Q4 2023 Clear Channel Outdoor Holdings Inc Earnings Call

Operator: Ladies and gentlemen, thank you for standing by. Welcome to the Clear Channel Outdoor Holdings Inc. 2023 fourth quarter earnings conference call. If anyone should require operator assistance, please press star zero on your telephone keypad.

Ladies and gentlemen, thank you for standing by and welcome to the clear Channel Outdoor Holdings, Inc. 2023 fourth quarter earnings conference call. If anyone should require operator assistance. Please press star zero on your telephone keypad, a question and answer session will follow the formal presentation can you maybe.

Operator: A question and answer session will follow the formal presentation. You may be placed into the question queue at any time by pressing star one on your telephone keypad. 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. Please go ahead.

Placing the question queue at any time by pressing star one on your telephone keypad.

As a reminder, this conference is being recorded.

Now my pleasure to turn the call over to Eileen Mclaughlin Vice President Investor Relations. Please go ahead.

Good morning, and thank you for joining our call I'm on the call today are Scott wine, our CEO, Brian Coleman, our CFO, who will provide an overview of the 2023 fourth quarter operating performance of clear Channel Outdoor Holdings, Inc, and clear channel International BV Iraq menu.

Eileen McLaughlin: Good morning, and thank you for joining our call. On the call today are Scott Wells, our CEO, and Brian Coleman, our CFO. They will provide an overview of the 2023 fourth quarter operating performance of Clear Channel Outdoor Holdings Inc. and Clear Channel International BV. We recommend you download the earnings presentation located in the financial section of our investor website and review the presentation during this call. After an introduction and a review of our results, we'll open the line for questions, and Justin Cochran, CEO of Clear Channel UK and Europe, and David Saylor, CFO of Clear Channel Outdoor Americas, will join Scott and Brian during the Q&A portion of the call. Before we begin, I'd like to remind everyone that during this call, we may make forward-looking statements regarding the company, including statements about its future financial performance and its strategic

Download the earnings presentation located in the financial section and our Investor website and review the presentation. During this call after an introduction and a review of our results well open the line for questions and Dustin Cochrane C. E O of clear channel U K, and Europe, and David Saylor CFO of clear channel outdoor.

Our Americas will join Scott and Brian during the Q&A portion of the call before we begin I'd like to remind everyone that during this call. We may make forward looking statements regarding the company, including statements about its future financial performance and its strategic goals. All forward looking statements involve risks and <unk>.

Eileen McLaughlin: All forward-looking statements involve risks and uncertainties, and there can be no assurance that management's expectations, beliefs, or projections will be achieved or that the actual results will not differ from expectations. Please review the statements of risk contained in our earnings press release and our filings with the SEC. During today's call, we will also refer to certain measures that do not conform to generally accepted accounting principles.

Certainties and there can be no assurance that management's expectations beliefs or projections will be achieved or that the actual results will not differ from expectations.

Please review the statements of risks contained in our earnings press release, and our filings with the U S. C C.

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

Eileen McLaughlin: We provide schedules that reconcile these non-GAAP measures with our reported results on a GAAP basis as part of the earnings presentation. Also, please note that the information provided on this call speaks only to management's views as of today, February 26, 2024, and may no longer be accurate at the time of a replay. Please turn to slide four in the earnings presentation, and I will now turn the call over to Scott. Good morning, everyone, and thank you for taking the time to join us today.

Also please note that the information provided on this call speaks only to management's views as of today February 26, 2024, and may no longer be accurate at the time of a replay. Please turn to slide four in the earnings presentation, and I will now turn the call over to Scott.

Good morning, everyone and thank you for taking the time to join us today.

Scott R. Wells: We generated consolidated revenue of $623 million for the fourth quarter, excluding movements in foreign exchange rates, reflecting a 10.8% increase as compared to the prior year and exceeding our fourth quarter guidance. Our results reflect a strong performance from airports in Europe North and improving business trends in the America segment, with America returning to growth. Recapping the past year in our America segment, after a very encouraging start in the U.S., the theme for many of our clients was delayed decision making, as they waited for signs of clarity on the direction of the economy. We also saw softness in select markets, particularly in the San Francisco Bay Area, as well as in select categories, led by media and entertainment, technology, and auto.

We generated consolidated revenue of $623 million for the fourth quarter, excluding movements in foreign exchange rates, reflecting a 10, 8% increase as compared to the prior year and exceeding our fourth quarter guidance our results.

Reflect a strong performance from airports in Europe, north and improving business trends in the Americas segment with America returning to growth.

Recapping the past year in our Americas segment after a very encouraging upfront in the U S. The theme for many of our clients was delayed decision, making as they waited for signs of clarity on the direction of the economy. We also saw softness in select markets, particularly in the San Francisco Bay area as well as in select categories.

By media and entertainment technology and auto these factors combined with difficulty in fully staffing our local sales teams made for a challenging year.

Scott R. Wells: These factors, combined with difficulty in fully staffing our local sales teams, made for a challenging year. The good news is that in the latter part of the year, business started to improve, with demand picking up after Labor Day and continuing into the current quarter. We're seeing some demand improvement in California. We have shown strong growth in the verticals we've been targeting, and we've made progress in hiring and onboarding salespeople in our local market. While there is still some level of uncertainty in the market, advertisers are becoming more comfortable with making decisions, and we're continuing to see improving trends in the current quarter across key verticals and markets. Our airports team delivered a record fourth quarter and an exceptional year after a slow start driven by the investments we've made in digital, primarily related to the New York airports, but with strength across the portfolio. Advertisers are focused on premium inventory, which benefits our airports business with the strength and travel and transportation, telco, and banking, among other categories.

The good news is that in the latter part of the year business started to improve with demand picking up after labor day and continuing into the current quarter.

We're seeing some demand improvement in California, we have shown strong growth in the verticals, we've been targeting and we've made progress in hiring and Onboarding salespeople in our local markets.

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

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

Telco and banking among other categories.

Scott R. Wells: And the Europe North team continues to deliver increased revenue across our products and most of the countries in which we operate, driven in part by increased demand, the deployment of additional digital displays, and strong programmatic growth. We remain focused on delivering on our strategic roadmap, which is aimed at enhancing the profitability of our business, focusing on our higher-margin U.S. markets, and transforming into a technology-fueled visual media powerhouse reaching a growing audience. Delivering a digital media experience remains central to our investment strategy, both in terms of expanding our footprint in the U.S. and strengthening our ability to serve a greater range of advertisers and drive revenue growth. We're progressing with delivering the kind of experience advertisers expect from digital media, coupled with the mass reach and creative impact of out of home. Additionally, our investments in data and analytics and programmatic are enabling us to engage with advertisers that haven't typically invested in out of home. We're also experimenting with using AI capabilities to develop creative, increasing productivity, and allowing us to help more customers imagine their brands out of home than we could with traditional tools.

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

We remain focused on delivering on our strategic roadmap, which is aimed at enhancing the profitability of our business focusing on our higher margin U S markets and transforming into a technology fueled visual media powerhouse, reaching a growing audience.

Delivering a digital media experience remains central to our investment strategy. Both in terms of expanding our footprint in the U S and strengthening our ability to serve a greater range of advertisers and drive revenue growth. We're progressing in delivering the kind of experience advertisers expect from digital media, coupled with the mass reach and creative impact of out of home.

Additionally, our investments in data and analytics and programmatic are enabling us to engage with advertisers that haven't typically invested in out of home. We're also experimenting with using AI capabilities to develop creative increasing productivity and allowing us to help more customers imagine their brands on out of home than we can.

With traditional tools, we believe this could prove to be a growth driver over time.

Scott R. Wells: We believe this could prove to be a growth driver over time. Drilling deeper into our America growth strategy, our national sales team continues to work on penetrating new verticals and developing our client direct sales approach, and we're continuing to see early success in both pharma and CPG. Revenue in our pharma vertical doubled last year and was a large contributor to America revenue growth in 2023, due in large part to our focus on developing the insights and campaign measurement tools the pharma industry requires. This is an excellent example of the power of applied data to out of home.

Drilling deeper into our America growth strategy, our national sales team continues to work on penetrating new verticals and developing our client direct sales approach and we're continuing to see early success in both pharma and CPG.

Revenue in our pharma vertical doubled last year and was a large contributor to America revenue growth in 2023 due in large part to our focus on developing the insights and campaign measurement tools. The pharma industry requires this is an excellent example of the power of applied data the out of home and.

