Clear Channel Outdoor Holdings, Inc. · NYSE:CCO
Clear Channel Outdoor — Q1 2023 Earnings Presentation
34 slides from Clear Channel Outdoor's earnings presentation, May 9, 2023
Slide 1: Clear Channel Outdoor Holdings 2023 First Quarter Results
Clear Channel Outdoor Holdings 2023 First Quarter Results May 9, 2023 1
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 1Q 2023 revenue in line • 1Q 2023 revenue up 6.6%, excluding movements in FX. with our guidance ◦ U.S. revenue impacted by weakness in certain national accounts rather than macro events. ◦ Continue to broaden range of advertisers we can pursue, including developing the CPG and Pharma catego
Slide 5: Key financial highlights
Key financial highlights 1Q 2023: • Revenue: $545 million (up 3.8%) 1 • Up 6.6% excluding movements in FX • Net Loss: $35 million (improved from $90 million in prior year) 2 • Adjusted EBITDA : $52 million (down 20.6%) 1 • Down 22.3% excluding movements in FX 2,3 • AFFO : $(57) million 1 ◦ $(58) mil
Slide 6: Financial results: America
Financial results: America Three Months Ended March 31, 3 (USD, in millions) 2023 2022 Variance Revenue $ 236 $ 239 (1.3)% 1 Direct operating and SG&A expenses 155 139 11.1 % 2 Segment Adjusted EBITDA 81 100 (19.0)% 1 Includes restructuring and other costs that are excluded from Segment Adjusted EBI
Slide 7: Financial results: Airports
Financial results: Airports Three Months Ended March 31, 3 (USD, in millions) 2023 2022 Variance Revenue $ 54 $ 56 (3.7)% 1 Direct operating and SG&A expenses 48 46 3.4 % 2 Segment Adjusted EBITDA 6 10 (36.9)% 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 March 31, Excluding movements in FX 3 3 (USD, in millions) 2023 2022 Variance 2023 2022 Variance Revenue $ 129 $ 122 5.2 % $ 140 $ 122 14.9 % 1 Direct operating and SG&A expenses 122 115 5.3 % 133 115 15.0 % 2 Segment Adjusted EBITDA 7 7 2.8 % 8 7 1
Slide 9: Financial results: Europe-South
Financial results: Europe-South Three Months Ended March 31, Excluding movements in FX 3 3 (USD, in millions) 2023 2022 Variance 2023 2022 Variance Revenue $ 108 $ 90 20.6 % $ 112 $ 90 25.0 % 1 Direct operating and SG&A expenses 121 111 8.5 % 125 111 12.8 % 2 Segment Adjusted EBITDA (12) (22) 44.0 %
Slide 10: 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) 2023 2022 Revenue $ 242 $ 217 Operating expenses: (1) Direct operating expenses 192 179 (1) Selling, general and administrative expenses 55 52 (1) Corporate expenses 11 13 Depreciation and am
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 March 31, (USD, in millions) 2023 2022 $ Change America $ 17 $ 15 $ 2 Airpo
Slide 12: Capital structure and select balance sheet metrics
Capital structure and select balance sheet metrics (USD, in millions) March 31, 2023 December 31, 2022 $ Change (1) Cash and Cash Equivalents $ 340 $ 287 $ 53 Availability under Credit Facilities 205 215 (9) (2) Liquidity $ 545 $ 501 $ 44 Debt $ 5,592 $ 5,594 $ (2) Weighted Average Cost of Debt 7.2
Slide 13: 2023 Guidance
2023 Guidance 2Q 2023: (USD, in millions) Low High 1 Consolidated Revenue $ 635 $ 660 FY 2023: (USD, in millions) Low High 1 Consolidated Revenue $ 2,500 $ 2,625 1,2 Adjusted EBITDA 525 585 1,2 AFFO 65 115 Capital Expenditures 165 185 Cash interest payments Approx. $ 414 1 Excludes movements in FX 2
Slide 14: New CCOA Website
New CCOA Website clearchanneloutdoor.com 14
Slide 15: Appendix
Appendix 15
Slide 16: Announcements
America and Airports: Announcements • CCO America neared completion on a digital media makeover of Chicago's iconic commuter hub, 500 W. Madison, to help businesses reach and influence 200,000+ commuters daily. • CCO Airports' client, SIXT, continues to drive creativity with campaigns at EWR, JFK, F
Slide 17: Environmental and social initiatives
Environmental and social initiatives America & Airports • CCO America and Airports celebrated Women's History Month with the campaign "This is My Story," featuring female trailblazers who are doing good and enhancing culture while leaving a positive impact on the world. • CCO America came together w
Slide 18: Environmental and social initiatives
Environmental and social initiatives Europe-North & Europe-South • Clear Channel Belgium recently installed new green areas in the heart of the Brussels-Midi station. Together with the latest customer information screens, Clear Channel Belgium is helping improve travelers' experiences. • Clear Chann
