Emmis Announces First Quarter Earnings

Emmis Announces First Quarter Earnings

Radio Net Revenues Up Slightly as Reported; Up 5% excluding Los Angeles

INDIANAPOLIS, July 7, 2016 /PRNewswire/ -- Emmis Communications Corporation (NASDAQ: EMMS) today announced results for its first fiscal quarter ending May 31, 2016.


Emmis' radio net revenues for the first fiscal quarter were up fractionally, from $42.6 million to $42.7 million. Excluding the company's radio station in Los Angeles, which is being negatively affected by a recent format competitor, Emmis' radio net revenues would have been up 5% in the quarter. Per Miller Kaplan reporting, radio revenues in Emmis' markets were up 3% in the quarter with and without Los Angeles.

For the first fiscal quarter, operating income was up 13%, from $7.6 million to $8.6 million, primarily due to cost reductions the company implemented in January 2016.

Publishing net revenues were down 16% in the first fiscal quarter, from $15.5 million to $13.1 million, partially due to the timing of certain custom publications that ran in the first quarter of the prior fiscal year, but will run later in the current fiscal year.

"Our New York radio stations had a stellar first quarter, growing revenues 11% and beating a healthy New York radio market that was up 4% in the quarter," said Jeff Smulyan, Chairman & CEO of Emmis. "Compared to last year, Emmis' ratings are up across our portfolio, and we are optimistic this will help drive revenue growth in the second half of the fiscal year."

"I continue to be amazed and encouraged by the progress the radio industry is making with NextRadio®, the radio industry's initiative to make FM broadcast radio available on smartphones and tablets," Smulyan continued. "The Samsung Galaxy S7 and S7 Edge will soon be NextRadio compatible across all major wireless carriers in the United States, and with the support of handset makers BLU, Alcatel, and others, we have launched NextRadio in Canada and Peru."

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 21 by dialing 203-369-0514.

Emmis will host its Annual Shareholders' Meeting today at 10 am at Emmis Headquarters on Monument Circle in Indianapolis. The previously announced one-for-four reverse stock split is expected to be approved, and the first day of trading that reflects the reverse stock split is expected to be Friday, July 8(th).

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:

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 technologies;
-- 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;
-- 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;
-- 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,
--------------------------


2016 2015
---- ----

OPERATING DATA:

Net revenues:

Radio $42,699 $42,593

Publishing 13,092 15,525

Emerging Technologies 211 335
--- ---

Total net revenues 56,002 58,453

Station operating expenses excluding

depreciation and amortization expense:

Radio 27,275 28,693

Publishing 13,478 15,209

Emerging Technologies 2,236 1,641
----- -----

Total station operating expenses excluding

depreciation and amortization expense 42,989 45,543

Corporate expenses excluding depreciation

and amortization expense 3,044 3,819

Depreciation and amortization 1,332 1,450
----- -----


Operating income 8,637 7,641

Interest expense (4,690) (4,546)

Other income, net 43 10
--- ---


Income before income taxes 3,990 3,105

Provision for income taxes 675 947
--- ---


Consolidated net income 3,315 2,158

Net income attributable to noncontrolling interests 629 633
--- ---


Net income attributable to the Company 2,686 1,525
===== =====



Basic net income per common share $0.06 $0.04

Diluted net income per common share $0.06 $0.03


Basic weighted average shares outstanding 47,070 43,217

Diluted weighted average shares outstanding 47,295 47,373



OTHER DATA:

Station operating income (See below) $13,350 $13,634

Cash paid for income taxes, net 116 216

Cash paid for interest 3,866 4,321

Capital expenditures 402 421


Noncash compensation by segment:

Radio $267 $470

Publishing 54 228

Emerging Technologies 16 26

Corporate 519 1,380

Total $856 $2,104
==== ======


COMPUTATION OF STATION OPERATING INCOME:

Operating income $8,637 $7,641

Plus: Depreciation and amortization 1,332 1,450

Plus: Corporate expenses 3,044 3,819

Plus: Station noncash compensation 337 724

Station operating income $13,350 $13,634
======= =======



SELECTED BALANCE SHEET INFORMATION: May 31, 2016 February 29, 2016
------------ -----------------


Total Cash and Cash Equivalents $4,284 $4,456

Credit Agreement Debt $185,580 $184,762

98.7FM Nonrecourse Debt $64,103 $65,411






SOURCE Emmis Communications Corporation

Emmis Communications Corporation

CONTACT: Ryan Hornaday, EVP/CFO & Treasurer, rhornaday@emmis.com, 317.266.0100

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


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