INDIANAPOLIS, Jan. 9, 2014 /PRNewswire/ -- Emmis
Communications Corporation (NASDAQ: EMMS) today announced results
for its third fiscal quarter ending November
30, 2013.
Emmis' radio net revenues for the third fiscal quarter were up
0.4%, and its publishing net revenues were up 9.8%. On a
consolidated basis, total revenues for the quarter were
$52.6 million, compared to
$50.9 million in the same quarter of
the prior year, an increase of 3.4%.
Diluted net income per common share from continuing operations
for the quarter was $0.09, compared
to $0.02 for the same quarter of the
prior year.
For the third fiscal quarter, operating income was $8.7 million, compared to $8.2 million in the same quarter of the prior
year. Emmis' station operating income for the third fiscal
quarter was $13.6 million, compared
to $13.4 million in the same quarter
of the prior year.
"The government shutdown in October, coupled with nonrecurring
political revenues from the prior year, caused significant
headwinds for us and the radio industry. However, Emmis'
ability to grow revenues despite these challenges is a testament to
the talent, ingenuity and hustle of the Emmis team," said
Jeff Smulyan, President & CEO of
Emmis. "Our radio revenues are rebounding in our fourth fiscal
quarter as these challenges have abated and our publishing division
continues to post impressive revenue gains. NextRadio, the
Emmis-led industry initiative to make FM broadcast radio available
on mobile phones via a pre-loaded app, continues to gain momentum
and recently exceeded 100,000 activations. I'm excited about
the progress we are making and the momentum we have heading into
calendar 2014."
Emmis has included supplemental station operating expenses and
certain other financial data on its website,
www.emmis.com under the "Investors" tab.
Emmis generally evaluates the performance of its operating
entities based on station operating income. Management believes
that station operating income is useful to investors because it
provides a meaningful comparison of operating performance between
companies in the industry and serves as an indicator of the market
value of a group of stations or publishing entities. Station
operating income is generally recognized by the broadcast and
publishing industries as a measure of performance and is used by
analysts who report on the performance of broadcasting and
publishing groups. Station operating income does not take into
account Emmis' debt service requirements and other commitments,
and, accordingly, station operating income is not necessarily
indicative of amounts that may be available for dividends,
reinvestment in Emmis' business or other discretionary uses.
Station operating income is not a measure of liquidity or of
performance, in accordance with accounting principles generally
accepted in the United States, and
should be viewed as a supplement to, and not a substitute for, our
results of operations presented on the basis of accounting
principles generally accepted in the
United States. Operating Income is the most directly
comparable financial measure in accordance with accounting
principles generally accepted in the United States.
Moreover, station operating income is not a standardized measure
and may be calculated in a number of ways. Emmis defines station
operating income as revenues net of agency commissions and station
operating expenses, excluding depreciation, amortization and
non-cash compensation. A reconciliation of station operating
income to operating income is attached to this press
release.
The information in this news release is being widely
disseminated in accordance with the Securities & Exchange
Commission's Regulation FD.
There is an earnings call this morning with Emmis executives at
9 am Eastern. To access the
third-quarter earnings conference call, please dial in at
1-517-623-4891 at 9 am. Please
submit questions prior or during the call to ir@emmis.com. A
digital playback of the call will be available until 5 p.m. on Tuesday, Jan.
21 by dialing 1-402-220-3756.
Emmis Communications – Great Media, Great People, Great
Service®
About Emmis Communications
Emmis Communications Corporation is a diversified media company,
principally focused on radio broadcasting. Emmis operates the 10th
largest publicly traded radio portfolio in the United States based on total
listeners. Emmis owns 18 FM and 3
AM radio stations in New
York, Los Angeles,
St. Louis, Austin (Emmis has a 50.1% controlling interest
in Emmis' radio stations located there), Indianapolis and Terre Haute, IN. One of our FM radio
stations in New York is operated
pursuant to a Local Marketing Agreement ("LMA") whereby a third
party provides the programming for the station and sells all
advertising within that programming.
Note: Certain statements included in this press release which
are not statements of historical fact, including but not limited to
those identified with the words "expect," "will" or "look" are
intended to be, and are, by this Note, identified as
"forward-looking statements," as defined in the Securities and
Exchange Act of 1934, as amended. Such statements involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, performance or achievements of the Company to be
materially different from any future result, performance or
achievement expressed or implied by such forward-looking statement.
Such factors include, among others:
- general economic and business conditions;
- fluctuations in the demand for advertising and demand for
different types of advertising media;
- our ability to service our outstanding debt;
- increased competition in our markets and the broadcasting
industry;
- our ability to attract and secure programming, on-air
talent, writers and photographers;
- inability to obtain (or to obtain timely) necessary
approvals for purchase or sale transactions or to complete the
transactions for other reasons generally beyond our
control;
- increases in the costs of programming, including on-air
talent;
- inability to grow through suitable acquisitions or to
consummate dispositions;
- changes in audience measurement systems
- new or changing regulations of the Federal Communications
Commission or other governmental agencies;
- competition from new or different technologies;
- war, terrorist acts or political instability; and
- other factors mentioned in documents filed by the Company
with the Securities and Exchange Commission.
