Emmis 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 common 3,725 (5,031) shareholders 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 common 3,476 (5,031) shareholders Basic net loss per common share: Continuing operations $0.09 $(0.07) Discontinued operations - (0.06) Net income (loss) attributable to common $0.09 $(0.13) shareholders Diluted net loss per common share: Continuing operations $0.08 $(0.07) Discontinued operations - (0.06) Net income (loss) attributable to common $0.08 $(0.13) shareholders 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
SOURCE Emmis Communications Corporation