Emmis Communications (Emmis Communications) Operating Income : $-7.69 Mil (TTM As of Feb. 2020)

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What is Emmis Communications Operating Income?

Emmis Communications's Operating Income for the three months ended in Feb. 2020 was $-2.79 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2020 was $-7.69 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Emmis Communications's Operating Income for the three months ended in Feb. 2020 was $-2.79 Mil. Emmis Communications's Revenue for the three months ended in Feb. 2020 was $10.44 Mil. Therefore, Emmis Communications's Operating Margin % for the quarter that ended in Feb. 2020 was -26.69%.

Emmis Communications's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Emmis Communications's annualized ROC % for the quarter that ended in Feb. 2020 was -5.30%. Emmis Communications's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2020 was -258.00%.

Emmis Communications Operating Income Historical Data

The historical data trend for Emmis Communications's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Emmis Communications Operating Income Chart

Emmis Communications Annual Data

Trend

Feb11

Feb12

Feb13

Feb14

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Operating Income

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29.22

18.32

14.39

-10.67

-13.27

Emmis Communications Quarterly Data
	May15	Aug15	Nov15	Feb16	May16	Aug16	Nov16	Feb17	May17	Aug17	Nov17	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20
Operating Income	Get a 7-Day Free Trial															-2.39	4.69	-1.43	-8.16	-2.79

Emmis Communications Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Feb. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $-7.69 Mil.

Emmis Communications (OTCPK:EMMSP.PFD) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Emmis Communications's annualized ROC % for the quarter that ended in Feb. 2020 is calculated as:

	ROC % (Q: Feb. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Nov. 2019 )	+	Invested Capital (Q: Feb. 2020 ))	/ count )
=	-11.148 * ( 1 - 41.15% )	/	( (123.925	+	123.633)	/ 2 )
=	-6.560598	/	123.779
=	-5.30 %

where

	Invested Capital		(Q: Nov. 2019 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	241.507	-	28.106	-	( 111.345	-	max(0, 41.285	-	130.761	+	111.345	))
=	123.925

	Invested Capital		(Q: Feb. 2020 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	221.992	-	7.237	-	( 93.036	-	max(0, 20.414	-	111.536	+	93.036	))
=	123.633

Note: The Operating Income data used here is four times the quarterly (Feb. 2020) data.

2. Joel Greenblatt's definition of Return on Capital:

Emmis Communications's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2020 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Feb. 2020 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Nov. 2019		Q: Feb. 2020
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-70.22	/	( ( (23.899 + max(-13.197, 0))	+	(23.63 + max(6.906, 0)) )	/	2 )
=	-70.22	/	( ( 23.899	+	30.536 )	/	2 )
=	-70.22	/	27.2175
=	-258.00 %

where Working Capital is:

	Working Capital		(Q: Nov. 2019 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(5.599	+	0	+	13.817)	-	(28.106	+	2.639	+	1.868)
=	-13.197

	Working Capital		(Q: Feb. 2020 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(4.627	+	0	+	13.873)	-	(7.237	+	2.605	+	1.752)
=	6.906

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Feb. 2020) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Emmis Communications's Operating Margin % for the quarter that ended in Feb. 2020 is calculated as:

Operating Margin %	=	Operating Income (Q: Feb. 2020 )	/	Revenue (Q: Feb. 2020 )
	=	-2.787	/	10.444
	=	-26.69 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Emmis Communications Operating Income Related Terms

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Emmis Communications (Emmis Communications) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Emmis Communications Corp (OTCPK:EMMSP.PFD) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

40 Monument Circle, Suite 700, One EMMIS Plaza, Indianapolis, IN, USA, 46204

Website

https://www.emmis.com

Emmis Corp, formerly Emmis Communications Corp is a diversified media company principally focused on radio broadcasting. The company owns and operates radio and magazine entities in large and medium-sized markets throughout the United States. Its operations have aligned into two business segments: Radio and Publishing. A vast majority of revenue is generated from the Radio segment. The company generates revenue in the form of Advertising; Circulation, which includes revenues from digital and home delivery subscriptions; Nontraditional, which includes ticket sales and sponsorship of events on their stations and magazine conduct; LMA(Local Marketing Agreement) Fees; and other revenues.

Executives

Paul V. Brenner	officer: President	40 MONUMENT CIRCLE, SUITE 700, INDIANAPOLIS IN 46204
Ryan A Hornaday	officer: EVP, CFO & Treasurer	40 MONUMENT CIRCLE, SUITE 700, INDIANAPOLIS IN 46204
James M Dubin	director	ONE MADISON PLACE, HARRISON NY 10528
Herbert Simon	other: Member of 10% owner 13d group	115 W WASHINGTON ST, INDIANAPOLIS IN 46204
Hsjs, Llc	other: Member of 10% owner 13d group	C/O MELVIN SIMON & ASSOCIATES, 225 W WASHINGTON ST, INDIANAPOLIS IN 46204
2012 Retention Plan Trust	10 percent owner	40 MONUMENT CIRCLE, SUITE 700, INDIANAPOLIS IN 46204
Michelle Duncan Bergman	director	25 WEST ROAD, SHORT HILLS NJ 07078
Joseph R Siegelbaum	director	40 MONUMENT CIRCLE, SUITE 700, INDIANAPOLIS IN 46204
David Gale	director	220 MONTGOMERY STREET, SUITE 426, SAN FRANCISCO CA 94104
Bradley Louis Radoff	10 percent owner	2727 KIRBY DRIVE, UNIT 29L, HOUSTON TX 77098
Group, Lllp Djd	other: member of 10% owner group	4221 WEST BOY SCOUT BOULEVARD, SUITE 1000, TAMPA FL 33607
Family Foundation Radoff	10 percent owner	2727 KIRBY DRIVE, UNIT 29L, HOUSTON TX 77098
Defosset Don	other: member of 10% owner group	4221 WEST BOY SCOUT BOULEVARD, SUITE 1000, TAMPA FL 33607
Smith Management Llc	10 percent owner	885 THIRD AVENUE, 34TH FLOOR, NEW YORK NY 10022
Alden Global Capital Ltd	10 percent owner	THIRD FLOOR, ONE WAVERLEY PLACE, UNION STREET, ST. HELIER Y9 JE2 3RF