Clear Channel Outdoor Holdings, Inc. Reports Results for the Third Quarter of 2024
Clear Channel Outdoor Holdings (NYSE: CCO) reported Q3 2024 financial results with consolidated revenue of $559 million, up 6.1% year-over-year. The America segment saw 5.0% revenue growth, Airports revenue increased 9.0%, and Europe-North revenue grew 11.4%. Despite revenue growth, the company reported a loss from continuing operations of $31.5 million. The company secured a 15-year contract with New York MTA for roadside advertising assets starting November 1, 2024. CCO maintained its full-year 2024 guidance, projecting consolidated revenue between $2,222-$2,247 million, representing 4-6% growth.
Clear Channel Outdoor Holdings (NYSE: CCO) ha riportato i risultati finanziari del terzo trimestre 2024 con un fatturato consolidato di 559 milioni di dollari, in aumento del 6,1% rispetto all’anno precedente. Il segmento americano ha registrato una crescita dei ricavi del 5,0%, i ricavi degli aeroporti sono aumentati del 9,0% e quelli dell’Europa e del Nord del mondo sono cresciuti dell’11,4%. Nonostante la crescita dei ricavi, l’azienda ha riportato una perdita dalle operazioni continuative di 31,5 milioni di dollari. L'azienda ha assicurato un contratto di 15 anni con la MTA di New York per attività pubblicitarie stradali a partire dal 1° novembre 2024. CCO ha mantenuto le sue previsioni per l’intero anno 2024, prevedendo un fatturato consolidato tra i 2.222 e i 2.247 milioni di dollari, rappresentando una crescita del 4-6%.
Clear Channel Outdoor Holdings (NYSE: CCO) reportó resultados financieros del tercer trimestre de 2024 con ingresos consolidados de 559 millones de dólares, un aumento del 6,1% en comparación con el año anterior. El segmento de América vio un crecimiento de ingresos del 5,0%, los ingresos de aeropuertos aumentaron un 9,0% y los ingresos de Europa-Norte crecieron un 11,4%. A pesar del crecimiento de ingresos, la compañía reportó una pérdida de operaciones continuas de 31,5 millones de dólares. La compañía aseguró un contrato de 15 años con el MTA de Nueva York para activos publicitarios en la carretera que comenzará el 1 de noviembre de 2024. CCO mantuvo su guía para el año completo 2024, proyectando ingresos consolidados entre 2.222 y 2.247 millones de dólares, lo que representa un crecimiento del 4-6%.
클리어 채널 아울도어 홀딩스 (NYSE: CCO)는 2024년 3분기 재무 결과를 발표하며, 통합 수익이 5억 5천 9백만 달러로 전년 대비 6.1% 증가하였다고 하였습니다. 미국 부문은 5.0%의 수익 성장률을 기록하였고, 공항 수익은 9.0% 증가했으며, 유럽-북미 수익은 11.4% 성장했습니다. 수익 성장에도 불구하고, 회사는 지속 운영에서 3천 1백 5십만 달러의 손실을 보고했습니다. 회사는 2024년 11월 1일부터 시작되는 도로 광고 자산에 대해 뉴욕 MTA와 15년 계약을 체결했습니다. CCO는 2024년 전체 연도 가이드를 유지하며, 통합 수익이 22억 2천 2백만에서 22억 4천 7백만 달러 사이에 이를 것으로 전망하며, 4-6%의 성장을 나타냅니다.
Clear Channel Outdoor Holdings (NYSE: CCO) a publié les résultats financiers du troisième trimestre 2024 avec des revenus consolidés de 559 millions de dollars, en hausse de 6,1 % par rapport à l’année précédente. Le segment américain a connu une croissance des revenus de 5,0 %, les revenus des aéroports ont augmenté de 9,0 % et les revenus de l’Europe du Nord ont crû de 11,4 %. Malgré la croissance des revenus, l’entreprise a enregistré une perte d’exploitation continue de 31,5 millions de dollars. L'entreprise a sécurisé un contrat de 15 ans avec le MTA de New York pour des actifs publicitaires au bord de la route à partir du 1er novembre 2024. CCO a maintenu ses prévisions pour l'année 2024, prévoyant des revenus consolidés compris entre 2,222 et 2,247 millions de dollars, représentant une croissance de 4 à 6 %.
Clear Channel Outdoor Holdings (NYSE: CCO) hat die Finanzzahlen für das 3. Quartal 2024 veröffentlicht, mit einem konsolidierten Umsatz von 559 Millionen US-Dollar, was einem Anstieg von 6,1 % im Vergleich zum Vorjahr entspricht. Der amerikanische Sektor verzeichnete ein Umsatzwachstum von 5,0 %, der Umsatz in den Flughäfen stieg um 9,0 % und der Umsatz in Europa-Nordwuchs um 11,4 %. Trotz des Umsatzwachstums berichtete das Unternehmen von einem Verlust aus fortgeführten Geschäftstätigkeiten von 31,5 Millionen US-Dollar. Das Unternehmen sicherte sich einen 15-jährigen Vertrag mit der New Yorker MTA für Straßenwerbeassets, der am 1. November 2024 beginnt. CCO hielt an seiner Prognose für das gesamte Jahr 2024 fest und erwartet einen konsolidierten Umsatz zwischen 2.222 und 2.247 Millionen US-Dollar, was einem Wachstum von 4-6 % entspricht.
