CC Media Holdings, Inc. (OTCBB:CCMO) today reported financial results
for the second quarter ended June 30, 2014.
“Our growing digital and events businesses continued their strong
momentum during the quarter, further demonstrating the unique value that
Clear Channel delivers to advertisers through our diverse set of media
assets,” Chairman and Chief Executive Officer Bob Pittman said. “At
iHeartRadio, we introduced an even more personalized listener experience
with the release of iHeartRadio 5.0 and grew our registered users by 50%
year over year -- surpassing the milestone of 50 million registered
users in record time. The first-ever iHeartRadio Music Awards, broadcast
live on NBC, was a huge success -- attracting more than 65 million votes
through Twitter and Facebook, with #iHeartAwards trending #1 on Twitter
throughout the night and number one for Nielsen’s Twitter TV ratings for
the entire week. In addition, we showcased the vision and innovation of
our entire company to some of the world’s largest brands and agencies at
the Cannes Lions International Festival of Creativity last month, while
several of our clients -- including British Airways -- earned
prestigious awards.”
“We continued to reinforce our foundation for growth this quarter and
make progress in advancing our strategy to become one of the leading
technology-fueled multi-platform media and entertainment companies in
America. In another significant step, we have named Brian Lakamp our
President of Technology and Digital Ventures,” said Rich Bressler,
President and Chief Financial Officer. “We grew overall revenues despite
some market challenges, and I am especially pleased with our efforts in
International Outdoor and Media+Entertainment. Also, the changes we’ve
made in Americas Outdoor position us well for the second half of the
year. Underscoring our continuing financial flexibility, the quarter’s
$850-million offering of senior notes was well received by the markets.
In addition to our debt refinancing activities, which have created the
right runway for us to keep focusing on growing our Media+Entertainment
and Outdoor businesses, we’ve continued to make good on our commitment
to control costs through operational efficiencies.”
Second Quarter 2014 Results
Consolidated revenues increased $12.1 million in the second quarter of
2014 compared to the same period of 2013. Excluding the effects of
movements in foreign exchange rates, revenues increased $1.6 million or
less than 1%.
-
Media+Entertainment revenues increased slightly. Increases at our
traffic and weather business, as well as higher political and digital
advertising were partially offset by lower revenue in our core
national and local terrestrial radio business.
-
Americas outdoor revenues decreased $16 million, or 5%, (or $15
million excluding foreign exchange impacts) driven mainly by lower
national account revenues, the nonrenewal of certain airport contracts
and lower revenues in our Los Angeles market as a result of our
digital boards that became inactive in April 2013.
-
International outdoor revenues increased $30 million, or 7%, (or $19
million excluding foreign exchange impacts) primarily drive by revenue
growth in western Europe including Italy, due to a new airport
contract in Rome, as well as other countries such as Sweden, France
and the UK. Revenue in emerging markets also increased, including in
Brazil where revenue growth was driven by digital advertising and the
FIFA World Cup, and in China as a result of new contracts.
The Company’s OIBDAN1 was down 4%, or $18 million, to
$487 million for the three months ended June 30, 2014, versus
$505 million for the same period of 2013. Included in the 2014 second
quarter OIBDAN of $487 million were $13 million and $7 million of
operating and corporate expenses, respectively, associated with the
Company’s strategic revenue and efficiency initiatives to attract
additional advertising dollars to its businesses and improve operating
efficiencies. OIBDAN for the three months ended June 30, 2013 included
$8 million and $6 million of such expenses, respectively.
The consolidated net loss attributable to the Company was $187 million
in the second quarter of 2014 compared to a consolidated net income
attributable to the Company of $7 million in the same period of 2013.
The decrease was primarily due to a $131 million gain on marketable
securities related to the sale of an investment in Sirius XM Radio, Inc.
in the second quarter of 2013.
Key Highlights
The Company’s recent key highlights include:
Media+Entertainment
-
Surpassed 50 million registered users faster than any other streaming
music platform and faster than Twitter and Facebook, iHeartRadio grew
registered users by 50% year over year. With an even more personalized
listening experience through iHeartRadio 5.0, iHeart Radio is a
leading brand among digital streaming services and is available over
the Internet and iHeartRadio app on 35 devices – including mobile,
tablets, automotive partners, smart TVs, gaming devices and more.
Total listening hours (“TLH”) were up 3% over the second quarter of
2013, with TLH reaching an all-time high in May. Mobile represented
58% of this quarter’s total listening hours.
-
Launched the inaugural iHeartRadio Music Awards on May 1st,
broadcast live on NBC, which attracted more than 65 million votes
through Twitter and Facebook. The awards were the dominant social
media topic throughout the week, with #iHeartAwards trending #1 on
Twitter throughout the night and number one for Nielsen’s Twitter TV
ratings for the entire week. With the telecast finishing #2 for the
night among adults 18-49 among the Big 4 networks, NBC announced it
will pick up the iHeartRadio Music Awards for 2015.
-
Hosted the third annual iHeartRadio Ultimate Pool Party that was
streamed live on Yahoo! and Clear Channel radio stations, as well as
airing exclusively on The CW Network. Over 8.2 million people watched
and listened to the premiere of the event generated nearly 1.3 billion
social impressions over the three-day weekend.
-
Partnered with Honda to create “Honda Stage,” a massive brand
awareness initiative to reach the youth market that will feature a
major series of live and intimate performances from today’s best
artists at the iHeartRadio Theater in Los Angeles.
-
Launched the groundbreaking iHeartRadio Hispanic Network which lets us
provide our partners with unparalleled access to the Hispanic
community, as well as offer this key demographic exclusive access to
some of Mexico’s top-rated radio stations through our partnership with
the leading radio broadcasting company in Mexico, Grupo Radio Centro.
-
iHeartRadio Network added to Clear Channel’s Network Group under the
leadership of Darren Davis, to take full advantage of Clear Channel’s
power, reach and scale to deliver more compelling content
opportunities to its partners, affiliates, advertisers and consumers,
as well as providing a unique platform to its content partners and
talent.
-
Partnered with AdsWizz, an advertising technology provider for the
digital radio and audio industries, to deliver targeted ads to
listeners based on their preferences and location. These targeted ads
can be delivered to specific digital users during a live radio stream
for our Clear Channel radio stations on iHeartRadio.
-
Extended iHeartRadio’s automotive reach in the connected dashboard by
offering its streaming and live radio service through Subaru’s new
STARLINK infotainment systems.
-
Launched AuDiO (Audience Delivery Optimizer), a first-of-its-kind,
proprietary radio optimization tool that enables local and national
political campaigns to target precisely key voter segments via radio.
