- Earnings call transcript Q3 2022

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Clear Channel Outdoor Holdings, Inc. 2022 Third Quarter Earnings Conference Call. [Operator Instructions] I would now like to turn the conference call over to your host, Eileen McLaughlin, Vice President, Investor Relations. Please go ahead.

Eileen McLaughlin

you our thank and morning, for call. joining Good

investor quarter Scott CEO; and website call. and located review and presentation Outdoor Europe and the the of XXXX Q&A will call We Coleman, in in Holdings, the the investor our you the we'll are today third this the Channel introduction financial of Scott On Clear Inc. portion in Brian and Clear presentation for International call Justin Wells, our download an the overview performance call. results, conference After Clear our our an line questions. a section of operating of during Channel the provide Cochrane, BV. participate of review open Channel Brian will And recommend CFO. earnings CEO

I'd be beliefs call, this will that there statements company, financial begin, All strategic contained expectations, that or our risks we regarding achieved we statements not goals. statements may like release or results performance press about our filings to the everyone the uncertainties, forward-looking and its risks future and statements its including remind during SEC. assurance Before and the and involve make no earnings will review be from actual that differ in projections of with expectations. can Please management's forward-looking

please and XXXX, turn now over provide management's conference accurate call accounting our We Please this slide note will to our a Wells. of November four to that time the a longer be investor performance to with release the that measures turn provided on no today, basis may principles. and the conform to that presentation, non-GAAP only certain generally I Scott the Also, also call views replay. the and part today's GAAP of call, information as in we accepted refer earnings of results presentation. investor will During at do not the reconcile speaks on Xth, call earnings reported to as measures schedules these

Scott Wells

and today's taking everyone, you join morning, for time the to thank Good call.

broad-based We're faster the in ad launch, we as at our we're digital by believe revenue in up buy experience of year, they supported on now in quarter we and well easier and X%, Our with of making contributes of Investor many million reflect detailed the notable during Day were continued was the plan our Americas to We platform, execution platforms. teams dedication and performing foreign our September. performance our expect the Continuing strength for the our media, our solutions strong consolidated demand our progressing In turn, our more and and the in which the of to in strategic Europe. and the advertisers kind our results growth high-end we third company-wide half our guidance to during believe exchange movements resiliency third We're of from first digital the difficult future. the last period giving advertisers we of we delivered from rates. saw a data footprint delivery quarter, excluding across provided very of driven. the trends revenue in call consolidated $XXX

less of our year, quarter revenue of XX% digital during revenue a noted we revenue driver, to last of digital At represented accounted believe a multiplier. As quarter, not than it's the Investor for excluding the third the foreign growth of third rose X% our we during digital yet exchange close is Day, rates. inventory, just in movements period, total compared the consolidated XX% and

total on in XXX format third digital airports large-format U.S., digital digital billboards. we digital digital displays more for have adding shelters, quarter, in to our displays third we of a digital in digital now at footprint billboards X,XXX our Europe, And smaller total the the XX,XXX the than our quarter added more deployed than Looking we domestically. XX Combined and of displays in during displays X,XXX with live.

our strengthen bodes our a build greater operational of experience. we to data customer footprint, attract to our to These are out we're for longer-term advertisers, As analytics digital continuing and investments us expand allowing the back-end sophisticated offerings outlook. pool more which a well

the Washington an include of Concourse see, digital work working Connector foot I'd multiyear, the dollar we sponsorship of PenFed’s further like with media developing square out X,XXX and a really airports of C tunnel. team example platform, on It's dynamism to of to are Dulles our multimillion with partnership they first Union. takeover the its As the opportunities. and kind call our PenFed did Credit This at brand something for

Brian guidance on the our seeing. with in line Day fourth full-year prepared healthy, focus remarks, take will update at an we remains business track to but our to results Looking the are we are we on in September. to I quarter, moment and what presented on during provide Investor deliver our want his in a guidance

in demand in behavior. XXXX, continue rates, versus and to QX fourth last quarter, in remains to also we and XXXX. In be in Bookings compared on in our in Northern with strong U.K. improvement. fourth is digital XXXX we healthy seeing continue in as growth particularly platform and QX track a our QX the in from in strong that driven indicated and pacing very transit. the advertiser FX moderate Since the line that full-year to strong the Europe, continue as drive and exceed the tougher remains to U.S., the track our is movements pre-COVID to against to the XXXX. recovery outperform to in benefit year. material and healthy, As in levels business quarters, excluding Europe, on guidance, a Scandinavia and revenue record quarter do growth comps by we last remain expect few not are September, advertising Airports we In change digital

are parts still primarily markets, in that Europe, a haven't there rebounded. few fully of Southern However,

further out, business Looking keeping markets. eye our across close we're a on trends

well, upfront our the U.S. remain in XXXX business. far, about And our and optimistic is going so we

of the with our Finally, we the business continue our in conduct interest of resulting optimizing with portfolio shareholders a review greater focus goal of for Americas strategic alternatives best our our to the business. European on core

as will to as to able. financial let as when that, and third turn it further quarter discuss We fourth communicate details with over quarter we And me guidance. results are our Brian now well our

