Clear Channel Outdoor Holdings, Inc. · NYSE:CCO
Clear Channel Outdoor — Q2 2023 Earnings Presentation
35 slides from Clear Channel Outdoor's earnings presentation, Aug 9, 2023
Slide 1: Clear Channel Outdoor Holdings 2023 Second Quarter Results
Clear Channel Outdoor Holdings 2023 Second Quarter Results August 7, 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
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Slide 4: Overview
Overview • Digital revenue up 7.3%, excluding 2Q 2023 Consolidated movements in FX and sold businesses 1 revenue up 3.5% and in • America revenue up, higher revenue in most markets partially offset by San Francisco line with our guidance, • Airports business rebounded robustly excluding movements in
Slide 5: Key financial highlights
Key financial highlights 2Q 2023: • Revenue: $637 million (down 1.0%) 1 • Up 3.5% excluding movements in FX and sold businesses • Net Loss: $37 million (improved from $65 million in prior year) 1 • Adjusted EBITDA : $146 million (down 10.9%) 1 • Down 7.2% excluding movements in FX and sold businesse
Slide 6: Financial results: America
Financial results: America Three Months Ended June 30, 3 (USD, in millions) 2023 2022 Variance Revenue $ 288 $ 285 0.9 % 1 Direct operating and SG&A expenses 158 151 4.4 % 2 Segment Adjusted EBITDA 130 134 (3.3)% 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, 2 (USD, in millions) 2023 2022 Variance Revenue $ 71 $ 61 16.3 % Direct operating and SG&A expenses 55 46 18.1 % 1 Segment Adjusted EBITDA 16 15 10.5 % 1 Calculated as Revenue less Direct operating expenses and SG&A expenses, excluding restruct
Slide 8: Financial results: Europe-North
Financial results: Europe-North Three Months Ended June 30, Excluding movements in FX 3 3 (USD, in millions) 2023 2022 Variance 2023 2022 Variance Revenue $ 150 $ 146 2.9 % $ 152 $ 146 4.5 % 1 Direct operating and SG&A expenses 124 118 5.1 % 126 118 6.9 % 2 Segment Adjusted EBITDA 26 28 (5.8)% 26 28
Slide 9: Financial results: Europe-South
Financial results: Europe-South Three Months Ended June 30, Excluding movements in FX 3 3 (USD, in millions) 2023 2022 Variance 2023 2022 Variance Revenue $ 106 $ 131 (18.8)% $ 104 $ 131 (20.6)% 1 Direct operating and SG&A expenses 104 115 (9.7)% 102 115 (11.7)% 2 Segment Adjusted EBITDA 2 17 (85.7)
Slide 10: Clear Channel International B.V. Statements of Income (Loss)
Clear Channel International B.V. Statements of Income (Loss) Three Months Ended June 30, (USD, in millions) 2023 2022 Revenue $ 261 $ 280 Operating expenses: (1) Direct operating expenses 181 180 (1) Selling, general and administrative expenses 51 56 (1) Corporate expenses 11 13 Depreciation and amo
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 June 30, (USD, in millions) 2023 2022 $ Change America $ 19 $ 24 $ (5) Air
Slide 12: Capital structure and select balance sheet metrics
Capital structure and select balance sheet metrics (USD, in millions) June 30, 2023 March 31, 2023 $ Change (1) Cash and Cash Equivalents $ 233 $ 340 $ (107) (2) Availability under Credit Facilities 223 205 18 (3) Liquidity $ 456 $ 545 $ (89) Debt $ 5,591 $ 5,592 $ (1) Weighted Average Cost of Debt
Slide 13: 2023 Guidance
2023 Guidance 3Q 2023: (USD, in millions) Low High 1 Consolidated Revenue $ 570 $ 600 America 273 283 Airports 73 78 1 Europe-North 132 142 FY 2023: (USD, in millions) Low High 1 Consolidated Revenue $ 2,465 $ 2,535 America 1,095 1,115 Airports 285 295 1 Europe-North 590 610 1,2 Adjusted EBITDA 522
Slide 14: Appendix
Appendix 14
Slide 15: Announcements
Announcements America and Airports: ® • CCO America entered into several partnerships aimed at integrating the RADAR data platform with best-in-class Data Clean Room, or DCR, applications and services to enable brands to utilize first party-data matching for out-of-home in the U.S. The marketers tha
Slide 16: Environmental and social initiatives
Environmental and social initiatives America & Airports • CCO America and Airports celebrated Asian American and Pacific Islander (AAPI) Heritage Month with the creative, "Leading the Way," highlighting AAPI leaders in business, sports and entertainment, as well as civil rights. • CCO America and Ai
Slide 17: Environmental and social initiatives
Environmental and social initiatives Europe-North & Europe-South • Clear Channel UK launched a nationwide campaign, in partnership with the Ideas Foundation, as part of its Coronation Generation Poster Design challenge. The winning campaign featured a student's design that explored themes such as co