Outdoor
-
Installed nearly 400 new digital displays in international markets for
an end of quarter total of more than 4,100 displays and 27 new digital
billboards in the U.S. for an end of quarter total of 1,107 across 39
markets.
-
Partnered with Monster Media, an interactive technology pioneer and
designer of award-winning digital out-of-home advertising solutions,
to launch a nationwide network of interactive charging stations in
major U.S. airports that will service smartphones, tablet computers
and laptops. Starting with Hartsfield-Jackson Atlanta International
Airport, Chicago O’Hare International Airport and Dallas/Fort Worth
International Airport, the interactive charging station network will
help advertisers to reach the busy traveler demographic in a new and
exciting way with touch-enabled LCD screens embedded in the stations.
-
Expanded Outdoor Connect to 29 markets in North America, building on
the successful global launch of Connect in the first quarter. Connect
enables national and regional advertisers to reach mobile consumers at
scale by turning pedestrian accessible inventory into interactive
environments where a consumer can use a smartphone to engage in
various brand experiences from couponing to social media interaction
and games.
-
Won a 10-year contract to provide a comprehensive advertising program
for Billy Bishop Toronto City Airport’s passenger terminal. With
Toronto Pearson, Vancouver International and Canadian Regional
Airports already in its portfolio, Clear Channel is in the unique
position to help brands reach nearly two-thirds of passengers
travelling annually through Canadian airports.
-
Announced a groundbreaking, multi-year deal with BlueFocus
Communications Group to promote prominent Chinese brands to American
consumers via digital out-of-home media in Times Square and in major
U.S. airports, starting with San Francisco International Airport.
-
Showcased the powerful combination of Out-Of-Home and Mobile
advertising at Cannes Lions International Festival of Creativity,
using the world’s largest rooftop digital screen and interactive
digital totems. British Airways’ digital out of home campaign “The
Magic of Flying” – on which Clear Channel UK was a key collaborator –
earned nine awards, including the Direct Lions Grand Prix and a Gold
Lions in the Outdoor category. Another winning campaign – to which
International contributed – was Apotek Hjartat’s “Blowing in the
Wind,” which used motion sensor technology to detect incoming metro
trains in the Stockholm subway and trigger an on-screen creative
showing a model’s rippling hair. Clear Channel Outdoor also displayed
the 2014 Outdoor Lions winners and a giant mobile interactive soccer
game.
-
Simulcasted the 2014 Tony Awards® in Times Square in partnership with
the Times Square Alliance and the City of New York for the sixth
straight year, with Clear Channel Spectacolor as an official media
partner of the awards.
-
Appointed Andrew Morley, former Head of Motorola at Google in the UK
and Ireland, as new CEO of Clear Channel’s UK business. He replaces
Matthew Dearden, who has been promoted to President of Clear Channel
Europe.
|
|
|
|
|
|
|
|
|
|
|
Revenues, Operating Expenses and OIBDAN
by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
Three Months Ended
June 30,
|
|
%
Change
|
|
Six Months Ended
June 30,
|
|
%
Change
|
|
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
Revenue1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CCME
|
|
|
|
$
|
806,337
|
|
$
|
805,611
|
|
0%
|
|
$
|
1,476,684
|
|
$
|
1,462,177
|
|
1%
|
|
Americas Outdoor
|
|
|
|
|
319,147
|
|
|
335,025
|
|
(5%)
|
|
|
587,904
|
|
|
621,486
|
|
(5%)
|
|
International Outdoor
|
|
|
|
|
462,058
|
|
|
431,846
|
|
7%
|
|
|
828,552
|
|
|
795,595
|
|
4%
|
|
Other
|
|
|
|
|
59,062
|
|
|
61,099
|
|
(3%)
|
|
|
110,524
|
|
|
110,318
|
|
0%
|
|
Eliminations
|
|
|
|
|
(16,450)
|
|
|
(15,484)
|
|
|
|
|
(30,962)
|
|
|
(28,421)
|
|
|
|
Consolidated revenue
|
|
|
|
$
|
1,630,154
|
|
$
|
1,618,097
|
|
1%
|
|
$
|
2,972,702
|
|
$
|
2,961,155
|
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses1,2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CCME
|
|
|
|
$
|
484,603
|
|
$
|
482,500
|
|
0%
|
|
$
|
954,512
|
|
$
|
925,910
|
|
3%
|
|
Americas Outdoor
|
|
|
|
|
192,154
|
|
|
196,934
|
|
(2%)
|
|
|
376,554
|
|
|
388,197
|
|
(3%)
|
|
International Outdoor
|
|
|
|
|
361,261
|
|
|
335,644
|
|
8%
|
|
|
691,324
|
|
|
670,133
|
|
3%
|
|
Other
|
|
|
|
|
42,231
|
|
|
42,104
|
|
0%
|
|
|
84,694
|
|
|
84,059
|
|
1%
|
|
Eliminations
|
|
|
|
|
(16,450)
|
|
|
(15,484)
|
|
|
|
|
(30,962)
|
|
|
(28,421)
|
|
|
|
Consolidated operating expenses
|
|
|
|
$
|
1,063,799
|
|
$
|
1,041,698
|
|
2%
|
|
$
|
2,076,122
|
|
$
|
2,039,878
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OIBDAN1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CCME
|
|
|
|
$
|
321,734
|
|
$
|
323,111
|
|
(0%)
|
|
$
|
522,172
|
|
$
|
536,267
|
|
(3%)
|
|
Americas Outdoor
|
|
|
|
|
126,993
|
|
|
138,091
|
|
(8%)
|
|
|
211,350
|
|
|
233,289
|
|
(9%)
|
|
International Outdoor
|
|
|
|
|
100,797
|
|
|
96,202
|
|
5%
|
|
|
137,228
|
|
|
125,462
|
|
9%
|
|
Other
|
|
|
|
|
16,831
|
|
|
18,995
|
|
(11%)
|
|
|
25,830
|
|
|
26,259
|
|
(2%)
|
|
Corporate1,3
|
|
|
|
|
(79,414)
|
|
|
(71,735)
|
|
|
|
|
(149,084)
|
|
|
(149,981)
|
|
|
|
Consolidated OIBDAN
|
|
|
|
$
|
486,941
|
|
$
|
504,664
|
|
(4%)
|
|
$
|
747,496
|
|
$
|
771,296
|
|
(3%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain prior period amounts have been reclassified to conform to the
2014 presentation of financials throughout the press release.
