-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EMrvst64v+MYKvcELM061kKlsUz7rQ9PKtqCGWRxNsVia78jlH1OCIUsDt6dxH75 7Lav+LasT6uv6rvoRfSNAw== 0000739708-10-000016.txt : 20101108 0000739708-10-000016.hdr.sgml : 20101108 20101108160525 ACCESSION NUMBER: 0000739708-10-000016 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20101108 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20101108 DATE AS OF CHANGE: 20101108 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CC Media Holdings Inc CENTRAL INDEX KEY: 0001400891 STANDARD INDUSTRIAL CLASSIFICATION: RADIO BROADCASTING STATIONS [4832] IRS NUMBER: 260241222 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-53354 FILM NUMBER: 101172451 BUSINESS ADDRESS: STREET 1: 200 EAST BASSE ROAD CITY: SAN ANTONIO STATE: TX ZIP: 78209 BUSINESS PHONE: 210-832-3314 MAIL ADDRESS: STREET 1: 200 EAST BASSE ROAD CITY: SAN ANTONIO STATE: TX ZIP: 78209 FORMER COMPANY: FORMER CONFORMED NAME: C C Media Holdings Inc DATE OF NAME CHANGE: 20070730 FORMER COMPANY: FORMER CONFORMED NAME: BT Triple Crown Capital Holdings III, Inc. DATE OF NAME CHANGE: 20070524 8-K 1 ccmh_8k-110810.htm FORM 8K ccmh_8k-110810.htm
 


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
_____________________________
 
FORM 8-K
_____________________________
 
 
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):   November 8, 2010
 
_____________________________

CC MEDIA HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
_____________________________
 

Delaware
000-53354
26-0241222
(State or other jurisdiction
(Commission File Number)
(I.R.S. Employer
of incorporation)
  
Identification No.)


200 East Basse Road
San Antonio, Texas 78209
(Address of principal executive offices)

Registrant’s telephone number, including area code: (210) 822-2828
 
Not Applicable
(Former name or former address, if changed since last report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 

 


 
 
 


 
Item 2.02                      Results of Operations and Financial Condition
 
 
On November 8, 2010, CC Media Holdings, Inc. issued a press release announcing its financial results for the quarter ended September 30, 2010.  A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
 

Item 9.01                      Financial Statements and Exhibits

(d)
Exhibits
     
 
99.1
Press Release issued by CC Media Holdings, Inc. on November 8, 2010

 


 
 
 



SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


 
CC MEDIA HOLDINGS, INC.
  
       
       
Date:   November 8, 2010
By:
/s/ Scott D. Hamilton
  
   
Scott D. Hamilton
  
   
Chief Accounting Officer
  
       
 
 
 

 
 
 

Exhibit Index

Exhibit No.
  
 Description
99.1
  
Press Release issued by CC Media Holdings, Inc. on November 8, 2010


 
 
 
EX-99.1 2 ccmh_ex99-1.htm PRESS RELEASE ccmh_ex99-1.htm

 
Exhibit 99.1


CC Media Holdings, Inc. Reports Third Quarter 2010 Results
-Revenues increase 6%
-OIBDAN increases 25%


----------------
San Antonio, Texas November 8, 2010... CC Media Holdings, Inc. (OTCBB: CCMO) today reported results for its third quarter ended September 30, 2010.


Third Quarter 2010 Results

CC Media Holdings reported revenues of $1.48 billion in the third quarter of 2010, an increase of 6% from the $1.39 billion reported for the third quarter of 2009, and revenues would have increased 7% excluding the effects of movements in foreign exchange rates.1

The Company’s operating expenses2 decreased 1% during the third quarter of 2010 compared to the third quarter of 2009, and would have been relatively flat excluding the effects of movements in foreign exchange rates.1   Included in the Company’s third quarter 2010 and 2009 operating and corporate expenses are approximately $3.0 million and $23.1 million of restructuring charges, respectively, and $8.3 million and $9.2 million, respectively, of non-cash compensation expense.

CC Media Holdings’ OIBDAN was $443.1 million in the third quarter of 2010, a 25% increase from the third quarter of 2009.1

The Company’s consolidated net loss in the third quarter of 2010 increased to $150.4 million compared to a consolidated net loss of $92.7 million for the same period in 2009.  Included in the 2009 results were gains of $229.0 million associated with debt repurchases.

