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Clear Channel Communications Announces First Quarter 2008 Results
SAN ANTONIO, May 09, 2008 (BUSINESS WIRE) -- Clear Channel Communications, Inc. (NYSE: CCU) today reported
results for its first quarter ended March 31, 2008.
The Company reported revenues of $1.6 billion in the first quarter
of 2008, a 4% increase over the $1.5 billion reported for the first
quarter of 2007. Included in the Company's revenue is a $48.1 million
increase due to movements in foreign exchange; strictly excluding the
effects of these movements in foreign exchange, revenue growth would
have been 1%. See reconciliation of revenue excluding effects of
foreign exchange to revenue at the end of this press release.
Clear Channel's expenses increased 8% to $1.1 billion during the
first quarter of 2008 compared to 2007. Included in the Company's 2008
expenses is a $41.9 million increase due to movements in foreign
exchange. Strictly excluding the effects of movements in foreign
exchange in the 2008 expenses, expense growth would have been 4%. Also
included in the Company's 2008 expenses is approximately $9.6 million
of non-cash compensation expense. This compares to non-cash
compensation expense of $8.2 million in the first quarter of 2007.
Clear Channel's income before discontinued operations increased
70% to $161.4 million, as compared to $95.1 million for the same
period in 2007. The Company's diluted earnings before discontinued
operations per share increased 68% to $0.32, compared to $0.19 for the
same period in 2007. The Company's first quarter 2008 net income
included an approximate $67.2 million nontaxable gain, which includes
the minority interest expense on the gain, or $0.13 per diluted share,
on the divestiture of its 50% interest in Clear Channel Independent, a
South African outdoor advertising company. Excluding this gain, Clear
Channel's first quarter 2008 income before discontinued operations
would have been $94.2 million or $0.19 per diluted share. See
reconciliation of net income and diluted earnings per share at the end
of this press release.
The Company's OIBDAN (defined as Operating Income before
Depreciation & amortization, Non-cash compensation expense and Gain on
disposition of assets - net) was $394.8 million in the first quarter
of 2008, a 6% decrease from the first quarter of 2007. See
reconciliation of OIBDAN to net income at the end of this press
release.
"We continued to execute on our strategic plan during first
quarter in the face of a challenging macro-economic climate,"
commented Mark P. Mays, Chief Executive Officer of Clear Channel
Communications. "While our results were affected by the soft
advertising market, we continued to out-deliver the majority of our
media industry peers. Our Outdoor results benefited from the global
diversification of our footprint, as well as our ongoing efforts to
expand our digital presence. We are solidly on track in rolling
out our digital installation plan, which continues to strengthen our
long-term growth potential. Our radio operations out-performed the
majority of our markets in the quarter and we continued to invest in
our content and online assets in an effort to strengthen our value
proposition to both our listeners and advertisers. We believe our
concerted investment strategy will position our businesses for growth
over the long-term."
Merger Transaction
The Company's shareholders approved the adoption of the merger
agreement, as amended, with a group led by Thomas H. Lee Partners,
L.P. and Bain Capital Partners, LLC ("the Sponsors") on September 25,
2007. The Company anticipated the merger would close by the end of the
first quarter of 2008. However, on March 26, 2008, the Company, joined
by CC Media Holdings, Inc., a unit of the Sponsors, sued the banks who
had committed to financing the debt connected to the merger for
tortious interference. A trial date is currently set for June 2, 2008.
The Company is unable to estimate a closing date and is not certain
that a closing will occur.
Television and Radio Divestitures
Television
On March 14, 2008, the Company completed the sale of its
Television Group to an affiliate of Providence Equity Partners Inc.
for $1.0 billion. The operations of the Television Group up to the
date of sale are reported as discontinued operations in the
consolidated statements of operations.
