Market Overview

Clear Channel Outdoor Holdings, Inc. Reports Results for 2018 Second Quarter

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Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) today reported
financial results for the second quarter ended June 30, 2018.

"We continue to make great strides in our digital transformation using
innovative technology to deliver flexible and creative solutions that
connect advertisers to customers," said Bob Pittman, Executive Chairman
and Chief Executive Officer of Clear Channel Outdoor Holdings, Inc.
"Even as we continue to win contracts that expand our digital offerings,
we remain focused on developing programmatic, data analytics, and
attribution capabilities that add value to our global network."

"We are pleased with the success of our ongoing strategic initiatives
and the growth in consolidated revenue, operating income and OIBDAN this
quarter," said Rich Bressler, Chief Financial Officer of Clear Channel
Outdoor Holdings, Inc. "We remain committed to financial discipline as
we invest to grow our businesses."

Key Financial Highlights

The Company's key financial highlights for the second quarter of 2018
include:

  • Consolidated revenue increased 5.9%. Consolidated revenue increased
    3.5%, after adjusting for a $22.5 million impact from movements in
    foreign exchange rates and the $6.4 million impact of the sale of our
    business in Canada.
    • Americas revenues decreased $0.3 million, or 0.1%. Revenues
      increased $6.1 million, or 2.1%, after adjusting for the $6.4
      million impact from the sale of our business in Canada.
    • International revenues increased $39.9 million, or 10.7%. Revenues
      increased $17.4 million, or 4.7%, after adjusting for a $22.5
      million impact from movements in foreign exchange rates.
  • Operating income increased 7.0% to $94.0 million primarily resulting
    from revenue growth in our International business.
  • OIBDAN increased 10.7%. OIBDAN increased 8.7%, excluding the impact
    from movements in foreign exchange rates and the impact of the sale of
    our business in Canada.

Key Non-Financial Highlights

The Company's recent key non-financial highlights include:

Expanding digital offerings globally:

  • Installing 14 new digital billboards in the U.S. for a total of 1,242
    and 437 new digital displays in our International markets for a total
    of more than 14,000.
  • Launching Clear Channel Sweden's largest digital billboard in
    Stockholm. Located at Medborgarplatsen, which is one of the country's
    most important advertising sites.

Winning new contracts:

  • Announcing the five-year contract renewal with Broward County's Fort
    Lauderdale Hollywood International Airport to provide a new
    state-of-the-art digital advertising network. These innovative
    advertising solutions will enable global and local brands to reach
    over 32 million passengers annually.
  • Extending the contract with Cleveland Hopkins International Airport to
    deliver innovative brand advertising solutions for the next 10 years.
    This contract renewal prioritized customized, advanced advertising
    displays that create an attractive, visually appealing environment for
    travelers.
  • Signing the contract in Albuquerque to broadcast emergency alerts
    across its digital billboard network, which includes 44 digital
    billboards that reach more than 98% of adults weekly across the city.
  • Renewing the contract in Barcelona to continue managing the street
    furniture network of digital and traditional displays until 2020. When
    combined with its network in Madrid, this premium national network
    consists of 2,676 advertising sites that give brands 43% coverage of
    Spanish population age 14-75 in main urban areas.
  • Partnering with Keolis to strengthen its presence in Paris by
    providing brands with the opportunity to advertise on the Bus Direct
    service, which is a transportation link from the heart of the city to
    Charles de Gaulle and Orly airports, as well as Gare Montparnasse and
    Gare de Lyon train stations.
  • Completing the contract with DADES to establish a digital out-of-home
    network in 10 major shopping centers across Denmark. By the end of
    2018, CCOH expects to install more than 100 digital screens enabling
    advertisers to target shoppers in the final stages of their purchase
    journeys.

Promoting creativity in the OOH industry:

  • Sponsoring the Cannes Lions International Festival of Creativity.
    Celebrated creative achievement in the medium by sponsoring the
    Outdoor Lions awards for the 9th consecutive year, and by showcasing
    the creative and flexible potential of digital out-of-home via our
    giant digital rooftop billboard.

GAAP Measures by Segment

       
(In thousands) Three Months Ended
June 30,
%
Change
Six Months Ended
June 30,
%

Change

2018   2017 2018   2017
Revenue
Americas $ 299,922 $ 300,191 (0.1 )% $ 555,769 $ 560,537 (0.9 )%
International 412,058   372,128   10.7 % 754,922   656,508   15.0 %
Consolidated revenue $ 711,980   $ 672,319   5.9 % $ 1,310,691   $ 1,217,045   7.7 %
Direct Operating and SG&A expenses1
Americas $ 178,137 $ 182,472 (2.4 )% $ 351,960 $ 363,501 (3.2 )%
International 320,088     296,174   8.1 % 635,275   560,577   13.3 %
Consolidated Direct Operating and SG&A expenses1 $ 498,225     $ 478,646   4.1 % $ 987,235   $ 924,078   6.8 %
Operating income
Americas $ 78,662 $ 74,865 5.1 % $ 116,182 $ 111,366 4.3 %
International 53,287 41,859 27.3 % 42,399 28,684 47.8 %
Corporate2 (38,889 ) (36,681 ) 6.0 % (75,315 ) (72,747 ) 3.5 %
Other operating income, net 929   7,829   875   40,440  
Consolidated Operating income $ 93,989   $ 87,872   7.0 % $ 84,141   $ 107,743   (21.9 )%

1

 

Direct Operating and SG&A Expenses as included throughout this
earnings release refers to the sum of Direct operating expenses
(excludes depreciation and amortization) and Selling, general and
administrative expenses (excludes depreciation and amortization).

