Emmis Announces Fourth Quarter and Full-Year Earnings
Emmis' radio stations gain market share in fourth fiscal quarter
Emmis Communications Corporation (NASDAQ: EMMS) today announced results for its fourth fiscal quarter and full-year ending February 28, 2018.
Emmis' radio net revenues for the fourth fiscal quarter were $28.4 million, down from $34.0 million in the prior year, a decrease of 16%. Pro forma for the sale of our Los Angeles and Terre Haute radio stations, Emmis' fourth quarter radio revenues as reported to Miller Kaplan, which excludes barter revenues and syndication revenues, were down 1% in markets that were down 3%. Our New York and St. Louis clusters both grew their revenues in the quarter and outperformed their markets.
For the full year, radio revenues were $142.9 million compared to $165.1 million in the prior year, a decrease of 13%. For the full year, Emmis' pro forma radio revenues as reported to Miller Kaplan were down 2%, narrowly missing the performance of its markets, which were down 1%.
On April 30, the company finalized the sale of its St. Louis radio stations, and after applying the net proceeds therefrom, has less than $20 million of net credit facility debt outstanding.
“In the last 12 months, we have paid down over $120 million of senior debt, leaving us on firm financial footing and providing flexibility as opportunities present themselves,” Jeff Smulyan, CEO & Chairman of the Board of Emmis said. “Ratings for our New York radio stations remain strong, and they are rebounding nicely in Indianapolis. The NextRadio team has done a tremendous job rolling out Dial Report, an industry-wide data attribution platform, and we believe it is uniquely positioned to meet the growing demand for robust analytics and insights into the behaviors of radio listeners.”
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 [email protected] A digital playback of the call will be available until Thursday, May 17 by dialing 1-402-220-9775.
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