Emmis Announces Fourth Quarter and Full-Year Earnings

Emmis Announces Fourth Quarter and Full-Year Earnings

INDIANAPOLIS, May 5, 2016 /PRNewswire/ -- Emmis Communications Corporation (NASDAQ: EMMS) today announced results for its fourth fiscal quarter and full-year ending February 29, 2016.

Emmis' radio net revenues for the fourth fiscal quarter were $36.4 million, down from $38.8 million from the prior year, a decrease of 6%. Per Miller Kaplan reporting, which excludes barter revenues and syndication revenues, and excluding LMA fee revenue in New York, Emmis' fourth quarter radio revenues were down 7.3% compared to local radio market revenues up 0.7%. For the full year, radio revenues were $169.2 million, compared to $176.3 million in the prior year, a decrease of 4%. Per Miller Kaplan reporting, and excluding LMA fee revenue in New York, Emmis' fiscal 2016 radio revenues were down 4.6% compared to local radio market revenues down 1.5%. Our Indianapolis and St. Louis clusters grew market share in the three-month and full-year periods.

Publishing revenues were down 2% in the fourth quarter and down slightly year over year.

Emmis announced a series of cost reductions in January, which were implemented during the company's fourth quarter, to better align resources with growth initiatives.

"Emmis' fourth quarter was weak, mostly due to expected underperformance in Los Angeles," Jeff Smulyan, President & CEO of Emmis said. "The good news is our first quarter is much improved and currently pacing flat to the prior year. New York's performance has been stellar, ratings in LA have begun to grow again, and ratings across our other radio markets are very strong."

"NextRadio is coming off a fantastic National Association of Broadcaster convention, and momentum is building," Smulyan continued. "At NAB, it was announced that PRSS, the distribution network for public radio, is being integrated into NextRadio. Carrier and handset conversations are robust, and advertiser interest is high. In addition, we will launch in our first international market, Peru, in the coming weeks. I couldn't be more pleased with the efforts of Paul Brenner and his team in bringing NextRadio to our industry and to listeners everywhere."

To ensure it remains compliant with NASDAQ listing rules, Emmis will enact, if necessary, a 4:1 reverse stock split this summer, subject to shareholder approval.

A conference call regarding earnings will be hosted today at 9 a.m. Eastern today by dialing 1-517-623-4891. Questions may be submitted via email to ir@emmis.com. A digital playback of the call will be available until 6 p.m. on Thursday, May 19 by dialing 203-369-3513.

Emmis has included supplemental pro forma net revenues, 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 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 February 28 (29), Year ended February 28 (29),
------------------------------------ ----------------------------


2016 2015 2016 2015
---- ---- ---- ----

OPERATING DATA:

Net revenues:

Radio $36,439 $38,757 $169,228 $176,250

Publishing 14,217 14,445 60,992 61,142

Emerging Technologies 228 228 1,213 546
--- --- ----- ---

Total net revenues 50,884 53,430 231,433 237,938

Station operating expenses excluding

depreciation and amortization expense and LMA fees:

Radio 28,937 29,954 116,862 117,167

Publishing 15,334 15,625 58,891 60,083

Emerging Technologies 2,192 1,271 7,641 3,759
----- ----- ----- -----

Total station operating expenses excluding

depreciation and amortization expense and LMA fees 46,463 46,850 183,394 181,009

Corporate expenses excluding depreciation

and amortization expense 2,907 3,450 13,023 14,922

LMA fees - - - 4,208

Hungary license litigation and related expenses - 49 - 521

Depreciation and amortization 1,412 1,500 5,797 5,926

Impairment loss 9,499 67,915 9,499 67,915

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

Loss on disposal of assets 56 - 56 -
--- --- --- ---


Operating (loss) income (9,453) (66,334) 19,664 (34,063)

Interest expense (4,697) (5,228) (18,956) (17,101)

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

Other income (expense), net 212 (6,648) 1,057 (6,418)
--- ------ ----- ------


(Loss) income before income taxes (13,938) (78,210) 1,765 (59,037)

(Benefit) provision for income taxes (593) 27,868 2,069 36,948
---- ------ ----- ------


Consolidated net loss (13,345) (106,078) (304) (95,985)

Net (loss) income attributable to noncontrolling interests (3,992) (280) (2,418) 3,274
------ ---- ------ -----


Net (loss) income attributable to the Company (9,353) (105,798) 2,114 (99,259)

Loss on modification of Preferred Stock (162) - (162) -
---- ---

Net (loss) income attributable to common shareholders $(9,515) $(105,798) $1,952 $(99,259)
======= ========= ====== ========



Basic net (loss) income per common share $(0.21) $(2.47) $0.04 $(2.33)

Diluted net (loss) income per common share $(0.21) $(2.47) $0.04 $(2.33)


Basic weighted average shares outstanding 45,026 42,818 44,136 42,537

Diluted weighted average shares outstanding 45,026 42,818 45,264 42,537



OTHER DATA:

Station operating income (See below) $4,571 $6,747 $49,799 $53,441

Cash paid for income taxes, net - - 216 243

Cash paid for interest 4,175 3,722 16,742 9,781

Capital expenditures 1,445 949 3,388 3,514


Noncash compensation by segment:

Radio $94 $59 $1,219 $434

Publishing 62 108 447 286

Emerging Technologies (6) - 94 -

Corporate 85 518 3,144 2,093

Total $235 $685 $4,904 $2,813
==== ==== ====== ======


COMPUTATION OF STATION OPERATING INCOME:

Operating (loss) income $(9,453) $(66,334) $19,664 $(34,063)

Plus: Depreciation and amortization 1,412 1,500 5,797 5,926

Plus: Hungary litigation expense and related costs - 49 - 521

Plus: Corporate expenses 2,907 3,450 13,023 14,922

Plus: Station noncash compensation 150 167 1,760 720

Plus: Impairment loss 9,499 67,915 9,499 67,915

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

Less: Loss on disposal of assets 56 - 56 -

Station operating income $4,571 $6,747 $49,799 $53,441
====== ====== ======= =======



SELECTED BALANCE SHEET INFORMATION: February 29, 2016 February 28, 2015
----------------- -----------------


Total Cash and Cash Equivalents $4,456 $3,669

Credit Agreement Debt $184,762 $193,000

98.7FM Nonrecourse Debt $65,411 $70,401




SOURCE Emmis Communications Corporation

Emmis Communications Corporation

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


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