EX-99.1 2 d650437dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

IHEARTMEDIA, INC. REPORTS

SUPPLEMENTAL INFORMATION FOR 2018 THIRD QUARTER

 

 

GAAP Measures by Segment

 

(In thousands)    Three Months Ended
September 30,
   

%

Change

    Nine Months Ended
September 30,
   

%

Change

 
     2018     2017     2018     2017  

Revenue

            

iHM

   $ 873,404     $ 859,531       1.6   $ 2,471,239     $ 2,501,084       (1.2 )% 

Americas Outdoor

     303,421       293,807       3.3     859,190       854,344       0.6

International Outdoor

     360,318       350,623       2.8     1,114,927       1,005,954       10.8

Other

     47,088       34,452       36.7     113,803       99,332       14.6

Eliminations

     (1,466     (1,656       (5,904     (5,444  
  

 

 

   

 

 

     

 

 

   

 

 

   

Consolidated revenue

   $ 1,582,765     $ 1,536,757       3.0   $ 4,553,255     $ 4,455,270       2.2
  

 

 

   

 

 

     

 

 

   

 

 

   

Direct Operating and SG&A expenses1

            

iHM

   $ 572,057     $ 553,471       3.4   $ 1,702,732     $ 1,667,996       2.1

Americas Outdoor

     180,488       179,276       0.7     532,448       542,777       (1.9 )% 

International Outdoor

     309,990       307,209       0.9     944,952       866,995       9.0

Other

     25,985       23,298       11.5     74,420       74,522       (0.1 )% 

Eliminations

     (499     (717       (3,058     (2,694  
  

 

 

   

 

 

     

 

 

   

 

 

   

Consolidated Direct Operating and SG&A expenses

   $ 1,088,021     $ 1,062,537       2.4   $ 3,251,494     $ 3,149,596       3.2
  

 

 

   

 

 

     

 

 

   

 

 

   

Operating Income

            

iHM

   $ 266,465     $ 247,971       7.5   $ 618,793     $ 658,142       (6.0 )% 

Americas Outdoor

     83,150       70,074       18.7     199,332       181,440       9.9

International Outdoor

     13,701       7,950       72.3     56,100       36,248       54.8

Other

     17,881       7,261       146.3     29,141       13,713       112.5

Corporate2

     (91,346     (86,752     (5.3 )%      (263,936     (261,006     (1.1 )% 

Impairment charges

     (40,922     (7,631     436.3     (40,922     (7,631     436.3

Other operating income (loss), net

     (1,637     (13,215       (5,212     24,785    
  

 

 

   

 

 

     

 

 

   

 

 

   

Consolidated Operating Income

   $ 247,292     $ 225,658       9.6   $ 593,296     $ 645,691       (8.1 )% 
  

 

 

   

 

 

     

 

 

   

 

 

   

 

1 

Direct Operating and SG&A Expenses as included herein refers to the sum of Direct operating expenses (excludes depreciation and amortization) and Selling, general and administrative expenses (excludes depreciation and amortization).

2 

Includes Corporate depreciation and amortization of $6.2 million and $7.8 million for the three months ended September 30, 2018 and 2017, respectively, and $18.5 million and $24.8 million for the nine months ended September 30, 2018 and 2017, respectively.

 

1


Non-GAAP Measures1 (see preceding table for comparable GAAP measures)

 

(In thousands)    Three Months Ended
September 30,
   

%

Change

    Nine Months Ended
September 30,
   

%

Change

 
     2018     2017     2018     2017  

Revenue, excluding movements in foreign exchange

            

iHM

   $ 873,404     $ 859,531       1.6   $ 2,471,239     $ 2,501,084       (1.2 )% 

Americas Outdoor

     303,422       293,807       3.3     859,193       854,344       0.6

International Outdoor

     369,716       350,623       5.4     1,067,058       1,005,954       6.1

Other

     47,088       34,452       36.7     113,803       99,332       14.6

Eliminations

     (1,466     (1,656       (5,904     (5,444  
  

 

 

   

 

