iHeartMedia, Inc. Reports Results for Third Quarter 2016
iHeartMedia, Inc. (PINK:IHRT) today reported financial results for the third quarter ended September 30, 2016.
“We continue to grow our audiences across our broadcast radio, outdoor, digital, social, mobile and events platforms, while
advancing our transformation as a digital-facing, data-rich company built on the power of broadcast radio and out-of-home,” said
Bob Pittman, Chairman and Chief Executive Officer of iHeartMedia, Inc. “This quarter, we were excited to announce the reimagining
of live radio with our two new subscription services, iHeartRadio Plus and iHeartRadio All Access, set to debut in January 2017. In
addition, at both iHeartMedia and outdoor, we continue to invest in programmatic buying platforms and research analytics tools to
leverage our assets for the benefit of our marketing and advertising partners, and at Americas outdoor and International outdoor,
we continue to realign our resources to expand our digital out-of-home networks.”
Rich Bressler, President, Chief Operating Officer and Chief Financial Officer said, “This quarter, we delivered revenue and
operating income growth at both iHeartMedia and International outdoor. Americas outdoor's revenue and operating income declined as
the result of the sales of nine non-strategic markets; excluding the impact of the sales, revenues increased. Overall, our
investments are enhancing our businesses -- allowing us to keep developing and delivering innovative new products to our consumers,
all while staying focused on tight operating and financial discipline.”
Key Financial Highlights
The Company’s key financial highlights for the third quarter of 2016 include:
- Consolidated revenue decreased 0.6%. Consolidated revenue increased 1.9%, after adjusting for a $5.9
million impact from movements in foreign exchange rates and the $32.8 million impact of the non-strategic outdoor markets sold in
2016.
- iHeartMedia revenues increased $10.2 million, or 1.2%. Revenues increased $3.7 million, or
0.4%, excluding political revenue.
- Americas outdoor revenues decreased $24.3 million, or 7.0%. Revenues increased $3.5 million, or
1.1%, after adjusting for a $0.1 million impact from movements in foreign exchange rates and a $27.9 million impact from the
non-strategic markets sold in the first quarter of 2016.
- International outdoor revenues increased $1.2 million, or 0.3%. Revenues increased $12.1 million,
or 3.5%, after adjusting for a $6.0 million impact from movements in foreign exchange rates and a $4.9 million impact from
the sale of our business in Turkey in the second quarter of 2016.
- Operating income increased $32.3 million, or 12.1%.
- OIBDAN increased 4.1% and increased 7.0%, excluding the impact from movements in foreign exchange
rates and the impact of the non-strategic outdoor markets sold in 2016.
Key Non-Financial Highlights
The Company’s recent key non-financial highlights include:
iHeartMedia
- Generated 11 billion social impressions for this year’s iHeartRadio Music Festival -- almost 50% more
social impressions than last year’s Festival and more than double the number of social impressions for the 2016 Big Game Halftime
Show. In addition, #iHeartFestival trended at #1 on Twitter worldwide both Friday and Saturday nights during the 2016 Festival.
Broadcast live on iHeartMedia radio stations across 150 markets, the Festival was live-streamed both nights on The CW Network via
CWTV.com and the CW app; and The CW Network broadcast a two-night iHeartRadio Music Festival television special on October 6th
and 7th.
- Achieved close to 92 million iHeartRadio registered users, growing 22% year-over-year, with
iHeartRadio’s cumulative downloads and upgrades surpassing 1.1 billion, as of September 30, 2016, and total listening hours up 8%
year-over-year.
- Announced that the Company is reimagining live radio through two new on-demand services --
iHeartRadio Plus and iHeartRadio All Access -- set to debut in January 2017. This marks the first time that on-demand
functionality will be used to enhance the radio experience, unlike existing services that are only music collection offerings.
When listeners hear a new song on the radio, they can instantly replay a song and even save it to a playlist. iHeartMedia reaches
more than a quarter of a billion Americans monthly through its broadcast stations alone, and iHeartRadio has the ability to drive
massive awareness of iHeartRadio Plus and iHeartRadio All Access to new audiences on a national scale.
- Set the return of the national “iHeartRadio Jingle Ball 2016 Tour Presented by Capital One,” an
iconic holiday season music event that will stop in 12 cities. The iHeartRadio Jingle Ball Tour Presented by Capital One captures
the holiday spirit of the iHeartRadio app, with performances by a number of the year’s biggest recording artists, including Bruno
Mars, Justin Bieber, Britney Spears, Ariana Grande, Niall Horan, The Chainsmokers and Fifth Harmony.
- Scheduled the fourth annual iHeartRadio Music Awards on Sunday, March 5, 2017 at the historic Forum
in Los Angeles, which will again be televised live on TBS, TNT and truTV and simulcast on iHeartMedia stations nationwide and
iHeartRadio.
- Launched the original podcast, Tagline, with Advertising Age aimed at the marketing community
at large to provide listeners with insiders’ perspectives on the craft of advertising and what the world that influences pop
culture is all about.
- Expanded iHeartRadio into Canada through Bell Media, Canada's leading media company, with the
launch of the iHeartRadio Canada app featuring hundreds of live stations and iHeartRadio-branded music events like the
iHeartCanada Jingle Ball this month.
- Joined forces with Hispanic radio legend Enrique Santos in a unique Hispanic initiative to develop
programming and content for iHeartMedia across its multiple platforms. This new alliance recognizes the increasing importance and
size of the U.S Hispanic population, both Spanish- and English-speaking, and builds on Santos’ high profile within the Latino
community as a top-rated on-air talent, trusted source, social and media influencer, content creator and community spokesperson
and leader.
- Celebrated the best in Latin Music at the iHeartRadio Fiesta Latina on Saturday, November 5th ,
generating 3.7 billion social media impressions over the weekend, over two and a half times the prior year. Telemundo aired the
exclusive TV special on November 6th and iHeartRadio Fiesta Latina video streamed live exclusively on Telemundo.com and
broadcasted live on iHeartMedia Spanish-Pop, Tropical, regional Mexican and Spanish Adult Hit radio stations across the U.S.
Outdoor
- Installed 911 new digital displays in our North American and international markets for an
end-of-quarter total of 1,082 across 28 markets in North America and over 9,000 digital displays in our international
markets.
- Renewed the contract for the Hartsfield-Jackson Atlanta International Airport, recently named the
“World’s Busiest Airport” for the 18th consecutive year.
- Secured a new contract for the Roanoke-Blacksburg Regional Airport in Southern Virginia, home to
Virginia Tech University and 20 other colleges and universities and awarded the media contract for the Punta Cana International
Airport in the Dominican Republic.
- Announced the conversion of 500 telephone boxes in London acquired in the first quarter into brand
new phone boxes featuring Wi-Fi, interactive local maps and payphone services, with an Adshel Live digital screen integrated into
every unit.
- Awarded rights to market more than 800 display sites at premium municipal locations in Lucerne,
Switzerland.
- Launched Trace tool in the UK, which tracks the consumer purchase journey and allows media planners
and advertisers to explore how best to engage their target audiences at the right time, in the right place with the right
message.
