SAN
ANTONIO, Nov. 8, 2023 /PRNewswire/ -- Clear Channel
Outdoor Holdings, Inc. (NYSE: CCO) (the "Company") today
reported financial results for the quarter ended
September 30, 2023.
"We delivered third quarter consolidated revenue of $517 million, up 2.7%, excluding movements in
foreign exchange rates, within our guidance after excluding our
Europe-South segment, which is now reflected as discontinued
operations in our financial statements," said Scott Wells, Chief Executive Officer of Clear
Channel Outdoor Holdings, Inc. "Business trends are improving
domestically, and we believe we'll see better performance in the
U.S. in the fourth quarter.
"Our Board of Directors and management team are focused on
deleveraging over the near-to-medium term by continuing to execute
on our operating plan to organically grow Adjusted EBITDA and
improve free cash flow, including expanding categories of
advertisers in out-of-home, optimizing our deployment of capital,
and reducing corporate expenses, while methodically working to
monetize our European assets and streamline our focus on our
higher-margin markets.
"With the recently completed sale of our business in
France, we have made significant
progress on improving our portfolio this year, selling or agreeing
to sell all of the businesses in our Europe-South segment. In
addition, we have commenced a process to sell our Europe-North
segment, and potential buyers are reviewing preliminary
information. We have also initiated a strategic review of our
businesses in Latin America.
"We believe these actions provide us the roadmap to achieve
meaningfully lower leverage multiples over the next few years,
which in turn should enable us to generate stronger free cash flow
to support further deleveraging and unlock shareholder value."
Financial Highlights:
Financial highlights for the third quarter of 2023 as compared
to the same period of 2022, including financial highlights
excluding movements in foreign exchange rates
("FX")1:
(In
millions)
|
Three Months Ended
September 30, 2023
|
|
% Change
|
Revenue:
|
|
|
|
Consolidated
Revenue2
|
$
526.8
|
|
4.7 %
|
Excluding
movements in FX1,2
|
517.0
|
|
2.7 %
|
America
Revenue
|
278.8
|
|
(1.9) %
|
Airports
Revenue
|
75.6
|
|
21.2 %
|
Europe-North
Revenue
|
149.4
|
|
10.2 %
|
Excluding
movements in FX1
|
141.6
|
|
4.5 %
|
|
|
|
|
Net
Loss:
|
|
|
|
Loss from Continuing
Operations
|
(51.1)
|
|
171.7 %
|
|
|
|
|
Adjusted
EBITDA1:
|
|
|
|
Adjusted
EBITDA1,2
|
139.2
|
|
0.9 %
|
Excluding
movements in FX1,2
|
137.3
|
|
(0.5) %
|
America
Segment Adjusted
EBITDA3
|
121.3
|
|
(6.4) %
|
Airports
Segment Adjusted
EBITDA3
|
15.5
|
|
3.1 %
|
Europe-North
Segment Adjusted
EBITDA3
|
28.4
|
|
17.5 %
|
Excluding
movements in FX1
|
26.4
|
|
9.2 %
|
|
|
1
|
This is a non-GAAP
financial measure. See "Supplemental Disclosures" section herein
for more information.
|
2
|
Financial highlights
exclude results of discontinued operations. See
"Dispositions and Discontinued Operations" section herein
for more information.
|
3
|
Segment Adjusted EBITDA
is a GAAP financial measure. See "Supplemental Disclosures" section
herein for more information.
|
Dispositions and Discontinued
Operations:
Dispositions:
Since December 2022, we have sold,
or have entered into agreements to sell, our businesses in
Switzerland, Italy, Spain
and France, comprising our entire
Europe-South segment.
- On March 31, 2023, we sold our
business in Switzerland to
Goldbach Group AG for cash proceeds, net of customary closing
adjustments and cash sold, of $89.4
million.
- On May 31, 2023, we sold our
business in Italy to a subsidiary
of JCDecaux for cash proceeds, net of customary closing adjustments
and cash sold, of $5.1 million.
- In May 2023, we entered into an
agreement to sell our business in Spain to a subsidiary of JCDecaux for cash
consideration of approximately $64.3
million. This transaction is expected to close in 2024, upon
satisfaction of regulatory approval and other customary closing
conditions.
- In July 2023, we entered into
exclusive discussions with Equinox Industries ("Equinox") related
to our business in France, and in
October 2023, we entered into a share
purchase agreement with Equinox to sell our business in
France. The sale was subsequently
completed on October 31, 2023, and in
accordance with that share purchase agreement, we delivered our
business in France to Equinox with
approximately €42 million of cash, subject to adjustment for
related customary items, tax and other costs, to support ongoing
operations of the business, and Equinox assumed the €28.125 million
state-guaranteed loan held by Clear Channel France.
We intend to use net proceeds from these sales, after payment of
transaction-related fees and expenses, to improve liquidity and
increase financial flexibility of the business as permitted under
our debt agreements.
Discontinued Operations:
During the third quarter of 2023, the Company's plan to sell the
businesses comprising its Europe-South segment met the criteria to
be reported as discontinued operations. As a result, each of the
Europe-South segment businesses has been reclassified to
discontinued operations in our financial statements for all periods
presented, resulting in changes to the presentation of certain
amounts for prior periods. The discussion in this earnings release
presents the results of continuing operations and excludes amounts
related to discontinued operations for all periods presented,
unless otherwise noted.
Exploration of Strategic
Alternatives:
The Company has initiated a process to sell the businesses in
its Europe-North segment and has also initiated a strategic review
of its Latin American businesses. There can be no assurance that
the process to sell or the review of strategic alternatives for
these businesses will result in any additional transactions or
particular outcomes. The Company has not set a timetable for
completion of these reviews, may suspend the processes at any time
and does not intend to make further announcements regarding the
processes unless and until the Board approves a course of action
for which further disclosure is appropriate.
Guidance:
Our expectations for the fourth quarter of 2023 are as
follows:
|
Fourth Quarter of 2023
|
(in
millions)
|
Low
|
|
High
|
Consolidated
Revenue1,2
|
$
591
|
|
$
618
|
America
|
293
|
|
305
|
Airports
|
100
|
|
105
|
Europe-North1
|
170
|
|
180
|
|
|
1
|
Excludes movements in
FX
|
2
|
Excludes results of
discontinued operations
|
We have updated our full year 2023 guidance from the guidance
previously provided in our earnings release issued on August 7, 2023 to exclude results now classified
as discontinued operations and to tighten the ranges of revenue
guidance. Our revised full year 2023 guidance is as follows:
|
Full Year of
2023
|
(in
millions)
|
Low
|
|
High
|
Consolidated
Revenue1,2
|
$
2,091
|
|
$
2,118
|
America
|
1,095
|
|
1,107
|
Airports
|
300
|
|
305
|
Europe-North1
|
604
|
|
614
|
Loss from Continuing
Operations1
|
(190)
|
|
(172)
|
Adjusted
EBITDA1,2,3
|
520
|
|
542
|
Adjusted Funds from
Operations ("AFFO")1,2,3
|
67
|
|
80
|
Capital
Expenditures2
|
143
|
|
161
|
|
|
1
|
Excludes movements in
FX
|
2
|
Excludes results of
discontinued operations
|
3
|
This is a non-GAAP
financial measure. See "Supplemental Disclosures" section
herein for more information.
|
Expected results and estimates may be impacted by factors
outside of the Company's control, and actual results may be
materially different from this guidance. See "Cautionary Statement
Concerning Forward-Looking Statements" herein.
