CCO - Earnings call 4 2023 | Clear Channel Outdoor Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Clear Channel Outdoor Holdings, Inc. 2023 Fourth Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It's now my pleasure to turn the call over to Eileen McLaughlin, Vice President, Investor Relations. ahead. go Please

Eileen McLaughlin

thank and joining call. our Good you morning, for

performance call. Scott CEO; will section presentation website Inc. this and On quarter an the you Coleman, and financial our the are today operating fourth BV. XXXX review They and during call Clear Brian Channel Outdoor We the Wells, our investor earnings of the presentation the in Clear in International our of Channel overview recommend Holdings, provide download CFO. located

After a questions we'll Justin David Channel the and and Clear an the Cochrane, open during Scott Europe; join of and Brian Clear of results, call. introduction Channel the our of review will portion Outdoor of line and and for CFO U.K. Americas, Sailer, CEO Q&A

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

our generally with call, presentation. we measures earnings principles. accounting accepted We as to results that measures these part provide GAAP conform non-GAAP basis today's During that the not will also certain on refer do of schedules reconcile a to reported

longer as XXXX, views on a that the speaks note to call and be of management's time at February please information of today, provided XX, replay. accurate this Also, the may no only

Slide presentation. call will in X turn Scott. And Please the I earnings to turn over to now the

Scott Wells

time us the compared a exchange the and million prior morning, movements join exceeding everyone, our We for increase quarter, revenue consolidated guidance. as $XXX to fourth fourth XX.X% thank foreign rates, to today. reflecting for generated of quarter taking the excluding and you Good in year

and a with to improving reflect results Europe-North segment in Airports growth. trends in returning business Our the strong Americas performance from America

Americas Recapping U.S., the of encouraging the waited economy. the was for direction in clients delayed a past of very as year decision-making upfront segment, of clarity many in signs after theme our they our for on the the

We saw year. San select in select in as our Bay made categories, as and difficulty in staffing fully also teams, led entertainment, with media by softness auto. markets, and the particularly local well technology factors, sales challenging a Francisco combined in for These area,

latter We're business improvement and news that, the some with part the year, into current The after improve of seeing started up good the in California. in demand Day is to picking quarter. demand continuing Labor

the We markets. in onboarding we've been local have shown hiring verticals strong our growth we've in salespeople targeting. and progress made in And

While there the and continuing see level is becoming in advertisers are verticals making still key improving more market, in of comfortable and in the we're to uncertainty quarter some across current markets. trends decisions,

primarily related business airports an delivered transportation, among travel slow digital, which quarter by with and the the premium with categories. on other to Airports made we've the strength York a inventory, across Our strength investments benefits New exceptional Advertisers driven but start, the are banking, and and year record in our airports, team a portfolio. fourth focused in after telco

which products to team driven Europe-North digital and of countries of programmatic continues and growth. displays, operate, demand, deployment And in part increased our deliver we with additional by strong in the the revenue increased most across

ability to delivering greater media, of the advertisers media Delivering our expanding of into from with central experience a map, our drive range growth. terms progressing investment advertisers coupled and growing of technology-fueled aimed both road and which experience strategic our remains in serve mass in our impact media reaching expect on is of revenue a our the markets and higher-margin enhancing a out-of-home. U.S. profitability creative and delivering on a strengthening the kind powerhouse and strategy, at footprint focusing digital audience. U.S. on focused of We're to visual business, remain We the reach our digital transforming

Additionally, to could analytics programmatic than increasing to on traditional AI we engage us imagine productivity that our experimenting are allowing to more out-of-home. typically with enabling investments creative, us brands in this advertisers with be and data out-of-home using haven't tools. growth also We driver a could over in prove customers invested and capabilities and with their We're to help time. believe develop

strategy, This growth new our to power was in the on on our approach, doubled focus continues pharma success America to a early the and both data revenue to see is our pharma sales direct work example and team excellent Revenue developing CPG. Drilling America to in continuing our out-of-home. deeper vertical contributor to our year last developing XXXX, pharma and in client due of requires. large large national penetrating in growth and campaign sales of measurement an into the and verticals part tools we're applied industry insights

making big to in example which its CPG CPG, data impressions. excellent U.S. which has out-of-home We been have user within fourth in been inroads prefers and success Another the of wouldn't traditionally with our driven is a make vertical. record quarter a the has and able not the programmatic, had recent progress we're into

the new enhanced our We've in and fully made with significant offer. focused where our staffing in the our line over also in expansion also lagged good revenue the potential We're sales our solutions and stubbornly have generating staffing levels started training, our growth recovery. meaningful of revenue we we teams have streams on time. capability these U.S., believe through website in strengthening our business post-COVID onboarding We've progress

their Europe-North structure. our the front, is operating Latin focus The on sales of organization out sell streamline have segment. markets, the cost our strengthen we're to flow. On continued the as in to processes evaluating M&A improve performance in despite in for business our And continuing It's as these and the the currently paths we related strong to involved cash goal teams process giving optimize further our our commenced a to well worth our process U.S. businesses businesses America, leverage our with distraction. shout in