GAAP Measures by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (In thousands) |
|
|
|
Three Months Ended
September 30,
|
|
|
%
Change
|
|
|
Nine Months Ended
September 30,
|
|
|
%
Change
|
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
2016 |
|
|
2015 |
|
|
| Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| iHM |
|
|
|
$ |
857,099 |
|
|
|
$ |
846,865 |
|
|
|
1.2 |
% |
|
|
$ |
2,463,899 |
|
|
|
$ |
2,385,367 |
|
|
|
3.3 |
% |
| Americas Outdoor |
|
|
|
322,997 |
|
|
|
347,336 |
|
|
|
(7.0 |
)% |
|
|
931,058 |
|
|
|
984,485 |
|
|
|
(5.4 |
)% |
| International Outdoor |
|
|
|
350,060 |
|
|
|
348,941 |
|
|
|
0.3 |
% |
|
|
1,044,866 |
|
|
|
1,049,654 |
|
|
|
(0.5 |
)% |
| Other |
|
|
|
41,414 |
|
|
|
36,719 |
|
|
|
12.8 |
% |
|
|
114,663 |
|
|
|
106,941 |
|
|
|
7.2 |
% |
| Eliminations |
|
|
|
(1,152 |
) |
|
|
(347 |
) |
|
|
|
|
|
(2,031 |
) |
|
|
(2,510 |
) |
|
|
|
| Consolidated revenue |
|
|
|
$ |
1,570,418 |
|
|
|
$ |
1,579,514 |
|
|
|
(0.6 |
)% |
|
|
$ |
4,552,455 |
|
|
|
$ |
4,523,937 |
|
|
|
0.6 |
% |
| Direct Operating and SG&A expenses1 |
|
|
|
|
| iHM |
|
|
|
$ |
498,280 |
|
|
|
$ |
525,913 |
|
|
|
(5.3 |
)% |
|
|
$ |
1,516,441 |
|
|
|
$ |
1,508,873 |
|
|
|
0.5 |
% |
| Americas Outdoor |
|
|
|
197,489 |
|
|
|
208,611 |
|
|
|
(5.3 |
)% |
|
|
588,699 |
|
|
|
617,540 |
|
|
|
(4.7 |
)% |
| International Outdoor |
|
|
|
294,761 |
|
|
|
296,664 |
|
|
|
(0.6 |
)% |
|
|
875,674 |
|
|
|
882,700 |
|
|
|
(0.8 |
)% |
| Other |
|
|
|
27,288 |
|
|
|
25,735 |
|
|
|
6.0 |
% |
|
|
83,649 |
|
|
|
84,271 |
|
|
|
(0.7 |
)% |
| Eliminations |
|
|
|
(542 |
) |
|
|
(347 |
) |
|
|
|
|
|
(1,421 |
) |
|
|
(2,510 |
) |
|
|
|
| Consolidated Direct Operating and SG&A expenses |
|
|
|
$ |
1,017,276 |
|
|
|
$ |
1,056,576 |
|
|
|
(3.7 |
)% |
|
|
$ |
3,063,042 |
|
|
|
$ |
3,090,874 |
|
|
|
(0.9 |
)% |
| Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| iHM |
|
|
|
$ |
298,128 |
|
|
|
$ |
261,550 |
|
|
|
14.0 |
% |
|
|
$ |
764,952 |
|
|
|
$ |
696,791 |
|
|
|
9.8 |
% |
| Americas Outdoor |
|
|
|
78,266 |
|
|
|
88,604 |
|
|
|
(11.7 |
)% |
|
|
201,476 |
|
|
|
215,371 |
|
|
|
(6.5 |
)% |
| International Outdoor |
|
|
|
18,281 |
|
|
|
10,713 |
|
|
|
70.6 |
% |
|
|
56,117 |
|
|
|
41,993 |
|
|
|
33.6 |
% |
| Other |
|
|
|
9,643 |
|
|
|
6,614 |
|
|
|
45.8 |
% |
|
|
18,205 |
|
|
|
5,828 |
|
|
|
212.4 |
% |
| Corporate2 |
|
|
|
(95,798 |
) |
|
|
(85,638 |
) |
|
|
11.9 |
% |
|
|
(279,088 |
) |
|
|
(264,579 |
) |
|
|
5.5 |
% |
| Impairment charges |
|
|
|
(8,000 |
) |
|
|
(21,631 |
) |
|
|
(63.0 |
)% |
|
|
(8,000 |
) |
|
|
(21,631 |
) |
|
|
(63.0 |
)% |
| Other operating income (loss), net |
|
|
|
(505 |
) |
|
|
6,914 |
|
|
|
(107.3 |
)% |
|
|
219,768 |
|
|
|
98,694 |
|
|
|
122.7 |
% |
| Eliminations |
|
|
|
(610 |
) |
|
|
— |
|
|
|
|
|
|
(610 |
) |
|
|
— |
|
|
|
|
| Consolidated Operating Income |
|
|
|
$ |
299,405 |
|
|
|
$ |
267,126 |
|
|
|
12.1 |
% |
|
|
$ |
972,820 |
|
|
|
$ |
772,467 |
|
|
|
25.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1 |
|
|
Direct Operating and SG&A Expenses as included throughout this earnings release refers to the
sum of Direct operating expenses (excludes depreciation and amortization) and Selling, general and administrative expenses
(excludes depreciation and amortization).
|
|
|
|
|
| 2 |
|
|
Includes Corporate depreciation and amortization of $9.0 million and $10.9 million
for the three months ended September 30, 2016 and 2015, respectively, and $26.8 million and $32.1 million for the nine months
ended September 30, 2016 and 2015, respectively. |
Non-GAAP Measures1 (see preceding table for comparable GAAP measures)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (In thousands) |
|
|
|
Three Months Ended
September 30,
|
|
|
%
Change
|
|
|
Nine Months Ended
September 30, |
|
|
%
Change
|
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
2016 |
|
|
2015 |
|
|
| Revenue, excluding movements in foreign exchange |
|
|
|
|
| iHM |
|
|
|
$ |
857,099 |
|
|
|
$ |
846,865 |
|
|
|
1.2 |
% |
|
|
$ |
2,463,899 |
|
|
|
$ |
2,385,367 |
|
|
|
3.3 |
% |
| Americas Outdoor |
|
|
|
322,857 |
|
|
|
347,336 |
|
|
|
(7.0 |
)% |
|
|
938,920 |
|
|
|
984,485 |
|
|
|
(4.6 |
)% |
| International Outdoor |
|
|
|
356,128 |
|
|
|
348,941 |
|
|
|
2.1 |
% |
|
|
1,064,232 |
|
|
|
1,049,654 |
|
|
|
1.4 |
% |
| Other |
|
|
|
41,414 |
|
|
|
36,719 |
|
|
|
12.8 |
% |
|
|
114,663 |
|
|
|
106,941 |
|
|
|
7.2 |
% |
| Eliminations |
|
|
|
(1,152 |
) |
|
|
(347 |
) |
|
|
|
|
|
(2,031 |
) |
|
|
(2,510 |
) |
|
|
|
| Consolidated revenue excluding movements in foreign exchange |
|
|
|
$ |
1,576,346 |
|
|
|
$ |
1,579,514 |
|
|
|
(0.2 |
)% |
|
|
$ |
4,579,683 |
|
|
|
$ |
4,523,937 |
|
|
|
1.2 |
% |
| Direct Operating and SG&A expenses, excluding movements in foreign
exchange |
| iHM |
|
|
|
$ |
498,280 |
|
|
|
$ |
525,913 |
|
|
|
(5.3 |
)% |
|
|
$ |
1,516,441 |
|
|
|
$ |
1,508,873 |
|
|
|
0.5 |
% |
| Americas Outdoor |
|
|
|
197,199 |
|
|
|
208,611 |
|
|
|
(5.5 |
)% |
|
|
594,684 |
|
|
|
617,540 |
|
|
|
(3.7 |
)% |
| International Outdoor |
|
|
|
300,602 |
|
|
|
296,664 |
|
|
|
1.3 |
% |
|
|
894,492 |
|
|
|
882,700 |
|
|
|
1.3 |
% |
| Other |
|
|
|
27,288 |
|
|
|
25,735 |
|
|
|
6.0 |
% |
|
|
83,649 |
|
|
|
84,271 |
|
|
|
(0.7 |
)% |
| Eliminations |
|
|
|
(542 |
) |
|
|
(347 |
) |
|
|
|
|
|
(1,421 |
) |
|
|
(2,510 |
) |
|
|
|
| Consolidated Direct Operating and SG&A expenses, excluding movements
in foreign exchange |
|
|
|
$ |
1,022,827 |
|
|
|
$ |
1,056,576 |
|
|
|
(3.2 |
)% |
|
|
$ |
3,087,845 |
|
|
|
$ |
3,090,874 |
|
|
|
(0.1 |
)% |
| OIBDAN |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| iHM |
|
|
|
$ |
358,819 |
|
|
|
$ |
320,952 |
|
|
|
11.8 |
% |
|
|
$ |
947,458 |
|
|
|
$ |
876,494 |
|
|
|
8.1 |
% |
| Americas Outdoor |
|
|
|
125,508 |
|
|
|
138,725 |
|
|
|
(9.5 |
)% |
|
|
342,359 |
|
|
|
366,945 |
|
|
|
(6.7 |
)% |
| International Outdoor |
|
|
|
55,299 |
|
|
|
52,277 |
|
|
|
5.8 |
% |
|
|
169,192 |
|
|
|
166,954 |
|
|
|
1.3 |
% |
| Other |
|
|
|
14,126 |
|
|
|
10,984 |
|
|
|
28.6 |
% |
|
|
31,014 |
|
|
|
22,670 |
|
|
|
36.8 |
% |
| Corporate |
|
|
|
(83,348 |
) |
|
|
(71,784 |
) |
|
|
16.1 |
% |
|
|
(241,998 |
) |
|
|
(224,574 |
) |
|
|
7.8 |
% |
| Eliminations |
|
|
|
(610 |
) |
|
|
— |
|
|
|
|
|
|
(610 |
) |
|
|
— |
|
|
|
|
| Consolidated OIBDAN |
|
|
|
$ |
469,794 |
|
|
|
$ |
451,154 |
|
|
|
4.1 |
% |
|
|
$ |
1,247,415 |
|
|
|
$ |
1,208,489 |
|
|
|
3.2 |
% |
| OIBDAN, excluding movements in foreign exchange |
| iHM |
|
|
|
$ |
358,819 |
|
|
|
$ |
320,952 |
|
|
|
11.8 |
% |
|
|
$ |
947,458 |
|
|
|
$ |
876,494 |
|
|
|
8.1 |
% |
| Americas Outdoor |
|
|
|
125,658 |
|
|
|
138,725 |
|
|
|
(9.4 |
)% |
|
|
344,236 |
|
|
|
366,945 |
|
|
|
(6.2 |
)% |
| International Outdoor |
|
|
|
55,526 |
|
|
|
52,277 |
|
|
|
6.2 |
% |
|
|
169,740 |
|
|
|
166,954 |
|
|
|
1.7 |
% |
| Other |
|
|
|
14,126 |
|
|
|
10,984 |
|
|
|
28.6 |
% |
|
|
31,014 |
|
|
|
22,670 |
|
|
|
36.8 |
% |
| Corporate |
|
|
|
(84,820 |
) |
|
|
(71,784 |
) |
|
|
18.2 |
% |
|
|
(244,371 |
) |
|
|
(224,574 |
) |
|
|
8.8 |
% |
| Eliminations |
|
|
|
(610 |
) |
|
|
— |
|
|
|
|
|
|
(610 |
) |
|
|
— |
|
|
|
|
| Consolidated OIBDAN, excluding movements in foreign exchange |
|
|
|
$ |
468,699 |
|
|
|
$ |
451,154 |
|
|
|
3.9 |
% |
|
|
$ |
1,247,467 |
|
|
|
$ |
1,208,489 |
|
|
|
3.2 |
% |
| Revenue excluding effects of foreign exchange and revenue from
non-strategic outdoor markets sold |
| Americas Outdoor |
|
|
|
$ |
322,857 |
|
|
|
$ |
319,447 |
|
|
|
1.1 |
% |
|
|
$ |
936,450 |
|
|
|
$ |
907,194 |
|
|
|
3.2 |
% |
| International Outdoor |
|
|
|
356,128 |
|
|
|
344,010 |
|
|
|
3.5 |
% |
|
|
1,053,661 |
|
|
|
1,031,143 |
|
|
|
2.2 |
% |
| Consolidated revenue, excluding effects of foreign exchange and revenue from
non-strategic outdoor markets sold |
|
|
|
$ |
1,576,346 |
|
|
|
$ |
1,546,694 |
|
|
|
1.9 |
% |
|
|
$ |
4,566,642 |
|
|
|
$ |
4,428,135 |
|
|
|
3.1 |
% |
| OIBDAN excluding effects of foreign exchange and revenue from
non-strategic outdoor markets sold |
| Americas Outdoor |
|
|
|
$ |
125,658 |
|
|
|
$ |
125,322 |
|
|
|
0.3 |
% |
|
|
$ |
343,536 |
|
|
|
$ |
332,571 |
|
|
|
3.3 |
% |
| International Outdoor |
|
|
|
55,526 |
|
|
|
52,601 |
|
|
|
5.6 |
% |
|
|
169,603 |
|
|
|
164,934 |
|
|
|
2.8 |
% |
| Consolidated OIBDAN, excluding effects of foreign exchange and revenue from
non-strategic outdoor markets sold |
|
|
|
$ |
468,699 |
|
|
|
$ |
438,075 |
|
|
|
7.0 |
% |
|
|
$ |
1,246,630 |
|
|
|
$ |
1,172,095 |
|
|
|
6.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain prior period amounts have been reclassified to conform to the 2016 presentation of financial information throughout the
press release.
