Emmis Announces Second Quarter Earnings

Emmis Announces Second Quarter Earnings

Emmis radio revenues flat, markets down 2%

INDIANAPOLIS, Oct. 8, 2015 /PRNewswire/ -- Emmis Communications Corporation (NASDAQ: EMMS) today announced results for its second fiscal quarter ending August 31, 2015.

Emmis' radio net revenues for the second fiscal quarter were flat at $47.6 million. Per Miller Kaplan reporting, which excludes barter revenues and syndication revenues, Emmis' second quarter radio revenues were down 0.5% compared to local radio market revenues down 1.9%. Our New York cluster performed much better in the second quarter (up 4.3% in a market down 3.4%).

Emmis' Publishing division had another solid quarter, with revenues up 3.4%, and up 4.6% year to date. Texas Monthly has demonstrated particularly strong growth in the first half of the year.

Emmis grew station operating income for the second fiscal quarter to $15.3 million, compared to $15.2 million for the same quarter of the prior year. For the second fiscal quarter, operating income was $9.8 million, compared to $12.5 million for the same quarter of the prior year. This decline is nearly entirely attributable to a $2.5 million nonrecurring gain on contract settlement in the prior year.

"Despite our outperformance, the markets where we operate remain challenged. While we are outperforming in a difficult marketplace, the radio industry is clearly in need of a catalyst - and we think we have it with NextRadio," Jeff Smulyan, CEO of Emmis said. "The addition of AT&T and T-Mobile during the quarter continues the momentum for NextRadio, the Emmis-led industry initiative to make FM broadcast radio available on smartphones and tablets. I'm most pleased by the broad industry support we have garnered for the effort, which we believe will revolutionize radio."

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, October 22 by dialing 203-369-3253.

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
reasons generally 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 August 31, Six months ended August 31,
----------------------------- ---------------------------


2015 2014 2015 2014
---- ---- ---- ----

OPERATING DATA:

Net revenues:

Radio $47,562 $47,598 $90,155 $92,588

Publishing 14,592 14,113 30,117 28,791

Emerging Technologies 328 113 663 169
--- --- --- ---

Total net revenues 62,482 61,824 120,935 121,548

Station operating expenses excluding

depreciation and amortization expense and LMA fees:

Radio 31,880 31,170 60,573 58,530

Publishing 14,038 14,513 29,247 29,453

Emerging Technologies 1,816 610 3,457 1,236
----- --- ----- -----

Total station operating expenses excluding

depreciation and amortization expense and LMA fees 47,734 46,293 93,277 89,219

Corporate expenses excluding depreciation

and amortization expense 3,487 3,341 7,306 8,231

LMA fees - 383 - 4,208

Hungary license litigation and related expenses - 192 - 284

Depreciation and amortization 1,403 1,591 2,853 2,944

Gain on contract settlement - (2,500) - (2,500)

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


Operating income 9,858 12,524 17,499 19,165

Interest expense (4,945) (4,878) (9,491) (6,478)

Loss on debt extinguishment - (1,455) - (1,455)

Other income, net 828 168 838 179
--- --- --- ---


Income before income taxes 5,741 6,359 8,846 11,411

Provision for income taxes 826 2,167 1,773 4,552
--- ----- ----- -----


Consolidated net income 4,915 4,192 7,073 6,859

Net income attributable to noncontrolling interests 521 1,432 1,154 3,143
--- ----- ----- -----


Net income attributable to the Company 4,394 2,760 5,919 3,716
===== ===== ===== =====


Basic net income per common share $0.10 $0.06 $0.14 $0.09

Diluted net income per common share $0.09 $0.06 $0.12 $0.08


Basic weighted average shares outstanding 43,798 42,525 43,537 42,337

Diluted weighted average shares outstanding 47,251 47,544 47,386 47,479



OTHER DATA:

Station operating income (See below) $15,269 $15,216 $28,903 $28,591

Cash paid for income taxes, net - (35) 216 243

Cash paid for interest 4,092 1,025 8,413 2,395

Capital expenditures 860 1,050 1,281 1,675


Noncash compensation by segment:

Radio $371 $45 $841 $315

Publishing 129 23 357 155

Emerging Technologies 21 - 47 -

Corporate 1,140 515 2,520 1,061

Total $1,661 $583 $3,765 $1,531
====== ==== ====== ======


COMPUTATION OF STATION OPERATING INCOME:

Operating income $9,858 $12,524 $17,499 $19,165

Plus: Depreciation and amortization 1,403 1,591 2,853 2,944

Plus: Hungary litigation expense and related costs - 192 - 284

Plus: Corporate expenses 3,487 3,341 7,306 8,231

Plus: Station noncash compensation 521 68 1,245 470

Less: Gain on contract settlement - (2,500) - (2,500)

Less: Gain on sale of assets - - - (3)

Station operating income $15,269 $15,216 $28,903 $28,591
======= ======= ======= =======



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


Total Cash and Cash Equivalents $6,751 $3,669

Credit Agreement Debt $191,613 $193,000

98.7FM Nonrecourse Debt $67,960 $70,401


SOURCE Emmis Communications

Emmis Communications

CONTACT: Ryan Hornaday, CFO, rhornaday@emmis.com, 317.266.0100

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


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