Emmis Reports Lower Profit
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndianapolis-based Emmis Communications Corp. (Nasdaq: EMMS) is reporting fiscal second quarter net income of $2.6 million, compared to $38 million during the same period the previous year. The company says net revenues increased 3.5 percent for the quarter.
October 10, 2013
News Release
Indianapolis, Ind. — Emmis Communications Corporation (NASDAQ: EMMS) today announced results for its second fiscal quarter ending August 31, 2013.
Emmis' radio net revenues for the second fiscal quarter were up 3.5%, while the markets in which Emmis operates were up 3.3% during the quarter. Publishing net revenues were up 5.7% for the quarter. On a consolidated basis, total revenues for the quarter were $55.0 million, compared to $52.9 million in the same quarter of the prior year.
Diluted net income per common share from continuing operations for the quarter was $0.05, compared to a diluted net loss per common share from continuing operations of ($0.02) for the same quarter of the prior year.
For the second fiscal quarter, operating income decreased to $5.7 million from $7.6 million for the same quarter of the prior year due to higher noncash compensation expense, principally due to Emmis' 2012 Retention Trust, and higher legal costs related to the company's Hungarian ICSID claim. Emmis' station operating income for the second fiscal quarter was flat compared to the same quarter of the prior year at $13.2 million.
“It was an eventful quarter at Emmis as we heralded the successful launch of NextRadio and continued to outperform our radio markets,” said Jeff Smulyan, President & CEO of Emmis. “Our ability to innovate on behalf of the radio industry, coupled with our focus on delivering successful near-term results, are a testament to the impact our high performing Emmis team can deliver.”
Emmis has included supplemental 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.
There is an earnings call this morning with Emmis executives at 9 am Eastern. To access the second-quarter earnings conference call, please dial in at 1-517-623-4891. Please submit questions prior or during the call to ir@emmis.com. A playback of the call will be available until 6 p.m. on Thursday, Oct. 24 by dialing 1-402-220-4182.
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About Emmis Communications
Emmis Communications Corporation is a diversified media company, principally focused on radio broadcasting. Emmis operates the 10th largest publicly traded 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. One of our FM radio stations in New York is operated pursuant to a Local Marketing Agreement (“LMA”) whereby a third party provides the programming for the station and sells all advertising within that programming.
Source: Emmis Communications Corp.