“Our strong third-quarter revenue results, excluding the impact of exchange rate fluctuations, reflect the resilience of our platform and the continued execution of our strategic plan, which we detailed during our Investor Day in September,” the CEO said. was at the high end of our consolidated revenue guidance and was supported by strong demand from advertisers with significant opportunities for our digital footprint in the Americas and Europe,” said a Clear Channel Outdoor Holdings, Inc. official. Scott Wells.
“Our team is focused on driving our digital transformation and our efforts to innovate and modernize the way we do business and integrate our solutions with our partners and customers. We work hard to provide them with what they expect from digital media. we get what we believe will help us grow now and in the future.
“Looking to the future, our business remains strong as advertisers continue to leverage the outdoor marketplace, the latest mainstream visual medium, to reach consumers on the move. We closely monitor business trends and moderately reduce our costs when necessary. strives to maintain adequate liquidity on the balance sheet.
“Finally, we will continue to consider strategic options for our European business with a view to optimizing our portfolio for the benefit of our shareholders, leading to increased focus on our core business in the Americas.”
Financial results for the third quarter of 2022 compared to the same period in 2021, including financial results excluding changes in exchange rates (“FX”)1:
1 For an explanation of these financial ratios, see Additional Information on Segment-adjusted EBITDA and Non-GAAP Financial Information.
We are in line with our guidance for the full year 2022 previously provided in our press release dated September 8, 2022 in our current Securities and Exchange Commission (“SEC”) Form 8-K report, except for the consolidated net loss . which we have updated in the table below. Our revised outlook for 2022 is as follows:
2 See “Additional Information on Segment Adjusted EBITDA and Non-GAAP Financial Information” for an explanation of these financial ratios.
Expected results and estimates may be affected by factors beyond the Company’s control and actual results may differ materially from these guidelines. Please read the “Cautionary Statement Regarding Forward-Looking Statements” here.
1 See “Additional Information on Segment Adjusted EBITDA and Non-GAAP Financial Information” for an explanation of this financial measure.
“Direct operating and selling and administrative expenses” included in this report are the sum of direct operating expenses (excluding depreciation and amortization) and selling, general and administrative expenses (excluding depreciation and amortization).
Consolidated direct operating & SG&A expenses during the three months ended September 30, 2022 and 2021 include restructuring and other costs of $1.5 million and $17.2 million, respectively, including severance and related costs associated with our restructuring plan to reduce headcount in our Europe segment of $0.8 million and $16.3 million, respectively. Consolidated direct operating & SG&A expenses during the three months ended September 30, 2022 and 2021 include restructuring and other costs of $1.5 million and $17.2 million, respectively, including severance and related costs associated with our restructuring plan to reduce headcount in our Europe segment of $0.8 million and $16.3 million, respectively. Consolidated direct operating and selling and administrative expenses for the three months ended September 30, 2022 and 2021 include restructuring and other expenses of $1.5 million and $17.2 million, respectively, including severance pay and related costs associated with our restructuring plan to reduce headcount in our European segment of $0.8. million and $16.3 million, respectively. Consolidated direct operating and selling and administrative expenses, including restructuring costs and other expenses, for the three months ended September 30, 2022 and 2021 were $1.5 million and $17.2 million, respectively, including severance pay, related to our restructuring plan. Fees and related expenses related to staff cuts in the European division of $0.8 million and $16.3 million. Consolidated direct operating & SG&A expenses during the nine months ended September 30, 2022 and 2021 include restructuring and other costs of $3.2 million and $36.0 million, respectively, including severance and related costs associated with our restructuring plan to reduce headcount in our Europe segment of $1.2 million and $33.5 million, respectively. Consolidated direct operating & SG&A expenses during the nine months ended September 30, 2022 and 2021 include restructuring and other costs of $3.2 million and $36.0 million, respectively, including severance and related costs associated with our restructuring plan to reduce headcount in our Europe segment of $1.2 million and $33.5 million, respectively. Consolidated direct operating and selling and administrative expenses for the nine months ended September 30, 2022 and 2021 include restructuring and other expenses of $3.2 million and $36.0 million, respectively, including severance pay and related expenses related to our restructuring plan to reduce headcount in our European segment in the amount of $1.2. million and $33.5 million, respectively. For the nine months ended September 30, 2022 and September 2021, consolidated direct operating and selling and administrative expenses, including restructuring and other expenses, amounted to $3.2 million and $36 million, respectively, including severance pay related to our restructuring plan and costs related to staff reductions in the European segment. for $1.2 million and $33.5 million.
