iHeartMedia, Inc. (PINK:IHRT) today reported financial results
for the fourth quarter and year ended December 31, 2016.
“We continue to take major steps to transform our iHeartMedia
and outdoor businesses into a leading multi-platform, 21st-century
media and entertainment company,” said Bob Pittman, Chairman and
Chief Executive Officer of iHeartMedia, Inc. “We are successfully
building out new products and services for advertising partners to
capitalize on our unique strength with the consumer - such as
extending iHeartRadio with new on demand services and to in-home
connectivity devices, including Amazon's Alexa and Google Home. In
firsts for both industries, iHeartMedia and outdoor are building
out their data-rich analytics capabilities and programmatic
ad-buying solutions to do business in the same way that the entire
advertising industry is heading. At outdoor, we continue to win new
contracts while expanding our digital networks for even more
innovative campaigns.”
Rich Bressler, President, Chief Operating Officer and Chief
Financial Officer, said: “We delivered growth in our consolidated
revenues, operating income and OIBDAN in both the fourth quarter
and full year 2016. At the iHeartMedia segment, fourth quarter
revenue growth marked the fifteenth consecutive quarter of
year-over-year increases in revenues, evidence of our company's
successful transformation. Throughout the year, both our
iHeartMedia and outdoor businesses benefited from the investments
we are making to develop and deliver new products, while
maintaining our tight operating and financial discipline.”
Key Financial Highlights
The Company’s key financial highlights for the fourth quarter of
2016 include:
- Consolidated revenue increased 0.2%.
Consolidated revenue increased 5.0%, after adjusting for a $19.8
million impact from movements in foreign exchange rates and the
$58.9 million impact of the outdoor markets and businesses sold in
2016.
- iHM revenues increased $40.1 million,
or 4.5%. Revenues increased $19.9 million, or 2.2%, excluding
political revenue.
- Americas outdoor revenues decreased
$17.2 million, or 4.7%. Revenues increased $10.5 million, or 3.1%,
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
decreased $28.4 million, or 7.0%. Revenues increased $22.5 million,
or 6.2%, after adjusting for a $19.9 million impact from movements
in foreign exchange rates and a $31.0 million impact from the sale
of our businesses in Turkey in the second quarter of 2016 and
Australia in the fourth quarter of 2016.
- Operating income increased $154.9
million, or 41.1%.
- OIBDAN increased 1.2% and increased
6.4%, excluding the impact from movements in foreign exchange rates
and the impact of the outdoor markets and businesses sold in
2016.
The Company’s key financial highlights for 2016 include:
- Consolidated revenue increased 0.5%.
Consolidated revenue increased 3.4%, after adjusting for a $47.6
million impact from movements in foreign exchange rates and the
$125.4 million impact of the outdoor markets and businesses sold in
2016.
- iHM revenues increased $118.7 million,
or 3.6%. Revenues increased $80.9 million, or 2.5%, excluding
political revenue.
- Americas outdoor revenues decreased
$70.6 million, or 5.2%. Revenues increased $39.9 million, or 3.2%,
after adjusting for a $7.7 million impact from movements in foreign
exchange rates and a $102.7 million impact from the non-strategic
markets sold in the first quarter of 2016.
- International outdoor revenues
decreased $33.2 million, or 2.3%. Revenues increased $29.3 million,
or 2.2%, after adjusting for a $39.9 million impact from movements
in foreign exchange rates and a $22.7 million impact from the sale
of our businesses in Turkey in the second quarter of 2016 and
Australia in the fourth quarter of 2016.
- Operating income increased $355.3
million, or 30.9%.
- OIBDAN increased 2.6% and increased
6.1%, excluding the impact from movements in foreign exchange rates
and the impact of the outdoor markets and businesses sold in
2016.
Key Non-Financial
Highlights
The Company’s recent key non-financial highlights include:
iHeartMedia
- Expanded iHeartRadio to include two new
on demand subscription services: iHeartRadio Plus and iHeartRadio
All Access. These two new services use on demand functionality to
make radio truly interactive and are available on iOS and Android
with iHeartRadio All Access now also available on desktop and
select consumer electronic devices.
- Announced the coming integration of
iHeartRadio into devices across in-home connectivity, including
Google Home and Samsung Family Hub; wearable technology, such as
Samsung Gear S3; and mobile applications, including DISH Music and
Speak Music Melody.
- Achieved 96 million iHeartRadio
registered users, growing 21% year-over-year, with iHeartRadio's
cumulative downloads of 1.3 billion including upgrades, as of
December 31, 2016, and total listening hours up 11% for the full
year as compared to the prior year.
- Generated 11 billion social media
impressions with the annual "iHeartRadio Jingle Ball 2016 Tour
Presented by Capital One." The 12-city tour generated almost three
times more social media impressions than the recent Big Game
Halftime Show.
- Staged the second annual iHeart80s
Party on January 28th featuring the biggest music icons of the
80's. The show was broadcast live on iHeartMedia Mainstream AC, Hot
AC and adult Hits radio stations nationwide and iHeartRadio.
- Announced the 2017 iHeartRadio Music
Awards nominees including song of the year - Drake featuring Wizkid
and Kyla, Justin Timberlake, Sia featuring Sean Paul, The
Chainsmokers featuring Halsey and twenty one pilots. The awards
will be aired live on TBS, TNT and truTV on March 5th.