| 1 |
|
|
See the end of this press release for reconciliations of (i) OIBDAN excluding effects of foreign
exchange and OIBDAN for each segment to consolidated and segment operating income (loss); (ii) revenues excluding effects of
foreign exchange rates to revenues (iii) direct operating and SG&A expenses excluding effects of foreign exchange to
direct operating and SG&A expenses; (iv) revenues excluding political advertising revenues to revenues; (v) corporate
expenses excluding non-cash compensation expenses and effects of foreign exchange to corporate expenses; (vi) revenues
excluding the effects of foreign exchange and non-strategic outdoor markets sold to revenues; (vii) direct operating and
SG&A expenses excluding the effects of foreign exchange and non-strategic outdoor markets sold to direct operating and
SG&A expenses; and (vii) OIBDAN excluding the effects of foreign exchange and non-strategic outdoor markets sold to
operating income. See also the definition of OIBDAN under the Supplemental Disclosure section in this release.
|
|
|
|
|
Third Quarter 2016 Results
Consolidated
Consolidated revenue decreased $9.1 million, or 0.6%, during the third quarter of 2016 as compared to the third quarter of 2015.
Lower revenue generated by our Americas outdoor business as a result of the sale of nine non-strategic outdoor markets in the first
quarter of 2016 was partially offset by revenue growth generated by our iHM business and our International outdoor business.
Consolidated revenue increased $29.6 million, or 1.9%, after adjusting for a $5.9 million impact from movements in foreign exchange
rates and the $32.8 million impact of non-strategic outdoor markets sold in 2016.
Consolidated direct operating and SG&A expenses decreased $39.3 million, or 3.7%, during the third quarter of 2016 as
compared to the third quarter of 2015. Consolidated direct operating and SG&A expenses decreased $14.0 million, or 1.4%, in the
third quarter after adjusting for a $5.6 million impact of movements in foreign exchange rates and the $19.7 million impact of the
sale of the non-strategic outdoor markets.
Consolidated operating income increased $32.3 million, or 12.1%, during the third quarter of 2016 as compared to the third
quarter of 2015, primarily due to impairment charges of $21.6 million recognized in the third quarter of 2015, compared to
impairment charges of $8.0 million recognized in the third quarter of 2016.
The Company's OIBDAN increased 4.1% to $469.8 million for the quarter ended September 30, 2016. After adjusting for the
movements in foreign exchange rates and the impact of the sale of outdoor markets, the Company’s OIBDAN increased 7.0% in the third
quarter of 2016, compared to the same period in 2015.
Included in the 2016 third quarter operating income and OIBDAN were $5.0 million of direct operating and SG&A expenses and
$1.0 million of corporate expenses associated with the Company’s strategic revenue and efficiency initiatives, compared to $12.9
million and $4.1 million of such expenses in the prior year, respectively.
iHeartMedia
iHeartMedia revenues increased $10.2 million, or 1.2%, during the third quarter 2016 as compared to the third quarter 2015.
Growth in broadcast radio and digital advertising was driven primarily by higher political revenues as a result of the Presidential
election year, growth in our network businesses, including our syndication business driven by growth in our news/talk format, our
traffic and weather business, as well as higher revenues from our events, including the iHeartRadio Music Festival. The increase in
revenues was partially offset by lower local broadcast radio advertising revenues.
Direct operating and SG&A expenses decreased $27.6 million, or 5.3%, during the third quarter 2016 as compared to the third
quarter 2015 primarily driven by the $33.8 million impact of lower expenses realized upon changes in terms in connection with
contract renegotiations and a decrease in trade and barter expenses resulting from trade and barter expenses recognized in the
third quarter of 2015 that were not repeated in the current quarter. These decreases were partially offset by higher theater and
event production costs and costs related to investments in national and digital sales capabilities.
Operating income increased 14.0% to $298.1 million, and OIBDAN increased 11.8% to $358.8 million for the third quarter of 2016
as compared to the third quarter of 2015. Each of operating income and OIBDAN includes $2.5 million in expenses related to
investments in strategic revenue and efficiency initiatives compared to $4.9 million in the 2015 period.
Americas Outdoor
Americas outdoor revenues decreased $24.3 million, or 7.0%, during the third quarter of 2016 as compared to the third quarter of
2015. Revenues increased $3.5 million, or 1.1%, after adjusting for a $0.1 million impact from movements in foreign exchange rates
and a $27.9 million impact from non-strategic markets sold in the first quarter of 2016. These markets generated revenues of $27.9
million in the third quarter of 2015. The decrease resulting from these sales was partially offset by increased revenues from
digital billboards as a result of new deployments and higher occupancy on existing digital billboards, new airport contracts and
higher revenues in Latin America, resulting primarily from the Olympics in Brazil.
Direct operating and SG&A expenses decreased $11.1 million, or 5.3%, during the third quarter of 2016 as compared to the
third quarter of 2015. Direct operating and SG&A expenses increased $3.1 million, or 1.6%, after adjusting for a $0.3 million
impact from movements in foreign exchange rates and the $14.5 million impact from the sale of non-strategic markets during the
first quarter 2016, due primarily to higher variable operating expenses related to higher revenues.
Operating income decreased 11.7% to $78.3 million during the third quarter of 2016 as compared to the third quarter of 2015,
resulting primarily from the sale of the non-strategic markets in the first quarter of 2016. OIBDAN decreased $13.2 million, or
9.5%. OIBDAN increased 0.3% during the third quarter 2016, after adjusting for a $0.2 million impact from movements in foreign
exchange rates and the $13.4 million impact from the sale of the non-strategic markets.
International Outdoor
International outdoor revenues increased $1.2 million, or 0.3%, during the third quarter of 2016 as compared to the third
quarter of 2015. Revenues increased $12.1 million, or 3.5%, after adjusting for a $6.0 million impact from movements in foreign
exchange rates and the $4.9 million impact from the sale of our business in Turkey in the second quarter of 2016. Higher revenue
from new digital assets and new contracts in Australia, Italy, Spain and Sweden, was partially offset by lower revenue in the
United Kingdom, due to the London bus shelter contract not being renewed.
Direct operating and SG&A expenses decreased $1.9 million, or 0.6%, during the third quarter of 2016 as compared to the
third quarter of 2015. Direct operating and SG&A expenses increased $9.2 million, or 3.2%, after adjusting for a $5.9 million
impact from movements in foreign exchange rates and the $5.2 million impact from the sale of our business in Turkey in the second
quarter of 2016. Direct operating and SG&A expenses increased primarily due to higher site lease, production and
compensation expenses related to higher revenues, partially offset by lower site lease expense due to lower revenue in the United
Kingdom.
Operating income increased 70.6% to $18.3 million during the third quarter of 2016 as compared to the third quarter of 2015,
primarily as a result of lower depreciation and amortization expense. OIBDAN increased $3.0 million, or 5.8%. OIBDAN increased $2.9
million, or 5.6%, during the third quarter 2016, after adjusting for a $0.2 million impact from movements in foreign exchange rates
and the $0.3 million impact from the sale of our business in Turkey in the second quarter of 2016. Operating income and OIBDAN
in the third quarter of 2016 each include $2.1 million in expenses related to investments in strategic revenue and efficiency
initiatives compared to $7.2 million in the 2015 period.
Liquidity and Financial Position
As of September 30, 2016, we had $542.9 million of cash on our balance sheet, including $394.3 million of cash held by our
subsidiary, CCOH, a portion of which is held by non-wholly owned subsidiaries or is otherwise subject to certain restrictions and
not readily accessible to us. A total of $165.9 million of our cash is held outside the U.S. For the nine months ended
September 30, 2016, cash flow used for operating activities was $272.6 million, cash flow provided by investing activities
totaled $366.3 million, cash flow used for financing activities was $322.6 million, and the effect of exchange rate changes on cash
totaled $(0.9) million. The net decrease in cash from December 31, 2015 was $229.8 million.
