CCO - Earnings call transcript Q3 2018 | Clear Channel Outdoor Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the 2018 Third Quarter Earnings Conference Call for Clear Channel Outdoor Holdings, Inc. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Eileen McLaughlin, Vice President, Investor Relations. Please go ahead.

Eileen McLaughlin

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

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

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

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

not accepted conform During today’s generally do call, we to that certain will principles. measures provide accounting performance

website, They OIBDAN, can as operating the of earnings clearchanneloutdoor.com. a compensation conference note presentation are GAAP measures releases the earnings as presentation, information. that items and our www.clearchanneloutdoor.com expense our non-cash other call. to of well integral website, We which the part our among release press our schedules have revenues, income as reported results these breakdown provide provided and basis foreign our earnings be on and Investors earnings a reconcile conference with Please and exchange on important available that are slide on non-GAAP segment and our section found call of

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Rich Bressler

Outdoor’s of Thank third and Channel morning earnings everyone. the joining Eileen you, call XXXX. Thanks quarter good for for Clear conference

on Before Clear iHeartMedia. I speak about results, Channel few words a Outdoor’s

to of We entering Chapter now stages the planned. the as process. are into look XX in the first final of We forward exiting quarter bankruptcy XXXX

Channel third as Clear not we the the I’ve Americas although and the an to to previously, for XX-Q did iHeartMedia earnings in this am OIBDAN revenue, Outdoor, of bankruptcy and businesses with income pleased report quarter morning. International increases mentioned I operating host will another quarter Back during file quarter. in we process, contributing third call our growth, conference However, both

digital-centric execution sales well we And quarter Channel and advertising more enhancing to International by William by be positioning our in at advertising Channel Our leadership Eccleshare as success Wells Clear is our Scott year-to-date foremost the out-of-home Clear under the with world. first Outdoor as Clear competitive success driven new Americas. Outdoor at great technologies, solutions Channel in of and are today’s

leader digital analytics also our delivering In are we developing displays, in that a programmatic partners. in and are results advertising new investments addition to making for data platforms

are article the advertising on Google companies notice spenders world’s most the ranked technology year. out-of-home and cites Apple, A top of of among companies. of the high-growth influential many Amazon fact, are advertising, including In Bloomberg last out-of-home value taking several recent that X

dealers a campaigns Bronze winning campaign, row was using Mobile the or in to Smartie In from proficiency team in to targeted Marketing This category. worked Association visitors mobile our Honda with posters year California XX% Award innovative analytics ads suite RADAR, products services the in create print resulted of consumers. to with Northern with targeting in lift for campaign a participating location-based second use our sent Our data in technology to acknowledged the to deals. combine industry-leading the

furniture regional Turning Madrid advertising the in now we that ability where environment. delivering exposure benefit high-profile consumers our bus our audiences to install to specific the the imperative believe expand advertising In our are today’s local to global leader markets, is we we it in digital our solutions reach our targeted international are strengthening we in continue our to from France, first partners street Spain, in innovative locations. the in Seville, of deliver to Barcelona continue the we city. to partners. Across all displays advertising bus will advertising digital-centric to for order on we meet in of advertising needs offering geographic And and routes, digital markets,

to to results and for on improves we our exchange impact comparability about for third August believe Canadian Now the GAAP adjusting also foreign year. highlights our excluding which business, the sold in the discussion, We financial last results the of our our prior will talk this quarter, the year. during results I of

the results this reporting. The adjusted to will Latin direct to these been International year beginning revenues mentioned expenses. as adjusted I we to the of SG&A OIBDAN, will operations prior have as I operating segment. I at American adjusted have results expenses to refer and refer our as addition, and moved reflect In and year, the new adjusted

adjusted revenue the to and this growth. contributing $XXX.X XX.X% businesses to consolidated quarter, and revenue Americas International XX%. Consolidated increased X.X%, was income to consolidated $XX.X operating up million, During both with the X% was up Adjusted million. third OIBDAN increased

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

up business. in the with up revenue X.X%. Expenses Adjusted in digital, driven the existing X.X%, digital airports in increased due SG&A primarily due Operating growth lease and advertising to Americas to quarter, third expenses direct lease the Adjusted increase print were revenue to up XX.X%. Within including growth. Adjusted slightly. were control. in primarily X.X%, the The both in was increase the X.X% higher expenses income to expense X.X%. and OIBDAN new revenues locally due growth. up revenue expenses. and is contributed both During increased expenses, site operating placed increased by to boards site addition was continued improvement

