IPO Company Profile
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Capstar Broadcasting Corporation
600 Congress Avenue, Suite 1400, Austin, TX 78701 * (512) 340-7800

The Company is the largest radio broadcaster in the United States operating primarily in mid-sized markets. Since its first acquisition in October 1996, the company has assembled a portfolio of 300 radio stations in 75 mid sized markets.

Primary Underwriting Group
ManagerTierPhone
CS First BostonLead Manager (212) 325-2000
Bear, Stearns & Co. Inc.Co-manager (212) 272-4850
BT Alex BrownCo-manager (410) 727-1700
Goldman, Sachs & Co.Co-manager (212) 902-5959
Morgan Stanley Dean Witter Discover & Co.Co-manager (212) 761-5900
Nationsbanc Montgomery Securities, Inc.Co-manager (415) 627-2100
Salomon Smith BarneyCo-manager (212) 723-7300

Offering Information
NYSE:CRB Service: SIC 4832
Type of Shares:Class A Common Shares Filing Date:3/27/98
U.S. Shares:31,000,000 Offer Date:5/26/98
Non-U.S. Shares:0 Filing Range:$18.00 - $21.00
Primary Shares:31,000,000 Offer Price:$19.00
Secondary Shares:0 Gross Spread:$1.07
Offering Amount: $604,500,000 Selling:$0.64
Expenses: - Reallowance:$0.10
Post-IPO Shares: -
Employees:1871

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Vinson & Elkins
Bank's Law Firm: Weil, Gotshal & Manges
Auditor: Coopers & Lybrand

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Audited
Income
Balance
Sheet
12/31/97 12/31/97
Revenue:$175.44Assets:$1,121.46
Net Income:-$52.81Curr Assets:$114.69
EPS:-$0.20Liabilities:$889.37
Prior EPS:-$0.14Curr Liab:$34.27
Cash Flow/Oper:$6.70Equity:$232.09
Cash Flow/Fin:$540.54Cash:$70.06
Cash Flow/Inv:-$487.00Working Cap:$80.42

Competition
Radio broadcasting is a highly competitive business. The Company's radio stations, now owned or to be acquired upon completion of the SFX Transactions and the Pending Acquisitions, compete for audiences and advertising revenues within their respective markets directly with other radio stations, as well as with other media, such as newspapers, magazines, cable television, outdoor advertising and direct mail. Audience ratings and market shares are subject to change and any adverse change in a particular market could have a material adverse effect on the revenue of stations located in that market. While the Company already competes with other stations with comparable programming formats in many of its markets, if another radio station in the market were to convert its programming format to a format similar to one of the Company's stations, if a new station were to adopt a competitive format, or if an existing competitor were to strengthen its operations, the Company's stations could suffer a reduction in ratings and/or advertising revenue and could require increased promotional and other expenses.

Business Plan
The Company's primary goals are to (i) achieve revenue growth rates at its stations that are significantly in excess of historical growth rates achieved in comparable markets and (ii) to increase its operating margins at these stations at growth rates which exceed the average in operating margins growth rates being achieved in large markets. The Company intends to achieve these goals through the implementation of the following strategies: (I) Enhance Revenue Growth through Multiple Station Ownership, (ii) Utilize Sophisticated Revenue Generating Techniques, (iii) Use Innovative Computer Technology to Enhance Programming, (iv) Create Low Cost Operating Structure and (v) Capitalize on Extensive Regional Management Experience.

Use of Proceeds
The proceeds from the proposed offering will be used to finance current acquisitions, reduce indebtedness and redeem preferred stock and for general corporate purposes.

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