Clear Channel Outdoor Holdings, Inc. Reports Results for the Second Quarter of 2024

SAN ANTONIO, Aug. 7, 2024 /PRNewswire/ -- Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) (the "Company") today reported financial results for the quarter ended June 30, 2024.

"We delivered second quarter consolidated revenue of $559 million, an increase of 5.2%, or 5.4% excluding movements in foreign exchange rates, with growth in our America, Airports and Europe-North segments," said Scott Wells, Chief Executive Officer of Clear Channel Outdoor Holdings, Inc. "Our performance reflects healthy demand from advertisers across the majority of our markets, with notable strength in our Airports and Europe-North segments. We also benefited from solid execution across a range of ongoing initiatives aimed at broadening our revenue base.

"In our America segment, we believe advertisers are increasingly recognizing the value of our digital billboard platform, now reaching over 70% of U.S. adults monthly in our served markets, as well as our data analytics capabilities, which enable us to target particular audiences and effectively measure advertisers' campaigns. Supporting our technology investments, we're also continuing to strategically expand our sales team, primarily at the local level. These efforts have elevated our presence in key verticals and strengthened our ability to monetize our inventory, offsetting some of the industry-wide softness in the national business.

"Looking ahead, we have modestly increased our full year 2024 consolidated revenue, Adjusted EBITDA and AFFO guidance given the strength in Airports and Europe-North. We remain focused on delivering on our strategic roadmap, including enhancing profitability, focusing on our higher-margin U.S. assets, continuing the Europe-North and Latin American sales processes and strengthening our balance sheet."

Financial Highlights:

Financial highlights for the second quarter of 2024 as compared to the same period of 2023, including financial highlights excluding movements in foreign exchange rates ("FX")¹:

(In millions)	Three Months Ended June 30, 2024		% Change
Revenue:
Consolidated Revenue2	$ 558.5		5.2 %
Excluding movements in FX1,2	559.6		5.4 %
America Revenue	290.2		0.9 %
Airports Revenue	86.2		21.4 %
Europe-North Revenue	164.7		9.9 %
Excluding movements in FX1	165.1		10.1 %
Net Loss:
Loss from Continuing Operations	(48.3)		24.5 %
Adjusted EBITDA 1:
Adjusted EBITDA1,2	142.9		(0.1) %
Excluding movements in FX1,2	142.9		(0.1) %
America Segment Adjusted EBITDA3	127.0		(2.0) %
Airports Segment Adjusted EBITDA3	19.1		16.8 %
Europe-North Segment Adjusted EBITDA3	32.6		24.5 %
Excluding movements in FX1	32.7		24.7 %

1	This is a non-GAAP financial measure. See "Supplemental Disclosures" section herein for more information.
2	Financial highlights exclude results of discontinued operations. See "Supplemental Disclosures" section herein for more information.
3	Segment Adjusted EBITDA is a GAAP financial measure. See "Supplemental Disclosures" section herein for more information.

Guidance:

Our expectations for the third quarter of 2024 are as follows:

	Third Quarter of 2024				% change from prior year
(in millions)	Low		High		Low		High
Consolidated Revenue1,2	$ 542		$ 567		3 %		8 %
America	287		297		3 %		7 %
Airports	79		84		5 %		11 %
Europe-North1	157		167		5 %		12 %

1	Excludes movements in FX
2	Excludes results of discontinued operations

We have updated our full year 2024 guidance from the guidance previously provided in our earnings release issued on May 9, 2024, as follows:

	Full Year of 2024				% change from prior year
(in millions)	Low		High		Low		High
Consolidated Revenue1,2	$ 2,215		$ 2,275		4 %		7 %
America	1,135		1,165		3 %		6 %
Airports	350		365		12 %		17 %
Europe-North1	653		668		5 %		8 %
Loss from Continuing Operations1	(160)		(135)		2 %		(14) %
Adjusted EBITDA1,2,3	560		590		5 %		10 %
AFFO1,2,3	90		110		8 %		33 %
Capital Expenditures2	130		150		(10) %		4 %

1	Excludes movements in FX
2	Excludes results of discontinued operations
3	This is a non-GAAP financial measure. See "Supplemental Disclosures" section herein for more information.

Expected results and estimates may be impacted by factors outside of the Company's control, and actual results may be materially different from this guidance. See "Cautionary Statement Concerning Forward-Looking Statements" herein.

Results:

Results provided herein exclude amounts related to discontinued operations for all periods presented.

