iHeartMedia 2001 Annual Report Download - page 41

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41
Outdoor Advertising
(In thousands)
As Reported Basis: Years Ended December 31, % Change
2001 2000 2001 v. 2000
Revenue $ 1,748,031 $ 1,729,438 1%
Divisional Operating Expenses 1,220,681 1,078,540 13%
EBITDA as Adjusted * $ 527,350 $ 650,898 (19)%
* See page 35 for cautionary disclosure
Pro Forma Basis: Years Ended December 31, % Change
2001 2000 2001 v. 2000
Revenue $ 1,781,173 $ 1,911,515 (7)%
Divisional Operating Expenses 1,246,795 1,208,039 3%
Reconciliation of Reported Basis to Pro Forma Basis
(In thousands)
Years Ended December 31,
2001 2000
Reported Revenue $ 1,748,031 $ 1,729,438
Acquisitions 186,358
Divestitures (4,281)
Foreign Exchange adjustments 33,142 —
Pro Forma Revenue $ 1,781,173 $ 1,911,515
Reported Divisional Operating Expenses $ 1,220,681 $ 1,078,540
Acquisitions 133,459
Divestitures (3,960)
Foreign Exchange adjustments 26,114 —
Pro Forma Divisional Operating Expenses $ 1,246,795 $ 1,208,039
Revenues and divisional operating expenses increased for the year ended December 31, 2001 as
compared to 2000 on a reported basis due to our acquisitions completed during 2000. Included in the
year ended December 31, 2001 reported basis amounts are a full year of revenues and divisional
operating expenses from our acquisition of Donrey in September 2000, which was valued at $372.6
million, as well as other less significant acquisitions. Other reasons for the change in reported revenue
and divisional operating expenses are discussed below in our pro forma presentation.
On a pro forma basis, revenues decreased $130.3 million, or 7% during the year ended December
31, 2001 as compared to 2000 as a result of the downturn in the economic environment during 2001,
primarily in our domestic markets. On average, our domestic advertising rate declined approximately 7%
in 2001 as compared to 2000. Although the decrease in pro forma revenue was apparent in all markets,
of the $130.3 million decline, our top 25 domestic outdoor markets accounted for approximately $84.0
million, or 64% of the total decline. The decline in pro forma revenue within these markets was
predominately due to the decline in national advertising during 2001 as compared to 2000.
Although pro forma revenue declined, pro forma divisional operating expenses increased $38.8
million, or 3% during the year ended December 31, 2001 primarily due to increased expenses associated
with the expansion of operations of recently acquired assets and contracts, as well as approximately
$20.8 million of additional costs relating to the reorganization of the division as well as other costs