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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Clear Channel Outdoor Holdings Inc | NYSE:CCO | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.01 | -0.64% | 1.55 | 1.56 | 1.48 | 1.51 | 517,946 | 17:17:24 |
Delaware
|
|
86-0812139
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
20880 Stone Oak Parkway
San Antonio, Texas
|
|
78258
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Class
|
Outstanding at November 6, 2017
|
- - - - - - - - - - - - - - - - - - - - - - - - - -
|
- - - - - - - - - - - - - - - - - - - - - - - - - -
|
Class A Common Stock, $.01 par value
|
48,984,920
|
Class B Common Stock, $.01 par value
|
315,000,000
|
|
|
Page No.
|
Part I -- Financial Information
|
|
|
Item 1.
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Part II -- Other Information
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Item 5.
|
||
Item 6.
|
||
|
(In thousands, except share data)
|
September 30, 2017
|
|
December 31,
2016 |
||||
|
(Unaudited)
|
|
|||||
CURRENT ASSETS
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
222,387
|
|
|
$
|
541,995
|
|
Accounts receivable, net of allowance of $25,038 in 2017 and $22,398 in 2016
|
632,963
|
|
|
593,070
|
|
||
Prepaid expenses
|
131,806
|
|
|
111,569
|
|
||
Assets held for sale
|
—
|
|
|
55,602
|
|
||
Other current assets
|
62,037
|
|
|
39,199
|
|
||
Total Current Assets
|
1,049,193
|
|
|
1,341,435
|
|
||
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
||||
Structures, net
|
1,152,066
|
|
|
1,196,676
|
|
||
Other property, plant and equipment, net
|
228,376
|
|
|
216,157
|
|
||
INTANGIBLE ASSETS AND GOODWILL
|
|
|
|
||||
Indefinite-lived intangibles
|
977,152
|
|
|
960,966
|
|
||
Other intangibles, net
|
282,426
|
|
|
299,617
|
|
||
Goodwill
|
713,277
|
|
|
696,263
|
|
||
OTHER ASSETS
|
|
|
|
||||
Due from iHeartCommunications
|
1,051,349
|
|
|
885,701
|
|
||
Other assets
|
126,649
|
|
|
122,013
|
|
||
Total Assets
|
$
|
5,580,488
|
|
|
$
|
5,718,828
|
|
CURRENT LIABILITIES
|
|
|
|
||||
Accounts payable
|
$
|
88,022
|
|
|
$
|
86,870
|
|
Accrued expenses
|
532,247
|
|
|
480,872
|
|
||
Deferred income
|
90,756
|
|
|
67,005
|
|
||
Current portion of long-term debt
|
573
|
|
|
6,971
|
|
||
Total Current Liabilities
|
711,598
|
|
|
641,718
|
|
||
Long-term debt
|
5,264,290
|
|
|
5,110,020
|
|
||
Deferred tax liability
|
601,887
|
|
|
638,705
|
|
||
Other long-term liabilities
|
286,883
|
|
|
259,311
|
|
||
Commitments and Contingent liabilities (Note 4)
|
|
|
|
||||
STOCKHOLDERS’ DEFICIT
|
|
|
|
||||
Noncontrolling interest
|
152,338
|
|
|
149,886
|
|
||
Preferred stock, $.01 par value, 150,000,000 shares authorized, no shares issued and outstanding
|
—
|
|
|
—
|
|
||
Class A common stock, par value $.01 per share, authorized 750,000,000 shares, issued 49,921,834 and 47,947,123 shares in 2017 and 2016, respectively
|
499
|
|
|
479
|
|
||
Class B common stock, $.01 par value, 600,000,000 shares authorized, 315,000,000 shares issued and outstanding
|
3,150
|
|
|
3,150
|
|
||
Additional paid-in capital
|
3,131,164
|
|
|
3,432,121
|
|
||
Accumulated deficit
|
(4,221,215
|
)
|
|
(4,125,798
|
)
|
||
Accumulated other comprehensive loss
|
(344,361
|
)
|
|
(386,658
|
)
|
||
Cost of shares (935,812 in 2017 and 633,851 in 2016) held in treasury
|
(5,745
|
)
|
|
(4,106
|
)
|
||
Total Stockholders’ Deficit
|
(1,284,170
|
)
|
|
(930,926
|
)
|
||
Total Liabilities and Stockholders’ Deficit
|
$
|
5,580,488
|
|
|
$
|
5,718,828
|
|
(In thousands, except per share data)
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenue
|
$
|
645,089
|
|
|
$
|
669,221
|
|
|
$
|
1,862,134
|
|
|
$
|
1,966,321
|
|
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Direct operating expenses (excludes depreciation and amortization)
|
356,100
|
|
|
362,250
|
|
|
1,034,204
|
|
|
1,066,238
|
|
||||
Selling, general and administrative expenses (excludes depreciation and amortization)
|
128,397
|
|
|
126,164
|
|
|
370,069
|
|
|
388,532
|
|
||||
Corporate expenses (excludes depreciation and amortization)
|
35,333
|
|
|
28,103
|
|
|
105,213
|
|
|
86,000
|
|
||||
Depreciation and amortization
|
81,096
|
|
|
85,780
|
|
|
236,880
|
|
|
258,149
|
|
||||
Impairment charges
|
1,591
|
|
|
7,274
|
|
|
1,591
|
|
|
7,274
|
|
||||
Other operating income (expense), net
|
(11,783
|
)
|
|
1,095
|
|
|
28,657
|
|
|
226,485
|
|
||||
Operating income
|
30,789
|
|
|
60,745
|
|
|
142,834
|
|
|
386,613
|
|
||||
Interest expense
|
95,467
|
|
|
93,313
|
|
|
282,730
|
|
|
281,836
|
|
||||
Interest income on Due from iHeartCommunications
|
17,087
|
|
|
12,429
|
|
|
47,277
|
|
|
36,433
|
|
||||
Equity in loss of nonconsolidated affiliates
|
(628
|
)
|
|
(727
|
)
|
|
(829
|
)
|
|
(1,374
|
)
|
||||
Other income (expense), net
|
9,164
|
|
|
(6,524
|
)
|
|
21,804
|
|
|
(46,198
|
)
|
||||
Income (loss) before income taxes
|
(39,055
|
)
|
|
(27,390
|
)
|
|
(71,644
|
)
|
|
93,638
|
|
||||
Income tax benefit (expense)
|
(16,347
|
)
|
|
3,619
|
|
|
(12,900
|
)
|
|
(37,579
|
)
|
||||
Consolidated net income (loss)
|
(55,402
|
)
|
|
(23,771
|
)
|
|
(84,544
|
)
|
|
56,059
|
|
||||
Less amount attributable to noncontrolling interest
|
6,237
|
|
|
7,329
|
|
|
10,873
|
|
|
16,162
|
|
||||
Net income (loss) attributable to the Company
|
$
|
(61,639
|
)
|
|
$
|
(31,100
|
)
|
|
$
|
(95,417
|
)
|
|
$
|
39,897
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
12,950
|
|
|
7,214
|
|
|
43,947
|
|
|
43,584
|
|
||||
Unrealized holding loss on marketable securities
|
(320
|
)
|
|
(290
|
)
|
|
(218
|
)
|
|
(635
|
)
|
||||
Reclassification adjustments
|
6,207
|
|
|
—
|
|
|
4,563
|
|
|
32,823
|
|
||||
Other adjustments to comprehensive income (loss)
|
—
|
|
|
193
|
|
|
—
|
|
|
(3,551
|
)
|
||||
Other comprehensive income
|
18,837
|
|
|
7,117
|
|
|
48,292
|
|
|
72,221
|
|
||||
Comprehensive income (loss)
|
(42,802
|
)
|
|
(23,983
|
)
|
|
(47,125
|
)
|
|
112,118
|
|
||||
Less amount attributable to noncontrolling interest
|
2,666
|
|
|
575
|
|
|
5,995
|
|
|
(984
|
)
|
||||
Comprehensive income (loss) attributable to the Company
|
$
|
(45,468
|
)
|
|
$
|
(24,558
|
)
|
|
$
|
(53,120
|
)
|
|
$
|
113,102
|
|
Net income (loss) attributable to the Company per common share:
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
$
|
(0.17
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
0.11
|
|
Weighted average common shares outstanding – Basic
|
361,302
|
|
|
360,454
|
|
|
361,064
|
|
|
360,202
|
|
||||
Diluted
|
$
|
(0.17
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
0.11
|
|
Weighted average common shares outstanding – Diluted
|
361,302
|
|
|
360,454
|
|
|
361,064
|
|
|
361,417
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Dividends declared per share
|
$
|
0.07
|
|
|
$
|
—
|
|
|
$
|
0.85
|
|
|
$
|
1.49
|
|
(In thousands)
|
Nine Months Ended September 30,
|
||||||
|
2017
|
|
2016
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Consolidated net income (loss)
|
$
|
(84,544
|
)
|
|
$
|
56,059
|
|
Reconciling items:
|
|
|
|
||||
Impairment charges
|
1,591
|
|
|
7,274
|
|
||
Depreciation and amortization
|
236,880
|
|
|
258,149
|
|
||
Deferred taxes
|
(28,101
|
)
|
|
28,575
|
|
||
Provision for doubtful accounts
|
6,328
|
|
|
8,444
|
|
||
Amortization of deferred financing charges and note discounts, net
|
7,996
|
|
|
7,907
|
|
||
Share-based compensation
|
7,153
|
|
|
8,191
|
|
||
Gain on disposal of operating and other assets
|
(30,295
|
)
|
|
(232,026
|
)
|
||
Equity in loss of nonconsolidated affiliates
|
829
|
|
|
1,374
|
|
||
Foreign exchange transaction (gain) loss
|
(22,266
|
)
|
|
46,283
|
|
||
Other reconciling items, net
|
(4,930
|
)
|
|
(968
|
)
|
||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
|
|
|
|
||||
(Increase) decrease in accounts receivable
|
(17,826
|
)
|
|
49,690
|
|
||
Increase in prepaid expenses and other current assets
|
(16,177
|
)
|
|
(39,653
|
)
|
||
Decrease in accrued expenses
|
(8,810
|
)
|
|
(22,053
|
)
|
||
Decrease in accounts payable
|
(4,023
|
)
|
|
(26,548
|
)
|
||
Increase in accrued interest
|
6,031
|
|
|
5,057
|
|
||
Increase in deferred income
|
18,718
|
|
|
8,509
|
|
||
Changes in other operating assets and liabilities
