2015 Fourth Quarter and Full Year Results

February 25, 2016

 

2

Safe Harbor Statement

Forward Looking Language Certain statements in this presentation 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 (the “Company”), 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 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 in this presentation include, but are not limited to: 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 or other 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; changes in 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 Company may not achieve or sustain anticipated cost savings from strategic revenue and efficiency initiatives. 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 in this presentation 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 of this presentation. Other key 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, iHeartCommunications, Inc.’s, Clear Channel Outdoor Holdings, Inc.’s and iHeartMedia Capital I, LLC’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Except as otherwise stated in this presentation, the Company does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise. Non-GAAP Financial Measures This presentation includes information that does not conform to U.S. generally accepted accounting principles (GAAP), such as OIBDAN and operating results on a constant dollar basis (excluding the impacts of movements in foreign exchange rates). These measures should not be viewed as an alternative to GAAP measures of performance. Furthermore, these measures may not be consistent with similar measures provided by other companies. This data should be read in conjunction with previously published company reports on Forms 10-K, 10-Q, and 8-K. These reports are available on the Investor Relations page of www.iheartmedia.com and www.clearchanneloutdoor.com. Reconciliations of non-GAAP measures to GAAP measures are included at the end of this presentation. The Company uses OIBDAN, among other things, 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 profitability and net 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, equity compensation 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. In addition, because a significant portion of the Company’s advertising operations are conducted in foreign markets, principally the Euro area, the U.K. and China, management reviews the operating results from its foreign operations on a constant dollar basis. A constant dollar basis (in which a foreign currency adjustment is made to show the actual foreign revenues, expenses and OIBDAN for a given period at average foreign exchange rates for the comparable period in the prior year) allows for comparison of operations independent of foreign exchange rate movements. This presentation should be read in conjunction with the 2015 earnings releases of iHeartMedia, Inc. and Clear Channel Outdoor Holdings, Inc. and Form 10-K filings of iHeartMedia, Inc., iHeartMedia Capital I, LLC, iHeartCommunications, Inc. and Clear Channel Outdoor Holdings, Inc. available at www.iheartmedia.com and www.clearchanneloutdoor.com Numbers may not sum due to rounding. Figures may exclude FX impact unless otherwise noted. In this presentation, OIBDAN is defined as consolidated net income (loss) adjusted to exclude non-cash compensation expenses, lease expense arising from sale-leaseback transactions, amortization of deferred system implementation costs, as well as the following line items presented in the Statements of Operations: income tax benefit; other operating income (expense)-net; equity in earnings (loss) of nonconsolidated affiliates; gain (loss) on marketable securities; interest expense; other operating income-net; impairment charges; and depreciation and amortization. Certain financial information shown in this presentation excludes the effects of foreign exchange rates. See reconciliations in the Appendix.

 

 

3

 

DIGITAL RADIO

EVENTS

OUTDOOR

TV

Airports

Transit & Street Furniture

Traditional Billboards

Digital Outdoor

National Spot & Network Radio 5,900+ affiliate broadcast stations

Local Broadcast 850+ stations & 150+ local markets

Traffic & Weather 99% of commuter coverage

National & Local Personalities 105 syndicated properties

iHeartRadio.com 2,100+ live stations

& custom radio

Social 80 million Facebook likes

& Twitter/Instagram followers

Personality & Local Station Sites

80 million registered users & 900+ websites

Mobile 837+ million app

downloads & upgrades

Network TV

iHeartRadio Music Festival & Village

Jingle Ball, Country Festival, Awards, Pool Party & Fiesta Latina

iHeartRadio Theaters New York & Los Angeles

Local Market Festivals & Concerts 20,000+ events a year

 

4

2015 Key Financial Highlights (Excluding Impact of FX)

 

Revenue: $1.8 billion (+3.1% year over year)

+5.2% at iHM, +3.2% at CCI and +1.8% at CCOA Expenses: $1.1 billion (+4.9% year over year) OIBDAN: $0.6 billion (+1.0% year over year)

+5.1% at iHM, (10.5%) at CCI and +1.8% at CCOA

Revenue: $6.5 billion (+2.4% year over year)

+3.9% at iHM, +3.2% at CCI and +1.6% at CCOA Expenses: $4.4 billion (+3.3% year over year) OIBDAN: $1.8 billion (+1.2% year over year)

+3.7% at iHM, (5.3%) at CCI and +2.2% at CCOA Figures above exclude FX impact unless otherwise noted. Notes: In this presentation, OIBDAN is defined as consolidated net income (loss) adjusted to exclude non-cash compensation expenses, lease expense arising from sale-leaseback transactions, amortization of deferred system implementation costs, as well as the following line items presented in the Statements of Operations: income tax expense/benefit; other operating income (expense)-net; equity in earnings (loss) of nonconsolidated affiliates; gain (loss) on securities; interest expense; other operating income-net; impairment charges; and depreciation and amortization. Certain financial information shown in this presentation excludes the effects of foreign exchange rates and political advertising revenue. See reconciliations in the Appendix.

