iHeartMedia 2012 Annual Report Download - page 37

Download and view the complete annual report

Please find page 37 of the 2012 iHeartMedia annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 150

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150

34
Consolidated Results of Operations
The comparison of our historical results of operations for the year ended December 31, 2012 to the year ended December 31,
2011 is as follows:
(In thousands)
Years Ended December 31,
%
2012
2011
Change
Revenue
$
6,246,884
$
6,161,352
1%
Operating expenses:
Direct operating expenses (excludes depreciation and
amortization)
2,496,550
2,504,036
(0%)
Selling, general and administrative expenses
(excludes depreciation and amortization)
1,673,447
1,617,258
3%
Corporate expenses (excludes depreciation and
amortization)
288,028
227,096
27%
Depreciation and amortization
729,285
763,306
(4%)
Impairment charges
37,651
7,614
394%
Other operating income – net
48,127
12,682
279%
Operating income
1,070,050
1,054,724
1%
Interest expense
1,549,023
1,466,246
Loss on marketable securities
(4,580)
(4,827)
Equity in earnings of nonconsolidated affiliates
18,557
26,958
Loss on extinguishment of debt
(254,723)
(1,447)
Other income (expense) – net
250
(3,169)
Loss before income taxes
(719,469)
(394,007)
Income tax benefit
308,279
125,978
Consolidated net loss
(411,190)
(268,029)
Less amount attributable to noncontrolling interest
13,289
34,065
Net loss attributable to the Company
$
(424,479)
$
(302,094)
Consolidated Revenue
Our consolidated revenue increased $85.5 million including the impact of negative movements in foreign exchange of
$79.3 million compared to 2011. Excluding the impact of foreign exchange movements, revenue increased $164.8 million. CCME
revenue increased $98.0 million, driven by growth of $79.0 million from national and local advertising including political,
telecommunications and auto, and higher advertising revenues from our digital services primarily as a result of higher listening hours
and event sponsorship. Americas outdoor revenue increased $26.5 million, driven primarily by bulletin revenue growth as a result of
our continued deployment of new digital displays during 2012 and 2011 and revenue growth from our airports business. International
outdoor revenue decreased $83.5 million including the impact of negative movements in foreign exchange of $78.9 million compared
to 2011. Excluding the impact of foreign exchange movements, International outdoor revenue decreased $4.6 million. Declines in
certain countries as a result of weakened macroeconomic conditions and our divestiture of our international neon business during the
third quarter of 2012 were partially offset by growth in street furniture and billboard revenue in other countries. Our Other segment
revenue grew by $47.3 million as a result of increased political advertising through our media representation business during the
election year in the United States.
Consolidated Direct Operating Expenses
Direct operating expenses decreased $7.5 million including a $49.7 million decline due to the effects of movements in
foreign exchange compared to 2011. CCME direct operating expenses increased $23.9 million, primarily due to an increase in digital
expenses related to our iHeartRadio digital platform including higher digital streaming fees due to increased listening hours and rates
and personnel costs. In addition, an increase of $29.6 million related to our traffic acquisition was partially offset by a decline in
music license fees of $23.2 million. Americas outdoor direct operating expenses increased $14.9 million, primarily due to increased