Turning reach and excluding expected foreign in revenue overview our provide between $X.X to forecast. a is consolidated movements year, guidance our billion, rates. to will increase Brian billion of moment. last in Full representing $X.XX a detailed year mid-single-digit over a exchange

with a our showing markets, seeing In a including good of Area of improvement. San signs Francisco Bay segment, majority quarter, our to growing. we're in California climate largest markets the the first business In and our the is we're Americas start, off better the in

and having Business And as entertainment vertical, a the the largest remains impact in in of has a and Amusements positive is Our the as Services, well California beyond. strong, and been end vertical welcome development Retail. strikes

nature is strong offsetting Airports in continues the losses, inventory. business largest a and Sweden, Europe-North the impact contract premium of off results, of to U.K. our ongoing Europe-North remains given the good the markets, our Norway. deliver to start contract with also excellent including and strength in a

ahead. in to the opportunities growth So we're we're pursuing drive with trends seeing and year we're the the encouraged

capital delivering thank for Finally, managing a to him in at before like. often Clear has review, the along led refinancing He through team on the and strategic financial in with been to over call has in we turning consultant, his iHeartMedia. like Channel. the with finance the continuing separation to would structure our our as advisers Brian our difficult also contributed transactions, our service stage through to look process forward years role efforts plan him the to and He many next Board, financial and team from instrumental of for work plan. of our charting management inherited of the his many I to course I financial

central a streamline experience who for Corporate leader I he's responsibilities and X, portfolio be believe become our been as Channel Development. as the David efforts Airport will CFO of as we succeed to of operations will been and more this America of on strategy focused Clear to us segments. overseeing He our Sailer, instrumental our U.S.-centric company. also proven the Head Brian a has had has March with financial

call that, Brian. me let the over hand to With

Brian Coleman

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

last in transitioning with I will discuss lot momentum, company's the believe a of as and are as positive role, is performance this we Although you my strongly expectations. you it with speaking we soon time hear about

Moving the X. presentation Slide on to in

exchange our rates, We Europe-South performance. during a a comparability As our foreign measure. XXXX fourth amounts are operations. reminder, and adjusted I quarter excluding otherwise that are results, excluded when is SG&A and from now for XXXX, XXXX about in discussion quarter our results, of non-GAAP restructuring fourth included provides EBITDA percent also operating quarter in evaluating unless movements Direct expenses the to talk greater this of believe and I'll And discontinued And the costs are include EBITDA. changes and of to compared refer the fourth expenses other the segment noted. adjusted GAAP

Now the fourth quarter for XX.X% Consolidated million, $XXX was reported revenue quarter onto the results. increase. a

continuing $XXX Excluding a revenue was operations up over continuing $XX XX.X% net discontinued consolidated operations. of quarter decline million. for to income exchange income the Income income Consolidated was million. from year's movements million in from operations foreign rates, the $XXX of from million, $XX includes prior

Adjusted EBITDA was $XXX X.X%. million, up

AFFO in million foreign $XX Excluding XX.X%. in up rates, X.X%. the up was EBITDA was movements quarter, adjusted exchange fourth

exchange XX.X%. foreign in movements Excluding up rates, was AFFO

million, were having $XXX with results. Americas X.X%, quarter it has strongest down. earlier quarter, in verticals results. regions markets the by up our and Northern in quarter. improved the up and Now growth. the in digital onto segment auto Slide were down programmatic driven entertainment the South Services for and still media The revenue A although was growth, year, X delivered deployments the America and to Central and relative was Pharma Business majority fourth Southeast of the California while

accounted accounted of revenue, which XX.X% America up revenue, America X.X%. revenue, XX.X% revenue, Local XX.X% rising accounted $XXX of was sales, up X.X%. which X.X% of for were Digital million. for for sales National to America

