on the road at 10% capacity. But we hope that this is the beginning, right? We think this is the beginning of where the governor starts to reopen the economy. And we think that, as the capacity is raised, we’ll see further interest. I mean we’ve had a lot of interest already on 10% because everyone understands that this is the beginning.

And then on top of it, we were a little different than almost any other venues in America because of where we are and our relationships. So there are — it is possible to have one-offs where an artist comes directly to us and either uses our equipment or brings in something small. But that’s a — those will be more one-off events, and the exception rather than the rule. But we really feel this is a great start toward getting us back to normal because this will — 10% is the beginning, not the end.

Mark FitzPatrick — Executive Vice President and Chief Financial Officer

Thanks, John. This is Mark. And I just want to kind of hit on your question about the cost estimate. First of all, just want to clarify upfront, the movement to AECOM had no impact on the cost or the timing of the construction.

So we’re still planning to open the Las Vegas Sphere in 2023. But as you know, last February, we announced the cost estimate was $1.66 billion. And since then, we and the rest of the world were hit by COVID, which ultimately resulted in us announcing last August that we have lengthened our construction timetable by two years. It’s six years later.

We’ve learned a lot more, made some substantial progress on the construction. But we thought it was important to flag that there is uncertainty that we’re seeing around the cost estimate. The uncertainty reflects the impact of the pandemic, which has added another layer of complexity to an already unique project. But as you know, we’ve transitioned to construction manager, which is giving us more — even more control of the progress.

We continue to aggressively manage every aspect of the project, and we look forward to opening the venue in 2023.

John Janedis — Wolfe Research — Analyst

Right. Thank you.

Operator

And your next question comes from Brandon Ross with LightShed Partners.

Brandon Ross — LightShed Partners — Journalist

Hey, guys. I have follow-ups, I think, on each of John’s questions. First, I was hoping to dive a little deeper into the decision to become the construction manager on the Spheres project. Maybe if you could walk us through the rationale and benefits for taking that over.

And is there anything to glean about your plans for future venues from that decision?

Andy Lustgarten — President

So as I mentioned, we — so we took over as the construction manager. We should take a step back. The strategic decision on how we set up this project was in the cost-plus structure with AECOM, right? We did that for a very specific reason. We thought it would allow us to make some quality of the work, allow us much greater transparency into the costs.

And the labor being — and materials being used by the subcontractor, providing us a much more bigger role in managing our costs overall and what product we’re going to get here, so that we have the best consumer experience. With the — with COVID and the lengthening of our time line, it allowed us to reassess how are we going to work and go forward and how can we actually deliver the best way. So we decided to restructure the project — the relationship with AECOM. It allows us to get the best of really both worlds, right? When it comes to expertise, we’ve got 30 of their top people on the sites still working with us, but at the same time, allows us even greater transparency, even greater control.

And it also gave us a little of time, over the last seven months, eight months to really put together to fill out Jayne’s team to allow her to have the staff that she needs to be able to effectively manage and drive this project, both the time line and the cost structure. And to your point, this is also giving us our ability to think about what and who do we need and what infrastructure we need as we think about the future. So this does give us the further insight when the time is ready that we have the people and we have the infrastructure, and so when that time is there, we will be even better for them in our next project when it occurs.

Brandon Ross — LightShed Partners — Journalist

Cool. And then on the partial reopening, can you just walk us through the health and safety protocols that are now in place? Maybe share the fan experience from when we arrive at The Garden to when we take our seats, and how you see that 10% capacity evolving. What have been the discussions maybe with Cuomo and others about milestones for further reopening from that 10%?

Andy Lustgarten — President

So I’ll start. We are always focused on the guest experience and customer experience. So right now, safety of our guests, our talent and our employees is by far No. 1 and something that we’ve always been focused on, even before the pandemic.

But now we’re going to be even further focused on it. We’ve been preparing for this for a while. Obviously, you could do a lot of preparations, but information keeps on changing. So there’ll be always tweaks as we learn more about the disease and how it affects people.

But in the highest level, we’ve been — we also benefit from when we take a step further back. Our venue was built in 2013 — less than seven years ago, and we have one of the best venues. We’ve got amazing health and safety already built in. We had to supplement it, change filters, add some more touchless sinks.

So those types of changes are in and well thought through. In terms of the customer experience, so there’s going to be — and in safety, COVID tests before the event, health screens. When they’re inside the event, there’s going to be limited specific types of food, and food and beverage in certain locations. You can’t eat on the hallways.

But we’re — it’s going to be the best experience that keeps people safe. We’re going to have obviously social distance within the venue. And we’re going to continue to go above and beyond. We’ve been working with many medical professionals to make sure that we’ve got the best state-of-the-art technology.

And of course, we’re going to acquire face masks, temperature checks on the entrance. And the governor’s office has been great. I don’t think that there’s a specific number that we know of when the next capacity jump will be. But he’s clearly created a road map in other types of industry.

When inflection rates are down and hospitalizations are down, parts of the economy open. And so as — if we continue on the path that we’re on, I think we’re on a path to continue to increase capacity. But obviously, this disease will change in — over the next few months and we might be in a different place, both very good or very bad in the future. It looks like everything seems to be going in the right direction, and we feel pretty good.

So we feel good about this at the beginning of the opening.

Brandon Ross — LightShed Partners — Journalist

Awesome. Thank you.

Operator

And your next question comes from the line of David Karnovsky with J.P. Morgan.

David Karnovsky — J.P. Morgan — Analyst

Hi. Thank you. Andrew, maybe just to follow up on some of the commentary prior. I guess how solid should we consider the bookings for the back half of the year in the context of potentially still having capacity restrictions? Like at what level do you think artists, promoters — or maybe if it’s easier to answer regarding their own residencies, right, where would you find it viable to have shows at the bubble?

Andy Lustgarten — President

It’s a difficult question to answer directly, right? So it’s obviously 100% capacity. It’s no question, right? There’s just some of the incremental costs around safety and protocols, but most of that’s already in. 10% is very difficult. And on the gravy end, as we get closer to 100%, it’s a lot easier.

So I will say the back half of our calendar is, as we keep on saying, very — we feel very good about right now, both between the artists that move their schedule from before COVID to all the other artists who are looking to be on the road. But I can’t give you the exact answer if the number is 50%, 60%, 70%, 80%, 90%. I think it’s going to be very artist-specific, very promoter-specific in terms of the risk level they want to take on. But with our relationships and its venue, we feel very good that we’ll be the leader of it.

