Clear Channel Reports First Quarter 2001 Results

Apr 26, 2001, 01:00 ET from Clear Channel Communications, Inc.

    SAN ANTONIO, April 26 /PRNewswire/ -- Clear Channel Communications, Inc.
 (NYSE:   CCU) today reported historical net revenues of $1.6 billion, up 108%
 over the first quarter of 2000, and historical EBITDA (defined as operating
 cash flow less corporate expenses) of $404 million, up 70% over the first
 quarter of 2000.  After tax cash flow reported for the quarter was
 $324 million, an increase of 69% over the first quarter of 2000.  The
 Company's after tax cash flow per share was $0.52 compared to $0.51 for the
 first quarter of 2000, an increase of 2%.  After tax cash flow is defined as
 diluted net income before unusual and non-recurring items plus non-cash items
 (including nonconsolidated affiliates).
     Commenting on the results, Lowry Mays, Chairman and Chief Executive
 Officer, stated, "With the difficult comparisons from last year's first
 quarter coupled with the current economy, we are quite pleased with our
 results for the first quarter of 2001.  Despite the tough comparisons we were
 able to increase after tax cash flow per share, the best measure of our
 performance, versus the outstanding first quarter of last year.  Most
 importantly after tax cash flow per share during the first quarter of 2001 has
 grown at a compounded annual growth rate of 19% since the first quarter of
 1999."
 
     Operating Results
     The Company measures the performance of its operating segments and
 managers based on a like period pro forma measurement.  Below are the
 consolidated like period pro forma results for the first quarter of 2001
 versus 2000.
 
      CONSOLIDATED - Like Period Pro Forma Comparison (A)
      (in $000s)
                                   Like Period Pro Forma Comparison
                                     1st Qtr 2000 vs. 1st Qtr 2001
                                     1Q 2000     1Q 2001    % Change
             Net revenue           $1,807,203  $1,656,646      (8%)
             Operating expenses     1,286,290   1,199,622      (7%)
             Operating cash flow      520,913     457,024     (12%)
             Corporate expenses        53,790      45,534     (15%)
             EBITDA (B)              $467,123    $411,490     (12%)
 
 
     (A)  Includes all acquisitions in the prior period (2000) for the same
          time frame as actually owned in the current period (2001).  The 2001
          pro forma includes an adjustment for foreign exchange to present
          results in constant dollars.  Divestitures are excluded from both
          2001 and 2000.  The Company's proportionate share of actively managed
          equity investments is included in both periods.
     (B)  Defined as operating cash flow less corporate expenses.
 
     Segment Operating Results
     RADIO:  The Radio Division continues to be the Company's largest operating
 segment.  On a like period pro forma basis the Radio Division reported an 8%
 decrease in revenue in the first quarter of 2001 versus the comparable period
 in 2000.  Operating expenses were down 9% resulting in a decrease in operating
 cash flow of 7% for the period.
     During the first quarter of 2001, the Radio Division increased its market
 share.  Performance during the first quarter was negatively impacted by the
 difficult comparison to the strong performance of 2000.  National sales were
 weaker during the current period especially in our larger markets.  The
 decline in revenue was partially offset by various cost control measures.
 
     OUTDOOR:  On a like period pro forma basis the Outdoor Division reported
 relatively flat revenue growth in the first quarter of 2001 versus the
 comparable period in 2000.  Operating expenses increased 4% resulting in a
 decrease in operating cash flow of 9% for the period.
     The decrease in operating performance was again a reflection of the
 difficult relative comparison to the first quarter of 2000.  Additionally,
 operating expenses increased due to increased expenses associated with
 investments and expansion of operations of recently acquired assets.  We
 believe that these investments will yield positive returns in the future.
 
     OUT-of-HOME:  Out-of-home combines the Company's radio and outdoor
 advertising segments and represents 91% of the Company's operating cash flow
 during the first quarter of 2001.  On a like period pro forma basis Out-of-
 home revenue decreased 5% in the first quarter of 2001 versus the comparable
 period in 2000.  Operating expenses decreased 4% resulting in a decrease in
 operating cash flow of 7% for the period.
 
