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]

Revenue Performance - Consolidated revenue for Q1 2025 was $334.2 million, a 2.2% increase compared to Q1 2024[7] - America segment revenue increased by 1.8% to $254.2 million, while Airports segment revenue rose by 4.0% to $80.0 million[7] - The company reported revenue of $334.18 million for the three months ended March 31, 2025, an increase of 2.0% compared to $326.84 million in the same period of 2024[31] Profitability Metrics - Adjusted EBITDA for Q1 2025 was $79.3 million, down 12.5% from the previous year[7] - Operating income for the same period was $44.99 million, compared to $43.89 million in 2024, reflecting a year-over-year increase of 2.5%[31] - Consolidated net income for the three months ended March 31, 2025, was $63.21 million, compared to a loss of $89.08 million in the same period of 2024[31] - Adjusted EBITDA for the same period was $79.3 million, down from $90.6 million year-over-year, reflecting a decrease of approximately 12.9%[47] - Funds From Operations (FFO) for the three months ended March 31, 2025, was $(37.9) million, compared to $(49.1) million in 2024, indicating a year-over-year improvement of 22.4%[49] - Adjusted Funds From Operations (AFFO) for the three months ended March 31, 2025, was $(22.9) million, compared to $(12.8) million in 2024, showing a decline of approximately 78.5%[49] Operational Improvements - Loss from continuing operations improved to $(55.3) million, a 20.1% decrease compared to $(69.2) million in Q1 2024[20] - Corporate expenses decreased by 33.8% to $19.8 million, primarily due to $9.9 million in insurance proceeds[19] - The company has successfully eliminated approximately $35 million in annual corporate expenses and continues to focus on reducing debt[4] - Corporate expenses for the three months ended March 31, 2025, were $19.8 million, a decrease from $29.9 million in the same period of 2024, representing a reduction of approximately 33.8%[48] Future Guidance - The company expects Q2 2025 consolidated revenue to be between $393 million and $408 million, representing a 4% to 8% increase year-over-year[14] - Full-year 2025 consolidated revenue guidance remains unchanged at $1.562 billion to $1.607 billion, with a 4% to 7% increase expected[14] - The Company expects a loss from continuing operations guidance for the full year of 2025 to be between $(70) million and $(60) million[50] - The guidance for Adjusted EBITDA for the full year of 2025 is projected to be between $490 million and $505 million[50] Cash and Debt Management - The company had $401.3 million in cash and cash equivalents as of March 31, 2025, with a net increase of $233.6 million in cash during the quarter[26] - The company fully prepaid $375.0 million of the CCIBV Term Loan Facility on March 31, 2025, and expects to prioritize using remaining net proceeds to retire advantageous debt[27] - The company expects cash interest payments to be approximately $313 million for the remainder of 2025 and $381 million in 2026[29] Asset and Equity Position - Total assets decreased to $3.99 billion as of March 31, 2025, from $4.80 billion as of December 31, 2024[34] - The company reported a stockholders' deficit of $3.42 billion as of March 31, 2025, compared to a deficit of $3.64 billion at the end of 2024[34] Digital Advertising Strategy - The Company is focused on expanding its digital advertising platform and integrating data analytics to enhance its advertising capabilities[53] - Digital revenue increased by 6.4% to $89.6 million, driven by new contracts and digital billboard deployments[17] Display Operations - As of March 31, 2025, the company operated over 61,400 advertising displays across 80 Designated Market Areas in the U.S.[23] - As of March 31, 2025, the total number of displays in the America segment was 61,482, with a net decrease of 96 displays in the first quarter[24] Real Estate Transactions - The net gain on the disposition of real estate for the three months ended March 31, 2025, included a gain of $139.6 million primarily from the sales of businesses in Mexico, Peru, Chile, and Europe-North segment[49]

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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 that may cause the actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance, achievements, guidance, goals and/o ...

Core Viewpoint - Clear Channel Outdoor Holdings, Inc. has received all necessary regulatory approvals for the sale of its Europe-North segment to Bauer Radio Limited, with the transaction expected to close on March 31, 2025 [1][2]. Company Overview - Clear Channel Outdoor Holdings, Inc. is a leader in the out-of-home advertising industry, focusing on innovation through digital billboards, data analytics, and programmatic capabilities to enhance advertising effectiveness [3]. - The company connects advertisers with millions of consumers monthly by leveraging its diverse portfolio of advertising assets [3].