Radio
Total radio stations announced as being marketed for sale
on November 16, 2006 448
Total radio stations no longer being marketed for sale (173)
----------
Adjusted number of radio stations being marketed for sale
("Non-core" radio stations) 275
Non-core radio stations sold through March 31, 2008 (223)
----------
Remaining non-core radio stations at March 31, 2008
classified as discontinued operations 52
Non-core radio stations under definitive asset purchase
agreements (32)
----------
Non-core radio stations being marketed for sale 20
==========
On November 16, 2006, the Company announced plans to sell 448
non-core radio stations. The sale of these assets is not contingent on
the closing of the merger described above. During the first quarter of
2008, the Company revised its plans to sell 173 of these stations and
intends to hold and operate the stations. A portion of these stations
were previously classified as discontinued operations. The stations no
longer met the requirements of Statement of Financial Accounting
Standards No. 144, Accounting for the Impairment or Disposal of
Long-lived Assets for classification as discontinued operations.
Therefore, the assets, results of operations and cash flows from these
stations were reclassified to continuing operations in the Company's
consolidated financial statements as of and for the period ended March
31, 2008, for the period ended March 31, 2007 and as of December 31,
2007. The Company sold 223 non-core radio stations, had definitive
asset purchase agreements for 32 non-core radio stations and continued
to market 20 non-core radio stations at March 31, 2008. These stations
were classified as assets from discontinued operations in the
Company's consolidated balance sheet and as discontinued operations in
the consolidated financial statements as of and for the period ended
March 31, 2008, for the period ended March 31, 2007 and as of December
31, 2007.
Through May 7, 2008, the Company executed definitive asset
purchase agreements for the sale of 17 radio stations in addition to
the radio stations under definitive asset purchase agreements at March
31, 2008. The closing of these sales is subject to antitrust
clearances, FCC approval and other customary closing conditions.
There can be no assurance that any of the pending divestitures
contemplated in this release will actually be consummated.
Revenue, Direct Operating and SG&A Expenses, and OIBDAN by
Division
(In thousands) Three Months Ended %
March 31, Change
-----------------------
2008 2007
----------- -----------
Revenue
----------------------------------------
Radio Broadcasting $ 769,611 $ 799,201 (4%)
Outdoor Advertising 775,579 690,856 12%
Other 44,453 45,674 (3%)
Eliminations (25,436) (30,654)
----------- -----------
Consolidated revenue $1,564,207 $1,505,077 4%
=========== ===========
The Company's first quarter 2008 revenue increased from foreign
exchange movements of approximately $48.1 million as compared to the
same period of 2007.
Direct Operating and SG&A Expenses by
Division
----------------------------------------- -----------------------
Radio Broadcasting $ 500,778 $ 511,211
Less: Non-cash compensation expense (4,809) (4,464)
----------- -----------
495,969 506,747 (2%)
Outdoor Advertising 615,444 521,738
Less: Non-cash compensation expense (1,930) (1,367)
----------- -----------
613,514 520,371 18%
Other 41,542 41,903
Less: Non-cash compensation expense -- --
----------- -----------
41,542 41,903 (1%)
Eliminations (25,436) (30,654)
Plus: Non-cash compensation expense 6,739 5,831
----------- -----------
Consolidated divisional operating
expenses $1,132,328 $1,044,198 8%
=========== ===========
The Company's first quarter 2008 direct operating and SG&A
expenses increased from foreign exchange movements of approximately
$41.9 million as compared to the same period of 2007.
OIBDAN
---------------------------------------------
Radio Broadcasting $273,642 $292,454 (6%)
Outdoor Advertising 162,065 170,485 (5%)
Other 2,911 3,771 (23%)
Corporate and Merger costs (43,841) (47,422)
--------- ---------
Consolidated OIBDAN $394,777 $419,288 (6%)
========= =========
See reconciliation of OIBDAN to net income at the end of this
press release.
Radio Broadcasting
Radio revenue declined $29.6 million during the first quarter of
2008 as compared to the same period of 2007. Declines in local and
national revenues were partially offset by increases in traffic,
on-line and syndicated radio revenues. Local and national revenues
were down partially as a result of overall weakness in advertising as
well as declines in automotive, retail and services advertising
categories. The Company's yield per available minute declined in the
first quarter of 2008 compared to the first quarter of 2007.
