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CLEAR CHANNEL CHA-CHING
AIN’T CHUMP CHANGE

Second-Quarter Results Pack Numbers As Big As All Texas
You know how they roll in the Lone Star State. Big, honey. BIG.

And so it comes as no surprise that San Antonio’s Clear Channel Communications (NYSE: CCU), the country’s largest radio operator and concert promoter, deals in some big-ass numbers when reporting its second quarter results.

Of course, big revenue doesn’t necessarily mean big profit—especially in these days of rampant corporate accounting fraud and other hijinks—but the Texas Titan appears to be holding its own: For Q2 2002, the company had revenue of $2.17 billion, down slightly compared to $2.18 billion for the same period in 2001. EBITDA was $627 million, up from $611 a year earlier.

Net earnings were $238 million, or $0.39 per diluted share, compared to a net loss of $237 million ($0.40 per diluted share) in Q2 2001.

The earnings reportedly include $21 million of pre-tax gains, or $0.02 per share after taxes, related to the sale of some assets and a litigation settlement. Excluding those gains, net earnings would have been $0.37 per share.

In the company’s radio division, revenues were $991 million, up 5 percent over the same period in 2001. EBITDA was $441 million, an increase of 9 percent.

Clear Channel Entertainment, the company’s concert division, reported revenue of $619 million, an 11 percent decline compared to year-ago figures. EBITDA declined 8 percent to $52 million. Summer tours upcoming include the Rolling Stones, Toby Keith, Willie Nelson, Marc Anthony, Cher, Ozzfest 2002 and The Allman Brothers Band.

“It’s my hope and desire that accelerating this release will put the recent innuendos to rest so that we can get them behind us,” said Clear Channel Chairman/CEO Lowry Mays. “We are doing what’s most important for this Company, focusing on the fundamentals of our business and operating (as we have done historically) to create shareholder value. Further, despite the recent performance of our stock and the overall volatility of the stock market, we believe the fundamentals of our business remain sound.”

Despite the positive results, Clear Channel's stock continued to take a beating early Wednesday, opening at 22.75, down 2.25 from yesterday's bummer close of 25.00.

“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 Clear Channel President/COO Mark Mays.

Dang, when folks use fancy words like “unduplicatable,” we’re pretty sure they’re doing some real important stuff—and who can’t get behind that? In the words of Mays Family pal President Dubya, “Make the pie higher.”

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