Emmis Communications Corp. (NASDAQ:EMMS) Q3 2019 Earnings Conference Call Transcript

Jan 10, 2019 • 09:00 am ET


Emmis Communications Corp. (NASDAQ:EMMS) Q3 2019 Earnings Conference Call Transcript


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Welcome and thank you for standing by. At this time, all participants are in a listen-only mode for the duration of today's conference. This call is being recorded, if you have any objections you may disconnect at this time.

May I introduce your host for today, Kate at Emmis. Please go ahead.

Kate Snedeker

Good morning. Thanks, everyone. Thank you for joining us for today's Emmis conference call regarding third quarter earnings. I wanted to extend a special welcome to all the Emmis employees, who are joining us and listening in. We'll begin in just a moment with opening comments from Emmis' Chairman and CEO, Jeff Smulyan; and Ryan Hornaday, EVP, CFO and Treasurer.

After opening comments from Jeff and Ryan, we will respond to questions that have been submitted via email to ir@emmis.com. A digital playback of the call will be available for the next week. That number is 203-369-1930.

This conference call may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Please refer to Emmis' public filings with the SEC for more information on the various risks and uncertainties. Additional disclosure related to non-GAAP financial measures has been posted under the Investors tab of our website emmis.com.

Jeff, we're ready to get started.

Jeff Smulyan

Kate, thanks. This has actually been spectacular quarter for us. It's the best quarter we've had in over four years. We were up 5% in markets that were up 2%, so both very good signs. We grew revenues in all three months of the quarter, we grew revenues in all of our markets, and we've outperformed in New York, in Indianapolis and ratings have been very good. In New York, HOT 97 and WBLS are both not only top five 18 to 49, but 25-54. In Indianapolis, B105 has been the number one station pretty consistently with adults and women. And Austin Bob-FM continues as the number one commercial station. And just across the Board with our properties have really done very well, and through this, the first three quarters of the year for us, very encouraging.

And what's also encouraging is calendar 2019 is off to a strong start. January and February are both pacing up mid-single to high-single-digits. And beyond that even March and April are pacing up. So we've really seen an uptick which has been very gratifying. Five of the last six months of the year -- of the calendar year last year were positive, and it looks like, at least at this point, the first four months of this year. So very encouraging. In addition, the Indianapolis Monthly has had a very, very good year, revenues up 7% through the first nine months. And our dynamic pricing business, Digonex is moving on to another level, continues to grow its client base, continues to have great success with its clients, and we think that we've reached the tipping point in that business, and now that business we think can be a major contributor -- significant contributor to