 

2

Includes Corporate depreciation and amortization of $1.0 million
and $1.3 million for the three months ended June 30, 2018 and
2017, respectively, and $2.0 million and $2.9 million for the six
months ended June 30, 2018 and 2017, respectively.

Non-GAAP Measures1 (see preceding
table for comparable GAAP measures)

       
(In thousands) Three Months Ended
June 30,
%
Change
Six Months Ended
June 30,
%

Change

2018   2017 2018   2017
Revenue excluding movements in foreign exchange
Americas $ 299,924 $ 300,191 (0.1 )% $ 555,771 $ 560,537 (0.9 )%
International 389,568   372,128   4.7 % 697,654   656,508   6.3 %
Consolidated revenue excluding movements in foreign exchange $ 689,492   $ 672,319   2.6 % $ 1,253,425   $ 1,217,045   3.0 %
Direct Operating and SG&A expenses1 excluding
movements in foreign exchange
Americas $ 178,140 $ 182,472 (2.4 )% $ 351,964 $ 363,501 (3.2 )%
International 302,073   296,174   2.0 % 584,456   560,577   4.3 %
Consolidated Direct Operating and SG&A expenses excluding
movements in foreign exchange
$ 480,213   $ 478,646   0.3 % $ 936,420   $ 924,078   1.3 %
OIBDAN
Americas $ 121,785 $ 117,719 3.5 % $ 203,809 $ 197,036 3.4 %
International 91,970 75,954 21.1 % 119,647 95,931 24.7 %
Corporate (36,409 ) (33,440 ) 8.9 % (69,738 ) (65,621 ) 6.3 %

Consolidated OIBDAN

$ 177,346   $ 160,233   10.7 % $ 253,718   $ 227,346   11.6 %

OIBDAN excluding movements in foreign exchange

Americas $ 121,784 $ 117,719 3.5 % $ 203,807 $ 197,036 3.4 %
International 87,495 75,954 15.2 % 113,198 95,931 18.0 %
Corporate (35,826 ) (33,440 ) 7.1 % (68,339 ) (65,621 ) 4.1 %

Consolidated OIBDAN excluding movements in foreign exchange

$ 173,453   $ 160,233   8.3 % $ 248,666   $ 227,346   9.4 %
Revenue excluding effects of foreign exchange and revenue from
business sold
Americas $ 299,924 $ 293,779 2.1 % $ 555,771 $ 549,455 1.1 %
Consolidated revenue, excluding effects of foreign exchange and
revenue from business sold
$ 689,492 $ 665,907 3.5 % $ 1,253,425 $ 1,205,963 3.9 %
OIBDAN excluding effects of foreign exchange and OIBDAN from
business sold
Americas $ 121,784 $ 117,034 4.1 % $ 203,807 $ 197,119 3.4 %
Consolidated OIBDAN, excluding effects of foreign exchange and
OIBDAN from business sold
$ 173,453 $ 159,548 8.7 % $ 248,666 $ 227,429 9.3 %
Certain prior period amounts have been reclassified to conform to
the 2018 presentation of financial information throughout the press
release.
 

1

 

See the end of this press release for reconciliations of (i)
OIBDAN, excluding effects of foreign exchange rates and OIBDAN for
each segment, to consolidated and segment operating income (loss);
(ii) revenues, excluding effects of foreign exchange rates, to
revenues; (iii) direct operating and SG&A expenses, excluding
effects of foreign exchange rates, to direct operating and SG&A
expenses; (iv) corporate expenses, excluding non-cash compensation
expenses and effects of foreign exchange rates, to corporate
expenses; (v) Consolidated and segment revenues, excluding effects
of foreign exchange rates and results from business sold, to
Consolidated and segment revenues; (vi) Consolidated and segment
direct operating and SG&A expenses, excluding effects of foreign
exchange rates and results from business sold, to Consolidated and
segment direct operating and SG&A expenses; and (vii) Consolidated
and segment OIBDAN, excluding effects of foreign exchange rates
and results from business sold, to Consolidated and segment
operating income (loss). See also the definition of OIBDAN under
the Supplemental Disclosure section in this release.

Second Quarter 2018 Results

Consolidated

Consolidated revenue increased $39.7 million, or 5.9%, during the second
quarter of 2018 as compared to the second quarter of 2017. Consolidated
revenue increased $23.6 million, or 3.5%, after adjusting for a $22.5
million impact from movements in foreign exchange rates and the $6.4
million impact from the sale of our business in Canada.

