Emmis Communications Corp. is a media company, which engages in the business of radio broadcasting. It operates through the following segments: Radio, Publishing, and Corporate and Emerging Technologies. The company was founded by Jeffrey H. Smulyan in 1979 and is headquartered in Indianapolis, IN.
Our results of operations could be negatively impacted by weak economic conditions and instability in financial markets.
We may lose audience share and advertising revenue to competing radio stations or other types of media.
Our radio operations lack the scale of some of our competitors, especially in the New York market.
Future operation of our business may require significant additional capital.
We must respond to the rapid changes in technology, services and standards that characterize our industry in order to remain competitive, and changes in technology may increase the risk of material intellectual property infringement claims.
Our business depends heavily on maintaining our licenses with the FCC. We could be prevented from operating a radio station if we fail to maintain its license.
We disseminate large amounts of content to the public. An ill-conceived or mistimed on-air statement or social media post could have a material adverse effect on our business.
Any changes in current FCC ownership regulations may negatively impact our ability to compete or otherwise harm our business operations.
Changes in current Federal regulations could adversely affect our business operations.
Our business strategy and our ability to operate profitably depend on the continued services of our key employees, the loss of whom could have a material adverse effect on our business.
Impairment losses related to our intangible assets have reduced our earnings.
We may fail to realize any benefits and incur unanticipated losses related to any acquisition.
We may fail to consummate dispositions or complete them in a timely manner.
Our operating results have been and may again be adversely affected by acts of war, terrorism and natural catastrophes.
We have significant obligations relating to our current operating leases.
Our business is dependent upon the proper functioning of our internal business processes and information systems and modification or interruption of such systems may disrupt our business, processes and internal controls.
Our substantial indebtedness could adversely affect our financial health.
If we cannot continue to comply with the financial covenants in our debt instruments, or obtain waivers or other relief from our lenders, we may default, which could result in loss of our sources of liquidity and acceleration of our indebtedness.
The terms of our indebtedness and the indebtedness of our direct and indirect subsidiaries may restrict our current and future operations, particularly our ability to respond to changes in market conditions or to take some actions.
One shareholder controls a majority of the voting power of our common stock, and his interest may conflict with those of other shareholders.
The difficulties associated with any attempt to gain control of our company could adversely affect the price of our Class A common stock.
Our stock price and trading volume could be volatile.
Our Class A common stock may cease to be listed on the Nasdaq Global Select Market.
Radio net revenues decreased during the year ended February 28, 2019 mostly due to the sale of our St. Louis radio stations on April 30, 2018. Excluding the effects of radio station sales, our radio net revenues would have been down 3.2% for the year ended February 28, 2019. Our net revenues were negatively impacted by lower ticket sales revenue for our largest concert, Summer Jam. Poor weather on the day of the concert negatively impacted ticket sales.
We typically monitor the performance of our 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. A summary of market revenue performance and Emmis’ revenue performance in those markets for the year ended February 28, 2019 is presented below:
Publishing net revenues were up for the year ended February 28, 2019 mostly due to a $0.2 million increase in advertising sales over the prior year.