Scott R. Wells: Another excellent example is the progress we're making in programmatic, which had a record fourth quarter and has driven our recent success within the CPG vertical. We wouldn't have been able to make inroads into CPG, which has traditionally not been a big user of out-of-pub in the US and prefers data with its impressions, if we hadn't invested in our programmatic infrastructure. We've also started generating meaningful revenue through our new website in the U.S., and we believe these enhanced revenue streams have good growth potential over time. We're also focused on fully staffing our sales teams, where our staffing levels have stubbornly lagged our post-COVID business recovery. We've made significant progress in our onboarding capability and in strengthening our training, in line with the expansion of the solutions we offer. On the M&A front, we're continuing with the sales process of our Businesses in Europe North segment. And we have commenced the process to sell our businesses in Latin America, as well as evaluating related paths to optimize our cost structure.

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

We've also started generating meaningful revenue through our new website in the U S and we believe these enhanced revenue streams have good growth potential over time.

We're also focused on fully staffing our sales teams, where our staffing levels as stubbornly lagged our post COVID-19 business recovery, we've made significant progress in our onboarding capability and in strengthening our training in line with the expansion of the solutions we offer.

On the M&A front, we're continuing with the sales process of our businesses in Europe, North segment, and we have commenced the process to sell our businesses in Latin America, as well as evaluating related paths to optimize our cost structure. The goal is to streamline our organization to focus on our U S markets further strengthen the operating.

Scott R. Wells: The goal is to streamline our organization to focus on our US markets, further strengthen the operating leverage in our business, and improve cashflow. It's worth giving our teams currently involved in these processes a shout out for their continued strong performance despite the distraction. Turning to our forecast, full-year consolidated revenue is expected to reach between $2.2 and $2.26 billion, representing a mid-single-digit increase over last year, excluding movements and foreign exchange rates. Brian will provide a detailed overview of our guidance in a moment.

Leverage in our business and improve cash flow, it's worth giving our teams currently involved in these processes a shout out for their continued strong performance. Despite the distraction.

Turning to our forecast full year consolidated revenue is expected to reach between 2.2, and 2.2 dollars $6 billion, representing a mid single digit increase over last year, excluding movements in foreign exchange rates, Brian will provide a detailed overview of our guidance in a moment.

Scott R. Wells: In the first quarter, we're off to a good start, and our business is growing. In the Americas segment, we're seeing a better climate in the majority of our markets, including our largest markets in California, with the San Francisco Bay Area showing signs of improvement. Our largest vertical, Business Services, remains strong, as well as Amusements and Retail. And the end of the strikes has been a welcome development and is having a positive impact on the entertainment vertical in California and beyond.

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

Our largest vertical business services remains strong as well as amusements and retail and the end of the strikes has been a welcome development and is having a positive impact in the entertainment vertical in California and beyond.

Scott R. Wells: Airports continues to deliver excellent results, and the business remains strong given the premium nature of our inventory. Europe North is also off to a good start with ongoing strength in the UK and Sweden, our largest European North markets, offsetting the impact of contract losses, including a contract in Norway. So we're encouraged by the trends we're seeing and the opportunities we're pursuing to drive growth in the year ahead. Finally, before turning the call over to Brian for the financial review, I would like to thank him for his many years of service to Clear Channel. He has been instrumental in charting our financial course through the often difficult process of managing the capital structure we inherited in our separation from iHeartMedia.

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

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

Finally, before turning the call over to Brian for the financial review I would like to thank him for his many years of service to clear channel. He has been instrumental in charting our financial course through the often difficult process of managing the capital structure, we inherited separation from my Heart media. He has also contributed to our.

Scott R. Wells: He has also contributed to our strategic plan and led our finance team through many transactions, refinancing efforts, and the like. I look forward to continuing to work with him in his role as a consultant, along with our board, management team, and financial advisors, in delivering on the next stage of our plan. David Saylor, who will succeed Brian as CFO of Clear Channel on March 1, has been a proven leader overseeing the financial strategy and operations of our Americas and airports segment.

Plan and lead our finance team through many transactions refinancing efforts and alike I look forward to continuing to work with him in his role as a consultant along with our board management team and financial advisors and delivering on the next stage of our plan.

David Saylor, who will succeed Brian as CFO clear channel on March 1st has been a proven leader overseeing the financial strategy and operations of our America airports segments.

Scott R. Wells: He has also been central to our efforts to streamline our portfolio with the responsibilities he's had as head of corporate development. I believe his experience will be instrumental for us as we become a more focused, US-centric company. With that, I'll hand the call over to Brian.

He has also been central to our efforts to streamline our portfolio with the responsibilities he's had as head of corporate development.

I believe his experience will be instrumental for us as we become a more focused U S centric company with that let me hand, the call over to Brian.

Brian D. Coleman: Thank you, Scott. Good morning, everyone, and thank you for joining our call. Olive, this is my last time speaking with you in this role.

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

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

Brian D. Coleman: I strongly believe we are transitioning with a lot of positive momentum, as you will soon hear about as we discuss the company's performance and expectations. Moving on to the presentation, slide five. As a reminder, Europe South is now included in discontinued operations, and during our discussion of gap results, I'll also talk about our results excluding movements and foreign exchange rates, a non-gap measure. We believe this provides greater comparability when evaluating our performance. Direct operating expenses and SG&A expenses include restructuring and other costs that are excluded from adjusted EBITDA and segment adjusted EBITDA.

Moving on to the presentation in slide five.

As a reminder, Europe South is now included in discontinued operations and during our discussion of GAAP results. I'll also talk about our results excluding movements in foreign exchange rates a non-GAAP measure. We believe this provides greater comparability when evaluating our performance.

Direct operating expenses and SG&A expenses include restructuring and other costs that are excluded from adjusted EBITDA and segment adjusted EBITDA.

Brian D. Coleman: And the amounts I refer to are for the fourth quarter of 2023, and the percent changes are for the fourth quarter of 2023 compared to the fourth quarter of 2022, unless otherwise noted. Now on to the fourth quarter reported results. Consolidated revenue for the quarter was $632 million.

And the amounts I referred to are for the fourth quarter of 2023, and the percent changes our fourth quarter 2023 compared to the fourth quarter of 2022, unless otherwise noted.

Now onto the fourth quarter reported results.

Holiday new revenue for the quarter was $632 million.

Brian D. Coleman: A 12.4% increase, excluding movements and foreign exchange rates, consolidated revenue for the quarter was up 10.8% to $623 million. Income from continuing operations was $25 million, a decline over the prior year's income from continuing operations of $106 million. Consolidated net income of $26 million includes income from discontinued operations. Adjusted EBITDA was $190 million, up 9.2%; excluding movements and foreign exchange rates, adjusted EBITDA was up 8.1% AFFO was $73 million in the fourth quarter, up 30.2%. Excluding movements and foreign exchange rates, AFFO was up 27.3%.

12.4% increase excluding movements in foreign exchange rates consolidated revenue for the quarter was up 10, 8% to 623 million.

Income from continuing operations was 25 million a decline over the prior years income from continuing operations of 106 million.

Consolidated net income of $26 million includes income from discontinued operations.

Adjusted EBITA was 190 million up nine 2% excluding movements in foreign exchange rates adjusted EBITDA was up eight 1%.

<unk> was $73 million in the fourth quarter up 32% excluding.

Excluding movements and foreign exchange rates a F. F O was up 27, 3%.

Now onto slide six in the Americas segment fourth quarter results.

Yeah.

America revenue was $299 million up 0.5% driven by digital deployment and programmatic growth.

The business services and pharma verticals were up in the quarter, while auto and media and entertainment were down.

A majority of our markets delivered growth with the south central and southeast regions, having the strongest results.

Brian D. Coleman: Now on to slide six for the America's Segment fourth quarter results. America revenue was $299 million, up 0.5%, driven by digital deployments and programmatic growth. The business services and pharmaceutical verticals were up in the quarter, while auto and media and entertainment were down. A majority of our markets delivered growth, with the South Central and Southeast regions having the strongest results. Northern California has improved relative to earlier in the year, although it was still down in the quarter.

Northern California has improved relative to earlier in the year, although it was still down in the quarter.

Digital revenue, which accounted for 38, 2% of America revenue was up two 4% to $114 million.

National sales, which accounted for 37, 1% of America revenue.

We're up 23%.

Local sales accounted for 62, 9% of America revenue rising <unk>, 6%.

Direct operating and SG&A expenses were up slightly to $163 million.

Brian D. Coleman: Digital revenue, which accounted for 38.2% of America revenue, was up 2.4% to $114 million. National Sales, which accounted for 37.1% of America revenue, were up 0.3 percent. Local sales accounted for 62.9% of America revenue, rising 0.6%. Direct operating and SG&A expenses were up slightly to $163 million. Site lease expense was up 2.1% to $90 million, driven by lower renovation.

