INDIANAPOLIS, July 7, 2016 /PRNewswire/ -- Emmis
Communications Corporation (NASDAQ: EMMS) today announced results
for its first fiscal quarter ending May 31,
2016.
Emmis' radio net revenues for the first fiscal quarter were up
fractionally, from $42.6 million to $42.7
million. Excluding the company's radio station in
Los Angeles, which is being
negatively affected by a recent format competitor, Emmis' radio net
revenues would have been up 5% in the quarter. Per Miller Kaplan reporting, radio revenues in
Emmis' markets were up 3% in the quarter with and without Los
Angeles.
For the first fiscal quarter, operating income was up 13%, from
$7.6 million to $8.6 million,
primarily due to cost reductions the company implemented in
January 2016.
Publishing net revenues were down 16% in the first fiscal
quarter, from $15.5 million to $13.1
million, partially due to the timing of certain custom
publications that ran in the first quarter of the prior fiscal
year, but will run later in the current fiscal year.
"Our New York radio stations had a stellar first quarter,
growing revenues 11% and beating a healthy New York radio market that was up 4% in the
quarter," said Jeff Smulyan,
Chairman & CEO of Emmis. "Compared to last year, Emmis'
ratings are up across our portfolio, and we are optimistic this
will help drive revenue growth in the second half of the fiscal
year."
"I continue to be amazed and encouraged by the progress the
radio industry is making with NextRadio®, the radio industry's
initiative to make FM broadcast radio available on smartphones and
tablets," Smulyan continued. "The Samsung Galaxy S7 and S7 Edge
will soon be NextRadio compatible across all major wireless
carriers in the United States, and
with the support of handset makers BLU, Alcatel, and others, we
have launched NextRadio in Canada
and Peru."
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, July 21 by dialing 203-369-0514.
Emmis will host its Annual Shareholders' Meeting today at
10 am at Emmis Headquarters on
Monument Circle in Indianapolis.
The previously announced one-for-four reverse stock split is
expected to be approved, and the first day of trading that reflects
the reverse stock split is expected to be Friday, July 8th.
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:
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
|
|
|
|
|
|
CONDENSED
CONSOLIDATED FINANCIAL DATA
|
(Unaudited, amounts
in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
May 31,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
OPERATING
DATA:
|
|
|
|
|
Net
revenues:
|
|
|
|
|
Radio
|
|
$
42,699
|
|
$
42,593
|
Publishing
|
|
13,092
|
|
15,525
|
Emerging Technologies
|
|
211
|
|
335
|
Total net
revenues
|
|
56,002
|
|
58,453
|
Station
operating expenses excluding
|
|
|
|
|
depreciation and amortization expense:
|
|
|
|
|
Radio
|
|
27,275
|
|
28,693
|
Publishing
|
|
13,478
|
|
15,209
|
Emerging Technologies
|
|
2,236
|
|
1,641
|
Total station
operating expenses excluding
|
|
|
|
|
depreciation and amortization expense
|
|
42,989
|
|
45,543
|
Corporate
expenses excluding depreciation
|
|
|
|
|
and amortization
expense
|
|
3,044
|
|
3,819
|
Depreciation
and amortization
|
|
1,332
|
|
1,450
|
|
|
|
|
|
Operating
income
|
|
8,637
|
|
7,641
|
Interest
expense
|
|
(4,690)
|
|
(4,546)
|
Other income,
net
|
|
43
|
|
10
|
|
|
|
|
|
Income before
income taxes
|
|
3,990
|
|
3,105
|
Provision for
income taxes
|
|
675
|
|
947
|
|
|
|
|
|
Consolidated
net income
|
|
3,315
|
|
2,158
|
Net income
attributable to noncontrolling interests
|
|
629
|
|
633
|
|
|
|
|
|
Net income
attributable to the Company
|
|
2,686
|
|
1,525
|
|
|
|
|
|
|
|
|
|
|
Basic net income per common
share
|
|
$
0.06
|
|
$
0.04
|
Diluted net income per
common share
|
|
$
0.06
|
|
$
0.03
|
|
|
|
|
|
Basic weighted average
shares outstanding
|
|
47,070
|
|
43,217
|
Diluted weighted average
shares outstanding
|
|
47,295
|
|
47,373
|
|
|
|
|
|
|
|
|
|
|
OTHER
DATA:
|
|
|
|
|
Station
operating income (See below)
|
|
$
13,350
|
|
$
13,634
|
Cash paid for
income taxes, net
|
|
116
|
|
216
|
Cash paid for
interest
|
|
3,866
|
|
4,321
|
Capital
expenditures
|
|
402
|
|
421
|
|
|
|
|
|
Noncash
compensation by segment:
|
|
|
|
|
Radio
|
|
$
267
|
|
$
470
|
Publishing
|
|
54
|
|
228
|
Emerging Technologies
|
|
16
|
|
26
|
Corporate
|
|
519
|
|
1,380
|
Total
|
|
$
856
|
|
$
2,104
|
|
|
|
|
|
COMPUTATION OF
STATION OPERATING INCOME:
|
|
|
|
|
Operating
income
|
|
$
8,637
|
|
$
7,641
|
Plus:
Depreciation and amortization
|
|
1,332
|
|
1,450
|
Plus:
Corporate expenses
|
|
3,044
|
|
3,819
|
Plus:
Station noncash compensation
|
|
337
|
|
724
|
Station
operating income
|
|
$
13,350
|
|
$
13,634
|
|
|
|
|
|
|
|
|
|
|
SELECTED BALANCE
SHEET INFORMATION:
|
|
May 31,
2016
|
|
February 29,
2016
|
|
|
|
|
|
Total Cash and Cash
Equivalents
|
|
$
4,284
|
|
$
4,456
|
Credit Agreement
Debt
|
|
$
185,580
|
|
$
184,762
|
98.7FM Nonrecourse
Debt
|
|
$
64,103
|
|
$
65,411
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/emmis-announces-first-quarter-earnings-300295097.html
SOURCE Emmis Communications Corporation