X.X% and million loss by operating settlement, Site up million. to expenses This and legal slightly taxes driven maintenance expense up offset rent SG&A Direct abatements. lease was was to credit lower related a property expense. costs by $XX were to lower $XXX

Segment adjusted results see quarter a million, the for was of margin of adjusted fourth EBITDA Airports. EBITDA segment with X.X%, Please a $XXX review X Slide up for XX.X%.

increase demand verticals, were quarter, infrastructure. digital segment. Airports travel Banking in the revenue up was financial as $XXX really most continued and another revenue top-performing and as by Revenue transportation strong with this in driven and services investment million, among was the and increased in well airports verticals up XX.X%. across

accounted Digital revenue, were Airport XX.X%. which sales, Local revenue, of up revenue, up accounted for accounted and were XX.X% for XX.X%. XX.X% National sales up XX.X% million. which was to Airports $XX of for XX.X% Airports of revenue

to expense were adjusted expenses XX.X% lease SG&A as higher EBITDA due to to $XX well XX.X% million. driven was a incentive primarily of Segment $XX and by is million as variable in XX.X%, with operating EBITDA million, increase margin higher increase XX.X%. compensation $XX Direct up segment revenue costs. The adjusted a up site

for increased Belgium, rates. Europe-North million Slide driven exclude to new revenue is on performance displays commentary demand, been Next, movements a and due countries, digital foreign on deployment products by in have exchange to that across Europe-North most X, of review My in of our adjusted and notably Europe-North. the higher to and results $XXX additional all contracts. increased revenue XX.X% U.K.

and for up increase Europe-North's $XXX direct and to in to expenses due million expense, of up million. an was site XX% Digital Europe-North revenue, were SG&A lease $XXX and accounted total adjusted as to higher XX.X% up XX.X% the operating XX.X% compensation well was XX% XX.X%. million, higher EBITDA as to taxes costs. revenue $XX was Europe-North EBITDA margin property up segment million, segment $XX to by adjusted driven

XX, well which due owned and be scale Channel XXXX, included company, to wholly Other. results reduced are in operations a of The of XXXX immaterial of loss financial to the Clear the and Moving XXXX. Singapore in the Singapore X. our on of BV, indirect senior revenue Slide the the contract International the Singapore, our subsidiary segments, to X which notes Europe-South in December as due results further and CCIBV, X/X% on CCIBV. will And on the terminated Europe-North or of issuer CCIBV secured of includes of is the an business as company's

income businesses from are excluded As segment these below. the net CCIBV statement income as are of in and separate for periods component the consolidated all reported discontinued of discussion businesses are presented Europe-South considered and of the now a results operations, consolidated

the to from XXXX fourth results $XXX for continuing same of compared increased CCIBV CCIBV follows. the XX% $XXX quarter operations revenue to as million are of period from XXXX as million.

just revenue operating $X million foreign revenue the months as operations to by million, of period income was ended Excluding mentioned. of $XX increased XXXX. Europe-North of CCIBV XX, from revenue December I the in higher X segment, driven impact XXXX. the for million in CCIBV represented compared continuing Singapore XX.X% in same X% exchange, movements $XX our CCIBV approximately

Slide to due of in reduction to decrease totaled moving capital prior year in $X Now of review the XX fourth million $XX quarter, CapEx timing spend. the and million a and expenditures. a a over

Now Slide to XX. on

liquidity liquidity quarter, to Our XXXX, due cash, $XXX XX, the of in increase an under to of million by end in facilities. compared at million as offset third slightly was a the down December $XX reduction the credit availability

decreased business fourth $XXX related cash the million, interest in $XX by delivered During of and to in to the equivalents driven the payments, buyer France, changes cash capital quarter, and million working cash sale our to capital. by expenditures,

XX, Cash XX, of as million million the the during decrease of payments, for in billion XXXX, same increase in fourth paid Our period partially quarter, $XXX basically XXXX. compared the was the primarily debt debt rates. flat in prior to a interest an offset due year, September timing $X.X to differences by $X to was on interest December interest

