Clear Channel Outdoor Holdings, Inc. · NYSE:CCO
Clear Channel Outdoor — Q1 2024 Earnings Presentation
31 slides from Clear Channel Outdoor's earnings presentation, May 9, 2024
Slide 1: Clear Channel Outdoor Holdings 2024 First Quarter Results
Clear Channel Outdoor Holdings 2024 First Quarter Results May 9, 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
Slide 3: PositiveNews
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Slide 4: Overview
Overview 1Q 2024 Revenue • 1Q 2024 Consolidated Revenue of $478m excluding movements in FX rates, up 9.3% • Record first-quarter revenue – America*, Airports and Europe-North Strategic Initiatives • Enhancing profitability by focusing on higher-margin U.S. markets and integrating technology • Americ
Slide 5: Key financial highlights
Key financial highlights 1Q 2024: 1 • Revenue : $482 million (up 10.1%) 2 • Up 9.3% excluding movements in FX 1 • Loss from continuing operations : $89 million (down 4.3%) 3 • Consolidated net loss : $89 million (up 151.5%) 1,4 • Adjusted EBITDA : $97 million (up 53.6%) 2 • Up 53.0% excluding moveme
Slide 6: Financial results: America
Financial results: America Three Months Ended March 31, 3 (USD, in millions) 2024 2023 Variance Revenue $ 250 $ 236 5.8 % 1 Direct operating and SG&A expenses 155 155 —% 2 Segment Adjusted EBITDA 95 81 17.3 % 1 Includes restructuring and other costs that are excluded from Segment Adjusted EBITDA. 2
Slide 7: Financial results: Airports
Financial results: Airports Three Months Ended March 31, 3 (USD, in millions) 2024 2023 Variance Revenue $ 77 $ 54 43.0 % 1 Direct operating and SG&A expenses 58 48 21.9 % 2 Segment Adjusted EBITDA 19 6 204.6 % 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 March 31, Excluding movements in FX 3 3 (USD, in millions) 2024 2023 Variance 2024 2023 Variance Revenue $ 139 $ 129 8.5 % $ 136 $ 129 5.9 % 1 Direct operating and SG&A expenses 124 122 2.2 % 121 122 (0.1)% 2 Segment Adjusted EBITDA 14 7 99.7 % 14 7
Slide 9: Clear Channel International B.V. Statements of Income (Loss)
Clear Channel International B.V. Statements of Income (Loss) Three Months Ended March 31, (USD, in millions) 2024 2023 Revenue $ 140 $ 134 Operating expenses: (1) Direct operating expenses 97 100 (1) Selling, general and administrative expenses 29 27 (1) Corporate expenses 9 13 Depreciation and amor
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 March 31, (USD, in millions) 2024 2023 $ Change America $ 9 $ 17 $ (8) Airp
Slide 11: Capital structure and select balance sheet metrics
Capital structure and select balance sheet metrics (USD, in millions) March 31, 2024 December 31, 2023 $ Change (1) Cash and Cash Equivalents $ 193 $ 252 $ (58) Availability under Credit Facilities 196 234 (38) (2) Liquidity $ 389 $ 486 $ (97) (3) Debt $ 5,652 $ 5,632 $ 20 Weighted Average Cost of D
Slide 12: Guidance
Guidance Guidance as of % change from prior May 9, 2024 year (USD, in millions) Low High Low High 2Q 2024: 1,2 Consolidated Revenue $ 547 $ 572 3% 8% America 290 300 1 % 4 % Airports 82 87 15 % 22 % 1 Europe-North 155 165 3 % 10 % Full year 2024: 1,2 Consolidated Revenue $ 2,200 $ 2,260 3% 6% Americ
Slide 13: Appendix
Appendix 13
Slide 14: Announcements
Announcements CCOH • Clear Channel Outdoor Holdings, Inc. ("CCOH") issued $865 million aggregate principal amount of 7.875% Senior Secured Notes Due 2030 on March 18, 2024 and used a portion of the proceeds therefrom to prepay $835 million of borrowings outstanding under its Term Loan Facility. At t
Slide 15: Environmental and social initiatives
Environmental and social initiatives America • Clear Channel Outdoor America celebrated Black History Month with "Celebrating Creators," a digital out-of-home campaign across our nationwide digital inventory throughout February. The campaign shined a spotlight on influential African Americans in mus
Slide 16: Environmental and social initiatives
Environmental and social initiatives Europe-North • Clear Channel Belgium announced a collaboration with 'Welcome Talent' to drive positive change in the communication industry. Beyond the awareness campaign, Clear Channel Belgium welcomed two new trainees for a three-month mentorship program, helpi