Revenue:

(In thousands)	Three Months Ended June 30,				% Change		Six Months Ended June 30,				% Change
	2024		2023				2024		2023
Revenue:
America	$ 290,207		$ 287,517		0.9 %		$ 539,984		$ 523,566		3.1 %
Airports	86,219		71,045		21.4 %		163,145		124,834		30.7 %
Europe-North	164,735		149,909		9.9 %		304,128		278,412		9.2 %
Other	17,380		22,349		(22.2) %		33,036		41,428		(20.3) %
Consolidated Revenue	$ 558,541		$ 530,820		5.2 %		$ 1,040,293		$ 968,240		7.4 %
Revenue excluding movements in FX1:
America	$ 290,207		$ 287,517		0.9 %		$ 539,984		$ 523,566		3.1 %
Airports	86,219		71,045		21.4 %		163,145		124,834		30.7 %
Europe-North	165,079		149,909		10.1 %		301,165		278,412		8.2 %
Other	18,059		22,349		(19.2) %		33,325		41,428		(19.6) %
Consolidated Revenue excluding movements in FX	$ 559,564		$ 530,820		5.4 %		$ 1,037,619		$ 968,240		7.2 %

1	This is a non-GAAP financial measure. See "Supplemental Disclosures" section herein for more information.

Revenue for the second quarter of 2024, as compared to the same period of 2023:

America: Revenue up 0.9%:

• Revenue up in most markets, most notably Miami, driven by increased demand and digital deployments
• Digital revenue up 4.1% to $102.4 million from $98.4 million
• National sales comprised 35.0% of America revenue

Airports: Revenue up 21.4%:

• Strong demand across portfolio, led by the Port Authority of New York and New Jersey airports and the San Francisco International Airport; growth largely attributable to new advertising customers
• Digital revenue up 14.6% to $48.3 million from $42.1 million
• National sales comprised 57.7% of Airports revenue

Europe-North: Revenue up 9.9%; excluding movements in FX, up 10.1%:

• Higher revenue in most countries, most notably Sweden and the U.K., due to increased demand and digital deployments; partially offset by loss of transit contract in Norway
• Digital revenue up 18.0% to $93.9 million from $79.5 million; digital revenue, excluding movements in FX, up 17.9% to $93.8 million

Other: Revenue down 22.2%; excluding movements in FX, down 19.2%:

• Loss of contract in Singapore

Direct Operating and SG&A Expenses¹:

(In thousands)	Three Months Ended June 30,				% Change		Six Months Ended June 30,				% Change
	2024		2023				2024		2023
Direct operating and SG&A expenses:
America	$ 163,334		$ 158,004		3.4 %		$ 318,018		$ 312,702		1.7 %
Airports	67,139		54,711		22.7 %		125,079		102,236		22.3 %
Europe-North	131,999		123,987		6.5 %		256,263		245,552		4.4 %
Other	18,050		18,838		(4.2) %		34,667		37,548		(7.7) %
Consolidated Direct operating and SG&A expenses 2	$ 380,522		$ 355,540		7.0 %		$ 734,027		$ 698,038		5.2 %
Direct operating and SG&A expenses excluding movements in FX3:
America	$ 163,334		$ 158,004		3.4 %		$ 318,018		$ 312,702		1.7 %
Airports	67,139		54,711		22.7 %		125,079		102,236		22.3 %
Europe-North	132,275		123,987		6.7 %		253,763		245,552		3.3 %
Other	18,852		18,838		0.1 %		35,256		37,548		(6.1) %
Consolidated Direct operating and SG&A expenses excluding movements in FX	$ 381,600		$ 355,540		7.3 %		$ 732,116		$ 698,038		4.9 %

1	"Direct operating and SG&A expenses" as presented throughout this earnings release refers to the sum of direct operating expenses (excluding depreciation and amortization) and selling, general and administrative expenses (excluding depreciation and amortization).
2	Includes restructuring and other costs of $0.7 million and $0.3 million during the three months ended June 30, 2024 and 2023, respectively, and $1.5 million and $0.6 million during the six months ended June 30, 2024 and 2023, respectively.
3	This is a non-GAAP financial measure. See "Supplemental Disclosures" section herein for more information.

Direct operating and SG&A expenses for the second quarter of 2024, as compared to the same period of 2023:

America: Direct operating and SG&A expenses up 3.4%:

• Higher compensation costs driven by increased headcount, pay increases and higher variable-incentive compensation
• Higher credit loss expense related to specific reserves for certain customers
• Site lease expense down 1.0%, to $84.7 million from $85.5 million, driven by the renegotiation of an existing contract and lower revenue-share rent payments

Airports: Direct operating and SG&A expenses up 22.7%:

• Site lease expense up 23.4%, to $52.8 million from $42.8 million, driven by higher revenue and lower rent abatements
• Higher production, installation and maintenance costs driven by revenue growth
• Higher compensation costs largely driven by sales commissions

Europe-North: Direct operating and SG&A expenses up 6.5%; excluding movements in FX, up 6.7%:

• Higher property taxes and rental costs for additional digital displays
• Higher compensation costs driven by pay increases and variable-incentive compensation
• Site lease expense up 1.6%, to $59.2 million from $58.3 million; site lease expense, excluding movements in FX, up 2.0% to $59.5 million mainly driven by higher revenue, partially offset by contract loss in Norway

Other: Direct operating and SG&A expenses down 4.2%; excluding movements in FX, up 0.1%

Corporate Expenses¹:

(In thousands)	Three Months Ended June 30,				% Change		Six Months Ended June 30,				% Change
	2024		2023				2024		2023
Corporate expenses2	$ 44,704		$ 58,316		(23.3) %		$ 84,830		$ 94,496		(10.2) %
Corporate expenses excluding movements in FX3	44,685		58,316		(23.4) %		84,476		94,496		(10.6) %

