Core Insights - Clear Channel Outdoor (CCO) is collaborating with Texas Center for the Missing (TCM) to raise awareness about missing children in Texas through a month-long public service campaign [2][5] - The campaign aims to distribute photos of missing children across major Texas markets, leveraging billboards as a vital tool for law enforcement to generate leads [4][5] - The Texas Department of Public Safety reported 44,783 missing person cases in 2024, with 31,864 being juveniles, highlighting a national crisis regarding missing and exploited children [3] Company Overview - Clear Channel Outdoor Holdings, Inc. is a leader in the out-of-home advertising industry, focusing on innovation through digital billboards and data analytics to enhance advertising effectiveness [11] - The company has a strong commitment to community initiatives, exemplified by its partnership with TCM, which has historically helped reunite missing children with their families [5][12] Industry Context - The ongoing crisis of missing and exploited children necessitates community awareness and law enforcement training, as emphasized by TCM's efforts since its founding in 2000 [12] - TCM has served over 500,200 children and families and trained 8,400 law enforcement officers, showcasing its significant impact on addressing the issue of missing persons [12]

Clear Channel Outdoor (CCO) FY Conference Summary Company Overview - **Company**: Clear Channel Outdoor (CCO) - **Date of Conference**: May 13, 2025 - **Key Speakers**: Scott Wells (President and CEO), David Saylor (EVP and CFO) Key Points Industry and Company Strategy - Clear Channel Outdoor is at a pivotal moment after completing the sale of most of its international businesses, focusing exclusively on the U.S. market [4][5] - The company aims to continue its digital transformation, pay down debt, and develop new verticals for organic growth [6][8] - A zero-based budgeting process is being implemented to further reduce corporate expenses [7][53] Market Trends and Demand - The company reported healthy demand across its markets, with steady dialogues with local marketers despite global volatility [8][9] - Emerging verticals include AI and a resurgence in the insurance sector, particularly auto insurance, which had previously declined during COVID [9][10][15] - San Francisco's market recovery is expected to provide a tailwind for growth [10][12] Revenue Guidance and Visibility - The company has over 85% visibility into Q2 revenue and is on track with its full-year revenue guidance [11] - The MTA contract acquired at the end of the previous year is expected to drive revenue growth, although it comes with lower margins initially [12][49] Digital Transformation and Programmatic Advertising - Digital conversions remain a key growth driver, with internal rates of return (IRR) in the low 30s [40] - The company is balancing static and digital inventory while increasing programmatic advertising, which adds some volatility but also opportunities [42][45] Financial Performance and Cost Management - Clear Channel Outdoor has eliminated $35 million in annual corporate expenses following the divestiture of international operations [53] - The company is focused on reducing leverage and improving margins, with expectations for year-over-year margin increases despite initial lower margins from new contracts [52][66] Future Growth and Partnerships - The company is exploring creative structures for asset management and partnerships, including potential joint ventures and preferred equity arrangements [58][60] - Clear Channel Outdoor is considering options for REIT conversion, contingent on achieving appropriate leverage levels [67] Debt Management and Capital Markets - The company ended the quarter with approximately $400 million in cash and plans to use excess cash for debt repayment [62][65] - Clear Channel Outdoor is actively monitoring capital markets for opportunities to refinance upcoming debt maturities [70][73] Conclusion - Clear Channel Outdoor is strategically positioned for growth in the U.S. market, focusing on digital transformation, cost management, and leveraging new partnerships while navigating the complexities of the advertising landscape [4][6][58]

Core Points - Clear Channel Outdoor Holdings, Inc. has entered into a definitive agreement to sell its business in Brazil to Publibanca Brasil S.A. for approximately R$80 million (US$14 million) [1][2][3] - The transaction is subject to regulatory approval from Brazil's Administrative Council for Economic Defense and other customary closing conditions, with an expected closing in 2025 [2][3] - The proceeds from the sale will be used to improve the company's liquidity position and is part of a strategy to optimize its portfolio, focusing on the America and Airports segments [2][3] Company Overview - Clear Channel Outdoor Holdings, Inc. is a leader in the out-of-home advertising industry, leveraging digital billboards and data analytics to enhance advertising effectiveness [5] - The company aims to connect advertisers with millions of consumers monthly through its diverse portfolio of advertising assets [5] Advisory Information - Moelis & Company LLC has been engaged as the financial advisor to assist with the sale of the company's Latin American businesses [4]