 

     

 

 

   

 

 

   

Consolidated revenue excluding movements in foreign exchange

   $ 1,592,164     $ 1,536,757       3.6   $ 4,505,389     $ 4,455,270       1.1
  

 

 

   

 

 

     

 

 

   

 

 

   

Direct Operating and SG&A expenses, excluding movements in foreign exchange

            

iHM

   $ 572,057     $ 553,471       3.4   $ 1,702,732     $ 1,667,996       2.1

Americas Outdoor

     180,490       179,276       0.7     532,453       542,777       (1.9 )% 

International Outdoor

     317,714       307,209       3.4     901,856       866,995       4.0

Other

     25,985       23,298       11.5     74,420       74,522       (0.1 )% 

Eliminations

     (499     (717       (3,058     (2,694  
  

 

 

   

 

 

     

 

 

   

 

 

   

Consolidated Direct Operating and SG&A expenses, excluding movements in foreign exchange

   $ 1,095,747     $ 1,062,537       3.1   $ 3,208,403     $ 3,149,596       1.9
  

 

 

   

 

 

     

 

 

   

 

 

   

OIBDAN

            

iHM

   $ 301,347     $ 306,060       (1.5 )%    $ 768,507     $ 833,088       (7.8 )% 

Americas Outdoor

     122,933       114,531       7.3     326,742       311,567       4.9

International Outdoor

     50,328       43,414       15.9     169,975       138,959       22.3

Other

     21,103       11,154       89.2     39,383       24,810       58.7

Corporate

     (80,605     (74,428     (8.3 )%      (234,168     (224,467     (4.3 )% 

Eliminations

     (967     (939       (2,846     (2,750  
  

 

 

   

 

 

     

 

 

   

 

 

   

Consolidated OIBDAN

   $ 414,139     $ 399,792       3.6   $ 1,067,593     $ 1,081,207       (1.3 )% 
  

 

 

   

 

 

     

 

 

   

 

 

   

OIBDAN, excluding movements in foreign exchange

            

iHM

   $ 301,347     $ 306,060       (1.5 )%    $ 768,507     $ 833,088       (7.8 )% 

Americas Outdoor

     122,932       114,531       7.3     326,740       311,567       4.9

International Outdoor

     52,002       43,414       19.8     165,202       138,959       18.9

Other

     21,103       11,154       89.2     39,383       24,810       58.7

Corporate

     (80,636     (74,428     (8.3 )%      (232,800     (224,467     (3.7 )% 

Eliminations

     (967     (939       (2,846     (2,750  
  

 

 

   

 

 

     

 

 

   

 

 

   

Consolidated OIBDAN, excluding movements in foreign exchange

   $ 415,781     $ 399,792       4.0   $ 1,064,186     $ 1,081,207       (1.6 )% 
  

 

 

   

 

 

     

 

 

   

 

 

   

Revenue excluding effects of foreign exchange and revenue from outdoor business sold

            

Americas Outdoor

   $ 303,422     $ 291,210       4.2   $ 859,193     $ 840,664       2.2

Consolidated revenue, excluding effects of foreign exchange and revenue from outdoor businesses sold

   $ 1,592,164     $ 1,534,160       3.8   $ 4,505,389     $ 4,441,590       1.4

OIBDAN excluding effects of foreign exchange and revenue from outdoor business sold

            

Americas Outdoor

   $ 122,932     $ 114,354       7.5   $ 326,740     $ 311,472       4.9

Consolidated OIBDAN, excluding effects of foreign exchange and revenue from outdoor businesses sold

   $ 415,781     $ 399,615       4.0   $ 1,064,186     $ 1,081,112       (1.6 )% 

Certain prior period amounts have been reclassified to conform to the 2018 presentation of financial information.

