Clear Channel Outdoor(CCO) - 2023 Q4 - Annual Results

Revenue Performance - Consolidated revenue for Q4 2023 was $632.1 million, a 12.4$111.2 million, driven by strong national sales which comprised 58.9% of Airports revenue[6]. - Europe-North segment revenue rose by 17.8% to $191.8 million, with a 13.4$2.2 billion and $2.26 billion, reflecting a 3$198.1 million in Q4 2023 from $169.3 million in Q4 2022, with a 12.6$190.0 million, a 9.2% increase year-over-year, with Airports segment Adjusted EBITDA up 42.7%[11]. - Total Segment Adjusted EBITDA for the three months ended December 31, 2023, was $226,520, representing an 8.9$208,096 in the prior year[38]. - Adjusted EBITDA for the year ended December 31, 2023, was $535,216, a decrease of 1.8$544,861 in 2022[38]. - Operating income for Q4 2023 was $124.3 million, up from$102.2 million in Q4 2022[28]. - Income from continuing operations for Q4 2023 was $25.4 million, a decrease of 76.2$106.5 million in Q4 2022[20]. Digital Revenue and Infrastructure - Digital revenue in the America segment increased by 57.9% to $73.1 million, indicating strong demand and deployment of additional digital displays[16]. - Digital revenue rose by 2.4$114.0 million in Q4 2023 from 111.3 million in Q4 2022, driven by increased demand and investment in digital infrastructure[33]. - Total number of digital displays increased by 55 in Q4 2023, bringing the total to 325,924 displays[24]. - The company has expanded its digital billboard and display offerings, enhancing its advertising platform capabilities[82]. Expenses and Cost Management - Direct operating and SG&A expenses for the Airports segment increased by 44.8%, primarily due to higher revenue and site lease expenses[8]. - Direct operating and SG&A expenses for Q4 2023 were 407.8 million, a 15.0% increase from $354.5 million in Q4 2022[35]. - Corporate expenses for the three months ended December 31, 2023, were$42,897, an increase of 11.3% from $38,529 in the same period of 2022[36]. - Restructuring and other costs for the year ended December 31, 2023, amounted to$21.3 million, compared to $10.0 million in 2022[36]. - Restructuring and other costs for the year ended December 31, 2023, amounted to$21,337,000, compared to $9,963,000 in 2022, indicating an increase of over 114$5,631,903, compared to $5,561,901 as of December 31, 2022[51]. - Net debt increased to$5,380,251 as of December 31, 2023, from $5,279,669 in the previous year[51]. - Cash on the balance sheet as of December 31, 2023, was$251.7 million, including $84.3 million held outside the U.S.[27]. - The Company experienced a net cash decrease of$38,141,000 for the year ended December 31, 2023, highlighting cash flow challenges[66]. - The company had cash and cash equivalents of $251.652 million as of December 31, 2023, down from$282.232 million as of December 31, 2022[83]. Future Outlook - The out-of-home industry is forecasted to deliver healthy growth in 2024, with optimism regarding the improving climate in major markets[1]. - The company anticipates reduced revenue in Singapore in 2024 due to the loss of a contract that terminated on December 31, 2023[25]. - The Company expects a loss from continuing operations guidance for the full year of 2024 to be between $131 million and$101 million[84]. - The Company anticipates cash interest payment obligations of approximately $448 million in 2024, reflecting an increase due to the timing of interest payments on newly issued notes[66]. Corporate Actions and Engagement - The company is in the process of selling its Europe-North segment and Latin American businesses to optimize its cost structure and focus on higher-margin U.S. markets[14]. - The Company will host a conference call on February 26, 2024, to discuss these results, indicating ongoing engagement with investors[62]. - The company paid$10.0 million of the outstanding principal on the Term Loan Facility during the six months ended June 30, 2023[70]. - On August 22, 2023, the company issued $750.0 million aggregate principal amount of 9.000$665.0 million of the net proceeds to prepay outstanding principal on the Term Loan Facility[70].