Brian Coleman

thank Good and Thank you, you Scott. for our morning, everyone, call. joining

provided Day, see as full-year great our on XX. believe quarter, As you our we Scott is to guidance on during slide another Investor will we we business track and mentioned, achieve had the

to on slide five. the Moving third quarter on results

results, to discussing Before this provides greater I'll performance. comparability I our results, our want excluding exchange also these everyone talk results, in discussion our about evaluating rates, a We foreign of when that GAAP movements during non-GAAP believe remind measure.

revenue direct reminder, expenses adjusted a the expenses include as from to restructuring that addition, are amounts EBITDA costs XXXX percent third for avoid the In quarter quarter X.X% I XXXX, increase. the to and noted. third operating otherwise EBITDA. SG&A refer repetition, segment and other excluded quarter a To of and adjusted are XXXX, of compared $XXX million, was Consolidated third changes unless and the or

loss range of up revenue third million. the a revenue $XXX to exchange was EBITDA X%, of rates, million. $XXX million Net quarter $XX year's the over in slight of was $XXX XXXX. to our at million, X.X% million, to $XXX Adjusted $XXX high-end improvement in was consolidated million prior movements million, foreign guidance Excluding consolidated down $XX compared the

of due by revenue notably X.X% both we revenue National to by pre-COVID offset higher increase primarily Americas partially continue Segment of a X%, million. expenses $XXX were to was primarily QX primarily QX increased a million, And increase Americas to is accounted in lease The revenue, and operating margin XX.X% EBITDA was Excluding to from was for product revenue line line and foreign of with range increase Direct our displays. more for with movements for XXXX, expected, quarter mix with site up accounting up third XX% airport negotiated X%. segment down as airports six and Americas which XX.X%, with categories, sales adjusted airports revenue up sales, million rent was revenue slide to revenue, up accounted to up abatements. all for in down X%, $XXX levels million, small XX.X%. million, even $XXX of adjusted and Revenue the EBITDA by exchange, billboards. driven up $XXX review million, of business, our SG&A significant, Digital in expense XXXX. was compared Americas which XX.X% to due $XXX guidance in X% QX of XX.X% of $XXX most up XX.X% in Please Americas turn surpass adjusted EBITDA $XXX revenue, local and across major driven results. to X.X%. million in a XXXX. with

Turning to out transit. furniture street up XX.X% was and airport by revenue, driven performance XX% in the to Billboard billboard spectaculars slide into wallscapes, primarily and to and million, slide other was This portfolio, Transit growth Port across revenue up primarily Southwest This was display bulletins, and including our posters, regions. $XX seven. revenues by Other, million. X.X% Americas displays, includes with from driven which Midwest up breaks Authority. strength and $XXX California, our

digital detail total more revenue and million was XX.X% others. to eight now other rebound up third slide and were in accounts and for Non-digital on QX. over other on and quarter continued X.X% an billboard billboard Now and was revenue slightly. revenue, Billboard other increase and bit the billboard to $XX up a of

million, increase which lease were total of was in in rate by $XXX slide the in digital compared Next, higher a the Segment $XX EBITDA and to the rebound was site to on strong primarily review the as up revenue for foreign up rent $X was our adjusted we XX.X%, movements Europe please Segment saw on governmental $XXX transit second reduction to driven quarter. X.X%. QX furniture million, year, the for number to expense FX the and offset both up at exclude our adjusted XXXX The compared commentary X.X%, the as the second million third rates. than operating The rent quarter in with as versus to XX.X% $XXX abatements, by one-time results XXXX SG&A of in was countries, and revenue been lower quarter Sweden, of was movements EBITDA XXXX, including growth the Scandinavia, period, Europe exchange in down the Europe’s Digital million. well increased up, margin. France. demand adjusted reduction million the the expenses a high-end segment also to and improvements site street to in prior slightly part increase increased partially higher X.X% have a adjusting in accounted year. turn and ahead was increase and adjusted EBITDA from in Direct decline and that in up segment subsidies most rates. of in My expense, margin by notably resulting was is in in most guidance by of was a driven revenue in range performance increase an assets. driven nine comparable revenue XXXX display the was XX.X% of in of of assets EBITDA Europe revenue. in adjusted prior lease transit due negotiated for margin