1	Certain costs that were historically allocated to the Company's Europe-South segment and reported within SG&A expenses, totaling $1.0 million and $2.9 million during the three and six months ended June 30, 2023, respectively, have been deemed to be costs of continuing operations and are now reported within corporate expenses for all periods presented.
2	Includes restructuring and other costs of $1.4 million and $19.7 million during the three months ended June 30, 2024 and 2023, respectively, and $3.9 million and $19.6 million during the six months ended June 30, 2024 and 2023, respectively. Restructuring and other costs for the three and six months ended June 30, 2023 include an expense of $19.0 million recorded for the resolution of the investigation of the Company's former indirect, non-wholly-owned subsidiary, Clear Media Limited.
3	This is a non-GAAP financial measure. See "Supplemental Disclosures" section herein for more information.

Corporate expenses for the second quarter of 2024, as compared to the same period of 2023, down 23.3%; excluding movements in FX, down 23.4%:

• Lower restructuring and other costs driven by $19.0 million legal liability recorded in prior year for resolution of the Clear Media Limited investigation
• Partially offset by increase of $5.6 million for higher employee compensation costs (excluding share-based compensation), largely driven by bonuses and insurance benefits, and certain legal costs associated with property and casualty settlements

Loss from Continuing Operations:

(In thousands)	Three Months Ended June 30,				% Change		Six Months Ended June 30,				% Change
	2024		2023				2024		2023
Loss from continuing operations	$ (48,313)		$ (38,806)		24.5 %		$ (136,976)		$ (131,411)		4.2 %

Adjusted EBITDA¹:

(In thousands)	Three Months Ended June 30,				% Change		Six Months Ended June 30,				% Change
	2024		2023				2024		2023
Segment Adjusted EBITDA2:
America	$ 126,980		$ 129,513		(2.0) %		$ 222,444		$ 210,878		5.5 %
Airports	19,082		16,334		16.8 %		38,164		22,598		68.9 %
Europe-North	32,649		26,234		24.5 %		46,974		33,406		40.6 %
Other	6		3,511		(99.8) %		206		3,880		(94.7) %
Total Segment Adjusted EBITDA	178,717		175,592		1.8 %		307,788		270,762		13.7 %
Adjusted Corporate expenses1,3	(35,797)		(32,545)		10.0 %		(68,162)		(64,749)		5.3 %
Adjusted EBITDA 1	$ 142,920		$ 143,047		(0.1) %		$ 239,626		$ 206,013		16.3 %
Segment Adjusted EBITDA excluding movements in FX1:
America	$ 126,980		$ 129,513		(2.0) %		$ 222,444		$ 210,878		5.5 %
Airports	19,082		16,334		16.8 %		38,164		22,598		68.9 %
Europe-North	32,716		26,234		24.7 %		46,522		33,406		39.3 %
Other	(109)		3,511		(103.1) %		(80)		3,880		(102.1) %
Total Segment Adjusted EBITDA	178,669		175,592		1.8 %		307,050		270,762		13.4 %
Adjusted Corporate expenses excluding movements in FX1,3	(35,780)		(32,545)		9.9 %		(67,834)		(64,749)		4.8 %
Adjusted EBITDA excluding movements in FX 1	$ 142,889		$ 143,047		(0.1) %		$ 239,216		$ 206,013		16.1 %

1	This is a non-GAAP financial measure. See "Supplemental Disclosures" section herein for more information.
2	Segment Adjusted EBITDA is a GAAP financial measure. See "Supplemental Disclosures" section herein for more information.
3	Certain costs that were historically included in Segment Adjusted EBITDA for the Europe-South segment have been deemed to be costs of continuing operations and have been reclassified to Adjusted Corporate expenses for all periods presented.

AFFO¹:

(In thousands)	Three Months Ended June 30,				% Change		Six Months Ended June 30,				% Change
	2024		2023				2024		2023
AFFO1,2	$ 25,338		$ 28,855		(12.2) %		$ 9,014		$ (14,805)		NM
AFFO excluding movements in FX1,2	25,298		28,855		(12.3) %		8,514		(14,805)		NM

1	This is a non-GAAP financial measure. See "Supplemental Disclosures" section herein for more information.
2	Percentage changes that are so large as to not be meaningful have been designated as "NM."

Capital Expenditures:

(In thousands)	Three Months Ended June 30,				% Change		Six Months Ended June 30,				% Change
	2024		2023				2024		2023
America	$ 13,450		$ 18,888		(28.8) %		$ 22,273		$ 35,696		(37.6) %
Airports	1,807		2,559		(29.4) %		3,446		7,310		(52.9) %
Europe-North	4,768		4,081		16.8 %		14,128		11,147		26.7 %
Other	736		1,036		(29.0) %		2,094		2,957		(29.2) %
Corporate	2,073		3,826		(45.8) %		4,928		6,656		(26.0) %
Consolidated capital expenditures	$ 22,834		$ 30,390		(24.9) %		$ 46,869		$ 63,766		(26.5) %

Markets and Displays:

As of June 30, 2024, we operated more than 308,000 print and digital out-of-home advertising displays in 19 countries as part of our continuing operations, with the majority of our revenue generated by operations in the U.S. and Europe. As of June 30, 2024, we had presence in 82 Designated Market Areas ("DMAs") in the U.S., including 43 of the top 50 U.S. markets, and in 12 countries throughout Europe, excluding markets that are considered discontinued operations.

