Emmis Third Quarter Net Revenues Up 3.4%

Emmis Third Quarter Net Revenues Up 3.4%

INDIANAPOLIS, Jan. 9, 2014 /PRNewswire/ -- Emmis Communications Corporation (NASDAQ: 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%, and its publishing net revenues were up 9.8%. 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%.

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 ir@emmis.com. A digital playback of the call will be available until 5 p.m. on Tuesday, Jan. 21 by dialing 1-402-220-3756.

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 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.

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, amounts in thousands, except per share data)




Three months ended November 30, Nine months ended November 30,
------------------------------- ------------------------------


2013 2012 2013 2012
---- ---- ---- ----

OPERATING DATA:

Net revenues:

Radio $34,854 $34,710 $113,039 $109,550

Publishing 17,767 16,176 45,135 43,233

Total net revenues 52,621 50,886 158,174 152,783

Station operating expenses excluding

depreciation and amortization expense:

Radio 23,517 23,064 74,428 75,372

Publishing 15,031 14,335 43,770 42,377

Total station operating expenses excluding

depreciation and amortization expense 38,548 37,399 118,198 117,749

Corporate expenses excluding depreciation

and amortization expense 3,653 3,717 13,123 12,850

Hungary license litigation and related expenses 500 371 1,795 785

Depreciation and amortization 1,218 1,218 3,607 3,512

Impairment loss - - - 10,971

(Gain) loss on sale of assets (9) 23 (10) (9,983)
--- --- --- ------


Operating income 8,711 8,158 21,461 16,899

Interest expense (1,712) (5,361) (5,441) (18,006)

Loss on debt extinguishment (653) (56) (653) (1,141)

Other income, net 54 164 94 147
--- --- --- ---


Income (loss) before income taxes and

discontinued operations 6,400 2,905 15,461 (2,101)

Provision (benefit) for income taxes 732 976 911 (4,948)
--- --- --- ------


Income from continuing operations 5,668 1,929 14,550 2,847

Income from discontinued operations, net of tax - 3,707 - 40,124
--- ----- --- ------


Consolidated net income 5,668 5,636 14,550 42,971

Net income attributable to noncontrolling interests 1,395 1,036 4,230 3,515
----- ----- ----- -----


Net income attributable to the Company 4,273 4,600 10,320 39,456

Gain on extinguishment of preferred stock - - 325 -

Preferred stock dividends - - - (1,806)

Net income attributable to common shareholders $4,273 $4,600 $10,645 $37,650
====== ====== ======= =======


Amounts attributable to common shareholders for basic earnings per share:

Continuing operations 4,273 893 10,645 (2,474)

Discontinued operations - 3,707 - 40,124

Net income attributable to common shareholders 4,273 4,600 10,645 37,650
===== ===== ====== ======


Amounts attributable to common shareholders for diluted earnings per share:

Continuing operations 4,273 893 10,320 (2,474)

Discontinued operations - 3,707 - 40,124

Net income attributable to common shareholders 4,273 4,600 10,320 37,650
===== ===== ====== ======


Basic net income (loss) per common share:

Continuing operations $0.11 $0.02 $0.26 $(0.06)

Discontinued operations - 0.10 - 1.03

Net income attributable to common shareholders $0.11 $0.12 $0.26 $0.97
===== ===== ===== =====


Diluted net income (loss) per common share:

Continuing operations $0.09 $0.02 $0.23 $(0.06)

Discontinued operations - 0.08 - 1.03

Net income attributable to common shareholders $0.09 $0.10 $0.23 $0.97
===== ===== ===== =====


Weighted average shares outstanding:

Basic 40,477 38,976 40,343 38,871

Diluted 46,212 45,728 45,657 38,871



OTHER DATA:

Station operating income (See below) 13,577 13,447 39,651 35,027

(Refund from) cash paid for income taxes, net (211) 617 (1,015) 1,348

Cash paid for interest 1,536 2,461 4,821 17,838

Capital expenditures 420 1,195 2,277 2,151


Noncash compensation by segment:

Radio $ - $195 $980 $485

Publishing 4 136 490 293

Corporate 467 1,039 2,083 1,546

Total $471 $1,370 $3,553 $2,324
==== ====== ====== ======


COMPUTATION OF STATION OPERATING INCOME:

Operating income $8,711 $8,158 $21,461 $16,899

Plus: Depreciation and amortization 1,218 1,218 3,607 3,512

Plus: Corporate expenses 3,653 3,717 13,123 12,850

Plus: Station noncash compensation 4 331 1,470 778

Plus: Impairment loss - - - 10,971

Less: Gain on sale of assets (9) 23 (10) (9,983)

Station operating income $13,577 $13,447 $39,651 $35,027
======= ======= ======= =======



SELECTED BALANCE SHEET INFORMATION: November 30, 2013 February 28, 2013
----------------- -----------------


Total Cash and Cash Equivalents $5,319 $8,735

Credit Agreement Debt $59,000 $67,000

98.7FM Nonrecourse Debt $76,003 $79,068




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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