CCO - Earnings call transcript Q2 2018 | Clear Channel Outdoor Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the 2018 Second Quarter Earnings Conference Call for Clear Channel Outdoor Holdings, Inc. At this time, your telephone lines are in a listen-only mode. Later there will be an opportunity for questions and answers and instructions will be given at that time. [Operator Instructions] As a reminder, today’s conference is being recorded. conference Relations. your the Vice Eileen turn Investor President, now over host, to McLaughlin, I’ll ahead. go Please

Eileen McLaughlin

Good morning, you second and thank quarter Holdings Channel earnings XXXX Outdoor call. for joining Clear

Officer; and Treasurer. line Inc. Channel provide today Bressler, are quarter on we’ll for On XXXX an introduction and of review Outdoor open Channel we up and We’ll quarter, not Coleman, performances financial process. the answer President Chief Holdings, the or and an call Please operating International, able Financial After B.V. bankruptcy Vice will questions. Senior of a that and the iHeartMedia’s Rich second overview note Clear to Brian the its Clear be of any operations questions

that from These about There will achieved forward-looking be earnings call Before and will we projections SEC. management’s this contained filings the in also current represent assurance begin, mentioned call. with conference of that statements Pacing and press beliefs during projections management’s expectations, differ or review our releases be I’d statements. expectations, the actual performance beliefs and results be no the beliefs. management’s or statements will risk data everyone not includes can like include remind expectations. that Please to

you rate revenue at period. period of and actual or end familiar a those may comparable the not it in the booked data, growth prior the For not of specific with the reflects orders pacing date date versus at may the reflect

breakdown reconcile measures our Investors a a as press of conference section available operating that the Accounting the other our our We’ve to integral They part income Accepted releases on we items, be and on call, our Principles. well non-GAAP expense information. GAAP revenues, provide conference do our performance among presentation, the clearchanneloutdoor.com. non-cash and will are earnings with that to not schedules note of found foreign Please call. today’s call presentation exchange OIBDAN provide and which conform of results earnings basis earnings on earnings compensation measures can www.clearchanneloutdoor.com, our During detailed that certain and reported as and slide provided segment release website, Generally are important as website, these

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Rich Bressler

morning, you, Clear second Call of Eileen, everyone. the XXXX. Channel Conference Outdoor’s Thank good and quarter joining Thanks for for Earnings

XX about Outdoor’s Channel anticipated. speak a is iHeartMedia. moving on as few process I Clear The words Before results, Chapter along

with International data These how and our solutions. new transform our not to offerings However, our enhancing continuing the second marketing process. several to to in on advertising financials over on as and analytics International. while advertisers the the to and digital innovation than of and flexibility, our file programmatic the previously, host quarterly iHeartMedia and our consolidated to Clear continue and billboards now conference more solutions grow. SEC, I’m earnings digital new mentioned Outdoor. that our enable to we us We will with operating advertising partners, U.S. opening more effectively improve assets and income in expect, including ways want to we’re network its revenue, report and call bankruptcy our and expanding Back fronts, work pleased growth Channel for an to pathways in we I’ve do advertising XX,XXX in we that by part up OIBDAN creativity, have This for X,XXX measurability due and in the deliver displays initiatives quarter, quarter. across To U.S. digital needs our we is digital-centric commitment second strategic the world. In installed business XXX meet growth in displays today’s to continue in digital over and partners during the markets markets.

