12.21.99
EMMIS COMMUNICATIONS REPORTS RECORD 3RD Q RESULTS
SAME STATION RADIO NET REVENUE UP 20% 2-FOR-1 STOCK SPLIT PLANNED

Indianapolis - EMMIS Communications Corporation (NASDAQ: EMMS) today announced record revenues and cash flow for its third fiscal quarter and nine months ending November 30, 1999.

For the third quarter, EMMIS net revenue - a key indicator of a media companys success - grew to $91.3 million from $71.6 million, a 27% increase over the same quarter the prior year. EMMIS cash flow grew to $39.1 million, a 30% increase over the same quarter in the previous year.

On a same-station basis, net revenue for the quarter increased 15% and cash flow was up 21%. On a same-station basis, radio revenue increased 20% for the quarter and broadcast cash flow increased 26%. After-tax cash flow on a consolidated basis in the third quarter increased to $1.05 per share vs. $.88 in the same quarter of the prior year, a 19% increase. EMMIS radio margins continue at the 50% level.

EMMIS continues to outperform our peers in each sector of our business, Chairman and CEO Jeff Smulyan noted. Considering this year has been a year of development of our television group and reinvestment in our core radio sector, I am proud of our remarkable performance. We are positioned for even more dynamic growth in our next quarter and next year, and are ready to capitalize on new opportunities.

For the first nine months of the fiscal year, net revenue grew to $245.1 million from $174.1 million, a 41% increase over the same period in the prior year. Cash flow for the period was $99.8 million, a 39% increase over the previous year. On a same-station basis, net revenue in the nine-month period increased 14% and cash flow was up 22%. Radio revenue increased 18% over the same period on a same-station basis and broadcast cash flow increased 25%. After-tax cash flow on a consolidated basis increased to $2.77 per share vs. $2.32 per share during the same nine-month period last year.

Today EMMIS also announced a 2-for-1 split of its Class A and Class B Common Stock, subject to shareholder approval of an increase in the number of authorized shares. Neither a record date nor an issue date for the stock split has been set at this time. A special meeting of EMMIS common shareholders will be called in the near future to amend the articles of incorporation to increase the number of authorized Class A and Class B shares. Subject to shareholders approval, the split is expected to be effective in mid- to late February.

EMMIS strong financial performance makes todays action possible. The stock split will provide additional liquidity for our shareholders and open the door to new prospective investors, Smulyan said.

Also during EMMIS third quarter:
  • Liberty Media purchased 2.7 million Class A Common Shares of EMMIS for approximately $150 million.
  • Liberty is now the second largest shareholder of EMMIS behind Smulyan.
  • EMMIS successfully completed its public offerings of 4.232 million shares of Class A Common Stock at a price of $62.50 per share and 2.875 million shares of 6.25% Series A Cumulative Convertible Preferred Stock.
  • Dec. 31, 1999 will be the dividend record date for its recent 6.25% Series A Cumulative Convertible Preferred Stock offering, with a dividend payment date of Jan. 15, 2000.
  • EMMIS completed its purchase of WKCF-TV, one of the strongest WB affiliates in the country, in the high-growth market of Orlando for $191.5 million. This acquisition is immediately accretive to after tax cash flow.
  • EMMIS International announced the purchase of a controlling interest of FM News (98.3) and Radio 10 (AM 710) in Buenos Aires, Argentina for $15 million.
  • The purchase price of Sinclair Broadcast Group's St. Louis properties was set at $366.5 million for the six radio stations and one television station. EMMIS and Sinclair are currently working to determine the other terms and conditions of the purchase, in accordance with the Baker option. Management is hopeful that a definitive purchase agreement will be executed by the end of the fourth quarter.
In this news release, same-station basis refers to all stations owned by EMMIS as of November 30, 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 -
Great Media, Great People, Great Service

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.