- Consolidated revenue increased 6.1% to $559 million
- America segment revenue grew 5.0%
- Airports revenue increased 9.0%
- Europe-North revenue up 11.4%
- Secured 15-year New York MTA advertising contract
- Adjusted EBITDA grew 2.6% to $142.8 million
- Loss from continuing operations of $31.5 million, worsening by 38.3%
- Europe-North Segment Adjusted EBITDA declined 0.5%
- Q4 2024 guidance projects potential revenue decline of up to 1% at the low end
Insights
Clear Channel Outdoor's Q3 results demonstrate solid performance with
The secured 15-year MTA contract and focus on digital transformation show promising strategic positioning. The updated FY2024 guidance projects consolidated revenue of
The out-of-home advertising sector shows resilience with CCO's expansion into new verticals through digital capabilities and RADAR analytics. The airport segment's strong
Q4 guidance suggests potential headwinds with projected consolidated revenue growth between
"Our third quarter consolidated revenue of
"We continue to pursue a range of initiatives aimed at leveraging our technology investments and enhanced sales teams to maximize our performance in the
"Our business is performing well, and we remain on track to deliver on our full year 2024 consolidated financial guidance. We are committed to executing our strategic plan, including continuing the sales processes related to our international businesses. Our ultimate goals include organically growing cash flow and reducing leverage on our balance sheet."
Financial Highlights:
Financial highlights for the third quarter of 2024 as compared to the same period of 2023, including financial highlights excluding movements in foreign exchange rates ("FX")1:
(In millions) | Three Months Ended | % Change | |
Revenue: | |||
Consolidated Revenue2 | $ 559.0 | 6.1 % | |
Excluding movements in FX1,2 | 556.7 | 5.7 % | |
America Revenue | 292.8 | 5.0 % | |
Airports Revenue | 82.3 | 9.0 % | |
Europe-North Revenue | 166.4 | 11.4 % | |
Excluding movements in FX1 | 162.2 | 8.6 % | |
Net Loss: | |||
Loss from Continuing Operations | (31.5) | (38.3) % | |
Adjusted EBITDA1: | |||
Adjusted EBITDA1,2 | 142.8 | 2.6 % | |
Excluding movements in FX1,2 | 141.9 | 1.9 % | |
America Segment Adjusted EBITDA3 | 128.4 | 5.8 % | |
Airports Segment Adjusted EBITDA3 | 16.9 | 9.0 % | |
Europe-North Segment Adjusted EBITDA3 | 28.3 | (0.5) % | |
Excluding movements in FX1 | 27.2 | (4.5) % |
1 | This is a non-GAAP financial measure. See "Supplemental Disclosures" section herein for more information. |
2 | Financial highlights exclude results of discontinued operations. See "Supplemental Disclosures" section herein for more information. |
3 | Segment Adjusted EBITDA is a GAAP financial measure. See "Supplemental Disclosures" section herein for more information. |
Guidance:
Our expectations for the fourth quarter of 2024 are as follows:
Fourth Quarter of 2024 | % change from prior year | ||||||
(in millions) | Low | High | Low | High | |||
Consolidated Revenue1,2 | $ 628 | $ 653 | (1) % | 3 % | |||
America | 308 | 318 | 3 % | 7 % | |||
Airports | 111 | 116 | — % | 4 % | |||
Europe-North1 | 185 | 195 | (4) % | 2 % | |||
1 | Excludes movements in FX |
2 | Excludes results of discontinued operations |
We have updated our full year 2024 guidance from the guidance previously provided in our earnings release issued on August 7, 2024, as follows:
Full Year of 2024 | % change from prior year | ||||||
(in millions) | Low | High | Low | High | |||
Consolidated Revenue1,2 | $ 2,222 | $ 2,247 | 4 % | 6 % | |||
America | 1,141 | 1,151 | 4 % | 5 % | |||
Airports | 356 | 361 | 14 % | 16 % | |||
Europe-North1 | 648 | 658 | 5 % | 6 % | |||
Loss from Continuing Operations1 | (165) | (150) | 5 % | (5) % | |||
Adjusted EBITDA1,2,3 | 560 | 580 | 5 % | 8 % | |||
AFFO1,2,3 | 90 | 105 | 8 % | 26 % | |||
Capital Expenditures2 | 130 | 140 | (10) % | (3) % |
1 | Excludes movements in FX |
2 | Excludes results of discontinued operations |
3 | This is a non-GAAP financial measure. See "Supplemental Disclosures" section herein for more information. |
Expected results and estimates may be impacted by factors outside of the Company's control, and actual results may be materially different from this guidance. See "Cautionary Statement Concerning Forward-Looking Statements" herein.
Results:
Results provided herein exclude amounts related to discontinued operations for all periods presented.
