Clear Channel Reports Year-End and Fourth Quarter 2002 Results.Entertainment Editors/Business Editors SAN ANTONIO--(BUSINESS WIRE)--Feb. 25, 2003 Clear Channel Communications Not to be confused with clear channel radio stations, which are AM radio stations with certain technical parameters. Clear Channel Communications (NYSE: CCU) is a media conglomerate company based in the United States. , Inc. (NYSE NYSE See: New York Stock Exchange : CCU CCU abbr. 1. coronary care unit 2. critical care unit CCU critical care unit. CCU Critical care unit, see there ) -- Fourth Quarter - Reported Revenues Increase 19% to $2.2 Billion, EBITDA As Adjusted increases 68% to $579 Million and Earnings per Diluted Share of $0.30 -- Full Year - Reported Revenues Increase 6% to $8.4 Billion, EBITDA As Adjusted increases 14% to $2.2 Billion and Earnings per Diluted Share, before cumulative effect of a change in accounting principle, of $1.18, an increase of 188% (A) Statements listed above assume the adoption of FAS 142 occurred at the beginning of 2001 Clear Channel Communications, Inc. (NYSE: CCU) today reported results for its fourth quarter and full year ended December December: see month. 31, 2002. The Company's reported revenues of $2.21 billion for the fourth quarter increased 19 percent over 2001 revenues of $1.86 billion. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, quarterly revenues grew to $2.17 billion or an increase of 13 percent when compared with last year's revenues of $1.93 billion. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become As Adjusted (defined as revenue less divisional operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and corporate expenses and referred to as EBITDA - see reconciliation to operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. on page 4) for the quarter increased 68 percent over 2001, to $579 million from $345 million. Pro forma EBITDA increased 63 percent to $574 million from $352 million for the fourth quarter of 2001. By presenting EBITDA, pro forma revenues and pro forma EBITDA, Clear Channel intends to provide investors a better understanding of the core operating results and underlying trends to measure past performance as well as prospects for the future. Clear Channel evaluates operating performance based on several measures, including EBITDA, as Clear Channel believes it is an important measure of the operational strength of its businesses. Clear Channel reported net earnings for the fourth quarter of $184 million, or $0.30 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. This compares to a net loss of $366 million or a net loss of $0.61 per diluted share for the fourth quarter 2001. Assuming the adoption of FAS 142 "Goodwill and Other Intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. " had occurred at the beginning of 2001, the Company would have reported a net loss of $691 thousand or $0.00 per diluted share for the fourth quarter of 2001. For the full year, the Company reported revenues of $8.42 billion, an increase of 6 percent when compared to revenues of $7.97 billion for the same period in 2001. On a pro forma basis, 2002 revenues grew 2 percent to $8.35 billion compared with revenues of $8.21 billion in 2001. EBITDA for 2002 increased 14 percent over 2001, to $2.19 billion from $1.92 billion. Pro forma EBITDA increased 12 percent to $2.18 billion from $1.95 billion for 2001. The Company reported net earnings, before cumulative effect of a change in accounting principle, of $725 million, or $1.18 per diluted share for 2002. This compares to a net loss of $1.14 billion or a net loss of $1.93 per diluted share in 2001. Assuming the adoption of FAS 142 "Goodwill and Other Intangibles" had occurred at the beginning of 2001, net earnings would have been $249 million or $0.41 per diluted share for 2001, representing an increase of 188 percent on a per share basis. The Company's 2002 net earnings includes approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $49.1 million of pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gains, $0.05 per share after tax, related to the sale of a television license, extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. , sale of a marketable security marketable security A security that may be resold by one investor to another. Most securities are marketable; they develop secondary markets for trading. Also called negotiable security. , sale of other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. and a litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement. Excluding those gains, net earnings per share would have been $1.13. For 2002, cash flow from operating activities was $1.75 billion, cash flow used in investing activities was $627 million and cash flow used in financing activities was $1.11 billion for a net increase in cash of $15 million. Free cash flow (defined as EBITDA less interest expense, adjusted current taxes and non-revenue producing capital expenditures - see reconciliation