01.09.02
EMMIS COMMUNICATIONS REPORTS 3RD Q RESULTS
EMMIS OUTPERFORMS ITS RADIO MARKETS FOR 6TH STRAIGHT QUARTER
Indianapolis - Emmis Communications Corporation (NASDAQ: EMMS) today announced revenues and cash flow results for its third fiscal quarter ending Nov. 30, 2001.
For its third fiscal quarter, Emmis' broadcast cash flow (BCF) was $49.7 million, compared to $59.4 million for the same quarter of the prior year, a decrease of 16.4%. Emmisà after-tax cash flow (ATCF) was $19.2 million, a decrease of 34.9% from the same quarter of the prior year. ATCF per share in the third quarter was $0.40, down from $0.62 in the same quarter of the prior year.
For the third quarter, Emmisà net revenue was $137.1 million compared to $143.6 million for the same quarter of the prior year, a decrease of 4.5%.
"With the impact of 9/11 and the general weakness in the advertising environment that all broadcasters faced during the fall of 2001, I remain optimistic given that we continue to outperform our radio markets," EMMIS Chairman and CEO Jeff Smulyan said. "As we continue to closely monitor our expenses and support sales efforts, we are well positioned for rapid growth when the environment improves."
Smulyan added that the company remains confident with its 4th Quarter guidance released Dec. 3, 2001.
During the company's 3rd Quarter, it was announced that Rick Cummings, Executive Vice President/Programming, would succeed Doyle Rose as President of Emmis Radio. In addition, the company announced the amendment of the existing $1.29 billion senior secured credit facility of Emmis Operating Company, a wholly-owned subsidiary of Emmis Communications, which provides Emmis with financial covenant relief through Dec. 1, 2002.
On Nov. 15 Emmis employees were informed of a 10% wage cut which is being supplemented with a corresponding 10% Emmis stock award. This action, which is expected to yield cash savings of approximately $14 million over the next twelve months, will allow the company to reduce cash payroll expenses, increase cash flow and lower leverage while maintaining the product and efficiency of operations.
EMMIS will host a conference call regarding this information on Tuesday, Jan. 8, 2002 at 9 a.m. Eastern at 1.888.877.0131, with a replay available until Tuesday, Jan. 15 at 1.800.283.1577, or listen on-line by logging on to www.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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