|
1
|
|
See the end of this press release for reconciliations of (i) OIBDAN
for each segment to consolidated operating income (loss); (ii)
revenues excluding effects of foreign exchange to revenues; (iii)
direct operating and SG&A expenses excluding effects of foreign
exchange to expenses; (iv) OIBDAN excluding effects of foreign
exchange to OIBDAN; (v) revenues excluding effects of political
revenues to revenues; (vi) corporate expenses excluding non-cash
compensation expenses to corporate expenses; and (vii) OIBDAN to net
income (loss). See also the definition of OIBDAN under the
Supplemental Disclosure section in this release.
|
|
|
|
2
|
|
The Company’s operating expenses include direct operating expenses
and SG&A expenses.
|
|
|
|
3
|
|
Includes Corporate for Clear Channel Outdoor Holdings, Inc. of $33
million and $36 million for the three months ended June 30, 2014 and
2013, respectively, and $64 million and $62 million for the six
months ended June 30, 2014 and 2013, respectively.
|
Media±Entertainment
Media+Entertainment revenues increased slightly compared to the same
period of 2013. Revenue increased in our traffic and weather business as
a result of new weather product offerings and the impact of strategic
sales initiatives, as well as higher political advertising. We continued
to experience increases in digital advertising revenue as a result of
continued increased listenership on our iHeartRadio platform, with total
listening hours increasing 3.2% and higher revenue from events.
Partially offsetting these increases were decreases in our core national
and local terrestrial radio revenues and our national syndication
revenues.
Operating expenses increased $2 million during the second quarter of
2014 versus the same period in 2013, primarily due to higher sports
programming costs, increased rent expense and higher spending on
strategic efficiency initiatives.
OIBDAN decreased $1 million to $322 million in the second quarter of
2014.
Americas Outdoor Advertising
Americas outdoor revenues decreased $16 million, or 5%, (or $15 million
excluding foreign exchange impacts) compared to the same period of 2013,
primarily driven by lower national account revenues, the nonrenewal of
certain airport contracts and lower revenues in our Los Angeles market
as a result of our digital boards that became inactive in April 2013.
Lower spending by national accounts negatively impacted rates for our
billboards and posters.
Operating expenses decreased $5 million (or $4 million excluding foreign
exchange impacts) during the second quarter of 2014 versus the same
period in 2013. Driving this decline were lower variable site lease and
commission expenses resulting from lower revenues. Site lease expenses
were lower due to the nonrenewal of certain airport contracts. Legal
expense related to the Los Angeles litigation was also lower.
OIBDAN declined $11 million, or 8%, to $127 million in the second
quarter of 2014.
International Outdoor Advertising
International outdoor revenues increased $30 million, or 7%, (or $19
million excluding foreign exchange impacts) compared to the same period
of 2013, primarily driven by revenue growth in western Europe including
Italy, due to a new airport contract in Rome, as well as other countries
such as Sweden, France and the UK. Revenue in emerging markets also
increased, including in Brazil where revenue growth was driven by
digital advertising and the FIFA World Cup, and in China as a result of
new contracts.
Operating expenses increased $26 million (or $16 million excluding
foreign exchange impacts) during the second quarter of 2014 versus the
same period in 2013 primarily driven by costs related to new contracts
including the Rome airport contract, higher compensation related to
higher revenues, as well as higher legal expenses.
OIBDAN was up $5 million, or 5%, to $101 million in the second quarter
of 2014.
Conference Call
CC Media Holdings, Inc. along with its wholly owned subsidiary, Clear
Channel Communications, Inc., and its publicly traded subsidiary, Clear
Channel Outdoor Holdings, Inc., will host a conference call to discuss
results on July 23, 2014 at 8:30 a.m. Eastern Time. The conference call
number is (800) 260-0712 (U.S. callers) and (612) 288-0318
(International callers) and the passcode for both is 332123. A live
audio webcast of the conference call will also be available on the
investor section of www.clearchannel.com
and www.clearchanneloutdoor.com.
After the live conference call, a replay will be available for 30 days.
The replay numbers are 800-475-6701 (U.S. callers) and 320-365-3844
(International callers) and the passcode for both is 332123. An archive
of the webcast will be available beginning 24 hours after the call for
30 days.
|
|
|
|
|
|
|
|
|
TABLE 1 - Financial Highlights of CC
Media Holdings, Inc. and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
Revenue
|
|
|
|
$
|
1,630,154
|
|
|
$
|
1,618,097
|
|
|
$
|
2,972,702
|
|
|
$
|
2,961,155
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating expenses
|
|
|
|
|
643,222
|
|
|
|
630,357
|
|
|
|
1,239,717
|
|
|
|
1,225,174
|
|
|
Selling, general and administrative expenses
|
|
|
|
|
420,577
|
|
|
|
411,341
|
|
|
|
836,405
|
|
|
|
814,704
|
|
|
Corporate expenses
|
|
|
|
|
82,196
|
|
|
|
77,557
|
|
|
|
154,902
|
|
|
|
161,320
|
|
|
Depreciation and amortization
|
|
|
|
|
174,062
|
|
|
|
179,734
|
|
|
|
348,933
|
|
|
|
361,916
|
|
|
Impairment charges
|
|
|
|
|
4,902
|
|
|
|
-
|
|
|
|
4,902
|
|
|
|
-
|
|
|
Other operating (expense) income, net
|
|
|
|
|
(1,628
|
)
|
|
|
1,113
|
|
|
|
(1,463
|
)
|
|
|
3,508
|
|
|
Operating income
|
|
|
|
|
303,567
|
|
|
|
320,221
|
|
|
|
386,380
|
|
|
|
401,549
|
|
|
Interest expense
|
|
|
|
|
440,605
|
|
|
|
407,508
|
|
|
|
871,719
|
|
|
|
793,033
|
|
|
Loss on sale of marketable securities
|
|
|
|
|
-
|
|
|
|
130,898
|
|
|
|
-
|
|
|
|
130,898
|
|
|
Equity in earnings (loss) of nonconsolidated affiliates
|
|
|
|
|
(16
|
)
|
|
|
5,971
|
|
|
|
(13,343
|
)
|
|
|
9,612
|
|
|
Loss on extinguishment of debt
|
|
|
|
|
(47,503
|
)
|
|
|
-
|
|
|
|
(51,419
|
)
|
|
|
(3,888
|
)
|
|
Other income (expense), net
|
|
|
|
|
12,157
|
|
|
|
(18,098
|
)
|
|
|
13,698
|
|
|
|
(19,098
|
)
|
|
(Loss) income before income taxes
|
|
|
|
|
(172,400
|
)
|
|
|
31,484
|
|
|
|
(536,403
|
)
|
|
|
(273,960
|
)
|
|
Income tax benefit (expense)
|
|
|
|
|
621
|
|
|
|
(11,477
|
)
|
|
|
(67,766
|
)
|
|
|
84,848
|
|
|
Consolidated net (loss) income
|
|
|
|
|
(171,779
|
)
|
|
|
20,007
|
|
|
|
(604,169
|
)
|
|
|
(189,112
|
)
|
|
Less: Amount attributable to noncontrolling interest
|
|
|
|
|
14,852
|
|
|
|
12,805
|
|
|
|
6,651
|
|
|
|
6,689
|
|
|
Net (loss) income attributable to the Company
|
|
|
|
$
|
(186,631
|
)
|
|
$
|
7,202
|
|
|
$
|
(610,820
|
)
|
|
$
|
(195,801
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, 2014, foreign exchange rate
movements increased the Company’s revenues by $11 million and increased
direct operating and SG&A expenses by $9 million. For the six months
ended June 30, 2014, foreign exchange rate movements increased the
Company’s revenues by $11 million and direct operating and SG&A expenses
by $9 million.