Q4 2015

Full Year 2015

 

5

Key Non-Financial Highlights: iHeartMedia

 

The Copyright Royalty Board set digital music rates for 2016-2020, which should benefit iHeartMedia,

music companies and artists, as well as fans. iHeartMedia-STRATA integration provides 1,000+ agencies access to our extensive digital inventory

and the ability to reach iHeartMedia’s audiences Introduced seven new iHeartRadio device integrations, including partnerships with Samsung, LG

Smart ThinQ Hub, AppleTV, Firefox OX for Panasonic TVs and DTS.

Surpassed 80 million iHeartRadio registered users (33% growth (year over year)) Named to AdWeek’s “Hot List: The 24 Digital Brands, Startups and Games that Defined 2015” with

iHeartRadio ranked Hottest Music App of 2015

Generated almost 11 billion social media impressions with the annual

“iHeartRadio Jingle Ball 2015 Tour Presented by Capital One,” surpassing the Big Game Halftime Show and the Academy Awards and nearly equaled the Grammy Awards.

The annual “iHeartRadio Fiesta Latina Presented by Sprint” aired exclusively on Telemundo and streamed on Yahoo! Live. Also staged the “iHeartRadio Fiesta Latina Pre-Party at La Villita Presented by Coors Light.”

Key Announcements

Events

 

6

Key Non-Financial Highlights: Outdoor

 

Acquired Arqiva’s payphone business and announced plans to enhance

urban spaces in London and across the UK, replacing payphones with state-of-the-art kiosks to better serve advertisers and consumers.

Launched the largest interactive digital out-of-home screen in Belgium with the launch of I-CONIC – a 140m2 screen situated in the center of Brussels.

Installed 43 new digital billboards for an end of

quarter total of 1,263 across 38 markets in North America (Over 1,600 including Latin America) Installed 938 new digital displays internationally for an

end of quarter total of more than 6,600 across 19 markets

Key Announcements

Digital

 

7

Financial Results: iHeartMedia   $USD in millions               

  Three Months Ended December 31,  

  2015 2014 VAR  

  Revenue $899 $854 5.2%    Operating Expenses $526 $499 5.3%    OIBDAN $373 $355 5.1%                 

  Full Year Ended December 31,  

  2015 2014 VAR  

  Revenue $3,284 $3,162 3.9%    Operating Expenses $2,025 $1,946 4.0%    OIBDAN $1,260 $1,215 3.7%  

Revenue: Revenue: Q4 +5% (+8% excluding political); FY2015 +4% (+5% excluding political) Key Drivers: Core broadcast and digital radio including impact of live events, trade and barter; partially offset

by political Top Advertiser Categories: Automotive, Financial Services, Entertainment, Food and Beverage, Medical &

Healthcare EXPENSES:

Expenses: Q4 +5%; FY2015 +4% Key Drivers: Programming and talent, events, music license fees, and barter and trade; Includes $3 million in Q4

and $12 million in FY 2015 in expenses related to investments in strategic revenue and efficiency initiatives compared to $6 million in Q4 2014 and $20 million in FY 2014

Certain financial information shown in this presentation excludes the effects of political advertising revenue. See reconciliations in the Appendix.

 

8

Financial Results: Americas Outdoor     $USD in millions                           Three Months Ended December 31,    Reported Excluding FX   2015 2014 VAR 2015 2014 VAR   Revenue $365 $365 (0.2%) $372 $365 1.8%   Operating Expenses $213 $215 (0.8%) $219 $215 1.9%    OIBDAN $151 $150 0.7% $153 $150 1.8%         Full Year Ended December 31,    Reported Excluding FX   2015 2014 VAR 2015 2014 VAR   Revenue $1,349 $1,351 (0.1%) $1,372 $1,351 1.6%   Operating Expenses $831 $839 (1.0%) $850 $839 1.2%    OIBDAN $518 $511 1.4% $523 $511 2.2%  

Revenue: Revenue: Q4 and FY 2015 +2% Key Drivers: Higher revenues from digital billboard deployments and Times Square spectacolor

business Top Advertiser Categories: Retail, Business Services, Media, Healthcare and Medical, and

Banking and Financial Services Expenses:

Expenses: Q4 +2%; FY 2015 +1% Key Drivers: Increase in variable costs related to higher revenue

Certain financial information shown in this presentation excludes the effects of foreign exchange. See reconciliations in the Appendix.

