Q4 2024 Clear Channel Outdoor Holdings Inc Earnings Call
All participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. Please press star zero on your telephone keypad. As a reminder, this conference is being recorded I will now turn the conference over to your host Eileen Mclaughlin Vice President Investor Relations. Please.
Go ahead.
Speaker Change: Good morning, and thank you for joining our call on the call today are Scott wells, our CEO and David <unk>, Our CFO, who will provide an overview of the 2020 for fourth quarter operating performance of clear Channel Outdoor Holdings, Inc, and clear channel International BV, we recommend.
Speaker Change: You download the 2020 for fourth quarter earnings presentation located in the financial information section of 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 before we begin I'd like to remind everyone.
Speaker Change: 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 uncertainties and there can be no assurance that management's expectations beliefs or projections will be achieved.
Speaker Change: Or that 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, we provided schedules that reconcile these non.
Speaker Change: non-GAAP measures with our reported results on a GAAP basis as part of the earnings presentation. When reviewing our earnings presentation. It's important to note that as of December 31, 2024, we have classified our Europe, North segment, and Latin American businesses as discontinued operations for all P.
Speaker Change: <unk> presented.
Speaker Change: Additionally, our Europe, South segment, including the business in Spain with classified as discontinued operations in 2023. The consolidated results include the American cause segment airports segment and Singapore.
Speaker Change: Also please note that the information provided on this call speaks only to management's views as of today February 24th 2025, and May no longer be accurate at the time of a replay please.
Speaker Change: See slide four in the earnings presentation, and I will now turn the call over to Scott.
Scott: Good morning, everyone and thank you for taking the time to join us today.
Scott: Our recent agreement to sell our Europe, North segment as well as the recent sale of most of our businesses in Latin America marked significant progress in the execution of our plan to optimize our portfolio and focus on our higher margin U S business.
Scott: To date, we've closed deals amounting to approximately $120 million and have agreed to sell our Europe north segment for $625 million.
Scott: We are also optimistic about our ability to divest our businesses in Spain, and Brazil, given their strong performance.
Scott: As we've said all along we believe these sales will increase optionality and reduce risk in the business and focus 100% of our efforts on driving growth in our most profitable and valuable segments. We anticipate prioritizing the use of sales proceeds after retiring the $375 million in CCI BV.
Scott: Term loans to retire the most advantageous debt in our stack as permitted in our agreements to reduce cash interest and increase <unk>.
Scott: During the fourth quarter, our Americas segment delivered record revenue of $311 million, representing an increase of four 1% driven by strength in digital and local sales, which was in line with our guidance as we previously noted throughout the year National remains somewhat choppy. However, we continued to win new business.
As a result of the investments we've been making in our technology and sales force Eric.
Scott: Airports continued to perform well in the fourth quarter with revenue, increasing four 3% to a record level of $116 million compared to a robust performance in the prior year and in line with guidance.
Scott: Airports team delivered strong results throughout the year with consistent national demand for our premium assets and record travel activity.
Scott: While the rate of growth normalized over the course of the year, we continued to see consistently strong demand.
Scott: On a consolidated basis, we generated revenue of $427 million during the fourth quarter, representing an increase of two 6%, which reflects the impact from a loss of a contract in Singapore as of December 31, 2023 <unk>.
Scott: Excluding Singapore revenue from the fourth quarter for our America in airports segments was up four 1%.
Scott: For the full year, we generated consolidated revenue of $1 505 billion, representing a 5% increase over the prior year, excluding Singapore revenue for our American airports segments was up six 6%.
Scott: Turning to 2025, we expect strength in our business to build as the year develops with healthy revenue adjusted EBITDA and <unk> growth.
Scott: Fueling our optimism we're benefiting from the more diverse revenue profile, we've been building over the past few years as we have more levers to grow our topline or.
Scott: Our roadmap for growth remains centered on expanding our digital footprint strengthening our data and analytics capabilities and strategically growing our sales force.
Scott: Building on our radar platform, we recently launched our Ccs in flight insights measurement solution, enabling advertisers to assess the impact of their out of home campaigns on store visits and gain insights into audience behaviors. While campaigns are still alive. We believe these initiatives are elevating our ability to make inroads with <unk>.