Results:
Results provided herein exclude amounts related to discontinued
operations for all periods presented.
Revenue:
(In
thousands)
|
Three Months
Ended
September
30,
|
|
%
Change
|
|
Nine Months
Ended
September
30,
|
|
%
Change
|
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
America
|
$ 278,760
|
|
$ 284,201
|
|
(1.9) %
|
|
$ 802,326
|
|
$ 808,483
|
|
(0.8) %
|
Airports
|
75,558
|
|
62,318
|
|
21.2 %
|
|
200,392
|
|
179,307
|
|
11.8 %
|
Europe-North
|
149,366
|
|
135,522
|
|
10.2 %
|
|
427,778
|
|
403,338
|
|
6.1 %
|
Other
|
23,102
|
|
21,303
|
|
8.4 %
|
|
64,530
|
|
60,653
|
|
6.4 %
|
Consolidated
Revenue
|
$
526,786
|
|
$
503,344
|
|
4.7 %
|
|
$
1,495,026
|
|
$
1,451,781
|
|
3.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue excluding
movements in FX1:
|
|
|
|
|
|
|
|
|
|
|
|
America
|
$ 278,760
|
|
$ 284,201
|
|
(1.9) %
|
|
$ 802,326
|
|
$ 808,483
|
|
(0.8) %
|
Airports
|
75,558
|
|
62,318
|
|
21.2 %
|
|
200,392
|
|
179,307
|
|
11.8 %
|
Europe-North
|
141,626
|
|
135,522
|
|
4.5 %
|
|
434,157
|
|
403,338
|
|
7.6 %
|
Other
|
21,037
|
|
21,303
|
|
(1.2) %
|
|
60,883
|
|
60,653
|
|
0.4 %
|
Consolidated Revenue
excluding
movements in FX
|
$
516,981
|
|
$
503,344
|
|
2.7 %
|
|
$
1,497,758
|
|
$
1,451,781
|
|
3.2 %
|
|
|
1
|
This is a non-GAAP
financial measure. See "Supplemental Disclosures" section herein
for more information.
|
Revenue for the third quarter of 2023, as compared to the same
period of 2022:
America: Revenue down 1.9%:
- Driven by weaknesses in Media/Entertainment vertical and
San Francisco/Bay Area market
- Decrease driven by print-formats; digital revenue of
$97.6 million up 0.1%
- National sales comprised 32.7% of America revenue, compared to
37.8% in the prior year
Airports: Revenue up 21.2%:
- Driven by increased demand due to recovery of air travel after
COVID-19 and investment in digital infrastructure
- Digital revenue up 15.6% to $41.8
million from $36.1
million
- National sales comprised 56.8% of Airports revenue, compared to
55.0% in the prior year
Europe-North: Revenue up 10.2%;
excluding movements in FX, up 4.5%:
- Higher revenues in the U.K., Belgium and Denmark; partially offset by lower revenues in
Sweden and Norway
- Digital revenue up 15.1% to $83.8
million from $72.8 million;
digital revenue, excluding movements in FX, up 8.5% to $79.0 million
Other: Revenue up 8.4%; excluding movements
in FX, down 1.2%:
- Lower revenue related to termination of public bicycle rental
program
Direct Operating and SG&A Expenses1:
(In
thousands)
|
Three Months
Ended
September
30,
|
|
%
Change
|
|
Nine Months
Ended
September
30,
|
|
%
Change
|
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
|
Direct operating and
SG&A expenses:
|
America
|
$ 157,456
|
|
$ 154,867
|
|
1.7 %
|
|
$ 470,158
|
|
$ 445,400
|
|
5.6 %
|
Airports
|
60,038
|
|
47,258
|
|
27.0 %
|
|
162,274
|
|
139,540
|
|
16.3 %
|
Europe-North
|
121,154
|
|
111,333
|
|
8.8 %
|
|
366,706
|
|
344,720
|
|
6.4 %
|
Other
|
19,812
|
|
18,312
|
|
8.2 %
|
|
57,360
|
|
55,371
|
|
3.6 %
|
Consolidated Direct
operating and
SG&A expenses2,3
|
$
358,460
|
|
$
331,770
|
|
8.0 %
|
|
$
1,056,498
|
|
$
985,031
|
|
7.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating and
SG&A expenses excluding movements in FX4:
|
America
|
$ 157,456
|
|
$ 154,867
|
|
1.7 %
|
|
$ 470,158
|
|
$ 445,400
|
|
5.6 %
|
Airports
|
60,038
|
|
47,258
|
|
27.0 %
|
|
162,274
|
|
139,540
|
|
16.3 %
|
Europe-North
|
115,432
|
|
111,333
|
|
3.7 %
|
|
374,296
|
|
344,720
|
|
8.6 %
|
Other
|
18,147
|
|
18,312
|
|
(0.9) %
|
|
54,502
|
|
55,371
|
|
(1.6) %
|
Consolidated Direct
operating and
SG&A expenses excluding
movements in FX
|
$
351,073
|
|
$
331,770
|
|
5.8 %
|
|
$
1,061,230
|
|
$
985,031
|
|
7.7 %
|
|
|
1
|
"Direct operating and
SG&A expenses" as presented throughout this earnings release
refers to the sum of direct operating expenses (excluding
depreciation and amortization) and selling, general and
administrative expenses (excluding depreciation and
amortization).
|
2
|
Certain costs that were
historically allocated to the Company's Europe-South segment and
reported within SG&A expenses, totaling $1.1 million and
$3.8 million during the three and nine months ended
September 30, 2022, respectively, have been deemed to be costs
of continuing operations and are now reported within corporate
expenses for all periods presented.
|
3
|
Includes restructuring
and other costs of $0.3 million and $0.4 million during
the three months ended September 30, 2023 and 2022,
respectively, and $0.8 million and $1.4 million during
the nine months ended September 30, 2023 and 2022,
respectively.
|
4
|
This is a non-GAAP
financial measure. See "Supplemental Disclosures" section herein
for more information.
