Clear Channel Outdoor Holdings, Inc. · NYSE:CCO
Clear Channel Outdoor — Q3 2024 Earnings Presentation
31 slides from Clear Channel Outdoor's earnings presentation, Oct 31, 2024
Slide 1: Clear Channel Outdoor Holdings 2024 Third Quarter Results
Clear Channel Outdoor Holdings 2024 Third Quarter Results October 31, 2024
Slide 2: Safe harbor statement and other information
Safe harbor statement and other information Forward-Looking Statements Certain statements in this presentation 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, uncertai
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Slide 4: Overview
Overview 3Q 2024 Results • Consolidated Revenue of $559m, up 5.7% excluding 1 movements in FX rates • Growth in America, Airports and Europe-North revenue 2,3 • AFFO exceeded discretionary capex America • Growth across all regions in 3Q with strength in National advertising • Won new large roadside
Slide 5: Key financial highlights
Key financial highlights 3Q 2024: 1 • Revenue : $559 million (up 6.1%) 2 • Up 5.7% excluding movements in FX 1 • Loss from continuing operations : $32 million (down 38.3%) 3 • Consolidated net loss : $32 million (down 88.0%) 1,4 • Adjusted EBITDA : $143 million (up 2.6%) 2 • Up 1.9% excluding moveme
Slide 6: Financial results: America
Financial results: America Three Months Ended September 30, 3 (USD, in millions) 2024 2023 Variance Revenue $ 293 $ 279 5.0 % 1 Direct operating and SG&A expenses 165 157 4.5 % 2 Segment Adjusted EBITDA 128 121 5.8 % 1 Includes restructuring and other costs that are excluded from Segment Adjusted EB
Slide 7: Financial results: Airports
Financial results: Airports Three Months Ended September 30, 3 (USD, in millions) 2024 2023 Variance Revenue $ 82 $ 76 9.0 % 1 Direct operating and SG&A expenses 65 60 8.9 % 2 Segment Adjusted EBITDA 17 16 9.0 % 1 Includes restructuring and other costs that are excluded from Segment Adjusted EBITDA.
Slide 8: Financial results: Europe-North
Financial results: Europe-North Three Months Ended September 30, Excluding movements in FX 3 3 (USD, in millions) 2024 2023 Variance 2024 2023 Variance Revenue $ 166 $ 149 11.4 % $ 162 $ 149 8.6 % 1 Direct operating and SG&A expenses 139 121 14.5 % 136 121 12.0 % 2 Segment Adjusted EBITDA 28 28 (0.5
Slide 9: Clear Channel International B.V. Statements of Income (Loss)
Clear Channel International B.V. Statements of Income (Loss) Three Months Ended September 30, (USD, in millions) 2024 2023 Revenue $ 166 $ 154 Operating expenses: (1) Direct operating expenses 108 98 (1) Selling, general and administrative expenses 31 27 (1) Corporate expenses 11 10 Depreciation and
Slide 10: Capital expenditures
Capital expenditures Capital expenditures primarily relate to construction and sustaining activities for billboards, street furniture and other out- of-home advertising displays, including digital displays. Three Months Ended September 30, (USD, in millions) 2024 2023 $ Change America $ 13 $ 16 $ (3
Slide 11: Capital structure and select balance sheet metrics
Capital structure and select balance sheet metrics (USD, in millions) September 30, 2024 June 30, 2024 $ Change (1) Cash and Cash Equivalents $ 201 $ 189 $ 12 (2) Availability under Credit Facilities 175 215 (40) (3) Liquidity $ 376 $ 404 $ (29) Debt $ 5,657 $ 5,655 $ 3 Weighted Average Cost of Debt
Slide 12: Guidance
Guidance Guidance as of % change from prior October 31, 2024 year (USD, in millions) Low High Low High 4Q 2024: 1,2 Consolidated Revenue $ 628 $ 653 (1)% 3% America 308 318 3 % 7 % Airports 111 116 — % 4 % 1 Europe-North 185 195 (4) % 2 % Full year 2024: 1,2 Consolidated Revenue $ 2,222 $ 2,247 4% 6
Slide 13: Appendix
Appendix 13
Slide 14: Announcements
Announcements America • Clear Channel Outdoor America has been awarded a large 15-year contract for roadside advertising assets controlled by the New York MTA. The contract is effective on November 1, 2024 and substantially expands our footprint in the New York tri-state area, elevating our ability
Slide 15: Announcements
Announcements Europe-North • Clear Channel Norway (win): Acquired UIP, adding the solution provider for urban development and micromobility to its portfolio. • Clear Channel Netherlands (win): 5-year contract with RET in Rotterdam, with an option to extend by 1 year. 15
Slide 16: Environmental and social initiatives
Environmental and social initiatives America • Clear Channel Outdoor celebrated Hispanic Heritage Month with a vibrant digital out-of- home campaign, "Shaping our future." This campaign highlighted the remarkable success of the Hispanic community in helping to drive American prosperity through a uni
Slide 17: Environmental and social initiatives
Environmental and social initiatives Europe-North • Clear Channel Poland invited service users of the children's charity and Platform for Good partner, Joanna Radziwill Foundation, and their caregivers to the Warsaw office. The day included tours, insights and opportunities to meet the team followed