Operating expenses declined $10.4 million primarily related to a
decline of $11.5 million in programming expenses attributable to
outside research and salaries partially offset by increases in
syndicated radio and other infrastructure support expenses. A decline
in advertising expenses and a decline in commission expenses
associated with the revenue decline also contributed to the overall
decline in expenses.
Outdoor Advertising
The Company's outdoor advertising revenue increased 12% to $775.6
million during the first quarter of 2008 when compared to revenues of
$690.9 million for the same period in 2007. Included in the 2008
results is an approximate $48.1 million increase related to foreign
exchange when compared to 2007.
Outdoor advertising expenses increased 18% to $615.4 million when
compared to the same period in 2007. Included in the 2008 results is
an approximate $41.9 million increase related to foreign exchange when
compared to 2007.
-- Americas Outdoor
Revenue increased approximately $16.3 million during the first
quarter of 2008 compared to the first quarter of 2007 primarily from
increases in airport and street furniture revenue as well as digital
display revenue. The increase in street furniture was mainly due to a
new contract in San Francisco. Airport revenue increased due to
contract wins and increased rates and occupancy. The increase in
digital display revenue was primarily attributable to an increase in
digital displays. Partially offsetting the revenue increase was a
slight decline in bulletin and poster revenue. The decline in bulletin
revenue was attributable to decreased occupancy while the decline in
poster revenue was mainly due to a decrease in rates. Leading
advertising categories during the quarter were telecommunications,
retail, automotive, financial services and amusements. Revenue growth
was led by U.S. markets Boston, Los Angeles, Milwaukee, San Francisco,
and Seattle and the Americas' international markets of Canada, Mexico
and Peru.
Americas operating expenses increased $25.5 million primarily from
higher site lease expenses of $18.9 million. Approximately $8.9
million of this increase was associated with new airport and street
furniture contracts and the remainder was primarily associated with
the increase in airport, street furniture and digital revenue.
Commission expenses associated with the increase in revenue also
contributed to the increase in operating expenses.
-- International Outdoor
Revenue increased approximately $68.4 million, with roughly $46.4
million from movements in foreign exchange. The remainder of the
revenue growth was primarily attributable to growth in China, Italy,
Spain, Romania and Australia, partially offset by a revenue decline in
the United Kingdom. The Company experienced weak advertising markets
in both France and the United Kingdom during the quarter. China,
Italy, Spain and Australia all benefited from strong advertising
environments. The Company's international division acquired operations
in Romania at the end of the second quarter of 2007, which contributed
to the revenue growth in 2008. The division also benefited from
political spending for the national elections in Italy. The revenue
growth in Spain was primarily a result of the Barcelona bike contract,
which the Company began operating in 2007.
Operating expenses increased $68.2 million. Included in the
increase is approximately $40.6 million related to movements in
foreign exchange. The remaining increase in expenses was primarily
attributable to an increase in site lease and selling expenses as well
as other operating expenses associated with the increase in revenue.
FAS No. 123 (R): Share-Based Payment ("FAS 123(R)")
The following table details non-cash compensation expense, which
represents employee compensation costs related to stock option grants
and restricted stock awards, for the first quarter of 2008 and 2007:
(In thousands) Three Months Ended
March 31,
------------------
2008 2007
---------- ------
Direct operating expense $3,604 $3,000
SG&A 3,135 2,831
Corporate 2,851 2,414
---------- ------
Total non-cash compensation $9,590 $8,245
========== ======
The Company will not be holding a Conference Call or Webcast
As a result of the Clear Channel Communications, Inc. pending
merger transaction that was approved by Clear Channel Communications,
Inc. shareholders on September 25, 2007, the Company will not be
hosting a teleconference or webcast to discuss results.
Second Quarter and 2008 Outlook
Due to the pending merger transaction and the Company not hosting
a teleconference to discuss financial and operating results, the
Company is providing the following information regarding its
expectations and current information related to 2008 operating
results.
Pacing information presented below reflects revenues booked at a
specific date versus the comparable date in the prior period and may
or may not reflect the actual revenue growth at the end of the period.
