Emmis Corporation · OTC:EMMS
Emmis — Emmis Communications — Bank of America 2006 Media, Telecom and Entertainment Conference
27 slides from Emmis's conference presentation, Mar 30, 2006
Slide 1: Bank of America 2006 Media, Telecom and Entertainment Conference
Bank of America 2006 Media, Telecom and Entertainment Conference Thursday, March 30, 2006
Slide 2: Forward-looking statements note
Note: Certain statements in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involved known and unknown risks, uncertainties and other factors which may cause the actual results, perf
Slide 3: Emmis Investment Highlights
Emmis Investment Highlights ¾ Unparalleled large market broadcasting assets ¾ Consistent outperformance of peer group and industry ¾ Strong Free Cash Flow generation & balance sheet ¾ Disciplined acquisition strategy ¾ Performance driven organization
Slide 4: Emmis Radio
Emmis Radio communications 93.9 KZLA | Ore"eé Tee greatmedia.greatpeople.greatservice”
Slide 5: Emmis Television
Emmis Television
Slide 6: Strategic Alternatives: TV Division
Strategic Alternatives: TV Division ¾ Delevered the Company and delivered a more flexible capital structure ¾ Creates pure play radio company ¾ Realize full value of TV assets by capitalizing on the disconnect between public and private market values ¾ TV assets are a better match for a larger opera
Slide 7: Announced TV Sales
Announced TV Sales LIN – $260 million Blackstone & SJL Group – $259 million WBPG, Mobile (LMA) KOIN, Portland WALA, Mobile KHON, Honolulu WTHI, Terre Haute KSNW, Wichita WLUK, Green Bay KSNT, Topeka KRQE, Albuquerque Journal – $235 million WFTX, Ft. Myers Gray – $186 million KMTV, Omaha (LMA) WSAZ,
Slide 8: June 2005 Tender Offer
June 2005 Tender Offer Total Transaction Size $395 m Mechanism Dutch Auction Closing Date June 13, 2005 Shares Purchased (mm) 20.25 Price Per Share $19.50 % Premium per share (a) 26.2% % of Outstanding Stock Class A & B 36% % of Outstanding Class A 39% Source of funds Revolver borrowings and new Flo
Slide 9: Emmis Net Revenue by Division
Emmis Net Revenue by Division (In Thousands) Fiscal 2005 Fiscal 2006 Television Domestic Radio Domestic Radio 71% 42% 42% Publishing Publishing International 22% International 13% Radio Radio 3% 7%
Slide 10: Emmis SOI by Division
Emmis SOI by Division Fiscal 2005 Fiscal 2006 Domestic Radio Domestic Radio Television 50% 89% 44% Publishing 4% International Radio Publishing International 2% 6% Radio 5% The reconciliation and other disclosures required by Regulation G are located in an appendix to this presentation.
Slide 11: Emmis Radio
Emmis Radio
Slide 12: NYC – Rating Dominance
NYC – Rating Dominance Summer Fall Winter Spring Summer Fall 2004 2004 2005 2005 2005 2005 9.3 10.3 10.2 10.2 8.6 9.8 #1 #1 #1 #1 #1 #1 36th Straight 18-34 at #1 18-34 6.3 6.1 5.2 #3 5.8 6.4 5.1 #2 #3 Highest #2 #1 #3 25-54 since Spring ‘96 3.1 4.1 2.4 2.8 3.0 2.8 #13 #6 #16 #15 #15 #14 (tie) 25-54
Slide 13: LA – Continued Ratings Dominance
LA – Continued Ratings Dominance ¾ Power 106, has been #1 in18-34 for 15 straight books in the #1 U.S. revenue market ¾ Fast growing target demo ¾ Hot morning personality ¾ One of the top-billing stations in the U.S.