|
Direct operating and SG&A expenses for the third quarter of
2023, as compared to the same period of 2022:
America: Direct operating and
SG&A expenses up 1.7%:
- Site lease expense up 10.4% to $90.1
million from $81.6 million
driven by lease renewals and amendments, as well as lower rent
abatements
- Partially offset by lower property taxes related to legal
settlement and lower credit loss expense
Airports: Direct operating and
SG&A expenses up 27.0%:
- Site lease expense up 47.9% to $47.2
million from $31.9 million
driven by lower rent abatements and higher revenue
Europe-North: Direct operating
and SG&A expenses up 8.8%; excluding movements in FX, up
3.7%:
- Higher electricity prices, rental costs for additional digital
displays and higher property taxes
- Site lease expense up 3.2% to $55.6
million from $53.9 million;
site lease expense, excluding movements in FX, down 0.7% to
$53.5 million driven by a contract
renegotiation
Other: Direct operating and SG&A
expenses up 8.2%; excluding movements in FX, down 0.9%:
- Lower expenses related to termination of public bicycle rental
program
Corporate Expenses1:
(In
thousands)
|
Three Months
Ended
September
30,
|
|
%
Change
|
|
Nine Months
Ended
September
30,
|
|
%
Change
|
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
|
Corporate
expenses2
|
$
34,931
|
|
$
38,299
|
|
(8.8) %
|
|
$ 129,427
|
|
$ 123,323
|
|
4.9 %
|
Corporate expenses
excluding
movements in FX3
|
34,446
|
|
38,299
|
|
(10.1) %
|
|
129,841
|
|
123,323
|
|
5.3 %
|
|
|
1
|
Certain costs that were
historically reported within SG&A expenses have been
reclassified to corporate expenses for all periods presented. See
the "Direct Operating and SG&A Expenses" discussion above for
more details.
|
2
|
Includes restructuring
and other costs (reversals) of $0.6 million and $(0.8) million
during the three months ended September 30, 2023 and 2022,
respectively, and $20.2 million and $9.7 million during the
nine months ended September 30, 2023 and 2022,
respectively.
|
3
|
This is a non-GAAP
financial measure. See "Supplemental Disclosures" section herein
for more information.
|
Corporate expenses for the third quarter of 2023, as compared to
the same period of 2022, down 8.8%; excluding movements in FX, down
10.1%, driven by lower employee compensation related to variable
incentives.
Loss from Continuing Operations:
(In
thousands)
|
Three Months
Ended
September
30,
|
|
%
Change
|
|
Nine Months
Ended
September
30,
|
|
%
Change
|
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
|
Loss from continuing
operations
|
$ (51,082)
|
|
$ (18,798)
|
|
171.7 %
|
|
$
(182,493)
|
|
$
(153,799)
|
|
18.7 %
|
Adjusted EBITDA1:
(In
thousands)
|
Three Months
Ended
September
30,
|
|
%
Change
|
|
Nine Months
Ended
September
30,
|
|
%
Change
|
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
|
Segment Adjusted
EBITDA2:
|
America
|
$ 121,335
|
|
$ 129,679
|
|
(6.4) %
|
|
$ 332,213
|
|
$ 364,062
|
|
(8.7) %
|
Airports
|
15,522
|
|
15,060
|
|
3.1 %
|
|
38,120
|
|
39,767
|
|
(4.1) %
|
Europe-North
|
28,444
|
|
24,198
|
|
17.5 %
|
|
61,850
|
|
59,031
|
|
4.8 %
|
Other
|
3,290
|
|
2,991
|
|
10.0 %
|
|
7,170
|
|
5,282
|
|
35.7 %
|
Total Segment Adjusted
EBITDA
|
168,591
|
|
171,928
|
|
(1.9) %
|
|
439,353
|
|
468,142
|
|
(6.1) %
|
Adjusted Corporate
expenses1,3
|
(29,375)
|
|
(33,981)
|
|
(13.6) %
|
|
(94,124)
|
|
(97,227)
|
|
(3.2) %
|
Adjusted
EBITDA1
|
$
139,216
|
|
$
137,947
|
|
0.9 %
|
|
$
345,229
|
|
$
370,915
|
|
(6.9) %
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted EBITDA
excluding movements in FX1:
|
America
|
$ 121,335
|
|
$ 129,679
|
|
(6.4) %
|
|
$ 332,213
|
|
$ 364,062
|
|
(8.7) %
|
Airports
|
15,522
|
|
15,060
|
|
3.1 %
|
|
38,120
|
|
39,767
|
|
(4.1) %
|
Europe-North
|
26,423
|
|
24,198
|
|
9.2 %
|
|
60,640
|
|
59,031
|
|
2.7 %
|
Other
|
2,890
|
|
2,991
|
|
(3.4) %
|
|
6,381
|
|
5,282
|
|
20.8 %
|
Total Segment Adjusted
EBITDA
|
166,170
|
|
171,928
|
|
(3.3) %
|
|
437,354
|
|
468,142
|
|
(6.6) %
|
Adjusted Corporate
expenses excluding
movements in FX1,3
|
(28,905)
|
|
(33,981)
|
|
(14.9) %
|
|
(94,554)
|
|
(97,227)
|
|
(2.7) %
|
Adjusted EBITDA
excluding
movements in FX1
|
$
137,265
|
|
$
137,947
|
|
(0.5) %
|
|
$
342,800
|
|
$
370,915
|
|
(7.6) %
|
|
|
1
|
This is a non-GAAP
financial measure. See "Supplemental Disclosures" section herein
for more information.
|
2
|
Segment Adjusted EBITDA
is a GAAP financial measure. See "Supplemental Disclosures" section
herein for more information.
|
3
|
Certain costs that were
historically included in Segment Adjusted EBITDA for the
Europe-South segment have been deemed to be costs of continuing
operations and have been reclassified to Adjusted Corporate
expenses for all periods presented.
|
AFFO1:
(In
thousands)
|
Three Months
Ended
September
30,
|
|
%
Change
|
|
Nine Months
Ended
September
30,
|
|
%
Change
|
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
|
AFFO1
|
$
24,612
|
|
$
33,864
|
|
(27.3) %
|
|
$
9,807
|
|
$ 107,761
|
|
(90.9) %
|
AFFO excluding
movements in FX1
|
22,504
|
|
33,864
|
|
(33.5) %
|
|
6,963
|
|
107,761
|
|
(93.5) %
|
|
|
1
|
This is a non-GAAP
financial measure. See "Supplemental Disclosures"
section herein for more information.
|
Capital Expenditures:
(In
thousands)
|
Three Months
Ended
September
30,
|
|
%
Change
|
|
Nine Months
Ended
September
30,
|
|
%
Change
|
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
|
America
|
$
16,148
|
|
$
13,777
|
|
17.2 %
|
|
$
51,844
|
|
$
52,251
|
|
(0.8) %
|
Airports
|
3,072
|
|
7,807
|
|
(60.7) %
|
|
10,382
|
|
17,369
|
|
(40.2) %
|
Europe-North
|
7,851
|
|
10,959
|
|
(28.4) %
|
|
18,998
|
|
22,445
|
|
(15.4) %
|
Other
|
1,577
|
|
1,234
|
|
27.8 %
|
|
4,534
|
|
2,527
|
|
79.4 %
|
Corporate
|
4,022
|
|
3,764
|
|
6.9 %
|
|
10,678
|
|
8,996
|
|
18.7 %
|
Consolidated
capital expenditures
|
$
32,670
|
|
$
37,541
|
|
(13.0) %
|
|
$
96,436
|
|
$
103,588
|
|
(6.9) %
|
Markets and Displays:
As of September 30, 2023, we operated more than 330,000
print and digital out-of-home advertising displays in 19 countries
as part of our continuing operations, with the majority of our
revenue generated by operations in the U.S. and Europe. As of September 30, 2023, we had
presence in 85 Designated Market Areas ("DMAs") in the U.S.,
including 43 of the top 50 U.S. markets, and in 12 countries
throughout Europe, excluding
markets that are considered discontinued operations.
