Emmis Communications Corporation Reports Fiscal 2012 Third Quarter Results

January 13, 2012

Emmis Communications Corporation (NasdaqGS: EMMS) reported revenues for its fiscal 2012 third quarter ended November 30, 2011 fell 10.6% to $59.32 million compared to $66.32 million in the third quarter of the prior fiscal year.  Revenue for the first nine months of fiscal 2012 fell 4.2% to $185.1 million versus $193.24 million during the same period in fiscal 2011.

Revenues were negatively impacted by the sale of a controlling interest in Merlin Media LLC for $130 in cash proceeds.  The company did retain a preferred and common equity interest in Merlin Media LLC.

Net income for the third quarter of fiscal 2012 swung to a huge profit of $113.47 million or $2.49 per diluted share compared to a net loss of $1.67 million or $(0.04) per diluted share in the third quarter of fiscal 2011.  Net income in the first nine months of fiscal 2012 also showed a profit of $105.41 million or $2.29 per diluted share versus a net loss of $7.92 million or $(0.21) per diluted share during the same period in fiscal 2011.

While the company did record impressive net income results in the third quarter, it was due to some extraordinary items.  The items include a gain on sale of $31.81 million recorded after the sale of a controlling interest in Merlin Media LLC, an income tax benefit of $27.48 million and a $55.84 million gain on the extinguishment of preferred stock.

Operating income for the third quarter of fiscal 2012 fell over 59% to $4.69 million compared to $11.49 million in the third quarter of fiscal 2011.  Operating income for the first nine months of fiscal 2012 dropped 42% to $13.64 million down from $$23.52 million during the same period in fiscal 2011.

The company has been working diligently to reduce its massive debt and is making considerable progress.  At November 30, 2011, the balance sheet reflected current assets of $64.17 million, total assets of $365.71 million, current liabilities of $56.54 million and total liabilities of $344.92 million. The company also showed $56.39 million in preferred stock, an accumulated deficit of $615.28 million and a shareholders’ deficit of $35.6 million.

Emmis Communications Corporation is a media company with a focus on radio broadcasting in the United States.  The company also operates national radio networks in Slovakia and Bulgaria.  In addition, the company publishes several city and regional magazines.

Source: Emmis Communications Corporation


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