Clear Channel Outdoor Holdings Inc (CCO) 2010 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to the Clear Channel year-end 2010 earnings call. At this time, all lines are in a listen-only mode. (Operator Instructions).

I would also like to remind you that today's conference is being recorded.

I will now turn the conference over to Randy Palmer, head of Investor Relations. Please go ahead, sir.

Thank you, operator, and good afternoon, everyone, and we thank you for joining us for our fourth-quarter and full-year 2010 conference call. Joining me today for the call are Mark Mays, Chief Executive Officer, Tom Casey, Chief Financial Officer, and Brian Coleman, Treasurer.

On today's call, we will provide an overview of the fourth-quarter and full-year financial and operating performances of both CC Media Holdings and Clear Channel Outdoor. Our decision to expand the call to include the CC Media Holdings and Clear Channel Outdoor resulted from the many requests we have received from the investment community and reflects our intention to expand our investor communications in 2011 to include more information on our radio business as well as our combined operations.

As with prior calls, Mark will open up the call and will be followed by Tom. After Tom's comments, we will open up the lines for questions.

Before I begin, I would like to remind everyone that this conference call may include forward-looking statements that involve uncertainties and risk. There can be no assurance that management's expectations, beliefs, and projections will result or be achieved or that actual results will not differ from our expectations. Please see our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission for a discussion of important factors that could impact our actual results.

Pacing data information may be mentioned during this call. For those not familiar with pacing data, it reflects revenues booked at a specific date versus a comparable date in the prior period and may or may not reflect the actual revenue growth at the end of the period. The Company's revenue pacing information includes an adjustment to prior periods to include all acquisitions and exclude all divestitures of both periods presented for comparative purposes. It also includes the effects of foreign exchange movements.

During today's call, we will provide certain performance measures that do not conform to generally accepted accounting principles. We have provided schedules that reconcile these non-GAAP measures with our reported results on a GAAP basis as part of our earnings press release, which can be found on the investor section of our website at ClearChannel.com, ClearChannelOutdoor.com, or CCMediaHoldings.com.

A webcast for this call and the earnings releases that were issued today can be found on the investor section of the Company's website for Clear Channel Outdoor CC Media Holdings and Clear Channel Communications. A replay of this conference call will be available for a period of 30 days. And with that, I will now turn the call over to Mark Mays.

Thank you, Randy. And good afternoon, everyone. Appreciate your getting on this call with short notice.

As Randy mentioned, we have expanded the format of this call to include an overview of our combined results including a summary of both our radio and outdoor businesses. We will also answer questions on both companies following our formal remarks. We hope this will create a greater clarity and understanding of our overall operating financial performance as well as the ongoing outlook for our organization.

During 2010, we executed our strategy and returned both our radio and outdoor operations to growth. For the fourth quarter, our combined revenues increased 8% to $1.6 billion and our OIBDAN improved by 40% to $503 million. For full year, our combined revenues increased 6% to $5.9 billion and our OIBDAN improved by 29% to $1.7 billion.

Our improved results reflect the benefits of the gradual recovery in the global economy; increasing demand from advertisers in many of our markets; greater innovation and creativity across our organization and the products and services we deliver; a more streamlined and focused organizational structure; and a disciplined approach to managing our cost, including the cost savings from our restructuring program.

Most important, the steps we have taken during the past two years to realign our organization to achieve profitable growth have in fact produced measurable results. Our 2010 financial performance shows the fundamentals of both our radio and outdoor businesses have improved considerably.

As the year progressed, we saw consistent improvement in the business environment across the majority of our markets with strength spread across multiple advertising categories across our businesses, with particularly strong demand coming from the political, audio, media, and health care sectors. We were able to capitalize on our brands and the leadership positions of our assets to drive revenue growth and market share while improving our margins.

I would like to congratulate our management team and all of our employees for their commitment and hard work during the past year. Their efforts have clearly paid off and the momentum has continued into 2011.

We believe we have now made the transition from recovery stage to growth. And we are optimistic that the year ahead will also produce tangible returns as we execute our strategy to grow our share of the ad revenues and drive innovation across our combined platforms.

