[February 19, 2015] |
|
iHeartMedia, Inc. Reports Results for 2014 Fourth Quarter and Full Year
iHeartMedia, Inc. (OTCBB:IHRT) today reported financial results for the
fourth quarter and full year ended December 31, 2014.
"Throughout 2014, we further strengthened iHeartMedia's position as the
leading media and entertainment company in the digital age - building on
our one-of-a-kind multi-platform assets that deliver unparalleled reach,
scale and impact. We continue to develop powerful marketing solutions
for our advertising and brand partners while providing the most live
entertainment - with more content and more events in more places on more
devices - to the industry's most engaged audiences, wherever they are,"
Chairman and Chief Executive Officer Bob Pittman said. "We once again
outperformed the broadcast radio market last year, a testament to our
ability to attract advertising dollars to our platform. At iHeartRadio,
we recently surpassed 60 million registered users, growing faster than
any other digital radio or music service, and our social media presence
is stronger than ever with more than 70 million social followers. At
outdoor, we saw steady improvement this year in our domestic business,
while continuing our strong momentum internationally. We look forward to
more progress in 2015, as we continue to run our businesses more
efficiently than ever and launch innovative initiatives across our
unique mix of broadcast radio, digital, mobile, social and event
platforms."
The Company also announced today that Richard Bressler, currently
iHeartMedia, Inc.'s President and CFO, is adding the title of Chief
Operating Officer for iHeartMedia, Inc. in order to better reflect his
actual role and responsibilities since joining the Company in August
2013.
"Since joining us internally at iHeartMedia, Inc. in 2013, Rich has been
an enormously valuable partner, both for me and for our entire company,"
said Pittman. "In the last year we have made incredible strides, and
Rich has played an important role in operations and finance, as well as
strategy, for all of iHeartMedia, Inc. We're delighted to recognize his
contributions by adding this title, which better reflects the impact he
has made and will continue to make."
"Both iHeartMedia and our Outdoor business delivered revenue and OIBDAN
growth in 2014, even in the face of a challenging first half of the
year," said Rich Bressler, President, Chief Financial and Operating
Officer of iHeartMedia, Inc. "Our focus on improving operating
efficiency resulted in virtually flat expenses year over year and OIBDAN
growth of 3%. We continued to execute on our revenue and efficiency
initiatives that are building a strong foundation for our long-term
success, and most importantly, our capital markets activities over the
past months - including refinancing approximately $1 billion of our term
loans and announcing the sale of a select portfolio of tower assets for
up to $400 million - have given us even more financial and operating
flexibility."
Full Year 2014 Results
Consolidated revenues increased 2% to $6.3 billion in 2014 compared to
2013 after adjusting for a $23 million unfavorable impact from movements
in foreign exchange rates. Growth at iHeartMedia, International outdoor
and our media representation business was partially offset by a decline
at Americas outdoor. On a reported basis, consolidated revenue increased
1%.
-
iHeartMedia revenues increased $30 million, or 1%, compared to 2013,
driven primarily by political advertising, our traffic and weather
business and core national broadcast radio. Higher revenues were
partially offset by lower core local broadcast radio and syndication
revenues.
-
Americas outdoor revenues decreased $34 million, or 3%, compared to
2013, after adjusting for a $3 million unfavorable impact from
movements in foreign exchange rates. On a reported basis, revenues
decreased $37 million, or 3%, compared to 2013. Revenue decrease was
driven primarily by lower national advertising and lower revenues in
our Los Angeles market as a result of our digital boards that became
inactive in April 2013. Growth in digital revenues was partially
offset by decreases in revenues from traditional product lines.
-
International outdoor revenues increased $72 million, or 4%, after
adjusting for a $19 million unfavorable impact from movements in
foreign exchange rates. On a reported basis, revenues increased $52
million, or 3%, compared to 2013. Revenue growth was driven primarily
by strong performance in Italy, Sweden, France and the UK, as well as
in emerging markets, including China and Mexico.
The Company's OIBDAN1 was up 3% to $1.8 billion in 2014
compared to 2013, both on a reported basis and excluding the effects of
movements in foreign exchange rates. Included in the full year 2014
OIBDAN were $37 million of operating expenses and $34 million of
corporate expenses related to the Company's strategic revenue and
efficiency initiatives to generate additional advertising dollars and
improve operating efficiencies, compared to $37 million and $21 million
of such expenses in 2013, respectively. The growth in OIBDAN was
impacted by $20 million of litigation expenses in 2014 compared to $23
million in 2013.
The Company's consolidated net loss totaled $762 million for 2014
compared to a consolidated net loss of $584 million in 2013, due
primarily to higher interest expense, higher tax expense resulting from
a valuation allowance required in the current year and a gain on sale of
marketable securities in 2013, partially offset by increases in
operating income resulting from higher revenue.
Fourth Quarter 2014 Results
Consolidated revenues increased 3% to $1.8 billion compared to the
fourth quarter of 2013 after adjusting for a $34 million unfavorable
impact from movements in foreign exchange rates. On a reported basis,
consolidated revenues increased 1% to $1.7 billion.
-
iHeartMedia revenues increased $9 million, or 1%, driven primarily by
political advertising and our traffic and weather business. Higher
revenues were partially offset by lower core local broadcast radio and
syndication revenues.
-
Americas outdoor revenue decreased $1 million, or nearly flat, year
over year, after adjusting for a $1 million unfavorable impact from
movements in foreign exchange rates. On a reported basis, revenues
decreased $2 million, or 1%, compared to 2013. The decrease was driven
primarily by lower national revenues. Higher digital revenues were
more than offset by a decrease in revenues from traditional product
lines.
-
International outdoor revenues increased $31 million, or 7%, after
adjusting for a $33 million unfavorable impact from movements in
foreign exchange rates. On a reported basis, revenues were down $2
million, or nearly flat, year over year. Revenue growth was driven
primarily by strong performance in Europe as well as emerging markets,
including China and Mexico.
After adjusting for the movements in foreign exchange, the Company's
OIBDAN1 was up 7.5% in the fourth quarter, compared to the
same period in 2013. On a reported basis, OIBDAN was up 6% to $562
million for the quarter compared to the same period in 2013.
Consolidated operating expenses decreased primarily as a result of lower
expenses at iHeartMedia, resulting primarily from execution of
efficiency initiatives, partially offset by higher variable expenses at
International outdoor in connection with higher revenues. Corporate
expenses increased $19 million. Included in the 2014 fourth quarter
OIBDAN were $11 million of operating expenses and $9 million of
corporate expenses associated with the Company's strategic revenue and
efficiency initiatives, compared to $12 million and $6 million of such
expenses in the prior year, respectively. OIBDAN growth was impacted by
$17 million of litigation expense during the fourth quarter of 2014
compared to $2 million in the fourth quarter of 2013.
The Company's consolidated net loss was $50 million in the fourth
quarter of 2014 compared to a consolidated net loss of $302 million in
the same period of 2013. The decrease was due primarily to higher
operating income, resulting primarily from higher revenue and the impact
of equity in losses of nonconsolidated affiliates and a loss on
extinguishment of debt recognized in the fourth quarter of 2013. These
increases were partially offset by higher interest expense in the fourth
quarter of 2014 as compared to the prior year.
Key Highlights
The Company's recent key highlights include:
iHeartMedia
-
Surpassing 60 million iHeartRadio registered users, as of January
2015, growing 37% year over year. iHeartRadio's total listening hours
were up 14% over the fourth quarter of 2013, while downloads and
upgrades increased to 513 million. Mobile represented 60% of
iHeartRadio's total listening hours during the fourth quarter of 2014.
iHeartRadio's brand awareness reached 75% in December, an impressive
milestone in just three years.