Moving on CCIBV. to

operated third is businesses the $XX quarter Our Europe period EBITDA, the consolidated does million. CCIBV the the expenses CCIBV Europe Europe million impact statements, for million to financial an in third revenue revenue in for period that segment revenue Accordingly, consists deducted of reported our CCIBV to subsidiaries. the was include CCIBV. to or of profitability increased as same for loss from and metric a from same adjusted of adjusted corporate the adjusting same segment XXXX loss our not revenue movements allocation by XXXX. $XX segment XXXX CCIBV’s After loss $XX compared the compared Europe and an of the foreign exchange decreased of segment rates, and CCIBV’s $XXX $XX XXXX, million the operating of operating are $XX.X EBITDA. of quarter Europe its million income during and operating million. CCIBV in in

on higher results other, higher Let's our move expenses by million, most to driven my breakeven related over American driven Other segment operating been improvements of Latin revenue. was expense, up EBITDA. in adjusted operations. foreign quick $X an by which adjusted to review slide prior a Europe, exchange revenue year's consists is X%, have to primarily Direct rates. the and And was exclude movements improvement and segment Similar up of commentary in XX.X% XX, site that EBITDA countries. SG&A lease were to adjusted

and review ramped $XX XX on million, in up to slide to $XX as we capital of the moving a displays compared of increase an the quarter Now third Americas. our year digital totaled expenditures. of particularly spending, CapEx the million, prior

I that the acquisitions made million Americas addition to during expenditures, asset third want In our several our to capital totaling quarter, we in segment. highlight also $XX

net payments in balance quarter $XXX net our for Now and on was and during investment. million offset the September $XXX slide cash equivalents cash million $XX and XX. and partially to interest Adjusted Year-to-date, capital cash of of equivalents the changes million. quarter, and EBITDA declined to to third cash increased cash And cash working XX, $XX as XXXX. positively million capital contributed by

was $X.X from XXXX Cash the slight term the XXXX, primarily interest on compared same due to paid debt million higher payments as to interest B for loan quarterly September to rate term the Our the an our year, increase of due principal decline was a million, $X loan on in prior facility. the third year-end, scheduled period the billion XXth, primarily $XX on of during facility. floating debt quarter,

of average rates. to was from year-end an the cost increase due LIBOR debt in weighted Our increase X.X%,

to Our reduction $XXX due down XXXX, liquidity primarily September as at XXth, the cash. was year-end million of compared in to liquidity

ratio X.X our the well As of first September times. times, below of leverage X.XX threshold XXXX, covenant lien XXth, was

XX our slide and AFFO. new metric, to Turning

As In million excluding our Day, in $XX operations, the movements we company, metric AFFO. you rates. adjusted we new FX for funds of quarter, know, may Investor a $XX generated third during from AFFO, and introduced the year-to-date million

Moving the the guidance our on to full year and fourth XXXX. slide quarter XX for and

be able confirm we our we the during on haven't our in September to material that Day Investor behavior, quarter mentioned, is to and within Scott advertiser are revenue guidance guidance range As fourth a change seen we expected Xth. provided

which highlight Our items year loss, guidance XXXX do a page, to won't only but update increased our read to rates. the all want primarily net through FX line in due on to I fiscal consolidated this I is consolidated to million. $XXX few Americas million our our QX between revenue updates to guidance. between in movements million $XXX exchange rates. XXXX, revenue be will of is foreign We million $XXX believe excluding expected be and $XXX and in movements

segment the the provided in Americas performance quarter. in be and abatements expected foreign exchange Based in at softer of XX% believe due primarily uncertainty of year-over-year to range, reported on we end EBITDA Additionally, could revenue the growth as will guidance programmatic. $XXX well rates. result Europe's be movements to rent is adjusted timing low around between foreign as Europe's certain exchange excluding to and rates, revenue monthly million a in currency headwind October fourth $XXX anticipated million,

XXXX for payment this million, the year. our in will $XXX million interest of remain $XXX remainder cash the including obligations Additionally, at

XXXX our for at as Loan obligations higher that guidance refinance and do of expected assumes Term rates floating current incur on a result or facility. $XXX rate payment interest million, are to This interest interest levels cash not additional remain However, B indebtedness. to increase we

Lastly, to on I want touch do XXXX.

