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Clear Channel Outdoor Holdings, Inc. Reports Results For 2013 Second Quarter

International

International revenues declined $1 million, or less than 1%, after adjusting for a $9 million revenue reduction due to the divestiture of businesses during the third quarter of 2012 and a $2 million increase from movements in foreign exchange rates. Strong revenue growth in emerging markets was offset by continued pressures in certain developed markets, where economic conditions remain challenging. On a reported basis, revenues decreased $9 million, or 2%, compared to the same period of 2012.

Operating expenses fell $9 million in the second quarter of 2013, adjusting for $8 million of expenses due to the divestiture of businesses during the third quarter of 2012, and a $2 million increase from movements in foreign exchange rates. Operating expenses declined due to cost savings from strategic investments, offset by higher costs in emerging markets and from new contracts in markets with increased revenue. Operating expenses in the second quarter of 2013 included a decrease of approximately $4 million in investments in strategic revenue and cost savings programs, and a decrease of $5 million in legal and other costs in Brazil.

International OIBDAN in the second quarter of 2013 increased $7 million, or 8%, to $96 million, adjusting for a $2 million OIBDAN reduction due to the divestiture of businesses during the third quarter of 2012 and adjusting for minimal movements in foreign exchange rates. OIBDAN in the second quarter of 2013 included $2 million of costs incurred for investments in strategic revenue and cost savings programs compared to $6 million in the second quarter of 2012. On a reported basis, OIBDAN rose $6 million, or 7%, to $96 million.

Conference Call

The Company, along with its parent company, CC Media Holdings, Inc., will host a conference call to discuss results on August 1, 2013 at 4:30 p.m. Eastern Time. The conference call number is 866-233-3842 (U.S. callers) and 651-291-1246 (international callers) and the passcode is 296544. A live audio webcast of the conference call will also be available on the investor section of www.clearchannel.com and www.clearchanneloutdoor.com. A replay of the call will be available after the live conference call, beginning at 5:30 p.m. Eastern Time, for a period of 30 days. The replay numbers are 800-475-6701 (U.S. callers) and 320-365-3844 (International callers) and the passcode for both is 296544. An archive of the webcast 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       Six Months Ended
June 30, June 30,
2013   2012 2013   2012
Revenue $ 766,871 $ 761,326 $ 1,417,081 $ 1,412,609
Direct operating expenses 399,558 405,314 785,749 797,032
Selling, general and administrative expenses 133,020 131,752 272,581 284,095
Corporate expenses 33,892 29,952 61,716 57,403
Depreciation and amortization 97,566 99,668 197,893 192,005
Impairment charges - - - -
Other operating income (expense) – net   3,697     2,746     5,800     6,749  
Operating income (loss) 106,532 97,386 104,942 88,823
 
Interest expense - net 88,063 102,953 176,156 170,784

Interest income on Due from Clear ChannelCommunications

12,496 16,089 24,416 32,069

Equity in earnings (loss) of nonconsolidatedaffiliates

169 (157 ) (316 ) 264
Other expense – net   (310 )   (1,631 )   (1,217 )   (2,125 )
Loss before income taxes 30,824 8,734 (48,331 ) (51,753 )
Income tax benefit   (12,094 )   (8,082 )   (7,088 )   7,212  
Consolidated net loss 18,730 652 (55,419 ) (44,541 )

Amount attributable to noncontrolling interest

  9,822     8,768     9,951     7,445  

Net income (loss) attributable to the Company

  8,908     (8,116 )   (65,370 )   (51,986 )
 
Diluted net earnings (loss) per share $ 0.02 $ (0.02 ) $ (0.19 ) $ (0.17 )
 

Weighted average shares outstanding –Diluted

358,766 356,944 357,427 356,655
 

For the three months ended June 30, 2013, foreign exchange rate movements increased the Company’s revenues and direct operating and SG&A expenses each by approximately $2 million. For the six months ended June 30, 2013, foreign exchange rate movements increased the Company’s revenues by $1 million and direct operating and SG&A expenses by $2 million.

 

TABLE 2 - Selected Balance Sheet Information

 

Selected balance sheet information for June 30, 2013 and December 31, 2012:

 

(In millions)   June 30,     December 31,
2013 2012
 
Cash $ 398.7 $ 562.0
Total Current Assets 1,308.2 1,509.3
Net Property, Plant and Equipment 2,098.3 2,207.7
Due from Clear Channel Communications   850.8   729.2
Total Assets 6,851.4 7,105.8
 

Current Liabilities (excluding current portionof long-term debt)

677.7 802.0

Long-Term Debt (including current portionof long-term debt)

4,938.1 4,944.8
Shareholders’ Equity 338.2 446.1
 
 

TABLE 3 - Total Debt

     

At June 30, 2013 and December 31, 2012, Clear Channel Outdoor Holdings had total net debt of:

 
(In millions) June 30, December 31,
2013 2012
Clear Channel Worldwide Holdings Senior Notes:
6.5% Series A Senior Notes Due 2022 $ 735.7 $ 735.7
6.5% Series B Senior Notes Due 2022 1,989.3 1,989.3

Clear Channel Worldwide Holdings SeniorSubordinated Notes:

7.625% Series A Senior Subordinated Notes Due 2020 275.0 275.0
7.625% Series B Senior Subordinated Notes Due 2020 1,925.0 1,925.0
Other Debt 20.1 27.1
Original Issue Discount   (7.0 )   (7.3 )
Total 4,938.1 4,944.8
Cash   398.7     562.0  
Net Debt $ 4,539.4   $ 4,382.8  
 

The current portion of long-term debt was $4 million as of June 30, 2013.

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