iHeartMedia 2009 Annual Report Download - page 52

Our Americas direct operating expenses decreased $39.4 million in 2009 compared to 2008, primarily from a $25.3 million
decrease in site-lease expenses associated with cost savings from the restructuring program and the decline in revenues. This decrease
was partially offset by $5.7 million related to the restructuring program. Our SG&A expenses decreased $50.7 million in 2009
compared to 2008, primarily from a $26.0 million decline in compensation expense associated with the decline in revenue and cost
savings from the restructuring program and a $16.2 million decline in bad debt expense as a result of accounts collected and an
improvement in the agings of our accounts receivable during the current year.
International Outdoor Advertising Results of Operations
Our international operating results were as follows:
Our International revenue decreased approximately $399.2 million in 2009 compared to 2008, with approximately $118.5
million from movements in foreign exchange. The revenue decline occurred across most countries, with the most significant decline
in France of $75.5 million due to weak advertising demand. Other countries with significant declines include the U.K. and Italy,
which declined $30.4 million and $28.3 million, respectively, due to weak advertising markets.
Direct operating expenses decreased $217.6 million in 2009 compared to 2008, in part due to a decrease of $85.6 million
from movements in foreign exchange. The remaining decrease in direct operating expenses was primarily attributable to a $146.4
million decline in site lease expenses partially attributable to cost savings from the restructuring program. The decrease in direct
operating expenses was partially offset by $12.8 million related to the restructuring program and the decline in revenue. SG&A
expenses decreased $71.3 million in 2009 compared to 2008, primarily from $23.7 million related to movements in foreign exchange,
$34.3 million related to a decline in compensation expense and a $25.8 million decrease in administrative expenses, both partially
attributable to cost savings from the restructuring program and the decline in revenue.
Depreciation and amortization decreased $35.4 million in 2009 compared to 2008, primarily related to a $43.2 million
decrease in depreciation expense associated with the impairment of assets during the fourth quarter of 2008 and a $20.6 million
decrease from movements in foreign exchange. The decrease was partially offset by $31.9 million related to additional amortization
associated with the purchase accounting adjustments to the acquired intangible assets.
Reconciliation of Segment Operating Income (Loss)
48
(In thousands)
Years Ended December 31,
2009
Pos
t
-Merger
2008
Combined
% Change
Revenue $ 1,459,853 $1,859,029 (21%)
Direct operating expenses
1,017,005 1,234,610 (18%)
SG&A expenses 282,208 353,481 (20%)
Depreciation and amortization
229,367 264,717 (13%)
Operating income (loss) $ (68,727) $6,221 (1205%)
(In thousands)
Years Ended December 31,
2009
Post-Merger
2008
Combined
Radio Broadcasting $639,854 $979,121
Americas Outdoor Advertising
217,617 322,210
International Outdoor Advertising (68,727) 6,221
Other
(43,963) (31,419)
Impairment charges (4,118,924) (5,268,858)
Other operating income (expense) - net
(50,837) 28,032
Merger expenses
—
(155,769)
Corporate
(262,166) (245,915)
Consolidated operating income (loss) $(3,687,146) $(4,366,377)