Slide 17: Financial results: Other
Financial results: Other Three Months Ended March 31, Excluding movements in FX 2 2 (USD, in millions) 2024 2023 Variance 2024 2023 Variance Revenue $ 16 $ 19 (17.9)% $ 15 $ 19 (20.0)% Direct operating and SG&A expenses 17 19 (11.2)% 16 19 (12.3)% 1 Segment Adjusted EBITDA — — (45.8)% — — (92.1)% 1
Slide 18: Rent abatements
Rent abatements 2024 2023 (USD, in millions) Q1 Q1 Q2 Q3 Q4 1 Consolidated $ 4.8 $ 7.3 $ 7.0 $ 4.4 $ 7.3 America — 1.2 2.1 1.6 1.6 Airports 4.8 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 due to rent abatements. Consolid
Slide 19: Items impacting comparability
Items impacting comparability (USD, in millions) Consolidated FX Impact: Q1 2024 Revenue $ 3.7 Direct Operating and SG&A Expenses 3.0 Adjusted EBITDA 0.4 AFFO 0.5 19
Slide 20: 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 21: Segment operating results
Segment operating results (In thousands) Three Months Ended March 31, 2024 2023 Variance Revenue America $ 249,777 $ 236,049 5.8 % Airports 76,926 53,789 43.0 % Europe-North 139,393 128,503 8.5 % Other 15,656 19,079 (17.9) % Consolidated Revenue $ 481,752 $ 437,420 10.1 % 1 Direct Operating and SG&A
Slide 22: Segment operating results excluding movements in FX
Segment operating results excluding movements in FX (In thousands) Three Months Ended March 31, 2024 2023 Variance 1 Revenue Excluding Movements in FX America $ 249,777 $ 236,049 5.8 % Airports 76,926 53,789 43.0 % Europe-North 136,086 128,503 5.9 % Other 15,266 19,079 (20.0) % Consolidated Revenue
Slide 23: Reconciliation of Loss from continuing operations to Adjusted EBITDA
Reconciliation of Loss from continuing operations to Adjusted EBITDA Three Months Ended (in thousands) March 31, 2024 2023 Loss from continuing operations $ (88,663) $ (92,605) Adjustments: Income tax (benefit) expense attributable to continuing operations 267 (10,501) Other (income) expense, net 8,
Slide 24: Reconciliation of Corporate expenses to Adjusted Corporate expenses
Reconciliation of Corporate expenses to Adjusted Corporate expenses Three Months Ended (in thousands) March 31, 2024 2023 Corporate expenses $ (40,126) $ (36,180) Share-based compensation 5,277 4,031 Restructuring and other costs (reversals) 2,484 (55) Adjusted Corporate expenses $ (32,365) $ (32,20
Slide 25: Prior Year Corporate Expenses Reconciliation
Prior Year Corporate Expenses Reconciliation Three Months Ended March 31, (in thousands) 2023 Corporate expenses, as originally reported $ 34,541 1 Reclassified from Europe-South SG&A to Corporate 1,874 Reclassified from Corporate to Discontinued Operations (235) Corporate expenses, after applicatio
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) March 31, 2024 2023 Consolidated net loss $ (89,083) $ (35,422) Depreciation and amortization of real estate 46,806 64,754 1 Net gain on disposition of real estate (excludes condemnation proceeds) (5,588) (94,2
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 $ (150) $ (120) Adjustments: Income tax expense attributable to continuing operations 4 4 Other expense, net 6 6 Loss on extinguishment of debt 5 5 In
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 $ (150) $ (120) Depreciation and amortization of real estate 184 184 Net gain on disposition of real estate (excludes condemnation proceeds) (1) (1) Adjustment f
Slide 29: Calculation of First Lien Leverage Ratio
Calculation of First Lien Leverage Ratio First Lien Leverage Ratio: • 5.38x as of March 31, 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: March 31, (In mi
Slide 30: Reconciliation of Bank EBITDA to Operating income and Net cash used
Reconciliation of Bank EBITDA to Operating income from continuing operations and Net cash used for operating activities Four Quarters Ended March 31, (In millions) 2024 EBITDA (as defined by the Senior Secured Credit Agreement) $ 576.5 Depreciation and amortization, impairment charges and share-base
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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