INDIANAPOLIS, May 11, 2017 /PRNewswire/ -- Emmis
Communications Corporation (NASDAQ: EMMS) today announced results
for its fourth fiscal quarter and full-year ending February 28, 2017. After the end of the
quarter, on May 8, 2017, Emmis
entered into an agreement to sell KPWR-FM in Los Angeles to an affiliate of the Mereulo
Group for $82.75 million. This
transaction is expected to close later this year and proceeds will
be used to repay more than 50% of the Company's credit facility
debt outstanding.
Emmis' radio net revenues for the fourth fiscal quarter were
$34.0 million, down from $36.4 million from the prior year, a decrease of
6.6%. Per Miller Kaplan reporting,
which excludes barter revenues and syndication revenues, and
excluding results from Los
Angeles, Emmis' fourth quarter radio revenues were down 4.8%
in markets that were down 0.2%. Austin and St.
Louis outperformed their markets, with St. Louis up 10% in a market that was up 1%.
For the full year, radio revenues were $165.1 million, compared to $169.2 million in the prior year, a decrease of
2.4%. For the full year, Emmis radio revenues per
Miller Kaplan reporting, excluding
results from Los Angeles, were
down 0.3%, narrowly missing the performance of its markets, which
were up 0.5%.
During the fourth quarter, Emmis closed on the sale of its
Terre Haute radio cluster on
January 30, 2017 and closed on the
sale of Los Angeles,
Atlanta, Cincinnati, and Orange Coast
magazines on February 28, 2017.
Emmis' sole remaining magazine is Indianapolis Monthly.
"The decision to sell KPWR was an extremely difficult one to
make, but it allows us to dramatically reduce our indebtedness,
leading to much needed financial flexibility during challenging
times for the U.S. radio business," said Jeff Smulyan, CEO & Chairman of the Board of
Emmis. "Our industry needs a catalyst, and we remain convinced we
have it in NextRadio®. The NextRadio-developed Dial Report™,
which provides robust data measurement and big data analytics for
radio campaigns, has been a huge hit with advertisers and agencies
since its introduction in January of this year."
Smulyan added that the cash commitment to Sprint had been
satisfied and the business relationship between NextRadio and
Sprint was extended for an additional three years.
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 Thursday, May 25 by dialing
1-402-998-1514.
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®
Emmis Communications Corporation is a diversified
media company, principally focused on radio broadcasting. Emmis
owns 16 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)
and Indianapolis. Emmis also
developed and licenses TagStation®, a cloud-based software platform
that allows a broadcaster to manage album art, metadata and
enhanced advertising on its various broadcasts, and developed
NextRadio®, a smartphone application that marries over-the-air FM
radio broadcasts with visual and interactive features on
smartphones.
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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2017
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2016
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2017
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2016
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OPERATING
DATA:
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Net
revenues:
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Radio
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$
34,015
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$
36,439
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$
165,148
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$
169,228
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Publishing
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9,215
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14,217
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48,559
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60,992
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Emerging Technologies
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263
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228
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861
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1,213
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Total net
revenues
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43,493
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50,884
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214,568
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231,433
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Station
operating expenses excluding
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depreciation and amortization expense:
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Radio
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27,451
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28,937
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115,366
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116,862
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Publishing
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10,798
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15,334
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51,063
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58,891
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Emerging Technologies
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6,430
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2,192
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13,656
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7,641
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Total station
operating expenses excluding
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depreciation and amortization expense
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44,679
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46,463
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180,085
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183,394
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Corporate
expenses excluding depreciation
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and amortization
expense
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2,465
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2,907
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11,359
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13,023
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Depreciation
and amortization
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1,060
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1,412
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4,806
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5,797
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Impairment
loss on intangible assets
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6,855
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9,499
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9,843
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9,499
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Gain on sale
of radio and publishing assets, net of disposition costs
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(6,066)
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-
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(23,557)
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-
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Loss on
disposal of property and equipment
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(1)
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56
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124
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56
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Operating
(loss) income
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(5,499)
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(9,453)
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31,908
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19,664
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Interest
expense
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(4,089)
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(4,697)
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(18,018)
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(18,956)
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Loss on debt
extinguishment
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(142)
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-
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(620)
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-
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Other (loss)
income, net
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(302)
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212
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(160)
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1,057
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(Loss) income
before income taxes
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(10,032)
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(13,938)
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13,110
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1,765
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(Benefit)
provision for income taxes
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(2,078)
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(593)
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(110)
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2,069
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Consolidated
net (loss) income
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(7,954)
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(13,345)
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13,220
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(304)
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Net (loss)
income attributable to noncontrolling interests
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(376)
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(3,992)
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101
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(2,418)
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Net (loss)
income attributable to the Company
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(7,578)
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(9,353)
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13,119
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2,114
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Loss on
modification of Preferred Stock
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-
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(162)
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-
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(162)
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Net (loss)
income attributable to common shareholders
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$
(7,578)
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$
(9,515)
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$
13,119
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$
1,952
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Basic net income per common
share
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$
(0.62)
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$
(0.85)
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$
1.09
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$
0.18
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Diluted net income per
common share
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$
(0.62)
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$
(0.85)
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$
1.07
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$
0.17
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Basic weighted average
shares outstanding
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12,180
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11,257
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12,040
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11,034
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Diluted weighted average
shares outstanding
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12,180
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11,257
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12,229
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11,316
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OTHER
DATA:
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Station
operating (loss) income (See below)
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$
(929)
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$
4,571
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$
35,495
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$
49,799
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Cash paid for
income taxes, net
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-
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-
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112
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216
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Cash paid for
interest
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3,536
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4,175
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15,618
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16,742
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Capital
expenditures
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1,447
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1,445
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2,850
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3,388
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Noncash
compensation by segment:
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Radio
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$
138
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$
94
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$
671
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$
1,219
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Publishing
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97
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62
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263
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447
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Emerging Technologies
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22
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(6)
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78
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94
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Corporate
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446
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85
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1,908
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3,144
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Total
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$
703
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$
235
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$
2,920
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$
4,904
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COMPUTATION OF
STATION OPERATING INCOME:
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Operating
(loss) income
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$
(5,499)
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$
(9,453)
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$
31,908
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$
19,664
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Plus:
Depreciation and amortization
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1,060
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1,412
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4,806
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5,797
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Plus:
Corporate expenses
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2,465
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2,907
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11,359
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13,023
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Plus:
Station noncash compensation
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257
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150
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1,012
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1,760
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Plus:
Impairment loss on intangible assets
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6,855
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9,499
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9,843
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9,499
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Less:
Gain on sale of publishing assets, net of disposition
costs
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(6,066)
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-
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(23,557)
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-
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Plus:
Loss on disposal of property and equipment
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(1)
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56
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|
124
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|
56
|
Station
operating (loss) income
|
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$
(929)
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$
4,571
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$
35,495
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$
49,799
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SELECTED BALANCE
SHEET INFORMATION:
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February 28,
2017
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February 29,
2016
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Total Cash and Cash
Equivalents
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$
11,349
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$
4,456
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Credit Agreement
Debt
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$
152,245
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$
184,762
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98.7FM Nonrecourse
Debt
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$
59,958
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$
65,411
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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-300455504.html
SOURCE Emmis Communications Corporation