	Number of digital displays added, net, in second quarter		Total number of displays as of June 30, 2024
			Digital		Printed		Total
America1:
Billboards2	25		1,879		33,170		35,049
Other displays3	-		611		13,756		14,367
Airports4	105		2,542		10,366		12,908
Europe-North	521		16,125		225,066		241,191
Other	14		1,077		3,861		4,938
Total displays	665		22,234		286,219		308,453

1	As of June 30, 2024, our America segment had presence in 28 U.S. DMAs.
2	Billboards includes bulletins, posters, spectaculars and wallscapes.
3	Other displays includes street furniture and transit displays.
4	As of June 30, 2024, our Airports segment had displays across nearly 200 commercial and private airports in the U.S. and the Caribbean.

Clear Channel International B.V.

Clear Channel International B.V. ("CCIBV"), an indirect wholly-owned subsidiary of the Company and the borrower under the CCIBV Term Loan Facility, includes the operations of our Europe-North and Europe-South segments, as well as Singapore, which is included in "Other." The financial results of Singapore have historically been immaterial to the results of CCIBV, and revenue and expenses for the Singapore business were further reduced in the first quarter of 2024 due to the loss of a contract.

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

CCIBV results from continuing operations for the second quarter of 2024 as compared to the same period of 2023 are as follows:

• CCIBV revenue increased 6.4% to $164.8 million from $154.9 million. Excluding the $0.3 million impact of movements in FX, CCIBV revenue increased 6.6% as higher revenue from our Europe-North segment, as described in the above "Results" section of this earnings release, was partially offset by the loss of a contract in Singapore.
• CCIBV operating income was $10.3 million compared to $3.1 million in the same period of 2023.

Liquidity and Financial Position:

Cash and Cash Equivalents:

As of June 30, 2024, we had $189.3 million of cash on our balance sheet, including $44.6 million of cash held outside the U.S. (excludes cash held by our business in Spain, which is a discontinued operation).

The following table summarizes our cash flows for the six months ended June 30, 2024 on a consolidated basis, including both continuing and discontinued operations:

(In thousands)	Six Months Ended June 30, 2024
Net cash used for operating activities	$ (3,972)
Net cash used for investing activities1	(50,828)
Net cash used for financing activities	(5,711)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(2,093)
Net decrease in cash, cash equivalents and restricted cash	$ (62,604)
Cash paid for interest	$ 218,521
Cash paid for income taxes, net of refunds	$ 9,896

1	Includes capital expenditures for discontinued operations of $5.0 million.

Debt:

We anticipate having cash interest payment obligations of approximately $216 million during the remainder of 2024, including the first semi-annual interest payment on the 7.875% Senior Secured Notes Due 2030 (the "CCOH 7.875% Senior Secured Notes"), due in October, and $422 million in 2025, assuming that we do not refinance or incur additional debt.

Our next debt maturities are in 2027 when the $1.25 billion aggregate principal amount of 5.125% Senior Secured Notes Due 2027 and the $375.0 million principal amount outstanding under the CCIBV Term Loan Facility become due.

Please refer to Table 3 in this earnings release for additional detail regarding our outstanding debt balance.

TABLE 1 - Financial Highlights of Clear Channel Outdoor Holdings, Inc. and its Subsidiaries:
(In thousands)	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenue	$ 558,541		$ 530,820		$ 1,040,293		$ 968,240
Operating expenses:
Direct operating expenses1	281,625		266,226		542,462		518,829
Selling, general and administrative expenses1	98,897		89,314		191,565		179,209
Corporate expenses1	44,704		58,316		84,830		94,496
Depreciation and amortization	53,883		64,502		108,173		128,710
Impairment charges2	18,073		-		18,073		-
Other operating expense, net	4,622		23		6,061		3,943
Operating income	56,737		52,439		89,129		43,053
Interest expense, net	(107,410)		(104,733)		(215,065)		(207,233)
Loss on extinguishment of debt	-		-		(4,787)		-
Other income (expense), net3	(98)		12,211		(8,444)		20,991
Loss from continuing operations before income taxes	(50,771)		(40,083)		(139,167)		(143,189)
Income tax benefit attributable to continuing operations	2,458		1,277		2,191		11,778
Loss from continuing operations	(48,313)		(38,806)		(136,976)		(131,411)
Income from discontinued operations4	9,679		2,227		9,259		59,410
Consolidated net loss	(38,634)		(36,579)		(127,717)		(72,001)
Less: Net income attributable to noncontrolling interests	536		718		1,120		208
Net loss attributable to the Company	$ (39,170)		$ (37,297)		$ (128,837)		$ (72,209)