Consolidated direct operating and SG&A expenses increased $19.6 million,
or 4.1%, during the second quarter of 2018 as compared to the second
quarter of 2017. Consolidated direct operating and SG&A expenses
increased $7.3 million, or 1.5%, in the second quarter, after adjusting
for a $18.0 million impact from movements in foreign exchange rates and
the $5.7 million impact from the sale of our business in Canada.

Consolidated operating income increased 7.0% to $94.0 million, during
the second quarter of 2018 as compared to the second quarter of 2017,
primarily due to revenue growth in our International and Americas
businesses, partially offset by the impact from the sale of our business
in Canada.

The Company's OIBDAN increased 10.7% to $177.3 million, during the
second quarter of 2018 as compared to the second quarter of 2017. The
Company's OIBDAN increased 8.7% in the second quarter 2018 compared to
the same period of 2017, after adjusting for movements in foreign
exchange rates and the impact from the sale of our business in Canada.

Americas

Americas revenues decreased $0.3 million, or 0.1%, during the second
quarter of 2018 as compared to the second quarter of 2017. Revenues
increased $6.1 million, or 2.1%, after adjusting for the $6.4 million
impact from the sale of our business in Canada. The increase in revenue
was due to higher digital and print revenue.

Direct operating and SG&A expenses decreased $4.3 million, or 2.4%,
during the second quarter of 2018 as compared to the second quarter of
2017. Direct operating and SG&A expenses increased $1.4 million, or
0.8%, after adjusting for the $5.7 million impact from the sale of our
business in Canada.

Operating income increased 5.1% to $78.7 million during the second
quarter of 2018 as compared to the second quarter of 2017. OIBDAN
increased $4.1 million, or 3.5%. OIBDAN increased $4.8 million, or 4.1%,
during the second quarter of 2018, after adjusting for the $0.7 million
impact from the sale of our business in Canada.

International

International revenues increased $39.9 million, or 10.7%, during the
second quarter of 2018 as compared to the second quarter of 2017.
Revenues increased $17.4 million, or 4.7%, after adjusting for a $22.5
million impact from movements in foreign exchange rates. The increase in
revenue is due to growth in Sweden, China, Spain and Switzerland
primarily from new deployments and digital expansion.

Direct operating and SG&A expenses increased $23.9 million, or 8.1%,
during the second quarter of 2018 as compared to the second quarter of
2017. Direct operating and SG&A expenses increased $5.9 million, or
2.0%, after adjusting for a $18.0 million impact from movements in
foreign exchange rates. Direct operating and SG&A expenses increased due
to higher site lease expenses and other variable expenses in countries
experiencing revenue growth.

Operating income increased 27.3% to $53.3 million during the second
quarter of 2018 as compared to the second quarter of 2017. OIBDAN
increased $16.0 million, or 21.1%. OIBDAN increased $11.5 million, or
15.2%, during the second quarter of 2018, after adjusting for a $4.5
million impact from movements in foreign exchange rates.

Clear Channel International B.V. ("CCIBV")

CCIBV's consolidated revenues increased $32.2 million to $311.0 million
in the second quarter of 2018 compared to the same period in 2017. This
increase includes a $17.9 million impact from movements in foreign
exchange rates. Excluding the impact from movements in foreign exchange
rates, CCIBV revenues increased $14.3 million during the second quarter
of 2018 as compared to the same period in 2017.

CCIBV's operating income was $17.5 million in the second quarter of 2018
compared to operating income of $14.5 million in the same period in 2017.

Liquidity and Financial Position

As of June 30, 2018, we had $172.3 million of cash on our balance sheet,
including $153.8 million of cash held outside the U.S. by our
subsidiaries. For the six months ended June 30, 2018, cash provided by
operating activities was $65.9 million, cash used for investing
activities was $58.3 million, cash provided by financing activities was
$27.6 million, and there was a $(4.3) million impact from movements in
foreign exchange rates on cash. The net increase in cash, cash
equivalents and restricted cash from December 31, 2017 was $30.9 million.

Capital expenditures for the six months ended June 30, 2018 were $61.3
million compared to $103.1 million for the same period in 2017.

On January 24, 2018, we made a demand for repayment of $30.0 million
outstanding under the Due from iHeartCommunications Note and
simultaneously paid a special cash dividend of $30.0 million.
iHeartCommunications received approximately 89.5%, or approximately
$26.8 million, of the proceeds of the dividend through its wholly-owned
subsidiaries, with the remaining approximately 10.5%, or approximately
$3.2 million, of the proceeds of the dividend paid to our public
stockholders.