- Scheduled the fourth annual
iHeartCountry Festival for Saturday, May 6th, which will be aired
over iHeartCountry's 145 broadcast radio stations nationwide that
reach more than 98 million, 12 and older Country music listeners
monthly, making it the largest Country broadcast radio group in
America.
- Partnered with the audio creative
agency Jingle Punks to collaborate with 13 leading brands to create
original jingles that aired nationwide on December 26th -
iHeartMedia's National Jingle Day Presented by Jingle Punks -
across hundreds of iHeartMedia radio stations and iHeartRadio.
- Improved audience insights for ART19
podcast publishers on iHeartRadio through innovative partnership
between iHeartRadio and ART19. ART19 podcast publishers on
iHeartRadio will receive more detailed listener information and
demographics to improve monetization.
Outdoor
- Installed 31 new digital billboards in
the fourth quarter and 82 over the full year for an end of year
total of 1,113 across North America, and installed 1,077 digital
displays in the fourth quarter and almost 3,600 over the full year
in the International markets for an end-of-year total of more than
9,600.
- Launched first nationwide programmatic
private marketplace (PMP) solution in the U.S. for out-of-home
ad-buying. This will enable advertisers and brands to purchase
almost 1,000 of Americas outdoor's high impact digital inventory
billboards at scale, seamlessly, within a PMP.
- Being named to AdWeek's Top Mobile
Innovators of 2016 for the launch of RADAR - the industry's first
suite of third-party research, data and mobile analytics tools for
planning, attribution, measurement and retargeting - as well as the
integration of RADAR into the first-to-market programmatic
out-of-home buying solution via private marketplaces.
- Introduced the first out-of-home
programmatic buying tool in Europe - this automated solution is
live in Belgium with plans to continue the roll-out across Europe
including the UK in March. Customers can now access and buy
audience-based packages on an Automated Guarantee basis across
Clear Channel's digital out-of-home network in the city of
Brussels.
- Awarded 10-year contract extension to
provide Nashville International Airport with an entirely new
digital advertising network that will include technologically
sophisticated, state-of-the-art media.
- Won five-year partnership extension to
bolster the digital media program for Austin-Bergstrom
International airport.
- Renewed the city of Lyon transit
contract for seven years to operate out-of-home advertising across
its buses, bus shelters, Tramway and Metro. Lyon's metro system is
the second largest in France after Paris.
GAAP Measures by Segment
(In thousands) Three Months EndedDecember 31,
%Change
Year EndedDecember 31,
%Change
2016 2015 2016 2015 Revenue iHM $ 939,141 $ 898,953
4.5 % $ 3,403,040 $ 3,284,320 3.6 % Americas Outdoor 347,355
364,536 (4.7 )% 1,278,413 1,349,021 (5.2 )% International Outdoor
379,116 407,529 (7.0 )% 1,423,982 1,457,183 (2.3 )% Other 56,930
46,795 21.7 % 171,593 153,736 11.6 % Eliminations (1,424 ) (234 )
(3,455 ) (2,744 )
Consolidated revenue $
1,721,118 $ 1,717,579 0.2
% $ 6,273,573 $ 6,241,516
0.5 % Direct Operating and SG&A expenses1
iHM $ 562,020 $ 529,130 6.2 % $ 2,078,461 $ 2,038,003 2.0 %
Americas Outdoor 207,026 213,096 (2.8 )% 795,725 830,636 (4.2 )%
International Outdoor 279,372 313,070 (10.8 )% 1,155,046 1,195,770
(3.4 )% Other 27,229 29,529 (7.8 )% 110,878 113,800 (2.6 )%
Eliminations (503 ) (234 ) (1,924 ) (2,744 )
Consolidated Direct
Operating and SG&A expenses $ 1,075,144
$ 1,084,591 (0.9 )%
$ 4,138,186 $ 4,175,465
(0.9 )% Operating Income iHM $ 315,663 $ 309,319 2.1
% $ 1,080,615 $ 1,006,110 7.4 % Americas Outdoor 95,558 98,500 (3.0
)% 297,034 313,871 (5.4 )% International Outdoor 60,061 53,360 12.6
% 116,178 95,353 21.8 % Other 25,206 13,486 86.9 % 43,411 19,314
124.8 % Corporate2 (97,484 ) (93,008 ) 4.8 % (376,572 ) (357,587 )
5.3 % Impairment charges — — nm (8,000 ) (21,631 ) (63.0 )% Other
operating income (loss), net 133,788 (4,693 ) nm 353,556 94,001
276.1 % Eliminations (921 ) — (1,531 ) —
Consolidated Operating Income $ 531,871
$ 376,964 41.1 % $
1,504,691 $ 1,149,431
30.9 %
1Direct 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).
2Includes Corporate depreciation and amortization of $8.8
million and $10.5 million for the three months ended
December 31, 2016 and 2015, respectively, and $35.5 million
and $42.6 million for the years ended December 31, 2016 and
2015, respectively.
