iHeartMedia 2012 Annual Report Download - page 18

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reporting units, it is possible a material change could occur. If actual market conditions and operational performance for the
respective reporting units underlying the intangible assets were to deteriorate, or if facts and circumstances change that would more
likely than not reduce the estimated fair value of the indefinite-lived assets or goodwill for these reporting units below their adjusted
carrying amounts, we may also be required to recognize additional impairment charges in future periods, which could have a material
impact on our financial condition and results of operations.
To service our debt obligations and to fund capital expenditures, we will require a significant amount of cash to meet our needs,
which depends on many factors beyond our control
Our ability to service our debt obligations and to fund capital expenditures will require a significant amount of cash. Our
primary source of liquidity is cash on hand, cash flow from operations and borrowing capacity under our receivables based credit
facility, subject to certain limitations contained in our material financing agreements. Based on our current and anticipated levels of
operations and conditions in our markets, we believe that cash on hand, cash flow from operations and borrowing capacity under our
receivables based credit facility will enable us to meet our working capital, capital expenditure, debt service and other funding
requirements for at least the next twelve months. However, our ability to fund our working capital needs, debt service and other
obligations and to comply with the financial covenant under our financing agreements depends on our future operating performance
and cash flow, which are in turn subject to prevailing economic conditions and other factors, many of which are beyond our control. If
our future operating performance does not meet our expectation or our plans materially change in an adverse manner or prove to be
materially inaccurate, we may need additional financing. In addition, the purchase price of possible acquisitions, capital expenditures
for deployment of digital billboards and/or other strategic initiatives could require additional indebtedness or equity financing on our
part. Adverse securities and credit market conditions could significantly affect the availability of equity or debt financing.
Consequently, there can be no assurance that such financing, if permitted under the terms of our financing agreements, will be
available on terms acceptable to us or at all. The inability to obtain additional financing in such circumstances could have a material
adverse effect on our financial condition and on our ability to meet our obligations or pursue strategic initiatives. Additional
indebtedness could increase our leverage and make us more vulnerable to economic downturns and may limit our ability to withstand
competitive pressures.
Our financial performance may be adversely affected by many factors beyond our control
Certain factors that could adversely affect our financial performance by, among other things, decreasing overall revenues, the
numbers of advertising customers, advertising fees or profit margins include:
unfavorable economic conditions, which may cause companies to reduce their expenditures on advertising;
an increased level of competition for advertising dollars, which may lead to lower advertising rates as we attempt to
retain customers or which may cause us to lose customers to our competitors who offer lower rates that we are unable or
unwilling to match;
unfavorable fluctuations in operating costs, which we may be unwilling or unable to pass through to our customers;
technological changes and innovations that we are unable to successfully adopt or are late in adopting that offer more
attractive advertising or listening alternatives than what we offer, which may lead to a loss of advertising customers or to
lower advertising rates;
the impact of potential new royalties charged for terrestrial radio broadcasting, which could materially increase our
expenses;
other changes in governmental regulations and policies and actions of regulatory bodies, which could increase our taxes
or other costs, restrict the advertising media that we employ or restrict some or all of our customers that operate in
regulated areas from using certain advertising media or from advertising at all;
unfavorable shifts in population and other demographics, which may cause us to lose advertising customers as people
migrate to markets where we have a smaller presence or which may cause advertisers to be willing to pay less in
advertising fees if the general population shifts into a less desirable age or geographical demographic from an advertising
perspective; and
unfavorable changes in labor conditions, which may impair our ability to operate or require us to spend more to retain
and attract key employees.
We face intense competition in our media and entertainment and our outdoor advertising businesses
We operate in a highly competitive industry, and we may not be able to maintain or increase our current audience ratings and
advertising and sales revenues. Our media and entertainment and our outdoor advertising businesses compete for audiences and
advertising revenues with other media and entertainment businesses and outdoor advertising businesses, as well as with other media,
such as newspapers, magazines, television, direct mail, portable digital audio players, mobile devices, satellite radio, Internet-based