Welcome!

News Feed Item

Emmis Delivers Strong Fourth Quarter and Full Year Revenue Growth

Radio Revenues up Double Digits in Fourth Quarter and 5% for Full Year

INDIANAPOLIS, April 3, 2014 /PRNewswire/ -- Emmis Communications Corporation (NASDAQ: EMMS) today announced results for its fourth fiscal quarter and full-year ending February 28, 2014.

Emmis' radio net revenues for the fourth fiscal quarter were up 11%, from $29.1 million to $32.4 million.  Excluding 98.7FM in New York, which is being programmed by ESPN pursuant to an LMA, radio net revenues were up 12%.  These results outperformed Emmis' local radio markets in which revenue growth improved 4% during the quarter.  

For the full year, radio net revenues were $145.4 million, compared to $138.6 million in the prior year, an increase of 5%.  These results also outperformed Emmis' local radio markets in which revenue growth improved 3% for the year.

Publishing net revenues were up 3% in the fourth fiscal quarter and 4% for the full year.

"Fiscal 2014 marked the fourth consecutive year we have outperformed our local radio markets and the radio industry as a whole.  Our strong operating performance is the result of sound strategy and its execution by a phenomenal workforce that makes me so proud.  We are very excited about the addition of WBLS and WLIB in New York and the momentum behind NextRadio as we head into fiscal 2015," Jeff Smulyan, President & CEO of Emmis said. 

For the fourth fiscal quarter, operating income was $0.7 million, compared to a loss of $0.4 million for the same quarter of the prior year.  Emmis' station operating income for the fourth fiscal quarter was $6.9 million, compared to $7.1 million for the same quarter of the prior year.  The decrease in station operating income in the fourth fiscal quarter was due in part to recognition of incentive compensation expense based on full-year operating results that were achieved based on strong fourth quarter results, as well as several non-recurring items, including $0.7 million in severance associated with the integration of WBLS and WLIB.

For the full year, operating income was $22.2 million, compared to $16.5 million in the prior year.  Emmis' station operating income in fiscal 2014 was $48.4 million, compared to $42.9 million in fiscal 2013.

During the fourth fiscal quarter, Emmis reversed substantially all of the valuation allowance previously recorded against its deferred tax assets.  As a result, Emmis recorded a benefit for income taxes of approximately $35 million in the quarter.

At year-end, Emmis' leverage ratio under its senior secured credit agreement was 2.5x, marking Emmis' lowest leverage ratio since 2000.

Emmis commenced providing programming and selling advertising at WBLS and WLIB in New York pursuant to a Local Programming and Marketing Agreement ("LMA") on March 1, 2014.  Because this LMA commenced on the first day of Emmis' fiscal 2015, no actual or pro forma results for these stations are included in this release.  The $0.7 million severance charge recorded in Emmis' fourth fiscal quarter relates to Emmis employees in New York that were notified in February 2014 that their employment was being terminated.

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®
About Emmis Communications
Emmis Communications Corporation is a diversified media company, principally focused on radio broadcasting. Emmis operates the 9th largest radio portfolio in the United States based on total listeners. Emmis owns 18 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), Indianapolis and Terre Haute, IN and operates two additional stations in New York (1 FM and 1 AM) pursuant to a Local Marketing Agreement ("LMA") whereby Emmis provides the programming for these stations and sells all advertising within that programming pending its acquisition of the stations.  In addition, one of the FM radio stations Emmis currently owns in New York is operated pursuant to a LMA by a third party.

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; 
  • 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 or to consummate dispositions;
  • 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, amounts in thousands, except per share data)


























Three months ended February 28,


Year ended February 28,












2014


2013


2014


2013

OPERATING DATA:









  Net revenues:









    Radio


$                  32,360


$                    29,080


$                   145,399


$                 138,630

    Publishing


14,612


14,221


59,747


57,454

      Total net revenues


46,972


43,301


205,146


196,084

  Station operating expenses excluding









   depreciation and amortization expense:









    Radio


25,496


20,458


99,924


95,830

    Publishing


15,315


15,864


59,085


58,241

      Total station operating expenses excluding 









          depreciation and amortization expense 


40,811


36,322


159,009


154,071

  Corporate expenses excluding depreciation 









       and amortization expense


3,901


4,969


17,024


17,819

  Hungary license litigation and related expenses


263


596


2,058


1,381

  Depreciation and amortization


1,259


1,210


4,866


4,722

  Impairment loss


-


448


-


11,419

  Loss (gain) on sale of assets


2


106


(8)


(9,877)










  Operating income (loss)


736


(350)


22,197


16,549

  Interest expense


(1,627)