Now let me turn to our radio business will. For the fourth quarter and full year, our radio operations posted revenue growth of 10% and 6%, respectively. It is important to highlight that for both periods we believe our performance exceeded the industry. We benefited from increases in both national and local advertising as well as an increase in average rates per minute, reflecting our strong brands and value proposition, as well as improved economic conditions.

We posted healthy growth across most of our markets with particular strength in our larger markets. Categories that perform particularly well in 2010 included political, auto, food and beverage, and health care.

Turning to the current period, trends remained positive although visibility remains limited. As of the end of last week, overall radio revenue was pacing up approximately 4% for the first quarter as compared to the prior year period.

Finally before I turn to outdoor, as most of you have heard, Bob Pittman joined us as a consultant and as Chairman of our Media and Entertainment platforms. He has also made a personal equity investment in the Company. Bob will be focused on our digital efforts.

We welcome Bob and know that his wealth of knowledge and experience will be of great benefit to our radio team and the further development of our digital offerings. Overall, our radio team is in great shape and focused on the future.

Looking first at our Americas business. Our Outdoor business. And our Americas business in Outdoor. Our revenues for the fourth quarter and full year increased 7% and 4%, respectively. Excluding our disposition of our Taxi Media business in 2009 and foreign exchange, revenues for the fourth quarter and full year rose by 9% and 7%, respectively. We saw revenue growth across most of our inventory in 2010, particularly our digital boards.

Business improve gradually throughout the year and we drove increases in both occupancy and rate across many of our markets as our sales force attracted both new and returning advertisers.

While we had strong performance across many of our markets for both the quarterly period and full year, our larger markets continued to perform better and our national business outpaced our local business. Markets that showed particular strength were our top 10 markets. Billboards, street furniture, airports, and malls all contributed to our growth during the fourth quarter. And as I mentioned our digital displays continue to be a key growth driver.

As of December 31, we had deployed 615 digital displays in 36 US markets, including 158 displays that were rolled out in 2010. As we shared with you during our third-quarter earnings call, we currently expect to deploy approximately 120 digital displays in 2011 which was our goal for 2010. We exceeded that goal in 2010 and hope to meet or exceed that goal once again in 2011.

Finally, the categories that were particularly strong for the fourth quarter and year included banking and financial services, business services, media, restaurants, health care, auto, and entertainment.

Looking ahead during the current quarter, business trends remain positive across the majority of our domestic markets. As of the end of last week Americas Outdoor continues to have strong momentum with revenues pacing up approximately 6% for the first quarter as compared to the prior year period. Now let me turn to our international operations.

Our International Outdoor revenues for the fourth quarter and full year increased 2% and 3%, respectively. Excluding the impact of foreign exchange, International revenues for the fourth quarter and full year rose by 5% and 4%, respectively. Revenue growth at our International business during the fourth quarter and full year was primarily driven by growth from our street furniture across most countries, partially offset by our exit from businesses in Greece and India.

As the year progressed, we continued to see improved demand across a number of countries. Countries that performed well were the UK, China, Australia and New Zealand, Belgium, Sweden, Denmark, Holland, and Turkey. Top advertising categories during the fourth quarter and full year included retail, food and beverage, media entertainment, automotive, and telco.

During the current quarter, our International business is continuing to attract healthy demand from advertisers with street furniture continuing to lead the way. As of the end of last week, International revenues were pacing up approximately 3% for the first quarter as compared to the prior year period.

In regards to the pacing information for both Radio and Outdoor, I want to be clear that this is still very early in the quarter and that this current pacing information may or may not reflect the actual revenue growth at the end of the first quarter.

So to recap our results in 2010, we executed our strategic plan and returned our operations to growth. We drove considerable improvements in the operating fundamentals of both our Radio and Outdoor platforms as we benefited from a recovering global economy, increasing revenues, and a leaner, more focused organizational structure.

Our global asset remain base remains well-positioned to benefit from the ongoing advertising market recovery. We remain focused on driving innovation across our operations, increasing market share, and maintaining a disciplined approach to cost management.

