iHeartMedia 2003 Annual Report Download - page 47

and the other on January 15, 2004, to shareholders of record at the close of business on September 30, 2003 and December 31, 2003,
respectively. Additionally, on February 19, 2004, our Board of Directors declared a quarterly cash dividend of $0.10 per share of our Common
Stock to be paid on April 15, 2004 to shareholders of record on March 31, 2004.
Acquisitions
During the year ended December 31, 2003, we acquired radio stations for $45.9 million in cash and outdoor display faces for $28.3 million
in cash. Our outdoor segment also acquired investments in nonconsolidated affiliates for a total of $10.7 million in cash and acquired an
additional 10% interest in a subsidiary for $5.1 million in cash. Our live entertainment segment made cash payments of $2.8 million during the
year ended December 31, 2003, primarily related to various earn-outs and deferred purchase price consideration on prior year acquisitions.
Also, our national representation business acquired new contacts for a total of $42.6 million, of which $12.6 million was paid in cash during
the year ended December 31, 2003 and $30.0 million was recorded as a liability at December 31, 2003.
We intend to continue to acquire certain businesses that fit our strategic goals; however, our primary focus is on reduction of debt. Future
acquisitions of media-related assets affected in connection with the implementation of our acquisition strategy are expected to be financed from
increased borrowings under our existing credit facilities, additional public equity and debt offerings and cash flow from operations.
Capital Expenditures
Capital expenditures in 2003 decreased from $548.6 million in 2002 to $378.0 million in 2003. Overall, capital expenditures decreased in
2003 as compared to 2002 due to less integration and consolidation of facilities within our operations as well as less revenue producing capital
expenditures during the year ended December 31, 2003 as compared to the year ended December 31, 2002.
Radio broadcasting capital expenditures declined $35.1 million in 2003 as compared to 2002 as a result of decreased expenditures in 2003
related to consolidation of operations.
Outdoor advertising capital expenditures decreased $93.1 million in 2003 as compared to 2002 primarily due to fewer revenue producing
related capital expenditures.
Live entertainment capital expenditures increased $6.5 million in 2003 as compared to 2002. Revenue producing related capital
expenditures increased during the year due to the construction of new venues, while non-revenue producing project related capital expenditures
declined.
Capital expenditures listed under “Corporate and Other” declined $48.9 million during 2003 as compared to 2002 due to capital
expenditures in 2002 related to the completion of a new data and administrative service center which replaced leased locations.
Income Taxes
During the year ended December 31, 2003, we made cash tax payments of approximately $140.7 million, net of various tax refunds
payments. For the prior year period, we made cash tax payments of approximately $43.6 million, which was reduced by $152.0 million related
to our utilization of tax net operating loss carryfowards. In addition, for the twelve months ended December 31, 2002, we received
approximately $24.6 million related to various tax refund payments.
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(In millions)
Year Ended December 31, 2003 Capital Expenditures
Corporate
Radio Outdoor Entertainment and Other Total
Non-revenue producing $80.1 $ 63.4 $27.7 $28.5 $199.7
Revenue producing
—
136.1 42.2 — 178.3
$80.1 $199.5 $69.9 $28.5 $378.0