Slide 14: Chicago – Strategic Fit
Chicago – Strategic Fit ¾ Added new high-profile morning show – Johnny B ¾ Currently marketing both stations to boost ratings ¾ Heritage classic rock station complements existing alternative rock station ¾ Significant revenue growth in next 2-3 years
Slide 15: Emmis Radio Outperformance
Emmis Radio Outperformance Emmis met or beat market growth in each of last 11 quarters Emmis vs. Emmis Markets 6% 5% 4.5% 4.1% 4% 3% 2.7% 2.6% 2.3% 2% 1% 0.5% 0% FY04 FY04 FY05 FY05 9 mo. 9 mo. Markets Emmis Markets Emmis FY05 FY06 Markets Emmis *Excludes results from WLUP-FM, which was acquired 1/1
Slide 16: Inventory Management
Inventory Management Radio Rate Increases ¾ Maximize revenues 14% by managing 12% Avg: 6.7% inventory to 10% 8% maximize rate 6% ¾ Consistent history 4% of rate increases 2% 0% ¾ Expect to benefit Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 from competitors’ FY 2004 FY 2005 FY 2006 “less is more”
Slide 17: Strategic Investments
we. 7 media.gicaipeople.greaitservice”” oe communications Strategic Investments
Slide 18: Can't-Miss Summer Events
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Slide 19: Emmis Financials
Emmis Financials
Slide 20: Summary Historical Financials: Net Revenues
Summary Historical Financials Net Revenues $400 $351.8 $350 GR $326.6 CA $302.9 .7% $301.1 $299.0 $300 13 $296.9 $270.9 $250 $243.1 $200 $193.2 $150 $100 $50 $0 FY FY FY FY FY FY FY 9 mo. 9 mo. 1999 2000 2001 2002 2003 2004 2005 FY05 FY06 *Results of our television division excluded from all periods
Slide 21: Summary Historical Financials: Station Operating Income and Adjusted EBITDA
Summary Historical Financials $200 Station Operating Income and Adjusted EBITDA (a,b,c,d) a,b,c,d) $150 CA GR $131.3 12.1% $124.9 $114.7 Station $115.8 Operating $111.4 $113.1 Income $96.4 $106.9 $100 Adjusted $100.6 EBITDA $76.0 $93.8 $92.8 $94.5 $100.8 $95.3 $83.6 $81.0 $50 $64.1 $0 FY FY FY FY FY
Slide 22: Substantial Operating Leverage
Substantial Operating Leverage ¾ Emmis generates significant free cash FY 07 Pro Forma EBITDA $120 flow (FCF) PF Interest Expense $33 $8 ¾ May be used for: CapEx Preferred Stock Div $9 ¾ Debt Repayment Minority Interest $8 ¾ Share Cash Taxes $8 repurchases $54 PF FCF ¾ Acquisitions ¾ Dividends Based
Slide 23: Pro Forma Debt Capitalization for Divestiture of TV
Pro Forma Debt Capitalization for Divestiture of TV (assumes $1.1 billion of net sale proceeds) ($ in Millions) As of February 28, 2006 Post TV Sale Pre TV Sale EBITDA(a) Pro Forma PF EBITDA(b) Capitalization Multiple Capitalization Multiple Cash & Equivalents $16.1 $16.1 Revolver ($350) $184.4 $99.
Slide 24: Reg G Reconciliations
Reg G Reconciliations Computation of Company Total Leverage Ratios Dollars in Thousands Computation of Emmis Total Leverage Ratio Under the Senior Discount Notes: 2/28/05 2/29/04 2/28/03 2/28/02 Numerator: Senior credit facility debt outstanding $ 804,313 $ 739,832 $ 706,898 $ 952,000 Plus: Letters
Slide 25: Reg G Reconciliations
Reg G Reconciliations Actual Actual Actual Actual Actual FY 2003 FY 2004 FY 2005 9-mos FY 05 9-mos FY 06 Operating Income $ 64,514 $ 71,118 $ 72,591 $ 62,551 $ 74,617 Plus: Depreciation and amortization 13,614 15,270 15,870 12,035 12,468 Plus: Corporate expenses, excluding noncash compensation 21,35
Slide 26: Reg G Reconciliations
Reg G Reconciliations Emmis Communications Corporation Reconciliation of EBITDA, Adjusted EBITDA and FCF to Income (loss) f Dollars in Thousands FY 2005 Income (loss) from continuing operations $ (65,493) Plus: Depreciation and amortization 15,870 Plus: Income taxes 854 Plus: Interest expense 39,690
Slide 27: Communications
Communications
Emmis Communications — Bank of America 2006 Media, Telecom and Entertainment Conference on 6ix