INDIANAPOLIS, May 9, 2019 /PRNewswire/ -- Emmis Communications
Corporation (NASDAQ: EMMS) today announced results for its fourth
fiscal quarter and full-year ending February
28, 2019.
Emmis' radio net revenues for the fourth fiscal quarter were
$22.2 million, down from $28.4 million in the prior year, a decrease of
22%. Pro forma for the sale of the company's Los Angeles and St.
Louis radio stations, Emmis' fourth quarter pro forma
radio revenues per Miller Kaplan
were down 4%, in markets that were up 3%.
For the full year, radio revenues were $108.0 million compared to $142.9 million in the prior year, a decrease of
24%. For the full year, Emmis' pro forma radio revenues as reported
to Miller Kaplan were down 2%,
narrowly missing the performance of its markets, which were down
1%.
Emmis completed a refinancing of its credit facility on April
12. The refinancing, which lowered the Company's cost of
capital from 10.5% to 5.8%, reflects the greatly improved credit
profile of Emmis.
"While the fourth quarter didn't finish as strongly as we would
have liked, we are seeing significant strength as we commence the
new fiscal year. Emmis' first fiscal quarter is pacing up 5%,
and ticket and sponsorship sales for Hot 97's Summer Jam, Emmis'
largest event which occurs in June, are pacing well ahead of last
year," Jeff Smulyan, CEO &
Chairman of the Board of Emmis said. "Our renewed focus on digital
is bearing immediate fruit, with Q1 digital revenues pacing up
50%. Ratings remain strong across all our brands and I'm
confident that our ratings success will allow us to sustain this
growth."
"With the scaling down of NextRadio that occurred last year,
coupled with the company's recent refinancing, Emmis has one of the
best balance sheets in the radio industry, which has been enhanced
by our strong operational start to this fiscal year," Smulyan
concluded.
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. Eastern on Thursday, May 16 by
dialing 402-998-0859.
The information in this news release is being widely
disseminated in accordance with the Securities & Exchange
Commission's Regulation FD.
About Emmis Communications
Emmis Communications
Corporation (Nasdaq: EMMS) owns 11 FM and 3
AM radio stations in New
York, Austin (Emmis has a
50.1% controlling interest in Emmis' 6 radio stations located
there) and Indianapolis. Emmis
owns a controlling interest in Digonex, which provides dynamic
pricing solutions across multiple industries, as well as
Indianapolis Monthly magazine.
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 media and
technologies;
- loss of key personnel;
- 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;
- fluctuations in the market price of publicly traded or other
securities;
- new or changing regulations of the Federal Communications
Commission or other governmental agencies;
- enforcement of rules and regulations of governmental and
other entities to which the Company is subject;
- changes in radio audience measurement
methodologies;
- 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
February 28,
|
|
Year ended February
28,
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
OPERATING
DATA:
|
|
|
|
|
|
|
|
|
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
Radio
|
|
$
22,175
|
|
$
28,402
|
|
$
108,018
|
|
$
142,852
|
|
Publishing
|
|
1,331
|
|
1,402
|
|
4,678
|
|
4,521
|
|
Emerging Technologies
|
|
240
|
|
326
|
|
1,435
|
|
1,114
|
|
Total net
revenues
|
|
23,746
|
|
30,130
|
|
114,131
|
|
148,487
|
|
Station
operating expenses excluding
|
|
|
|
|
|
|
|
|
|
depreciation and amortization expense:
|
|
|
|
|
|
|
|
|
|
Radio
|
|
16,760
|
|
22,465
|
|
76,128
|
|
102,413
|
|
Publishing
|
|
1,438
|
|
1,445
|
|
4,822
|
|
5,035
|
|
Emerging Technologies
|
|
1,330
|
|
2,728
|
|
10,083
|
|
12,310
|
|
Total station