This market is different than other markets. And we think that we’ve shown over and over our ability to deliver for artists amazing experiences as well as our customers. And so we think we’ll be back, and we feel very good about where this is going in the future.

David Karnovsky — J.P. Morgan — Analyst

OK. And then is there any update you’d be willing to provide on how you’re thinking about the return profile on the Sphere, or maybe when you’d be willing to disclose to investors or provide some view into how to think about the financials once the venue is up and running. Thank you.

Mark FitzPatrick — Executive Vice President and Chief Financial Officer

Sure. This is Mark. I can take that one. So look, I think we just want to reiterate, we continue to believe that MSG Sphere will create significant long-term value for shareholders, and that has not changed.

You’ve heard us talk before about the venue’s unique platform, which will create compelling growth opportunities across the spectrum of opportunities, including events, sponsorships, premier and hospitality. And we believe that this is going to translate in a substantial level of revenue and AOI. So I talked about there being uncertainty due to the pandemic. We also talked about the positive signs we’re seeing, including the pent-up demand for live entertainment that Andy’s noted.

But overall, we’re confident the pandemic will end. We’re confident that Las Vegas will return, and that we’re building a venue that will capitalize on people’s intense desire to gather and take part in new experience. In addition to this, with our extended timetable, we may — has enabled us to preserve cash in the near term. It’s also given us — it’s given Las Vegas time to kind of recover.

So we believe that’s going to be work to our advantage that tourism and convention business will be in full swing by 2023. So in terms of your second question about when we’re going to give additional information, I think with two years left to go, we’re not really ready to get into specifics. But overall, I just want to reiterate, we’re very bullish on the opportunity.

Operator

And your next question comes from the line of David Beckel with Berenberg Capital.

David Beckel — Berenberg Capital Markets — Analyst

Great. Thanks. Thanks for the question. So I had a question on Christmas Spectacular and the Rockettes.

Thank you for all that color regarding engagement and social media. I’m just curious, it sort of dovetails on what you’ve already talked about with respect to reopening. At what point will you need to make a go, no-go call on the Spectacular? And what are some of the contingency plans you have in place for that production this year?

Andy Lustgarten — President

So as I mentioned, we’re very happy so far with the engagement we’ve had through social media and other — and through our special in NBC. And I mentioned earlier, we are — you probably picked up, we’re already on sale. So we’re planning on having our show. And we benefited from the bump from those — that exposure even this past Christmas.

So we’re on sale right now with about 200 shows for the 2021 holiday season. Obviously, we’re going to have to continue to monitor the developments, but we’re really excited about this week’s decision, and we think this is just a path to begin to open. So we’re planning on a show.

David Beckel — Berenberg Capital Markets — Analyst

Great. And just to be clear, at any capacity level, you’ll be having a show?

Andy Lustgarten — President

I didn’t say at any capacity level. But as I said, we think this is the beginning of an opening, not the end of an opening and very much are planning on a higher capacity by next November.

David Beckel — Berenberg Capital Markets — Analyst

Fair enough. Appreciate that. And just as a follow-up, I’m curious if your — the unfortunate circumstances surrounding live entertainment has left some venues and less than ideal financial condition. Are you seeing opportunities for venue acquisition in the marketplace that look interesting as a result of the pandemic? Or is that even a marketplace you’re currently interested in?

Andy Lustgarten — President

Well, let me start. We generally don’t discuss M&A that are — that we don’t have planned or said exactly. But I’ll say, we’re focused right now on the Sphere. That’s our main focus for our company and that’s meaningful growth.

That’s on the entertainment side. Obviously, there is a lot of opportunity, given to your point about the financial conditions of venues, both on the entertainment as well as in our hospitality or in the restaurant business. On the Tao side, we have a really strong management team who is very focused on growth. That could be organically.

Such as in three weeks, we’re opening up a new restaurant, Tao up in Mohegan, or maybe inorganically through either new leases or any opportunity. But I’ll tell you, there’s nothing — so we’re looking at things, but at the same time, we’re very focused on our base business and getting back to operations and growing and getting ourselves back and running.

David Beckel — Berenberg Capital Markets — Analyst

Thanks so much.

Operator

And your next question comes from the line of David Katz with Jefferies.

David Katz — Jefferies — Analyst

Morning, everyone. Thanks for taking my questions. No. 1, with respect to the Tao Group, can you just talk about whether you can be profitable at this initial stage, or where that pivot point is? And my second question is really around New York sports betting, which has become topical.

What your interest level is, what your expected engagement might be and how you see yourselves playing a role in that? Thank you.

Andy Lustgarten — President

Absolutely. So on the Tao side, it’s — the operating restrictions have been extremely fluid in that environment. So remember, we have both dining as well as nightlife and hospitality. Both don’t necessarily have the same capacity restrictions and don’t necessarily have the same between cities and even within the — cities within state and definitely not — in different states.

So it’s really hard to give you a single number that says here’s where we’re profitable. But I will say, the momentum is moving in the right direction. Today, New York City reopened dining at 25%. It’s been outside, which obviously has been not the best operating conditions.

And I think it’s the first step toward going to higher capacities. There’s still a curfew at 10:00 p.m. here in New York City on entertainment. So that will obviously be a big restriction that will affect performance in the long run.

But again, as things get better, we’re hoping that, that restriction changes as well. In other markets, there’s different indoor dining and outdoor dining restrictions, and it will be — it’s really case-by-case. But we do feel like most of the locations we’re in are all moving in the right direction. Protocols — ensuring our safety and healthy protocols, we’re proving that we can be safe — health and safety — very safe for our customers, and we feel good about Tao’s growth path to profitability.

On the gaming side, yes, there’s been a lot of noise, especially, or a lot of talk right here in New York City about or New York State about gaming, and we’re very thrilled that Governor Cuomo’s recent announcement that they’re intending to pursue mobile sports gaming. So many times, there’s — we very much like sports gaming and what the impact is on consumer experience in terms of engagement. We think that it just further drives people’s interest in sports, so it’s very strong given that we have two tenets, tenants here in New York, The Garden. We note that Governor Cuomo said approximately 20% of all New Jersey sports wagering has come from New York residents.