of cash flow from operating activities to free cash flow on page 5) increased 54 percent to $1.25 billion or $1.99 per diluted share, compared to $812 million or $1.34 per diluted share for 2001. Clear Channel believes free cash flow is an important measure of the financial strength of its businesses. By presenting free cash flow, Clear Channel intends to provide investors a better understanding of the Company's ability to pay down debt, invest in its businesses and provide a return to shareholders. Lowry Mays Lester Lowry Mays (b. 24 July 1935) is the founder and current chairman of Clear Channel Communications. Early Years Lester Lowry Mays was born on July 24, 1935 in Harris County, Texas to Lester T. Mays and Mary Virginia Lowry. , Chairman and Chief Executive Officer of Clear Channel said, "I am very proud of the financial results that we delivered to our shareholders this year, despite a challenging industry and economic environment. We are also proud of the value we have created not just for our investors but for our listeners and advertisers/customers over the past thirty years. We could not have achieved that success, and created that value, if we were not acutely sensitive to the needs of the listeners and communities we serve, and if we did not do a quality job of meeting those needs year in and year out." Mr. Mays added, "Clear Channel was founded on integrity and strong values 30 years ago and those same values guide us today. We are determined to deliver superior value to our customers, patrons and listeners. We believe that operational and financial excellence and outstanding service to our advertisers, customers and communities are the standards by which we should be judged, and we encourage and nourish nour·ish v. To provide with food or other substances necessary for sustaining life and growth. those core values." Mr. Mark Mays Mark Mays is the president and CEO of Clear Channel Communications, Inc., a global media and entertainment company based in San Antonio, Texas, USA. Mays took over as president and CEO in October 2004, after serving the company in other roles. Mays holds a B.A. , President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. said, "One of Clear Channel's biggest strengths has always been our ability to develop an outstanding team. We have a talented, deep, dedicated group of people who guide each of our businesses in the local markets. We are very proud of the many individual employees in each of our individual markets who work hard to build their businesses. Their efforts in tailoring the vast resources of Clear Channel to best serve the specific needs of their local marketplaces is the key to our success. Our success is evidence of their skill, dedication, commitment and determination as they fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. their commitment to their communities. We are very proud of the results. We are very proud of the Clear Channel family; they work hard every day to deliver quality to the customers, consumers and communities we serve." Segment Operating Results RADIO: For the fourth quarter of 2002, revenues increased 10 percent to $979 million and EBITDA increased 43 percent to $428 million over the same period in 2001. On a pro forma basis, revenues for the fourth quarter of 2002 increased 9 percent and EBITDA increased 42 percent when compared to the fourth quarter of 2001. For the full year of 2002, Clear Channel Radio revenues increased 8 percent to $3.72 billion and EBITDA increased 18 percent to $1.59 billion, when compared to the same period in 2001. On a pro forma basis, revenues for the full year 2002 increased 6 percent and EBITDA increased 17 percent when compared to 2001. OUTDOOR: For the fourth quarter of 2002, revenues increased 17 percent and EBITDA increased 44 percent over the same period in 2001. On a pro forma basis, revenues for the fourth quarter of 2002 increased 5 percent and EBITDA increased 31 percent when compared to the fourth quarter of 2001. For the full year of 2002, Clear Channel Outdoor revenues increased 6 percent to $1.86 billion and EBITDA decreased 4 percent to $506 million, when compared to the same period in 2001. On a pro forma basis, revenues for the full year 2002 decreased 3 percent and EBITDA decreased 10 percent when compared to 2001. ENTERTAINMENT: For the fourth quarter of 2002, revenues increased 28 percent to $562 million and EBITDA increased from a negative $18 million in 2001 to a positive $12 million in 2002. On a pro forma basis, revenues for the fourth quarter of 2002 increased 26 percent and EBITDA increased from a negative $21 million in 2001 to a positive $11 million in 2002. For the full year of 2002, Clear Channel Entertainment revenues declined 1 percent to $2.45 billion and EBITDA increased 5 percent to $158 million, when compared to the same period in 2001. On a pro forma basis, revenues for the full year 2002 decreased 4 percent and EBITDA increased 2 percent when compared to 2001.