|
|
|
|
|
|
|
|
|
|
|
TABLE 2 - Selected Balance Sheet
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected balance sheet information for June 30, 2014 and December
31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
Cash
|
|
|
|
$
|
798.4
|
|
|
$
|
708.2
|
|
|
Total Current Assets
|
|
|
|
|
2,612.0
|
|
|
|
2,513.3
|
|
|
Net Property, Plant and Equipment
|
|
|
|
|
2,814.3
|
|
|
|
2,897.6
|
|
|
Total Assets
|
|
|
|
|
14,752.2
|
|
|
|
15,097.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities (excluding current portion of long-term debt)
|
|
|
|
|
1,364.4
|
|
|
|
1,309.9
|
|
|
Long-Term Debt (including current portion of long-term debt)
|
|
|
|
|
20,672.1
|
|
|
|
20,484.2
|
|
|
Shareholder's Deficit
|
|
|
|
|
(9,315.2
|
)
|
|
|
(8,696.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 3 - Total Debt
|
|
|
|
|
|
|
|
|
|
|
|
At June 30, 2014 and December 31, 2013, CC Media Holdings had total
debt of:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
Senior Secured Credit Facilities
|
|
|
|
$
|
8,222.3
|
|
|
$
|
8,225.8
|
|
|
Receivables Based Facility
|
|
|
|
|
-
|
|
|
|
247.0
|
|
|
Priority Guarantee Notes
|
|
|
|
|
4,324.8
|
|
|
|
4,324.8
|
|
|
Other Secured Subsidiary Debt
|
|
|
|
|
19.6
|
|
|
|
21.1
|
|
|
Total Secured Debt
|
|
|
|
|
12,566.7
|
|
|
|
12,818.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Cash Pay Notes due 2016
|
|
|
|
|
94.3
|
|
|
|
94.3
|
|
|
Senior Toggle Notes due 2016
|
|
|
|
|
127.9
|
|
|
|
127.9
|
|
|
Senior Notes due 2021
|
|
|
|
|
1,645.3
|
|
|
|
1,404.2
|
|
|
Clear Channel Senior Notes
|
|
|
|
|
725.0
|
|
|
|
1,436.5
|
|
|
Senior Notes due 2018
|
|
|
|
|
850.0
|
|
|
|
-
|
|
|
Subsidiary Senior Notes due 2022
|
|
|
|
|
2,725.0
|
|
|
|
2,725.0
|
|
|
Subsidiary Senior Subordinated Notes due 2020
|
|
|
|
|
2,200.0
|
|
|
|
2,200.0
|
|
|
Other Clear Channel Subsidiary Debt
|
|
|
|
|
0.5
|
|
|
|
-
|
|
|
Purchase accounting adjustments and original issue discount
|
|
|
|
|
(262.6
|
)
|
|
|
(322.4
|
)
|
|
Total long term debt (including current portion of long-term debt)
|
|
|
|
$
|
20,672.1
|
|
|
$
|
20,484.2
|
|
|
|
|
|
|
|
|
|
|
|
The current portion of long-term debt was $22 million and $454 million
as of June 30, 2014 and December 31, 2013, respectively.
Liquidity and Financial Position
For the six months ended June 30, 2014, cash flow used for operating
activities was $46 million, cash flow provided by investing activities
totaled $82 million, cash flow provided by financing activities was
$56 million, and the effect of exchange rate changes on cash was less
than $1 million. The net increase in cash was $90 million.
Capital expenditures for the six months ended June 30, 2014 were
approximately $141 million compared to $133 million for the same period
in 2013.
During the second quarter of 2014, we entered into the following debt
transactions:
CCU Escrow Corporation
-
Issued $850 million aggregate principal amount of 10% Senior Notes due
2018
Clear Channel Communications, Inc.
-
Retired $130 million aggregate principal amount of its 5.5% Senior
Notes due 2014 held by CC Finco
-
Redeemed $567 million aggregate principal amount of its 5.5% Senior
Notes due 2014 and $241 million aggregate principal amount of its 4.9%
Senior Notes due 2015
This week, we announced the following transactions:
-
Clear Channel Communications, Inc. intends to issue and sell
approximately $222.2 million in aggregate principal amount of new
Senior Notes due 2021 to a wholly-owned subsidiary in a transaction
exempt from registration under the Securities Act of 1933, as amended.
The new Senior Notes due 2021 will be issued as additional notes under
the indenture governing Clear Channel’s existing Senior Notes due
2021. On July 21, 2014, Clear Channel issued a notice of redemption to
redeem all of the outstanding $94.3 million aggregate principal amount
of Senior Cash Pay Notes due 2016 and $127.9 million aggregate
principal amount of Senior Toggle Notes due 2016 using proceeds of the
issuance of the new Senior Notes due 2021. The closing of the issuance
of the new Senior Notes due 2021 and redemption of the outstanding
Senior Cash Pay Notes due 2016 and Senior Toggle Notes due 2016 are
expected to occur on August 22, 2014.
-
On July 21, 2014, in accordance with the terms of its charter, a
committee of the board of Clear Channel Outdoor Holdings, Inc.
(“CCOH”) (1) provided notice of its intent to demand $175 million
outstanding under the revolving promissory note with Clear Channel
Communications, Inc. on August 11, 2014 and (2) declared a special
cash dividend in aggregate amount equal to $175 million, the payment
of which is conditioned upon the satisfaction by Clear Channel of such
demand, payable on August 11, 2014 to CCOH’s stockholders of record as
of August 4, 2014. As the indirect parent of CCOH, Clear Channel will
be entitled to approximately 88% of the proceeds from such dividend
through its wholly-owned subsidiaries. The remaining approximately 12%
of the proceeds from the dividend, or approximately $21 million, will
be paid to the public stockholders of CCOH. Clear Channel will fund
the net payment of this $21 million with cash on hand, which will
reduce the amount of cash Clear Channel has available to fund its
working capital needs, debt service obligations and other obligations.
