INDIANAPOLIS, May 5, 2016 /PRNewswire/ -- Emmis
Communications Corporation (NASDAQ: EMMS) today announced results
for its fourth fiscal quarter and full-year ending February 29, 2016.
Emmis' radio net revenues for the fourth fiscal quarter were
$36.4 million, down from $38.8 million from the prior year, a decrease of
6%. Per Miller Kaplan reporting,
which excludes barter revenues and syndication revenues, and
excluding LMA fee revenue in New
York, Emmis' fourth quarter radio revenues were down 7.3%
compared to local radio market revenues up 0.7%. For the full
year, radio revenues were $169.2
million, compared to $176.3
million in the prior year, a decrease of 4%. Per
Miller Kaplan reporting, and excluding LMA fee revenue in
New York, Emmis' fiscal 2016 radio
revenues were down 4.6% compared to local radio market revenues
down 1.5%. Our Indianapolis and St.
Louis clusters grew market share in the three-month and
full-year periods.
Publishing revenues were down 2% in the fourth quarter and down
slightly year over year.
Emmis announced a series of cost reductions in January, which
were implemented during the company's fourth quarter, to better
align resources with growth initiatives.
"Emmis' fourth quarter was weak, mostly due to expected
underperformance in Los Angeles,"
Jeff Smulyan, President & CEO of
Emmis said. "The good news is our first quarter is much improved
and currently pacing flat to the prior year. New York's
performance has been stellar, ratings in LA have begun to grow
again, and ratings across our other radio markets are very
strong."
"NextRadio is coming off a fantastic National Association of
Broadcaster convention, and momentum is building," Smulyan
continued. "At NAB, it was announced that PRSS, the distribution
network for public radio, is being integrated into NextRadio.
Carrier and handset conversations are robust, and advertiser
interest is high. In addition, we will launch in our first
international market, Peru, in the
coming weeks. I couldn't be more pleased with the efforts of
Paul Brenner and his team in
bringing NextRadio to our industry and to listeners
everywhere."
To ensure it remains compliant with NASDAQ listing rules, Emmis
will enact, if necessary, a 4:1 reverse stock split this summer,
subject to shareholder approval.
A conference call regarding earnings will be hosted today at
9 a.m. Eastern today by dialing
1-517-623-4891. Questions may be submitted via email to
ir@emmis.com. A digital playback of the call will be available
until 6 p.m. on Thursday, May 19 by dialing 203-369-3513.
Emmis has included supplemental pro forma net revenues, 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
February 28 (29),
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Year ended February
28 (29),
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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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$
36,439
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$
38,757
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$
169,228
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$
176,250
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Publishing
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14,217
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14,445
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60,992
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61,142
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Emerging Technologies
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228
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228
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1,213
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546
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Total net
revenues
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50,884
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53,430
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231,433
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237,938
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Station
operating expenses excluding
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depreciation and amortization expense and LMA fees:
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Radio
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28,937
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29,954
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116,862
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117,167
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Publishing
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15,334
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15,625
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58,891
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60,083
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Emerging Technologies
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2,192
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1,271
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7,641
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3,759
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Total station
operating expenses excluding
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depreciation and amortization expense and LMA fees
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46,463
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46,850
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183,394
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181,009
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Corporate
expenses excluding depreciation
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and amortization
expense
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2,907
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3,450
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13,023
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14,922
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LMA
fees
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-
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-
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-
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4,208
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Hungary
license litigation and related expenses
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-
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49
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-
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521
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Depreciation
and amortization
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1,412
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1,500
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5,797
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5,926
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Impairment
loss
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9,499
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67,915
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9,499
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67,915
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Gain on
contract settlement
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-
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-
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-
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(2,500)
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Loss on
disposal of assets
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56
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-
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56
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-
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Operating
(loss) income
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(9,453)
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(66,334)
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19,664
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(34,063)
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Interest
expense
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(4,697)
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(5,228)
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(18,956)
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(17,101)
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Loss on debt
extinguishment
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-
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-
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-
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(1,455)
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Other income
(expense), net
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212
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(6,648)
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1,057
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(6,418)
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(Loss) income
before income taxes
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(13,938)
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(78,210)
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1,765
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(59,037)
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(Benefit)
provision for income taxes
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(593)
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27,868
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2,069
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36,948
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Consolidated
net loss
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(13,345)
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(106,078)
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(304)
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(95,985)
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Net (loss)
income attributable to noncontrolling interests
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(3,992)
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(280)
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(2,418)
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3,274
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Net (loss)
income attributable to the Company
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(9,353)
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(105,798)
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2,114
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(99,259)
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Loss on
modification of Preferred Stock
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(162)
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-
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(162)
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-
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Net (loss)
income attributable to common shareholders
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$
(9,515)
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$
(105,798)
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$
1,952
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$
(99,259)
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Basic net (loss) income per
common share
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$
(0.21)
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$
(2.47)
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$
0.04
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$
(2.33)
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Diluted net (loss) income
per common share
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$
(0.21)
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$
(2.47)
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$
0.04
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$
(2.33)
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Basic weighted average
shares outstanding
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45,026
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42,818
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44,136
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42,537
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Diluted weighted average
shares outstanding
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45,026
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42,818
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45,264
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42,537
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OTHER
DATA:
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Station
operating income (See below)
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$
4,571
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$
6,747
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$
49,799
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$
53,441
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Cash paid for
income taxes, net
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-
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-
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216
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243
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Cash paid for
interest
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4,175
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3,722
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16,742
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9,781
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Capital
expenditures
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1,445
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949
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3,388
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3,514
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Noncash
compensation by segment:
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Radio
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$
94
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$
59
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$
1,219
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$
434
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Publishing
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62
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108
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447
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286
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Emerging Technologies
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(6)
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-
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94
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-
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Corporate
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85
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518
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3,144
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2,093
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Total
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$
235
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$
685
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$
4,904
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$
2,813
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COMPUTATION OF
STATION OPERATING INCOME:
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Operating
(loss) income
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$
(9,453)
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$
(66,334)
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$
19,664
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$
(34,063)
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Plus:
Depreciation and amortization
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1,412
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1,500
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5,797
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5,926
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Plus:
Hungary litigation expense and related costs
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-
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49
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-
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521
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Plus:
Corporate expenses
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2,907
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3,450
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13,023
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14,922
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Plus:
Station noncash compensation
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150
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167
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1,760
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|
720
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Plus:
Impairment loss
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9,499
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67,915
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9,499
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67,915
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Less:
Gain on contract settlement
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-
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-
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-
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(2,500)
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Less:
Loss on disposal of assets
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56
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-
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56
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-
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Station
operating income
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$
4,571
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$
6,747
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$
49,799
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$
53,441
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SELECTED BALANCE
SHEET INFORMATION:
|
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February 29,
2016
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February 28,
2015
|
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Total Cash and Cash
Equivalents
|
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$
4,456
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$
3,669
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Credit Agreement
Debt
|
|
$
184,762
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$
193,000
|
|
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|
98.7FM Nonrecourse
Debt
|
|
$
65,411
|
|
$
70,401
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|
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/emmis-announces-fourth-quarter-and-full-year-earnings-300263342.html
SOURCE Emmis Communications Corporation