So we’re very bullish about what does that mean for New York. And you might have noticed that the Meadowlands, which opened in 2018, is now one of the largest sports books in the country. So again, piques our interest as to what we could do here. Obviously, the legislation is going to affect how we could play.

But I’ll note, in D.C., Capital One Arena, with The Wizards and Capital partnered with William Hill to create a sports book. The Cubs in Chicago have partnered with DraftKings and is pursuing a sports book inside Wrigley Field. Those are opportunities for us. And I’ll also note that here at MSG Entertainment, we represent MSG network through an advertising agreement and MSG Sports through a sponsorship arrangement.

And so as both of those businesses continue to receive the benefits of the advertising and sponsorship from sports betting, you will see or sports gaming we will the effect on MSG Entertainment’s results as well. So we feel pretty good. There’s lots of opportunity, and we look forward to hearing more about the rules and the regulations that will be coming into place as mobile sports gaming comes — becomes authorized.

David Katz — Jefferies — Analyst

Appreciate it. Thanks very much.

Operator

And your last question is from Ben Swinburne with Morgan Stanley.

Unknown speaker

Good morning. This is Mary on for Ben. Just one question on reopening in New York. If there’s anything you guys can share on what you’re hearing from the state in terms of for the reopening plans and capacity and what you’re doing during the interim process to prepare for a fuller reopening down the line that can impact the financials that aren’t fully obvious to us today.

Thanks.

Andy Lustgarten — President

Thanks. So I think we talked a lot about the path reopening, and we really — we’re thrilled with the 10%. But it’s really in the sense that we believe this is the beginning of the path toward reopening, not the end of that. There’ll be as — not that — those who follow the governor and, actually, he even said this in the very beginning in terms of the way he’s thinking about reopening New York I think this is eight months ago, right.

He laid out periods of time that said, as caseloads come down, as hospitalizations come down, he opens up certain sectors of the economy. We’re now turning to the entertainment and dining, which I think is a very important sector for New York City to come back because that’s what will drive New York’s resurgence. And so this is the beginning of the reopening. And as caseloads continue to go down and hospitalizations go down, we’re expecting capacity to continue to go up.

In terms of the second part of your question of what would we be hitting? I mean I think, look, we’re — we have an infrastructure. We need to continue to build back up our arena staff and or — including our ushers and F&B. But that’s — it’s — that’s about training and development. And we expect that, that will continue to grow as we increase capacity.

And so we’re very focused on our first event on the 23rd — sorry, 26th? 23rd, right? 23rd and look forward to hosting a next Warriors game, and we look forward to just beginning — the beginning of us welcoming fans back to The Garden.

Unknown speaker

Thank you.

Operator

I would now like to turn the call back over to Ari Danes.

Ari Danes — Investor Relations

Thank you all for joining us. We look forward to speaking with you on our next earnings call. Have a good day.

Operator

[Operator signoff]

Duration: 39 minutes

Call participants:

Ari Danes — Investor Relations

Andy Lustgarten — President

Mark FitzPatrick — Executive Vice President and Chief Financial Officer

John Janedis — Wolfe Research — Analyst

Brandon Ross — LightShed Partners — Journalist

David Karnovsky — J.P. Morgan — Analyst

David Beckel — Berenberg Capital Markets — Analyst

David Katz — Jefferies — Analyst

Unknown speaker

More MSGE analysis

All earnings call transcripts

Lions Gate Leisure Corp (LGF.A) (LGF.B) Q3 2021 Earnings Name Transcript

Image source: The Motley Fool.

Lions Gate Entertainment Corp (NYSE:LGF.A) (NYSE:LGF.B)
Q3 2021 Earnings Call
Feb. 04, 2021, 5:00 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, thank you for standing by and welcome to the Lions Gate Entertainment 3Q ’21 Earnings Call. [Operator Instructions]

I would now like to turn the conference over to our host, Head of Investor Relations, James Marsh. Please go ahead.

James Marsh — Head of Investor Relations

Good afternoon. Thanks for joining us for the Lionsgate Fiscal ’21 third quarter conference call. We’ll begin with opening remarks from our CEO, Jon Feltheimer, followed by remarks from our CFO, Jimmy Barge. After their remarks, we’ll open the call for questions. Also joining us on the call today are Vice Chairman, Michael Burns; COO Brian Goldsmith; Chairman of the TV Group, Kevin Beggs; and Chairman of the Motion Picture Group, Joe Drake. And from Starz. We have, President and CEO, Jeff Hirsch; CFO, Scott MacDonald, President of Domestic Networks, Alison Hoffman; and EVP of International, Superna Kalle.

The matters discussed on this call include forward-statements, including those regarding the performance of future fiscal years such statements in the subject to a number of risks and uncertainties, actual results could differ materially and adversely from those described in the forward-looking statements, as a result of various factors. This includes the risk factors set forth in Lionsgate’s most recent Annual Report on Form 10-K, as amended and our most recent quarterly report on Form 10-Q filed with the SEC. The company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, that may be made to reflect any future events or circumstances.

With that, I’ll turn it over to Jon. Jon?

Jon Feltheimer — Chief Executive Officer

Thank you, James and good afternoon everyone. We’re pleased to report a quarter with strong financials, robust subscriber growth at Starz and another outsized performance from our library, as our model continues to show its resilience in the face of the pandemic.

Let me take you through the quarter’s highlights. Starz continued its strong growth, gaining 800,000 subscribers in the quarter, as it increased international over the top subscribers by 26% and posted solid gains in domestic over the top subs. With 28 million global subscribers at quarter’s end, we are well on our way to our goal of 50 million to 60 million global subscribers by 2025, the vast majority of which will be high value streaming subs. Last week, Starz announced a new bundle agreement with Canal+, that will immediately scale our footprint in France, anticipating a future, in which we expect bundles to become an increasingly important part of our distribution strategy.

Our production teams have been doing a great job of keeping our television and film pipelines operating at full capacity, with safety protocols in place, and minimal downtime. Amazingly, in spite of the challenges, we are currently shooting 19 scripted television series, and another 20 unscripted shows around the world. Five feature films have returned to production, three new film productions have started, and in the coming months, we will begin shooting the Wonder sequel White Bird from director Marc Forster. Shotgun Wedding, starring Jennifer Lopez and Josh Duhamel. Are You There God? It’s Me, Margaret, from superstar producer James L. Brooks. Borderlands, teaming Kevin Hart and Cate Blanchett. And John Wick 4, of course, starring Keanu Reeves for release next year.

