iHeartMedia 2011 Annual Report Download - page 39

Consolidated Results of Operations
The comparison of our historical results of operations for the year ended December 31, 2010 to the year ended
December 31, 2009 is as follows:
Consolidated Revenue
Consolidated revenue increased $313.8 million during 2010 compared to 2009. Our CCME revenue increased $163.9
million driven by increases in both national and local advertising from average rates per minute. Americas outdoor revenue increased
$51.9 million, driven by revenue increases across most of our advertising inventory, particularly digital. Our International outdoor
revenue increased $48.1 million, primarily due to revenue growth from street furniture across most countries, partially offset by a
$10.3 million decrease from the effects of movements in foreign exchange. Other revenue increased $61.0 million, primarily from
stronger national advertising in our media representation business.
Consolidated Direct Operating Expenses
Direct operating expenses decreased $147.8 million during 2010 compared to 2009. Our CCME direct operating expenses
decreased $77.3 million, primarily from a $29.9 million decline in expenses incurred in connection with our restructuring program
from which cost savings resulted in declines of $26.7 million and $11.0 million in programming expenses and compensation
expenses, respectively. Americas outdoor direct operating expenses decreased $19.5 million, primarily as a result of the disposition of
our taxi advertising business (as described in the “Disposition of Taxi Business” section within this MD&A), partially offset by an
increase in site lease expenses associated with the increase in revenue. Direct operating expenses in our International outdoor segment
decreased $45.6 million, primarily as a result of a $20.4 million decline in expenses incurred in connection with our restructuring
program in addition to decreased site lease expenses associated with cost savings from our restructuring program, and included an
$8.2 million decrease from movements in foreign exchange.
Consolidated SG&A Expenses
SG&A expenses increased $49.8 million during 2010 compared to 2009. Our CCME SG&A expenses increased $45.5
million, primarily as a result of increased bonus and commission expense associated with the increase in revenue. SG&A expenses
increased $16.6 million in our Americas outdoor segment, primarily as a result of increased selling and marketing costs associated
with the increase in revenue in addition to the unfavorable impact of litigation. Our International outdoor SG&A expenses decreased
$6.3 million, primarily as a result of a decrease in business tax related to a change in French tax law, and included a $2.3 million
decrease from movements in foreign exchange.
36
(In thousands)
Years Ended December 31,
2010 2009 % Chan
g
e
Revenue
$ 5,865,685 $ 5,551,909 6%
O
p
eratin
g
ex
p
enses:
Direct operating expenses (excludes depreciation and
amortization)
2,381,647 2,529,454 (6%)
Selling, general and administrative expenses (excludes
de
p
reciation and amortization) 1,570,212 1,520,402 3%
Corporate expenses (excludes depreciation and
amortization)
284,042 253,964 12%
De
p
reciation and amortization 732,869 765,474 (4%)
Im
p
airment char
g
es 15,364 4,118,924
Other o
p
eratin
g
ex
p
ense
–
net (16,710) (50,837)
O
p
eratin
g
income (loss) 864,841 (3,687,146)
Interest ex
p
ense 1,533,341 1,500,866
Loss on marketable securities (6,490) (13,371)
E
q
uit
y
in earnin
g
s (loss) of nonconsolidated affiliates 5,702 (20,689)
Other income
–
net 46,455 679,716
Loss before income taxes (622,833) (4,542,356)
Income tax benefit 159,980 493,320
Consolidated net loss (462,853) (4,049,036)
Less amount attributable to noncontrollin
g
interest 16,236 (14,950)
Net loss attributable to the Com
p
an
y
$ (479,089) $ (4,034,086)