Site lease expense was up two 1% to $90 million driven by lower rent abatements.

This was offset by lower property taxes related to legal settlement maintenance costs and credit loss expense.

Segment, adjusted EBITDA was $136 million up 6% with a segment adjusted EBITDA margin of 45, 6%.

Please see slide seven for a review of the fourth quarter results for airports.

Airports revenue was $111 million up 44, 3%.

Revenue was up across most airports in verticals, another really strong quarter with the increase in revenue driven by increased demand and continued investment in digital infrastructure.

Banking and financial services as well as travel and transportation were among the top performing verticals in the segment.

Brian D. Coleman: This was offset by lower property taxes related to illegal settlement, maintenance costs, and credit loss expense. Segment-adjusted EBITDA was $136 million, up 0.6%, with a segment-adjusted EBITDA margin of 45.6%. Please see slide seven for a review of the fourth quarter results for airports. Airport revenue was $111 million, up 44.3%.

Digital revenue, which accounted for 65, 7% of airports revenue was up 57, 9% to $73 million.

National sales, which accounted for 58, 9% of airport revenue were up 42, 4%.

Local sales accounted for 41, 1% of airports revenue and were up 46, 9%.

Brian D. Coleman: Revenue was up across most airports and verticals, another really strong quarter, with the increase in revenue driven by increased demand and continued investment in digital infrastructure. Banking and Financial Services, as well as Travel and Transportation, were among the top performing verticals in the segment. Digital revenue, which accounted for 65.7% of airport revenue, was up 57.9% to $73 million. National sales, which accounted for 58.9% of airport revenue, were up 42.4%. Local sales accounted for 41.1% of the airport's revenue and were up 46.9%. Direct operating and SG&A expenses were up 44.8% to $81 million.

Direct operating and SG&A expenses were up 44.8% to 81 million. The increase was primarily due to a 46, 4% increase in site lease expense to $65 million driven by higher revenue as well as higher variable incentive compensation cost.

Segment adjusted EBITDA was 30 million up 42, 7% for the segment adjusted EBITA margin of 27, 1%.

Next slide eight for a review of our performance in Europe and North.

My current commentary on Europe, North is on results that have been adjusted to exclude movements in foreign exchange rates.

Europe, North revenue increased 13, 4% to $185 million due to higher revenue across all products in countries, most notably the U K and Belgium, driven by increased demand deployment of additional digital displays and new contracts.

Digital accounted for 57% of Europe, North total revenue was up 17, 9% to $105 million.

Europe, North direct operating and SG&A expenses were up 14, 5% to $135 million due to an increase in site lease expense up 12% to $62 million driven by higher revenue as well as higher property taxes and compensation costs.

Brian D. Coleman: The increase is primarily due to a 46.4% increase in site lease expense to $65 million, driven by higher revenue as well as higher variable incentive compensation costs. Segment-adjusted EBITDA was $30 million, up 42.7%, with a segment-adjusted EBITDA margin of 27.1%. Next, slide eight, is a review of our performance in Europe North. My commentary on Europe North is based on results that have been adjusted to exclude movements and foreign exchange rates. Europe North revenue increased 13.4% to $185 million due to higher revenue across all products and countries, most notably the UK and Belgium, driven by increased demand, the deployment of additional digital displays, and new contracts. Digital accounted for 57% of Europe North total revenue and was up 17.9% to $105 million. Europe North direct operating and SG&A expenses were up 14.5% to $135 million due to an increase in site lease expense of 12% to $62 million, driven by higher revenue as well as higher property taxes and compensation costs. Europe North segment adjusted EBITDA was up 13.1% to $50 million, and the segment adjusted EBITDA margin was 27.3%.

Europe North segment, adjusted EBITDA was up 13, 1% to $50 million and the segment adjusted EBITDA margin was 27, 3%.

Moving onto C C Ibs D on slide nine.

Clear channel International BV or C. C. IBD, an indirect wholly owned subsidiary of the company and the issuer of our six and five eight senior secured notes. Due 2025 includes the operations of our Europe, North and Europe, South segments as well as Singapore, which is included in other the.

The financial results of Singapore are immaterial to the results of Cc IBD.

And the revenue and the scale of the company's business in Singapore will be further reduced in 2024 due to the loss of a contract which terminated on December 31 2023.

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

C C IBD results from continuing operations for the fourth quarter of 2023 as compared to the same period of 2022 are as follows.

Brian D. Coleman: Moving on to CCIBV on slide 9. Clear Channel International, BV, or CCI BV, an indirect, wholly-owned subsidiary of the company and the issuer of our six and five-eighths senior secured notes due 2025, includes the operations of our Europe North and Europe South segments, as well as Singapore, which is included in others. The financial results of Singapore are immaterial to the results of CCIBV.

C C IBD revenue increased 17% to $198 million from $169 million.

Excluding the 7 million impact of movements in foreign exchange C. C. IBD revenue increased 12, 6% driven by higher revenue in our Europe North segment as I just mentioned.

Singapore represented approximately 3% of CCI BV revenue from continuing operations for the three months ended December 31 2023.

Brian D. Coleman: And the revenue and the scale of the company's business in Singapore will be further reduced in 2024 due to the loss of a contract which terminated on December 31st, 2023. As the businesses in Europe's South Segment are considered discontinued operations, the results of these businesses are now reported as a separate component of consolidated net income in the CCIBV Consolidated Statement of Income for all periods presented and are excluded from the discussion below. CCIBV results from continuing operations for the fourth quarter of 2023 as compared to the same period of 2022 are as follows. CCIBV revenue increased 17% to $198 million from $169 million, excluding the $7 million impact of movements in foreign exchange. CCIBV revenue increased 12.6%, driven by higher revenue in our Europe North segment, as I just mentioned.

C. G I b. The operating income was 31 million compared to 22 million in the same period of 2022.

Now moving to slide 10, and a review of capital expenditures.

Capex totaled $48 million in the fourth quarter, a decrease of 4 million over the prior year due to timing and a reduction in spend.

Now onto slide 11.

Our liquidity was 486 million as of December 31, 2023 down $45 million compared to liquidity at the end of the third quarter due to a reduction in cash slightly offset by an increase in availability under the credit facilities.

During the fourth quarter cash and cash equivalents decreased by 62 million to $252 million driven by interest payments capital expenditures.

Cash delivered to the buyer related to the sale of our business in France and changes in working capital.

Brian D. Coleman: Singapore represented approximately 3% of CCIBV revenue from continuing operations for the three months ended December 31st, 2023. CCIBV operating income was $31 million, compared to $22 million in the same period of 2022. Now moving to slide 10, and our review of capital expenditures. CapEx totaled $48 million in the fourth quarter, a decrease of $4 million over the prior year due to timing and a reduction in spend. Now on slide 11. Our liquidity was $486 million as of December 31, 2023, down $45 million compared to liquidity at the end of the third quarter due to a reduction in cash slightly offset by an increase in availability under the credit facility. During the fourth quarter, cash and cash equivalents decreased by $62 million to $252 million, driven by interest payments.

Our debt was $5 6 billion as of December 31, 2023, basically flat September 30th 2023.

Cash paid for interest on debt was $121 million during the fourth quarter, a $3 million decrease compared to the same period in the prior year, primarily due to differences in the timing of interest payments, partially offset by an increase in interest rates.

Our weighted average cost of debt was seven 5%.

And as of December 31, 2023 are first lien leverage ratio was 554 times.

Credit agreement Covenant threshold of seven one times.

Now onto slide 12, and our guidance for the first quarter and the full year of 2024.

All consolidated guidance in Europe, North guidance excludes movements in foreign exchange rates with the exception of capital expenditures and cash interest payments.

For the first quarter, we believe our consolidated revenue will be between 465 and $490 million, representing a 6% to 12% increase over the first quarter of 2023.

Brian D. Coleman: Capital Expenditures, Cash Delivered to the Buyer Related to the Sale of our Business in France, and Changes in Working Capital. Our debt was $5.6 billion as of December 31st, 2023, basically flat as of September 30th, 2023. Cash paid for interest on debt was $121 million during the fourth quarter, a $3 million decrease compared to the same period in the prior year, primarily due to differences in the timing of interest payments, partially offset by an increase in interest rates.

We expect America revenue to be between 245 and $255 million in airports revenue is expected to be between 74 and $79 million.

Europe, North revenue is expected to be between $130 million to $140 million.