|
3,515
|
|
|
25,893
|
|
||
Net cash provided by operating activities
|
$
|
72,069
|
|
|
$
|
190,157
|
|
Cash flows from investing activities:
|
|
|
|
|
|
||
Purchases of property, plant and equipment
|
(134,868
|
)
|
|
(148,005
|
)
|
||
Proceeds from disposal of assets
|
71,034
|
|
|
591,764
|
|
||
Purchases of other operating assets
|
(2,984
|
)
|
|
(1,689
|
)
|
||
Change in other, net
|
(20,289
|
)
|
|
(30,349
|
)
|
||
Net cash provided by (used for) investing activities
|
$
|
(87,107
|
)
|
|
$
|
411,721
|
|
Cash flows from financing activities:
|
|
|
|
|
|
||
Payments on credit facilities
|
(909
|
)
|
|
(1,728
|
)
|
||
Proceeds from long-term debt
|
156,000
|
|
|
800
|
|
||
Payments on long-term debt
|
(604
|
)
|
|
(1,976
|
)
|
||
Net transfers from (to) iHeartCommunications
|
(165,650
|
)
|
|
161,335
|
|
||
Dividends and other payments to noncontrolling interests
|
(12,027
|
)
|
|
(21,046
|
)
|
||
Dividends paid
|
(282,658
|
)
|
|
(755,149
|
)
|
||
Change in other, net
|
(6,234
|
)
|
|
(1,479
|
)
|
||
Net cash used for financing activities
|
$
|
(312,082
|
)
|
|
$
|
(619,243
|
)
|
Effect of exchange rate changes on cash
|
7,512
|
|
|
(1,054
|
)
|
||
Net decrease in cash and cash equivalents
|
(319,608
|
)
|
|
(18,419
|
)
|
||
Cash and cash equivalents at beginning of period
|
541,995
|
|
|
412,743
|
|
||
Cash and cash equivalents at end of period
|
$
|
222,387
|
|
|
$
|
394,324
|
|
SUPPLEMENTAL DISCLOSURES:
|
|
|
|
|
|
||
Cash paid for interest
|
270,126
|
|
|
271,833
|
|
||
Cash paid for income taxes
|
29,771
|
|
|
34,800
|
|
(In thousands)
|
September 30,
2017 |
|
December 31,
2016 |
||||
|
|
||||||
Land, buildings and improvements
|
$
|
145,531
|
|
|
$
|
152,775
|
|
Structures
|
2,807,023
|
|
|
2,684,673
|
|
||
Furniture and other equipment
|
175,627
|
|
|
148,516
|
|
||
Construction in progress
|
70,514
|
|
|
58,585
|
|
||
|
3,198,695
|
|
|
3,044,549
|
|
||
Less: accumulated depreciation
|
1,818,253
|
|
|
1,631,716
|
|
||
Property, plant and equipment, net
|
$
|
1,380,442
|
|
|
$
|
1,412,833
|
|
(In thousands)
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
||||||||
Transit, street furniture and other outdoor
contractual rights
|
$
|
587,099
|
|
|
$
|
(469,982
|
)
|
|
$
|
563,863
|
|
|
$
|
(426,752
|
)
|
Permanent easements
|
162,919
|
|
|
—
|
|
|
159,782
|
|
|
—
|
|
||||
Other
|
4,667
|
|
|
(2,277
|
)
|
|
4,536
|
|
|
(1,812
|
)
|
||||
Total
|
$
|
754,685
|
|
|
$
|
(472,259
|
)
|
|
$
|
728,181
|
|
|
$
|
(428,564
|
)
|
(In thousands)
|
|
||
2018
|
$
|
19,389
|
|
2019
|
$
|
15,639
|
|
2020
|
$
|
13,356
|
|
2021
|
$
|
13,074
|
|
2022
|
$
|
11,603
|
|
(In thousands)
|
Americas
|
|
International
|
|
Consolidated
|
||||||
Balance as of December 31, 2015
|
$
|
534,683
|
|
|
$
|
223,892
|
|
|
$
|
758,575
|
|
Impairment
|
—
|
|
|
(7,274
|
)
|
|
(7,274
|
)
|
|||
Dispositions
|
(6,934
|
)
|
|
(30,718
|
)
|
|
(37,652
|
)
|
|||
Foreign currency
|
(1,998
|
)
|
|
(5,051
|
)
|
|
(7,049
|
)
|
|||
Assets held for sale
|
(10,337
|
)
|
|
—
|
|
|
(10,337
|
)
|
|||
Balance as of December 31, 2016
|
$
|
515,414
|
|
|
$
|
180,849
|
|
|
$
|
696,263
|
|
Impairment
|
—
|
|
|
(1,591
|
)
|
|
(1,591
|
)
|
|||
Acquisitions
|
2,252
|
|
|
—
|
|
|
2,252
|
|
|||
Dispositions
|
—
|
|
|
(1,817
|
)
|
|
(1,817
|
)
|
|||
Foreign currency
|
654
|
|
|
17,427
|
|
|
18,081
|
|
|||
Assets held for sale
|
89
|
|
|
—
|
|
|
89
|
|
|||
Balance as of September 30, 2017
|
$
|
518,409
|
|
|
$
|
194,868
|
|
|
$
|
713,277
|
|
(In thousands)
|
September 30,
2017 |
|
December 31,
2016 |
||||
|
|
||||||
Clear Channel Worldwide Holdings Senior Notes:
|
|
|
|
||||
6.5% Series A Senior Notes Due 2022
|
$
|
735,750
|
|
|
$
|
735,750
|
|
6.5% Series B Senior Notes Due 2022
|
1,989,250
|
|
|
1,989,250
|
|
||
Clear Channel Worldwide Holdings Senior Subordinated Notes:
|
|
|
|
|
|||
7.625% Series A Senior Subordinated Notes Due 2020
|
275,000
|
|
|
275,000
|
|
||
7.625% Series B Senior Subordinated Notes Due 2020
|
1,925,000
|
|
|
1,925,000
|
|
||
Senior Revolving Credit Facility Due 2018
(1)
|
—
|
|
|
—
|
|
||
Clear Channel International B.V. Senior Notes Due 2020
|
375,000
|
|
|
225,000
|
|
||
Other debt
|
2,529
|
|
|
14,798
|
|
||
Original issue discount
|
(123
|
)
|
|
(6,738
|
)
|
||
Long-term debt fees
|
(37,543
|
)
|
|
(41,069
|
)
|
||
Total debt
|
$
|
5,264,863
|
|
|
$
|
5,116,991
|
|
Less: current portion
|
573
|
|
|
6,971
|
|
||
Total long-term debt
|
$
|
5,264,290
|
|
|
$
|
5,110,020
|
|
(1)
|
The Senior revolving credit facility provides for borrowings up to
$75.0 million
(the revolving credit commitment). As of
September 30, 2017
, we had
$72.7 million
of letters of credit outstanding, and
$2.3 million
of availability, under the senior revolving credit facility.
|
(In thousands)
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Current tax benefit (expense)
|
$
|
(21,094
|
)
|
|
$
|
(10,260
|
)
|
|
$
|
(41,001
|
)
|
|
$
|
(9,004
|
)
|
Deferred tax benefit (expense)
|
4,747
|
|
|
13,879
|
|
|
28,101
|
|
|
(28,575
|
)
|
||||
Income tax benefit (expense)
|
$
|
(16,347
|
)
|
|
$
|
3,619
|
|
|
$
|
(12,900
|
)
|
|
$
|
(37,579
|
)
|
(In thousands)
|
The Company
|
|
Noncontrolling
Interests
|
|
Consolidated
|
||||||
Balances as of January 1, 2017
|
$
|
(1,080,812
|
)
|
|
$
|
149,886
|
|
|
$
|
(930,926
|
)
|
Net income (loss)
|
(95,417
|
)
|
|
10,873
|
|
|
(84,544
|
)
|
|||
Dividends declared
|
(307,492
|
)
|
|
—
|
|
|
(307,492
|
)
|
|||
Payments to noncontrolling interests
|
—
|
|
|
(12,027
|
)
|
|
(12,027
|
)
|
|||
Share-based compensation
|
6,529
|
|
|
624
|
|
|
7,153
|
|
|||
Disposal of noncontrolling interest
|
—
|
|
|
(2,438
|
)
|
|
(2,438
|
)
|
|||
Foreign currency translation adjustments
|
37,952
|
|
|
5,995
|
|
|
43,947
|
|
|||
Unrealized holding loss on marketable securities
|
(218
|
)
|
|
—
|
|
|
(218
|
)
|
|||
Reclassification adjustments
|
4,563
|
|
|
—
|
|
|
4,563
|
|
|||
Other, net
|
(1,613
|
)
|
|
(575
|
)
|
|
(2,188
|
)
|
|||
Balances as of September 30, 2017
|
$
|
(1,436,508
|
)
|
|
$
|
152,338
|
|
|
$
|
(1,284,170
|
)
|
|
|
|
|
|
|
||||||
Balances as of January 1, 2016
|
$
|
(755,599
|
)
|
|
$
|
187,775
|
|
|
$
|
(567,824
|
)
|
Net income
|
39,897
|
|
|
16,162
|
|
|
56,059
|
|
|||
Dividends declared
|
(540,034
|
)
|
|
—
|
|
|
(540,034
|
)
|
|||
Dividends and other payments to noncontrolling interests
|
—
|
|
|
(21,046
|
)
|
|
(21,046
|
)
|
|||
Share-based compensation
|
8,191
|
|
|
—
|
|
|
8,191
|
|
|||
Foreign currency translation adjustments
|
45,230
|
|
|
(1,646
|
)
|
|
43,584
|
|
|||
Unrealized holding loss on marketable securities
|
(635
|
)
|
|
—
|
|
|
(635
|
)
|
|||
Reclassification adjustments
|
32,161
|
|
|
662
|
|
|
32,823
|
|
|||
Other adjustments to comprehensive loss
|
(3,551
|
)
|
|
—
|
|
|
(3,551
|
)
|
|||
Other, net
|
(2,028
|
)
|
|
1,299
|
|
|
(729
|
)
|
|||
Balances as of September 30, 2016
|
$
|
(1,176,368
|
)
|
|
$
|
183,206
|
|
|
$
|
(993,162
|
)
|
(In thousands, except per share data)
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
NUMERATOR:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to the Company – common shares
|
$
|
(61,639
|
)
|
|
$
|
(31,100
|
)
|
|
$
|
(95,417
|
)
|
|
$
|
39,897
|
|
|
|
|
|
|
|
|
|
||||||||
DENOMINATOR:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding - basic
|
361,302
|
|
|
360,454
|
|
|
361,064
|
|
|
360,202
|
|
||||
Stock options and restricted stock
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
1,215
|
|
||||
Weighted average common shares outstanding - diluted
|
361,302
|
|
|
360,454
|
|
|
361,064
|
|
|
361,417
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to the Company per common share:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
$
|
(0.17
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
0.11
|
|
Diluted
|
$
|
(0.17
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
0.11
|
|
(1)
|
Outstanding equity awards of
8.3 million
and
8.1 million
for the three months ended
September 30, 2017
and
2016
, respectively,
8.3 million
and
5.4 million
for the
nine
months ended
September 30, 2017
and
2016
, respectively, were not included in the computation of diluted earnings per share because to do so would have been antidilutive.
