iHeartMedia 2010 Annual Report Download - page 40

Consolidated Results of Operations
R
evenue
Our consolidated revenue decreased $1.14 billion during 2009 compared to 2008 as a result of the economic downturn. Revenue
declined $557.5 million during 2009 compared to 2008 from our radio business associated with decreases in both local and national
advertising. Our Americas outdoor revenue declined $192.1 million attributable to decreases in bulletin, poster and airport revenues
associated with cancellations and non-renewals from larger national advertisers. Our International outdoor revenue declined $399.2
million primarily as a result of challenging advertising climates in our markets and approximately $118.5 million from movements in
foreign exchange.
D
irect Operating Expenses
Our consolidated direct operating expenses decreased $321.2 million during 2009 compared to 2008 as a result of cost-cutting
measures and the impact of lower revenues. Our radio broadcasting direct operating expenses decreased $77.5 million primarily
related to decreased compensation expense associated with cost savings from the restructuring program. Our Americas outdoor direct
operating expenses decreased $39.4 million driven by decreased site-lease expenses from lower revenue and cost savings from the
restructuring program. Our International outdoor business contributed $217.6 million of the overall decrease primarily from a
decrease in site-lease expenses from lower revenue and cost savings from the restructuring program and $85.6 million related to
movements in foreign exchange.
36
Post-Mer
g
er Pre-Mer
g
er Combined
(In thousands)
Year ended
December 31,
2009
Period from
July 31
through
December 31,
2008
Period from
January 1
through
July 30,
2008
Year ended
December 31,
2008
%
Chan
g
e
Revenue $5,551,909 $2,736,941 $3,951,742 $6,688,683 (17%)
O
p
eratin
g
ex
p
enses:
Direct operating expenses (excludes
de
p
reciation and amortization) 2,583,263 1,198,345 1,706,099 2,904,444 (11%)
Selling, general and administrative
expenses (excludes depreciation
and amortization)
1,466,593 806,787 1,022,459 1,829,246 (20%)
Corporate expenses (excludes
de
p
reciation and amortization) 253,964 102,276 125,669 227,945 11%
De
p
reciation and amortization 765,474 348,041 348,789 696,83
0
10%
Mer
g
er ex
p
enses
—
68,085 87,684 155,769
Im
p
airment char
g
es 4,118,924 5,268,858
—
5,268,858
Other operating income (expense)
–
net (50,837) 13,205 14,827 28,032
O
p
eratin
g
income (loss) (3,687,146) (5,042,246) 675,869 (4,366,377)
Interest ex
p
ense 1,500,866 715,768 213,210 928,978
Gain (loss) on marketable securities (13,371) (116,552) 34,262 (82,290)
Equity in earnings (loss) of
nonconsolidated affiliates
(20,689) 5,804 94,215 100,019
Other income (ex
p
ense)
–
net 679,716 131,505 (5,112) 126,393
Income (loss) before income taxes and
discontinued o
p
erations (4,542,356) (5,737,257) 586,024 (5,151,233)
Income tax benefit (ex
p
ense) 493,320 696,623 (172,583) 524,04
0
Income (loss) before discontinued
o
p
erations (4,049,036) (5,040,634) 413,441 (4,627,193)
Income (loss) from discontinued
o
p
erations, net
—
(1,845) 640,236 638,391
Consolidated net income (loss) (4,049,036) (5,042,479) 1,053,677 (3,988,802)
Amount attributable to
noncontrollin
g
interest (14,950) (481) 17,152 16,671
Net income (loss) attributable to the
Com
p
an
y
$(4,034,086) $(5,041,998) $1,036,525 $ (4,005,473)