Clear-Channel-Outdoor-Holdings, Inc. Reports-Results for 2014 Fourth-Quarter and Full-Year
Last update: 19/02/2015 7:00:01 am
-- Fourth quarter revenues down 1% -- Excluding the impact of foreign exchange rates, revenues1 up 4%
-- Fourth quarter OIBDAN1 up 5% -- Excluding the impact of foreign exchange rates, OIBDAN1 up 8%
-- Full year revenues up 1%
-- Full year OIBDAN1 flat -- Excluding impact of foreign exchange rates, OIBDAN1 up 1% SAN ANTONIO--(BUSINESS WIRE)--February 19, 2015--
Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) today reported financial results for the fourth quarter and full year ended December 31, 2014.
"With their industry-leading innovation and award-winning creativity, our team continues to prove the value of outdoor to local, national and global advertisers," said Bob Pittman, Executive Chairman of Clear Channel Outdoor Holdings, Inc. "At International outdoor, we continued to drive growth across key markets both in developed and emerging countries and we saw consistent improvement in our Americas business throughout the year. Our continued focus on the expansion of our digital portfolio as well as superior execution drove both top and bottom line results for us in 2014. Looking ahead to 2015, we will continue to use technology and creativity to engage global consumers and meet the needs of brands and agencies in advertising, creative and media."
"I'm pleased at the strong performance of our International outdoor business in 2014, driving revenue growth across Western Europe, as well as in key emerging markets," said Chief Executive Officer William Eccleshare. "In the Americas, we faced tough challenges in the first half of the year, but our focus on working smarter, faster, and more efficiently resulted in consistent improvement throughout the year. We continue to be an industry leader in the integration of out-of-home with mobile and social platforms, and our growing digital platform enables us to provide powerful solutions for advertisers with the scale and flexibility they demand."
Full Year 2014 Results
Consolidated revenues were up 1% to $2.96 billion for the full year 2014 compared to 2013, driven by growth at International Outdoor, partially offset by a decrease in revenues at Americas Outdoor. Excluding the unfavorable impact of movements in foreign exchange rates of $23 million, revenues were up 1%. -- Americas outdoor revenues decreased $34 million, or 3%, compared to 2013, after adjusting for a $3 million unfavorable impact from movements in foreign exchange rates. On a reported basis, revenues decreased $37 million, or 3%, compared to 2013. Revenue decrease was driven primarily by lower national advertising and lower revenues in our Los Angeles market as a result of our digital boards that became inactive in April 2013. Growth in digital revenues was partially offset by decreases in revenues from traditional product lines.
-- International outdoor revenues increased $72 million, or 4%, after adjusting for a $19 million unfavorable impact from movements in foreign exchange rates. On a reported basis, revenues increased $52 million, or 3%, compared to 2013. Revenue growth was driven primarily by strong performance in Italy, Sweden, France and the UK, as well as in emerging markets, including China and Mexico.
The Company's OIBDAN(1) of $701 million grew 1% compared to 2013 after adjusting for a $9 million unfavorable impact from movements in foreign exchange rates. On a reported basis, OIBDAN(1) grew by less than 1%. Included in the 2014 OIBDAN(1) were $10 million of operating expenses and $20 million of corporate expenses related to the Company's strategic revenue and efficiency initiatives to attract additional advertising dollars to the business and improve operating efficiencies, compared to $25 million and $11 million of such expenses in 2013, respectively. The growth in OIBDAN(1) was impacted by $13 million of litigation expenses in 2014 compared to $12 million in 2013.
The Company's consolidated EBITDA, as defined under the CCWH Senior Notes indenture, was $772 million in 2014, down 1% from 2013.
The Company's consolidated net income totaled $17 million for 2014 compared to a consolidated net loss of $24 million in 2013, due primarily to an income tax benefit compared to tax expense in 2013 and foreign exchange transaction gains recognized in 2014, partially offset by lower operating income.
Fourth Quarter 2014 Results
Consolidated revenues decreased $4 million, or 1%, to $802 million in the fourth quarter of 2014 compared to $806 million in the same period of 2013. Excluding the effects of movements in foreign exchange rates, revenues increased $30 million, or 4%. -- Americas outdoor revenue decreased $1 million, or nearly flat, year over year, after adjusting for a $1 million unfavorable impact from movements in foreign exchange rates. On a reported basis, revenues decreased $2 million, or 1%, compared to 2013. The decrease was driven primarily by lower national revenues. Higher digital revenues were more than offset by a decrease in revenues from traditional product lines.
-- International outdoor revenues increased $31 million, or 7%, after adjusting for a $33 million unfavorable impact from movements in foreign exchange rates. On a reported basis, revenues were down $2 million, or nearly flat, year over year. Revenue growth was driven primarily by strong performance in Europe as well as emerging markets, including China and Mexico.
After adjusting for the movements in foreign exchange, the Company's OIBDAN(1) was up 8% compared to the same period in 2013. On a reported basis, OIBDAN(1) was up 5% to $234 million for the fourth quarter compared to the same period in 2013. Included in the 2014 fourth quarter OIBDAN(1) were $3 million of operating expenses and $6 million of corporate expenses associated with the Company's strategic revenue and efficiency initiatives, compared to $8 million and $5 million of such expenses in the prior year, respectively.
The Company's consolidated net income totaled $43 million in the fourth quarter of 2014 compared to $13 million in the same period of 2013. This was due primarily to higher operating income, resulting primarily from lower direct operating and SG&A expenses and a lower impairment charge recognized in the fourth quarter of 2014 compared with the same period in the prior year.
Key Highlights
The Company's recent key highlights include:
Americas -- Installed 50 new digital billboards in North America for an end of quarter total of 1,175 across 38 markets.
-- Becoming exclusive sales agent for the largest, most technically advanced billboard in Manhattan's Times Square. Spanning a full city block in one of the most visited, photographed and filmed locations in the world, the new 25,000 square-foot billboard creates a powerful value proposition for advertisers.
International -- Installed over 300 new digital displays in international markets for an end of quarter total of over 4,700 displays.
-- Announcing the nationwide expansion of Clear Channel's super premium digital portfolio in the UK. The state-of-the-art screens, which will be connected through a centralized data management system, will give the world's biggest brands the chance to target valuable audiences through campaigns that are easier to plan and easier to buy.
-- Winning the Glasgow street furniture contract in which 600 city-owned bus shelters will be fitted with Clear Channel's "Connect" mobile platform enabling consumers to engage with advertisers by accessing interactive content via their smartphones.
Revenues, Operating Expenses and OIBDAN by Segment ---------------------------------------------------------------------------------
Revenues, Operating Expenses and OIBDAN by Segment Excluding Movements in Foreign Exchange(1) ---------------------------------------------------------------------------------
Three Months Ended Year Ended (In thousands) December 31, December 31,
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February 19, 2015 07:00 ET (12:00 GMT)
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