iHeartMedia 2011 Annual Report Download - page 42

CCME Results of Operations
Our CCME operating results were as follows:
CCME revenue increased $163.9 million during 2010 compared to 2009, driven primarily by a $79.5 million increase in
national advertising and a $51.0 million increase in local advertising. Average rates per minute increased during 2010 compared to
2009 as a result of improved economic conditions. Increases occurred across various advertising categories including automotive,
political, food and beverage and healthcare.
Direct operating expenses decreased $77.3 million during 2010 compared to 2009, primarily from a $29.9 million decline
in expenses incurred in connection with our restructuring program. Cost savings from our restructuring program resulted in declines
of $26.7 million and $11.0 million in programming expenses and compensation expenses, respectively. Direct operating expenses
declined further from the non-renewals of sports contracts, offset by the impact of $8.0 million associated with the finalization of
purchase accounting during 2009. SG&A expenses increased $45.5 million, primarily as a result of a $26.6 million increase in bonus
and commission expense associated with the increase in revenue in addition to a $24.1 million increase in selling and marketing
expenses.
Depreciation and amortization decreased $4.6 million during 2010 compared to 2009. The 2009 results included $8.0
million of additional amortization expense associated with the finalization of purchase price allocations to the acquired intangible
assets.
Americas Outdoor Advertising Results of Operations
D
isposition of Taxi Business
On December 31, 2009, our subsidiary, Clear Channel Outdoor, Inc. (“CCOI”), disposed of Clear Channel Taxi Media,
LLC (“Taxis”), our taxi advertising business. For the year ended December 31, 2009, Taxis contributed $41.5 million in revenue,
$39.8 million in direct operating expenses and $10.5 million in SG&A expenses.
Our Americas outdoor operating results were as follows:
Americas outdoor revenue increased $51.9 million during 2010 compared to 2009 as a result of revenue growth across most of
our advertising inventory, particularly digital. The increase was driven by increases in both occupancy and rate. Partially offsetting
the revenue increase was the decrease in revenue related to the sale of Taxis.
Direct operating expenses decreased $19.5 million during 2010 compared to 2009. The decline in direct operating expenses was
due to the disposition of Taxis, partially offset by a $20.2 million increase in site-lease expenses associated with the increase in
revenue. SG&A expenses increased $16.6 million as a result of a $6.3 million increase primarily related to the unfavorable impact of
litigation, a $4.7 million increase in consulting costs and a $6.2 million increase primarily due to bonus and commission expenses
associated with the increase in revenue, partially offset by the disposition of Taxis.
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(In thousands)
Years Ended December 31,
2010 2009 % Chan
g
e
Revenue
$2,869,224 $2,705,367 6%
Direct o
p
eratin
g
ex
p
enses 808,592 885,870 (9%)
SG&A ex
p
enses 963,853 918,397 5%
De
p
reciation and amortization 256,673 261,246 (2%)
O
p
eratin
g
income $840,106 $639,854 31%
(In thousands)
Years Ended December 31,
2010 2009 % Chan
g
e
Revenue
$1,290,014 $1,238,171 4%
Direct o
p
eratin
g
ex
p
enses 588,592 608,078 (3%)
SG&A ex
p
enses 218,776 202,196 8%
De
p
reciation and amortization 209,127 210,280 (1%)
O
p
eratin
g
income $273,519 $217,617 26%