Our television group continued its strong year, with new series picked up at Starz, Apple Plus, ABC, Fox and HBO Max, while all six series launched last year, they have been renewed for second seasons, with Love Life breaking out to become the top performing original on HBO Max, as we continue to demonstrate our ability to put shows on the air, and keep them there.

These strong content pipelines continue to feed a library that in the quarter achieved another record $765 million in high margin revenue for the trailing 12 months, and we’ve accomplished all of this, while continuing to strengthen our balance sheet, ending the quarter with more than $550 million in available cash, an untapped $1.5 billion revolver, and leverage that has been reduced by more than a full turn in the past year, to under four times, while continuing to fund the growth of all of our businesses without a capital raise and with our own free cash flow.

To drill down on our performance in the quarter, I’d like to continue the narrative, we began on the last call by laying out three of the broader themes that have contributed to our success. First, we [Indecipherable] to mobilize all of our resources behind the growth of Starz. From the acquisition four years ago, through the international rollout that began in 2018, we’ve been converting and scaling Starz into a modern, data driven global subscription leader, that has become the first traditional service to have more over the top and linear subscribers, a critical digital inflection point. By the end of next quarter, we expect streaming revenue to surpass traditional for the first time as well.

Domestically, our programming for a broad spectrum of women and traditionally underserved audiences is differentiating us from our competitors, driving subscriber acquisition and retention, and setting new viewership records. New series P-Valley and Hightown and the docuseries Seduced, are resonating with our audiences. Power Book II: Ghost set viewership and acquisition records in its first season, becoming the highest-performing new series ever on Starz. With its initial season ending on a viewership high, we’re bullish on the performance of future seasons, as well as upcoming instalment of the Power franchise, Raising Kanan and Force. We’ve established ourselves as the go-to-premium service for grown up audiences. Our brand continues to set us apart in a crowded marketplace and we have our biggest and most ambitious Starz slate, coming in the year ahead.

With the programing and marketing spend informed by the consumer data, that we’ve harvested from our direct-to-consumer business, we just completed another quarter of high ARPU Over-The-Top domestic subscriber growth that drove solid revenue gains, while we continue to convert our Comcast linear subscribers into higher value a-la-carte subs ahead of schedule.

Internationally, we’ve expanded into 55 countries, including our STARZPLAY Arabia joint venture, with launches spanning 10 partners and 20 countries in the quarter. We also continue to bolster consumer data and engagement, by rolling out our retail app in another five countries. Our partnerships with global streaming platforms and top local distributors alike are thriving, from Ghost to Gangs of London, Seduced to Spanish Princess, our best of global SVOD content strategy is resonating with consumers, helping to drive our second straight quarter of nearly 30% Over-The-Top subscriber growth. We’re capitalizing on our early traction, by building scale in existing territories, while opportunistically expanding into new ones. Most recently, leveraging the fast start of our Indian platform, Lionsgate Play into Indonesia.

Second, we continue to accelerate the convergence of our studio and platform businesses to support this growth, whether lining up 20 Lionsgate Television premium series for Starz, using our library to drive Starz’s international growth or leveraging our properties and talent relationships across all of our businesses. This afternoon, we announced that our collaboration with 3 Arts on the Serpent Queen, the story of French Royal, Catherine de’ Medici from Bohemian Rhapsody’s Justin Haythe, executive produced by Hunger Games franchise director, Francis Lawrence and 3 Arts Erwin Stoff, has been greenlit at Starz. The latest example of our ability to marshal all of the resources within our Lionsgate family to support the growth of Starz.

As everyone scrambles to vertically integrate their legacy businesses behind the growth of new streaming platforms, our ability to continue converging our studio, platform and talent business is critical.

Third, we continue to deepen our content pipelines, while taking advantage of our distribution optionality. Our strong performance in fiscal ’21 allows us to greatly increase our content and marketing investment in fiscal ’22, to be funded with our own cash flow. We are responding to the record imbalance between content supply and demand in the marketplace, by expanding our slate at Starz, ramping up our scripted series production at Lionsgate Television, and readying a robust film slate that anticipates theaters coming back next year, while addressing huge demand for content across all platforms. Our success in generating strong returns from early PVOD, multi-platform and hybrid models for the films like, Fatale, Antebellum, Run, I Can Only Imagine and The Secret speaks to our ability to monetize current films, while at the same time, working with our theatrical exhibition partners to plan for the future.

One full year into the pandemic, our businesses are doing well, adapting to the changes, overcoming the headwinds, and delivering a strong financial performance, while creating evergreen value for the future. We owe much of the success to be amazing resilience of our employees and our creative talent family, who have double down on their collaborative team spirit, innovated new ways of working and communicating, and demonstrated strength and resourcefulness in the face of a diversity.

Now I’d like to turn things over to Jimmy.

James Barge — Chief Financial Officer

Thanks Jon and good afternoon everyone. I’ll briefly discuss our fiscal third quarter financial results and provide some color on our outlook. In fiscal third quarter, adjusted OIBDA was $134 million, up 8% over last year and driven by strong performance in television with total revenue coming in at $836 million reported. Fully diluted earnings per share was a loss of $0.06 and fully diluted adjusted earnings per share came in at $0.21 per share. Adjusted free cash flow for the quarter was $111 million.

Now, let me briefly discuss the fiscal third quarter performance in the underlying segments, compared to the prior year quarter. You can follow along in our trending schedules that have been posted to our website and show greater detail around our global media network subscribers. Media Networks’ quarterly revenue was $406 million and segment profit came in at $82 million, driven largely by domestic OTT subscriber growth, as well as the strong performance of Starz International, as we continue to rollout in new markets and platforms. Globally, including STARZPLAY Arabia, the company grew OTT subscribers 900,000 sequentially or 7%, as you can see in our training schedules. Domestically OTT subscribers increased 3% sequentially, while international OTT subscribers grew 26%. Total global Media Networks’ OTT subscribers reached 14.6 million, while MVPD subscribers stayed constant at 13.4 million, for a total of 28 million subscribers. We now expect our previous guidance on global media network OTT subscribers to exceed the top end of the 13 million to 15 million subscriber range by the end of the current fiscal year, approaching 50% plus growth year-over-year.