|
Number of digital
displays added, net,
in third quarter
|
|
Total number of
displays as of September 30, 2023
|
|
|
Digital
|
|
Printed
|
|
Total
|
America1:
|
|
|
|
|
|
|
|
Billboards2
|
36
|
|
1,801
|
|
34,177
|
|
35,978
|
Other
displays3
|
28
|
|
612
|
|
19,174
|
|
19,786
|
Airports4
|
97
|
|
2,523
|
|
10,131
|
|
12,654
|
Europe-North
|
627
|
|
15,158
|
|
245,498
|
|
260,656
|
Other
|
53
|
|
1,220
|
|
5,398
|
|
6,618
|
Total
displays
|
841
|
|
21,314
|
|
314,378
|
|
335,692
|
|
|
1
|
As of
September 30, 2023, our America segment had presence in 28
U.S. DMAs.
|
2
|
Billboards includes
bulletins, posters, spectaculars and wallscapes.
|
3
|
Other displays includes
street furniture and transit displays.
|
4
|
As of
September 30, 2023, our Airports segment had displays across
nearly 200 commercial and private airports in the U.S. and the
Caribbean.
|
Clear Channel International
B.V.
Clear Channel International B.V. ("CCIBV"), an indirect
wholly-owned subsidiary of the Company and the issuer of our 6.625%
Senior Secured Notes due 2025 (the "CCIBV Senior Secured Notes"),
includes the operations of our Europe-North and Europe-South
segments, as well as Singapore,
which, following the changes to our reporting segments in the
fourth quarter of 2022, is included in "Other." The financial
results of Singapore are
immaterial to the results of CCIBV.
As the businesses in the Europe-South segment are considered
discontinued operations, results of these businesses are now
reported as a separate component of Consolidated net loss in the
CCIBV Consolidated Statements of Loss for all periods presented and
are excluded from the discussion below.
CCIBV results from continuing operations for the third quarter
of 2023 as compared to the same period of 2022 are as follows:
- CCIBV revenue increased 10.3% to $154.0
million from $139.6 million.
Excluding the $7.9 million impact of
movements in FX, CCIBV revenue increased 4.6%, primarily driven by
higher revenue in our Europe-North segment, as described in the
above "Results" section of this earnings release. Singapore represented approximately 3% of
CCIBV revenue from continuing operations for the three months ended
September 30, 2023.
- CCIBV operating income was $8.6
million compared to $3.4
million in the same period of 2022.
Liquidity and Financial
Position:
Cash and Cash Equivalents:
As of September 30, 2023, we had $313.4 million of cash on our balance sheet,
including $121.4 million of cash held
outside the U.S. (excludes cash held by our businesses in
Spain and France, which are discontinued
operations).
The following table summarizes our cash flows for the nine
months ended September 30, 2023 on a consolidated basis,
including both continuing and discontinued operations:
(In
thousands)
|
Nine Months Ended
September 30, 2023
|
Net cash used for
operating activities1
|
$
(1,522)
|
Net cash used for
investing activities2
|
(22,549)
|
Net cash provided by
financing activities3
|
46,994
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
3,045
|
Net increase in cash,
cash equivalents and restricted cash
|
$
25,968
|
|
|
Cash paid for
interest
|
$
283,746
|
Cash paid for income
taxes, net of refunds
|
$
8,711
|
|
|
1
|
Includes net cash used
by discontinued operations of $18.2 million.
|
2
|
Includes proceeds from
the disposition of businesses, net of cash sold, of
$94.4 million and capital expenditures for discontinued
operations of $16.1 million.
|
3
|
Includes the first
quarterly principal repayment of €1.875 million on the
state-guaranteed loan held by Clear Channel France. The remaining
principal due on this loan was assumed by the buyer upon the sale
of the business in France.
|
Debt:
In August 2023, we issued
$750.0 million aggregate
principal amount of CCOH 9.000% Senior Secured Notes, which mature
in September 2028, and used a portion
of the net proceeds to prepay $665.0 million of outstanding principal on
the Term Loan Facility, which we repurchased at a 1% discount.
This prepayment satisfied the remaining quarterly payment
obligations under the Senior Secured Credit Agreement; as such, the
remaining principal outstanding on the Term Loan of $1,260.0 million is due at maturity in
2026.
In addition, in September 2023, we
repurchased in the open market $5.0 million principal amount of the CCOH
7.750% Senior Notes and $10.0 million principal amount of the CCOH
7.500% Senior Notes for a total cash payment of $11.8 million, excluding accrued interest. The
repurchased notes are to be held by a subsidiary of the Company and
have not been cancelled. We may, from time to time, repurchase
additional outstanding notes in the open market, in privately
negotiated transactions or otherwise.
We anticipate having cash interest payment obligations of
$120.8 million during the
remainder of 2023 and $436.8 million in 2024, assuming that we do
not refinance or incur additional debt.
Our next material debt maturity is in August 2025 when the CCIBV Senior Secured Notes
become due. Please refer to Table 3 in this earnings release for
additional detail regarding our outstanding debt balance.
