Clear Channel Outdoor(US:CCO)2025-05-01 00:57Revenue 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]