The Indy Business Journal reports, the Indianapolis-based media company also announced a higher profit in its latest quarter despite a small decline in overall revenue.
Emmis has long been out of compliance with the Nasdaq exchange’s rule requiring shares trade for at least $1 each. The last time Emmis shares met that threshold was Oct. 22, when the stock closed at $1 per share.
The reverse stock split, which takes effect Friday, will reduce the number of Emmis shares from more than 47 million to fewer than 12 million. At Thursday morning’s price of 79 cents per share, the 4-to-1 split would boost the price to $3.16 each.
Emmis has averted a delisting three times in the last six years. The company was warned about possible delistings in November 2010 and in October 2009, but its stock rebounded both times.
Meanwhile, Emmis said Thursday that it turned a profit of nearly $2.7 million, or 6 cents per share, in the fiscal first quarter ended May 31. That’s an improvement from $1.5 million, or 4 cents per share, in the same period of the previous year.
Overall revenue dropped from $58.5 million to $56 million, but radio revenue ticked up from $42.6 million to $42.7 million.
Emmis said radio revenue would have risen 5 percent except for the negative performance of its Los Angeles radio station, which has struggled since losing radio personality Kurt “Big Boy”Alexander to a competitor.
That was partially offset by an 11 percent increase in revenue at Emmis’ New York stations.
Emmis owns 19 FM and four AM radio stations in New York, Los Angeles, St. Louis, Indianapolis, Terre Haute and Austin, Texas.
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