Clear Channel Outdoor Holdings, Inc. · NYSE:CCO
Clear Channel Outdoor — Q3 2023 Earnings Presentation
34 slides from Clear Channel Outdoor's earnings presentation, Nov 8, 2023
Slide 1: Clear Channel Outdoor Holdings 2023 Third Quarter Results
Clear Channel Outdoor Holdings 2023 Third Quarter Results November 8, 2023
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: 3
3
Slide 4: Overview
Overview • 3Q 2023 Consolidated Revenue of $517m excluding 3Q 2023 revenue movements in foreign exchange rates ("FX") • Within guidance after excluding Europe-South • Up 2.7% excluding movements in FX Trends • Improving, expect better performance in fourth quarter in the U.S. Strategic initiatives •
Slide 5: Europe – transformed
Europe – transformed 1 2022 2023 Europe-North Guidance Focused Europe-North Europe-South Europe-North perimeter comprises of UK / Ireland, Scandinavia, 16 12 Benelux and Northeast Countries Countries Europe 2 $1.03b $604-$614m Finland Norway 2022 2023E Revenue Revenue Estonia Ireland Denmark Latvia
Slide 6: Key financial highlights
Key financial highlights 3Q 2023: 1 • Revenue : $527 million (up 4.7%) 2 • Up 2.7% excluding movements in FX 1 • Loss from continuing operations : $51 million (compared to $19 million in prior year) 3 • Consolidated net loss : $263 million (compared to $39 million in prior year) 1,4 • Adjusted EBITD
Slide 7: Financial results: America
Financial results: America Three Months Ended September 30, 3 (USD, in millions) 2023 2022 Variance Revenue $ 279 $ 284 (1.9)% 1 Direct operating and SG&A expenses 157 155 1.7 % 2 Segment Adjusted EBITDA 121 130 (6.4)% 1 Includes restructuring and other costs that are excluded from Segment Adjusted
Slide 8: Financial results: Airports
Financial results: Airports Three Months Ended September 30, 3 (USD, in millions) 2023 2022 Variance Revenue $ 76 $ 62 21.2 % 1 Direct operating and SG&A expenses 60 47 27.0 % 2 Segment Adjusted EBITDA 16 15 3.1 % 1 Includes restructuring and other costs that are excluded from Segment Adjusted EBITD
Slide 9: Financial results: Europe-North
Financial results: Europe-North Three Months Ended September 30, Excluding movements in FX 3 3 (USD, in millions) 2023 2022 Variance 2023 2022 Variance Revenue $ 149 $ 136 10.2 % $ 142 $ 136 4.5 % 1 Direct operating and SG&A expenses 121 111 8.8 % 115 111 3.7 % 2 Segment Adjusted EBITDA 28 24 17.5 %
Slide 10: Clear Channel International B.V. Statements of Loss
Clear Channel International B.V. Statements of Loss Three Months Ended September 30, (USD, in millions) 2023 2022 Revenue $ 154 $ 140 Operating expenses: (1) Direct operating expenses 98 89 (1) Selling, general and administrative expenses 27 26 (1) Corporate expenses 10 12 Depreciation and amortizat
Slide 11: 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) 2023 2022 $ Change America $ 16 $ 14 $ 2
Slide 12: Capital structure and select balance sheet metrics
Capital structure and select balance sheet metrics (USD, in millions) September 30, 2023 June 30, 2023 $ Change (1)(2) Cash and Cash Equivalents $ 313 $ 229 $ 85 (3) Availability under Credit Facilities 218 223 (5) (4) Liquidity $ 531 $ 452 $ 80 (1)(5)(6) Debt $ 5,629 $ 5,558 $ 71 Weighted Average C
Slide 13: 2023 Guidance and Bridge
2023 Guidance and Bridge Guidance as of Removal of Adjusted Guidance as of Guidance as of August 7, 2023 Discontinued Operations August 7, 2023 November 8, 2023 (USD, in millions) Low High Low High Low High Low High 4Q 2023: 1,2 Consolidated Revenue $ 591 $ 618 America 293 305 Airports 100 105 1 Eur
Slide 14: Appendix
Appendix 14
Slide 15: Announcements
Announcements America and Airports: • CCO America rolled out its network of OOH Showcase Shelters, a fully customizable advertising reboot of the traditional transit shelter, in the highly coveted Los Angeles metropolitan area, providing a unique approach for brands to stand out and break through wi
Slide 16: Environmental and social initiatives
Environmental and social initiatives America & Airports • CCO America and Airports partnered with Big Brothers Big Sisters of America to support the organization’s bold new brand campaign, “It Takes Little to Be Big,” to challenge the myths and shift perceptions of mentoring and why now, more than e
Slide 17: Environmental and social initiatives
Environmental and social initiatives Europe-North • Clear Channel Europe celebrated the UN International Day of Democracy on September 15 with a major new public artwork from Franco-British artist Martin Firrell entitled "4 Tenets of Europe," which appeared simultaneously on billboards across Denmar