Now turning to our Motion Picture Group; revenue declined or limited theatrical releases to 250 million, while segment profit of $50 million was in line with the prior year, despite a tough comp against the prior year quarter, which included ancillary sales of John Wick. And finally, we had strong performance in television, where revenue for the quarter came in at $228 million, and segment profit increased to $30 million, driven by additional Mad Men licensing and episodic deliveries.

On the balance sheet, we continue to reduce leverage, ending the quarter at 3.6 times trailing adjusted OIBDA or just under three times excluding our investment and STARZPLAY International. We continue to retain significant liquidity, with $551 million of cash on hand and a $1.5 billion undrawn revolver. We remain committed to strengthening our balance sheet and paying down debt.

Now I’d like to turn the call over to James for Q&A.

James Marsh — Head of Investor Relations

Great. Thanks, Jimmy. Carolyn, can we open it up for Q&A?

Questions and Answers:

Operator

[Operator Instructions] Our first question comes from the line of Steven Cahall from Wells Fargo. Your line is open. Please go ahead.

Steven Cahall — Wells Fargo — Analyst

Thanks. Maybe Jimmy, to start off, I was wondering with just about a month left in the fiscal year, could you maybe give us what your outlook is for fiscal ’21? And then Jon and Jimmy, fiscal ’22 is probably going to look a lot different. So could you give us any sense of how we think about both the cadence for fiscal ’22, but maybe also just as folks are maybe reallocating some budget from in-home entertainment to out-of-home entertainment and you’ve got a bit more cost coming online. How you think about the margins in a year like fiscal ’22? Thanks.

James Barge — Chief Financial Officer

Sure Steve. Thanks for the question. Look, in terms of fiscal ’21, as we said from the beginning of the year, that fiscal ’21 was going to be more front-end weighted, so — and as we look ahead to the segments, we continue to see Media Networks segment being flattish relative to the prior year for on a full year basis, and that’s as we reinvest excess profits there to derisk the model and position us for future growth. And in Motion Picture Group as we said before, I think over the remainder of the year, profits will continue to moderate. Sequentially, particularly with P&A spend on Chaos Walking as that increases in the fourth quarter. And then in TV, we remain on track for significant growth there, profits up 50% for the full year, as Jon has noted in earlier calls. So that kind of rounds out how we would finalize fiscal ’20 or what we’re seeing there…

Jon Feltheimer — Chief Executive Officer

’21.

James Barge — Chief Financial Officer

’21. And in terms of fiscal ’22 looking ahead, there we expect the cadence to be more back-end loaded. So just the inverse of fiscal ’21. So back-end loaded in fiscal ’22. Look we expect strong operational performance in ’22, we’re going to be [Technical Issues] that with increased investment in content and marketing as you’ve heard. With regards to the various businesses, looking at Starz it will reflect the impact in the timing of our content marketing spend. In Motion Picture Group, the P&A spend is going to be more front-end loaded here because of a more front end loaded first half theatrical release slate and then likewise, more back-end loaded in terms of TV, in terms of episodic deliveries. I would say, Weeds is available in the first quarter of this year, fiscal ’22 that is. So we got a strong fiscal ’22 and it’s back-end loaded.

Jon Feltheimer — Chief Executive Officer

Yeah, I’d echo what Jimmy said, I think all of our core businesses won’t look that different. I mean, we are going to have a strong library year. We’re going to continue to sell into strong demand. Our TV business is strong. As I mentioned, we’ve got 39 shows going on right now. And we like the trajectory of our Starz business, both domestically and internationally. So I think it’s going to be another strong year, as Jimmy said.

Steven Cahall — Wells Fargo — Analyst

Thanks. That’s a lot of great color, and if I could ask a quick follow-up, you’ve done a great job of getting leverage down into the threes, should we expect that to tick up a little bit in fiscal ’22?

James Barge — Chief Financial Officer

Sure Steve. Look, you’re right. We were down 1.5 turns in the first nine months of this year. So 3.6 is a relatively low point at the moment in a favorable way. What I would expect as we go into ’22 with the content spend and marketing spend rolling through, you would expect some increase in margins there to some peak kind of mid — early to mid-year leverage ratios, but returning back around four times leverage by the end of fiscal ’22. So that’s a good place to be, relative to where we are in our investment cycle with content marketing.

Steven Cahall — Wells Fargo — Analyst

Great. Thank you.

James Marsh — Head of Investor Relations

Operator, next question please?

Operator

[Operator Instructions] Our next question comes from the line of Tim Nollen with Macquarie Securities. Your line is open. Please go ahead.

Tim Nollen — Macquarie Securities — Analyst

Hi everyone. Thanks very much. Wanted to ask a question about profitability on the OTT side, if there is any color you could give us. Seeing the subs outpacing the linear a quarter or two ago and are seeing revenue outpacing the linear in the next quarter or two, what are your thoughts on how the profitability profile of the Starz OTT service stand-alone looks like?

Jeffrey A. Hirsch — President and Chief Executive Officer, Starz

Hey Tim, it’s Jeff. Thanks for the question. Now if you look back over the last couple of years, as we were primarily a linear network — bundled network with low ARPU subs and we’ve converted, as you said, over 50% of our — more of our OTT subs. The linear subs and that profitability continues to come up, you look at our ARPU in the last quarter was over $6. I think there is some noise in that number still, based on our — converting from bundled to a-la-carte on Comcast, but we expect long-term to be somewhere between the %5.75 and $6 on ARPU. So a much more profitable subscriber, as we bring them onto the platform. And then if you look internationally, we still think that will end up where we said publicly, somewhere between $3 and $4 when we get out to 2025 and that’s a little bit more of a steeper line, as we accelerate the OTT growth in the international side. So overall, we’re moving to where the consumer is, but we’re also moving to a much more profitable customer.

Tim Nollen — Macquarie Securities — Analyst

Okay, cool. Thanks Jeff. Could I ask maybe another one, probably also you to you too Jeff, about the increasing competition we’re seeing obviously in OTT. I believe you’ve done some work, looking at your data and trying to figure out what content to make available at what times and how to mitigate churn, I wonder if you’ve got any comments on churn and your ability to sustain growth, given how much more crowded the field continues to get?

