EXHIBIT 99
TUESDAY SEPTEMBER 26, 7:27 PM EASTERN TIME
Press Release
SOURCE: EMMIS COMMUNICATIONS CORPORATION
EMMIS COMMUNICATIONS REPORTS RECORD SECOND QUARTER RESULTS
2ND Q SAME STATION DOMESTIC RADIO REVENUE UP 14%; ATCF $.57
INDIANAPOLIS, Sept. 26 /PRNewswire/ -- EMMIS Communications Corporation (Nasdaq:
EMMS - news) today announced record revenues and cash flow for its fiscal
quarter ending Aug. 31, 2000.
For its second fiscal quarter, EMMIS' ATCF grew to $27.6 million from $15.6
million, a 77% increase over the same quarter of the prior year. ATCF per share
in the second quarter increased to $.57 vs. $.47 in the same quarter of the
prior year, a 21% increase. EMMIS' BCF grew to $47.4 million, a 40% increase
over the same quarter in the previous year.
After-Tax Cash Flow (ATCF) and Broadcast Cash Flow (BCF) are important and
widely used measurements of the operating performance of media properties, used
by management and analysts to evaluate the operating performance of media
properties.
For the second quarter, EMMIS' net revenue grew to $109.1 million from $81.5
million, a 34% increase over the same quarter of the prior year. On a
same-station basis, net revenue for the quarter increased 14% and BCF was up
20%. On a same-station basis, domestic radio net revenue increased 14% for the
quarter and broadcast cash flow increased 20%.
"Our continuing strength in operations, combined with our recent acquisitions,
will give EMMIS even more opportunity for growth in the next year," Chairman and
CEO Jeff Smulyan said. "The radio business is sound, with radio continuing to
get a disproportionate share of advertising dollars in comparison to other
media."
EMMIS' purchase of eight television stations from Lee Enterprises Inc. (NYSE:
LEE - news) is expected to close next week, pending Federal Communications
Commission approval. The acquisition, which will bring the total number of EMMIS
Television stations to 15, will involve the purchase by EMMIS of KOIN-6 (CBS),
Portland, Oregon; KRQE-13 (CBS), Albuquerque, New Mexico; WSAZ-3 (NBC),
Huntington/Charleston, West Virginia; KSNW- 3 (NBC), Wichita, Kansas; KGMB-9
(CBS), Honolulu, Hawaii; KGUN-9 (ABC), Tucson, Arizona; KMTV-3 (CBS), Omaha,
Nebraska; KSNT-27 (NBC), Topeka, Kansas.
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EMMIS also expects to close the Sinclair and Bonneville transactions within the
next two weeks, pending FCC approval. In June, EMMIS announced that it had
reached agreement with Sinclair Broadcast Group Inc. (SBGI) to acquire
Sinclair's six St. Louis radio stations for $220 million. In a separate
transaction, EMMIS announced it signed a letter of intent to swap four of its
St. Louis properties - WKKX-FM and to-be-acquired WIL-FM, WRTH-AM, WVRV-FM - to
Bonneville International Corporation in exchange for KZLA-FM in the nation's #2
market, Los Angeles. EMMIS currently runs KZLA-FM under a LMA. After the close
of this transaction, EMMIS will own 5 radio stations in St. Louis - KSHE-FM,
WXTM- FM, and newly-acquired KPNT-FM, KXOK-FM, and KIHT-FM.
Last week EMMIS and radio industry leaders Bonneville International Corporation,
Corus Entertainment (NYSE: CJR - news), Entercom Communications (NYSE: ETM -
news) and Jefferson Pilot (NYSE: JP - news) announced the formation of an
industry-wide and industry- owned Internet network that will revolutionize the
radio industry's relationship to the web. The industry-owned Internet initiative
- the Local Media Internet Venture (LMIV) - will provide the technology, content
and marketing needed to make local station web sites compelling. The five
founding members on board bring with them an aggregate audience of more than 37
million weekly listeners.
In other recent company news, EMMIS announced the acquisition of Denver's
KALC-FM ("Alice") from Salem Communications on Sept. 18. Pending various
approvals, the deal is expected to close in January 2001, although EMMIS will
begin operating the station within 30 days under a local management agreement
(LMA). KALC-FM joins EMMIS' other Denver holding, KXPK-FM, which EMMIS bought
from Clear Channel Communications Inc. (NYSE: CCU - news) on Aug. 24, 2000.
In addition, Hearst-Argyle (NYSE: HTV - news) has identified WMUR-TV in New
Hampshire as the television station property that it will swap with EMMIS in
exchange for radio stations KTAR-AM, KMVP-AM, and KKLT-FM in Phoenix, the
nation's 15th largest radio market. In the deal announced June 5, 2000, EMMIS
agreed to manage the three radio stations while Hearst-Argyle identified a
suitable television station property for EMMIS to purchase and swap with
Hearst-Argyle for the Phoenix stations. EMMIS currently runs the three Phoenix
stations under a LMA, as well as Phoenix's KKFR-FM, purchased from Clear
Channel. This transaction is expected to close in the 1st calendar quarter of
2001.
As previously announced, EMMIS is in the process of evaluating structural
alternatives for separating its radio and television businesses, and expects to
announce the details in the next few weeks.
During the 2nd Quarter, EMMIS received a $17 million cash break-up fee from
Midwestern Broadcasting when Midwestern sold Atlanta radio station WALR-FM to
Cox Radio Inc. (NYSE: CXR - news). This fee is excluded from ATCF and BCF.
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In this news release, "same-station basis" reflects results from stations
operated during the three-month period in both 2000 and 1999.