Slide 18: 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. 18
Slide 19: 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. 19
Slide 20: Financial results: Other
Financial results: Other Three Months Ended September 30, Excluding movements in FX 2 2 (USD, in millions) 2023 2022 Variance 2023 2022 Variance Revenue $ 23 $ 21 8.4 % $ 21 $ 21 (1.2)% Direct operating and SG&A expenses 20 18 8.2 % 18 18 (0.9)% 1 Segment Adjusted EBITDA 3 3 10.0 % 3 3 (3.4)% 1 Calc
Slide 21: Rent abatements
Rent abatements 2023 2022 (USD, in millions) Q1 Q2 Q3 Total Q1 Q2 Q3 Q4 Total 1 Consolidated $ 7.3 $ 7.0 $ 4.4 $ 18.6 $ 9.0 $ 13.6 $ 15.8 $ 13.0 $ 51.3 America 1.2 2.1 1.6 4.9 3.7 3.6 3.8 3.8 14.8 Airports 5.5 4.5 2.7 12.7 4.6 9.5 11.7 6.4 32.1 Europe-North 0.5 0.3 0.2 1.0 0.7 0.5 0.5 0.3 2.0 1 Repr
Slide 22: Items impacting comparability
Items impacting comparability (USD, in millions) Consolidated FX Impact: Q3 2023 Revenue $ 9.8 Direct Operating and SG&A Expenses 7.4 Adjusted EBITDA 2.0 AFFO 2.1 22
Slide 23: 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 24: Segment operating results
Segment operating results Three Months Ended (In thousands) September 30, 2023 2022 Variance Revenue America $ 278,760 $ 284,201 (1.9) % Airports 75,558 62,318 21.2 % Europe-North 149,366 135,522 10.2 % Other 23,102 21,303 8.4 % Consolidated Revenue $ 526,786 $ 503,344 4.7 % 1 Direct Operating and S
Slide 25: Segment operating results excluding movements in FX
Segment operating results excluding movements in FX Three Months Ended (In thousands) September 30, 2023 2022 Variance 1 Revenue Excluding Movements in FX America $ 278,760 $ 284,201 (1.9) % Airports 75,558 62,318 21.2 % Europe-North 141,626 135,522 4.5 % Other 21,037 21,303 (1.2) % Consolidated Rev
Slide 26: 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, 2023 2022 Loss from continuing operations $ (51,082) $ (18,798) Adjustments: Income tax benefit attributable to continuing operations (244) (21,120) Other expense, net 17,269 27,968 G
Slide 27: Reconciliation of Corporate expenses to Adjusted Corporate expenses
Reconciliation of Corporate expenses to Adjusted Corporate expenses Three Months Ended (in thousands) September 30, 2023 2022 Corporate expenses $ (34,931) $ (38,299) Share-based compensation 4,987 5,124 Restructuring and other costs 569 (806) Adjusted Corporate expenses $ (29,375) $ (33,981) 27
Slide 28: Prior Year Corporate Expenses Reconciliation
Prior Year Corporate Expenses Reconciliation (in thousands) QTD Q3 2022 YTD Q3 2022 Corporate expenses, as originally reported $ 37,433 $ 120,159 1 Reclassified from Europe-South SG&A to Corporate 1,051 3,750 Reclassified from Corporate to Discontinued Operations (185) (586) Corporate expenses, afte
Slide 29: 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, 2023 2022 Consolidated net loss $ (262,818) $ (38,780) Depreciation and amortization of real estate 50,352 49,067 1 Net loss on disposition of real estate (excludes condemnation proceeds) 202,572
Slide 30: 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 2023 Low High Loss from continuing operations $ (190) $ (172) Adjustments: Income tax benefit attributable to continuing operations (7) (7) Other income, net (3) (5) Loss on extinguishment of debt
Slide 31: Reconciliation of Loss from continuing operations guidance to AFFO guidance
Reconciliation of Loss from continuing operations guidance to AFFO guidance (in millions) FY 2023 Low High Loss from continuing operations $ (190) $ (172) Depreciation and amortization of real estate 216 216 Net gain on disposal of real estate (excludes condemnation proceeds) 8 8 Adjustment for unco
Slide 32: Calculation of First Lien Leverage Ratio
Calculation of First Lien Leverage Ratio First Lien Leverage Ratio: • 5.59x as of September 30, 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: September 30
Slide 33: Reconciliation of Bank EBITDA to Operating income and Net cash provided by operating activities
Reconciliation of Bank EBITDA to Operating income and Net cash provided by operating activities Four Quarters Ended September 30, (In millions) 2023 EBITDA (as defined by the Senior Secured Credit Agreement) $ 527.6 Depreciation and amortization, impairment charges and share-based compensation (271.
Slide 34: 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
Clear Channel Outdoor Holdings — Q3 2023 Earnings Presentation on 6ix