Emmis sees radio revenues grow nearly 6%, but publishing group remains in the red
Radio and regional magazine publisher Emmis Communications announced first quarter earnings this morning. The company saw radio revenue climb 5.9 percent to $36.926 million, up from $34.876 in the three month period last year. Expenses tied to radio were also down, leading to a healthy ROS for the division.
Things were not so rosy on the publishing side, with revenue falling 3 percent in the quarter, and expenses rising. The division that publishes regional magazines such as Texas Monthly and Los Angeles Magazine remains operating in the red.
Here is the earnings press release in full:
Emmis Announces Accelerating Revenue Growth in First Quarter
Emmis pro forma radio revenues up 7%
NDIANAPOLIS, June 28, 2013 /PRNewswire/ — Emmis Communications Corporation (NASDAQ: EMMS) today announced results for its first fiscal quarter ending May 31, 2013.
Emmis’ radio net revenues for the first fiscal quarter were up 6%, from $34.9 million to $36.9 million. Excluding 98.7FM in New York, which is being programmed by ESPN pursuant to an LMA, radio revenues were up 7%. These results outperformed Emmis’ local radio markets in which revenue growth improved 5% during the quarter.
For the first fiscal quarter, operating income increased 536% to $7.0 million, compared to $1.1 million for the same quarter of the prior year. Emmis’ station operating income for the first fiscal quarter was up 55% to $12.9 million, compared to $8.3 million for the same quarter of the prior year.
Diluted net income per common share from continuing operations for the quarter was $0.08, compared to a diluted net loss per common share from continuing operations of $0.07 for the same quarter of the prior year.
“Results like these are the reason that Emmis is known as one of the best operators of radio stations in the country,” Jeff Smulyan, President & CEO of Emmis said. “In addition to our improving financial performance, our stations and magazines received a number of awards in our first fiscal quarter for community service and content excellence. I’m so proud of our Emmis team for its consistent track record of creativity, innovation and operating excellence.”
Emmis has included supplemental 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.
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. Operating Income is the most directly comparable financial measure in accordance with 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 depreciation, amortization and non-cash compensation.