INDIANAPOLIS, Jan. 5, 2017 /PRNewswire/ -- Emmis
Communications Corporation (NASDAQ: EMMS) today announced results
for its third fiscal quarter, ending November 30, 2016.
Emmis' radio net revenues for the third fiscal quarter were down
slightly, from $42.6 million to $42.5
million. Per Miller Kaplan
reporting, which excludes barter and syndication revenues, Emmis
radio revenues were down 1.8% in markets up 2.5%.
For the third fiscal quarter, operating income rose to
$23.8 million from $11.6 million in the same quarter of the prior
year, due to a gain on the sale of Texas Monthly, which
closed during the third quarter.
Reported publishing net revenues were down 18% in the third
fiscal quarter, from $16.6 million to $13.6
million. Pro forma for the sale of Texas
Monthly, publishing net revenues were down 6%.
On August 18, the Company
announced that it was exploring strategic alternatives for its
publishing division, excluding Indianapolis Monthly
magazine. The Company also announced it was exploring
strategic alternatives for its Terre
Haute radio stations and WLIB-AM in New York. Emmis expects to close on the sale
of its Terre Haute radio stations
at the end of January, and is working to close additional asset
sales before the end of its fiscal year in February.
"Emmis Radio is not accustomed to underperforming its markets,"
said Jeff Smulyan, Chairman &
CEO of Emmis. "I was disappointed in our performance, but remain
hopeful that recent ratings gains in Los
Angeles and Austin, coupled
with continued stellar performance in St.
Louis, will lead to better performance in fiscal 2018.
"The general sluggishness in the radio industry makes the need
for NextRadio all the more important," Smulyan continued.
"NextRadio, the smartphone app that provides free, portable FM
radio listening, recently surpassed 10 million downloads and 25
million listening hours. The Samsung Galaxy S7 and S7 Edge
are now FM-enabled across all major wireless carriers in
the United States and we reached
an agreement with Sprint that keeps NextRadio preloaded on their
Android devices.
"If NextRadio succeeds, as I believe it will, it will help solve
major challenges for every radio station, including ours:
establishing a one-to-one relationship with our listeners,
regaining our portability, and making us relevant to a generation
that thinks terrestrial radio is uncool. NextRadio gives us new,
interactive revenue opportunities with current and potential
advertisers – and it takes the compelling content created every day
and provides a new platform for it," Smulyan said.
Smulyan also noted that Digonex, the dynamic pricing service
that Emmis began operating in June
2014, has begun integrating with several ticketing
platforms, helping to accelerate client adoption. Booked
business heading into calendar 2017 is nearly triple that of
calendar 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 playback of the call will be available until
6 p.m. Eastern on Thursday, January 19 by dialing
1-203-369-3180.
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®
Emmis Communications Corporation is a diversified
media company, principally focused on radio broadcasting. 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. 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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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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2016
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2015
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2016
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2015
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OPERATING
DATA:
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Net
revenues:
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Radio
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$
42,462
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$
42,634
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$
131,133
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$
132,789
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Publishing
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13,633
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16,658
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39,344
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46,775
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Emerging Technologies
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204
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322
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598
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|
985
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Total net
revenues
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56,299
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59,614
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171,075
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180,549
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Station
operating expenses excluding
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depreciation and amortization expense:
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Radio
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28,979
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27,352
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87,915
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87,925
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Publishing
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13,828
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14,310
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40,265
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43,557
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Emerging Technologies
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2,619
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1,992
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7,226
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5,449
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Total station
operating expenses excluding
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depreciation and amortization expense
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45,426
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43,654
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135,406
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136,931
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Corporate
expenses excluding depreciation
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and amortization
expense
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3,397
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2,810
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8,894
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10,116
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Depreciation
and amortization
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1,132
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1,532
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3,746
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4,385
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Impairment
loss on intangible assets
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-
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-
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2,988
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-
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Gain on sale
of publishing assets, net of disposition costs
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(17,491)
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-
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(17,491)
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-
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Loss on
disposal of property and equipment
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-
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-
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125
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-
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Operating
income
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23,835
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11,618
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37,407
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29,117
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Interest
expense
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(4,481)
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(4,768)
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(13,929)
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(14,259)
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Loss on debt
extinguishment
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(478)
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-
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(478)
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-
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Other income,
net
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10
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7
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142
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845
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Income before
income taxes
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18,886
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6,857
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23,142
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15,703
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Provision for
income taxes
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629
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889
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1,968
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2,662
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Consolidated
net income
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18,257
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5,968
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21,174
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|
13,041
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Net income
attributable to noncontrolling interests
|
|
581
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|
420
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|
477
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|
1,574
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Net income
attributable to the Company
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17,676
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5,548
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20,697
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11,467
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Basic net income per common
share
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$
1.46
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$
0.50
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$
1.73
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$
1.05
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Diluted net income per
common share
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$
1.43
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$
0.47
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$
1.70
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$
0.97
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Basic weighted average
shares outstanding
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12,114
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11,100
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11,989
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10,961
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Diluted weighted average
shares outstanding
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12,387
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11,876
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12,163
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11,863
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OTHER
DATA:
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Station
operating income (See below)
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$
11,094
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$
16,325
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$
36,424
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$
45,228
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Cash paid for
income taxes, net
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-
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-
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112
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216
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Cash paid for
interest
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4,139
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4,154
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12,082
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12,567
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Capital
expenditures
|
|
692
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662
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1,403
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1,943
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Noncash
compensation by segment:
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Radio
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$
133
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$
284
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$
533
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$
1,125
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Publishing
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67
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28
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166
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385
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Emerging Technologies
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21
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53
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56
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100
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Corporate
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480
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539
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1,462
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3,059
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Total
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$
701
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$
904
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$
2,217
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$
4,669
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COMPUTATION OF
STATION OPERATING INCOME:
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Operating
income
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$
23,835
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$
11,618
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$
37,407
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$
29,117
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Plus:
Depreciation and amortization
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1,132
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1,532
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3,746
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4,385
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Plus:
Corporate expenses
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3,397
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2,810
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8,894
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10,116
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Plus:
Station noncash compensation
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221
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365
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755
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1,610
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Plus:
Impairment loss on intangible assets
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-
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-
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2,988
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-
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Less:
Gain on sale of publishing assets, net of disposition
costs
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(17,491)
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-
|
|
(17,491)
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-
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Plus:
Loss on disposal of property and equipment
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|
-
|
|
-
|
|
125
|
|
-
|
Station
operating income
|
|
$
11,094
|
|
$
16,325
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|
$
36,424
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|
$
45,228
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|
|
|
|
|
|
|
|
|
|
|
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|
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SELECTED BALANCE
SHEET INFORMATION:
|
|
November 30,
2016
|
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February 29,
2016
|
|
|
|
|
|
|
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|
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Total Cash and Cash
Equivalents
|
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$
2,057
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$
4,456
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|
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Credit Agreement
Debt
|
|
$
158,955
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|
$
184,762
|
|
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|
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98.7FM Nonrecourse
Debt
|
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$
61,356
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$
65,411
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/emmis-announces-third-quarter-earnings-300386050.html
SOURCE Emmis Communications Corporation