SAN ANTONIO, Feb. 27, 2020
/PRNewswire/ -- Clear Channel Outdoor Holdings, Inc. (NYSE:
CCO) ("the Company") today reported financial results for the
quarter and year ended December 31, 2019.
"2019 was a transformative year for Clear Channel Outdoor," said
William Eccleshare, Worldwide Chief
Executive Officer of Clear Channel Outdoor Holdings, Inc. "Our
priority has been and continues to be capitalizing on the
fundamental strength of the out-of-home industry, particularly in
the Americas which accounts for about 70% of OIBDAN and delivered
7% revenue, 16% operating income, and 9% OIBDAN growth in 2019.
"In addition, we continue to actively evaluate additional
opportunities to further improve our capital structure, pay down
debt and unlock shareholder value. This may include potential
dispositions, to the extent we have an opportunity to accelerate
this path to value, and fairly reflects the future value of a
business or region. Our focus is on taking the necessary steps to
de-lever our balance sheet, enhance our financial flexibility, and
invest in technology to drive growth in our higher margin markets,
particularly in the Americas.
"Through the unwavering dedication and hard-work of our teams,
we continue to manage the business through evolving market dynamics
while enhancing our ability to meet our advertising partners' needs
and positioning ourselves to achieve our vision of creating a
unique, mass reach, media platform. I am confident in our ability
to execute on our strategic plan in 2020 and beyond as we continue
to take a disciplined approach in driving sustainable, profitable
value for our shareholders."
Key Financial Highlights
The Company's key financial highlights for the fourth quarter of
2019, as compared to the same period of 2018, include:
- Consolidated revenue decreased $2.4
million, or 0.3%. After adjusting for a $10.0 million impact from movements in foreign
exchange rates, consolidated revenue increased $7.6 million, or 1.0%.
-
- Americas revenue increased $14.7
million, or 4.5%.
- International revenue decreased $17.1
million, or 4.1%. After adjusting for a $10.0 million impact from movements in foreign
exchange rates, International revenue decreased $7.1 million, or 1.7%. The decrease was primarily
due to weakening economic conditions in China.
- Operating income decreased $2.8
million, or 2.4%, to $113.6
million.
- OIBDAN decreased $0.1 million, or
0.1%, to $192.1 million. Excluding
the impact from movements in foreign exchange rates, OIBDAN
increased $2.1 million, or 1.1%, to
$194.2 million.
The Company's key financial highlights for the full year of
2019, as compared to 2018, include:
- Consolidated revenue decreased $37.9
million, or 1.4%. After adjusting for a $70.8 million impact from movements in foreign
exchange rates, consolidated revenue increased $32.9 million, or 1.2%.
-
- Americas revenue increased $83.7
million, or 7.0%.
- International revenue decreased $121.6
million, or 7.9%. After adjusting for a $70.8 million impact from movements in foreign
exchange rates, International revenue decreased $50.8 million, or 3.3%. The decrease was
primarily due to weakening economic conditions in China.
- Operating income increased $1.1
million, or 0.4%, to $252.9
million.
- OIBDAN decreased $2.4 million, or
0.4%, to $582.1 million. Excluding
the impact from movements in foreign exchange rates, OIBDAN
increased $4.2 million, or 0.7%, to
$588.7 million.
On May 1, 2019, the Company
separated from iHeartMedia, Inc. ("iHeartMedia") (the "Separation)
in connection with iHeartMedia's emergence from bankruptcy.
Additionally, the Company accessed the capital markets several
times this year to issue equity and refinance debt, resulting in an
improved balance sheet, stronger cash flow generation and extended
maturity profile. Refer to the "Liquidity and Financial
Position" section of this press release for more details.
Key Non-Financial Highlights
The Company's key fourth quarter non-financial highlights
include:
Americas:
- Americas markets added 35 new digital billboards in the fourth
quarter, resulting in a total of 92 new digital billboards in 2019,
for a total of more than 1,400 digital billboards at December 31, 2019. Our Americas business had more
than 1,700 digital billboards and street furniture displays at
December 31, 2019.
- Clear Channel Outdoor ("CCO") recently announced a new
partnership with Broadsign, the leading digital out-of-home
("DOOH") marketing platform. Brands can now tap into CCO's U.S.
DOOH inventory via Broadsign's programmatic supply-side platform,
Reach. Several brands, from sports entities to leading healthcare
companies, have already tapped the integration to extend the reach,
impact and efficiency of online and mobile campaigns using DOOH
bought programmatically across CCO's roadside digital media.
- CCO recent wins also included digital screens inside the
Minneapolis Skyway System, four new street level wallscapes at Mayo
Clinic Square, seven new structures and 15 faces in Las Vegas, as well as the Los Angeles bus contract.
- Clear Channel Airports ("CCA") launched a cloud-based reporting
web app for U.S. airports to have online access to their
advertising program's performance data. This is an airport-industry
out-of-home first in the U.S. and allows airports access to
pertinent advertising data 24/7, including monthly revenue,
advertiser and payment reports in the first version, to be followed
by occupancy and rate attainment in the future.
- CCA continues to win contracts in the Caribbean, with the Piarco International
Airport and A.N.R. Robinson
International Airport in Trinidad and
Tobago, the Queen Beatrix International Airport in
Aruba and the Grantley Adams
International Airport in Barbados.
CCA is also expanding its digital presence with the first-ever
digital media network at Jackson-Medgar Wiley Evers International
Airport in Jackson, Mississippi
and a renewal of its contract with the Louis Armstrong New Orleans
International Airport, to include new digital displays.
International:
- International markets added 792 new digital displays in the
fourth quarter, resulting in a total of 2,103 new digital displays
in 2019, for a total of more than 15,000 digital displays at
December 31, 2019.
- Clear Channel U.K. will operate one of the U.K.'s biggest
digital malls advertising network with its new Hammerson contract.
As of June 2020, Clear Channel U.K.
will expand its Malls Live Network with 223 full motion digital
advertising screens across Hammerson's 12 flagship destinations in
the U.K.
- Clear Channel France renewed contracts to manage the
advertising bus networks in both the city of Grenoble and the
Mulhouse agglomération. The four-year contract for the Transport
Network of Grenoble began in January
2020 and covers the city's whole bus network (768
advertising panels). The three-year contract with the Soléa Network
covers the bus network across the 39 municipalities in the Mulhouse
agglomération (428 advertising panels).
