iHeartMedia 2011 Annual Report Download - page 35

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RESULTS OF OPERATIONS
Consolidated Results of Operations
The comparison of our historical results of operations for the year ended December 31, 2011 to the year ended
December 31, 2010 is as follows:
Consolidated Revenue
Our consolidated revenue increased $295.7 million during 2011 compared to 2010. Our CCME revenue increased $117.6
million, driven primarily by a $107.1 million increase due to our Traffic acquisition and higher advertising revenues from our digital
radio services primarily as a result of improved rates and increased volume. Americas outdoor revenue increased $46.6 million,
driven by increases in revenue across bulletin, airport and shelter displays, particularly digital displays, as a result of our continued
deployment of new digital displays and increased rates. Our International outdoor revenue increased $159.3 million, primarily from
increased street furniture revenue across our markets and an $82.0 million increase from the impact of movements in foreign
exchange.
Consolidated Direct Operating Expenses
Direct operating expenses increased $122.4 million during 2011 compared to 2010. Our CCME direct operating expenses
increased $40.7 million, primarily due to an increase of $56.6 million related to our Traffic acquisition offset by a decline in music
license fees related to a settlement of prior year license fees. Americas outdoor direct operating expenses increased $18.6 million,
primarily due to increased site lease expense associated with higher airport and bulletin revenue, particularly digital displays, and the
increased deployment of digital displays. Direct operating expenses in our International outdoor segment increased $60.2 million,
primarily from a $52.0 million increase from movements in foreign exchange.
32
•
During 2010, we repaid our remaining 7.65% senior notes upon maturity for $138.8 million with proceeds
from our dela
y
ed draw term loan facilit
y
that was s
p
ecificall
y
desi
g
nated for this
p
ur
p
ose.
•
Durin
g
2010, we received $132.3 million in Federal income tax refunds.
•
On October 15, 2010, CCOH 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.
(In thousands)
Years Ended December 31,
%
2011
2010
Chan
g
e
Revenue
$ 6,161,352
$ 5,865,685
5%
O
p
eratin
g
ex
p
enses:
Direct o
p
eratin
g
ex
p
enses (excludes de
p
reciation and amortization)
2,504,036
2,381,647
5%
Selling, general and administrative expenses (excludes depreciation and
amortization)
1,617,258
1,570,212
3%
Cor
p
orate ex
p
enses (excludes de
p
reciation and amortization)
227,096
284,042
(20%)
De
p
reciation and amortization
763,306
732,869
4%
Im
p
airment char
g
es
7,614
15,364
Other o
p
eratin
g
income (ex
p
ense)
–
net
12,682
(16,710)
O
p
eratin
g
income
1,054,724
864,841
Interest ex
p
ense
1,466,246
1,533,341
Loss on marketable securities
(4,827)
(6,490)
E
q
uit
y
in earnin
g
s of nonconsolidated affiliates
26,958
5,702
Other income (ex
p
ense)
–
net
(4,616)
46,455
Loss before income taxes
(394,007)
(622,833)
Income tax benefit
125,978
159,980
Consolidated net loss
(268,029)
(462,853)
Less amount attributable to noncontrollin
g
interest
34,065
16,236
Net loss attributable to the Com
p
an
y
$ (302,094)
$ (479,089)