Exhibit 99.1
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, 2007 | December 31, 2006 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 213,021 | $ | 281,264 | ||||
Restricted cash (1) | 35,928 | |||||||
Short-term investments and available-for-sale securities | 15,634 | 22,986 | ||||||
Accounts receivable, net | 45,415 | 29,368 | ||||||
Prepaid and other current assets | 79,404 | 63,919 | ||||||
Deferred income taxes | 23,494 | 88,485 | ||||||
Total current assets | 412,896 | 486,022 | ||||||
Property and equipment, net | 3,115,888 | 3,218,124 | ||||||
Goodwill | 2,186,315 | 2,189,767 | ||||||
Other intangible assets, net | 1,763,569 | 1,820,876 | ||||||
Deferred income taxes | 473,651 | 482,710 | ||||||
Notes receivable and other long-term assets | 431,772 | 415,720 | ||||||
Total | $ | 8,384,091 | $ | 8,613,219 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 205,878 | $ | 187,634 | ||||
Accrued interest | 23,889 | 41,319 | ||||||
Current portion of long-term obligations | 1,666 | 253,907 | ||||||
Unearned revenue | 83,626 | 86,769 | ||||||
Total current liabilities | 315,059 | 569,629 | ||||||
Long-term obligations | 3,975,299 | 3,289,109 | ||||||
Other long-term liabilities | 453,508 | 365,974 | ||||||
Total liabilities | 4,743,866 | 4,224,712 | ||||||
Minority interest in subsidiaries | 3,462 | 3,591 | ||||||
STOCKHOLDERS’ EQUITY | ||||||||
Class A Common Stock | 4,497 | 4,378 | ||||||
Additional paid-in capital | 7,709,929 | 7,502,472 | ||||||
Accumulated deficit | (2,757,452 | ) | (2,733,920 | ) | ||||
Accumulated other comprehensive income | 3,189 | 16,079 | ||||||
Treasury stock | (1,323,400 | ) | (404,093 | ) | ||||
Total stockholders’ equity | 3,636,763 | 4,384,916 | ||||||
Total | $ | 8,384,091 | $ | 8,613,219 | ||||
| (1) | The amounts classified as restricted cash reflect funds held in reserve accounts by the two special-purpose subsidiaries of the Company formed in connection with the Company’s completed securitization transaction with respect to debt service payments, ground rents, real estate and personal property taxes, insurance premiums and management fees, and to reserve a portion of advance rents from tenants on the tower sites. |
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
REVENUES: | ||||||||||||||||
Rental and management | $ | 350,775 | $ | 320,169 | $ | 696,804 | $ | 636,428 | ||||||||
Network development services | 7,648 | 5,694 | 14,093 | 9,844 | ||||||||||||
Total operating revenues | 358,423 | 325,863 | 710,897 | 646,272 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Costs of operations (exclusive of items shown separately below) | ||||||||||||||||
Rental and management | 85,910 | 83,128 | 169,671 | 162,669 | ||||||||||||
Network development services | 4,132 | 2,609 | 7,654 | 4,680 | ||||||||||||
Depreciation, amortization and accretion | 131,637 | 132,811 | 261,831 | 266,072 | ||||||||||||
Selling, general, administrative and development expense (1) | 42,063 | 36,610 | 90,706 | 72,923 | ||||||||||||
Impairments, net loss (gain) on sale of long-lived assets, restructuring and merger related expense | 1,385 | (67 | ) | 1,629 | 1,447 | |||||||||||
Total operating expenses | 265,127 | 255,091 | 531,491 | 507,791 | ||||||||||||
OPERATING INCOME | 93,296 | 70,772 | 179,406 | 138,481 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Interest income, TV Azteca, net | 3,584 | 3,584 | 7,082 | 7,082 | ||||||||||||
Interest income | 3,224 | 1,371 | 6,841 | 2,729 | ||||||||||||
Interest expense | (58,384 | ) | (53,690 | ) | (111,658 | ) | (107,947 | ) | ||||||||
Loss on retirement of long-term obligations | (28,908 | ) | (3,497 | ) | (33,060 | ) | (25,074 | ) | ||||||||
Other income | 13,874 | 2,661 | 16,872 | 6,390 | ||||||||||||
Total other expense | (66,610 | ) | (49,571 | ) | (113,923 | ) | (116,820 | ) | ||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES, MINORITY INTEREST AND INCOME ON EQUITY METHOD INVESTMENTS | 26,686 | 21,201 | 65,483 | 21,661 | ||||||||||||
