Emmis Communications (EMMS) discusses Hot 97 and the tsunami incident

Apr.15.05 | About: Emmis Communications (EMMS)

Below are some comments from Emmis Communications (ticker: EMMS) from its April 14, 2005 conference call with investors.

On missing its EPS numbers because of the Hot 97 tsunami incident:

….our fourth quarter guidance was issued [on 1/6/05] before the tsunami events and I'll talk a little bit about …how it impacted our financial statements….. the impact on our revenue for the fourth quarter was approximately $1 million in New York for tsunami….we had talked about an EPS from operations of about $0.02. We reported… negative $0.07. The reconciliation between the two… one starts with the $1 million of revenue from tsunami and the incremental million dollar contributions that we've made in the tsunami event. And that basically gets you to around $0.07.

On Hot 97's problems since the tsunami incident:

… make no mistake, between the tsunami incident and subsequent things that happened in New York, Hot has definitely lost some advertising business. We've definitely taken some cancellations…it'll take some time for Hot to work through all of its problems…. I think some of it is on a good day advertisers can be skittish and concerned. And clearly as these incidents pile up one on top of the other, some advertisers got nervous and some of them went away. Like I say, most of them, particularly the local accounts, most all of them have come back and many of them came back very quickly.

(Quotes are from the CCBN StreetEvents transcript.)