Scott: <unk> that have not been usual utilizing out of them to connect with their target audiences.
Scott: We're also seeing the benefits of our expanded sales force and vertical wise focus where we have added professionals with experience in relationships in our target verticals.
Scott: And building business in pharma, we're laying the groundwork to grow our presence in the auto and beverage categories as well.
Scott: Once we complete the Europe, North divestiture, we will be in position to take steps to further address our cost structure through zero based budgeting as.
Scott: As we prioritize our spending to drive growth in our America in airports segments.
Scott: All of these efforts are aimed at strengthening our higher margin U S businesses and enhancing our ability to organically grow adjusted EBITDA and <unk> with a priority to reduce leverage and strengthen our balance sheet, our central goal and our focus on enhancing shareholder value turning to our forecast full year consolidated revenue is expected to reach between.
Scott: 156, 2 billion and $1 607 billion representing.
Scott: Representing a 4% to 7% increase over the last year.
Scott: Dave will provide a detailed overview of our guidance in a moment.
Scott: In the current quarter, we are continuing to see revenue growth in our American airport segments. So overall, we're pleased with the progress we're making in executing on our plan.
Scott: I'd like to thank our companywide team for their continued contributions to our success I, especially thank our colleagues in Europe, North and Latin America for their hard work and operating focus throughout the sales processes.
Scott: With that let me hand, the call over to Dave.
Dave: Thanks, Scott Please see slide five for an overview of our results.
Dave: As Aileen just mentioned as of December 31, 2024, we have classified our Europe, North segment, and Latin American businesses as discontinued operations for all periods presented Additionally, our Europe sales segment, including the business in Spain was classified as discontinued operations in 2023.
Dave: Moving to our consolidated results, which include the America and airports segments. The.
Dave: The amounts I referred to are for the fourth quarter of 2024, and the percent changes our fourth quarter 2024 compared to the fourth quarter of 2023, unless otherwise noted.
Dave: Now onto the fourth quarter reported results consolidated revenue for the quarter was $427 million a two 6% increase.
Dave: Loss from continuing operations was $1 million.
Dave: Adjusted EBITDA for the quarter was 145 million up two 5%.
Dave: <unk> was $37 million, a 1% increase.
Dave: On to slide six for the Americas segment fourth quarter results.
Dave: America revenue was $311 million up four 1% with growth in both digital and print Billboard revenue.
Dave: Digital revenue, which accounted for 39, 5% of America revenue was up seven 6% to $123 million.
Dave: Local sales accounted for 62, 3% of America revenue and were up six 9% on a comparable basis.
Dave: This is the 15th consecutive quarter local has grown year over year.
Dave: National sales accounted for 37, 7% of America revenue and were flat with the prior year on a comparable basis.
Dave: Direct operating and SG&A expenses were up six 5% to $174 million due in part to higher variable incentive compensation and a three 6% increase in site lease expense to 93 million, mainly driven by the new roadside Billboard contract within New York MTA.
Dave: Segment, adjusted EBITDA was 137 million points for 7% with a segment adjusted EBITDA margin of 44, 1% down from the prior year, primarily due to the ramp up related to the New York MTA roadside Billboard contract.
Dave: Please see slide seven for a review of the fourth quarter results for airports.
Dave: Airports revenue was $116 million up four 3% with strong advertising demand led by the Port Authority of New York, New Jersey, San Francisco and Denver airports.
Dave: Digital revenue, which accounted for 63, 9% of airports revenue was up one 5% to $74 million.
Dave: National sales, which accounted for 63, 9% of airports revenue were up 10, 2% on a comparable basis local sales accounted for 36, 1% of airports revenue and were down four 7% on a comparable basis.
Dave: <unk> operating and SG&A expenses were up two 6% to $83 million. The increase is primarily due to a three 2% increase in site lease expense to $67 million driven by lower rent abatements and higher revenue.
Dave: Segment, adjusted EBITDA was $33 million up eight 9% with a segment adjusted EBITDA margin of 28, 2%. This elevated margin is related in part to renovations that are not expected to continue in future periods.
