Emmis Announces First Quarter Earnings

Emmis Announces First Quarter Earnings

Emmis Grows Operating Income; Sees Improved Q2

INDIANAPOLIS, July 9, 2015 /PRNewswire/ -- Emmis Communications Corporation (NASDAQ: EMMS) today announced results for its first fiscal quarter ending May 31, 2015.

Emmis' radio net revenues for the first fiscal quarter were down 5.3%, from $45.0 million to $42.6 million. Per Miller Kaplan reporting, which excludes barter revenues and syndication revenues, Emmis' stations were down 6.0% compared to local radio market revenues down 4.9% during the fiscal quarter.

Publishing net revenues were up 5.8% in the first fiscal quarter, driven by strong growth at Los Angeles,Texas Monthly and Atlanta.

For the first fiscal quarter, operating income was $7.6 million, compared to $6.6 million for the same quarter of the prior year. Emmis' station operating income for the first fiscal quarter was $13.6 million, compared to $13.3 million for the same quarter of the prior year.

"While this was a challenging quarter, we are encouraged by what we see looking forward," said Jeff Smulyan, President & CEO of Emmis. "Our Q2 radio revenues are pacing up low single digits, we had a record-setting Summer Jam concert in New York, and ratings are bouncing back in Los Angeles after some expected turbulence.

"The Emmis-created, industry-led initiative to make FM broadcast radio available on smartphones and tablets, NextRadio®, has incredible momentum," Smulyan continued. "The announcement last week that NextRadio is now available for download in the Amazon App Store is the first in what we hope will be a series of positive announcements. I couldn't be more thrilled with the way our industry has come together to support NextRadio.

"Last Friday's decision by the Seventh Circuit Court of Appeals in our preferred stock case was particularly gratifying," added Smulyan. "We always knew that we had complied with Indiana's unique corporate law, and were very pleased that the court agreed."

A conference call regarding earnings will be hosted today at 9 a.m. Eastern by dialing 1-517-623-4891. Questions may be submitted via email to ir@emmis.com. A replay of the call will be available until 6 p.m. on Thursday, July 23 by dialing 1-203-369-0276.

Emmis will host its Annual Shareholders' Meeting today at 11 am at Emmis Headquarters on Monument Circle in Indianapolis.

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.

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 19 FM and 4 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.

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
reasonsgenerally beyond our control;
-- increases in the costs of programming, including on-air talent;
-- new or changing regulations of the Federal Communications Commission or
other governmental agencies;
-- 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 May
31,
-----------------------


2015 2014
---- ----

OPERATING DATA:

Net revenues:

Radio $42,593 $44,990

Publishing 15,525 14,678

Emerging
Technologies 335 56
--- ---

Total
net
revenues 58,453 59,724

Station operating expenses
excluding

depreciation and amortization
expense and LMA fees:

Radio 28,693 27,360

Publishing 15,209 14,940

Emerging
Technologies 1,641 626
----- ---

Total station operating
expenses excluding

depreciation
and
amortization
expense
and
LMA
fees 45,543 42,926

Corporate expenses excluding
depreciation

and
amortization
expense 3,819 4,890

LMA
fees - 3,825

Hungary
license
litigation
and
related
expenses - 92

Depreciation
and
amortization 1,450 1,353

Gain
on
disposal
of
assets - (3)
--- ---


Operating
income 7,641 6,641

Interest
expense (4,546) (1,600)

Other
income,
net 10 11
--- ---


Income
before
income
taxes 3,105 5,052

Provision
for
income
taxes 947 2,385
--- -----


Consolidated
net
income 2,158 2,667

Net
income
attributable
to
noncontrolling
interests 633 1,711
--- -----


Net
income
attributable
to
the
Company 1,525 956
===== ===


Basic
net
income
per
common
share $0.04 $0.02

Diluted
net
income
per
common
share $0.03 $0.02


Basic
weighted
average
shares
outstanding 43,217 42,093

Diluted
weighted
average
shares
outstanding 47,373 47,347



OTHER DATA:

Station
operating
income
(See
below) $13,634 $13,375

Cash
paid
for
income
taxes,
net 216 278

Cash
paid
for
interest 4,321 1,370

Capital
expenditures 421 625


Noncash compensation by
segment:

Radio $470 $270

Publishing 228 132

Emerging
Technologies 26 -

Corporate 1,380 546

Total $2,104 $948
====== ====


COMPUTATION OF STATION
OPERATING INCOME:

Operating
income $7,641 $6,641

Plus:
Depreciation
and
amortization 1,450 1,353

Plus:
Hungary
litigation
expense
and
related
costs - 92

Plus:
Corporate
expenses 3,819 4,890

Plus:
Station
noncash
compensation 724 402

Less:
Gain
on
sale
of
assets - (3)

Station
operating
income $13,634 $13,375
======= =======



SELECTED
BALANCE
SHEET
INFORMATION: May 31, 2015 February 28, 2015
------------ -----------------


Total
Cash
and
Cash
Equivalents $3,270 $3,669

Credit
Agreement
Debt $195,537 $193,000

98.7FM
Nonrecourse
Debt $69,208 $70,401


SOURCE Emmis Communications Corporation

Emmis Communications Corporation

CONTACT: Ryan Hornaday, SVP/Finance & Treasurer, rhornaday@emmis.com; Patrick Walsh, CFO/COO, pwalsh@emmis.com, 317.266.0100

Web Site: http://www.emmis.com


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