Given the early trends that we are seeing across our business and the operating leverage in our model, we are optimistic that we can generate improved results in the year ahead. And with that, let me turn the call over to Tom.

Thanks, Mark. My comments today will focus on three areas. I will review Clear Channel Media Holdings and Radio results, then review Clear Channel Outdoor results, and finally I will review our capital spending and balance sheet.

As Mark indicated, we posted solid results across our business during the fourth quarter and full year. Our Clear Channel Media Holdings revenues increased 8% to $1.63 billion in the fourth quarter, driven by growth across our businesses from an improved advertising environment. Our revenues would have increased 9% excluding the effect of foreign exchange rates.

The growth in our combined revenues along with cost savings from our restructuring program and lower restructuring expenses led to OIBDAN of $503 million, representing a 40% growth over the fourth quarter of 2009.

For the full year, Clear Channel Media Holdings reported revenues of $5.9 billion, an increase of 6% from the $5.6 billion reported for 2009. Consistent with the fourth quarter, revenue growth occurred across our businesses and was driven by an improved advertising environment. We substantially completed our restructuring program during 2010, resulting in cost savings, lower restructuring expenses, and increased margins. The growth in revenues along with expanded margins resulted in OIBDAN of just under $1.7 billion, an increase of 29% over 2009.

Turning to our Radio operations, during the fourth quarter our Radio revenues increased 10% to $783 million, reflecting gains in both local and national revenues on improved rates. Operating expenses increased 4% during the quarter and OIBDAN rose 21% to $296 million.

For the full year, Radio revenues increased 6% to $2.9 billion, driven primarily by an $80 million increase in national advertising and a $51 million increase in local advertising. Average rates per minute increased during 2010 compared to the same period of 2009 as a result of improved economic conditions.

Overall operating expenses for the full year excluding non-cash compensation decreased $33 million or 2% during 2010 compared to 2009.

Radio OIBDAN for 2010 increased 21% to $1.1 billion from $909 million for 2009. The growth in revenues driven by improved rate along with substantial completed -- substantially completing our restructuring program and related cost savings derived from the above OIBDAN growth.

Turning to our Outdoor business, beginning with the recap of the overall Outdoor Company performance.

Clear Channel Outdoor reported revenues of $793 million in the fourth quarter of 2010, a 4% increase from $762 million reported for the fourth quarter of 2009. And excluding the effect of movements in foreign exchange rates, the revenue increase would have been 5%.

As a result of higher revenues and the impact of cost savings generated by our restructuring program, Clear Channel Outdoor's OIBDAN grew 33% over the fourth quarter of 2009. OIBDAN was $207 million for the fourth quarter of 2010 compared to $156 million for the fourth quarter of 2009.

For 2010, Clear Channel Outdoor's revenues grew 4% to $2.8 billion. This $100 million increase over the $2.7 billion reported for 2009 resulted from an improved advertising environment driven by the strengthening economy and occurred across both the Americas and International Outdoor businesses. The Company substantially completed its restructuring programs during 2010, benefiting from cost reductions and experiencing lower restructuring expenses during 2009.

The growth in revenues, along with expanded margins driven by cost reductions, resulted in OIBDAN growth of 21% over 2009. OIBDAN was $648 million for 2010 compared to $535 million in 2009. Excluding the effects of movements in foreign exchange rate the increase in OIBDAN would've been 20%.

During the fourth quarter, Americas Outdoor revenues increased 7% to $362 million, reflecting growth across products on approved rates and occupancy. Excluding the disposition of our Taxi Media business in 2009, and foreign exchange, fourth-quarter revenues were up 9%. America's operating expenses decreased 1% during the quarter and OIBDAN rose 21% to $145 million.

For the full year, Americas Outdoor revenue increased 4% to just under $1.3 billion as a result of revenue growth across most of our advertising inventory, particularly digital. The increase was driven by increases in both occupancy and rate, partially offsetting the revenue increase with decrease in revenue related to the sale of our Taxi Media business during 2009.