At June 30, 2018, the principal amount outstanding under the Due from
iHeartCommunications Note was $1,031.7 million. As a result of the
voluntary petition by iHeartMedia, iHeartCommunications and certain of
their subsidiaries for reorganization under Chapter 11 of the United
States Bankruptcy Code (the "iHeart Chapter 11 Cases"), CCOH recognized
a loss of $855.6 million on the Due from iHeartCommunications Note
during the fourth quarter of 2017 to reflect the estimated recoverable
amount of the note as of December 31, 2017, based on management's best
estimate of the cash settlement amount. As of June 30, 2018 and
December 31, 2017, the asset recorded in "Due from iHeartCommunications"
on our consolidated balance sheet was $154.8 million and $212.0 million,
respectively.

Pursuant to a final order entered by the Bankruptcy Court, as of March
14, 2018, the actual pre-iHeart bankruptcy balance of the Due from
iHeartCommunications Note is frozen, and following March 14, 2018,
intercompany allocations that would have been reflected in adjustments
to the balance of the Due from iHeartCommunications Note are instead
reflected in a new intercompany balance that accrues interest at a rate
equal to the interest under the Due from iHeartCommunications Note. The
Bankruptcy Court approved a final order to allow iHeartCommunications to
continue to provide the day-to-day cash management services for us
during the iHeart Chapter 11 Cases and we expect it to continue to do so
until such arrangements are addressed through the iHeart Chapter 11
Cases. As of June 30, 2018, we owed $3.5 million to iHeartCommunications
under the intercompany arrangement with iHeartCommunications.

On June 1, 2018, Clear Channel Outdoor, Inc. ("CCO"), a subsidiary of
ours, refinanced the Company's senior revolving credit facility with an
asset based credit facility that provides for revolving credit
commitments of up to $75.0 million. On June 29, 2018, CCO entered into
an amendment providing for a $50.0 million incremental increase of the
facility, bringing the aggregate revolving credit commitments to $125.0
million. The facility has a five-year term, maturing in 2023.

Conference Call

The Company will host a conference call to discuss results on July 31,
2018 at 8:30 a.m. Eastern Time. The conference call number is (800)
230-1085 (U.S. callers) and (612) 288-0337 (International callers) and
the passcode for both is 452122. A live audio webcast of the conference
call will also be available on the investor section of www.clearchanneloutdoor.com.
After the live conference call, a replay will be available for a period
of thirty days. The replay numbers are (800) 475-6701 (U.S. callers) and
(320) 365-3844 (International callers) and the passcode for both is
452122. An archive of the webcast will be available beginning 24 hours
after the call for a period of thirty days.

TABLE 1 - Financial Highlights of Clear Channel
Outdoor Holdings, Inc. and Subsidiaries

   
(In thousands) Three Months Ended
June 30,
Six Months Ended
June 30,
2018   2017 2018   2017
Revenue $ 711,980 $ 672,319 $ 1,310,691 1,217,045
Operating expenses:
Direct operating expenses (excludes depreciation and amortization) 372,936 352,748 734,538 682,406
Selling, general and administrative expenses (excludes depreciation
and amortization)
125,289 125,898 252,697 241,672
Corporate expenses (excludes depreciation and amortization) 37,928 35,340 73,363 69,880
Depreciation and amortization 82,767 78,290 166,827 155,784
Other operating income, net 929   7,829   875   40,440  
Operating income 93,989 87,872 84,141 107,743
Interest expense 96,987 94,630 194,251 187,263
Interest income on Due from iHeartCommunications, net 210 15,383 210 30,190
Equity in earnings (loss) of nonconsolidated affiliates (6 ) 271 182 (201 )
Other income (expense), net (35,396 ) 8,773   (15,943 ) 12,640  
Income (loss) before income taxes (38,190 ) 17,669 (125,661 ) (36,891 )
Income tax benefit (expense) (4,753 ) (18,390 ) (50,120 ) 3,447  
Consolidated net loss (42,943 ) (721 ) (175,781 ) (33,444 )
Less: Amount attributable to noncontrolling interest 7,440   6,631   3,024   4,636  
Net loss attributable to the Company $ (50,383 ) $ (7,352 ) $ (178,805 ) $ (38,080 )

For the three months ended June 30, 2018, foreign exchange rate
movements increased the Company's revenues by $22.5 million and
increased direct operating expenses by $13.7 million and SG&A expenses
by $4.3 million. For the six months ended June 30, 2018, foreign
exchange rate movements increased the Company's revenues by $57.3
million and increased direct operating expenses by $38.4 million and
SG&A expenses by $12.4 million.