-
Launching "iHeartMedia SoundBoard," a new multiplatform, audio-centric
branded content studio that will invite brands to collaborate with
iHeartMedia's portfolio of talent and personalities to produce
original long- and short-form audio, video and experiential
storytelling that moves seamlessly across radio, apps and events.
-
Launching seven new integration partnerships with connected home,
automotive, gaming and other brands that will feature iHeartRadio on
more than a dozen new devices in the marketplace - including the new
Google Cast Ready for Audio; Sony's PlayStation®4 and PlayStation®3
systems, and select TiVo devices, among others.
-
Staging the first-ever iHeartRadio Fiesta Latina on November 22 in
Los Angeles, featuring live performances by Latin music's biggest
superstars including Pitbull and Ricky Martin, among many others.
Fiesta Latina sponsorship partners included Sprint, Chase, Corona,
Ford, JCPenney, Pepsi and State Farm®.
-
Staging the second annual iHeartRadio Country Music Festival in
Austin, Texas, featuring live performances from country music's
biggest superstars, including Tim McGraw, Rascal Flatts and Brad
Paisley, among others. This year's show will be hosted by
iHeartMedia's nationally-syndicated Country music personality Bobby
Bones.
-
Announcing the iHeartRadio Music Awards will return for its second
year on Sunday, March 29 from LA's historic Shrine Auditorium. The
show will again be broadcast on NBC, and carried live simultaneously
on iHeartMedia stations nationwide and across the iHeartRadio digital
music platform.
-
Announcing the first-ever iHeartRadio Ultimate Valentine's Escape at
Paris Las Vegas, the newest of iHeartMedia's roster of successful
nationally-recognized events. The weekend will feature live intimate
performances by John Legend and OneRepublic.
-
Naming Adam Denenberg as Chief Technology Officer of the iHeartRadio
Network, responsible for developing and executing on new technology
initiatives that create dynamic experiences for iHeartRadio listeners,
advertisers and partners. Denenberg joined iHeartMedia from The
Huffington Post.
Outdoor
-
Installed over 300 new digital displays in international markets for
an end of quarter total of over 4,700 displays and 50 new digital
billboards in North America for an end of quarter total of 1,175
across 37 markets.
-
Becoming exclusive sales agent for the largest, most technically
advanced billboard in Manhattan's Times Square. Spanning a full city
block in one of the most visited, photographed and filmed locations in
the world, the new 25,000 square-foot billboard creates a powerful
value proposition for advertisers.
-
Winning the Glasgow street furniture contract in which 600 city-owned
bus shelters will be fitted with Clear Channel's "Connect" mobile
platform enabling consumers to engage with advertisers by accessing
interactive content via their smartphones.
-
Announcing the nationwide expansion of Clear Channel's super premium
digital portfolio in the UK. The state-of-the-art screens, which will
be connected through a centralized data management system, will give
the world's biggest brands the chance to target valuable
audiences through campaigns that are easier to plan and easier to buy.
|
Revenues, Operating Expenses and OIBDAN
by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
Three Months Ended
December 31,
|
|
%
Change
|
|
|
Year Ended
December 31,
|
|
%
Change
|
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
Revenue1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iHM
|
|
$
|
854,311
|
|
|
$
|
845,555
|
|
|
1
|
%
|
|
$
|
3,161,503
|
|
|
$
|
3,131,595
|
|
|
1
|
%
|
|
Americas Outdoor
|
|
|
335,786
|
|
|
|
337,620
|
|
|
(1
|
%)
|
|
|
1,253,190
|
|
|
|
1,290,452
|
|
|
(3
|
%)
|
|
International Outdoor
|
|
|
466,223
|
|
|
|
468,476
|
|
|
(0
|
%)
|
|
|
1,708,069
|
|
|
|
1,655,738
|
|
|
3
|
%
|
|
Other
|
|
|
76,683
|
|
|
|
60,086
|
|
|
28
|
%
|
|
|
260,920
|
|
|
|
227,864
|
|
|
15
|
%
|
|
Eliminations
|
|
|
(17,206
|
)
|
|
|
(17,370
|
)
|
|
|
|
|
(65,149
|
)
|
|
|
(62,605
|
)
|
|
|
Consolidated revenue
|
|
$
|
1,715,797
|
|
|
$
|
1,694,367
|
|
|
1
|
%
|
|
$
|
6,318,533
|
|
|
$
|
6,243,044
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses1,2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iHM
|
|
$
|
507,629
|
|
|
$
|
522,291
|
|
|
(3
|
%)
|
|
$
|
1,973,667
|
|
|
$
|
1,962,741
|
|
|
1
|
%
|
|
Americas Outdoor
|
|
|
195,033
|
|
|
|
202,493
|
|
|
(4
|
%)
|
|
|
767,583
|
|
|
|
787,401
|
|
|
(3
|
%)
|
|
International Outdoor
|
|
|
342,048
|
|
|
|
349,946
|
|
|
(2
|
%)
|
|
|
1,377,824
|
|
|
|
1,350,899
|
|
|
2
|
%
|
|
Other
|
|
|
42,278
|
|
|
|
41,421
|
|
|
2
|
%
|
|
|
167,638
|
|
|
|
165,512
|
|
|
1
|
%
|
|
Eliminations
|
|
|
(17,206
|
)
|
|
|
(17,370
|
)
|
|
|
|
|
(65,139
|
)
|
|
|
(62,605
|
)
|
|
|
Consolidated operating expenses
|
|
$
|
1,069,782
|
|
|
$
|
1,098,781
|
|
|
(3
|
%)
|
|
$
|
4,221,573
|
|
|
$
|
4,203,948
|
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OIBDAN1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iHM
|
|
$
|
346,822
|
|
|
$
|
323,264
|
|
|
7
|
%
|
|
$
|
1,188,054
|
|
|
$
|
1,168,854
|
|
|
2
|
%
|
|
Americas Outdoor
|
|
|
140,753
|
|
|
|
135,127
|
|
|
4
|
%
|
|
|
485,607
|
|
|
|
503,051
|
|
|
(3
|
%)
|
|
International Outdoor
|
|
|
124,175
|
|
|
|
118,530
|
|
|
5
|
%
|
|
|
330,245
|
|
|
|
304,839
|
|
|
8
|
%
|
|
Other
|
|
|
34,405
|
|
|
|
18,665
|
|
|
84
|
%
|
|
|
93,282
|
|
|
|
62,352
|
|
|
50
|
%
|
|
Corporate1,3
|
|
|
(83,860
|
)
|
|
|
(65,190
|
)
|
|
|
|
|
(308,232
|
)
|
|
|
(296,799
|
)
|
|
|
Consolidated OIBDAN
|
|
$
|
562,295
|
|
|
$
|
530,396
|
|
|
6
|
%
|
|
$
|
1,788,956
|
|
|
$
|
1,742,297
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues, Operating Expenses and OIBDAN
by Segment Excluding Movements in Foreign Exchange1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
Three Months Ended
December 31,
|
|
%
Change
|
|
|
Year Ended
December 31,
|
|
%
Change
|
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
Revenue1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iHM
|
|
$
|
854,311
|
|
|
$
|
845,555
|
|
|
1
|
%
|
|
$
|
3,161,503
|
|
|
$
|
3,131,595
|
|
|
1
|
%
|
|
Americas Outdoor
|
|
|
336,952
|
|
|
|
337,620
|
|
|
(0
|
%)
|
|
|
1,256,610
|
|
|
|
1,290,452
|
|
|
(3
|
%)
|
|
International Outdoor
|
|
|
499,322
|
|
|
|
468,476
|
|
|
7
|
%
|
|
|
1,727,326
|
|
|
|
1,655,738
|
|
|
4
|
%
|
|
Other
|
|
|
76,683
|
|
|
|
60,086
|
|
|
28
|
%
|
|
|
260,920
|
|
|
|
227,864
|
|
|
15