Capital expenditures for the nine months ended September 30, 2016 were $201.0 million compared to $192.5 million in the
nine months ended September 30, 2015. We estimate capital expenditures for 2016 to be between $300 million and $350
million.
In the first quarter of 2016, Americas outdoor sold nine non-strategic markets for net proceeds, including cash and certain
advertising assets in Florida, totaling $592.6 million. These markets contributed $2.4 million and $77.3 million in revenue
during the nine months ended September 30, 2016 and 2015, respectively.
In the second quarter of 2016, International outdoor sold its business in Turkey, which contributed $10.6 million and $18.5
million in revenue during the nine months ended September 30, 2016 and 2015.
On October 24, 2016, we sold our International outdoor business in Australia (“Australia Outdoor”), for cash proceeds of $203.9
million. Australia Outdoor revenue for the nine months ended September 30, 2016 and 2015 was $96.0 million and $83.6 million,
respectively.
On January 7, 2016, CCOH paid a special dividend of $217.8 million using the proceeds of the issuance of $225.0 million in
aggregate principal amount of 8.75% Senior Notes due 2020 by Clear Channel International B.V., an indirect wholly-owned subsidiary
of CCOH, in December 2015. We received approximately 90.1% of the dividend, or $196.3 million, with the remaining 9.9%, or $21.5
million, paid to the public stockholders of CCOH.
On February 4, 2016, CCOH paid a special dividend of $540.0 million, using proceeds relating to a $300.0 million demand on the
intercompany note owed by iHeartCommunications to CCOH and a portion of the proceeds from the sale of the non-strategic domestic
outdoor markets. We received approximately 90.1% of the dividend, or $486.5 million ($186.5 million, net of iHeartCommunications’
repayment on the intercompany note), with the remaining 9.9%, or $53.5 million, paid to the public stockholders of CCOH.
As of September 30, 2016, we had borrowed $230.0 million and had $44.1 million of outstanding letters of credit under
iHeartCommunications’ receivables based credit facility. As of September 30, 2016, this facility had a borrowing base of $422.6
million, resulting in $148.5 million of excess availability. However, any incremental borrowing under iHeartCommunications’
receivables based credit facility may be further limited by the terms contained in iHeartCommunications’ material financing
agreements.
On July 15, 2016, Broader Media, LLC, our indirect wholly-owned subsidiary, repurchased $383.0 million aggregate principal
amount of iHeartCommunications’ 10.0% Senior Notes due 2018 for an aggregate purchase price of $222.2 million.
The senior secured credit facilities require iHeartMedia 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 iHeartCommunications’
senior secured credit facilities) for the preceding four quarters. We were in compliance with this covenant and the other covenants
in the senior secured credit facilities and in iHeartCommunications’ other material financing agreements as of September 30,
2016.
Conference Call
iHeartMedia, Inc. along with its wholly owned subsidiary, iHeartCommunications, Inc., and its publicly traded subsidiary, Clear
Channel Outdoor Holdings, Inc., will host a conference call to discuss results on November 9, 2016, at 8:30 a.m. Eastern
Time. The conference call number is (800) 700-7784 (U.S. callers) and (612) 288-0318 (International callers) and the passcode
for both is 405420. A live audio webcast of the conference call will also be available on the investor section of www.iheartmedia.com and www.clearchanneloutdoor.com. After the live conference call, a replay will be available for a period of
thirty days. The replay numbers are (800) 475-6701 (U.S. callers) and (320) 365-3844 (International callers) and the passcode
for both is 405420. An archive of the webcast will be available beginning 24 hours after the call for a period of thirty
days.
TABLE 1 - Financial Highlights of iHeartMedia, Inc. and Subsidiaries
|
|
|
|
|
|
|
|
| (In thousands) |
|
|
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
| Revenue |
|
|
|
$ |
1,570,418 |
|
|
|
$ |
1,579,514 |
|
|
|
$ |
4,552,455 |
|
|
|
$ |
4,523,937 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Direct operating expenses (excludes depreciation and amortization) |
|
|
|
595,576 |
|
|
|
627,150 |
|
|
|
1,781,193 |
|
|
|
1,820,005 |
|
| Selling, general and administrative expenses (excludes depreciation and
amortization) |
|
|
|
421,700 |
|
|
|
429,426 |
|
|
|
1,281,849 |
|
|
|
1,270,869 |
|
| Corporate expenses (excludes depreciation and amortization) |
|
|
|
86,779 |
|
|
|
74,775 |
|
|
|
252,308 |
|
|
|
232,492 |
|
| Depreciation and amortization |
|
|
|
158,453 |
|
|
|
166,320 |
|
|
|
476,053 |
|
|
|
505,167 |
|
| Impairment charges |
|
|
|
8,000 |
|
|
|
21,631 |
|
|
|
8,000 |
|
|
|
21,631 |
|
| Other operating income (expense), net |
|
|
|
(505 |
) |
|
|
6,914 |
|
|
|
219,768 |
|
|
|
98,694 |
|
| Operating income |
|
|
|
299,405 |
|
|
|
267,126 |
|
|
|
972,820 |
|
|
|
772,467 |
|
| Interest expense |
|
|
|
459,852 |
|
|
|
453,921 |
|
|
|
1,389,793 |
|
|
|
1,348,649 |
|
| Loss on investments |
|
|
|
(13,767 |
) |
|
|
(5,000 |
) |
|
|
(13,767 |
) |
|
|
(4,421 |
) |
| Equity in earnings (loss) of nonconsolidated affiliates |
|
|
|
1,117 |
|
|
|
(857 |
) |
|
|
(926 |
) |
|
|
(1,216 |
) |
| Gain (loss) on extinguishment of debt |
|
|
|
157,556 |
|
|
|
— |
|
|
|
157,556 |
|
|
|
(2,201 |
) |
| Other income (expense), net |
|
|
|
(7,323 |
) |
|
|
(17,976 |
) |
|
|
(47,054 |
) |
|
|
18,126 |
|
| Loss before income taxes |
|
|
|
(22,864 |
) |
|
|
(210,628 |
) |
|
|
(321,164 |
) |
|
|
(565,894 |
) |
| Income tax expense |
|
|
|
(5,613 |
) |
|
|
(2,841 |
) |
|
|
(42,243 |
) |
|
|
(81,523 |
) |
| Consolidated net loss |
|
|
|
(28,477 |
) |
|
|
(213,469 |
) |
|
|
(363,407 |
) |
|
|
(647,417 |
) |
| Less: Amount attributable to noncontrolling interest |
|
|
|
6,474 |
|
|
|
8,448 |
|
|
|
38,953 |
|
|
|
13,932 |
|
| Net loss attributable to the Company |
|
|
|
$ |
(34,951 |
) |
|
|
$ |
(221,917 |
) |
|
|
$ |
(402,360 |
) |
|
|
$ |
(661,349 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended September 30, 2016, foreign exchange rate movements decreased the Company’s revenues by $5.9
million and decreased direct operating expenses by $4.2 million and SG&A expenses by $1.4 million. For the nine months ended
September 30, 2016, foreign exchange rate movements decreased the Company’s revenues by $27.2 million and decreased direct
operating expenses by $18.2 million and SG&A expenses by $6.6 million.
TABLE 2 - Selected Balance Sheet Information
|
|
|
|
|
|
|
|
|
Selected balance sheet information for September 30, 2016 and December 31, 2015:
|
|
|
|
|
|
|
|
|
| (In millions) |
|
|
|
September 30, |
|
|
December 31, |
|
|
|
|
|
2016 |
|
|
2015 |
| Cash |
|
|
|
$ |
542.9 |
|
|
|
$ |
772.7 |
|
| Total Current Assets |
|
|
|
2,276.5 |
|
|
|
2,778.1 |
|
| Net Property, Plant and Equipment |
|
|
|
2,038.9 |
|
|
|
2,212.6 |
|
| Total Assets |
|
|
|
12,824.3 |
|
|
|
13,673.1 |
|
| Current Liabilities (excluding current portion of long-term debt) |
|
|
|
1,233.7 |
|
|
|
1,477.7 |
|
| Long-term Debt (including current portion of long-term debt) |
|
|
|
20,454.4 |
|
|
|
20,720.6 |
|
| Shareholders’ Deficit |
|
|
|
(10,962.8 |
) |
|
|
(10,606.7 |
) |
|
|
|
|
|
|
|
|
|
|
TABLE 3 - Total Debt
|
|
|
|
|
|
|
|
|
At September 30, 2016 and December 31, 2015, iHeartMedia, Inc. had total debt of:
|
|
|
|
|
|
|
|
|
| (In millions) |
|
|
|
September 30, |
|
|
December 31, |
|
|
|
|
2016 |
|
|
2015 |
| Senior Secured Credit Facilities |
|
|
|
$ |
6,300.0 |
|
|
|
$ |
6,300.0 |
|
| Receivables Based Credit Facility |
|
|
|
230.0 |
|
|
|
230.0 |
|
| Priority Guarantee Notes |
|
|
|
6,274.8 |
|
|
|
6,274.8 |
|
| Subsidiary Revolving Credit Facility due 2018 |
|
|
|
— |
|
|
|
— |
|
| Other Secured Subsidiary Debt |
|
|
|
24.6 |
|
|
|
25.2 |
|
| Total Secured Debt |
|
|
|
12,829.4 |
|
|
|
12,830.0 |
|
| Senior Notes due 2021 |
|
|
|
1,729.2 |
|
|
|
1,695.1 |
|
| iHeartCommunications Legacy Notes |
|
|
|
667.9 |
|
|
|
667.9 |
|
| Senior Notes due 2018 |
|
|
|
347.0 |
|
|
|
730.0 |
|
| Subsidiary Senior Notes due 2022 |
|
|
|
2,725.0 |
|
|
|
2,725.0 |
|
| Subsidiary Senior Subordinated Notes due 2020 |
|
|
|
2,200.0 |
|
|
|
2,200.0 |
|
| Subsidiary Senior Notes due 2020 |
|
|
|
225.0 |
|
|
|
225.0 |
|
| Other Subsidiary Debt |
|
|
|
28.7 |
|
|
|
0.2 |
|
| Purchase accounting adjustments and original issue discount |
|
|
|
(176.9 |
) |
|
|
(204.6 |
) |
| Long-Term Debt Fees |
|
|
|
(120.9 |
) |
|
|
(148.0 |
) |
| Total long-term debt (including current portion of long-term debt) |
|
|
|
$ |
20,454.4 |
|
|
|
$ |
20,720.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
The current portion of long-term debt was $204.6 million and $181.5 million as of September 30, 2016 and December 31,
2015, respectively.