Our of XX, as lien December X.Xx. And weighted agreement covenant debt threshold X.XXx. leverage The was credit is first was X.X%. our ratio of average cost XXXX,

excludes guidance of Now rates, onto for in capital All Europe-North XXXX. consolidated interest payments. first cash and and year our movements expenditures of with Slide XX guidance the exception full exchange the guidance foreign and in quarter the

over and the between quarter, XXXX. a of $XXX believe revenue For increase to consolidated $XXX X% quarter the XX% we will first first representing million, our million be

expect We and million. and $XX million is and be Airports expected $XXX revenue to $XXX and revenue be is expected Europe-North million. million between America million be $XXX million, between $XXX between to $XX revenue to

to year full guidance. on Moving our

America We $X.XXX billion, revenue to and million over be be and expect between $XXX revenue million. X% consolidated to expected between and billion to million. $XXX billion revenue representing and billion. to million X% XXXX. is expected is revenue be to between is $X.XX expected $XXX $X.XXX increase Europe-North be Airports between $XXX $X.X

expect expenditures $XXX range the and to the $XXX lower to $XX of continued we in AFFO with basis, on and is million. million. in investing be footprint CapEx. a consolidated $XXX million are a our adjusted and $XXX $XXX focus expected corporate U.S. to On EBITDA be million million, between digital guidance Capital in million

and XXXX. anticipate XXXX interest $XXX payment obligations we of Additionally, cash in having in million $XXX million

The expected to payments of cash portion the the refinance XXXX interest notes due in differences secured and increase is senior loan. interest timing largely of the recently in in between payments issued CCOH term the X%

million We in quarter. This assumes first to additional expect $XXX refinance debt. do the or cash we not that guidance interest expense incur of be paid

pursuing kind back the appreciation substantial Clear camaraderie and for remarks, turn pursuing work progress him his Channel well as entire made continue closing to ahead I'd I hard before finally, call in I extend We've believe the we'll And vision. years, to his beyond. his to over to for in my the objectives, team Scott and year our to deliver thank like and the and support words our their dedication as for and

position. Dave expanded XX I'd do since know the continuing assuming to Scott and to we Board also Dave, separation from like his as is a on a forward. our Dave congratulate the look well in for I've as focus worked and as as our years, continue job plan more smooth about work This to will role on closely transition, I iHeartMedia. to moving forward company. consultant, with great and a the And with advisers, he in I CFO

back turn And with that, call to Scott. me the let

Scott Wells

Thanks, Brian.

and over priority focused These reflect the of next further leverage remain demonstrating on years. strengthening our all leverage we efforts profitable reduce growth, balance business. our operating to our ahead, sheet delivering Looking few the

acceleration. after our plans, provide markets, guidance a we that execution We expect see XXXX. in indicates, specific we believe should some our will America key growth the As in recovery lackluster of plus growth

to at strengthen business performance to to with already position U.S.-based and our a committed of assets, these us as strength we we've financial quality We're streamline of from done values our Europe Latin exiting work Europe-North in America puts The which consistent in assets. our concentrate on the and higher-margin work.

processes, an are both time active will in provide this As we able. and updates when we is as

to all good like is making we would We're doing. flow gratitude work the progress our cash my express pursuit and I team for as financially disciplined our company-wide operationally continue of growth.

on Justin And Cochrane and the us turn now me let and will Sailer operator, call. to join over call the Dave the

Operator

Before begin make the then directly move you. statement, this into would like we a Brian Q&A we'll morning, Q&A. Coleman the quick Thank to

Brian Coleman

announcing morning, facility. transactions. This comment senior that Term remainder cannot company press the new notes this portion issued facility a B Please we issue maturity release further Kevin. these the company's secured refinancing to the to of of note of whereby extend time a repay and the a intends Loan Thanks, to on transaction, the at we

the XXXX, present replay and while webcast investor company plans plans make Global no the Conference Yield Leverage Additionally, to on at High or its XX, company on of a Finance JPMorgan's February XXXX still website to its a presentation. longer available

Now to I the you. will turn call for operator Thank Q&A. the back

Operator

from first Instructions] question [Operator Stanley. from coming Cameron is McVeigh Our today Morgan

Cameron McVeigh

couple. I should guide, just flow leverage of we Americas I see was see a midpoint the operating if hit and through revenue the margin curious, expansion? you had

Brian Coleman

Yes.

