iHeartMedia 2002 Annual Report Download - page 81

(In thousands, except per share data)
The pro forma information above is presented in response to applicable accounting rules relating to business acquisitions and is not necessarily
indicative of the actual results that would have been achieved had the merger occurred at the beginning of 2001, nor is it indicative of future
results of operations.
Other
In addition to the acquisition discussed above, during 2002 the Company acquired substantially all of the assets of 27 radio stations, 9,275
outdoor display faces and certain music, racing events promotional and exhibition related assets. The aggregate cash and restricted cash paid
for these acquisitions was approximately $241.2 million.
2001 Acquisitions:
During 2001, the Company acquired substantially all of the assets of 183 radio stations, approximately 6,900 additional outdoor display faces
and certain music, sports and racing events, promotional assets and sports talent representation contracts. The Company also acquired two FCC
licenses of television stations, both of which we had previously been operating under a local marketing agreement, national representation
contracts, and other assets. In addition, the Company exchanged one television license for two television licenses and $10.0 million of cash that
was placed in a restricted trust for future acquisitions. The exchange was accounted for at fair value, resulting in a gain of $168.0 million,
which was recorded in “Other income (expense) - net”.TheCompany’s 2001 acquisitions resulted in additional licenses and goodwill of
approximately $1.2 billion, including $233.7 million relating to non-cash asset exchanges.
2000 Acquisitions:
Ackerley’s South Florida Outdoor Advertising Division
On January 5, 2000, the Company closed its acquisition of Ackerley’s South Florida outdoor advertising division (“Ackerley FL Division”)for
$300.2 million. The Company funded the acquisition with advances on its credit facilities. This acquisition was accounted for as a purchase,
with resulting goodwill of approximately $208.3 million, which prior to the Company adopting Statement No. 142, as discussed in Note B, had
been amortizing over 25 years on a straight-line basis. The Company’s adoption of Statement No. 142 resulted in an impairment charge at the
Outdoor reporting unit relating to goodwill. The goodwill recorded in this acquisition was included in the impairment test. The results of
operations of Ackerley FL Division have been included in the financial statements of the Company beginning January 5, 2000.
AMFM Merger
On August 30, 2000, the Company closed its merger with AMFM Inc. (“AMFM”). Pursuant to the terms of the merger agreement, each share
of AMFM common stock was exchanged for 0.94 shares of the Company’s common stock. Approximately 205.4 million shares of the
Company’s common stock were issued in the AMFM merger, valuing the merger, based on the average market price of the Company’s
common stock at the signing of the merger
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For the Year Ended December 31
,
2002 2001
Revenue $8,501,064 $8,168,680
Income (loss) before cumulative effect of a change in accounting principle $ 720,324 $(1,160,541)
Net income (loss) $(16,058,202) $(1,160,541)
Income (loss) before cumulative effect of a change in accounting principle per
common share —Basic $ 1.18 $ (1.92)
Net income (loss) per common share —Basic $(26.23) $ (1.92)
Income (loss) before cumulative effect of a change in accounting principle per
common share —Dilute
d
$ 1.16 $ (1.92)
Net income (loss) per common share —Dilute
d
$(25.35) $ (1.92)