Supplemental Disclosure Regarding Non-GAAP Financial Information
The following tables set forth the Company’s OIBDAN for the three and nine months ended September 30, 2016 and 2015. The
Company defines OIBDAN as consolidated operating income adjusted to exclude non-cash compensation expenses, included within
corporate expenses, as well as the following line items presented in its Statement of Comprehensive Loss: Depreciation and
amortization; Impairment charges; and Other operating income (expense), net.
In the second quarter of 2016, the Company revised its presentation of OIBDAN to eliminate the adjustments for lease expense
arising from sale leaseback transactions and amortization of deferred system implementation costs. The Company incurred these costs
for the first time during 2015 and excluded them from its calculation of OIBDAN in 2015 to enhance the comparability of the
Company’s underlying financial performance during 2015 as compared to 2014. As lease expense arising from sale leaseback
transactions and amortization of deferred system implementation costs are now reflected in both the 2015 and 2016 periods, and are
recurring expenses, the Company no longer believes excluding these costs enhances the comparability of the Company’s underlying
financial performance. The Company does not believe this change will have a significant impact on its OIBDAN presentation.
The Company uses OIBDAN, among other measures, 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 operational performance and operating
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 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, operating 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, the most directly comparable GAAP financial measure, users of this
financial information should consider the types of events and transactions which are excluded.
The other non-GAAP financial measures presented in the tables below are: (i) revenues, direct operating and SG&A expenses
and OIBDAN, each excluding the effects of foreign exchange rates; (ii) revenues, direct operating and SG&A expenses and OIBDAN,
each excluding the effects of foreign exchange rates and the results from non-strategic outdoor markets sold; (iii) revenues
excluding the effects of political revenue and (iv) corporate expenses, excluding non-cash compensation expenses.
The Company presents revenues, direct operating and SG&A expenses and OIBDAN, each excluding the effects of foreign exchange
rates, because management believes that viewing certain financial results without the impact of fluctuations in foreign currency
rates facilitates period to period comparisons of business performance and provides useful information to investors. A significant
portion of the Company’s advertising operations are conducted in foreign markets, principally Europe, the U.K. and China, and
management reviews the results from its foreign operations on a constant dollar basis. Revenues, direct operating and SG&A
expenses and OIBDAN, each excluding the effects of foreign exchange rates, are calculated by converting the current period’s
amounts in local currency to U.S. dollars using average foreign exchange rates for the prior period.
In the first quarter of 2016, the Company sold nine non-strategic Americas outdoor markets and in the second quarter of 2016,
the Company sold its business in Turkey. The Company presents revenues, direct operating and SG&A expenses and OIBDAN, each
excluding the effects of foreign exchange rates and the results from non-strategic outdoor markets sold, for the consolidated
Company and the Americas and International outdoor segments, in order to facilitate investors’ understanding of operational trends
without the impact of fluctuations in foreign currency rates and without the results from the outdoor markets that were sold, as
these results will not be included in the Company’s results in current and future periods.
The Company presents revenues excluding the effects of political revenue. Due to the cyclical nature of the electoral system and
the seasonality of the related political revenues, management believes presenting revenue excluding the effects of political
revenue provides additional information to investors about the Company’s revenue growth from period to period.
Corporate expenses excluding the effects of non-cash compensation expenses is presented as OIBDAN excludes non-cash compensation
expenses.
Since these non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered in isolation
of, or as a substitute for, the most directly comparable GAAP financial measures as an indicator of operating performance.
As required by the SEC, the Company provides reconciliations below to the most directly comparable amounts reported under GAAP,
including (i) OIBDAN excluding effects of foreign exchange and OIBDAN for each segment to consolidated and segment operating
income; (ii) Revenues excluding effects of foreign exchange rates to revenues; (iii) Direct operating and SG&A expenses
excluding effects of foreign exchange rates to direct operating and SG&A expenses; (iv) Revenues excluding political
advertising revenues to revenues; (v) Corporate expenses excluding non-cash compensation expenses and effects of foreign exchange
rates to Corporate expenses; (vi) Consolidated and outdoor revenues excluding the effects of foreign exchange rates and results
from non-strategic outdoor markets sold to Consolidated and outdoor revenues; (vii) Consolidated and outdoor direct operating and
SG&A expenses excluding the effects of foreign exchange rates and results from non-strategic outdoor markets sold to
Consolidated and outdoor direct operating and SG&A expenses; (viii) Consolidated and outdoor OIBDAN excluding the effects of
foreign exchange rates and results from non-strategic outdoor markets sold to Consolidated and outdoor operating income.
Reconciliation of OIBDAN, excluding effects of foreign exchange and OIBDAN for each segment, to Consolidated and Segment
Operating Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (In thousands) |
|
|
|
OIBDAN,
excluding
effects of
foreign
exchange
|
|
|
Effects of
foreign
exchange
|
|
|
OIBDAN
(subtotal)
|
|
|
Non-cash
compensation
expenses
|
|
|
Depreciation
and
amortization
|
|
|
Impairment
charges
|
|
|
Other
operating
(income)
expense, net
|
|
|
Operating
income (loss)
|
| Three Months Ended September 30, 2016 |
| iHM |
|
|
|
$ |
358,819 |
|
|
|
$ |
— |
|
|
|
$ |
358,819 |
|
|
|
$ |
— |
|
|
|
$ |
60,691 |
|
|
|
— |
|
|
|
$ |
— |
|
|
|
$ |
298,128 |
|
| Americas Outdoor |
|
|
|
125,658 |
|
|
|
(150 |
) |
|
|
125,508 |
|
|
|
— |
|
|
|
47,242 |
|
|
|
— |
|
|
|
— |
|
|
|
78,266 |
|
| International Outdoor |
|
|
|
55,526 |
|
|
|
(227 |
) |
|
|
55,299 |
|
|
|
— |
|
|
|
37,018 |
|
|
|
— |
|
|
|
— |
|
|
|
18,281 |
|
| Other |
|
|
|
14,126 |
|
|
|
— |
|
|
|
14,126 |
|
|
|
— |
|
|
|
4,483 |
|
|
|
— |
|
|
|
— |
|
|
|
9,643 |
|
| Corporate |
|
|
|
(84,820 |
) |
|
|
1,472 |
|
|
|
(83,348 |
) |
|
|
3,431 |
|
|
|
9,019 |
|
|
|
— |
|
|
|
— |
|
|
|
(95,798 |
) |
| Impairment charges |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,000 |
|
|
|
— |
|
|
|
(8,000 |
) |
| Other operating expense, net |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
505 |
|
|
|
(505 |
) |
| Eliminations |
|
|
|
$ |
(610 |
) |
|
|
$ |
— |
|
|
|
$ |
(610 |
) |
