Emmis (EMMS) Announces Accelerating Revenue Growth in First Quarter

Emmis pro forma radio revenues up 7%

INDIANAPOLIS, June 28, 2013 /PRNewswire/ — Emmis Communications Corporation (NASDAQ: EMMS) today announced results for its first fiscal quarter ending May 31, 2013.

Emmis’ radio net revenues for the first fiscal quarter were up 6%, from $34.9 million to $36.9 million.  Excluding 98.7FM in New York, which is being programmed by ESPN pursuant to an LMA, radio revenues were up 7%.  These results outperformed Emmis’ local radio markets in which revenue growth improved 5% during the quarter.

For the first fiscal quarter, operating income increased 536% to $7.0 million, compared to $1.1 million for the same quarter of the prior year.  Emmis’ station operating income for the first fiscal quarter was up 55% to $12.9 million, compared to $8.3 million for the same quarter of the prior year.

Diluted net income per common share from continuing operations for the quarter was $0.08, compared to a diluted net loss per common share from continuing operations of $0.07 for the same quarter of the prior year.

“Results like these are the reason that Emmis is known as one of the best operators of radio stations in the country,” Jeff Smulyan, President & CEO of Emmis said.  “In addition to our improving financial performance, our stations and magazines received a number of awards in our first fiscal quarter for community service and content excellence.  I’m so proud of our Emmis team for its consistent track record of creativity, innovation and operating excellence.”

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 10th largest publicly traded radio portfolio in the United States based on total listeners.  Emmis owns 18 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), Indianapolis and Terre Haute, IN.  One of our FM radio stations in New York is operated pursuant to a Local Marketing Agreement (“LMA”) whereby a third party provides the programming for the station and sells all advertising within that programming.

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
CONDENSED CONSOLIDATED FINANCIAL DATA
(Unaudited, amounts in thousands, except per share data)
		Three months ended May 31,
		2013		2012
OPERATING DATA:
Net revenues:
Radio		$                     36,926		$                    34,876
Publishing		13,660		14,092
Total net revenues		50,586		48,968
Station operating expenses excluding
depreciation and amortization expense:
Radio		22,911		26,320
Publishing		14,801		14,252
Total station operating expenses excluding
depreciation and amortization expense		37,712		40,572
Corporate expenses excluding depreciation
and amortization expense		4,400		4,972
Hungary license litigation expense		252		204
Depreciation and amortization		1,176		1,125
Impairment loss		–		10,971
(Loss) gain on sale of assets		–		(10,000)
Operating income		7,046		1,124
Interest expense		(1,921)		(5,767)
Loss on debt extinguishment		–		(484)
Other income, net		7		198
Income (loss) before income taxes and
discontinued operations		5,132		(4,929)
Provision (benefit) for income taxes		175		(4,415)
Income (loss) from continuing operations		4,957		(514)
Loss from discontinued operations, net of tax		–		(2,359)
Consolidated net income (loss)		4,957		(2,873)
Net income attributable to noncontrolling interests		1,481		1,262
Net income (loss) attributable to the Company		3,476		(4,135)
Gain on extinguishment of preferred stock		249		–
Preferred stock dividends		–		(896)
Net income (loss) attributable to common shareholders		$                       3,725		$                    (5,031)
Amounts attributable to common shareholders for basic earnings per share:
Continuing operations		3,725		(2,672)
Discontinued operations		–		(2,359)
Net income (loss) attributable to commonshareholders		3,725		(5,031)
Amounts attributable to common shareholders for diluted earnings per share:
Continuing operations		3,476		(2,672)
Discontinued operations		–		(2,359)
Net income (loss) attributable to commonshareholders		3,476		(5,031)
Basic net loss per common share:
Continuing operations		$                          0.09		$                       (0.07)
Discontinued operations		–		(0.06)
Net income (loss) attributable to commonshareholders		$                          0.09		$                       (0.13)
Diluted net loss per common share:
Continuing operations		$                          0.08		$                       (0.07)
Discontinued operations		–		(0.06)
Net income (loss) attributable to commonshareholders		$                          0.08		$                       (0.13)
Weighted average shares outstanding:
Basic		41,174		38,779
Diluted		45,504		38,779
OTHER DATA:
Station operating income (See below)		12,875		8,343
(Refund from) cash paid for income taxes, net		(666)		194
Cash paid for interest		1,699		7,696
Capital expenditures		1,016		750
Noncash compensation by segment:
Radio		$                           169		$                         100
Publishing		84		51
Corporate		410		238
Total		$                           663		$                         389
COMPUTATION OF STATION OPERATING INCOME:
Operating income		$                       7,046		$                      1,124
Plus:  Depreciation and amortization		1,176		1,125
Plus:  Corporate expenses		4,400		4,972
Plus:  Station noncash compensation		253		151
Plus:  Impairment loss		–		10,971
Less:  Gain on disposal of assets		–		(10,000)
Station operating income		$                     12,875		$                      8,343
SELECTED BALANCE SHEET INFORMATION:		May 31, 2013		February 28, 2013
Total Cash and Cash Equivalents		$                       4,959		$                      8,735
Credit Agreement Debt		$                     66,000		$                    67,000
98.7FM Nonrecourse Debt		$                     78,085		$                    79,068