1	Excludes depreciation and amortization.
2	Impairment charges for the three and six months ended June 30, 2024 relate to the impairment of long-lived assets in certain of the Company's Latin American businesses.
3	Other expense, net, for the six months ended June 30, 2024 includes $12.0 million of debt modification expense related to the debt transactions the Company completed in March 2024.
4	Income from discontinued operations for the three and six months ended June 30, 2024 reflects the net income generated during these periods by operations in Spain. Income from discontinued operations for the three months ended June 30, 2023 includes a gain of $11.2 million from the sale of our former business in Italy, partially offset by the net loss collectively generated during the period by operations in Italy (through its sale date), France and Spain. Income from discontinued operations for the six months ended June 30, 2023 includes gains of $96.4 million and $11.2 million from the sales of our former businesses in Switzerland and Italy, respectively, partially offset by the net loss collectively generated during the period by operations in Switzerland and Italy (through their sale dates) and in France and Spain, as well as income tax expense related to the sale of the former Swiss business.

Weighted Average Shares Outstanding
(In thousands)	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Weighted average common shares outstanding - Basic and Diluted	488,740		482,373		486,244		480,448

TABLE 2 - Selected Balance Sheet Information:
(In thousands)	June 30, 2024		December 31, 2023
Cash and cash equivalents	$ 189,300		$ 251,652
Total current assets1	853,674		957,401
Property, plant and equipment, net	628,038		666,344
Total assets1	4,544,363		4,722,475
Current liabilities (excluding current portion of long-term debt)2	832,368		883,116
Long-term debt (including current portion of long-term debt)	5,654,686		5,631,903
Stockholders' deficit	(3,590,577)		(3,450,743)

1	Total current assets and total assets include assets of discontinued operations of $139.7 million and $131.3 million at June 30, 2024 and December 31, 2023, respectively.
2	Current liabilities includes liabilities of discontinued operations of $62.9 million and $68.8 million at June 30, 2024 and December 31, 2023, respectively.

TABLE 3 - Total Debt:
(In thousands)	Maturity		June 30, 2024		December 31, 2023
Debt:
Receivables-Based Credit Facility1	August 2026		$ -		$ -
Revolving Credit Facility2	August 2026		-		-
Term Loan Facility3	August 2028		425,000		1,260,000
Clear Channel Outdoor Holdings 5.125% Senior Secured Notes	August 2027		1,250,000		1,250,000
Clear Channel Outdoor Holdings 9.000% Senior Secured Notes	September 2028		750,000		750,000
Clear Channel Outdoor Holdings 7.875% Senior Secured Notes3	April 2030		865,000		-
Clear Channel Outdoor Holdings 7.750% Senior Notes	April 2028		995,000		995,000
Clear Channel Outdoor Holdings 7.500% Senior Notes	June 2029		1,040,000		1,040,000
Clear Channel International B.V. 6.625% Senior Secured Notes4	August 2025		-		375,000
Clear Channel International B.V. Term Loan Facility4	April 2027		375,000		-
Finance leases			3,891		4,202
Original issue discount			(8,391)		(2,690)
Long-term debt fees			(40,814)		(39,609)
Total debt			5,654,686		5,631,903
Less: Cash and cash equivalents			(189,300)		(251,652)
Net debt			$ 5,465,386		$ 5,380,251

1	As of June 30, 2024, we had $49.8 million of letters of credit outstanding and $108.2 million of excess availability under the Receivables-Based Credit Facility.
2	As of June 30, 2024, we had $43.2 million of letters of credit outstanding and $106.8 million of excess availability under the Revolving Credit Facility.
3	In March 2024, we issued $865.0 million aggregate principal amount of CCOH 7.875% Senior Secured Notes and used a portion of the proceeds therefrom to prepay $835.0 million of borrowings outstanding under our Term Loan Facility. At the same time, we amended our Senior Secured Credit Agreement to, among other things, refinance the $425.0 million remaining principal balance on the Term Loan Facility and to extend its maturity date from 2026 to 2028, subject to certain conditions.
4	In March 2024, CCIBV entered into the CCIBV Term Loan Facility, totaling an aggregate principal amount of $375.0 million, and used the proceeds therefrom to redeem all of the outstanding $375.0 million aggregate principal amount of CCIBV Senior Secured Notes.

Supplemental Disclosures:

Reportable Segments and Segment Adjusted EBITDA

The Company has four reportable segments, which it believes best reflect how the Company is currently managed: America, which consists of the Company's U.S. operations excluding airports; Airports, which includes revenue from U.S. and Caribbean airports; Europe-North, which consists of operations in the U.K., the Nordics and several other countries throughout northern and central Europe; and Europe-South, which consists of operations in Spain, and prior to their sales on March 31, 2023, May 31, 2023 and October 31, 2023, respectively, also consisted of operations in Switzerland, Italy and France. The Company's remaining operations in Latin America and Singapore are disclosed as "Other." The Company's Europe-South segment met the criteria to be reported as discontinued operations during the third quarter of 2023. As such, results of this segment are excluded from this earnings release, which only reflects continuing operations, for all periods presented.

