Clear Channel Outdoor Holdings, Inc. · NYSE:CCO
Clear Channel Outdoor — Q2 2024 Earnings Presentation
32 slides from Clear Channel Outdoor's earnings presentation, Aug 7, 2024
Slide 1: Clear Channel Outdoor Holdings 2024 Second Quarter Results
Clear Channel Outdoor Holdings 2024 Second Quarter Results August 7, 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: Let Freedom Ring!
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Slide 4: Overview
Overview • 2Q 2024 Consolidated Revenue of $559m, up 5.4% excluding 2Q 2024 Revenue movements in FX rates 1 • Growth in America, Airports and Europe-North America • Growth in digital, programmatic and our website • Benefiting from data analytics, expanded sales team and direct business Airports • Ai
Slide 5: Key financial highlights
Key financial highlights 2Q 2024: 1 • Revenue : $559 million (up 5.2%) 2 • Up 5.4% excluding movements in FX 1 • Loss from continuing operations : $48 million (up 24.5%) 3 • Consolidated net loss : $39 million (up 5.6%) 1,4 • Adjusted EBITDA : $143 million (down 0.1%) 2 • Down 0.1% excluding movemen
Slide 6: Financial results: America
Financial results: America Three Months Ended June 30, 3 (USD, in millions) 2024 2023 Variance Revenue $ 290 $ 288 0.9 % 1 Direct operating and SG&A expenses 163 158 3.4 % 2 Segment Adjusted EBITDA 127 130 (2.0)% 1 Includes restructuring and other costs that are excluded from Segment Adjusted EBITDA
Slide 7: Financial results: Airports
Financial results: Airports Three Months Ended June 30, 3 (USD, in millions) 2024 2023 Variance Revenue $ 86 $ 71 21.4 % 1 Direct operating and SG&A expenses 67 55 22.7 % 2 Segment Adjusted EBITDA 19 16 16.8 % 1 Includes restructuring and other costs that are excluded from Segment Adjusted EBITDA. 2
Slide 8: Financial results: Europe-North
Financial results: Europe-North Three Months Ended June 30, Excluding movements in FX 3 3 (USD, in millions) 2024 2023 Variance 2024 2023 Variance Revenue $ 165 $ 150 9.9 % $ 165 $ 150 10.1 % 1 Direct operating and SG&A expenses 132 124 6.5 % 132 124 6.7 % 2 Segment Adjusted EBITDA 33 26 24.5 % 33 2
Slide 9: Clear Channel International B.V. Statements of Income
Clear Channel International B.V. Statements of Income Three Months Ended June 30, (USD, in millions) 2024 2023 Revenue $ 165 $ 155 Operating expenses: (1) Direct operating expenses 104 101 (1) Selling, general and administrative expenses 29 27 (1) Corporate expenses 11 11 Depreciation and amortizati
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 June 30, (USD, in millions) 2024 2023 $ Change America $ 13 $ 19 $ (5) Air
Slide 11: Capital structure and select balance sheet metrics
Capital structure and select balance sheet metrics (USD, in millions) June 30, 2024 March 31, 2024 $ Change (1) Cash and Cash Equivalents $ 189 $ 193 $ (4) Availability under Credit Facilities 215 196 19 (2) Liquidity $ 404 $ 389 $ 15 Debt $ 5,655 $ 5,652 $ 3 Weighted Average Cost of Debt 7.4 % 7.4
Slide 12: Guidance
Guidance Guidance as of % change from prior August 7, 2024 year (USD, in millions) Low High Low High 3Q 2024: 1,2 Consolidated Revenue $ 542 $ 567 3% 8% America 287 297 3 % 7 % Airports 79 84 5 % 11 % 1 Europe-North 157 167 5 % 12 % Full year 2024: 1,2 Consolidated Revenue $ 2,215 $ 2,275 4% 7% Amer
Slide 13: Appendix
Appendix 13
Slide 14: Environmental and social initiatives
Environmental and social initiatives America • Partnered with Maricopa County, the Maricopa Association of Governments, and the City of Phoenix to display critical local heat relief resources on more than 100 digital billboards across the Valley. • Celebrated Asian American and Pacific Islander (AAP
Slide 15: Environmental and social initiatives
Environmental and social initiatives Europe-North • Clear Channel Belgium won the AMMA Award for the Platform for Art, with Artcrush Gallery and Mathieu France, an initiative integrating art into public spaces and transforming ad media into works of art accessible to all. • Clear Channel Spain launc
Slide 16: Other Announcements
Other Announcements Europe-North • Clear Channel U.K. (win): 10-year bus contract with Essex County Council. • Clear Channel Poland (win): 5-year partnership with Shell. 16
