INDIANAPOLIS, July 9, 2014 /PRNewswire/ -- Emmis
Communications Corporation (NASDAQ: EMMS) today announced results
for its first fiscal quarter ending May 31,
2014.
Emmis' radio net revenues for the first fiscal quarter were up
22%, from $36.9 million to $45.0
million. This includes reported revenue from New York's WBLS 107.5 FM and WLIB 1190 AM,
which Emmis began operating pursuant to a Local Marketing Agreement
("LMA") on March 1, 2014. On a pro
forma basis, assuming results for WBLS and WLIB were included in
the same quarter of the prior year, radio revenues would have been
flat. Per Miller Kaplan
reporting, which excludes barter revenues and syndication revenues,
Emmis' stations were up 1.6% compared to local radio market
revenues down 5.5% during the fiscal quarter.
Publishing net revenues were up 7% in the first fiscal quarter,
driven by higher advertising rates and an increase in custom
publishing business.
For the first fiscal quarter, operating income was $6.6 million, compared to $7.0 million for the same quarter of the prior
year. Emmis' station operating income for the first fiscal
quarter was $13.4 million, compared
to $13.1 million for the same quarter
of the prior year.
"While our markets continue to be tested, our stations and
employees have risen to the challenge and continue to outperform
our markets," Jeff Smulyan,
President & CEO of Emmis said. "We continue to believe
NextRadio, the Emmis-led industry initiative to make FM broadcast
radio available on smartphones and tablets, is a game-changer for
the radio industry and will reignite growth. We have spent the last
year building out the NextRadio ecosystem, and now we are entering
a critical phase to build consumer awareness. I'm proud of
our team for its continuing focus on innovation and operational
excellence."
A conference call regarding earnings will be hosted today at
9 a.m. Eastern by dialing
1-517-623-4891. Questions may be submitted via email to
ir@emmis.com. A replay of the call will be available until
6 p.m. on Wednesday, July 23 by dialing 1-203-369-3625.
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.
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 19 FM and
4 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.
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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|
|
|
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CONDENSED
CONSOLIDATED FINANCIAL DATA
|
(Unaudited, amounts
in thousands, except per share data)
|
|
|
|
|
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|
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|
|
|
|
|
|
Three months ended
May 31,
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|
2014
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2013
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OPERATING
DATA:
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|
Net
revenues:
|
|
|
|
|
Radio
|
|
$
45,046
|
|
$
36,926
|
Publishing
|
|
14,678
|
|
13,660
|
Total net
revenues
|
|
59,724
|
|
50,586
|
Station
operating expenses excluding
|
|
|
|
|
depreciation and amortization expense and LMA fees:
|
|
|
|
|
Radio
|
|
27,986
|
|
22,911
|
Publishing
|
|
14,940
|
|
14,801
|
Total station
operating expenses excluding
|
|
|
|
|
depreciation and amortization expense
|
|
42,926
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|
37,712
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Corporate
expenses excluding depreciation
|
|
|
|
|
and amortization
expense
|
|
4,890
|
|
4,400
|
LMA
fees
|
|
3,825
|
|
-
|
Hungary
license litigation and related expenses
|
|
92
|
|
252
|
Depreciation
and amortization
|
|
1,353
|
|
1,176
|
Gain on sale
of assets
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|
(3)
|
|
-
|
|
|
|
|
|
Operating
income
|
|
6,641
|
|
7,046
|
Interest
expense
|
|
(1,600)
|
|
(1,921)
|
Other income,
net
|
|
11
|
|
7
|
|
|
|
|
|
Income before
income taxes
|
|
5,052
|
|
5,132
|
Provision for
income taxes
|
|
2,385
|
|
175
|
|
|
|
|
|
Consolidated
net income
|
|
2,667
|
|
4,957
|
Net income
attributable to noncontrolling interests
|
|
1,711
|
|
1,481
|
|
|
|
|
|
Net income
attributable to the Company
|
|
956
|
|
3,476
|
Gain on
extinguishment of preferred stock
|
|
-
|
|
249
|
Net income
attributable to common shareholders
|
|
$
956
|
|
$
3,725
|
|
|
|
|
|
Basic net income per common
share
|
|
$
0.02
|
|
$
0.09
|
Diluted net income per
common share
|
|
$
0.02
|
|
$
0.08
|
|
|
|
|
|
Basic weighted average
shares outstanding
|
|
42,093
|
|
41,174
|
Diluted weighted average
shares outstanding
|
|
47,347
|
|
45,504
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|
|
|
|
|
|
|
|
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OTHER
DATA:
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|
|
|
|
Station
operating income (See below)
|
|
13,375
|
|
13,127
|
Cash paid for
(refund from) income taxes, net
|
|
278
|
|
(666)
|
Cash paid for
interest
|
|
1,370
|
|
1,699
|
Capital
expenditures
|
|
625
|
|
1,016
|
|
|
|
|
|
Noncash
compensation by segment:
|
|
|
|
|
Radio
|
|
$
270
|
|
$
169
|
Publishing
|
|
132
|
|
84
|
Corporate
|
|
546
|
|
410
|
Total
|
|
$
948
|
|
$
663
|
|
|
|
|
|
COMPUTATION OF
STATION OPERATING INCOME:
|
|
|
|
|
Operating
income
|
|
$
6,641
|
|
$
7,046
|
Plus:
Depreciation and amortization
|
|
1,353
|
|
1,176
|
Plus:
Hungary litigation expense and related costs
|
|
92
|
|
252
|
Plus:
Corporate expenses
|
|
4,890
|
|
4,400
|
Plus:
Station noncash compensation
|
|
402
|
|
253
|
Less:
Gain on sale of assets
|
|
(3)
|
|
-
|
Station
operating income
|
|
$
13,375
|
|
$
13,127
|
|
|
|
|
|
|
|
|
|
|
SELECTED BALANCE
SHEET INFORMATION:
|
|
May 31,
2014
|
|
February 28,
2014
|
|
|
|
|
|
Total Cash and Cash
Equivalents
|
|
$
2,869
|
|
$
5,304
|
Credit Agreement
Debt
|
|
$
58,000
|
|
$
54,000
|
98.7FM Nonrecourse
Debt
|
|
$
73,857
|
|
$
74,942
|
SOURCE Emmis Communications Corporation