Adjust for Hungary lawsuit expenses, expenses to launch NextRadio....
....higher political in year ago (this year is an off election year), and event that tickets didn't sell out for this year, and the growth in the quarter just reported would have been similar to the previous quarter, and income would have been much bettter.
Same goes for the quarter we just entered (backing out political from last year...and you get a much more respectable growth rate anticipated in the "core" biz).
I'll put it back on strong buy, if it somehow retraces to $2.00-2.05, in the "panic" we've been witnessing here.
It's pretty clear from their public statement, that once the leverage gets down to 2.5x or less, by next year some time, that they would be inclined to buy back stock, or pay a dividend. And if the stock is in the low $2's, I feel highly confident on which option they would choose.
"On the preferred, both sides filed motions for summary judgment and we’re hoping for a ruling in the next couple of months. If the motions are not granted, the case is set for trial in January. Given the court’s ruling last August, we’re very optimistic about our chances. This would then go to the federal district court. Judge Barker, who is a very esteemed federal jurist here, ruled really on our behalf in every conceivable manner. The plaintiffs, the preferred holders, get one more crack at the apple. They’ll get a chance in the 7th Circuit. If they prevail, then we’ll be back. If we prevail, this case ends. I assume the Supreme Court is not going to hear this one, but you never know.
Again, we feel very good. We don’t have a long history of a lot of litigation, but we will go very, very vigorously when we go. In both of these cases, we felt very strongly. We were vindicated in the lower courts in Hungary, and we’ve been vindicated in the federal district court on the preferred case, so we’re going on. I wish we didn’t have to spend the money, but we feel like that’s money we’ll get back if we prevail. Most people don’t look at this company as the benefit of those cases, but that’s sort of a hidden benefit of Emmis if we prevail and we feel good about it."
i just listened to the call... i think the main reason for the decline is the reason that advertising revenue from next radio wont be seen for a while. They are still in the early stages... They said in 3-4 years they would like to be in 300 MIL cell phones. However they seem confident this will be a major increase in revenue stream when the time comes.