Revenue:
(In thousands) | Three Months Ended September 30, | % Change | Nine Months Ended September 30, | % Change | |||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Revenue: | |||||||||||
America | $ 292,821 | $ 278,760 | 5.0 % | $ 832,805 | $ 802,326 | 3.8 % | |||||
Airports | 82,331 | 75,558 | 9.0 % | 245,476 | 200,392 | 22.5 % | |||||
Europe-North | 166,361 | 149,366 | 11.4 % | 470,489 | 427,778 | 10.0 % | |||||
Other | 17,475 | 23,102 | (24.4) % | 50,511 | 64,530 | (21.7) % | |||||
Consolidated Revenue | $ 558,988 | $ 526,786 | 6.1 % | $ 1,599,281 | $ 1,495,026 | 7.0 % | |||||
Revenue excluding movements in FX1: | |||||||||||
America | $ 292,821 | $ 278,760 | 5.0 % | $ 832,805 | $ 802,326 | 3.8 % | |||||
Airports | 82,331 | 75,558 | 9.0 % | 245,476 | 200,392 | 22.5 % | |||||
Europe-North | 162,209 | 149,366 | 8.6 % | 463,374 | 427,778 | 8.3 % | |||||
Other | 19,299 | 23,102 | (16.5) % | 52,624 | 64,530 | (18.5) % | |||||
Consolidated Revenue excluding movements in FX | $ 556,660 | $ 526,786 | 5.7 % | $ 1,594,279 | $ 1,495,026 | 6.6 % |
1 This is a non-GAAP financial measure. See "Supplemental Disclosures" section herein for more information. |
Revenue for the third quarter of 2024, as compared to the same period of 2023:
America: Revenue up
- Revenue up in all regions driven by increased demand for both digital and printed billboards and the deployment of new digital billboards
- Digital revenue up
8.4% to from$105.8 million $97.6 million - National sales comprised
36.3% of America revenue
Airports: Revenue up
- Strong advertising demand, with growth led by the Port Authority of
New York andNew Jersey airports - Digital revenue up
0.8% to from$42.1 million $41.8 million - National sales comprised
58.6% of Airports revenue
Europe-North: Revenue up
- Revenue up in most countries due to increased demand, most significantly in
Sweden ; partially offset by loss of transit contract inNorway - Digital revenue up
15.4% to from$96.7 million ; digital revenue, excluding movements in FX, up$83.8 million 12.4% to$94.2 million
Other: Revenue down
- Loss of contract in
Singapore
Direct Operating and SG&A Expenses1:
(In thousands) | Three Months Ended September 30, | % Change | Nine Months Ended September 30, | % Change | |||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Direct operating and SG&A expenses: | |||||||||||
America | $ 164,553 | $ 157,456 | 4.5 % | $ 482,571 | $ 470,158 | 2.6 % | |||||
Airports | 65,406 | 60,038 | 8.9 % | 190,485 | 162,274 | 17.4 % | |||||
Europe-North | 138,679 | 121,154 | 14.5 % | 394,942 | 366,706 | 7.7 % | |||||
Other | 15,808 | 19,812 | (20.2) % | 50,475 | 57,360 | (12.0) % | |||||
Consolidated Direct operating and | $ 384,446 | $ 358,460 | 7.2 % | $ 1,118,473 | $ 1,056,498 | 5.9 % | |||||
Direct operating and SG&A expenses excluding movements in FX3: | |||||||||||
America | $ 164,553 | $ 157,456 | 4.5 % | $ 482,571 | $ 470,158 | 2.6 % | |||||
Airports | 65,406 | 60,038 | 8.9 % | 190,485 | 162,274 | 17.4 % | |||||
Europe-North | 135,663 | 121,154 | 12.0 % | 389,426 | 366,706 | 6.2 % | |||||
Other | 17,394 | 19,812 | (12.2) % | 52,650 | 57,360 | (8.2) % | |||||
Consolidated Direct operating and | $ 383,016 | $ 358,460 | 6.9 % | $ 1,115,132 | $ 1,056,498 | 5.5 % |
1 | "Direct operating and SG&A expenses" as presented 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 | Includes restructuring and other costs of |
3 | This is a non-GAAP financial measure. See "Supplemental Disclosures" section herein for more information. |
Direct operating and SG&A expenses for the third quarter of 2024, as compared to the same period of 2023:
America: Direct operating and SG&A expenses up
- Lower property taxes in prior year related to a legal settlement
- Higher compensation costs driven by higher variable-incentive compensation, increased headcount and pay increases
- Higher production, installation and maintenance costs associated with revenue growth
- Site lease expense down
4.7% , to from$85.9 million , driven by the renegotiation of an existing contract and a decrease in estimated lessor property taxes in certain lease arrangements$90.1 million
Airports: Direct operating and SG&A expenses up
- Site lease expense up
9.1% , to from$51.5 million , driven by higher revenue and lower rent abatements$47.2 million
Europe-North: Direct operating and SG&A expenses up
- Site lease expense up
8.4% , to from$60.3 million ; site lease expense, excluding movements in FX, up$55.6 million 6.2% to driven by higher revenue and new contracts, partially offset by contract loss in$59.0 million Norway - Higher property taxes and higher rental costs for additional digital displays
- Higher compensation costs driven by pay increases and variable-incentive compensation
Other: Direct operating and SG&A expenses down
- Loss of contract in
Singapore
Corporate Expenses:
