On Oct. 30, Clear Channel Communications (NYSE:CCU) released third-quarter earnings for the period ended Sept. 30.

  • Net revenues increased 7% to $1,794 million because of movements in foreign exchange, increased national advertising revenues, street furniture revenues, and bulletin and the acquisition of Interspace Airport Advertising.

  • When you spread less SG&A cost over more revenue, you get an increase in the operating margin.

  • Eighteen out of 28 investors believe that Clear Channel will outperform the market in The Motley Fool's CAPS rating service.

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2006

Q3 2005

Change

Sales

$1,794.9

$1,683.3

6.6%

Net Profit*

$185.9

$171.8

8.2%

EPS*

$0.38

$0.32

18.8%

Diluted Shares

493.6

543.5

(9.2%)

*Before discontinued operations.

Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

62.4%

63.5%

(1.1)

Operating Margin

24.3%

23.4%

0.9

Net Margin

10.4%

10.2%

0.2

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$104.6

$412.7

(74.7%)

Current Assets

$2,374.9

$2,710.3

(12.4%)

Liabilities

Q3 2006

Q3 2005

Change

Current Liabilities*

$1,291.5

$2,016.2

(35.9%)

Long-Term Debt

$8,123.3

$8,001.0

1.5%

*Excluding current portion of LT debt.

Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$1,182.2

$1,100.0

7.5%

Capital Expenditures

$239.9

$291.4

(17.7%)

Free Cash Flow

$942.3

$808.6

16.5%



Find out why Fools always follow the money.

Related Companies:

  • Citadel Broadcasting (NYSE:CDL)
  • Cumulus Media (NASDAQ:CMLS)
  • Cox Radio (NYSE:CXR)

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