XXXX Our year. we visibility the well of is limited, are concerns macro into next environment aware and regarding

closing to needed how have over his and including And me we we back let recessionary in to with periods, liquidity, pandemic, to in XXXX for preserve the proven quickly know turn and believe pivot future. expenses However, remarks. this our in our now Scott ability prior call if adjust the

Scott Wells

Thanks, Brian.

our optimistic priorities, Justin of efforts for are us our of to in digital in session. competitive for centricity confident to advertising future. CEO these Cochrane, transformation, team entire growth we're on call. and strengthen join ahead executional And turn Q&A accelerating the their driving the customer to and share And enabling We thank in the strategy our capture let the the and now improving dedication us operator strategic our position the to me healthy, remains for budgets I'd Europe, a including excellence. our greater will over call executing and us. about our business on like opportunities Our believe

Operator

Thank you. comes Fargo. Steven first [Operator the Please have Instructions] Wells lines we phone from from ahead. Cahall with question The today go

open. is line Your

Steven Cahall

you Good print it's spend, that you're really seeing about customers Could level. digital talk customers overlap the that It Americas? you. between and morning, Thank the like everybody. just to digital growing nicely in XX% near seems

digital-only is And expectation customers who you got into have that So growth, digital advertisers? digitally from XXXX? do that you're of follow-up. seeing if -- a sense CapEx any incremental market. kind out-of-home existing based then to have in you And new Or do the increase any come your are I've on

Scott Wells

thanks your thing We more of has the new Digital is that interesting. question question. thanks. think brought I to has the have above. is been definitely the -- to the Okay, answer mean, for And buyers digital Steve, the programmatic. the I all category than

I new incremental, has started buyers think partly we've where But we doing also since to more come really partly that's digital, but in. amplification. been the it had category

a So and campaigns to do. that and we is supplement calls to current really do clients digital then buy And part lot such airport will in we of can seeing digital build-outs, of that do, to things only a use what our success because central do lot print the digital to them a airport with action have of is digital that sector. taking modern you're off in and it's

it's it's any broad. say that customer hard -- but one it's the thing, pretty to So really base, it's

presidents, to is navigate something road on constrained part you been particularly part we ability lot you not tell been. would managers and interviewed the our to less there's next And that's regulations locations about than part it's regional but branch more with a great is the business, ability your That's regular discussions. and that. of As our on that finding get that go question. CapEx, your But convert if far conversions. to your let's really as have of It our paced the really digital, they do second -- emphasis of really side of at part different we not a the or to ahead

Steven Cahall

pre-COVID Yes, to travel part kind still the you a does have turns pretty it than airport The if think for if cyclical would be still is the data airport the of you. revenue. was expectation, Does about the abatements just that. of more levels, it's how you the historical wondering XXXX. your recession? do I strong. back just tends thanks then macro it's than to kind in if airport I maybe of next so Thank perform -- rest Is for in the of like seems better over, getting of portfolio? And do rest a lastly, much way expect wondering of portfolio? it little just the rent would

Scott Wells

Sure, sure.

them has seen is question, good the two as COVID in airports, behaves which the of it really our are been the I has of airports how a local that their advertisers, it's on for to do A becoming just so chunk recessions. have was executives it that, for recent COVID. a the assets you only quite And we the of more people I from That part really them, -- I'd of we've airport back the thing an want sales go referenced part much crisis think And other across And impact of one history, meaningful financial was it's selling who if the digital that really So is big come print the branches. think a prior because I than from prior do campaigns. is of in I area airports become asking the find to emphasize before came but thing from any have airports guess have go seen good are what structurally in back coming team. not questions does I because local different, by business. who how early different the differently out that and account X/XX, not I part really revenue mean And bold the different. we're we case sell spectrum. much it's digital that around big would customers attractive get central to as the that airports communities, And I disruptions them cycle our as the things. through maybe country that great are than or their to is

also a like doing to than more we're So things that where more more the are comments to PenFed, like what a I actually it's diversified akin doing sales in And referred opening we're advertising. lot with sponsorships base.

and so reactionary It's something be -- the recession. And I digital that that which that's it's to going think a be recession. could look there at would in to to are going you a well, responsive degree say, in be

job On still sticky, because abatements, the makes sales And broader side, a done customer the the base, sponsorships some. we've gives through on the And so we bit flip flavor. are hopefully, base, that. expanding good that it broader a working a proliferation more of you

like in terms I -- we done of we going ‘XX we be or year. be to still they in the that's are this a characterize magnitude with that tail that to even but and that probably have nothing -- In relating in are were of forthcoming we there'll U.S., were as things think they working COVID. anything Europe,

that Steve. helps, So hopefully,

Steven Cahall

Thanks, guys.