Slide 19: 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 20: Segment operating results
Segment operating results (In thousands) Three Months Ended March 31, 2023 2022 Variance Revenue America $ 236,049 $ 239,256 (1.3) % Airports 53,789 55,883 (3.7) % Europe-North 128,503 122,098 5.2 % Europe-South 108,015 89,550 20.6 % Other 19,079 18,901 0.9 % Consolidated Revenue $ 545,435 $ 525,688
Slide 21: Segment operating results excluding movements in FX
Segment operating results excluding movements in FX (In thousands) Three Months Ended March 31, 2023 2022 Variance 1 Revenue Excluding Movements in FX America $ 236,049 $ 239,256 (1.3) % Airports 53,789 55,883 (3.7) % Europe-North 140,232 122,098 14.9 % Europe-South 111,928 89,550 25.0 % Other 18,62
Slide 22: Reconciliation of Consolidated net loss to Adjusted EBITDA
Reconciliation of Consolidated net loss to Adjusted EBITDA Three Months Ended (in thousands) March 31, 2023 2022 Consolidated net loss $ (35,422) $ (89,729) Adjustments: Income tax expense (benefit) 7,834 (2,680) Other expense (income), net (9,004) 5,999 Interest expense, net 102,753 82,798 Other op
Slide 23: Reconciliation of Corporate expenses to Adjusted Corporate expenses
Reconciliation of Corporate expenses to Adjusted Corporate expenses Three Months Ended (in thousands) March 31, 2023 2022 Corporate expenses $ (34,541) $ (43,645) Share-based compensation 4,124 4,714 Restructuring and other costs (55) 9,070 Adjusted Corporate expenses $ (30,472) $ (29,861) 23
Slide 24: 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, 2023 Consolidated net loss $ (35,422) Depreciation and amortization of real estate 64,754 Net gain on 1 disposal of real estate (excludes condemnation proceeds) (94,231) Adjustment for unconsolidated
Slide 25: Reconciliation of Consolidated net loss guidance to Adjusted EBITDA guidance
Reconciliation of Consolidated net loss guidance to Adjusted EBITDA guidance (in millions) FY 2023 Low High Consolidated net loss $ (95) $ (40) Adjustments: Income tax expense 6 6 Other income, net (11) (13) Interest expense, net 418 425 Other operating income, net (92) (92) Depreciation & amortizat
Slide 26: Reconciliation of Consolidated net loss guidance to FFO and AFFO guidance
Reconciliation of Consolidated net loss guidance to FFO and AFFO guidance (in millions) FY 2023 Low High Consolidated net loss $ (95) $ (40) Depreciation and amortization of real estate 236 236 1 Net gain on disposal of real estate (excludes condemnation proceeds) (98) (98) Adjustment for unconsolid
Slide 27: Calculation of First Lien Leverage Ratio
Calculation of First Lien Leverage Ratio First Lien Leverage Ratio: • 5.25x as of March 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: March 31, (In mi
Slide 28: Reconciliation of Bank EBITDA to Operating income and Net cash from operations
Reconciliation of Bank EBITDA to Operating income and Net cash provided by operating activities Four Quarters Ended March 31, (In millions) 2023 EBITDA (as defined by the Senior Secured Credit Agreement) $ 542.3 Depreciation and amortization, impairment charges and share-based compensation (326.5) C
Slide 29: 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. 29
Slide 30: 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. 30
Slide 31: Financial results: Other
Financial results: Other Three Months Ended March 31, Excluding movements in FX 3 3 (USD, in millions) 2023 2022 Variance 2023 2022 Variance Revenue $ 19 $ 19 0.9 % $ 19 $ 19 (1.4)% 1 Direct operating and SG&A expenses 19 18 1.5 % 18 18 (0.9)% 2 Segment Adjusted EBITDA — — (19.8)% — — (22.8)% 1 Incl
Slide 32: Rent abatements
Rent abatements 2023 2022 (USD, in millions) Q1 Q1 Q2 Q3 Q4 1 Rent Abatements : America $ 1.2 $ 3.7 $ 3.6 $ 3.8 $ 3.8 Airports 5.5 4.6 9.5 11.7 6.4 Europe-North 0.5 0.7 0.5 0.5 0.3 Europe-South — 0.6 — 0.2 0.1 1 Represents reductions of site lease expense in lease and non-lease contracts due to rent
Slide 33: Items impacting comparability
Items impacting comparability (USD, in millions) FX Impact: Q1 2023 Revenue $ (15.2) Direct Operating and SG&A Expenses (15.5) Adjusted EBITDA 1.1 AFFO 1.4 33
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
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