Slide 18: Financial results: Other
Financial results: Other Three Months Ended September 30, Excluding movements in FX 2 2 (USD, in millions) 2024 2023 Variance 2024 2023 Variance Revenue $ 17 $ 23 (24.4)% $ 19 $ 23 (16.5)% Direct operating and SG&A expenses 16 20 (20.2)% 17 20 (12.2)% 1 Segment Adjusted EBITDA 2 3 (40.7)% 2 3 (33.7)
Slide 19: Rent abatements
Rent abatements 2024 2023 (USD, in millions) Q1 Q2 Q3 Q1 Q2 Q3 Q4 1 Consolidated $ 4.8 $ 0.8 0.3 $ 7.3 $ 7.0 $ 4.4 $ 7.3 America — — — 1.2 2.1 1.6 1.6 Airports 4.8 0.8 0.2 5.5 4.5 2.7 5.8 Europe-North — — — 0.5 0.3 0.2 — 1 Represents reductions of site lease expense in lease and non-lease contracts
Slide 20: Items impacting comparability
Items impacting comparability (USD, in millions) Consolidated FX Impact: Q3 2024 Revenue $ 2.3 Direct Operating and SG&A Expenses 1.4 Adjusted EBITDA 0.9 AFFO 0.9 20
Slide 21: Non-GAAP financial information
Non-GAAP financial information In order to provide a more comprehensive understanding of the information used by the Company's management team in financial and operational decision making, the Company supplements its GAAP consolidated financial statements with certain non-GAAP financial performance
Slide 22: Segment operating results
Segment operating results Three Months Ended (In thousands) September 30, 2024 2023 Variance Revenue America $ 292,821 $ 278,760 5.0 % Airports 82,331 75,558 9.0 % Europe-North 166,361 149,366 11.4 % Other 17,475 23,102 (24.4) % Consolidated Revenue $ 558,988 $ 526,786 6.1 % 1 Direct Operating and S
Slide 23: Segment operating results excluding movements in FX
Segment operating results excluding movements in FX Three Months Ended (In thousands) September 30, 2024 2023 Variance 1 Revenue Excluding Movements in FX America $ 292,821 $ 278,760 5.0 % Airports 82,331 75,558 9.0 % Europe-North 162,209 149,366 8.6 % Other 19,299 23,102 (16.5) % Consolidated Reven
Slide 24: Reconciliation of Loss from continuing operations to Adjusted EBITDA
Reconciliation of Loss from continuing operations to Adjusted EBITDA Three Months Ended (in thousands) September 30, 2024 2023 Loss from continuing operations $ (31,543) $ (51,082) Adjustments: Income tax benefit attributable to continuing operations (3,800) (244) Other expense, net 676 17,269 Gain
Slide 25: Reconciliation of Corporate expenses to Adjusted Corporate expenses
Reconciliation of Corporate expenses to Adjusted Corporate expenses Three Months Ended (in thousands) September 30, 2024 2023 Corporate expenses $ (40,948) $ (34,931) Share-based compensation 6,810 4,987 Restructuring and other costs 1,351 569 Adjusted Corporate expenses $ (32,787) $ (29,375) 25
Slide 26: Reconciliation of Consolidated net loss to FFO and AFFO
Reconciliation of Consolidated net loss to FFO and AFFO Three Months Ended (in thousands) September 30, 2024 2023 Consolidated net loss $ (31,556) $ (262,818) Depreciation and amortization of real estate 50,754 50,352 1 Net loss on disposition of real estate (excludes condemnation proceeds) 1,085 20
Slide 27: Reconciliation of Loss from continuing operations guidance to Adjusted EBITDA guidance
Reconciliation of Loss from continuing operations guidance to Adjusted EBITDA guidance (in millions) FY 2024 Low High Loss from continuing operations $ (165) $ (150) Adjustments: Income tax benefit attributable to continuing operations (4) (4) Other expense, net 9 10 Loss on extinguishment of debt 5
Slide 28: Reconciliation of Loss from continuing operations guidance to AFFO guidance
Reconciliation of Loss from continuing operations guidance to AFFO guidance (in millions) FY 2024 Low High Loss from continuing operations $ (165) $ (150) Depreciation and amortization of real estate 189 189 Net gain on disposition of real estate (excludes condemnation proceeds) (2) (2) Impairment o
Slide 29: Calculation of First Lien Leverage Ratio
Calculation of First Lien Leverage Ratio First Lien Leverage Ratio: • 5.34x as of September 30, 2024 (below covenant threshold of 7.1x) • Calculated by dividing first lien debt by EBITDA (as defined by the Senior Secured Credit Agreement) for the preceding four quarters First Lien Debt: September 30
Slide 30: Reconciliation of Bank EBITDA to Operating income and Net cash from operations
Reconciliation of Bank EBITDA to Operating income from continuing operations and Net cash provided by operating activities Four Quarters Ended September 30, (In millions) 2024 EBITDA (as defined by the Senior Secured Credit Agreement) $ 579.5 Depreciation and amortization, impairment charges and sha
Slide 31: About Clear Channel Outdoor Holdings, Inc.
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 bill
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