Emmis Sees Revenue Drop For Q4
April 14, 2009 at 5:26 AM (PT)
EMMIS COMMUNICATIONS net revenues fell 19.8% to $68.5 million and domestic radio revenues dropped 20.7% to $38.67 million in fiscal fourth quarter ended FEBRUARY 28th. The company's operating loss widened from $12.1 to $166 million. The 2009 loss includes a $4.2 million restructuring charge and a $163.2 million non-cash impairment charge writing down the value of the company's broadcast licenses and goodwill.
In addition, the company on APRIL 10th borrowed the remaining $71.2 million under its $75 million existing credit facility, and has hired BLACKSTONE ADVISORY SERVICES L.P. to advise it on amending or restructuring its liabilities.
In the 8-K filing, EMMIS said "The advertising environment remains incredibly challenging, particularly for traditional media like radio broadcasting and publishing. Our domestic radio revenues in MARCH finished down 26% as compared to same period of the prior year. As of APRIL 10th, 2009, our domestic radio revenues for APRIL were pacing down 32% and for MAY were pacing down 37%. Pacing information for the month of MARCH strengthened throughout the month as advertising is generally being purchased by our clients much later in the current year than it was purchased in the prior year."