Dear Shareholders, tion, we gained revenue share at 11 of our 13 measured  stations and held the line on expenses, giving us a 1.2  percent increase in fiscal-year cash flow. On our year-end conference call, I said that last year was the best in Emmis Communications’ history. And while that might have sounded like the usual Wall Street hyperbole – like any other CEO bragging about his company’s performance – the difference is, I believed it. And I still do. Our publishing and international divisions also posted strong results. In a tough publishing market, our magazines boosted their division’s revenues by 4.6 percent over last year and increased cash flow by 3.3 percent. Our international division turned in a revenue increase of 27 percent and a cash flow increase of 31 percent. But I’ve been in this business long enough to know two things for sure: What I believe is not as important as what I can prove, and what we did last year is only meaningful if it reflects on how we will do in the coming year. The good news is, Emmis does have the results to back up my high praise, and what we did to perform last year does directly relate to how we’ll perform in the year ahead. In addition to boosting performance in our divisions, we honed our corporate operations by continuing to build one  of the most adept and hardest-working corporate groups in American media. With this team in place, we’ve brought our leverage and cost of capital down to more manageable levels, found ways to combat the continually increasing costs of health insurance and, in a truly top-notch effort, smoothly integrated our new Austin radio properties – in just under a year as a part of Emmis, the Austin properties are enjoying significant ratings and revenue increases.  The bottom line is this: Emmis Communications turned in a remarkable performance last year. Again and again, and by a number of measures, we outperformed our peers, our mar- kets and our own solid track record. Of course, for you, the real bottom line on our performance is its impact on your investment. I’m proud to say that we saw a 27 percent increase in our share price over the course of the last fiscal year – we ended fiscal ’03 at 19.79, and closed the book on fiscal ’04 at 25.17. And we did this in a year that was challenging in just about every way. The economy was unstable, public companies came under continuing scrutiny, indecency issues hounded broadcasters, competition for tight ad dollars increased and technology continued to reshape the media world.  But our people refused to be slowed by those challenges. Instead, they worked through them. They innovated, hustled and focused. And they produced.  Operationally, we were on top of our game last year. However, as I said, I know that the past year’s performance really only matters if it reflects on what we’ll do in the coming year. The good news is, it does. We performed at these high levels not by doing something unusual, but by operating the way Emmis has always operated, and the way we always will. Our radio division’s revenue growth led our markets and the industry – in our fiscal year, our group was up 4.5 percent while our markets were up 2.7 percent and the industry only 1 percent. Based on this kind of performance, we have con- sistently ranked among the nation’s leaders in per-station revenue, and we continue to produce top-rated programming in markets across the nation. First of all, we focus on assembling and maintaining the best teams in our markets. We have traditionally had the top salespeople, creative and technical professionals, news staffs, managers and support staff in every city where we operate. Their peers turn to them for industry leadership, honor them with awards and copy them at every opportunity. We invest in these people, giving them industry-leading ben- efits packages, great opportunities and the tools they need to succeed. This has always been a hallmark of Emmis, and it won’t change. Our TV performance was even more impressive. The Emmis television group’s revenues were up 0.5 percent in calendar 2003, a year when our markets saw a 2.3 percent decrease in revenues, and the industry experienced a 4.7 percent  revenue decline. This industry-leading result made us one of the few groups in the nation to post positive growth. In addi- How we did it The best year 