 

1 

See the end of this disclosure for reconciliations of (i) OIBDAN, excluding effects of foreign exchange rates and OIBDAN for each segment, to consolidated and segment operating income (loss); (ii) revenues, excluding effects of foreign exchange

 

2


  rates, to revenues (iii); direct operating and SG&A expenses, excluding effects of foreign exchange rates, to direct operating and SG&A expenses; (iv) revenues, excluding political advertising revenues, to revenues; (v) corporate expenses, excluding non-cash compensation expenses and effects of foreign exchange rates, to corporate expenses; (vi) consolidated and outdoor revenues, excluding effects of foreign exchange rates and results from outdoor business sold, to consolidated and outdoor revenues; (vii) consolidated and outdoor direct operating and SG&A expenses, excluding the effects of foreign exchange rates and results from outdoor business sold, to consolidated and outdoor direct operating and SG&A expenses; and (vii) consolidated and outdoor OIBDAN, excluding effects of foreign exchange rates and results from outdoor business sold, to consolidated and outdoor operating income. See also the definition of OIBDAN under the Supplemental Disclosure section in this disclosure.

Supplemental Disclosure Regarding Non-GAAP Financial Information

The following tables set forth the Company’s OIBDAN for the three and nine months ended September 30, 2018 and 2017. The Company defines OIBDAN as consolidated operating income adjusted to exclude non-cash compensation expenses, included within corporate expenses, as well as the following line items presented in its Statement of Comprehensive Loss: Depreciation and amortization; Impairment charges; and Other operating income (expense), net.

The Company uses OIBDAN, among other measures, to evaluate the Company’s operating performance. This measure is among the primary measures used by management for the planning and forecasting of future periods, as well as for measuring performance for compensation of executives and other members of management. We believe this measure is an important indicator of the Company’s operational strength and performance of its business because it provides a link between operational performance and operating income. It is also a primary measure used by management in evaluating companies as potential acquisition targets.

The Company believes the presentation of this measure is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by the Company’s management. The Company believes it helps improve investors’ ability to understand the Company’s operating performance and makes it easier to compare the Company’s results with other companies that have different capital structures or tax rates. In addition, the Company believes this measure is also among the primary measures used externally by the Company’s investors, analysts and peers in its industry for purposes of valuation and comparing the operating performance of the Company to other companies in its industry.

Since OIBDAN is not a measure calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, operating income as an indicator of operating performance and may not be comparable to similarly titled measures employed by other companies. OIBDAN is not necessarily a measure of the Company’s ability to fund its cash needs. As it excludes certain financial information compared with operating income, the most directly comparable GAAP financial measure, users of this financial information should consider the types of events and transactions which are excluded.

The other non-GAAP financial measures presented in the tables below are: (i) revenues, direct operating and SG&A expenses and OIBDAN, each excluding the effects of foreign exchange rates; (ii) revenues, direct operating and SG&A expenses and OIBDAN, each excluding the effects of foreign exchange rates and the results from outdoor business sold; (iii) revenues, excluding political advertising revenues and (iv) corporate expenses, excluding non-cash compensation expenses and effects of foreign exchange rates.

The Company presents revenues, direct operating and SG&A expenses and OIBDAN, each excluding the effects of foreign exchange rates, because management believes that viewing certain financial results without the impact of fluctuations in foreign currency rates facilitates period to period comparisons of business performance and provides useful information to investors. A significant portion of the Company’s advertising operations are conducted in foreign markets, principally Europe, the U.K. and China, and management reviews the results from its foreign operations on a constant dollar basis. Revenues, direct operating and SG&A expenses and OIBDAN, each excluding the effects of foreign exchange rates, are calculated by converting the current period’s amounts in local currency to U.S. dollars using average foreign exchange rates for the prior period.

 

3


In the third quarter of 2018, we sold our outdoor business in Canada. The Company presents revenues, direct operating and SG&A expenses and OIBDAN, each excluding the effects of foreign exchange rates and the results from the business sold, for the consolidated Company and the Company’s segments, in order to facilitate investors’ understanding of operational trends without the impact of fluctuations in foreign currency rates and without the results from the markets and businesses that were sold, as these results will not be included in the Company’s results in current and future periods.