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
— |
|
|
|
$ |
— |
|
|
|
$ |
(610 |
) |
| Consolidated |
|
|
|
$ |
468,699 |
|
|
|
$ |
1,095 |
|
|
|
$ |
469,794 |
|
|
|
$ |
3,431 |
|
|
|
$ |
158,453 |
|
|
|
8,000 |
|
|
|
$ |
505 |
|
|
|
$ |
299,405 |
|
| Three Months Ended September 30, 2015 |
| iHM |
|
|
|
$ |
320,952 |
|
|
|
$ |
— |
|
|
|
$ |
320,952 |
|
|
|
$ |
— |
|
|
|
$ |
59,402 |
|
|
|
— |
|
|
|
$ |
— |
|
|
|
$ |
261,550 |
|
| Americas Outdoor |
|
|
|
138,725 |
|
|
|
— |
|
|
|
138,725 |
|
|
|
— |
|
|
|
50,121 |
|
|
|
— |
|
|
|
— |
|
|
|
88,604 |
|
| International Outdoor |
|
|
|
52,277 |
|
|
|
— |
|
|
|
52,277 |
|
|
|
— |
|
|
|
41,564 |
|
|
|
— |
|
|
|
— |
|
|
|
10,713 |
|
| Other |
|
|
|
10,984 |
|
|
|
— |
|
|
|
10,984 |
|
|
|
— |
|
|
|
4,370 |
|
|
|
— |
|
|
|
— |
|
|
|
6,614 |
|
| Corporate |
|
|
|
(71,784 |
) |
|
|
— |
|
|
|
(71,784 |
) |
|
|
2,991 |
|
|
|
10,863 |
|
|
|
— |
|
|
|
— |
|
|
|
(85,638 |
) |
| Impairment charges |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21,631 |
|
|
|
— |
|
|
|
(21,631 |
) |
| Other operating income, net |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,914 |
) |
|
|
6,914 |
|
| Consolidated |
|
|
|
$ |
451,154 |
|
|
|
$ |
— |
|
|
|
$ |
451,154 |
|
|
|
$ |
2,991 |
|
|
|
$ |
166,320 |
|
|
|
21,631 |
|
|
|
$ |
(6,914 |
) |
|
|
$ |
267,126 |
|
| Nine Months Ended September 30, 2016 |
| iHM |
|
|
|
$ |
947,458 |
|
|
|
$ |
— |
|
|
|
$ |
947,458 |
|
|
|
$ |
— |
|
|
|
$ |
182,506 |
|
|
|
— |
|
|
|
$ |
— |
|
|
|
$ |
764,952 |
|
| Americas Outdoor |
|
|
|
344,236 |
|
|
|
(1,877 |
) |
|
|
342,359 |
|
|
|
— |
|
|
|
140,883 |
|
|
|
— |
|
|
|
— |
|
|
|
201,476 |
|
| International Outdoor |
|
|
|
169,740 |
|
|
|
(548 |
) |
|
|
169,192 |
|
|
|
— |
|
|
|
113,075 |
|
|
|
— |
|
|
|
— |
|
|
|
56,117 |
|
| Other |
|
|
|
31,014 |
|
|
|
— |
|
|
|
31,014 |
|
|
|
— |
|
|
|
12,809 |
|
|
|
— |
|
|
|
— |
|
|
|
18,205 |
|
| Corporate |
|
|
|
(244,371 |
) |
|
|
2,373 |
|
|
|
(241,998 |
) |
|
|
10,310 |
|
|
|
26,780 |
|
|
|
— |
|
|
|
— |
|
|
|
(279,088 |
) |
| Impairment charges |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,000 |
|
|
|
— |
|
|
|
(8,000 |
) |
| Other operating income, net |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(219,768 |
) |
|
|
219,768 |
|
| Eliminations |
|
|
|
(610 |
) |
|
|
|
|
|
(610 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(610 |
) |
| Consolidated |
|
|
|
$ |
1,247,467 |
|
|
|
$ |
(52 |
) |
|
|
$ |
1,247,415 |
|
|
|
$ |
10,310 |
|
|
|
$ |
476,053 |
|
|
|
8,000 |
|
|
|
$ |
(219,768 |
) |
|
|
$ |
972,820 |
|
| Nine Months Ended September 30, 2015 |
| iHM |
|
|
|
$ |
876,494 |
|
|
|
$ |
— |
|
|
|
$ |
876,494 |
|
|
|
$ |
— |
|
|
|
$ |
179,703 |
|
|
|
— |
|
|
|
$ |
— |
|
|
|
$ |
696,791 |
|
| Americas Outdoor |
|
|
|
366,945 |
|
|
|
— |
|
|
|
366,945 |
|
|
|
— |
|
|
|
151,574 |
|
|
|
— |
|
|
|
— |
|
|
|
215,371 |
|
| International Outdoor |
|
|
|
166,954 |
|
|
|
— |
|
|
|
166,954 |
|
|
|
— |
|
|
|
124,961 |
|
|
|
— |
|
|
|
— |
|
|
|
41,993 |
|
| Other |
|
|
|
22,670 |
|
|
|
— |
|
|
|
22,670 |
|
|
|
— |
|
|
|
16,842 |
|
|
|
— |
|
|
|
— |
|
|
|
5,828 |
|
| Corporate |
|
|
|
(224,574 |
) |
|
|
— |
|
|
|
(224,574 |
) |
|
|
7,918 |
|
|
|
32,087 |
|
|
|
— |
|
|
|
— |
|
|
|
(264,579 |
) |
| Impairment charges |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21,631 |
|
|
|
— |
|
|
|
(21,631 |
) |
| Other operating income, net |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(98,694 |
) |
|
|
98,694 |
|
| Consolidated |
|
|
|
$ |
1,208,489 |
|
|
|
$ |
— |
|
|
|
$ |
1,208,489 |
|
|
|
$ |
7,918 |
|
|
|
$ |
505,167 |
|
|
|
21,631 |
|
|
|
$ |
(98,694 |
) |
|
|
$ |
772,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Revenues, excluding effects of foreign exchange rates, to Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (In thousands) |
|
|
|
Three Months Ended
September 30,
|
|
|
%
Change
|
|
|
Nine Months Ended
September 30,
|
|
|
%
Change
|
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
2016 |
|
|
2015 |
|
|
| Consolidated revenue |
|
|
|
$ |
1,570,418 |
|
|
|
$ |
1,579,514 |
|
|
|
(0.6 |
)% |
|
|
$ |
4,552,455 |
|
|
|
$ |
4,523,937 |
|
|
|
0.6 |
% |
| Excluding: Foreign exchange decrease |
|
|
|
5,928 |
|
|
|
— |
|
|
|
|
|
|
27,228 |
|
|
|
— |
|
|
|
|
| Consolidated revenue, excluding effects of foreign exchange |
|
|
|
$ |
1,576,346 |
|
|
|
$ |
1,579,514 |
|
|
|
(0.2 |
)% |
|
|
$ |
4,579,683 |
|
|
|
$ |
4,523,937 |
|
|
|
1.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Americas Outdoor revenue |
|
|
|
$ |
322,997 |
|
|
|
$ |
347,336 |
|
|
|
(7.0 |
)% |
|
|
$ |
931,058 |
|
|
|
$ |
984,485 |
|
|
|
(5.4 |
)% |
| Excluding: Foreign exchange decrease |
|
|
|
(140 |
) |
|
|
— |
|
|
|
|
|
|
7,862 |
|
|
|
— |
|
|
|
|
| Americas Outdoor revenue, excluding effects of foreign exchange |
|
|
|
$ |
322,857 |
|
|
|
$ |
347,336 |
|
|
|
(7.0 |
)% |
|
|
$ |
938,920 |
|
|
|
$ |
984,485 |
|
|
|
(4.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| International Outdoor revenue |
|
|
|
$ |
350,060 |
|
|
|
$ |
348,941 |
|
|
|
0.3 |
% |
|
|
$ |
1,044,866 |
|
|
|
$ |
1,049,654 |
|
|
|
(0.5 |
)% |
| Excluding: Foreign exchange decrease |
|
|
|
6,068 |
|
|
|
— |
|
|
|
|
|
|
19,366 |
|
|
|
— |
|
|
|
|
| International Outdoor revenue, excluding effects of foreign exchange |
|
|
|
$ |
356,128 |
|
|
|
$ |
348,941 |
|
|
|
2.1 |
% |
|
|
$ |
1,064,232 |
|
|
|
$ |
1,049,654 |
|
|
|
1.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Direct operating and SG&A expenses, excluding effects of foreign exchange rates, to Direct operating
and SG&A expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (In thousands) |
|
|
|
Three Months Ended
September 30, |
|
|
%
Change
|
|
|
Nine Months Ended
September 30, |
|
|
%
Change
|
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
2016 |
|
|
2015 |
|
|
| Consolidated direct operating and SG&A expenses |
|
|
|
$ |
1,017,276 |
|
|
|
$ |
1,056,576 |
|
|
|
(3.7 |
)% |
|
|
$ |
3,063,042 |
|
|
|
$ |
3,090,874 |
|
|
|
(0.9 |
)% |
| Excluding: Foreign exchange decrease |
|
|
|
5,551 |
|
|
|
— |
|
|
|
|
|
|
24,803 |
|
|
|
— |
|
|
|
|
| Consolidated direct operating and SG&A expenses, excluding effects of
foreign exchange |
|
|
|
$ |
1,022,827 |
|
|
|
$ |
1,056,576 |
|
|
|
(3.2 |
)% |
|
|
$ |
3,087,845 |
|
|
|
$ |
3,090,874 |
|
|
|
(0.1 |
)% |
| Americas Outdoor direct operating and SG&A expenses |
|
|
|
$ |
197,489 |
|
|
|
$ |
208,611 |
|
|
|
(5.3 |
)% |
|
|
$ |
588,699 |
|
|
|
$ |
617,540 |
|
|
|
(4.7 |
)% |
| Excluding: Foreign exchange decrease |
|
|
|
(290 |
) |
|
|
— |
|
|
|
|
|
|
5,985 |
|
|
|
— |
|
|
|
|
| Americas Outdoor direct operating and SG&A expenses, excluding effects of
foreign exchange |
|
|
|
$ |
197,199 |
|
|
|
$ |
208,611 |
|
|
|
(5.5 |
)% |
|
|
$ |
594,684 |
|
|
|
$ |
617,540 |
|
|
|
(3.7 |
)% |
| International Outdoor direct operating and SG&A expenses |
|
|
|
$ |
294,761 |
|
|
|
$ |
296,664 |
|
|
|
(0.6 |
)% |
|
|
$ |
875,674 |
|
|
|
$ |
882,700 |
|
|
|
(0.8 |
)% |
| Excluding: Foreign exchange decrease |
|
|
|
5,841 |
|
|
|
— |
|
|
|
|
|
|
18,818 |
|
|
|
— |
|
|
|
|
| International Outdoor direct operating and SG&A expenses, excluding
effects of foreign exchange |
|
|
|
$ |
300,602 |
|
|
|
$ |
296,664 |
|
|
|
1.3 |
% |
|
|
$ |
894,492 |
|
|
|
$ |
882,700 |
|
|
|
1.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Revenues, excluding Political Advertising Revenues, to Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (In thousands) |
