iHeartMedia 2000 Annual Report Download - page 45

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45
Uses of Capital
Acquisitions
During 2000, including the acquisitions discussed above, we acquired approximately 24,000
additional outdoor display faces in 30 domestic markets and approximately 54,500 additional display
faces in 17 international markets for a total of $1.7 billion in cash. We also acquired 148 radio stations in
45 markets for $113.1 million in cash and $670.2 million in restricted cash. In the live entertainment
segment, we acquired sporting, music and theatrical event promotions, racing promotion, and venue
management assets for $86.6 million in cash.
We intend to continue to pursue businesses that fit our strategic goals. There are currently no
significant acquisitions or mergers pending. From January 1, 2001 through February 28, 2001, we have
acquired 120 radio stations (primarily through the use of our restricted cash), 531 outdoor display faces
and our live entertainment segment acquired sporting and music event promotions.
Capital Expenditures
Capital expenditures in 2000 increased from $238.7 million in 1999 to $495.6 million in 2000.
Overall, capital expenditures increased due to recent acquisitions and the increase in the number of radio
stations, billboards and displays owned in 2000 as compared to 1999. In addition, we incurred capital
expenditures related to our new live entertainment segment in 2000 that we did not incur in 1999. The
increase in 2000 primarily relates to more spending relating to facility consolidation resulting from our
acquisitions, technological upgrades of operating assets, a one-time capital expenditure in conjunction
with the long-term extension of a certain operating contract, and the construction of new revenue-
producing advertising displays. In 1999, capital expenditures included non-recurring expenditures relating
to the implementation of Year 2000 compliant systems and integration of the Jacor stations.
(In millions)
2000 Capital Expenditures
Radio Outdoor Entertainment Other Total
Recurring $ 23.6 $ 84.8 $ 12.7 $ 18.3 $ 139.4
Non-recurring projects 116.3 12.8 30.1 40.4 199.6
Revenue producing — 152.7 3.9 — 156.6
$ 139.9 $ 250.3 $ 46.7 $ 58.7 $ 495.6
Our radio capital expenditures in 2000 are related primarily to expenditures associated with the
consolidation of operations in certain markets in conjunction with acquisitions that are expected to result
in improved operating results in such markets. In addition, our radio capital expenditures in 2000 include
approximately $12.5 million in technological upgrades of our operating assets, $29.6 million related to
assets purchased in a contract extension negotiation, and expenditures related to the integration of the
AMFM stations.