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

to fourth as OIBDAN large and related expenses SG&A the primarily improved contributing increase was in X.X%. Turning Europe and $XX.X growth. continues European growth UK both revenue countries due driven new in part the double-digit in higher revenue Adjusted expense up delivered Adjusted Italy. our our of of digital increased up China X to to countries to Pacing reported Sweden, was contracts expenses as million. due and is up up third UK. part margins with X.X%, the was X.X%, to financials, as Expenses due and the strong up Slide well is by lease Operating the to markets revenue expenses for last experiencing X.X% The non-cash Most to The growth. growth was direct revenue delivering growth, quarter week. expansion. XX.X% to increase and in operating quarter, XX% in large in Adjusted income in generate increased in up and X.X%. were which increase. revenue were direct including expenses SG&A settlement International pension

to we slides, on of Before to CCIBV’s the on go a results. make the few like rest I’d comments

in million $XX totaled higher of transit, street Slide turn revenue ended September digital For occurring revenue $XXX an increased with months the year-to-date expenditures of operating year. Capital in displays in The prior Please to X. International. in the adjusted third the consolidated in operating the spending to increase CCIBV’s digital compared $XX.X On and loss $X.X Americas CCIBV’s contract. quarter, XXXX in million including quarter part in related million of in is basis, third the due for boards period million, CCIBV’s the to $XX.X quarter. conversion in a the million million $XX and Spain the $XXX.X totaled XX Madrid quarter. to CapEx is furniture from same was deployment third the million The decline loss due primarily to third XXXX. an X during

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

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

$X.X months debt increase was a weighted was ended X.X% billion, The cost debt XX. Our end. average from year slight for the X of September total

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

Our with at senior X.Xx. leverage X.Xx, ratio leverage was consolidated

be for interest cash the in approximately same to expect as We XXXX. paid XXXX in

taking again strategic income OIBDAN implementing your joining morning. line is this to revenue, William a growth want us in across their In deliver the operating Before Scott top and our testament far to team’s both questions, while quarter Americas and and for both year, and so International initiatives. and businesses you results thank our I and bottom to this ability

initiatives ad only digital Internet-based create as products. these through displays that available data-rich digital advertisers increased expect, was flexibility through and data the once displays Specifically, digital solutions such buying and

partners to of look we our We evolve to opportunities and business do build become our in reach the in world. order will advertising digital-centric to continue today’s to out-of-home integral more them inventory with how for

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

Operator

will go line we ahead. Please the Avi of JPMorgan. Steiner And you. Thank to with go

Avi Steiner

here. good of and Thank morning. you questions Couple

in in and quarter get off gave? and is X.X% know in you that, it’s it, point benefit apologize. missed much First you all political a maybe the said benefiting of you political third if in prepared pacing I the but the I Did domestic how from this number I and time, remarks at the

Rich Bressler

Good very the has of and we frankly, of Hey, the very as a not benefit, political, it’s side morning. reminder, business small the on of slight significant but overall revenue. very, question. for in Historically, Thanks got percentage outdoor just quite the Avi, Rich. terms it’s been

Avi Steiner

the your a your side of U.S., Americas. would the Is any you. And think in Can have and stack the more exhibited to outpacing digital us of in digital-only maybe started the you kind give it company growth on would helpful. static peers color? looking great. at give very mentioned digital billboard and Thank I static? results That’s Some you be

Rich Bressler

in print we by the and not respect Scott a great business digital maybe boards to both digital said overall quarter, national our I opening increases And it outboards really deep, Yes. growth. bit execution I to think separately both new quite digital, with well, least business, at frankly, down sides to the contributed and take team just had then at Also, was rates going and have think been I with this quite outstanding at say occupancy. did the to but has in [indiscernible] down that mentioned and slightly. in existing his little and remarks digital, of I point and again am house. we the Wells end, to exceedingly it the both Avi, local a performed similar breakout within And the frankly level

Avi Steiner

the growth stick but hate you that seen and it And and is I have accelerating peers results same to and your to point to seems we in Americas, me on the Americas. from that

here? so of driving you acceleration assets, driving point different portfolio, the a but you industry slightly we guess slightly And I can growth there has portfolio to maybe something is your and seeing a everybody have are that’s differentiated

