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For Immediate Release
Thursday, October 11, 2018
Contact: Ryan Hornaday, EVP/CFO & Treasurer
Emmis Announces Second Quarter Earnings
Strong finish for Q2 continuing into Q3
Indianapolis...Emmis Communications Corporation (NASDAQ: EMMS) today announced results for its second fiscal quarter ending August 31, 2018.
Emmis’ radio net revenues for the second fiscal quarter were $30.7 million, down from $41.8 million in the prior year. Sales of radio stations (KPWR in LA in August 2017 and four radio stations in St. Louis on April 30, 2018) make our reported results not comparable year-over-year.
Pro forma for all radio station sales, Emmis’ second quarter radio revenues as reported to Miller Kaplan, which excludes barter revenues and syndication revenues, were down 7% in markets that were down 4%. Our underperformance is principally due to weather-related issues for New York’s Summer Jam in June, which led to Emmis’ June revenues declining 16% for the month.
“Emmis’ radio revenues were up 2% in both July and August, and Emmis’ third quarter is off to a strong start with September revenues up 1% and October pacing up double digits, which would be our strongest month in four years,” said Jeff Smulyan, CEO & Chairman of the Board of Emmis. “Ratings remain strong in New York and continue to improve in Indianapolis. Austin has rebranded KGSR as Austin City Limits Radio, the result of a multi-year licensing agreement with Austin City Limits Enterprises, LLC, creating an eclectic format sure to connect with Austin listeners. Also, our dynamic pricing business, Digonex, has seen a surge of new clients in the last couple of months and we are more excited than ever about the prospects for that business moving forward.
“For the past several months, Emmis and other companies in the radio industry have been working diligently to form a consortium that would own and operate the NextRadio and TagStation businesses,” Smulyan continued. “The participating companies envisioned using their collective scale and resources to build an attribution platform for the radio industry that would have provided the common language and measurement that radio advertisers are demanding. Unfortunately, the consortium has not been formed and these efforts appear to have been unsuccessful. Because Emmis is unwilling and unable to continue to fund the NextRadio and TagStation businesses as they are currently structured, we plan to dramatically reduce the operations of these businesses and explore other means of eliminating the operating losses from these businesses in the coming months.”
A conference call regarding earnings will be hosted today at 9 a.m. Eastern today by dialing 1-517-623-4891 and entering passcode 9094317. Questions may be submitted via email to firstname.lastname@example.org. A digital playback of the call will be available until Thursday, October 18 by dialing 1-402-220-3762.
Emmis has included supplemental pro forma net revenues, station operating expenses, and certain other financial data on its website, www.emmis.com under the “Investors” tab.
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.
The following information was filed by Emmis Communications Corp (EMMS) on Thursday, October 11, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.