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Clear Channel Outdoor Holdings, Inc. Reports Results For Second Quarter 2012


International revenues increased $7 million, or 1%, compared to the second quarter of 2011, excluding the effects of movements in foreign exchange rates. Street furniture revenues grew across certain countries, including China, Australia and the UK, while billboard revenues grew in Switzerland. New street furniture and transit contracts won during 2011 helped drive revenue growth. Revenue increases were offset in part by declines resulting from weakened macroeconomic conditions across France, southern Europe and the Nordic countries. On a reported basis, revenues declined $30 million, or 6%, compared to the same quarter of 2011, resulting from $37 million of unfavorable movements in foreign exchange rates.

Operating expenses rose $16 million, excluding the effects of movements in foreign exchange rates, reflecting higher site lease expenses associated primarily with new contracts gained during 2011, as well as increased legal and other expenses in Latin America. On a reported basis, operating expenses decreased $17 million, including a $34 million decline due to the effects of movements in foreign exchange rates.

Excluding the effects of movements in foreign exchange rates, International OIBDAN for the second quarter of 2012 declined 9%. On a reported basis, OIBDAN decreased 13% to $90 million from $103 million in 2011.

Conference Call

The Company, along with its parent company CC Media Holdings, Inc., will host a teleconference to discuss results today at 4:30 p.m. Eastern Time. The conference call number is 1-800-707-9573 and the passcode is 254783. The teleconference will also be available via a live audio cast on the investor section of the Clear Channel Outdoor Holdings, Inc. website, located at A replay of the call will be available after the live conference call, beginning at 6:30 p.m. Eastern Time, for a period of 30 days. The replay numbers are 1-800-475-6701 (U.S. callers) and 320-365-3844 (International callers) and the passcode is 254783. The audio cast will also be archived on the website and will be available beginning 24 hours after the call for a period of 30 days.

TABLE 1 - Financial Highlights of Clear Channel Outdoor Holdings, Inc. and Subsidiaries
(In thousands, except per share data) Three Months Ended

June 30,
2012   2011

$ 761,326 $ 789,208
Operating expenses:
Direct operating expenses (excludes depreciation and amortization) 406,895 415,472
Selling, general and administrative expenses (excludes depreciation and amortization) 132,285 142,937
Corporate expenses (excludes depreciation and amortization) 27,838 23,038
Depreciation and amortization 99,668 105,600
Other operating income – net   2,746     4,300  
Operating income 97,386 106,461
Interest expense 102,953 60,803
Interest income on Due from Clear Channel 16,089 10,518
Equity in earnings (loss) of nonconsolidated affiliates (157 ) 673
Other expense – net   (1,631 )   (277 )
Income before income taxes 8,734 56,572
Income tax expense   (8,082 )   (22,360 )
Consolidated net income 652 34,212
Less: amount attributable to noncontrolling interest   8,768     7,517  
Net income (loss) attributable to the Company $ (8,116 ) $ 26,695  
Diluted net income (loss) per share $ (0.04 ) $ 0.07  
Weighted average shares outstanding – Diluted 356,944 356,658

Foreign exchange rate movements decreased the Company’s 2012 second quarter revenues and direct operating and SG&A expenses by approximately $38 million and $34 million, respectively, compared to the same period of 2011.

TABLE 2 - Selected Balance Sheet Information

Selected balance sheet information for June 30, 2012 and December 31, 2011 was:

(In millions)
June 30, 2012 December 31, 2011
Cash $ 491.3 $ 542.7
Total Current Assets $ 1,400.6 $ 1,453.7
Net Property, Plant and Equipment $ 2,214.4 $ 2,246.7
Due from Clear Channel Communications $ 712.3 $ 656.0
Total Assets $ 7,055.8 $ 7,088.2
Current Liabilities (excluding current portion of long-term debt) $ 707.7 $ 697.2
Long-Term Debt (including current portion of long-term debt) $ 4,742.2 $ 2,545.9
Shareholders’ Equity $ 522.4 $ 2,740.2

TABLE 3 - Total Debt

At June 30, 2012 and December 31, 2011, Clear Channel Outdoor Holdings had net debt of:

(In millions)
June 30, 2012 December 31, 2011
Clear Channel Worldwide Holdings Senior Notes:
9.25% Series A Senior Notes Due 2017 $ 500.0 $ 500.0
9.25% Series B Senior Notes Due 2017 2,000.0 2,000.0
Clear Channel Worldwide Holdings Senior Subordinated Notes:
7.625% Series A Senior Subordinated Notes Due 2020 275.0
7.625% Series B Senior Subordinated Notes Due 2020 1,925.0
Other Debt 42.2 45.9
Total 4,742.2 2,545.9
Cash 491.3 542.7
Net Debt $ 4,250.9 $ 2,003.2

The current portion of long-term debt, which is included in Other Debt, was $23.1 million as of June 30, 2012.

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