10.03.02
EMMIS COMMUNICATIONS REPORTS 2ND Q RESULTS
GUIDANCE & WALL STREET ESTIMATES EXCEEDED; FREE CASH FLOWS DOUBLES FROM PRIOR YEAR
Indianapolis - Emmis Communications Corporation (NASDAQ: EMMS) today announced revenues and cash flow for its second fiscal quarter ending August 31, 2002. Net revenue for the quarter was $143.2 million and Broadcast Cash Flow (BCF) was $57.3 million. On a pro forma basis, after giving effect to the sale of our Denver radio stations, net revenue increased 1.3% and BCF increased 2.6%. As reported, compared to the same quarter for the prior year, net revenue was down slightly, whereas BCF was up slightly.
These results exceed revenue guidance of $138.8 million and cash flow guidance $54.5 million, as well as Wall Street estimates for revenues and cash flow. Earnings Per Share (EPS) before accounting charge and extraordinary loss was $0.04, also exceeding Wall Street estimates.
Another measure the company uses to determine performance is Free Cash Flow (FCF), which it defines as net revenues less segment operating expenses, corporate expenses, interest expense (including interest associated with its 12_ % Senior Discount Notes), cash taxes, capital expenditures, and preferred dividends. For the 2nd Quarter, FCF was $15.2 million compared to $7.2 million in the same quarter of the prior year.
"We had a tremendous quarter - and our next quarter looks much stronger," Emmis Chairman and CEO Jeff Smulyan said. "We exceeded the guidance we set forth in July and have continued to consistently reduce our leverage. Most importantly, our television division has made remarkable gains in audience and revenue, and our radio group has had significant gains in audience and revenue in all of our markets. Even in New York City, where we have faced considerable competition, the last ratings and revenue pacings indicate we are meeting the challenge. In an uncertain economy, our people have performed extremely well. This company owes a debt of gratitude to every one of our employees."
After Tax Cash Flow (ATCF) for the quarter was $26.4 million or $0.50 per diluted share as compared to $22.6 million and $0.47 per share for the same quarter last year.
During its 2nd quarter, the company amended its credit facility to provide for up to a $60.2 million redemption of its 12_% Senior Discount Notes due in 2011. The amendment also reduced Emmis' interest cost on $500.0 million of its bank debt by at least 1%. In addition, the company announced in mid-June that it had appointed Ernst & Young LLP as the company's independent auditor, replacing Arthur Andersen LLP.
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Quarter ended 11/30/02 |
Quarter ended 11/30/01 (A) |
% Change |
| Net Revenues: |
| Domestic Radio |
$61,300 |
$59,218 |
3.5 |
| Foreign Radio |
2,700 |
4,384 |
-38.4 |
| Total Radio |
64,000 |
63,602 |
0.6 |
| Television |
63,000 |
52,556 |
19.9 |
| Publishing |
18,800 |
19,110 |
-1.6 |
| Total net revenues |
145,800 |
135,268 |
7.8 |
| |
| BCF/PCF: |
| Domestic Radio |
29,500 |
28,779 |
2.5 |
| Foreign Radio |
300 |
679 |
-55.8 |
| Total Radio |
29,800 |
29,458 |
1.2 |
| Television |
24,500 |
16,597 |
47.6 |
| Publishing |
3,100 |
2,828 |
9.6 |
| Total BCF/PCF |
57,400 |
48,883 |
17.4 |
| |
| Corporate Expenses |
5,200 |
5,354 |
-2.9 |
| |
| EBITDA |
$52,200 |
$43,529 |
19.9 |
(before certain charges)
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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.
The information in this news release is being widely disseminated in accordance with the Securities & Exchange Commission's Regulation FD.
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; 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, including the current report on Form 8-K/A, July 15, 2002. 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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