Clear Channel Outdoor Holdings, Inc. · NYSE:CCO
Clear Channel Outdoor — Q4 2023 Earnings Presentation
33 slides from Clear Channel Outdoor's earnings presentation, Feb 27, 2024
Slide 1: Clear Channel Outdoor Holdings 2023 Fourth Quarter Results
Clear Channel Outdoor Holdings 2023 Fourth Quarter Results February 26, 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: MLK Day 2024 Honoring the Dream
MLK DAY 2024 HONORING THE DREAM PEACE is POWER,
Slide 4: Overview
Overview • 4Q 2023 Consolidated Revenue of $623m excluding 4Q 2023 revenue movements in foreign exchange rates, up 10.8% • Exceeded guidance Trends • Strong performance from Airports and Europe-North • Improving business trends in America segment Strategic initiatives • Enhancing the profitability o
Slide 5: Key financial highlights
Key financial highlights 4Q 2023: 1 • Revenue : $632 million (up 12.4%) 2 • Up 10.8% excluding movements in FX 1 • Income from continuing operations : $25 million (down 76.2%) 3 • Consolidated net income : $26 million (down 73.9%) 1,4 • Adjusted EBITDA : $190 million (up 9.2%) 2 • Up 8.1% excluding
Slide 6: Financial results: America
Financial results: America Three Months Ended December 31, 3 (USD, in millions) 2023 2022 Variance Revenue $ 299 $ 297 0.5 % 1 Direct operating and SG&A expenses 163 162 0.4 % 2 Segment Adjusted EBITDA 136 135 0.6 % 1 Includes restructuring and other costs that are excluded from Segment Adjusted EBI
Slide 7: Financial results: Airports
Financial results: Airports Three Months Ended December 31, 3 (USD, in millions) 2023 2022 Variance Revenue $ 111 $ 77 44.3 % 1 Direct operating and SG&A expenses 81 56 44.8 % 2 Segment Adjusted EBITDA 30 21 42.7 % 1 Includes restructuring and other costs that are excluded from Segment Adjusted EBIT
Slide 8: Financial results: Europe-North
Financial results: Europe-North Three Months Ended December 31, Excluding movements in FX 3 3 (USD, in millions) 2023 2022 Variance 2023 2022 Variance Revenue $ 192 $ 163 17.8 % $ 185 $ 163 13.4 % 1 Direct operating and SG&A expenses 140 118 19.0 % 135 118 14.5 % 2 Segment Adjusted EBITDA 52 45 17.5
Slide 9: Clear Channel International B.V. Statements of Loss
Clear Channel International B.V. Statements of Loss Three Months Ended December 31, (USD, in millions) 2023 2022 Revenue $ 198 $ 169 Operating expenses: (1) Direct operating expenses 111 95 (1) Selling, general and administrative expenses 36 28 (1) Corporate expenses 14 12 Depreciation and amortizat
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 December 31, (USD, in millions) 2023 2022 $ Change America $ 24 $ 27 $ (4)
Slide 11: Capital structure and select balance sheet metrics
Capital structure and select balance sheet metrics (USD, in millions) December 31, 2023 September 30, 2023 $ Change (1),(2) Cash and Cash Equivalents $ 252 $ 313 $ (62) (3) Availability under Credit Facilities 234 218 16 (4) Liquidity $ 486 $ 531 $ (45) (1),(5) Debt $ 5,632 $ 5,629 $ 3 Weighted Aver
Slide 12: 2024 Guidance
2024 Guidance Guidance as of % change from prior February 26, 2024 year (USD, in millions) Low High Low High 1Q 2024: 1,2 Consolidated Revenue $ 465 $ 490 6% 12 % America 245 255 4 % 8 % Airports 74 79 38 % 47 % 1 Europe-North 130 140 1 % 9 % Full year 2024: 1,2 Consolidated Revenue $ 2,200 $ 2,260
Slide 13: Appendix
Appendix 13
Slide 14: Announcements
Announcements America and Airports: • Clear Channel Outdoor America partnered with Nevada-based Terrible Herbst, Inc. to provide brands with the unique opportunity to activate state-of-the-art digital out-of-home media campaigns across the street from this year’s Big Game at Allegiant Stadium in Las
Slide 15: Environmental and social initiatives
Environmental and social initiatives America & Airports • Clear Channel Outdoor America and Airports honored Dr. Martin Luther King, Jr. with the theme “Shifting the Cultural Climate through the Study and Practice of Kingian Nonviolence.” This digital out-of-home campaign ran across the Company's di
Slide 16: Environmental and social initiatives
Environmental and social initiatives Europe-North • Clear Channel Spain has partnered with Glocally for their client, Ecovidrio (a nonprofit dedicated to managing glass container waste in Spain), with an outreach campaign on street furniture digital screens in Spain educating the public on the glass
Slide 17: Revenue detail: America