Segment Adjusted EBITDA is the profitability metric reported to the Company's chief operating decision maker for purposes of making decisions about allocation of resources to, and assessing performance of, each reportable segment. Segment Adjusted EBITDA is a GAAP financial measure that is calculated as Revenue less Direct operating expenses and SG&A expenses, excluding restructuring and other costs. Restructuring and other costs include costs associated with cost savings initiatives such as severance, consulting and termination costs and other special costs.

Non-GAAP Financial Information

This earnings release includes information that does not conform to U.S. generally accepted accounting principles ("GAAP"), including Adjusted EBITDA, Adjusted Corporate expenses, Funds From Operations ("FFO") and Adjusted Funds From Operations ("AFFO"). The Company presents this information because the Company believes these non-GAAP measures help investors better understand the Company's operating performance as compared to other out-of-home advertisers, and these metrics are widely used by such companies in practice. Please refer to the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures below.

The Company defines, and uses, these non-GAAP financial measures as follows:

• Adjusted EBITDA is defined as income (loss) from continuing operations, plus: income tax expense (benefit) attributable to continuing operations; all non-operating expenses (income), including other expense (income), loss (gain) on extinguishment of debt and interest expense, net; other operating expense (income), net; depreciation, amortization and impairment charges; share-based compensation expense included within corporate expenses; and restructuring and other costs included within operating expenses. Restructuring and other costs include costs associated with cost savings initiatives such as severance, consulting and termination costs and other special costs.
  
  The Company uses Adjusted EBITDA as one of the primary measures for the planning and forecasting of future periods, as well as for measuring performance for compensation of Company executives and other members of Company management. The Company believes Adjusted EBITDA is useful for investors because it allows investors to view performance in a manner similar to the method used by Company management and helps improve investors' ability to understand the Company's operating performance, making it easier to compare the Company's results with other companies that have different capital structures or tax rates. In addition, the Company believes Adjusted EBITDA is among the primary measures used externally by the Company's investors, analysts and peers in its industry for purposes of valuation and comparing the operating performance of the Company to other companies in its industry.

• As part of the calculation of Adjusted EBITDA, the Company also presents the non-GAAP financial measure of "Adjusted Corporate expenses," which the Company defines as corporate expenses excluding share-based compensation expense and restructuring and other costs.
• The Company uses the National Association of Real Estate Investment Trusts ("Nareit") definition of FFO, which is consolidated net income (loss) before: depreciation, amortization and impairment of real estate; gains or losses from the disposition of real estate; and adjustments to eliminate unconsolidated affiliates and noncontrolling interests. The Company defines AFFO as FFO excluding discontinued operations and before the following adjustments for continuing operations: maintenance capital expenditures; straight-line rent effects; depreciation, amortization and impairment of non-real estate; loss on extinguishment of debt and debt modification expense; amortization of deferred financing costs and discounts; share-based compensation expense; deferred taxes; restructuring and other costs; transaction costs; foreign exchange transaction gain or loss; and other items, including adjustment for unconsolidated affiliates and noncontrolling interest and nonrecurring infrequent or unusual gains or losses.
  
  The Company is not a Real Estate Investment Trust ("REIT"). However, the Company competes directly with REITs that present the non-GAAP measures of FFO and AFFO and, accordingly, believes that presenting such measures will be helpful to investors in evaluating the Company's operations with the same terms used by the Company's direct competitors. The Company calculates FFO in accordance with the definition adopted by Nareit. Nareit does not restrict presentation of non-GAAP measures traditionally presented by REITs by entities that are not REITs. In addition, the Company believes FFO and AFFO are already among the primary measures used externally by the Company's investors, analysts and competitors in its industry for purposes of valuation and comparing the operating performance of the Company to other companies in its industry. The Company does not use, and you should not use, FFO and AFFO as an indication of the Company's ability to fund its cash needs or pay dividends or make other distributions. Because the Company is not a REIT, the Company does not have an obligation to pay dividends or make distributions to stockholders and does not intend to pay dividends for the foreseeable future. Moreover, the presentation of these measures should not be construed as an indication that the Company is currently in a position to convert into a REIT.

A significant portion of the Company's advertising operations is conducted in foreign markets, principally Europe, and Company management reviews the results from its foreign operations on a constant dollar basis. The Company presents the GAAP measures of revenue, direct operating and SG&A expenses, corporate expenses and Segment Adjusted EBITDA, as well as the non-GAAP financial measures of Adjusted EBITDA, Adjusted Corporate expenses, FFO and AFFO, excluding movements in foreign exchange rates because Company management believes that viewing certain financial results without the impact of fluctuations in foreign currency rates facilitates period-to-period comparisons of business performance and provides useful information to investors. These measures, which exclude the effects of foreign exchange rates, are calculated by converting the current period's amounts in local currency to U.S. dollars using average monthly foreign exchange rates for the same period of the prior year.

