INDIANAPOLIS, April 3, 2014 /PRNewswire/ -- Emmis
Communications Corporation (NASDAQ: EMMS) today announced results
for its fourth fiscal quarter and full-year ending February 28, 2014.
Emmis' radio net revenues for the fourth fiscal quarter were up
11%, from $29.1 million to $32.4
million. Excluding 98.7FM in New York, which is being programmed by ESPN
pursuant to an LMA, radio net revenues were up 12%. These
results outperformed Emmis' local radio markets in which revenue
growth improved 4% during the quarter.
For the full year, radio net revenues were $145.4 million, compared to $138.6 million in the prior year, an increase of
5%. These results also outperformed Emmis' local radio
markets in which revenue growth improved 3% for the year.
Publishing net revenues were up 3% in the fourth fiscal quarter
and 4% for the full year.
"Fiscal 2014 marked the fourth consecutive year we have
outperformed our local radio markets and the radio industry as a
whole. Our strong operating performance is the result of
sound strategy and its execution by a phenomenal workforce that
makes me so proud. We are very excited about the addition of
WBLS and WLIB in New York and the
momentum behind NextRadio as we head into fiscal 2015,"
Jeff Smulyan, President & CEO of
Emmis said.
For the fourth fiscal quarter, operating income was $0.7 million, compared to a loss of $0.4 million for the same quarter of the prior
year. Emmis' station operating income for the fourth fiscal
quarter was $6.9 million, compared to
$7.1 million for the same quarter of
the prior year. The decrease in station operating income in
the fourth fiscal quarter was due in part to recognition of
incentive compensation expense based on full-year operating results
that were achieved based on strong fourth quarter results, as well
as several non-recurring items, including $0.7 million in severance associated with the
integration of WBLS and WLIB.
For the full year, operating income was $22.2 million, compared to $16.5 million in the prior year. Emmis'
station operating income in fiscal 2014 was $48.4 million, compared to $42.9 million in fiscal 2013.
During the fourth fiscal quarter, Emmis reversed substantially
all of the valuation allowance previously recorded against its
deferred tax assets. As a result, Emmis recorded a benefit
for income taxes of approximately $35
million in the quarter.
At year-end, Emmis' leverage ratio under its senior secured
credit agreement was 2.5x, marking Emmis' lowest leverage ratio
since 2000.
Emmis commenced providing programming and selling advertising at
WBLS and WLIB in New York pursuant
to a Local Programming and Marketing Agreement ("LMA") on
March 1, 2014. Because this LMA
commenced on the first day of Emmis' fiscal 2015, no actual or pro
forma results for these stations are included in this
release. The $0.7 million
severance charge recorded in Emmis' fourth fiscal quarter relates
to Emmis employees in New York
that were notified in February 2014
that their employment was being terminated.
Emmis has included supplemental pro forma net revenues, 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.
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 9th
largest 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 and operates two additional
stations in New York (1 FM and
1 AM) pursuant to a Local Marketing
Agreement ("LMA") whereby Emmis provides the programming for these
stations and sells all advertising within that programming pending
its acquisition of the stations. In addition, one of the FM
radio stations Emmis currently owns in New York is operated pursuant to a LMA by a
third party.