 

9

Financial Results: International Outdoor     $USD in millions                           Three Months Ended December 31,    Reported Excluding FX   2015 2014 VAR 2015 2014 VAR   Revenue $408 $437 (6.7%) $451 $437 3.2%   Operating Expenses $313 $322 (2.9%) $348 $322 8.1%    OIBDAN $94 $115 (17.5%) $102 $115 (10.5%)         Full Year Ended December 31,    Reported Excluding FX   2015 2014 VAR 2015 2014 VAR   Revenue $1,457 $1,611 (9.5%) $1,663 $1,611 3.2%   Operating Expenses $1,196 $1,306 (8.4%) $1,374 $1,306 5.2%    OIBDAN $261 $305 (14.2%) $289 $305 (5.3%)  

Revenue: Revenue: Q4 and FY 2015 +3% Key Drivers: New contracts and expansion of digital; growth across various European countries,

Australia and China Expenses:

Expenses: Q4 +8%; FY 2015 +5% Key Drivers: Increase in variable costs related to higher revenue; higher spending on strategic

efficiency initiatives; Q4 includes adjustment for correction of results reported in prior years by our Netherlands subsidiary.

Certain financial information shown in this presentation excludes the effects of foreign exchange. See reconciliations in the Appendix.

 

10

Items Impacting Comparability at iHeartMedia, Inc.   

  Revenue   Expenses    Foreign Exchange Impact:   Foreign Exchange Impact:  

    2015     2015  

    Q4 FY     Q4 FY  

  Americas Outdoor   $(7.4) $(23.4)   Americas Outdoor   $(5.7) $(19.1)    International Outdoor   $(43.2) $(205.6)   International Outdoor   $(35.2) $(178.5)    Total $(50.6) $(229.0)   Total $(40.9) $(197.7)         Political Revenue Impact:   Strategic Revenue & Efficiency Initiatives:  

  Q4   Q4 2015 Q4 2014 VAR  

  2015 2014 VAR   iHeartMedia $3.4 $6.2 $(2.8)    iHeartMedia $8.0 $26.5 $(18.5)   Americas Outdoor $0.9 $1.2 $(0.3)    Americas Outdoor $0.8 $1.8 $(1.0)   International Outdoor $2.0 $1.7 $0.3    Katz Media $2.4 $17.4 $(15.0)   Katz Media $0.1 $2.2 $(2.1)    Total $11.2 $45.6 $(34.4)   Corporate $2.3 $9.1 $(6.8)                  Total $8.7 $20.4 $(11.7)    Year Ended December 31,                

  2015 2014 VAR   FY 2015 FY 2014 VAR  

  iHeartMedia $19.9 $51.7 $(31.8)   iHeartMedia $11.8 $20.2 $(8.4)    Americas Outdoor $3.4 $4.7 $(1.3)   Americas Outdoor $2.4 $3.6 $(1.2)    Katz Media $5.3 $30.5 $(25.2)   International Outdoor $11.1 $6.6 $4.5    Total $28.6 $86.9 $(58.3)   Katz Media $3.7 $6.3 $(2.6)  

    Corporate $13.8 $34.0 $(20.2)    Year Ended December 31,   Total $42.8 $70.7 $(27.9)    2015 2014 VAR    

  Katz Termination fees 5.6 14.9 $(9.3)    

 

11

Capital Expenditures   $USD in millions                     

iHeartMedia, Inc.   Q4 Activity: • iHeartMedia $18 million • Americas Outdoor $31 million • International Outdoor $47 million • Corporate $5 million Key Drivers: • Americas Outdoor: Digital billboards • International Outdoor: Street furniture advertising structures and digital • iHeartMedia: Software development and leasehold improvements 2016 Full-Year Capex Guidance • $300 million - $350 million for iHeartMedia, Inc.

                    

Year Ended December 31,    

2015 2014 $ %    

Outdoor:    

Americas $82 $110 $(28) (25%)    

International $133 $117 $16 14%    

Total Outdoor $215 $227 $(12) (5%)    

iHeartMedia $59 $50 $9 18%    

Corporate and Other $23 $41 $(18) (44%)    

Total Capex $296 $318 $(22) (7%)    

                   

Clear Channel Outdoor Holdings, Inc.    

Year Ended December 31,    

2015 2014 $ %    

Americas $82 $110 $(28) (25%)    

International $133 $117 $16 14%    

Corporate $4 $4 $(12) (5%)    

Total Capex $218 $231 $(24) (17%)                       

 

12

Debt  

Maturity 12/31/2015 12/31/2014 $ Change   Total Debt $20.9 billion • Borrowed an additional $40 million under the Receivables Based Credit Facility during Q4, bringing the total amount outstanding to $230 million • Clear Channel International B.V., one of our international subsidiaries, issued $225.0 million 8.75% Senior Notes due 2020 • Cash interest requirements of $1.8 billion in 2016 Upcoming Debt Maturities • 2016: $197 million • 2017: $238 million • 2018: $939 million