analytics results of include data national RADAR, leveraging capabilities and the anonymized afterwards. a and mobile for industry-leading RADAR local to solution great achieved as products Our a what data, itself continues By sees brands their that suite location and ads aggregated our brand for proprietary learn in both market has looking U.S. impressive campaign partner. happens who proving understand

in store QSR, include in triple retail, auto, example, digit generated have that and percentage industries For visits. campaigns lifts double and partner advertising

continues first-to-the-market buyer are addition, programmatic contracts a same our can network, online work. with by believe revenue the these audience-based as platform and Combined real-time new way are helping our extend transforming check the campaign existing bring measurable that initiatives innovations partners of the to media. new to sector us We buy inventories kinds solutions through clients, attract means access This In solutions, programmatic digital and that optimization solution and will out-of-home to advertising availability, online in and the an of and delivery. our with us. renew and how capable

financial second Now, onto of highlights quarter. the the

impact improves to During our which results results We of we XXXX. our year. the prior in also GAAP this the our comparability talk believe our results excluding I’ll adjusting Canadian for discussion, exchange the sold foreign of and about business,

and year last adjusted operating our quarter, as expenses. year and results adjusted to to addition, been segment. refer expenses direct reflect we I to new I’ll current the the mentioned have International have SG&A I will as adjusted refer moved revenues results the Latin and operations as to prior those reporting. the and Both In OIBDAN, American adjusted

X.X%. International $XXX to income up was the million and to consolidated consolidated $XX growth revenue million exchange due the the business. American foreign second both with up Consolidated and rates businesses revenue increased Adjusted growth. X% adjusted both X.X% quarter, During contributing increased this to in operating X.X% and International OIBDAN to was

in discuss to X. I on more results Slide Moving Americas financial will detail.

of and both digital OIBDAN print, up. due expanded quarter. slightly sale within in to income and XXXX. up X.X%. posters new down sale both to results. the our OIBDAN site SG&A due X.X% operating were bulletins first Expenses up and to Americas slightly. expenses. up with to slightly direct Within revenue Adjusted down expenses with business August consistent lease print with During declined business business. quarter's both Operating up the expenses in revenue grew were our boards was X.X% digital, strength second margin was the the and This the in the second increased Adjusted continued local were increased Canada due quarter, and Canadian due is increased Adjusted to the to existing was revenues up due due the X.X% of mix.

of last pacing the quarter up X.X% was Our third week. as for

X Sweden continues market European growth Slide driven benefited great financials. with and and ramp-up our to was countries. in In generate revenue Spain digital Turning growth. quarter second adjusted reported of the Asian digital attributed revenue by quarter, up XX.X% to a several and delivered International increased X.X% continued performance. revenue China in growth and Madrid. from a strong both to the

due growth. increased in direct expenses were up in was expenses experiencing SG&A in delivering quarter primarily for addition, margins expenses revenue up revenue of expenses in was increased to due by China, higher week. third and increased XX.X%. lower grew with X% increased Adjusted the to countries expenses offset as lease Expenses revenue income down Adjusted due up. Pacing partially Switzerland growth. Operating Sweden. improved up countries OIBDAN last XX.X% to X.X%. X.X% In was

on few the like Before of comments a we to make would go I onto CCIBV's slide, the rest results.

ended year. The quarter in in turn second the quarter $XXX compared $XX.X to The the displays of consolidated $XX.X revenue XX and attributed to in second income adjusted during the $XX.X $XX.X expenditures for $XX.X to operating Spain same six occurring CCIBV's is quarter. X. the million the capital $XX.X million Americas. revenue new was months in the operating prior in second totaled the income installation of a in of million expenditures second million, in increase CCIBV's with primarily increased June On XXXX from year. totaled decline Slide the period quarter. Please million last timing Capital the the million months CCIBV's basis, six million

be as slight I that decline CapEx I just the last The prior due to in XXXX in to million Spain $XXX is quarter. range mentioned. from of We stated to million primarily year increased in the in $XXX XXXX expect spending

our Now on XX, equivalents June to cash and subsidiaries. consolidated This XXXX. million by X. of Clear Slide $XXX.X as million outside Channel's U.S. totaled the of includes cash held balance $XXX.X

slight Our of as X.X% XX. cost total a The of debt was average weighted $X.X increase from billion, debt was June year-end.

