07.01.03
EMMIS COMMUNICATIONS REPORTS 1ST Q RESULTS
NET REVENUES UP 4.1% to $142.4 MILLION
Indianapolis - Indianapolis…Emmis Communications Corporation (NASDAQ: EMMS) today announced results for its first fiscal quarter ending May 31, 2003.
“Emmis’ performance continues to be the best in the industry - in both radio and television,” Jeff Smulyan, Chairman and CEO of Emmis, said. “We are encouraged by the first quarter numbers, and with such strong performance indicators, there is certainly cause for continuing optimism as we look to the second quarter. It is clear that the people of Emmis will set the standard and outperform our peers."
For the first fiscal quarter, Emmis’ station operating income was $52.7 million, compared to $50.5 million for the same quarter of the prior year, an increase of 4.3%. Operating income was $28.5 million for the quarter, compared to $29.2 million for the same quarter of the prior year.
Net revenue for the quarter was $142.4 million, compared to $136.8 million for the same quarter of the prior year, an increase of 4.1%.
These results exceed the company’s previous guidance, as well as Wall Street consensus estimates for revenues and station operating income. Earnings per Share (EPS) for the quarter was $0.01, compared to a loss before accounting charge of $0.01 for the same quarter of the prior year.
Emmis has included supplemental pro forma net revenues and station operating expenses, excluding non-cash compensation, on its website, www.emmis.com. This information, which includes all station and magazine acquisitions and dispositions through July 1, 2003 (including the expected Austin acquisition), can be found under the Investor tab.
Emmis entered into various interest rate swap agreements in fiscal 2002, at a time when interest rates were substantially higher than they are today. Emmis has included a summary of these swap agreements under the Investor tab on its website. In addition, the company has provided a detailed calculation of its leverage ratios as of May 31, 2003, on its website.
International radio net revenues and station operating expenses for the quarter ended May 31, 2003, were $2.6 million and $2.5 million, respectively.
Later today the company expects to complete its acquisition of 50.1% of a six-station radio cluster in Austin, Texas for approximately $105 million. The radio stations involved are KLBJ-AM (590 News-Talk), KLBJ-FM (93.7 Rock), KGSR-FM (107.1 Adult Alternative), KROX-FM (101.5 Alternative), KEYI-FM (103.5 Oldies) and KXMG-FM (93.3 CHR). Emmis already owns Texas Monthly in the market.
During the company’s first quarter, Emmis announced it had completed the previously announced purchase of WBPG-TV, the WB affiliate in Mobile/Pensacola, giving Emmis a second station in the nation’s #63 market and growing Emmis Television to 16 properties.
Also during the first quarter, Emmis’ Texas Monthly picked up a prestigious National Magazine Award from the American Society of Magazine Editors, while the city/regional magazines of Emmis Publishing picked up a total of 32 honors in the City and Regional Magazine Association’s annual award contest.
Subsequent to the first quarter end, Emmis announced the sale of Portland, Oregon-based Mira Mobile Television, a remote production facilities for sports, corporate, and entertainment clients throughout the western United States, to an ownership group for $4 million. Emmis acquired Mira Mobile in October 2000 in connection with the purchase of certain television assets from Lee Enterprises, Inc.
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| Quarter Ended 08.31.03 |
| Net Revenues: |
| Domestic Radio* |
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75,000 |
| International Radio |
|
4,400 |
| Total Radio |
|
79,400 |
| Television |
|
57,000 |
| Publishing |
|
18,300 |
| Total net revenues |
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154,700 |
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| Station Operating Expenses, excluding non-cash compensation: |
| Domestic Radio* |
|
38,500 |
| Foreign Radio |
|
3,300 |
| Total Radio |
|
41,800 |
| Television |
|
36,800 |
| Publishing |
|
16,600 |
| Total station expenses, excluding non-cash compensation: |
|
95,200 |
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| Corporate Expenses |
|
6,000 |
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| Included in the above domestic radio guidance is approximately $4.3 million in net revenues and $2.5 million in station operating expenses, excluding non-cash compensation, relating to the Austin transaction, assuming the completion of the transaction on July 1, 2003. |
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| Emmis will host a conference call regarding this information on Tuesday, July 1, 2003 at 9 a.m. Eastern at 1.773.756.4619, with a replay available until Tuesday, July 8 by calling 1.402.220.3459, or listen on-line by logging on to www.emmis.com.
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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, 16 television stations, and regional and specialty magazines, and ancillary businesses in broadcast sales and publishing. Emmis has announced the acquisition of a majority interest in six radio stations in Austin, Texas. Pending approvals from the Federal Communications Commission and other regulatory agencies, the transaction is expected to close in the company's second fiscal quarter. After the close of the transaction, Emmis will own 27 radio stations in eight U.S. markets.
The information in this news release is being widely disseminated in accordance with the Securities & Exchange Commission’s Regulation FD.
Emmis generally evaluates the performance of its operating entities based on station operating income. Management believes that station operating income is useful to investors because it provides a meaningful comparison of operating performance between companies in the industry and serves as an indicator of the market value of a group of stations or publishing entities. Station operating income is generally recognized by the broadcast and publishing industries as a measure of performance and is used by analysts who report on the performance of broadcasting and publishing groups. Station operating income does not take into account Emmis' debt service requirements and other commitments and, accordingly, station operating income is not necessarily indicative of amounts that may be available for dividends, reinvestment in Emmis' business or other discretionary uses.
Station operating income is not a measure of liquidity or of performance in accordance with accounting principles generally accepted in the United States, and should be viewed as a supplement to and not a substitute for our results of operations presented on the basis of accounting principles generally accepted in the United States. Moreover, station operating income is not a standardized measure and may be calculated in a number of ways. Emmis defines station operating income as revenues net of agency commissions and station operating expenses, excluding non-cash compensation.
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 statements. 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; inability or delay in closing previously announced acquisitions; future terrorist attacks or other large-scale disasters; wars and other events creating economic uncertainty; 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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