 

iHeartCommunications, Inc.    Term Loan B 2016 - $916 $(916)    Term Loan C 2016 - $15 $(15)    Term Loan D 2019 $5,000 $5,000 -    Term Loan E 2019 $1,300 $1,300 -    Receivables Based Facility 2017 $230 - $230    Priority Guarantee Notes - 9.00% 2019 $2,000 $2,000 -    Priority Guarantee Notes - 9.00% 2021 $1,750 $1,750 -    Priority Guarantee Notes - 11.25% 2021 $575 $575 -    Priority Guarantee Notes - 9.00% 2022 $1,000 $1,000 -    Priority Guarantee Notes - 10.625% 2023 $950 - $950    Other Secured Subsidiary Debt $6 $4 $2    Senior Notes - 14.00% 2021 $1,695 $1,662 $33    Senior Notes - 5.50% 2016 $193 $193 -    Senior Notes - 10.00% 2018 $730 $730 -    Senior Notes - 6.875% 2018 $175 $175 -    Senior Notes - 7.25% 2027 $300 $300 -     Clear Channel Outdoor Holdings, Inc.     6.5% Series A Senior Notes 2022 $736 $736 -     6.5% Series B Senior Notes 2022 $1,989 $1,989 -     7.625% Series A Senior Sub Notes 2020 $275 $275 -     7.625% Series B Senior Sub Notes 2020 $1,925 $1,925 -     8.75% CCIBV Senior Notes 2020 $225 - $225     Senior revolving credit facility 2018 - - -     Other Debt $19 $15 $4     Original Issue Discount $(8) $(6) $(2)     Total Debt $5,161 $4,934 $227    Other Subsidiary Debt - $1 $(1)    Purchase Accounting Adjustments and OID $(196) $(229) $33    

Total Debt $20,869 $20,326 $543    Weighted Average Cost of Debt 8.5% 8.1%    

 

13

Balance Sheet Information and Debt Ratios   

  12/31/2015 12/31/2014   iHeartCommunications, Inc.   Cash & Equivalents $773 $457   Total Debt $20,869 $20,326   Secured Leverage ratio 6.5x 6.3x              Clear Channel Outdoor Holdings, Inc.   Cash & Equivalents $413 $186   Total Debt $5,161 $4,934   Senior Leverage Ratio 3.8x 3.6x   Consolidated Leverage Ratio 7.2x 6.4x

    

 

 

 

 

14

 

 

 

 

Appendix  

 

15

iHeartMedia, Inc. Reconciliation of OIBDAN to Operating Income (Loss)   

(In thousands) Operating

income (loss)

Non-cash compensation

expenses

Depreciation and

amortization

Other operating (income) expense,

net Impairment

charges

Sale- leaseback expense

Other adjustments OIBDAN

Three Months Ended December 31, 2015 iHM $ 309,515 $ - $ 60,509 $ - $ - $ 3,052 $ 155 $ 373,231 Americas Outdoor 98,500 - 52,940 - - - - 151,440 International Outdoor 53,360 - 41,099 - - - - 94,459 Other 12,487 - 5,213 - - - - 17,700 Corporate (92,205) 3,005 9,063 - - 744 1,071 (78,322) Other operating income (loss), net (4,693) - - 4,693 - - - - Consolidated $ 376,964 $ 3,005 $ 168,824 $ 4,693 $ - $ 3,796 $ 1,226 $ 558,508 Three Months Ended December 31, 2014 iHM $ 293,010 $ - $ 61,954 $ - $ - $ - $ 140 $ 355,104 Americas Outdoor 97,325 - 53,066 - - - - 150,391 International Outdoor 60,388 - 54,148 - - - - 114,536 Other 18,343 - 7,780 - - - - 26,123 Impairment Charges (19,239) - - - 19,239 - - - Corporate (96,379) 2,651 9,152 - - - 717 (83,859) Other operating income, net (5,678) - - 5,678 - - - - Consolidated $ 347,770 $ 2,651 $ 186,100 $ 5,678 $ 19,239 $ - $ 857 $ 562,295 Year Ended December 31, 2015 iHM $ 1,005,437 $ - $ 240,230 $ - $ - $ 13,299 $ 599 $ 1,259,565 Americas Outdoor 313,871 - 204,514 - - - - 518,385 International Outdoor 95,353 - 166,060 - - - - 261,413 Other 14,765 - 26,386 - - - - 41,151 Impairment Charges (21,631) - - - 21,631 - - - Corporate (352,365) 10,923 36,801 - - 2,384 3,589 (298,668) Other operating income (loss), net 94,001 - - (94,001) - - - - Consolidated $ 1,149,431 $ 10,923 $ 673,991 $ (94,001) $ 21,631 $ 15,683 $ 4,188 $ 1,781,846 Year Ended December 31, 2014 iHM $ 974,031 $ - $ 240,868 $ - $ - $ - $ 218 $ 1,215,117 Americas Outdoor 307,283 - 203,928 - - - - 511,211 International Outdoor 106,498 - 198,143 - - - - 304,641 Other 32,676 - 33,543 - - - - 66,219 Impairment Charges (24,176) - - - 24,176 - - - Corporate (354,757) 10,713 34,416 - - - 1,396 (308,232) Other operating income, net 40,031 - - (40,031) - - - - Consolidated $ 1,081,586 $ 10,713 $ 710,898 $ (40,031) $ 24,176 $ - $ 1,614 $ 1,788,956