Following satisfaction of the demand, the balance outstanding under
the note will be reduced by $175 million.
The senior secured credit facilities require Clear Channel to comply on
a quarterly basis with a financial covenant limiting the ratio of
consolidated secured debt, net of cash and cash equivalents, to
consolidated EBITDA (as defined by Clear Channel’s senior secured credit
facilities) for the preceding four quarters. Clear Channel’s secured
debt consists of the senior secured credit facilities, the
receivables-based credit facility, the priority guarantee notes and
certain other secured subsidiary debt. As required by the definition of
consolidated EBITDA in Clear Channel’s senior secured credit facilities,
Clear Channel’s consolidated EBITDA for the preceding four quarters of
$1.9 billion is calculated as operating income (loss) before
depreciation, amortization, impairment charges and other operating
income, net plus share-based compensation and is further adjusted for
the following items: (i) costs incurred in connection with the closure
and/or consolidation of facilities, retention charges, consulting fees
and other permitted activities; (ii) extraordinary, non-recurring or
unusual gains or losses or expenses and severance; (iii) non-cash
charges; (iv) cash received from nonconsolidated affiliates; and
(v) various other items.
The following table reflects a reconciliation of consolidated EBITDA (as
defined by Clear Channel’s senior secured credit facilities) to
operating income and net cash provided by operating activities for the
four quarters ended June 30, 2014:
|
|
|
|
|
|
|
(In millions) Note numbers may not sum due to rounding
|
|
|
|
Four Quarters Ended
June 30, 2014
|
|
Consolidated EBITDA (as defined by Clear Channel's senior secured
credit facilities)
|
|
|
|
$
|
1,904.7
|
|
|
Less adjustments to consolidated EBITDA (as defined by Clear
Channel's senior secured credit facilities):
|
|
|
|
|
|
|
Cost incurred in connection with closure and/or consolidation of
facilities, retention charges, consulting fees,
and other permitted activities
|
|
|
|
|
(90.7
|
)
|
|
Extraordinary, non-recurring or unusual gains or losses or expenses
and severance (as referenced in the
definition of consolidated EBITDA in Clear Channel's senior
secured credit facilities)
|
|
|
|
|
(27.7
|
)
|
|
Non-cash charges
|
|
|
|
|
(40.7
|
)
|
|
Cash received from nonconsolidated affiliates
|
|
|
|
|
(9.5
|
)
|
|
Other items
|
|
|
|
|
(17.7
|
)
|
|
Less: Depreciation and amortization, Impairment charges, Other
operating income (expense), net, and Share-
based compensation expense
|
|
|
|
|
(732.9
|
)
|
|
Operating income
|
|
|
|
|
985.5
|
|
|
Plus: Depreciation and amortization, Impairment charges, Other
operating income (expense), net, and Share-
based compensation expense
|
|
|
|
|
732.9
|
|
|
Less: Interest expense
|
|
|
|
|
(1,728.1
|
)
|
|
Less: Current income tax benefit
|
|
|
|
|
(33.1
|
)
|
|
Less: Other income (expense), net
|
|
|
|
|
10.8
|
|
|
Adjustments to reconcile consolidated net loss to net cash provided
by operating activities (including Provision
for doubtful accounts, Amortization of deferred financing charges
and note discounts, net and Other
reconciling items, net)
|
|
|
|
|
131.6
|
|
|
Change in assets and liabilities, net of assets acquired and
liabilities assumed
|
|
|
|
|
159.9
|
|
|
Net cash provided by operating activities
|
|
|
|
$
|
259.5
|
|
|
|
|
|
|
|
|
The maximum ratio under this financial covenant is currently set at
9.00:1 and reduces to 8.75:1 for the four quarters ended December 31,
2014. At June 30, 2014, the ratio was 6.4:1.
Supplemental Disclosure Regarding Non-GAAP
Financial Information
The following tables set forth the Company’s OIBDAN for the three and
six months ended June 30, 2014 and 2013. The Company defines OIBDAN as
consolidated net income (loss) adjusted to exclude non-cash compensation
expenses and the following line items presented in its Statement of
Operations: Income tax benefit; Other income (expense), net; Equity in
earnings (loss) of nonconsolidated affiliates; Loss on extinguishment of
debt; Interest expense; Other operating income, net; D&A and Impairment
charges.
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 the planning and forecasting of future periods, as
well as for measuring performance for compensation of executives and
other members of management. We believe 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 net
income. 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. The
Company believes 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, the
Company believes 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.
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 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 the Euro area,
the U.K. and China, management reviews the operating results from its
foreign operations on a constant dollar basis. A constant dollar basis
(in which a foreign currency adjustment is made to show the 2014 actual
foreign revenues, expenses and OIBDAN at average 2013 foreign exchange
rates) allows for comparison of operations independent of foreign
exchange rate 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 (loss);
(ii) Revenues excluding the effects of foreign exchange to revenues;
(iii) Expenses excluding the effects of foreign exchange to expenses;
(iv) OIBDAN excluding the effects of foreign exchange to OIBDAN;
(v) Revenues excluding effects of political revenue to revenues;
(vi) Corporate expenses excluding non-cash compensation expenses to
Corporate expenses; and (vii) OIBDAN to net loss.