(In thousands) | Three Months Ended September 30, | % Change | Nine Months Ended September 30, | % Change | |||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Corporate expenses1 | $ 40,948 | $ 34,931 | 17.2 % | $ 125,778 | $ 129,427 | (2.8) % | |||||
Corporate expenses excluding movements in FX2 | 40,925 | 34,931 | 17.2 % | 125,401 | 129,427 | (3.1) % |
1 | Includes restructuring and other costs of |
2 | This is a non-GAAP financial measure. See "Supplemental Disclosures" section herein for more information. |
Corporate expenses for the third quarter of 2024, as compared to the same period of 2023, up
- Higher employee compensation costs, mainly driven by insurance benefits and share-based compensation
- Higher legal costs associated with property and casualty settlements
Loss from Continuing Operations:
(In thousands) | Three Months Ended September 30, | % Change | Nine Months Ended September 30, | % Change | |||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Loss from continuing operations | $ (31,543) | $ (51,082) | (38.3) % | $ (168,519) | $ (182,493) | (7.7) % |
Adjusted EBITDA1:
(In thousands) | Three Months Ended September 30, | % Change | Nine Months Ended September 30, | % Change | |||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Segment Adjusted EBITDA2: | |||||||||||
America | $ 128,372 | $ 121,335 | 5.8 % | $ 350,816 | $ 332,213 | 5.6 % | |||||
Airports | 16,925 | 15,522 | 9.0 % | 55,089 | 38,120 | 44.5 % | |||||
Europe-North | 28,314 | 28,444 | (0.5) % | 75,288 | 61,850 | 21.7 % | |||||
Other | 1,950 | 3,290 | (40.7) % | 2,156 | 7,170 | (69.9) % | |||||
Total Segment Adjusted EBITDA | 175,561 | 168,591 | 4.1 % | 483,349 | 439,353 | 10.0 % | |||||
Adjusted Corporate expenses1 | (32,787) | (29,375) | 11.6 % | (100,949) | (94,124) | 7.3 % | |||||
Adjusted EBITDA1 | $ 142,774 | $ 139,216 | 2.6 % | $ 382,400 | $ 345,229 | 10.8 % | |||||
Segment Adjusted EBITDA excluding movements in FX1: | |||||||||||
America | $ 128,372 | $ 121,335 | 5.8 % | $ 350,816 | $ 332,213 | 5.6 % | |||||
Airports | 16,925 | 15,522 | 9.0 % | 55,089 | 38,120 | 44.5 % | |||||
Europe-North | 27,152 | 28,444 | (4.5) % | 73,674 | 61,850 | 19.1 % | |||||
Other | 2,182 | 3,290 | (33.7) % | 2,102 | 7,170 | (70.7) % | |||||
Total Segment Adjusted EBITDA | 174,631 | 168,591 | 3.6 % | 481,681 | 439,353 | 9.6 % | |||||
Adjusted Corporate expenses excluding movements in FX1 | (32,765) | (29,375) | 11.5 % | (100,599) | (94,124) | 6.9 % | |||||
Adjusted EBITDA excluding movements in FX1 | $ 141,866 | $ 139,216 | 1.9 % | $ 381,082 | $ 345,229 | 10.4 % |
1 | This is a non-GAAP financial measure. See "Supplemental Disclosures" section herein for more information. |
2 | Segment Adjusted EBITDA is a GAAP financial measure. See "Supplemental Disclosures" section herein for more information. |
AFFO1:
(In thousands) | Three Months Ended September 30, | % Change | Nine Months Ended September 30, | % Change | |||||||
2024 | 2023 | 2024 | 2023 | ||||||||
AFFO1,2 | $ 26,850 | $ 24,612 | 9.1 % | $ 35,864 | $ 9,807 | NM | |||||
AFFO excluding movements in FX1,2 | 25,968 | 24,612 | 5.5 % | 34,482 | 9,807 | NM |
1 | This is a non-GAAP financial measure. See "Supplemental Disclosures" section herein for more information. |
2 | Percentage changes that are so large as to not be meaningful have been designated as "NM." |
Capital Expenditures:
(In thousands) | Three Months Ended September 30, | % Change | Nine Months Ended September 30, | % Change | |||||||
2024 | 2023 | 2024 | 2023 | ||||||||
America | $ 13,406 | $ 16,148 | (17.0) % | $ 35,679 | $ 51,844 | (31.2) % | |||||
Airports | 3,188 | 3,072 | 3.8 % | 6,634 | 10,382 | (36.1) % | |||||
Europe-North | 9,707 | 7,851 | 23.6 % | 23,835 | 18,998 | 25.5 % | |||||
Other | 1,123 | 1,577 | (28.8) % | 3,217 | 4,534 | (29.0) % | |||||
Corporate | 3,101 | 4,022 | (22.9) % | 8,029 | 10,678 | (24.8) % | |||||
Consolidated capital expenditures | $ 30,525 | $ 32,670 | (6.6) % | $ 77,394 | $ 96,436 | (19.7) % |
Markets and Displays:
As of September 30, 2024, we operated more than 311,000 print and digital out-of-home advertising displays in 19 countries as part of our continuing operations, with the majority of our revenue generated by operations in the
Number of digital | Total number of displays as of September 30, 2024 | ||||||
Digital | Printed | Total | |||||
America1: | |||||||
Billboards2 | 18 | 1,897 | 32,995 | 34,892 | |||
Other displays3 | (2) | 609 | 13,781 | 14,390 | |||
Airports4 | 108 | 2,650 | 10,513 | 13,163 | |||
Europe-North | 534 | 16,659 | 227,321 | 243,980 | |||
Other | 55 | 1,132 | 3,930 | 5,062 | |||
Total displays | 713 | 22,947 | 288,540 | 311,487 |
1 | As of September 30, 2024, our America segment had presence in 28 U.S. DMAs. |
2 | Billboards includes bulletins, posters, spectaculars and wallscapes. |
3 | Other displays includes street furniture and transit displays. |
4 | As of September 30, 2024, our Airports segment had displays across nearly 200 commercial and private airports in the |
Clear Channel International B.V.