TABLE 2 - Selected Balance Sheet Information

Selected balance sheet information for June 30, 2018 and December 31,
2017:

(In millions)   June 30, 2018   December 31, 2017
Cash and cash equivalents $ 172.3 $ 144.1
Total current assets 1,004.3 974.2
Net property, plant and equipment 1,288.7 1,395.0
Due from iHeartCommunications 154.8 212.0
Total assets 4,521.1 4,670.8
Current liabilities (excluding current portion of long-term debt) 698.5 656.9
Long-term debt (including current portion of long-term debt) 5,272.5 5,266.7
Stockholders' deficit (2,079.0 ) (1,858.3 )

TABLE 3 - Total Debt

At June 30, 2018 and December 31, 2017, Clear Channel Outdoor Holdings
had a total net debt of:

(In millions)   June 30, 2018   December 31, 2017
Clear Channel Worldwide Senior Notes:
6.5% Series A Senior Notes Due 2022 $ 735.8 $ 735.8
6.5% Series B Senior Notes Due 2022 1,989.2 1,989.2
Clear Channel Worldwide Holdings Senior Subordinated Notes:
7.625% Series A Senior Subordinated Notes Due 2020 275.0 275.0
7.625% Series B Senior Subordinated Notes Due 2020 1,925.0 1,925.0
Clear Channel International B.V. Senior Notes due 2020 375.0 375.0
Other debt 4.2 2.4
Original issue discount (0.5 ) (0.2 )
Long-term debt fees (31.2 ) (35.5 )
Total debt 5,272.5 5,266.7
Cash 172.3   144.1  
Net Debt $ 5,100.2   $ 5,122.6  

The current portion of long-term debt was $0.4 million and $0.6 million
as of June 30, 2018 and December 31, 2017, respectively.

Supplemental Disclosure Regarding Non-GAAP
Financial Information

The following tables set forth the Company's OIBDAN for the six months
ended June 30, 2018 and 2017. The Company defines OIBDAN as consolidated
operating income adjusted to exclude non-cash compensation expenses
included within corporate expenses, as well as the following line items
presented in its Statement of Operations: Depreciation and amortization;
Impairment charges; and Other operating income (expense), net.

The Company uses OIBDAN, among other measures, to evaluate the Company's
operating performance. This measure is among the primary measures used
by management for the planning and forecasting of future periods, as
well as for measuring performance for compensation of executives and
other members of management. We believe this measure is an important
indicator of the Company's operational strength and performance of its
business because it provides a link between operational performance and
operating income. It is also a primary measure used by management in
evaluating companies as potential acquisition targets.

The Company believes the presentation of this measure is relevant and
useful for investors because it allows investors to view performance in
a manner similar to the method used by the Company's management. The
Company believes it helps improve investors' ability to understand the
Company's operating performance and makes it easier to compare the
Company's results with other companies that have different capital
structures or tax rates. In addition, the Company believes this measure
is also among the primary measures used externally by the Company's
investors, analysts and peers in its industry for purposes of valuation
and comparing the operating performance of the Company to other
companies in its industry.

Since OIBDAN is not a measure calculated in accordance with GAAP, it
should not be considered in isolation of, or as a substitute for,
operating income as an indicator of operating performance and may not be
comparable to similarly titled measures employed by other companies.
OIBDAN is not necessarily a measure of the Company's ability to fund its
cash needs. As it excludes certain financial information compared with
operating income, the most directly comparable GAAP financial measure,
users of this financial information should consider the types of events
and transactions which are excluded.

The other non-GAAP financial measures presented in the tables below are:
(i) revenues, direct operating and SG&A expenses and OIBDAN, each
excluding the effects of foreign exchange rates; (ii) revenues, direct
operating and SG&A expenses and OIBDAN, each excluding the effects of
foreign exchange rates and the results from business sold and (iii)
corporate expenses, excluding non-cash compensation expenses and the
effects of foreign exchange rates.

The Company presents revenues, direct operating and SG&A expenses and
OIBDAN, each excluding the effects of foreign exchange rates, because
management believes that viewing certain financial results without the
impact of fluctuations in foreign currency rates facilitates period to
period comparisons of business performance and provides useful
information to investors. A significant portion of the Company's
advertising operations are conducted in foreign markets, principally
Europe, the U.K. and China, and management reviews the results from its
foreign operations on a constant dollar basis. Revenues, direct
operating and SG&A expenses and OIBDAN, each excluding the effects of
foreign exchange rates, are calculated by converting the current
period's amounts in local currency to U.S. dollars using average foreign
exchange rates for the prior period.

In the third quarter of 2017, we sold our business in Canada. The
Company presents revenues, direct operating and SG&A expenses and
OIBDAN, each excluding the effects of foreign exchange rates and the
results from the business sold, for the consolidated Company and the
Company's segments, in order to facilitate investors' understanding of
operational trends without the impact of fluctuations in foreign
currency rates and without the results from the markets and businesses
that were sold, as these results will not be included in the Company's
results in current and future periods.

Corporate expenses, excluding the effects of non-cash compensation
expenses is presented as OIBDAN excludes non-cash compensation expenses.

Since these non-GAAP financial measures are not calculated in accordance
with GAAP, they should not be considered in isolation of, or as a
substitute for, the most directly comparable GAAP financial measures as
an indicator of operating performance.