Dave: Moving on to CCI BV on slide eight.
Dave: Clear channel International BV, which I will refer to as CCI BV is an indirect wholly owned subsidiary of the company and the borrower under the CCI BV term loan facility.
Dave: <unk> includes the operations of our European businesses, which had been classified as discontinued operations until September 17, 2024. It also included operations in Singapore, which were sold to another indirect foreign wholly owned subsidiary of the company historically the financial results of the Singapore.
Dave: Operations were immaterial to CCI bvs consolidated results.
Dave: Previously we reported results of the Europe, South business as discontinued operations in the CCI BV consolidated statement of income however, because all CCI BV businesses are now sold or held for sale. We have gone back to reporting CCI BV consolidated results, including businesses that are.
Dave: Sold or held for sale as follows.
Dave: CCI BV results for the fourth quarter of 2024 compared to the same period of 2023 are as follows revenue decreased 13, 7% to $224 million from $260 million, primarily due to the sale of the business in France on October 31 2023.
Dave: Operating income was $42 million compared to $38 million in the same period of 2023.
Now moving to slide nine and a review of capital expenditures tap.
Dave: Capex totaled $35 million in the fourth quarter flat with the prior year. The increase in America was due to timing and the decrease in airports was due to reduced spending at the Port Authority of New York, New Jersey airports as they are substantially built out at this point.
Dave: Now on to slide 10.
During the fourth quarter cash and cash equivalents were $164 million, including 55 million held by discontinued operations. This represents a decline of $38 million as compared to the end of the third quarter 2024, primarily due to cash interest payments.
Dave: Cash paid for interest during the fourth quarter increased $17 million compared to the same period in the prior year, primarily due to the timing of interest payments in connection with the debt refinancing transactions that occurred in March of 2024.
Dave: Our liquidity was $346 million as of December 31, 2024 down $31 million compared to liquidity at the end of the third quarter.
Dave: Our debt was $5 7 billion as of December 31, 2024 in line with the third quarter our.
Dave: Our weighted average cost of debt was seven 4% also in line with the third quarter.
Dave: As of December 31, 2024, our first lien net leverage ratio was six six times the credit agreement springing covenant threshold at seven one times.
Dave: Under the senior secured credit agreement the calculation of the first lien net leverage ratio excludes the impact of all businesses classified as discontinued operations, whether the sale is closed or pending as a result, EBITDA from discontinued operations isn't included in the calculation. Additionally.
Dave: The calculation doesn't give effect to the anticipated net cash proceeds from the sales of our international businesses are any intended uses there from.
Dave: Consequently, our first lien net leverage ratio as of December 31, 2024 is higher than in previous periods and may not be directly comparable to such periods. However, all things being equal after the pay down of the CCI BV term loans and the receipt of the Europe, North proceeds and the proceeds.
Dave: When the sale of our businesses in Mexico, Peru, and Chile, we expect our first lien net leverage ratio to be considerably lower.
Dave: Now onto slide 11, and our guidance for the first quarter and the full year of 2025.
Dave: For the first quarter, we expect our consolidated revenue will be between 329 and $344 million, representing a 1% to 5% increase over the same period of the prior year.
Dave: We expect America revenues to be between 252 and $262 million in airports revenue is expected to be between 77% and $82 million.
Dave: Moving onto our full year guidance.
Dave: We expect consolidated revenue to be between $1 $5 62, and 161 7 billion, representing a 4% December cent increase over the prior year.
Dave: Americas revenue is expected to be between $1, one nine and $1. Two 2 billion airports revenue is expected to be between 372 and $387 million.
Dave: On a consolidated basis, we expect adjusted EBITDA to be between 490 and $505 million.
Dave: <unk> guidance is $73 million to $83 million, representing an increase of 25% to 42% over the same period of the prior year and due to uncertain timing doesn't include the potential benefit of reduced interest expense to be clear. This guidance does not include interest expense related to the CCI BV term loans.
Dave: Yes.
Dave: Capital expenditures are expected to be in the range of $75 million to $85 million with a continued focus on investing in our digital footprint.