- Clear Channel Finland won a new contract with the Port of
Helsinki Ltd. The contract begins in January
2020 and will enable advertisers to reach the 12 million
passengers who pass through the ferry port each year.
- Clear Channel Switzerland was awarded a new contract by the
City of Zurich to install 24
additional digital screens in the center of the city. The expansion
will take Clear Channel Switzerland's digital street furniture
network to a total of 80 screens across Zurich. The new screens will be available from
mid-2020.
- Clear Channel Spain is adding 20 new digital screens in the
city of Seville as part of its
contract with the Municipal Transport Company of the City of Seville. In addition, the team has
just begun to market the digital screens to the Lagoh Shopping
Centre, the largest shopping center in Seville, which attracts 14 million visitors
annually.
- Clear Channel Sweden unveiled a new Spectacular digital
billboard in the city of Gothenburg which will be seen by thousands of
pedestrians, cyclists, motorists and road-users every year – making
the placement one of Sweden's most
prominent advertising sites.
- Clear Channel Norway extended its contract with Sporveien, the
municipally-owned public transport operator in Oslo, until 2022. The contract includes a
total of 327 displays in metro stations and trains, trams and a
large number of buses across central and regional Oslo. The contract will include the continued
expansion of digital screens, which are already available in three
metro stations.
- Clear Channel Brazil won a 20-year street furniture contract in
Porto Alegre, expanding its reach
to the south of Brazil. The
installation of 168 clocks is expected to begin in mid-2020 and be
finished by the end of the year.
Guidance and Outlook
- The Company expects Americas revenue growth to be in the
mid-single digits and Americas Adjusted EBITDA growth to be in the
mid-to-high-single digits in 2020.
- The Company expects International revenue growth and Adjusted
EBITDA growth, excluding China and
any foreign currency impact, to be in the low-to-mid-single digits
in 2020.
- The Company expects consolidated capital expenditures,
excluding China, to be in the
$200 million to $210 million range in 2020.
GAAP Measures by Segment
(In
thousands)
|
Three Months
Ended
December 31,
|
|
%
Change
|
|
Years Ended
December 31,
|
|
%
Change
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
$
|
344,904
|
|
$
|
330,158
|
|
4.5%
|
|
$
|
1,273,018
|
|
$
|
1,189,348
|
|
7.0%
|
International
|
400,328
|
|
417,430
|
|
(4.1)%
|
|
1,410,792
|
|
1,532,357
|
|
(7.9)%
|
Consolidated
Revenue
|
$
|
745,232
|
|
$
|
747,588
|
|
(0.3)%
|
|
$
|
2,683,810
|
|
$
|
2,721,705
|
|
(1.4)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating and
SG&A expenses1:
|
Americas
|
$
|
199,706
|
|
$
|
191,899
|
|
4.1%
|
|
$
|
765,782
|
|
$
|
724,347
|
|
5.7%
|
International
|
317,538
|
|
324,287
|
|
(2.1)%
|
|
1,207,323
|
|
1,269,239
|
|
(4.9)%
|
Consolidated
Direct operating and
SG&A expenses2
|
$
|
517,244
|
|
$
|
516,186
|
|
0.2%
|
|
$
|
1,973,105
|
|
$
|
1,993,586
|
|
(1.0)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)2:
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
$
|
106,519
|
|
$
|
98,863
|
|
7.7%
|
|
$
|
346,850
|
|
$
|
298,195
|
|
16.3%
|
International
|
46,905
|
|
58,819
|
|
(20.3)%
|
|
64,818
|
|
114,919
|
|
(43.6)%
|
Corporate
|
(42,569)
|
|
(41,998)
|
|
(1.4)%
|
|
(154,628)
|
|
(156,037)
|
|
0.9%
|
Impairment
charges
|
—
|
|
—
|
|
— %
|
|
(5,300)
|
|
(7,772)
|
|
31.8%
|
Other operating
income, net
|
2,794
|
|
798
|
|
|
|
1,162
|
|
2,498
|
|
|
Consolidated
Operating income
|
$
|
113,649
|
|
$
|
116,482
|
|
(2.4)%
|
|
$
|
252,902
|
|
$
|
251,803
|
|
0.4%
|
|
1
Direct operating and SG&A expenses as included throughout this
earnings release refers to the sum of direct operating expenses
(excluding depreciation and amortization) and selling, general and
administrative expenses (excluding depreciation and
amortization).
|
|
2
Americas and International operating income (loss) is calculated as
revenue less: (a) direct operating and SG&A expenses and (b)
depreciation and amortization. Corporate is calculated as the sum
of corporate expenses, including non-cash compensation expenses,
and corporate depreciation and amortization. Refer to the
reconciliation of operating income (loss) to OIBDAN at the end of
this press release for the depreciation and amortization amounts
for each period.
