INDIANAPOLIS, July 13, 2017 /PRNewswire/ -- Emmis
Communications Corporation (NASDAQ: EMMS) today announced results
for its first fiscal quarter ending May
31, 2017.
Emmis' radio net revenues for the first fiscal quarter were
$38.7 million, down from $42.7 million in the prior year. Excluding
KPWR in Los Angeles, Emmis' radio
revenues per Miller Kaplan (which
excludes barter and syndication revenues as well as radio stations
in Terre Haute, Indiana sold in
the prior fiscal year), were down 6.7% in markets that were down
1.4%. Emmis' Austin and
St. Louis clusters outperformed
their markets.
During the quarter, Emmis entered into an agreement to sell
KPWR-FM in Los Angeles to an
affiliate of the Meruelo Group for $82.75
million. The Local Marketing Agreement (LMA) for the station
began July 1, 2017 and initial FCC
approval of the license transfer to the Meruelo Group has been
received. Closing is expected to occur in the next 30-60 days. Once
the sale of Power 106 closes, the company's senior credit facility
debt will be reduced by approximately 50%.
"Emmis made difficult but necessary decisions in our first
fiscal quarter – decisions that give us additional flexibility to
address market challenges and opportunities," Jeff Smulyan, CEO & Chairman of the Board of
Emmis said. "Our second fiscal quarter started strong with June up
5%, as record-setting ticket sales for our largest concert, Summer
Jam in New York, provided a nice
boost. While early, both July and August are showing that our
performance is improving."
A conference call regarding earnings will be hosted today at
9 a.m. Eastern today 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 Thursday, July 20 by dialing
1-402-998-1256.
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®
Emmis Communications Corporation is a
diversified media company, principally focused on radio
broadcasting. Emmis owns 16 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) and Indianapolis. 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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|
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CONDENSED
CONSOLIDATED FINANCIAL DATA
|
(Unaudited, amounts
in thousands, except per share data)
|
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Three months ended
May 31,
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2017
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|
2016
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OPERATING
DATA:
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|
|
|
|
Net
revenues:
|
|
|
|
|
Radio
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|
$
38,706
|
|
$
42,699
|
Publishing
|
|
1,144
|
|
13,092
|
Emerging Technologies
|
|
314
|
|
211
|
Total net
revenues
|
|
40,164
|
|
56,002
|
Station
operating expenses excluding
|
|
|
|
|
depreciation and amortization expense:
|
|
|
|
|
Radio
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|
26,134
|
|
27,275
|
Publishing
|
|
1,355
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|
13,478
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Emerging Technologies
|
|
3,741
|
|
2,236
|
Total station
operating expenses excluding
|
|
|
|
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depreciation and amortization expense
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|
31,230
|
|
42,989
|
Corporate
expenses excluding depreciation
|
|
|
|
|
and amortization
expense
|
|
2,743
|
|
3,044
|
Depreciation
and amortization
|
|
978
|
|
1,332
|
|
|
|
|
|
Operating
income
|
|
5,213
|
|
8,637
|
Interest
expense
|
|
(4,666)
|
|
(4,690)
|
Other income,
net
|
|
3
|
|
43
|
|
|
|
|
|
Income before
income taxes
|
|
550
|
|
3,990
|
(Benefit)
provision for income taxes
|
|
(22)
|
|
675
|
|
|
|
|
|
Consolidated
net income
|
|
572
|
|
3,315
|
Net income
attributable to noncontrolling interests
|
|
839
|
|
629
|
|
|
|
|
|
Net (loss)
income attributable to the Company
|
|
(267)
|
|
2,686
|
|
|
|
|
|
|
|
|
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Basic net (loss) income per
common share
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|
$
(0.02)
|
|
$
0.23
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Diluted net (loss) income
per common share
|
|
$
(0.02)
|
|
$
0.23
|
|
|
|
|
|
Basic weighted average
shares outstanding
|
|
12,257
|
|
11,768
|
Diluted weighted average
shares outstanding
|
|
12,257
|
|
11,824
|
|
|
|
|
|
|
|
|
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OTHER
DATA:
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|
|
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Station
operating income (See below)
|
|
$
9,083
|
|
$
13,350
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Cash paid for
income taxes, net
|
|
153
|
|
116
|
Cash paid for
interest
|
|
3,399
|
|
3,866
|
Capital
expenditures
|
|
397
|
|
402
|
|
|
|
|
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Noncash
compensation by segment:
|
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|
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|
Radio
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|
$
125
|
|
$
267
|
Publishing
|
|
2
|
|
54
|
Emerging Technologies
|
|
22
|
|
16
|
Corporate
|
|
540
|
|
519
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Total
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$
689
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$
856
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|
|
|
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COMPUTATION OF
STATION OPERATING INCOME:
|
|
|
|
|
Operating
income
|
|
$
5,213
|
|
$
8,637
|
Plus:
Depreciation and amortization
|
|
978
|
|
1,332
|
Plus:
Corporate expenses
|
|
2,743
|
|
3,044
|
Plus:
Station noncash compensation
|
|
149
|
|
337
|
Station
operating income
|
|
$
9,083
|
|
$
13,350
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|
|
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|
|
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SELECTED BALANCE
SHEET INFORMATION:
|
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May 31,
2017
|
|
February 28,
2017
|
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|
Total Cash and Cash
Equivalents
|
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$
2,190
|
|
$
11,349
|
Credit Agreement
Debt
|
|
$
157,197
|
|
$
152,245
|
98.7FM Nonrecourse
Debt
|
|
$
58,522
|
|
$
59,958
|
Other Nonrecourse
Debt
|
|
$
9,682
|
|
$
8,807
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SOURCE Emmis Communications Corporation