|
%
|
|
Eliminations
|
|
|
(17,206
|
)
|
|
|
(17,370
|
)
|
|
|
|
|
(65,149
|
)
|
|
|
(62,605
|
)
|
|
|
Consolidated revenue
|
|
$
|
1,750,062
|
|
|
$
|
1,694,367
|
|
|
3
|
%
|
|
$
|
6,341,210
|
|
|
$
|
6,243,044
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses1,2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iHM
|
|
$
|
507,629
|
|
|
$
|
522,291
|
|
|
(3
|
%)
|
|
$
|
1,973,667
|
|
|
$
|
1,962,741
|
|
|
1
|
%
|
|
Americas Outdoor
|
|
|
195,976
|
|
|
|
202,493
|
|
|
(3
|
%)
|
|
|
770,548
|
|
|
|
787,401
|
|
|
(2
|
%)
|
|
International Outdoor
|
|
|
367,245
|
|
|
|
349,946
|
|
|
5
|
%
|
|
|
1,391,332
|
|
|
|
1,350,899
|
|
|
3
|
%
|
|
Other
|
|
|
42,278
|
|
|
|
41,421
|
|
|
2
|
%
|
|
|
167,638
|
|
|
|
165,512
|
|
|
1
|
%
|
|
Eliminations
|
|
|
(17,206
|
)
|
|
|
(17,370
|
)
|
|
|
|
|
(65,139
|
)
|
|
|
(62,605
|
)
|
|
|
Consolidated operating expenses
|
|
$
|
1,095,922
|
|
|
$
|
1,098,781
|
|
|
(0
|
%)
|
|
$
|
4,238,046
|
|
|
$
|
4,203,948
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OIBDAN1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iHM
|
|
$
|
346,822
|
|
|
$
|
323,264
|
|
|
7
|
%
|
|
$
|
1,188,054
|
|
|
$
|
1,168,854
|
|
|
2
|
%
|
|
Americas Outdoor
|
|
|
140,976
|
|
|
|
135,127
|
|
|
4
|
%
|
|
|
486,062
|
|
|
|
503,051
|
|
|
(3
|
%)
|
|
International Outdoor
|
|
|
132,078
|
|
|
|
118,530
|
|
|
11
|
%
|
|
|
335,994
|
|
|
|
304,839
|
|
|
10
|
%
|
|
Other
|
|
|
34,405
|
|
|
|
18,665
|
|
|
84
|
%
|
|
|
93,282
|
|
|
|
62,352
|
|
|
50
|
%
|
|
Corporate1,3
|
|
|
(84,140
|
)
|
|
|
(65,190
|
)
|
|
|
|
|
(305,715
|
)
|
|
|
(296,799
|
)
|
|
|
Consolidated OIBDAN
|
|
$
|
570,141
|
|
|
$
|
530,396
|
|
|
7
|
%
|
|
$
|
1,797,677
|
|
|
$
|
1,742,297
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain prior period amounts have been reclassified to conform to the
2014 presentation of financials throughout the press release.
1 See the end of this press release for reconciliations of
(i) OIBDAN for each segment to consolidated operating income (loss);
(ii) revenues excluding effects of foreign exchange to revenues;
(iii) direct operating and SG&A expenses excluding effects of foreign
exchange to expenses; (iv) OIBDAN excluding effects of foreign exchange
to OIBDAN; (v) revenues excluding effects of political revenues to iHM
revenues; (vi) corporate expenses excluding non-cash compensation
expenses to corporate expenses; and (vii) OIBDAN to net income (loss).
See also the definition of OIBDAN under the Supplemental Disclosure
section in this release.
2 The Company's operating expenses include direct operating
expenses and SG&A expenses.
3 Includes Corporate for Clear Channel Outdoor Holdings, Inc.
of $31 million and $123 million for the three months and year ended
December 31, 2014, respectively. Includes Corporate for Clear Channel
Outdoor Holdings, Inc. of $31 million and $117 million for the three
months and year ended December 31, 2013, respectively.
iHeartMedia
iHeartMedia revenues increased $30 million, or 1%, in 2014, driven
primarily by political advertising, our traffic and weather business and
the impact of strategic sales initiatives, and higher core national
broadcast revenues, including events and digital revenue. Digital
streaming revenue was higher for the year as a result of increased
advertising on our iHeartRadio platform. Partially offsetting these
increases was a decrease in core local broadcast radio and syndication
revenues.
Operating expenses rose $11 million in 2014 compared to the previous
year, driven primarily by higher compensation expense, including
commissions, higher programming and content costs and higher spending on
revenue and efficiency initiatives. These increases were partially
offset by lower costs in our national syndication business.
OIBDAN increased $19 million, or 2%, to $1,188 million in 2014 compared
to 2013. Included in 2014 OIBDAN are $20 million in expenses related to
investments in strategic revenue and efficiency initiatives compared to
$10 million in 2013.
Americas Outdoor
Americas outdoor revenues declined $34 million, or 3%, in 2014 compared
to prior year, after adjusting for a $3 million unfavorable impact from
movements in foreign exchange rates. On a reported basis, revenues
declined $37 million, or 3% over prior year. Lower spending by national
accounts and the nonrenewal of certain airport contracts drove revenues
lower. These declines were partially offset by higher revenues in
digital displays due to greater capacity. Partially offsetting the
growth of digital was the absence of revenue from digital boards in Los
Angeles that were turned off due to a court ruling.
Operating expenses decreased $17 million, or 2%, in 2014 compared to
prior year, after adjusting for a $3 million unfavorable impact from
movements in foreign exchange rates. On a reported basis, operating
expenses declined $20 million, or 3% over prior year. Operating expenses
in 2014 reflected a decline in variable expenses, such as site lease and
commission expenses related to lower revenues. Expenses in 2014 also
included a $3 million decline related to spending on strategic revenue
and efficiency initiatives.
OIBDAN decreased $17 million, or 3%, to $486 million in 2014 compared to
the prior year. OIBDAN in 2014 included approximately $3 million of
expenses related to certain investments in strategic revenue and
efficiency initiatives compared to $6 million in 2013.
International Outdoor
International outdoor revenues rose $72 million, or 4%, in 2014 compared
to the prior year, after adjusting for a $19 million unfavorable impact
from movements in foreign exchange rates. On a reported basis, revenues
increased $52 million, or 3% over prior year. The increase in revenue
was driven primarily by growth in Europe including Italy, related to a
new contract for the Rome airports, as well as growth in Sweden, France,
and the UK. Revenue in emerging markets also increased, primarily driven
by strong performance in China and Mexico.
Operating expenses increased $40 million, or 3%, in 2014 compared to the
prior year, after adjusting for a $14 million unfavorable impact from
movements in foreign exchange rates. On a reported basis, operating
expenses increased $27 million, or 2% over prior year. Operating
expenses increased due to higher variable costs associated with new
contracts, including the Rome airports contract in Italy, and higher
compensation in connection with higher revenues, as well as higher
litigation expenses.
