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Emmis Announces Fourth Quarter and Full-Year Earnings

INDIANAPOLIS, May 9, 2019 /PRNewswire/ -- Emmis Communications Corporation (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 (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





 

Cision

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