Jeffrey A. Hirsch — President and Chief Executive Officer, Starz

It’s a great question. I think if you take a step back and when we look at the industry and how it’s unfolding. This is probably the first quarter with the exception of Paramount+ that’s coming at the end of March, where all the players were kind of on the field right now, and as we’ve said before, that first big broad based streaming services, the Netflix, the Disney pluses, the Hulus that are trying to service everybody in the home, I think that’s where the real competition is going to be, and you’re going to see people competing on ad spend, people competing on price, and people competing on bundling. As we announced today, you saw a Canal+ bundle in Europe. We think we’ll see more of that as we go. But we are really positioned as a complementary service to all those big broad-based services, and so, we think with our programing strategy being very focused on a female audience and underserved audiences and building out that slate. As Jon said, it’s our robust slate yet. We think that we’ve got a really good programming strategy. We’ve got a great lineup and I’m actually going to let Ali talk about the data and how we use the data to schedule and reduce churn, to what we’re seeing in an all-time low in the business right now.

Alison Hoffman — President, Domestic Networks, Starz

Yeah, I think just to comment on the slate, we’ve got returning franchises like Power. I think we’ve got three instalments of Power coming next year. We’ve got Outlander coming next year. So in terms of driving the business, in terms of subscriber acquisition and in terms of retention, we’ve got through that nice flow of flowing viewers from one show into the next, as well as sort of adding and building viewership and building the subscriber base as we go. We’re always — per Jeff note about, in terms of the data, we’re really always driving the lowest subscriber acquisition costs. And so that’s really how we manage the business. We are managing the business to have a really good return on our marketing investment and a really strong return on our content investment as well.

Tim Nollen — Macquarie Securities — Analyst

Great. Can I maybe squeeze one more in, please, also on a similar topic, I know that with Starz International, you’ve got a lot of rights to content from the likes of Paramount and Hulu. I wonder if there is anything that we should think about, might change, given that we’ll get some updates on Paramount+ coming in the next couple of weeks or so? Or indeed anything related to Disney? Just if there’s anything on your access to that international content that might change?

Jeffrey A. Hirsch — President and Chief Executive Officer, Starz

I am going to have Superna answer that question.

Superna Kalle — Executive Vice President, International Digital Networks

Hi. This is Superna. Thanks for the question. So we have not been seeing a problem with securing fantastic content from producers, nor — certainly from our own studio, we have incredible content on our own slate, that’s very international focused and we think are going to drive a lot of subscribers. Just some examples are, we’re very excited about Serpent Queen, just announced today, as well as Dangerous Liaisons Becoming Elizabeth, and the Power franchise works incredibly well for us. But no, we’ve not been seeing a slowdown in content acquisitions either.

Tim Nollen — Macquarie Securities — Analyst

Great. Thanks.

James Marsh — Head of Investor Relations

Caroline, next question?

Operator

Our next question comes from the line of Alan Gould from Loop. Your line is open. Please go ahead.

Alan Gould — Loop Capital — Analyst

Thanks for taking the question. I’m going to do for the flipside of Tim’s question address it to Kevin. Kevin, seems that the traditional TV is seeing probably change at the most accelerated rate we’ve seen, in terms of ratings and advertising. How does everything play into your job as a producer of content for all of TV, traditional streaming etc?

Kevin Beggs — TV Group Chairman

Thank you. It’s a great question. It has actually never been more robust. Jon touched on our production slate, which includes 13 series for Starz and it has more in development, 14 or 15 across the television landscape outside of the Starz-Lionsgate family and the demand is at an all-time high. One of our strengths is a very diverse portfolio of producers, writers, IP generators, both from within our own company. Amazing brands like John Wick, which we’re developing in series with Jeff and his team, and small movies that have become important mainstays for series like Dear White People. We’re in production on Blindspotting for Starz right now. We have a fantastic partnership with the BBC, that’s yielded two pilots to season in one series order. if the demand is high and everyone wants premium, high end scripted programing. It’s what we’ve been doing for 20 plus years at Lionsgate. It is our own special lane and now that lane, everyone wants to crowd or expanded to a four lane freeway, but very easy for us to do so.

Alan Gould — Loop Capital — Analyst

Okay. If I could just follow-up for either Jon or Jeff, I was reading a trade article from STARZPLAY International, who is talking about possibly doing an IPO in the next few years. Is that the plan on Starzplay International, that was quoting to CEO in that news article?

Jeffrey A. Hirsch — President and Chief Executive Officer, Starz

Yeah. Look, we feel really great about our STARZPLAY Arabia. We are 32%, we are a controlling shareholder with approval rights, that continue to be the market leader. We feel good about what they’ve built. They’ve secured a [Indecipherable] from RIAA, which is really a validation of how great they are doing in the marketplace. We do have obviously the rights to consolidate and we’ll continue to look at the business and when we think it’s the right thing to do at the right time, then we will look at that as an option.

Alan Gould — Loop Capital — Analyst

Thanks Jeff.

Operator

[Operator Instructions]. And our next question comes from the line of Thomas Yeh from Morgan Stanley. Please go ahead.

Thomas Yeh — Morgan Stanley — Analyst

Hi, thanks. Quick question for Jeff. You mentioned that there is some ARPU trend impact as we move through the Comcast subscriber transition, and lapped a one-year anniversary there. More broadly, it looks like there has been some continued stabilization on traditional linear Starz sub trends. Is there anything you would call out there about underlying drivers that’s reporting uptake, despite broader cord cutting at the industry level?

Jeffrey A. Hirsch — President and Chief Executive Officer, Starz

It’s a great question. I would say two things to remind everybody that we are not a fully distributed ad-supported network, and so we have a lot of penetration room on our traditional MVPD partners. And so, we think that there is great — again great opportunity for us to grow on the traditional side with their audience, as well as on the OTT side. I’ll also remind everybody, that by the end of this fiscal, will be 80% a-la-carte on the traditional side. So that’s really derisked the traditional business. It has put the incentives aligned with our partners to grow the business together, and as our content slate continues to outperform on their platforms, we’re going together. And I think the really great thing about that is, those are customers who are actually seeking out Starz and choosing Starz. So there are much stickier customers, with churns also coming down.