OIBDAN increased $31 million, or 10%, in 2014 compared to the prior
year, after adjusting for a $6 million unfavorable impact from movements
in foreign exchange rates. On a reported basis, OIBDAN was up
$25 million, or 8%, compared to prior year.
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 19, 2015, at 8:30 a.m. Eastern Time. The conference
call number is (800) 260-0718 (U.S. callers) and (612) 288-0318
(International callers) and the passcode for both is 352334. 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 30 days.
The replay numbers are (800) 475-6701 (U.S. callers) and (320) 365-3844
(International callers) and the passcode for both is 352334. An archive
of the webcast will be available beginning 24 hours after the call for
30 days.
|
TABLE 1 - Financial Highlights of
iHeartMedia, Inc. and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Revenue
|
|
$
|
1,715,797
|
|
|
$
|
1,694,367
|
|
|
$
|
6,318,533
|
|
|
$
|
6,243,044
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating expenses
|
|
|
648,666
|
|
|
|
674,978
|
|
|
|
2,534,365
|
|
|
|
2,554,087
|
|
Selling, general and administrative expenses
|
|
|
421,116
|
|
|
|
423,803
|
|
|
|
1,687,208
|
|
|
|
1,649,861
|
|
Corporate expenses
|
|
|
87,228
|
|
|
|
67,812
|
|
|
|
320,331
|
|
|
|
313,514
|
|
Depreciation and amortization
|
|
|
186,100
|
|
|
|
191,582
|
|
|
|
710,898
|
|
|
|
730,828
|
|
Impairment charges
|
|
|
19,239
|
|
|
|
16,970
|
|
|
|
24,176
|
|
|
|
16,970
|
|
Other operating income (expense), net
|
|
|
(5,678
|
)
|
|
|
13,304
|
|
|
|
40,031
|
|
|
|
22,998
|
|
Operating income
|
|
|
347,770
|
|
|
|
332,526
|
|
|
|
1,081,586
|
|
|
|
1,000,782
|
|
Interest expense
|
|
|
437,261
|
|
|
|
418,014
|
|
|
|
1,741,596
|
|
|
|
1,649,451
|
|
Gain (loss) on marketable securities
|
|
|
-
|
|
|
|
(50
|
)
|
|
|
-
|
|
|
|
130,879
|
|
Equity in loss of nonconsolidated affiliates
|
|
|
(29
|
)
|
|
|
(91,291
|
)
|
|
|
(9,416
|
)
|
|
|
(77,696
|
)
|
Gain (loss) on extinguishment of debt
|
|
|
12,912
|
|
|
|
(83,980
|
)
|
|
|
(43,347
|
)
|
|
|
(87,868
|
)
|
Other income (expense), net
|
|
|
(7,211
|
)
|
|
|
(4,591
|
)
|
|
|
9,104
|
|
|
|
(21,980
|
)
|
Loss before income taxes
|
|
|
(83,819
|
)
|
|
|
(265,400
|
)
|
|
|
(703,669
|
)
|
|
|
(705,334
|
)
|
Income tax benefit (expense)
|
|
|
33,654
|
|
|
|
(36,833
|
)
|
|
|
(58,489
|
)
|
|
|
121,817
|
|
Consolidated net loss
|
|
|
(50,165
|
)
|
|
|
(302,233
|
)
|
|
|
(762,158
|
)
|
|
|
(583,517
|
)
|
Less: Amount attributable to noncontrolling interest
|
|
|
17,923
|
|
|
|
6,994
|
|
|
|
31,603
|
|
|
|
23,366
|
|
Net loss attributable to the Company
|
|
$
|
(68,088
|
)
|
|
$
|
(309,227
|
)
|
|
$
|
(793,761
|
)
|
|
$
|
(606,883
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, 2014, foreign exchange rate
movements decreased the Company's revenues by $34 million and decreased
direct operating expenses by $20 million and SG&A expenses by
$6 million. For the year ended December 31, 2014, foreign exchange rate
movements decreased the Company's revenues by $23 million and direct
operating expenses by $12 million and SG&A expenses by $4 million.
|
|
|
|
|
|
|
TABLE 2 - Selected Balance Sheet
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected balance sheet information for December 31, 2014 and 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
|
December 31,
|
|
|
2014
|
|
2013
|
Cash
|
|
$
|
457.0
|
|
|
$
|
708.2
|
|
Total Current Assets
|
|
|
2,180.1
|
|
|
|
2,513.3
|
|
Net Property, Plant and Equipment
|
|
|
2,699.1
|
|
|
|
2,897.6
|
|
Total Assets
|
|
|
14,040.2
|
|
|
|
15,097.3
|
|
|
|
|
|
|
|
|
Current Liabilities (excluding current portion of long term debt)
|
|
|
1,360.7
|
|
|
|
1,309.9
|
|
Long-term Debt (including current portion of long term debt)
|
|
|
20,326.0
|
|
|
|
20,484.2
|
|
Shareholders' Deficit
|
|
|
(9,665.2
|
)
|
|
|
(8,696.6
|
)
|
|
|
|
|
|
|
|
|
TABLE 3 - Total Debt
|
|
|
|
|
|
|
|
At December 31, 2014 and 2013, iHeartMedia, Inc. had total debt of:
|
|
|
|
|
|
|
|
(In millions)
|
|
December 31,
|
|
|
2014
|
|
2013
|
Senior Secured Credit Facilities
|
|
$
|
7,231.2
|
|
|
$
|
8,225.8
|
|
Receivables Based Facility
|
|
|
-
|
|
|
|
247.0
|
|
Priority Guarantee Notes
|
|
|
5,324.8
|
|
|
|
4,324.8
|
|
Subsidiary Revolving Credit Facility due 2018
|
|
|
-
|
|
|
|
-
|
|
Other Secured Subsidiary Debt
|
|
|
19.3
|
|
|
|
21.1
|
|
Total Secured Debt
|
|
|
12,575.3
|
|
|
|
12,818.7
|
|
|
|
|
|
|
|
|
Senior Cash Pay and Senior Toggle Notes
|
|
|
-
|
|
|
|
222.2
|
|
Senior Notes due 2021
|
|
|
1,661.7
|
|
|
|
1,404.2
|
|
iHeartCommunications Legacy Notes
|
|
|
667.9
|
|
|
|
1,436.5
|
|
Senior Notes due 2018
|
|
|
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
|
|
Other Subsidiary Debt
|
|
|
1.0
|
|
|
|
-
|
|
Purchase accounting adjustments and original issue discount
|
|
|
(234.9
|
)
|
|
|
(322.4
|
)
|
Total long term debt (including current portion of long-term debt)
|
|
$
|
20,326.0
|
|
|
$
|
20,484.2
|
|
|
|
|
|
|
|
|
The current portion of long-term debt was $4 million and $454
million as of December 31, 2014 and 2013, respectively.
|
|
Liquidity and Financial Position
For the year ended December 31, 2014, cash flow provided by operating
activities was $245 million, cash flow used for investing activities
totaled $89 million, cash flow used for financing activities was
$398 million, and the effect of exchange rate changes on cash totaled
$10 million. The net decrease in cash was $251 million.
Capital expenditures for the year ended December 31, 2014 were
approximately $318 million compared to $325 million in 2013.