-- to improvement continue growth, you as you see revenue, so on bit should see you'll that. margin expect to little higher we get a see flow-through will as think I get slight -- revenue you margin higher

Cameron McVeigh

then and growth digital discuss Airports of of general recently. over secondly, just budget shift? you ridership impact an the trends and much And well Great. have some how then incredibly have conversions Could share been drivers performing

Scott Wells

the COVID. mean, Port New things of with on number Authority Jersey Airports. a New obviously, York, there's secured I going we So during

started lapping we early of at in completed part in the the XXXX. beginning beginning online it Terminal A XXXX, process XXXX. came the We operating Newark, XXXX, of a were build-outs Most lapping online airports. notably we're that. in came So number at of -- we're of negotiating And that Terminal of we A the the at in

been would the have new QX first so And that of lap important inventory.

that And so I effect. think contract there's

our lapping the also seen has correlates I end strongly that in of And York. business have the definitely portfolio because audience The kind toward the And the of growth super that portfolio, it we're America as well. with in really But in performed the that that very strong New growth overall build-outs extraordinary overall think correlates we've at trend market the air travel. with the really delivery. well-defined And spectrum. of high-quality, premium we

So there's a it. lot factors of into going

not teams guess we're And it's of and large couple that's a with different model innovative last do in some the terms local cracked roadside we have accelerated. local sponsorship that's businesses about the interesting. thing almost cross-selling thinking I'd where as our well, teams a doing the we advertisers, And have well. and been local call-out, pretty the of just I years code roadside between give to airport pretty the really teams those starting on particularly in ago, a things only of inventory in geographies, type conjunction

So terms of in things pretty we're selling we're as some well. innovative doing how

factors. those are all I think the

Operator

Steven Fargo. Our Cahall today from coming next is question from Wells

Steven Cahall

and follow just up it. finer Cameron's Scott, first a maybe put on to on point question

I lease in expense you in Americas, increased idiosyncratically. some 'XX, that think somewhat had site

kind that's XXXX. if understand in of to Americas trying anything in also Just there's one-off

fixed you've costs. the having typically XX% about business think talked I -- about as

revenue versus in think Americas any XXXX, growth fixed we about as the cost? think good way about to variable in So

that the Americas? Is a at taking more reductions talked Could cost as you Is And I where you might costs you either Airports move this about provide to out release. looking in see of in or towards think press proactively some as then optimization divestitures? corporate the this cost we those? little color also, you're or the

or there is any Europe-North valuation finally, scenarios? are those EBITDA think LatAm divestiture basis about way then to And good for ranges since and now either

Scott Wells

of miss sure we I'm try but case going get I'm of list to Steve. in to them. these, all you the any kept Okay,

America. going we're one-offs, a clean we do think have place where getting the finally a to to On pretty I year are in

there that that lapped largely second to increase. of washed out of abatements, be going case to but a let you a operating may still Dave to speak I'm relative just leverage? want couple have Dave, large. We about the we are nothing XXXX, slightly but to those onetime there, the do out. lurking where talk things In for

David Sailer

Yes, standpoint, have Americas we large lapped. the that absolutely. like From that talked an has contract about,

here mean, from So don't as structurally XXXX, get but we site think you'll from to that's move anything abatements. things into little lease and your a I structure there, cost have going standpoint really a

Airports are standpoint, Those a bit that's an still kind From trickling in. different. little of

They to out So probably then will those we're margins be were lease be slightly Airports, when XXXX. of XXXX, standpoint Airports will a and expect and they for elevated. in will throughout over again those period that And kind talking in XXXX then from I about be will abatements. cycle site on

Scott Wells

us, And question optimization causes the talking that. of over of we've second unwind. us as latter not do And XX overhead with to XX cost to time more that that we're related think you will nothing $XX to probably to And before was then seen cost the the it a divestitures months be window, But next part take because principal related the savings. optimization. you'll toward code it's of speak ZIP that's the around good about. or on I think to least at going There's discussed million we've to corporate sort see

on to that we be -- LatAm, saw presume revert XXXX. little little XXXX to is scale look to everything bit, are because I at this But guide LatAm, going actually growth numbers a you at in Europe flight, then give think and Europe-North I relative what those closer think, if terms and may the growth you the of K those the their in months And in I XX fresh of nice in a mean businesses going you've got that's what did, the don't is we of point. a what to we're see.

not and moving was to like just everything when things We that become -- didn't think so things will be in disc talk just subsegments. simpler future, getting not-too-distant are some complicated you to of guides that, ops much At point the experience into the the appropriate. start about. down those the it business with a But that

Europe-North or So LatAm. Brian, if you don't have I you'd or the know, anything Dave on add

Brian Coleman

No, no.

it. covers that think I

Operator

Navarrete coming Next Cowen. question TD from from Jonnathan is

Jonnathan Navarrete

on Jonnathan My is first Airports, sales had the for It's last Lance. year. than and one and National was it America in better XQ it on composition

So there see with were National in throughout 'XX given that beginning, up some 'XX, so the pick towards you the towards ongoing did National and concerns trend end of also or XQ that far? is

