Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit No. | Description |
EMMIS COMMUNICATIONS CORPORATION | ||||
Date: October 11, 2018 | ||||
By: | /s/ J. Scott Enright | |||
J. Scott Enright, Executive Vice President, | ||||
General Counsel and Secretary |
• | general economic and business conditions; |
• | fluctuations in the demand for advertising and demand for different types of advertising media; |
• | our ability to service our outstanding debt; |
• | competition from new or different media and technologies; |
• | loss of key personnel; |
• | increased competition in our markets and the broadcasting industry, including our competitors changing the format of a station they operate to more directly compete with a station we operate in the same market; |
• | our ability to attract and secure programming, on-air talent, writers and photographers; |
• | inability to obtain (or to obtain timely) necessary approvals for purchase or sale transactions or to complete the transactions for other reasons generally beyond our control; |
• | increases in the costs of programming, including on-air talent; |
• | fluctuations in the market price of publicly traded or other securities; |
• | new or changing regulations of the Federal Communications Commission or other governmental agencies; |
• | enforcement of rules and regulations of governmental and other entities to which the Company is subject; |
• | changes in radio audience measurement methodologies; |
• | war, terrorist acts or political instability; and |
• | other factors mentioned in documents filed by the Company with the Securities and Exchange Commission. |
EMMIS COMMUNICATIONS CORPORATION AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATED FINANCIAL DATA | ||||||||||||||||
(Unaudited, amounts in thousands, except per share data) | ||||||||||||||||
Three months ended August 31, | Six months ended August 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
OPERATING DATA: | ||||||||||||||||
Net revenues: | ||||||||||||||||
Radio | $ | 30,731 | $ | 41,764 | $ | 57,115 | $ | 80,470 | ||||||||
Publishing | 897 | 846 | 2,170 | 1,990 | ||||||||||||
Emerging Technologies | 428 | 238 | 777 | 552 | ||||||||||||
Total net revenues | 32,056 | 42,848 | 60,062 | 83,012 | ||||||||||||
Station operating expenses excluding depreciation and amortization expense: | ||||||||||||||||
Radio | 22,660 | 29,881 | 40,353 | 56,015 | ||||||||||||
Publishing | 1,009 | 1,104 | 2,208 | 2,459 | ||||||||||||
Emerging Technologies | 2,334 | 2,919 | 4,973 | 6,660 | ||||||||||||
Total station operating expenses excluding depreciation and amortization expense | 26,003 | 33,904 | 47,534 | 65,134 | ||||||||||||
Corporate expenses excluding depreciation and amortization expense | 2,802 | 2,538 | 5,310 | 5,281 | ||||||||||||
Depreciation and amortization | 779 | 881 | 1,578 | 1,859 | ||||||||||||
Loss (gain) on sale of assets, net of disposition costs | 15 | (76,706 | ) | (32,052 | ) | (76,706 | ) | |||||||||
Loss on disposal of property and equipment | — | 12 | — | 12 | ||||||||||||
Operating income | 2,457 | 82,219 | 37,692 | 87,432 | ||||||||||||
Interest expense | (1,715 | ) | (4,548 | ) | (4,356 | ) | (9,214 | ) | ||||||||
Loss on debt extinguishment | — | (2,523 | ) | (771 | ) | (2,523 | ) | |||||||||
Other income, net | 36 | 11 | 52 | 14 | ||||||||||||
Income before income taxes | 778 | 75,159 | 32,617 | 75,709 | ||||||||||||
Provision for income taxes | 346 | 4,394 | 7,946 | 4,372 | ||||||||||||
Consolidated net income | 432 | 70,765 | 24,671 | 71,337 | ||||||||||||
Net income attributable to noncontrolling interests | 805 | 808 | 1,559 | 1,647 | ||||||||||||
Net (loss) income attributable to the Company | $ | (373 | ) | $ | 69,957 | $ | 23,112 | $ | 69,690 | |||||||
Basic net (loss) income per common share | $ | (0.03 | ) | $ | 5.69 | $ | 1.85 | $ | 5.67 | |||||||
Diluted net (loss) income per common share | $ | (0.03 | ) | $ | 5.59 | $ | 1.71 | $ | 5.59 | |||||||
Basic weighted average shares outstanding | 12,522 | 12,292 | 12,521 | 12,287 | ||||||||||||
Diluted weighted average shares outstanding | 12,522 | 12,513 | 13,495 | 12,463 | ||||||||||||
Three months ended August 31, | Six months ended August 31, | |||||||||||||||
OTHER DATA: | ||||||||||||||||
Station operating income (See below) | $ | 6,125 | $ | 9,121 | $ | 12,671 | $ | 18,204 | ||||||||
Cash paid for (refund from) income taxes, net | (20 | ) | (172 | ) | 349 | (19 | ) | |||||||||
Cash paid for interest | 1,237 | 4,922 | 3,280 | 8,321 | ||||||||||||
Capital expenditures | 84 | 441 | 104 | 838 | ||||||||||||
Noncash compensation by segment: | ||||||||||||||||
Radio | $ | 48 | $ | 153 | $ | 95 | $ | 278 | ||||||||
Publishing | 1 | 1 | 2 | 3 | ||||||||||||
Emerging Technologies | 23 | 23 | 46 | 45 | ||||||||||||
Corporate | 366 | 530 | 758 | 1,070 | ||||||||||||
Total | $ | 438 | $ | 707 | $ | 901 | $ | 1,396 | ||||||||
COMPUTATION OF STATION OPERATING INCOME (LOSS): | ||||||||||||||||
Operating income | $ | 2,457 | $ | 82,219 | $ | 37,692 | $ | 87,432 | ||||||||
Plus: Depreciation and amortization | 779 | 881 | 1,578 | 1,859 | ||||||||||||
Plus: Corporate expenses | 2,802 | 2,538 | 5,310 | 5,281 | ||||||||||||
Plus: Station noncash compensation | 72 | 177 | 143 | 326 | ||||||||||||
Less: Loss (gain) on sale of assets, net of disposition costs | 15 | (76,706 | ) | (32,052 | ) | (76,706 | ) | |||||||||
Plus: Loss on disposal of property and equipment | — | 12 | — | 12 | ||||||||||||
Station operating income | $ | 6,125 | $ | 9,121 | $ | 12,671 | $ | 18,204 | ||||||||
SELECTED BALANCE SHEET INFORMATION: | August 31, 2018 | February 28, 2018 | ||||||||||||||
Total Cash and Cash Equivalents | $ | 7,150 | $ | 4,107 | ||||||||||||
Credit Agreement Debt | $ | 28,000 | $ | 78,451 | ||||||||||||
98.7FM Nonrecourse Debt | $ | 50,691 | $ | 53,919 | ||||||||||||
Other Nonrecourse Debt | $ | 10,033 | $ | 9,992 |