     ENTERTAINMENT:  On a like period pro forma basis the Entertainment
 Division had a decrease of 13% in revenues in the first quarter of 2001 versus
 the comparable period in 2000.  Operating expenses decreased 9% resulting in a
 decrease in operating cash flow of 54% for the period.
     This decrease in operating performance was expected due to the difference
 in the timing of live event dates during the first quarter of 2001, as
 compared to 2000.  We currently anticipate that the Entertainment Division
 will post double-digit pro forma operating cash flow growth during the second
 quarter and full year of 2001.
 
     Guidance
     Included below is updated guidance for the second quarter of 2001.  Due to
 the current advertising environment and lack of visibility into the second
 half of 2001, the Company will not provide specific guidance beyond the second
 quarter of 2001 at this time, and the Company withdraws its previous guidance
 released on February 13, 2001.  The guidance below may constitute a "forward-
 looking statement."  Please see the disclosure at the end of this release
 concerning "forward-looking statements."
 
      (In millions, except per share data)
                                        2Q
     Net revenue                   $   2,085
     Operating expenses                1,425
     Operating cash flow (A)             660
     Corporate expenses                   50
     EBITDA (B)                          610
     Interest                            140
     Depreciation and amortization       595
     Tax expense (benefit)                30
 
     Net loss                      $    (170)
 
     After tax cash flow (C)       $     465
 
     Per Share Amounts Diluted:
     Net loss                      $   (0.28)
     After tax cash flow           $    0.74
     Growth in After tax cash flow         1%
 
     (A)  Operating income excluding depreciation, amortization, corporate
          expenses, non-recurring items and other non-cash charges.
     (B)  Operating cash flow less corporate expenses.
     (C)  Diluted net income before unusual and non-recurring items plus
          non-cash items (including nonconsolidated affiliates).
 
     Conference Call
     Our first quarter 2001 earnings conference call will be held today at
 4:00 p.m. Central Time.  The dial-in number is (973) 633-1010 and a pass code
 is not required.  Please call 10 minutes prior to the beginning of the call to
 ensure that you are connected before the start of the presentation.  The
 teleconference will also be available via a live webcast on the Company's
 website, located at http://www.clearchannel.com.   A replay of the call will
 be available for 72 hours after the conference call.  The replay number for
 domestic callers is (973) 341-3080, pass code 2530885.  The webcast will also
 be archived on the Company's website for one week.
 
     About Clear Channel Communications
     Clear Channel Communications, Inc., headquartered in San Antonio, Texas,
 is a global leader in the out-of-home advertising industry with radio and
 television stations, outdoor displays, and entertainment venues in
 45 countries around the world.  Including announced transactions, Clear
 Channel operates approximately 1,170 radio and 17 television stations in the
 United States and has equity interests in approximately 240 radio stations
 internationally.  Clear Channel also operates approximately 700,000 outdoor
 advertising displays, including billboards, street furniture and transit
 panels across the world.  SFX Entertainment, part of the Clear Channel family,
 is one of the world's largest diversified promoters, producers and presenters
 of live entertainment events and is a leading fully integrated sports
 marketing and management company.
 
     For further information contact Randy Palmer, Vice President of Investor
 Relations or Gabrina Soliz at (210) 822-2828 or visit our web-site at
 http://www.clearchannel.com.
 
     Certain statements in this release 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 the Company to be materially different from any future
 results, performance or achievements expressed or implied by such forward-
 looking statements.  The words or phrases "guidance," "expect," "anticipate,"
 "estimates" and "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 are forward-looking statements.  Various risks that could cause
 future results to differ from those expressed by the forward-looking
 statements included in this release include, but are not limited to: changes
 in economic conditions in the U.S. and in other countries in which Clear
 Channel currently does business (both general and relative to the advertising
 and entertainment industries); fluctuations in interest rates; changes in
 industry conditions; changes in operating performance; shifts in population
 and other demographics; changes in the level of competition for advertising
 dollars; fluctuations in operating costs; technological changes and
 innovations; changes in labor conditions; changes in governmental regulations
 and policies and actions of regulatory bodies; fluctuations in exchange rates
 and currency values; changes in tax rates; changes in capital expenditure
 requirements and access to capital markets.  Other key risks are described in
 the Clear Channel Communications' reports filed with the U.S. Securities and
 Exchange Commission.  Except as otherwise stated in this news announcement,
 Clear Channel Communications does not undertake any obligation to publicly
 update or revise any forward-looking statements because of new information,
 future events or otherwise.
 