Operating Results
(in $000s)
Below are the consolidated reported and pro forma results for the
fourth quarter of 2002 versus 2001.
Revenue 4th Quarter
--------------------------------------------------------------
Reported Pro forma (a)
--------------------------------------------------------------
2002 2001 % Change 2002 2001 % Change
----------------------------- -----------------------------
Radio $979,015 $890,625 9.9% $979,015 $902,601 8.5%
Outdoor 538,299 458,965 17.3% 512,871 488,609 5.0%
Enter-
tainment 562,499 439,409 28.0% 549,936 437,029 25.8%
Other 166,280 109,064 52.5% 166,280 135,574 22.6%
Elimina-
tions (36,360) (35,917) 1.2% (36,360) (35,917) 1.2%
---------------------- ----------------------
Consoli-
dated $2,209,733 $1,862,146 18.7% $2,171,742 $1,927,896 12.6%
EBITDA 4th Quarter
--------------------------------------------------------
Reported Pro forma (a)
--------------------------------------------------------
2002 2001 % Change 2002 2001 % Change
---------------------------- --------------------------
Radio $428,201 $299,130 43.2% $428,201 $300,863 42.3%
Outdoor 155,001 107,723 43.9% 151,243 115,088 31.4%
Entertain-
ment 12,209 (18,307) NM 11,106 (21,114) NM
Other 37,310 2,758 1,252.8% 37,310 6,921 439.1%
Corporate (53,813) (46,602) 15.5% (53,813) (49,472) 8.8%
------------------ ------------------
Consoli-
dated $578,908 $344,702 67.9% $574,047 $352,286 62.9%
(a) Includes adjustments to the prior period (2001) for all
acquisitions for the same time frame as actually owned in the
current period (2002). The 2002 pro forma include an adjustment
for foreign exchange to present results in 2001 constant dollars.
Divestitures are excluded from both 2001 and 2002.
(NM) Not meaningful
Below are the consolidated reported and pro forma results for the full
year of 2002 versus 2001.
Revenue Full Year
------------------------------------------------------------
Reported Pro forma (b)
------------------------------------------------------------
2002 2001 % Change 2002 2001 % Change
----------------------------- -----------------------------
Radio $3,717,243 $3,455,553 7.6% $3,717,243 $3,497,376 6.3%
Outdoor 1,859,643 1,748,031 6.4% 1,814,546 1,860,266 (2.5%)
Entertain-
ment 2,447,302 2,477,640 (1.2%) 2,418,971 2,511,146 (3.7%)
Other 528,374 423,651 24.7% 528,374 480,752 9.9%
Elimina-
tions (131,507) (134,872) (2.5%) (131,507) (134,872) (2.5%)
---------------------- ----------------------
Consoli-
dated $8,421,055 $7,970,003 5.7% $8,347,627 $8,214,668 1.6%
EBITDA Full Year
----------------------------------------------------------------
Reported Pro forma (b)
----------------------------------------------------------------
% %
2002 2001 Change 2002 2001 Change
----------------------------- ------------------------------
Radio $1,591,104 $1,350,834 17.8% $1,591,104 $1,358,137 17.2%
Outdoor 505,551 527,350 (4.1%) 499,229 555,054 (10.1%)
Entertain-
ment 157,648 150,531 4.7% 153,984 151,127 1.9%
Other 113,991 74,582 52.8% 113,991 77,514 47.1%
Corporate (176,370) (187,434) (5.9%) (176,370) (193,607) (8.9%)
---------------------- ----------------------
Consoli-
dated $2,191,924 $1,915,863 14.4% $2,181,938 $1,948,225 12.0%
(b) Includes adjustments to the prior period (2001) for all
acquisitions for the same time frame as actually owned in the
current period (2002). The 2002 pro forma include an adjustment
for foreign exchange to present results in 2001 constant dollars.