|
(In thousands)
|
Americas
|
|
International
|
|
Corporate and other reconciling items
|
|
Consolidated
|
||||||||
Three Months Ended September 30, 2017
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
316,587
|
|
|
$
|
328,502
|
|
|
$
|
—
|
|
|
$
|
645,089
|
|
Direct operating expenses
|
141,609
|
|
|
214,491
|
|
|
—
|
|
|
356,100
|
|
||||
Selling, general and administrative expenses
|
54,689
|
|
|
73,708
|
|
|
—
|
|
|
128,397
|
|
||||
Corporate expenses
|
—
|
|
|
—
|
|
|
35,333
|
|
|
35,333
|
|
||||
Depreciation and amortization
|
47,035
|
|
|
32,886
|
|
|
1,175
|
|
|
81,096
|
|
||||
Impairment charges
|
—
|
|
|
—
|
|
|
1,591
|
|
|
1,591
|
|
||||
Other operating expense, net
|
—
|
|
|
—
|
|
|
(11,783
|
)
|
|
(11,783
|
)
|
||||
Operating income (loss)
|
$
|
73,254
|
|
|
$
|
7,417
|
|
|
$
|
(49,882
|
)
|
|
$
|
30,789
|
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures
|
$
|
5,118
|
|
|
$
|
26,211
|
|
|
$
|
460
|
|
|
$
|
31,789
|
|
Share-based compensation expense
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,894
|
|
|
$
|
2,894
|
|
|
|
|
|
|
|
|
|
||||||||
Three Months Ended September 30, 2016
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
322,997
|
|
|
$
|
346,224
|
|
|
$
|
—
|
|
|
$
|
669,221
|
|
Direct operating expenses
|
142,989
|
|
|
219,261
|
|
|
—
|
|
|
362,250
|
|
||||
Selling, general and administrative expenses
|
54,500
|
|
|
71,664
|
|
|
—
|
|
|
126,164
|
|
||||
Corporate expenses
|
—
|
|
|
—
|
|
|
28,103
|
|
|
28,103
|
|
||||
Depreciation and amortization
|
47,242
|
|
|
37,018
|
|
|
1,520
|
|
|
85,780
|
|
||||
Impairment charges
|
—
|
|
|
—
|
|
|
7,274
|
|
|
7,274
|
|
||||
Other operating income, net
|
—
|
|
|
—
|
|
|
1,095
|
|
|
1,095
|
|
||||
Operating income (loss)
|
$
|
78,266
|
|
|
$
|
18,281
|
|
|
$
|
(35,802
|
)
|
|
$
|
60,745
|
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures
|
$
|
19,114
|
|
|
$
|
30,803
|
|
|
$
|
1,033
|
|
|
$
|
50,950
|
|
Share-based compensation expense
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,742
|
|
|
$
|
2,742
|
|
(In thousands)
|
Americas
|
|
International
|
|
Corporate and other reconciling items
|
|
Consolidated
|
||||||||
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
919,967
|
|
|
$
|
942,167
|
|
|
$
|
—
|
|
|
$
|
1,862,134
|
|
Direct operating expenses
|
427,181
|
|
|
607,023
|
|
|
—
|
|
|
1,034,204
|
|
||||
Selling, general and administrative expenses
|
165,538
|
|
|
204,531
|
|
|
—
|
|
|
370,069
|
|
||||
Corporate expenses
|
—
|
|
|
—
|
|
|
105,213
|
|
|
105,213
|
|
||||
Depreciation and amortization
|
137,689
|
|
|
95,149
|
|
|
4,042
|
|
|
236,880
|
|
||||
Impairment Charges
|
—
|
|
|
—
|
|
|
1,591
|
|
|
1,591
|
|
||||
Other operating income, net
|
—
|
|
|
—
|
|
|
28,657
|
|
|
28,657
|
|
||||
Operating income (loss)
|
$
|
189,559
|
|
|
$
|
35,464
|
|
|
$
|
(82,189
|
)
|
|
$
|
142,834
|
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures
|
$
|
48,749
|
|
|
$
|
83,851
|
|
|
$
|
2,268
|
|
|
$
|
134,868
|
|
Share-based compensation expense
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,153
|
|
|
$
|
7,153
|
|
|
|
|
|
|
|
|
|
||||||||
Nine Months Ended September 30, 2016
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
931,058
|
|
|
$
|
1,035,263
|
|
|
$
|
—
|
|
|
$
|
1,966,321
|
|
Direct operating expenses
|
421,039
|
|
|
645,199
|
|
|
—
|
|
|
1,066,238
|
|
||||
Selling, general and administrative expenses
|
167,660
|
|
|
220,872
|
|
|
—
|
|
|
388,532
|
|
||||
Corporate expenses
|
—
|
|
|
—
|
|
|
86,000
|
|
|
86,000
|
|
||||
Depreciation and amortization
|
140,883
|
|
|
113,075
|
|
|
4,191
|
|
|
258,149
|
|
||||
Impairment charges
|
—
|
|
|
—
|
|
|
7,274
|
|
|
7,274
|
|
||||
Other operating income, net
|
—
|
|
|
—
|
|
|
226,485
|
|
|
226,485
|
|
||||
Operating income
|
$
|
201,476
|
|
|
$
|
56,117
|
|
|
$
|
129,020
|
|
|
$
|
386,613
|
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures
|
$
|
47,808
|
|
|
$
|
97,487
|
|
|
$
|
2,710
|
|
|
$
|
148,005
|
|
Share-based compensation expense
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,191
|
|
|
$
|
8,191
|
|
(In thousands)
|
September 30, 2017
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
|
|
Guarantor
|
|
Non-Guarantor
|
|
|
|
|
||||||||||||
|
Company
|
|
Issuer
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Cash and cash equivalents
|
$
|
2,359
|
|
|
$
|
—
|
|
|
$
|
13,830
|
|
|
$
|
206,198
|
|
|
$
|
—
|
|
|
$
|
222,387
|
|
Accounts receivable, net of allowance
|
—
|
|
|
—
|
|
|
189,217
|
|
|
443,746
|
|
|
—
|
|
|
632,963
|
|
||||||
Intercompany receivables
|
—
|
|
|
726,495
|
|
|
2,862,295
|
|
|
93,497
|
|
|
(3,682,287
|
)
|
|
—
|
|
||||||
Prepaid expenses
|
318
|
|
|
3,433
|
|
|
61,312
|
|
|
66,743
|
|
|
—
|
|
|
131,806
|
|
||||||
Other current assets
|
23,464
|
|
|
—
|
|
|
3,705
|
|
|
34,868
|
|
|
—
|
|
|
62,037
|
|
||||||
Total Current Assets
|
26,141
|
|
|
729,928
|
|
|
3,130,359
|
|
|
845,052
|
|
|
(3,682,287
|
)
|
|
1,049,193
|
|
||||||
Structures, net
|
—
|
|
|
—
|
|
|
690,930
|
|
|
461,136
|
|
|
—
|
|
|
1,152,066
|
|
||||||
Other property, plant and equipment, net
|
—
|
|
|
—
|
|
|
125,704
|
|
|
102,672
|
|
|
—
|
|
|
228,376
|
|
||||||
Indefinite-lived intangibles
|
—
|
|
|
—
|
|
|
977,152
|
|
|
—
|
|
|
—
|
|
|
977,152
|
|
||||||
Other intangibles, net
|
—
|
|
|
—
|
|
|
252,186
|
|
|
30,240
|
|
|
—
|
|
|
282,426
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
507,819
|
|
|
205,458
|
|
|
—
|
|
|
713,277
|
|
||||||
Due from iHeartCommunications
|
1,051,349
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,051,349
|
|
||||||
Intercompany notes receivable
|
182,026
|
|
|
4,857,393
|
|
|
12,437
|
|
|
74,107
|
|
|
(5,125,963
|
)
|
|
—
|
|
||||||
Other assets
|
224,750
|
|
|
431,992
|
|
|
1,312,735
|
|
|
71,635
|
|
|
(1,914,463
|
)
|
|
126,649
|
|
||||||
Total Assets
|
$
|
1,484,266
|
|
|
$
|
6,019,313
|
|
|
$
|
7,009,322
|
|
|
$
|
1,790,300
|
|
|
$
|
(10,722,713
|
)
|
|
$
|
5,580,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,810
|
|
|
$
|
74,212
|
|
|
$
|
—
|
|
|
$
|
88,022
|
|
Intercompany payable
|
2,862,295
|
|
|
—
|
|
|
819,992
|
|
|
—
|
|
|
(3,682,287
|
)
|
|
—
|
|
||||||
Accrued expenses
|
23,378
|
|
|
1,711
|
|
|
94,033
|
|
|
413,125
|
|
|
—
|
|
|
532,247
|
|
||||||
Deferred income
|
—
|
|
|
—
|
|
|
39,874
|
|
|
50,882
|
|
|
—
|
|
|
90,756
|
|
||||||
Current portion of long-term debt
|
—
|
|
|
—
|
|
|
112
|
|
|
461
|
|
|
—
|
|
|
573
|
|
||||||
Total Current Liabilities
|
2,885,673
|
|
|
1,711
|
|
|
967,821
|
|
|
538,680
|
|
|
(3,682,287
|
)
|
|
711,598
|
|
||||||
Long-term debt
|
—
|
|
|
4,892,903
|
|
|
1,850
|
|
|
369,537
|
|
|
—
|
|
|
5,264,290
|
|
||||||
Intercompany notes payable
|
—
|
|
|
74,107
|
|
|
5,039,418
|
|
|
12,438
|
|
|
(5,125,963
|
)
|
|
—
|
|
||||||
Deferred tax liability
|
772
|
|
|
1,367
|
|
|
662,316
|
|
|
(62,568
|
)
|
|
—
|
|
|
601,887
|
|
||||||
Other long-term liabilities
|
1,019
|
|
|
—
|
|
|
143,119
|
|
|
142,745
|
|
|
—
|
|
|
286,883
|
|
||||||
Total stockholders' equity (deficit)
|
(1,403,198
|
)
|
|
1,049,225
|
|
|
194,798
|
|
|
789,468
|
|
|
(1,914,463
|
)
|
|
(1,284,170
|
)
|
||||||
Total Liabilities and Stockholders' Equity (Deficit)
|
$
|
1,484,266
|
|
|
$
|
6,019,313
|
|
|
$
|
7,009,322
|
|
|
$
|
1,790,300
|
|
|
$
|
(10,722,713
|
)
|
|
$
|
5,580,488
|
|
(In thousands)
|
December 31, 2016
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
|
|
Guarantor
|
|
Non-Guarantor
|
|
|
|
|
||||||||||||
|
Company
|
|
Issuer
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Cash and cash equivalents
|
$
|
300,285
|
|
|
$
|
—
|
|
|
$
|
61,542
|
|
|
$
|
180,168
|
|
|
$
|
—
|
|
|
$
|
541,995
|
|
Accounts receivable, net of allowance
|
—
|
|
|
—
|
|
|
193,474
|
|
|
399,596
|
|
|
—
|
|
|
593,070
|
|
||||||
Intercompany receivables
|
—
|
|
|
687,043
|
|
|
2,694,094
|
|
|
99,431
|
|
|
(3,480,568
|
)
|
|
—
|
|
||||||
Prepaid expenses
|
1,363
|
|
|
3,433
|
|
|
51,751
|
|
|
55,022
|
|
|
—
|
|
|
111,569
|
|
||||||
Assets held for sale
|