The Company's revenue pacing information includes an adjustment to
prior periods to include all acquisitions and exclude all divestitures
in both periods presented for comparative purposes. All pacing metrics
exclude the effects of foreign exchange movements.
As of May 8, 2008, revenues for the consolidated Company are
pacing down 2.7% for the second quarter of 2008 as compared to the
second quarter of 2007, and are pacing down 1.2% for the full year of
2008 as compared to the full year of 2007. As of the first week of
May, the Company has historically experienced revenues booked of
approximately 85% of the actual revenues recorded for the second
quarter and approximately 65% of the actual revenues recorded for the
full year.
As of May 8, 2008, revenues for the Radio division are pacing down
5.3% for the second quarter of 2008 as compared to the second quarter
of 2007, and are pacing down 4.3% for the full year of 2008 as
compared to the full year of 2007. As of the first week of May, the
Radio division has historically experienced revenues booked of
approximately 80% of the actual revenues recorded for the second
quarter and approximately 60% of the actual revenues recorded for the
full year. The Company's Radio division currently forecasts total
operating expense growth to be in a range of down low single-digits to
up low single-digits for the full year 2008 as compared to the full
year 2007.
Also as of May 8, 2008, revenues in the Outdoor division are
pacing up 0.3% with the Americas above and International below the
0.3% pacing for the second quarter 2008 as compared to the second
quarter of 2007. For the full year 2008 versus the full year 2007, the
Outdoor division revenues are pacing up 2.3% with the Americas
slightly below and International slightly above the full-year pacing
of 2.3%. As of the first week of May, the Outdoor division has
historically experienced revenues booked of approximately 85% of the
actual revenues recorded for the second quarter and approximately 65%
of the actual revenues recorded for the full year. Excluding the
effects of movements in foreign exchange, the Company's Outdoor
division currently forecasts total operating expense growth to be in a
range of low single-digit to mid single-digit growth for the full year
2008 as compared to the full year 2007.
For the consolidated company, current management forecasts show
corporate expenses of $180 to $190 million for the full year 2008.
This projection does not include any ongoing management fees that may
be paid to the Sponsors post closing of the merger. Non-cash
compensation expense (i.e. FAS No. 123 (R): share-based payments) are
currently projected to be in the range of $40 million to $50 million
for the full year of 2008. These projections do not consider any
expense associated with the pending merger transaction.
The Company currently forecasts overall capital expenditures for
2008 of $475 to $500 million, excluding any capital expenditures
associated with any new contract wins the Company may have during
2008. Increases over the 2007 level would be primarily due to new
contract wins during 2007 and 2008 and any acceleration of the
roll-out of digital boards.
Income tax expense as a percent of 'Income before income taxes and
minority interest' is currently projected to be approximately 38%.
Current income tax expense as a percent of 'Income before income taxes
and minority interest' is currently expected to be 20% to 25%. This
percentage does not include any tax expense or benefit related to the
pending merger transaction, the recently completed divestitures of the
Company's television stations and certain of its radio stations or
other capital gain transactions, or the effects of any resolution of
governmental examinations.
TABLE 1 - Financial Highlights of Clear Channel Communications, Inc.