 

16

Clear Channel Outdoor Holdings, Inc. Reconciliation of OIBDAN to Operating Income (Loss)   

(In thousands) Operating

income (loss)

Non-cash compensation

expenses

Depreciation and

amortization

Other operating

income, net Impairment

charges Other

adjustments OIBDAN Three Months Ended December 31, 2015 Americas $ 98,500 $ - $ 52,940 $ - $ - $ - $ 151,440 International 53,360 - 41,099 - - - 94,459 Corporate (30,510) 2,314 1,384 - - 37 (26,775)Other operating income, net (5,068) - - 5,068 - - - Consolidated $ 116,282 $ 2,314 $ 95,423 $ 5,068 $ - $ 37 $ 219,124 Three Months Ended December 31, 2014 Americas $ 97,325 $ - $ 53,066 $ - $ - $ - $ 150,391 International 60,388 - 54,147 - - - 114,535 Impairment Charges (3,530) - - - 3,530 - - Corporate (34,462) 2,031 1,146 - - - (31,285)Other operating income, net (265) - - 265 - - - Consolidated $ 119,456 $ 2,031 $ 108,359 $ 265 $ 3,530 $ - $ 233,641 Year Ended December 31, 2015 Americas $ 313,871 $ - $ 204,514 $ - $ - $ - $ 518,385 International 95,353 - 166,060 - - - 261,413 Impairment Charges (21,631) - - - 21,631 - - Corporate (121,768) 8,359 5,388 - - 75 (107,946)Other operating income, net (4,824) - - 4,824 - - - Consolidated $ 261,001 $ 8,359 $ 375,962 $ 4,824 $ 21,631 $ 75 $ 671,852 Year Ended December 31, 2014 Americas $ 307,283 $ - $ 203,928 $ - $ - $ - $ 511,211 International 106,498 - 198,143 - - - 304,641 Impairment Charges (3,530) - - - 3,530 - - Corporate (135,066) 7,743 4,172 - - - (123,151)Other operating income, net 7,259 - - (7,259) - - - Consolidated $ 282,444 $ 7,743 $ 406,243 $ (7,259) $ 3,530 $ - $ 692,701

 

17

iHeartMedia, Inc. Reconciliation of OIBDAN to Net Income (Loss)    

  (In thousands) Three Months Ended December 31, Year Ended December 31,   2015 2014 2015 2014   OIBDAN $ 558,508 $ 562,295 $ 1,781,846 $ 1,788,956   Non-cash compensation expense 3,005 2,651 10,923 10,713   Depreciation and amortization 168,824 186,100 673,991 710,898   Impairment charges - 19,239 21,631 24,176

 Amortization of deferred system implementation costs

1,226

857

4,188

1,614

 Lease expense arising from sale-leaseback transactions

3,796

-

15,683

-

  Other operating income (expense), net (4,693) (5,678) 94,001 40,031   Operating income 376,964 347,770 1,149,431 1,081,586   Interest expense 456,847 437,261 1,805,496 1,741,596   Loss on marketable securities - - (4,421) -   Equity in earnings (loss) of nonconsolidated affiliates 314 (29) (902) (9,416)  Gain (loss) on extinguishment of debt - 12,912 (2,201) (43,347)  Other income (expense), net (5,070) (7,211) 13,056 9,104   Loss before income taxes (84,639) (83,819) (650,533) (703,669)  Income tax benefit (expense) (5,434) 33,654 (86,957) (58,489)  Consolidated net loss (90,073) (50,165) (737,490) (762,158)  Less: Amount attributable to noncontrolling interest 3,199 17,923 17,131 31,603   Net loss attributable to the Company $ (93,272) $ (68,088)   $ (754,621) $ (793,761)

 

18

Clear Channel Outdoor Holdings, Inc. Reconciliation of OIBDAN to Net Income (Loss)    

Three Months Ended (In thousands) December 31, Year Ended December 31, 2015 2014 2015 2014 OIBDAN $ 219,124 $ 233,641 $ 671,852 $ 692,701 Non-cash compensation expense 2,314 2,031 8,359 7,743 Depreciation and amortization 95,423 108,359 375,962 406,243 Impairment charges - 3,530 21,631 3,530 Amortization of deferred system implementation costs 37 - 75 - Other operating income (expense), net (5,068) (265) (4,824) 7,259 Operating income 116,282 119,456 261,001 282,444 Interest expense 89,609 88,096 355,669 353,265 Interest income on Due from iHeartCommunications 15,507 15,174 61,439 60,179 Equity in earnings (loss) of nonconsolidated affiliates 352 13 (289) 3,789 Other income (expense), net (5,085) (887) 12,387 15,185 Income (loss) before income taxes 37,447 45,660 (21,131) 8,332 Income tax benefit (expense) (69,886) 6,285 (50,177) 8,787 Consolidated net income (loss) (32,439) 51,945 (71,308) 17,119 Less: Amount attributable to noncontrolling interest 8,944 8,639 24,764 26,709 Net income (loss) attributable to the Company $ (41,383) $ 43,306 $ (96,072) $ (9,590)