Divestitures are excluded from both 2001 and 2002.
Consolidated
Reconciliation of EBITDA to Operating Income
(in $000s) Three Months Ended Full Year
December 31
-------------------- -----------------------
2002 2001 2002 2001
--------- ---------- ----------- -----------
EBITDA $578,908 $344,702 $2,191,924 $1,915,863
Less:
Non-cash compensation
expense 1,217 2,146 5,436 17,077
Depreciation and
amortization 171,584 651,108 620,766 2,562,480
--------- ---------- ----------- -----------
Operating income $406,107 ($308,552) $1,565,722 ($663,694)
Free Cash Flow
(in $000s, except per share data)
Three Months Ended Full Year
December 31
----------------------- -----------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
EBITDA $578,908 $344,702 $2,191,924 $1,915,863
Interest Expense (106,134) (131,394) (432,786) (560,077)
Current Tax Benefit
(Expense) (c) (70,024) 92,224 (205,216) (125,658)
Non-Revenue Producing
Capital Expenditures (129,211) (141,700) (305,731) (417,900)
----------- ----------- ----------- -----------
Total Free Cash Flow $273,539 $163,832 $1,248,191 $812,228
Total Free Cash Flow
Per Share $0.43 $0.27 $1.99 $1.34
Weighted-Average
Shares Outstanding
(d) 629,294 602,546 627,440 605,439
(c) Current tax benefit (expense) reflects adjustments for non-routine
deferred tax items of ($151,960) and ($56,073) for the fourth
quarter and full year of 2002, and ($68,295) for both the fourth
quarter and full year of 2001, respectively.
(d) The 2001 amounts include an additional 4,733 shares and 13,474
shares for the three months and twelve months ended December 31,
2001, used to calculate both adjusted earnings per share giving
effect to FAS 142 and free cash flow per share.
Reconciliation of Cash Flow From Operating Activities to
Free Cash Flow
(in $000s) Three Months Ended Full Year
December 31
--------------------- ----------------------
2002 2001 2002 2001
----------- --------- ----------- ----------
Net cash provided by
operating activities $493,864 $255,454 $1,747,694 $609,587
Non-Routine Deferred Tax
Items (151,960) (68,295) (56,073) (68,295)
Changes in Operating
Assets and Liabilities 52,403 128,033 (129,879) 696,190
Non-Revenue Producing
Capital Expenditures (129,211) (141,700) (305,731) (417,900)
Other 8,443 (9,660) (7,820) (7,354)
----------- --------- ----------- ----------
Free Cash Flow $273,539 $163,832 $1,248,191 $812,228
Selected Balance Sheet Information
(in $000s)
December 31, December 31,
2002 2001
------------ ------------
Cash and Cash Equivalents $170,086 $154,744
Total Current Assets $2,123,495 $1,941,299
Net Property, Plant and Equipment $4,242,812 $3,956,749
Total Assets $27,672,153 $47,603,142
Current Liabilities (excluding current
portion of long-term debt) $1,614,107 $1,444,636
Long-Term Debt (including current portion
of long-term debt) $8,778,622 $9,482,934
Shareholders' Equity $14,210,092 $29,736,063
Capital Expenditures
(in $000s)
Capital expenditures for the fourth quarter and full year 2002 were:
Three Months Ended Full Year Ended
December 31 December 31
--------------------- ---------------
Recurring $38,295 $116,315
Non-recurring projects 90,916 189,416
Revenue producing 80,904 242,914
--------------------- ---------------
Total capital expenditures $210,115 $548,645
The Company defines recurring capital expenditures as those
expenditures that are required each year. Non-recurring projects are
expenditures arising primarily from the integration of newly acquired
entities. Revenue producing is discretionary capital investment for
new revenue streams.