Moving onto our full year guidance.

Brian D. Coleman: Our weighted average cost of debt was 7.5%, and as of December 31, 2023, our first lean leverage ratio was 5.54 times. The credit agreement covenant threshold is 7.1 times.

We expect consolidated revenue to be between 2.2, and 2.26 billion, representing 326% increase over 2023.

America revenues expected to be between 1.135 and 1.165 billing at.

Brian D. Coleman: Now on to slide 12 and our guidance for the first quarter and the full year of 2024. All consolidated guidance and Europe-North guidance excludes movements in foreign exchange rates, with the exception of capital expenditures and cash interest payments. For the first quarter, we believe our consolidated revenue will be between $465 and $490 million, representing a 6% to 12% increase over the first quarter of 2023. We expect America revenue to be between $245 million and $255 million, and airport revenue is expected to be between $74 million and $79 million. Europe North revenue is expected to be between $130,000 and $140,000.

Airports revenues expected to be between 345 and $360 million.

Europe, North revenues expected to be between 635 and $655 million.

On a consolidated basis, we expect adjusted EBITDA to be between 550 and 585 million.

<unk> guidance is $75 million to $100 million.

Capital expenditures are expected to be in the range of 130 and $150 million with a continued focus on investing in our digital footprint in the U S and lower corporate Capex.

Additionally, we anticipate having cash interest payment obligations of $448 million in 2024 and $408 million in 2025 do.

The expected increase in cash interest payments in 'twenty 'twenty four is largely due to the differences in timing of interest payments between the recently issued C. C O H, 9% senior secured notes and refinance portion of the term loan.

Brian D. Coleman: Moving on to our full year guide, we expect consolidated revenue to be between $2.2 and $2.26 billion, representing a 3% to 6% increase over 2023. America revenue is expected to be between $1.135 and $1.165 billion, and airport revenues are expected to be between $345 and $360 million.

We expect $100 million of cash interest expense to be paid in the first quarter.

This guidance assumes that we do not refinanced boring for additional debt.

And finally <unk>.

Before I turn the call back to Scott for his closing remarks, I'd like to thank him for his kind words, and camaraderie and support over the years as well as extend my appreciation to the entire clear channel team for their hard work and dedication to pursuing our vision.

Brian D. Coleman: Europe North revenues are expected to be between $635 and $655. On a consolidated basis, we expect Adjusted EBITDA to be between $550 and $585 million. AFFL guidance is between $75 to $100 million. Capital expenditures are expected to be in the range of $130 and $150 million with a continued focus on investing in our digital footprint in the U.S. and lower corporate CapEx. Additionally, we anticipate having cash interest payment obligations of $448 million in 2024 and $408 million in 2025. The expected increase in cash interest payments in 2024 is largely due to the differences in timing of interest payments between the recently issued CCOH 9% senior secured notes and the refinance portion of the term law. We expect $100 million of cash interest expense to be paid in the first quarter.

We've made substantial progress in pursuing our objectives and I believe will continue to deliver in the year ahead and beyond.

I'd also like to congratulate Dave I'm, assuming the CFO position.

I've worked with Dave for about 10 years more closely since the separation from my heart media and I know he will do a great job in his expanded role with the company. This is a smooth transition and I look forward to continuing to work with Scott and Dave as well as our board and advisors as a consultant as we continue to focus on moving our plan forward and with that.

Let me turn the call back to Scott.

Thanks, Brian looking ahead, we remain focused on delivering profitable growth strengthening our balance sheet and further demonstrating the operating leverage of our business. These efforts all reflect our priority to reduce leverage over the next few years as our guidance indicates we expect we will see.

And America after a lackluster 2023.

We believe the recovery in some key markets plus execution of our specific growth plans should provide that acceleration.

We're committed to exiting Europe, and Latin America at values consistent with the quality of these assets as we streamline our business and concentrate on our higher margin U S based assets.

Brian D. Coleman: And finally, before I turn the call back to Scott for his closing remarks, I'd like to thank him for his kind words and his camaraderie and support over the years, as well as extend my appreciation to the entire Clear Channel team for their hard work and dedication to pursuing our vision. We've made substantial progress in pursuing our objectives, and I believe we'll continue to deliver in the year ahead and beyond. I'd also like to congratulate Dave on assuming the CFO position. I've worked with Dave for about 10 years, more closely since the separation from iHeartMedia, and I know he will do a great job in his expanded role with the company.

The work we've done already to strengthen our financial performance in Europe, North puts us in a position of strength from which to work.

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

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

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

Yeah.

Before we begin the Q&A this morning, Brian home and would like to make a quick statement someone move directly into the Q&A. Thank you.

Thanks, Kevin This morning, we issued a press release announcing our refinancing transaction whereby the company intends to issue new senior secured notes to repay a portion of the company's term loan b facility and to extend the maturity of the remainder of the facility.

Brian D. Coleman: This is a smooth transition, and I look forward to continuing to work with Scott and Dave, as well as our board and advisors as a consultant, as we continue to focus on moving our plan forward. And with that, let me turn the call back to Scott. Thanks, Brian.

Please note.

At this time, we cannot comment further on these transactions.

Scott R. Wells: Looking ahead, we remain focused on delivering profitable growth, strengthening our balance sheet, and further demonstrating the operating leverage of our business. These efforts all reflect our priority to reduce leverage over the next few years. As our guidance indicates, we expect we will see growth in America after a lackluster 2023. We believe the recovery in some key markets, plus execution of our specific growth plans, should provide that acceleration. We're committed to exiting Europe and Latin America at values consistent with the quality of these assets as we streamline our business and concentrate on our higher-margin, U.S.-based assets. The work we've done already to strengthen our financial performance in Europe North puts us in a position of strength from which to work. As this is an active time for both processes, we will provide updates as and when we are able. Additionally, I would like to express my gratitude for all the work our company-wide team is doing.

Additionally, while the company still plans to present at J P. Morgan 2024, global high yield and leveraged Finance conference on February 27, 2024, the company no longer plans to make available on its investor website, a webcast or a replay of this presentation.

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

Thank you well now be conducting a question and answer session if you'd like to be placed the question queue. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from a Q1 moment. Please while we poll for questions our first.

Question today is coming from Kevin Mcveigh from Morgan Stanley. Your line is now live.

Hey, guys. Thanks for taking my questions just had a couple I was curious if you hit the midpoint of the Americas revenue guide should.

Should we see operating leverage flow through and see margin expansion.

Yeah, I think I think as we continue to see revenue growth you should expect to expect to see margin expansion in.

Scott R. Wells: We're making good progress, operationally and financially, as we continue our disciplined pursuit of cash flow growth. Now, I turn the call over to the operator, and Justin Cochran and Dave Saylor will join us on the call. Before we begin the Q&A this morning, Brian Coleman would like to make a quick statement, then we'll move directly into the Q&A. Thanks, Kevin.

In the business I don't know David if you have anything additional AD, but I think that's what where we're kind of seeing and forecasting.

I think that's correct I mean when.

And when you think about our margins for our Americas business as you get higher revenue you will get a little bit higher flow through.

Last dollar coming in is it's definitely more advantageous in that first Atlas, So youll see slight margin improvement on that.

Brian D. Coleman: This morning, we issued a press release announcing a refinancing transaction whereby the company intends to issue new senior secured notes to repay a portion of the company's Term Loan B facility and to extend the maturity of the remainder of the facility. Please note that at this time, we cannot comment further on these transactions. Additionally, while the company still plans to present at J.P. Morgan's 2024 Global High Yield and Leveraged Finance Conference on February 27, 2024, the company no longer plans to make available on its investor website a webcast or a replay of its presentation.

Great. Thanks, and then secondly, you airports are performing incredibly well recently.

Could you discuss some of the growth drivers and how much of an impact general ridership trends have over digital conversions and then just budget share shift.

Yes, Cameron I'll I'll take that one.

So I think theres, a theres a number of things going on with airports I mean, obviously, we secured the New York, New Jersey Port Authority.

During COVID-19 so in in the early part of 2020, we were negotiating that we started operating at in 2021.

And we completed build outs that we're we're lapping we're in the process of lapping in the number of the airports most notably.

Operator: Now I will turn the call back up to the operator for Q&A. Thank you. Thank you, and I'll be conducting a question and answer session. If you'd like to be placed in the question queue, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue.

Terminal a came online at the beginning of 2023 Timberland Newark came online at the beginning of 2023, and so Q4 would have been the first lap of that important new inventory.

And so I think I think there is that contract effects.