Operating expenses, excluding non-cash compensation, decreased $4 million during 2010 compared to 2009. The decline in operating expenses was due to the disposition of Taxi Media and partially offset by a $26 million increase in variable expenses associated with the increase in revenue.

America's OIBDAN for 2010 was $492 million, an increase of 13% compared to 2009. Excluding the effects of movements in foreign exchange rates, the increase in OIBDAN would have been 12%. The growth in OIBDAN was driven by an overall improvement in business, along with the increased margins compared to 2009.

Turning to our International results, during the fourth quarter, International Outdoor revenues increased 2% to $431 million, reflecting the strength in street furniture growth across various countries. Excluding the effects of foreign exchange, revenues were up 5% for the quarter. Operating expenses during the quarter decreased 10% and OIBDAN surged 82% to $99 million.

For the full year International Outdoor revenue increased 3% to $1.5 billion, primarily as a result of revenue from street furniture across most countries, partially offset by the exit from the businesses in Greece and India. Revenue growth, excluding foreign exchange movements, was 4%.

Operating expenses, excluding non-cash compensation, decreased $52 million during 2010 compared to 2009 primarily as a result of a $20 million decrease in expenses incurred in connection with the Company's restructuring program and a $16 million decline in site lease expenses, primarily from a cost savings issued to the restructuring program.

Led by the Company street furniture business and improved margins across a number of countries, International OIBDAN increased 62% in 2010 to $263 million.

Looking at our total capital spending for the full year, we spent approximately $242 million compared to $224 million in 2009. Much of this spend, $195 million of it, was in the Outdoor business. It included buildout of our digital board footprint in various street furniture and transit contracts, primarily International.

As Mark noted, we closed the year with 615 digital displays in 36 US markets. This includes 59 digital displays that were rolled out during the fourth quarter of 2010, for a total of 158 digital displays that were deployed during 2010.

We had noted earlier in 2010 that we expected capital expenditures to be in the range of $225 million to $275 million for outdoor. So we ended up slightly below that range.

For 2011, CC Media Holdings expects capital expenditures to be in the range $275 million to $325 million, and that about 75% to 80% of the expected spend will be in the Company's Outdoor businesses.

Clear Channel Media Holdings free cash flow, which we define as cash provided by operations which was $582 million less all capital expenditures of $242 million, was approximately $340 million for the full year. This is a significant increase from the negative amount of negative $43 million last year.

As we look at Clear Channel Media Holdings net debt as of 12/31/2010, it stood at $18.7 billion. Clear Channel's leverage as defined under its credit agreement declined significantly as a result of the consolidated EBITDA increases of approximately $200 million.

At December 31, 2010, senior secured leverage was at 6.7 times compared to 7.4 times as of 12/31/2009.

Finally for Clear Channel Outdoor, net -- net debt stood at $1.94 billion and leverage under its indentures stood at 3.5 times as of December 31, 2010.

So to conclude, we are very pleased with our fourth-quarter and full-year performance for 2010 and we are encouraged by the trends we are seeing in the current quarter thus far. As Mark noted, the fundamentals of both our Radio and Outdoor businesses have improved considerably and we are clearly seeing the benefits of the restructuring program we implemented during the past two years.

Given the leadership positions of our assets, the continued economic recovery across our markets, and our focused organization, we believe we are well-positioned to generate improved results in the year ahead.

Before we open it up for questions, I wanted to note that we also issued press releases this afternoon announcing that Clear Channel is pursuing amendments to its senior credit facilities to provide for greater flexibility, and that Clear Channel is launching a related private note offering in support of that effort. Because of SEC restrictions in connection with private offerings, we are not able to comment further or respond to questions regarding those announcements at this time.

However, we would be happy to take your questions regarding the businesses or our 2010 performance.

That ends my prepared remarks. Operator, we can now open it up for questions. Thank you.

(Operator Instructions). Marci Ryvicker with Wells Fargo.

A couple of questions first. The pacing data. Is it choppy month-to-month or consistent? And can you tell us how January ended for both the Americas Outdoor and Radio?

Well, I think we steer away from monthly data points because we don't think it is necessarily consistent. I would tell you that, overall, it is very early in the quarter as we look at it. Historically, we have this call later. So it gives a little bit more solid data point with more weeks behind us. So I would caution you at looking at the pacing data with regard to it just being one point in time.