So we, I think we have an opportunity, both to grow in the fast and more profitable side on the OTT side, but also on the traditional business with our traditional partners.

Thomas Yeh — Morgan Stanley — Analyst

Okay, great. And then just quickly on the film strategy, I’m wondering if you could update us on your views of taking films through their premium VOD window. Is there a right size film, or any puts and takes that helps determine what path a film might take into the monetization going forward?

Joe Drake — Chairman of the Motion Picture Group

Yeah, sure, this is Joe. Thanks for the question. I guess what I would say to you is that, we have — we talked a lot about it, adopted what we’re calling a platform agnostic approach to distributing film. We’re looking at the theater business and we do think that theaters will get open by this summer and maybe earlier and we are prying for that and at the same time we’ve had a number of experiences now in the PVOD space. And what I would say is that, we are seeing multiple opportunities or multiple options for distribution of each title. That’s the way we greenlight our titles now. We look at — we look at the theatrical option and you look PVOD, you look at other models, theatrical to PVOD and greenlight on that basis and we’re just seeing more opportunity than ever before. So I don’t think it’s a — I don’t think it’s a right sized film for that model. I think it just has to do with what film what customers you are trying to reach, where are those customers what’s available in the marketplace at the time? We have — we reorganized our overall structure internally to really bring all those groups together. What I can tell you is that, our distribution and marketing teams are working like never before across every model and unlocking a ton of value.

Thomas Yeh — Morgan Stanley — Analyst

Okay, great. Thank you both.

James Marsh — Head of Investor Relations

Next question Caroline?

Operator

Our next question comes from the line of Jim Goss from Barrington Research. Your line is open. Please go ahead.

James Goss — Barrington Research — Analyst

Okay, thanks. A number — a couple of questions, one regarding the film slate and the — you made an interesting in pointing about sort of John Wick maybe perhaps being fodder for your series. Do you see more and more opportunity for increasing interplay between the film and TV production, especially since Starz has been improving its presence?

Jon Feltheimer — Chief Executive Officer

Absolutely, look we’ve — you’ve heard us talk about Lionsgate 360 a lot over the last couple of years. We are very, very integrated across this entire company, and so whether — when we’re making a movie, when TV is buying rights for television series. We have a regular group that meets and looks at each piece of content, in terms of how we can maximize it across every piece of our platform, I think John Wick and The Continental series is a great example of that. But there are a number of properties, 1619 is a great example of that where we’re working together, to make sure [Speech Overlap]. Blindspotting, yes so there is — it’s sort of a regular part of our business, and I think something that we do better than anybody out there, because we are so integrated and we work in a way that I think that — where I think you find silos in other places, I think this organization is really reaping the benefits of that level of integration and collaboration.

James Goss — Barrington Research — Analyst

Okay. And then with regard to Starz, as you been able to increase its profile globally as well as domestically, can you talk about the consistency of the programming in domestic markets versus the various international markets? Are you able to leverage a lot of the programming and do you have to have a lot of unique content in H1 to make that work? And also you mentioned that Starz, I think had a lot of complementary positioning, relative to some of the other services. Does that — do you feel that creates a better runway, or are you starting to get Starz as a first buy more cases, as you develop a better identity than you had originally?

Jeffrey A. Hirsch — President and Chief Executive Officer, Starz

Good question. So I think first and foremost, the international expansion is really predicated on leaning on the domestic business as a foundational element. And so the slate, as we continue to increase the marketing and the spending on the domestic content, it has to work globally. And so if you look at Girlfriend Experience as a perfect example. That had been a domestic show. We had moved the storyline to London with a very international cast, with a very international storyline that should work all over the world. The Power franchise is one of the best performing shows in the U.K. and in France and in some markets in LatAm. And so, as we look at putting shows on the domestic network, we’re always looking at how does that play internationally. But we also know that some of those shows won’t play internationally. So we are augmenting those shows with third party purchases from other partners domestically.

And I would say, also I think the really unique industrial logic about putting the companies together, is the ability to lean into the — Joe just talked about the Motion Picture IP to put content on the air in terms of series, whether it’s Blindspotting and The Continental, leaning in with Kevin on some of the library or our originals that we’re producing out of Spain, out of India, out of LatAm. So it really supplements our global content footprint. And so I feel like the slate is really going to work around the world and augment where we need to.

James Goss — Barrington Research — Analyst

Okay, thanks. Appreciate it.

James Marsh — Head of Investor Relations

All right. Thanks, Jim.

Operator

[Operator Instructions] Our next question comes from the line of Kutgun Maral from RBC Capital Markets. Your line is open. Please go ahead.

Kutgun Maral — RBC Capital — Analyst

Great, thank you. Two if I could. First, in terms of the increased investment in content and marketing you expect across the core business in 2022, can you provide more color on where you see the greatest opportunity to lean into, in terms of Starz television or Motion Pictures? And then if you could kind of help frame the magnitude of the increase you’re thinking about, I guess since fiscal ’21 has been so disrupted with COVID, how do we think about the path ahead relative to maybe fiscal ’19 or pre-pandemic fiscal 2020 levels? And then I have a follow-up on Starz?

Jeffrey A. Hirsch — President and Chief Executive Officer, Starz

Sure. Thanks. Well, absolutely, I mean, speaking of pre-pandemic levels. You know, I would expect the content marketing spend as a percentage of revenues to be pretty much in line with what we incurred in fiscal ’20 as an example. Across all our businesses, we’re finding Motion Picture TV and Starz, great opportunities to drive revenue and secure our future with investments across all three of the business units. So overall, that’s driving increased revenues. So I would expect the overall impact on net profits to be modest.

Kutgun Maral — RBC Capital — Analyst

Understood. Okay, that’s very helpful. Thanks. And then if I could on Starz domestic OTT, in the quarter and net adds, if I think about 300,000, seemed to be a bit of a deceleration versus the earlier days of COVID, when you had of course the very robust trends from the pull forward of demand. I guess, up until this point you’ve grown that subscriber base so impressively, Going forward is this quarter’s pace, what you see as maybe the new normal range of Starz domestic OTT net adds that we should expect going forward?