Core Insights - Clear Channel Outdoor (CCO) reported a revenue of $334.18 million for Q1 2025, reflecting a year-over-year decline of 30.6% and an EPS of -$0.11 compared to -$0.17 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $338.17 million, resulting in a surprise of -1.18%, while the EPS exceeded expectations by 15.38% against a consensus estimate of -$0.13 [1] Financial Performance - CCO's shares have returned -11.3% over the past month, contrasting with the Zacks S&P 500 composite's -0.7% change, indicating underperformance relative to the broader market [3] - The company holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3] Geographic Revenue Breakdown - Revenue from America was reported at $254.19 million, slightly above the average estimate of $256.44 million, showing a year-over-year increase of +1.8% [4] - Airport revenue reached $79.98 million, marginally exceeding the estimated $79.85 million, with a year-over-year growth of +4% [4] - Adjusted EBITDA for Airports was $14.31 million, below the average estimate of $15.45 million, while corporate expenses showed an adjusted EBITDA of -$22.74 million, slightly better than the estimated -$22.82 million [4]

Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2025 was $334 million, a 2.2% increase compared to Q1 2024, in line with guidance [24] - Loss from continuing operations was $55 million, and adjusted EBITDA for the quarter was $79 million, down 12.5% [24] - AFFO was negative $23 million, within expectations [24] Business Line Data and Key Metrics Changes - Americas segment revenue was $254 million, up 1.8%, driven by the MTA roadside billboard contract, with digital revenue up 6.4% [25] - Airports segment revenue was $80 million, up 4%, driven by a 20% increase in national sales, despite a 16.4% decline in local sales [26] - Adjusted EBITDA for the Americas segment was $88 million, down 8%, with a margin of 34.6% [25] Market Data and Key Metrics Changes - The company noted a significant recovery in San Francisco, which had been a headwind in 2023, and is expected to be a tailwind in 2025 [12] - Increased interest from national advertisers was observed, particularly in the media and entertainment sectors [40] Company Strategy and Development Direction - The company is focusing on becoming a U.S.-focused business, simplifying operations to reduce interest and corporate expenses [17][18] - Plans to continue reducing debt and exploring creative solutions to enhance leverage using strong operating assets [19] - The management is optimistic about the future of out-of-home advertising in the U.S. and aims for mid-single-digit growth in consolidated revenue and adjusted EBITDA [32] Management's Comments on Operating Environment and Future Outlook - Management is not currently seeing cancellations or scaled-down campaigns, indicating confidence in cash generation [14] - The company is prepared for potential macroeconomic challenges but believes it is well-positioned to gain media share [31] - The outlook for 2025 is positive, with a strong pipeline and over 85% of Q2 revenue already booked [20] Other Important Information - The company has successfully reduced annual corporate expenses by approximately $35 million and aims to further reduce costs [12] - Strong liquidity position with $568 million at the end of the quarter, including cash and available revolver funds [28] Q&A Session Summary Question: Visibility into the back half of the year and corporate expense reductions - Management expressed confidence in visibility for the year, noting positive trends in various markets, including media and entertainment [40] - Opportunities for cost reductions are being explored, with a focus on a zero-based budget approach [42] Question: Cancellation terms for advertisers and macroeconomic impact on guidance - Standard cancellation terms are a 60-day notice for printed ads, with digital terms varying [49] - The low end of guidance reflects current market conditions without assuming broader economic impacts [50] Question: Impact of digital assets on performance during downturns - Management noted that digital assets tend to recover faster than print during downturns, with no current signs of weakness [55] Question: Site lease expenses and margin cadence - Site lease expenses are expected to stabilize, with margins for airports returning to historical levels around 20% [59][60] Question: Debt buyback flexibility and capital structure - The company is focused on achieving the best yield in its capital structure, utilizing liquidity from recent transactions [63] Question: Interest from potential counterparties for creative solutions - Management is encouraged by the interest in their assets but is not ready to disclose specific opportunities yet [66] Question: Static and print revenues performance - Management expects print revenues to grow over the year, attributing current declines to unique campaign drivers rather than digital cannibalization [71]

Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2025 was $334 million, a 2.2% increase compared to Q1 2024, aligning with guidance [22] - Loss from continuing operations was $55 million, and adjusted EBITDA for the quarter was $79 million, down 12.5% due to expected declines in airport rate abatements [22] - AFFO was negative $23 million, within expectations [22] Business Line Data and Key Metrics Changes - Americas segment revenue was $254 million, up 1.8%, driven by the MTA roadside billboard contract, with digital revenue up 6.4% [23] - Airports segment revenue was $80 million, up 4%, with a 20% increase in national sales, but a 16.4% decline in local sales [24] - Adjusted EBITDA for the Americas segment was $88 million, down 8%, while airports segment adjusted EBITDA was $14 million, down 25% [22][24] Market Data and Key Metrics Changes - The company noted a recovery in San Francisco, which had been a significant headwind in 2023, and is expected to contribute positively in 2025 [10] - Increased interest from national advertisers was observed, with bookings up double digits so far this year [10] Company Strategy and Development Direction - The company is focusing on becoming a U.S.-focused business, simplifying operations to reduce interest and corporate expenses [5][16] - Plans to continue reducing debt using proceeds from asset sales and cash on hand, with a focus on positive cash generation [10][12] - The management is optimistic about the future of out-of-home advertising in the U.S. and is actively exploring creative solutions to enhance leverage [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to gain media share despite macroeconomic uncertainties [30] - The company is not currently seeing cancellations or scaled-down campaigns, indicating a stable demand environment [11][12] - Guidance for full-year revenue and adjusted EBITDA remains confirmed, with an increase in AFFO guidance reflecting lower interest expenses [27][30] Other Important Information - The company has successfully eliminated approximately $35 million in annual corporate expenses and expects further reductions [10] - Strong liquidity position with $568 million at the end of the quarter, including cash and available revolver funds [26] Q&A Session Summary Question: Visibility into the back half of the year and corporate expense reductions - Management indicated good visibility into the year, with positive trends in various markets, including media and entertainment [39] - Opportunities for cost reductions will be explored comprehensively, including a zero-based budget approach [42] Question: Cancellation terms for advertisers and macroeconomic impact on guidance - Standard cancellation terms are a 60-day notice for printed ads, with digital terms varying [47] - The low end of guidance reflects current market conditions without assuming broader macroeconomic impacts [48] Question: Impact of digital assets on performance during downturns - Management noted that digital revenue has historically rebounded faster than print during downturns, providing some resilience [54] Question: Site lease expenses and margin cadence - Site lease expenses are expected to stabilize, with margins affected by the MTA contract ramp-up and seasonal trends in advertising [58] Question: Debt buyback flexibility and strategic opportunities - The company is focused on optimizing its capital structure for the best yield, with a reinvestment period allowing for strategic debt management [62] - Interest from potential counterparties for creative solutions has been encouraging, but specific opportunities are still under exploration [65]

Core Insights - Clear Channel Outdoor reported a quarterly loss of $0.11 per share, better than the Zacks Consensus Estimate of a loss of $0.13, and an improvement from a loss of $0.17 per share a year ago, indicating a 15.38% earnings surprise [1] - The company posted revenues of $334.18 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.18%, and down from $481.75 million year-over-year [2] - Clear Channel Outdoor shares have declined approximately 28.2% since the beginning of the year, contrasting with the S&P 500's decline of 5.3% [3] Earnings Outlook - The earnings outlook for Clear Channel Outdoor is mixed, with the current consensus EPS estimate for the upcoming quarter at -$0.06 on revenues of $387.56 million, and -$0.24 on revenues of $1.57 billion for the current fiscal year [7] - The company's Zacks Rank is currently 3 (Hold), suggesting that shares are expected to perform in line with the market in the near future [6] Industry Context - The Advertising and Marketing industry, to which Clear Channel Outdoor belongs, is currently in the top 33% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Revenue increased by 2.2% to $334 million in Q1 2025[11] - Loss from continuing operations decreased by 20.1% to $55 million[11] - Adjusted EBITDA decreased by 12.5% to $79 million[11] - AFFO decreased by 78.4% to $(23) million[11] Segment Results - America's revenue increased by 1.8% to $254 million[13] - America's digital revenue increased 6.4% to $90 million[15] - Airports' revenue increased by 4.0% to $80 million[16] - Airports' digital revenue increased 15.6% to $49 million[18] Capital Structure and Liquidity - Debt decreased by $368 million to $5,293 million[22] - Cash and cash equivalents increased by $237 million to $401 million[22] - Prepaid $375 million CCIBV Term Loan Facility and repurchased ~$120 million in Bonds[9] Guidance - The company confirmed FY 2025 revenue guidance of $1,562 million to $1,607 million[9, 24] - The company confirmed FY 2025 Adjusted EBITDA guidance of $490 million to $505 million[9, 24] - The company raised FY 2025 AFFO guidance to $80 million to $90 million[9, 24]

Core Viewpoint - Clear Channel Outdoor Holdings, Inc. reported a 2.2% increase in consolidated revenue for Q1 2025, driven by growth in the America and Airports segments, and is optimistic about future performance due to a solid pipeline of business and strategic focus on U.S. operations [2][4][3]. Financial Performance - Consolidated revenue for Q1 2025 was $334.2 million, up from $326.8 million in Q1 2024, reflecting a 2.2% increase [5][35]. - America segment revenue increased by 1.8% to $254.2 million, while Airports segment revenue rose by 4.0% to $80.0 million [5][15]. - The company reported a net loss from continuing operations of $55.3 million, a 20.1% improvement compared to a loss of $69.2 million in the same period last year [5][22]. Adjusted EBITDA and AFFO - Adjusted EBITDA for Q1 2025 was $79.3 million, down 12.5% from $90.6 million in Q1 2024 [5][23]. - The company reported an Adjusted Funds From Operations (AFFO) of $(22.9) million, a decline of 78.4% compared to $(12.8) million in Q1 2024 [24][55]. Cost Management and Debt Reduction - The company successfully reduced corporate expenses by approximately $35 million annually and is focused on further reductions [3][19]. - Clear Channel Outdoor used proceeds from the sale of its Europe-North segment to fully prepay $375 million of its term loan facility, which is expected to lower interest expenses [8][30]. Strategic Focus - The company is transitioning to a U.S.-focused business model, having completed the majority of its international asset sales, which is expected to enhance financial resiliency and reduce operational risk [3][4]. - Future growth is anticipated from higher-margin U.S. assets and ongoing digital transformation initiatives [4][20]. Guidance - For Q2 2025, the company expects consolidated revenue between $393 million and $408 million, representing a 4% to 8% increase from the prior year [11]. - Full-year 2025 guidance for consolidated revenue remains unchanged at $1.562 billion to $1.607 billion, with an expected 7% increase year-over-year [12].

Revenue Performance - Consolidated revenue increased by $7.3 million, or 2.2%, to $334.2 million for the three months ended March 31, 2025, compared to $326.8 million in the same period in 2024[91] - Digital revenue rose by $12.1 million, or 9.5%, to $138.9 million, representing 41.6% of total consolidated revenue for the three months ended March 31, 2025[94] - The America segment reported revenue of $254.2 million, an increase of $4.4 million, or 1.8%, driven by the new MTA contract[106] - Digital revenue in the America segment increased by $5.4 million, or 6.4%, to $89.6 million, accounting for 35.3% of total segment revenue[107] - Airports revenue increased by $3.1 million, or 4.0%, to $79.983 million for the three months ended March 31, 2025, primarily due to strong national advertising demand[112] - Airports digital revenue grew by $6.647 million, or 15.6%, to $49.257 million, representing 61.6% of total segment revenue[112] Expenses - Consolidated direct operating expenses increased by $13.5 million, or 8.7%, to $168.5 million, primarily due to higher site lease expenses related to the new MTA contract[95] - Consolidated selling, general and administrative expenses rose by $4.4 million, or 7.4%, to $63.7 million, driven by higher credit loss expenses and increased employee compensation[96] - America direct operating expenses increased by $7.0 million, or 6.7%, to $111.0 million for the three months ended March 31, 2025, compared to the same period in 2024[109] - America SG&A expenses rose by $4.6 million, or 9.3%, driven by higher credit loss expenses and increased employee compensation[110] - Airports direct operating expenses increased by $7.0 million, or 14.4%, to $56.109 million, driven by higher site lease expenses[113] Income and Loss - Loss from continuing operations narrowed to $55.3 million for the three months ended March 31, 2025, compared to a loss of $69.2 million in the same period in 2024[91] - Income from discontinued operations was $118.5 million for the three months ended March 31, 2025, compared to a loss of $19.9 million for the same period in 2024[117] Cash Flow and Debt - Net cash provided by operating activities for Q1 2025 was $14.9 million, a significant improvement from a net cash outflow of $34.8 million in Q1 2024, driven by a $38.1 million decrease in cash paid for interest[138] - The company received net cash proceeds of $609.3 million from the sale of businesses during Q1 2025, including $593.3 million from the Europe-North segment[139] - The company expects cash interest payments to be approximately $313 million for the remainder of 2025[135] - The next debt maturity is in August 2027, with $1.25 billion of 5.125% Senior Secured Notes due[136] - The total first lien net debt as of March 31, 2025, was $2,898.0 million, after accounting for cash and cash equivalents of $395.8 million[144] Capital Expenditures and Financial Position - Total capital expenditures for the three months ended March 31, 2025, were $25.526 million, compared to $26.204 million in the same period in 2024[129] - As of March 31, 2025, the company had $401.3 million in cash and cash equivalents, including $5.5 million from discontinued operations[137] - The company has access to a total credit facility of $258.1 million, with excess availability of $166.3 million as of March 31, 2025[141] - The maximum borrowing limit under the Receivables-Based Credit Facility is $175.0 million, which fluctuates based on accounts receivable[141] Strategic Actions - The company sold its Europe-North segment businesses for $625.0 million and used part of the proceeds to prepay $375.0 million of its Term Loan Facility[83] - The company expects to prioritize using remaining net proceeds to retire advantageous debt in its capital structure[83] - The company plans to prioritize using net proceeds from business sales to retire advantageous debt in its capital structure[139] Forward-Looking Statements - The company cautions that forward-looking statements regarding future performance are subject to numerous risks and uncertainties[148] EBITDA and Leverage - EBITDA for the four quarters ended March 31, 2025, was reported at $472.0 million, reflecting operating income adjusted for various nonrecurring items[145] - As of March 31, 2025, the first lien net leverage ratio was 6.14 to 1.00, down from the covenant limit of 7.10 to 1.00[142]