Clear Channel International B.V. ("CCIBV"), an indirect wholly-owned subsidiary of the Company and the borrower under the CCIBV Term Loan Facility, includes the operations of our Europe-North and Europe-South segments and, prior to September 17, 2024, also included
As the current and former businesses in the Europe-South segment are considered discontinued operations, results of these businesses are reported as a separate component of Consolidated net income (loss) in the CCIBV Consolidated Statements of Income (Loss) for all periods presented and are excluded from the discussion below.
CCIBV results from continuing operations for the third quarter of 2024 as compared to the same period of 2023 are as follows:
- CCIBV revenue increased
8.1% to from$166.4 million . Excluding the$154.0 million impact of movements in FX, CCIBV revenue increased$4.2 million 5.4% as higher revenue from our Europe-North segment, as described in the above "Results" section of this earnings release, was partially offset by the loss of a contract inSingapore . - CCIBV operating income was
compared to$5.0 million in the same period of 2023.$8.6 million
Liquidity and Financial Position:
Cash and Cash Equivalents:
As of September 30, 2024, we had
The following table summarizes our cash flows for the nine months ended September 30, 2024 on a consolidated basis, including both continuing and discontinued operations:
(In thousands) | Nine Months Ended September 30, 2024 |
Net cash provided by operating activities | $ 50,480 |
Net cash used for investing activities1 | (92,230) |
Net cash used for financing activities | (7,542) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (750) |
Net decrease in cash, cash equivalents and restricted cash | $ (50,042) |
Cash paid for interest | $ 297,118 |
Cash paid for income taxes, net of refunds | $ 11,349 |
1 | Includes capital expenditures for discontinued operations of |
Debt:
We anticipate having cash interest payment obligations of approximately
Our next debt maturities are in 2027 when the
Please refer to Table 3 in this earnings release for additional detail regarding our outstanding debt balance.
TABLE 1 - Financial Highlights of Clear Channel Outdoor Holdings, Inc. and its Subsidiaries: | |||||||
(In thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||
2024 | 2023 | 2024 | 2023 | ||||
Revenue | $ 558,988 | $ 526,786 | $ 1,599,281 | $ 1,495,026 | |||
Operating expenses: | |||||||
Direct operating expenses1 | 284,601 | 271,377 | 827,063 | 790,206 | |||
Selling, general and administrative expenses1 | 99,845 | 87,083 | 291,410 | 266,292 | |||
Corporate expenses1 | 40,948 | 34,931 | 125,778 | 129,427 | |||
Depreciation and amortization | 57,582 | 57,699 | 165,755 | 186,409 | |||
Impairment charges2 | — | — | 18,073 | — | |||
Other operating expense, net | 3,684 | 6,179 | 9,745 | 10,122 | |||
Operating income | 72,328 | 69,517 | 161,457 | 112,570 | |||
Interest expense, net | (106,995) | (107,391) | (322,060) | (314,624) | |||
Gain (loss) on extinguishment of debt | — | 3,817 | (4,787) | 3,817 | |||
Other income (expense), net3 | (676) | (17,269) | (9,120) | 3,722 | |||
Loss from continuing operations before income taxes | (35,343) | (51,326) | (174,510) | (194,515) | |||
Income tax benefit attributable to continuing operations | 3,800 | 244 | 5,991 | 12,022 | |||
Loss from continuing operations | (31,543) | (51,082) | (168,519) | (182,493) | |||
Income (loss) from discontinued operations4 | (13) | (211,736) | 9,246 | (152,326) | |||
Consolidated net loss | (31,556) | (262,818) | (159,273) | (334,819) | |||
Less: Net income attributable to noncontrolling interests | 984 | 672 | 2,104 | 880 | |||
Net loss attributable to the Company | $ (32,540) | $ (263,490) | $ (161,377) | $ (335,699) |
1 | Excludes depreciation and amortization. |
2 | Impairment charges for the nine months ended September 30, 2024 relate to the impairment of long-lived assets in certain of the Company's Latin American businesses. |
3 | Other income (expense), net, includes debt modification expense of |
4 | Income (loss) from discontinued operations for the three and nine months ended September 30, 2024 reflects the net income (loss) generated during these periods by operations in |
Weighted Average Shares Outstanding | |||||||
(In thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||
2024 | 2023 | 2024 | 2023 | ||||
Weighted average common shares outstanding – Basic and Diluted | 488,947 | 482,945 | 487,155 | 481,289 |
TABLE 2 - Selected Balance Sheet Information: | |||
(In thousands) | September 30, | December 31, | |
Cash and cash equivalents | $ 201,111 | $ 251,652 | |
Total current assets1 | 906,164 | 957,401 | |
Property, plant and equipment, net | 638,680 | 666,344 | |
Total assets1 | 4,644,526 | 4,722,475 | |
Current liabilities (excluding current portion of long-term debt)2 | 903,792 | 883,116 | |
