10-11-2012
While Emmis reported quarterly earnings negatively impacted by station divestitures, on a pro forma basis, net revenue for the quarter increased 1%, from $54.4 million to $55.0 million. Pro forma radio net revenues increased 2%, from $41.4 million to $42.0 million. Emmis CEO Jeff Smulyan says, "This growth outpaced market revenue growth in the quarter, which was less than 1 percent. I?m excited to report that Emmis has continued its strong operating performance. Our stations? revenue growth has exceeded the revenue growth of its markets (as measured by Miller Kaplan) in every month this calendar year."
The company reported June was up 2%, July was up 6%, August was down 2%, and digital was up 30%. CFO Pat Walsh also said the next quarter is looking very volatile.
Smulyan also said Emmis has solved the riddle of its balance sheet. "We continue to take steps to improve our balance sheet. We are actively pursuing a refinancing of our entire capital structure that will dramatically reduce our interest expense and increase our free cash flow going forward. While the picture is dramatically improved over just a year ago, I want to be clear that we must be vigilant and continue to keep a tight rein on costs. We don?t want to increase expenses when the industries we are in are only growing slightly. The transformation of Emmis is almost complete. We are a smaller, more agile company with a vastly diminished debt load. I?m proud of the way we weathered one of the most difficult chapters in not just Emmis history, but in U.S. history." Smulyan said the company now has $80 million in debt and is leveraged 3.5X.
And in answering a question from an investor about the preferred shareholders who were coming after Emmis for millions of dollars in back dividends, Smulyan said, "We are happy to go back to court with them as often as they'd like. They don't want to resolve this."
(10/11/2012 6:11:35 AM)
Wonder if their shareholders know how much they have wasted on the HD Radio scam?
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