The company's total revenues, including radio and publishing, fell 6%--from $90.6 million in the third quarter of 2007 to $85.1 million in 2008. Station operating income was $21.6 million, down almost 17% from last year's $25.9 million.

Despite the weak results, Emmis chairman and CEO Jeff Smulyan expressed confidence that the company is (unlike some competitors) well-positioned to weather the deepening recession, which has been accompanied by big declines in ad revenue.

Smulyan pointed out that "despite crises at other media companies, Emmis continues to generate cash flow that is greater than two times its annual interest costs and had $63.6 million of cash on hand at the end of the third quarter." 

Many traditional media companies have found it increasingly difficult to make scheduled payments on their debt, with no options for further borrowing due to paralysis in the credit markets, leading to bankruptcy. For now, Emmis appears to be safe from this threat.

This news story is important. I recommend that everyone read it.