Liquidity and Financial Position
At December 31, 2002, Clear Channel had long-term debt of:
(In $ Millions)
Bank Credit Facilities $2,152.3
Public Notes 5,655.9
Convertible Notes 769.7
Other Debt 200.7
------------------
Total $8,778.6
Leverage, defined as debt(e), net of cash, divided by the trailing
12-month pro forma EBITDA(f), was 3.9x at December 31, 2002.
(e) As defined by Clear Channel's credit facilities, debt is long-term
debt of $8,778.6 plus letters of credit and guarantees of third
party debt of $241.3 million; plus deferred purchase consideration
of $34.2 million included in other long-term liabilities; less
fair value of interest rate swaps of $119.8 million; and, less
purchase accounting premiums of $86.7 million.
(f) As defined by Clear Channel's credit facilities, pro forma EBITDA
is the trailing twelve-month EBITDA adjusted to include EBITDA of
any assets acquired in the trailing twelve-month period.
In January January: see month. 2003, Clear Channel issued $300 million of 4 5/8% Senior Notes due 2008 and $500 million of 5 3/4% Senior Notes due 2013. The proceeds of the issuance were used to pay down the Company's bank credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities and to finance the redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. of AMFM AMFM Association of Marriage and Family Ministries AMFM Automated Mapping Facilities Management AMFM Association des Modélistes Ferroviaires de Montréal (French: Montreal Railroad Modelers Association) Operating, Inc.'s 8.125% Senior Subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. Notes due 2007 and 8.75% Senior Subordinated Notes due 2007. The AMFM notes were redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. pursuant to call provisions in the indentures. Clear Channel has three domestic bank credit facilities with $2.56 billion available at February February: see month. 25, 2003. The Company currently has approximately $1.25 billion of public debt maturing in 2003 in addition to other indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. , including notes and convertible notes, maturing in later years. The Company intends to utilize the existing capacity under its bank facilities and other available funds to redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. or repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. any or all of such debt through open market purchases, privately negotiated transactions, or other means. Guidance The Company believes that, based on the current economic and advertising environment, 1st Quarter 2003 EBITDA will be in the range of $370-390 million. Conference Call Our year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. and 4th quarter 2002 earnings conference call will be held today at 9:00 a.m. Eastern Time. The dial-in number is 801/303-7416 and a pass code is not required. Please call 10 minutes prior to the beginning of the call to ensure that you are connected before the start of the presentation. The teleconference will also be available via a live audio cast on the Company's website, located at http://www.clearchannel.com. A replay of the call will be available for 72 hours after the conference call. The replay number is 402-220-1490 and the pass code 1026. The audio cast will also be archived on the Company's website and will be available beginning 24 hours after the call for a period of one week. About Clear Channel Worldwide Visit our website at http://www.clearchannel.com. Clear Channel Worldwide, headquartered in San Antonio, Texas “San Antonio” redirects here. For other uses, see San Antonio (disambiguation). San Antonio is the second most populous city in Texas, the third most populous metropolitan area in Texas, and is the seventh most populous city in the United States. As of the 2006 U.S. , is a global leader in the out-of-home advertising Out-of-home advertising (also referred to as OOH) is essentially all type of advertising that reaches the consumer while he or she is outside the home. This is in contrast to broadcast, print, or internet advertising, which may be delivered to viewers out-of-home (e.g. and entertainment industries with radio and television stations, outdoor advertising displays, and live entertainment productions and venues throughout the US and in 65 countries around the world. The numbers contained within this release are unaudited. Certain statements in this release constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 the Company to be materially different from any future results, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. The words or phrases "guidance," "expect," "anticipate," "estimates" and "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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or are forward-looking statements. Various risks that could cause future results to differ from those expressed by the forward-looking statements included in this release include, but are not limited to: changes in economic conditions in the U.S. and in other countries in which Clear Channel currently does business (both general and relative to the advertising and entertainment industries); fluctuations in interest rates; changes in industry conditions; changes in operating performance; shifts in population and other demographics The attributes of people in a particular geographic area. Used for marketing purposes, population, ethnic origins, religion, spoken language, income and age range are examples of demographic data. ; changes in the level of competition for advertising dollars; fluctuations in operating costs operating costs npl → gastos mpl operacionales ; technological changes and innovations; changes in labor conditions; changes in governmental regulations and policies and actions of regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. bodies; fluctuations in exchange rates and currency values; changes in tax rates; changes in capital expenditure requirements and access to capital markets. Other key risks are described in the Clear Channel Communications' reports filed with the U.S. Securities and Exchange Commission. Except as otherwise stated in this news announcement, Clear Channel Communications does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.