—
|
|
|
—
|
|
|
55,602
|
|
|
—
|
|
|
—
|
|
|
55,602
|
|
||||||
Other current assets
|
—
|
|
|
—
|
|
|
6,873
|
|
|
32,326
|
|
|
—
|
|
|
39,199
|
|
||||||
Total Current Assets
|
301,648
|
|
|
690,476
|
|
|
3,063,336
|
|
|
766,543
|
|
|
(3,480,568
|
)
|
|
1,341,435
|
|
||||||
Structures, net
|
—
|
|
|
—
|
|
|
746,877
|
|
|
449,799
|
|
|
—
|
|
|
1,196,676
|
|
||||||
Other property, plant and equipment, net
|
—
|
|
|
—
|
|
|
124,138
|
|
|
92,019
|
|
|
—
|
|
|
216,157
|
|
||||||
Indefinite-lived intangibles
|
—
|
|
|
—
|
|
|
951,439
|
|
|
9,527
|
|
|
—
|
|
|
960,966
|
|
||||||
Other intangibles, net
|
—
|
|
|
—
|
|
|
259,915
|
|
|
39,702
|
|
|
—
|
|
|
299,617
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
505,478
|
|
|
190,785
|
|
|
—
|
|
|
696,263
|
|
||||||
Due from iHeartCommunications
|
885,701
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
885,701
|
|
||||||
Intercompany notes receivable
|
182,026
|
|
|
4,887,354
|
|
|
—
|
|
|
—
|
|
|
(5,069,380
|
)
|
|
—
|
|
||||||
Other assets
|
280,435
|
|
|
418,658
|
|
|
1,320,838
|
|
|
65,589
|
|
|
(1,963,507
|
)
|
|
122,013
|
|
||||||
Total Assets
|
$
|
1,649,810
|
|
|
$
|
5,996,488
|
|
|
$
|
6,972,021
|
|
|
$
|
1,613,964
|
|
|
$
|
(10,513,455
|
)
|
|
$
|
5,718,828
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,897
|
|
|
$
|
71,973
|
|
|
$
|
—
|
|
|
$
|
86,870
|
|
Intercompany payable
|
2,694,094
|
|
|
—
|
|
|
786,474
|
|
|
—
|
|
|
(3,480,568
|
)
|
|
—
|
|
||||||
Accrued expenses
|
2,223
|
|
|
58,652
|
|
|
35,509
|
|
|
384,488
|
|
|
—
|
|
|
480,872
|
|
||||||
Dividends payable
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
||||||
Deferred income
|
—
|
|
|
—
|
|
|
33,471
|
|
|
33,534
|
|
|
—
|
|
|
67,005
|
|
||||||
Current portion of long-term debt
|
—
|
|
|
—
|
|
|
89
|
|
|
6,882
|
|
|
—
|
|
|
6,971
|
|
||||||
Total Current Liabilities
|
2,696,317
|
|
|
58,652
|
|
|
870,440
|
|
|
496,877
|
|
|
(3,480,568
|
)
|
|
641,718
|
|
||||||
Long-term debt
|
—
|
|
|
4,886,318
|
|
|
1,711
|
|
|
221,991
|
|
|
—
|
|
|
5,110,020
|
|
||||||
Intercompany notes payable
|
—
|
|
|
5,000
|
|
|
5,027,681
|
|
|
36,699
|
|
|
(5,069,380
|
)
|
|
—
|
|
||||||
Deferred tax liability
|
772
|
|
|
1,367
|
|
|
685,780
|
|
|
(49,214
|
)
|
|
—
|
|
|
638,705
|
|
||||||
Other long-term liabilities
|
1,055
|
|
|
—
|
|
|
135,094
|
|
|
123,162
|
|
|
—
|
|
|
259,311
|
|
||||||
Total stockholders' equity (deficit)
|
(1,048,334
|
)
|
|
1,045,151
|
|
|
251,315
|
|
|
784,449
|
|
|
(1,963,507
|
)
|
|
(930,926
|
)
|
||||||
Total Liabilities and Stockholders' Equity (Deficit)
|
$
|
1,649,810
|
|
|
$
|
5,996,488
|
|
|
$
|
6,972,021
|
|
|
$
|
1,613,964
|
|
|
$
|
(10,513,455
|
)
|
|
$
|
5,718,828
|
|
(In thousands)
|
Three Months Ended September 30, 2017
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
|
|
Guarantor
|
|
Non-Guarantor
|
|
|
|
|
||||||||||||
|
Company
|
|
Issuer
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenue
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
288,433
|
|
|
$
|
356,656
|
|
|
$
|
—
|
|
|
$
|
645,089
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Direct operating expenses
|
—
|
|
|
—
|
|
|
126,536
|
|
|
229,564
|
|
|
—
|
|
|
356,100
|
|
||||||
Selling, general and administrative expenses
|
—
|
|
|
—
|
|
|
47,994
|
|
|
80,403
|
|
|
—
|
|
|
128,397
|
|
||||||
Corporate expenses
|
3,602
|
|
|
—
|
|
|
22,658
|
|
|
9,073
|
|
|
—
|
|
|
35,333
|
|
||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
45,180
|
|
|
35,916
|
|
|
—
|
|
|
81,096
|
|
||||||
Impairment charges
|
—
|
|
|
—
|
|
|
—
|
|
|
1,591
|
|
|
—
|
|
|
1,591
|
|
||||||
Other operating income (expense), net
|
(102
|
)
|
|
—
|
|
|
1,876
|
|
|
(13,557
|
)
|
|
—
|
|
|
(11,783
|
)
|
||||||
Operating income (loss)
|
(3,704
|
)
|
|
—
|
|
|
47,941
|
|
|
(13,448
|
)
|
|
—
|
|
|
30,789
|
|
||||||
Interest (income) expense, net
|
(20
|
)
|
|
88,232
|
|
|
126
|
|
|
7,129
|
|
|
—
|
|
|
95,467
|
|
||||||
Interest income on Due from iHeartCommunications
|
17,087
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,087
|
|
||||||
Intercompany interest income
|
4,090
|
|
|
85,067
|
|
|
17,316
|
|
|
43
|
|
|
(106,516
|
)
|
|
—
|
|
||||||
Intercompany interest expense
|
17,087
|
|
|
203
|
|
|
89,200
|
|
|
26
|
|
|
(106,516
|
)
|
|
—
|
|
||||||
Equity in loss of nonconsolidated affiliates
|
(57,326
|
)
|
|
(15,720
|
)
|
|
(32,846
|
)
|
|
(838
|
)
|
|
106,102
|
|
|
(628
|
)
|
||||||
Other income (expense), net
|
(7,517
|
)
|
|
—
|
|
|
9,958
|
|
|
6,723
|
|
|
—
|
|
|
9,164
|
|
||||||
Loss before income taxes
|
(64,437
|
)
|
|
(19,088
|
)
|
|
(46,957
|
)
|
|
(14,675
|
)
|
|
106,102
|
|
|
(39,055
|
)
|
||||||
Income tax benefit (expense)
|
2,798
|
|
|
(1,711
|
)
|
|
(10,369
|
)
|
|
(7,065
|
)
|
|
—
|
|
|
(16,347
|
)
|
||||||
Consolidated net loss
|
(61,639
|
)
|
|
(20,799
|
)
|
|
(57,326
|
)
|
|
(21,740
|
)
|
|
106,102
|
|
|
(55,402
|
)
|
||||||
Less amount attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
6,237
|
|
|
—
|
|
|
6,237
|
|
||||||
Net loss attributable to the Company
|
$
|
(61,639
|
)
|
|
$
|
(20,799
|
)
|
|
$
|
(57,326
|
)
|
|
$
|
(27,977
|
)
|
|
$
|
106,102
|
|
|
$
|
(61,639
|
)
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
712
|
|
|
12,238
|
|
|
—
|
|
|
12,950
|
|
||||||
Unrealized holding loss on marketable securities
|
—
|
|
|
—
|
|
|
—
|
|
|
(320
|
)
|
|
—
|
|
|
(320
|
)
|
||||||
Reclassification adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
6,207
|
|
|
—
|
|
|
6,207
|
|
||||||
Equity in subsidiary comprehensive income
|
16,171
|
|
|
7,963
|
|
|
15,459
|
|
|
—
|
|
|
(39,593
|
)
|
|
—
|
|
||||||
Comprehensive loss
|
(45,468
|
)
|
|
(12,836
|
)
|
|
(41,155
|
)
|
|
(9,852
|
)
|
|
66,509
|
|
|
(42,802
|
)
|
||||||
Less amount attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
2,666
|
|
|
—
|
|
|
2,666
|
|
||||||
Comprehensive loss attributable to the Company
|
$
|
(45,468
|
)
|
|
$
|
(12,836
|
)
|
|
$
|
(41,155
|
)
|
|
$
|
(12,518
|
)
|
|
$
|
66,509
|
|
|
$
|
(45,468
|
)
|
(In thousands)
|
Three Months Ended September 30, 2016
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
|
|
Guarantor
|
|
Non-Guarantor
|
|
|
|
|
||||||||||||
|
Company
|
|
Issuer
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenue
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
287,526
|
|
|
$
|
381,695
|
|
|
$
|
—
|
|
|
$
|
669,221
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Direct operating expenses
|
—
|
|
|
—
|
|
|
122,893
|
|
|
239,357
|
|
|
—
|
|
|
362,250
|
|
||||||
Selling, general and administrative expenses
|
—
|
|
|
—
|
|
|
46,946
|
|
|
79,218
|
|
|
—
|
|
|
126,164
|
|
||||||
Corporate expenses
|
3,400
|
|
|
—
|
|
|
13,929
|
|
|
10,774
|
|
|
—
|
|
|
28,103
|
|
||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
45,525
|
|
|
40,255
|
|
|
—
|
|
|
85,780
|
|
||||||
Impairment charges
|
—
|
|
|
—
|
|
|
—
|
|
|
7,274
|
|
|
—
|
|
|
7,274
|
|
||||||
Other operating income (expense), net
|
(108
|
)
|
|
—
|
|
|
3,319
|
|
|
(2,116
|
)
|
|
—
|
|
|
1,095
|
|
||||||
Operating income (loss)
|
(3,508
|
)
|
|
—
|
|
|
61,552
|
|
|
2,701
|
|
|
—
|
|
|
60,745
|
|
||||||
Interest (income) expense , net
|
(236
|
)
|
|
88,972
|
|
|
(639
|
)
|
|
5,216
|
|
|
—
|
|
|
93,313
|
|
||||||
Interest income on Due from iHeartCommunications
|
12,429
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,429
|
|
||||||
Intercompany interest income
|
4,034
|
|
|
85,410
|
|
|
12,920
|
|
|
—
|
|
|
(102,364
|
)
|
|
—
|
|
||||||
Intercompany interest expense
|
12,429
|
|
|
—
|
|
|
89,444
|
|
|
491
|
|
|
(102,364
|
)
|
|
—
|
|
||||||
Equity in loss of nonconsolidated affiliates
|
(31,364
|
)
|
|
(27,115
|
)
|
|
(30,183
|
)
|
|
(833
|
)
|
|
88,768
|
|
|
(727
|
)
|
||||||
Other income (expense), net
|
668
|
|
|
—
|
|
|
(907
|
)
|
|
(6,285
|
)
|
|
—
|
|
|
(6,524
|
)
|
||||||
Loss before income taxes
|
(29,934
|
)
|
|
(30,677
|
)
|
|
(45,423
|
)
|
|
(10,124
|
)
|
|
88,768
|
|
|
(27,390
|
)
|
||||||
Income tax benefit (expense)
|
(1,166
|
)
|
|
1,168
|
|
|
14,059
|
|