Scott Wells

if you've way our that Jonnathan. the channel a I to Thanks, the syndicated it television the advertisers because correlates at always little calls, to bristle of Yes, number in through or the it's works. more it's really listened National than business you large know truly radio coming National a

large the But we where programmatic saw set. using were And correlated large it tool some using have segment, the continue is with for set The into we the advertisers definitely that really programmatic seen we advertiser that that the improvement QX. year. first. beginning And that this tool advertisers toward of saw

it's a on think I of performing trend National other it line. the good seems National it's think one National really not not describes the is Airports and It's -- like doesn't we of -- that our partners L.A., But think that poor National which segments a plus was way of But description kind New that stuff do York it. I is better really and call really of than as it.

Jonnathan Navarrete

it. Got

there seasonality note, other? sometime that seasonality? that during occur can on we on second also let's the can on and a building National is the that each every quarter out expect, of perhaps -- typical Or will first because quarter typical that throw say, So catch-up

Scott Wells

how XXX% Yes. most is up hundreds marketers okay, -- wake guys. this the up sure to think about of I outdoor numbers to of campaigns, got because think are catch I catch-up focused the and don't comprised a I'm on, not idea of our

had you tough very is February. QX pretty and and We January pretty year as and better. throughout. into think I April May less ought QX a it quarter. June, got get choppy better. to was year. think March to And last And good. September, really were little a a started was you what then strong was tough a about

So to Labor it last about not check the you a going choppy they're of those same, how out advertisers to dynamic we from Day of, that do. have don't just the very lot hey, think not to precisely it's the that business and kind was -- going year, say had. for June me I'm as large hoping what to we're especially But

of forecast. a it. on we investment if just about national, When more build a the want We level. you'd we're color really the build our don't off know, advertiser forecast, how local inventory as the at in I think it get national really the there's to our at terms looking of guide, at well that into We guide. it key more court go we accounts. we in as lot build what what's There's a market, whole it that lot provide of Dave, client don't looking happening position, the don't local to looking at with seeing principal things

David Sailer

-- were don't about of certain parts the talking out, the but I of covered When you I how country, other area parts year I'd just And is about obviously, certain weaker Scott geography you last the also about was talked think it. laid stronger. most, how kind of Yes. and were year think where the and we we're

of of country early up where get we more setting parts on XXXX. we our we're plays parts as strength kind see the as all what and when guide into into into year, this little of that the a So we're getting

don't does It's that certain a and I kind bounce like the think certain -- even back. as of verticals of it well. So as parts at more across get look it I stronger like where country, just

Jonnathan Navarrete

be million payment. is heavier think, quarters? saw And we even let's my is or, expect, $XX that is the that I in in say, the balance I it. there would was one terms a paid And Or in in throughout be on October distribution and $XX that Got 'XX. time, an million? last of the payments litigation perhaps throughout multiple just to XX-K expected X can some quarter

David Sailer

we've probably said expanded be end think think all will we I haven't of I XXXX. before And upon is those made payments that the that.

Operator

Our from Bank. next Watts question is coming Deutsche from Aaron

Aaron Watts

and Brian, questions conferences these as if you won't on peppering quite miss I much. miss you that certainly even will calls our with

Brian Coleman

Thanks, Aaron.

Aaron Watts

So for your me. I remarks just to for of a couple Yes, questions questions around course. A clarify of first, of guess, margins. couple me.

walk context moving the be -- on XX%, to last that stable it those some year basis? highlighted quarterly a Should choppiness parts implied cause should XX% the it. will Given this by Or relatively your movement you guide? a year or we we head factors as

David Sailer

in that I mean, in will fair. breaks the overall, segments second I But quarterly think certain towards margins. earlier think you different little half, more it be that's the they of because and I across definitely, But you're about out XX our Europe. different that's going standpoint, in and to year year end sense. get Obviously, talking quarters, probably your the makes a stronger lower a the increase America, just from Airports revenue probably our bit have margins across

think that you on call, be bit, you'll the 'XX, that still you're in see from cycle will XXXX in mean be airport to going release. so mentioned will I getting slightly little as settle the as of segment, elevated and a earlier relief past I I down get that

Aaron Watts

should missed but be taxes we on if the apologize year? how Helpful. this, for I thinking then And side, about this housekeeping Okay. cash I

Brian Coleman

local fairly of what U.S. seen think differently local and the past, minimal taxes to and much sales than the we've cash in too wouldn't related them international taxes, mostly that is in and I

we that. that and an would expect income federal tax have We minimizes make that obligations, election our we

that Aaron, sales. doesn't being all Now potential include asset said, that

European attract any we not made have the We sales cash that would believe our statement North that material taxes.