Non-GAAP Measures1 (see
preceding table for comparable GAAP measures)
(In thousands) Three Months EndedDecember 31, %Change Year
EndedDecember 31, %
Change
2016 2015 2016 2015 Revenue, excluding movements in
foreign exchange iHM $ 939,141 $ 898,953 4.5 % $ 3,403,040 $
3,284,320 3.6 % Americas Outdoor 347,214 364,536 (4.8 )% 1,286,134
1,349,021 (4.7 )% International Outdoor 399,029 407,529 (2.1 )%
1,463,876 1,457,183 0.5 % Other 56,930 46,795 21.7 % 171,593
153,736 11.6 % Eliminations (1,424 ) (234 ) (3,455 ) (2,744 )
Consolidated revenue excluding movements in foreign exchange
$ 1,740,890 $ 1,717,579
1.4 % $ 6,321,188 $
6,241,516 1.3 % Direct Operating and
SG&A expenses, excluding movements in foreign exchange iHM $
562,020 $ 529,130 6.2 % $ 2,078,461 $ 2,038,003 2.0 % Americas
Outdoor 206,766 213,096 (3.0 )% 801,449 830,636 (3.5 )%
International Outdoor 293,383 313,070 (6.3 )% 1,188,284 1,195,770
(0.6 )% Other 27,229 29,529 (7.8 )% 110,878 113,800 (2.6 )%
Eliminations (503 ) (234 ) (1,924 ) (2,744 )
Consolidated Direct
Operating and SG&A expenses, excluding movements in foreign
exchange $ 1,088,895 $
1,084,591 0.4 % $
4,177,148 $ 4,175,465 —
% OIBDAN iHM $ 377,121 $ 369,823 2.0 % $ 1,324,579 $
1,246,317 6.3 % Americas Outdoor 140,329 151,440 (7.3 )% 482,688
518,385 (6.9 )% International Outdoor 99,744 94,459 5.6 % 268,936
261,413 2.9 % Other 29,701 17,266 72.0 % 60,715 39,936 52.0 %
Corporate (85,941 ) (79,502 ) 8.1 % (327,939 ) (304,076 ) 7.8 %
Eliminations (921 ) — (1,531 ) —
Consolidated
OIBDAN $ 560,033 $ 553,486
1.2 % $ 1,807,448
$ 1,761,975 2.6 % OIBDAN,
excluding movements in foreign exchange iHM $ 377,121 $ 369,823 2.0
% $ 1,324,579 $ 1,246,317 6.3 % Americas Outdoor 140,448 151,440
(7.3 )% 484,685 518,385 (6.5 )% International Outdoor 105,646
94,459 11.8 % 275,592 261,413 5.4 % Other 29,701 17,266 72.0 %
60,715 39,936 52.0 % Corporate (87,697 ) (79,502 ) 10.3 % (332,068
) (304,076 ) 9.2 % Eliminations (921 ) — (1,531 ) —
Consolidated OIBDAN, excluding movements in foreign exchange
$ 564,298 $ 553,486
2.0 % $ 1,811,972 $
1,761,975 2.8 % Revenue excluding
effects of foreign exchange and revenue from outdoor markets and
businesses sold Americas Outdoor $ 347,214 $ 336,653 3.1 % $
1,283,664 $ 1,243,847 3.2 % International Outdoor 388,422 365,902
6.2 % 1,342,836 1,313,491 2.2 %
Consolidated revenue, excluding
effects of foreign exchange and revenue from outdoor markets and
businesses sold $ 1,730,283 $
1,648,069 5.0 % $ 6,197,678
$ 5,992,650 3.4 % OIBDAN excluding
effects of foreign exchange and revenue from outdoor markets and
businesses sold Americas Outdoor $ 140,448 $ 138,200 1.6 % $
483,985 $ 470,771 2.8 % International Outdoor 102,445 81,803 25.2 %
250,543 231,175 8.4 %
Consolidated OIBDAN, excluding effects of
foreign exchange and revenue from outdoor markets and businesses
sold $ 561,097 $ 527,590 6.4
% $ 1,786,223 $ 1,684,123
6.1 %
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.
Full Year 2016 Results
Consolidated
Consolidated revenue increased $32.1 million, or 0.5%, during
2016 as compared to 2015. Revenue growth from our iHM business was
partially offset by lower revenue generated by our Americas and
International outdoor businesses as a result of the sales of
certain U.S. outdoor markets and international businesses.
Consolidated revenue increased $205.0 million, or 3.4%, after
adjusting for a $47.6 million impact from movements in foreign
exchange rates and the $125.4 million impact of outdoor markets and
businesses sold in 2016.
Consolidated direct operating and SG&A expenses decreased
$37.3 million, or 0.9%, during 2016 as compared to 2015.
Consolidated direct operating and SG&A expenses increased $74.9
million, or 1.9%, during 2016 as compared to 2015, after adjusting
for a $39.0 million impact of movements in foreign exchange rates
and the $73.2 million impact of the sale of the outdoor markets and
businesses.
Consolidated operating income increased $355.3 million, or
30.9%, during 2016 as compared to 2015, primarily due to the net
gain of $278.3 million on sale of nine non-strategic outdoor
markets in the first quarter of 2016 and the net gain of $127.6
million on sale on our Australia outdoor business in the fourth
quarter of 2016, partially offset by the $56.6 million loss, which
includes $32.2 million in cumulative translation adjustments, on
the sale of our Turkey outdoor business in the second quarter of
2016.
The Company's OIBDAN increased 2.6% to $1,807.4 million during
2016 as compared to 2015. After adjusting for the movements in
foreign exchange rates and the impact of the sale of outdoor
markets and businesses, the Company’s OIBDAN increased 6.1% in 2016
compared to 2015.
Included in the 2016 operating income and OIBDAN were $27.3
million of direct operating and SG&A expenses and $3.6 million
of corporate expenses associated with the Company’s strategic
revenue and efficiency initiatives, compared to $29.0 million and
$13.8 million of such expenses in 2015, respectively.
iHM
iHM revenues increased $118.7 million, or 3.6%, during 2016 as
compared to 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 traffic and weather
business, higher revenue surrounding our events and higher trade
and barter revenue.