On December 11, 2014, iHeartMedia announced that its subsidiary had
entered into an agreement with Vertical Bridge Acquisitions, LLC (the
"Buyer") for the sale of 411 of our broadcast communications tower sites
and related assets for up to $400.0 million (the "Tower Portfolio"). The
acquisition of the Tower Portfolio may occur in one or more closings,
and the transaction is subject to due diligence and other customary
closing conditions. The Buyer is required to acquire at least 85% of the
Tower Portfolio. Simultaneous with each closing of the sale of the
towers, we will enter into lease agreements for the continued use of the
subject towers. If all 411 towers are acquired, we will have annual
lease payments of approximately $22.7 million, a loss of annual tenant
revenues of approximately $11.6 million and a reduction of direct
operating expenses of approximately $3.8 million annually.
During the year ended December 31, 2014, subsidiaries of the Company
entered into the following debt transactions:
CCU Escrow Corporation (entity merged into
iHeartCommunications in 2014)
-
Issued $850 million aggregate principal amount of 10% Senior Notes due
2018
iHeartCommunications, Inc. (a subsidiary of
iHeartMedia, Inc.)
-
Repaid all $247 million outstanding under its receivables-based credit
facility
-
Retired $130 million aggregate principal amount of its 5.5% Senior
Notes due 2014 held by its subsidiary, CC Finco, LLC
-
Redeemed $567 million aggregate principal amount of its 5.5% Senior
Notes due 2014 and $241 million aggregate principal amount of its 4.9%
Senior Notes due 2015
-
Paid off $222 million of long-term debt through the issuance of notes
due 2021 and sale to a subsidiary and redeeming the remaining
outstanding $94 million of Senior Cash Pay Notes due 2016 and $128
million of Senior Toggle Notes due 2016
-
Issued $1,000 million aggregate principal amount of Priority Guarantee
Notes due 2022 and prepaid $975 million of the loans outstanding under
its Term Loan B facility and $16 million of the loans outstanding
under its Term Loan C-asset sale facility
CC Finco, LLC. (a subsidiary of iHeartMedia, Inc.)
-
Sold $227 million aggregate principal amount of 14% Senior Notes due
2021 to private purchasers
-
Repurchased, through open market purchases, $53 million aggregate
principal amount of iHeartCommunications' outstanding 5.5% Senior
Notes due 2014 and $9 million aggregate principal amount of
iHeartCommunications' outstanding 4.9% Senior Notes due 2015 for a
total of $63 million, including accrued interest. iHeartCommunications
cancelled these notes subsequent to the purchase.
-
During the period from October 1, 2014 through December 31, 2014, CC
Finco repurchased via open market transactions a total of $177 million
aggregate principal amount of notes, comprised of $57 million of
iHeartCommunications' outstanding 5.5% Senior Notes due 2016 and $120
million of iHeartCommunications' outstanding 10.0% Senior Notes due
2018 for a total purchase price of $159 million, including accrued
interest. The notes repurchased by CC Finco were not cancelled and
remain outstanding.
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.
iHeartCommunications' secured debt consists of the senior secured credit
facilities, the receivables-based credit facility, the priority
guarantee notes and certain other secured subsidiary debt. As required
by the definition of consolidated EBITDA in iHeartCommunications' senior
secured credit facilities, iHeartCommunications' consolidated EBITDA for
the preceding four quarters of $1.9 billion is calculated as operating
income (loss) before depreciation, amortization, impairment charges and
other operating income, net plus share-based compensation and is further
adjusted for the following items: (i) costs incurred in connection with
the closure and/or consolidation of facilities, retention charges,
consulting fees and other permitted activities; (ii) extraordinary,
non-recurring or unusual gains or losses or expenses and severance;
(iii) non-cash charges; (iv) cash received from nonconsolidated
affiliates; and (v) various other items.
The following table reflects a reconciliation of consolidated EBITDA (as
defined by iHeartCommunications' senior secured credit facilities) to
operating income and net cash provided by operating activities for the
year ended December 31, 2014:
|
|
|
(In millions)
|
|
Year Ended
December 31,
|
Note numbers may not sum due to rounding
|
|
2014
|
Consolidated EBITDA (as defined by iHeartCommunications' senior
secured credit facilities)
|
|
$
|
1,942
|
|
Less adjustments to consolidated EBITDA (as defined by iHeart's
senior secured credit facilities):
|
|
|
|
|
Cost incurred in connection with closure and/or consolidation of
facilities, retention charges, consulting fees, and
other permitted activities
|
|
|
(76
|
)
|
|
Extraordinary, non-recurring or unusual gains or losses or expenses
and severance (as referenced in the definition
of consolidated EBITDA in iHeartCommunications' senior secured
credit facilities)
|
|
|
(31
|
)
|
|
Non-cash charges
|
|
|
(36
|
)
|
|
Cash received from nonconsolidated affiliates
|
|
|
(1
|
)
|
|
Other items
|
|
|
(10
|
)
|
Less: Depreciation and amortization, Impairment charges, Other
operating income, net, and
Share-based compensation expense
|
|
|
(706
|
)
|
Operating income
|
|
|
1,082
|
|
Plus: Depreciation and amortization, Impairment charges, Gain (loss)
on disposal of operating and fixed assets, and
Share-based compensation expense
|
|
|
701
|
|
Less: Interest expense
|
|
|
(1,742
|
)
|
Less: Current income tax expense
|
|
|
(25
|
)
|
Less: Other expense, net
|
|
|
9
|
|
Adjustments to reconcile consolidated net loss to net cash provided
by operating activities (including Provision for
doubtful accounts, Amortization of deferred financing charges and
note discounts, net and Other reconciling
items, net)
|
|
|
90
|
|
Change in assets and liabilities, net of assets acquired and
liabilities assumed
|
|
|
130
|
|
Net cash provided by operating activities
|
|
$
|
245
|
|
|
|
|
|
|
The maximum ratio under this financial covenant is currently set at
8.75:1. At December 31, 2014, the ratio was 6.3:1.
|
|
Supplemental Disclosure Regarding Non-GAAP
Financial Information
The following tables set forth the Company's OIBDAN for the three months
and years ended December 31, 2014 and 2013. The Company defines OIBDAN
as consolidated net income (loss) adjusted to exclude non-cash
compensation expenses and amortization of deferred system implementation
costs as well as the following line items presented in its Statement of
Operations: Income tax benefit; Other income (expense), net; Equity in
earnings (loss) of nonconsolidated affiliates; Gain (loss) on marketable
securities; Interest expense; Other operating income, net; D&A and
Impairment charges.
The Company uses OIBDAN, among other things, to evaluate the Company's
operating performance. This measure is among the primary measures used
by management for the planning and forecasting of future periods, as
well as for measuring performance for compensation of executives and
other members of management. We believe this measure is an important
indicator of the Company's operational strength and performance of its
business because it provides a link between profitability and net
income. It is also a primary measure used by management in evaluating
companies as potential acquisition targets.
The Company believes the presentation of this measure is relevant and
useful for investors because it allows investors to view performance in
a manner similar to the method used by the Company's management. The
Company believes it helps improve investors' ability to understand the
Company's operating performance and makes it easier to compare the
Company's results with other companies that have different capital
structures, stock option structures or tax rates. In addition, the
Company believes this measure is also among the primary measures used
externally by the Company's investors, analysts and peers in its
industry for purposes of valuation and comparing the operating
performance of the Company to other companies in its industry.
Since OIBDAN is not a measure calculated in accordance with GAAP, it
should not be considered in isolation of, or as a substitute for, net
income as an indicator of operating performance and may not be
comparable to similarly titled measures employed by other companies.
OIBDAN is not necessarily a measure of the Company's ability to fund its
cash needs. As it excludes certain financial information compared with
operating income and net loss, the most directly comparable GAAP
financial measures, users of this financial information should consider
the types of events and transactions which are excluded.