Emmis does not undertake any obligation to publicly update or
revise any forward-looking statements because of new information,
future events or otherwise
EMMIS
COMMUNICATIONS CORPORATION AND SUBSIDIARIES
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CONDENSED
CONSOLIDATED FINANCIAL DATA
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(Unaudited, amounts
in thousands, except per share data)
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Three months ended
November 30,
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Nine months ended
November 30,
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2013
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2012
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2013
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2012
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OPERATING
DATA:
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Net
revenues:
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Radio
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$
34,854
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$
34,710
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$
113,039
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$
109,550
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Publishing
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17,767
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16,176
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45,135
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43,233
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Total net
revenues
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52,621
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50,886
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158,174
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152,783
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Station
operating expenses excluding
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depreciation and amortization expense:
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Radio
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23,517
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23,064
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74,428
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75,372
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Publishing
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15,031
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14,335
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43,770
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42,377
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Total station
operating expenses excluding
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depreciation and amortization expense
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38,548
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37,399
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118,198
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117,749
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Corporate
expenses excluding depreciation
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and amortization
expense
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3,653
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3,717
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13,123
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12,850
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Hungary
license litigation and related expenses
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500
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371
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1,795
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|
785
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Depreciation
and amortization
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1,218
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1,218
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3,607
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3,512
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Impairment
loss
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-
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-
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-
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10,971
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(Gain) loss on
sale of assets
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(9)
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23
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(10)
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(9,983)
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Operating
income
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8,711
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8,158
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21,461
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16,899
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Interest
expense
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(1,712)
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(5,361)
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(5,441)
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(18,006)
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Loss on debt
extinguishment
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(653)
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(56)
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(653)
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(1,141)
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Other income,
net
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54
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164
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94
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147
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Income (loss)
before income taxes and
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discontinued operations
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6,400
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2,905
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15,461
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(2,101)
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Provision
(benefit) for income taxes
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732
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976
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911
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(4,948)
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Income from
continuing operations
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5,668
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1,929
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14,550
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2,847
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Income from
discontinued operations, net of tax
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-
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3,707
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-
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40,124
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Consolidated
net income
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5,668
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5,636
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14,550
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42,971
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Net income
attributable to noncontrolling interests
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1,395
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1,036
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4,230
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3,515
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Net income
attributable to the Company
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4,273
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4,600
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10,320
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39,456
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Gain on
extinguishment of preferred stock
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-
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-
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325
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-
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Preferred
stock dividends
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-
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-
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-
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(1,806)
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Net income
attributable to common shareholders
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$
4,273
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$
4,600
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$
10,645
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$
37,650
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Amounts
attributable to common shareholders for basic earnings per
share:
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Continuing operations
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4,273
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893
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10,645
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(2,474)
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Discontinued operations
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-
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3,707
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-
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40,124
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Net income
attributable to common shareholders
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4,273
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4,600
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10,645
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37,650
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Amounts
attributable to common shareholders for diluted earnings per
share:
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Continuing operations
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4,273
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893
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10,320
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(2,474)
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Discontinued operations
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-
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3,707
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-
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40,124
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Net income
attributable to common shareholders
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4,273
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4,600
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10,320
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37,650
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Basic net
income (loss) per common share:
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Continuing operations
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$
0.11
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$
0.02
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$
0.26
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$
(0.06)
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Discontinued operations
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-
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0.10
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-
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1.03
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Net income
attributable to common shareholders
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$
0.11
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$
0.12
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$
0.26
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$
0.97
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Diluted net
income (loss) per common share:
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Continuing operations
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$
0.09
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$
0.02
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$
0.23
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$
(0.06)
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Discontinued operations
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-
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0.08
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-
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1.03
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Net income
attributable to common shareholders
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$
0.09
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$
0.10
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$
0.23
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$
0.97
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Weighted
average shares outstanding:
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Basic
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40,477
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38,976
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40,343
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38,871
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Diluted
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46,212
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45,728
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45,657
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38,871
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OTHER
DATA:
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Station
operating income (See below)
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13,577
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13,447
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39,651
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35,027
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(Refund from)
cash paid for income taxes, net
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(211)
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617
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(1,015)
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1,348
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Cash paid for
interest
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1,536
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2,461
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4,821
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17,838
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Capital
expenditures
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|
420
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1,195
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2,277
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2,151
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Noncash
compensation by segment:
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Radio
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$
-
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$
195
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$
980
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$
485
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Publishing
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4
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136
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490
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293
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Corporate
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467
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1,039
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2,083
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1,546
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Total
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$
471
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$
1,370
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$
3,553
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$
2,324
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COMPUTATION OF
STATION OPERATING INCOME:
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Operating
income
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$
8,711
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$
8,158
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$
21,461
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$
16,899
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Plus:
Depreciation and amortization
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1,218
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1,218
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3,607
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3,512
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Plus:
Corporate expenses
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3,653
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3,717
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13,123
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12,850
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Plus:
Station noncash compensation
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4
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|
331
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|
1,470
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|
778
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Plus:
Impairment loss
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-
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-
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-
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10,971
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Less:
Gain on sale of assets
|
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(9)
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23
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|
(10)
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(9,983)
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Station
operating income
|
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$
13,577
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$
13,447
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$
39,651
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$
35,027
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|
|
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|
|
|
|
|
|
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|
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SELECTED BALANCE
SHEET INFORMATION:
|
|
November 30,
2013
|
|
February 28,
2013
|
|
|
|
|
|
|
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|
|
|
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Total Cash and Cash
Equivalents
|
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$
5,319
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$
8,735
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Credit Agreement
Debt
|
|
$
59,000
|
|
$
67,000
|
|
|
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|
98.7FM Nonrecourse
Debt
|
|
$
76,003
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$
79,068
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SOURCE Emmis Communications Corporation