TABLE 1 -
Financial Highlights of Clear Channel Outdoor Holdings, Inc. and
its Subsidiaries:
|
|
(In
thousands)
|
Three Months
Ended September 30,
|
|
Nine Months
Ended September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
$
526,786
|
|
$
503,344
|
|
$
1,495,026
|
|
$
1,451,781
|
Operating
expenses:
|
|
|
|
|
|
|
|
Direct operating
expenses1
|
271,377
|
|
241,389
|
|
790,206
|
|
721,342
|
Selling, general and
administrative expenses1
|
87,083
|
|
90,381
|
|
266,292
|
|
263,689
|
Corporate
expenses1
|
34,931
|
|
38,299
|
|
129,427
|
|
123,323
|
Depreciation and
amortization
|
57,699
|
|
49,871
|
|
186,409
|
|
152,352
|
Impairment
charges
|
—
|
|
871
|
|
—
|
|
22,676
|
Other operating
expense, net
|
6,179
|
|
1,863
|
|
10,122
|
|
676
|
Operating
income
|
69,517
|
|
80,670
|
|
112,570
|
|
167,723
|
Interest expense,
net
|
(107,391)
|
|
(92,620)
|
|
(314,624)
|
|
(261,704)
|
Gain on extinguishment
of debt
|
3,817
|
|
—
|
|
3,817
|
|
—
|
Other income (expense),
net
|
(17,269)
|
|
(27,968)
|
|
3,722
|
|
(60,263)
|
Loss from continuing
operations before income
taxes
|
(51,326)
|
|
(39,918)
|
|
(194,515)
|
|
(154,244)
|
Income tax benefit
attributable to continuing
operations
|
244
|
|
21,120
|
|
12,022
|
|
445
|
Loss from continuing
operations
|
(51,082)
|
|
(18,798)
|
|
(182,493)
|
|
(153,799)
|
Loss from discontinued
operations2
|
(211,736)
|
|
(19,982)
|
|
(152,326)
|
|
(40,027)
|
Consolidated net
loss
|
(262,818)
|
|
(38,780)
|
|
(334,819)
|
|
(193,826)
|
Less: Net income
attributable to
noncontrolling interests
|
672
|
|
977
|
|
880
|
|
1,463
|
Net loss
attributable to the Company
|
$
(263,490)
|
|
$
(39,757)
|
|
$
(335,699)
|
|
$
(195,289)
|
|
|
1
|
Excludes depreciation
and amortization.
|
2
|
Loss from discontinued
operations for the three and nine months ended September 30,
2023 includes a loss of $200.6 million recognized upon
classification of the business in France as held for sale. During
the nine months ended September 30, 2023, this was partially
offset by gains of $96.4 million and $11.2 million from
the sales of the former businesses in Switzerland and Italy,
respectively. The remaining loss from discontinued operations
reflects the net loss generated by operations of our Europe-South
segment during the respective period and income tax expense driven
by the sale of these businesses.
|
Weighted Average
Shares Outstanding
|
|
(In
thousands)
|
Three Months
Ended September 30,
|
|
Nine Months
Ended September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Weighted average common
shares outstanding –
Basic and Diluted
|
482,945
|
|
475,612
|
|
481,289
|
|
473,787
|
TABLE 2 -
Selected Balance Sheet Information:
|
|
(In
thousands)
|
September
30,
2023
|
|
December 31,
2022
|
Cash and cash
equivalents
|
$
313,406
|
|
$
282,232
|
Total current
assets1
|
870,247
|
|
1,120,916
|
Net property, plant and
equipment
|
639,822
|
|
672,113
|
Total
assets2
|
4,648,929
|
|
5,086,011
|
Current liabilities
(excluding current portion of long-term
debt)3
|
1,032,667
|
|
1,100,337
|
Long-term debt
(including current portion of long-term debt)
|
5,629,227
|
|
5,561,901
|
Stockholders'
deficit
|
(3,662,527)
|
|
(3,262,806)
|
|
|
1
|
Total current assets
includes assets of discontinued operations of $41.4 million
and $322.5 million at September 30, 2023 and
December 31, 2022, respectively.
|
2
|
Total assets includes
assets of discontinued operations of $111.4 million and
$538.1 million at September 30, 2023 and
December 31, 2022, respectively.
|
3
|
Current liabilities
includes liabilities of discontinued operations of
$267.2 million and $356.1 million at September 30,
2023 and December 31, 2022, respectively.
|
TABLE 3 - Total
Debt:
|
|
(In
thousands)
|
September
30,
2023
|
|
December 31,
2022
|
Debt:
|
|
|
|
Term Loan Facility Due
20261,2
|
$
1,260,000
|
|
$
1,935,000
|
Revolving Credit
Facility Due 20263
|
—
|
|
—
|
Receivables-Based
Credit Facility Due 20264
|
—
|
|
—
|
Clear Channel Outdoor
Holdings 5.125% Senior Secured Notes Due 2027
|
1,250,000
|
|
1,250,000
|
Clear Channel Outdoor
Holdings 9.000% Senior Secured Notes Due
20282
|
750,000
|
|
—
|
Clear Channel Outdoor
Holdings 7.750% Senior Notes Due 20285
|
995,000
|
|
1,000,000
|
Clear Channel Outdoor
Holdings 7.500% Senior Notes Due 20295
|
1,040,000
|
|
1,050,000
|
Clear Channel
International B.V. 6.625% Senior Secured Notes Due 2025
|
375,000
|
|
375,000
|
Other
debt6
|
4,221
|
|
4,682
|
Original issue
discount
|
(2,923)
|
|
(5,596)
|
Long-term debt
fees
|
(42,071)
|
|
(47,185)
|
Total
debt7,8
|
5,629,227
|
|
5,561,901
|
Less: Cash and
cash equivalents8
|
(313,406)
|
|
(282,232)
|
Net
debt8
|
$
5,315,821
|
|
$
5,279,669
|
|
|
1
|
The term loans under
the Term Loan Facility amortize in equal quarterly installments in
an aggregate annual amount equal to 1.00% of the original principal
amount of such term loans, with the balance being payable on August
23, 2026. In accordance with these terms, we paid
$10.0 million of the outstanding principal on the Term Loan
Facility during the six months ended June 30, 2023. During the
three months ended September 30, 2023, we made a prepayment,
described in note (2) to this table, that satisfied the remaining
quarterly payment obligations. As such, the entire remaining
balance is due in 2026 and is classified as non-current at
September 30, 2023.
|
2
|
On August 22, 2023, we
issued $750.0 million aggregate principal amount of 9.000%
Senior Secured Notes due 2028. On the same date, we used a portion
of the net proceeds from this issuance to prepay
$665.0 million of outstanding principal on the Term Loan
Facility, which we repurchased at a 1% discount.
|
3
|
In June 2023, the
Senior Secured Credit Agreement was amended, extending the maturity
date of the Revolving Credit Facility to August 2026 and reducing
the aggregate revolving credit commitments of the Revolving Credit
Facility to $150.0 million. The full $150.0 million will
be available through August 23, 2024, and $115.8 million will
be available through August 23, 2026. As of September 30,
2023, we had $43.2 million of letters of credit outstanding
and $106.8 million of excess availability under the Revolving
Credit Facility.
|
4
|
In June 2023, the
Receivables-Based Credit Agreement was amended, extending its
maturity to August 2026 and increasing its aggregate revolving
credit commitments to $175.0 million. (The borrowing
limit of the Receivables-Based Credit Facility is equal to the
lesser of $175.0 million and the borrowing base, which is
calculated based on our accounts receivable balance each period in
accordance with our Receivables-Based Credit Agreement.) As of
September 30, 2023, we had $40.2 million of letters of credit
outstanding and $111.1 million of excess availability under
the Receivables-Based Credit Facility.
|
5
|
In September 2023, we
repurchased in the open market $5.0 million of the CCOH 7.750%
Senior Notes and $10.0 million of the CCOH 7.500% Senior Notes
at a discount, resulting in a gain on extinguishment of
$3.2 million. The repurchased notes are to be held by a
subsidiary of the Company and have not been cancelled.
|
6
|
Other debt includes
finance leases and various borrowings utilized for general
operating purposes.
|
7
|
The current portion of
total debt was $0.6 million and $21.2 million as of
September 30, 2023 and December 31, 2022, respectively.
