Emmis Announces Fourth Quarter and Full-Year Earnings
Emmis Announces Fourth Quarter and Full-Year Earnings
Emmis' radio stations gain market share in fourth fiscal quarter
INDIANAPOLIS, May 10, 2018 /PRNewswire/ -- Emmis Communications Corporation (NASDAQ: EMMS) today announced results for its fourth fiscal quarter and full-year ending February 28, 2018.
Emmis' radio net revenues for the fourth fiscal quarter were $28.4 million, down from $34.0 million in the prior year, a decrease of 16%. Pro forma for the sale of our Los Angeles and Terre Haute radio stations, Emmis' fourth quarter radio revenues as reported to Miller Kaplan, which excludes barter revenues and syndication revenues, were down 1% in markets that were down 3%. Our New York and St. Louis clusters both grew their revenues in the quarter and outperformed their markets.
For the full year, radio revenues were $142.9 million compared to $165.1 million in the prior year, a decrease of 13%. 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%.
On April 30, the company finalized the sale of its St. Louis radio stations, and after applying the net proceeds therefrom, has less than $20 million of net credit facility debt outstanding.
"In the last 12 months, we have paid down over $120 million of senior debt, leaving us on firm financial footing and providing flexibility as opportunities present themselves," Jeff Smulyan, CEO & Chairman of the Board of Emmis said. "Ratings for our New York radio stations remain strong, and they are rebounding nicely in Indianapolis. The NextRadio team has done a tremendous job rolling out Dial Report, an industry-wide data attribution platform, and we believe it is uniquely positioned to meet the growing demand for robust analytics and insights into the behaviors of radio listeners."
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 17 by dialing 1-402-220-9775.
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 11 FM and 3 AM radio stations in New York, 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 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,
------------------------------- -----------------------
2018 2017 2018 2017
---- ---- ---- ----
OPERATING DATA:
Net revenues:
Radio $28,402 $34,015 $142,852 $165,148
Publishing 1,402 9,215 4,521 48,559
Emerging Technologies 326 263 1,114 861
--- --- ----- ---
Total net revenues 30,130 43,493 148,487 214,568
Station operating expenses excluding
depreciation and amortization expense:
Radio 22,465 27,451 102,413 115,366
Publishing 1,445 10,798 5,035 51,063
Emerging Technologies 2,728 6,430 12,310 13,656
----- ----- ------ ------
Total station operating expenses excluding
depreciation and amortization expense 26,638 44,679 119,758 180,085
Corporate expenses excluding depreciation
and amortization expense 2,931 2,465 10,712 11,359
Depreciation and amortization 889 1,060 3,628 4,806
Impairment loss on intangible assets 265 6,855 265 9,843
Loss (gain) on sale of assets, net of disposition costs 56 (6,066) (76,604) (23,557)
Loss (gain) on disposal of property and equipment (82) (1) (69) 124
--- --- --- ---
Operating income (loss) (567) (5,499) 90,797 31,908
Interest expense (2,929) (4,089) (15,143) (18,018)
Loss on debt extinguishment - (142) (2,662) (620)
Other income (expense), net 11 (302) 35 (160)
--- ---- --- ----
Income (loss) before income taxes (3,485) (10,032) 73,027 13,110
Benefit for income taxes (16,475) (2,078) (11,732) (110)
------- ------ ------- ----
Consolidated net income (loss) 12,990 (7,954) 84,759 13,220
Net income (loss) attributable to noncontrolling interests 272 (376) 2,630 101
--- ---- ----- ---
Net (loss) income attributable to the Company 12,718 (7,578) 82,129 13,119
====== ====== ====== ======
Basic net (loss) income per common share $1.03 $(0.62) $6.65 $1.09
Diluted net (loss) income per common share $0.99 $(0.62) $6.50 $1.07
Basic weighted average shares outstanding 12,386 12,180 12,347 12,040
Diluted weighted average shares outstanding 12,871 12,180 12,626 12,229
OTHER DATA:
Station operating income (See below) $3,573 $(929) $29,230 $35,495
Cash paid for income taxes, net 458 - 2,636 112
Cash paid for interest 2,776 3,536 13,334 15,618
Capital expenditures 618 1,447 1,809 2,850
Noncash compensation by segment:
Radio $55 $138 $401 $671
Publishing 1 97 7 263
Emerging Technologies 25 22 93 78
Corporate 557 446 2,153 1,908
Total $638 $703 $2,654 $2,920
==== ==== ====== ======
COMPUTATION OF STATION OPERATING INCOME:
Operating income (loss) $(567) $(5,499) $90,797 $31,908
Plus: Depreciation and amortization 889 1,060 3,628 4,806
Plus: Corporate expenses 2,931 2,465 10,712 11,359
Plus: Station noncash compensation 81 257 501 1,012
Plus: Impairment loss on intangible assets 265 6,855 265 9,843
Plus/(less): Loss/(gain) on sale of assets, net of disposition costs 56 (6,066) (76,604) (23,557)
Plus: Loss on disposal of property and equipment (82) (1) (69) 124
Station operating income $3,573 $(929) $29,230 $35,495
====== ===== ======= =======
SELECTED BALANCE SHEET INFORMATION: February 28, 2018 February 28, 2017
----------------- -----------------
Total Cash and Cash Equivalents $4,107 $11,349
Credit Agreement Debt $78,451 $152,245
98.7FM Nonrecourse Debt $53,919 $59,958
Other Nonrecourse Debt $9,992 $8,807
CONTACT: Ryan Hornaday, EVP/CFO & Treasurer, rhornaday@emmis.com, 317.266.0100
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SOURCE Emmis Communications Corporation
