Clear Channel Outdoor Holdings, Inc. Reports Results For 2019 Third Quarter
6:00 AM ET 11/6/19 | PR Newswire
SAN ANTONIO, Nov. 6, 2019 /PRNewswire/ -- Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) ("the Company") today reported financial results for the quarter ended September 30, 2019.
"In our first full quarter as an independent company, we continue to successfully execute on our strategic plan. Our largest business segment delivered strong growth, and we strengthened our capital structure and cash flow generation," said William Eccleshare, Worldwide Chief Executive Officer of Clear Channel Outdoor Holdings, Inc. "Specifically, our Americas revenue grew more than 8% year-over-year in the third quarter, including double-digit growth in digital revenue. We continue to benefit from our technological transformation, most particularly the development of our proprietary CCO RADAR tools, and the positive audience trends for the outdoor medium.
"Globally, we are raising the bar in our industry by demonstrating the power and influence of our medium. We recently announced the first airport in the U.S. showcasing all-digital advertising displays in San Jose, California. In the U.K., our Adshel Live network now reaches approximately 38% of the population weekly and is the country's largest individual digital out-of-home network.
"We remain on track to achieve the financial guidance and outlook we provided in August. As a result of our recent capital market activities, Clear Channel Outdoor is benefiting from an improved balance sheet and reduced cash interest payments. We are investing our available free cash flow in attractive new assets that we see generating significant returns on capital for our business. This investment represents a majority of our capital expenditure guidance for 2019. We are optimistic and believe that our strengthened financial position, combined with expected growth in free cash flow, will provide us with greater flexibility to reduce leverage and drive shareholder value."
Key Financial Highlights
The Company's key financial highlights for the third quarter of 2019, as compared to the same period of 2018, include:
-- Consolidated revenue decreased 1.6%. After adjusting for the impact from
movements in foreign exchange rates, consolidated revenue increased 0.6%.
-- Americas revenue increased $24.8 million, or 8.2%.
-- International revenue decreased $35.1 million, or 9.7%. After adjusting
for a $14.4 million impact from movements in foreign exchange rates,
International revenue decreased $20.7 million, or 5.8%.
-- Operating income decreased $3.5 million to $47.7 million.
-- OIBDAN decreased 5.8%. Excluding the impact from movements in foreign
exchange rates, OIBDAN decreased 5.3%.
Additionally, during the third quarter of 2019:
-- The Company issued 100 million shares of common stock in a public
offering and used the net proceeds to redeem approximately $333.5 million
aggregate principal amount of 9.25% Senior Subordinated Notes due 2024
(which ceased to be subordinated indebtedness following the refinancing
transactions as described below) (the "New CCWH Senior Notes").
-- The Company refinanced its outstanding $2,725.0 million aggregate
principal amount of 6.5% Series A and Series B Senior Notes due 2022 (the
"CCWH Senior Notes") and $375.0 million aggregate principal amount of
8.75% Senior Notes due 2020 (the "CCIBV Senior Notes") with the issuance
of $1,250.0 million aggregate principal amount of new 5.125% Senior
Secured Notes due 2027 (the "New CCOH Senior Secured Notes") and a
$2,000.0 million seven-year term loan facility (the "New Term Loan
Facility").
-- The Company entered into a $175.0 million revolving credit facility (the
"New Revolving Credit Facility") and replaced its existing
receivables-based credit facility with a new $125.0 million
receivables-based credit facility (the "New Receivables-Based Credit
Facility").
Refer to the "Liquidity and Financial Position" section of this press release for more details.
Key Non-Financial Highlights
The Company's key third quarter non-financial highlights include:
Americas:
-- Adding 18 new digital billboards in the United States, for a total of
more than 1,600 digital displays, including more than 1,300 digital
billboards, in our Americas business as of September 30, 2019.
-- Transforming the San Jose International Airport into the first
all-digital and most advanced airport advertising and sponsorship program
in the U.S., integrated with CCO RADAR, our suite of audience planning,
amplification and measurement solutions.
-- Completing the transformation and launch of over 1,300 new visually
striking, printed out-of-home displays across the small, mid and large
U.S. market footprint. Premiere panels bring nearly bulletin-sized media
down-to-earth for even greater pedestrian and road travel visibility.