For a description of this financial measure, see the “Additional Information on Segment Adjusted EBITDA and Non-GAAP Financial Information” section here.
Direct operating and selling and administrative expenses in the third quarter of 2022 compared to the same period in 2021:
Corporate expenses include restructuring and other costs (write-offs) of $8 million and $1.5 million for the three months ended September 30, 2022 and September 2021, respectively, and for the three months ended September 30, 2022 and 2021, $9.7 million and $8.6 million. nine months respectively. Restructuring and other expenses include severance pay and related expenses (write-offs) related to our restructuring plan to reduce headcount in our European business for the nine months ended September 30, 2022 and September 30, 2021, respectively ($5,000). USD and USD 1.1 million).
For a description of this financial measure, see the “Additional Information on Segment Adjusted EBITDA and Non-GAAP Financial Information” section here.
These financial ratios are explained in the “Additional Information on Segment Adjusted EBITDA and Non-GAAP Financial Information” section here.
These financial ratios are explained in the “Additional Information on Segment Adjusted EBITDA and Non-GAAP Financial Information” section here. The Company is not a real estate investment trust (“REIT”). However, the company competes directly with REITs that use a non-GAAP AFFO measure and therefore believes that adopting this measure will help investors evaluate the company’s performance on the same terms as those used by the company’s direct competitors.
Our European segment consists of entities operated by Clear Channel International BV (“CCIBV”) and its consolidated subsidiaries. Therefore, our European segment’s revenue is the same as CCIBV’s. European Segment Adjusted EBITDA is the segment profitability reported in our financial statements, excluding the distribution of CCIBV corporate expenses deducted from CCIBV operating income (loss) and Adjusted EBITDA.
As noted above, revenue in Europe and CCIBV decreased by $23.4 million to $239.2 million in the third quarter of 2022 compared to the same period in 2021. European and CCIBV revenue increased by $16.1 million after adjusting for the effects of currency fluctuations of $39.5 million.
CCIBV reported an operating loss of $14.2 million in the third quarter of 2022, compared to $25.6 million in the same period in 2021.
For a discussion of revenue, direct operating and general and administrative expenses affecting CCIBV’s Adjusted EBITDA, see the discussion of our European segment’s Adjusted EBITDA in this income statement.
As of September 30, 2022, we had $327.4 million in cash on our balance sheet, including $114.5 million in cash held outside the United States.
During the nine months ended September 30, 2022, we made a total of US$15 million in principal payments on our term credit facilities and expect to make an additional US$5 million in principal payments during the remainder of the year. Our next significant debt maturity is in 2025, when the CCIBV 6.625% Senior Covered Notes will have a combined principal of $375 million. However, subject to the terms of our debt agreement, we may decide to buy back or pay off a portion of our outstanding debt before maturity.
Assuming current interest rates remain unchanged and we no longer finance or take on additional debt, we expect to have a cash interest obligation of approximately $123.5 million for the remainder of 2022 and for cash interest payments of approximately $404 million in 2023.
See Table 3 in this income statement for more details on the balance outstanding.
As of September 30, 2022, we had US$43.2 million in outstanding letters of credit and US$131.8 million in outstanding letters of credit under a revolving facility, as well as US$41.5 million in outstanding letters of credit and receivables in the amount of USD 83.5 million based on excess availability under the credit facility.
Other debt includes finance leases and government-guaranteed loans of €30 million, or $29.4 million at current exchange rates.
The current portion of the total debt was $21.0 million and $21.2 million as at 30 September 2022 and 31 December 2021, respectively.
The company has two reportable segments that it believes best reflect how the company is currently managed: the Americas and Europe. The company’s remaining operating segment, Latin America, does not meet the quantification threshold for reportable segments and is therefore disclosed as ‘Other’.
Segment Adjusted EBITDA is a measure of profitability reported to the chief operating decision maker for the purpose of making resource allocation decisions and evaluating the performance of each reportable segment. Segment Adjusted EBITDA is a GAAP financial measure that is calculated as Revenue less Direct operating expenses and SG&A expenses, excluding restructuring and other costs. Segment Adjusted EBITDA is a GAAP financial measure that is calculated as Revenue less Direct operating expenses and SG&A expenses, excluding restructuring and other costs. Segment Adjusted EBITDA is a GAAP financial measure calculated as revenue less direct operating expenses and selling and administrative expenses, excluding restructuring and other costs.SG&A Segment Adjusted EBITDA is a GAAP financial measure calculated as revenue less direct operating expenses and selling and administrative expenses, excluding restructuring and other costs. Restructuring and other costs include costs associated with cost-saving initiatives such as severance pay, consulting and termination costs, and other special costs.