As required by the SEC rules, the Company provides reconciliations below
to the most directly comparable amounts reported under GAAP, including
(i) OIBDAN, excluding effects of foreign exchange rates and OIBDAN for
each segment, to consolidated and segment operating income (loss); (ii)
revenues, excluding effects of foreign exchange rates, to revenues;
(iii) direct operating and SG&A expenses, excluding effects of foreign
exchange rates, to direct operating and SG&A expenses; (iv) corporate
expenses, excluding non-cash compensation expenses and effects of
foreign exchange rates, to corporate expenses; (v) Consolidated and
segment revenues, excluding effects of foreign exchange rates and
results from business sold, to Consolidated and segment revenues; (vi)
Consolidated and segment direct operating and SG&A expenses, excluding
effects of foreign exchange rates and results from business sold, to
Consolidated and segment direct operating and SG&A expenses; and (vii)
Consolidated and segment OIBDAN, excluding effects of foreign exchange
rates and results from business sold, to Consolidated and segment
operating income (loss).

Reconciliation of OIBDAN, excluding effects of foreign exchange
rates and OIBDAN for each segment to, Consolidated and Segment
Operating Income (Loss)

 
(In thousands)

OIBDAN
excluding
effects of
foreign
exchange

 

Foreign
exchange
effects

 



OIBDAN
(subtotal)

 

Non-cash
compensation
expenses

 

Depreciation
and
amortization

 

Other
operating
(income)
expense, net

 

Operating
income (loss)

Three Months Ended June 30, 2018
Americas $ 121,784 $ 1 $ 121,785 $ $ 43,123 $ $ 78,662
International 87,495 4,475 91,970 38,683 53,287
Corporate (35,826 ) (583 ) (36,409 ) 1,519 961 (38,889 )
Other operating expense, net           (929 ) 929  
Consolidated $ 173,453   $ 3,893   $ 177,346   $ 1,519   $ 82,767   $ (929 ) $ 93,989  
Three Months Ended June 30, 2017
Americas $ 117,719 $ $ 117,719 $ $ 42,854 $ $ 74,865
International 75,954 75,954 34,095 41,859
Corporate (33,440 ) (33,440 ) 1,900 1,341 (36,681 )
Other operating income, net             (7,829 ) 7,829  
Consolidated $ 160,233     $   $ 160,233   $ 1,900   $ 78,290   $ (7,829 ) $ 87,872  
 
 
(In thousands)

OIBDAN
excluding
effects of
foreign
exchange

 

Foreign
exchange
effects

 



OIBDAN
(subtotal)

 

Non-cash
compensation
expenses

 

Depreciation
and
amortization

 

Other
operating
income, net

 

Operating
income (loss)

Six Months Ended June 30, 2018
Americas $ 203,807 $ 2 $ 203,809 $ $ 87,627 $ $ 116,182
International 113,198 6,449 119,647 77,248 42,399
Corporate (68,339 ) (1,399 ) (69,738 ) 3,625 1,952 (75,315 )
Other operating income, net           (875 ) 875  
Consolidated $ 248,666   $ 5,052   $ 253,718   $ 3,625   $ 166,827   $ (875 ) $ 84,141  
Six Months Ended June 30, 2017
Americas $ 197,036 $ $ 197,036 $ $ 85,670 $ $ 111,366
International 95,931 95,931 67,247 28,684
Corporate (65,621 ) (65,621 ) 4,259 2,867 (72,747 )
Other operating income, net           (40,440 ) 40,440  
Consolidated $ 227,346   $   $ 227,346   $ 4,259   $ 155,784   $ (40,440 ) $ 107,743  

Reconciliation of Revenues, excluding effects of foreign
exchange rates, to Revenues

       
(In thousands) Three Months Ended
June 30,
%
Change
Six Months Ended
June 30,

%
Change

 

2018   2017 2018   2017
Consolidated revenue $ 711,980 $ 672,319 5.9 % $ 1,310,691 1,217,045 7.7 %
Excluding: Effects of foreign exchange (22,488 )   (57,266 )  
Consolidated revenue excluding effects of foreign exchange $ 689,492   $ 672,319   2.6 % $ 1,253,425   $ 1,217,045   3.0 %
 
Americas revenue $ 299,922 $ 300,191 (0.1 )% $ 555,769 $ 560,537 (0.9 )%
Excluding: Effects of foreign exchange 2     2    
Americas revenue excluding effects of foreign exchange $ 299,924   $ 300,191   (0.1 )% $ 555,771   $ 560,537   (0.9 )%
 
International revenue $ 412,058 $ 372,128 10.7 % $ 754,922 $ 656,508 15.0 %
Excluding: Effects of foreign exchange (22,490 )   (57,268 )  
International revenue excluding effects of foreign exchange $ 389,568   $ 372,128   4.7 % $ 697,654   $ 656,508   6.3 %

Reconciliation of Direct operating and SG&A expenses, excluding
effects of foreign exchange rates, to Direct operating and SG&A
expenses

       
(In thousands) Three Months Ended
June 30,
%
Change
Six Months Ended
June 30,

%
Change

 

2018   2017 2018   2017
Consolidated direct operating and SG&A expenses $ 498,225 $ 478,646 4.1 % $ 987,235 $ 924,078 6.8 %
Excluding: Effects of foreign exchange (18,012 )   (50,815 )  
Consolidated direct operating and SG&A expenses excluding effects of
foreign exchange
$ 480,213   $ 478,646   0.3 % $ 936,420   $ 924,078   1.3 %
 