Operator

We you. with Ben now Thank have Morgan Stanley. Swinburne

open, Your is Ben. line now

Ben Swinburne

to easy this it among players number there to think in heard that, stickiness which that's other anything that a you. headed? their that's you of as the digital dial you leaves. adoption, Or than source of that is with that of morning, cited just us you -- mind But being do can of everyone. Is all programmatic get media. thoughts weakness broader tailwind are about do where money. your think it key around about tea maybe down? you business love channels trying Scott, Thank the your digital I quarter, on there's I it telling to Good either things your more to the to dial a was market wondering, programmatic that up, we're are growth. talked from also we've read improve things the a your you think Or where either I'd share or sort to channels maybe there it's

Scott Wells

in Ben, tea I with And a -- state. think that's exact anywhere It's stage Yes. leaves characterization. the programmatic. we don't we much the near very that right steady not still are near are

this in channel what And they've a that the which Just of in the they've is meaningful gotten dialed a I year, think programmatic something is off think DVXXX people few couple to in think, the as omnichannel is Trade have at more back way. that that is quicker. be turn that's there year, programmatic. and said, that Desk I happened much some spend, mainstream And the turn When maybe things easy and obvious involved biggest a on seen you we've it's space, advertising promotional I seen of have going this doing that I first impact digital out-of-home I mean, still to on and DSPs, an very impact. most -- on is what's what this super out-of-home unknown. their in where going look and are parties

the -- in terms side, have in On the this programmatic of out-of-home of of year expanded lot greatly screens. the flip you a number space

are available. it those extremely a you looked see of a now, you digital looked more out-of-home, would for the screens amount screens you lot if in massive places in by at this January screens And year hard COVID. at available that hit were So of and

get all of and not happens that programmatic, QX that very still, over quarter. the that screens And -- has was the the I to of hard And about this addition what, that to a exactly of and perspective thing And had out-of-home true so or just roadside with year had pulse we've now think monster from think it people of the marketplace It's synthesize it to right all thinks last COVID something different of run. out year macro a programmatic. programmatic even of the off remember particularly a to the fire. concerns that have pick come in on war year, up But have in was types whether And last finger how And that list. has QX gym-based, I'm coming has in why recession had that in you roadside kind certainly And grow again, they're shrinking or rates, lot. it. absolutely going into last had to first the it’s elevator-based innings getting much better of course to I your understanding came about year, is the other positively -- locations on mean of the inflation or or take being programmatic of, whether jury then seeing. you've kind interest that call of that's happened the our one that's seeing. not is we're bit a The it's is But not sort talk is It's out of year. what that not tailwind relative QX, different but back last kind probably, I'm having of of I was big it's a the part heading it's pacing of mall-based of shrinking, and or think it it on going why I I and but the that don't we're really sure you not, my then drivers little out-of-home half. first not first. know, out it's to normalized out, we're of proliferation early I'd sure

programmatic. that hopefully, gives going So in you some insight into what's on

Ben Swinburne

-- prepared don't if, into helpful. your then you three update quarters really year, And I Yes, remarks. mentioned with this I in of for don't capital know which Brian, on else that No, yes. you any flow now be expectations that's I we're is But the think should three we the anything working free think essentially cash months about? thinking asking full-year, or about left, sort guess just

Brian Coleman

I I do of put what exposure. show we think I to information and a have we've increases, with operationally got interest don't any mean rate guidance incremental to because out of we a some bit headwind mean, add variable rate We've kind to improvement. I Yes. continue there. have

flow of with that into And and big think business be will XXXX that where are for us. there, cash a may I free we're the year comes looking so the positivity the to point delay kind to grow headwinds out play. continue But even

Ben Swinburne

Thank you.

Scott Wells

Thanks, Ben.

Operator

have ready. now Lance Cowen. you. are Thank We of Please ahead, when go Vitanza you

Lance Vitanza

simply, industry, faster guys pace has returned Would taking quarter. back what Nice advertising. go or the get just to job thanks possible tailwind And here business you you slower you Hi, of questions. a Putting to than wanted have you for really, on do airport of airport left the think to advertising across continues trying of a aside the left? say any extent rebound? travel I'm just the the to tailwind do actual travel. I that have much to you think international at much is recession,

Scott Wells

think to heard you in our transit, Lance. say little the different been Thanks, ad get good all different back XXX% the results doesn't in of that's And where you've And that's I a transit-oriented but a to true. have No, of I'd out-of-home, it's dollars talk say question. Certainly, back. audience been true to airports. would it's types the -- have were the about operators get of

We are bit than many But It's back passengers come back. back come the at has have. ad XXXX the of faster in a little airports. levels probably our revenue

particularly this the airport people, an terms expected in a at for advertisers in travelers has on I expected business of of looking think they're savvy lot business resonated with passenger I travel, are if And trends. typically. audience airports has that think business travel that pretty the things, is one decision-makers and the trends the the of to not even airport

And that know airport a don't you Really that's particularly kind been so in kind characterize, comps so are audience, mean, just I on on for quarter if strength, at it performance. the BXB, a look of I'd in of now. bore of mechanically, overlapping full overlapping QX, full is I it our airports terms

step growth slowing our lower. a doesn't mean growth be is of to had in means that seeing going It as not relative early taking we going that percent this that it But where part you're going the airports So triple-digit a we're bit go. forward. it's things actually growth back. year, just be to And even overall rate

Lance Vitanza

And kind if Or growth Okay. the static there moderating sort little demand, that of headlines? mean just barely And to grew is there an somewhat which new of forward? Americas particular was is I the the in quarter. of the for third last just for I one in normal wondering, advertiser just Or I'm growth in static? could, me, is side, anomaly? anything quarter to then Or depress no was global macro going this is on one the there?