Dave: Additionally, we anticipate having cash interest payment obligations of $77 million in the first quarter of 2025 and $422 million in 2025.
Dave: This guidance assumes that we do not repay refinance or incur additional debt upon the anticipated closing of the Europe north businesses will use the net proceeds after payment of transaction related fees and expenses to prepay the CCI BV term loan facility exclude.
Dave: Excluding interest on the CCI BV term loan facility, we expect annual cash interest payments of approximately $394 million in 2025 and $393 million in 2026 again, assuming that we don't repay refinance or incur additional debt.
Scott: Now, let me turn the call back to Scott.
Dave: Thanks, Dave.
Dave: To recap we've made considerable progress in divesting our international businesses, while strengthening our product offering in the U S. As we continue investing in our technology and strategically growing our sales force.
Dave: We remain committed to selling our businesses in Spain, and Brazil, which will complete our plan to focus on our higher margin U S business and generate cash for debt reduction.
Dave: As we operate our simplified business, we're off to a promising start and expect to deliver growth in consolidated revenue and adjusted EBITDA in the year ahead over.
Dave: Over the last few quarters to highlight our focus on cash generation, we have emphasized <unk> less distressed discretionary capex.
Dave: We continue to expect growth in that metric, but going forward with the simplification of our business. We will focus our comments on <unk> for which we anticipate significant compound growth. We expect this growth to be driven by adjusted EBITDA growth and debt reduction.
Dave: Now, let me turn over the call to the operator.
Speaker Change: Thank you we will now be conducting a question and answer session. If he would like to ask a question. 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 he would like to remove your question from the queue and for participants using speaker equipment may be necessary to.
Dave: Pick up your handset before pressing the star keys one.
Speaker Change: One moment, while we poll for questions.
Cameron Mcknight: Our first question is from Cameron Mcknight with Morgan Stanley. Please proceed.
Cameron Mcknight: Hey, good morning.
Speaker Change: You go to Canada.
Speaker Change: Good morning, you provided a relatively wide guidance range for the first quarter.
Speaker Change: This conservatism or are there more uncertainty out there now I'm just curious any color you can provide there and maybe the macro expectations that are baked into the guide would be helpful and then.
Speaker Change: Secondly, if you could just walk through an update of how you're thinking margins should trend. This year now that you've exited a few territories.
Speaker Change: Do you want to take both those de jure.
Speaker Change: From a guidance range I mean, it's it's usually in our normal range and we kind of put out.
Speaker Change: For the first quarter, but when you when I'm thinking about the first quarter. There's a couple of uncertainties. When you think about what went on what went on in L. A.
Speaker Change: But I feel pretty comfortable kind of where we are from an airport standpoint, and the guy who is actually I think pretty tight in the first quarter. When you think about it for the year. Obviously, there's a lot that can go on between now and the end of the year I mentioned, what's going on in L. A and just from an economic standpoint, we have a new contract with the MTA. So.
Speaker Change: And that's going to ramp as the year goes on a little bit slower ramp as that contract ramps in the first part of the year as we get to.
Speaker Change: Towards towards the back half of the year. So I think that contract that that contract is going to ramp and I think overall when I look at the year I think it's going to be up we're off to a little bit of a slower start in the first part of year and we're going to have growth across both segments, but I do expect that to pick up as we get back into that.
Speaker Change: Third third and fourth quarter, and so from a guidance standpoint, and what was the second question I apologize margin trend from a margin standpoint, I mean, we've talked about this in <unk>.
Speaker Change: Many times when I think about the margins of our business.
Speaker Change: What's what.
Speaker Change: Well, we've talked about before is that MTA contract ramp that will have an impact on our margins from an American standpoint, and again, the first quarter and this is apparent for both the Americas and airports standpoint.
Speaker Change: In media businesses in general Youre going to book more revenue as you get into the back half of the year end and your margins will build throughout the year, but we will see a little bit of margin declines on the MTA contract, we've talked about airports and we've had a lot of rental rental abatements and.
Because of Covid, and 2023 and into 2024 and I think we've been pretty clear those will go away in 2025.