Operator: One moment, please, while we poll for questions. Our first question today is coming from Cameron McVeigh from Morgan Stanley. Your line is now live. Hey, guys, thanks for taking my questions. I just had a couple.

The growth in our overall portfolio, we have the we have the kind of extraordinary growth that we're lapping because of the build outs in New York.

But the overall portfolio has performed very strongly as well and that definitely correlates with the strong air travel and I think it also correlates with.

Scott R. Wells: I was curious, if we hit the midpoint of the America's Revenue Guide, should we see operating leverage flow through and see margin expansion? Yeah, I think I think as we continue to see revenue growth, you should expect to see margin expansion in the business. I don't know, Dave, if you have anything additional to add, but I think that's what we're kind of seeing. You know, I think that's correct.

The market trend toward really high quality really well defined.

Audience delivery.

And we've seen that in the America business.

At the Super premium end of that of that that spectrum. So there theres a lot of factors going into I guess, the last thing I'd I'd give a call out it's not just the large advertisers. The local teams have been doing really well and the local teams in conjunction with our roadside local teams as well we crack the code on.

Scott R. Wells: I mean, when you think about our margins for America's business, as you get higher revenue, you will get a little bit higher flow through, you know, that last dollar coming in is definitely more advantageous than that first dollar. So you'll see slight margin improvement on, Great, thanks. And then secondly, you know, airports have been performing incredibly well recently. Could you discuss some of the growth drivers and how much of an impact general ridership trends have over digital conversions and then just the budget share shift? Yeah, Cameron, I'll take that one.

Ross selling between those businesses a couple of years ago and that has only accelerated and we're starting to do some pretty innovative things in terms of thinking about.

Almost a sponsorship type of model.

And in different in different geographies, particularly where we have roadside and <unk>.

Airport inventory, that's pretty interesting. So we're doing some pretty innovative things in terms of how we are selling as well I think I think those are all the factors.

Makes sense. Thank you.

Thank you. The next question today is coming from Steven Koh Hall from Wells Fargo. Your line is now live.

Scott R. Wells: So I think there's a number of things going on with airports. I mean, obviously, we secured the New York, New Jersey Port Authority during Covid. So in the early part of 2020, we were negotiating that. We started operating it in twenty twenty one.

Thank you Scott maybe just follow up on Cameron's first question and put a finer point on it I think in Americas in 'twenty. Three you had some site lease expense that increased somewhat idiosyncratic way just trying to understand if there is anything in Americas. That's also kind of one off and.

Scott R. Wells: And we completed build outs that we're lapping. We're in the process of lapping in the number of airports, most notably Terminal A came online at the beginning of twenty twenty three. Terminal A at Newark came online at the beginning of twenty twenty three.

2024, I think typically you've talked about the business is having about 50% fixed costs.

So as we think about revenue growth in Americas in 2020 for any good way to think about the fixed versus variable cost.

Scott R. Wells: And so Q4 would have been the first lap of that important new inventory. And so I think I think there's that contract effect. You know, the growth in our overall portfolio; we have the kind of extraordinary growth that we're lapping because of the build outs in New York. But the overall portfolio is performing very strongly as well. And that definitely correlates with the strong air travel. And I think it also correlates with the market trend toward really high quality, really well defined audience delivery.

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

And then finally is there any good way to think about EBITDA ranges for either Europe, north or Lat am since those are now valuation bases and divestiture scenarios. Thank you.

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

Scott R. Wells: We've seen that in the America business at the super premium end of that, of that, that spectrum. So there are a lot of factors going into it. I guess the last thing I'd give a call out is that it's not just the large advertisers; the local teams have been doing really well. And the local teams, in conjunction with our roadside local teams, as well, we cracked the code on cross selling between those businesses a couple of years ago, and that's only accelerated.

On the one offs.

I do think we are finally getting to a place where we're going to have a pretty clean year in America.

We have lapped that slightly increase.

I'm going to let Dave speak to where we are relative to relative to onetime abatements, but those largely washed out in the case of 2023, there may be a couple of things still lurking out there, but nothing nothing that large Dave do you want to talk for just a second about the operating leverage yeah, absolutely from an American.

Scott R. Wells: And we're starting to do some pretty innovative things in terms of thinking about, you know, almost a sponsorship type of model in different geographies, particularly where we have roadside and airport inventory. That's pretty interesting. So we're doing some pretty innovative things in terms of how we're selling as well. I think I think those are all the factors. Makes sense.

Standpoint, like the large contract that we have talked about that has lagged. So as we get into 2024, I mean, you'll have a little things here and there, but it was really in a structurally move your cost structure from a site lease standpoint from some abatements from an from an airport standpoint, that's a little bit different those are still kind of trickling in so when we're talking.

Scott R. Wells: Thank you. Thank you. The next question today is coming from Steven Cahall from Wells Fargo. Your line is now live.

[noise] about airports those margins will be slightly elevated they were in 2023 and they will probably began in 2024 and then I'll, we'll expect those to kind of.

Scott R. Wells: Thank you, Scott. Maybe I should just follow up on Cameron's first question and put a fighter point on it. I think in Americas in 23, you had some site lease expense that increased somewhat idiosyncratically. Just trying to understand if there's anything in America that's also kind of one-off in 2024. I think typically you've talked about the business as having about 50% fixed costs. So as we think about revenue growth in the Americas in 2024, any good way to think about fixed versus variable costs? And then also, I think you talked about cost reductions or cost optimization that you're looking at in the press release. Could you provide a little more color as to where we might see those? Is this either in airports or Americas?

The cycle out throughout 2024, and then that that period will be over from my site lease standpoint for airports on abatements.

Thanks, Dave and then the second question was around cost optimization and I do think the principal cost optimization youll see over the next 12 or 18 months with us.

Probably more towards the latter part of that that window, because it'll it'll take time as you as you unwind.

But it's going to be related to corporate overhead related to the divestitures, we're talking about and we've discussed before at least $30 million of savings. There's nothing we've seen that causes us to think that's not a good.

Scott R. Wells: Is this proactively taking out some of the corporate costs as you move towards the divestitures? And then, finally, is there any good way to think about EBITDA ranges for either Europe North or LATAM since those are now valuation bases and divestiture scenarios? Thank you. Okay, Steve, I'm going to try to get all of these, but I'm sure you kept a list in case we miss any of them on the one off.

A good a good sort of ZIP code to speak to on that and then in terms of the guide on Europe, North and Latam.

Because of everything that's in flight.

I don't think those are numbers, we're going to we're going to give at this point, but.

But if you look at the scale of what those businesses did I mean, you've got a nice fresh 12 months.

Scott R. Wells: I do think we are finally getting to a place where we're going to have a pretty clean year in America. We have lapped that site lease increase. I'm going to let Dave speak to where we are relative to one-time abatements, but those largely washed out in the case of 2023. There may be a couple things still lurking out there, but nothing that large.

In the K and Hugh you presume that their growth is.

You know Europe is going to actually revert a little bit I think relative to what we saw in 2023 Latam.

The 2023 growth, maybe a little a little closer to what we see but those are not those are not things.

David Saylor: Dave, do you want to talk for just a second about operating leverage? Yeah, absolutely. From an American standpoint, the large contract that we have talked about has already expired. As we get into 2024, you'll have little things here and there, but I don't think anything's really going to structurally move your cost structure from a site lease standpoint, from abatement. From an airport standpoint, that's a little bit different. Those are still kind of trickling in. So when we're talking about airports, those margins will be slightly elevated. They were in 2023, and they will probably be again in 2024.

It just with with the.

The experience of moving things to disc ops and everything like that the guides becomes so complicated when you start getting down into the sub segments. We just didn't think.

That that was that that was appropriate.

At some point in the not too distant future a it'll be a much.

Simpler business to talk about.

So I don't know, Dave or Brian if you have anything you'd add on.

The Europe, north or Latam no no I think that covers it.

Great.

Yeah.

Thanks, Steve.

Thank you next question is coming from Jonathan <unk> from TD calendar lines at ally.

Thank you good morning, Johnson on for Dan.

My first one is on national self into competition ahead in American airports, it was better than for Q last year. So.

Scott R. Wells: Then I will expect those to kind of..., cycle out throughout 2024, and then that period will be over from a slightly standpoint for airports on. Thanks, Dave. And then the second question was around cost optimization. And I do think the principal cost optimization you'll see over the next 12 or 18 months with us, probably more toward the latter part of that window, because it'll take time as you unwind. But it's going to be related to corporate overhead, related to the divestitures we're talking about, and we've discussed before at least $30 million in savings. There's nothing we've seen that causes us to think that's not a good, a good, a good sort of zip code to speak to on that.

