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 2012 actual foreign revenues, expenses and OIBDAN at average 2011 foreign exchange rates) allows for comparison of operations independent of foreign exchange rate movements.

As required by the SEC, the Company provides reconciliations below to the most directly comparable amounts reported under GAAP, including (i) OIBDAN for each segment to consolidated operating income (loss); (ii) Revenues excluding foreign exchange effects to revenues; (iii) Expenses excluding foreign exchange effects to expenses; (iv) OIBDAN excluding foreign exchange effects to OIBDAN; (v) Expenses excluding non-cash compensation expenses to expenses; (vi) Corporate expenses excluding non-cash compensation expenses to Corporate expenses; and (vii) OIBDAN to net income (loss).
         

Reconciliation of OIBDAN for each segment to Consolidated Operating Income (Loss)
 

(In thousands)
Operating

income (loss)

Non-cashcompensation expenses
Depreciation

and amortization

Other operating income – net
OIBDAN
 
Three Months Ended June 30, 2012
Americas $ 84,227 $ 1,240 $ 48,567 $ $ 134,034
International 38,642 874 50,710 90,226
Corporate (28,229 ) 40 391 (27,798 )
Other operating income – net   2,746         (2,746 )    
Consolidated $ 97,386   $ 2,154 $ 99,668 $ (2,746 ) $ 196,462  
 
Three Months Ended June 30, 2011
Americas $ 77,850 $ 1,674 $ 50,322 $ $ 129,846
International 47,349 701 55,278 103,328
Corporate (23,038 ) 33 (23,005 )
Other operating income – net   4,300         (4,300 )    
Consolidated $ 106,461   $ 2,408 $ 105,600 $ (4,300 ) $ 210,169  
 
   

Reconciliation of Revenues excluding Effects of Foreign Exchange Rates to Revenues
 
(In thousands) Three Months Ended

June 30,
%
2012   2011 Change
 
Consolidated revenues $ 761,326 $ 789,208 (4 %)
Excluding: Foreign exchange decrease (increase)   38,144  
Revenues excluding effects of foreign exchange $ 799,470 $ 789,208 1 %
 
Americas revenues $ 320,678 $ 318,217 1 %
Excluding: Foreign exchange decrease (increase)   774  
Americas revenues excluding effects of foreign exchange $ 321,452 $ 318,217 1 %
 
International revenues $ 440,648 $ 470,991 (6 %)
Excluding: Foreign exchange decrease (increase)   37,370  
International revenues excluding effects of foreign exchange $ 478,018 $ 470,991 1 %
 
   

Reconciliation of Expenses (Direct Operating and SG&A Expenses) excluding Effects of Foreign Exchange Rates to Expenses
 
(In thousands) Three Months Ended

June 30,
%

2012
 

2011

Change
 
Consolidated expenses $ 539,180 $ 558,409 (3 %)
Excluding: Foreign exchange decrease (increase)   33,938  
Expenses excluding effects of foreign exchange $ 573,118 $ 558,409 3 %
 
Americas expenses $ 187,884 $ 190,045 (1 %)
Excluding: Foreign exchange decrease (increase)   356  
Americas expenses excluding effects of foreign exchange $ 188,240 $ 190,045 (1 %)
 
International expenses $ 351,296 $ 368,364 (5 %)
Excluding: Foreign exchange decrease (increase)   33,582  
International expenses excluding effects of foreign exchange $ 384,878 $ 368,364 4 %
 

Reconciliation of OIBDAN excluding Effects of Foreign Exchange Rates to OIBDAN
 
(In thousands) Three Months Ended

June 30,
%

2012

2011

Change
 
Consolidated OIBDAN $ 196,462 $ 210,169 (7 %)
Excluding: Foreign exchange decrease (increase)   4,206  
OIBDAN excluding effects of foreign exchange $ 200,668 $ 210,169 (5 %)
 
Americas OIBDAN $ 134,034 $ 129,846 3 %
Excluding: Foreign exchange decrease (increase)   418  
Americas OIBDAN excluding effects of foreign exchange $ 134,452 $ 129,846 4 %
 
International OIBDAN $ 90,226 $ 103,328 (13 %)
Excluding: Foreign exchange decrease (increase)   3,788  
International OIBDAN excluding effects of foreign exchange $ 94,014 $ 103,328 (9 %)
 
   

Reconciliation of Expenses (Direct Operating and SG&A Expenses) excluding Non-cash compensation expenses to Expenses
 
(In thousands) Three Months Ended

June 30,
%

2012
 

2011

Change
 
Americas $ 187,884 $ 190,045 (1 %)
Less: Non-cash compensation expenses   (1,240 )   (1,674 )
186,644 188,371 (1 %)
 
International 351,296 368,364 (5 %)
Less: Non-cash compensation expenses   (874 )   (701 )
350,422 367,663 (5 %)
 
Plus: Non-cash compensation expenses   2,114     2,375  
Consolidated divisional operating expenses $ 539,180   $ 558,409   (3 %)
 
   

Reconciliation of Corporate Expenses excluding Non-cash compensation expenses to Corporate Expenses
 
(In thousands) Three Months Ended

June 30,

%
2012   2011 Change
Corporate Expenses $ 27,838   $ 23,038 21 %
Less: Non-cash compensation expenses   (40 )   (33 )
$ 27,798   $ 23,005   21 %
 
 

Reconciliation of OIBDAN to Net Income (Loss)
 
(In thousands) Three Months EndedJune 30,

2012
 

2011
OIBDAN $ 196,462 $ 210,169
Non-cash compensation expense 2,154 2,408
Depreciation and amortization 99,668 105,600
Other operating income – net   2,746     4,300  
Operating income 97,386 106,461
 
Interest expense 102,953 60,803
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  
 

About Clear Channel Outdoor Holdings

Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) is one of the world’s largest outdoor advertising companies, with more than 750,000 displays in over 40 countries across five continents, including 48 of the 50 largest markets in the United States. Clear Channel Outdoor Holdings offers many types of displays across its global platform to meet the advertising needs of its customers. This includes a growing digital platform that now offers over 950 digital billboards across 37 U.S. markets. Clear Channel Outdoor Holdings’ International segment operates in over 30 countries across Asia, Australia, Europe, and Latin America in a wide variety of formats.

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