 
                      COMPARATIVE STATEMENTS OF OPERATIONS
              Clear Channel Communications, Inc. and Subsidiaries
                                   Unaudited
                (In thousands of dollars, except per share data)
 
 
                                             Three months ended
                                                 March 31,
                                                                    %
                                               2001       2000    Change
 
          Gross revenue                     $1,761,019  $871,375   102%
 
          Net revenue                       $1,628,363  $782,539   108%
          Operating expenses                 1,179,068   519,961
          Operating cash flow                  449,295   262,578    71%
          Corporate expenses                    45,071    24,578
          EBITDA (A)                           404,224   238,000    70%
 
          Non-cash compensation expense          3,894       ---
          Depreciation and amortization        613,751   220,054
          Interest expense                     156,400    55,549
          Loss on sale of assets related to
           mergers                               6,390       ---
          Gain on marketable securities         18,456       ---
          Equity in earnings of
           nonconsolidated affiliates              563     2,936
          Other income (expense) -- net         (7,633)      398
 
          Income (loss) before income taxes   (364,825)  (34,269)
          Income tax (expense) benefit          55,597    (5,133)
 
                   Net loss                  ($309,228) ($39,402)
 
          Net loss per share:
                   Basic                        ($0.53)   ($0.12)
 
                   Diluted                      ($0.53)   ($0.12)
 
 
          After tax cash flow (B)             $324,420  $192,226   69%
          Attributable operating cash flow
           (C)                                $475,669  $275,552   73%
          Attributable EBITDA (D)             $429,546  $250,014   72%
 
 
          After tax cash flow per share: (B)
                   Basic                         $0.54     $0.55
 
                   Diluted                       $0.52     $0.51    2%
 
 
          Weighted Average Shares
           Outstanding - Diluted               627,669   338,803
 
 
        (A)  Defined as operating cash flow less corporate expenses.
        (B)  Defined as diluted net income before unusual and non-recurring
             items plus non-cash items (including nonconsolidated affiliates).
        (C)  Defined as operating cash flow (including nonconsolidated
             affiliates).
        (D)  Defined as operating cash flow less corporate expenses (including
             nonconsolidated affiliates).
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X17807848
 
 

SOURCE Clear Channel Communications, Inc.
    SAN ANTONIO, April 26 /PRNewswire/ -- Clear Channel Communications, Inc.
 (NYSE:   CCU) today reported historical net revenues of $1.6 billion, up 108%
 over the first quarter of 2000, and historical EBITDA (defined as operating
 cash flow less corporate expenses) of $404 million, up 70% over the first
 quarter of 2000.  After tax cash flow reported for the quarter was
 $324 million, an increase of 69% over the first quarter of 2000.  The
 Company's after tax cash flow per share was $0.52 compared to $0.51 for the
 first quarter of 2000, an increase of 2%.  After tax cash flow is defined as
 diluted net income before unusual and non-recurring items plus non-cash items
 (including nonconsolidated affiliates).
     Commenting on the results, Lowry Mays, Chairman and Chief Executive
 Officer, stated, "With the difficult comparisons from last year's first
 quarter coupled with the current economy, we are quite pleased with our
 results for the first quarter of 2001.  Despite the tough comparisons we were
 able to increase after tax cash flow per share, the best measure of our
 performance, versus the outstanding first quarter of last year.  Most
 importantly after tax cash flow per share during the first quarter of 2001 has
 grown at a compounded annual growth rate of 19% since the first quarter of
 1999."
 
     Operating Results
     The Company measures the performance of its operating segments and
 managers based on a like period pro forma measurement.  Below are the
 consolidated like period pro forma results for the first quarter of 2001
 versus 2000.
 
      CONSOLIDATED - Like Period Pro Forma Comparison (A)
      (in $000s)
                                   Like Period Pro Forma Comparison
                                     1st Qtr 2000 vs. 1st Qtr 2001
                                     1Q 2000     1Q 2001    % Change
             Net revenue           $1,807,203  $1,656,646      (8%)
             Operating expenses     1,286,290   1,199,622      (7%)
             Operating cash flow      520,913     457,024     (12%)
             Corporate expenses        53,790      45,534     (15%)
             EBITDA (B)              $467,123    $411,490     (12%)
 
 
     (A)  Includes all acquisitions in the prior period (2000) for the same
          time frame as actually owned in the current period (2001).  The 2001
          pro forma includes an adjustment for foreign exchange to present
          results in constant dollars.  Divestitures are excluded from both
          2001 and 2000.  The Company's proportionate share of actively managed
          equity investments is included in both periods.
     (B)  Defined as operating cash flow less corporate expenses.
 