I can tell you that, overall, the business tone if you will is positive from a couple of perspectives. I think within the Radio sector, there is definitively a positive response to radio in a holistic way of really looking at the audiences, which are not degrading. If you look at the overall radio audience it is consistent and not degrading. If you look at Clear Channel share within that radio audience, our audience is growing within that radio pie.

And then you add on the digital applications and that is even more additive. So I think advertisers are responding to that and starting to differentiate radio from other mass mediums that are declining.

With regard to Outdoor, continue to have very positive conversations with our advertisers. More and more advertisers are looking at the digital applications and the ability to use digital flexibility and innovative creative to really drive their messaging.

So I think as we look at it and the pacing data points that we are seeing, we're positive not only about Q1 but for the entire year of 2011.

Great. I have a quick one just for Tom. Since you transition from recovery to growth, how should we think about expenses at the Outdoor division for Q1 and maybe for the full year?

As you know, we've invested quite a bit of monies into our Outdoor business, both on the capital side as well as the infrastructure in 2010. I would see continued investment going forward. As we said we are going to put additional 120 boards as our target for 2011.

The expenses in Outdoor, I do not see a significant increase in expenses like you did in 2010. Obviously, they will be subject to the level of the revenue, but I would say the investments we made there are paying off and you are seeing that in our performance.

(Operator Instructions). David Miller with Caris & Company.

Good afternoon. A couple of questions. Mark, it says here in the press release you have informed the Company that you are going to step down as CEO on the earlier of the date that your successor joins the Company or March 30, 2011. So if there is no new CEO by March 31, 2011, I guess the question is, are you prepared to go CEO-less for a time before you find the right candidate?

And then I have a follow-up. Thanks.

It's a good question. I think as we think about it certainly our hope that we will have a CEO by March 31. If we don't have a CEO by March 31, then we'll put some interim type of solution in until we have a permanent CEO.

I think as we think about it, we have great leadership within the Company. If you look at the central team, you look at the additions of [Tom Casey], and Rob Walls is a GC and Bill Sand in the HR arena. And if you look at Ron Cooper in the Americas, William Eccleshare in International, and John Hogan and Bob Pittman in Radio, we have a very deep and well talented team. So we should all feel confident that they are going to continue to drive the businesses.

Great. And then a question on Digital, if I may. You know with the emergence of so many of these South Korean suppliers on the digital side, you and particularly Lamar have gained a tremendous amount of buyer power with these suppliers, particularly against Daktronics here in the United States with regard to the deployment of new boards. Could you talk about that a little bit?

And talk about how, just given those dynamics, there's been any sort of change in the margin with regard to your suppliers on the digital side? Thanks.

Yes, I would say that we are definitely seeing a reduction in the total cost of new boards, both on the equipment side but also on our efficiency that we were having in putting up as many boards as we had. So our relationship with suppliers continues to be very good and, in fact, outstanding. And so I can say that continue to partner up and putting out 158 boards was a record for us. So --.

Particularly in the fourth quarter. We put up 59 boards. I mean that was -- as you know, the digital rollout tends to be choppy. But that's a huge success and one that we're --. I know we are really proud of the Outdoor team that posted those numbers because that will obviously provide great growth for us in 2011 as they got those boards up in the fourth quarter.

Todd Morgan with Oppenheimer.

Thank you. A quick question about the cash balances at Clear Channel Outdoor. And I guess, specifically, I wanted to ask about the cash that you hold overseas. If I'm looking at the Q3 Q, you talked about -- about $227 million of cash in non-guarantor subs. I'm assuming that's mostly the International subs if that's fair?

And I guess, can you talk about how much that number may have changed in the fourth quarter? And I guess lastly, what sort of tax issues you might face if you were ever to try and repatriate that cash? Thanks.

We have seen a build up in cash balances of our International subs. Some of that is related to increased working capital requirements. Others related to subsidiaries, joint ventures, partners, partnerships that we don't periodically repatriate in cash. We have to be more selective about when we would repatriate the cash.

