Emmis Communications Corp. (EMMS, Financial) filed Quarterly Report for the period ended 2010-08-31.
Emmis Communications Corp. has a market cap of $30.2 million; its shares were traded at around $0.8 with and P/S ratio of 0.1. EMMS is in the portfolios of Mario Gabelli of GAMCO Investors, Jim Simons of Renaissance Technologies LLC.
No customer represents more than 10% of our consolidated net revenues. Our top ten categories for radio represent approximately 61% of our radio divisions total advertising net revenues. The automotive industry, representing approximately 9% of our radio net revenues, is the largest category for our radio division for the six-month periods ended August 31, 2009 and August 31, 2010.
On April 26, 2010, JS Acquisition, Inc. (JS Acquisition), a corporation owned entirely by our Chairman, Chief Executive Officer and President, Mr. Jeffrey H. Smulyan, and Alden Global Capital (together with its affiliates and related parties, Alden) entered into a non-binding Letter of Intent (the Letter of Intent) with respect to a series of transactions relating to the equity securities of Emmis. Subsequently, JS Acquisition and Alden entered into a formal Securities Purchase Agreement, and Emmis and JS Acquisition entered into a Merger Agreement, all of which were designed to take Emmis private in a series of transactions that involved (i) JS Acquisition offering to purchase all of the Class A Common Stock at a price of $2.40 per share (the Tender Offer), (ii) Emmis offering to exchange (the Exchange Offer) all of its 6.25% Series A Cumulative Convertible Preferred Stock (the Existing Preferred Stock) for 12% PIK Senior Subordinated Notes due 2017 (the New Notes), (iii) the adoption of certain amendments to the terms of the Existing Preferred Stock (the Proposed Amendments) and (iv) a subsequent merger of JS Acquisition into Emmis (the Merger and together with the Tender Offer, the Exchange Offer and the Proposed Amendments, the Going Private Transaction).
Radio net revenues increased in the three-month and six-month periods ended August 31, 2010 as compared to the same period of the prior year principally due to the continued improvement in the general pace of business. We typically monitor the performance of our domestic stations against the aggregate performance of the markets in which we operate based on reports for the periods prepared by Miller Kaplan. Miller Kaplan reports are generally prepared on a gross revenues basis and exclude revenues from barter arrangements. Miller Kaplan reported gross revenues for our domestic radio markets increased 4.8% for the six-month period ended August 31, 2010 as compared to the same period of the prior year. Our gross revenues as reported to Miller Kaplan fell short of the performance of the markets in which we operate, posting an increase of 4.2% compared to the prior year. Our gross revenues grew more than the market average in four markets (New York, St. Louis, Indianapolis and Austin) and trailed the market average in two markets (Los Angeles and Chicago). Revenue declines at KPWR in Los Angeles and WLUP in Chicago caused us to fall short of the performance of the markets in which we operate. Miller Kaplan does not report gross revenue market data for our Terre Haute market. For the six-month period ended August 31, 2010 as compared to the same period of the prior year, our average rate per minute for our domestic radio stations was up 0.7%, and our minutes sold were up 2.9%.
Publishing net revenues increased in the three-month and in the six-month periods ended August 31, 2010 as compared to the same periods of the prior year. Advertising revenues were flat year-over-year for the six-month period, but grew approximately 3% in the second quarter. The key categories driving the increase were automotive, home furnishings, jewelry and travel. Revenue growth in the quarter was driven primarily by our larger publications (Texas Monthly, Los Angeles and Country Sampler). We continued to face challenging market conditions at our other four magazines. Newsstand sales were up significantly year-over-year, with a 17% increase and a 13% increase for the three-month and six-month periods ending August 31, 2010, respectively.
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Emmis Communications Corp. has a market cap of $30.2 million; its shares were traded at around $0.8 with and P/S ratio of 0.1. EMMS is in the portfolios of Mario Gabelli of GAMCO Investors, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
As previously mentioned, we derive approximately 70% of our net revenues from advertising sales. Our radio stations derive a higher percentage of their advertising revenues from local sales than our publishing entities. In the six-month period ended August 31, 2010, local sales, excluding political revenues, represented approximately 84% and 64% of our advertising revenues for our radio and publishing divisions, respectively. In the six-month period ended August 31, 2009, local sales, excluding political revenues, represented approximately 85% and 74% of our advertising revenues for our radio and publishing divisions, respectively.No customer represents more than 10% of our consolidated net revenues. Our top ten categories for radio represent approximately 61% of our radio divisions total advertising net revenues. The automotive industry, representing approximately 9% of our radio net revenues, is the largest category for our radio division for the six-month periods ended August 31, 2009 and August 31, 2010.
On April 26, 2010, JS Acquisition, Inc. (JS Acquisition), a corporation owned entirely by our Chairman, Chief Executive Officer and President, Mr. Jeffrey H. Smulyan, and Alden Global Capital (together with its affiliates and related parties, Alden) entered into a non-binding Letter of Intent (the Letter of Intent) with respect to a series of transactions relating to the equity securities of Emmis. Subsequently, JS Acquisition and Alden entered into a formal Securities Purchase Agreement, and Emmis and JS Acquisition entered into a Merger Agreement, all of which were designed to take Emmis private in a series of transactions that involved (i) JS Acquisition offering to purchase all of the Class A Common Stock at a price of $2.40 per share (the Tender Offer), (ii) Emmis offering to exchange (the Exchange Offer) all of its 6.25% Series A Cumulative Convertible Preferred Stock (the Existing Preferred Stock) for 12% PIK Senior Subordinated Notes due 2017 (the New Notes), (iii) the adoption of certain amendments to the terms of the Existing Preferred Stock (the Proposed Amendments) and (iv) a subsequent merger of JS Acquisition into Emmis (the Merger and together with the Tender Offer, the Exchange Offer and the Proposed Amendments, the Going Private Transaction).
Radio net revenues increased in the three-month and six-month periods ended August 31, 2010 as compared to the same period of the prior year principally due to the continued improvement in the general pace of business. We typically monitor the performance of our domestic stations against the aggregate performance of the markets in which we operate based on reports for the periods prepared by Miller Kaplan. Miller Kaplan reports are generally prepared on a gross revenues basis and exclude revenues from barter arrangements. Miller Kaplan reported gross revenues for our domestic radio markets increased 4.8% for the six-month period ended August 31, 2010 as compared to the same period of the prior year. Our gross revenues as reported to Miller Kaplan fell short of the performance of the markets in which we operate, posting an increase of 4.2% compared to the prior year. Our gross revenues grew more than the market average in four markets (New York, St. Louis, Indianapolis and Austin) and trailed the market average in two markets (Los Angeles and Chicago). Revenue declines at KPWR in Los Angeles and WLUP in Chicago caused us to fall short of the performance of the markets in which we operate. Miller Kaplan does not report gross revenue market data for our Terre Haute market. For the six-month period ended August 31, 2010 as compared to the same period of the prior year, our average rate per minute for our domestic radio stations was up 0.7%, and our minutes sold were up 2.9%.
Publishing net revenues increased in the three-month and in the six-month periods ended August 31, 2010 as compared to the same periods of the prior year. Advertising revenues were flat year-over-year for the six-month period, but grew approximately 3% in the second quarter. The key categories driving the increase were automotive, home furnishings, jewelry and travel. Revenue growth in the quarter was driven primarily by our larger publications (Texas Monthly, Los Angeles and Country Sampler). We continued to face challenging market conditions at our other four magazines. Newsstand sales were up significantly year-over-year, with a 17% increase and a 13% increase for the three-month and six-month periods ending August 31, 2010, respectively.
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