Direct operating and SG&A expenses increased $40.5 million,
or 2.0%, during 2016 as compared to 2015 primarily driven by higher
content and programming costs, investments in national and digital
sales capabilities, higher promotion expense and higher variable
compensation related to higher revenue.
Operating income increased 7.4% to $1,080.6 million, and OIBDAN
increased 6.3% to $1,324.6 million for 2016 as compared to 2015.
Operating income and OIBDAN for 2016 each include $15.5 million in
expenses related to investments in strategic revenue and efficiency
initiatives compared to $11.8 million in 2015.
Americas Outdoor
Americas outdoor revenues decreased $70.6 million, or 5.2%,
during 2016 as compared to 2015. Revenues increased $39.9 million,
or 3.2%, after adjusting for a $7.7 million impact from movements
in foreign exchange rates and a $102.7 million impact from
non-strategic markets sold in the first quarter of 2016. The
increase was primarily due to increased revenues from digital
billboards as a result of new deployments and higher occupancy on
existing digital billboards, as well as new airport contracts, and
higher revenues in Latin America.
Direct operating and SG&A expenses decreased $34.9 million,
or 4.2%, during 2016 as compared to 2015. Direct operating and
SG&A expenses increased $26.6 million, or 3.4%, after adjusting
for a $5.7 million impact from movements in foreign exchange rates
and the $55.8 million impact from the sale of non-strategic markets
during the first quarter 2016, due primarily to higher operating
expenses related to new contracts and higher variable compensation
expense related to higher revenues.
Operating income decreased 5.4% to $297.0 million during 2016 as
compared to 2015, resulting primarily from the sale of the
non-strategic outdoor markets in 2016. OIBDAN decreased $35.7
million, or 6.9%. OIBDAN increased 2.8% during 2016 as compared to
2015, after adjusting for a $2.0 million impact from movements in
foreign exchange rates and the $46.9 million impact from the sale
of the non-strategic markets.
International Outdoor
International outdoor revenues decreased $33.2 million, or 2.3%,
during 2016 as compared to 2015. Revenues increased $29.3 million,
or 2.2%, after adjusting for a $39.9 million impact from movements
in foreign exchange rates and the $22.7 million impact from the
sale of our businesses in Turkey and Australia in the second and
fourth quarters of 2016, respectively. Higher revenue primarily
from new digital assets and new contracts in China, Italy, Spain,
Sweden, France and Belgium was partially offset by lower revenue
due to the sale of our businesses in Turkey and Australia, as well
as lower revenue in the United Kingdom due to the London bus
shelter contract not being renewed.
Direct operating and SG&A expenses decreased $40.8 million,
or 3.4%, during 2016 as compared to 2015. Direct operating and
SG&A expenses increased $10.0 million, or 0.9%, after adjusting
for a $33.3 million impact from movements in foreign exchange rates
and the $17.4 million impact from the sale of our businesses in
Turkey and Australia in the second and fourth quarters of 2016,
respectively. Direct operating and SG&A expenses increased
primarily due to higher site lease and production expenses related
to higher revenues. This was partially offset by lower site lease
expense due to lower revenue in the United Kingdom, as well as
operating expenses of $11.4 million recorded in the fourth quarter
of 2015 to correct for accounting errors included in the results
for our Netherlands subsidiary reported in prior years.
Operating income increased 21.8% to $116.2 million during 2016
as compared to 2015. OIBDAN increased $7.5 million, or 2.9%. OIBDAN
increased $19.3 million, or 8.4%, during 2016 as compared to 2015,
after adjusting for a $6.6 million impact from movements in foreign
exchange rates and the $5.3 million impact from the sale of our
businesses in Turkey and Australia in the second and fourth
quarters of 2016, respectively. Operating income and OIBDAN in
2016 each include $7.4 million in expenses related to investments
in strategic revenue and efficiency initiatives compared to $11.1
million in 2015.
Liquidity and Financial
Position
As of December 31, 2016, we had $845.0 million of cash on
our balance sheet, including $542.0 million of cash held by our
subsidiary, CCOH. A total of $188.4 million of our cash is held
outside the U.S. For the twelve months ended December 31,
2016, cash flow used for operating activities was $14.0 million,
cash flow provided by investing activities totaled $510.9 million,
cash flow used for financing activities was $418.2 million, and the
effect of exchange rate changes on cash totaled $(6.4)
million. The net increase in cash from December 31, 2015 was
$72.4 million.
Capital expenditures for the twelve months ended
December 31, 2016 were $314.7 million compared to $296.4
million in the twelve months ended December 31, 2015. We
estimate capital expenditures for 2017 to be between $300 million
and $325 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 $592.3 million. These
markets contributed $2.5 million and $105.2 million in revenue
during the twelve months ended December 31, 2016 and 2015,
respectively.
In the second quarter of 2016, International outdoor sold its
business in Turkey. In the fourth quarter of 2016, International
outdoor sold its business in Australia (“Australia Outdoor”), for
net cash proceeds of $195.7 million. These sold businesses
contributed $121.0 million and $143.7 million in revenue during the
years ended December 31, 2016 and 2015, 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 90.1% of the dividend, or
approximately $196.3 million, with the remaining 9.9%, or
approximately $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 certain of the
non-strategic domestic outdoor markets. We received 90.1% of the
dividend, or approximately $486.5 million ($186.5 million, net of
iHeartCommunications’ repayment on the intercompany note), with the
remaining 9.9%, or approximately $53.5 million, paid to the public
stockholders of CCOH.