The Company presents revenues, excluding the effects of political revenue. Due to the cyclical nature of the electoral system and the seasonality of the related political revenues, management believes presenting revenue, excluding the effects of political revenue, provides additional information to investors about the Company’s revenue growth from period to period.

Corporate expenses, excluding the effects of non-cash compensation expenses and the effects of foreign exchange rates, is presented as OIBDAN excludes non-cash compensation expenses.

Since these non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, the most directly comparable GAAP financial measures as an indicator of operating performance.

As required by the SEC rules, the Company provides reconciliations below to the most directly comparable amounts reported under GAAP, including (i) OIBDAN, excluding effects of foreign exchange rates and OIBDAN for each segment, to consolidated and segment operating income (loss); (ii) revenues, excluding effects of foreign exchange rates, to revenues (iii); direct operating and SG&A expenses, excluding effects of foreign exchange rates, to direct operating and SG&A expenses; (iv) revenues, excluding political advertising revenues, to revenues; (v) corporate expenses, excluding non-cash compensation expenses and effects of foreign exchange rates, to corporate expenses; (vi) consolidated and outdoor revenues, excluding effects of foreign exchange rates and results from outdoor business sold, to consolidated and outdoor revenues; (vii) consolidated and outdoor direct operating and SG&A expenses, excluding the effects of foreign exchange rates and results from outdoor business sold, to consolidated and outdoor direct operating and SG&A expenses; and (vii) consolidated and outdoor OIBDAN, excluding effects of foreign exchange rates and results from outdoor business sold, to consolidated and outdoor operating income.

 

4


Reconciliation of OIBDAN, excluding effects of foreign exchange rates and OIBDAN for each segment, to Consolidated and Segment Operating Income (Loss)

 

(In thousands)

   OIBDAN,
excluding
effects of
foreign
exchange
    Effects of
foreign
exchange
    OIBDAN
(subtotal)
    Non-cash
compensation
expenses
     Depreciation
and
amortization
     Impairment
charges
     Other
operating
(income)
expense, net
     Operating
income (loss)
 

Three Months Ended September 30, 2018

 

iHM

   $ 301,347     $ —       $ 301,347     $ —        $ 34,882      $ —        $ —        $ 266,465  

Americas Outdoor

     122,932       1       122,933       —          39,783        —          —          83,150  

International Outdoor

     52,002       (1,674     50,328       —          36,627        —          —          13,701  

Other

     21,103       —         21,103       —          3,222        —          —          17,881  

Corporate

     (80,636     31       (80,605     3,588        6,186        —          —          (90,379

Impairment charges

     —         —         —         —          —          40,922        —          (40,922

Other operating expense, net

     —         —         —         —          —          —          1,637        (1,637

Eliminations

     (967     —         (967     —          —          —          —          (967
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Consolidated

   $ 415,781     $ (1,642   $ 414,139     $ 3,588      $ 120,700      $ 40,922      $ 1,637      $ 247,292  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Three Months Ended September 30, 2017

 

iHM

   $ 306,060     $ —       $ 306,060     $ —        $ 58,089      $ —        $ —        $ 247,971  

Americas Outdoor

     114,531       —         114,531       —          44,457        —          —          70,074  

International Outdoor

     43,414       —         43,414       —          35,464        —          —          7,950  

Other

     11,154       —         11,154       —          3,893        —          —          7,261  

Corporate

     (74,428     —         (74,428     3,539        7,846        —          —          (85,813

Impairment charges

     —         —         —         —          —          7,631        —          (7,631

Other operating expense, net

     —         —         —         —          —          —          13,215        (13,215

Eliminations

     (939     —         (939     —          —          —          —          (939
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Consolidated

   $ 399,792     $ —       $ 399,792     $ 3,539      $ 149,749      $ 7,631      $ 13,215      $ 225,658  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

5


(In thousands)

   OIBDAN,
excluding
effects of
foreign
exchange
    Effects of
foreign
exchange
    OIBDAN
(subtotal)
    Non-cash
compensation
expenses
     Depreciation
and
amortization
     Impairment
charges
     Other
operating
(income)
expense, net
    Operating
income (loss)
 