Americas direct operating and SG&A expenses $ 178,137 $ 182,472 (2.4 )% $ 351,960 $ 363,501 (3.2 )%
Excluding: Effects of foreign exchange 3     4    
Americas direct operating and SG&A expenses excluding effects of
foreign exchange
$ 178,140   $ 182,472   (2.4 )% $ 351,964   $ 363,501   (3.2 )%
 
International direct operating and SG&A expenses $ 320,088 $ 296,174 8.1 % $ 635,275 $ 560,577 13.3 %
Excluding: Effects of foreign exchange (18,015 )   (50,819 )  
International direct operating and SG&A expenses excluding effects
of foreign exchange
$ 302,073   $ 296,174   2.0 % $ 584,456   $ 560,577   4.3 %

Reconciliation of Corporate expenses, excluding non-cash
compensation expenses and effects of foreign exchange rates, to
Corporate Expenses

       
(In thousands) Three Months Ended
June 30,
%
Change
Six Months Ended
June 30,

%
Change

 

2018   2017 2018   2017
Corporate Expense $ 37,928 $ 35,340 7.3 % $ 73,363 $ 69,880 5.0 %
Excluding: Non-cash compensation expense (1,519 ) (1,900 ) (3,625 ) (4,259 )
Corporate Expense excluding non-cash compensation expense $ 36,409 $ 33,440 8.9 % $ 69,738 $ 65,621 6.3 %
Excluding: Effects of foreign exchange $ (583 ) $   $ (1,399 ) $  
Corporate Expense excluding non-cash compensation expense and
effects of foreign exchange
$ 35,826   $ 33,440   7.1 % $ 68,339   $ 65,621   4.1 %

Reconciliation of Consolidated and Segment Revenues, excluding
effects of foreign exchange rates and results from business sold,
to Consolidated and Segment Revenues

       
(In thousands)

Three Months Ended
June 30,

%
Change

Six Months Ended
June 30,

%
Change

2018   2017 2018   2017
Consolidated revenue $ 711,980 $ 672,319 5.9 % $ 1,310,691 $ 1,217,045 7.7 %
Excluding: Revenue from business sold (6,412 ) (11,082 )
Excluding: Effects of foreign exchange (22,488 )   (57,266 )  
Consolidated revenue, excluding effects of foreign exchange and
revenue from business sold
$ 689,492   $ 665,907   3.5 % $ 1,253,425   $ 1,205,963   3.9 %
Americas revenue $ 299,922 $ 300,191 (0.1 )% $ 555,769 $ 560,537 (0.9 )%
Excluding: Revenue from business sold (6,412 ) (11,082 )
Excluding: Foreign exchange increase 2     2    
Americas revenue, excluding effects of foreign exchange and revenue
from business sold
$ 299,924   $ 293,779   2.1 % $ 555,771   $ 549,455   1.1 %

Reconciliation of Consolidated and Segment Direct operating and
SG&A expenses, excluding effects of foreign exchange rates and
results from business sold, to Consolidated and Segment Direct
operating and SG&A expenses

       
(In thousands)

Three Months Ended
June 30,

%
Change

Six Months Ended
June 30,

%
Change

2018   2017 2018   2017
Consolidated direct operating and SG&A expenses $ 498,225 $ 478,646 4.1 % $ 987,235 $ 924,078 6.8 %
Excluding: Operating expenses from business sold (5,727 ) (11,165 )
Excluding: Effects of foreign exchange (18,012 )   (50,815 )  
Consolidated direct operating and SG&A expenses, excluding effects
of foreign exchange and operating expenses from business sold
$ 480,213   $ 472,919   1.5 % $ 936,420   $ 912,913   2.6 %
Americas direct operating and SG&A expenses $ 178,137 $ 182,472 (2.4 )% $ 351,960 $ 363,501 (3.2 )%
Excluding: Operating expenses from business sold (5,727 ) (11,165 )
Excluding: Foreign exchange increase 3     4    
Americas direct operating and SG&A expenses, excluding effects of
foreign exchange and operating expenses from business sold
$ 178,140   $ 176,745   0.8 % $ 351,964   $ 352,336   (0.1 )%

Reconciliation of Consolidated and Segment OIBDAN, excluding
effects of foreign exchange rates and results from business sold
to, Consolidated and Segment Operating Income (Loss)

       
(In thousands)

