IBJNews

Emmis stock closes at $1.53, avoids delisting

Back to TopCommentsE-mailPrintBookmark and Share

Shares of Indianapolis-based Emmis Communications Corp. closed Monday at $1.53, the 10th straight day the stock has finished trading above $1—preserving the company's listing on the NASDAQ stock exchange.

NASDAQ warned Emmis last month that it would be delisted from the exchange if the company's stock didn't rise above the $1 minimum for 10 days in a row; March 15 was the deadline. 

The rebound began on Oct. 13, when shares closed at $1.14, up 24 cents from the day before. Prior to that, the stock hadn't closed above $1 in more than a year. It bottomed out at 24 cents in July.

Emmis and many other broadcasters have been weighed down by heavy debt, falling advertising revenue and the perception that radio is a bygone medium.

But several radio companies posted double-digit percentage gains in their stock prices through the first two quarters of the year. And broadcasters are hoping to get an additional boost from the installation of FM receivers in Apple iPods.

In its fiscal second quarter ended Aug. 31, Emmis suffered a whopping loss of $135.6 million—much of which was was attributed to a $160.9 million impairment charge the company took related to the declining value of its Federal Communications Commission radio licenses. The company earned $1.2 million in the same quarter a year earlier.

Emmis' quarterly revenue of $68 million in the second quarter was down 27 percent, from $93.7 million in the same period a year ago.

Wells Fargo analyst Marci Ryvicker, who follows Emmis, wrote in a report this month that September revenue, which will be reported in the company’s fiscal third-quarter results, was better than August's. And October was looking healthier than September, she said, which is having a positive impact on Emmis stock.

“Comments from Emmis management confirm what we have been hearing from other large and small market groups—trends continue to improve month to month,” Ryvicker wrote.

Emmis operates local radio stations WIBC-FM 93.1, WLHK-FM 97.1, WYXB-FM 105.7 and WFNI-AM 1070.

NASDAQ suspended its minimum-stock-price requirement rule last fall after financial markets tanked, but reinstated the rule Aug. 3.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Those of you yelling to deport them all should at least understand that the law allows minors (if not from a bordering country) to argue for asylum. If you don't like the law, you can petition Congress to change it. But you can't blindly scream that they all need to be deported now, unless you want your government to just decide which laws to follow and which to ignore.

  2. 52,000 children in a country with a population of nearly 300 million is decimal dust or a nano-amount of people that can be easily absorbed. In addition, the flow of children from central American countries is decreasing. BL - the country can easily absorb these children while at the same time trying to discourage more children from coming. There is tension between economic concerns and the values of Judeo-Christian believers. But, I cannot see how the economic argument can stand up against the values of the believers, which most people in this country espouse (but perhaps don't practice). The Governor, who is an alleged religious man and a family man, seems to favor the economic argument; I do not see how his position is tenable under the circumstances. Yes, this is a complicated situation made worse by politics but....these are helpless children without parents and many want to simply "ship" them back to who knows where. Where are our Hoosier hearts? I thought the term Hoosier was synonymous with hospitable.

  3. Illegal aliens. Not undocumented workers (too young anyway). I note that this article never uses the word illegal and calls them immigrants. Being married to a naturalized citizen, these people are criminals and need to be deported as soon as humanly possible. The border needs to be closed NOW.

  4. Send them back NOW.

  5. deport now

ADVERTISEMENT