This financial statement contains information that is not in accordance with US Generally Accepted Accounting Principles (“GAAP”), including adjusted EBITDA, adjusted corporate expenses, cash from operations (“FFO”) and adjusted cash from operations (“AFFO”) . The Company provides this information because it believes that these non-GAAP measures help investors better understand the company’s operating performance relative to other outdoor advertisers, and these measures are widely used in practice by such companies. See below for a reconciliation of non-GAAP financial measures with their most comparable GAAP financial measures.
The Company uses Adjusted EBITDA as one of the main indicators of planning and forecasting future periods, as well as measuring the effectiveness of remuneration of company executives and other members of the company’s management. The Company believes that Adjusted EBITDA is useful to investors because it allows investors to view performance in a manner similar to that used by company management and helps improve investors’ ability to understand a company’s operating results by making it easier to compare a company’s results with a company’s performance. companies with different capital structures or tax rates. In addition, the Company believes that Adjusted EBITDA is one of the main external measures used by the Company’s investors, analysts and peers to evaluate and compare the Company’s operating performance with other companies in the same industry.
The Company is not a real estate investment trust (“REIT”). However, the company competes directly with REITs that use non-GAAP FFO and AFFO measures and therefore believes that the adoption of such measures will help investors evaluate the company’s operations using the same terms used by the company’s direct competitors. The Company calculates FFO in accordance with the definition adopted by Nareit. Nareit does not restrict non-REITs from presenting non-GAAP measures traditionally presented by REITs. In addition, the Company believes that FFO and AFFO have become the main external measures used by the Company’s investors, analysts and industry competitors to evaluate and compare the Company’s operating performance with other companies in the same industry. Companies do not use, and you should not use, FFO and AFFO as indicators of a company’s ability to meet its cash needs, pay dividends or make other distributions. Because the Company is not a REIT, the Company is not required to pay dividends or make distributions to shareholders and does not intend to pay dividends in the foreseeable future. In addition, the presentation of these figures should not be taken as an indication that the company is currently capable of transitioning to REIT.
A significant part of the company’s advertising business is conducted in foreign markets, primarily in Europe, and the company’s management analyzes the results of its foreign activities on a constant dollar basis. The Company presents the GAAP measures of revenue, direct operating and SG&A expenses, corporate expenses and Segment Adjusted EBITDA, as well as the non-GAAP financial measures of Adjusted EBITDA, Adjusted Corporate expenses, FFO and AFFO, excluding movements in foreign exchange rates because Company management believes that viewing certain financial results without the impact of fluctuations in foreign currency rates facilitates period-to-period comparisons of business performance and provides useful information to investors. The Company presents the GAAP measures of revenue, direct operating and SG&A expenses, corporate expenses and Segment Adjusted EBITDA, as well as the non-GAAP financial measures of Adjusted EBITDA, Adjusted Corporate expenses, FFO and AFFO, excluding movements in foreign exchange rates because Company management believes that viewing certain financial results without the impact of fluctuations in foreign currency rates facilitates period-to-period comparisons of business performance and provides useful information to investors. The Company presents measures of revenue, direct operating and general and administrative expenses, corporate expenses and GAAP adjusted EBITDA, as well as non-GAAP financial measures such as adjusted EBITDA, adjusted corporate expenses, FFO and AFFO, excluding fluctuations in foreign exchange rates, because The company’s management believes that viewing certain financial results without the impact of fluctuations in foreign exchange rates makes it easier to compare business performance over time and provides investors with useful information. The Company presents figures for revenue, direct operating and general and administrative expenses, corporate expenses and GAAP Adjusted EBITDA, and non-GAAP adjusted EBITDA, adjusted corporate expenses, FFO and AFFO, excluding foreign exchange differences, as management believes that Viewing certain financial results, independent of fluctuations in foreign exchange rates, makes it easier to compare business performance over time and provides investors with useful information. These figures do not take into account the impact of foreign exchange rates and are calculated by converting current period local currency amounts into US dollars using the average foreign exchange rate for the comparable prior period.
