06.22.00
EMMIS COMMUNICATIONS REPORTS 1ST Q RESULTS
1STQ SAME STATION DOMESTIC RADIO REVENUE UP 26.7%; ATCF $.46
Indianapolis - EMMIS Communications Corporation (NASDAQ: EMMS) today announced record revenues and cash flow for its first fiscal quarter, ending May 31, 2000.
For its first fiscal quarter, EMMIS' ATCF grew to $22.0 million from $12.2 million, an 80% increase over the same quarter the prior year. ATCF per share in the first quarter increased to $.46 vs. $.38 in the same quarter of the prior year, a 21.1% increase. EMMIS' BCF grew to $38.7 million, a 43.8% increase over the same quarter in the previous year. After-Tax Cash Flow (ATCF) and Broadcast Cash Flow (BCF) are important and widely used measurements of the operating performance of media properties, used by management and analysts to evaluate the operating performance of media properties.
For the first quarter, EMMIS' net revenue grew to $100.5 million from $72.4 million, a 38.9% increase over the same quarter of the prior year. On a same-station basis, net revenue for the quarter increased 17.6% and BCF was up 22.3%. On a same-station basis, domestic radio revenue increased 26.7% for the quarter and broadcast cash flow increased 36.4%.
"The strength of our radio business - especially in major markets - is the best in the 30 years I've been in broadcasting," Chairman and CEO Jeff Smulyan said. "The industry is on fire, and EMMIS' results are outpacing the industry."
"This quarter we have aggressively reinvested in our major markets where our returns have been significant," Smulyan continued. "Additionally, we have had startup costs in Buenos Aires which have been instantly justified by remarkable ratings."
"With tremendous quarterly earnings and our recent acquisitions, we continue to deliver great results," Smulyan said.
During its 1st Quarter, EMMIS announced it had agreed to purchase eight network-affiliated and seven satellite television stations from Lee Enterprises (NYSE: LEE) for $562.5 million, and that it was evaluating structural alternatives for separating its radio and television businesses.
In recent EMMIS news, the company announced agreements to acquire Hearst-Argyle's KTAR-AM, KMVP-AM and KKLT-FM in Phoenix for $160 million, and acquire KXPK-FM in Denver and KKFR-FM in Phoenix from Clear Channel/AMFM for $108 million, giving EMMIS four stations in the nation's 15th largest radio market.
In this news release, 'same-station basis' reflects results from stations operated during the three-month period in both 2000 and 1999.
A conference call regarding this earnings release is scheduled for 9 am EST today, Thursday, June 22, 2000. Dial in at 1.888.381.5770. For replay information, please contact Kate Healey at 317.684.6576 or khealey@emmis.com
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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