Nine Months Ended September 30, 2018

 

iHM

   $ 768,507     $ —       $ 768,507     $ —        $ 149,714      $ —        $ —       $ 618,793  

Americas Outdoor

     326,740       2       326,742       —          127,410        —          —         199,332  

International Outdoor

     165,202       4,773       169,975       —          113,875        —          —         56,100  

Other

     39,383       —         39,383       —          10,242        —          —         29,141  

Corporate

     (232,800     (1,368     (234,168     8,385        18,537        —          —         (261,090

Impairment charges

     —         —         —         —          —          40,922        —         (40,922

Other operating income, net

     —           —         —          —          —          5,212       (5,212

Eliminations

     (2,846       (2,846     —          —          —          —         (2,846
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Consolidated

   $ 1,064,186     $ 3,407     $ 1,067,593     $ 8,385      $ 419,778      $ 40,922      $ 5,212     $ 593,296  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Nine Months Ended September 30, 2017

 

iHM

   $ 833,088     $ —       $ 833,088     $ —        $ 174,946      $ —        $ —       $ 658,142  

Americas Outdoor

     311,567       —         311,567       —          130,127        —          —         181,440  

International Outdoor

     138,959       —         138,959       —          102,711        —          —         36,248  

Other

     24,810       —         24,810       —          11,097        —          —         13,713  

Corporate

     (224,467     —         (224,467     9,020        24,769        —          —         (258,256

Impairment charges

     —         —         —         —          —          7,631        —         (7,631

Other operating income, net

     —         —         —         —          —          —          (24,785     24,785  

Eliminations

     (2,750     —         (2,750     —          —          —          —         (2,750
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Consolidated

   $ 1,081,207     $ —       $ 1,081,207     $ 9,020      $ 443,650      $ 7,631      $ (24,785   $ 645,691  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Reconciliation of Revenues, excluding effects of foreign exchange rates, to Revenues

 

(In thousands)    Three Months Ended
September 30,
    

%

Change

    Nine Months Ended
September 30,
    

%

Change

 
     2018      2017     2018     2017  

Consolidated revenue

   $ 1,582,765      $ 1,536,757        3.0   $ 4,553,255     $ 4,455,270        2.2

Excluding: Foreign exchange increase

     9,399        —            (47,866     —       
  

 

 

    

 

 

      

 

 

   

 

 

    

Consolidated revenue, excluding effects of foreign exchange

   $ 1,592,164      $ 1,536,757        3.6   $ 4,505,389     $ 4,455,270        1.1
  

 

 

    

 

 

      

 

 

   

 

 

    

Americas Outdoor revenue

   $ 303,421      $ 293,807        3.3   $ 859,190     $ 854,344        0.6

Excluding: Foreign exchange increase

     1        —            3       —       
  

 

 

    

 

 

      

 

 

   

 

 

    

Americas Outdoor revenue, excluding effects of foreign exchange

   $ 303,422      $ 293,807        3.3   $ 859,193     $ 854,344        0.6
  

 

 

    

 

 

      

 

 

   

 

 

    

International Outdoor revenue

   $ 360,318      $ 350,623        2.8   $ 1,114,927     $ 1,005,954        10.8

Excluding: Foreign exchange increase

     9,398        —            (47,869     —       
  

 

 

    

 

 

      

 

 

   

 

 

    

International Outdoor revenue, excluding effects of foreign exchange

   $ 369,716      $ 350,623        5.4   $ 1,067,058     $ 1,005,954        6.1
  

 

 

    

 

 

      

 

 

   

 

 

    

 

6


Reconciliation of Direct operating and SG&A expenses, excluding effects of foreign exchange rates, to Direct operating and SG&A expenses

 

(In thousands)    Three Months Ended
September 30,
    

%

Change

    Nine Months Ended
September 30,
    

%

Change

 
     2018      2017     2018     2017  

Consolidated direct operating and SG&A expenses

   $ 1,088,021      $ 1,062,537        2.4   $ 3,251,494     $ 3,149,596        3.2

Excluding: Foreign exchange increase

     7,726        —            (43,091     —       
  

 