Because these non-GAAP financial measures are not calculated in accordance with GAAP, they should not be isolated or replaced by the most comparable GAAP financial measures as measures of operations or, in the case of adjusted EBITDA, FFO and AFFO, of the company. ability to meet their financial needs. In addition, these measures may not be comparable to similar measures offered by other companies. See “Consolidated Net Loss” and “Adjusted EBITDA”, “Corporate Expenses” and “Adjusted Corporate Expenses” and “Reconciliation of Consolidated Net Loss vs. FFO and AFFO” in the table below. This data should be read in conjunction with the company’s most recent annual reports on Forms 10-K, 10-Q, and 8-K, which can be found on the Investor Relations page of the company’s website at Investor.clearchannel.com.
The company will host a conference call to discuss these results on November 8, 2022 at 8:30 am ET. Conference call numbers: 1-833-927-1758 (for US subscribers) and 1-929-526-1599 (for international subscribers), both with access code 913379. Live audio of the conference call will be available in the Events and Presentations section » on the company’s website for investors (investor.clearchannel.com). A 30-day webcast recording will be available in the Events and Presentations section of the company’s investor website approximately two hours after the live conference call.
Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) is at the forefront of innovation in the outdoor advertising industry. Our dynamic advertising platform expands the advertiser base using our media, expanding digital billboards and displays, and implementing data analytics and software capabilities to deliver measurable campaigns that are easier to buy. Leveraging the scale, reach and flexibility of our diverse portfolio, we connect advertisers with millions of consumers every month through over 500,000 print and digital impressions in 24 countries.
Certain statements in this financial report are “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 risks that could cause the actual results, results or achievements of Clear Channel Outdoor Holdings, Inc. and its subsidiaries (the “Company”), and such forward-looking statements expressly or implied material differences in any future results, performance, achievements, direction, goals and/or objectives. “Guidance”, “believe”, “anticipate”, “assume”, “estimate”, “forecast”, “target”, “target” and similar words and expressions are intended to refer to such forward-looking statements. In addition, any statements relating to expectations or other characteristics of future events or conditions, such as statements about our recommendations, outlook, long-term forecasts, goals or performance, our business plans and strategies, our process of analyzing certain markets, strategies, and our expectations in liquidity are forward-looking statements. These statements are not guarantees of future results and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and difficult to predict.
Various risks that could cause future results to differ from those expressed in the forward-looking statements contained in this financial report include, but are not limited to: risks associated with weak or uncertain global economic conditions and their impact on spending levels advertising, economic inflation. Increased levels and interest rates; volatility of operating expenses; lack of supply chain; our ability to achieve expected financial results and growth targets; geopolitical events such as the war in Ukraine and its global implications; the impact of the COVID-19 pandemic on our operations and the continued impact of general economic conditions, our ability to service debt and finance our operating and capital expenditures, the impact of our significant debt, including the impact of our leverage on our financial condition and earnings, industry conditions, including competition; our ability to enter into and renew key contracts with municipalities, transport authorities and private landlords; technological change and innovation; demographic and other demographic changes; changes in working conditions and management; regulations and consumption related to privacy and data protection; violations of our information security. systems and measures; legal or regulatory requirements; restrictions on outdoor advertising of certain products; the impact of the current strategic review of our operations and assets in Europe, including the possible sale of all or part of our assets; our execution of the restructuring plan impact on future disposals, acquisitions and other strategic transactions, intellectual property infringement claims, misappropriation or other infringement claims by third parties against us or our suppliers, the risk that iHeartMedia’s indemnification will not be sufficient to fully insure us, the risks of doing business abroad; fluctuations in exchange rates and exchange rates; fluctuations in the price of our shares; the influence of analysts or credit rating downgrades; our ability to continue to comply with applicable New York Stock Exchange listing standards; payment of dividends to us by our subsidiaries. or our ability to allocate funds to enable us to service our debts; restrictions contained in our debt management agreements that limit our flexibility in managing our business; phasing out LIBOR; our dependence on our management team and other key people; investors. , creditors, customers, ongoing attention and changing expectations from government regulators and other stakeholders, and certain other factors outlined in our other filings with the Securities and Exchange Commission. We are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date shown or, if no date is given, the date of this income statement. Other main risks are described in section “Point 1A. Risk Factors” in the Company’s filings with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the year ended December 31, 2021. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Post time: Nov-10-2022