operating expenses excluding
|
|
|
|
|
|
|
|
|
|
depreciation and amortization expense
|
|
19,528
|
|
26,638
|
|
91,033
|
|
119,758
|
|
Corporate
expenses excluding depreciation
|
|
|
|
|
|
|
|
|
|
and amortization
expense
|
|
2,706
|
|
2,931
|
|
10,313
|
|
10,712
|
|
Depreciation
and amortization
|
|
829
|
|
889
|
|
3,213
|
|
3,628
|
|
Impairment
loss on intangible assets
|
|
343
|
|
265
|
|
343
|
|
265
|
|
Loss (gain) on
sale of assets, net of disposition costs
|
|
-
|
|
56
|
|
(31,817)
|
|
(76,604)
|
|
(Gain) loss on
disposal of property and equipment
|
|
-
|
|
(82)
|
|
57
|
|
(69)
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss)
|
|
340
|
|
(567)
|
|
40,989
|
|
90,797
|
|
Interest
expense
|
|
(2,201)
|
|
(2,929)
|
|
(8,103)
|
|
(15,143)
|
|
Loss on debt
extinguishment
|
|
(8)
|
|
-
|
|
(779)
|
|
(2,662)
|
|
Other income,
net
|
|
47
|
|
11
|
|
139
|
|
35
|
|
|
|
|
|
|
|
|
|
|
(Loss) income
before income taxes
|
|
(1,822)
|
|
(3,485)
|
|
32,246
|
|
73,027
|
|
Benefit for
income taxes
|
|
(1,681)
|
|
(16,475)
|
|
6,167
|
|
(11,732)
|
|
|
|
|
|
|
|
|
|
|
Consolidated
net (loss) income
|
|
(141)
|
|
12,990
|
|
26,079
|
|
84,759
|
|
Net income
(loss) attributable to noncontrolling interests
|
|
331
|
|
272
|
|
2,727
|
|
2,630
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to the Company
|
|
(472)
|
|
12,718
|
|
23,352
|
|
82,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per
common share
|
|
$
(0.04)
|
|
$
1.03
|
|
$
1.85
|
|
$
6.65
|
|
Diluted net income (loss)
per common share
|
|
$
(0.04)
|
|
$
0.99
|
|
$
1.74
|
|
$
6.50
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average
shares outstanding
|
|
12,689
|
|
12,386
|
|
12,606
|
|
12,347
|
|
Diluted weighted average
shares outstanding
|
|
13,294
|
|
12,871
|
|
13,448
|
|
12,626
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
DATA:
|
|
|
|
|
|
|
|
|
|
Station
operating income (See below)
|
|
$
4,297
|
|
$
3,573
|
|
$
23,389
|
|
$
29,230
|
|
Cash paid for
(refund from) income taxes, net
|
|
-
|
|
458
|
|
(467)
|
|
2,636
|
|
Cash paid for
interest
|
|
1,301
|
|
2,776
|
|
5,765
|
|
13,334
|
|
Capital
expenditures
|
|
363
|
|
618
|
|
518
|
|
1,809
|
|
|
|
|
|
|
|
|
|
|
Noncash
compensation by segment:
|
|
|
|
|
|
|
|
|
|
Radio
|
|
$
47
|
|
$
55
|
|
$
189
|
|
$
401
|
|
Publishing
|
|
1
|
|
1
|
|
3
|
|
7
|
|
Emerging Technologies
|
|
31
|
|
25
|
|
99
|
|
93
|
|
Corporate
|
|
187
|
|
557
|
|
1,263
|
|
2,153
|
|
Total
|
|
$
266
|
|
$
638
|
|
$
1,554
|
|
$
2,654
|
|
|
|
|
|
|
|
|
|
|
COMPUTATION OF
STATION OPERATING INCOME (LOSS):
|
|
|
|
|
|
|
|
|
|
Operating
(loss) income
|
|
$
340
|
|
$
(567)
|
|
$
40,989
|
|
$
90,797
|
|
Plus:
Depreciation and amortization
|
|
829
|
|
889
|
|
3,213
|
|
3,628
|
|
Plus:
Corporate expenses
|
|
2,706
|
|
2,931
|
|
10,313
|
|
10,712
|
|
Plus:
Station noncash compensation
|
|
79
|
|
81
|
|
291
|
|
501
|
|
Plus:
Impairment loss on intangible assets
|
|
343
|
|
265
|
|
343
|
|
265
|
|
Plus/(less): Loss/(gain) on sale of assets, net of
disposition costs
|
|
-
|
|
56
|
|
(31,817)
|
|
(76,604)
|
|
Plus/(less): Loss/(gain) on disposal of property and
equipment
|
|
-
|
|
(82)
|
|
57
|
|
(69)
|
|
Station
operating income
|
|
$
4,297
|
|
$
3,573
|
|
$
23,389
|
|
$
29,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED BALANCE
SHEET INFORMATION:
|
|
February 28,
2019
|
|
February 28,
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Cash and Cash
Equivalents
|
|
$
5,438
|
|
$
4,107
|
|
|
|
|
|
Credit Agreement
Debt
|
|
$
25,000
|
|
$
78,451
|
|
|
|
|
|
98.7FM Nonrecourse
Debt
|
|
$
47,332
|
|
$
53,919
|
|
|
|
|
|
Other Nonrecourse
Debt
|
|
$
10,074
|
|
$
9,992
|
|
|
|
|
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content:http://www.prnewswire.com/news-releases/emmis-announces-fourth-quarter-and-full-year-earnings-300846828.html
SOURCE Emmis Communications