Now how sales dependent our of of range. right significant course are that as or is on tax those I see any now, conducted. kind the change in wouldn't But payments of cash

Aaron Watts

the Perfect. for last then Okay. I time. me, And and one appreciate

announced some to recently changes You your Board.

future you've in signals direction business Clear day-to-day highlighting. that for any modus curious the Americas-centric Just focus if Channel the kind and/or the of been the change beyond strategic operating for

Scott Wells

in mean, mix our what capital Board And how read we a doing a we'll I because spectrum that structure and This of and think incredibly lot of is -- where because of the fast business able look, Board media, refinancing perspectives our go works of maneuvering is be coupled And what that need -- out. things valuable. I we're good to this see we like and a need to plan you wood, having of live you as with done. Aaron. that's working think to the to have and process a is able Touch Thanks, right long-term think on is don't have I on we're challenging with to a be where, do that slow, Board. now. the to agility

people to important it's have so think operating. important of who it's doing the Board. we're understand I what And world to perspective with And have sum total in and fresh the you're Board, on that's which the the

Operator

Choe Next question JPMorgan. today from coming from is Richard

Richard Choe

first with the terms of the that up like trends about on coming Americas regions much quarter. How rebound talked just California of maybe programmatic is the follow I the L.A.? and in for Northern from just digital versus kind strength you wanted to of

Scott Wells

parts about of Thanks, But quarter great piece had I mean, was year, part in in quarter. the Richard. we The that had Airports, the no to last actually early first than of the the the pretty challenge think business start year. part less America a particularly was last you when it are intertwined. all

the coming is strong out very, so And of gate helpful. very

programmatic first quite interestingly, actually But well. last definitely strong. Programmatic strong is was quarter, as

work So QX. are online our we emerging not I have we that that coming of brought just think we've do of that. on in of directly clients some a couple development verticals, scale, done in new the some it's that

number things latter just XXXX. we first the really XXXX there's part a beginning seeing contributing getting And to So it. frankly, of trouble in in the past in manifesting Northern California of where started of

we're that. lapping So

so And are effect large that have doesn't our an numbers it. not that on

a of was and factors. of simple it's a do the So I'd a go wish I thing, of that of the all of kind thing. it I But number it's simple more combination lot think above.

Richard Choe

pharma Is mentioned or being both? really it a skewed that bit growth more? Or help to little you Airports does a with of And good Americas kind driver.

Scott Wells

now in of we're where principally the it. strength seeing is America It right

very what a airports doing itself I that think spot into are get application. the than it being of delivered. so to you could have a And the asset we're for in lends of airports. real broad sweet even translate more But pharma roadside that's that more drugs where audience segmented

So business. roadside I think toward that's the -- it is the definitely more skewed

Operator

Your from Goss Barrington next Research. question from Jim coming is

James Goss

well, air rebound a it terms but more rather of be -- got come than in and personal it The seemed in pretty in I've travel. seem travel about business Airports to to couple first.

mix the that of that demographics I'm business is favor So does on? and of pricing And wondering in put you'd shift ads true. travel in versus still personal strategy and/or the if impact

Scott Wells

couple question, Thanks, a of it. Jim. into that there's go things a good It's and

big bundling First one start this, people personal all, I number including going the have rebound with to perk articles they're I still business when travel a the personal but trips, than international commercial -- I members of skewed bringing to on a trends, then travel, oftentimes believe extended on mean, seen and is up, I've of do trips you which along international about of more trip Asia, an think certainly business, seen family that vacation. tacking is

playing those of dynamics some think I are out.

all that have we it good are was seen But are But how metrics back that. business the we've the around not pandemic. not -- way travel where before really ever It's I'm rebound. well how definitely to sure probably

on a terminals advertisers airports, that In jet we -- target BXC things have about a we very people the get be they also BXB, of of because products. many oftentimes, the thing are traveler, double might And is subset, business particular that terms with travel depends because client, which who talking have they the they'd you're within decision-makers. that advertiser go about, paying the FBOs. of talking buy dip you're kind on about, BXB-oriented translates, the after particular for airports, private that business the the And the it focused lot customer the or personal for how on

get both. so And you

performance those that factors not within lot lot discussion. is get. it to want versus for, has are great bit. do many it So personal hope a deep mix scale definitely There's the to It just a simple helping passenger I you're counts of airports going airports beyond trends into least of and we're a the little for, that support pricing the go those a you you're how at Airports. how going the that in answers with usually seeing business. just But your question