     Segment Operating Results
     RADIO:  The Radio Division continues to be the Company's largest operating
 segment.  On a like period pro forma basis the Radio Division reported an 8%
 decrease in revenue in the first quarter of 2001 versus the comparable period
 in 2000.  Operating expenses were down 9% resulting in a decrease in operating
 cash flow of 7% for the period.
     During the first quarter of 2001, the Radio Division increased its market
 share.  Performance during the first quarter was negatively impacted by the
 difficult comparison to the strong performance of 2000.  National sales were
 weaker during the current period especially in our larger markets.  The
 decline in revenue was partially offset by various cost control measures.
 
     OUTDOOR:  On a like period pro forma basis the Outdoor Division reported
 relatively flat revenue growth in the first quarter of 2001 versus the
 comparable period in 2000.  Operating expenses increased 4% resulting in a
 decrease in operating cash flow of 9% for the period.
     The decrease in operating performance was again a reflection of the
 difficult relative comparison to the first quarter of 2000.  Additionally,
 operating expenses increased due to increased expenses associated with
 investments and expansion of operations of recently acquired assets.  We
 believe that these investments will yield positive returns in the future.
 
     OUT-of-HOME:  Out-of-home combines the Company's radio and outdoor
 advertising segments and represents 91% of the Company's operating cash flow
 during the first quarter of 2001.  On a like period pro forma basis Out-of-
 home revenue decreased 5% in the first quarter of 2001 versus the comparable
 period in 2000.  Operating expenses decreased 4% resulting in a decrease in
 operating cash flow of 7% for the period.
 
     ENTERTAINMENT:  On a like period pro forma basis the Entertainment
 Division had a decrease of 13% in revenues in the first quarter of 2001 versus
 the comparable period in 2000.  Operating expenses decreased 9% resulting in a
 decrease in operating cash flow of 54% for the period.
     This decrease in operating performance was expected due to the difference
 in the timing of live event dates during the first quarter of 2001, as
 compared to 2000.  We currently anticipate that the Entertainment Division
 will post double-digit pro forma operating cash flow growth during the second
 quarter and full year of 2001.
 
     Guidance
     Included below is updated guidance for the second quarter of 2001.  Due to
 the current advertising environment and lack of visibility into the second
 half of 2001, the Company will not provide specific guidance beyond the second
 quarter of 2001 at this time, and the Company withdraws its previous guidance
 released on February 13, 2001.  The guidance below may constitute a "forward-
 looking statement."  Please see the disclosure at the end of this release
 concerning "forward-looking statements."
 
      (In millions, except per share data)
                                        2Q
     Net revenue                   $   2,085
     Operating expenses                1,425
     Operating cash flow (A)             660
     Corporate expenses                   50
     EBITDA (B)                          610
     Interest                            140
     Depreciation and amortization       595
     Tax expense (benefit)                30
 
     Net loss                      $    (170)
 
     After tax cash flow (C)       $     465
 
     Per Share Amounts Diluted:
     Net loss                      $   (0.28)
     After tax cash flow           $    0.74
     Growth in After tax cash flow         1%
 
     (A)  Operating income excluding depreciation, amortization, corporate
          expenses, non-recurring items and other non-cash charges.
     (B)  Operating cash flow less corporate expenses.
     (C)  Diluted net income before unusual and non-recurring items plus
          non-cash items (including nonconsolidated affiliates).
 
     Conference Call
     Our first quarter 2001 earnings conference call will be held today at
 4:00 p.m. Central Time.  The dial-in number is (973) 633-1010 and a pass code
 is not required.  Please call 10 minutes prior to the beginning of the call to
 ensure that you are connected before the start of the presentation.  The
 teleconference will also be available via a live webcast on the Company's
 website, located at http://www.clearchannel.com.   A replay of the call will
 be available for 72 hours after the conference call.  The replay number for
 domestic callers is (973) 341-3080, pass code 2530885.  The webcast will also
 be archived on the Company's website for one week.
 