 

19

iHeartMedia, Inc. Reconciliations of Revenue and Expenses   

(In thousands) Three Months Ended December 31, Year Ended December 31, 2015 2014 2015 2014 Revenue: Consolidated revenue $ 1,717,579 $ 1,715,797 $ 6,241,516 $ 6,318,533 Excluding: Foreign exchange (increase) decrease 50,611 - 229,041 - Revenue excluding effects of foreign exchange $ 1,768,190 $ 1,715,797 $ 6,470,557 $ 6,318,533 Americas Outdoor revenue $ 364,536 $ 365,203 $ 1,349,021 $ 1,350,623 Excluding: Foreign exchange (increase) decrease 7,397 - 23,425 - Americas Outdoor revenue excluding effects of FX $ 371,933 $ 365,203 $ 1,372,446 $ 1,350,623 International Outdoor revenue $ 407,529 $ 436,806 $ 1,457,183 $ 1,610,636 Excluding: Foreign exchange (increase) decrease 43,214 - 205,616 - International Outdoor revenue excluding effects of FX $ 450,743 $ 436,806 $ 1,662,799 $ 1,610,636 Expenses: Consolidated expense $ 1,083,956 $ 1,069,783 $ 4,174,900 $ 4,221,573

Excluding: Lease expense arising from sale-leaseback transactions (3,052) - (13,299) -

Excluding: Amortization of deferred system implementation costs (155) (140) (599) (218)

Eliminations - - - (10)

Expenses excluding lease expense arising from sale-leaseback transactions and other expenses $ 1,080,749 $ 1,069,643 $ 4,161,002 $ 4,221,345

Excluding: Foreign exchange (increase) decrease 40,917 - 197,665 - Expense excluding effects of foreign exchange $ 1,121,666 $ 1,069,643 $ 4,358,667 $ 4,221,345 iHM expense $ 528,929 $ 499,346 $ 2,038,653 $ 1,946,604

Excluding: Lease expense arising from sale-leaseback transactions (3,052) - (13,299) -

Excluding: Amortization of deferred system implementation costs (155) (140) (599) (218)

Expenses excluding lease expense arising from sale-leaseback transactions and other expenses $ 525,722 $ 499,206 $ 2,024,755 $ 1,946,386

Americas Outdoor expense $ 213,096 $ 214,812 $ 830,636 $ 839,412 Excluding: Foreign exchange (increase) decrease 5,712 - 19,142 - Americas Outdoor expense excluding effects of FX $ 218,808 $ 214,812 $ 849,778 $ 839,412 International Outdoor expense $ 313,070 $ 322,270 $ 1,195,770 $ 1,305,995 Excluding: Foreign exchange (increase) decrease 35,205 - 178,523 - International Outdoor expense excluding effects of FX $ 348,275 $ 322,270 $ 1,374,293 $ 1,305,995

 

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iHeartMedia, Inc. Reconciliations of OIBDAN    

(In thousands) Three Months Ended December 31, Year Ended December 31, 2015 2014 2015 2014 OIBDAN: Consolidated OIBDAN $ 558,508 $ 562,295 $ 1,781,846 $ 1,788,956 Excluding: Foreign exchange (increase) decrease 9,330 - 27,836 - OIBDAN excluding effects of foreign exchange $ 567,838 $ 562,295 $ 1,809,682 $ 1,788,956 Americas Outdoor OIBDAN $ 151,440 $ 150,391 $ 518,385 $ 511,211 Excluding: Foreign exchange (increase) decrease 1,685 - 4,283 - Americas Outdoor OIBDAN excluding effects of FX $ 153,125 $ 150,391 $ 522,668 $ 511,211 International Outdoor OIBDAN $ 94,459 $ 114,536 $ 261,413 $ 304,641 Excluding: Foreign exchange (increase) decrease 8,009 - 27,093 - International Outdoor OIBDAN excluding effects of FX $ 102,468 $ 114,536 $ 288,506 $ 304,641 Corporate OIBDAN $ (78,322) $ (83,859) $ (298,668) $ (308,232) Excluding: Foreign exchange (increase) decrease (364) - (3,540) - Corporate OIBDAN excluding effects of FX $ (78,686) $ (83,859) $ (302,208) $ (308,232)

 

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Clear Channel Outdoor Holdings, Inc. Reconciliations excluding Effects of Foreign Exchange Rates   