In addition, because a significant portion of the Company's advertising
operations are conducted in foreign markets, principally the Euro area,
the U.K. and China, management reviews the operating results from its
foreign operations on a constant dollar basis. A constant dollar basis
(in which a foreign currency adjustment is made to show the 2014 actual
foreign revenues, expenses and OIBDAN at average 2013 foreign exchange
rates) allows for comparison of operations independent of foreign
exchange rate movements.
As required by the SEC, the Company provides reconciliations below to
the most directly comparable amounts reported under GAAP, including
(i) OIBDAN for each segment to consolidated operating income (loss);
(ii) Revenues excluding the effects of foreign exchange to revenues;
(iii) Expenses excluding the effects of foreign exchange to expenses;
(iv) OIBDAN excluding the effects of foreign exchange to OIBDAN;
(v) Revenues excluding effects of political revenue to iHM revenues;
(vi) Corporate expenses excluding non-cash compensation expenses to
Corporate expenses; and (vii) OIBDAN to net loss.
|
Reconciliation of OIBDAN for each segment to Consolidated
Operating Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
Operating income (loss)
|
|
Non-cash compensation expenses
|
|
Depreciation and amortization
|
|
Other operating (income) expense, net
|
|
Impairment charges
|
|
Other adjustments
|
|
OIBDAN
|
Three Months Ended December 31, 2014
|
iHM
|
|
$
|
291,469
|
|
|
$
|
-
|
|
$
|
55,213
|
|
$
|
-
|
|
|
$
|
-
|
|
$
|
140
|
|
$
|
346,822
|
|
Americas Outdoor
|
|
|
90,207
|
|
|
|
-
|
|
|
50,546
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
140,753
|
|
International Outdoor
|
|
|
67,507
|
|
|
|
-
|
|
|
56,668
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
124,175
|
|
Other
|
|
|
26,626
|
|
|
|
-
|
|
|
7,779
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
34,405
|
|
Impairment Charges
|
|
|
(19,239
|
)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
19,239
|
|
|
-
|
|
|
-
|
|
Corporate
|
|
|
(103,122
|
)
|
|
|
2,649
|
|
|
15,894
|
|
|
-
|
|
|
|
-
|
|
|
719
|
|
|
(83,860
|
)
|
Other operating expense, net
|
|
|
(5,678
|
)
|
|
|
-
|
|
|
-
|
|
|
5,678
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Consolidated
|
|
$
|
347,770
|
|
|
$
|
2,649
|
|
$
|
186,100
|
|
$
|
5,678
|
|
|
$
|
19,239
|
|
$
|
859
|
|
$
|
562,295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2013
|
iHM
|
|
$
|
261,743
|
|
|
$
|
-
|
|
$
|
61,521
|
|
$
|
-
|
|
|
$
|
-
|
|
$
|
-
|
|
$
|
323,264
|
|
Americas Outdoor
|
|
|
82,786
|
|
|
|
-
|
|
|
52,341
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
135,127
|
|
International Outdoor
|
|
|
64,616
|
|
|
|
-
|
|
|
53,914
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
118,530
|
|
Other
|
|
|
9,171
|
|
|
|
-
|
|
|
9,494
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
18,665
|
|
Impairment Charges
|
|
|
(16,970
|
)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
16,970
|
|
|
-
|
|
|
-
|
|
Corporate
|
|
|
(82,124
|
)
|
|
|
2,622
|
|
|
14,312
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
(65,190
|
)
|
Other operating income, net
|
|
|
13,304
|
|
|
|
-
|
|
|
-
|
|
|
(13,304
|
)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Consolidated
|
|
$
|
332,526
|
|
|
$
|
2,622
|
|
$
|
191,582
|
|
$
|
(13,304
|
)
|
|
$
|
16,970
|
|
$
|
-
|
|
$
|
530,396
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2014
|
iHM
|
|
$
|
946,968
|
|
|
$
|
-
|
|
$
|
240,868
|
|
$
|
-
|
|
|
$
|
-
|
|
$
|
218
|
|
$
|
1,188,054
|
|
Americas Outdoor
|
|
|
290,967
|
|
|
|
-
|
|
|
194,640
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
485,607
|
|
International Outdoor
|
|
|
122,814
|
|
|
|
-
|
|
|
207,431
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
330,245
|
|
Other
|
|
|
59,739
|
|
|
|
-
|
|
|
33,543
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
93,282
|
|
Impairment Charges
|
|
|
(24,176
|
)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
24,176
|
|
|
-
|
|
|
-
|
|
Corporate
|
|
|
(354,757
|
)
|
|
|
10,713
|
|
|
34,416
|
|
|
-
|
|
|
|
-
|
|
|
1,396
|
|
|
(308,232
|
)
|
Other operating income, net
|
|
|
40,031
|
|
|
|
-
|
|
|
-
|
|
|
(40,031
|
)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Consolidated
|
|
$
|
1,081,586
|
|
|
$
|
10,713
|
|
$
|
710,898
|
|
$
|
(40,031
|
)
|
|
$
|
24,176
|
|
$
|
1,614
|
|
$
|
1,788,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2013
|
iHM
|
|
$
|
906,718
|
|
|
$
|
-
|
|
$
|
262,136
|
|
$
|
-
|
|
|
$
|
-
|
|
$
|
-
|
|
$
|
1,168,854
|
|
Americas Outdoor
|
|
|
306,454
|
|
|
|
-
|
|
|
196,597
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
503,051
|
|
International Outdoor
|
|
|
100,912
|
|
|
|
-
|
|
|
203,927
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
304,839
|
|
Other
|
|
|
23,061
|
|
|
|
-
|
|
|
39,291
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
62,352
|
|
Impairment Charges
|
|
|
(16,970
|
)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
16,970
|
|
|
-
|
|
|
-
|
|
Corporate
|
|
|
(342,391
|
)
|
|
|
16,715
|
|
|
28,877
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
(296,799
|
)
|
Other operating income, net
|
|
|
22,998
|
|
|
|
-
|
|
|
-
|
|
|
(22,998
|
)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Consolidated
|
|
$
|
1,000,782
|
|
|
$
|
16,715
|
|
$
|
730,828
|
|
$
|
(22,998
|
)
|
|
$
|
16,970
|
|
$
|
-
|
|
$
|
1,742,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Revenues excluding Effects of Foreign Exchange
Rates to Revenues
|
|
(In thousands)
|
|
Three Months Ended
December 31,
|
|
%
Change
|
|
|
Year Ended
December 31,
|
|
%
Change
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
Consolidated revenue
|
|
$
|
1,715,797
|
|
$
|
1,694,367
|
|
1
|
%
|
|
$
|
6,318,533
|
|
$
|
6,243,044
|
|
1
|
%
|
Excluding: Foreign exchange decrease
