INDIANAPOLIS, Jan. 7, 2016 /PRNewswire/ -- Emmis
Communications Corporation (NASDAQ: EMMS) today announced results
for its third fiscal quarter ending November
30, 2015.
Emmis' radio net revenues for the third fiscal quarter were down
5.1%. Per Miller Kaplan reporting,
which excludes barter revenues and syndication revenues, Emmis'
third quarter radio revenues were down 5.2% compared to local radio
market revenues up 0.2%. Our Indianapolis, St. Louis, and Austin clusters all beat their markets for the
quarter. Our radio station in Los
Angeles, KPWR-FM, was substantially all of our radio
division's shortfall against its markets due to the launch of a new
direct competitor earlier this year.
Emmis' Publishing division revenues were down 7% for the
quarter, and are flat year to date.
Station operating income for the third fiscal quarter was
$16.3 million, compared to
$18.1 million for the same quarter of
the prior year. For the third fiscal quarter, operating
income was $11.6 million, compared to
$13.1 million for the same quarter of
the prior year.
"Radio industry growth has been disappointing in 2015," said
Jeff Smulyan, CEO of Emmis.
"Our markets are down 2.4% through the first eleven months of
2015. This general decline, coupled with the competitive
situation in Los Angeles, led us
to take a series of steps yesterday, including staff reductions and
pay cuts for senior executives, to restructure our expenses to
better align them with the current operating environment. We remain
confident that we have the best team in media and the solution, in
NextRadio, to return the radio industry to growth. Our
ratings are quite strong in most of our markets, and our
investments in content, sales hiring and training, and NextRadio
and Digonex will begin to yield stronger results in
2016."
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 Thursday, January 21 by dialing
1-402-220-9730.
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;
- competition from new or different media and
technologies;
- loss of key personnel;
- 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;
- fluctuations in the market price of publicly traded or other
securities;
- new or changing regulations of the Federal Communications
Commission or other governmental agencies;
- changes in radio audience measurement
methodologies;
- 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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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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$
42,634
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$
44,905
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$
132,789
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$
137,493
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Publishing
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16,658
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17,906
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46,775
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46,697
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Emerging Technologies
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322
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149
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985
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318
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Total net
revenues
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59,614
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62,960
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180,549
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184,508
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Station
operating expenses excluding
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depreciation and amortization expense and LMA fees:
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Radio
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27,352
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28,683
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87,925
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87,213
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Publishing
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14,310
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15,005
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43,557
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44,458
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Emerging Technologies
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1,992
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1,252
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5,449
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2,488
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Total station
operating expenses excluding
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depreciation and amortization expense and LMA fees
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43,654
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44,940
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136,931
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134,159
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Corporate
expenses excluding depreciation
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and amortization
expense
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2,810
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3,241
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10,116
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11,472
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LMA
fees
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-
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-
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-
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4,208
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Hungary
license litigation and related expenses
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-
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188
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-
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472
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Depreciation
and amortization
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1,532
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1,482
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4,385
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4,426
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Gain on
contract settlement
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-
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-
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-
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(2,500)
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Loss on
disposal of assets
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-
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3
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-
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-
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Operating
income
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11,618
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13,106
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29,117
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32,271
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Interest
expense
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(4,768)
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(5,395)
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(14,259)
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(11,873)
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Loss on debt
extinguishment
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-
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-
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-
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(1,455)
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Other income,
net
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7
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51
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845
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230
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Income before
income taxes
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6,857
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7,762
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15,703
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19,173
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Provision for
income taxes
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889
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4,528
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2,662
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9,080
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Consolidated
net income
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5,968
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3,234
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13,041
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10,093
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Net income
attributable to noncontrolling interests
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420
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|
411
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1,574
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3,554
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Net income
attributable to the Company
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5,548
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2,823
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11,467
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6,539
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Basic net income per common
share
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$
0.12
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$
0.07
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$
0.26
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$
0.15
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Diluted net income per
common share
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$
0.12
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$
0.06
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$
0.24
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$
0.14
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Basic weighted average
shares outstanding
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44,400
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42,702
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43,844
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42,451
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Diluted weighted average
shares outstanding
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47,504
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47,376
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47,451
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47,455
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OTHER
DATA:
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Station
operating income (See below)
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$
16,325
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$
18,103
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$
45,228
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$
46,694
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Cash paid for
income taxes, net
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-
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-
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216
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243
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Cash paid for
interest
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4,154
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3,664
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12,567
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6,059
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Capital
expenditures
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662
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890
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1,943
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2,565
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Noncash
compensation by segment:
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Radio
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$
284
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$
60
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$
1,125
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$
375
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Publishing
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28
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23
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385
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178
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Emerging Technologies
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53
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-
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100
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-
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Corporate
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539
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514
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3,059
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1,575
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Total
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$
904
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$
597
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$
4,669
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$
2,128
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COMPUTATION OF
STATION OPERATING INCOME:
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Operating
income
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$
11,618
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$
13,106
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$
29,117
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$
32,271
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Plus:
Depreciation and amortization
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1,532
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1,482
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4,385
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4,426
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Plus:
Hungary litigation expense and related costs
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-
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188
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-
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472
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Plus:
Corporate expenses
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2,810
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3,241
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10,116
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11,472
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Plus:
Station noncash compensation
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365
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83
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1,610
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553
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Less:
Gain on contract settlement
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-
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-
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-
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(2,500)
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Less:
Loss on disposal of assets
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-
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3
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-
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-
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Station
operating income
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$
16,325
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$
18,103
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$
45,228
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$
46,694
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SELECTED BALANCE
SHEET INFORMATION:
|
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November 30,
2015
|
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February 28,
2015
|
|
|
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|
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Total Cash and Cash
Equivalents
|
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$
4,316
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$
3,669
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Credit Agreement
Debt
|
|
$
188,687
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$
193,000
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98.7FM Nonrecourse
Debt
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$
66,692
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$
70,401
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/emmis-announces-third-quarter-earnings-300200475.html
SOURCE Emmis Communications Corporation