We -- with regard to repatriating international cash, though, with our wholly-owned subs we do have interCompany notes in place so we don't have a lot of a lot of tax friction. And we continue to plan in advance to minimize any kind of tax impact.

But I think in summary, we have seen a cash build up we continue to monitor that and hope to -- I hope to minimize that as much as possible. But we try to make sure that those subs have sufficient working capital in place.

Okay. Thanks then.

(Operator Instructions). Jonathan Levine with Jefferies.

I was wondering if you could just tell us how much of the radio revenues were political in the fourth quarter? And then, also, if you could talk a little bit in terms of the cost cutting? When we think about run rates for 2011, are all the numbers fully baked in for the full year of 2010? Or how much more can we expect that you guys will still be able to kind of achieve in 2011?

With regard to expenses, most of our expenses are already in pretty good shape. We are not expecting significant restructuring charges going into 2011. We had a small amount this year, significantly less than the prior year. We do have some additional savings that will come through in 2011, probably about $30 million to $35 million will come through. So we are feeling pretty good about our expenses and don't have a lot of significant restructurings left to do.

With regard to political, obviously political was very strong this quarter. Obviously with the elections (multiple speakers)

And when we say that we we sometimes remember political is very large in Radio. It is de minimis in Outdoor. So it has different effects on different parts of our business. So within the Radio sector, the amount for the quarter, I think, was about [$30 million] (technical difficulties).

And actually for the year was $66 million for the year which, keep in mind, only represents about 2.7% of our total revenues. For the fourth quarter it did represent about 4, 4.5 points of total revenue. So give you an idea of the size of political.

And that is of the overall, revenues of the overall Company or is that Radio?

That is just for Radio.

Just for Radio.

And so again it's a bigger portion of the radio pie and help drive business in the fourth quarter (technical difficulties) Radio, but not necessarily for Americas Outdoor.

Thank you.

(Operator Instructions) Jim Goss with Barrington Research.

Thank you. A couple of questions. One with regard to the International Outdoor. Is -- can you give any statement as to the degree of concentration of your holdings internationally say the top three markets account for two thirds of the revenue base or something of that nature? And to the extent you have backed out of one or two markets, do you think there is any further consolidation that might be in order that might improve the profitability there? And then I have another question.

With France and UK, as we have historically said, count for approximately 40%, just under 40% of our overall business. If you look at the International business again, you have to look at the different countries. And they are obviously different underlying economic drivers in all the countries that we operate in. It is very different in China then say it would be in Western Europe. So it's not surprising that some of the drivers of growth are places like China, Turkey, Australia, New Zealand where some of the economic growth is really tremendous right now.

So with regard to your question about further consolidation and economics, I think there are some countries that there will be more consolidation. There are other countries where it will be difficult to have further consolidation. That would just be dependent on a country-by-country basis.

Okay and separately with digital. I'm wondering if as you are adding new boards around the country, is the demand increase that's -- you are experiencing with advertising taking the pressure off of potential pricing risks as you add that inventory? And have you found that the boards have generally been shared by several different advertisers? Or has there been a lot of a company, GM or something, taking all seven spots you might have on a digital board in the rotating area?

Well for the most part, we have all of our ports are shared by advertisers. So we sell them in networks. I can tell you that as we expand our footprint, it does enable us to go to larger advertisers in places like the entertainment companies and media companies to utilize those with a broader footprint. So that actually increases the demand across the digital platform.

The digital platform and our other platforms we have seen rate increases throughout the year and expect and are continuing to drive those into 2011. So it is our expectation that it is a enhancer to rate growth not an inhibitor to rate growth. We are not seeing any diminishing returns from expanding our digital footprint. And so we're obviously continuing to roll that out as extensively as we possibly can.

We do have some networks that are -- I'm aligned with one advertiser -- one in particular, Coca-Cola Network, which is fully committed. But for the most part, our net -- most all of our digital boards are shared amongst all of our advertisers.