|
Weighted Average Shares Outstanding
The following table presents the weighted average common shares
outstanding:
(In
thousands)
|
Years Ended
December 31,
|
|
2019
|
|
2018
|
Weighted average
common shares outstanding – Basic
|
413,087
|
|
361,740
|
Weighted average
common shares outstanding – Diluted
|
413,087
|
|
361,740
|
Non-GAAP Measures by Segment1 (see preceding table
for comparable GAAP measures)
(In
thousands)
|
Three Months
Ended
December 31,
|
|
%
Change
|
|
Years Ended
December 31,
|
|
%
Change
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
Revenue excluding
movements in foreign exchange2:
|
|
Americas
|
$
|
344,904
|
|
$
|
330,158
|
|
4.5%
|
|
$
|
1,273,016
|
|
$
|
1,189,348
|
|
7.0%
|
International
|
410,332
|
|
417,430
|
|
(1.7)%
|
|
1,481,560
|
|
1,532,357
|
|
(3.3)%
|
Consolidated
Revenue excluding
movements in foreign exchange2
|
$
|
755,236
|
|
$
|
747,588
|
|
1.0%
|
|
$
|
2,754,576
|
|
$
|
2,721,705
|
|
1.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating and
SG&A expenses excluding movements in foreign
exchange2:
|
|
Americas
|
$
|
199,707
|
|
$
|
191,899
|
|
4.1%
|
|
$
|
765,782
|
|
$
|
724,347
|
|
5.7%
|
International
|
325,343
|
|
324,287
|
|
0.3%
|
|
1,269,276
|
|
1,269,239
|
|
— %
|
Consolidated
Direct operating and
SG&A expenses excluding
movements in foreign exchange2
|
$
|
525,050
|
|
$
|
516,186
|
|
1.7%
|
|
$
|
2,035,058
|
|
$
|
1,993,586
|
|
2.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
OIBDAN3:
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
$
|
145,198
|
|
$
|
138,259
|
|
5.0%
|
|
$
|
507,236
|
|
$
|
465,001
|
|
9.1%
|
International
|
82,790
|
|
93,143
|
|
(11.1)%
|
|
203,469
|
|
263,118
|
|
(22.7)%
|
Corporate
|
(35,931)
|
|
(39,238)
|
|
8.4%
|
|
(128,571)
|
|
(143,573)
|
|
10.4%
|
Consolidated
OIBDAN3
|
$
|
192,057
|
|
$
|
192,164
|
|
(0.1)%
|
|
$
|
582,134
|
|
$
|
584,546
|
|
(0.4)%
|
|
|
|
|
|
|
|
|
|
|
|
|
OIBDAN excluding
movements in foreign exchange2:
|
|
Americas
|
$
|
145,197
|
|
$
|
138,259
|
|
5.0%
|
|
$
|
507,234
|
|
$
|
465,001
|
|
9.1%
|
International
|
84,989
|
|
93,143
|
|
(8.8)%
|
|
212,284
|
|
263,118
|
|
(19.3)%
|
Corporate
|
(35,954)
|
|
(39,238)
|
|
8.4%
|
|
(130,822)
|
|
(143,573)
|
|
8.9%
|
Consolidated
OIBDAN excluding
movements in foreign exchange2
|
$
|
194,232
|
|
$
|
192,164
|
|
1.1%
|
|
$
|
588,696
|
|
$
|
584,546
|
|
0.7%
|
|
1
See the end of this press release for reconciliations of (i)
revenue to revenue excluding effects of foreign exchange rates, by
segment and consolidated; (ii) direct operating and SG&A
expenses to direct operating and SG&A expenses excluding
effects of foreign exchange rates, by segment and consolidated;
(iii) corporate expenses to corporate expenses excluding non-cash
compensation expenses and effects of foreign exchange rates; and
(iv) operating income (loss) to OIBDAN and OIBDAN excluding effects
of foreign exchange rates, by segment and consolidated.
2
Revenue excluding effects of foreign exchange rates, direct
operating and SG&A expenses excluding effects of foreign
exchange rates, and OIBDAN excluding 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 comparable prior period.
|
|
3
See the definition of OIBDAN under the Supplemental Disclosure
section in this press release.
|
Fourth Quarter 2019 Results
Consolidated
Consolidated revenue decreased $2.4
million, or 0.3%, during the fourth quarter of 2019 compared
to the same period of 2018. After adjusting for a $10.0 million impact from movements in foreign
exchange rates, consolidated revenue increased $7.6 million, or 1.0%.
Consolidated direct operating and SG&A expenses increased
$1.1 million during the fourth
quarter of 2019 compared to the same period of 2018. After
adjusting for a $7.8 million impact
from movements in foreign exchange rates, consolidated direct
operating and SG&A expenses increased $8.9 million, or 1.7%.
Consolidated operating income decreased $2.8 million, or 2.4%, to $113.6 million during the fourth quarter of
2019 compared to the same period of 2018, and the Company's OIBDAN
decreased $0.1 million, or 0.1%, to
$192.1 million over the same
period. After adjusting for movements in foreign exchange rates,
the Company's OIBDAN increased $2.1
million, or 1.1%, to $194.2 million.
Americas
Americas revenue increased $14.7
million, or 4.5%, during the fourth quarter of 2019 compared
to the same period of 2018. The largest driver was a 10.5% increase
in digital revenue from billboards and street furniture, which was
driven by a combination of the deployment of new digital displays
and organic growth. Increases in revenue from print billboards and
digital airport displays also contributed to the growth in revenue.
Americas total digital revenue increased 10.8% to $118.5 million during the fourth quarter of 2019,
including $83.9 million from
billboards and street furniture, as compared to $106.9 million during the fourth quarter of 2018,
including $76.0 million from
billboards and street furniture. Revenue generated from national
sales comprised 38.3% and 38.5% of total revenue for the three
months ended December 31, 2019 and 2018, respectively, while
the remainder of revenue was generated from local sales.
Americas direct operating and SG&A expenses increased
$7.8 million, or 4.1%, during the
fourth quarter of 2019 compared to the same period of 2018. The
largest driver of this increase was higher site lease expenses
related to higher revenue. Higher SG&A expenses, including
employee compensation and property taxes, also contributed to the
overall increase.
Americas operating income increased $7.7
million, or 7.7%, to $106.5 million during the fourth quarter of
2019 compared to the same period of 2018, and Americas OIBDAN
increased $6.9 million, or 5.0%, to
$145.2 million over the same
period.
International
International revenue decreased $17.1
million, or 4.1%, during the fourth quarter of 2019 compared
to the same period of 2018. After adjusting for a $10.0 million impact from movements in foreign
exchange rates, International revenue decreased $7.1 million, or 1.7%, primarily due to a
$13.7 million decrease in
China revenues due to weakening
economic conditions. Clear Media Limited ("Clear Media"), our
non-wholly owned Chinese subsidiary, remains cautious about the
operating environment in 2020 as uncertainty continues in
China's overall economy.
Non-renewal of contracts in certain countries, including
Italy and Spain, also contributed to the decrease in
International revenue. These decreases were partially offset by
increases in revenue from new contracts in France and digital display expansion in
various markets, particularly in the United Kingdom ("U.K."). International digital
revenue increased 9.3% to $122.1
million during the fourth quarter of 2019 as compared to
$111.8 million during the fourth
quarter of 2018. Excluding the $2.8 million impact from movements in
foreign exchange rates, International digital revenue increased
$13.2 million, or 11.8%, during the
fourth quarter of 2019 compared to the same period of 2018.
International direct operating and SG&A expenses decreased
$6.7 million, or 2.1%, during the
fourth quarter of 2019 compared to the same period of 2018. After
adjusting for a $7.8 million impact
from movements in foreign exchange rates, International direct
operating and SG&A expenses increased $1.1 million, or 0.3%. Higher site lease and
related expenses in countries with new contracts, particularly in
France, and in countries
experiencing revenue growth, particularly in the U.K., were
partially offset by lower expenses, including site lease, labor,
material and employee compensation expenses, related to the
non-renewal of contracts in Italy
and Spain; lower spending on
restructuring and other cost initiatives; and lower direct
operating expenses in China.