     About Clear Channel Communications
     Clear Channel Communications, Inc., headquartered in San Antonio, Texas,
 is a global leader in the out-of-home advertising industry with radio and
 television stations, outdoor displays, and entertainment venues in
 45 countries around the world.  Including announced transactions, Clear
 Channel operates approximately 1,170 radio and 17 television stations in the
 United States and has equity interests in approximately 240 radio stations
 internationally.  Clear Channel also operates approximately 700,000 outdoor
 advertising displays, including billboards, street furniture and transit
 panels across the world.  SFX Entertainment, part of the Clear Channel family,
 is one of the world's largest diversified promoters, producers and presenters
 of live entertainment events and is a leading fully integrated sports
 marketing and management company.
 
     For further information contact Randy Palmer, Vice President of Investor
 Relations or Gabrina Soliz at (210) 822-2828 or visit our web-site at
 http://www.clearchannel.com.
 
     Certain statements in this release 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 the Company to be materially different from any future
 results, performance or achievements expressed or implied by such forward-
 looking statements.  The words or phrases "guidance," "expect," "anticipate,"
 "estimates" and "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 are forward-looking statements.  Various risks that could cause
 future results to differ from those expressed by the forward-looking
 statements included in this release include, but are not limited to: changes
 in economic conditions in the U.S. and in other countries in which Clear
 Channel currently does business (both general and relative to the advertising
 and entertainment industries); fluctuations in interest rates; changes in
 industry conditions; changes in operating performance; shifts in population
 and other demographics; changes in the level of competition for advertising
 dollars; fluctuations in operating costs; technological changes and
 innovations; changes in labor conditions; changes in governmental regulations
 and policies and actions of regulatory bodies; fluctuations in exchange rates
 and currency values; changes in tax rates; changes in capital expenditure
 requirements and access to capital markets.  Other key risks are described in
 the Clear Channel Communications' reports filed with the U.S. Securities and
 Exchange Commission.  Except as otherwise stated in this news announcement,
 Clear Channel Communications does not undertake any obligation to publicly
 update or revise any forward-looking statements because of new information,
 future events or otherwise.
 
 
                      COMPARATIVE STATEMENTS OF OPERATIONS
              Clear Channel Communications, Inc. and Subsidiaries
                                   Unaudited
                (In thousands of dollars, except per share data)
 
 
                                             Three months ended
                                                 March 31,
                                                                    %
                                               2001       2000    Change
 
          Gross revenue                     $1,761,019  $871,375   102%
 
          Net revenue                       $1,628,363  $782,539   108%
          Operating expenses                 1,179,068   519,961
          Operating cash flow                  449,295   262,578    71%
          Corporate expenses                    45,071    24,578
          EBITDA (A)                           404,224   238,000    70%
 
          Non-cash compensation expense          3,894       ---
          Depreciation and amortization        613,751   220,054
          Interest expense                     156,400    55,549
          Loss on sale of assets related to
           mergers                               6,390       ---
          Gain on marketable securities         18,456       ---
          Equity in earnings of
           nonconsolidated affiliates              563     2,936
          Other income (expense) -- net         (7,633)      398
 
          Income (loss) before income taxes   (364,825)  (34,269)
          Income tax (expense) benefit          55,597    (5,133)
 
                   Net loss                  ($309,228) ($39,402)
 
          Net loss per share:
                   Basic                        ($0.53)   ($0.12)
 
                   Diluted                      ($0.53)   ($0.12)
 
 
          After tax cash flow (B)             $324,420  $192,226   69%
          Attributable operating cash flow
           (C)                                $475,669  $275,552   73%
          Attributable EBITDA (D)             $429,546  $250,014   72%
 
 
          After tax cash flow per share: (B)
                   Basic                         $0.54     $0.55
 
                   Diluted                       $0.52     $0.51    2%
 
 
          Weighted Average Shares
           Outstanding - Diluted               627,669   338,803
 
 
        (A)  Defined as operating cash flow less corporate expenses.
        (B)  Defined as diluted net income before unusual and non-recurring
             items plus non-cash items (including nonconsolidated affiliates).
        (C)  Defined as operating cash flow (including nonconsolidated
             affiliates).
        (D)  Defined as operating cash flow less corporate expenses (including
             nonconsolidated affiliates).
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X17807848
 
 SOURCE  Clear Channel Communications, Inc.