And if I may, one last one. To the extent that originally digital boards were viewed as an opportunity to create a different type of outdoor advertising, you know, something that would be very time-sensitive or location-sensitive, rather than sort of a national product building type advertising, are you seeing any of that? Is that getting to be a bigger share of what goes on?

Yes. I would say that the flexibility and creative adaptability for advertisers to use digital is better. It is far from being as good as we would like it to be. But that is part of the education process that we continue to explore with all the advertisers on how they can utilize it even better.

But as I said, some of the entertainment companies in particular have really come out and been very creative in the way they utilize the medium. So we are continuing to see that and it's our job to continue out there to explain all of the opportunities that and ways that advertisers can utilize that medium.

All right. Thanks very much.

Operator, we are going to take one more call.

Lance Vitanza with CRT Capital Group.

You know, Mark, you made reference during your prepared remarks regarding, I think it was, an expectation for some share gains. Presumably that was on the outside -- the Outdoor side. Could you talk a little bit about your expectations for terrestrial radio, ad revenue share generally and see if you, in particular, given the threat from new technologies like streaming services, I'm thinking of Pandora, of course and obviously also iPod and Satellite Radio and so forth?

A couple of things there. One is, to clarify, it is our expectation that we will continue as we have in 2010 to gain market share of the revenue side and on the audience side in our radio platform. So it is our expectations. We saw that in 2010. We expect to continue that in 2011. With regard to radio in a holistic way, I think it is important to note that radio's audience over the last couple of years has not declined.

You know, there's this perception out there that radio, like television, newspaper and some of the other mass mediums has declined. And it has not declined. The radio audience has not declined over the last couple of years.

And therefore as we look at it, I think people should not be putting radio into the declining bucket that has historically people have put it into. And I think that is an important distinguishing factor. I think as you look at it with regard to additional services such as Pandora, other Internet services, we embrace digital. It is an opportunity for radio. If we can keep our terrestrial audiences, as we have the last couple of years, if we can then use digital to connect with consumers across any type of distribution now platformed, then it is all extremely additive.

And so, adding additional and taking our great content and utilizing it to connect with consumers in the ways that they want us to connect with them, is a huge opportunity. I can tell you that Bob Pittman is ecstatic about those opportunities. And he looks at the digital platforms as unique opportunities. He looks at iheartradio which if you haven't downloaded onto your smart phone, you need to download it immediately today.

This is an advertisement right here, right now, iheartradio.

So you, again, just taking that existing content and utilizing it and being able to take any type of service whether it is a Pandora, there are many others out there that have opportunities to customize. You are going to see our ability to continue to do that and provide services that consumers want in the future.

Thank you. That's helpful. And with respect to Katz, it looks like another strong quarter there in terms of EBITDA growth. Is there anything of a nonrecurring nature going on there that we ought to be aware of?

Well no, as I say, the only thing I would caution you on is that Katz does have a lot of political advertising representing TV stations and radio stations. So a lot of that national business that comes through in the political realm is, a lot of that comes through Katz. So that is some of the political advertising doesn't recur next year.

And then lastly just for Brian. I think I saw in the release you have about $1.920 billion of total cash now. I didn't see in there any mention of how much of that is at the Radio versus the Outdoor. And I guess you release the Outdoor numbers -- I would just, maybe you could save me from having to do the subtraction and tell me how much is actually at the Radio business?

I'm not sure it would be at the Radio business per se, but of the $1.9 billion there is about $625 million sitting at CCOH.

Okay and I assume that the revolver remains fully drawn including the LCs?

For the most part that's correct.

Okay, great. Thanks. And the last comment -- I really do appreciate you opening this call up to the Radio business as well. Is that something did you say that you plan to continue to do?

Yes. I think it is our goal and intention to continue to open it up and continue to try to be more formative with regard to the holistic radio business and the overall Company as we expand our Investor Relations profile.

Well, we think that's great. Thanks so much and congratulations on another strong quarter.

Thank you, Lance, and with that, that completes today's conference call. We appreciate each of you joining us today and if you do have follow-up questions over the next week or so, please feel free to contact us. Thank you very much. Have a great day.

Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation and for using AT&T Executive Teleconference. You may now disconnect.