International operating income decreased $11.9 million, or 20.3%, to $46.9 million during the fourth quarter of
2019 compared to the same period of 2018, and International OIBDAN
decreased $10.4 million, or 11.1%, to
$82.8 million over the same
period. After adjusting for movements in foreign exchange rates,
International OIBDAN decreased $8.2 million, or 8.8%, to $85.0 million.
Full Year 2019 Results
Consolidated
Consolidated revenue decreased $37.9
million, or 1.4%, during 2019 as compared to 2018. After
adjusting for a $70.8 million impact
from movements in foreign exchange rates, consolidated revenue
increased $32.9 million, or 1.2%.
Consolidated direct operating and SG&A expenses decreased
$20.5 million, or 1.0%, during 2019
as compared to 2018. After adjusting for a $62.0 million impact from movements in foreign
exchange rates, consolidated direct operating and SG&A expenses
increased $41.5 million, or 2.1%.
Consolidated operating income increased $1.1 million, or 0.4%, to $252.9 million, during 2019 as compared to 2018,
and the Company's OIBDAN decreased $2.4
million, or 0.4%, to $582.1
million over the same period. After adjusting for movements
in foreign exchange rates, the Company's OIBDAN increased
$4.2 million, or 0.7%, to
$588.7 million.
Americas
Americas revenue increased $83.7
million, or 7.0%, during 2019 compared to 2018. The largest
driver was a 13.6% increase in digital revenue from billboards and
street furniture, which was driven by a combination of organic
growth and the deployment of new digital displays. Increases in
revenue from print billboards, digital airport displays, other
transit displays and wallscapes also contributed to the growth in
revenue. Americas total digital revenue increased 15.0% to
$411.0 million during 2019, including
$303.5 million from billboards and
street furniture, as compared to $357.4
million during 2018, including $267.1
million from billboards and street furniture. Revenue
generated from national sales comprised 39.3% and 38.5% of total
revenue for 2019 and 2018 respectively, while the remainder of
revenue was generated from local sales.
Americas direct operating and SG&A expenses increased
$41.4 million, or 5.7%, during 2019
as compared to 2018, primarily due to higher site lease expenses
related to higher revenue and higher employee compensation expense,
including variable incentive compensation.
Americas operating income increased $48.7
million, or 16.3%, to $346.9
million during 2019 as compared to 2018, and Americas OIBDAN
increased $42.2 million, or 9.1%, to
$507.2 million over the same
period.
International
International revenue decreased $121.6
million, or 7.9%, during 2019 as compared to 2018. After
adjusting for a $70.8 million impact
from movements in foreign exchange rates, International revenue
decreased $50.8 million, or 3.3%,
primarily due to a $53.5 million
decrease in China revenues due to
weakening economic conditions. Non-renewal of contracts in certain
countries, including Italy and
Spain, also contributed to the
decrease in International revenue. These decreases were partially
offset by increases in revenue from digital display expansion in
various markets, particularly in the U.K., and new contracts in
France. International digital
revenue increased 7.0% to $372.7
million during 2019 as compared to $348.5 million during 2018. Excluding the
$17.8 million impact of movements in
foreign exchange rates, International digital revenue increased
$42.1 million, or 12.1%, in 2019
compared to 2018.
International direct operating and SG&A expenses decreased
$61.9 million, or 4.9%, during 2019
as compared to 2018. After adjusting for a $62.0 million impact from movements in foreign
exchange rates, International direct operating and SG&A
expenses increased $0.1
million. Higher site lease expenses in countries
experiencing revenue growth, particularly in the U.K., and in
countries with new contracts, particularly in France; higher marketing and employee
compensation expenses in the U.K., primarily due to its favorable
operating performance; and higher consulting fees in France were offset by lower expenses,
including site lease, labor, material, and employee compensation
expenses, related to the non-renewals of contracts in Italy and Spain and lower spending on restructuring and
other cost initiatives.
International operating income decreased $50.1 million, or 43.6%, to $64.8 million during 2019 as compared to 2018,
and International OIBDAN decreased $59.6
million, or 22.7%, to $203.5
million over the same period. After adjusting for movements
in foreign exchange rates, International OIBDAN decreased
$50.8 million, or 19.3%, to
$212.3 million.
Liquidity and Financial Position
Cash and Cash Equivalents
As of December 31, 2019, the Company had $398.9 million of cash on its balance sheet,
including $111.1 million of cash held
outside the U.S. by the Company's subsidiaries.
The following table shows selected cash flow activities during
the year ended December 31, 2019:
(In
thousands)
|
Year Ended
December 31,
|
|
2019
|
Net cash provided by
operating activities
|
$
|
214,526
|
Net cash used for
investing activities
|
(220,042)
|
Net cash provided by
financing activities
|
220,009
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(287)
|
Net increase in cash,
cash equivalents and restricted cash
|
214,206
|
Cash paid for
interest on debt
|
321,107
|
Cash paid for
dividends on mandatorily-redeemable preferred stock
|
2,785
|
Cash paid for income
taxes, net of refunds
|
25,198
|
Separation from iHeartMedia
In connection with the Separation from iHeartMedia on
May 1, 2019, certain intercompany
notes and accounts between the Company and iHeartMedia were
settled, terminated and canceled, and the Company received a total
net payment of $115.8 million from
iHeartCommunications, along with the Clear Channel tradename and
other trademarks.
Capital Expenditures
Capital expenditures for the year ended December 31, 2019
were $232.5 million compared to
$211.1 million for the same period in
2018.
Debt
In 2019 the Company refinanced all of its outstanding long-term
debt, resulting in a decrease in future cash interest payments and
an extension of debt maturities. The following is a summary of the
Company's significant debt activity in 2019:
- In February, Clear Channel Worldwide Holdings, Inc. ("CCWH")
issued $2,235.0 million of new 9.25%
Senior Notes due 2024 (which ceased to be subordinated indebtedness
following the August refinancing transactions described below) (the
"New CCWH Senior Notes"), in connection with the refinancing of the
7.625% CCWH Series A and Series B Senior Subordinated Notes Due
2020 (the "CCWH Subordinated Notes");
- In July, the Company issued 100 million shares of common stock
in a public offering and, in August used the net proceeds to redeem
approximately $333.5 million
aggregate principal amount of the New CCWH Senior Notes;
- In August, the Company issued $1,250.0
million of new 5.125% Senior Secured Notes due 2027 and
entered into new senior secured credit facilities, consisting of a
$2,000.0 million seven-year term loan
facility and a $175.0 million
revolving credit facility (the "New Revolving Credit Facility").
