iHeartMedia 2010 Annual Report Download - page 32

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ITEM 7
.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
OVERVIEW
Executive Summary
The key highlights of our business for the year ended December 31, 2010 are summarized below:
The key highlights of our business for the year ended December 31, 2009 are summarized below:
28
•
Consolidated revenue increased $313.8 million for the year ended December 31, 2010 compared to 2009, primarily as a
result of improved economic conditions.
•
Radio revenue increased $161.7 million for the year ended December 31, 2010 compared to 2009, primarily as a result of
increased average rates per minute driven by increased demand for both national and local advertising.
•
Americas outdoor revenue increased $51.9 million for the year ended December 31, 2010 compared to 2009, driven by
revenue
g
rowth across our advertisin
g
inventor
y
,
p
articularl
y
di
g
ital.
•
International outdoor revenue increased $48.1 million for the year ended December 31, 2010 compared to 2009, primarily
as a result of increased revenue from street furniture across most countries, partially offset by a decrease from movements
in foreign exchange of $10.3 million.
•
Our subsidiary, Clear Channel Investments, Inc. (“CC Investments”), repurchased $185.2 million aggregate principal
amount of our senior toggle notes for $125.0 million during the year ended December 31, 2010.
•
We repaid $240.0 million upon the maturity of our 4.50% senior notes due 2010 during the year ended December 31, 2010.
•
During 2010, we repaid our remaining 7.65% senior notes upon maturity for $138.8 million with proceeds from our delayed
draw term loan facilit
y
that was s
p
ecificall
y
desi
g
nated for this
p
ur
p
ose.
•
During 2010, we received $132.3 million in Federal income tax refunds.
•
On October 15, 2010, Clear Channel Outdoor Holdings, Inc. (“CCOH”), our subsidiary, transferred its interest in its
Branded Cities operations to its joint venture partner, The Ellman Companies. We recorded a loss of $25.3 million in
“Other operating income (expense) – net” related to the transfer.
•
We performed impairment tests on our goodwill, FCC licenses, billboard permits, and other intangible assets and recorded
impairment charges of $15.4 million. Please see the notes to the consolidated financial statements included in Item 8 of Part
II of this Annual Re
p
ort on Form 10-K for a more com
p
lete descri
p
tion of the im
p
airment char
g
es.
•
Consolidated revenue decreased $1.14 billion for the year ended December 31, 2009 compared to 2008, primarily as a
result of weakness in advertisin
g
and the
g
lobal econom
y
.
•
Radio revenue declined $557.5 million for the year ended December 31, 2009 compared to 2008, primarily as a result of
decreases in local and national advertisin
g
demand.
•
Americas outdoor revenue decreased $192.1 million for the year ended December 31, 2009 compared to 2008, driven by
declines in bulletin, poster and transit revenues due to cancellations and non-renewals from larger national advertisers.
•
International outdoor revenue decreased $399.2 million for the year ended December 31, 2009 compared to 2008, primarily
as a result of weak advertising demand across most countries. Also contributing to the decline was $118.5 million from
movements in forei
g
n exchan
g
e.
•
We recorded a $21.3 million impairment to taxi contract intangible assets in our Americas outdoor segment, a $55.0 million
impairment primarily related to street furniture tangible assets and contract intangible assets in our International outdoor
segment and an $11.3 million impairment related to corporate assets under ASC 360-10.
•
We performed impairment tests on our goodwill, FCC licenses, billboard permits, and other intangible assets and recorded
impairment charges of $4.1 billion. We had previously recorded impairment charges of $5.3 billion as of December 31,
2008. Please see the notes to the consolidated financial statements included in Item 8 of Part II of this Annual Report on
Form 10-K for a more complete description of the impairment charges.
•
Our subsidiary, Clear Channel Worldwide Holdings, Inc. (“CCWH”), issued $500.0 million aggregate principal amount of
Series A Senior Notes due 2017 and $2.0 billion aggregate principal amount of Series B Senior Notes due 2017.
•
Our wholly-owned subsidiaries, CC Finco, LLC, and Clear Channel Acquisition, LLC (previously known as CC Finco II,
LLC), repurchased an aggregate $1.2 billion of our debt through open market repurchases, privately negotiated transactions
and tenders. Cash paid to repurchase the debt was $343.5 million.
•
On December 31, 2009, our subsidiary Clear Channel Outdoor, Inc. (“CCOI”) disposed of Clear Channel Taxi Media, LLC,
our taxi advertising business and recorded a loss of $20.9 million.