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: Trailing twelve months Europe-North results
Trailing twelve months Europe-North results Trailing Twelve Months Ended Three Months Ended June 30, June 30, March 31, December 31, September 30, (in thousands) 2023 2023 2023 2022 2022 Europe-North: Revenue $ 576,715 $ 149,909 $ 128,503 $ 162,781 $ 135,522 Segment Adjusted EBITDA 102,227 26,234 7,
Slide 21: Financial results: Other
Financial results: Other Three Months Ended June 30, Excluding movements in FX 2 2 (USD, in millions) 2023 2022 Variance 2023 2022 Variance Revenue $ 22 $ 20 9.3 % $ 21 $ 20 3.8 % Direct operating and SG&A expenses 19 19 1.2 % 18 19 (2.9)% 1 Segment Adjusted EBITDA 4 2 91.8 % 3 2 71.3 % 1 Calculated
Slide 22: Rent abatements
Rent abatements 2023 2022 (USD, in millions) Q1 Q2 Q1 Q2 Q3 Q4 1 Rent Abatements : America $ 1.2 $ 2.1 $ 3.7 $ 3.6 $ 3.8 $ 3.8 Airports 5.5 4.5 4.6 9.5 11.7 6.4 Europe-North 0.5 0.3 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 co
Slide 23: Items impacting comparability
Items impacting comparability (USD, in millions) Consolidated FX Impact: Q2 2023 Revenue $ 1.1 Direct Operating and SG&A Expenses 0.9 Adjusted EBITDA 0.3 AFFO — 23
Slide 24: 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 25: Segment operating results
Segment operating results (In thousands) Three Months Ended June 30, 2023 2022 Variance Revenue America $ 287,517 $ 285,026 0.9 % Airports 71,045 61,106 16.3 % Europe-North 149,909 145,718 2.9 % Europe-South 106,419 131,081 (18.8) % Other 22,349 20,449 9.3 % Consolidated Revenue $ 637,239 $ 643,380
Slide 26: Segment operating results excluding movements in FX
Segment operating results excluding movements in FX (In thousands) Three Months Ended June 30, 2023 2022 Variance 1 Revenue Excluding Movements in FX America $ 287,517 $ 285,026 0.9 % Airports 71,045 61,106 16.3 % Europe-North 152,299 145,718 4.5 % Europe-South 104,025 131,081 (20.6) % Other 21,218
Slide 27: Consolidated revenue and digital revenue excluding effects of FX and sold businesses
Consolidated revenue and digital revenue excluding effects of FX and sold businesses Three Months Ended (in thousands) June 30, 2023 2022 Variance Revenue: Consolidated Revenue $ 637,239 $ 643,380 (1.0)% Effect of movements in FX (1,135) — Consolidated Revenue, excluding movements in FX 636,104 643,
Slide 28: Reconciliation of Consolidated net loss to Adjusted EBITDA
Reconciliation of Consolidated net loss to Adjusted EBITDA and Adjusted EBITDA excluding effects of FX and sold businesses Three Months Ended (in thousands) June 30, 2023 2022 Variance Consolidated net loss $ (36,579) $ (65,317) (44.0)% Adjustments: Income tax (benefit) expense (1,758) 23,419 Other
Slide 29: Reconciliation of Corporate expenses to Adjusted Corporate expenses
Reconciliation of Corporate expenses to Adjusted Corporate expenses Three Months Ended (in thousands) June 30, 2023 2022 Corporate expenses $ (57,557) $ (39,081) Share-based compensation 6,179 6,876 Restructuring and other costs 19,700 1,478 Adjusted Corporate expenses $ (31,678) $ (30,727) 29
Slide 30: 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, 2023 Consolidated net loss $ (36,579) Depreciation and amortization of real estate 62,880 Net gain on 1 disposition of real estate (excludes condemnation proceeds) (10,248) Adjustment for unconsolidate
Slide 31: Calculation of First Lien Leverage Ratio
Calculation of First Lien Leverage Ratio First Lien Leverage Ratio: • 5.52x as of June 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: June 30, (In mill
Slide 32: 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 June 30, (In millions) 2023 EBITDA (as defined by the Senior Secured Credit Agreement) $ 533.3 Depreciation and amortization, impairment charges and share-based compensation (314.5) Un
Slide 33: 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 $ (98) $ (73) Adjustments: Income tax expense 6 6 Other income, net (23) (25) Interest expense, net 418 425 Other operating income, net (98) (98) Depreciation and amortiz
Slide 34: 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 $ (98) $ (73) Depreciation and amortization of real estate 233 233 1 Net gain on disposal of real estate (excludes condemnation proceeds) (110) (110) Adjustment for unconsol
Slide 35: 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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