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.
As of December 31, 2016, we had borrowed $330.0 million and
had $36.8 million of outstanding letters of credit under
iHeartCommunications’ receivables based credit facility. As of
December 31, 2016, this facility had a borrowing base of
$480.4 million, resulting in $113.6 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 January 31, 2017, we repaid $25.0 million on
iHeartCommunications’ receivables based credit facility.
On December 20, 2016, iHeartCommunications announced an
offer to noteholders to exchange its 10.0% Senior Notes due 2018
for newly-issued 11.25% Priority Guarantee Notes to be issued as
“additional notes” under the indenture governing
iHeartCommunications' existing 11.25% Priority Guarantee Notes due
2021. On February 7, 2017, iHeartCommunications completed the
exchange offer by issuing $476.4 million in aggregate principal
amount of 11.25% Priority Guarantee Notes due 2021 (including
$241.4 million held by subsidiaries of iHeartCommunications) in
exchange for $476.4 million of aggregate principal amount
outstanding of its 10.0% Senior Notes due 2018 (including $241.4
million held by subsidiaries of iHeartCommunications).
On February 9, 2017, CCOH declared a special dividend of $282.5
million using a portion of the proceeds from the sales of certain
non-strategic U.S. outdoor markets and of our Australia business,
which was paid on February 23, 2017. We received 89.9% of the
dividend or approximately $254.0 million, with the remaining 10.1%
or approximately $28.5 million, paid to public stockholders of
CCOH.
The senior secured credit facilities require us 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, except as otherwise disclosed
in our Annual Report on Form 10-K filed on February 23, 2017, the
other covenants in the senior secured credit facilities and in
iHeartCommunications’ other material financing agreements as of
December 31, 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 February 23, 2017, at 8:30 a.m. Eastern
Time. The conference call number is (800) 230-1092 (U.S.
callers) and (612) 288-0329 (International callers) and the
passcode for both is 417884. 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 417884. 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 EndedDecember 31,
Year EndedDecember 31, 2016 2015 2016 2015
Revenue $ 1,721,118 $ 1,717,579
$ 6,273,573 $ 6,241,516 Operating
expenses: Direct operating expenses (excludes depreciation and
amortization) 631,094 651,108 2,412,287 2,471,113 Selling, general
and administrative expenses (excludes depreciation and
amortization) 444,050 433,483 1,725,899 1,704,352 Corporate
expenses (excludes depreciation and amortization) 88,717 82,507
341,025 314,999 Depreciation and amortization 159,174 168,824
635,227 673,991 Impairment charges — — 8,000 21,631 Other operating
income (expense), net 133,788 (4,693 ) 353,556 94,001
Operating income 531,871 376,964
1,504,691 1,149,431 Interest expense 460,189 456,847
1,849,982 1,805,496 Gain (loss) on investments 860 — (12,907 )
(4,421 ) Equity in earnings (loss) of nonconsolidated affiliates
(15,807 ) 314 (16,733 ) (902 ) Gain (loss) on extinguishment of
debt — — 157,556 (2,201 ) Other income (expense), net (26,048 )
(5,070 ) (73,102 ) 13,056 Income (loss) before income taxes
30,687 (84,639 ) (290,477 ) (650,533 ) Income tax expense 92,717
(5,434 ) 50,474 (86,957 ) Consolidated net income
(loss) 123,404 (90,073 ) (240,003 ) (737,490 ) Less: Amount
attributable to noncontrolling interest 17,362 3,199
56,315 17,131 Net income (loss) attributable to the
Company
$ 106,042 $ (93,272
) $ (296,318 ) $ (754,621
)
For the three months ended December 31, 2016, foreign
exchange rate movements decreased the Company’s revenues by $19.8
million, decreased direct operating expenses by $10.5 million and
SG&A expenses by $3.2 million. For the year ended
December 31, 2016, foreign exchange rate movements decreased
the Company’s revenues by $47.6 million, decreased direct operating
expenses by $29.0 million and SG&A expenses by $9.9
million.
TABLE 2 - Selected Balance Sheet
Information
Selected balance sheet information for December 31, 2016
and December 31, 2015:
(In millions) December 31, 2016
2015 Cash
$
845.0
$
772.7
Total Current Assets 2,504.7 2,778.1 Net Property, Plant and
Equipment 1,948.2 2,212.6 Total Assets 12,862.2 13,673.1 Current
Liabilities (excluding current portion of long-term debt) 1,353.7
1,477.7 Long-term Debt (including current portion of long-term
debt) 20,365.0 20,720.6 Shareholders’ Deficit (10,885.5 ) (10,606.7
)
TABLE 3 - Total Debt
At December 31, 2016 and December 31, 2015,
iHeartMedia, Inc. had total debt of:
(In millions) December 31, 2016 2015 Senior
Secured Credit Facilities $ 6,300.0 $ 6,300.0 Receivables Based
Credit Facility 330.0 230.0 Priority Guarantee Notes 6,274.8
6,274.8 Subsidiary Revolving Credit Facility due 2018 — — Other
Secured Subsidiary Debt 21.0 25.2 Total Secured Debt
12,925.8 12,830.0 Senior Notes due 2021 1,729.2 1,695.1
iHeartCommunications Legacy Notes1 475.0 667.9 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
28.0 0.2 Purchase accounting adjustments and original issue
discount (167.0 ) (204.6 ) Long-Term Debt Fees (123.0 ) (148.0 )
Total long-term debt (including current portion of long-term debt)
$ 20,365.0 $ 20,720.6
1Net of $57.1 million of Legacy Notes held by a subsidiary of
iHeartCommunications.