Long-term debt (including current portion of long-term debt) | 5,657,391 | 5,631,903 | |
Stockholders' deficit | (3,598,242) | (3,450,743) |
1 | Total current assets and total assets include assets of discontinued operations of |
2 | Current liabilities includes liabilities of discontinued operations of |
TABLE 3 - Total Debt: | |||||
(In thousands) | Maturity | September 30, | December 31, | ||
Debt: | |||||
Receivables-Based Credit Facility1 | August 2026 | $ — | $ — | ||
Revolving Credit Facility2 | August 2026 | — | — | ||
Term Loan Facility3 | August 2028 | 425,000 | 1,260,000 | ||
Clear Channel Outdoor Holdings | August 2027 | 1,250,000 | 1,250,000 | ||
Clear Channel Outdoor Holdings | September 2028 | 750,000 | 750,000 | ||
Clear Channel Outdoor Holdings | April 2030 | 865,000 | — | ||
Clear Channel Outdoor Holdings | April 2028 | 995,000 | 995,000 | ||
Clear Channel Outdoor Holdings | June 2029 | 1,040,000 | 1,040,000 | ||
Clear Channel International B.V. | August 2025 | — | 375,000 | ||
Clear Channel International B.V. Term Loan Facility4 | April 2027 | 375,000 | — | ||
Finance leases | 3,870 | 4,202 | |||
Original issue discount | (7,856) | (2,690) | |||
Long-term debt fees | (38,623) | (39,609) | |||
Total debt | 5,657,391 | 5,631,903 | |||
Less: Cash and cash equivalents | (201,111) | (251,652) | |||
Net debt | $ 5,456,280 | $ 5,380,251 |
1 | As of September 30, 2024, we had |
2 | Effective August 23, 2024, the borrowing limit of the Revolving Credit Facility decreased from |
3 | In March 2024, we issued |
4 | In March 2024, CCIBV entered into the CCIBV Term Loan Facility, totaling an aggregate principal amount of |
Supplemental Disclosures:
Reportable Segments and Segment Adjusted EBITDA
The Company has four reportable segments, which it believes best reflect how the Company is currently managed: America, which consists of the Company's
Segment Adjusted EBITDA is the profitability metric reported to the Company's chief operating decision maker for purposes of making decisions about allocation of resources to, and assessing performance of, each reportable segment. Segment Adjusted EBITDA is a GAAP financial measure that is calculated as Revenue less Direct operating expenses and SG&A expenses, excluding restructuring and other costs. Restructuring and other costs include costs associated with cost savings initiatives such as severance, consulting and termination costs and other special costs.
Non-GAAP Financial Information
This earnings release includes information that does not conform to
The Company defines, and uses, these non-GAAP financial measures as follows:
- Adjusted EBITDA is defined as income (loss) from continuing operations, plus: income tax expense (benefit) attributable to continuing operations; all non-operating expenses (income), including other expense (income), loss (gain) on extinguishment of debt and interest expense, net; other operating expense (income), net; depreciation, amortization and impairment charges; share-based compensation expense 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 uses Adjusted EBITDA as one of the primary measures for the planning and forecasting of future periods, as well as for measuring performance for compensation of Company executives and other members of Company management. The Company believes Adjusted EBITDA is useful for investors because it allows investors to view performance in a manner similar to the method used by Company management and helps improve investors' ability to understand the Company's operating performance, making 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 part of the calculation of Adjusted EBITDA, the Company also presents the non-GAAP financial measure of "Adjusted Corporate expenses," which the Company defines as corporate expenses excluding share-based compensation expense and restructuring and other costs.
- The Company uses the National Association of Real Estate Investment Trusts ("Nareit") definition of FFO, which is consolidated net income (loss) before: depreciation, amortization and impairment of real estate; gains or losses from the disposition of real estate; and adjustments to eliminate unconsolidated affiliates and noncontrolling interests. The Company defines AFFO as FFO excluding discontinued operations and before the following adjustments for continuing operations: maintenance capital expenditures; straight-line rent effects; depreciation, amortization and impairment of non-real estate; loss on extinguishment of debt and debt modification expense; amortization of deferred financing costs and discounts; share-based compensation expense; deferred taxes; restructuring and other costs; transaction costs; foreign exchange transaction gain or loss; and other items, including adjustment for unconsolidated affiliates and noncontrolling interest and nonrecurring infrequent or unusual gains or losses.
