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
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus o...
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at Logz.io, will explore the value of Kibana 4 for log analysis and will give a real live, hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He will examine three use cases: IT operations, business intelligence, and security and compliance. This is a hands-on session that will require participants to bring their own laptops, and we will provide the rest.
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud enviro...
In their general session at 16th Cloud Expo, Michael Piccininni, Global Account Manager - Cloud SP at EMC Corporation, and Mike Dietze, Regional Director at Windstream Hosted Solutions, reviewed next generation cloud services, including the Windstream-EMC Tier Storage solutions, and discussed how to increase efficiencies, improve service delivery and enhance corporate cloud solution development. Michael Piccininni is Global Account Manager – Cloud SP at EMC Corporation. He has been engaged in t...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, will highlight the current challenges of these transformative technologies and share strategies for preparing your organization for these changes. This “view from the top” will outline the latest trends and developm...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...