Revenue detail: America Note: Percentages are calculated based on actual amounts. Due to rounding, totals may not equal the sum of the items in the chart above. 17
Slide 18: Revenue detail: Airports
Revenue detail: Airports Note: Percentages are calculated based on actual amounts. Due to rounding, totals may not equal the sum of the items in the chart above. 18
Slide 19: Financial results: Other
Financial results: Other Three Months Ended December 31, Excluding movements in FX 2 2 (USD, in millions) 2023 2022 Variance 2023 2022 Variance Revenue $ 31 $ 25 20.9 % $ 29 $ 25 13.8 % Direct operating and SG&A expenses 23 18 28.1 % 22 18 21.2 % 1 Segment Adjusted EBITDA 8 7 10.7 % 7 7 2.6 % 1 Calc
Slide 20: Rent abatements
Rent abatements 2023 2022 (USD, in millions) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total 1 Consolidated $ 7.3 $ 7.0 $ 4.4 $ 7.3 $ 26.0 $ 9.0 $ 13.6 $ 15.8 $ 13.0 $ 51.3 America 1.2 2.1 1.6 1.6 6.4 3.7 3.6 3.8 3.8 14.8 Airports 5.5 4.5 2.7 5.8 18.5 4.6 9.5 11.7 6.4 32.1 Europe-North 0.5 0.3 0.2 — 1.0 0.7 0.5
Slide 21: Items impacting comparability
Items impacting comparability (USD, in millions) Consolidated FX Impact: Q4 2023 Revenue $ 9.0 Direct Operating and SG&A Expenses 6.5 Adjusted EBITDA 2.0 AFFO 1.6 21
Slide 22: 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 23: Segment operating results
Segment operating results Three Months Ended (In thousands) December 31, 2023 2022 Variance Revenue America $ 298,520 $ 297,069 0.5 % Airports 111,213 77,095 44.3 % Europe-North 191,779 162,781 17.8 % Other 30,602 25,302 20.9 % Consolidated Revenue $ 632,114 $ 562,247 12.4 % 1 Direct Operating and S
Slide 24: Segment operating results excluding movements in FX
Segment operating results excluding movements in FX Three Months Ended (In thousands) December 31, 2023 2022 Variance 1 Revenue Excluding Movements in FX America $ 298,520 $ 297,069 0.5 % Airports 111,213 77,095 44.3 % Europe-North 184,559 162,781 13.4 % Other 28,791 25,302 13.8 % Consolidated Reven
Slide 25: Reconciliation of Income from continuing operations to Adjusted EBITDA
Reconciliation of Income from continuing operations to Adjusted EBITDA Three Months Ended (in thousands) December 31, 2023 2022 Income from continuing operations $ 25,386 $ 106,496 Adjustments: Income tax benefit attributable to continuing operations (5,195) (79,947) Other income, net (2,681) (23,20
Slide 26: Reconciliation of Corporate expenses to Adjusted Corporate expenses
Reconciliation of Corporate expenses to Adjusted Corporate expenses Three Months Ended (in thousands) December 31, 2023 2022 Corporate expenses $ (42,897) $ (38,529) Share-based compensation 5,196 4,121 Restructuring and other costs 1,168 258 Adjusted Corporate expenses $ (36,533) $ (34,150) 26
Slide 27: Prior Year Corporate Expenses Reconciliation
Prior Year Corporate Expenses Reconciliation (in thousands) Q4 2022 FY 2022 Corporate expenses, as originally reported $ 37,756 $ 157,915 1 Reclassified from Europe-South SG&A to Corporate 938 4,688 Reclassified from Corporate to Discontinued Operations (165) (751) Corporate expenses, after applicat
Slide 28: Reconciliation of Consolidated net income to FFO and AFFO
Reconciliation of Consolidated net income to FFO and AFFO Three Months Ended (in thousands) December 31, 2023 2022 Consolidated net income $ 26,003 $ 99,438 Depreciation and amortization of real estate 48,738 66,271 1 Net loss on disposition of real estate (excludes condemnation proceeds) 10,229 984
Slide 29: 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 $ (131) $ (101) Adjustments: Income tax expense attributable to continuing operations 9 9 Other expense, net 1 1 Interest expense, net 422 427 Other o
Slide 30: 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 $ (131) $ (101) Depreciation and amortization of real estate 184 184 Net gain on disposal of real estate (excludes condemnation proceeds) (1) (1) Adjustment for
Slide 31: Calculation of First Lien Leverage Ratio
Calculation of First Lien Leverage Ratio First Lien Leverage Ratio: • 5.54x as of December 31, 2023 (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: December 31,
Slide 32: 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 December 31, (In millions) 2023 EBITDA (as defined by the Senior Secured Credit Agreement) $ 544.0 Depreciation and amortization, impairment charges and shar
Slide 33: 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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