Given that there were some concerns with national.

Draw 23 did you see Nashville pick up towards the end of <unk> or towards the beginning.

That triangles ongoing in 24, so far.

Thanks, Jonathan Yeah.

You know if you've listened to a number of calls you know I always bristle a little at national because it really correlates more to the channel that it's coming through the large advertisers than that it's truly national the way.

You know the syndicated bill.

Business in.

Our radio or television works.

But for that for that large advertiser segment we.

Scott R. Wells: And then, in terms of the guide to Europe North and LATAM, because of everything that's in flight, I don't think those are numbers we're going to give at this point. But if you look at the scale of what those businesses did, I mean, you've got a nice fresh 12 months in the K, and you presume that their growth is, Europe is going to actually revert a little bit, I think relative to what we saw in 2023. LATAM, you know, the 2023 growth, maybe a little closer to what we see, but those aren't the things that we're dealing with, it just with the experience of moving things to disc ops and everything like that, the guides become so complicated when you start getting down into the sub segments, we just didn't think that that was uh, that that was appropriate. You know, at some point in the not-too- North.

We definitely saw some improvement towards the beginning of Q4 and it is correlated with the advertisers that were using the programmatic.

Toolset, the large advertisers using the programmatic toolset is where is where we really saw that first and we have seen that continue into this year, but it's it's really not national is kind of a poor description of it it's really not.

I think one of our one of our partners describes national as airports, plus New York and L. A.

Which you know that doesn't really that doesn't really do national.

Way that I think other other segments think of it but the stuff that we call National is is performing better than it was and.

Seems like it seems like it's on a good trend line.

Got it so on that note can we also expect let's say the typical seasonality of every quarter building on each other or because there is there perhaps a catch up on national.

Scott R. Wells: No, no, I think that Great. Thanks, Steve. Thank you. Next question is coming from Jonathan Naborette from TD Cowen. Your line is now live. Thank you. Good morning, this is Jonathan on behalf of Lance.

Will occur sometime during the first and second quarter that can throw off that typical seasonality.

Scott R. Wells: My first one is on national sales, and the competition ahead in American airports was better than 4Q last year. So given that there were some concerns with national sales throughout 23, did you see national pickup towards the end of 4Q or towards the beginning? And is that trend also ongoing in 24 so far? Thanks, Jonathan.

Yeah, I'm not 100% sure how to think about the idea of a catch up.

Because this is you know our numbers are comprised of hundreds of campaigns.

And I don't think I don't think most marketers.

Wake up focused on okay, I gotta catch up the outdoor guys.

Scott R. Wells: Yeah, um, you know, if you've listened to a number of calls, you know, I always bristle a little at "national" because it really correlates more to the channel that it's coming through the large advertisers than that it's truly national the way, you know, the syndicated business in, you know, radio or television works. But for that large advertiser segment, we definitely saw some improvement toward the beginning of Q And it correlated with the advertisers that were using the programmatic toolset. The large advertisers using the programmatic toolset were where we really saw that first, and we have seen that continue into this year. But it's really not – national is kind of a poor description of it. It's really not – I think one of our partners describes national as airports plus New York and L.A., which doesn't really describe national the way that I think other segments think of it.

I think what you what you ought to think about is last year was a very choppy year, we had a really tough January and February.

March and April were better May and June a little less good.

Q3 was was pretty tough throughout and then as you got into September.

It started to get better and Q4 was it was a pretty strong quarter. So as you think about.

You know how the business. It just was very choppy last year and I am hoping that we don't have.

The same especially not the kind of hey.

Hey, you know, we're gonna checkout from June to Labor day dynamic that that a lot of those large advertisers had but it's not it's not for me to say precisely what theyre going to do when we think about our guide we don't really build it at the advertiser level, we build it a lot more looking at the market.

Scott R. Wells: But the stuff that we call national is performing better than it was and seems like it's on a good trend line. Got it. So on that note, can we also expect, let's say, the typical seasonality of every quarter building on each other, or is there perhaps a catch-up on national that will occur sometime during the first or second quarter that can throw off that typical seasonality? Yeah, I'm not 100% sure how to think about the idea of a catch-up. Because this is, you know, our numbers are comprised of hundreds of campaigns. And I don't think, I don't think most marketers wake up focused on, okay, I got to catch up with the outdoor guys. I think what you ought to think about is last year was a very choppy year. We had a really tough January and February. March and April were better months.

At the inventory position.

Looking at what we're seeing in the local as well as the national what's happening with our principal.

Client investment in terms of key accounts, there's a whole lot of there's a whole lot of things that go into it we don't really just build it off of a national court forecast local forecast I don't know, Dave if there's more color you'd want to provide on how we get to that guide yeah, and I don't I mean, you covered most of it the other area I'd also talked about is just the geography of it when you think about.

Scott R. Wells: May and June were a little less good. You know, Q3 was pretty tough throughout. And then as you got into September, it started to get better.

Where we were last year and how Scott was talking about how the year kind of laid out certain parts of the country, obviously were weaker in certain parts of a stronger so as we get into this year that all kind of plays into when we're setting up our guide on what parts of the country, where will you see a little more strength and as we're getting.

Scott R. Wells: And Q4 was a pretty strong quarter. So as you think about, you know, how the business was just very choppy last year. And I'm hoping that we don't have the same, especially not the kind of, hey, you know, we're going to check out from June to Labor Day dynamic that a lot of those large advertisers had. But, you know, it's not for me to say precisely what they're going to do when we think about our guide. We don't really build it at the advertiser level.

Through the early parts of 2024, so any of that debt.

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

Got it. Thank you and my last one is just on the litigation payment.

So in the 10-K that 13 million was paid in October and the balance is expected to be sometime I think in most of the payments throughout 'twenty four and.

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

Can we expect let's say, an even distribution drove four quarters or is there perhaps.

A quarter that would be heavier oops himself deaths.

<unk>.

I think I think all we've said is that those payments will be made before the end of 2024.

I think we probably.

Haven't expanded upon that.

Thank you. Your next question is anything out of them.

Thanks Scott.

Our next question is coming from Aaron Watts from Deutsche Bank. Your line is now live.

David Saylor: The other area I'd also talked about was just the geography of it. When you think about where we were last year and how Scott was talking about how the year kind of laid out, certain parts of the country were obviously weaker, and certain parts were stronger. So as we get into this year, that all kind of plays into when we're setting up our guide on what parts of the country we see where we see a little more strength and as we're getting into the early parts of 2024.

Hey, everyone. Thanks for having me on Brian I will certainly Miss Peppering, you with questions on these calls and our comprehensive even if you won't miss that quite as much.

So my question is for me.

Of course.

A couple of questions for me I guess first just to clarify in your remarks around margins.

Given the moving parts you highlighted it should we should it be a relatively stable walk this year as we head to that 25, 26% context implied by your guide or what those factors are the Choppiness last year caused some movement on a quarterly basis.

David Saylor: So I mean, I don't look at it as kind of like a bounce back; it's just more where does it get stronger, you know, across certain parts of the country and even certain verticals as well. Got it. Thank you. And my last one is just on the litigation payment.

I mean definitely from a quarterly standpoint, our margins will be different.

In certain quarters, probably a little bit lower earlier in the year and they get stronger towards the end of the year as just because you have more revenue in the second half.

Scott R. Wells: So in the 10K, that $13 million was paid in October, and the balance is expected to be sometime, or I think in most of our payments, throughout the year. And can we expect, let's say, an even distribution throughout four quarters, or is there perhaps a quarter that would be heavier in terms of that $13 million? I think I think all we've said is that those payments will be made before the end of 2024. I think we probably will, I haven't explained it. Thank you. The next question is... Anything else?

And that's going to increase your margins, but I think that the 25 youre talking about probably probably makes sense, obviously it breaks out different across our segments across America airports and in Europe, but overall I think that's fair I mean, youll see a little bit as I mentioned earlier in the call you are still going to be getting relief on the airport segment.

So that'll be slightly elevated in 'twenty, four and I think that will settle down as you get.

Scott R. Wells: Thanks, John. Our next question is coming from Aaron Watts from Deutsche Bank. Your line is now live. Hey, everyone. Thanks for having me on.

Past 2024 from from us in that cycle of release.