James Goss

too, related are good there. in strategies was It's the CapEx it there to and any about a good. and your the get influence potential And of available sort areas? up some for of in wondering, I thinking That's does you? note, might airports to those also, maybe if that Yes. contracts on bid be duration of interest decisions

Scott Wells

you Yes. too, of you Dave, -- well, talk got you've that. the CapEx the visibility want to could take do bid about

David Sailer

no. airport, if that into years. average, I going it the assets, Yes, XX-year say also a you're size -- mean a it's you're if more you of monetize kind will I the from longer-term you to yes, a chance And contract, the little mean, than inventory. on it of those because depends But so doing to and X on -- deal. yes, a definitely just CapEx get deal go a it's -- gives longer-term longer you're probably available

contracts are at as time. airports there's all the that mean, the airports up, U.S., coming I up you coming when look far mean, the across As I

it we're look the them. And strategy going there's constantly we accomplish we're So evaluating think Airports them. it And And come as at move and sense them airports within of going we into our to we to at portfolio? we're exactly our make look actively that make definitely to each fit feel we're sense, ones portfolio we'll But trying the into division? our Do they what hits on out. to pursue fit that airport. -- we obviously forward. individual don't would pass Does

Scott Wells

But we're there's months next XX facing. that terms in material nothing in renewals the of

think I to airports lot, going roadside about the don't we down, And been network of ability talk one gone with up, where results sales count as airport along lines. has have been the have where focusing along effect, actually because a this we've we have things, airports our those them, our things but we on airport have interesting greater

footprint the to last over the return the evolving been places is on the think that last there have of and airports where years we focus we perspective. capital strongest really So trying the several

James Goss

one maybe And final Okay. one.

markets some some of markets, general, some country potential at the of of wondering billboard lifting and just if I'm revenue domestic of called have that Is that not out necessarily of growth? around for challenges. one been under the you markets there the San those a You Francisco in airports, in as other but have might rates your pressure. those rebound had particular has in that and that look possibility

Scott Wells

Yes, good Jim, that's -- a it's question.

of -- that's about don't numbers a going think like our off. take think scenario there's you to as that think I going see post-COVID sort you're cause I to snapback just to

their of behavior, it's because regional happen, the success back advertisers which verticals that snap just the a because we're evolve in or necessarily back. were would having working think that I on that some can if think of don't does the to we're of be happen. I and

throughout if gets better, think, some markets just become like headwinds easily for addressed, environment get very those tailwinds for commercial in the the they XXXX, particularly underlying or could But regional Northern I if they actually I of in some are, challenges us and do which California. challenges think us,

I change drive that you exerted have to are to and being will of those think seeing some behavior markets political dragged that some try the some down. dynamics in some

And our on against being a would I those not markets. longtime California, rebounding bet bull friends

of portfolio. not don't guides or -- it's much double that to It's bigger I think anything a suddenly our but part it's us cause going to -- like just that. So

James Goss

All Brian, transition. this right. wish And well in you

through XX years. over been a lot past You've the

congratulations on the So success.

Brian Coleman

you, Thank Jim. Appreciate it.

Operator

comments. over closing turn back reached floor to the session. Scott like We the of question-and-answer any for I'd further end Wells to our

Scott Wells

Thanks, Kevin. appreciate it. I

where Jim's last that company that thing sheet have on are lease and to we time point our like or that time. goes up challenges point, on Just things a to, our from the site have just our we I challenges balance would

as a manage job David Brian that really for making to These phenomenal the to complex ability X multiple of done at view everyone collaborating really, the same is and leading this transition from just of team have go transition our I guys well. and things indicator But driven a just And we does the things great time. right. excel to are that for a company

the The marketplace going culture the fact be our able important smoothly And that it still on. I the is seamless. company. we we to be and be testament the now transition because this to are choppy, if like of a a financial our attention want be investors' behavior to and that able still to right wouldn't in market crazy operations and is call to were We to had are that do we operating going

it important thought call So I to just that out. was

you you to your all for And as builds. interest, have I thank updating we XXXX and forward look more as information

Operator

does and today's teleconference That Thank webcast. you. conclude

day. You time, may and We your participation wonderful your disconnect thank line this today. for have a you at

Clear Channel Outdoor (CCO) 26 Feb 242023 Q4 Earnings call transcript