|
|
|
Reconciliation of OIBDAN for each segment to Consolidated
Operating Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
Operating
income (loss)
|
|
Non-cash
compensation
expenses
|
|
Depreciation
and
amortization
|
|
Other operating
income
(expense), net
|
|
Impairment
charges
|
|
OIBDAN
|
|
Three Months Ended June 30, 2014
|
|
CCME
|
|
|
|
$
|
260,255
|
|
|
$
|
-
|
|
$
|
61,479
|
|
$
|
-
|
|
|
$
|
-
|
|
$
|
321,734
|
|
|
Americas Outdoor
|
|
|
|
|
79,470
|
|
|
|
-
|
|
|
47,523
|
|
|
-
|
|
|
|
-
|
|
|
126,993
|
|
|
International Outdoor
|
|
|
|
|
50,583
|
|
|
|
-
|
|
|
50,214
|
|
|
-
|
|
|
|
-
|
|
|
100,797
|
|
|
Other
|
|
|
|
|
8,177
|
|
|
|
-
|
|
|
8,654
|
|
|
-
|
|
|
|
-
|
|
|
16,831
|
|
|
Impairment charges
|
|
|
|
|
(4,902
|
)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
4,902
|
|
|
-
|
|
|
Corporate
|
|
|
|
|
(88,388
|
)
|
|
|
2,782
|
|
|
6,192
|
|
|
-
|
|
|
|
-
|
|
|
(79,414
|
)
|
|
Other operating income (expense), net
|
|
|
|
|
(1,628
|
)
|
|
|
-
|
|
|
-
|
|
|
1,628
|
|
|
|
-
|
|
|
-
|
|
|
Consolidated
|
|
|
|
$
|
303,567
|
|
|
$
|
2,782
|
|
$
|
174,062
|
|
$
|
1,628
|
|
|
$
|
4,902
|
|
$
|
486,941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2013
|
|
CCME
|
|
|
|
$
|
255,073
|
|
|
$
|
-
|
|
$
|
68,038
|
|
$
|
-
|
|
|
$
|
-
|
|
$
|
323,111
|
|
|
Americas Outdoor
|
|
|
|
|
91,050
|
|
|
|
-
|
|
|
47,041
|
|
|
-
|
|
|
|
-
|
|
|
138,091
|
|
|
International Outdoor
|
|
|
|
|
46,272
|
|
|
|
-
|
|
|
49,930
|
|
|
-
|
|
|
|
-
|
|
|
96,202
|
|
|
Other
|
|
|
|
|
9,105
|
|
|
|
-
|
|
|
9,890
|
|
|
-
|
|
|
|
-
|
|
|
18,995
|
|
|
Impairment charges
|
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
Corporate
|
|
|
|
|
(82,392
|
)
|
|
|
5,822
|
|
|
4,835
|
|
|
-
|
|
|
|
-
|
|
|
(71,735
|
)
|
|
Other operating income (expense), net
|
|
|
|
|
1,113
|
|
|
|
-
|
|
|
-
|
|
|
(1,113
|
)
|
|
|
-
|
|
|
-
|
|
|
Consolidated
|
|
|
|
$
|
320,221
|
|
|
$
|
5,822
|
|
$
|
179,734
|
|
$
|
(1,113
|
)
|
|
$
|
-
|
|
$
|
504,664
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2014
|
|
CCME
|
|
|
|
$
|
398,122
|
|
|
$
|
-
|
|
$
|
124,050
|
|
$
|
-
|
|
|
$
|
-
|
|
$
|
522,172
|
|
|
Americas Outdoor
|
|
|
|
|
116,229
|
|
|
|
-
|
|
|
95,121
|
|
|
-
|
|
|
|
-
|
|
|
211,350
|
|
|
International Outdoor
|
|
|
|
|
36,570
|
|
|
|
-
|
|
|
100,658
|
|
|
-
|
|
|
|
-
|
|
|
137,228
|
|
|
Other
|
|
|
|
|
8,456
|
|
|
|
-
|
|
|
17,374
|
|
|
-
|
|
|
|
-
|
|
|
25,830
|
|
|
Impairment charges
|
|
|
|
|
(4,902
|
)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
4,902
|
|
|
-
|
|
|
Corporate
|
|
|
|
|
(166,632
|
)
|
|
|
5,818
|
|
|
11,730
|
|
|
-
|
|
|
|
-
|
|
|
(149,084
|
)
|
|
Other operating income (expense), net
|
|
|
|
|
(1,463
|
)
|
|
|
-
|
|
|
-
|
|
|
1,463
|
|
|
|
-
|
|
|
-
|
|
|
Consolidated
|
|
|
|
$
|
386,380
|
|
|
$
|
5,818
|
|
$
|
348,933
|
|
$
|
1,463
|
|
|
$
|
4,902
|
|
$
|
747,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2013
|
|
CCME
|
|
|
|
$
|
400,397
|
|
|
$
|
-
|
|
$
|
135,870
|
|
$
|
-
|
|
|
$
|
-
|
|
$
|
536,267
|
|
|
Americas Outdoor
|
|
|
|
|
137,563
|
|
|
|
-
|
|
|
95,726
|
|
|
-
|
|
|
|
-
|
|
|
233,289
|
|
|
International Outdoor
|
|
|
|
|
24,539
|
|
|
|
-
|
|
|
100,923
|
|
|
-
|
|
|
|
-
|
|
|
125,462
|
|
|
Other
|
|
|
|
|
6,387
|
|
|
|
-
|
|
|
19,872
|
|
|
-
|
|
|
|
-
|
|
|
26,259
|
|
|
Impairment charges
|
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
Corporate
|
|
|
|
|
(170,845
|
)
|
|
|
11,339
|
|
|
9,525
|
|
|
-
|
|
|
|
-
|
|
|
(149,981
|
)
|
|
Other operating income (expense), net
|
|
|
|
|
3,508
|
|
|
|
-
|
|
|
-
|
|
|
(3,508
|
)
|
|
|
-
|
|
|
-
|
|
|
Consolidated
|
|
|
|
$
|
401,549
|
|
|
$
|
11,339
|
|
$
|
361,916
|
|
$
|
(3,508
|
)
|
|
$
|
-
|
|
$
|
771,296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Revenues excluding Effects of Foreign Exchange
Rates to Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
Three Months Ended
June 30,
|
|
%
Change
|
|
Six Months Ended
June 30,
|
|
%
Change
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
Consolidated revenue
|
|
|
|
$
|
1,630,154
|
|
|
$
|
1,618,097
|
|
1%
|
|
$
|
2,972,702
|
|
|
$
|
2,961,155
|
|
0%
|
|
Excluding: Foreign exchange (increase) decrease
|
|
|
|
|
(10,512
|
)
|
|
|
-
|
|
|
|
|
(10,962
|
)
|
|
|
-
|
|
|
|
Revenue excluding effects of foreign exchange
|
|
|
|
$
|
1,619,642
|
|
|
$
|
1,618,097
|
|
0%
|
|
$
|
2,961,740
|
|
|
$
|
2,961,155
|
|
0%
|
|
Americas Outdoor revenue
|
|
|
|
$
|
319,147
|
|
|
$
|
335,025
|
|
(5%)
|
|
$
|
587,904
|
|
|
$
|
621,486
|
|
(5%)
|
|
Excluding: Foreign exchange (increase) decrease
|
|
|
|
|
837
|
|
|
|
-
|
|
|
|
|
1,781
|
|
|
|
-
|
|
|
|
Americas Outdoor revenue excluding effects of foreign exchange
|
|
|
|
$
|
319,984
|
|
|
$
|
335,025
|
|
(4%)
|
|
$
|
589,685
|
|
|
$
|
621,486
|
|
(5%)
|
|
International Outdoor revenue
|
|
|
|
$
|
462,058
|
|
|
$
|
431,846
|
|
7%
|
|
$
|
828,552
|
|
|
$
|
795,595
|
|
4%
|
|
Excluding: Foreign exchange (increase) decrease
|
|
|
|
|
(11,349
|
)
|
|
|
-
|
|
|
|
|
(12,743
|
)
|
|
|
-
|
|
|
|
International Outdoor revenue excluding effects of foreign exchange
|
|
|
|
$
|
450,709
|
|
|
$
|
431,846
|
|
4%
|
|
$
|
815,809
|
|
|
$
|
795,595