|
|
|
Three Months Ended
September 30,
|
|
|
%
Change |
|
|
Nine Months Ended
September 30, |
|
|
%
Change
|
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
2016 |
|
|
2015 |
|
|
| Consolidated revenue |
|
|
|
$ |
1,570,418 |
|
|
|
$ |
1,579,514 |
|
|
|
(0.6 |
)% |
|
|
$ |
4,552,455 |
|
|
|
$ |
4,523,937 |
|
|
|
0.6 |
% |
| Excluding: Political revenue |
|
|
|
(18,645 |
) |
|
|
(6,641 |
) |
|
|
|
|
|
(45,248 |
) |
|
|
(17,365 |
) |
|
|
|
| Consolidated revenue, excluding effects of political revenue |
|
|
|
$ |
1,551,773 |
|
|
|
$ |
1,572,873 |
|
|
|
(1.3 |
)% |
|
|
$ |
4,507,207 |
|
|
|
$ |
4,506,572 |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| iHM revenue |
|
|
|
$ |
857,099 |
|
|
|
$ |
846,865 |
|
|
|
1.2 |
% |
|
|
$ |
2,463,899 |
|
|
|
$ |
2,385,367 |
|
|
|
3.3 |
% |
| Excluding: Political revenue |
|
|
|
(10,827 |
) |
|
|
(4,346 |
) |
|
|
|
|
|
(29,505 |
) |
|
|
(11,965 |
) |
|
|
|
| iHM revenue excluding, effects of political revenue |
|
|
|
$ |
846,272 |
|
|
|
$ |
842,519 |
|
|
|
0.4 |
% |
|
|
$ |
2,434,394 |
|
|
|
$ |
2,373,402 |
|
|
|
2.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Americas Outdoor revenue |
|
|
|
$ |
322,997 |
|
|
|
$ |
347,336 |
|
|
|
(7.0 |
)% |
|
|
$ |
931,058 |
|
|
|
$ |
984,485 |
|
|
|
(5.4 |
)% |
| Excluding: Political revenue |
|
|
|
(802 |
) |
|
|
(950 |
) |
|
|
|
|
|
(1,609 |
) |
|
|
(2,533 |
) |
|
|
|
| Americas Outdoor revenue, excluding effects of political revenue |
|
|
|
$ |
322,195 |
|
|
|
$ |
346,386 |
|
|
|
(7.0 |
)% |
|
|
$ |
929,449 |
|
|
|
$ |
981,952 |
|
|
|
(5.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other revenue |
|
|
|
$ |
41,414 |
|
|
|
$ |
36,719 |
|
|
|
12.8 |
% |
|
|
$ |
114,663 |
|
|
|
$ |
106,941 |
|
|
|
7.2 |
% |
| Excluding: Political revenue |
|
|
|
(7,016 |
) |
|
|
(1,345 |
) |
|
|
|
|
|
(14,134 |
) |
|
|
(2,867 |
) |
|
|
|
| Other revenue, excluding effects of political revenue |
|
|
|
$ |
34,398 |
|
|
|
$ |
35,374 |
|
|
|
(2.8 |
)% |
|
|
$ |
100,529 |
|
|
|
$ |
104,074 |
|
|
|
(3.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Corporate Expenses, excluding Non-cash compensation expenses and effects of foreign exchange Rates, to
Corporate Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (In thousands) |
|
|
|
Three Months Ended
September 30, |
|
|
%
Change
|
|
|
Nine Months Ended
September 30, |
|
|
%
Change
|
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
2016 |
|
|
2015 |
|
|
| Corporate Expense |
|
|
|
$ |
86,779 |
|
|
|
$ |
74,775 |
|
|
|
16.1 |
% |
|
|
$ |
252,308 |
|
|
|
$ |
232,492 |
|
|
|
8.5 |
% |
| Excluding: Non-cash compensation expense |
|
|
|
(3,431 |
) |
|
|
(2,991 |
) |
|
|
|
|
|
(10,310 |
) |
|
|
(7,918 |
) |
|
|
|
| Corporate Expense, excluding non-cash compensation expense |
|
|
|
$ |
83,348 |
|
|
|
$ |
71,784 |
|
|
|
16.1 |
% |
|
|
$ |
241,998 |
|
|
|
$ |
224,574 |
|
|
|
7.8 |
% |
| Excluding: Foreign exchange decrease |
|
|
|
1,472 |
|
|
|
— |
|
|
|
|
|
|
2,373 |
|
|
|
|
|
|
|
| Corporate Expense, excluding non-cash compensation expense and movements in
foreign exchange |
|
|
|
$ |
84,820 |
|
|
|
$ |
71,784 |
|
|
|
18.2 |
% |
|
|
$ |
244,371 |
|
|
|
$ |
224,574 |
|
|
|
8.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Consolidated and Outdoor Revenues, excluding effects of foreign exchange rates and results from
non-strategic outdoor markets sold, to Consolidated and Outdoor Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (In thousands) |
|
|
|
Three Months Ended
September 30, |
|
|
%
Change
|
|
|
Nine Months Ended
September 30, |
|
|
%
Change
|
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
2016 |
|
|
2015 |
|
|
| Consolidated revenue |
|
|
|
$ |
1,570,418 |
|
|
|
$ |
1,579,514 |
|
|
|
(0.6 |
)% |
|
|
$ |
4,552,455 |
|
|
|
$ |
4,523,937 |
|
|
|
0.6 |
% |
| Excluding: Revenue from non-strategic outdoor markets sold |
|
|
|
— |
|
|
|
(32,820 |
) |
|
|
|
|
|
(13,041 |
) |
|
|
(95,802 |
) |
|
|
|
| Excluding: Foreign exchange decrease |
|
|
|
5,928 |
|
|
|
— |
|
|
|
|
|
|
27,228 |
|
|
|
— |
|
|
|
|
| Consolidated revenue, excluding effects of foreign exchange and revenue from
non-strategic outdoor markets sold |
|
|
|
$ |
1,576,346 |
|
|
|
$ |
1,546,694 |
|
|
|
1.9 |
% |
|
|
$ |
4,566,642 |
|
|
|
$ |
4,428,135 |
|
|
|
3.1 |
% |
| Americas Outdoor revenue |
|
|
|
$ |
322,997 |
|
|
|
$ |
347,336 |
|
|
|
(7.0 |
)% |
|
|
$ |
931,058 |
|
|
|
$ |
984,485 |
|
|
|
(5.4 |
)% |
| Excluding: Revenue from non-strategic markets sold |
|
|
|
— |
|
|
|
(27,889 |
) |
|
|
|
|
|
(2,470 |
) |
|
|
(77,291 |
) |
|
|
|
| Excluding: Foreign exchange decrease |
|
|
|
(140 |
) |
|
|
— |
|
|
|
|
|
|
7,862 |
|
|
|
— |
|
|
|
|
| Americas Outdoor revenue, excluding effects of foreign exchange and revenue
from non-strategic markets sold |
|
|
|
$ |
322,857 |
|
|
|
$ |
319,447 |
|
|
|
1.1 |
% |
|
|
$ |
936,450 |
|
|
|
$ |
907,194 |
|
|
|
3.2 |
% |
| International Outdoor revenue |
|
|
|
$ |
350,060 |
|
|
|
$ |
348,941 |
|
|
|
0.3 |
% |
|
|
$ |
1,044,866 |
|
|
|
$ |
1,049,654 |
|
|
|
(0.5 |
)% |
| Excluding: Revenue from non-strategic market sold |
|
|
|
— |
|
|
|
(4,931 |
) |
|
|
|
|
|
(10,571 |
) |
|
|
(18,511 |
) |
|
|
|
| Excluding: Foreign exchange decrease |
|
|
|
6,068 |
|
|
|
— |
|
|
|
|
|
|
19,366 |
|
|
|
— |
|
|
|
|
| International Outdoor revenue, excluding effects of foreign exchange and
revenue from non-strategic market sold |
|
|
|
$ |
356,128 |
|
|
|
$ |
344,010 |
|
|
|
3.5 |
% |
|
|
$ |
1,053,661 |
|
|
|
$ |
1,031,143 |
|
|
|
2.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Consolidated and Outdoor Direct operating and SG&A expenses, excluding effects of foreign exchange
rates and results from non-strategic outdoor markets sold, to Consolidated and Outdoor Direct operating and SG&A
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (In thousands) |
|
|
|
Three Months Ended
September 30,
|
|
|
%
Change
|
|
|
Nine Months Ended
September 30,
|
|
|
%
Change
|
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
2016 |
|
|
2015 |
|
|
| Consolidated direct operating and SG&A expenses |
|
|
|
$ |
1,017,276 |
|
|
|
$ |
1,056,576 |
|
|
|
(3.7 |
)% |
|
|
$ |
3,063,042 |
|
|
|
$ |
3,090,874 |
|
|
|
(0.9 |
)% |
| Excluding: Operating expenses from non-strategic outdoor markets sold |
|
|
|
— |
|
|
|
(19,741 |
) |
|
|
|
|
|
(12,204 |
) |
|
|
(59,408 |
) |
|
|
|
| Excluding: Foreign exchange decrease |
|
|
|
5,551 |
|
|
|
— |
|
|
|
|
|
|
24,803 |
|
|
|
— |
|
|
|
|
| Consolidated direct operating and SG&A expenses, excluding effects of
foreign exchange and operating expenses from non-strategic outdoor markets sold |
|
|
|
$ |
1,022,827 |
|
|
|
$ |
1,036,835 |
|
|
|
(1.4 |
)% |
|
|
$ |
3,075,641 |
|
|
|
$ |
3,031,466 |
|
|
|
1.5 |
% |
| Americas Outdoor direct operating and SG&A expenses |
|
|
|
$ |
197,489 |
|
|
|
$ |
208,611 |
|
|
|
(5.3 |
)% |
|
|
$ |
588,699 |
|
|
|
$ |
617,540 |
|
|
|
(4.7 |
)% |
| Excluding: Operating expenses from non-strategic markets sold |
|
|
|
— |
|
|
|
(14,486 |
) |
|
|
|
|
|
(1,770 |
) |
|
|
(42,917 |
) |
|
|
|
| Excluding: Foreign exchange decrease |
|
|
|
(290 |
) |
|
|
— |
|
|
|
|
|
|
5,985 |
|
|
|
— |
|
|
|
|
| Americas Outdoor direct operating and SG&A expenses, excluding effects of
foreign exchange and operating expenses from non-strategic markets sold |
|
|
|
$ |
197,199 |
|
|
|
$ |
194,125 |
|
|
|
1.6 |
% |
|
|
$ |
592,914 |
|
|
|
$ |
574,623 |
|
|
|
3.2 |
% |