and Subsidiaries - Unaudited
----------------------------------------------------------------------
Three Months Ended
(In thousands, except per share data) March 31, %
----------------------
2008 2007 Change
---------- -----------------
Revenue $1,564,207 $1,505,077 4%
Direct operating expenses 705,947 627,879
Selling, general and administrative
expenses 426,381 416,319
Corporate expenses 46,303 48,150
Merger costs 389 1,686
Depreciation and amortization 152,278 139,685
Gain on disposition of assets - net 2,097 6,947
---------- -----------
Operating Income 235,006 278,305 (16%)
Interest expense 100,003 118,077
Gain (loss) on marketable securities 6,526 395
Equity in earnings of nonconsolidated
affiliates 83,045 5,264
Other income (expense) - net 11,787 (12)
---------- -----------
Income before income taxes, minority
interest and discontinued operations 236,361 165,875
Income tax expense:
Current 23,833 32,359
Deferred 42,748 38,107
---------- -----------
Income tax expense 66,581 70,466
Minority interest expense, net of tax 8,389 276
---------- -----------
Income before discontinued operations 161,391 95,133
Income from discontinued operations 638,262 7,089
---------- -----------
Net income $ 799,653 $ 102,222
========== ===========
Diluted earnings per share:
Diluted earnings before discontinued
operations per share $ .32 $ .19 68%
========== ===========
Diluted earnings per share $ 1.61 $ .21 667%
========== ===========
Weighted average shares outstanding -
Diluted 496,388 494,868
Income Taxes
The Company recorded a gain of $75.6 million in equity in earnings
of nonconsolidated affiliates from the sale of its 50% interest in
Clear Channel Independent. The sale was structured as a tax free
disposition thereby resulting in no tax expense. As a result, the
Company's effective tax rate for the first quarter of 2008 was 28.2%.
Discontinued Operations
Included in income from discontinued operations in the first
quarter of 2008 is a gain of $633.2 million, net of tax, related to
the sale of the Company's television business and the sale of certain
radio stations. The Company estimates utilization of approximately
$577.3 million of capital loss carryforwards to offset a portion of
the taxes associated with these gains. As of March 31, 2008, the
Company had approximately $809.2 million in capital loss carryforwards
remaining.
TABLE 2 - Selected Balance Sheet Information - Unaudited
----------------------------------------------------------------------
Selected balance sheet information for 2008 and 2007 was:
(In millions) March 31, December
2008 31, 2007
--------- ---------
Cash $ 602.1 $ 145.1
Total Current Assets $ 2,679.3 $ 2,294.6
Net Property, Plant and Equipment $ 3,074.7 $ 3,050.4
Total Assets $19,053.2 $18,805.5
Current Liabilities (excluding current portion of
long-term debt) $ 1,429.3 $ 1,453.1
Long-Term Debt (including current portion of
long-term debt) $ 5,941.6 $ 6,575.2
Shareholders' Equity $ 9,661.9 $ 8,797.5
TABLE 3 - Capital Expenditures - Unaudited
----------------------------------------------------------------------
Capital expenditures for the first quarter of 2008 and 2007 were:
(In millions) March 31, 2008 March 31, 2007
-------------- --------------
Non-revenue producing $43.4 $35.6
Revenue producing 50.3 29.4
-------------- --------------
Total capital expenditures $93.7 $65.0
============== ==============
The Company defines non-revenue producing capital expenditures as
those expenditures that are required on a recurring basis. Revenue
producing capital expenditures are discretionary capital investments
for new revenue streams, similar to an acquisition.
TABLE 4 - Total Debt - Unaudited
---------------------------------------------------------
At March 31, 2008, Clear Channel had total debt of:
(In millions) March 31, 2008
----------------------
Bank Credit Facilities $ --
Public Notes 5,823.1
Other Debt 118.5
----------------------
Total $5,941.6
======================
Liquidity and Financial Position
For the quarter ended March 31, 2008, cash flow from operating
activities was $367.8 million, cash flow used by investing activities
was $154.3 million, cash flow used by financing activities was $754.4
million, and net cash provided by discontinued operations was $997.9
million for a net increase in cash of $457.0 million.
Leverage, defined as debt(a), net of cash, divided by the trailing
12-month pro forma EBITDA(b), was 2.41x at March 31, 2008.
As of March 31, 2008, 81% of the Company's debt bears interest at
fixed rates while 19% of the Company's debt bears interest at floating
rates based upon LIBOR. The Company's weighted average cost of debt at
March 31, 2008 was 5.8%.
As of May 8, 2008, the Company had approximately $1.7 billion
available on its bank credit facility. The Company may utilize
existing capacity under its bank facility and other available funds
for general working capital purposes including funding capital
expenditures, acquisitions, stock repurchases and the refinancing of
certain public debt securities. Capacity under the facility can also
be used to support commercial paper programs. Redemptions or
repurchases of securities will occur through open market purchases,
privately negotiated transactions, or other means.