 

    

 

 

      

 

 

   

 

 

    

Consolidated direct operating and SG&A expenses, excluding effects of foreign exchange

   $ 1,095,747      $ 1,062,537        3.1   $ 3,208,403     $ 3,149,596        1.9
  

 

 

    

 

 

      

 

 

   

 

 

    

Americas Outdoor direct operating and SG&A expenses

   $ 180,488      $ 179,276        0.7   $ 532,448     $ 542,777        (1.9 )% 

Excluding: Foreign exchange increase

     2        —            5       —       
  

 

 

    

 

 

      

 

 

   

 

 

    

Americas Outdoor direct operating and SG&A expenses, excluding effects of foreign exchange

   $ 180,490      $ 179,276        0.7   $ 532,453     $ 542,777        (1.9 )% 
  

 

 

    

 

 

      

 

 

   

 

 

    

International Outdoor direct operating and SG&A expenses

   $ 309,990      $ 307,209        0.9   $ 944,952     $ 866,995        9.0

Excluding: Foreign exchange increase

     7,724        —            (43,096     —       
  

 

 

    

 

 

      

 

 

   

 

 

    

International Outdoor direct operating and SG&A expenses, excluding effects of foreign exchange

   $ 317,714      $ 307,209        3.4   $ 901,856     $ 866,995        4.0
  

 

 

    

 

 

      

 

 

   

 

 

    

Reconciliation of Revenues, excluding Political Advertising Revenues, to Revenues

 

(In thousands)    Three Months Ended
September 30,
   

%

Change

    Nine Months Ended
September 30,
   

%

Change

 
     2018     2017     2018     2017  

Consolidated revenue

   $ 1,582,765     $ 1,536,757       3.0   $ 4,553,255     $ 4,455,270       2.2

Excluding: Political revenue

     (23,971     (7,305       (49,807     (18,927  
  

 

 

   

 

 

     

 

 

   

 

 

   

Consolidated revenue, excluding effects of political revenue

   $ 1,558,794     $ 1,529,452       1.9   $ 4,503,448     $ 4,436,343       1.5
  

 

 

   

 

 

     

 

 

   

 

 

   

iHM revenue

   $ 873,404     $ 859,531       1.6   $ 2,471,239     $ 2,501,084       (1.2 )% 

Excluding: Political revenue

     (11,528     (5,288       (29,087     (13,618  
  

 

 

   

 

 

     

 

 

   

 

 

   

iHM revenue excluding, effects of political revenue

   $ 861,876     $ 854,243       0.9   $ 2,442,152     $ 2,487,466       (1.8 )% 
  

 

 

   

 

 

     

 

 

   

 

 

   

Americas Outdoor revenue

   $ 303,421     $ 293,807       3.3   $ 859,190     $ 854,344       0.6

Excluding: Political revenue

     (846     (586       (2,597     (1,960  
  

 

 

   

 

 

     

 

 

   

 

 

   

Americas Outdoor revenue, excluding effects of political revenue

   $ 302,575     $ 293,221       3.2   $ 856,593     $ 852,384       0.5
  

 

 

   

 

 

     

 

 

   

 

 

   

Other revenue

   $ 47,088     $ 34,452       36.7   $ 113,803     $ 99,332       14.6

Excluding: Political revenue

     (11,597     (1,431       (18,123     (3,349  
  

 

 

   

 

 

     

 

 

   

 

 

   

Other revenue, excluding effects of political revenue

   $ 35,491     $ 33,021       7.5   $ 95,680     $ 95,983       (0.3 )% 
  

 

 

   

 

 

     

 

 

   

 

 

   

 

7


Reconciliation of Corporate Expenses, excluding Non-cash compensation expenses and effects of foreign exchange rates, to Corporate Expenses

 