|
(10,442
|
)
|
|
—
|
|
|
3,619
|
|
||||||
Consolidated net loss
|
(31,100
|
)
|
|
(29,509
|
)
|
|
(31,364
|
)
|
|
(20,566
|
)
|
|
88,768
|
|
|
(23,771
|
)
|
||||||
Less amount attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
7,329
|
|
|
—
|
|
|
7,329
|
|
||||||
Net loss attributable to the Company
|
$
|
(31,100
|
)
|
|
$
|
(29,509
|
)
|
|
$
|
(31,364
|
)
|
|
$
|
(27,895
|
)
|
|
$
|
88,768
|
|
|
$
|
(31,100
|
)
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
(5,714
|
)
|
|
12,928
|
|
|
—
|
|
|
7,214
|
|
||||||
Unrealized holding loss on marketable securities
|
—
|
|
|
—
|
|
|
—
|
|
|
(290
|
)
|
|
—
|
|
|
(290
|
)
|
||||||
Other adjustments to comprehensive loss
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
195
|
|
|
—
|
|
|
193
|
|
||||||
Equity in subsidiary comprehensive income
|
6,542
|
|
|
9,528
|
|
|
9,276
|
|
|
—
|
|
|
(25,346
|
)
|
|
—
|
|
||||||
Comprehensive loss
|
(24,558
|
)
|
|
(19,981
|
)
|
|
(27,804
|
)
|
|
(15,062
|
)
|
|
63,422
|
|
|
(23,983
|
)
|
||||||
Less amount attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
(2,982
|
)
|
|
3,557
|
|
|
—
|
|
|
575
|
|
||||||
Comprehensive loss attributable to the Company
|
$
|
(24,558
|
)
|
|
$
|
(19,981
|
)
|
|
$
|
(24,822
|
)
|
|
$
|
(18,619
|
)
|
|
$
|
63,422
|
|
|
$
|
(24,558
|
)
|
(In thousands)
|
Nine Months Ended September 30, 2017
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
|
|
Guarantor
|
|
Non-Guarantor
|
|
|
|
|
||||||||||||
|
Company
|
|
Issuer
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenue
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
832,419
|
|
|
$
|
1,029,715
|
|
|
$
|
—
|
|
|
$
|
1,862,134
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Direct operating expenses
|
—
|
|
|
—
|
|
|
378,078
|
|
|
656,126
|
|
|
—
|
|
|
1,034,204
|
|
||||||
Selling, general and administrative expenses
|
—
|
|
|
—
|
|
|
144,183
|
|
|
225,886
|
|
|
—
|
|
|
370,069
|
|
||||||
Corporate expenses
|
10,972
|
|
|
—
|
|
|
68,592
|
|
|
25,649
|
|
|
—
|
|
|
105,213
|
|
||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
132,160
|
|
|
104,720
|
|
|
—
|
|
|
236,880
|
|
||||||
Impairment charges
|
—
|
|
|
—
|
|
|
—
|
|
|
1,591
|
|
|
—
|
|
|
1,591
|
|
||||||
Other operating income (expense), net
|
(308
|
)
|
|
—
|
|
|
35,526
|
|
|
(6,561
|
)
|
|
—
|
|
|
28,657
|
|
||||||
Operating income (loss)
|
(11,280
|
)
|
|
—
|
|
|
144,932
|
|
|
9,182
|
|
|
—
|
|
|
142,834
|
|
||||||
Interest (income) expense, net
|
(412
|
)
|
|
264,866
|
|
|
(545
|
)
|
|
18,821
|
|
|
—
|
|
|
282,730
|
|
||||||
Interest income on Due from iHeartCommunications
|
47,277
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,277
|
|
||||||
Intercompany interest income
|
12,236
|
|
|
255,351
|
|
|
48,104
|
|
|
140
|
|
|
(315,831
|
)
|
|
—
|
|
||||||
Intercompany interest expense
|
47,277
|
|
|
321
|
|
|
267,727
|
|
|
506
|
|
|
(315,831
|
)
|
|
—
|
|
||||||
Equity in loss of nonconsolidated affiliates
|
(97,982
|
)
|
|
(16,646
|
)
|
|
(39,558
|
)
|
|
(1,643
|
)
|
|
155,000
|
|
|
(829
|
)
|
||||||
Other income, net
|
2,716
|
|
|
—
|
|
|
8,425
|
|
|
10,663
|
|
|
—
|
|
|
21,804
|
|
||||||
Loss before income taxes
|
(93,898
|
)
|
|
(26,482
|
)
|
|
(105,279
|
)
|
|
(985
|
)
|
|
155,000
|
|
|
(71,644
|
)
|
||||||
Income tax benefit (expense)
|
(1,519
|
)
|
|
576
|
|
|
7,297
|
|
|
(19,254
|
)
|
|
—
|
|
|
(12,900
|
)
|
||||||
Consolidated net loss
|
(95,417
|
)
|
|
(25,906
|
)
|
|
(97,982
|
)
|
|
(20,239
|
)
|
|
155,000
|
|
|
(84,544
|
)
|
||||||
Less amount attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
10,873
|
|
|
—
|
|
|
10,873
|
|
||||||
Net loss attributable to the Company
|
$
|
(95,417
|
)
|
|
$
|
(25,906
|
)
|
|
$
|
(97,982
|
)
|
|
$
|
(31,112
|
)
|
|
$
|
155,000
|
|
|
$
|
(95,417
|
)
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
806
|
|
|
43,141
|
|
|
—
|
|
|
43,947
|
|
||||||
Unrealized holding loss on marketable securities
|
—
|
|
|
—
|
|
|
—
|
|
|
(218
|
)
|
|
—
|
|
|
(218
|
)
|
||||||
Reclassification adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
4,563
|
|
|
—
|
|
|
4,563
|
|
||||||
Other adjustments to comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Equity in subsidiary comprehensive income
|
42,297
|
|
|
29,980
|
|
|
41,491
|
|
|
—
|
|
|
(113,768
|
)
|
|
—
|
|
||||||
Comprehensive income (loss)
|
(53,120
|
)
|
|
4,074
|
|
|
(55,685
|
)
|
|
16,374
|
|
|
41,232
|
|
|
(47,125
|
)
|
||||||
Less amount attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
5,995
|
|
|
—
|
|
|
5,995
|
|
||||||
Comprehensive income (loss) attributable to the Company
|
$
|
(53,120
|
)
|
|
$
|
4,074
|
|
|
$
|
(55,685
|
)
|
|
$
|
10,379
|
|
|
$
|
41,232
|
|
|
$
|
(53,120
|
)
|
(In thousands)
|
Nine Months Ended September 30, 2016
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
|
|
Guarantor
|
|
Non-Guarantor
|
|
|
|
|
||||||||||||
|
Company
|
|
Issuer
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenue
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
833,840
|
|
|
$
|
1,132,481
|
|
|
$
|
—
|
|
|
$
|
1,966,321
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Direct operating expenses
|
—
|
|
|
—
|
|
|
365,478
|
|
|
700,760
|
|
|
—
|
|
|
1,066,238
|
|
||||||
Selling, general and administrative expenses
|
—
|
|
|
—
|
|
|
146,347
|
|
|
242,185
|
|
|
—
|
|
|
388,532
|
|
||||||
Corporate expenses
|
9,822
|
|
|
—
|
|
|
44,997
|
|
|
31,181
|
|
|
—
|
|
|
86,000
|
|
||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
134,763
|
|
|
123,386
|
|
|
—
|
|
|
258,149
|
|
||||||
Impairment charges
|
—
|
|
|
—
|
|
|
—
|
|
|
7,274
|
|
|
—
|
|
|
7,274
|
|
||||||
Other operating income (expense), net
|
(312
|
)
|
|
—
|
|
|
291,168
|
|
|
(64,371
|
)
|
|
—
|
|
|
226,485
|
|
||||||
Operating income (loss)
|
(10,134
|
)
|
|
—
|
|
|
433,423
|
|
|
(36,676
|
)
|
|
—
|
|
|
386,613
|
|
||||||
Interest (income) expense , net
|
(886
|
)
|
|
265,091
|
|
|
557
|
|
|
17,074
|
|
|
—
|
|
|
281,836
|
|
||||||
Interest income on Due from iHeartCommunications
|
36,433
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36,433
|
|
||||||
Intercompany interest income
|
12,102
|
|
|
256,289
|
|
|
37,944
|
|
|
—
|
|
|
(306,335
|
)
|
|
—
|
|
||||||
Intercompany interest expense
|
36,433
|
|
|
—
|
|
|
268,391
|
|
|
1,511
|
|
|
(306,335
|
)
|
|
—
|
|
||||||
Equity in earnings (loss) of nonconsolidated affiliates
|
36,614
|
|
|
(144,270
|
)
|
|
(153,409
|
)
|
|
(2,166
|
)
|
|
261,857
|
|
|
(1,374
|
)
|
||||||
Other income (expense), net
|
2,373
|
|
|
—
|
|
|
(1,916
|
)
|
|
(46,655
|
)
|
|
—
|
|
|
(46,198
|
)
|
||||||
Income (loss) before income taxes
|
41,841
|
|
|
(153,072
|
)
|
|
47,094
|
|
|
(104,082
|
)
|
|
261,857
|
|
|
93,638
|
|
||||||
Income tax benefit (expense)
|
(1,944
|
)
|
|
3,078
|
|
|
(10,480
|
)
|
|
(28,233
|
)
|
|
—
|
|
|
(37,579
|
)
|
||||||
Consolidated net income (loss)
|
39,897
|
|
|
(149,994
|
)
|
|
36,614
|
|
|
(132,315
|
)
|
|
261,857
|
|
|
56,059
|
|
||||||
Less amount attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
16,162
|
|
|
—
|
|
|
16,162
|
|
||||||
Net income (loss) attributable to the Company
|
$
|
39,897
|
|
|
$
|
(149,994
|
)
|
|
$
|
36,614
|
|
|
$
|
(148,477
|
)
|
|
$
|
261,857
|
|
|
$
|
39,897
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
(8,761
|
)
|
|
52,345
|
|
|
—
|
|
|
43,584
|
|
||||||
Unrealized holding loss on marketable securities
|
—
|
|
|
—
|
|
|
—
|
|
|
(635
|
)
|
|
—
|
|
|
(635
|
)
|
||||||
Reclassification adjustments
|
—
|
|
|
—
|
|
|
662
|
|
|
32,161
|
|
|
—
|
|
|
32,823
|
|
||||||
Other adjustments to comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,551
|
)
|
|
—
|
|
|
(3,551
|
)
|
||||||
Equity in subsidiary comprehensive income
|
73,205
|
|
|
73,133
|
|
|
79,000
|
|
|
—
|
|
|
(225,338
|
)
|
|
—
|
|
||||||
Comprehensive income (loss)
|
113,102
|
|
|
(76,861
|
)
|
|
107,515
|
|
|
(68,157
|
)
|
|
36,519
|
|
|
112,118
|
|
||||||
Less amount attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
(2,304
|
)
|
|
1,320
|
|
|
—
|
|
|
(984
|
)
|