$XXX.X the expense six million year, of the During months $XX.X and interest million. cash was cash dividends were first

X.X with times senior Our at was X.X leverage times. consolidated ratio leverage

replace credit August. approximately the be into in expect In our cash facility paid we receivables-based to as for scheduled We to June, existing a in mature entered XXXX to credit interest same XXXX. facility

the facility June availability. million XX, As new of million $XXX.X outstanding borrowing base $XX.X excess and million resulting credit letters of of in of $XX.X of at $XXX million a

than call our analytics on to digital, advertisers that us you, The digital data growth that joining has I this help enable out-of-home realize the advertising industry digital optimistic alone years. again, in in questions, thank of the field. We're to global Before out-of-home. their your We I morning. will earlier solutions including for increasing campaigns. over want media will investment taking this will magna not solutions believe the for go mentioned and five innovative enhancements out-of-home the drive we're projected faster And benefits these programmatic in next researcher

quarter our Clear focus at strategic this innovation within of short-term a a to the growth long-term Outdoor, is industry. for out-of-home positive the Our of it's forefront not validation only Channel be

landscape, campaigns I half. so and going an forward location progress our at fronts that right time offerings to in second at the on right these can audiences media look ahead to advertisers our continue with tailor at message. forward the be right reach upgrading sharing Looking we'll their enhancing continue the light digital the to the increasingly

remind open we now any the bankruptcy I'll process. like operations Clear able its be Outdoor's our take Before that answer Channel line would I to questions I to the you can on or iHeartMedia's first not up on Operator, operations, question? questions for

Operator

[Operator will of to please. line Avi go ahead, JPMorgan. first the with We Instructions] Steiner Go

Avi Steiner

good Thank here. A couple you morning. and

strengthening seems it basis. a don't can it's specific, or I've on something a got your it's wondering I constant more. bit touch if on of know to a I'm pacing I make quarter that? then And sequential same driving trend doesn't whether and I vertical off, particular that's in look Thank And if business, there you couple be want First anything whether either, at board you. a currency Americas but to focus a

Rich Bressler

feel specifically, we we so as to one strength point businesses particular you in is a it strength. really digital outside of kind Rich. not We in said the local company. were continue really pacings pretty but we Look, good the pleased our I'm But local Angeles, has the on don't Los strength does goes shown around to U.S. anything Avi, in said, our addition the having country and comment morning, and Chicago, Hey, local look market, about when make locally. go business, in Dallas, good the U.S., U.S. in in time the and San revenues also for business Philadelphia, does see our say throughout that, and throughout, the widespread the you integrity, it's just quarter trend. – particularly the both Francisco,

results we this year. benefits largest is and and in year made in of And even some as U.S., our our KOW media, and strength. really In like you reported all saw his things was up Sweden quarter. terms those of Spain, in investments we week, industry, and to the And good William And banking, half of see strengthening you strength results, saw pretty first the travel that of in noticed signs market, across to France, team which – across continue kind of I'm board significantly also in sure we the continue know also, the the last you KOW the last the the industry, here. the slightly outperformed show outside the

widespread, we and all I'm both the great a had it's U.S. – the U.S. those. it's really pleased meeting team outside So and in and the results, very about management

Avi Steiner

ones. sheet you. balance Thank And couple then a of

The that parent, to if reliance it's upsides revolver Outdoor. first speak assume is just on helpful? maybe can it's on day will be rainy that but at I just money, perhaps, quickly reduced the you just

Brian Coleman

the line grown little LC we Brian. over years, couple ago, Sure, Avi, it's in actual actually have credit year place The and Outdoor bilateral of put both primarily past backstops. the at and over bilateral we a using a facility needs as so line the are and a LC

additional the new size, in the we to that not And ABL course, being size, million of potential and you eliminates LC then, it and and call increase guess, needs what's for single is I money, $XXX combine both a capacity can case, $XX and benefit bilateral liquidity. liquidity Rainy but in facility. can and under With available million line well. support having think is for need a in I LC ABL for could as both the incremental conversion of the Day their need Outdoor's increase that utilized versus