(In thousands)    Three Months Ended
September 30,
   

%

Change

    Nine Months Ended
September 30,
   

%

Change

 
     2018     2017     2018     2017  

Corporate Expense

   $ 84,193     $ 77,967       8.0   $ 242,553     $ 233,487       3.9

Excluding: Non-cash compensation expense

     (3,588     (3,539       (8,385     (9,020  
  

 

 

   

 

 

     

 

 

   

 

 

   

Corporate Expense, excluding non-cash compensation expense

   $ 80,605     $ 74,428       8.3   $ 234,168     $ 224,467       4.3

Excluding: Foreign exchange increase

     31       —           (1,368     —      
  

 

 

   

 

 

     

 

 

   

 

 

   

Corporate Expense, excluding non-cash compensation expense and movements in foreign exchange

   $ 80,636     $ 74,428       8.3   $ 232,800     $ 224,467       3.7
  

 

 

   

 

 

     

 

 

   

 

 

   

Reconciliation of Consolidated and Outdoor Revenues, excluding effects of foreign exchange rates and results from outdoor business sold, to Consolidated and Outdoor Revenues

 

(In thousands)    Three Months Ended
September 30,
   

%

Change

    Nine Months Ended
September 30,
   

%

Change

 
     2018      2017     2018     2017  

Consolidated revenue

   $ 1,582,765      $ 1,536,757       3.0   $ 4,553,255     $ 4,455,270       2.2

Excluding: Revenue from outdoor business sold

     —          (2,597       —         (13,680  

Excluding: Foreign exchange increase

     9,399        —           (47,866     —      
  

 

 

    

 

 

         

Consolidated revenue, excluding effects of foreign exchange and revenue from outdoor business sold

   $ 1,592,164      $ 1,534,160       3.8   $ 4,505,389     $ 4,441,590       1.4
  

 

 

    

 

 

     

 

 

   

 

 

   

Americas Outdoor revenue

   $ 303,421      $ 293,807       3.3   $ 859,190     $ 854,344       0.6

Excluding: Revenue from markets and business sold

     —          (2,597       —         (13,680  

Excluding: Foreign exchange increase

     1        —           3       —      
  

 

 

    

 

 

     

 

 

   

 

 

   

Americas Outdoor revenue, excluding effects of foreign exchange and revenue from markets and business sold

   $ 303,422      $ 291,210       4.2   $ 859,193     $ 840,664       2.2
  

 

 

    

 

 

     

 

 

   

 

 

   

Reconciliation of Consolidated and Outdoor Direct operating and SG&A expenses, excluding effects of foreign exchange rates and results from outdoor business sold, to Consolidated and Outdoor Direct operating and SG&A expenses

 

(In thousands)    Three Months Ended
September 30,
   

%

Change

    Nine Months Ended
September 30,
   

%

Change

 
     2018      2017     2018     2017  

Consolidated direct operating and SG&A expenses

   $ 1,088,021      $ 1,062,537       2.4   $ 3,251,494     $ 3,149,596       3.2

Excluding: Operating expenses from outdoor business sold

     —          (2,420       —         (13,585  

Excluding: Foreign exchange increase

     7,726        —           (43,091     —      
             

Consolidated direct operating and SG&A expenses, excluding effects of foreign exchange and operating expenses from outdoor business sold

   $ 1,095,747      $ 1,060,117       3.4   $ 3,208,403     $ 3,136,011       2.3
  

 

 

    

 

 

     

 

 

   

 

 

   

Americas Outdoor direct operating and SG&A expenses

   $ 180,488      $ 179,276       0.7   $ 532,448     $ 542,777       (1.9 )% 

Excluding: Operating expenses from markets and business sold

     —          (2,420       —         (13,585  

Excluding: Foreign exchange decrease

     2        —           5       —      
  

 

 

    

 

 

     

 

 

   

 

 

   

Americas Outdoor direct operating and SG&A expenses, excluding effects of foreign exchange and operating expenses from markets and business sold

   $ 180,490      $ 176,856       2.1   $ 532,453     $ 529,192       0.6
  

 

 

    

 

 

     

 

 

   

 

 

   

 