The current portion of long-term debt was $342.9 million and
$181.5 million as of December 31, 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 months and year ended December 31, 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.
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 outdoor markets and businesses 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, in the second quarter of
2016, the Company sold its business in Turkey and in the fourth
quarter of 2016, the Company sold its business in Australia. The
Company presents revenues, direct operating and SG&A expenses
and OIBDAN, each excluding the effects of foreign exchange rates
and the results from outdoor markets and businesses 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 and
businesses 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 and the effects of foreign exchange rates 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 rules, 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 outdoor markets and businesses 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 outdoor markets and businesses 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 outdoor markets and
businesses 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, excludingeffects of
foreignexchange
Effects of foreignexchange
OIBDAN
(subtotal)
Non-cash
compensation
expenses
Depreciation
and
amortization
Impairment charges Other
operating
(income)
expense, net
Operating
income (loss)
Three Months Ended December 31, 2016 iHM $ 377,121 $ —
$ 377,121 $ — $ 61,458 $ — $ — $ 315,663 Americas
Outdoor 140,448 (119 )
140,329 — 44,771 — — 95,558
International Outdoor 105,646 (5,902 )
99,744 — 39,683 — —
60,061 Other 29,701 —
29,701 — 4,495 — — 25,206 Corporate
(87,697 ) 1,756
(85,941 ) 2,776 8,767 — — (97,484 )
Impairment charges — —
— — — — — — Other operating income,
net — —
— — — — (133,788 ) 133,788 Eliminations (921 ) —
(921 ) — — — — (921 )
Consolidated
$ 564,298 $ (4,265
) $ 560,033 $ 2,776
$ 159,174 $ —
$ (133,788 ) $ 531,871
Three Months Ended December 31, 2015 iHM $ 369,823 $ —
$ 369,823 $ — $ 60,504 $ — $ — $ 309,319 Americas
Outdoor 151,440 —
151,440 — 52,940 — — 98,500 International
Outdoor 94,459 —
94,459 — 41,099 — — 53,360 Other 17,266 —
17,266 — 3,780 — — 13,486 Corporate (79,502 ) —
(79,502 ) 3,005 10,501 — — (93,008 ) Impairment
charges — —
— — — — — — Other operating expense, net —
—
— — — — 4,693
(4,693 ) Consolidated
$ 553,486
$ — $ 553,486 $
3,005 $ 168,824 $
— $ 4,693 $
376,964 Year Ended December 31, 2016 iHM $
1,324,579 $ —
$ 1,324,579 $ — $ 243,964 $ — $ — $
1,080,615 Americas Outdoor 484,685 (1,997 )
482,688 —
185,654 — — 297,034 International Outdoor 275,592 (6,656 )
268,936 — 152,758 — — 116,178 Other 60,715 —
60,715 —
17,304 — — 43,411 Corporate (332,068 ) 4,129
(327,939
) 13,086 35,547 — — (376,572 ) Impairment charges — —
— — — 8,000 — (8,000 ) Other operating income, net —
— — — — (353,556 ) 353,556 Eliminations (1,531 )
(1,531 ) — — — — (1,531 )
Consolidated
$ 1,811,972 $
(4,524 ) $ 1,807,448 $
13,086 $ 635,227 $
8,000 $ (353,556 ) $
1,504,691 Year Ended December 31, 2015 iHM $
1,246,317 $ —
$ 1,246,317 $ — $ 240,207 $ — $ — $
1,006,110 Americas Outdoor 518,385 —
518,385 — 204,514 — —
313,871 International Outdoor 261,413 —
261,413 — 166,060 —
— 95,353 Other 39,936 —
39,936 — 20,622 — — 19,314 Corporate
(304,076 ) —
(304,076 ) 10,923 42,588 — — (357,587 )
Impairment charges — —
— — — 21,631 — (21,631 ) Other
operating income, net — —
— — —
— (94,001 ) 94,001 Consolidated
$
1,761,975 $ — $
1,761,975 $ 10,923 $
673,991 $ 21,631 $
(94,001 ) $ 1,149,431
Reconciliation of Revenues, excluding
effects of foreign exchange rates, to Revenues
(In thousands) Three Months EndedDecember 31, %
Change
Year EndedDecember 31, %
Change
2016 2015 2016 2015 Consolidated revenue $ 1,721,118
$ 1,717,579 0.2 % $ 6,273,573 $ 6,241,516 0.5 % Excluding: Foreign
exchange decrease 19,772 — 47,615 —
Consolidated revenue, excluding effects of foreign exchange
$ 1,740,890 $ 1,717,579
1.4 % $ 6,321,188 $
6,241,516 1.3 % Americas Outdoor
revenue $ 347,355 $ 364,536 (4.7 )% $ 1,278,413 $ 1,349,021 (5.2 )%
Excluding: Foreign exchange decrease (141 ) — 7,721 —
Americas Outdoor revenue, excluding effects of foreign
exchange
$ 347,214 $ 364,536
(4.8 )% $ 1,286,134
$ 1,349,021 (4.7 )%
International Outdoor revenue $ 379,116 $ 407,529 (7.0 )% $
1,423,982 $ 1,457,183 (2.3 )% Excluding: Foreign exchange decrease