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Expenses (Direct Operating and SG&A Expenses)
excluding
Effects of Foreign Exchange Rates to
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
Three Months Ended
June 30,
|
|
%
Change
|
|
Six Months Ended
June 30,
|
|
%
Change
|
|
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
Consolidated expense
|
|
|
|
$
|
1,063,799
|
|
$
|
1,041,698
|
|
2%
|
|
$
|
2,076,122
|
|
$
|
2,039,878
|
|
2%
|
|
Excluding: Foreign exchange (increase) decrease
|
|
|
|
|
(8,801)
|
|
|
-
|
|
|
|
|
(8,614)
|
|
|
-
|
|
|
|
Consolidated expense excluding effects of foreign exchange
|
|
|
|
$
|
1,054,998
|
|
$
|
1,041,698
|
|
1%
|
|
$
|
2,067,508
|
|
$
|
2,039,878
|
|
1%
|
|
Americas Outdoor expense
|
|
|
|
$
|
192,154
|
|
$
|
196,934
|
|
(2%)
|
|
$
|
376,554
|
|
$
|
388,197
|
|
(3%)
|
|
Excluding: Foreign exchange (increase) decrease
|
|
|
|
|
740
|
|
|
-
|
|
|
|
|
1,584
|
|
|
-
|
|
|
|
Americas Outdoor expense excluding effects of foreign exchange
|
|
|
|
$
|
192,894
|
|
$
|
196,934
|
|
(2%)
|
|
$
|
378,138
|
|
$
|
388,197
|
|
(3%)
|
|
International Outdoor expense
|
|
|
|
$
|
361,261
|
|
$
|
335,644
|
|
8%
|
|
$
|
609,486
|
|
$
|
670,133
|
|
(9%)
|
|
Excluding: Foreign exchange (increase) decrease
|
|
|
|
|
(9,541)
|
|
|
-
|
|
|
|
|
(10,198)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Outdoor expense excluding effects of foreign exchange
|
|
|
|
$
|
351,720
|
|
$
|
335,644
|
|
5%
|
|
$
|
599,288
|
|
$
|
670,133
|
|
(11%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of OIBDAN excluding Effects of Foreign Exchange
Rates to OIBDAN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
Three Months Ended
June 30,
|
|
%
Change
|
|
Six Months Ended
June 30,
|
|
%
Change
|
|
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
Consolidated OIBDAN
|
|
|
|
$
|
486,941
|
|
$
|
504,664
|
|
(4%)
|
|
$
|
747,496
|
|
$
|
771,296
|
|
(3%)
|
|
Excluding: Foreign exchange (increase) decrease
|
|
|
|
|
(1,711)
|
|
|
-
|
|
|
|
|
(2,348)
|
|
|
-
|
|
|
|
OIBDAN excluding effects of foreign exchange
|
|
|
|
$
|
485,230
|
|
$
|
504,664
|
|
(4%)
|
|
$
|
745,148
|
|
$
|
771,296
|
|
(3%)
|
|
Americas Outdoor OIBDAN
|
|
|
|
$
|
126,993
|
|
$
|
138,091
|
|
(8%)
|
|
$
|
211,350
|
|
$
|
233,289
|
|
(9%)
|
|
Excluding: Foreign exchange (increase) decrease
|
|
|
|
|
97
|
|
|
-
|
|
|
|
|
197
|
|
|
-
|
|
|
|
Americas Outdoor OIBDAN excluding effects of foreign exchange
|
|
|
|
$
|
127,090
|
|
$
|
138,091
|
|
(8%)
|
|
$
|
211,547
|
|
$
|
233,289
|
|
(9%)
|
|
International Outdoor OIBDAN
|
|
|
|
$
|
100,797
|
|
$
|
96,202
|
|
5%
|
|
$
|
137,228
|
|
$
|
125,462
|
|
9%
|
|
Excluding: Foreign exchange (increase) decrease
|
|
|
|
|
(1,808)
|
|
|
-
|
|
|
|
|
(2,545)
|
|
|
-
|
|
|
|
International Outdoor OIBDAN excluding effects of foreign exchange
|
|
|
|
$
|
98,989
|
|
$
|
96,202
|
|
3%
|
|
$
|
134,683
|
|
$
|
125,462
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Revenues excluding Effects of Political Revenue
to Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
Three Months Ended
June 30,
|
|
%
Change
|
|
Six Months Ended
June 30,
|
|
%
Change
|
|
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
Consolidated revenue
|
|
|
|
$
|
1,630,154
|
|
$
|
1,618,097
|
|
1%
|
|
$
|
2,972,702
|
|
$
|
2,961,155
|
|
0%
|
|
Excluding: Political revenue
|
|
|
|
|
(14,877)
|
|
|
(6,968)
|
|
|
|
|
(21,428)
|
|
|
(21,838)
|
|
|
|
Consolidated revenue excluding effects of political revenue
|
|
|
|
$
|
1,615,277
|
|
$
|
1,611,129
|
|
0%
|
|
$
|
2,951,274
|
|
$
|
2,939,317
|
|
0%
|
|
CCME revenue
|
|
|
|
$
|
806,337
|
|
$
|
805,611
|
|
0%
|
|
$
|
1,476,684
|
|
$
|
1,462,177
|
|
1%
|
|
Excluding: Political revenue
|
|
|
|
|
(10,328)
|
|
|
(5,908)
|
|
|
|
|
(14,876)
|
|
|
(17,006)
|
|
|
|
CCME revenue excluding effects of political revenue
|
|
|
|
$
|
796,009
|
|
$
|
799,703
|
|
(0%)
|
|
$
|
1,461,808
|
|
$
|
1,445,171
|
|
1%
|
|
Americas Outdoor revenue
|
|
|
|
$
|
319,147
|
|
$
|
335,025
|
|
(5%)
|
|
$
|
587,904
|
|
$
|
621,486
|
|
(5%)
|
|
Excluding: Political revenue
|
|
|
|
|
(511)
|
|
|
(112)
|
|
|
|
|
(758)
|
|
|
(739)
|
|
|
|
Americas Outdoor revenue excluding effects of political revenue
|
|
|
|
$
|
318,636
|
|
$
|
334,913
|
|
(5%)
|
|
$
|
587,146
|
|
$
|
620,747
|
|
(5%)
|
|
Other revenue
|
|
|
|
$
|
59,062
|
|
$
|
49,219
|
|
20%
|
|
$
|
110,524
|
|
$
|
795,595
|
|
(86%)
|
|
Excluding: Political revenue
|
|
|
|
|
(4,038)
|
|
|
(948)
|
|
|
|
|
(5,794)
|
|
|
(4,093)
|
|
|
|
Revenue excluding effects of political revenue
|
|
|
|
$
|
55,024
|
|
$
|
48,271
|
|
14%
|
|
$
|
104,730
|
|
$
|
791,502
|
|
(87%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Corporate Expenses excluding Non-cash
compensation expenses
to Corporate Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
Three Months Ended
June 30,
|
|
%
Change
|
|
Six Months Ended
June 30,
|
|
%
Change
|
|
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
Corporate Expense
|
|
|
|
$
|
82,196
|
|
$
|
77,557
|
|
6%
|
|
$
|
154,902
|
|
$
|
161,320
|
|
(4%)
|
|
Less: Non-cash compensation expense
|
|
|
|
|
(2,782)
|
|
|
(5,822)
|
|
|
|
|
(5,818)
|
|
|
(11,339)
|
|
|
|
|
|
|
|
$
|
