Clear Channel Outdoor(CCO) - 2024 Q2 - Quarterly Report

PART I—FINANCIAL INFORMATION Item 1. Financial Statements Presents CCOH's unaudited condensed consolidated financial statements for Q2 2024 and H1 2024, covering balance sheets, statements of loss, comprehensive loss, changes in stockholders' deficit, and cash flows Consolidated Balance Sheets | (In thousands) | June 30, 2024 (Unaudited) | December 31, 2023 | |:---------------|:--------------------------|:------------------| | Total Current Assets | $853,674 | $957,401 | | Total Assets | $4,544,363 | $4,722,475 | | Total Current Liabilities | $832,970 | $883,728 | | Total Liabilities | $8,134,940 | $8,173,218 | | Total Stockholders' Deficit | $(3,590,577) | $(3,450,743) | - Total Assets decreased by $178.1 million from December 31, 2023, to June 30, 2024, primarily due to decreases in cash and cash equivalents, accounts receivable, and property, plant and equipment[6] - Total Stockholders' Deficit increased by $139.8 million, indicating a further deterioration in equity position[6] Consolidated Statements of Loss | (In thousands, except per share data) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:--------------------------------------|:---------------------------------|:---------------------------------|:-------------------------------|:-------------------------------| | Revenue | $558,541 | $530,820 | $1,040,293 | $968,240 | | Operating income | $56,737 | $52,439 | $89,129 | $43,053 | | Consolidated net loss | $(38,634) | $(36,579) | $(127,717) | $(72,001) | | Net loss attributable to the Company | $(39,170) | $(37,297) | $(128,837) | $(72,209) | - Revenue increased by 5.2% for the three months and 7.4% for the six months ended June 30, 2024, compared to the prior year periods[8] - Operating income increased significantly for both periods, with a 89.1% increase for the six months ended June 30, 2024, primarily due to lower corporate expenses and depreciation/amortization, despite impairment charges[8] Consolidated Statements of Comprehensive Loss | (In thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---------------|:---------------------------------|:---------------------------------|:-------------------------------|:-------------------------------| | Net loss attributable to the Company | $(39,170) | $(37,297) | $(128,837) | $(72,209) | | Other comprehensive loss | $(4,615) | $(37,183) | $(16,411) | $(73,725) | | Comprehensive loss attributable to the Company | $(43,785) | $(74,480) | $(145,243) | $(145,936) | - Other comprehensive loss significantly decreased for both the three and six months ended June 30, 2024, compared to 2023, primarily due to the absence of reclassification adjustments for realized gains from cumulative translation adjustments related to sold businesses, which were substantial in 2023[10] Consolidated Statements of Changes in Stockholders' Deficit | (In thousands, except share data) | Balances at December 31, 2023 | Balances at June 30, 2024 | |:----------------------------------|:------------------------------|:--------------------------| | Common Shares Issued | 494,061,048 | 502,696,833 | | Total Stockholders' Deficit | $(3,450,743) | $(3,590,577) | | Accumulated Deficit | $(6,780,875) | $(6,909,712) | | Accumulated Other Comprehensive Loss | $(227,344) | $(243,750) | - The total stockholders' deficit increased from $(3,450,743) thousand at December 31, 2023, to $(3,590,577) thousand at June 30, 2024, primarily driven by the net loss attributable to the Company and foreign currency translation adjustments[12][13] - Common shares issued increased by 8,635,785 shares during the six months ended June 30, 2024, mainly due to the release of stock-based awards and exercise of stock options[12] Consolidated Statements of Cash Flows | (In thousands) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---------------|:-------------------------------|:-------------------------------| | Net cash used for operating activities | $(3,972) | $(54,386) | | Net cash (used for) provided by investing activities | $(50,828) | $13,360 | | Net cash used for financing activities | $(5,711) | $(18,968) | | Net decrease in cash, cash equivalents and restricted cash | $(62,604) | $(54,954) | | Cash, cash equivalents and restricted cash at end of period | $197,937 | $243,728 | - Net cash used for operating activities significantly decreased from $(54.4) million in 2023 to $(4.0) million in 2024, indicating improved operational cash flow[16] - Investing activities shifted from a net cash provider of $13.4 million in 2023 to a net cash user of $(50.8) million in 2024, primarily due to lower net proceeds from disposition of businesses and higher capital expenditures[16] Condensed Notes to Consolidated Financial Statements Note 1. Basis of Presentation The financial statements are prepared in accordance with U.S. GAAP for interim periods, consolidating CCOH and its subsidiaries, with results potentially impacted by seasonality - The consolidated financial statements include Clear Channel Outdoor Holdings, Inc. and its subsidiaries, with intercompany transactions eliminated[18] - Interim financial statements are prepared under U.S. GAAP, and results may not be indicative of the full year due to seasonality[19] - The Europe-South segment is reported as discontinued operations, with assets and liabilities presented separately on the balance sheets and results as a separate component of consolidated net loss[21] Note 2. Dispositions and Discontinued Operations The Company completed sales of its Switzerland, Italy, and France businesses in 2023, recognizing significant gains, and expects to sell its Spain business in 2024, reclassifying these as discontinued operations - In 2023, the Company sold its Switzerland business for $84.9 million cash, recognizing a $96.4 million gain, and its Italy business for $4.3 million cash, recognizing an $11.2 million gain[22] - The Company expects to sell its Spain business in 2024, which, along with the former Switzerland, Italy, and France businesses, constitutes the Europe-South segment, reclassified as discontinued operations[23] | (In thousands) | June 30, 2024 | December 31, 2023 | |:---------------|:--------------|:------------------| | Current assets of discontinued operations | $139,657 | $131,313 | | Current liabilities of discontinued operations | $62,944 | $68,778 | | (In thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---------------|:---------------------------------|:---------------------------------|:-------------------------------|:-------------------------------| | Revenue from discontinued operations | $31,975 | $106,419 | $54,456 | $214,434 | | Income from discontinued operations, net of income taxes | $9,679 | $2,227 | $9