(In thousands) Three Months Ended December 31, Year Ended December 31, 2015 2014 2015 2014 Revenue: Consolidated revenue $ 772,065 $ 802,009 $ 2,806,204 $ 2,961,259 Excluding: Foreign exchange (increase) decrease 50,611 - 229,041 - Revenue excluding effects of foreign exchange $ 822,676 $ 802,009 $ 3,035,245 $ 2,961,259 Americas Outdoor revenue $ 364,536 $ 365,203 $ 1,349,021 $ 1,350,623 Excluding: Foreign exchange (increase) decrease 7,397 - 23,425 - Americas Outdoor revenue excluding effects of FX $ 371,933 $ 365,203 $ 1,372,446 $ 1,350,623 International Outdoor revenue $ 407,529 $ 436,806 $ 1,457,183 $ 1,610,636 Excluding: Foreign exchange (increase) decrease 43,214 - 205,616 - International Outdoor revenue excluding effects of FX $ 450,743 $ 436,806 $ 1,662,799 $ 1,610,636 Expenses: Consolidated expense $ 526,166 $ 537,083 $ 2,026,406 $ 2,145,407 Excluding: Foreign exchange (increase) decrease 40,917 - 197,665 - Expense excluding effects of foreign exchange $ 567,083 $ 537,083 $ 2,224,071 $ 2,145,407 Americas Outdoor expense $ 213,096 $ 214,812 $ 830,636 $ 839,412 Excluding: Foreign exchange (increase) decrease 5,712 - 19,142 - Americas Outdoor expense excluding effects of FX $ 218,808 $ 214,812 $ 849,778 $ 839,412 International Outdoor expense $ 313,070 $ 322,271 $ 1,195,770 $ 1,305,995 Excluding: Foreign exchange (increase) decrease 35,205 - 178,523 - International Outdoor expense excluding effects of FX $ 348,275 $ 322,271 $ 1,374,293 $ 1,305,995 OIBDAN: Consolidated OIBDAN $ 219,124 $ 233,641 $ 671,852 $ 692,701 Excluding: Foreign exchange (increase) decrease 9,330 - 27,836 - OIBDAN excluding effects of foreign exchange $ 228,454 $ 233,641 $ 699,688 $ 692,701 Americas Outdoor OIBDAN $ 151,440 $ 150,391 $ 518,385 $ 511,211 Excluding: Foreign exchange (increase) decrease 1,685 - 4,283 - Americas Outdoor OIBDAN excluding effects of FX $ 153,125 $ 150,391 $ 522,668 $ 511,211 International Outdoor OIBDAN $ 94,459 $ 114,535 $ 261,413 $ 304,641 Excluding: Foreign exchange (increase) decrease 8,009 - 27,093 - International Outdoor OIBDAN excluding effects of FX $ 102,468 $ 114,535 $ 288,506 $ 304,641 Corporate OIBDAN $ (26,775) $ (31,285) $ (107,946) $ (123,151) Excluding: Foreign exchange (increase) decrease (364) - (3,540) - Corporate OIBDAN excluding effects of FX $ (27,139) $ (31,285) $ (111,486) $ (123,151)

 

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iHeartMedia, Inc. Reconciliation of Revenues excluding Effects of Political Revenue to Revenues    

Three Months Ended (In thousands) December 31, Year Ended December 31, 2015 2014 2015 2014 Consolidated revenue $ 1,717,579 $ 1,715,797 $ 6,241,516 $ 6,318,533 Excluding: Political revenue (11,224) (45,635) (28,589) (86,877) Consolidated revenue excluding effects of political revenue $ 1,706,355 $ 1,670,162 $ 6,212,927 $ 6,231,656 iHM revenue $ 898,953 $ 854,310 $ 3,284,320 $ 3,161,503 Excluding: Political revenue (7,957) (26,466) (19,923) (51,708) iHM revenue excluding effects of political revenue $ 890,996 $ 827,844 $ 3,264,397 $ 3,109,795 Americas Outdoor revenue $ 364,536 $ 365,203 $ 1,349,021 $ 1,350,623 Excluding: Political revenue (820) (1,760) (3,352) (4,658)

Americas Outdoor revenue excluding effects of political revenue $ 363,716 $ 363,443 $ 1,345,669 $ 1,345,965

Other revenue $ 49,436 $ 62,858 $ 164,296 $ 212,676 Excluding: Political revenue (2,447) (17,409) (5,314) (30,511) Other revenue excluding effects of political revenue $ 46,989 $ 45,449 $ 158,982 $ 182,165

 

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Reconciliation of Corporate Expenses    

    Three Months   Year Ended   (In thousands) December 31, December 31,   2015 2014 2015 2014   iHeartMedia, Inc.   Corporate Expense $ 83,142 $ 87,227 $ 315,564 $ 320,331   Less: Non-cash compensation expense (3,005) (2,651) (10,923) (10,713)  Less: Amortization of system implementation costs (1,071) (717) (3,589) (1,396)