"Our diversified media platform continued to build on the momentum of the first half of the year,” said Mark Mays, President and CEO of CC Media Holdings.  “Our radio and outdoor businesses generated healthy gains in revenue and improvement in profit margins, reflecting our leadership positions, expanding digital presence and efficient operating infrastructure.  As a result of the concerted investments we have made in our business, management and sales resources, we have emerged as a more focused, profit-driven organization delivering innovative products and measurable results for our advertising partners.”




 
 
 

 
Revenue, Operating Expenses and OIBDAN by Segment


(In thousands)
  
Three Months Ended
 September 30,
    
%
  
   
2010
    
2009
    
Change
  
Revenue1
                  
Radio Broadcasting
  
$
743,034
    
$
703,232
      
6%
  
Americas Outdoor
    
333,269
      
312,537
      
7%
  
International Outdoor
    
361,817
      
348,085
      
4%
  
Other
    
61,849
      
50,674
      
22%
  
Eliminations
    
(22,622
)
    
(20,555
)
        
Consolidated revenue
  
$
1,477,347
    
$
1,393,973
      
6%
  

Operating expenses 1,2
                  
Radio Broadcasting
  
$
441,693
    
$
435,605
      
1%
  
Americas Outdoor
    
193,483
      
193,077
      
0%
  
International Outdoor
    
299,495
      
312,201
      
(4%)
  
Other
    
45,435
      
45,123
      
1%
  
Eliminations
    
(22,622
)
    
(20,555
)
        
Consolidated Operating expenses
  
$
957,484
    
$
965,451
      
(1%)
  

OIBDAN1
                  
Radio Broadcasting
  
$
301,341
    
$
267,627
      
13%
  
Americas Outdoor
    
139,786
      
119,460
      
17%
  
International Outdoor
    
62,322
      
35,884
      
74%
  
Other
    
16,414
      
5,551
      
196%
  
Corporate
    
(76,786
)
    
(74,889
)
        
Consolidated OIBDAN
  
$
443,077
    
$
353,633
      
25%
  

1See reconciliations of revenue, direct operating and SG&A expenses and OIBDAN excluding the effects of foreign exchange, direct operating and SG&A expenses excluding non-cash compensation expense, segment OIBDAN to consolidated operating income (loss) and the reconciliation of OIBDAN to net income (loss) at the end of this press release.  See also definition of OIBDAN under the Supplemental Disclosure section in this release.

2The Company’s operating expenses include Direct operating expenses and SG&A expenses, but exclude non-cash compensation expenses associated with the Company’s stock option grants and restricted stock awards.
 
 
Radio Broadcasting
 
Radio broadcasting revenue increased $39.8 million during the third quarter of 2010 compared to the same period of 2009, primarily due to a $15.0 million increase in national advertising and a $14.0 million increase in local advertising driven by improved economic conditions and increases in average rate per minute during the third quarter of 2010 compared to the same period of 2009.  Increases occurred across various advertising categories including automotive, political, financial services and healthcare.

Operating expenses, excluding non-cash compensation, increased $6.1 million compared to the third quarter of 2009, primarily as a result of a $7.7 million increase in marketing and promotional expenses and an $8.1 million increase in bonus and commission expenses associated with the increase in revenue.  These increases were partially offset by declines in programming expenses and the impact of non-renewals of sports contracts.

Radio broadcasting OIBDAN for the third quarter of 2010 increased 13% to $301.3 million from $267.6 million for the same period of 2009. 1

Americas Outdoor Advertising
 
Americas’ outdoor revenue increased $20.7 million during the third quarter of 2010 compared to the same period of 2009 as a result of increased revenue across the Company’s advertising inventory, particularly digital.  The increase was driven by increases in both occupancy and rate.  Partially offsetting the revenue increase was the decrease in revenue related to the 2009 sale of the Company’s Taxi Media business.

Operating expenses were relatively flat during the third quarter of 2010 compared to the same period of 2009.  Higher variable costs included site-lease expenses, commission expenses and bonuses in connection with higher revenues, which were largely offset by the disposition of Taxi Media.

Americas’ OIBDAN for the third quarter of 2010 was $139.8 million, an increase of 17% when compared with the $119.5 million for the third quarter of 2009. 1

International Outdoor Advertising
 
International revenue increased $13.7 million during the third quarter of 2010 compared to the same period of 2009.  Revenue growth from all of the Company’s advertising inventory categories, particularly street furniture, and across most countries was partially offset by the exit from the business in Greece.  Foreign exchange movements negatively impacted revenues by $12.5 million.

