iHeartMedia 2001 Annual Report Download - page 42

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42
during the quarter ended December 31, 2001.
Live Entertainment
(In thousands)
As Reported Basis: Years Ended December 31, % Change
2001 2000 2001 v. 2000
Revenue $ 2,477,640 $ 952,025 **
Divisional Operating Expenses 2,327,109 878,553 **
EBITDA as Adjusted * $ 150,531 $ 73,472 **
* See page 35 for cautionary disclosure
** Not Meaningful
Pro Forma Basis: Years Ended December 31, % Change
2001 2000 2001 v. 2000
Revenue $ 2,496,044 $ 2,411,594 4%
Divisional Operating Expenses 2,342,834 2,218,021 6%
Reconciliation of Reported Basis to Pro Forma Basis
(In thousands)
Years Ended December 31,
2001 2000
Reported Revenue $ 2,477,640 $ 952,025
Acquisitions 1,459,569
Divestitures
Foreign Exchange adjustments 18,404 —
Pro Forma Revenue $ 2,496,044 $ 2,411,594
Reported Divisional Operating Expenses $ 2,327,109 $ 878,553
Acquisitions 1,339,468
Divestitures
Foreign Exchange adjustments 15,725 —
Pro Forma Divisional Operating Expenses $ 2,342,834 $ 2,218,021
We entered the live entertainment business with our acquisition of SFX in August 2000.
Therefore, the increase in reported revenue and divisional operating expenses of $1.6 billion and $1.5
billion, respectively in 2001 as compared to 2000 is related to the SFX acquisition and less significant
acquisitions as well as other reasons discussed below in our pro forma presentation.
On a pro forma basis, revenue increased $84.4 million, or 4% during the year ended December
31, 2001 as compared to the prior year due to a change in the mix of live music events during 2001 as
compared to 2000. Although the number of live events decreased over the prior period, during 2001, we
changed the mix of live music events to include approximately 48% more stadium and arena events as
compared to the prior year. Stadium and arenas are generally larger venues that allow for more ticket
sales related to the increased seating capacity.