Speaker Change: So from a margin standpoint, we were definitely elevated, especially in the fourth quarter for for airports that will come back down to more normal levels. I think we've talked about in the past on airports. We were in the high teens will probably be in the 20% range as we get into <unk> into.
Speaker Change: Into 2025% some quarters it will be a little bit higher probably will ramp as you get later into the year and probably a little bit.
Speaker Change: It's tighter smaller margins in the early parts of the year.
Speaker Change: Makes sense. Thank you.
Daniel Osley: Our next question is from Daniel Osley with.
Speaker Change: Wells Fargo. Please proceed.
Speaker Change: Thank you and good morning.
You mentioned national ads were flat.
Good morning.
Speaker Change: Mentioned national ads are flat year over year in Q4. So I was wondering what you expect an expectation for national within 25, and what categories, you're seeing strength or weakness that I had a follow up.
Speaker Change: Sure so.
Speaker Change: Yes, I mean.
Speaker Change: I think the word we keep using a national is choppy and Thats really specific to the America business National was.
Speaker Change: Quite good in airports all year long it was up double digits and in.
Speaker Change: In airports all year long so the choppiness is more in the roadside business.
I think I think what we have seen is is just some relatively big campaigns coming in and out over the last last couple of years, there were COVID-19 related campaigns.
Speaker Change: That were strong toward the end of 2023 that didn't recur in 2024.
Speaker Change: Telecom came back in a pretty strong way over the course of over the course of 2024.
Speaker Change: It just has been it just has been a little bit choppy.
Speaker Change: And we're seeing those advertisers.
Speaker Change: We're having to do a lot more work to reliably get that money get that money in and that's why we've been focused on doing category development doing the things we've talked around with with data and so and so forth. So I think as we as we look to the year.
Speaker Change: I think theres a couple of things that we think are tailwind within.
Speaker Change: National spending for this year, I think California in general.
Speaker Change: Coming out of the coming out of the fires of course in southern California, but particularly looking at San Francisco, Northern California, I think we're going to see some real strength in California. This year.
Speaker Change: The early look there is that advertisers are.
Speaker Change: Looking at that at that region and coming back to that region in a pretty meaningful way again, particularly in northern California, Theres, a little more uncertainty in southern California.
Speaker Change: I think from a vertical perspective, we think that the media and entertainment slate is better than 2024 and that should be something that is a positive for us we continue to see pharmaceuticals ramp.
Speaker Change: We think that will be good.
Speaker Change: For us over the course of this year.
Speaker Change: And we do have efforts going into a number of other categories that we're looking to drive.
Speaker Change: I am encouraged by what I'm seeing in telecom and I actually think the T mobile acquisition of <unk> as a a positive data point within that broader.
Speaker Change: Category, but it's an endorsement of the importance of out of home for telecom. So I think those are some of the puts and takes but until we get to the point, where our pipeline is what's driving national as opposed to.
Speaker Change: The very varied in and out campaigns.
Speaker Change: It's going to it's going to remain a little choppy in that segment, we need to get sort of similar momentum as we've enjoyed in the airport segment.
Speaker Change: That's helpful. Thank you.
Speaker Change: Our next question is from Jonathan.
Speaker Change: <unk> with TD Cowen. Please proceed.
Hey, good morning.
Speaker Change: That's on the MTO Billboard contract should we still be expecting 2% growth. Therefore the America.
Speaker Change: Americas segment, and can we talk a little bit about the capex that EBITDA ramp related to the contract.
Speaker Change: Sure.
Speaker Change: From a from an MTA standpoint, but I'm looking at it from a full year from a revenue standpoint, yes, youre going to get.
Speaker Change: Couple of points of growth on top of the America's stamp on the Americas segment, obviously, that's going to that's going to ramp a little slower in the first quarter, but all ramp because we honestly with that contract started in November from a capex standpoint.
Speaker Change: <unk>.
Speaker Change: And we're going to that's going to run through our normal in a normal capex, so youre not going to see a spike in the overall business from a spending standpoint on capex that will be part of our digital upgrades.
Speaker Change: Normal kind of maintenance Capex.
Speaker Change: It will be higher obviously in the first several years of the contract.
Speaker Change: But I don't think youre going to see a spike as far as from our overall capex.