Operating expenses, excluding non-cash compensation, decreased $12.7 million during the third quarter of 2010 compared to the same period of 2009, primarily from an $11.9 million decrease from movements in foreign exchange and a $4.7 million decline in site-lease expenses as a result of cost savings from the Company’s restructuring program and the exit from the business in Greece.

International OIBDAN for the third quarter of 2010 increased 74% to $62.3 million from $35.9 million for the third quarter of 2009. 1   Excluding the effects of movements in foreign exchange rates1, the increase in OIBDAN was 75%.
 
 Conference Call
 
Clear Channel Outdoor Holdings, Inc., a publicly traded subsidiary of CC Media Holdings, will be hosting a teleconference to discuss its results today at 5:00 p.m. Eastern Time.  The conference call number is 800-260-0702 and the pass code is 174479.  The teleconference will also be available via a live audio cast on the investor section of the Clear Channel Outdoor website, located at http://www.clearchanneloutdoor.com/corporate/investor_relations.htm.  A replay of the call will be available after the live conference call, beginning at 7:00 p.m. Eastern Time, for a period of one week.  The replay numbers are 800-475-6701 (U.S. callers) and 320-365-3844 (International callers) and the pass code is 174479.  The audio cast will also be archived on the website and will be available beginning 24 hours after the call for a period of one week.

 
 
 


 
 
TABLE 1 - Financial Highlights of CC Media Holdings, Inc. and Subsidiaries
 

(In thousands)
  
Three Months Ended
September 30,
  
   
2010
    
2009
  
Revenue
  
$
1,477,347
    
$
1,393,973
  
Operating expenses:
                
   Direct operating expenses (excludes depreciation and amortization)
    
596,540
      
632,778
  
   Selling, general and administrative expenses (excludes depreciation and amortization)
    
365,555
      
337,055
  
   Corporate expenses (excludes depreciation and amortization)
    
80,518
      
79,723
  
   Depreciation and amortization
    
184,079
      
190,189
  
   Other operating income (expense) - net
    
(29,559
)
    
1,403
  
Operating income
    
221,096
      
155,631
  
Interest expense
    
389,197
      
369,314
  
Loss on marketable securities
    
—
      
(13,378
)
Equity in earnings of nonconsolidated affiliates
    
2,994
      
1,226
  
Other (expense) income – net
    
(5,700
)
    
222,282
  
Loss before income taxes
    
(170,807
)
    
(3,553
)
Income tax benefit (expense)
    
20,415
      
(89,118
)
Consolidated net loss
    
(150,392
)
    
(92,671
)
   Amount attributable to noncontrolling interest
    
4,293
      
(2,816
)
Net loss attributable to the Company
  
$
(154,685
)
  
$
(89,855
)

The Company’s revenue decreased approximately $10.0 million and direct operating and SG&A expenses decreased approximately $10.0 million, due to the effects of foreign exchange movements during the third quarter of 2010 as compared to the same period of 2009.


 
 
 

 
 
TABLE 2 - Selected Balance Sheet Information
 

Selected balance sheet information for September 30, 2010 and December 31, 2009 was:

 
(In millions)
  
September 30, 2010
    
December 31, 2009
  
             
Cash
  
$
1,700.8
    
$
1,884.0
  
Total Current Assets
  
$
3,401.7
    
$
3,658.8
  
Net Property, Plant and Equipment
  
$
3,186.5
    
$
3,332.4
  
Total Assets
  
$
17,393.5
    
$
18,047.1
  
Current Liabilities (excluding current portion of long-term debt)
  
$
1,143.8
    
$
1,145.4
  
Long-Term Debt (including current portion of long-term debt)
  
$
20,538.5
    
$
20,701.9
  
Shareholders’ Deficit
  
$
(7,219.6
)
  
$
(6,844.7
)



TABLE 3 – Restructuring Program Costs

The Company incurred the following costs, included in Direct operating, SG&A and Corporate expenses, in conjunction with its restructuring program:

(In millions)
      
   
Three Months Ended
September 30,
  
   
2010
    
2009
  
Radio Broadcasting
  
$
0.1
    
$
7.5
  
Americas Outdoor
    
0.3
      
2.4
  
International Outdoor
    
2.2
      
3.5
  
Other
    
0.1
      
2.1
  
Corporate
    
0.3
      
7.6
  
      Total
  
$
3.0
    
$
23.1
  

 
TABLE 4 – Total Debt
 
At September 30, 2010 and December 31, 2009, CC Media Holdings had total debt of:
 