19,913 — 39,894 — International Outdoor
revenue, excluding effects of foreign exchange
$
399,029 $ 407,529 (2.1
)% $ 1,463,876 $
1,457,183 0.5 %
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 EndedDecember 31, %Change Year
EndedDecember 31, %
Change
2016 2015 2016 2015 Consolidated direct operating and
SG&A expenses $ 1,075,144 $ 1,084,591 (0.9 )% $ 4,138,186 $
4,175,465 (0.9 )% Excluding: Foreign exchange decrease 13,751
— 38,962 — Consolidated direct
operating and SG&A expenses, excluding effects of foreign
exchange
$ 1,088,895 $ 1,084,591
0.4 % $ 4,177,148
$ 4,175,465 — % Americas Outdoor
direct operating and SG&A expenses $ 207,026 $ 213,096 (2.8 )%
$ 795,725 $ 830,636 (4.2 )% Excluding: Foreign exchange decrease
(260 ) — 5,724 — Americas Outdoor direct
operating and SG&A expenses, excluding effects of foreign
exchange
$ 206,766 $ 213,096
(3.0 )% $ 801,449
$ 830,636 (3.5 )% International
Outdoor direct operating and SG&A expenses $ 279,372 $ 313,070
(10.8 )% $ 1,155,046 $ 1,195,770 (3.4 )% Excluding: Foreign
exchange decrease 14,011 — 33,238 —
International Outdoor direct operating and SG&A expenses,
excluding effects of foreign exchange
$ 293,383
$ 313,070 (6.3 )%
$ 1,188,284 $ 1,195,770
(0.6 )%
Reconciliation of Revenues, excluding
Political Advertising Revenues, to Revenues
(In thousands) Three Months EndedDecember 31, %Change Year
EndedDecember 31, %
Change
2016 2015 2016 2015 Consolidated revenue $ 1,721,118
$ 1,717,579 0.2 % $ 6,273,573 $ 6,241,516 0.5 % Excluding:
Political revenue (49,784 ) (11,224 ) (95,032 ) (28,589 )
Consolidated revenue, excluding effects of political revenue
$ 1,671,334 $ 1,706,355
(2.1 )% $ 6,178,541 $
6,212,927 (0.6 )% iHM revenue $
939,141 $ 898,953 4.5 % $ 3,403,040 $ 3,284,320 3.6 % Excluding:
Political revenue (28,276 ) (7,957 ) (57,781 ) (19,923 ) iHM
revenue excluding, effects of political revenue
$
910,865 $ 890,996 2.2
% $ 3,345,259 $ 3,264,397
2.5 % Americas Outdoor revenue $
347,355 $ 364,536 (4.7 )% $ 1,278,413 $ 1,349,021 (5.2 )%
Excluding: Political revenue (863 ) (820 ) (2,472 ) (3,352 )
Americas Outdoor revenue, excluding effects of political revenue
$ 346,492 $ 363,716
(4.7 )% $ 1,275,941 $
1,345,669 (5.2 )% Other revenue
$ 56,930 $ 46,795 21.7 % $ 171,593 $ 153,736 11.6 % Excluding:
Political revenue (20,645 ) (2,447 ) (34,779 ) (5,314 ) Other
revenue, excluding effects of political revenue
$
36,285 $ 44,348 (18.2
)% $ 136,814 $ 148,422
(7.8 )%
Reconciliation of Corporate Expenses,
excluding Non-cash compensation expenses and effects of foreign
exchange Rates, to Corporate Expenses
(In thousands) Three Months EndedDecember 31, %
Change
Year EndedDecember 31, %
Change
2016 2015 2016 2015 Corporate Expense $ 88,717 $
82,507 7.5 % $ 341,025 $ 314,999 8.3 % Excluding: Non-cash
compensation expense (2,776 ) (3,005 ) (13,086 ) (10,923 )
Corporate Expense, excluding non-cash compensation expense
$
85,941 $ 79,502 8.1 % $
327,939 $ 304,076 7.8 %
Excluding: Foreign exchange decrease 1,756 — 4,129
Corporate Expense, excluding non-cash compensation
expense and movements in foreign exchange
$ 87,697
$ 79,502 10.3 % $
332,068 $ 304,076 9.2
%
Reconciliation of Consolidated and
Outdoor Revenues, excluding effects of foreign exchange rates and
results from outdoor markets and businesses sold, to Consolidated
and Outdoor Revenues
(In thousands) Three Months EndedDecember 31, %Change Year
EndedDecember 31, %Change 2016 2015 2016 2015
Consolidated revenue $ 1,721,118 $ 1,717,579 0.2 % $ 6,273,573 $
6,241,516 0.5 % Excluding: Revenue from outdoor markets and
businesses sold (10,607 ) (69,510 ) (123,510 ) (248,866 )
Excluding: Foreign exchange decrease 19,772 — 47,615
— Consolidated revenue, excluding effects of foreign
exchange and revenue from outdoor markets and businesses sold
$ 1,730,283 $ 1,648,069
5.0 % $ 6,197,678 $
5,992,650 3.4 % Americas Outdoor
revenue $ 347,355 $ 364,536 (4.7 )% $ 1,278,413 $ 1,349,021 (5.2 )%
Excluding: Revenue from non-strategic markets sold — (27,883 )
(2,470 ) (105,174 ) Excluding: Foreign exchange decrease (141 ) —
7,721 — Americas Outdoor revenue, excluding
effects of foreign exchange and revenue from non-strategic markets
sold
$ 347,214 $ 336,653
3.1 % $ 1,283,664 $
1,243,847 3.2 % International Outdoor
revenue $ 379,116 $ 407,529 (7.0 )% $ 1,423,982 $ 1,457,183 (2.3 )%
Excluding: Revenue from businesses sold (10,607 ) (41,627 )
(121,040 ) (143,692 ) Excluding: Foreign exchange decrease 19,913