The Company is not a Real Estate Investment Trust ("REIT"). However, the Company competes directly with REITs that present the non-GAAP measures of FFO and AFFO and, accordingly, believes that presenting such measures will be helpful to investors in evaluating the Company's operations with the same terms used by the Company's direct competitors. The Company calculates FFO in accordance with the definition adopted by Nareit. Nareit does not restrict presentation of non-GAAP measures traditionally presented by REITs by entities that are not REITs. In addition, the Company believes FFO and AFFO are already among the primary measures used externally by the Company's investors, analysts and competitors in its industry for purposes of valuation and comparing the operating performance of the Company to other companies in its industry. The Company does not use, and you should not use, FFO and AFFO as an indication of the Company's ability to fund its cash needs or pay dividends or make other distributions. Because the Company is not a REIT, the Company does not have an obligation to pay dividends or make distributions to stockholders and does not intend to pay dividends for the foreseeable future. Moreover, the presentation of these measures should not be construed as an indication that the Company is currently in a position to convert into a REIT.
A significant portion of the Company's advertising operations is conducted in foreign markets, principally
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 Adjusted EBITDA, FFO and AFFO, the Company's ability to fund its cash needs. In addition, these measures may not be comparable to similar measures provided by other companies. See reconciliations of loss from continuing operations to Adjusted EBITDA, corporate expenses to Adjusted Corporate expenses, and consolidated net loss to FFO and AFFO in the tables set forth below. This data should be read in conjunction with the Company's most recent Annual Report on Form 10-K, Form 10-Qs and Form 8-Ks, which are available on the Investor Relations page of the Company's website at investor.clearchannel.com.
Reconciliation of Loss from Continuing Operations to Adjusted EBITDA | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(in thousands) | 2024 | 2023 | 2024 | 2023 | |||
Loss from continuing operations | $ (31,543) | $ (51,082) | $ (168,519) | $ (182,493) | |||
Adjustments: | |||||||
Income tax benefit attributable to continuing operations | (3,800) | (244) | (5,991) | (12,022) | |||
Other (income) expense, net | 676 | 17,269 | 9,120 | (3,722) | |||
(Gain) loss on extinguishment of debt | — | (3,817) | 4,787 | (3,817) | |||
Interest expense, net | 106,995 | 107,391 | 322,060 | 314,624 | |||
Other operating expense, net | 3,684 | 6,179 | 9,745 | 10,122 | |||
Impairment charges | — | — | 18,073 | — | |||
Depreciation and amortization | 57,582 | 57,699 | 165,755 | 186,409 | |||
Share-based compensation | 6,810 | 4,987 | 19,612 | 15,134 | |||
Restructuring and other costs1 | 2,370 | 834 | 7,758 | 20,994 | |||
Adjusted EBITDA | $ 142,774 | $ 139,216 | $ 382,400 | $ 345,229 |
1 | Restructuring and other costs for the nine months ended September 30, 2023 include an expense of |
Reconciliation of Corporate Expenses to Adjusted Corporate Expenses | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(in thousands) | 2024 | 2023 | 2024 | 2023 | |||
Corporate expenses | $ (40,948) | $ (34,931) | $ (125,778) | $ (129,427) | |||
Share-based compensation | 6,810 | 4,987 | 19,612 | 15,134 | |||
Restructuring and other costs1 | 1,351 | 569 | 5,217 | 20,169 | |||
Adjusted Corporate expenses | $ (32,787) | $ (29,375) | $ (100,949) | $ (94,124) |
1 | Restructuring and other costs for the nine months ended September 30, 2023 include an expense of |
Reconciliation of Consolidated Net Loss to FFO and AFFO | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(in thousands) | 2024 | 2023 | 2024 | 2023 | |||
Consolidated net loss | $ (31,556) | $ (262,818) | $ (159,273) | $ (334,819) | |||
Depreciation and amortization of real estate | 50,754 | 50,352 | 144,069 | 177,986 | |||
Net loss (gain) on disposition of real estate (excludes condemnation proceeds)1 | 1,085 | 202,572 | (2,573) | 98,093 | |||
Impairment of real estate2 | — | — | 16,808 | — | |||
Adjustment for unconsolidated affiliates and non-controlling interests | (1,328) | (819) | (3,601) | (1,991) | |||
Funds From Operations (FFO) | 18,955 | (10,713) | (4,570) | (60,731) | |||
Less: FFO from discontinued operations | 40 | (10,337) | 9,427 | (47,672) | |||
FFO from continuing operations | 18,915 | (376) | (13,997) | (13,059) | |||
Capital expenditures–maintenance | (8,449) | (10,638) | (24,829) | (32,867) | |||
Straight-line rent effect | (2,540) | 1,902 | (5,446) | 4,113 | |||
Depreciation and amortization of non-real estate | 6,828 | 7,574 | 21,686 | 22,085 | |||
Impairment of non-real estate2 | — | — | 1,265 | — | |||
Loss or gain on extinguishment of debt and debt modification expense, net | — | 551 | 16,785 | 551 | |||
Amortization of deferred financing costs and note discounts | 2,877 | 2,994 | 8,715 | 8,788 | |||
Share-based compensation | 6,810 | 4,987 | 19,612 | 15,134 | |||
Deferred taxes | (6,307) | (3,074) | (12,102) | (18,464) | |||
Restructuring and other costs3 | 2,370 | 834 | 7,758 | 20,994 | |||
Transaction costs | 3,909 | 5,311 | 15,776 | 6,707 | |||
Foreign exchange transaction loss (gain) | (267) | 13,735 | (4,293) | (7,445) | |||
Other items | 2,704 | 812 | 4,934 | 3,270 | |||