|
|
|
34,265
|
|
|
-
|
|
|
|
|
22,677
|
|
|
-
|
|
|
Revenue excluding effects of foreign
exchange
|
|
$
|
1,750,062
|
|
$
|
1,694,367
|
|
3
|
%
|
|
$
|
6,341,210
|
|
$
|
6,243,044
|
|
2
|
%
|
Americas Outdoor revenue
|
|
$
|
335,786
|
|
$
|
337,620
|
|
(1
|
%)
|
|
$
|
1,253,190
|
|
$
|
1,290,452
|
|
(3
|
%)
|
Excluding: Foreign exchange decrease
|
|
|
1,166
|
|
|
-
|
|
|
|
|
3,420
|
|
|
-
|
|
|
Americas Outdoor revenue excluding
effects of foreign exchange
|
|
$
|
336,952
|
|
$
|
337,620
|
|
(0
|
%)
|
|
$
|
1,256,610
|
|
$
|
1,290,452
|
|
(3
|
%)
|
International Outdoor revenue
|
|
$
|
466,223
|
|
$
|
468,476
|
|
(0
|
%)
|
|
$
|
1,708,069
|
|
$
|
1,655,738
|
|
3
|
%
|
Excluding: Foreign exchange decrease
|
|
|
33,099
|
|
|
-
|
|
|
|
|
19,257
|
|
|
-
|
|
|
International Outdoor revenue excluding
effects of foreign exchange
|
|
$
|
499,322
|
|
$
|
468,476
|
|
7
|
%
|
|
$
|
1,727,326
|
|
$
|
1,655,738
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Expenses (Direct Operating and SG&A Expenses)
excluding Effects of Foreign Exchange Rates to Expenses
|
|
(In thousands)
|
|
Three Months Ended
December 31,
|
|
%
Change
|
|
|
Year Ended
December 31,
|
|
%
Change
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
Consolidated expense
|
|
$
|
1,069,782
|
|
$
|
1,098,781
|
|
(3
|
%)
|
|
$
|
4,221,573
|
|
$
|
4,203,948
|
|
0
|
%
|
Excluding: Foreign exchange decrease
|
|
|
26,140
|
|
|
-
|
|
|
|
|
16,473
|
|
|
-
|
|
|
Consolidated expense excluding effects
of foreign exchange
|
|
$
|
1,095,922
|
|
$
|
1,098,781
|
|
(0
|
%)
|
|
$
|
4,238,046
|
|
$
|
4,203,948
|
|
1
|
%
|
Americas Outdoor expense
|
|
$
|
195,033
|
|
$
|
202,493
|
|
(4
|
%)
|
|
$
|
767,583
|
|
$
|
787,401
|
|
(3
|
%)
|
Excluding: Foreign exchange decrease
|
|
|
943
|
|
|
-
|
|
|
|
|
2,965
|
|
|
-
|
|
|
Americas Outdoor expense excluding
effects of foreign exchange
|
|
$
|
195,976
|
|
$
|
202,493
|
|
(3
|
%)
|
|
$
|
770,548
|
|
$
|
787,401
|
|
(2
|
%)
|
International Outdoor expense
|
|
$
|
342,048
|
|
$
|
349,946
|
|
(2
|
%)
|
|
$
|
1,377,824
|
|
$
|
1,350,899
|
|
2
|
%
|
Excluding: Foreign exchange decrease
|
|
|
25,197
|
|
|
-
|
|
|
|
|
13,508
|
|
|
-
|
|
|
International Outdoor expense excluding
effects of foreign exchange
|
|
$
|
367,245
|
|
$
|
349,946
|
|
5
|
%
|
|
$
|
1,391,332
|
|
$
|
1,350,899
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of OIBDAN excluding Effects of Foreign Exchange
Rates to OIBDAN
|
|
(In thousands)
|
|
Three Months Ended
December 31,
|
|
%
Change
|
|
|
Year Ended
December 31,
|
|
%
Change
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
Consolidated OIBDAN
|
|
$
|
562,295
|
|
|
$
|
530,396
|
|
|
6
|
%
|
|
$
|
1,788,956
|
|
|
$
|
1,742,297
|
|
|
3
|
%
|
Excluding: Foreign exchange decrease
|
|
|
7,846
|
|
|
|
-
|
|
|
|
|
|
8,721
|
|
|
|
-
|
|
|
|
OIBDAN excluding effects of foreign
exchange
|
|
$
|
570,141
|
|
|
$
|
530,396
|
|
|
7
|
%
|
|
$
|
1,797,677
|
|
|
$
|
1,742,297
|
|
|
3
|
%
|
Americas Outdoor OIBDAN
|
|
$
|
140,753
|
|
|
$
|
135,127
|
|
|
4
|
%
|
|
$
|
485,607
|
|
|
$
|
503,051
|
|
|
(3
|
%)
|
Excluding: Foreign exchange decrease
|
|
|
223
|
|
|
|
-
|
|
|
|
|
|
455
|
|
|
|
-
|
|
|
|
Americas Outdoor OIBDAN excluding
effects of foreign exchange
|
|
$
|
140,976
|
|
|
$
|
135,127
|
|
|
4
|
%
|
|
$
|
486,062
|
|
|
$
|
503,051
|
|
|
(3
|
%)
|
International Outdoor OIBDAN
|
|
$
|
124,175
|
|
|
$
|
118,530
|
|
|
5
|
%
|
|
$
|
330,245
|
|
|
$
|
304,839
|
|
|
8
|
%
|
Excluding: Foreign exchange decrease
|
|
|
7,903
|
|
|
|
-
|
|
|
|
|
|
5,749
|
|
|
|
-
|
|
|
|
International Outdoor OIBDAN excluding
effects of foreign exchange
|
|
$
|
132,078
|
|
|
$
|
118,530
|
|
|
11
|
%
|
|
$
|
335,994
|
|
|
$
|
304,839
|
|
|
10
|
%
|
Corporate OIBDAN
|
|
$
|
(83,860
|
)
|
|
$
|
(65,190
|
)
|
|
29
|
%
|
|
$
|
(308,232
|
)
|
|
$
|
(296,799
|
)
|
|
4
|
%
|
Excluding: Foreign exchange decrease
|
|
|
(280
|
)
|
|
|
-
|
|
|
|
|
|
2,517
|
|
|
|
-
|
|
|
|
Corporate OIBDAN excluding effects
of foreign exchange
|
|
$
|
(84,140
|
)
|
|
$
|
(65,190
|
)
|
|
29
|
%
|
|
$
|
(305,715
|
)
|
|
$
|
(296,799
|
)
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Revenues excluding Effects of Political Revenue
to Revenues
|
|
(In thousands)
|
|
Three Months Ended
December 31,
|
|
%
Change
|
|
|
Year Ended
December 31,
|
|
%
Change
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
Consolidated revenue
|
|
$
|
1,715,797
|
|
|
$
|
1,694,367
|
|
|
1
|
%
|
|
$
|
6,318,533
|
|
|
$
|
6,243,044
|
|
|
1
|
%
|
Excluding: Political revenue
|
|
|
(45,635
|
)
|
|
|
(5,716
|
)
|
|
|
|
|
(86,877
|
)
|
|
|
(21,838
|
)
|
|
|
Consolidated revenue excluding effects of
political revenue
|
|
$
|
1,670,162
|
|
|
$
|
1,688,651
|
|
|
(1
|
%)
|
|
$
|
6,231,656
|
|
|
$
|
6,221,206
|
|
|
0
|
%
|
iHM revenue
|
|
$
|
854,311
|
|
|
$
|
845,555
|
|
|
1
|
%
|
|
$
|
3,161,503
|
|
|
$
|
3,131,595
|
|
|
1
|
%
|
Excluding: Political revenue
|
|
|
(26,466
|
)
|
|
|
(4,107
|
)
|
|
|
|
|
(51,708
|
)
|
|
|
(17,006
|
)
|
|
|
iHM revenue excluding effects of
political revenue
|
|
$
|
827,845
|
|
|
$
|
841,448
|
|
|
(2
|
%)
|
|
$
|
3,109,795
|
|
|
$
|
3,114,589
|
|
|
(0
|
%)
|
Americas Outdoor revenue
|
|
$
|
335,786
|
|
|
$
|
337,620
|
|
|
(1
|
%)
|
|
$
|
1,253,190
|
|
|
$
|
1,290,452
|
|
|
(3
|
%)
|
Excluding: Political revenue
|
|
|
(1,760
|
)
|
|
|
(159
|
)
|
|
|
|
|
(4,658
|
)
|
|
|
(739
|
)
|
|
|
Americas Outdoor revenue excluding
effects of political revenue
|
|
$
|
334,026
|
|
|
$
|
337,461
|
|
|
(1
|
%)
|
|
$
|
1,248,532
|
|
|
$
|
1,289,713
|
|
|
(3
|
%)
|
Other revenue
|
|
$
|
76,683
|
|
|
$
|
60,086
|
|
|
28
|
%
|
|
$
|
260,920
|
|
|
$
|
227,864
|
|
|
15
|
%
|
Excluding: Political revenue
|
|
|
(17,408
|
)
|
|
|
(1,450
|
)
|
|
|
|
|
(30,510
|
)
|
|
|
(4,093
|
)
|
|
|
Revenue excluding effects of
political revenue
|
|
$
|
59,275
|
|
|
$
|
58,636
|
|
|
1
|
%