The decrease was due to a prepayment made on the Term Loan, as
described in note (1) to this table.
|
8
|
Amounts exclude
balances related to discontinued operations for all periods
presented, including the state-guaranteed loan held by Clear
Channel France, for which the first principal repayment of €1.875
million was made in September 2023. The remaining principal balance
of €28.125 million was assumed by the buyer upon the sale of
the business in France.
|
Supplemental
Disclosures:
Reportable Segments and Segment Adjusted EBITDA
The Company has four reportable segments, which it believes best
reflect how the Company is currently managed: America, which
consists of the Company's U.S. operations excluding airports;
Airports, which includes revenue from U.S. and Caribbean airports; Europe-North, which
consists of operations in the U.K., the Nordics and several other
countries throughout northern and central Europe; and Europe-South, which consists of
operations in Spain, and prior to
their sales on March 31, 2023,
May 31, 2023 and October 31, 2023, respectively, Switzerland, Italy and France. The Company's remaining operations in
Latin America and Singapore are disclosed as "Other." As
described in the "Dispositions and Discontinued Operations" section
of this earnings release, the Company's Europe-South segment met
the criteria to be reported as discontinued operations during the
third quarter of 2023. As such, results of this segment are
excluded from this earnings release, which only reflects continuing
operations, for all periods presented.
Segment Adjusted EBITDA is the profitability metric reported to
the Company's chief operating decision maker for purposes of making
decisions about allocation of resources to, and assessing
performance of, each reportable segment. Segment Adjusted EBITDA is
a GAAP financial measure that is calculated as Revenue less Direct
operating expenses and SG&A expenses, excluding restructuring
and other costs. Restructuring and other costs include costs
associated with cost savings initiatives such as severance,
consulting and termination costs and other special costs.
Non-GAAP Financial Information
This earnings release includes information that does not conform
to U.S. generally accepted accounting principles ("GAAP"),
including Adjusted EBITDA, Adjusted Corporate expenses, Funds From
Operations ("FFO") and Adjusted Funds From Operations ("AFFO"). The
Company presents this information because the Company believes
these non-GAAP measures help investors better understand the
Company's operating performance as compared to other out-of-home
advertisers, and these metrics are widely used by such companies in
practice. Please refer to the reconciliation of non-GAAP financial
measures to their most directly comparable GAAP financial measures
below.
The Company defines, and uses, these non-GAAP financial measures
as follows:
- Adjusted EBITDA is defined as income (loss) from continuing
operations, plus: income tax expense (benefit) attributable to
continuing operations; all non-operating expenses (income),
including other expense (income), gain on extinguishment of debt
and interest expense, net; other operating expense (income), net;
depreciation, amortization and impairment charges; share-based
compensation expense included within corporate expenses; and
restructuring and other costs included within operating expenses.
Restructuring and other costs include costs associated with cost
savings initiatives such as severance, consulting and termination
costs and other special costs.
The Company uses Adjusted EBITDA as one of the primary measures for
the planning and forecasting of future periods, as well as for
measuring performance for compensation of Company executives and
other members of Company management. The Company believes Adjusted
EBITDA is useful for investors because it allows investors to view
performance in a manner similar to the method used by Company
management and helps improve investors' ability to understand the
Company's operating performance, making it easier to compare the
Company's results with other companies that have different capital
structures or tax rates. In addition, the Company believes Adjusted
EBITDA is among the primary measures used externally by the
Company's investors, analysts and peers in its industry for
purposes of valuation and comparing the operating performance of
the Company to other companies in its industry.
- As part of the calculation of Adjusted EBITDA, the Company also
presents the non-GAAP financial measure of "Adjusted Corporate
expenses," which the Company defines as corporate expenses
excluding share-based compensation expense and restructuring and
other costs.
- The Company uses the National Association of Real Estate
Investment Trusts ("Nareit") definition of FFO, which is
consolidated net income (loss) before: depreciation, amortization
and impairment of real estate; gains or losses from the disposition
of real estate; and adjustments to eliminate unconsolidated
affiliates and noncontrolling interests. The Company defines AFFO
as FFO excluding discontinued operations and before the following
adjustments for continuing operations: maintenance capital
expenditures; straight-line rent effects; depreciation,
amortization and impairment of non-real estate; amortization of
deferred financing costs and discounts; share-based compensation
expense; deferred taxes; restructuring and other costs; transaction
costs; foreign exchange transaction gain or loss; non-service
related pension costs or benefits; and other items, including
adjustment for unconsolidated affiliates and noncontrolling
interest and nonrecurring infrequent or unusual gains or
losses.
The Company is not a Real Estate Investment Trust ("REIT").
However, the Company competes directly with REITs that present the
non-GAAP measures of FFO and AFFO and, accordingly, believes that
presenting such measures will be helpful to investors in evaluating
the Company's operations with the same terms used by the Company's
direct competitors. The Company calculates FFO in accordance with
the definition adopted by Nareit. Nareit does not restrict
presentation of non-GAAP measures traditionally presented by REITs
by entities that are not REITs. In addition, the Company believes
FFO and AFFO are already among the primary measures used externally
by the Company's investors, analysts and competitors in its
industry for purposes of valuation and comparing the operating
performance of the Company to other companies in its industry. The
Company does not use, and you should not use, FFO and AFFO as an
indication of the Company's ability to fund its cash needs or pay
dividends or make other distributions. Because the Company is not a
REIT, the Company does not have an obligation to pay dividends or
make distributions to stockholders and does not intend to pay
dividends for the foreseeable future. Moreover, the presentation of
these measures should not be construed as an indication that the
Company is currently in a position to convert into a REIT.
A significant portion of the Company's advertising operations is
conducted in foreign markets, principally Europe, and Company management reviews the
results from its foreign operations on a constant dollar basis. The
Company presents the GAAP measures of revenue, direct operating and
SG&A expenses, corporate expenses and Segment Adjusted EBITDA,
as well as the non-GAAP financial measures of Adjusted EBITDA,
Adjusted Corporate expenses, FFO and AFFO, excluding movements in
foreign exchange rates because Company management believes that
viewing certain financial results without the impact of
fluctuations in foreign currency rates facilitates period-to-period
comparisons of business performance and provides useful information
to investors. These measures, which exclude the effects of foreign
exchange rates, are calculated by converting the current period's
amounts in local currency to U.S. dollars using average monthly
foreign exchange rates for the same period of the prior year.