Speaker Change: It's included in our guidance that we're thinking about but that will help the contract guys are spending capex on that on that property as you get into the second third and fourth years. It will take those new board and a little bit of time to ramp.
Speaker Change: Got it thanks.
Speaker Change: The last one is on airports local revenue during the fourth quarter I think I've calculated there was a decrease there year over year and just wondering if maybe you could talk a little bit about that and the trend that we should be aware of thank you.
Speaker Change: No one of them.
Speaker Change: Look at it for the full year I mean, it's up double digits. So it's just kind of the ebbs and flows there were a few.
Speaker Change: Direct deals just some comps that we had year over year that roll up into <unk> into the local number but if you think about that local number for the full year I mean, it's it's a pretty substantial is actually in the high double digits, probably closer to 20%. So.
Speaker Change: No concerns from our standpoint on that fourth quarter number.
Speaker Change: And national was up so overall I think this segment performed really well and it was when you think about that fourth quarter, and where we were three or four years ago that that segment is up $30 million to $40 million. So.
Speaker Change: It's performing quite nicely.
Speaker Change: Our next question is from Avi Steiner with Jpmorgan. Please proceed.
Avi Steiner: Hi, Good morning, Thank you for taking the questions I have two here if I can.
Speaker Change: One I'm curious what the implied guide for corporate is in 'twenty five.
And I apologize if I missed it I hopped on a couple of minutes late and then <unk>.
Speaker Change: Relatedly I guess it was more assets get sold here and you get down to your kind of core U S focus I'm curious if there's upside to that corporate number and I have one follow up.
Speaker Change: But from a corporate expense standpoint, which I'm, assuming you're talking about how has it gone when avi.
Speaker Change: When we had said we have we have sent into said in the past that our corporate expenses roughly $31 million of expenses.
Speaker Change: I would say that number is probably closer to mid <unk> at this point in time, we're continuing to work on that and I think youll see savings as we get into this year. Obviously is the divestitures are made but really I think youll see more of an impact as we get into 2026.
Speaker Change: When because we'll still have all that reporting we still have the companies that are signed but not closed. So a lot of that work is still ongoing.
Speaker Change: But at this point in time I see a line of sight client closer to the mid Thirty's I think that number will grow as we get later into the year and as we're working on it into 'twenty six youll see more expenses come out.
Speaker Change: That is very helpful. Thank you and then my last one and thank you for the time, Scott you've been talking about getting down to a core U S focused business for a long time and while it took a little longer than expected credit we're really right on the doorstep here. So I guess the question is.
Speaker Change: How do you tackle the balance sheet or how do you think about tackling of the balance sheet from here, while investing as you want in the U S business.
Speaker Change: Are they mutually exclusive.
Speaker Change: Can you do both and thank you again for the time.
Speaker Change: Thanks, Savi, yes, no I appreciate the question.
Speaker Change: However, long it fell to you I assure you it felt longer to us.
Speaker Change: We're very pleased to be at a point that we're making the good progress that we've made.
Speaker Change: Bob.
Bob: I've said in a few settings.
Bob: As we shift from from divesting the European businesses, which has been a pretty substantial effort of corporate development finance.
Bob: Human resources, I mean, the amount of diligence done across all of these businesses is just kind of staggering.
Bob: As we as we get past that we're going to be able to take the creativity and the energy that's been focused in that area and focus it on things we can do in.
Bob: There are a few things that make me feel good about about our odds I think thing one is that we are a very innovative bunch here and we have some very creative ideas that we're looking forward to testing in the marketplace that we think all of our stakeholders will will value. If we're successful it cant promise that.
Bob: They will succeed but Ken promise to show similar doggedness in in trying to drive those innovative solutions that are kind of win win wins.
Bob: I think the other the other part that makes me optimistic is not a week goes by that somebody is not trying to get me to opine on the out of home sector to some investor and I don't do any of those.
Bob: Routinely, particularly on our quiet periods of course, but I know there is a ton of research going on in the sector and I think were really interesting and really credible partner for people, who want to invest in this space and that there might be some creative things we can do it.
Bob: Along those lines to create.