Scott Wells

It's one. couple is definitely I the a year, times not last What about of we've about talked to you say all this -- think I've insurance. I'd talked

way, One of year, way advertising, way, the relative -- advertiser. insurance -- players been big that well, down a this XXXX to have couple of including QX print was

We much assets. doing in has a with our type QX as for quite demand. of got that all printed of some maybe have of liked. about that. get there's backfill headwind advertiser opportunity so We good it good as that We didn't what We've feel And to we been feel like would inventory we're year.

look bit in have to you what normal in word there's I are a As but a use that dynamic small of versus more because dynamics. normal, these the medium -- lot normal I about it's times, a versus city city big not hate more city across system, the we're a little

at different versus, Coast a in good story. quite East Northeast Dynamics. where You a story look versus it's the not Coast the printed, story good it's where you very say, versus a have And California, Southwest West when it's setup, in

a trend of moment And artifact read just to anything say is a flat and so that probably of bit fact little not an it's that into. a of the I'd sort

Lance Vitanza

Very helpful. Thank you.

Scott Wells

Thanks, Lance.

Operator

We now are ready, Aaron. Bank. question of have from the next Aaron Watts when you Please go ahead, Deutsche

Aaron Watts

you working for gone, Remind your normalized in revolver also to comment those And comfort you if maybe can XXXX, ‘XX. we debt Hey, you facilities? patterns having loans And a given you a follow-up returning increased level everyone. on highlighted. what your into macro as just see X.X us concerns, on. relatedly, service restrictions for covenant. of me just Brian, to access you capital liquidity you mentioned more just Thank your roll the are

Brian Coleman

rising sharp on on interest higher continue liquidity, we eye We rates I will a expense. Look, Sure. about and talked liquidity to cash feel keep obviously interest good. think We bit little levels. a

our all that's a have And operationally, to that good, things that so keep feel is But certainly headwind something on. we'll minds things considered.

And pre-COVID back so think generally capital see -- to good back we into working our I about as we of feel think liquidity you'll levels. I to XXXX, position. a do also normalization get

actually which collect have in a that into of fluctuations. keep us, mind, working a seasonal an QX question, Piggybacking Now lot is quarter QX, strong us. for quarter we but for earlier don't weaker capital revenue a off significant is we

working shift big see you'll So a there. capital

but think, volatile I we feel generally, do a good, pretty is environment. it So

And currently to the purposes, them you of availability things. top a make liquidity so have capacity that's we undrawn. sure to covenant, we We'll that of one letter Key we financial use under revolvers. that have for only we of undrawn They're stay want spoke but is credit of. significant on kind And one our there.

that the just ratio, X.X X leverage under lien first I think, times times So currently. covenants we're

there's so room plenty of And there.

And pretty capacity our are, got our form flow got considered. under We cash we're about of And I cash. revolver. the and we liquidity so liquidity we've form all think availability the good of where feeling in ABL things in capacity

Aaron Watts

markets And talks with Brian. in get to this. But and helpful, in geographies sort know capital remain the obvious pie? really the that's any moved select can I And Europe focus to whole of, Alright, if an headwinds stage the strategic the Scott, backdrop? macro regards for anything does Thank have on that. review, don't the despite on you versus, advanced I the

Scott Wells

we're that we a Investor when shareholder comments, looking say say we businesses optimizing on deal-making you can yes, reality and anything conversation have and I'd of anything the Street I referenced can't can't prepared on early the giving I speak have the of at that And environments, but material the as right. have value. we're Day any the that sort a updates you're you focused say. lot our stands are Yes, comments, to are on committed gave this message the I mean when counterparties subset about possible. that the at we're that that one. just and in we assets motivated, is is but to And that specifics, a that we interesting tough one,

Aaron Watts

Okay, thank Appreciate the you. time.

Scott Wells

Thank you.