(a) As defined by Clear Channel's credit facility, debt is
long-term debt of $5.94 billion plus letters of credit of $184.9
million; guarantees of third party debt of $0; net original issue
discount/premium of $14.4 million; deferred purchase consideration of
$16.4 million included in other long-term liabilities; plus the fair
value of interest rate swaps of $40.4 million; and less purchase
accounting premiums of $2.3 million.
(b) As defined by Clear Channel's credit facility, pro forma
EBITDA is the trailing twelve-month EBITDA adjusted to include EBITDA
of any assets acquired in the trailing twelve-month period.
Supplemental Disclosure Regarding Non-GAAP Financial Information
Operating Income before Depreciation and Amortization (D&A),
Non-cash Compensation Expense and Gain on Disposition of Assets - Net
(OIBDAN)
The following tables set forth Clear Channel's OIBDAN for the
three months ended March 31, 2008 and 2007. The Company defines OIBDAN
as net income adjusted to exclude non-cash compensation expense and
the following line items presented in its Statement of Operations:
Discontinued operations; Minority interest, net of tax; Income tax
benefit (expense); Other income (expense) - net; Equity in earnings of
nonconsolidated affiliates; Gain (loss) on marketable securities;
Interest expense; Gain on disposition of assets - net; and, D&A.
The Company uses OIBDAN, among other things, to evaluate the
Company's operating performance. This measure is among the primary
measures used by management for planning and forecasting of future
periods, as well as for measuring performance for compensation of
executives and other members of management. This measure is an
important indicator of the Company's operational strength and
performance of its business because it provides a link between
profitability and cash flows from operating activities. It is also a
primary measure used by management in evaluating companies as
potential acquisition targets.
The Company believes the presentation of this measure is relevant
and useful for investors because it allows investors to view
performance in a manner similar to the method used by the Company's
management. It helps improve investors' ability to understand the
Company's operating performance and makes it easier to compare the
Company's results with other companies that have different capital
structures, stock option structures or tax rates. In addition, this
measure is also among the primary measures used externally by the
Company's investors, analysts and peers in its industry for purposes
of valuation and comparing the operating performance of the Company to
other companies in its industry. Additionally, the Company's bank
credit facilities use this measure for compliance with leverage
covenants.
Since OIBDAN is not a measure calculated in accordance with GAAP,
it should not be considered in isolation of, or as a substitute for,
net income as an indicator of operating performance and may not be
comparable to similarly titled measures employed by other companies.
OIBDAN is not necessarily a measure of the Company's ability to fund
its cash needs. As it excludes certain financial information compared
with operating income and net income (loss), the most directly
comparable GAAP financial measures, users of this financial
information should consider the types of events and transactions,
which are excluded.
In addition, because a significant portion of the Company's
advertising operations are conducted in foreign markets, principally
France and the United Kingdom, management reviews the operating
results from its foreign operations on a constant dollar basis. A
constant dollar basis (i.e. a foreign currency adjustment is made to
the 2008 actual foreign revenues and expenses at average 2007 foreign
exchange rates) allows for comparison of operations independent of
foreign exchange movements.
As required by the SEC, the Company provides reconciliations below
to the most directly comparable amounts reported under GAAP, including
(i) OIBDAN for each segment to consolidated operating income; (ii)
Revenue excluding foreign exchange effects to revenue; (iii) Expense
excluding foreign exchange effects to expenses; (iv) OIBDAN to net
income; and (v) Net income and diluted earnings per share excluding
certain items discussed earlier.
