After tax cash flow reported for the quarter was $324 million, an increase of 69% over the first quarter of 2000. The Company’s after tax cash flow per share was $0.52 compared to $0.51 for the first quarter of 2000, an increase of 2%. After tax cash flow is defined as diluted net income before unusual and non-recurring items plus non-cash items (including nonconsolidated affiliates).
Commenting on the results, Lowry Mays, Chairman and Chief Executive Officer, stated, With the difficult comparisons from last year’s first quarter coupled with the current economy, we are quite pleased with our results for the first quarter of 2001. Despite the tough comparisons we were able to increase after tax cash flow per share, the best measure of our performance, versus the outstanding first quarter of last year. Most importantly after tax cash flow per share during the first quarter of 2001 has grown at a compounded annual growth rate of 19% since the first quarter of 1999.
Operating Results
The Company measures the performance of its operating segments and managers based on a like period pro forma measurement. Below are the consolidated like period pro forma results for the first quarter of 2001 versus 2000.
Segment Operating Results
RADIO: The Radio Division continues to be the Company’s largest operating segment. On a like period pro forma basis the Radio Division reported an 8% decrease in revenue in the first quarter of 2001 versus the comparable period in 2000. Operating expenses were down 9% resulting in a decrease in operating cash flow of 7% for the period.
During the first quarter of 2001, the Radio Division increased its market share. Performance during the first quarter was negatively impacted by the difficult comparison to the strong performance of 2000. National sales were weaker during the current period especially in our larger markets. The decline in revenue was partially offset by various cost control measures.
OUTDOOR: On a like period pro forma basis the Outdoor Division reported relatively flat revenue growth in the first quarter of 2001 versus the comparable period in 2000. Operating expenses increased 4% resulting in a decrease in operating cash flow of 9% for the period.
The decrease in operating performance was again a reflection of the difficult relative comparison to the first quarter of 2000. Additionally, operating expenses increased due to increased expenses associated with investments and expansion of operations of recently acquired assets. We believe that these investments will yield positive returns in the future.
OUT-of-HOME: Out-of-home combines the Company’s radio and outdoor advertising segments and represents 91% of the Company’s operating cash flow during the first quarter of 2001. On a like period pro forma basis Out-of-home revenue decreased 5% in the first quarter of 2001 versus the comparable period in 2000. Operating expenses decreased 4% resulting in a decrease in operating cash flow of 7% for the period.
ENTERTAINMENT: On a like period pro forma basis the Entertainment Division had a decrease of 13% in revenues in the first quarter of 2001 versus the comparable period in 2000. Operating expenses decreased 9% resulting in a decrease in operating cash flow of 54% for the period.
This decrease in operating performance was expected due to the difference in the timing of live event dates during the first quarter of 2001, as compared to 2000. We currently anticipate that the Entertainment Division will post double-digit pro forma operating cash flow growth during the second quarter and full year.