8


Reconciliation of Consolidated and Outdoor OIBDAN, excluding effects of foreign exchange rates and results from outdoor business sold, to Consolidated and Outdoor Operating income

 

(In thousands)    Three Months Ended
September 30,
   

%

Change

    Nine Months Ended
September 30,
   

%

Change

 
     2018     2017     2018     2017  

Consolidated operating income

   $ 247,292     $ 225,658       9.6   $ 593,296     $ 645,691       (8.1 )% 

Excluding: Revenue, direct operating and SG&A expenses from outdoor business sold

     —         (177       —         (95  

Excluding: Foreign exchange increase

     1,642       —           (3,407     —      

Excluding: Non-cash compensation expenses

     3,588       3,539         8,385       9,020    

Excluding: Depreciation and amortization

     120,700       149,749         419,778       443,650    

Excluding: Other operating (income) expense, net

     1,637       13,215         5,212       (24,785  
  

 

 

   

 

 

     

 

 

   

 

 

   

Consolidated OIBDAN, excluding effects of foreign exchange and OIBDAN from outdoor business sold

   $ 415,781     $ 399,615       4.0   $ 1,064,186     $ 1,081,112       (1.6 )% 
  

 

 

   

 

 

     

 

 

   

 

 

   

Americas Outdoor operating income

   $ 83,150     $ 70,074       18.7   $ 199,332     $ 181,440       9.9

Excluding: Revenue, direct operating and SG&A expenses from markets and business sold

     —         (177       —         (95  

Excluding: Foreign exchange decrease

     (1     —           (2     —      

Excluding: Depreciation and amortization

     39,783       44,457         127,410       130,127    
  

 

 

   

 

 

     

 

 

   

 

 

   

Americas Outdoor OIBDAN, excluding effects of foreign exchange and OIBDAN from markets and business sold

   $ 122,932     $ 114,354       7.5   $ 326,740     $ 311,472       4.9
  

 

 

   

 

 

     

 

 

   

 

 

   

Certain statements herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of iHeartMedia, Inc. and its subsidiaries, including iHeartMedia Capital I, LLC, iHeartCommunications, Inc. and Clear Channel Outdoor Holdings, Inc., to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The words or phrases “guidance,” “believe,” “expect,” “anticipate,” “estimates,” “forecast” and similar words or expressions are intended to identify such forward-looking statements. In addition, any statements that refer to expectations or other characterizations of future events or circumstances, such as statements about our business plans, strategies and initiatives, our expectations about certain markets and our liquidity, are forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Various risks that could cause future results to differ from those expressed by the forward-looking statements included herein include, but are not limited to: the Company’s ability to continue as a going concern; the impact of the Company’s substantial indebtedness, including the effect of the Company’s leverage on its financial position and earnings; the Company’s ability to generate sufficient cash from operations and liquidity-generating transactions to make payments on its indebtedness; weak or uncertain global economic conditions; changes in general economic and political conditions in the United States and in other countries in which the Company currently does business; industry conditions, including competition; the level of expenditures on advertising; legislative or regulatory requirements; fluctuations in operating costs; technological changes and innovations; changes in labor conditions; capital expenditure requirements; risks of doing business in foreign countries; fluctuations in exchange rates and currency values; the outcome of pending and future litigation; taxes and tax disputes; changes in interest rates; shifts in population and other demographics; access to capital markets and borrowed indebtedness; the Company’s ability to implement its business strategies; risks relating to the successful integration of the operations of acquired businesses; and risks that the anticipated cost savings from the Company’s strategic revenue and efficiency initiatives may not persist. Other unknown or unpredictable factors also could have material adverse effects on the Company’s future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed herein may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date hereof. Other key

 

9


risks are described in the Company’s reports filed with the U.S. Securities and Exchange Commission, including in the section entitled “Item 1A. Risk Factors” of iHeartMedia, Inc.’s, Clear Channel Outdoor Holdings, Inc.’s, iHeartMedia Capital I, LLC’s and iHeartCommunications, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Except as otherwise stated herein, the Company does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

 

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