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

Brian D. Coleman: Brian, I will certainly miss peppering you with questions on these calls and our conferences, even if you won't miss that quite as much. So, a couple questions for me. Yeah, of course. A couple questions for me, I guess, first, just to clarify your remarks about the margins. Given the moving parts you highlighted, should it be a relatively stable walk this year as we head to that 25-26% context implied by your guide, or will those factors or the choppiness last year cause some movement on a quarterly basis? I mean, definitely, from a quarterly standpoint, our margins will be different in certain quarters, probably a little bit lower earlier in the year, and they get stronger towards the end of the year just because you have more revenue That's going to increase your margins, but I think that 25 you're talking about probably makes sense.

I would think.

Of them too much differently than what we've seen in the past and that is fairly minimal cash taxes, mostly related to international and local sales and local taxes in the U S.

We have an election that we make that that minimizes our federal income tax obligations.

We would expect that now all that being said era and that doesn't include potential asset sales. We have made the statement that we believe that our European north sales would not attract.

Any material cash taxes now that of course is dependent on how those sales are conducted.

As of right now I wouldn't see any kind of significant change in our cash.

Brian D. Coleman: Obviously, it breaks out differently across our segments, across America, airports, and Europe. But overall, I think that's fair. I mean, you'll see a little bit, as I mentioned earlier in the call, you're still going to be getting relief on the airport segment. So that'll be slightly elevated in 24. And I think that will settle down as we get, you know, past 2024 from from that cycle of release. Okay, helpful. And then on the housekeeping side, I apologize if I missed this, but how should we be thinking about cash taxes for the? I wouldn't think of them too much differently than what we've seen in the past, and that is fairly minimal cash taxes, mostly related to international and local sales and local taxes in the U.S. We have an election that we make that minimizes our federal income tax obligations, and we would expect that. Now, all that being said We have made the statement that we believe that our European North sales would not attract any material cash taxes.

Cash tax payments on a range.

Okay, Perfect and then last one for me and I. Appreciate the time, you recently announced some changes to your board.

I'm just curious if that signals any change in the day to day operating modus for the business or and or kind of the future strategic direction for clear channel beyond the American centric focus you've been highlighting thank you.

Yeah.

Thanks, Erin I don't think that I mean look our board.

Is.

This is a challenging board and having a good mix of perspectives on the board is incredibly valuable and I think that's how to read what maneuvering we have done.

This is a business, where because of our capital structure and because of where we live.

In the in the spectrum of media.

You need to be able to think fast and slow and you need to have a.

Long term plan.

Brian D. Coleman: Now, that, of course, is dependent on how those sales are conducted. But as of right now, I wouldn't see any kind of significant change in our cash tax payments. Okay, perfect. And then last one for me, and I appreciate the time.

Coupled with a lot of agility to be able to go and do things like what we're doing with the refinancing that we're working on right now touch wood, we will see as that as that process works out and so it's important to have fresh perspective on the board and it's important to have people who understand.

Scott R. Wells: You recently announced some changes to your board. I'm curious if that signals any change in the day-to-day operating motives for the business, or any kind of future strategic direction for Clear Channel beyond the America-centric focus you've been highlighting. Thank you.

The world in which you're operating and I think that's the sum total of our of what we're doing with the board.

Okay. Thanks, guys.

Thank you. Your next question today is coming from Richard Choe from Jpmorgan. Your line is now live.

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

Hi, I just wanted to follow up on the Americas strength for the first quarter, how much of that is coming from the digital programmatic trends versus maybe just.

Just kind of the rebound you talked about with regions in terms of like Northern California and L. A.

Yeah.

Thanks Richard.

The the piece parts are all are all pretty intertwined.

I mean, when you think about the first quarter that we had last year.

The challenge was actually less in America than it was in airports, particularly the early part of the quarter.

Scott R. Wells: And so it's important to have fresh perspective on the board, and it's important to have people who understand the world in which you're operating. And I think that's the sum total of what we're doing with the board. Thanks, guys. Thank you. The next question today is coming from Richard Cho from JP Morgan. Your line is now live.

But no no part of the business had a great start to last year, and so coming out of the gate strong.

Is is very very helpful.

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

Scott R. Wells: Hi, I just wanted to follow up on America's Strengths for the First Quarter and how much of that is... and Digital Programmatic Trends. The rebound he talked about.

So it's not it's not just that.

Scott R. Wells: Thanks, Richard. You know, the piece parts are all pretty intertwined. I mean, when you think about the first quarter that we had last year, the challenge was actually less in America than it was in airports, particularly the early part of the quarter, um, But no part of the business had a great start last year, and so coming out of the gate strong is very, very helpful. Programmatic is definitely strong. But interestingly, last year's first quarter, programmatic was actually quite strong as well.

I do think that some of the development work we've done on some of our emerging verticals, we have a couple of scale a.

New clients that we brought in directly that are coming online in Q1. So there's a there's a number of things contributing to it.

And you know just frankly getting passed where we first started seeing trouble in in northern California in the latter part of 2022.

Scott R. Wells: So it's not just that. I do think that some of the development work we've done on some of our emerging verticals, and we have a couple of large new clients that we brought in directly that are coming online in Q1. So there's a number of things contributing to it, and just frankly, getting past where we first started seeing trouble in Northern California in the latter part of 2022, really manifesting in the beginning of 2023. So we're lapping that, and our numbers are not so large that that doesn't have an effect on it. So I think it's kind of all of the above. I wish it was a simple thing, and I'd go do a lot more of that simple thing.

You know really manifesting in the beginning of 2023, so we're lapping that and you know our numbers.

Our not so large that that doesn't have an effect on it. So I think it's it's it's kind of it's kind of all of the above I wish. It was a simple a simple thing and I'd go do a lot more of that simple thing, but it's the combination of a number of a number of factors.

And you mentioned pharma really kind of thing.

Scott R. Wells: But it's the combination of a number of factors. And you mentioned pharma, really, the kind of thing, a good growth driver is that www.clearchanneloutdoors.com. It is principally in America right now where we're seeing the strength of it. I think it could translate into airports, but the real sweet spot of what we're doing in pharma is for drugs that have a very broad application. And that lends itself to the roadside asset, even more so than airports, where you get more of a segmented audience that's being delivered. So I think that's the reason why it is definitely more skewed toward the road. Thank you. The next question is coming from Jim Goss from Barrington Research. Your line is now live.

So a good growth driver is that skewed to America's or airports are a little bit more or.

Does it help with both.

It is principally in America.

Right now, where we're where we're seeing the strength of it I think it could.

Translate into into airports, but the the real sweet spot of what we're doing in pharma are for drew.

Drugs that have a very broad application.

And that lends itself to the roadside asset.

Even more so than airports, where you get you get more of a a segmented audience that's being delivered.

So I think that's the.

It is it is definitely more skewed toward the roadside business.

Great. Thank you.

The next question is coming from Jim Goss from Barrington Research. Your line is now live.

Scott R. Wells: All right, thank you. I have got a couple about airports. First, the rebound in air travel seems to have come on pretty well, but it seemed to be more in terms of personal rather than business travel. So I'm wondering if that shift and mix in favor of personal versus business travel is still true. And does that impact demographics and or pricing? You know, and the strategy of the ads you'd put on? Thanks, Jim.

Alright, Thank you kind of couple about airports first.

The rebound in air travel seem to come on pretty well, but.

It seemed to be more in terms of personal rather than business travel. So I'm wondering if the if that shift in mix in favor of <unk>.

Arsenal versus business travel is still true and does that impact.

Demographics and our pricing.

You know in the strategy of the adds you had put out.

Thanks, Jim.

Scott R. Wells: You know, it's a good question, and there's a couple of things that go into it. You know, first of all, I do believe that the rebound is still more skewed to personal than business, but you have seen international travel, including international travel to Asia, start to pick up. Which oftentimes, I think one of the big trends, I've certainly seen a number of articles about this, is people bundling business trips with personal trips, you know, bringing family members along when they're going on an extended commercial trip and then It's probably not all the way back to where it was before the pandemic, but I'm not sure how well we've ever really had, or how good the metrics are that are around that.

Good question and there is.

There's a couple of things that go into it.

First of all I do believe that the rebound is still more skewed to personal.

And then business, but you have seen international.

International travel.

Including International travel Asia start to perk up.

Which oftentimes I mean, I think one of the big trends I've certainly seen a number of articles about this is people bundling business trips with personal trips, bringing family members, along when theyre going on AR and extended commercial.

Commercial trip and then tapping on a vacation.

Some of those dynamics are playing out.

But we definitely have seen business travel.

Rebound, it's probably not all the way back to where it was before pandemic, but I'm not sure how well we've ever really how how good the metrics are that are around that in terms of how that translates.

