Clear Channel Communications turned a first-quarter profit, excluding a $17 billion charge related to the elimination of amortization goodwill and certain intangible assets.
The company reported a 4 percent increase in revenues of $1.70 billion, from $1.63 billion, during the same period last year. EBITDA as adjusted (operating
cash flow less corporate expenses) was $370 million compared to $404 million for
the same period in 2001. Before a charge for ending goodwill amortization, CCC reported net earnings of $90 million, or 15 cents a share, compared with a net loss
of $309 million, or 53 cents in the year-earlier quarter. The first quarter includes
about $28.1 million in pre-tax gains, or 3 cents a share after tax, related to the sale
of a television license, extinguishment of long-term debt and the sale of a marketable
security. Excluding those gains, it earned $73 million, or 12 cents before the effect of
an accounting change. It forecast second-quarter EBITDA between $600 million
and $615 million.
Clear Channel Entertainment's first quarter 2002 revenues increased 19 percent
($475.8 million vs. $401.1 million) and EBITDA declined 11 percent when
compared to the same period in 2001 ($15 million vs. $16.8 million). On a pro
forma basis, first quarter 2002 revenues increased 15 percent ($479.9 million vs.
$415.8 million), while EBITDA declined 17 percent when compared to the same
period in 2001 ($15 million vs.$18.1 million).
"Considering the current environment, we are pleased with our first quarter
performance which was better than anticipated," said Lowry Mays, chairman and
CEO. " The Company exceeded the high end of our prior financial guidance. We
firmly believe that this is a good beginning to what should be a very good year for
Clear Channel. This moderate growth is a very good sign that our customers and
consumers have confidence in our products and marketing capabilities. The Clear
Channel family remains committed to its excellence and high standards."
"While we are proud of our unduplicatable collection of media and entertainment
assets, our greatest accomplishment remains our ability to develop the very best
management team in our businesses. Our team, which has both strength and depth,
is committed to our customers and serving their communities," added Mark
Mays, president and COO.