— 39,894 — International Outdoor
revenue, excluding effects of foreign exchange and revenue from
businesses sold
$ 388,422 $
365,902 6.2 % $ 1,342,836
$ 1,313,491 2.2 %
Reconciliation of Consolidated and
Outdoor Direct operating and SG&A expenses, excluding effects
of foreign exchange rates and results from outdoor markets and
businesses sold, to Consolidated and Outdoor Direct operating and
SG&A expenses
(In thousands) Three Months EndedDecember 31, %Change Year
EndedDecember 31, %Change 2016 2015 2016 2015
Consolidated direct operating and SG&A expenses $ 1,075,144 $
1,084,591 (0.9 )% $ 4,138,186 $ 4,175,465 (0.9 )% Excluding:
Operating expenses from outdoor markets and businesses sold (7,406
) (43,614 ) (97,761 ) (171,014 ) Excluding: Foreign exchange
decrease 13,751 — 38,962 — Consolidated
direct operating and SG&A expenses, excluding effects of
foreign exchange and operating expenses from outdoor markets and
businesses sold
$ 1,081,489 $
1,040,977 3.9 % $
4,079,387 $ 4,004,451 1.9
% Americas Outdoor direct operating and SG&A expenses $
207,026 $ 213,096 (2.8 )% $ 795,725 $ 830,636 (4.2 )% Excluding:
Operating expenses from non-strategic markets sold — (14,643 )
(1,770 ) (57,560 ) Excluding: Foreign exchange decrease (260 ) —
5,724 — Americas Outdoor direct operating and
SG&A expenses, excluding effects of foreign exchange and
operating expenses from non-strategic markets sold
$
206,766 $ 198,453 4.2
% $ 799,679 $ 773,076
3.4 % International Outdoor direct operating
and SG&A expenses $ 279,372 $ 313,070 (10.8 )% $ 1,155,046 $
1,195,770 (3.4 )% Excluding: Operating expenses from businesses
sold (7,406 ) (28,971 ) (95,991 ) (113,454 ) Excluding: Foreign
exchange decrease 14,011 — 33,238 —
International Outdoor direct operating and SG&A expenses,
excluding effects of foreign exchange and operating expenses from
businesses sold
$ 285,977 $
284,099 0.7 % $ 1,092,293
$ 1,082,316 0.9 %
Reconciliation of Consolidated and
Outdoor OIBDAN, excluding effects of foreign exchange rates and
results from outdoor markets and businesses sold, to Consolidated
and Outdoor Operating income
(In thousands) Three Months EndedDecember 31, %Change Year
EndedDecember 31, %Change 2016 2015 2016 2015
Consolidated operating income $ 531,871 $ 376,964 41.1 % $
1,504,691 $ 1,149,431 30.9 % Excluding: Revenue, direct operating
and SG&A expenses from outdoor markets and businesses sold
(3,201 ) (25,896 ) (25,749 ) (77,852 ) Excluding: Foreign exchange
decrease 4,265 — 4,524 — Excluding: Non-cash compensation expenses
2,776 3,005 13,086 10,923 Excluding: Depreciation and amortization
159,174 168,824 635,227 673,991 Excluding: Impairment — — 8,000
21,631 Excluding: Other operating (income) expense, net (133,788 )
4,693 (353,556 ) (94,001 ) Consolidated OIBDAN, excluding
effects of foreign exchange and OIBDAN from outdoor markets and
businesses sold
$ 561,097 $
527,590 6.4 % $ 1,786,223
$ 1,684,123 6.1 %
Americas Outdoor operating income $ 95,558 $ 98,500 (3.0 )% $
297,034 $ 313,871 (5.4 )% Excluding: Revenue, direct operating and
SG&A expenses from non-strategic markets sold — (13,240 ) (700
) (47,614 ) Excluding: Foreign exchange decrease 119 — 1,997 —
Excluding: Depreciation and amortization 44,771 52,940
185,654 204,514 Americas Outdoor OIBDAN,
excluding effects of foreign exchange and OIBDAN from non-strategic
markets sold
$ 140,448 $ 138,200
1.6 % $ 483,985 $
470,771 2.8 % International Outdoor
operating income $ 60,061 $ 53,360 12.6 % $ 116,178 $ 95,353 21.8 %
Excluding: Revenue, direct operating and SG&A expenses of
businesses sold (3,201 ) (12,656 ) (25,049 ) (30,238 ) Excluding:
Foreign exchange decrease 5,902 — 6,656 — Excluding: Depreciation
and amortization 39,683 41,099 152,758 166,060
International Outdoor OIBDAN, excluding effects of foreign
exchange and OIBDAN from businesses sold
$ 102,445
$ 81,803 25.2 % $
250,543 $ 231,175 8.4
%
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 855 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 590,000 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
anticipated cost savings from the Company's strategic revenue and
efficiency initiatives may not persist. 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170223005465/en/
iHeartMedia, Inc.MediaWendy
Goldberg, 212-377-1105Executive Vice President –
CommunicationsorInvestorsEileen
McLaughlin, 212-377-1116Vice President – Investor Relations
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