|
|
$
|
230,410
|
|
|
$
|
223,771
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Corporate Expenses excluding Non-cash
compensation expenses to Corporate Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
Three Months Ended
December 31,
|
|
%
Change
|
|
|
Year Ended
December 31,
|
|
%
Change
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
Corporate Expense
|
|
$
|
87,228
|
|
|
$
|
67,812
|
|
|
29
|
%
|
|
$
|
320,331
|
|
|
$
|
313,514
|
|
|
2
|
%
|
Less: Non-cash compensation expense
|
|
|
(2,649
|
)
|
|
|
(2,622
|
)
|
|
|
|
|
(10,713
|
)
|
|
|
(16,715
|
)
|
|
|
Less: Amortization of system implementation
costs
|
|
|
(719
|
)
|
|
|
-
|
|
|
|
|
|
(1,396
|
)
|
|
|
-
|
|
|
|
Less: Corporate eliminations
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
10
|
|
|
|
-
|
|
|
|
|
|
$
|
83,860
|
|
|
$
|
65,190
|
|
|
29
|
%
|
|
$
|
308,232
|
|
|
$
|
296,799
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of OIBDAN to Net Loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
Three Months Ended
December 31,
|
|
%
Change
|
|
|
Year Ended
December 31,
|
|
%
Change
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
OIBDAN
|
|
$
|
562,295
|
|
|
$
|
530,396
|
|
|
6
|
%
|
|
$
|
1,788,956
|
|
|
$
|
1,742,297
|
|
|
3
|
%
|
Non-cash compensation expense
|
|
|
2,649
|
|
|
|
2,622
|
|
|
|
|
|
10,713
|
|
|
|
16,715
|
|
|
|
Depreciation and amortization
|
|
|
186,100
|
|
|
|
191,582
|
|
|
|
|
|
710,898
|
|
|
|
730,828
|
|
|
|
Impairment charges
|
|
|
19,239
|
|
|
|
16,970
|
|
|
|
|
|
24,176
|
|
|
|
16,970
|
|
|
|
Amortization of deferred system
implementation costs
|
|
|
859
|
|
|
|
-
|
|
|
|
|
|
1,614
|
|
|
|
-
|
|
|
|
Other operating income, net
|
|
|
(5,678
|
)
|
|
|
13,304
|
|
|
|
|
|
40,031
|
|
|
|
22,998
|
|
|
|
Operating income
|
|
|
347,770
|
|
|
|
332,526
|
|
|
|
|
|
1,081,586
|
|
|
|
1,000,782
|
|
|
|
Interest expense
|
|
|
437,261
|
|
|
|
418,014
|
|
|
|
|
|
1,741,596
|
|
|
|
1,649,451
|
|
|
|
Gain (loss) on marketable securities
|
|
|
-
|
|
|
|
(50
|
)
|
|
|
|
|
-
|
|
|
|
130,879
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings (loss) of nonconsolidated affiliates
|
|
|
(29
|
)
|
|
|
(91,291
|
)
|
|
|
|
|
(9,416
|
)
|
|
|
(77,696
|
)
|
|
|
Gain (loss) of extinguishment of debt
|
|
|
12,912
|
|
|
|
(83,980
|
)
|
|
|
|
|
(43,347
|
)
|
|
|
(87,868
|
)
|
|
|
Other income (expense), net
|
|
|
(7,211
|
)
|
|
|
(4,591
|
)
|
|
|
|
|
9,104
|
|
|
|
(21,980
|
)
|
|
|
Loss before income taxes
|
|
|
(83,819
|
)
|
|
|
(265,400
|
)
|
|
|
|
|
(703,669
|
)
|
|
|
(705,334
|
)
|
|
|
Income tax benefit (expense)
|
|
|
33,654
|
|
|
|
(36,833
|
)
|
|
|
|
|
(58,489
|
)
|
|
|
121,817
|
|
|
|
Consolidated net loss
|
|
|
(50,165
|
)
|
|
|
(302,233
|
)
|
|
|
|
|
(762,158
|
)
|
|
|
(583,517
|
)
|
|
|
Less: Amount attributable to noncontrolling interest
|
|
|
17,923
|
|
|
|
6,994
|
|
|
|
|
|
31,603
|
|
|
|
23,366
|
|
|
|
Net loss attributable to the Company
|
|
$
|
(68,088
|
)
|
|
$
|
(309,227
|
)
|
|
|
|
$
|
(793,761
|
)
|
|
$
|
(606,883
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About iHeartMedia, Inc.
iHeartMedia, Inc. (OTCBB:IHRT), the parent company of
iHeartCommunications, 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 150 cities through 858 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
more than 640,000 displays in over 40 countries across five continents,
including 45 of the 50 largest markets in the United States. More
information is available at www.iheartmedia.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 iHeartMedia, Inc. and its
subsidiaries, including 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 are forward-looking
statements.
Various risks that could cause future results to differ from those
expressed by the forward-looking statements included in this release
include, but are not limited to: the impact of the Company's substantial
indebtedness, including the use of cash from operations and other
liquidity-generating transactions to make payments on its indebtedness;
changes in business, political and economic conditions in the United
States and in other countries in which the Company currently does
business (both general and relative to the advertising industry);
changes in operating performance; changes in governmental regulations
and policies and actions of regulatory bodies; changes in the level of
competition for advertising dollars; fluctuations in operating costs;
technological changes and innovations; changes in labor conditions;
changes in capital expenditure requirements; fluctuations in exchange
rates and currency values; the outcome of litigation; fluctuations in
interest rates; taxes and tax disputes; shifts in population and other
demographics; access to capital markets and borrowed indebtedness; risks
relating to the integration of acquired businesses; and risks that we
may not achieve or sustain anticipated cost savings. Other unknown or
unpredictable factors also could have material adverse effects on the
Company's future results, performance or achievements. In light of these
risks, uncertainties, assumptions and factors, the forward-looking
events discussed in this release may not occur. You are cautioned not to
place undue reliance on these forward-looking statements, which speak
only as of the date stated, or if no date is stated, as of the date of
this document. Other key risks are described in the Company's reports
filed with the U.S. Securities and Exchange Commission, including in the
section entitled "Item 1A. Risk Factors" of iHeartMedia, Inc.'s Annual
Reports on Form 10-K and Quarterly Reports on Form 10-Q. Except as
otherwise stated in this release, the Company does not undertake any
obligation to publicly update or revise any forward-looking statements
because of new information, future events or otherwise.
[ Back To Homepage ]
|