Indianapolis-based Emmis Communications Corp. (Nasdaq: EMMS) is reporting fiscal third quarter net income of $4.3 million, compared to $4.6 million during the same period the previous year. The company says net revenues increased 3.4 percent for the quarter. You can read more financial information by clicking here.
January 9, 2014
INDIANAPOLIS, Ind. – Emmis Communications Corporation (EMMS) today announced results for its third fiscal quarter ending November 30, 2013.
Emmis' radio net revenues for the third fiscal quarter were up 0.4 percent, and its publishing net revenues were up 9.8 percent. On a consolidated basis, total revenues for the quarter were $52.6 million, compared to $50.9 million in the same quarter of the prior year, an increase of 3.4 percent.
Diluted net income per common share from continuing operations for the quarter was $0.09, compared to $0.02 for the same quarter of the prior year.
For the third fiscal quarter, operating income was $8.7 million, compared to $8.2 million in the same quarter of the prior year. Emmis' station operating income for the third fiscal quarter was $13.6 million, compared to $13.4 million in the same quarter of the prior year.
“The government shutdown in October, coupled with nonrecurring political revenues from the prior year, caused significant headwinds for us and the radio industry. However, Emmis' ability to grow revenues despite these challenges is a testament to the talent, ingenuity and hustle of the Emmis team,” said Jeff Smulyan, President & CEO of Emmis. “Our radio revenues are rebounding in our fourth fiscal quarter as these challenges have abated and our publishing division continues to post impressive revenue gains. NextRadio, the Emmis-led industry initiative to make FM broadcast radio available on mobile phones via a pre-loaded app, continues to gain momentum and recently exceeded 100,000 activations. I'm excited about the progress we are making and the momentum we have heading into calendar 2014.”
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 third-quarter earnings conference call, please dial in at 1-517-623-4891 at 9 am. Please submit questions prior or during the call to firstname.lastname@example.org. A digital playback of the call will be available until 5 p.m. on Tuesday, Jan. 21 by dialing 1-402-220-3756.
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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.