Operator

you're now of Thank when have Richard Choe JPMorgan. go you. Please ready. We ahead

Richard Choe

Hi, I follow wanted programmatic. up to on

the talked the back-end throughout in past. versus it Was the kind loaded quarter more loaded? in You've entire soft of back-end it about being quarters

Scott Wells

-- actually months of a be a it. certain month seasonality every will. what quarter than in heavier spiky different Certainly, So May has is at the to you that it. like, year little programmatic bellwether There a sales of can the environment sort in are point QX, June in demand months are for instance, the But quarter, on is if we where December our a actually something based with profile. seasonality we're demand the daily on understand might of

way way trends sense is sales of you it if a week it's look kind above mean, will, should where the you and business. more it where business that. get of outdoor at the this a discern and of, weekly the a be should I below kind or unlike of your business, is So can of that's It's this really week retail from be volume where like okay, rest

are visibility So some the heavier about people we pipeline. ends for XXXX, out been campaigns of get so I mean, that think to by the experience -- even I has more that's This that beat probably -- that had more detail and as the give, behind flattish I about far we a year -- But have that year, modicum to months get months quarters. we've typically this it it is having of a are that we've I of us. can we talking a that's little and it added a kind at of much sales it should. as up subdued, had ahead force XXXX adding but is overall than in do

Richard Choe

color the Thanks Great. for on that.

pricing? market, In little the versus demand maybe of billboard static smaller. Is seeing or talk maybe some X terms about the can bit your between of any what you're cities markets, top a there there Tier difference you the

Scott Wells

I it's So interesting. mean

it's X You think to Tier at according just going start cities stair the developed market you marching down of to step how It's they are. and and all big that's actually and environment. you not DMAs how think

the this environment, not interesting is thing the So unprecedented in out-of-home.

the and are drive cities are their economics Both higher some very them than York, players other they're strongly. space, mix You in them New thing. media the and the big have cities which that kind And of own at of L.A. and out-of-home of have of behaving both penetration of of least do.

As small. of a terms those And are you and go as not lot the in just and healthy get pretty and and all of to function That's And to continue smaller those strong. part bottom top supply of you they But there's and big weight the cities, those midsized entertainment having go in of demand then though, next don't underestimate the smaller the of -- the we you are perform. and markets, real portfolio, it's to a our and you wave couple end it's market markets. media function big markets. at that's are size of strongest cities of our that can't in influencers the demand, look of a -- in within value economies it a printed, social of performances, and particularly

at So balanced market. as kind national But interesting it's benefit strength in in as you the markets. from to numbers, we an probably York New much order top saw in two because don't the mega performance. level in might locations, And very a of our particularly we local that's the inventory ideally some just have national

moving. players midsized I upper one of the environment. than the about small. it's has talked The always demand And midsized kind of just smallest the now, right is better of is other think it's city, this, that -- sweet in of about just good spot kind

Richard Choe

guidance me. to last the there next At the one that that Day, for any think long-term reason X% the be to range? Is And Analyst was year wouldn't in for X%. Great.

Brian Coleman

Yes.

said, We the haven't guidance Richard, what to -- any adjustments made so beyond we

Scott Wells

giving XXXX also we're But not estimate. a

I a you there's because to us said too more really year comments. still us as going the of much to going to much by like. to upfront. the learn. in we're able picture But not time well, early February, fulsome important it's think is awful the in in we're lock an of We're give in lot to prepared our not the talking for innings for be It looks what I

Brian Coleman

didn't I fair. That's realize XXXX. it was

Scott Wells

I thought XXXX, asking right. he was

I my think apologies. you're right. Yes,

sometime talked the XXXX. about in We future. we So come out with until XXXX won't

Richard Choe

was you. from me. it That’s Thank Yes, XXXX. it

Operator

go ahead, are now you Barrington Research. Jim when We Goss have Please of ready Jim.

Jim Goss

it. Alright. upfronts. you characterize I and way if it approach Thank I the various about wonder you Actually, did aspects could you. of to talk want

In range the extent how you revenue will, the pricing. base the the exposure, timing, this if you sell the And share make of involved, values the you'd and satisfy sort to that's that? terms of of they if of

Scott Wells

Yes.

town word. analysts But That's TV loaded just for and there, Jim. the all with data where And a is don't with points big not everybody week we a We I media the like this start think there, for upfronts lack a saying So I'll upfronts. them have in call better question. at of announcements is this of new kind that remotely out all content. ton season detail This it but this events we of is from perms, -- think of through is we've our out phenomenon. I renewals. the U.S. big lots what think could is, is and is perm and go where you -- I a is on And this about there a given figure the don't in

very that, Let be me about clear too. just

feel happens be dimensioning a this a on we're customers giving six start justice, is disclosure longer I most business, the have thing. of we're much and perms, a getting we contracts-ish. And you not to paths But relevant backup that. in And lot our something multiple to don't it's like for a This it's given occupancy but rough it. up, and and harm isn't assets, is TV what So than half things month have on, most have like we marquee think of would there's the cycle, of lot on are thing more that going which that's them. for sort we've never too all things really rough a the lined U.S. that at on giving