Scott R. Wells: In terms of how that translates, you know, with the buy, it depends a lot on the customer, on the client that you're talking about, the advertiser you're talking about, because we have B2B-oriented advertisers that target particular airports, particular terminals within airports, or they go after private jets, you know, FBOs. And we have B2C products and services. The thing about B2B is that oftentimes, they kind of get to double dip because they might be very focused on paying for that business traveler, which is a subset. You know, many of the people who travel for personal reasons are also business decision makers. And so you get both. So, you know, it is not a...

With the with the buy it depends a lot on the customer on the client that you're talking about the advertiser you're talking about.

Because we have b to b oriented advertisers.

That target particular airports particular terminals within airports or they go after the private jet F B O's and.

And we have b to C products and.

The thing about the B to B oftentimes, they they kind of get to double dip because they might be very focused on paying for that business traveler, which is a subset.

Many of the people who travel for personal things are also business decision makers and so and so you get both so you know it is it is not a it.

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

It is not a simple a pricing discussion.

It usually has a lot to do with you know the.

The scale that you're going for how many airports you're going for.

How deep within those airports you want to get.

There's a lot of there's a lot of factors that go into it beyond just the passenger counts and just the mix of of <unk>.

Personal versus business.

But.

Those trends are definitely helping support the great performance, we're seeing in airports I hope that answers your question at least a little bit.

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

Yeah. That's good it's good to get some thinking about it.

And there.

I was wondering too if there are any potential.

Airports up for bid.

That might be available and of interest to you and also sort of maybe on a related note.

Does the duration of the contracts.

Influence your capex decisions and strategies in those areas.

David Saylor: Yeah, Dave, you want to you want to take the CapEx and well, you can talk about the bid too. Yeah, no, I mean, from it, yeah, I mean, if it's a longer-term contract, yeah, that will definitely go into it. www. ClearChannelOutdoorHoldings.com. Across the U.S., there are airports coming up all the time.

Yeah, Dave.

Dave do you want to take the Capex could you just talk about the bid the bid two you've got visibility that yeah, no I mean from it yeah. I mean, if it's a longer term contract yeah that will definitely go into it is it gives you a longer chance to kind of monetize those assets, so and as you're doing a 10 year deal and it also depends on the size of the airport and the available inventory but.

On average Youre, probably has been a little more capex on a longer term deal then youre going to say its five years as far as contracts that are coming up I mean, when you look at the airports across.

David Saylor: So we actively pursue them; we'll look at each individual airport. Does it make sense to fit it into our portfolio? Do we think it fits the strategy of what we're trying to accomplish within our airports division? And we're definitely gonna look at them, and the ones that make sense, we're obviously gonna move forward with. And yeah, there are airports that we feel don't fit exactly into our portfolio, and we would pass on them, but we're constantly evaluating them as they come up. There's nothing material in the next 12 months in terms of renewals that we're facing.

The U S.

Theres airports coming all up all the time. So we actively pursue we will look at each individual airports does it make sense to fit into our portfolio do we think it is.

It's the strategy of what we're trying to accomplish within our airports division and we're definitely going to look at them and the ones that make sense. We're obviously going to move forward and you know that there. There is airport. So we still don't fit exactly into our portfolio and when we would pass on them.

But we are constantly evaluating them as they come up but there's nothing material in the in the next 12 months in terms of renewals that we're facing and I think one of the interesting things. We don't we don't talk about this a lot, but as our airport results have been going up our airport count has actually gone down.

Scott R. Wells: And I think one of the interesting things, we don't talk about this a lot, but as our airport results have been going up, our airport count has actually gone down because we've been focusing on airports where we have a greater network effect, airports where we have the ability to have roadside sales along with them, things along those lines. So we have been evolving the footprint of airports over the last several years and really trying to focus that capital on the places where we think there's the strongest return on investment. Okay, and maybe one final one.

Because we've been we've been focusing on.

Airports, where we have greater network effect airports, where we have the ability to have roadside sales along with them.

Things along those lines. So we have been evolving the footprint of airports over the last the last several years and really trying to focus that capital on the places where we think there's the strongest return.

Perspective.

Okay, and maybe one final one.

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

You called out the San Francisco in particular is one of those markets not necessarily for airports, but just in general that has had some challenges I'm wondering if you look at that in some of the other markets around the country that have been under pressure.

Is there a rebound potential in those markets that might have.

Have the possibility of lifting some of your domestic Billboard.

Revenue in the rates of growth.

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

I think as you as you think about.

Scott R. Wells: I think as you think about, You know, I don't think there's like a post-COVID snapback sort of scenario that you're going to see that's going to cause our numbers to just, you know, take off. I think if that were to happen, it would be because of the success we're having in some of the verticals that we're working on or because the advertisers, you know, evolve their behavior, which I don't think it's necessarily just on the back of a regional snapback, but I do think, you know, just like throughout 2023, some regional challenges were headwinds for us. They could very easily become tailwinds for us if the commercial environment in those markets gets better. And if some of the underlying challenges get addressed, which I actually think they are, particularly in Northern California, I think that you are seeing some political will being exerted and some behavior to try to drive some change in some of the dynamics that have dragged those markets down. And, you know, being a longtime bull on California, I would not bet against our friends rebounding those markets. So, but I don't think it's going to, I don't think it's going to, you know, cause us to suddenly double our guides or anything like that.

I don't think there is like a post COVID-19 snapback.

A scenario that youre going to see that's.

It's going to cause our numbers to just take off I think if if that were to happen that would be because of success. We're having in some of the verticals that we're working on.

Or because the the advertisers.

No evolved their behavior, which.

Can and does happen I don't think it's necessarily just on the back of a of a regional snapped back but I do think just like just like throughout 2023, some regional launches were headwinds for us they could very.

Easily become tailwind for us if the commercial environment in those markets gets better.

And if and if some of the underlying challenges.

Challenges get addressed which I actually think they are particularly in northern California, I think that.

You are seeing some political will.

Being exerted and and some behavior to try to drive some change in some of the dynamics that have dragged those markets down.

You know being being a longtime bowl on on California, I would not bet against.

But against our friends rebounding those those markets.

So but.

But I don't think it's going to I don't think its going to cause us to suddenly.

<unk>.

Double our guides or anything like that it's just not that it's part of a it's part of a much bigger portfolio.

Scott R. Wells: It's just not that. It's part of a much bigger portfolio. All right, thanks. And Brian, I wish you well in this transition. You've been through a lot over the past 20 years.

Alright, Thanks, and Brian wish you well in this transition you've been through a lack or over the past 20 years. So.

Brian D. Coleman: So congratulations. Success. Thank you. We've reached the end of our question and answer session. I'd like to turn the floor back over to Scott Wells for any further closing comments. Thanks, Kevin. I appreciate it. You know, just on Jim's last point, the thing that I would just point out, you know, we are a company that has our challenges on our balance sheet. And we have our challenges where the site lease goes up or things like that from time to time. But we are a company that is driven to excel and that does things right, and I view this transition from Brian to David as just a great leading indicator for everyone of our ability to manage multiple complex things at the same time.

Relations.

Success. Thank you Jim.

I appreciate it.

Thank you we reached end of our question and answer session I'd like to turn the floor back over to Scott wells for any further closing comments.

Yeah.

Thanks, Kevin I appreciate it.

Just on Jim's last point the thing that I would just point to we.

We are a company that have our challenges on our balance sheet and we have.

Our challenges were site lease goes up or things like that from time to time.

But we are a company that is driven to excel and that does things right and I view. This transition from Brian David is just a great leading indicator.

For everyone of our ability to manage multiple complex things at the same time. These two guys have done just a phenomenal job of collaborating.

Brian D. Coleman: These two guys have done a phenomenal job of collaborating and making the transition for the team go really, really well. And I want to call that to our investors' attention because it is important that our financial operations are seamless. We wouldn't be able to go to market like we are right now if we had a choppy, crazy transition going on. The fact that we were able to do this smoothly and still be in the marketplace and still be operating is a testament to the culture and the behavior of the company. So I just thought it was important to call that out. And I thank you all for your interest and look forward to updating you as we have more information as 2024 begins. Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.

And making the transition for the team go really really well and I want to call that to our investors attention because it is important that our financial operations are seamless we wouldn't be able to be going to market. Like we are right. Now if we had a choppy crazy a transition going on and the fact that we were able to do this smoothly.

<unk>.

And still be in the marketplace and still be operating is a testament to the culture and the behavior of the company. So just thought it was important to call that out and I. Thank you all for your interest and look forward to updating you as we have more information as 2024 bills.

Thank you that does conclude today's teleconference and webcast you may disconnect. Your line at this time and have a wonderful day, we thank you for your participation today.

Yeah.

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