Published:
Emmis Communications Reports 2nd Quarter Results
INDIANAPOLIS, Oct. 10 /PRNewswire-FirstCall/ -- Emmis Communications
Corporation (Nasdaq: EMMS) today announced results for its second fiscal
quarter ended August 31, 2008.
"Our team at Emmis continues to deliver during these challenging times for
the U.S. economy," Emmis Chairman and CEO Jeff Smulyan said. "We delivered 2
percent growth in operating income during the first six months of the fiscal
year based in no small part on the explosive growth in our International
operations. During the second quarter, net revenue at our radio operations in
Slovakia,Hungary,Bulgaria andBelgium grew an amazing 38 percent. This type
of performance, coupled with responsible actions to manage our expenses and
balance sheet, position Emmis well to benefit from the U.S. economy's
inevitable recovery."
For the second fiscal quarter, net revenue was $94.2 million, compared to
$95.7 million for the same quarter of the prior year.
Diluted net income per common share from continuing operations was $0.02,
compared to $0.04 for the same quarter of the prior year.
For the second quarter, pro forma radio net revenues decreased 1.7 percent
and pro forma publishing net revenues decreased 6.6 percent. Domestic radio
net revenues for the second quarter decreased 8.4 percent compared to the same
period of the prior year.
For the second quarter, operating income was flat at $17.1 million
compared to the same quarter of the prior year, while Emmis' station operating
income was down slightly to $26.4 million, compared to $26.5 million for the
same quarter of the prior year.
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.
International radio net revenues and station operating expenses, excluding
depreciation and amortization, for the quarter ended August 31, 2008, were
$14.9 million and $9.0 million, respectively, representing a pro forma
increase of 38 percent and 22 percent, respectively, over the same period of
the prior year.
During the quarter, Emmis completed the sale of its remaining television
station, WVUE-TV inNew Orleans, to Louisiana Media Company for $41 million,
with after-tax proceeds of approximately $38.1 million. Gross proceeds from
the sale of the company's 16 television stations were $1.24 billion. In
addition, during the quarter, Emmis received $3.1 million as a final
settlement of its business interruption claim due to Hurricane Katrina's
impact on the station.
Also during the quarter, Emmis Publishing suspended publication of Tu
Ciudad Los Angeles because the magazine's financial performance did not meet
the Company's expectations. The magazine's operating expenses for the second
fiscal quarter of $1.2 million include all shut-down-related costs, and the
magazine's operating results have been classified as discontinued operations
for all periods presented.
Subsequent to the quarter's end, Emmis began a program that uses a portion
of the cash from the sale of WVUE-TV inNew Orleans, and possibly Emmis'
common stock, to pay quarterly bonuses to 64 employees to offset temporary
salary reductions. Although the employees will be receiving the same amount of
pay under the program, the structure of the program lowers operating costs
under the terms of our credit agreement.
Emmis Interactive, a wholly owned subsidiary of Emmis Communications
Corporation, announced in April that it would begin to market its services to
radio broadcasters and other local media companies. Since that announcement,
Emmis Interactive has signed on more than 100 non-Emmis stations to its
successful interactive platform, with another dozen signing up for Emmis
Interactive's exclusive iTunes storefront technology.
The following table reconciles reported results to pro forma results
(dollars in thousands):
3 months ended 6 months ending
Aug. 31, % Aug. 31, %
2007 2008 Change 2007 2008 Change
Radio
Reported net revenues $74,416 $73,278 -1.5% $139,416 $137,469 -1.4%
Plus: Revenues
from assets acquired 149 - 293 -
Pro forma net revenues $74,565 $73,278 -1.7% $139,709 $137,469 -1.6%
Publishing
Reported net revenues $21,288 $20,949 -1.6% $42,733 $42,781 0.1%
Plus: Revenues
from assets acquired 1,142 - 2,774
Pro forma net revenues $22,430 $20,949 -6.6% $45,507 $42,781 -.0%
Total Company
Reported net revenues $95,704 $94,227 -1.5% $182,149 $180,250 -1.0%
Plus: Revenues
from assets acquired 1,291 - 3,067 -
Pro forma net revenues $96,995 $94,227 -2.9% $185,216 $180,250 -2.7%
Emmis will host a call regarding this information on Friday, October 10 at
9 a.m. Eastern at 1.517.623.4891, with a replay available through Friday,
October 17 at 1.203.369.3289. Listen online at www.emmis.com.
