International revenues increased $7 million, or 1%, compared to the second quarter of 2011, excluding the effects of movements in foreign exchange rates. Street furniture revenues grew across certain countries, including China, Australia and the UK, while billboard revenues grew in Switzerland. New street furniture and transit contracts won during 2011 helped drive revenue growth. Revenue increases were offset in part by declines resulting from weakened macroeconomic conditions across France, southern Europe and the Nordic countries. On a reported basis, revenues declined $30 million, or 6%, compared to the same quarter of 2011, resulting from $37 million of unfavorable movements in foreign exchange rates.
Operating expenses rose $16 million, excluding the effects of movements in foreign exchange rates, reflecting higher site lease expenses associated primarily with new contracts gained during 2011, as well as increased legal and other expenses in Latin America. On a reported basis, operating expenses decreased $17 million, including a $34 million decline due to the effects of movements in foreign exchange rates.
Excluding the effects of movements in foreign exchange rates, International OIBDAN for the second quarter of 2012 declined 9%. On a reported basis, OIBDAN decreased 13% to $90 million from $103 million in 2011.Conference Call The Company, along with its parent company CC Media Holdings, Inc., will host a teleconference to discuss results today at 4:30 p.m. Eastern Time. The conference call number is 1-800-707-9573 and the passcode is 254783. The teleconference will also be available via a live audio cast on the investor section of the Clear Channel Outdoor Holdings, Inc. website, located at http://www.clearchanneloutdoor.com/corporate/investor-relations/. A replay of the call will be available after the live conference call, beginning at 6:30 p.m. Eastern Time, for a period of 30 days. The replay numbers are 1-800-475-6701 (U.S. callers) and 320-365-3844 (International callers) and the passcode is 254783. The audio cast will also be archived on the website and will be available beginning 24 hours after the call for a period of 30 days.
|TABLE 1 - Financial Highlights of Clear Channel Outdoor Holdings, Inc. and Subsidiaries|
|(In thousands, except per share data)||Three Months Ended June 30,|
|Direct operating expenses (excludes depreciation and amortization)||406,895||415,472|
|Selling, general and administrative expenses (excludes depreciation and amortization)||132,285||142,937|
|Corporate expenses (excludes depreciation and amortization)||27,838||23,038|
|Depreciation and amortization||99,668||105,600|
|Other operating income – net||2,746||4,300|
|Interest income on Due from Clear Channel||16,089||10,518|
|Equity in earnings (loss) of nonconsolidated affiliates||(157||)||673|
|Other expense – net||(1,631||)||(277||)|
|Income before income taxes||8,734||56,572|
|Income tax expense||(8,082||)||(22,360||)|
|Consolidated net income||652||34,212|
|Less: amount attributable to noncontrolling interest||8,768||7,517|
|Net income (loss) attributable to the Company||$||(8,116||)||$||26,695|
|Diluted net income (loss) per share||$||(0.04||)||$||0.07|
|Weighted average shares outstanding – Diluted||356,944||356,658|
|TABLE 2 - Selected Balance Sheet Information|
|Selected balance sheet information for June 30, 2012 and December 31, 2011 was:|
|(In millions)||June 30, 2012||December 31, 2011|
|Cash||$ 491.3||$ 542.7|
|Total Current Assets||$ 1,400.6||$ 1,453.7|
|Net Property, Plant and Equipment||$ 2,214.4||$ 2,246.7|
|Due from Clear Channel Communications||$ 712.3||$ 656.0|
|Total Assets||$ 7,055.8||$ 7,088.2|
|Current Liabilities (excluding current portion of long-term debt)||$ 707.7||$ 697.2|
|Long-Term Debt (including current portion of long-term debt)||$ 4,742.2||$ 2,545.9|
|Shareholders’ Equity||$ 522.4||$ 2,740.2|
|TABLE 3 - Total Debt|
|At June 30, 2012 and December 31, 2011, Clear Channel Outdoor Holdings had net debt of:|
|(In millions)||June 30, 2012||December 31, 2011|
|Clear Channel Worldwide Holdings Senior Notes:|
|9.25% Series A Senior Notes Due 2017||$ 500.0||$ 500.0|
|9.25% Series B Senior Notes Due 2017||2,000.0||2,000.0|
|Clear Channel Worldwide Holdings Senior Subordinated Notes:|
|7.625% Series A Senior Subordinated Notes Due 2020||275.0||—|
|7.625% Series B Senior Subordinated Notes Due 2020||1,925.0||—|
|Net Debt||$ 4,250.9||$ 2,003.2|
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV