Clear Channel Outdoor(CCO) - 2024 Q4 - Annual Report

Revenue and Growth - Consolidated revenue increased by $71.0 million, or 5.0$1,505,230, driven by higher demand and continued investment in digital infrastructure [188]. - Digital revenue for 2024 was $622,251, representing 41.3$42.7 million, or 3.9%, in 2024 compared to 2023, driven by increased demand for printed and digital billboards [212]. - Digital revenue in America increased by 7.0% from 2023, reaching $415.1 million in 2024, accounting for 36.3$49.9 million, or 16.0%, in 2024 compared to 2023, supported by strong advertising demand and investments in digital media infrastructure [220]. - Airports digital revenue reached $207.2 million in 2024, representing 57.3$1,505,230, an increase of 4.9% compared to $1,434,186 in 2023 [314]. Expenses and Losses - Consolidated direct operating expenses increased by$20.2 million, or 3.1%, in 2024, primarily due to higher site lease expenses and increased production costs [194]. - Consolidated selling, general and administrative expenses increased to $252,907 in 2024, up from$235,470 in 2023 [188]. - Consolidated SG&A expenses increased by $17.4 million, or 7.4$175,878 in 2024, compared to a net loss of $308,816 in 2023 [188]. - Loss from discontinued operations was$52.1 million in 2024, compared to $149.4 million in 2023 and$105.3 million in 2022 [226]. - Interest expense, net, increased by $3.5 million in 2024 compared to 2023, due to higher average interest rates on the Term Loan Facility [207]. - The company incurred interest expense of$401,541 in 2024, slightly up from $398,050 in 2023 [314]. Cash Flow and Liquidity - In 2024, net cash provided by operating activities was$79.7 million, an increase of $48.5 million compared to 2023 [251][252]. - The company had cash, cash equivalents, and restricted cash of$172,072 thousand at the end of 2024, down from $260,541 thousand at the end of 2023 [318]. - As of December 31, 2024, the company had$164.3 million in cash and cash equivalents, including $54.6 million from discontinued operations [249]. - The company received net cash proceeds of$13.7 million from asset dispositions in 2024 [254]. - In 2023, net cash proceeds from business and asset dispositions totaled $59.8 million, including$84.9 million from the sale of the former Switzerland business [255]. Strategic Transactions and Divestitures - The company completed the sale of its businesses in Switzerland, Italy, and France in 2023, using net proceeds to improve liquidity and financial flexibility [173]. - The company expects to close the sale of its Europe-North segment to Bauer Radio Limited for $625 million in 2025, with proceeds used to repay outstanding debt [175]. - The company classified its Europe-South segment as discontinued operations in 2023, with ongoing sales processes for remaining European and Latin American businesses [170]. - The company anticipates gross cash proceeds of$625.0 million from the sale of its Europe-North segment businesses, expected to close in 2025 [257]. Assets and Liabilities - Current assets increased to $1,659,044 in 2024 from$957,401 in 2023, marking a growth of 73.3% [313]. - Total liabilities rose to $8,444,046 in 2024, compared to$8,173,218 in 2023, indicating an increase of 3.3% [313]. - The company’s accumulated deficit increased to $(6,960,129) in 2024 from$(6,780,875) in 2023 [313]. - Total stockholders' deficit was $(3,639,783) in 2024, compared to$(3,450,743) in 2023, reflecting a deterioration of 5.5% [313]. Impairments and Goodwill - In 2024, an impairment charge of $18.1 million was recognized for long-lived assets in discontinued operations, primarily related to the Brazil business, which also incurred a$44.4 million loss classified as held for sale [277]. - No impairments were recognized on goodwill in 2024, with a fair value assessment based on a discounted cash flow approach and a discount rate of 10.0% for continuing operations [280][281]. - The goodwill balance of $143.9 million for the Europe-North reporting unit is included in current assets of discontinued operations as of December 31, 2024 [308]. Capital Expenditures - Capital expenditures for continuing operations in 2024 totaled$80.7 million, down from $101.5 million in 2023 and$110.2 million in 2022 [241]. - Capital expenditures for 2024 were $142,395 thousand, a decrease from$166,594 thousand in 2023 [318]. Economic and Market Conditions - The company is closely monitoring macroeconomic uncertainties, including inflation and interest rates, which have impacted operations in recent years [180]. - The company has taken steps to manage inflation impacts by increasing advertising rates for out-of-home displays, although the precise impact on margins remains uncertain [297].