INDIANAPOLIS, Jan. 8, 2015 /PRNewswire/ -- Emmis
Communications Corporation (NASDAQ: EMMS) today announced results
for its third fiscal quarter ending November
30, 2014.
Emmis' radio net revenues for the third fiscal quarter were up
29%, from $34.8 million to $44.9
million. This includes reported revenue from New York's WBLS 107.5 FM and WLIB 1190 AM,
which Emmis began operating pursuant to a Local Marketing Agreement
("LMA") on March 1, 2014. On a pro
forma basis, assuming results for WBLS and WLIB were included in
the same quarter of the prior year and consistent with Miller Kaplan reporting, which excludes barter
revenues and syndication revenues, Emmis' radio net revenues would
have been up 6%. This compares favorably to Emmis' local
radio market revenues, which were down 1.6% during the fiscal
quarter on the same basis.
Consistent with Miller Kaplan
reporting, which excludes barter revenues and syndication revenues,
Emmis' pro forma radio net revenues are pacing up mid-single digits
for its fourth fiscal quarter.
For the third fiscal quarter, operating income was $13.1 million, compared to $8.7 million for the same quarter of the prior
year. Emmis' station operating income for the third fiscal
quarter was $18.1 million, compared
to $14.1 million for the same quarter
of the prior year.
"It is a credit to our employees that Emmis' stations again
dramatically outperformed our markets, marking the 12th
consecutive month of share gains. Power 106 in LA was up 18% in a
flat market, and our New York
cluster was up for the quarter and is now significantly
outperforming the NY market," Jeff
Smulyan, President & CEO of Emmis said. "With an
improving labor market and lower energy prices helping to put more
money into the consumer's hands, we are excited about the economic
backdrop as we head into 2015."
"NextRadio, the Emmis-led industry initiative to make FM
broadcast radio available on smartphones and tablets, launched a
new version in October with LiveGuide™ that has been
extremely well received by consumers," Smulyan added. "NextRadio is
pre-loaded in 33 smartphone models, with more coming in 2015,
and we've had more than 1.4 million activations. All major radio
companies support the effort, and our integrated auto platform,
with our strategic partner, iBiquity, is being unveiled at CES in
Las Vegas this week. I couldn't be
more pleased with the effort and the momentum we have coming into
the new year."
A conference call regarding earnings will be hosted today at
9 a.m. Eastern by dialing
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 22 by dialing 203-369-4012.
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
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
November 30,
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Nine months ended
November 30,
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2014
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2013
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2014
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2013
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OPERATING
DATA:
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Net
revenues:
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Radio
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$
44,905
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$
34,811
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$ 137,493
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$ 112,967
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Publishing
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17,906
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17,767
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46,697
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|
45,135
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Emerging Technologies
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149
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43
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|
318
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|
72
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Total net
revenues
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62,960
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52,621
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184,508
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158,174
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Station
operating expenses excluding depreciation and amortization expense and LMA
fees:
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Radio
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28,683
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22,540
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87,213
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72,733
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Publishing
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15,005
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15,031
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44,458
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43,770
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Emerging Technologies
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1,252
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977
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2,488
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1,695
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Total station
operating expenses excluding depreciation and amortization expense and LMA
fees
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44,940
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38,548
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134,159
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118,198
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Corporate
expenses excluding depreciation and amortization expense
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3,241
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3,653
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11,472
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13,123
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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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188
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|
500
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|
472
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|
1,795
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Depreciation
and amortization
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1,482
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|
1,218
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4,426
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3,607
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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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3
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(9)
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-
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(10)
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Operating
income
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13,106
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8,711
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32,271
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21,461
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Interest
expense
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(5,395)
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(1,712)
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(11,873)
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(5,441)
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Loss on debt
extinguishment
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-
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(653)
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(1,455)
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(653)
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Other income,
net
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51
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54
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230
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|
94
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Income before
income taxes
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7,762
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6,400
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19,173
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15,461
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Provision for
income taxes
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4,528
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732
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9,080
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911
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Consolidated
net income
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3,234
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|
5,668
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|
10,093
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14,550
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Net income
attributable to noncontrolling interests
|
411
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|
1,395
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3,554
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4,230
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Net income
attributable to the Company
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2,823
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|
4,273
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6,539
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10,320
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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 income
attributable to common shareholders
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$
2,823
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$
4,273
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$ 6,539
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$ 10,645
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Basic net income per common
share
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$
0.07
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$
0.11
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$ 0.15
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$ 0.26
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Diluted net income per
common share
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$
0.06
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$
0.09
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$ 0.14
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$ 0.23
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Basic weighted average
shares outstanding
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42,702
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40,477
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42,451
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40,353
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Diluted weighted average
shares outstanding
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47,376
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46,212
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47,455
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45,657
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OTHER
DATA:
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Station
operating income (See below)
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$
18,103
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$
14,077
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$ 46,694
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$ 41,446
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(Refund from)
cash paid for income taxes, net
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-
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(211)
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243
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(1,015)
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Cash paid for
interest
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3,664
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1,536
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6,059
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4,821
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Capital
expenditures
|
890
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420
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2,565
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2,277
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Noncash
compensation by segment:
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Radio
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$
60
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$
-
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$ 375
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$ 980
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Publishing
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23
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4
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|
178
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|
490
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Corporate & Emerging Technologies
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514
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467
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1,575
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2,083
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Total
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$
597
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$
471
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$ 2,128
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$ 3,553
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COMPUTATION OF
STATION OPERATING INCOME:
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Operating
income
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$
13,106
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$
8,711
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$ 32,271
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$ 21,461
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Plus:
Depreciation and amortization
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1,482
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1,218
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4,426
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3,607
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Plus:
Hungary litigation expense and related costs
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188
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|
500
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|
472
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1,795
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Plus:
Corporate expenses
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3,241
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3,653
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11,472
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13,123
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Plus:
Station noncash compensation
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83
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4
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553
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1,470
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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:
Gain on sale of assets
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3
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(9)
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-
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(10)
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Station
operating income
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$
18,103
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$
14,077
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$ 46,694
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$ 41,446
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SELECTED BALANCE
SHEET INFORMATION:
|
November 30,
2014
|
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February 28,
2014
|
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Total Cash and Cash
Equivalents
|
$
4,223
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$
5,304
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Credit Agreement
Debt
|
$
195,000
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$
54,000
|
|
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|
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98.7FM Nonrecourse
Debt
|
$
71,567
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$
74,942
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/emmis-announces-third-quarter-earnings-300017414.html
SOURCE Emmis Communications Corporation