Three Months Ended
June 30,

%
Change

Six Months Ended
June 30,

%
Change

2018   2017 2018   2017
Consolidated operating income (loss) $ 93,989 $ 87,872 7.0 % $ 84,141 $ 107,743 (21.9 )%
Excluding: Revenue, direct operating and SG&A expenses from business
sold
(685 ) 83
Excluding: Effects of foreign exchange (3,893 ) (5,052 )
Excluding: Non-cash compensation expense 1,519 1,900 3,625 4,259
Excluding: Depreciation and amortization 82,767 78,290 166,827 155,784
Excluding: Other operating (income) expense, net (929 ) (7,829 ) (875 ) (40,440 )
Consolidated OIBDAN, excluding effects of foreign exchange and
OIBDAN from business sold
$ 173,453   $ 159,548   8.7 % $ 248,666   $ 227,429   9.3 %
Americas Outdoor operating income $ 78,662 $ 74,865 5.1 % $ 116,182 $ 111,366 4.3 %
Excluding: Revenue, direct operating and SG&A expenses from business
sold
(685 ) 83
Excluding: Effects of foreign exchange (1 ) (2 )
Excluding: Depreciation and amortization 43,123   42,854   87,627   85,670  
Americas Outdoor OIBDAN, excluding effects of foreign exchange and
OIBDAN from business sold
$ 121,784   $ 117,034   4.1 % $ 203,807   $ 197,119   3.4 %

About Clear Channel Outdoor Holdings, Inc.

Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) is one of the world's
largest outdoor advertising companies with over 450,000 displays in 31
countries across Asia, Europe, Latin America and North America. Reaching
millions of people monthly, including consumers in 43 of the top 50 U.S.
markets, Clear Channel Outdoor enables advertisers to engage with
consumers through innovative advertising solutions. Clear Channel
Outdoor is pioneering the integration of out-of-home with mobile and
social platforms, and the company's digital platform includes more than
1,200 digital billboards across 28 markets in the U.S. and more than
14,000 digital displays in international markets. More information is
available at www.clearchanneloutdoor.com
and www.clearchannelinternational.com.

Certain statements in this press release 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, uncertainties and other
factors which may cause the actual results, performance or achievements
of Clear Channel Outdoor Holdings, Inc. and its subsidiary Clear Channel
International B.V. to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. The words or phrases "guidance," "believe," "expect,"
"anticipate," "estimates," "forecast" and similar words or expressions
are intended to identify such forward-looking statements. In addition,
any statements that refer to expectations or other characterizations of
future events or circumstances, such as statements about our business
plans, strategies and initiatives and our expectations about certain
markets, are forward-looking statements. These statements are not
guarantees of future performance and are subject to certain risks,
uncertainties and other factors, some of which are beyond our control
and are difficult to predict. Various risks that could cause future
results to differ from those expressed by the forward-looking statements
included in this press release include, but are not limited to: weak or
uncertain global economic condition; our ability to service our debt
obligations and to fund our operations and capital expenditures;
industry conditions, including competition; our dependence on our
management team and other key individuals; our ability to obtain key
municipal concessions; fluctuations in operating costs; technological
changes and innovations; shifts in population and other demographics;
other general economic and political conditions in the United States and
in other countries in which we currently do business; changes in labor
conditions and management; the impact of future dispositions,
acquisitions and other strategic transactions; legislative or regulatory
requirements; regulations and consumer concerns regarding privacy and
data protection; restrictions on outdoor advertising of certain
products; capital expenditure requirements; fluctuations in exchange
rates and currency values; risks of doing business in foreign countries;
the identification of a material weakness in our internal controls over
financial reporting; our relationship with iHeartCommunications,
including its ability to elect all of the members of our board of
directors and its ability as our controlling stockholder to determine
the outcome of matters submitted to our stockholders and certain
additional matters governed by intercompany agreements between us; the
risks and uncertainties associated with the iHeart Chapter 11 Cases on
us and iHeartCommunications, our primary direct or indirect external
source of capital, which is operating as a "debtor-in-possession" under
the jurisdiction of the Bankruptcy Court; the obligations and
restrictions imposed on us by our agreements with iHeartCommunucations;
the risk that we may be unable to replace the services
iHeartCommunications provides us in a timely manner or on comparable
terms; the risk that the iHeart Chapter 11 Cases may result in
unfavorable tax consequences for us and impair our ability to utilize
our federal income tax net operating loss carryforwards in future years;
the impact of our substantial indebtedness, including the effect of our
leverage on our financial position and earnings; the ability of our
subsidiaries to dividend or distribute funds to us in order for us to
repay our debts; the restrictions contained in the agreements governing
our indebtedness limiting our flexibility in operating our business; and
the effect of credit ratings downgrades. Other unknown or unpredictable
factors also could have material adverse effects on the Company's future
results, performance or achievements. In light of these risks,
uncertainties, assumptions and factors, the forward-looking events
discussed in this press release may not occur. You are cautioned not to
place undue reliance on these forward-looking statements, which speak
only as of the date stated, or if no date is stated, as of the date of
this press release. Other key risks are described in the Company's
reports filed with the U.S. Securities and Exchange Commission,
including the section entitled "Item 1A. Risk Factors" of Clear Channel
Outdoor Holdings, Inc.'s Annual Reports on Form 10-K and Quarterly
Reports on Form 10-Q. Except as otherwise stated in this press release,
the Company does not undertake any obligation to publicly update or
revise any forward-looking statements because of new information, future
events or otherwise.

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