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 inthe 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 inthe 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.
Emmis Communications -- Great Media, Great People, Great Service(R)
Emmis is anIndianapolis-based diversified media firm with radio
broadcasting and magazine publishing operations. Emmis owns 21 FM and 2 AM
domestic radio stations serving the nation's largest markets ofNew York,Los
Angeles andChicago, as well asSt. Louis,Austin,Indianapolis andTerre
Haute, Ind. Emmis also owns a radio network, international radio stations,
regional and specialty magazines, an interactive business and ancillary
businesses in broadcast sales.
The information in this news release is being widely disseminated in
accordance with the Securities & Exchange Commission's Regulation FD.
Note: Certain statements included in this report or in the financial
statements contained herein 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;
-- increased competition in our markets and the broadcasting industry;
-- 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;
-- changes in audience measurement systems
-- new or changing regulations of the Federal Communications Commission or
other governmental agencies;
-- competition from new or different technologies;
-- 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, dollars in thousands, except per share data)
Three months ended Six months ended
August 31, August 31,
2008 2007 2008 2007
OPERATING DATA:
Net revenues:
Radio $73,278 $74,416 $137,469 $139,416
Publishing 20,949 21,288 42,781 42,733
Total net revenues 94,227 95,704 180,250 182,149
Station operating expenses
excluding depreciation and
amortization expense:
Radio 48,882 51,152 92,040 97,490
Publishing 19,491 18,521 39,595 36,881
Total station operating
expenses excluding
depreciation and
amortization expense 68,373 69,673 131,635 134,371
Corporate expenses excluding
depreciation and amortization
expense 4,661 5,211 10,294 10,919
Depreciation and amortization 4,051 3,629 7,986 7,076
Loss on disposal of assets 22 94 15 94
Operating income 17,120 17,097 30,320 29,689
Interest expense (6,564) (8,654) (13,621) (17,986)
Other income (expense), net (1,224) 289 (1,374) 225
Income before income taxes,
minority interest and
discontinued operations 9,332 8,732 15,325 11,928
Provision for income taxes 4,579 3,625 8,498 5,823
Minority interest expense, net
of tax 1,918 1,328 3,325 2,521
Income from continuing
operations 2,835 3,779 3,502 3,584
Income from discontinued
operations, net of tax 647 10,277 1,176 10,783
Net income 3,482 14,056 4,678 14,367
Preferred stock dividends 2,246 2,246 4,492 4,492
Net income available to common
shareholders $1,236 $11,810 $186 $9,875
Basic net income (loss) per
common share:
Continuing operations $0.02 $0.04 $(0.03) $(0.02)
Discontinued operations, net
of tax 0.01 0.27 $0.04 0.28
Net income available to
common shareholders $0.03 $0.31 $0.01 $0.26
Diluted net income (loss) per
common share:
Continuing operations $0.02 $0.04 $(0.03) $(0.02)
Discontinued operations, net
of tax 0.01 0.27 0.04 0.28
Net income available to
common shareholders $0.03 $0.31 $0.01 $0.26
Weighted average shares
outstanding:
Basic 36,313 37,546 36,220 37,536
Diluted 36,547 37,821 36,220 37,536
OTHER DATA:
Station operating income (See
below) 26,411 26,507 50,225 49,519
Cash paid for taxes, net of
refunds 1,405 751 2,004 2,334
Cash paid for interest 6,752 8,641 14,596 12,022
Capital expenditures 1,881 1,912 2,633 2,886
Noncash compensation by segment:
Radio $403 $426 $1,092 $1,201
Publishing 154 50 518 540
Corporate 613 1,002 2,169 2,104
Total $1,170 $1,478 $3,779 $3,845
COMPUTATION OF STATION OPERATING
INCOME:
Operating income $17,120 $17,097 $30,320 $29,689
Plus: Depreciation and
amortization 4,051 3,629 7,986 7,076
Plus: Corporate expenses 4,661 5,211 10,294 10,919
Plus: Station noncash
compensation 557 476 1,610 1,741
Plus: Loss on disposal of
assets 22 94 15 94
Station operating income $26,411 $26,507 $50,225 $49,519
SELECTED BALANCE SHEET August 31, February 29,
INFORMATION: 2008 2008
Total Cash and Cash Equivalents $67,513 $19,498
Senior Debt $436,503 $438,693
SOURCE Emmis Communications Corporation
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
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