 Less: Lease expense arising from sale-leaseback transactions (744) - (2,384) -

  Less: Corporate eliminations - - - 10   $ 78,322 $ 83,859 $ 298,668 $ 308,232     Clear Channel Outdoor Holdings, Inc.   Corporate Expense $ 29,126 $ 33,316 $ 116,380 $ 130,894   Less: Amortization of system implementation costs (37) - (75) -   Less: Non-cash compensation expense (2,314) (2,031) (8,359) (7,743)  $ 26,775 $ 31,285 $ 107,946 $ 123,151

 

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Reconciliation of Consolidated EBITDA to Operating Income and Net Cash provided by Operating Activities    

iHeartMedia, Inc. (In millions) Four Quarters Ended December 31, 2015 Consolidated EBITDA (as defined by iHeartCommunications' senior secured credit facilities) $ 1,849.4

Less adjustments to consolidated EBITDA (as defined by iHeartCommunications' senior secured credit facilities):

Costs incurred in connection with the closure and/or consolidation of facilities, retention charges, consulting fees, and other permitted activities

(46.8)

Extraordinary, non-recurring or unusual gains or losses or expenses and severance (as referenced in the definition of consolidated EBITDA in iHeartCommunications' senior secured credit facilities)

(20.5)

Non-cash charges (21.8) Other items (0.9)Less: Depreciation and amortization, Impairment charges, Other operating income, net, and Share-based compensation expense

(610.0)

Operating income 1,149.4

Plus: Depreciation and amortization, Impairment charges, Gain (loss) on disposal of operating and fixed assets, and Share-based compensation expense

599.4

Less: Interest expense (1,805.5)Less: Current income tax expense (59.1)Plus: Other income, net 13.1 Adjustments to reconcile consolidated net loss to net cash provided by operating activities (including Provision for doubtful accounts, Amortization of deferred financing charges and note discounts, net and Other reconciling items, net)

65.9

Change in assets and liabilities, net of assets acquired and liabilities assumed (40.5)Net cash provided by operating activities $ (77.3)

 

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Reconciliation of Consolidated EBITDA to Operating Income and Net Cash provided by Operating Activities   

Clear Channel Outdoor Holdings, Inc. (In millions) Four Quarters Ended December 31, 2015 Consolidated EBITDA (as defined by the CCWH Senior Notes indentures) $ 717.4 Less adjustments to consolidated EBITDA (as defined by the CCWH Senior Notes indentures):

Costs incurred in connection with the closure and/or consolidation of facilities, retention charges, consulting fees, and other permitted activities

(20.4)

Extraordinary, non-recurring or unusual gains or losses or expenses and severance (as referenced in the definition of consolidated EBITDA in the CCWH Senior Notes indentures)

(9.9)

Non-cash charges (10.8) Other items (5.0)Less: Depreciation and amortization, Impairment charges, Other operating income, net, and Share-based compensation expense

(410.3)

Operating income 261.0 Plus: Depreciation and amortization, Impairment charges, Gain (loss) on disposal of operating and fixed assets, and Share-based compensation expense

400.5

Less: Interest expense, net (355.7)Plus: Interest income on Due from iHeartCommunications 61.4 Less: Current income tax expense (46.6)Plus: Other income, net 12.4 Adjustments to reconcile consolidated net loss to net cash provided by operating activities (including Provision for doubtful accounts, Amortization of deferred financing charges and note discounts, net and Other reconciling items, net)

8.7

Change in assets and liabilities, net of assets acquired and liabilities assumed (42.8)Net cash provided by operating activities $ 298.9

Investors | Wendy Goldberg | Executive Vice President, Chief Communications Officer | WendyGoldberg@iheartmedia.com

 

 

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About iHeartMedia, Inc.

iHeartMedia, Inc. (OTCBB: IHRT), the parent company of iHeartMedia Capital I, LLC and iHeartCommunications, Inc., is one of the leading global media and entertainment companies. The company specializes in radio, digital, outdoor, mobile, social, live events, on-demand entertainment and information services for local communities, and uses its unparalleled national reach to target both nationally and locally on behalf of its advertising partners. The company is dedicated to using the latest technology solutions to transform the company’s products and services for the benefit of its consumers, communities, partners and advertisers, and its outdoor business reaches over 40 countries across five continents, connecting people to brands using innovative new technology.

www.iheartmedia.com

About Clear Channel Outdoor Holdings, Inc.Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) is one of the world’s largest outdoor advertising companies with more than 640,000 displays in over 35 countries across Asia, Australia, Europe, Latin America and North America. Reaching millions of people monthly, including consumers in 43 of the top 50 U.S. markets, Clear Channel Outdoor enables advertisers to engage with consumers through innovative advertising solutions. Clear Channel Outdoor is pioneering the integration of out-of-home with mobile and social platforms, and the company’s digital platform includes over 1,200 digital billboards across 38 markets in North America and over 5,000 digital displays in international markets.

www.clearchanneloutdoor.com www.clearchannelinternational.com