INDIANAPOLIS, May 7, 2015 /PRNewswire/ -- Emmis Communications
Corporation (NASDAQ: EMMS) today announced results for its fourth
fiscal quarter and full-year ending February
28, 2015.
Emmis' radio net revenues for the fourth fiscal quarter were
$38.8 million, up from $32.3 million from the prior year, an increase of
20%. On a pro forma basis, Emmis' revenues reported to Miller Kaplan in the markets where Emmis
competes (excluding barter and syndication revenue) were up 0.8% in
markets down 2.5%.
For the full year, radio revenues were $176.3 million, compared to $145.3 million in the prior year, an increase of
21%. On a pro forma basis, Emmis' revenues reported to
Miller Kaplan in the markets where
Emmis competes (excluding barter and syndication revenue) were up
1.6% in markets down 3.7%.
February marked the 15th consecutive month in which
Emmis outperformed the markets in which it competes. Every
measured Emmis market outperformed for full year fiscal 2015. Emmis
stations in New York, Los Angeles and Austin all outperformed their markets in the
fourth fiscal quarter.
"Despite weakened markets and a challenged industry, Emmis once
again outperformed. The radio industry needs a catalyst for
growth, and we are convinced we have it with NextRadio, the
Emmis-developed free smartphone app that marries over-the-air local
FM broadcasts with visual and interactive features," Jeff Smulyan, President & CEO of Emmis
said.
The radio industry's consumer awareness campaign for NextRadio
has had remarkable results, further validating the promotional
power of radio.
"Consumers exposed to NextRadio overwhelmingly love it," Smulyan
said. "Average Time Spent Listing (ATSL) per session on NextRadio
is nearly double traditional listening, all major radio companies
are supporting the effort, and we are adding 350,000 activations
each month. The momentum is tremendous."
Station operating income (SOI) during the quarter was
$6.7 million, compared to
$6.9 million for the same quarter of
the prior year. For the full year, SOI was $53.4 million, compared to $48.3 million in the prior year.
During the fourth fiscal quarter, Emmis recorded noncash
impairment losses totaling $74.6
million ($6.7 million of which
is reflected in other (expense), income, net) and recorded a full
valuation allowance against its deferred tax assets. These
noncash impairment charges and the valuation allowance have no
impact on Emmis' cash flows, debt compliance, or ongoing
operations.
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 digital playback of the call will be available
until 6 p.m. on Thursday, May 21 by dialing 203-369-0390.
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 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;
- competition from new or different technologies;
- increased competition in our markets and the broadcasting
industry including our competitors changing the format of a station
they operate to more directly compete with a station we
operate in the same market;
- 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;
- 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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2015
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2014
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2015
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2014
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OPERATING
DATA:
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Net
revenues:
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Radio
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$
38,757
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$
32,309
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$ 176,250
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$ 145,276
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Publishing
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14,445
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14,612
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|
61,142
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59,747
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Emerging Technologies
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228
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51
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|
546
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|
123
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Total net
revenues
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53,430
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46,972
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237,938
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205,146
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Station
operating expenses excluding depreciation and amortization expense and LMA
fees:
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Radio
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29,954
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24,831
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|
117,167
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97,564
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Publishing
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15,625
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15,315
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60,083
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59,085
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Emerging Technologies
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1,271
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665
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3,759
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|
2,360
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Total station
operating expenses excluding depreciation and amortization expense and LMA
fees
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46,850
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40,811
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181,009
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|
159,009
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Corporate
expenses excluding depreciation and amortization expense
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3,450
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|
3,901
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|
14,922
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|
17,024
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LMA
fees
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-
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-
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4,208
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-
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Hungary
license litigation and related expenses
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49
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|
263
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|
521
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|
2,058
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Depreciation
and amortization
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1,500
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|
1,259
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5,926
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|
4,866
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Impairment
loss
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67,915
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-
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67,915
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-
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Gain on
contract settlement
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-
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-
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(2,500)
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-
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Loss (gain) on
disposal of assets
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-
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2
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-
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(8)
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Operating
(loss) income
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(66,334)
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736
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(34,063)
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22,197
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Interest
expense
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(5,228)
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(1,627)
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(17,101)
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(7,068)
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Loss on debt
extinguishment
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-
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-
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(1,455)
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(653)
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Other
(expense) income, net
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(6,648)
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22
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(6,418)
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116
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|
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(Loss) Income
before income taxes
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(78,210)
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(869)
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(59,037)
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14,592
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(Benefit)
Provision for income taxes
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27,868
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(34,974)
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36,948
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(34,063)
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Consolidated
net (loss) income
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(106,078)
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34,105
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(95,985)
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48,655
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Net (loss)
income attributable to noncontrolling interests
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(280)
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|
944
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3,274
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|
5,174
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Net (loss)
income attributable to the Company
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(105,798)
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33,161
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(99,259)
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43,481
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Gain on
extinguishment of preferred stock
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-
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-
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-
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325
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Net (loss)
income attributable to common shareholders
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$
(105,798)
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$
33,161
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$ (99,259)
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$ 43,806
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Basic net income per common
share
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$
(2.47)
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$
0.82
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$ (2.33)
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$ 1.08
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Diluted net income per
common share
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$
(2.47)
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$
0.71
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$ (2.33)
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$ 0.94
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Basic weighted average
shares outstanding
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42,818
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40,682
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42,537
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40,506
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Diluted weighted average
shares outstanding
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42,818
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46,606
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42,537
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46,042
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OTHER
DATA:
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Station
operating income (See below)
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$
6,747
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$
6,927
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$ 53,441
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$ 48,373
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(Refund from)
cash paid for income taxes, net
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-
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112
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243
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(903)
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Cash paid for
interest
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3,722
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1,468
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9,781
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6,289
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Capital
expenditures
|
949
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780
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3,514
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3,057
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Noncash
compensation by segment:
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Radio
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$
59
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$
497
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$ 434
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$ 1,477
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Publishing
|
108
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269
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286
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759
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Corporate & Emerging Technologies
|
518
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565
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2,093
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2,648
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Total
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$
685
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$
1,331
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$ 2,813
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$ 4,884
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COMPUTATION OF
STATION OPERATING INCOME:
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Operating
(loss) income
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$
(66,334)
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$
736
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$ (34,063)
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$ 22,197
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Plus:
Depreciation and amortization
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1,500
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1,259
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5,926
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4,866
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Plus:
Hungary litigation expense and related costs
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49
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263
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|
521
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2,058
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Plus:
Corporate expenses
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3,450
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3,901
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14,922
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17,024
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Plus:
Station noncash compensation
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167
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766
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|
720
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2,236
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Less:
Gain on contract settlement
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-
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-
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(2,500)
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-
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Less:
Loss (gain) on sale of assets
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-
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|
2
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|
-
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(8)
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Station
operating income
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$
6,747
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$
6,927
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$ 53,441
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$ 48,373
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|
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|
|
|
|
|
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|
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SELECTED BALANCE
SHEET INFORMATION:
|
February 28,
2015
|
|
February 28,
2014
|
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Total Cash and Cash
Equivalents
|
$
3,669
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$
5,304
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Credit Agreement
Debt
|
$
93,000
|
|
$
54,000
|
|
|
|
|
98.7FM Nonrecourse
Debt
|
$
70,401
|
|
$
74,942
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/emmis-announces-fourth-quarter-and-full-year-earnings-300079131.html
SOURCE Emmis Communications Corporation