Non-cash Depreciation
(In thousands) Operating compensation and
income(loss) expense amortization
------------- ------------- -------------
Three Months Ended March
31, 2008
------------------------- ---------------------------
Radio Broadcasting $237,346 $4,809 $ 31,487
Outdoor 55,045 1,930 105,090
Other (8,644) -- 11,555
Gain on disposition of
assets - net 2,097 -- --
Corporate and Merger
costs (50,838) 2,851 4,146
------------- ------------- -------------
Consolidated $235,006 $9,590 $152,278
============= ============= =============
Three Months Ended March
31, 2007
------------------------- ---------------------------
Radio Broadcasting $258,089 $4,464 $ 29,901
Outdoor 73,448 1,367 95,670
Other (6,195) -- 9,966
Gain on disposition of
assets - net 6,947 -- --
Corporate and Merger
costs (53,984) 2,414 4,148
------------- ------------- -------------
Consolidated $278,305 $8,245 $139,685
============= ============= =============
Gain on
(In thousands) disposition
of assets -
net OIBDAN
------------ ---------
Three Months Ended March 31, 2008
--------------------------------------------
Radio Broadcasting $ -- $273,642
Outdoor -- 162,065
Other -- 2,911
Gain on disposition of assets - net (2,097) --
Corporate and Merger costs -- (43,841)
------------ ---------
Consolidated $(2,097) $394,777
============ =========
Three Months Ended March 31, 2007
--------------------------------------------
Radio Broadcasting $ -- $292,454
Outdoor -- 170,485
Other -- 3,771
Gain on disposition of assets - net (6,947) --
Corporate and Merger costs -- (47,422)
------------ ---------
Consolidated $(6,947) $419,288
============ =========
Reconciliation of Revenue excluding Foreign Exchange Effects to
Revenue
(In thousands) Three Months Ended %
March 31, Change
----------------------
2008 2007
----------- ----------
Revenue $1,564,207 $1,505,077 4%
Less: Foreign exchange increase (48,051) --
----------- ----------
Revenue excluding effects of foreign
exchange $1,516,156 $1,505,077 1%
=========== ==========
Outdoor revenue $ 775,579 $ 690,856 12%
Less: Foreign exchange increase (48,051) --
----------- ----------
International revenue excluding effects
of foreign exchange $ 727,528 $ 690,856 5%
=========== ==========
International Outdoor revenue $ 442,217 $ 373,833 18%
Less: Foreign exchange increase (46,362) --
----------- ----------
International Outdoor revenue excluding
effects of foreign exchange $ 395,855 $ 373,833 6%
=========== ==========
Reconciliation of Expense excluding Foreign Exchange Effects to
Expense
(In thousands) Three Months Ended %
March 31, Change
----------------------
2008 2007
---------- ----------
Consolidated expense $1,132,328 $1,044,198 8%
Less: Foreign exchange increase (41,924) --
---------- ----------
Consolidated expense excluding effects of
foreign exchange $1,090,404 $1,044,198 4%
========== ==========
Outdoor expense $615,444 $521,738 18%
Less: Foreign exchange increase (41,924) --
---------- ----------
Outdoor expense excluding effects of
foreign exchange $573,520 $521,738 10%
========== ==========
International Outdoor expense $400,824 $332,581 21%
Less: Foreign exchange increase (40,564) --
---------- ----------
International Outdoor expense excluding
effects of foreign exchange $360,260 $332,581 8%
========== ==========
Reconciliation of OIBDAN to Net income
(In thousands) Three Months Ended %
March 31, Change
------------------
2008 2007
-------- ---------
OIBDAN $394,777 $419,288 (6%)
Non-cash compensation expense 9,590 8,245
Depreciation & amortization 152,278 139,685
Gain on disposition of assets - net 2,097 6,947
-------- ---------
Operating Income 235,006 278,305 (16%)
Interest expense 100,003 118,077
Gain (loss) on marketable securities 6,526 395
Equity in earnings of nonconsolidated
affiliates 83,045 5,264
Other income (expense) - net 11,787 (12)
-------- ---------
Income before income taxes, minority interest
and discontinued operations 236,361 165,875
Income tax expense:
Current 23,833 32,359
Deferred 42,748 38,107
-------- ---------
Income tax expense 66,581 70,466
Minority interest expense, net of tax 8,389 276
-------- ---------
Income before discontinued operations 161,391 95,133
Income from discontinued operations 638,262 7,089
-------- ---------
Net income $799,653 $102,222
======== =========
Reconciliation of Net Income and Diluted Earnings per Share ("EPS")
(In millions, except per share data) Three Months Three Months
Ended Ended
March 31, 2008 March 31, 2007
----------------- ---------------
Net EPS Net EPS
Income Income
-------- ------- ------- ------
Reported Amounts $ 799.7 $ 1.61 $102.2 $ .21
Discontinued operations (638.3) (1.29) (7.1) (.02)
Less: Gain on disposition of asset (75.6) (.15) -- --
Plus: Minority interest expense on
gain 8.4 .02 -- --
-------- ------- ------- ------
Amounts excluding certain items $ 94.2 $ .19 $ 95.1 $ .19
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About Clear Channel Communications
Clear Channel Communications, Inc. (NYSE:CCU), headquartered in
San Antonio, Texas, is a global leader in the out-of-home advertising
industry with radio stations and outdoor displays in various countries
around the world.