Adjusted Funds From Operations (AFFO) | $ 26,850 | $ 24,612 | $ 35,864 | $ 9,807 |
1 | Net loss on disposition of real estate for the three and nine months ended September 30, 2023 includes a loss of |
2 | Impairment charges for the nine months ended September 30, 2024 relate to the impairment of long-lived assets in certain of the Company's Latin American businesses. |
3 | Restructuring and other costs for the nine months ended September 30, 2023 include an expense of |
Reconciliation of Loss from Continuing Operations Guidance1 to Adjusted EBITDA Guidance1 | |||
Full Year of 2024 | |||
(in millions) | Low | High | |
Loss from continuing operations | $ (165) | $ (150) | |
Adjustments: | |||
Income tax benefit attributable to continuing operations | (4) | (4) | |
Other expense, net | 9 | 10 | |
Loss on extinguishment of debt | 5 | 5 | |
Interest expense, net | 428 | 430 | |
Other operating expense, net | 13 | 15 | |
Impairment charges | 20 | 20 | |
Depreciation and amortization | 219 | 219 | |
Share-based compensation | 26 | 26 | |
Restructuring and other costs | 9 | 9 | |
Adjusted EBITDA | $ 560 | $ 580 |
1 | Guidance excludes movements in FX |
Reconciliation of Loss from Continuing Operations Guidance1 to AFFO Guidance1 | |||
Full Year of 2024 | |||
(in millions) | Low | High | |
Loss from continuing operations | $ (165) | $ (150) | |
Depreciation and amortization of real estate | 189 | 189 | |
Net gain on disposition of real estate (excludes condemnation proceeds) | (2) | (2) | |
Impairment of real estate | 19 | 19 | |
Adjustment for unconsolidated affiliates and non-controlling interests | (5) | (5) | |
FFO from continuing operations | 36 | 51 | |
Capital expenditures–maintenance | (39) | (42) | |
Straight-line rent effect | (8) | (8) | |
Depreciation and amortization of non-real estate | 30 | 30 | |
Loss on extinguishment of debt and debt modification expense | 17 | 17 | |
Amortization of deferred financing costs and discounts | 12 | 12 | |
Share-based compensation | 26 | 26 | |
Deferred taxes | (15) | (15) | |
Restructuring and other costs | 9 | 9 | |
Foreign exchange transaction gain | (4) | (4) | |
Other items | 26 | 29 | |
Adjusted Funds From Operations (AFFO) | $ 90 | $ 105 |
1 | Guidance excludes movements in FX. |
Conference Call
The Company will host a conference call to discuss these results on October 31, 2024 at 8:30 a.m. Eastern Time. The conference call number is 866-424-3432 (
About Clear Channel Outdoor Holdings, Inc.
Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) is at the forefront of driving innovation in the out-of-home advertising industry. Our dynamic advertising platform is broadening the pool of advertisers using our medium through the expansion of digital billboards and displays and the integration of data analytics and programmatic capabilities that deliver measurable campaigns that are simpler to buy. By leveraging the scale, reach and flexibility of our diverse portfolio of assets, we connect advertisers with millions of consumers every month.
For further information, please contact:
Investors:
Eileen McLaughlin
Vice President - Investor Relations
(646) 355-2399
InvestorRelations@clearchannel.com
Cautionary Statement Concerning Forward-Looking Statements
Certain statements in this earnings 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 that may cause the actual results, performance or achievements of Clear Channel Outdoor Holdings, Inc. and its subsidiaries (the "Company") to be materially different from any future results, performance, achievements, guidance, goals and/or targets expressed or implied by such forward-looking statements. The words "guidance," "believe," "expect," "anticipate," "estimate," "forecast," "goals," "targets" and similar words and 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, outlook, long-term forecast, goals or targets; our business plans and strategies; the benefits of the sales of our European businesses; the termination of the agreement to sell our business in
Various risks that could cause future results to differ from those expressed by the forward-looking statements included in this earnings release include, but are not limited to: continued economic uncertainty, an economic slowdown or a recession; our ability to service our debt obligations and to fund our operations, business strategy and capital expenditures; the impact of our substantial indebtedness, including the effect of our leverage on our financial position and earnings; the difficulty, cost and time required to implement our strategy, including optimizing our portfolio, and the fact that we may not realize the anticipated benefits therefrom; our ability to obtain and renew key contracts with municipalities, transit authorities and private landlords; competition; regulations and consumer concerns regarding privacy, digital services, data protection and the use of artificial intelligence; a breach of our information security measures; legislative or regulatory requirements; restrictions on out-of-home advertising of certain products; environmental, health, safety and land use laws and regulations, as well as various actual and proposed environmental, social and governance policies, regulations and disclosure standards; the impact of the processes to sell our businesses comprising our Europe-North segment and our businesses in
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SOURCE Clear Channel Outdoor Holdings, Inc.
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