Slide 17: Financial results: Other
Financial results: Other Three Months Ended June 30, Excluding movements in FX 2 2 (USD, in millions) 2024 2023 Variance 2024 2023 Variance Revenue $ 17 $ 22 (22.2)% $ 18 $ 22 (19.2)% Direct operating and SG&A expenses 18 19 (4.2)% 19 19 0.1 % 1 Segment Adjusted EBITDA — 4 — 4 1 Calculated as Revenu
Slide 18: Rent abatements
Rent abatements 2024 2023 (USD, in millions) Q1 Q2 Q1 Q2 Q3 Q4 1 Consolidated $ 4.8 $ 0.8 $ 7.3 $ 7.0 $ 4.4 $ 7.3 America — — 1.2 2.1 1.6 1.6 Airports 4.8 0.8 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 aba
Slide 19: Items impacting comparability
Items impacting comparability (USD, in millions) Consolidated FX Impact: Q2 2024 Revenue $ (1.0) Direct Operating and SG&A Expenses (1.1) Adjusted EBITDA — AFFO — 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 June 30, 2024 2023 Variance Revenue America $ 290,207 $ 287,517 0.9 % Airports 86,219 71,045 21.4 % Europe-North 164,735 149,909 9.9 % Other 17,380 22,349 (22.2) % Consolidated Revenue $ 558,541 $ 530,820 5.2 % 1 Direct Operating and SG&A E
Slide 22: Segment operating results excluding movements in FX
Segment operating results excluding movements in FX (In thousands) Three Months Ended June 30, 2024 2023 Variance 1 Revenue Excluding Movements in FX America $ 290,207 $ 287,517 0.9 % Airports 86,219 71,045 21.4 % Europe-North 165,079 149,909 10.1 % Other 18,059 22,349 (19.2) % Consolidated Revenue
Slide 23: Europe-North results and growth for trailing twelve months
Europe-North results and growth for trailing twelve months Trailing Twelve-Month Results: Twelve Months Ended Three Months Ended June 30, June 30, March 31, December 31, September 30, (USD, in thousands) 2024 2024 2024 2023 2023 Europe-North Revenue $ 645,273 $ 164,735 $ 139,393 $ 191,779 $ 149,366
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) June 30, 2024 2023 Loss from continuing operations $ (48,313) $ (38,806) Adjustments: Income tax benefit attributable to continuing operations (2,458) (1,277) Other (income) expense, net 98 (12,211
Slide 25: Reconciliation of Corporate expenses to Adjusted Corporate expenses
Reconciliation of Corporate expenses to Adjusted Corporate expenses Three Months Ended (in thousands) June 30, 2024 2023 Corporate expenses $ (44,704) $ (58,316) Share-based compensation 7,525 6,116 1 Restructuring and other costs 1,382 19,655 Adjusted Corporate expenses $ (35,797) $ (32,545) 1 Rest
Slide 26: Prior Year Corporate Expenses Reconciliation
Prior Year Corporate Expenses Reconciliation Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2023 2023 Corporate expenses, as originally reported $ 57,557 $ 92,098 1 Reclassified from Europe-South SG&A to Corporate 1,000 2,874 Reclassified from Corporate to Discontinued Operatio
Slide 27: Reconciliation of Consolidated net loss to FFO and AFFO
Reconciliation of Consolidated net loss to FFO and AFFO Three Months Ended (in thousands) June 30, 2024 2023 Consolidated net loss $ (38,634) $ (36,579) Depreciation and amortization of real estate 46,509 62,880 Net loss (gain) 1 on disposition of real estate (excludes condemnation proceeds) 1,930 (
Slide 28: 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 $ (160) $ (135) Adjustments: Income tax expense attributable to continuing operations 1 1 Other expense, net 7 7 Loss on extinguishment of debt 5 5 In
Slide 29: 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 $ (160) $ (135) Depreciation and amortization of real estate 184 184 Net gain on disposition of real estate (excludes condemnation proceeds) (2) (2) Impairment o
Slide 30: Calculation of First Lien Leverage Ratio
Calculation of First Lien Leverage Ratio First Lien Leverage Ratio: • 5.39x as of June 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: June 30, (In mill
Slide 31: 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 June 30, (In millions) 2024 EBITDA (as defined by the Senior Secured Credit Agreement) $ 576.4 Depreciation and amortization, impairment charges and share-ba
Slide 32: 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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