Rich Bressler

specific well. other Outfront, making by your it’s earnings, if one, from I to. anything announcement I the this there so the have the see to doing that investments can I and also point we point, saw morning terms announcement don’t industry know been good Lamar will in I entire is their out point is of to day the

have we frankly years investments new emerging in have last in assets. as improved our of made our have And in we over mobile about data number talked dramatically technologies. speed-to-market analytics, quite and response We the

So two, have mentioned I this repeating. one we is worth initiatives. I all of in think the those remarks, And is it

it to technology a the and there, of endorsements, people the terms is have world companies growth the driven and growth Google out Amazon. their by of some some very other companies been both there, of revenue, of advertising in satisfying Our increases which really companies, number out and Apples Apple, high see

Avi Steiner

an update coming Great. further to here, there and I shift end If us could is expense on give gears is maybe that you getting any and clarity? China can

Rich Bressler

about clear, be to just Clear about, the Media? talking you Are

Avi Steiner

Yes.

Rich Bressler

No, I level mean, detail. any an frankly, give look, quite you there of is update I can really in not and

continues on – on unfortunately, Media Media do to are sub to they The which team just continues say the business really Clear Kong under reminder also continues can well. employees owned investigation is several be bound non-wholly are that investigation But I but of Clear since am The the public making with as beyond the progress authorities with Stock by Media separate agreement the level for work you just to have ongoing. of we Hong an are have listed Exchange, I and were set to remind company. to by that, We misappropriation a that Chinese bound Clear we to what and Limited, indirect is of funds. a the company

Avi Steiner

know, it the about thoughts talked stack quarter X/X%, you think ‘XX. and first I enough. on maturity go X will the but Brian, don’t your as current Fair quarter maybe call if we well, I on had this of on and the are in last And I end

So see just any the cap there sort because and done updated is wait you that’s there the dealing of parallel, Outdoor? until thoughts there before could and process in proceed you in some it going maybe bankruptcy is be have of of stack with that

Brian Coleman

I was that hey, am my actually. Yes, here gong and Avi, still

are ultimately, that do will roll in of think the that that screen. potential billion notes having on answered But talked well. but question, separation XXXX $X.X have is to to we is They process. to while due looking I QX integrally emergence go it radar ‘XX. are that I the iHeart are the that fair senior words we the and about last to it’s and are say discussions with Outdoor they almost notes of tied the in And I that You we separation Outdoor are that market discussions mean, of options subordinated current our ahead as say respect considering. at those refinancing linked those and quarter

up of think – the of wrapped I financing, refinancing in continue It’s consideration I to fair in to and it’s the consider will alternatives all it’s we of timeline. context discussions the to those part that. we kind consider say say will overall in that won’t certainly greater

Avi Steiner

Appreciate all time the Thank I turn you. today. answer will and the it over.

Rich Bressler

Avi. Great. Thanks,

Operator

line Bisson Research. of And ahead. with will go Instructions] we go [Operator to you. Thank the Wolfe Stephan Please

Stephan Bisson

on Clear CCO that Channel or morning. Good I has to timeline you independent from be? might know bankruptcy an We what have do appraisal, the that by had the question that a option a any it trademark. the purchase but on quick either early documents will be determined estimate

Rich Bressler

Rich. in that. at it’s evaluating process this are still Stephan, we No. of point, the No,

Stephan Bisson

that do just processes Okay. a you like but other And not Channel, Clear situation? were then within type similar, very past have seems it of unique clearly any

Rich Bressler

that probably aware past a exactly processes are to not am agree we any that No. honestly, I the it’s process no, that but are I not through. mean, – I unique going you of with will situation, like

Stephan Bisson

Thanks so Alright, much. great.

Rich Bressler

much. very Thanks

Operator

Instructions] [Operator

Eileen McLaughlin

are we thank Brian are for would as earnings to questions, I everyone questions. no all to take are call, we call other And our welcome attending this Operator certainly if and morning. your on available like there every

Operator

Thank you. you And using Teleconference. for Executive your that conclude and gentlemen, your today. does for for ladies participation AT&T conference and Thank

may disconnect. You now

Clear Channel Outdoor (CCO) 13 Nov 182018 Q3 Earnings call transcript