CC Media Holdings: Supplemental Information For 2019 First Quarter

The following excerpt is from the company's SEC filing.

GAAP Measures by Segment

(In thousands)

Three Months Ended

March 31,

Change

Revenue

765,810

744,568

Americas Outdoor

272,722

255,847

International Outdoor

314,394

342,551

30,190

28,218

Eliminations

(1,217

(1,536

Consolidated revenue

1,381,899

1,369,648

Direct Operating and SG&A expenses

574,843

562,336

182,155

173,823

288,638

314,874

25,252

24,822

Consolidated Direct Operating and SG&A expenses
1,070,642

1,075,342

Operating Income

160,550

123,899

51,071

37,520

(8,825

(10,888

(638.6

Corporate

(81,598

(86,023

Impairment charges

(91,382

Other operating expense, net

(3,549

(3,286

Consolidated Operating Income

28,260

60,852

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).

Includes Corporate depreciation and amortization of $5.9 million and $6.3 million for the three months ended March 31, 2019 and 2018, respectively.

Non-GAAP

Measures

(see preceding table for comparable GAAP measures)

Revenue, excluding movements in foreign exchange

339,115

Consolidated revenue excluding movements in foreign exchange

1,406,620

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

311,462

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

1,093,466

OIBDAN

190,967

182,232

90,567

82,024

25,756

27,677

(72,473

(76,050

(1,023

Consolidated OIBDAN

238,784

218,256

OIBDAN, excluding movements in foreign exchange

27,653

(73,181

Consolidated OIBDAN, excluding movements in foreign exchange

239,973

Certain prior period amounts have been reclassified to conform to the 2019 presentation of financial information.

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) revenue, excluding effects of foreign exchange rates, to revenue (iii); direct operating and SG&A expenses, excluding effects of foreign exchange rates, to direct operating and SG&A expenses; (iv) revenue, excluding political advertising revenue, to revenue; (v) corporate expenses, excluding

non-cash

compensation expenses and effects of foreign exchange rates, to corporate expenses. See also the definition of OIBDAN under the Supplemental Disclosure section in this disclosure.

Supplemental Disclosure Regarding

Financial Information

The following tables set forth the Company’s OIBDAN for the three months and three months ended March 31, 2019 and 2018. The Company defines OIBDAN as consolidated operating income adjusted to exclude

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) revenue, direct operating and SG&A expenses and OIBDAN, each excluding the effects of foreign exchange rates; (ii) revenue, direct operating and SG&A expenses and OIBDAN, each excluding the effects of foreign exchange rates and the results from outdoor business sold; (iii) revenue, excluding political advertising revenue and (iv) corporate expenses, excluding

compensation expenses and effects of foreign exchange rates.

The Company presents revenue, 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. Revenue, 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.

The Company presents revenue, excluding the effects of political revenue. Due to the cyclical nature of the electoral system and the seasonality of the related political revenue, 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

compensation expenses and the effects of foreign exchange rates, is presented as OIBDAN excludes

compensation expenses.

Since these

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) revenue, excluding effects of foreign exchange rates, to revenue (iii); direct operating and SG&A expenses, excluding effects of foreign exchange rates, to direct operating and SG&A expenses; (iv) revenue, excluding political advertising revenue, to revenue; (v) corporate expenses, excluding

compensation expenses and effects of foreign exchange rates, to corporate expenses.

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

Effects of

(subtotal)

Non-cash

(income)

expense, net

income (loss)

Three Months Ended March 31, 2019

30,417

39,496

(1,897

34,581

(80,627

(1,189

113,366

Three Months Ended March 31, 2018

58,333

44,504

38,565

(85,000

151,434

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

Excluding: Effects of foreign exchange

24,721

Consolidated revenue, excluding effects of foreign exchange

International Outdoor revenue

International Outdoor revenue, excluding effects of foreign exchange

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

Consolidated direct operating and SG&A expenses

22,824

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

International Outdoor direct operating and SG&A expenses

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

Reconciliation of Revenue, excluding Political Advertising Revenue, to Revenue

Excluding: Political revenue

(3,789

(8,214

Consolidated revenue, excluding effects of political revenue

1,378,110

1,361,434

iHM revenue

(2,724

(5,752

iHM revenue excluding, effects of political revenue

763,086

738,816

Americas Outdoor revenue

Americas Outdoor revenue, excluding effects of political revenue

272,118

254,935

Other revenue

(1,550

Other revenue, excluding effects of political revenue

29,729

26,668

Reconciliation of Corporate Expenses, excluding

compensation expenses and effects of foreign exchange rates, to Corporate Expenses

74,700

78,734

(2,227

(2,684

Corporate Expense, excluding

compensation expense

Excluding: Foreign exchange (increase) decrease

compensation expense and movements in foreign exchange

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

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. 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. Various risks that could cause future results to differ from those expressed by any forward-looking statement 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 and Clear Channel Outdoor Holdings, Inc.’s Annual Reports on Form

and Quarterly Reports on Form

The Company does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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Other recent filings from the company include the following:

CC Media Holdings, Inc.'s EVP-Finance & Deputy CFO just declared owning 20,000 shares of CC Media Holdings, Inc. - Sept. 26, 2019
Departure of Directors or - Sept. 26, 2019

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