Emmis Corporation · OTC:EMMS

Emmis — Emmis Communications — Shareholder Meeting (July 2016)

23 slides from Emmis's shareholder meeting presentation, Jul 7, 2016

  1. Slide 1: Emmis Communications Annual Meeting of Shareholders

    Emmis Communications Annual Meeting of Shareholders July 7, 2016 10:00 a.m.

  2. Slide 2: Forward-looking statements note

    2 • 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 involve known and unknown risks, uncertainties and other factors which may cause the actual results,

  3. Slide 3: Emmis Overview

    3 Emmis Overview  Headquartered in Indianapolis, IN, Emmis is a publicly traded radio broadcasting communications company (NASDAQ: EMMS). The Company was incorporated in 1979 and went public in 1994  Emmis operates one of the 10 largest radio portfolios in the US (based on number of listeners) - O

  4. Slide 4: Radio Industry – Unparalleled Reach

    4 Radio Industry – Unparalleled Reach Radio has surpassed broadcast television as the #1 reach medium in the United States Source: Nielsen Q1 2016

  5. Slide 5: Radio Industry – Consumption is Growing

    5 Radio Industry – Consumption is Growing Source: Nielsen Q1 2016 Average time spent per adult per day with media – all demographics Adults tune in to radio for an average of 1 hour, 52 minutes per day and radio consumption is up 1% in the last 12 months; TV’s share is down.

  6. Slide 6: Radio Industry’s Value

    6 Radio Industry’s Value • Nielsen’s ROI studies highlight radio’s effectiveness  Average ROI of 6:1 and as high as 23:1 • Radio has the lowest CPM of all major media ($13)  Magazines ($17), Cable ($18), Digital ($20), Newspapers ($27), TV ($30) • Perception of streaming providers doesn’t align wi

  7. Slide 7: Emmis Radio Market Summary

    7 Emmis Radio Market Summary FY16 Radio Net Revenues 100% = $143.5 million FY16 Radio Station Operating Income 100% = $38.3 million Note: Excludes 98.7FM in NY. Reflects 50.1% of Austin radio stations New York + Los Angeles represent approximately 55% of our radio net revenues and 64% of our radio S

  8. Slide 8: Emmis versus the market: revenue growth

    8 Streak of outperforming markets derailed by new competition in Los Angeles; other markets continue to outperform Year ended 2/28(29) Emmis revenue growth Market revenue growth 2016 -4.6% (ex-LA -2.0%) -1.5% (ex-LA -2.5%) 2015 +1.6% -3.7% 2014 +4.9% +2.7% 2013 +3.3% -1.2% 20121 +4.0% +0.6% 20111 +6

  9. Slide 9: New York Update

    9 New York Update FY16 NY market revenue summary National +3% Local -5% Network/NTR +6% Digital -3% Total revenues -3% Emmis total NY revenues -5% New York Market Revenue Summary Q1 FY17 NY market revenue summary National +21% Local +1% Network/NTR +1% Digital -1% Total revenues +4% Emmi

  10. Slide 10: Los Angeles Update

    10 Los Angeles Update FY16 LA market revenue summary National flat Local -2% Network/NTR +9% Digital +1% Total revenues flat Emmis total LA revenues -14% Los Angeles Market Revenue Summary Q1 FY17 LA market revenue summary National -8% Local +6% Network/NTR +5% Digital +14% Total revenues

  11. Slide 11: Austin, Indianapolis & St. Louis Update

    11 Austin, Indianapolis & St. Louis Update • Grew market share in Indianapolis and St. Louis in fiscal 2016 as well as Q1 of fiscal 2017 • Maintained 40%+ market share in Austin, but market was weaker in fiscal 2016 as compared to recent years • Ratings in St. Louis are very strong as KPNT and KSHE

  12. Slide 12: January 2016 Expense Reductions

    12 January 2016 Expense Reductions In response to difficult market conditions and company-specific challenges in New York and LA, we implemented a cost reduction plan in January 2016 to yield approximately $7.5 million of savings in fiscal 2017. We are using a portion of these savings to invest in o

  13. Slide 13: Summary of publishing division performance

    13 Summary of publishing division performance Publishing division revenues mostly flat in FYE 2016 $22.5 $12.3 $8.1 $5.5 $5.0 $3.1 Texas Los Angeles Atlanta Indianapolis Cincinnati Orange Coast Publishing division net revenues for fiscal year ended 2/29/2016 ($ millions) +0.4% +0.2% -0.2% +4.7% -1.4

  14. Slide 14: Emerging Technologies: NextRadio and Digonex

    14  Offers dynamic pricing solutions to help clients optimize revenues given supply and demand conditions  Emmis acquired majority control in June 2014  Targeted sectors primarily include zoos, aquariums, theme parks, seated venues, and cultural institutions. Emerging Technologies: NextRadio and

  15. Slide 15: NextRadio Product

    15 NextRadio Product NextRadio is… FM Radio on your Smartphone  NOT Internet Streaming  Intuitive Live Guide  Artist/program/commercial visuals  Station feedback  Real-time interactivity Enabled by TagStation® – cloud- based content delivery application software for broadcasters

  16. Slide 16: NextRadio Data Attribution

    16 NextRadio Data Attribution NextRadio is able to pinpoint listeners and provide insights about the behavior of those listeners for advertisers. This level of measurement has never existed in broadcast radio until now. The chart below shows the location of some NextRadio listeners during the Indian

  17. Slide 17: NextRadio - Carrier and Handset Update

    17 NextRadio - Carrier and Handset Update NextRadio Supported Smartphone Sales in the US D ec-1 4 Ja n -1 5 F e b-1 5 M ar -1 5 A pr -1 5 M ay-1 5 J u n -1 5 J u l- 1 5 A u g -1 5 S e p -1 5 O c t- 1 5 N ov-1 5 D ec-1 5 Ja n -1 6 F e b-1 6 M ar -1 6 A pr -1 6 M ay-1 6 Ju n -1 6 Ju l- 1 6 A u g -1 6

  18. Slide 18: NextRadio Product – International

    18 NextRadio Product – International • FM radio broadcasting technology is the same around the world. • NextRadio is working with broadcasters across North and South America to bring NextRadio to international markets.  Product is live in Google Playstore for Peru and Canada  Launch in Mexico is p

  19. Slide 19: Financial Overview

    19 Financial Overview • EBITDA in excess of cash interest by approximately $20 million • FY17 Uses: CapEx ($3.5 million), debt principal amortization payments ($9.2 million), and investments to accelerate growth of NextRadio ($7 million). Exclude Exclude Emmis Emmis NY SPV Digonex Ex-Nonrecourse ($

  20. Slide 20: Compelling free cash flow yield valuation

    20 Compelling free cash flow yield valuation The summary below excludes the operations of 98.7FM in New York, which is operated pursuant to an LMA with Disney/ESPN, but makes no adjustments for Digonex losses, NextRadio losses, or severance expenses in the LTM period. LTM 5/31/2016 EBITDA (See appen

  21. Slide 21: Appendix

    Appendix communications

  22. Slide 22: EBITDA Reconciliation

    22 EBITDA Reconciliation LTM 5/31/2016 Trailing twelve-months operating income from continuing operations 20,660$ Plus: Depreciation and amortization 5,679 Plus: Noncash compensation 3,656 Plus: Impairment loss 9,499 Plus: Loss on disposal of assets 56 Less: 49.9% of Austin radio EBITDA (Minority In

  23. Slide 23: Emmis Communications Annual Meeting of Shareholders

    Emmis Communications Annual Meeting of Shareholders July 7, 2016 10:00 a.m.

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