INDIANAPOLIS, Oct. 6, 2016 /PRNewswire/ -- Emmis
Communications Corporation (NASDAQ: EMMS) today announced results
for its second fiscal quarter, ending August
31, 2016.
Emmis' radio net revenues for the second fiscal quarter were
down 3.3%, from $47.6 million to $46.0
million. Per Miller Kaplan
reporting, which excludes barter and syndication revenues, Emmis
radio revenues were down 3.8% in markets up 1%.
For the second fiscal quarter, operating income declined to
$4.9 million from $9.9 million in the same quarter of the prior
year, partially due to a $3.0 million
noncash impairment charge related to Digonex intangibles.
Publishing net revenues were down 13.5% in the second fiscal
quarter, from $14.6 million to $12.6
million.
On August 18, the Company
announced that it was exploring strategic alternatives for its
publishing division, excluding Indianapolis Monthly
magazine. The Company also announced it was exploring
strategic alternatives for its Terre
Haute radio stations and WLIB-AM in New York.
"Across the board, this was a difficult quarter," said
Jeff Smulyan, Chairman & CEO of
Emmis. "Third quarter radio revenues are currently pacing flat to
the prior year. We are hopeful that we will see political
advertising tailwinds strengthen as we move through October.
We are increasing marketing spend at some of our largest brands to
boost ratings and to give us a competitive advantage."
"NextRadio continues to make progress on multiple fronts,"
Smulyan continued. "NextRadio-compatible Samsung Galaxy S7, S7 Edge
and Note 7 smartphones are now available across all carriers, and
an industry marketing campaign has begun to promote this to
consumers. NextRadio continues to grow its geographic
footprint and is now available in Mexico, Canada and Peru.
"Lastly, there is marked and deserved interest in our magazines,
and while it is early in the process, I'm optimistic about the
reaction to these marquee brands," Smulyan concluded.
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 playback of the call will be available until
6 p.m. Eastern on Thursday, October 20 by dialing
1-402-998-1734.
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 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. Emmis also developed and
licenses TagStation®, a cloud-based software platform that allows a
broadcaster to manage album art, metadata and enhanced advertising
on its various broadcasts, and developed NextRadio®, a smartphone
application that marries over-the-air FM radio broadcasts with
visual and interactive features on smartphones.
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
August 31,
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Six months ended
August 31,
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2016
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2015
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2016
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2015
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OPERATING
DATA:
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Net
revenues:
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Radio
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$
45,972
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|
$
47,562
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$
88,671
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$
90,155
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Publishing
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12,619
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14,592
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25,711
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30,117
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Emerging Technologies
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183
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328
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|
394
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663
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Total net
revenues
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58,774
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62,482
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114,776
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120,935
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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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31,661
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31,880
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58,936
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60,573
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Publishing
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12,959
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14,038
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26,437
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29,247
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Emerging Technologies
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2,371
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1,816
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4,607
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3,457
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Total station
operating expenses excluding
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depreciation and amortization expense
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46,991
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47,734
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89,980
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93,277
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Corporate
expenses excluding depreciation
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and amortization
expense
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2,453
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|
3,487
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|
5,497
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|
7,306
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Depreciation
and amortization
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|
1,282
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|
1,403
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|
2,614
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|
2,853
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Impairment
loss on intangible assets
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2,988
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-
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2,988
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-
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Loss on
disposal of assets
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|
125
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-
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125
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-
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Operating
income
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4,935
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9,858
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13,572
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17,499
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Interest
expense
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(4,758)
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(4,945)
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(9,448)
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(9,491)
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Other income,
net
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89
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828
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|
132
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|
838
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Income before
income taxes
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|
266
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|
5,741
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4,256
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8,846
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Provision for
income taxes
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664
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826
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1,339
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1,773
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Consolidated
net (loss) income
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(398)
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4,915
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2,917
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|
7,073
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Net (loss)
income attributable to noncontrolling interests
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(733)
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|
521
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(104)
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1,154
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Net income
attributable to the Company
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|
335
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|
4,394
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|
3,021
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5,919
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Basic net income per common
share
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$
0.03
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$
0.40
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$
0.25
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$
0.54
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Diluted net income per
common share
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|
$
0.03
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$
0.37
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$
0.25
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$
0.50
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Basic weighted average
shares outstanding
|
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12,047
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10,950
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11,922
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10,884
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Diluted weighted average
shares outstanding
|
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12,299
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11,813
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12,043
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11,847
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OTHER
DATA:
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Station
operating income (See below)
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$
11,980
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$
15,269
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$
25,330
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$
28,903
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Cash (refund
from) paid for income taxes, net
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(4)
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-
|
|
112
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216
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Cash paid for
interest
|
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4,077
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4,092
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7,943
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8,413
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Capital
expenditures
|
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309
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|
860
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|
711
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1,281
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Noncash
compensation by segment:
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Radio
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$
133
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$
371
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$
400
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$
841
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Publishing
|
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45
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129
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|
99
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357
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Emerging Technologies
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19
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21
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35
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47
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Corporate
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463
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1,140
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982
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2,520
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Total
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$
660
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$
1,661
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$
1,516
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$
3,765
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COMPUTATION OF
STATION OPERATING INCOME:
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Operating
income
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$
4,935
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$
9,858
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$
13,572
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$
17,499
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Plus:
Depreciation and amortization
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1,282
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1,403
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2,614
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2,853
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Plus:
Corporate expenses
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2,453
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3,487
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5,497
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7,306
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Plus:
Station noncash compensation
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197
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|
521
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534
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1,245
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Plus:
Impairment loss on intangible assets
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2,988
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-
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2,988
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-
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Plus:
Loss on disposal of assets
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|
125
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-
|
|
125
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|
-
|
Station
operating income
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$
11,980
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$
15,269
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$
25,330
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|
$
28,903
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|
|
|
|
|
|
|
|
|
|
|
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SELECTED BALANCE
SHEET INFORMATION:
|
|
August 31,
2016
|
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February 29,
2016
|
|
|
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|
|
|
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|
|
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Total Cash and Cash
Equivalents
|
|
$
5,694
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|
$
4,456
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|
|
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Credit Agreement
Debt
|
|
$
185,268
|
|
$
184,762
|
|
|
|
|
98.7FM Nonrecourse
Debt
|
|
$
62,740
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|
$
65,411
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|
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/emmis-announces-second-quarter-earnings-300340318.html
SOURCE Emmis Communications