09.22.99
EMMIS COMMUNICATIONS REPORTS 2ND Q RESULTS
EMMIS COMMUNICATIONS POSTS RECORD SECOND QUARTER RESULTS AHEAD OF INDUSTRY AND EXPECTATIONS; COMPANY REPORTS REVENUE UP 41%, LED BY RADIO AND T.V. GROWTH
Indianapolis - Continuing its record of strong growth, EMMIS Communications Corporation (NASDAQ: EMMS) today announced record revenues and cash flow for its second fiscal quarter and six months ending August 31, 1999.
Net revenue, one of the most important measures of the companys success, grew to $81.5 million from $57.9 million, a 41% increase over the same quarter in 1998.
For its second quarter, EMMIS broadcast/publishing cash flow grew to $33.9 million, a 37% increase over the same period in the previous year. On a same-station basis, net revenue for the quarter increased 13% and broadcast/publishing cash flow was up 22%. Specifically on a same-station basis, radio revenue increased 19% for the quarter. After-tax cash flow on a consolidated basis in the second quarter increased to 95 cents per share vs. 92 cents in the prior years quarter, a 3% increase.
EMMIS same station revenue numbers continue to outpace our peers, Chairman and CEO Jeff Smulyan noted. This marks five consecutive quarters of double digit same-station revenue growth for the company, reflecting that each of our business segments continue to perform at the highest levels.
For the first six months of the fiscal year, net revenue grew to $153.9 million from $102.5 million, a 50% increase over the same period in 1998. Broadcast/publishing cash flow for the period was $60.8 million, a 46% increase over the previous year. On a same-station basis, net revenue in the six-month period increased 13% and broadcast/publishing cash flow was up 22%. On a same-station basis, radio revenue increased 15% over the period. After-tax cash flow on a consolidated basis increased to $1.70 per share vs. $1.57 per share during the same six-month period in 1998.
In June, EMMIS announced plans to purchase WKCF-TV, one of the strongest WB affiliates in the country, in the high-growth market of Orlando. Pending Federal Communications Commission approval, EMMIS expects to close on this acquisition in the third quarter.
Also in June, EMMIS announced that it had purchased the rights to acquire Sinclair Broadcast Group's St. Louis broadcast properties under an option held by Barry Baker. The purchase price and other material terms of the acquisition are still to be determined in accordance with the option agreement, which has been exercised. In addition, the acquisition will be subject to approval by both the Federal Communications Commission and the Department of Justice.
In this news release, same-station basis refers to all stations owned by EMMIS as of August 31, 1999, and compares those stations results for the period one year earlier. For periods when the stations were not operated by EMMIS, the revenues and broadcast cash flows for the stations represent historical operating results under previous ownership.
Emmis Communications is an Indianapolis-based diversified media firm with radio broadcasting, television broadcasting and magazine publishing operations. Emmis' 18 FM and 3 AM domestic radio stations serve the nation's largest markets of New York, Los Angeles and Chicago as well as Phoenix, St. Louis, Indianapolis and Terre Haute, IN. In addition, Emmis owns two radio networks, three international radio stations, 15 television stations, award-winning regional and specialty magazines, and ancillary businesses in broadcast sales and publishing. In February, the company entered into agreements to sell its two Denver radio stations. Those sales are pending.
The information in this news release is being widely disseminated in accordance with Regulation FD, recently adopted by the Securities and Exchange Commission.
Certain statements included above which are not statements of historical fact, including financial data for quarters or other periods that are not yet completed and statements identified with the words "continues," "expect," "will," or "would" are intended to be, and are, identified as "forward-looking statements," as defined in the Securities and Exchange Act of 1934, as amended, and involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Emmis 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; increased competition in the broadcasting industry; including the implementation of competing formats in large markets; inability to complete our pending divestitures; changes in the costs of programming; changes in interest rates; inability to grow through suitable acquisitions, including the desired radio; future terrorist attacks or other large scale disasters; and other factors mentioned in documents filed by Emmis 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.
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