Since these non-GAAP financial measures are not calculated in
accordance with GAAP, they should not be considered in isolation
of, or as a substitute for, the most directly comparable GAAP
financial measures as an indicator of operating performance or, in
the case of Adjusted EBITDA, FFO and AFFO, the Company's ability to
fund its cash needs. In addition, these measures may not be
comparable to similar measures provided by other companies. See
reconciliations of loss from continuing operations to Adjusted
EBITDA, corporate expenses to Adjusted Corporate expenses, and
consolidated net loss to FFO and AFFO in the tables set forth
below. This data should be read in conjunction with the Company's
most recent Annual Report on Form 10-K, Form 10-Qs and Form 8-Ks,
which are available on the Investor Relations page of the Company's
website at investor.clearchannel.com.
Reconciliation of
Loss from Continuing Operations to Adjusted
EBITDA
|
|
|
Three Months
Ended September 30,
|
|
Nine Months
Ended September 30,
|
(in
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Loss from continuing
operations
|
$
(51,082)
|
|
$
(18,798)
|
|
$
(182,493)
|
|
$
(153,799)
|
Adjustments:
|
|
|
|
|
|
|
|
Income tax benefit
attributable to continuing
operations
|
(244)
|
|
(21,120)
|
|
(12,022)
|
|
(445)
|
Other (income)
expense, net
|
17,269
|
|
27,968
|
|
(3,722)
|
|
60,263
|
Gain on extinguishment
of debt
|
(3,817)
|
|
—
|
|
(3,817)
|
|
—
|
Interest expense,
net
|
107,391
|
|
92,620
|
|
314,624
|
|
261,704
|
Other operating
expense, net
|
6,179
|
|
1,863
|
|
10,122
|
|
676
|
Impairment
charges
|
—
|
|
871
|
|
—
|
|
22,676
|
Depreciation and
amortization
|
57,699
|
|
49,871
|
|
186,409
|
|
152,352
|
Share-based
compensation
|
4,987
|
|
5,124
|
|
15,134
|
|
16,391
|
Restructuring and
other costs1
|
834
|
|
(452)
|
|
20,994
|
|
11,097
|
Adjusted
EBITDA
|
$
139,216
|
|
$
137,947
|
|
$
345,229
|
|
$
370,915
|
|
|
1
|
Restructuring and other
costs during the nine months ended September 30, 2023 and 2022
include liabilities of $19.0 million and $7.1 million,
respectively, recorded for the resolution of the matter related to
the investigation of the Company's former indirect,
non-wholly-owned subsidiary, Clear Media Limited.
|
Reconciliation of
Corporate Expenses to Adjusted Corporate
Expenses
|
|
|
Three Months
Ended September 30,
|
|
Nine Months
Ended September 30,
|
(in
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Corporate
expenses
|
$
(34,931)
|
|
$
(38,299)
|
|
$
(129,427)
|
|
$
(123,323)
|
Share-based
compensation
|
4,987
|
|
5,124
|
|
15,134
|
|
16,391
|
Restructuring and
other costs1
|
569
|
|
(806)
|
|
20,169
|
|
9,705
|
Adjusted Corporate
expenses
|
$
(29,375)
|
|
$
(33,981)
|
|
$
(94,124)
|
|
$
(97,227)
|
|
|
1
|
Restructuring and other
costs during the nine months ended September 30, 2023 and 2022
include liabilities of $19.0 million and $7.1 million,
respectively, recorded for the resolution of the matter related to
the investigation of the Company's former indirect,
non-wholly-owned subsidiary, Clear Media Limited.
|
Reconciliation of
Consolidated Net Loss to FFO and AFFO
|
|
|
Three Months
Ended September 30,
|
|
Nine Months
Ended September 30,
|
(in
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Consolidated net
loss
|
$
(262,818)
|
|
$
(38,780)
|
|
$
(334,819)
|
|
$
(193,826)
|
Depreciation and
amortization of real estate
|
50,352
|
|
49,067
|
|
177,986
|
|
151,585
|
Net loss on
disposition of real estate (excludes
condemnation proceeds)1
|
202,572
|
|
1,126
|
|
98,093
|
|
7,082
|
Impairment of real
estate
|
—
|
|
871
|
|
—
|
|
22,676
|
Adjustment for
unconsolidated affiliates and
non-controlling interests
|
(819)
|
|
(1,479)
|
|
(1,991)
|
|
(3,164)
|
Funds From
Operations (FFO)
|
(10,713)
|
|
10,805
|
|
(60,731)
|
|
(15,647)
|
Less: FFO from
discontinued operations
|
(10,337)
|
|
(13,542)
|
|
(47,672)
|
|
(20,546)
|
FFO from continuing
operations
|
(376)
|
|
24,347
|
|
(13,059)
|
|
4,899
|
Capital
expenditures–maintenance
|
(10,638)
|
|
(12,438)
|
|
(32,867)
|
|
(27,457)
|
Straight-line rent
effect
|
1,902
|
|
(751)
|
|
4,113
|
|
1,063
|
Depreciation and
amortization of non-real
estate
|
7,574
|
|
7,474
|
|
22,085
|
|
23,430
|
Gain on extinguishment
of debt
|
(3,817)
|
|
—
|
|
(3,817)
|
|
—
|
Amortization of
deferred financing costs and
discounts
|
2,994
|
|
2,824
|
|
8,788
|
|
8,381
|
Share-based
compensation
|
4,987
|
|
5,124
|
|
15,134
|
|
16,391
|
Deferred
taxes
|
(3,074)
|
|
(22,419)
|
|
(18,464)
|
|
(3,938)
|
Restructuring and
other costs2
|
834
|
|
(452)
|
|
20,994
|
|
11,097
|
Transaction
costs
|
5,311
|
|
317
|
|
6,707
|
|
9,611
|
Foreign exchange
transaction loss (gain)
|
13,735
|
|
28,753
|
|
(7,445)
|
|
62,967
|
Other
items3
|
5,180
|
|
1,085
|
|
7,638
|
|
1,317
|
Adjusted Funds From
Operations (AFFO)
|
$
24,612
|
|
$
33,864
|
|
$
9,807
|
|
$
107,761
|
|
|
1
|
Net loss on disposition
of real estate for the three and nine months ended
September 30, 2023 includes a loss of $200.6 million
recognized upon classification of the business in France as held
for sale. During the nine months ended September 30, 2023,
this was partially offset by gains of $96.4 million and
$11.2 million from the sales of the former businesses in
Switzerland and Italy, respectively.
|
2
|
Restructuring and other
costs during the nine months ended September 30, 2023 and 2022
include liabilities of $19.0 million and $7.1 million,
respectively, recorded for the resolution of the matter related to
the investigation of the Company's former indirect,
non-wholly-owned subsidiary, Clear Media Limited.
|
3
|
Other items for the
three and nine months ended September 30, 2023 include
expenses related to the CCOH 9.000% Senior Secured Notes issuance
and Term Loan Facility prepayment in the third quarter of
2023.