whether the a for renewal when which be so what they well And December to think year, generally something as of currently the as forward, economy advertiser and tends summer next that look price which only to on we're feel on increase the say renewal let's traffic at working renewal, that's Xst rates, over the start we'll Xst for a -- incumbent that see the to direction. December relative positive put get is growth is we that the going move going to in in what's try a

with a them. so go process through you'll And

they sometimes for we customer. the to tab your of existing that fundamentally have asset, continuing opt kind And with up to do existing to versus reprice us customer the the backup out will then cost strive pick you'll growth. go things is advantageous advertisers But and are and underlying the which usually

array. a about six one to revenue could you something that figures that such a figures. I that on a on period it's something four mean, is -- location talking a of is perm have things you're for perm diverse So

And in, good -- of of different top it's what our renewal we we increases, will months. be watching mean, what increases. next few going what et seeing getting healthy We're I a this seeing and very when working that kind month well, are over I are healthy that's rates, And this that's really cetera. is rate it characterize the I we hard of demand, come the that's our in we negotiation into we the and forces, sales we involvement are parts upfront, it's team, is levels that of of look So on the with during XX% terms getting keep different it's happens close trends -- play But executive particularly of different and kind as it. at good XX%, tabs inventory.

James Goss

have projections because Okay. us. in helpful you very certainly That's you the all of give helps improve it confidence the

Scott Wells

then full That's our the business until have part booked. why the hold that of February good already year, of off at to kind lead because we a -- will look give we

James Goss

how another going road of down Maybe up Okay. split to question, assets. without going the far potentially too you're

there if structure might wondered be organizational that would So differ. I some

that markets, the have fewer For that of markets And each you interrelate be of much, level nature probably since them don't might that a example, all would you a debt they have be and as given if business? be international separate costs your savings? to And impact able you terms come management whatever structure does of have you the some up internationally? in with come might of that

Scott Wells

Sure.

would at talk gave to be that that say. to way the so I it structural CEO an divestitures with It's all we going makes Aaron wouldn't structure the too have teeny tiny for operate going If in leave will of meaningful to left. -- of we a in. stub. until do, to successful be a a to that definitely chunk assure we're business It's the -- much do you that. have It's not there's Probably on asset and caveats about, much have we endeavors what we premature we just a I sense about able we Should base meaningful the because thoughts that absolutely I'll way suggest have to we it able be in-region a we're So couple But just are the plan. that divestitures. you savings. have

on was of there So question. the to do would part that another would I be think there premature be but speculate structure. savings, there it's definitely And your

first I respect how may without as through even going it lost was it think in much with to part it. I to getting think answer trying was trouble, too I that I to

Brian Coleman

BV? The

Scott Wells

yes. Yes,

You want to talk to that?

Brian Coleman

Yes.

be I think going debt that do happens, long some I that things the that and any compliant don't thing by only until it structural continue, changes, the is add if there's to the other But because would we intention anticipate so as outstanding. I indenture, And is when wouldn't I either. envision limited would think whatever could significant be with differences. create reporting do likely I as

James Goss

capacity hasn't should to of of list last of this come you're to property advantage And opportunities in your feeling see. cycle yet, be up take the at in the right economy? top as now. thing, that view And Okay. you might your you do not But M&A the availability how the stage

Scott Wells

is it So this in I U.S. take that

James Goss

yes. Yes, U.S.

Scott Wells

buyers. sellers So and still there's willing willing definitely

you've think U.S. a all companies active out-of-home based I seen of have the had pretty agenda. M&A

liquidity be has eye a going it. not obviously, what markets we're and the very would platform. it went. remains come that Obviously, fit to things they be us, to all need not But great come environment eye. sure on that list But on into that words is, a time, good of ways I missing said, are, it transact. couple question things that we out to up keeping keep as doing. macro balance like to careful need we that sheet-related top assets For And we we're we play with definitely on in the to a make think an with credit different to you at the want with same of the be of it's our our a

Jim Goss

much. very thanks Alright,

Scott Wells

Jim. Thanks,

Operator

you. Thank

on We have the no further line. questions

remarks. it So hand to to for back like management team I'd final any the

Scott Wells

appreciate the We We set be appreciate much. of very get good interest. us. the We strong to XXXX a and finish about for to growth questions. feel we're business, you Great. year and Thank looking year everyone's the excited up

you Have and So are we're all we a appreciate for very Thank about headed, day. joining. everybody's where great things optimistic time.

Operator

That you. does conclude today's call. Thank

your lines. You may now disconnect

Clear Channel Outdoor (CCO) 8 Nov 222022 Q3 Earnings call transcript