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
February 28,
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Year ended February
28,
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2014
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2013
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2014
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2013
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OPERATING
DATA:
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Net
revenues:
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Radio
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$
32,360
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$
29,080
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$
145,399
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$
138,630
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Publishing
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14,612
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14,221
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59,747
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57,454
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Total net
revenues
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46,972
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43,301
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205,146
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196,084
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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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25,496
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20,458
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99,924
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95,830
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Publishing
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15,315
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15,864
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59,085
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58,241
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Total station
operating expenses excluding
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depreciation and amortization expense
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40,811
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36,322
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159,009
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154,071
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Corporate
expenses excluding depreciation
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and amortization
expense
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3,901
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4,969
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17,024
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17,819
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Hungary
license litigation and related expenses
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263
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|
596
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2,058
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|
1,381
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Depreciation
and amortization
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|
1,259
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|
1,210
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|
4,866
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|
4,722
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Impairment
loss
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-
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448
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-
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11,419
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Loss (gain) on
sale of assets
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2
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106
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(8)
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(9,877)
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Operating
income (loss)
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736
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(350)
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22,197
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16,549
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Interest
expense
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(1,627)
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(2,893)
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(7,068)
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(20,899)
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Loss on debt
extinguishment
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-
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(3,367)
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(653)
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(4,508)
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Other income
(expense), net
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22
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(157)
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116
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(10)
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Income (loss)
before income taxes and
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discontinued operations
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(869)
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(6,767)
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14,592
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(8,868)
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Benefit for
income taxes
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(34,974)
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(2,091)
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(34,063)
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(7,039)
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Income (loss)
from continuing operations
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34,105
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(4,676)
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48,655
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(1,829)
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Income from
discontinued operations, net of tax
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-
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9,956
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-
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50,080
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Consolidated
net income
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34,105
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5,280
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48,655
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48,251
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Net income
attributable to noncontrolling interests
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944
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964
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5,174
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4,479
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Net income
attributable to the Company
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33,161
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4,316
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43,481
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43,772
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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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$
33,161
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$
4,316
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$
43,806
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$
41,966
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Amounts
attributable to common shareholders for basic earnings per
share:
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Continuing operations
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33,161
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(5,640)
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43,806
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(8,114)
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Discontinued operations
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-
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9,956
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-
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50,080
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Net income
attributable to common shareholders
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33,161
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4,316
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43,806
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41,966
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Amounts
attributable to common shareholders for diluted earnings per
share:
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Continuing operations
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33,161
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(5,640)
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43,481
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(8,114)
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Discontinued operations
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-
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9,956
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-
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50,080
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Net income
attributable to common shareholders
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33,161
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4,316
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43,481
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41,966
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Basic net
income (loss) per common share:
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Continuing operations
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$
0.82
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$
(0.14)
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$
1.08
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$
(0.21)
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Discontinued operations
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-
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0.25
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-
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1.29
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Net income
attributable to common shareholders
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$
0.82
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$
0.11
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$
1.08
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$
1.08
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Diluted net
income (loss) per common share:
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Continuing operations
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$
0.71
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$
(0.14)
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$
0.94
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$
(0.21)
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Discontinued operations
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-
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0.25
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-
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1.29
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Net income
attributable to common shareholders
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$
0.71
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$
0.11
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$
0.94
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$
1.08
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Weighted
average shares outstanding:
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Basic
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40,682
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39,532
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40,506
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39,034
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Diluted
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46,606
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39,532
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46,042
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39,034
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OTHER
DATA:
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Station
operating income (See below)
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6,927
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7,053
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|
48,373
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42,865
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Cash paid for
(refund from) income taxes, net
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112
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827
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(903)
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2,175
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Cash paid for
interest
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1,468
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3,973
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6,289
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21,811
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Capital
expenditures
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|
780
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1,213
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3,057
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3,364
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Noncash
compensation by segment:
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Radio
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$
497
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$
90
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$
1,477
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$
575
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Publishing
|
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269
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(16)
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|
759
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|
277
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Corporate
|
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565
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544
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2,648
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2,090
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Total
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$
1,331
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$
618
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$
4,884
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$
2,942
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COMPUTATION OF
STATION OPERATING INCOME:
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Operating
income (loss)
|
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$
736
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$
(350)
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$
22,197
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$
16,549
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Plus:
Depreciation and amortization
|
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1,259
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|
1,210
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|
4,866
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|
4,722
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Plus:
Hungary litigation expense and related costs
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|
263
|
|
596
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|
2,058
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|
1,381
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Plus:
Corporate expenses
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3,901
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|
4,969
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|
17,024
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|
17,819
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Plus:
Station noncash compensation
|
|
766
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|
74
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|
2,236
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|
852
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Plus:
Impairment loss
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|
-
|
|
448
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-
|
|
11,419
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Less:
Loss (gain) on sale of assets
|
|
2
|
|
106
|
|
(8)
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|
(9,877)
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Station
operating income
|
|
$
6,927
|
|
$
7,053
|
|
$
48,373
|
|
$
42,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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SELECTED BALANCE
SHEET INFORMATION:
|
|
February 28,
2014
|
|
February 28,
2013
|
|
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|
|
|
|
|
|
|
|
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Total Cash and Cash
Equivalents
|
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$
5,304
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|
$
8,735
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|
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Credit Agreement
Debt
|
|
$
54,000
|
|
$
67,000
|
|
|
|
|
98.7FM Nonrecourse
Debt
|
|
$
74,942
|
|
$
79,068
|
|
|
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SOURCE Emmis Communications Corporation