Proceeds were used to redeem the 6.5% Series A and Series B Senior
Notes due 2022 and the 8.75% Senior Notes due 2020. Additionally,
the Company terminated its existing receivables-based credit
facility and entered into a new $125.0
million receivables-based credit facility ("the "New
Receivables-Based Credit Facility"); and
- In December, the Company made a principal payment of
$5.0 million on the Term Loan
Facility in accordance with the terms of the related credit
agreement.
The Company anticipates having approximately $347.2 million of cash interest payment
obligations in 2020.
Refer to Table 3 in this press release for additional detail
regarding the outstanding debt balance.
Mandatorily-Redeemable Preferred Stock
In May, the Company issued and sold 45,000 shares of
mandatorily-redeemable Series A Preferred Stock (the "Preferred
Stock") for a cash purchase price (before fees and expenses) and
initial liquidation preference of $45.0 million. During the year ended
December 31, 2019, the Company paid cash dividends on the
Preferred Stock of $2.8 million.
Conference Call
The Company will host a conference call to discuss results on
February 27, 2020 at 8:30 a.m. Eastern
Time. The conference call number is 877-665-6356 (U.S.
callers) and 270-215-9897 (International callers), and the access
code for both is 3791361. A live audio webcast of the conference
call will also be available on the events section of the Clear
Channel Outdoor Holdings, Inc. website (investor.clearchannel.com).
After the live conference call, a replay of the webcast will be
available for a period of 30 days on the recent events section of
the Clear Channel Outdoor Holdings, Inc. website.
TABLE 1 - Financial Highlights of Clear Channel Outdoor
Holdings, Inc. and Subsidiaries
The comparison of the Company's historical results of operations
for the three and twelve months ended December 31, 2019 to the
three and twelve months ended December 31, 2018 is as
follows:
(In
thousands)
|
Three Months
Ended
December 31,
|
|
Years Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenue
|
$
|
745,232
|
|
$
|
747,588
|
|
$
|
2,683,810
|
|
$
|
2,721,705
|
Operating
expenses:
|
|
|
|
|
|
|
|
Direct operating
expenses (excludes
depreciation and amortization)
|
383,165
|
|
374,762
|
|
1,452,177
|
|
1,470,668
|
Selling, general and
administrative expenses
(excludes depreciation and amortization)
|
134,079
|
|
141,424
|
|
520,928
|
|
522,918
|
Corporate expenses
(excludes depreciation
and amortization)
|
39,285
|
|
40,998
|
|
144,341
|
|
152,090
|
Depreciation and
amortization
|
77,848
|
|
74,720
|
|
309,324
|
|
318,952
|
Impairment
charges
|
—
|
|
—
|
|
5,300
|
|
7,772
|
Other operating
income, net
|
2,794
|
|
798
|
|
1,162
|
|
2,498
|
Operating
income
|
113,649
|
|
116,482
|
|
252,902
|
|
251,803
|
Interest expense,
net
|
89,908
|
|
96,724
|
|
418,184
|
|
388,133
|
Interest income
(expense) on Due from/to
iHeartCommunications, net
|
—
|
|
(180)
|
|
(1,334)
|
|
393
|
Loss on Due from
iHeartCommunications
|
—
|
|
—
|
|
(5,778)
|
|
—
|
Loss on
extinguishment of debt
|
—
|
|
—
|
|
(101,745)
|
|
—
|
Other income
(expense), net
|
21,258
|
|
(12,747)
|
|
(15,384)
|
|
(34,393)
|
Income (loss) before
income taxes
|
44,999
|
|
6,831
|
|
(289,523)
|
|
(170,330)
|
Income tax benefit
(expense)1
|
(13,448)
|
|
24,501
|
|
(72,254)
|
|
(32,515)
|
Consolidated net
income (loss)
|
31,551
|
|
31,332
|
|
(361,777)
|
|
(202,845)
|
Less amount
attributable to noncontrolling
interest
|
4,451
|
|
5,679
|
|
1,527
|
|
15,395
|
Net income (loss)
attributable to the Company
|
$
|
27,100
|
|
$
|
25,653
|
|
$
|
(363,304)
|
|
$
|
(218,240)
|
|
1 The Company
believes that it is eligible to make the election under Section
163(j) of the 2017 Tax Cuts and Jobs Act allowing certain
portions of its business to be considered operating as a real
property trade or business thereby removing the limitation on
interest expense deductions regarding those portions of its
business. The 2019 tax expense incorporates the applicable
election.
|
For the three months ended December 31, 2019 compared to
the same period of 2018, foreign exchange rate movements decreased
the Company's revenue, direct operating expenses, and SG&A
expenses by $10.0 million,
$5.9 million, and $1.9 million, respectively. For the year ended
December 31, 2019 compared to the same period of 2018, foreign
exchange rate movements decreased the Company's revenue, direct
operating expenses, and SG&A expenses by $70.8 million, $46.5
million, and $15.5 million, respectively.
TABLE 2 - Selected Balance Sheet Information
Selected balance sheet information for December 31, 2019
and December 31, 2018 is as follows:
(In
thousands)
|
December 31,
2019
|
|
December 31,
2018
|
Cash and cash
equivalents
|
|
$
|
398,858
|
|
$
|
182,456
|
Total current
assets
|
1,201,891
|
|
1,015,800
|
Net property, plant
and equipment
|
1,211,154
|
|
1,288,938
|
Total
assets
|
6,393,288
|
|
4,522,028
|
Current liabilities
(excluding current portion of long-term debt)
|
1,160,230
|
|
729,589
|
Long-term debt
(including current portion of long-term debt)
|
5,084,018
|
|
5,277,335
|
Mandatorily-redeemable preferred
stock1
|
44,912
|
|
—
|
Stockholders'
deficit
|
(2,054,706)
|
|
(2,101,652)
|
|
1 As
of December 31, 2019, the liquidation preference of the
Preferred Stock was approximately $46.1 million.
