SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
March 23, 1998
Clear Channel Communications, Inc.
(Exact name of registrant as specified in its charter)
Texas
(State of Incorporation)
1-9645 74-1787536
(Commission File Number) (I.R.S. Employer Identification No.)
200 Concord Plaza, Suite 600
San Antonio, Texas 78216
(210) 822-2828
(Address and telephone number of principal executive offices)
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Clear Channel Communications, Inc.
Form 8-K/A
Item 5 Other Events.
On March 12, 1998, Clear Channel Communications, Inc., a Texas corporation (the
Company), filed a current report on Form 8-K. The Company is filing this
amendment to include additional information regarding the Company's market risk
with respect to interest rate, foreign currency and equity price.
Item 7 (c) Exhibits
EXHIBIT NO. DESCRIPTION
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99.1 -- Quantitative and Qualitative Disclosures about
Market Risk
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Clear Channel Communications, Inc.
Date March 23, 1998 By s/L. LOWRY MAYS
L. Lowry Mays, Chairman/
Chief Executive Officer
Date March 23, 1998 By /s/HERBERT W. HILL, JR.
Herbert W. Hill, Jr.
Senior Vice President/
Chief Accounting Officer
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INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION
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99.1 -- Quantitative and Qualitative Disclosures about
Market Risk
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EX-99.1
Quantitative and Qualitative Disclosures about Market Risk
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EXHIBIT 99.1
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest Rate Risk:
At December 31, 1997, approximately 78% of the Company's long-term debt bears
interest at variable rates. Accordingly, the Company's net income and after tax
cash flow are affected by changes in interest rates. Assuming the current level
of borrowings at variable rates and assuming a two percentage point change in
the 1997 average interest rate under these borrowings, it is estimated that the
Company's 1997 interest expense would have changed by $24.3 million resulting in
a change in the Company's 1997 net income and after tax cash flow of $15.0
million. In the event of an adverse change in interest rates, management would
likely take actions to further mitigate its exposure. However, due to the
uncertainty of the actions that would be taken and their possible effects, this
analysis assumes no such actions. Further this analysis does not consider the
effects of the change in the level of overall economic activity that could exist
in such an environment.
At December 31, 1997, the Company had several interest rate protection
agreements. Originally, Eller Media, Inc. (Eller) put these agreements in force
to mitigate the interest rate risk on its long-term debt. Subsequently,
ownership of these agreements transferred to the Company as a result of its
acquisition of Eller on April 10th, 1997. The fair value of these agreements are
not material at December 31, 1997, are not expected to become material in the
near-term, and have not been considered in the above analysis as the Company
intends to terminate these agreements during 1998.
Foreign Currency Risk:
The Company's earnings are affected by fluctuations in the value of the U.S.
dollar as compared to foreign currencies as a result of its investments in
Australia and New Zealand, both of which are accounted for under the equity
method. It is estimated that the result of a 10% fluctuation in the value of the
dollar relative to theses foreign currencies at December 31, 1997 would change
the Company's 1997 net income and after tax cash flow by $0.5 million. The
Company's analysis does not consider the implications that such fluctuations
could have on the overall economic activity that could exist in such an
environment in either the U.S. or the foreign countries or on the results of
operations of these foreign entities.
Equity Price Risk:
The carrying value of the Company's available-for-sale equity securities is
affected by changes in their quoted market prices. It is estimated that a 20%
change in the market prices of these securities would change their carrying
value at December 31, 1997 by $12.4 million.