79,414
|
|
$
|
71,735
|
|
11%
|
|
$
|
149,084
|
|
$
|
149,981
|
|
(1%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of OIBDAN to Net Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
Three Months Ended
June 30,
|
|
%
Change
|
|
Six Months Ended
June 30,
|
|
%
Change
|
|
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
OIBDAN
|
|
|
|
$
|
486,941
|
|
$
|
504,664
|
|
(4%)
|
|
$
|
747,496
|
|
$
|
771,296
|
|
(3%)
|
|
Non-cash compensation expense
|
|
|
|
|
2,782
|
|
|
5,822
|
|
|
|
|
5,818
|
|
|
11,339
|
|
|
|
Depreciation and amortization
|
|
|
|
|
174,062
|
|
|
179,734
|
|
|
|
|
348,933
|
|
|
361,916
|
|
|
|
Impairment charges
|
|
|
|
|
4,902
|
|
|
-
|
|
|
|
|
4,902
|
|
|
-
|
|
|
|
Other operating (expense) income, net
|
|
|
|
|
(1,628)
|
|
|
1,113
|
|
|
|
|
(1,463)
|
|
|
3,508
|
|
|
|
Operating income
|
|
|
|
|
303,567
|
|
|
320,221
|
|
|
|
|
386,380
|
|
|
401,549
|
|
|
|
Interest expense
|
|
|
|
|
440,605
|
|
|
407,508
|
|
|
|
|
871,719
|
|
|
793,033
|
|
|
|
Loss on sale of marketable securities
|
|
|
|
|
-
|
|
|
130,898
|
|
|
|
|
-
|
|
|
130,898
|
|
|
|
Equity in earnings (loss) of nonconsolidated affiliates
|
|
|
|
|
(16)
|
|
|
5,971
|
|
|
|
|
(13,343)
|
|
|
9,612
|
|
|
|
Loss of extinguishment of debt
|
|
|
|
|
(47,503)
|
|
|
-
|
|
|
|
|
(51,419)
|
|
|
(3,888)
|
|
|
|
Other income (expense), net
|
|
|
|
|
12,157
|
|
|
(18,098)
|
|
|
|
|
13,698
|
|
|
(19,098)
|
|
|
|
(Loss) income before income taxes
|
|
|
|
|
(172,400)
|
|
|
31,484
|
|
|
|
|
(536,403)
|
|
|
(273,960)
|
|
|
|
Income tax benefit (expense)
|
|
|
|
|
621
|
|
|
(11,477)
|
|
|
|
|
(67,766)
|
|
|
84,848
|
|
|
|
Consolidated net (loss) income
|
|
|
|
|
(171,779)
|
|
|
20,007
|
|
|
|
|
(604,169)
|
|
|
(189,112)
|
|
|
|
Less: Amount attributable to noncontrolling interest
|
|
|
|
|
14,852
|
|
|
12,805
|
|
|
|
|
6,651
|
|
|
6,689
|
|
|
|
Net (loss) income attributable to the Company
|
|
|
|
$
|
(186,631)
|
|
$
|
7,202
|
|
|
|
$
|
(610,820)
|
|
$
|
(195,801)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About CC Media Holdings, Inc.
CC Media Holdings, Inc. (OTCBB:CCMO), the parent company of Clear
Channel Communications, is one of the leading global media and
entertainment companies. The company specializes in radio, digital,
outdoor, mobile, social, live events, on-demand entertainment and
information services for local communities, and uses its unparalleled
national reach to target both nationally and locally on behalf of its
advertising partners. The company is dedicated to using the latest
technology solutions to transform the company’s products and services
for the benefit of its consumers, communities, partners and advertisers,
and its outdoor business reaches over 40 countries across five
continents, connecting people to brands using innovative new technology.
Certain statements in this release 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 CC Media Holdings, Inc.
and its subsidiaries, including Clear Channel Communications, Inc. and
Clear Channel Outdoor Holdings, Inc., 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,” “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.
Various risks that could cause future results to differ from those
expressed by the forward-looking statements included in this release
include, but are not limited to: the impact of the Company’s substantial
indebtedness, including the use of cash from operations and other
liquidity-generating transactions to make payments on its indebtedness;
changes in business, political and economic conditions in the United
States and in other countries in which the Company currently does
business (both general and relative to the advertising industry);
changes in operating performance; changes in governmental regulations
and policies and actions of regulatory bodies; changes in the level of
competition for advertising dollars; fluctuations in operating costs;
technological changes and innovations; changes in labor conditions;
changes in capital expenditure requirements; fluctuations in exchange
rates and currency values; the outcome of litigation; fluctuations in
interest rates; taxes and tax disputes; shifts in population and other
demographics; access to capital markets and borrowed indebtedness; risks
relating to the integration of acquired businesses; and risks that we
may not achieve or sustain anticipated cost savings. Other unknown or
unpredictable factors also could have material adverse effects on the
Company’s future results, performance or achievements. In light of these
risks, uncertainties, assumptions and factors, the forward-looking
events discussed in this release 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 the Company’s reports
filed with the U.S. Securities and Exchange Commission, including in the
section entitled “Item 1A. Risk Factors” of CC Media Holdings, Inc.’s
Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Except
as otherwise stated in this release, the Company does not undertake any
obligation to publicly update or revise any forward-looking statements
because of new information, future events or otherwise.
Copyright Business Wire 2014