FINANCIAL HIGHLIGHTS
Clear Channel Communications, Inc. and Subsidiaries
Unaudited
(In thousands of dollars, except per share data)
Three months ended Twelve months ended
December 31, December 31,
---------------------------- ----------------------------
% %
2002 2001 Change 2002 2001 Change
---------------------------- ----------------------------
Revenue $2,209,733 $1,862,146 19% $8,421,055 $7,970,003 6%
Divisional
operating
expenses 1,577,012 1,470,842 6,052,761 5,866,706
---------------------- -----------------------
Operating
cash flow 632,721 391,304 62% 2,368,294 2,103,297 13%
Corporate
expenses 53,813 46,602 176,370 187,434
---------------------- -----------------------
EBITDA as
adjusted
(1) 578,908 344,702 68% 2,191,924 1,915,863 14%
Non-cash
compens-
ation
expense 1,217 2,146 5,436 17,077
Depreci-
ation and
amorti-
zation 171,584 651,108 620,766 2,562,480
---------------------- -----------------------
Operating
Income 406,107 (308,552) 1,565,722 (663,694)
Interest
expense 106,134 131,394 432,786 560,077
Gain (loss)
on sale of
assets
related to
mergers - (156,316) 3,991 (213,706)
Gain (loss)
on
marketable
securities 4,012 (3,692) (3,096) 25,820
Equity in
earnings
(loss) of
nonconsoli-
dated
affiliates 10,309 (1,226) 26,928 10,393
Other income
(expense) -
net (5,145) 171,316 57,430 152,267
---------------------- -----------------------
Income (loss)
before
income taxes
and
cumulative
effect of a
change in
accounting
principle 309,149 (429,864) 1,218,189 (1,248,997)
Income tax benefit (expense):
Current 81,936 160,519 (149,143) (57,363)
Deferred (207,141) (96,254) (344,223) 162,334
---------------------- -----------------------
Income before
cumulative
effect of a
change in
accounting
principle
(FAS 142) $183,944 ($365,599) $724,823 ($1,144,026)
====================== =======================
Income before cumulative effect of a change in accounting principle
per share:
Basic: $0.30 ($0.61) $1.20 ($1.93)
Diluted: $0.30 ($0.61) $1.18 ($1.93)
---------------------------------------------------------------------
Net income per share adjusted for adoption of FAS 142 (2):
Basic $0.30 $0.00 N/A $1.20 $0.42 186%
Diluted $0.30 $0.00 N/A $1.18 $0.41 188%
----------------------------------------------------------------------
----------------------------------------------------------------------
Free cash
flow (3) $273,539 $163,832 67% $1,248,191 $812,228 54%
Free cash
flow per
share $0.43 $0.27 59% $1.99 $1.34 49%
----------------------------------------------------------------------
----------------------------------------------------------------------
Weighted
Average
Shares Out-
standing -
Diluted (4) 629,294 597,813 627,440 591,965
----------------------------------------------------------------------
(1) Defined as cash flow from operations less corporate expenses.
(2) Adjusted to present the impact of FAS 142 on net income per share
as if FAS 142 had been in effect for the three months and the year
ended December 31, 2001.
(3) Defined as EBITDA as adjusted less interest expense, tax expense
and non-revenue producing capital expenditures.
(4) The 2001 amounts do not include an additional 4,733 shares and
13,474 shares for the three months and the year ended December 31,
2001 used to calculate both adjusted earnings per share as
required by FAS 142 and free cash flow per share.
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