| International Outdoor direct operating and SG&A expenses |
|
|
|
$ |
294,761 |
|
|
|
$ |
296,664 |
|
|
|
(0.6 |
)% |
|
|
$ |
875,674 |
|
|
|
$ |
882,700 |
|
|
|
(0.8 |
)% |
| Excluding: Operating expenses from non-strategic market sold |
|
|
|
— |
|
|
|
(5,255 |
) |
|
|
|
|
|
(10,434 |
) |
|
|
(16,491 |
) |
|
|
|
| Excluding: Foreign exchange decrease |
|
|
|
5,841 |
|
|
|
— |
|
|
|
|
|
|
18,818 |
|
|
|
— |
|
|
|
|
| International Outdoor direct operating and SG&A expenses, excluding
effects of foreign exchange and operating expenses from non-strategic market sold |
|
|
|
$ |
300,602 |
|
|
|
$ |
291,409 |
|
|
|
3.2 |
% |
|
|
$ |
884,058 |
|
|
|
$ |
866,209 |
|
|
|
2.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Consolidated and Outdoor OIBDAN, excluding effects of foreign exchange rates and results from non-strategic
outdoor markets sold, to Consolidated and Outdoor Operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (In thousands) |
|
|
|
Three Months Ended
September 30, |
|
|
%
Change
|
|
|
Nine Months Ended
September 30, |
|
|
%
Change
|
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
2016 |
|
|
2015 |
|
|
| Consolidated operating income |
|
|
|
$ |
299,405 |
|
|
|
$ |
267,126 |
|
|
|
12.1 |
% |
|
|
$ |
972,820 |
|
|
|
$ |
772,467 |
|
|
|
25.9 |
% |
| Excluding: Revenue, direct operating and SG&A expenses from non-strategic outdoor
markets sold |
|
|
|
— |
|
|
|
(13,079 |
) |
|
|
|
|
|
(837 |
) |
|
|
(36,394 |
) |
|
|
|
| Excluding: Foreign exchange decrease |
|
|
|
(1,095 |
) |
|
|
— |
|
|
|
|
|
|
52 |
|
|
|
— |
|
|
|
|
| Excluding: Non-cash compensation expenses |
|
|
|
3,431 |
|
|
|
2,991 |
|
|
|
|
|
|
10,310 |
|
|
|
7,918 |
|
|
|
|
| Excluding: Depreciation and amortization |
|
|
|
158,453 |
|
|
|
166,320 |
|
|
|
|
|
|
476,053 |
|
|
|
505,167 |
|
|
|
|
| Excluding: Impairment |
|
|
|
8,000 |
|
|
|
21,631 |
|
|
|
|
|
|
8,000 |
|
|
|
21,631 |
|
|
|
|
| Excluding: Other operating (income) expense, net |
|
|
|
505 |
|
|
|
(6,914 |
) |
|
|
|
|
|
(219,768 |
) |
|
|
(98,694 |
) |
|
|
|
| Consolidated OIBDAN, excluding effects of foreign exchange and OIBDAN from
non-strategic outdoor markets sold |
|
|
|
$ |
468,699 |
|
|
|
$ |
438,075 |
|
|
|
7.0 |
% |
|
|
$ |
1,246,630 |
|
|
|
$ |
1,172,095 |
|
|
|
6.4 |
% |
| Americas Outdoor operating income |
|
|
|
$ |
78,266 |
|
|
|
$ |
88,604 |
|
|
|
(11.7 |
)% |
|
|
$ |
201,476 |
|
|
|
$ |
215,371 |
|
|
|
(6.5 |
)% |
| Excluding: Revenue, direct operating and SG&A expenses from non-strategic markets
sold |
|
|
|
— |
|
|
|
(13,403 |
) |
|
|
|
|
|
(700 |
) |
|
|
(34,374 |
) |
|
|
|
| Excluding: Foreign exchange decrease |
|
|
|
150 |
|
|
|
— |
|
|
|
|
|
|
1,877 |
|
|
|
— |
|
|
|
|
| Excluding: Depreciation and amortization |
|
|
|
47,242 |
|
|
|
50,121 |
|
|
|
|
|
|
140,883 |
|
|
|
151,574 |
|
|
|
|
| Americas Outdoor OIBDAN, excluding effects of foreign exchange and OIBDAN
from non-strategic markets sold |
|
|
|
$ |
125,658 |
|
|
|
$ |
125,322 |
|
|
|
0.3 |
% |
|
|
$ |
343,536 |
|
|
|
$ |
332,571 |
|
|
|
3.3 |
% |
| International Outdoor operating income |
|
|
|
$ |
18,281 |
|
|
|
$ |
10,713 |
|
|
|
70.6 |
% |
|
|
$ |
56,117 |
|
|
|
$ |
41,993 |
|
|
|
33.6 |
% |
| Excluding: Revenue, direct operating and SG&A expenses of non-strategic market
sold |
|
|
|
— |
|
|
|
324 |
|
|
|
|
|
|
(137 |
) |
|
|
(2,020 |
) |
|
|
|
| Excluding: Foreign exchange decrease |
|
|
|
227 |
|
|
|
— |
|
|
|
|
|
|
548 |
|
|
|
— |
|
|
|
|
| Excluding: Depreciation and amortization |
|
|
|
37,018 |
|
|
|
41,564 |
|
|
|
|
|
|
113,075 |
|
|
|
124,961 |
|
|
|
|
| International Outdoor OIBDAN, excluding effects of foreign exchange and
OIBDAN from non-strategic market sold |
|
|
|
$ |
55,526 |
|
|
|
$ |
52,601 |
|
|
|
5.6 |
% |
|
|
$ |
169,603 |
|
|
|
$ |
164,934 |
|
|
|
2.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About iHeartMedia, Inc.
iHeartMedia, Inc. (PINK: IHRT) is one of the leading global multi-platform media and entertainment companies specializing in
radio, digital, out-of-home, mobile, live events, and on-demand entertainment and information services for local communities and
providing premier opportunities for advertisers. Its iHeartMedia division has the largest reach of any radio or television
outlet in America, serving over 160 local markets through 856 owned radio stations in addition to its iHeartRadio digital platform.
Its publicly traded Clear Channel Outdoor Holdings, Inc. division (NYSE: CCO) is one of the world’s largest out-of-home advertising
companies, with over 578,000 displays in 35 countries across five continents, including 43 of the 50 largest markets in the United
States. More information is available at www.iheartmedia.com.
Certain statements in this press 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 iHeartMedia, Inc. and its subsidiaries, including
iHeartMedia Capital I, LLC, iHeartCommunications, 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, such as statements about our business plans, strategies and initiatives and our expectations about certain
markets, are forward-looking statements. These statements are not guarantees of future performance and are subject to certain
risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Various risks that
could cause future results to differ from those expressed by the forward-looking statements included in this press release include,
but are not limited to: the impact of the Company’s substantial indebtedness, including the effect of the Company’s leverage on its
financial position and earnings; the Company’s ability to generate sufficient cash from operations and liquidity-generating
transactions to make payments on its indebtedness; weak or uncertain global economic conditions; changes in general economic and
political conditions in the United States and in other countries in which the Company currently does business; industry conditions,
including competition; the level of expenditures on advertising; legislative or regulatory requirements; fluctuations in operating
costs; technological changes and innovations; changes in labor conditions; capital expenditure requirements; risks of doing
business in foreign countries; fluctuations in exchange rates and currency values; the outcome of pending and future litigation;
taxes and tax disputes; changes in interest rates; shifts in population and other demographics; access to capital markets and
borrowed indebtedness; the Company’s ability to implement its business strategies; risks relating to the successful integration of
the operations of acquired businesses; and risks that the Company may not achieve or sustain anticipated cost savings from
strategic revenue and efficiency initiatives. 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 press 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 press release.
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 iHeartMedia, Inc.’s, Clear Channel Outdoor Holdings, Inc.’s, iHeartMedia Capital I,
LLC’s and iHeartCommunications, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Except as otherwise stated
in this press 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.
iHeartMedia, Inc.
Media
Wendy Goldberg, 212-377-1105
Executive Vice President – Communications
or
Investors
Eileen McLaughlin, 212-377-1116
Vice President – Investor Relations
View source version on businesswire.com: http://www.businesswire.com/news/home/20161109005227/en/