iHeartMedia 2005 Annual Report Download - page 25

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25
We May be Adversely Affected by a General Deterioration in Economic Conditions
The risks associated with our businesses become more acute in periods of a slowing economy or recession,
which may be accompanied by a decrease in advertising. A decline in the level of business activity of our advertisers
could have an adverse effect on our revenues and profit margins. During the most recent economic slowdown in the
United States, many advertisers reduced their advertising expenditures. The impact of slowdowns on our business is
difficult to predict, but they may result in reductions in purchases of advertising.
We May Be Adversely Affected by the Occurrence of Extraordinary Events, Such as Terrorist Attacks
The occurrence of extraordinary events, such as terrorist attacks, intentional or unintentional mass casualty
incidents or similar events may substantially decrease the use of and demand for advertising, which may decrease our
revenues or expose us to substantial liability. The September 11, 2001 terrorist attacks, for example, caused a
nationwide disruption of commercial activities. As a result of the expanded news coverage following the attacks and
subsequent military actions, we experienced a loss in advertising revenues and increased incremental operating
expenses. The occurrence of future terrorist attacks, military actions by the United States, contagious disease outbreaks
or similar events cannot be predicted, and their occurrence can be expected to further negatively affect the economies of
the United States and other foreign countries where we do business generally, specifically the market for advertising.
Caution Concerning Forward Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements
made by us or on our behalf. Except for the historical information, this report contains various forward-looking
statements which represent our expectations or beliefs concerning future events, including the future levels of cash flow
from operations. Management believes that all statements that express expectations and projections with respect to
future matters, including the success of our strategic realignment of our businesses and our Less is More initiative; our
ability to negotiate contracts having more favorable terms; and the availability of capital resources; are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act. We caution that these forward-looking
statements involve a number of risks and uncertainties and are subject to many variables which could impact our
financial performance. These statements are made on the basis of management's views and assumptions, as of the time
the statements are made, regarding future events and business performance. There can be no assurance, however, that
management's expectations will necessarily come to pass.
A wide range of factors could materially affect future developments and performance, including:
• the impact of general economic and political conditions in the U.S. and in other countries in which we
currently do business, including those resulting from recessions, political events and acts or threats of
terrorism or military conflicts;
• the impact of the geopolitical environment;
• our ability to integrate the operations of recently acquired companies;
• shifts in population and other demographics;
• industry conditions, including competition;
• fluctuations in operating costs;
• technological changes and innovations;
• changes in labor conditions;
• fluctuations in exchange rates and currency values;
• capital expenditure requirements;
• the outcome of pending and future litigation settlements;
• legislative or regulatory requirements;
• interest rates;
• the effect of leverage on our financial position and earnings;
• taxes;
• access to capital markets; and
• certain other factors set forth in our filings with the Securities and Exchange Commission.
This list of factors that may affect future performance and the accuracy of forward-looking statements is
illustrative, but by no means exhaustive. Accordingly, all forward-looking statements should be evaluated with the
understanding of their inherent uncertainty.