||||||
Comprehensive income (loss) attributable to the Company
|
$
|
113,102
|
|
|
$
|
(76,861
|
)
|
|
$
|
109,819
|
|
|
$
|
(69,477
|
)
|
|
$
|
36,519
|
|
|
$
|
113,102
|
|
(In thousands)
|
Nine Months Ended September 30, 2017
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
|
|
Guarantor
|
|
Non-Guarantor
|
|
|
|
|
||||||||||||
|
Company
|
|
Issuer
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated net loss
|
$
|
(95,417
|
)
|
|
$
|
(25,906
|
)
|
|
$
|
(97,982
|
)
|
|
$
|
(20,239
|
)
|
|
$
|
155,000
|
|
|
$
|
(84,544
|
)
|
Reconciling items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impairment charges
|
—
|
|
|
—
|
|
|
—
|
|
|
1,591
|
|
|
—
|
|
|
1,591
|
|
||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
132,160
|
|
|
104,720
|
|
|
—
|
|
|
236,880
|
|
||||||
Deferred taxes
|
—
|
|
|
—
|
|
|
(23,464
|
)
|
|
(4,637
|
)
|
|
—
|
|
|
(28,101
|
)
|
||||||
Provision for doubtful accounts
|
—
|
|
|
—
|
|
|
1,508
|
|
|
4,820
|
|
|
—
|
|
|
6,328
|
|
||||||
Amortization of deferred financing charges and note discounts, net
|
—
|
|
|
6,585
|
|
|
—
|
|
|
1,411
|
|
|
—
|
|
|
7,996
|
|
||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
4,859
|
|
|
2,294
|
|
|
—
|
|
|
7,153
|
|
||||||
(Gain) loss on disposal of operating assets, net
|
—
|
|
|
—
|
|
|
(35,601
|
)
|
|
5,306
|
|
|
—
|
|
|
(30,295
|
)
|
||||||
Equity in loss of nonconsolidated affiliates
|
97,982
|
|
|
16,646
|
|
|
39,558
|
|
|
1,643
|
|
|
(155,000
|
)
|
|
829
|
|
||||||
Foreign exchange transaction (gain) loss
|
—
|
|
|
—
|
|
|
5
|
|
|
(22,271
|
)
|
|
—
|
|
|
(22,266
|
)
|
||||||
Other reconciling items, net
|
—
|
|
|
—
|
|
|
(4,397
|
)
|
|
(533
|
)
|
|
—
|
|
|
(4,930
|
)
|
||||||
Changes in operating assets and liabilities, net
of effects of acquisitions and dispositions:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(Increase) decrease in accounts receivable
|
—
|
|
|
—
|
|
|
2,749
|
|
|
(20,575
|
)
|
|
—
|
|
|
(17,826
|
)
|
||||||
(Increase) decrease in prepaids and other current assets
|
1,045
|
|
|
—
|
|
|
(9,626
|
)
|
|
(7,596
|
)
|
|
—
|
|
|
(16,177
|
)
|
||||||
Increase (decrease) in accrued expenses
|
(3,524
|
)
|
|
(56,942
|
)
|
|
60,128
|
|
|
(8,472
|
)
|
|
—
|
|
|
(8,810
|
)
|
||||||
Decrease in accounts payable
|
—
|
|
|
—
|
|
|
(1,086
|
)
|
|
(2,937
|
)
|
|
—
|
|
|
(4,023
|
)
|
||||||
Increase (decrease) in accrued interest
|
—
|
|
|
—
|
|
|
(93
|
)
|
|
6,124
|
|
|
—
|
|
|
6,031
|
|
||||||
Increase in deferred income
|
—
|
|
|
—
|
|
|
6,352
|
|
|
12,366
|
|
|
—
|
|
|
18,718
|
|
||||||
Changes in other operating assets and liabilities
|
—
|
|
|
—
|
|
|
477
|
|
|
3,038
|
|
|
—
|
|
|
3,515
|
|
||||||
Net cash provided by (used for) operating activities
|
$
|
86
|
|
|
$
|
(59,617
|
)
|
|
$
|
75,547
|
|
|
$
|
56,053
|
|
|
$
|
—
|
|
|
$
|
72,069
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchases of property, plant and equipment
|
—
|
|
|
—
|
|
|
(48,185
|
)
|
|
(86,683
|
)
|
|
—
|
|
|
(134,868
|
)
|
||||||
Proceeds from disposal of assets
|
—
|
|
|
—
|
|
|
54,534
|
|
|
16,500
|
|
|
—
|
|
|
71,034
|
|
||||||
Purchases of other operating assets
|
—
|
|
|
—
|
|
|
(758
|
)
|
|
(2,226
|
)
|
|
—
|
|
|
(2,984
|
)
|
||||||
Increase in intercompany notes receivable, net
|
—
|
|
|
29,962
|
|
|
(6,146
|
)
|
|
(74,107
|
)
|
|
50,291
|
|
|
—
|
|
||||||
Dividends from subsidiaries
|
—
|
|
|
—
|
|
|
22,995
|
|
|
—
|
|
|
(22,995
|
)
|
|
—
|
|
||||||
Change in other, net
|
(23,464
|
)
|
|
—
|
|
|
(4
|
)
|
|
3,179
|
|
|
—
|
|
|
(20,289
|
)
|
||||||
Net cash provided by (used for) investing activities
|
$
|
(23,464
|
)
|
|
$
|
29,962
|
|
|
$
|
22,436
|
|
|
$
|
(143,337
|
)
|
|
$
|
27,296
|
|
|
$
|
(87,107
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Draws on credit facilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Payments on credit facilities
|
—
|
|
|
—
|
|
|
—
|
|
|
(909
|
)
|
|
—
|
|
|
(909
|
)
|
||||||
Proceeds from long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
156,000
|
|
|
—
|
|
|
156,000
|
|
||||||
Payments on long-term debt
|
—
|
|
|
—
|
|
|
(73
|
)
|
|
(531
|
)
|
|
—
|
|
|
(604
|
)
|
||||||
Net transfers to iHeartCommunications
|
(165,650
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(165,650
|
)
|
||||||
Dividends and other payments to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,027
|
)
|
|
—
|
|
|
(12,027
|
)
|
||||||
Dividends paid
|
(282,658
|
)
|
|
—
|
|
|
—
|
|
|
(22,995
|
)
|
|
22,995
|
|
|
(282,658
|
)
|
||||||
Increase in intercompany notes payable, net
|
—
|
|
|
69,107
|
|
|
—
|
|
|
(18,816
|
)
|
|
(50,291
|
)
|
|
—
|
|
||||||
Intercompany funding
|
175,186
|
|
|
(39,452
|
)
|
|
(145,622
|
)
|
|
9,888
|
|
|
—
|
|
|
—
|
|
||||||
Change in other, net
|
(1,426
|
)
|
|
—
|
|
|
—
|
|
|
(4,808
|
)
|
|
—
|
|
|
(6,234
|
)
|
||||||
Net cash provided by (used for) financing activities
|
(274,548
|
)
|
|
29,655
|
|
|
(145,695
|
)
|
|
105,802
|
|
|
(27,296
|
)
|
|
(312,082
|
)
|
||||||
Effect of exchange rate changes on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
7,512
|
|
|
—
|
|
|
7,512
|
|
||||||
Net increase (decrease) in cash and cash equivalents
|
(297,926
|
)
|
|
—
|
|
|
(47,712
|
)
|
|
26,030
|
|
|
—
|
|
|
(319,608
|
)
|
||||||
Cash and cash equivalents at beginning of year
|
300,285
|
|
|
—
|
|
|
61,542
|
|
|
180,168
|
|
|
—
|
|
|
541,995
|
|
||||||
Cash and cash equivalents at end of year
|
$
|
2,359
|
|
|
$
|
—
|
|
|
$
|
13,830
|
|
|
$
|
206,198
|
|
|
$
|
—
|
|
|
$
|
222,387
|
|
(In thousands)
|
Nine Months Ended September 30, 2016
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
|
|
Guarantor
|
|
Non-Guarantor
|
|
|
|
|
||||||||||||
|
Company
|
|
Issuer
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated net income (loss)
|
$
|
39,897
|
|
|
$
|
(149,994
|
)
|
|
$
|
36,614
|
|
|
$
|
(132,315
|
)
|
|
$
|
261,857
|
|
|
$
|
56,059
|
|
Reconciling items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impairment charges
|
—
|
|
|
—
|
|
|
—
|
|
|
7,274
|
|
|
—
|
|
|
7,274
|
|
||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
134,763
|
|
|
123,386
|
|
|
—
|
|
|
258,149
|
|
||||||
Deferred taxes
|
—
|
|
|
—
|
|
|
34,051
|
|
|
(5,476
|
)
|
|
—
|
|
|
28,575
|
|
||||||
Provision for doubtful accounts
|
—
|
|
|
—
|
|
|
5,239
|
|
|
3,205
|
|
|
—
|
|
|
8,444
|
|
||||||
Amortization of deferred financing
charges and note discounts, net
|
—
|
|
|
6,551
|
|
|
—
|
|
|
1,356
|
|
|
—
|
|
|
7,907
|
|
||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
4,414
|
|
|
3,777
|
|
|
—
|
|
|
8,191
|
|
||||||
(Gain) loss on sale of operating and fixed assets
|
—
|
|
|
—
|
|
|
(292,766
|
)
|
|
60,740
|
|
|
—
|
|
|
(232,026
|
)
|
||||||
Equity in (earnings) loss of nonconsolidated affiliates
|
(36,614
|
)
|
|
144,270
|
|
|
153,409
|
|
|
2,166
|
|
|
(261,857
|
)
|
|
1,374
|
|
||||||
Foreign exchange transaction (gain) loss
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
46,286
|
|
|
—
|
|
|
46,283
|
|
||||||
Other reconciling items, net
|
—
|
|
|
—
|
|
|
(187
|
)
|
|
(781
|
)
|
|
—
|
|
|
(968
|
)
|
||||||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Decrease in accounts receivable
|
—
|
|
|
—
|
|
|
25,166
|
|
|
24,524
|
|
|
—
|
|
|
49,690
|
|
||||||
Increase in prepaids and other current assets
|
(1,511
|
)
|
|
—
|
|
|
(25,076
|
)
|
|
(13,066
|
)
|
|
—
|
|
|
(39,653
|
)
|
||||||
Increase (decrease) in accrued expenses
|
213
|
|
|
(461
|
)
|
|
(31,497
|
)
|
|
9,692
|
|
|
—
|
|
|
(22,053
|
)
|
||||||
Decrease in accounts payable
|
—
|
|
|
—
|
|
|
(4,958
|
)
|
|
(21,590
|
)
|
|
—
|
|
|
(26,548
|
)
|
||||||
Increase (decrease) in accrued interest
|
—
|
|
|
—
|
|
|
(612
|
)
|
|
5,669
|
|
|
—
|
|
|
5,057
|
|
||||||
Increase in deferred income
|
—
|
|
|
—
|
|
|
3,993
|
|
|
4,516
|
|
|
—
|
|
|
8,509
|
|
||||||
Changes in other operating assets and liabilities
|
—
|
|
|
—
|
|
|
9,735
|
|
|
16,158
|
|
|
—
|
|
|
25,893
|
|
||||||
Net cash provided by operating activities
|
$
|
1,985
|
|
|
$
|
366
|
|
|
$
|
52,285
|
|
|
$
|
135,521
