SAN ANTONIO – For the quarter ended March 31, Clear Channel Communications Inc. (NYSE: CCU) today reported a 6-percent profit increase to $102.2 million compared with the first quarter of 2006. Earnings per diluted share increased 11 percent to 21 cents from the year-ago 19 cents per share.
First-quarter revenue increased 8 percent to $1.6 billion, although excluding gains caused by favorable foreign exchange rates, the increase was 6 percent.
“We are very pleased with our overall performance,” said Clear Channel CEO Mark P. Mays.
The company noted that its agreement to be acquired by a team of private-equity groups led by Bain Capital Partners LLC and Thomas H. Lee Partners LP was amended April 18, increasing the price to $39 per share of common stock. The transaction – still subject to shareholder approval, federal anti-trust clearance, Federal Communications Commission approval and other customary conditions – goes before shareholders at a special meeting May 8.
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“We continue to make progress on the previously announced divestitures of our Television Group and certain of our radio stations,” said Randall Mays, Clear Channel’s president and chief financial officer.
Agreements to sell 161 radio stations in 34 markets for a total of about $331 million are expected to close in the second half of 2007, the company said.
The separate sale of Clear Channel’s television group for $1.2 billion to Providence Equity Partners Inc. in a deal inked April 20 is expected to close in the fourth quarter. Net proceeds are estimated at $1.1 billion after taxes.
“As mentioned above, we have entered into definitive agreements that we anticipate would net the company approximately $1.4 billion in proceeds after taxes and customary transaction costs,” Mays said. The company still is seeking buyers for another 287 radio stations in 54 markets.
Clear Channel Communications Inc. (NYSE: CCU) is a global media and entertainment company whose properties include local radio stations WHJY-FM, WHJJ-FM, WSNE-FM and WHJJ-AM. Additional information is available at www.clearchannel.com.