Since these non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, the most directly comparable GAAP financial measures as an indicator of operating performance or, in the case of Adjusted EBITDA, FFO and AFFO, the Company's ability to fund its cash needs. In addition, these measures may not be comparable to similar measures provided by other companies. See reconciliations of loss from continuing operations to Adjusted EBITDA, corporate expenses to Adjusted Corporate expenses, and consolidated net loss to FFO and AFFO in the tables set forth below. This data should be read in conjunction with the Company's most recent Annual Report on Form 10-K, Form 10-Qs and Form 8-Ks, which are available on the Investor Relations page of the Company's website at investor.clearchannel.com.

Reconciliation of Loss from Continuing Operations to Adjusted EBITDA
	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Loss from continuing operations	$ (48,313)		$ (38,806)		$ (136,976)		$ (131,411)
Adjustments:
Income tax benefit attributable to continuing operations	(2,458)		(1,277)		(2,191)		(11,778)
Other (income) expense, net	98		(12,211)		8,444		(20,991)
Loss on extinguishment of debt	-		-		4,787		-
Interest expense, net	107,410		104,733		215,065		207,233
Other operating expense, net	4,622		23		6,061		3,943
Impairment charges	18,073		-		18,073		-
Depreciation and amortization	53,883		64,502		108,173		128,710
Share-based compensation	7,525		6,116		12,802		10,147
Restructuring and other costs1	2,080		19,967		5,388		20,160
Adjusted EBITDA	$ 142,920		$ 143,047		$ 239,626		$ 206,013

1	Restructuring and other costs for the three and six months ended June 30, 2023 include an expense of $19.0 million recorded for the resolution of the investigation of the Company's former indirect, non-wholly-owned subsidiary, Clear Media Limited.

Reconciliation of Corporate Expenses to Adjusted Corporate Expenses
	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Corporate expenses	$ (44,704)		$ (58,316)		$ (84,830)		$ (94,496)
Share-based compensation	7,525		6,116		12,802		10,147
Restructuring and other costs1	1,382		19,655		3,866		19,600
Adjusted Corporate expenses	$ (35,797)		$ (32,545)		$ (68,162)		$ (64,749)

1	Restructuring and other costs for the three and six months ended June 30, 2023 include an expense of $19.0 million recorded for the resolution of the investigation of the Company's former indirect, non-wholly-owned subsidiary, Clear Media Limited.

Reconciliation of Consolidated Net Loss to FFO and AFFO
	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Consolidated net loss	$ (38,634)		$ (36,579)		$ (127,717)		$ (72,001)
Depreciation and amortization of real estate	46,509		62,880		93,315		127,634
Net loss (gain) on disposition of real estate (excludes condemnation proceeds)1	1,930		(10,248)		(3,658)		(104,479)
Impairment of real estate2	16,808		-		16,808		-
Adjustment for unconsolidated affiliates and non-controlling interests	(1,075)		(1,301)		(2,273)		(1,172)
Funds From Operations (FFO)	25,538		14,752		(23,525)		(50,018)
Less: FFO from discontinued operations	9,722		(3,131)		9,387		(37,335)
FFO from continuing operations	15,816		17,883		(32,912)		(12,683)
Capital expenditures-maintenance	(9,440)		(13,005)		(16,380)		(22,229)
Straight-line rent effect	(1,631)		1,214		(2,906)		2,211
Depreciation and amortization of non-real estate	7,374		7,320		14,858		14,511
Impairment of non-real estate2	1,265		-		1,265		-
Loss on extinguishment of debt and debt modification expense	175		-		16,785		-
Amortization of deferred financing costs and note discounts	2,936		2,907		5,838		5,794
Share-based compensation	7,525		6,116		12,802		10,147
Deferred taxes	(5,861)		(4,001)		(5,795)		(15,390)
Restructuring and other costs3	2,080		19,967		5,388		20,160
Transaction costs	5,693		870		11,867		1,396
Foreign exchange transaction gain	(209)		(12,341)		(4,026)		(21,180)
Other items	(385)		1,925		2,230		2,458
Adjusted Funds From Operations (AFFO)	$ 25,338		$ 28,855		$ 9,014		$ (14,805)

1	Net gain on disposition of real estate for the three and six months ended June 30, 2023 includes a gain of $11.2 million from the sale of our former business in Italy and, for the six months ended June 30, 2023, includes a gain of $96.4 million from the sale of our former business in Switzerland.
2	Impairment charges for the three and six months ended June 30, 2024 relate to the impairment of long-lived assets in certain of the Company's Latin American businesses.
3	Restructuring and other costs for the three and six months ended June 30, 2023 include an expense of $19.0 million recorded for the resolution of the investigation of the Company's former indirect, non-wholly-owned subsidiary, Clear Media Limited.