|
|
|
$
|
—
|
|
|
$
|
190,157
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchases of property, plant and equipment
|
—
|
|
|
—
|
|
|
(44,547
|
)
|
|
(103,458
|
)
|
|
—
|
|
|
(148,005
|
)
|
||||||
Proceeds from disposal of assets
|
—
|
|
|
—
|
|
|
355,138
|
|
|
236,626
|
|
|
—
|
|
|
591,764
|
|
||||||
Purchases of other operating assets
|
—
|
|
|
—
|
|
|
(1,444
|
)
|
|
(245
|
)
|
|
—
|
|
|
(1,689
|
)
|
||||||
Decrease in intercompany notes receivable, net
|
—
|
|
|
14,646
|
|
|
—
|
|
|
—
|
|
|
(14,646
|
)
|
|
—
|
|
||||||
Dividends from subsidiaries
|
—
|
|
|
—
|
|
|
235,467
|
|
|
—
|
|
|
(235,467
|
)
|
|
—
|
|
||||||
Change in other, net
|
—
|
|
|
(79
|
)
|
|
(2
|
)
|
|
(30,347
|
)
|
|
79
|
|
|
(30,349
|
)
|
||||||
Net cash provided by investing activities
|
$
|
—
|
|
|
$
|
14,567
|
|
|
$
|
544,612
|
|
|
$
|
102,576
|
|
|
$
|
(250,034
|
)
|
|
$
|
411,721
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Payments on credit facilities
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,728
|
)
|
|
—
|
|
|
(1,728
|
)
|
||||||
Proceeds from long-term debt
|
—
|
|
|
—
|
|
|
800
|
|
|
—
|
|
|
—
|
|
|
800
|
|
||||||
Payments on long-term debt
|
—
|
|
|
—
|
|
|
(57
|
)
|
|
(1,919
|
)
|
|
—
|
|
|
(1,976
|
)
|
||||||
Net transfers to iHeartCommunications
|
161,335
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
161,335
|
|
||||||
Dividends and other payments from (to) noncontrolling interests
|
—
|
|
|
—
|
|
|
2,967
|
|
|
(24,013
|
)
|
|
—
|
|
|
(21,046
|
)
|
||||||
Dividends paid
|
(755,148
|
)
|
|
—
|
|
|
(914
|
)
|
|
(234,554
|
)
|
|
235,467
|
|
|
(755,149
|
)
|
||||||
Decrease in intercompany notes payable, net
|
—
|
|
|
—
|
|
|
(3,613
|
)
|
|
(11,033
|
)
|
|
14,646
|
|
|
—
|
|
||||||
Intercompany funding
|
559,473
|
|
|
(14,933
|
)
|
|
(559,433
|
)
|
|
14,893
|
|
|
—
|
|
|
—
|
|
||||||
Change in other, net
|
(1,280
|
)
|
|
—
|
|
|
—
|
|
|
(120
|
)
|
|
(79
|
)
|
|
(1,479
|
)
|
||||||
Net cash used for financing activities
|
(35,620
|
)
|
|
(14,933
|
)
|
|
(560,250
|
)
|
|
(258,474
|
)
|
|
250,034
|
|
|
(619,243
|
)
|
||||||
Effect of exchange rate changes on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,054
|
)
|
|
—
|
|
|
(1,054
|
)
|
||||||
Net increase (decrease) in cash and cash equivalents
|
(33,635
|
)
|
|
—
|
|
|
36,647
|
|
|
(21,431
|
)
|
|
—
|
|
|
(18,419
|
)
|
||||||
Cash and cash equivalents at beginning of year
|
218,701
|
|
|
—
|
|
|
18,455
|
|
|
175,587
|
|
|
—
|
|
|
412,743
|
|
||||||
Cash and cash equivalents at end of year
|
$
|
185,066
|
|
|
$
|
—
|
|
|
$
|
55,102
|
|
|
$
|
154,156
|
|
|
$
|
—
|
|
|
$
|
394,324
|
|
•
|
Consolidated revenue
decreased
$24.1 million
during the three months ended
September 30, 2017
compared to the same period of
2016
. Excluding a
$10.2 million
impact from movements in foreign exchange rates, consolidated revenue
decreased
$34.3 million
during the three months ended
September 30, 2017
compared to the same period of
2016
, primarily due to the sales of certain outdoor businesses, which generated revenue of
$2.6 million
and
$41.9 million
for three months ended
September 30, 2017
and
2016
.
|
•
|
During the third quarter of 2017, Americas sold its ownership interest in a joint venture in Canada. As a result, the Company recognized a net loss on sale of
$12.1 million
.
|
•
|
On August 14, 2017, Clear Channel International B.V. ("CCIBV"), our indirect subsidiary, issued $150.0 million in aggregate principal amount of 8.75% Senior Notes due 2020 (the "New CCIBV Notes") , as additional notes under the indenture governing CCIBV's existing 8.75% Senior Notes due 2020.
|
(In thousands)
|
Three Months Ended
September 30, |
|
%
|
|
Nine Months Ended
September 30, |
|
%
|
||||||||||||
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
||||||||
Revenue
|
$
|
645,089
|
|
|
$
|
669,221
|
|
|
(3.6)%
|
|
$
|
1,862,134
|
|
|
$
|
1,966,321
|
|
|
(5.3)%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Direct operating expenses (excludes depreciation and amortization)
|
356,100
|
|
|
362,250
|
|
|
(1.7)%
|
|
1,034,204
|
|
|
1,066,238
|
|
|
(3.0)%
|
||||
Selling, general and administrative expenses (excludes depreciation and amortization)
|
128,397
|
|
|
126,164
|
|
|
1.8%
|
|
370,069
|
|
|
388,532
|
|
|
(4.8)%
|
||||
Corporate expenses (excludes depreciation and amortization)
|
35,333
|
|
|
28,103
|
|
|
25.7%
|
|
105,213
|
|
|
86,000
|
|
|
22.3%
|
||||
Depreciation and amortization
|
81,096
|
|
|
85,780
|
|
|
(5.5)%
|
|
236,880
|
|
|
258,149
|
|
|
(8.2)%
|
||||
Impairment charges
|
1,591
|
|
|
7,274
|
|
|
(78.1)%
|
|
1,591
|
|
|
7,274
|
|
|
(78.1)%
|
||||
Other operating income (expense), net
|
(11,783
|
)
|
|
1,095
|
|
|
|
|
28,657
|
|
|
226,485
|
|
|
|
||||
Operating income
|
30,789
|
|
|
60,745
|
|
|
(49.3)%
|
|
142,834
|
|
|
386,613
|
|
|
(63.1)%
|
||||
Interest expense
|
95,467
|
|
|
93,313
|
|
|
|
|
282,730
|
|
|
281,836
|
|
|
|
||||
Interest income on Due from iHeartCommunications
|
17,087
|
|
|
12,429
|
|
|
|
|
47,277
|
|
|
36,433
|
|
|
|
||||
Equity in loss of nonconsolidated affiliates
|
(628
|
)
|
|
(727
|
)
|
|
|
|
(829
|
)
|
|
(1,374
|
)
|
|
|
||||
Other income (expense), net
|
9,164
|
|
|
(6,524
|
)
|
|
|
|
21,804
|
|
|
(46,198
|
)
|
|
|
||||
Income (loss) before income taxes
|
(39,055
|
)
|
|
(27,390
|
)
|
|
|
|
(71,644
|
)
|
|
93,638
|
|
|
|
||||
Income tax benefit (expense)
|
(16,347
|
)
|
|
3,619
|
|
|
|
|
(12,900
|
)
|
|
(37,579
|
)
|
|
|
||||
Consolidated net income (loss)
|
(55,402
|
)
|
|
(23,771
|
)
|
|
|
|
(84,544
|
)
|
|
56,059
|
|
|
|
||||
Less amount attributable to noncontrolling interest
|
6,237
|
|
|
7,329
|
|
|
|
|
10,873
|
|
|
16,162
|
|
|
|
||||
Net income (loss) attributable to the Company
|
$
|
(61,639
|
)
|
|
$
|
(31,100
|
)
|
|
|
|
$
|
(95,417
|
)
|
|
$
|
39,897
|
|
|
|
(In thousands)
|
Three Months Ended September 30,
|
|
%
|
|
Nine Months Ended September 30,
|
|
%
|
||||||||||||
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
||||||||
Revenue
|
$
|
316,587
|
|
|
$
|
322,997
|
|
|
(2.0)%
|
|
$
|
919,967
|
|
|
$
|
931,058
|
|
|
(1.2)%
|
Direct operating expenses
|
141,609
|
|
|
142,989
|
|
|
(1.0)%
|
|
427,181
|
|
|
421,039
|
|
|
1.5%
|
||||
SG&A expenses
|
54,689
|
|
|
54,500
|
|
|
0.3%
|
|
165,538
|
|
|
167,660
|
|
|
(1.3)%
|
||||
Depreciation and amortization
|
47,035
|
|
|
47,242
|
|
|
(0.4)%
|
|
137,689
|
|
|
140,883
|
|
|
(2.3)%
|
||||
Operating income
|
$
|
73,254
|
|
|
$
|
78,266
|
|
|
(6.4)%
|
|
$
|
189,559
|
|
|
$
|
201,476
|
|
|
(5.9)%
|
(In thousands)
|
Three Months Ended September 30,
|
|
%
|
|
Nine Months Ended September 30,
|
|
%
|
||||||||||||
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
||||||||
Revenue
|
$
|
328,502
|
|
|
$
|
346,224
|
|
|
(5.1)%
|
|
$
|
942,167
|
|
|
$
|
1,035,263
|
|
|
(9.0)%
|
Direct operating expenses
|
214,491
|
|
|
219,261
|
|
|
(2.2)%
|
|
607,023
|
|
|
645,199
|
|
|
(5.9)%
|
||||
SG&A expenses
|
73,708
|
|
|
71,664
|
|
|
2.9%
|
|
204,531
|
|
|
220,872
|
|
|
(7.4)%
|
||||
Depreciation and amortization
|
32,886
|
|
|
37,018
|
|
|
(11.2)%
|
|
95,149
|
|
|
113,075
|
|
|
(15.9)%
|
||||
Operating income
|
$
|
7,417
|
|
|
$
|
18,281
|
|
|
(59.4)%
|
|
$
|
35,464
|
|
|
$
|
56,117
|
|
|
(36.8)%
|
(In thousands)
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Americas advertising
|
$
|
73,254
|
|
|
$
|
78,266
|
|
|
$
|
189,559
|
|
|
201,476
|
|
|
International advertising
|
7,417
|
|
|
18,281
|
|
|
35,464
|
|
|
56,117
|
|
||||
Other operating income (loss), net
|
(11,783
|
)
|
|
1,095
|
|
|
28,657
|
|
|
226,485
|
|
||||
Impairment charges
|
(1,591
|
)
|
|
(7,274
|
)
|
|
(1,591
|
)
|
|
(7,274
|
)
|
||||
Corporate and other
(1)
|
(36,508
|
)
|
|
(29,623
|
)
|
|
(109,255
|
)
|
|
(90,191
|
)
|
||||
Consolidated operating income
|
$
|
30,789
|
|
|
$
|
60,745
|
|
|
$
|
142,834
|
|
|
$
|
386,613
|
|
(1)
|
Corporate and other includes expenses related to Americas and International as well as overall executive, administrative and support functions.
