Emmis Communications Corp has a market cap of $74 million; its shares were traded at around $1.88 with and P/S ratio of 0.3.
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 nine-month period ended November 30, 2012, local sales, excluding political revenues, represented approximately 83% and 61% 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 for the nine-month periods ended November 30, 2011 and 2012. The automotive industry was the largest category for our radio division for the nine-month periods ended November 30, 2011 and 2012, representing approximately 10% and 11% of our radio net revenues, respectively.
The results of our domestic radio operations are heavily dependent on the results of our stations in the New York and Los Angeles markets. These markets account for nearly 50% of our domestic radio net revenues. During fiscal 2012, KPWR-FM in Los Angeles experienced revenue growth that was better than the overall Los Angeles radio market, whereas our New York cluster trailed the revenue performance of the New York market due to weak performance at our adult urban station, WRKS-FM. During the three months ended May 31, 2012, we entered into an LMA for WRKS-FM. See Note 8 to the accompanying condensed consolidated financial statements for more discussion. During the nine months ended November 30, 2012, KPWR-FM in Los Angeles and WQHT-FM in New York both experienced revenue growth that was better than the Los Angeles and New York markets, respectively. For the nine months ended November 30, 2012, KPWR-FMs gross revenues as reported to the independent public accounting firm Miller Kaplan Arase LLP (Miller Kaplan) increased 3.2% while Miller Kaplan reported total Los Angeles revenues increased 1.6%. For the nine months ended November 30, 2012, WQHT-FMs gross revenues as reported to Miller Kaplan increased 9.1% while Miller Kaplan reported total New York revenues decreased 2.3%. Our results in New York and Los Angeles are often more volatile than our larger competitors due to our lack of scale in these markets. We are dependent on the performance of one station in each of these markets, and as the competitive environment shifts, our ability to adapt is limited. Furthermore, some of our competitors that operate larger station clusters in New York and Los Angeles are able to leverage their market share to extract a greater percentage of available advertising revenue through discounting unit rates.
Station operating expenses excluding depreciation and amortization expense for publishing decreased $0.4 million or 2.8% for the three-month period ended November 30, 2012 due to the reduction of barter transactions as previously discussed, but increased during the nine-month period ended November 30, 2012 mostly due to a company-wide, nonrecurring employee bonus of $0.4 million and additional investments in sales personnel and training.
Cash provided by investing activities was $133.7 million and $98.2 million for the nine-month period ended November 30, 2011 and 2012, respectively. During the nine-month period ended November 30, 2012, the Company sold KXOS-FM in Los Angeles for $85.5 million in cash, sold Country Sampler and related magazines for $8.7 million in cash and received $10.0 million for the intellectual property of WRKS-FM in New York. Partially offsetting the proceeds of asset sales during the nine-month period ended November 30, 2012 is cash used by the Company for investment purposes of $4.0 million, $3.5 million of which related to the Companys investment in Courseload, Inc., a company that provides online access to textbooks and other material. During the nine-month period ended November 30, 2011, the Company sold its Flint Peak, California tower for $5.8 million. The proceeds related to the Flint Peak tower sale, the sale of KXOS-FM and the sale of Country Sampler and related magazines are classified as cash provided by discontinued operations in the accompanying condensed consolidated statements of cash flows.
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