|
TABLE 3 - Total Debt
At December 31, 2019 and December 31, 2018, the
Company had net debt of:
(In
thousands)
|
December 31,
2019
|
|
December 31,
2018
|
Debt:
|
|
|
|
Term Loan
Facility
|
$
|
1,995,000
|
|
$
|
—
|
Revolving Credit
Facility1
|
—
|
|
—
|
Receivables-Based
Credit Facility1
|
—
|
|
—
|
Clear Channel Outdoor
Holdings 5.125% Senior Secured Notes Due 2027
|
1,250,000
|
|
—
|
Clear Channel
Worldwide Holdings 9.25% Senior Notes Due 2024
|
1,901,525
|
|
—
|
Clear Channel
Worldwide Holdings 6.5% Senior Notes Due 2022
|
—
|
|
2,725,000
|
Clear Channel
Worldwide Holdings 7.625% Senior Subordinated Notes Due
2020
|
—
|
|
2,200,000
|
Clear Channel
International B.V. 8.75% Senior Notes Due 2020
|
—
|
|
375,000
|
Other debt
|
4,161
|
|
3,882
|
Original issue
discount
|
(9,561)
|
|
(739)
|
Long-term debt
fees
|
(57,107)
|
|
(25,808)
|
Total debt
|
5,084,018
|
|
5,277,335
|
Mandatorily-redeemable preferred stock
|
44,912
|
|
—
|
Less: Cash and
cash equivalents
|
(398,858)
|
|
(182,456)
|
Net debt
|
$
|
4,730,072
|
|
$
|
5,094,879
|
|
1
The Company had $20.2 million of letters of credit outstanding and
$154.8 million of excess availability under the New Revolving
Credit Facility and $48.9 million of letters of credit outstanding
and $76.1 million of excess availability under the New
Receivables-Based Credit Facility. Access to availability under the
Company's credit facilities is limited by the covenants relating to
incurrence of secured indebtedness in the New CCWH Senior Notes
Indenture.
|
The current portion of long-term debt was $20.3 million and $0.2
million as of December 31, 2019 and December 31,
2018, respectively.
Supplemental Disclosure Regarding Non-GAAP Financial
Information
A significant portion of the Company's advertising operations is
conducted in foreign markets, principally Europe (including the U.K.) and China, and management reviews the results from
its foreign operations on a constant dollar basis. The Company
presents the non-GAAP financial measures of revenue excluding the
effects of foreign exchange rates (including International digital
revenue excluding the effects of foreign exchange rates), direct
operating and SG&A expenses excluding the effects of foreign
exchange rates, and OIBDAN (as defined below) and Adjusted EBITDA
(as defined below) 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. These non-GAAP
financial measures, which exclude 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 comparable prior period. The Company also presents
corporate expenses excluding the effects of non-cash compensation
expenses because OIBDAN and Adjusted EBITDA exclude non-cash
compensation expenses. Adjusted EBITDA also excludes restructuring
and other 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 or, in the case of OIBDAN and Adjusted EBITDA, the
Company's ability to fund its cash needs. In addition, OIBDAN and
Adjusted EBITDA may not be comparable to similarly titled measures
employed by other companies. Users of this non-GAAP financial
information should consider the types of events and transactions
that are excluded.
The Company has historically used OIBDAN, among other measures,
to evaluate its operating performance. 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 the Company's Statement of
Comprehensive Loss: depreciation and amortization, impairment
charges, and other operating income (expense), net. OIBDAN has
historically been 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. The Company historically believed this
measure was 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 was also a
primary measure used by management in evaluating companies as
potential acquisition targets. The Company believed the
presentation of this measure was relevant and useful for investors
because it allowed investors to view performance in a manner
similar to the method used by the Company's management. The Company
believed it helped improve investors' ability to understand the
Company's operating performance and made it easier to compare the
Company's results with other companies that have different capital
structures or tax rates.
In future earnings releases, the Company will present Adjusted
EBITDA in lieu of OIBDAN because the Company believes Adjusted
EBITDA helps investors better understand the Company's operating
performance as compared to other outdoor advertisers and is widely
used in practice. The Company defines Adjusted EBITDA as
consolidated net loss, plus income tax expense (benefit); interest
expense; and depreciation and amortization; as further adjusted to
exclude impairment charges; other operating (income), net; other
(income) expense, net; non-cash compensation expenses included
within corporate expenses; and restructuring and other costs
included within operating expenses. Restructuring and other
costs include costs associated with cost savings initiatives such
as severance, consulting and termination costs, and other special
costs.
The Company currently uses Adjusted EBITDA as one of the primary
measures for planning and forecasting of future periods and will
use Adjusted EBITDA for measuring performance for compensation of
executives and other members of management. Adjusted EBITDA
is 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 presenting Adjusted EBITDA will
help improve investors' ability to understand the Company's
operating performance and make it easier to compare the Company's
results with other companies that have different capital structures
or tax rates. In addition, the Company believes Adjusted EBITDA is
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.
As required by the SEC rules, the Company provides
reconciliations below to the most directly comparable measures
reported under GAAP, including (i) revenue to revenue excluding
effects of foreign exchange rates, by segment and consolidated;
(ii) direct operating and SG&A expenses to direct operating and
SG&A expenses excluding effects of foreign exchange rates, by
segment and consolidated; (iii) corporate expenses to corporate
expenses excluding non-cash compensation expenses and effects of
foreign exchange rates; and (iv) operating income (loss) to OIBDAN
and OIBDAN excluding effects of foreign exchange rates, by segment
and consolidated.
Although the Company has provided outlook guidance for segment
Adjusted EBITDA, a non-GAAP financial measure, it has not
reconciled segment Adjusted EBITDA to consolidated net loss because
of the uncertainty regarding, and the potential variability of, the
reconciling items between segment Adjusted EBITDA and consolidated
net loss, including foreign exchange fluctuations. In addition, the
Company's outlook for International segment Adjusted EBITDA
excludes its China operations. The
Company is unable to discuss the expected performance of Clear
Media Limited, its consolidated Chinese investment, because Clear
Media Limited is a publicly traded company listed on the Hong Kong
Stock Exchange. The actual amount of the reconciling items will
have a significant impact on GAAP consolidated net loss and,
accordingly, a reconciliation of segment Adjusted EBITDA to
consolidated net loss is not available without unreasonable
efforts.