(in millions)
  
September 30,
2010
    
December 31,
 2009
  
Senior Secured Credit Facilities
  
$
14,095
    
$
13,928
  
Other secured debt
    
6
      
5
  
Total Consolidated Secured Debt
    
14,101
      
13,933
  
                 
Senior Cash Pay and Senior Toggle Notes
    
1,626
      
1,711
  
Clear Channel Senior Notes
    
2,911
      
3,268
  
Subsidiary Senior Notes
    
2,500
      
2,500
  
Other long-term debt
    
66
      
78
  
Purchase accounting adjustments and original issue discount
    
(666
)
    
(788
)
Total long term debt (including current portion of long-term debt)
  
$
20,538
    
$
20,702
  


 
 
 


 
 
Liquidity and Financial Position
 

For the nine months ended September 30, 2010, cash flow provided by operating activities was $316.5 million, cash flow used for investing activities was $165.3 million, and cash flow used for financing activities was $334.4 million for a net decrease in cash of $183.2 million.

The senior secured credit facilities currently require Clear Channel Communications, Inc. (“Clear Channel”) to comply on a quarterly basis with a financial covenant limiting the ratio of Clear Channel’s consolidated secured debt, net of cash and cash equivalents, to Clear Channel’s consolidated adjusted EBITDA3 for the preceding four quarters.  The maximum ratio under this covenant is currently set at 9.5:1.  At September 30, 2010, the Company’s ratio was 7.1:1.

3Clear Channel’s consolidated adjusted EBITDA for the preceding four quarters of $1.7 billion is calculated as  operating income for the period before depreciation, amortization and other operating (expense)-net, plus impairment charges, all as shown on the consolidated statement of operations, and non-cash compensation, and is further adjusted for certain items, including:  (i) an increase for expected cost savings (limited to $100.0 million in any twelve month period) of $54.3 million; (ii) an increase of $13.8 million for cash received from nonconsolidated affiliates; (iii) an increase of $51.3 million for non-cash items; (iv) an increase of $94.1 million related to restructuring charges and other costs/expenses; and (v) an increase of $13.1 million for various other items.



 

 
 
 


 



Supplemental Disclosure Regarding Non-GAAP Financial Information

Operating Income (Loss) before Depreciation and Amortization (D&A), Non-cash Compensation Expense and Other Operating Income (Expense) – Net (OIBDAN)

The following tables set forth the Company’s OIBDAN for the three months ended September 30, 2010 and 2009.  The Company defines OIBDAN as consolidated net income (loss) adjusted to exclude non-cash compensation expense and the following line items presented in its Statement of Operations: Income tax benefit (expense); Other income (expense) - net; Equity in earnings (loss) of nonconsolidated affiliates; Loss on marketable securities; Interest expense; Other operating income (expense) – net; and D&A.

The Company uses OIBDAN, among other things, to evaluate the Company's operating performance.  This measure is among the primary measures used by management for planning and forecasting of future periods, as well as for measuring performance for compensation of executives and other members of management.  This measure is an important indicator of the Company's operational strength and performance of its business because it provides a link between profitability and cash flows from operating activities.  It is also a primary measure used by management in evaluating companies as potential acquisition targets.

The Company believes the presentation of this measure is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by the Company's management.  It helps improve investors’ ability to understand the Company's operating performance and makes it easier to compare the Company's results with other companies that have different capital structures, stock option structures or tax rates.  In addition, 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 income (loss), the most directly comparable GAAP financial measures, users of this financial information should consider the types of events and transactions which are excluded.

In addition, because a significant portion of the Company’s advertising operations are conducted in foreign markets, principally the Euro area, the United Kingdom 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 2010 actual foreign revenues and expenses at average 2009 foreign exchange rates) allows for comparison of operations independent of foreign exchange movements.

As required by the SEC, the Company provides reconciliations below to the most directly comparable amounts reported under GAAP, including (i) OIBDAN for each segment to consolidated operating income; (ii) Revenue excluding foreign exchange effects to revenue; (iii) Expense excluding foreign exchange effects to expenses; (iv) Expense excluding non-cash compensation expense to expenses; and (v) OIBDAN to net income.