(2,893)


(7,068)


(20,899)

  Loss on debt extinguishment 


-


(3,367)


(653)


(4,508)

  Other income (expense), net


22


(157)


116


(10)










  Income (loss) before income taxes and









   discontinued operations


(869)


(6,767)


14,592


(8,868)

  Benefit for income taxes


(34,974)


(2,091)


(34,063)


(7,039)










  Income (loss) from continuing operations


34,105


(4,676)


48,655


(1,829)

  Income from discontinued operations, net of tax


-


9,956


-


50,080










  Consolidated net income


34,105


5,280


48,655


48,251

  Net income attributable to noncontrolling interests


944


964


5,174


4,479










  Net income attributable to the Company


33,161


4,316


43,481


43,772

  Gain on extinguishment of preferred stock


-


-


325


-

  Preferred stock dividends


-


-


-


(1,806)

  Net income attributable to common shareholders


$                     33,161


$                      4,316


$                     43,806


$                    41,966










  Amounts attributable to common shareholders for basic earnings per share:







    Continuing operations


33,161


(5,640)


43,806


(8,114)

    Discontinued operations


-


9,956


-


50,080

      Net income attributable to common shareholders


33,161


4,316


43,806


41,966










  Amounts attributable to common shareholders for diluted earnings per share:







    Continuing operations


33,161


(5,640)


43,481


(8,114)

    Discontinued operations


-


9,956


-


50,080

      Net income attributable to common shareholders


33,161


4,316


43,481


41,966










  Basic net income (loss) per common share:









    Continuing operations


$                          0.82


$                       (0.14)


$                          1.08


$                       (0.21)

    Discontinued operations


-


0.25


-


1.29

      Net income attributable to common shareholders


$                          0.82


$                        0.11


$                          1.08


$                        1.08










  Diluted net income (loss) per common share:









    Continuing operations


$                          0.71


$                       (0.14)


$                          0.94


$                       (0.21)

    Discontinued operations


-


0.25


-


1.29

      Net income attributable to common shareholders


$                          0.71


$                        0.11


$                          0.94


$                        1.08










  Weighted average shares outstanding:









      Basic


40,682


39,532


40,506


39,034

      Diluted


46,606


39,532


46,042


39,034



















OTHER DATA:









  Station operating income (See below)


6,927


7,053


48,373


42,865

  Cash paid for (refund from) income taxes, net


112


827


(903)


2,175

  Cash paid for interest


1,468


3,973


6,289


21,811

  Capital expenditures


780


1,213


3,057


3,364










 Noncash compensation by segment:









           Radio


$                           497


$                           90


$                       1,477


$                         575

           Publishing


269


(16)


759


277

           Corporate


565


544


2,648


2,090

                  Total


$                       1,331


$                         618


$                       4,884


$                      2,942










COMPUTATION OF STATION OPERATING INCOME:









  Operating income (loss)


$                           736


$                        (350)


$                     22,197


$                    16,549

  Plus:  Depreciation and amortization


1,259


1,210


4,866


4,722

  Plus:  Hungary litigation expense and related costs


263


596


2,058


1,381

  Plus:  Corporate expenses


3,901


4,969


17,024


17,819

  Plus:  Station noncash compensation


766


74


2,236


852

  Plus:  Impairment loss


-


448


-


11,419

  Less:  Loss (gain) on sale of assets


2


106


(8)


(9,877)

  Station operating income


$                       6,927


$                      7,053


$                     48,373


$                    42,865



















SELECTED BALANCE SHEET INFORMATION:


February 28, 2014


February 28, 2013














Total Cash and Cash Equivalents


$                       5,304


$                      8,735





Credit Agreement Debt


$                     54,000


$                    67,000





98.7FM Nonrecourse Debt


$                     74,942


$                    79,068














 

SOURCE Emmis Communications Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
Actian Corporation has announced the latest version of the Actian Vector in Hadoop (VectorH) database, generally available at the end of July. VectorH is based on the same query engine that powers Actian Vector, which recently doubled the TPC-H benchmark record for non-clustered systems at the 3000GB scale factor (see tpc.org/3323). The ability to easily ingest information from different data sources and rapidly develop queries to make better business decisions is becoming increasingly importan...
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
To paraphrase someone famous, "The definition of insanity is to do something the same way over and over again and expect a different result". Humans are creatures of habit and when it comes to storage, old habits die hard. Why do we continue to put our faith in legacy storage providers when they haven't invented anything new in decades. Sure, they re-badge their products every couple of years to make their messaging look modern, but ultimately, it's the same old stuff with a new coat of lipsti...
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...