Reconciliation of Revenue to Revenue excluding effects of
foreign exchange rates
(In
thousands)
|
Three Months
Ended
December 31,
|
|
%
Change
|
|
Years Ended
December 31,
|
|
%
Change
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
Consolidated
Revenue
|
$
|
745,232
|
|
$
|
747,588
|
|
(0.3)%
|
|
$
|
2,683,810
|
|
2,721,705
|
|
(1.4)%
|
Excluding: Effects of
foreign exchange
|
10,004
|
|
—
|
|
|
|
70,766
|
|
—
|
|
|
Consolidated Revenue
excluding effects
of foreign exchange
|
$
|
755,236
|
|
$
|
747,588
|
|
1.0%
|
|
$
|
2,754,576
|
|
$
|
2,721,705
|
|
1.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Revenue
|
$
|
344,904
|
|
$
|
330,158
|
|
4.5%
|
|
$
|
1,273,018
|
|
$
|
1,189,348
|
|
7.0%
|
Excluding: Effects of
foreign exchange
|
—
|
|
—
|
|
|
|
(2)
|
|
—
|
|
|
Americas Revenue
excluding effects of
foreign exchange
|
$
|
344,904
|
|
$
|
330,158
|
|
4.5%
|
|
$
|
1,273,016
|
|
$
|
1,189,348
|
|
7.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Revenue
|
$
|
400,328
|
|
$
|
417,430
|
|
(4.1)%
|
|
$
|
1,410,792
|
|
$
|
1,532,357
|
|
(7.9)%
|
Excluding: Effects of
foreign exchange
|
10,004
|
|
—
|
|
|
|
70,768
|
|
—
|
|
|
International Revenue
excluding effects
of foreign exchange
|
$
|
410,332
|
|
$
|
417,430
|
|
(1.7)%
|
|
$
|
1,481,560
|
|
$
|
1,532,357
|
|
(3.3)%
|
|
|
|
|
|
|
|
|
|
|
|
|
International Digital
Revenue
|
$
|
122,148
|
|
$
|
111,780
|
|
9.3%
|
|
$
|
372,728
|
|
$
|
348,488
|
|
7.0%
|
Excluding: Effects of
foreign exchange
|
2,785
|
|
—
|
|
|
|
17,841
|
|
—
|
|
|
International Digital
Revenue excluding
effects of foreign
exchange
|
$
|
124,933
|
|
$
|
111,780
|
|
11.8%
|
|
$
|
390,569
|
|
$
|
348,488
|
|
12.1%
|
Reconciliation of Direct operating and SG&A expenses to
Direct operating and SG&A expenses excluding effects of foreign
exchange rates
(In
thousands)
|
Three Months
Ended
December 31,
|
|
%
Change
|
|
Years Ended
December 31,
|
|
%
Change
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
Consolidated Direct
operating and
SG&A expenses
|
$
|
517,244
|
|
$
|
516,186
|
|
0.2%
|
|
$
|
1,973,105
|
|
$
|
1,993,586
|
|
(1.0)%
|
Excluding: Effects of
foreign exchange
|
7,806
|
|
—
|
|
|
|
61,953
|
|
—
|
|
|
Consolidated Direct
operating and
SG&A expenses excluding effects
of
foreign exchange
|
$
|
525,050
|
|
$
|
516,186
|
|
1.7%
|
|
$
|
2,035,058
|
|
$
|
1,993,586
|
|
2.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas Direct
operating and SG&A
expenses
|
$
|
199,706
|
|
$
|
191,899
|
|
4.1%
|
|
$
|
765,782
|
|
$
|
724,347
|
|
5.7%
|
Excluding: Effects of
foreign exchange
|
1
|
|
—
|
|
|
|
—
|
|
—
|
|
|
Americas Direct
operating and SG&A
expenses excluding effects of
foreign
exchange
|
$
|
199,707
|
|
$
|
191,899
|
|
4.1%
|
|
$
|
765,782
|
|
$
|
724,347
|
|
5.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
International Direct
operating and
SG&A expenses
|
$
|
317,538
|
|
$
|
324,287
|
|
(2.1)%
|
|
$
|
1,207,323
|
|
$
|
1,269,239
|
|
(4.9)%
|
Excluding: Effects of
foreign exchange
|
7,805
|
|
—
|
|
|
|
61,953
|
|
—
|
|
|
International Direct
operating and
SG&A expenses excluding effects
of
foreign exchange
|
$
|
325,343
|
|
$
|
324,287
|
|
0.3%
|
|
$
|
1,269,276
|
|
$
|
1,269,239
|
|
— %
|
Reconciliation of Corporate expenses to Corporate expenses
excluding non-cash compensation expenses and effects of foreign
exchange rates
(In
thousands)
|
Three Months
Ended
December 31,
|
|
%
Change
|
|
Years Ended
December 31,
|
|
%
Change
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
Corporate
expenses
|
$
|
39,285
|
|
$
|
40,998
|
|
(4.2)%
|
|
$
|
144,341
|
|
$
|
152,090
|
|
(5.1)%
|
Excluding: Non-cash
compensation
expenses
|
(3,354)
|
|
(1,760)
|
|
|
|
(15,770)
|
|
(8,517)
|
|
|
Corporate expenses
excluding non-cash
compensation expenses
|
$
|
35,931
|
|
$
|
39,238
|
|
(8.4)%
|
|
$
|
128,571
|
|
$
|
143,573
|
|
(10.4)%
|
Excluding: Effects of
foreign exchange
|
23
|
|
—
|
|
|
|
2,251
|
|
—
|
|
|
Corporate expenses
excluding non-cash
compensation expense and effects
of
foreign exchange
|
$
|
35,954
|
|
$
|
39,238
|
|
(8.4)%
|
|
$
|
130,822
|
|
$
|
143,573
|
|
(8.9)%
|
Reconciliation of Operating income (loss) to OIBDAN and
OIBDAN excluding effects of foreign exchange rates
(In
thousands)
|
OIBDAN
excluding
effects of
foreign
exchange
|
|
Foreign
exchange
effects
|
|
OIBDAN
(subtotal)
|
|
Non-cash
compensation
expenses
|
|
Depreciation
and
amortization
|
|
Impairment
charges
|
|
Other
operating
income, net
|
|
Operating
income (loss)
|
Three Months Ended
December 31, 2019
|
Americas
|
$
|
145,197
|
|
|
$
|
1
|
|
|
$
|
145,198
|
|
|
$
|
—
|
|
|
$
|
38,679
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
106,519
|
|
International
|
84,989
|
|
|
(2,199)
|
|
|
82,790
|
|
|
—
|
|
|
35,885
|
|
|
—
|
|
|
—
|
|
|
46,905
|
|
Corporate
|
(35,954)
|
|
|
23
|
|
|
(35,931)
|
|
|
3,354
|
|
|
3,284
|
|
|
—
|
|
|
—
|
|
|
(42,569)
|
|
Other operating
income, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,794)
|
|
|
2,794
|
|
Consolidated
|
$
|
194,232
|
|
|
$
|
(2,175)
|
|
|
$
|
192,057
|
|
|
$
|
3,354
|
|
|
$
|
77,848
|
|
|
$
|
—
|
|
|
$
|
(2,794)
|
|
|
$
|
113,649
|
|
|
Three Months Ended
December 31, 2018
|
Americas
|
$
|
138,259
|
|
|
$
|
—
|
|
|
$
|
138,259
|
|
|
$
|
—
|
|
|
$
|
39,396
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
98,863
|
|
International
|
93,143
|
|
|
—
|
|
|
93,143
|
|
|
—
|
|
|
34,324
|
|
|
—
|
|
|
—
|
|
|
58,819
|
|
Corporate
|
(39,238)
|
|
|
—
|
|
|
(39,238)
|
|
|
1,760
|
|
|
1,000
|
|
|
—
|
|
|
—
|
|
|
(41,998)
|
|
Other operating
income, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(798)
|
|
|
798
|
|
Consolidated
|
$
|
192,164
|
|
|
$
|
—
|
|
|
$
|
192,164
|
|
|
$
|
1,760
|
|
|
$
|
74,720
|
|
|
$
|
—
|
|
|
$
|
(798)
|
|
|
$
|
116,482
|
|
(In
thousands)
|
OIBDAN excluding
effects of foreign exchange
|
|
Foreign exchange
effects
|
|
OIBDAN
(subtotal)
|
|
Non-cash
compensation
expenses
|
|
Depreciation
and
amortization
|
|
Impairment
charges
|
|
Other
operating
income, net
|
|
Operating
income (loss)
|
Years Ended
December 31, 2019
|
Americas
|
$
|
507,234
|
|
|
$
|
2
|
|
|
$
|
507,236
|
|
|
$
|
—
|
|
|
$
|
160,386
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
346,850
|
|
International
|
212,284
|
|
|
(8,815)
|
|
|
203,469
|
|
|
—
|
|
|
138,651
|
|
|
—
|
|
|
—
|
|
|
64,818
|
|
Corporate
|
(130,822)
|
|
|
2,251
|
|
|
(128,571)
|
|
|
15,770
|
|
|
10,287
|
|
|
—
|
|
|
—
|
|
|
(154,628)
|
|
Impairment
charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,300
|
|
|
—
|
|
|
(5,300)
|
|
Other operating
income, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,162)
|
|
|
1,162
|
|
Consolidated
|
$
|
588,696
|
|
|
$
|
(6,562)
|
|
|
$
|
582,134
|
|
|
$
|
15,770
|
|
|
$
|
309,324
|
|
|
$
|
5,300
|
|
|
$
|
(1,162)
|
|
|
$
|
252,902
|
|
|
Years Ended
December 31, 2018
|
Americas
|
$
|
465,001
|
|
|
$
|
—
|
|
|
$
|
465,001
|
|
|
$
|
—
|
|
|
$
|
166,806
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
298,195
|
|
International
|
263,118
|
|
|
—
|
|
|
263,118
|
|
|
—
|
|
|
148,199
|
|
|
—
|
|
|
—
|
|
|
114,919
|
|
Corporate
|
(143,573)
|
|
|
—
|
|
|
(143,573)
|
|
|
8,517
|
|
|
3,947
|
|
|
—
|
|
|
—
|
|
|
(156,037)
|
|
Impairment
charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,772
|
|
|
—
|
|
|
(7,772)
|
|
Other operating
income, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,498)
|
|
|
2,498
|
|
Consolidated
|
$
|
584,546
|
|
|
$
|
—
|
|
|
$
|
584,546
|
|
|
$
|
8,517
|
|
|
$
|
318,952
|
|
|
$
|
7,772
|
|
|
$
|
(2,498)
|
|
|
$
|
251,803
|
|
About Clear Channel Outdoor Holdings, Inc.
Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) is one of the
world's largest outdoor advertising companies with a diverse
portfolio of approximately 460,000 print and digital displays in 32
countries across Asia,
Europe, Latin America and North America, reaching millions of people
monthly. A growing digital platform includes more than 15,000
digital displays in international markets and more than 1,700
digital displays (excluding airports), including more than 1,400
digital billboards, in the U.S.
Comprised of two business divisions – Clear Channel Outdoor
Americas (CCOA), the U.S. and Caribbean business division, and Clear Channel
International (CCI), covering markets in Asia, Europe
and Latin America – CCO employs
approximately 5,900 people globally. More information is available
at investor.clearchannel.com, clearchannelinternational.com and
clearchanneloutdoor.com.
Cautionary Statement Concerning Forward-Looking
Statements
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. 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 guidance and outlook, 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 conditions and their impact on the level of
expenditures on advertising, including the effects of Brexit and
economic uncertainty in China; our
ability to service our debt obligations and to fund our operations
and capital expenditures; industry conditions, including
competition; our ability to obtain key municipal concessions for
our street furniture and transit products; 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, including those resulting from recessions, political
events and acts or threats of terrorism or military conflicts;
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; a breach of our
information security measures; restrictions on outdoor advertising
of certain products; fluctuations in exchange rates and currency
values; risks of doing business in foreign countries; the impact of
coronavirus on our operations; third-party claims of intellectual
property infringement, misappropriation or other violation against
us; the risk that the Separation could result in significant tax
liability or other unfavorable tax consequences to us and impair
our ability to utilize our federal income tax net operating loss
carryforwards in future years; the risk that we may be more
susceptible to adverse events following the Separation; the risk
that we may be unable to replace the services iHeartCommunications
provided us in a timely manner or on comparable terms; our
dependence on our management team and other key individuals; the
risk that indemnities from iHeartMedia will not be sufficient to
insure us against the full amount of certain liabilities;
volatility of our stock price; 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
and our Preferred Stock limiting our flexibility in operating our
business; the effect of analyst or credit ratings downgrades; and
certain other factors set forth in our other filings with the SEC.
This list of factors that may affect future performance and the
accuracy of forward-looking statements is illustrative and is not
intended to be exhaustive.
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 section entitled "Item 1A.
Risk Factors" of the Company's reports filed with the U.S.
Securities and Exchange Commission, including the Company's Annual
Report on Form 10-K for the year ended December 31, 2019. 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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SOURCE Clear Channel Outdoor