Emmis Communications Corp. (NASDAQ:EMMS) Q1 2020 Earnings Conference Call Transcript
Jul 11, 2019 • 09:00 am ET
Welcome and thank you all for standing by. At this time, all participants line are in a listen-only-mode all throughout the duration of today's call. This call is being recorded. If you have any objections, you may disconnect at this time.
I will not turn the call over to your host, Kate at Emmis, you may begin.
Kate Healey Snedeker
Good morning. Thank you and thank you for joining us for today's Emmis Communications Conference Call regarding First Quarter Earnings. I want to extend a special welcome to all the Emmis employees joining us and listening in this morning. 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'll respond to the questions that have been submitted via email to firstname.lastname@example.org. A playback of the call will be available for the next week by dialing 402-998-0454.
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 have been posted under the investors tab of our website, emmis.com.
Jeff, we're ready to begin.
Kate, thanks. This really has been a remarkable quarter. A lot of the quarter numbers we sort of previewed in our call couple of months ago. Q1 just for housekeeping, pro forma radio revenues for Miller Kaplan were up 3%, matching our markets were also up 3%. But what's really the most compelling story is business that we've now seen since that call. Q2 started strong with a record setting Summer Jam, our concert in New York on June 2nd, those were the highest ticket revenues we've had in the 26-year history of Summer Jam. We're just ecstatic and along with Summer Jam, advertising at our stations remains robust. Q2 is currently pacing up double digits. So we're seeing very encouraging trends not only obviously in May and June that have finished, but in July and August and September. So considering this is a non-election year and non-Olympic year, very encouraged by what we're seeing.
The quarter also obviously marked several major transactions. We announced the sale of our Austin partnership interest on June 2nd. Gross cash proceeds, that will be $39.3 million. And then last week, we announced the transaction involving Hot 97 and WBLS in New York, which actually announced July 1st. In that agreement, we will receive $91.5 million of cash at closing plus more in the form of working capital and a note receivable after closing. We're forming a new public company, Mediaco with Standard General. In that, new company will own 23.7%. Very excited about working with Mediaco there. Their focus will be on media. We're already talking to them about projects where we will be involved in the oversight and the management. We think that's going to be a wonderful relationship,