 
 
 


 

Reconciliation of OIBDAN for each segment to Consolidated Operating Income (Loss)

(In thousands)
  
Operating income (loss)
    
Non-cash compensation expense
    
Depreciation
and
amortization
    
Other operating income
(expense) – net
    
OIBDAN
  
                               
Three Months Ended September 30, 2010
                    
Radio Broadcasting
  
$
234,938
    
$
1,746
    
$
64,657
    
$
—
    
$
301,341
  
Americas Outdoor
    
84,440
      
2,207
      
53,139
      
—
      
139,786
  
International Outdoor
    
10,970
      
658
      
50,694
      
—
      
62,322
  
Other
    
3,275
      
—
      
13,139
      
—
      
16,414
  
Other operating expense – net
    
(29,559
)
    
—
      
—
      
29,559
      
—
  
Corporate
    
(82,968
)
    
3,732
      
2,450
      
—
      
(76,786
)
   Consolidated
  
$
221,096
    
$
8,343
    
$
184,079
    
$
29,559
    
$
443,077
  
                                         
Three Months Ended September 30, 2009
                          
Radio Broadcasting
  
$
202,549
    
$
2,070
    
$
63,008
    
$
—
    
$
267,627
  
Americas Outdoor
    
63,583
      
1,775
      
54,102
      
—
      
119,460
  
International Outdoor
    
(21,604
)
    
537
      
56,951
      
—
      
35,884
  
Other
    
(8,535
)
    
—
      
14,086
      
—
      
5,551
  
Other operating income  – net
    
1,403
      
—
      
—
      
(1,403
)
    
—
  
Corporate
    
(81,765
)
    
4,834
      
2,042
      
—
      
(74,889
)
    Consolidated
  
$
155,631
    
$
9,216
    
$
190,189
    
$
(1,403
)
  
$
353,633
  
                                         


 
 
 


 

 
Reconciliation of Revenue excluding Foreign Exchange Effects to Revenue

(In thousands)
  
Three Months Ended
September 30,
    
%
  
   
2010
    
2009
    
Change
  
                   
Consolidated Revenue
  
$
1,477,347
    
$
1,393,973
      
6%
  
Excluding:  Foreign exchange (increase) decrease
    
10,037
      
—
          
Revenue excluding effects of foreign exchange
  
$
1,487,384
    
$
1,393,973
      
7%
  
                         
Americas Outdoor revenue
  
$
333,269
    
$
312,537
      
7%
  
Excluding:  Foreign exchange (increase) decrease
    
(2,498
)
    
—
          
Americas Outdoor revenue excluding effects of foreign exchange
  
$
330,771
    
$
312,537
      
6%
  
                         
International Outdoor revenue
  
$
361,817
    
$
348,085
      
4%
  
Excluding:  Foreign exchange (increase) decrease
    
12,535
      
—
          
International Outdoor revenue excluding effects of foreign exchange
  
$
374,352
    
$
348,085
      
8%
  
 
Reconciliation of Expense (Direct Operating and SG&A Expenses) excluding Foreign Exchange Effects to Expense

(In thousands)
  
Three Months Ended
September 30,
    
%
  
   
2010
    
2009
    
Change
  
                   
Consolidated expense
  
$
962,095
    
$
969,833
      
(1%)
  
Excluding:  Foreign exchange (increase) decrease
    
9,981
      
—
          
Consolidated expense excluding effects of foreign exchange
  
$
972,076
    
$
969,833
      
0%
  
                         
Americas Outdoor expense
  
$
195,690
    
$
194,852
      
0%
  
Excluding:  Foreign exchange (increase) decrease
    
(1,931
)
    
—
          
Americas Outdoor expense excluding effects of foreign exchange
  
$
193,759
    
$
194,852
      
(1%)
  
                         
International Outdoor expense
  
$
300,153
    
$
312,738
      
(4%)
  
Excluding:  Foreign exchange (increase) decrease
    
11,912
      
—
          
International Outdoor expense excluding effects of foreign exchange
  
$
312,065
    
$
312,738
      
0%
  
 
Reconciliation of OIBDAN excluding Foreign Exchange Effects to OIBDAN

(In thousands)
  