Jeffrey A. Hirsch — President and Chief Executive Officer, Starz

It’s a great question. We had a really big quarter last quarter, but that was I think driven more from the content that we had on the air. We had two monster hits with P-Valley and the premier of Ghost in last quarter, and we saw great subscriber growth there. If you go back in history and you look at every time we put the Power franchise on, well you’d see this really spikes up that quarters. This quarter we had some of our smaller shows on, and so you saw the growth slow a bit. But we expect fourth quarter globally to look much more like second quarter, in terms of the cadence of subscriber gains.

And then, as John said in his prepared remarks, we are coming off our most robust and fully complete slate that we’ve ever had in the business, with three Power shows, P-Valley coming back, Hightown coming back, a bunch of new content that we’re about to announce. And so it’s our best and most complete slate and so you will see acceleration and growth, but also we’ve scheduled this — and Ali can talk about it in a minute. We scheduled it to help reduce churn, and so as we fill out two shows on the air every week, 52 weeks of the year, we should continue to see churn come down to an all-time low, and accelerate the business even more on the front end. Ali, you want to add anything on that?

Alison Hoffman — President, Domestic Networks, Starz

Yeah. Just we will be consistently on the air with shows for women and underrepresented audiences next year. And just to repeat what Jeff said three instalments of the Power franchise and also Outlander happening next year, in addition to a slate of other new series that we really have. Great expectations for them.

Kutgun Maral — RBC Capital — Analyst

Thank you so much.

Operator

And our next question comes from the line of Alexia Quadrani from J.P. Morgan. Your line is open. Please go ahead.

Alexia Quadrani — J.P. Morgan — Analyst

Thank you. I wanted to follow-up on your…

Jon Feltheimer — Chief Executive Officer

Hey Alexia.

Alexia Quadrani — J.P. Morgan — Analyst

Hey there, how are you guys doing? I wanted to follow up on your earlier comments about distribution, you know theatrical versus streaming, and just dig into that a little bit further. You know, ultimately I guess when the pandemic is behind us, I’m curious to how you see the distribution sort of platform — how much it has changed in terms of the decision of how much go to traditional box office, versus streaming? And also, if you have any color on how maybe the economics of the various outlets you know impact your business? And then I have a follow-up?

Jon Feltheimer — Chief Executive Officer

Sure Alexia. So what I would say to you is that, much like Starz, we’re moving — we’ve leaned heavily into content. We will have over 40 films across all of our various distribution platforms that will be released in ’22 and that should grow again into ’23, and that’s a reflection of, one, our expectation that the theatrical market is going to come back, but that these opportunities that we’re taking advantage of now, these new windows, these new ways of distributing consumers, consuming in a different way and platform appetite downstream, we think what we have is an environment where there is actually added opportunity. It’s not one versus the other. And so we’ve leaned into content accordingly, structured the business accordingly.

As it relates to the metrics, certainly what we’ve seen in the last year is that when you are able to collapse some of these windows, you move quickly from theatrical to — into PVOD or directly in into PVOD and then move up some of your other windows, depending on the particular film, which you do and you can also gear marketing spending differently. We’ve been able to be more efficient in certain cases with our marketing spend. We’ve been able to accelerate cash churn in some of these new models. And so it has actually improved our metrics on our films that are released in these alternative models. We’ve also — along with that, the team we call segment to-our-home entertainment team that does this business, has actually accelerated. They’ve increased the volume of content, because they’re seeing the kind of opportunity.

So it’s — the metrics in some of these new models are really compelling, and yet we still believe very strongly in the value of theatrical release and really set up the long-term value for our titles, and ultimately help drive library.

Jeffrey A. Hirsch — President and Chief Executive Officer, Starz

The only thing I would add to that, Alexia, I’d add one more thing, which is — every single piece of content that we play with, is a bespoke model. A few people have mentioned already, there is communication between all of our divisions that happens 10 times every single day. And so, when there is a picture — Joe is looking at every one of our distribution channels, including Starz and saying, how can we add value to what would be a normal model here? And as I say, it’s kind of a unique culture that we have at our company.

Alexia Quadrani — J.P. Morgan — Analyst

Thank you. And then just a quick follow-up on the share price; stocks you know pretty much doubled, offloads in recent weeks. I think it’s largely — at least through March, where I did technicals, where we’re seeing that across some these value names in media. Just curious on how you view the share price now, and any drivers behind the move that we might be missing outside of that? Any color there?

James Barge — Chief Financial Officer

Hey Alexia. It’s certainly, nice to see investors beginning to recognize our improving fundamentals. But those fundamentals, they are rapidly increasing our asset base and building real value across all of our core businesses every day. And we obviously appreciate the attention the equity is starting now to garner.

Alexia Quadrani — J.P. Morgan — Analyst

Thank you.

Operator

[Operator Instructions] There are no further questions in the question queue.

James Marsh — Head of Investor Relations

Great. Thank you, Caroline. I’ll just make a closing statement. Here. I would like everyone to please refer to the Press Release and Events tab under the Investor Relations section of the company’s website for a discussion of certain non-GAAP forward-looking measures discussed on the call today. Thank you very much.

Operator

And ladies and gentlemen, this conference will be available for replay after 4:00 PM today through February 6th, at midnight. You may access the AT&T Executive replay system at any time by dialing 1866-207-1041 and entering the access code of 1780119. International participants may dial 402-970-0847. Those numbers again are 1866-207-1041 and international 402-970-0847 with access code of 1780119.

That does conclude our conference for today. Thank you for your participation and for using AT&T conferencing services. You may now disconnect.

Duration: 44 minutes

Call participants:

James Marsh — Head of Investor Relations

Jon Feltheimer — Chief Executive Officer

James Barge — Chief Financial Officer

Steven Cahall — Wells Fargo — Analyst

Tim Nollen — Macquarie Securities — Analyst

Jeffrey A. Hirsch — President and Chief Executive Officer, Starz

Alison Hoffman — President, Domestic Networks, Starz

Superna Kalle — Executive Vice President, International Digital Networks

Alan Gould — Loop Capital — Analyst

Kevin Beggs — TV Group Chairman

Thomas Yeh — Morgan Stanley — Analyst

Joe Drake — Chairman of the Motion Picture Group

James Goss — Barrington Research — Analyst

Kutgun Maral — RBC Capital — Analyst

Alexia Quadrani — J.P. Morgan — Analyst

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