These newly repositioned, vinyl-wrapped posters are available in
highly-trafficked urban, upscale and nightlife areas and are fully
supported by our RADAR suite of products.
-- Partnering with a major movie studio to develop a unique campaign for a
blockbuster movie. The campaign expands the footprint of print displays
beyond the key Los Angeles and New York markets with 161 bulletins in 16
markets benefiting from the creative flexibility and impact that
out-of-home can deliver.
-- Continuing to build out our real-time digital capabilities, including the
first weather-triggered programmatic ad campaign in Times Square,
airports and across our roadside inventory. This enables advertisers to
reach consumers with relevant products in an audience-centric and
contextually-relevant way depending on weather conditions.
-- Launching a new capability through our RADAR platform which advances our
ability to measure and attribute mobile app download activity and
consumer actions relative to our ad campaigns.
International:
-- Adding 1,004 new digital displays in our International markets, for a
total of more than 15,000 digital displays in our International business
at September 30, 2019.
-- Close to completing the roll-out of more than 1,600 street furniture
units in Paris, with advertising campaigns for Éric Bompard, Chanel,
Netflix, Uber, Coca-Cola and Calvin Klein in place for the fourth
quarter.
-- Winning a six-year contract for the subway in Toulouse, one of France's
largest metropolitan areas, which will increase the number of digital
screens from 30 to 95 and reduce print screens from 415 to 332.
-- Renewing the Helsinki Airport contract for another 8.5 years with plans
to upgrade the airport's existing inventory and increase the digital
out-of-home presence significantly, with the ambition to have digital
represent 85% of total displays within the duration of the contract.
-- Installing the 2,000th Adshel Live digital screen in the U.K., which
firmly cements the position of Clear Channel's Adshel Live network as the
country's largest individual digital out-of-home network, reaching
approximately 38% of the population weekly.
-- Continuing our digital expansion efforts to reach 1,000 digital screens
across Sweden's biggest cities of Stockholm, Malmö, Gothenburg and
Solna. Clear Channel Sweden is the only out-of-home provider to offer
advertisers digital street furniture solutions in the cities of Stockholm,
Malmö and Gothenburg.
-- Receiving the "Best Poster Provider" award at the Swiss media industry
awards, which was voted on by the country's 750 top advertisers, media
agencies and creatives.
Guidance and Outlook
-- The Company anticipates revenue and OIBDAN growth in the Americas to be
in the mid-to-high single digits for the second half of 2019.
-- Internationally, excluding China and any foreign currency impact, the
Company expects low single digit growth in both revenue and OIBDAN for
the second half of 2019.
-- 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 Company expects its consolidated capital expenditures to be in the
$225 million to $235 million range for the full year of 2019.
-- The Company intends to provide full-year guidance for 2020 in its
earnings release for the fourth quarter of 2019.
GAAP Measures by Segment
Three Months Ended % Nine Months Ended %
(In thousands) September 30, Change September 30, Change
2019 2018 2019 2018
Revenue:
Americas $328,250 $303,421 8.2 % $928,114 $859,190 8.0 %
International 325,197 360,318 (9.7) % 1,010,464 1,114,927 (9.4) %
Consolidated
Revenue $653,447 $663,739 (1.6) % $1,938,578 $1,974,117 (1.8) %
Direct operating and SG&A expenses(1) :
Americas $192,465 $180,488 6.6 % $566,076 $532,448 6.3 %
International 294,853 309,990 (4.9) % 889,785 944,952 (5.8) %
Consolidated
Direct
operating and
SG&A
expenses(2) $487,318 $490,478 (0.6) % $1,455,861 $1,477,400 (1.5) %
Operating
income
(loss)(2) :
Americas $98,132 $83,150 18.0 % $240,331 $199,332 20.6 %
International (4,029) 13,701 (129.4)% 17,913 56,100 (68.1)%
Corporate (41,735) (38,724) (7.8) % (112,059) (114,039) 1.7 %
Impairment
charges (5,300) (7,772) 31.8 % (5,300) (7,772) 31.8 %
Other operating
income
(expense),
(MORE TO FOLLOW) Dow Jones Newswires
November 06, 2019 06:00 ET (11:00 GMT)
AI