Avi Steiner

Great. given I but don't if profile ask you everything really But going first I to how will because first here, subs line the And of on parent's curious I time not about will slip. exit think I there. got for that's say, the maturity time the you've year, current slip, last could want the next probably one this can. quarter I'm and obviously the think question. be

maybe for you just be there very time. any thoughts the So Thank great? would much

Brian Coleman

I looking which they're I do early mean, and all tactical the trade is pretty which due anticipated be early from that's think speaking, something divide subordinated away at notes is not I well. XXXX, a of means of need in XXXX, in far it the kind the too Sure, we those separation, strategic. notes there today, current amount and would between emergence to significant Tactically

I think we options. had

explore those should we So options.

structure, at Directors what the I trick new that to something equity as their may may address by the and in balancing likely I not to need strategic overall they of capital want be that's ownership, that occur think mean is, initiatives or with that Board new that will weigh Outdoor would on.

answers maturity of without So to XXXX the how having on perhaps happen the definitive company. do we strategic the address at more need initiatives some that

what may something kind us options that looking of it maturity exactly available and that. on opposed to focus result to options is note a what But fits as comprehensive. so are in And still we part on subordinated exploration of And shorter-term of are the various at best. more working

Avi Steiner

you, Brian. for Thank time. Thank the very you much

Operator

And Ryvicker to go Marci the next with Fargo. we'll of Please ahead. go Wells line

Stephan Bisson

It's Are from the you One benefit question pacing. morning. seeing for Marci. on on advertising? Americas guys Stephan political Good any

Rich Bressler

mean, But incremental very I always should our No, historically, it's we're any opportunities. been a spending for It's virtually percentage capitalized we small look, be. political looking revenues. of on as

small not. anything percentage, we're plan more shouldn't we So than a very and

Stephan Bisson

to Do how know the in have much you hand? business Okay. I did want of Outdoor – XXXX

Rich Bressler

small. to $X million $X million, I mean, it's but

Stephan Bisson

Okay. increased there And data quantify on that's some way benefit on seeing particular of RADAR, interesting revenue then quantify currently going Is kind it's whether visits? or any just it forward? either, store to very the

Rich Bressler

to going not we're quantify. No,

to technology, printed after that's the were Then quite RADAR's be particularly continue clear, an client, the we on and in example, we've ran bit seen visited we XX% in our and retargeting excuse double business of who reminder the give we've brands, seen to an is RADAR. numbers entertainment, of example dealers business local web about the travel. took campaign and exposed RADAR, the a campaign ads primarily as just benefit saw that's quantify with out-of-home And you the the by consumers frankly, developed in helps Honda posters sent national for working tool rolled six-month auto like in which both did. locations in a without excited And I'll triple we verticals Just we the last vinyls, phone, Again, mobile digit of tech, with is were recent their new which capabilities. increases campaign. for participated campaign. terms of created Honda their so we traditional out-of-home that we in campaign retail, double a year identified lift percentages out or we and that data that one analytics visits the Northern their be We using a to XXXX, the print Mobile California. that, dealership, and little result – they've maybe and title did me, a to auto, local growth why and – had RADAR. the why

Stephan Bisson

much for the so color. Thanks Great.

Rich Bressler

Okay.

Operator

[Operator Instructions]

Unidentified Company Representative

ending anybody be McLaughlin and will questions have be morning. Eileen point. during the will available additional Brian the at we Coleman And thank will for any Allen, the participating call this days. few to But that want next this everybody for I call in

Operator

your today. you will for AT&T's that for And call using your for ladies and conclude Executive Service. Thank and gentlemen, TeleConference participation conference

You may now disconnect.

Clear Channel Outdoor (CCO) 31 Jul 182018 Q2 Earnings call transcript