Three Months Ended
September 30,
    
%
  
   
2010
    
2009
    
Change
  
                   
Consolidated OIBDAN
  
$
443,077
    
$
353,633
      
25%
  
Excluding:  Foreign exchange (increase) decrease
    
56
      
—
          
Consolidated OIBDAN excluding effects of foreign exchange
  
$
443,133
    
$
353,633
      
25%
  
                         
Americas Outdoor OIBDAN
  
$
139,786
    
$
119,460
      
17%
  
Excluding:  Foreign exchange (increase) decrease
    
(567
)
    
—
          
Americas Outdoor OIBDAN excluding effects of foreign exchange
  
$
139,219
    
$
119,460
      
17%
  
                         
International Outdoor OIBDAN
  
$
62,322
    
$
35,884
      
74%
  
Excluding:  Foreign exchange (increase) decrease
    
623
      
—
          
International Outdoor OIBDAN excluding effects of foreign exchange
  
$
62,945
    
$
35,884
      
75%
  
 
 
 
 
Reconciliation of Expense (Direct Operating and SG&A Expenses) excluding Non-cash compensation expense to Expense

(In thousands)
  
Three Months Ended
September 30,
    
%
  
   
2010
    
2009
    
Change
  
Radio Broadcasting
  
$
443,439
    
$
437,675
      
1%
  
Less: Non-cash compensation expense
    
(1,746
)
    
(2,070
)
        
     
441,693
      
435,605
      
1%
  
                         
Americas Outdoor
    
195,690
      
194,852
      
0%
  
Less: Non-cash compensation expense
    
(2,207
)
    
(1,775
)
        
     
193,483
      
193,077
      
0%
  
                         
International Outdoor
    
300,153
      
312,738
      
(4%)
  
Less: Non-cash compensation expense
    
(658
)
    
(537
)
        
     
299,495
      
312,201
      
(4%)
  
                         
Other
    
45,435
      
45,123
      
1%
  
Less: Non-cash compensation expense
    
—
      
—
          
     
45,435
      
45,123
      
1%
  
                         
Eliminations
    
(22,622
)
    
(20,555
)
        
                         
Plus: Non-cash compensation expense
    
4,611
      
4,382
          
Consolidated divisional operating expenses
  
$
962,095
    
$
969,833
      
(1%)
  

 
Reconciliation of OIBDAN to Net income (Loss)

(In thousands)
  
Three Months Ended
September 30,
    
%
  
   
2010
    
2009
    
Change
  
                   
OIBDAN
  
$
443,077
    
$
353,633
      
25%
  
Non-cash compensation expense
    
8,343
      
9,216
          
Depreciation and amortization
    
184,079
      
190,189
          
Other operating income (expense) – net
    
(29,559
)
    
1,403
          
Operating income
    
221,096
      
155,631
          
                         
Interest expense
    
389,197
      
369,314
          
Loss on marketable securities
    
—
      
(13,378
)
        
Equity in earnings of nonconsolidated affiliates
    
2,994
      
1,226
          
Other (expense) income– net
    
(5,700
)
    
222,282
          
Loss before income taxes
    
(170,807
)
    
(3,553
)
        
Income tax benefit (expense)
    
20,415
      
(89,118
)
        
Consolidated net loss
    
(150,392
)
    
(92,671
)
        
Amount attributable to noncontrolling interest
    
4,293
      
(2,816
)
        
Net loss attributable to the Company
  
$
(154,685
)
  
$
(89,855
)
        

Quarterly information regarding the sale of the Company’s Taxi Media business can be found in the Company’s first quarter 2010 earnings release, which is available on the Company’s website.


 
 
 


 

About CC Media Holdings, Inc.

CC Media Holdings, the parent company of Clear Channel Communications, is a global media and entertainment company specializing in mobile and on-demand entertainment and information services for local communities and premier opportunities for advertisers. The company's businesses include radio and outdoor displays.

For further information contact: Randy Palmer, Director of Investor Relations, (210) 822-2828, or visit the Company’s web site at www.clearchannel.com or www.ccmediaholdings.com.

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 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” and “forecast” and similar words or expressions are intend ed 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: changes in business, political and economic conditions in the U.S. 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 the level of competition for advertising dollars; fluctuations in operating costs; technological changes and innovations; changes in labor conditions; changes in governmental regulations and policies and actions of regulatory bodies; changes in capital expenditure requirements; fluctuations in exchange rates and currency values; fluctuations in interest rates; changes in tax rates; shifts in population and other demographics; and access to capital markets and changes in credit ratings. 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’ Annual Report on Form 10-K for the period ended December 31, 2009. 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 o r otherwise.
 
 
 
 
 
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