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INDIANAPOLIS, Jan. 10, 2013 /PRNewswire/ -- Emmis Communications Corporation (NASDAQ: EMMS) today announced results for its third fiscal quarter ending November 30, 2012.
Pro forma for station divestitures, Emmis' domestic radio net revenues for the third fiscal quarter were up 5%. On a reported basis, total radio net revenues were up 1% and total net revenues were down slightly.
"I couldn't be more pleased with the company's outstanding operating performance," Jeff Smulyan, Emmis Chairman & CEO, said. "Emmis radio station's revenue growth continues to outpace its markets. While our markets were up 1 percent this quarter, Emmis stations saw an increase of 5 percent."
"With the refinancing of our entire capital structure that was completed after our quarter-end, we have dramatically reduced our interest expense and increased our ability to generate free cash flow going forward, completing the transformation of Emmis," Smulyan concluded.
Station operating income during the period was $13.8 million, compared to $10.0 million for the same quarter of the prior year. Diluted net income per common share from continuing operations was $0.02, compared to $1.26 for the same quarter of the prior year. The decline is due primarily to the gain on the sale of stations WKQX-FM (101.1 MHz, Chicago, IL), WLUP-FM (97.9 MHz, Chicago, IL) and WRXP-FM (101.9 MHz, New York, NY) to Merlin Media coupled with related tax benefits recognized in 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.
The following table reconciles reported results to pro forma results (dollars in thousands):
Three Months ended November 30,
%
Nine Months ended November 30,
%
2012
2011
Change
2012
2011
Change
Radio:
Reported net revenues
$ 37,238
$ 36,718
1%
$ 118,085
$ 126,292
-6%
Less: Net revenues from Merlin stations and WRKS (98.7FM)
(2,577)
(2,822)
(8,040)
(18,367)
Pro forma net revenues
$ 34,661
$ 33,896
2%
$ 110,045
$ 107,925
2%
Total Company:
Reported net revenues
$ 53,414
$ 53,568
0%
$ 161,318
$ 169,714
-5%
Less: Net revenues from Merlin stations and WRKS (98.7FM)
(2,577)
(2,822)
(8,040)
(18,367)
Pro forma net revenues
$ 50,837
$ 50,746
0%
$ 153,278
$ 151,347
1%
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 publicly traded radio portfolio in the United States based on total listeners. Emmis operates 19 FM and three AM radio stations in New York, Los Angeles, St. Louis, Austin, Indianapolis and Terre Haute, IN.
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, dollars in thousands, except per share data)
Three months ended November 30,
Nine months ended November 30,
2012
2011
2012
2011
OPERATING DATA:
Net revenues:
Radio
$ 37,238
$ 36,718
$ 118,085
$ 126,292
Publishing
16,176
16,850
43,233
43,422
Total net revenues
53,414
53,568
161,318
169,714
Station operating expenses excluding
depreciation and amortization expense:
Radio
25,639
28,878
82,760
95,249
Publishing
14,335
14,748
42,377
42,131
Total station operating expenses excluding
depreciation and amortization expense
39,974
43,626
125,137
137,380
Corporate expenses excluding depreciation
and amortization expense
3,717
4,972
12,850
15,276
Depreciation and amortization
1,416
1,410
4,201
4,871
Impairment loss
-
-
10,971
-
(Gain) loss on sale of assets
(221)
-
(10,227)
792
Operating income
8,528
3,560
18,386
11,395
Interest expense
(5,754)
(4,341)
(19,198)
(16,194)
Loss on debt extinguishment
(56)
(525)
(1,141)
(2,003)
Gain on sale of controlling interest in Merlin Media LLC
-
31,805
-
31,805
Other (expense) income, net
236
(394)
211
(52)
Income (loss) before income taxes and
discontinued operations
2,954
30,105
(1,742)
24,951
Provision (benefit) for income taxes
1,112
(28,702)
(4,447)
(29,332)
Income from continuing operations
1,842
58,807
2,705
54,283
Gain (loss) from discontinued operations, net of tax
3,794
(105)
40,266
(896)
Consolidated net income
5,636
58,702
42,971
53,387
Net income attributable to noncontrolling interests
1,036
1,069
3,515
3,813
Net income attributable to the Company
4,600
57,633
39,456
49,574
Gain on extinguishment of preferred stock
-
55,835
-
55,835
Preferred stock dividends
-
(2,603)
(1,806)
(7,689)
Net income attributable to common shareholders
$ 4,600
$ 110,865
$ 37,650
$ 97,720
Amounts attributable to common shareholders for basic earnings per share:
Continuing operations
806
110,962
(2,616)
98,559
Discontinued operations
3,794
(97)
40,266
(839)
Net income attributable to common shareholders
4,600
110,865
37,650
97,720
Amounts attributable to common shareholders for diluted earnings per share:
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