Income tax provision | (14,566 | ) | (12,936 | ) | (32,197 | ) | (14,762 | ) | ||||||||
Minority interest in net earnings of subsidiaries | (96 | ) | (280 | ) | (184 | ) | (537 | ) | ||||||||
Income on equity method investments | 6 | 6 | 8 | 10 | ||||||||||||
INCOME FROM CONTINUING OPERATIONS | 12,030 | 7,991 | 33,110 | 6,372 | ||||||||||||
LOSS FROM DISCONTINUED OPERATIONS, NET | (32,021 | ) | (327 | ) | (30,873 | ) | (645 | ) | ||||||||
NET (LOSS) INCOME | $ | (19,991 | ) | $ | 7,664 | $ | 2,237 | $ | 5,727 | |||||||
BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE AMOUNTS: | ||||||||||||||||
Income from continuing operations | $ | 0.03 | $ | 0.02 | $ | 0.08 | $ | 0.02 | ||||||||
Loss from discontinued operations | (0.08 | ) | (0.07 | ) | (0.01 | ) | ||||||||||
Net (loss) income | $ | (0.05 | ) | $ | 0.02 | $ | 0.01 | $ | 0.01 | |||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||||
BASIC | 417,682 | 423,252 | 419,644 | 423,028 | ||||||||||||
DILUTED | 429,846 | 435,601 | 435,464 | 435,005 | ||||||||||||
| (1) | Selling, general, administrative and development expense includes $11,546 and $9,347 of stock-based compensation expense for the three months ended June 30, 2007 and June 30, 2006, and $28,214 and $18,858 of stock-based compensation expense for the six months ended June 30, 2007 and June 30, 2006, respectively. |
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Six Months Ended June 30, | ||||||||
| 2007 | 2006 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 2,237 | $ | 5,727 | ||||
Non-cash stock-based compensation expense | 28,214 | 18,858 | ||||||
Other non-cash items reflected in statements of operations | 359,469 | 308,072 | ||||||
Increase in restricted cash (1) | (21,608 | ) | ||||||
Decrease (increase) in assets (2) | 21,273 | (51,189 | ) | |||||
(Decrease) increase in liabilities | (7,421 | ) | 11,173 | |||||
Cash provided by operating activities | 382,164 | 292,641 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Payments for purchase of property and equipment and construction activities | (67,586 | ) | (57,044 | ) | ||||
Payments for acquisitions | (13,996 | ) | (2,830 | ) | ||||
Payments for acquisitions of minority interests | (22,944 | ) | ||||||
Proceeds from sale of businesses, available-for-sale securities, and other assets | 16,281 | 14,740 | ||||||
Deposits, restricted cash, short-term investments and other assets | (26,236 | ) | (334 | ) | ||||
Cash used for investing activities | (91,537 | ) | (68,412 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from issuance of Certificates in securitization transaction | 1,750,000 | |||||||
Borrowings under credit facilities | 1,350,000 | 242,000 | ||||||
Repayment of notes payable, credit facilities and capital leases | (2,611,686 | ) | (232,341 | ) | ||||
Purchases of Class A common stock | (913,237 | ) | (289,459 | ) | ||||
Proceeds from stock options, warrants and stock purchase plans | 101,863 | 35,362 | ||||||
Deferred financing costs and other financing activities | (35,810 | ) | (2,038 | ) | ||||
Cash used for financing activities | (358,870 | ) | (246,476 | ) | ||||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (68,243 | ) | (22,247 | ) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 281,264 | 112,701 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 213,021 | $ | 90,454 | ||||
CASH PAID FOR INCOME TAXES | $ | 14,979 | $ | 13,635 | ||||
CASH PAID FOR INTEREST | $ | 126,134 | $ | 99,214 | ||||
| (1) | Reflects the net increase in cash held in reserve accounts related to the Company’s securitization transaction as these accounts are classified as restricted cash. |
| (2) | Includes approximately $80.0 million in proceeds received by the Company from its previously announced federal income tax refund related to the carry back of certain federal net operating losses. |