Bob: <unk> opportunities for growth, maybe not using our capital, but may be with us benefiting from.
Bob: The activity again cant promise anything we havent started working on that yet but.
Bob: I think of those as as kind of the more innovative and creative things and then I think the other thing you got it you got to factor in.
Bob: We're going to have excess proceeds over the over the BV and I think there are some creative things, we can do to accelerate that <unk> growth that is going to allow us to.
Bob: Bring down the interest expense.
Bob: And bring up bring up <unk> bring up cash flow and start to get into the.
Bob: Functioning high high functioning public LBO.
Position that we aspire to be as opposed to the.
Bob: Stuck in place public LBO that we've kind of felt like the last couple of years, So I'm I'm pretty upbeat on our prospects as we as we start to get these things done so.
Bob: Hopefully that gives you enough flavor without giving away too much of the store here.
Speaker Change: Heck of a teaser. Thank you very much for the time safe travels. Thank you.
Avi Steiner: Thanks Avi.
Speaker Change: As a reminder, this star one on your telephone keypad, if he would like to ask a question. Our next question is from Patrick <unk> with Barrington Research. Please proceed.
Patrick: Hi, good morning.
Speaker Change: Just a question on the.
Patrick: The capital spending plans I was just wondering with the focus with the.
Speaker Change: Greater focus on the U S. Do you anticipate sort of accelerating the pace of digital board installations and also curious on how.
Patrick: I guess trade uncertainty is kind of impacted those investment plans.
Speaker Change: Sure so.
Speaker Change: We've kept a pretty steady pace of of adding signs to our portfolio.
Speaker Change: And I don't I don't think we're going to particularly accelerate it and that's at least partly driven by where our footprint is.
Speaker Change: There are three or four of our cities that are underpenetrated and digital that we're working very diligently to get opportunities to expand in digital and should those opportunities break.
Speaker Change: We will accelerate at that point.
Speaker Change: Much of the rest of our footprint, we're doing a really good job of just kind of expanding around the perimeter and expanding the core.
Speaker Change: Of already robust digital offerings, we have we have everything from markets that are in low single digits percent revenue all the way to markets that are 60% digital revenue. This is in roadside and airports.
Speaker Change: Advanced advanced of that.
Speaker Change: In terms of the sort of spread so I don't think I don't think we think that principally converting our own digital signs.
Speaker Change: Setting aside the three or four cities, where there's ordinance changes that could help us is going to be our principal thing. We'll continue to do that at a steady rate, but we're not going to there's not a lot of upside in us just accelerating that.
Speaker Change: And then I think beyond that what I was referring to with Avi maybe a place that we creatively deploy some capital maybe in conjunction with partners and things along those lines, but I'm speculating.
Speaker Change: As that as that develops.
Speaker Change: Okay, and then just within the digital revenues that you generate on both Billboards in airports is there sort of a breakdown that you can provide on like the mix of local versus national within that.
Speaker Change: No I mean, I would look at it and it's very similar to <unk>.
Speaker Change: Just kind of the overall the overall business when we when we kind of breakout local national.
Speaker Change: I don't think its going be wildly different from those numbers. When you look at it from a digital or a printed sign.
Speaker Change: From a client standpoint international clients that like digital like print and it's the same on the local side. So I don't think it would be wildly different.
Okay. Thank you.
Speaker Change: Yeah.
Speaker Change: With no further questions in the queue I would like to turn the conference back over to management for closing remarks.
Speaker Change: Great. Thank you operator, and thank you everyone for joining us today, we appreciate the interest and the time.
Speaker Change: I think the main thing I want to mention as we wrap up is that we understand we have a lot of moving parts in our financials and that it can be somewhat confusing as things go into disc ops and as we work the tail on transition services and bring down corporate expense.
Speaker Change: Appreciate that and we.
Speaker Change: We have a plan to get a an investor day together.
Speaker Change: For the end of the summer, where we will be able to shed. Some further light and do some more unpacking of the kind of questions areas that people have had here. So just wanted to put that that place mark out there.
Speaker Change: We'll certainly be talking with you between now and then but appreciate everyones interest and wish you a good balance of the week.
Thank you. This will conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.