Clear Channel reports $3.7 billion quarterly loss

[jeffdfw]

This doesn't sound like happy news...

http://dallas.bizjournals.com/dallas/stories/2009/08/10/daily17.html

 

[little1]

It's not like they really LOST 4 billion dollars.

That led to the company recording a non-cash asset impairment charge of $4 billion and, ultimately, the quarterly net loss of $3.7 billion.

They wrote down "goodwill and its indefinite-lived intangible assets" to the tune of 4 billion bucks, not 4 billion in cold hard cash.

Cause when it comes to cold hard cash-

reported a net loss of $3.7 billion on $1.4 billion in revenue for the second quarter.

That compares with net income of $282.3 million on $1.8 billion in revenue for the same period a year ago. Revenue was down 21 percent between the two quarters.

They were only down about half a BILLION dollars.

(and can somebody do the math for me? If you lose 400 million dollars, and have 1000 radio stations, how much is each station losing on average? Is that 400,000 per station? in one quarter. And you guys wonder why radio and TV stations are cutting high priced talent- but yeah, you're right, it's not because of an awful economic enviorment, it's all because of the Telecom act of 1996)

 

[Lancer]

Better bump those board ops back to 7 an hour, that will solve everything

 

[oldmanradio]

It's not like they really LOST 4 billion dollars.

That led to the company recording a non-cash asset impairment charge of $4 billion and, ultimately, the quarterly net loss of $3.7 billion.

They wrote down "goodwill and its indefinite-lived intangible assets" to the tune of 4 billion bucks, not 4 billion in cold hard cash.

Cause when it comes to cold hard cash-

reported a net loss of $3.7 billion on $1.4 billion in revenue for the second quarter.

That compares with net income of $282.3 million on $1.8 billion in revenue for the same period a year ago. Revenue was down 21 percent between the two quarters.

They were only down about half a BILLION dollars.

(and can somebody do the math for me? If you lose 400 million dollars, and have 1000 radio stations, how much is each station losing on average? Is that 400,000 per station? in one quarter. And you guys wonder why radio and TV stations are cutting high priced talent- but yeah, you're right, it's not because of an awful economic enviorment, it's all because of the Telecom act of 1996)

Yes, $400,000 per station.

Personally, I think it's both the economy and the 1996 Telecommunications Act.

By the way, Bill Clinton has admitted for some time that he made a mistake in signing the bill.

Tony
Tony Lyndell Williams

 

[grantchester]

A net loss on 3.7 billion, after a 4 billion dollar writedown? That would mean an actual profit of 300 million, after a one-time charge off.

 

[Goat Rodeo Cowboy]

It's not like they really LOST 4 billion dollars.

They were only down about half a BILLION dollars.

(and can somebody do the math for me? If you lose 400 million dollars, and have 1000 radio stations, how much is each station losing on average? Is that 400,000 per station? in one quarter.

You lost me somewhere. We were talking about 4 BILLION... and then at the end from out of the blue you bring up 400 million. What does the 400 million represent?

If they lost 4 BILLION... then that would be FOUR MILLION per station.

Before we shrug our shoulders and say, well, it wasn't REAL money, just just wrote off some kind of intangible values. What is missing from this conversation is CASH FLOW. If someone would come up with the Cash Flow for the year and they bump that up against the note payment due that might be a spectacular figure. Figure that one per station.

 

[little1]

Last years rev was 1.8. this years was 1.4, ergo 400Mil difference.

And this is SO not my area (finance hurts my head) but Grant bring sup a good point, looks like they made 300 mil on 1.4B in rev, versus 282m on 1.8B last year.

Less is more? More like they made more net revenue with less billing. And you know how that happens? Cost cutting.

 

[grantchester]

Yum Yum, but this seed corn does taste good....

 

[thunderradio]

Little1 is great at spinning, Clear channel is losing cash.They cut and watered down the stations so it has lost its appeal to tune it . Its like pouring vinegar into the child's milk,they won't drink it. The listener won't tune in like they used to. Time to cut the beancounters and re examine the AE's there RJ. If you have a lousy product it won't sell. radio is a lousy buy thanks to a bunch of stupid decisions in programming.

 

[scrtr84]

Little1 is great at spinning, Clear channel is losing cash.They cut and watered down the stations so it has lost its appeal to tune it . Its like pouring vinegar into the child's milk,they won't drink it. The listener won't tune in like they used to. Time to cut the beancounters and re examine the AE's there RJ. If you have a lousy product it won't sell. radio is a lousy buy thanks to a bunch of stupid decisions in programming.

AGREED!

 

[little1]

What spinning? Do I say that cost cutting is good? Certainly not. Just pointing out that cost cutting is most likely how they got to that point.
Grant is repeating(intentionally or not) a point I made in another thread- they're eating the seed corn- they're cutting their own throats by putting out a product that "seems" less interesting.

And I say seems, because it's going to take a number of trends, or a couple of books to see if what we think it is (lousy radio) is the same thing felt by the listener.

In other words, does the listener even notice all these stations voice tracking middays and nights (and some even pm drive) or do they just not care?

If they care, and it costs a station listeners, obviously it's a bad move.

But if they don't even notice the change, well, let's just say that we may be MUCH more sensitive to certain things than the average listener.

For example, KJKK is something like 6 or 8th 25-54. With absolutely no jocks. Maybe, just maybe, listeners are tuning in for the music and not the jock chatter. So no live jock on XXXX station? or voicetracking middays from san diego? Maybe it just doesn't make a difference. We'll see...

 

[ropertex]

These writedowns are very real losses, representing that the stations acquired were overpaid for and/or worth much less that they paid for them.

The company stock is trading for $1.25 per share, but the book value of the company is negative $46 per share.

That's right folks...call your broker and order 1,000 shares for $1,250 and you just bought $46,000 in loss. Lucky the
individual stockholders won't be responsible for that loss...that privilege goes to the station owners who sold their property
to CC in exchange for stock and those who loaned money to CC.

When they start postponing or missing their debt payments, bankruptcy will be imminent.

 

[DFW_Radio_2000]

Wonder how many more layoffs we will see.

Better yet, this pretty much kills any shot Russ MIGHT have had going back to the Eagle...If they can't afford to pay board ops more than the Fry Guy at McDonalds, they sure as hell can't afford his (demanding) salary.