|
(In thousands)
|
Nine Months Ended September 30,
|
||||||
|
2017
|
|
2016
|
||||
Cash provided by (used for):
|
|
|
|
||||
Operating activities
|
$
|
72,069
|
|
|
$
|
190,157
|
|
Investing activities
|
$
|
(87,107
|
)
|
|
$
|
411,721
|
|
Financing activities
|
$
|
(312,082
|
)
|
|
$
|
(619,243
|
)
|
(In millions)
|
September 30, 2017
|
|
December 31, 2016
|
||||
Clear Channel Worldwide Holdings Senior Notes due 2022
|
$
|
2,725.0
|
|
|
$
|
2,725.0
|
|
Clear Channel Worldwide Holdings Senior Subordinated Notes due 2020
|
2,200.0
|
|
|
2,200.0
|
|
||
Senior Revolving Credit Facility due 2018
(1)
|
—
|
|
|
—
|
|
||
Clear Channel International B.V. Senior Notes due 2020
|
375.0
|
|
|
225.0
|
|
||
Other debt
|
2.5
|
|
|
14.8
|
|
||
Original issue discount
|
(0.1
|
)
|
|
(6.7
|
)
|
||
Long-term debt fees
|
(37.5
|
)
|
|
(41.1
|
)
|
||
Total debt
|
5,264.9
|
|
|
5,117.0
|
|
||
Less: Cash and cash equivalents
|
222.4
|
|
|
542.0
|
|
||
Less: Due from iHeartCommunications
|
1,051.3
|
|
|
885.7
|
|
||
|
$
|
3,991.2
|
|
|
$
|
3,689.3
|
|
|
Four Quarters Ended
|
||
(In millions)
|
September 30, 2017
|
||
EBITDA
(as defined by the CCWH Senior Notes indentures)
|
$
|
592.7
|
|
Less adjustments to EBITDA (as defined by the CCWH Senior Notes indentures):
|
|
||
Costs incurred in connection with severance, the closure and/or consolidation of facilities, retention charges, consulting fees and other permitted activities
|
(14.4
|
)
|
|
Extraordinary, non-recurring or unusual gains or losses or expenses (as referenced in the definition of EBITDA in the CCWH Senior Notes indentures)
|
(8.6
|
)
|
|
Non-cash charges
|
(2.9
|
)
|
|
Other items
|
3.3
|
|
|
Less: Depreciation and amortization, Impairment charges, Gains and losses on acquisitions and divestitures and Share-based compensation expense
|
(176.4
|
)
|
|
Operating income
|
393.7
|
|
|
Plus: Depreciation and amortization, Impairment charges, Gain (loss) on disposal of operating and fixed assets and Share-based compensation expense
|
171.9
|
|
|
Less: Interest expense
|
(375.8
|
)
|
|
Plus: Interest income on Due from iHeartCommunications
|
61.2
|
|
|
Less: Current income tax expense
|
(77.3
|
)
|
|
Plus: Other income, net
|
(1.1
|
)
|
|
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)
|
14.6
|
|
|
Change in assets and liabilities, net of assets acquired and liabilities assumed
|
5.0
|
|
|
Net cash provided by operating activities
|
$
|
192.2
|
|
•
|
Industry revenue growth forecasts between 0.5% and 3.5% were used for the initial four-year period;
|
•
|
3.0% revenue growth was assumed beyond the initial four-year period;
|
•
|
Revenue was grown over a build-up period, reaching maturity by year 2;
|
•
|
Operating margins gradually climb to the industry average margin of up to 55.9%, depending on market size, by year 3; and
|
•
|
Assumed discount rate of 7.5%.
|
(In thousands)
|
|
Revenue
|
|
Profit
|
|
Discount
|
|||||||||
Description
|
|
Growth Rate
|
|
Margin
|
|
Rates
|
|||||||||
Billboard permits
|
|
$
|
1,107,600
|
|
|
|
$
|
161,800
|
|
|
|
$
|
1,118,300
|
|
|
•
|
Expected cash flows underlying our business plans for the periods
2017
through 2021. Our cash flow assumptions are based on detailed, multi-year forecasts performed by each of our operating segments, and reflect the advertising outlook across our businesses.
|
•
|
Cash flows beyond 2021 are projected to grow at a perpetual growth rate, which we estimated at 3.0%.
|
•
|
In order to risk adjust the cash flow projections in determining fair value; we utilized a discount rate of approximately 8.0% to 11.5% for each of our reporting units.
|
(In thousands)
|
|
Revenue
|
|
Profit
|
|
Discount
|
|||||||||
Description
|
|
Growth Rate
|
|
Margin
|
|
Rates
|
|||||||||
Americas Outdoor
|
|
$
|
820,000
|
|
|
|
$
|
170,000
|
|
|
|
$
|
780,000
|
|
|
International Outdoor
|
|
$
|
260,000
|
|
|
|
$
|
210,000
|
|
|
|
$
|
220,000
|
|
|
•
|
the impact of iHeartCommunications' substantial indebtedness and liquidity position on our liquidity and operating flexibility;
|
•
|
risks associated with weak or uncertain global economic conditions and their impact on the capital markets;
|
•
|
other general economic and political conditions in the United States and in other countries in which we currently do business, including those resulting from recessions, political events and acts or threats of terrorism or military conflicts;
|
•
|
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 and management;
|
•
|
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;
|
•
|
our ability to implement our business strategies;
|
•
|
the risk that we may not be able to integrate the operations of acquired businesses successfully;
|
•
|
the risk that our strategic revenue and efficiency initiatives may not be entirely successful or that any cost savings achieved from such strategic revenue and efficiency initiatives may not persist;
|
•
|
the impact of our substantial indebtedness, including the effect of our leverage on our financial position and earnings;
|
•
|
our ability to generate sufficient cash from operations or liquidity-generating transactions and our need to allocate significant amounts of our cash to make payments on our indebtedness, which in turn could reduce our financial flexibility and ability to fund other activities;
|
•
|
our relationship with iHeartCommunications, including its ability to elect all of the members of our Board of Directors and its ability as our controlling stockholder to determine the outcome of matters submitted to our stockholders and certain additional matters governed by intercompany agreements between us;
|
•
|
the impact of the above and similar factors on iHeartCommunications which has significant need for capital; and
|
•
|
certain other factors set forth in our other filings with the SEC.
|
•
|
issue any shares of capital stock or securities convertible into capital stock;
|
•
|
incur additional indebtedness;
|
•
|
make certain acquisitions and investments;
|
•
|
repurchase our stock;
|
•
|
dispose of certain assets; and
|
•
|
merge or consolidate.
|
Period
|
Total Number of Shares Purchased
(1)
|
|
Average Price Paid per Share
(1)
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
|
||||||
July 1 through July 31
|
75,843
|
|
|
$
|
5.25
|
|
|
—
|
|
|
$
|
—
|
|
August 1 through August 31
|
5,855
|
|
|
4.00
|
|
|
—
|
|
|
—
|
|
||
September 1 through September 30
|
3,084
|
|
|
3.97
|
|
|
—
|
|
|
—
|
|
||
Total
|
84,782
|
|
|
$
|
5.12
|
|
|
—
|
|
|
$
|
—
|
|
(1)
|
The shares indicated consist of shares of our Class A common stock tendered by employees to us during the three months ended
September 30, 2017
to satisfy the employees’ tax withholding obligation in connection with the vesting and release of restricted shares, which are repurchased by us based on their fair market value on the date the relevant transaction occurs.
|
Exhibit
Number
|
|
Description
|
|
|
|
4.1
|
|
|
10.1
|
|
|
31.1*
|
|
|
31.2*
|
|
|
32.1**
|
|
|
32.2**
|
|
|
101*
|
|
Interactive Data Files.
|
|
|
CLEAR CHANNEL OUTDOOR HOLDINGS, INC.
|
|
|
|
November 8, 2017
|
|
/s/ SCOTT D. HAMILTON
|
|
|
Scott D. Hamilton
|
|
|
Senior Vice President, Chief Accounting Officer and
|
|
|
Assistant Secretary
|
1 Year Clear Channel Outdoor Chart |
1 Month Clear Channel Outdoor Chart |
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