EMMIS Communications is an Indianapolis-based diversified media firm with radio
broadcasting, television broadcasting and magazine publishing operations. EMMIS'
20 FM and 4 AM domestic radio stations serve the nation's largest markets of New
York, Los Angeles and Chicago as well as Denver, Phoenix, St. Louis,
Indianapolis and Terre Haute, IN. In addition, EMMIS owns two radio networks,
three international radio stations, 15 television stations, award-winning
regional and specialty magazines and ancillary businesses in broadcast sales and
publishing.
Certain statements included above which are not statements of historical fact,
including those identified with the words "expect," "will," or "would" are
intended to be, and are, identified as "forward-looking statements," as defined
in the Securities and Exchange Act of 1934, as amended, and involve known and
unknown risks, uncertainties and other factors that may cause the actual
results, performance or achievements of EMMIS to be materially different from
any future result, performance or achievement expressed or implied by such
forward- looking statement. Such factors include, among others, general economic
and business conditions; fluctuations in the demand for advertising; increased
competition in the broadcasting industry; inability to obtain necessary
approvals for our pending acquisitions or to complete our pending acquisitions;
changes in the costs of programming; inability to grow through suitable
acquisitions, including the desired radio; and other factors mentioned in
documents filed by EMMIS with the Securities and Exchange Commission.
A conference call regarding this earnings release is scheduled for 9 am Eastern,
Wednesday, Sept. 27, 2000. Dial in at 1.888.425.9158. For replay information,
please contact Kate Healey at 317.684.6576 or [email protected]. Investors have
the opportunity to listen to the conference call over the Internet through the
EMMIS site, www.emmis.com.
Note: One-page financial schedule follows.
Note: If you would like to receive EMMIS Communications news via email, send an
email to [email protected]
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EMMIS COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED FINANCIAL DATA
(Unaudited, dollars in thousands, except per share data)
<TABLE>
<CAPTION>
Three months ended August 31, Six months ended August 31,
---------------------------------------- ----------------------------------
2000 1999 2000 1999
------------------ ------------------- -------------- -----------------
<S> <C> <C> <C> <C>
OPERATING DATA:
Net revenues:
Radio $ 62,654 $ 51,244 $ 117,509 $ 93,625
Television 26,419 16,992 54,561 35,046
Publishing 19,963 13,293 37,485 25,210
Interactive 33 - 33 -
Total net revenues 109,069 81,529 209,588 153,881
Operating expenses
Radio 28,933 24,057 58,086 47,412
Television 15,444 11,731 32,252 23,737
Publishing 17,189 11,871 32,964 21,973
Interactive 148 - 268 -
Segment operating
expenses 61,714 47,659 123,570 93,122
Corporate expenses 3,967 3,478 7,687 6,684
International business
development expenses 427 367 831 747
Time brokerage agreement fees 1,114 - 1,114 -
Noncash compensation 1,903 1,648 3,567 2,293
Depreciation and amortization 14,721 10,336 28,993 20,045
Operating income 25,223 18,041 43,826 30,990
Interest expense (9,180) (13,936) (17,592) (27,165)
Minority interest 69 466 593 1,525
Other income (expense), net 14,086 (55) 13,872 (293)
Income before income taxes 30,198 4,516 40,699 5,057
Provision for income taxes 13,560 3,300 18,150 3,600
Net income 16,638 1,216 22,549 1,457
Preferred stock dividends 2,246 0 4,492 0
Net income available to
common shareholders 14,392 1,216 18,057 1,457
Basic net income per common
share $ 0.31 $ 0.04 $ 0.39 $ 0.05
Diluted net income per common
share $ 0.30 $ 0.04 $ 0.38 $ 0.04
Weighted average shares
outstanding:
Basic 46,911,323 31,858,856 46,615,258 31,712,934
Diluted 48,172,315 32,876,196 48,039,374 32,611,888
OTHER DATA:
Broadcast/Publishing cash
flow(a) 47,355 33,870 86,018 60,759
EBITDA before certain
charges(b) 42,961 30,025 77,500 53,328
</TABLE>
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<TABLE>
<CAPTION>
Three months ended August 31, Six months ended August 31,
---------------------------------------- ----------------------------------
2000 1999 2000 1999
------------------ ------------------- -------------- -----------------
<S> <C> <C> <C> <C>
AFTER TAX CASH FLOW CALCULATION:
Net income 16,638 1,216 22,549 1,457
Depreciation and amortization 14,721 10,336 28,993 20,045
Non cash compensation 1,903 1,648 3,567 2,293
Non cash taxes 5,295 2,363 7,675 3,979
Preferred dividends (2,246) - (4,492) -
Nonrecurring items(c) (8,760) - (8,760) -
After tax cash flow 27,551 15,563 49,532 27,774
0.57(d) 0.47 1.03(d) 0.85
After tax cash flow per
diluted share
</TABLE>
SELECTED BALANCE SHEET INFORMATION: August 31, 2000 February 29, 2000
--------------- ---------------
Total Cash and Cash Equivalents 10,755 17,370
Total Long-Term Senior Debt and Senior 442,000 300,000
Subordinated Debt
(a) Total net revenues less segment operating expenses.
(b) Broadcast/Publishing cash flow less corporate and international business
development expenses.
(c) Includes break-up fee from Midwestern Broadcasting related to the sale of
WALR-FM, net of related expenses and income taxes, and asset valuation
adjustment, net of income taxes.
(d) If the preferred stock were converted, weighted average diluted shares
outstanding would have been 51,852,315 and 51,719,374 for the three and six
months ended August 31, 2000, respectively
SOURCE: EMMIS COMMUNICATIONS CORPORATION
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