|
Reconciliation of
Loss from Continuing Operations Guidance1 to Adjusted
EBITDA Guidance1
|
|
|
Full Year of
2023
|
(in
millions)
|
Low
|
|
High
|
Loss from continuing
operations
|
$
(190)
|
|
$
(172)
|
Adjustments:
|
|
|
|
Income tax benefit
attributable to continuing operations
|
(7)
|
|
(7)
|
Other income,
net
|
(3)
|
|
(5)
|
Gain on extinguishment
of debt
|
(4)
|
|
(4)
|
Interest expense,
net
|
421
|
|
427
|
Other operating
expense, net
|
13
|
|
13
|
Depreciation and
amortization
|
248
|
|
248
|
Share-based
compensation
|
20
|
|
20
|
Restructuring and
other costs
|
22
|
|
22
|
Adjusted
EBITDA
|
$
520
|
|
$
542
|
|
|
1
|
Guidance excludes
movements in FX
|
Reconciliation of
Loss from Continuing Operations Guidance1 to AFFO
Guidance1
|
|
|
Full Year of
2023
|
(in
millions)
|
Low
|
|
High
|
Loss from continuing
operations
|
$
(190)
|
|
$
(172)
|
Depreciation and
amortization of real estate
|
216
|
|
216
|
Net loss on
disposition of real estate (excludes condemnation
proceeds)
|
8
|
|
8
|
Adjustment for
unconsolidated affiliates and non-controlling interests
|
(3)
|
|
(3)
|
FFO from continuing
operations
|
31
|
|
49
|
Capital
expenditures–maintenance
|
(43)
|
|
(46)
|
Straight-line rent
effect
|
5
|
|
5
|
Depreciation and
amortization of non-real estate
|
32
|
|
32
|
Gain on extinguishment
of debt
|
(4)
|
|
(4)
|
Amortization of
deferred financing costs and discounts
|
12
|
|
12
|
Share-based
compensation
|
20
|
|
20
|
Deferred
taxes
|
(19)
|
|
(19)
|
Restructuring and
other costs
|
22
|
|
22
|
Foreign exchange
transaction gain
|
(7)
|
|
(9)
|
Other items
|
18
|
|
18
|
Adjusted Funds From
Operations (AFFO)
|
$
67
|
|
$
80
|
|
|
1
|
Guidance excludes
movements in FX.
|
Conference Call
The Company will host a conference call to discuss these results
on November 8, 2023 at 8:30 a.m.
Eastern Time. The conference call number is 1-833-470-1428
and the access code is 485958. A live audio webcast of the
conference call will be available on the "Events and Presentations"
section of the Company's investor website
(investor.clearchannel.com). Approximately two hours after the live
conference call, a replay of the webcast will be available for a
period of 30 days on the "Events and Presentations" section of the
Company's investor website.
About Clear Channel Outdoor Holdings, Inc.
Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) is at the
forefront of driving innovation in the out-of-home advertising
industry. Our dynamic advertising platform is broadening the pool
of advertisers using our medium through the expansion of digital
billboards and displays and the integration of data analytics and
programmatic capabilities that deliver measurable campaigns that
are simpler to buy. By leveraging the scale, reach and flexibility
of our diverse portfolio of assets, we connect advertisers with
millions of consumers every month across more than 330,000 print
and digital displays in 19 countries, excluding businesses held for
sale.
For further information, please contact:
Investors:
Eileen McLaughlin
Vice President - Investor Relations
(646) 355-2399
InvestorRelations@clearchannel.com
Cautionary Statement Concerning Forward-Looking
Statements
Certain statements in this earnings release constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause the actual results, performance or
achievements of Clear Channel Outdoor Holdings, Inc. and its
subsidiaries (the "Company") to be materially different from any
future results, performance, achievements, guidance, goals and/or
targets expressed or implied by such forward-looking statements.
The words "guidance," "believe," "expect," "anticipate,"
"estimate," "forecast," "goals," "targets" and similar words and
expressions are intended to identify such forward-looking
statements. In addition, any statements that refer to expectations
or other characterizations of future events or circumstances, such
as statements about our guidance, outlook, long-term forecast,
goals or targets; our business plans and strategies; our
expectations about the timing, closing, satisfaction of closing
conditions, use of proceeds and benefits of the sales of our
European businesses as well as expectations about certain markets
and strategic review processes; industry and market trends; and our
liquidity, are forward-looking statements. These statements
are not guarantees of future performance and are subject to certain
risks, uncertainties and other factors, some of which are beyond
our control and are difficult to predict.
Various risks that could cause future results to differ from
those expressed by the forward-looking statements included in this
earnings release include, but are not limited to: the difficulty,
cost and time required to implement our strategy, including
optimizing our portfolio, and the fact that we may not realize the
anticipated benefits therefrom; the delay or failure to satisfy the
conditions to divest our business in Spain; the risk that indemnities from certain
transactional counterparties will not be sufficient to insure us
against the full amount of certain liabilities; our inability to
complete the sales of our Europe-North segment businesses; our
inability to complete any strategic transaction with respect to our
Latin American businesses; the impact of future dispositions,
acquisitions and other strategic transactions; continued economic
uncertainty, an economic slowdown or a recession; financial and
industry conditions such as volatility in the U.S. and global
banking market; our ability to service our debt obligations and to
fund our operations, business strategy and capital expenditures;
the impact of our substantial indebtedness, including the effect of
our leverage on our financial position and earnings; the impact of
our liquidity strategy, including open market repurchases of
outstanding notes; our ability to obtain and renew key contracts
with municipalities, transit authorities and private landlords;
competition; technological changes and innovations; regulations and
consumer concerns regarding privacy and data protection; a breach
of our information security measures; legislative or regulatory
requirements; restrictions on out-of-home advertising of certain
products; environmental, health, safety and land use laws and
regulations, as well as various actual and proposed environmental,
social and governance policies and regulations; third-party claims
of intellectual property infringement, misappropriation or other
violation against us or our suppliers; the risk that indemnities
from iHeartMedia, Inc. will not be sufficient to insure us against
the full amount of certain liabilities; risks of doing business in
foreign countries, including the impact of geopolitical events such
as the wars in Ukraine and
Israel; fluctuations in exchange
rates and currency values; volatility of our stock price; the
impacts on our stock price as a result of future sales of common
stock, or the perception thereof, and dilution resulting from
additional capital raised through the sale of common stock or other
equity-linked instruments; our ability to continue to comply with
the applicable listing standards of the New York Stock Exchange;
the restrictions contained in the agreements governing our
indebtedness limiting our flexibility in operating our business;
the effect of analyst or credit ratings downgrades; our dependence
on our management team and other key individuals; continued
scrutiny and changing expectations from investors, lenders,
customers, government regulators and other stakeholders; and
certain other factors set forth in our other filings with the SEC.
You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date stated,
or if no date is stated, as of the date of this earnings release.
Other key risks are described in the section entitled "Item 1A.
Risk Factors" of the Company's reports filed with the SEC,
including the Company's Annual Report on Form 10-K for the year
ended December 31, 2022. The Company does not undertake any
obligation to publicly update or revise any forward-looking
statements because of new information, future events or
otherwise.
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SOURCE Clear Channel Outdoor Holdings, Inc.