For further information contact:
Investors - Randy Palmer, Senior Vice President of Investor
Relations, (210) 832-3315 or Media - Lisa Dollinger, Chief
Communications Officer, (210) 832-3474 or visit our web-site at
http://www.clearchannel.com.
Certain statements in this document constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Clear Channel
Communications to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. The words or phrases "guidance,"
"believe," "expect," "anticipate," "estimates" and "forecast" and
similar words or expressions are intended to identify such
forward-looking statements. In addition, any statements that refer to
expectations or other characterizations of future events or
circumstances are forward-looking statements. The Company cannot
provide any assurance that the proposed merger transaction announced
on November 16, 2006, and amended April 18, 2007 and May 17, 2007 will
be completed, or the terms on which the transaction will be
consummated.
Various risks that could cause future results to differ from those
expressed by the forward-looking statements included in this document
include, but are not limited to: changes in business, political and
economic conditions in the U.S. and in other countries in which Clear
Channel Communications currently does business (both general and
relative to the advertising industry); fluctuations in interest rates;
changes in operating performance; shifts in population and other
demographics; changes in the level of competition for advertising
dollars; fluctuations in operating costs; technological changes and
innovations; changes in labor conditions; changes in governmental
regulations and policies and actions of regulatory bodies;
fluctuations in exchange rates and currency values; changes in tax
rates; and changes in capital expenditure requirements; access to
capital markets and changes in credit ratings. Other unknown or
unpredictable factors also could have material adverse effects on
Clear Channel Communications' future results, performance or
achievements. In light of these risks, uncertainties, assumptions and
factors, the forward-looking events discussed in this document may not
occur. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date stated, or
if no date is stated, as of the date of this document. Other key risks
are described in Clear Channel Communications' reports filed with the
U.S. Securities and Exchange Commission, including in the section
entitled "Item 1A. Risk Factors" of the Company's Annual Report on
Form 10-K for the year ended December 31, 2007. Except as otherwise
stated in this document, Clear Channel Communications does not
undertake any obligation to publicly update or revise any
forward-looking statements because of new information, future events
or otherwise.
Important Additional Information Regarding the Merger and Where to
Find It:
In connection with the pending merger, CC Media Holdings, Inc. and
Clear Channel Communications, Inc. ("Clear Channel") have filed with
the Securities and Exchange Commission (the "SEC") a registration
statement on Form S-4, as amended, that contains a proxy
statement/prospectus and other documents regarding the pending
transaction. Before making any investment decisions, security holders
of Clear Channel are urged to read the proxy statement/prospectus and
all other documents regarding the merger, carefully in their entirety,
because they contain important information about the pending
transaction. Shareholders of Clear Channel may obtain free copies of
the proxy statement/prospectus and other documents filed with, or
furnished to, the SEC at the SEC's website at http://www.sec.gov.
SOURCE: Clear Channel Communications, Inc.
Clear Channel Communications, Inc. Investors: Randy Palmer, 210-832-3315 Senior Vice President of Investor Relations or Media: Lisa Dollinger, 210-832-3474 Chief Communications Officer http://www.clearchannel.com.
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