Reconciliation of Loss from Continuing Operations Guidance 1 to Adjusted EBITDA Guidance 1
	Full Year of 2024
(in millions)	Low		High
Loss from continuing operations	$ (160)		$ (135)
Adjustments:
Income tax expense attributable to continuing operations	1		1
Other expense, net	7		7
Loss on extinguishment of debt	5		5
Interest expense, net	425		430
Other operating expense, net	16		16
Impairment charges	20		20
Depreciation and amortization	213		213
Share-based compensation	26		26
Restructuring and other costs	7		7
Adjusted EBITDA	$ 560		$ 590

1	Guidance excludes movements in FX

Reconciliation of Loss from Continuing Operations Guidance 1 to AFFO Guidance 1
	Full Year of 2024
(in millions)	Low		High
Loss from continuing operations	$ (160)		$ (135)
Depreciation and amortization of real estate	184		184
Net gain on disposition of real estate (excludes condemnation proceeds)	(2)		(2)
Impairment of real estate	19		19
Adjustment for unconsolidated affiliates and non-controlling interests	(5)		(5)
FFO from continuing operations	36		61
Capital expenditures-maintenance	(40)		(45)
Straight-line rent effect	(7)		(7)
Depreciation and amortization of non-real estate	29		29
Loss on extinguishment of debt and debt modification expense	17		17
Amortization of deferred financing costs and discounts	12		12
Share-based compensation	26		26
Deferred taxes	(11)		(11)
Restructuring and other costs	7		7
Foreign exchange transaction gain	(5)		(5)
Other items	26		26
Adjusted Funds From Operations (AFFO)	$ 90		$ 110

1	Guidance excludes movements in FX.

Conference Call

The Company will host a conference call to discuss these results on August 7, 2024 at 8:30 a.m. Eastern Time. The conference call number is 866-424-3432 (U.S. callers) or [phone] (international callers). A live audio webcast of the conference call will be available on the "Events and Presentations" section of the Company's investor website (investor.clearchannel.com). A replay of the webcast will be available after the live conference call on the "Events and Presentations" section of the Company's investor website.

About Clear Channel Outdoor Holdings, Inc.

Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) is at the forefront of driving innovation in the out-of-home advertising industry. Our dynamic advertising platform is broadening the pool of advertisers using our medium through the expansion of digital billboards and displays and the integration of data analytics and programmatic capabilities that deliver measurable campaigns that are simpler to buy. By leveraging the scale, reach and flexibility of our diverse portfolio of assets, we connect advertisers with millions of consumers every month.

For further information, please contact:

Investors:
Eileen McLaughlin
Vice President - Investor Relations
[phone]
[email protected]

Cautionary Statement Concerning Forward-Looking Statements

Certain statements in this earnings release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Clear Channel Outdoor Holdings, Inc. and its subsidiaries (the "Company") to be materially different from any future results, performance, achievements, guidance, goals and/or targets expressed or implied by such forward-looking statements. The words "guidance," "believe," "expect," "anticipate," "estimate," "forecast," "goals," "targets" and similar words and expressions are intended to identify such forward-looking statements. In addition, any statements that refer to expectations or other characterizations of future events or circumstances, such as statements about our guidance, outlook, long-term forecast, goals or targets; our business plans and strategies; our expectations about the timing, closing, satisfaction of closing conditions, use of proceeds and benefits of the sales of our European businesses; expectations about certain markets; the conduct of, and expectations about, international business sales processes; industry and market trends; and our liquidity, are forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict.

Various risks that could cause future results to differ from those expressed by the forward-looking statements included in this earnings release include, but are not limited to: continued economic uncertainty, an economic slowdown or a recession; our ability to service our debt obligations and to fund our operations, business strategy and capital expenditures; the impact of our substantial indebtedness, including the effect of our leverage on our financial position and earnings; the difficulty, cost and time required to implement our strategy, including optimizing our portfolio, and the fact that we may not realize the anticipated benefits therefrom; our ability to obtain and renew key contracts with municipalities, transit authorities and private landlords; competition; regulations and consumer concerns regarding privacy, digital services, data protection and the use of artificial intelligence; a breach of our information security measures; legislative or regulatory requirements; restrictions on out-of-home advertising of certain products; environmental, health, safety and land use laws and regulations, as well as various actual and proposed environmental, social and governance policies, regulations and disclosure standards; the impact of the processes to sell our businesses comprising our Europe-North segment and our businesses in Latin America; the impact of the recent dispositions or agreements to dispose of the businesses in our Europe-South segment and the potential dispositions of our other international businesses, as well as other strategic transactions or acquisitions; third-party claims of intellectual property infringement, misappropriation or other violation against us or our suppliers; risks of doing business in foreign countries; fluctuations in exchange rates and currency values; volatility of our stock price; the impacts on our stock price as a result of future sales of common stock, or the perception thereof, and dilution resulting from additional capital raised through the sale of common stock or other equity-linked instruments; our ability to continue to comply with the applicable listing standards of the New York Stock Exchange; the restrictions contained in the agreements governing our indebtedness limiting our flexibility in operating our business; the effect of analyst or credit ratings downgrades; our dependence on our management team and other key individuals; continued scrutiny and changing expectations from investors, lenders, customers, government regulators, municipalities, activists and other stakeholders; and certain other factors set forth in our filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this earnings release. Other key risks are described in the section entitled "Item 1A. Risk Factors" of the Company's reports filed with the SEC, including the Company's Annual Report on Form 10-K for the year ended December 31, 2023. The Company does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

SOURCE Clear Channel Outdoor Holdings, Inc.