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TheStreet Open House

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

International

International revenues decreased $3 million, or less than 1%, after adjusting for a $3 million revenue reduction due to the divestiture of businesses during the third quarter of 2012 and a $1 million increase from movements in foreign exchange rates. Strong revenue growth in emerging markets was offset by revenue declines in developed markets where, despite challenging economic conditions, certain countries performed well. On a reported basis, revenues decreased $4 million, or 1%, compared to the same period of 2012.

Operating expenses increased $3 million in the third quarter of 2013, adjusting for $3 million of expenses resulting from 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 made in previous periods, offset by higher costs in certain emerging markets and from new contracts in markets with increased revenue.

International OIBDAN in the third quarter of 2013 decreased $5 million, or 8%, to $62 million, adjusting for the divestiture of businesses during the third quarter of 2012 of less than $1 million and adjusting for a $1 million reduction from movements in foreign exchange rates. On a reported basis, OIBDAN declined $7 million, or 10%, to $61 million.

Conference Call

The Company, along with its parent company, CC Media Holdings, Inc., will host a conference call to discuss results on November 7, 2013 at 8:30 a.m. Eastern Time. The conference call number is 866-254-5936 (U.S. callers) and 651-291-7662 (international callers) and the passcode is 305763. A live audio webcast of the conference call will also be available on the investor section of www.clearchannel.com and www.clearchanneloutdoor.com. After the live conference call, a replay will be available 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 305763. 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

      Nine Months Ended
September 30, September 30,
  2013         2012     2013         2012  
Revenue $ 723,013     $ 731,141 $ 2,140,094     $ 2,143,750
Direct operating expenses 396,094 390,639 1,181,843 1,187,671
Selling, general and administrative expenses 131,437 136,582 404,018 420,677
Corporate expenses 29,719 28,820 91,435 86,223
Depreciation and amortization 98,344 100,352 296,237 292,357
Impairment charges - - - -
Other operating income (expense) – net   6,604         42,397     12,404         49,146  
Operating income (loss) 74,023 117,145 178,965 205,968
 
Interest expense - net 87,969 102,612 264,125 273,396
Interest income on Due from Clear Channel Communications 14,940 16,913 39,356 48,982
Loss on marketable securities (18 ) - (18 ) -
Equity in earnings (loss) of nonconsolidated affiliates (645 ) (234 ) (961 ) 30
Other expense – net   1,445         1,825     228         (300 )
Income (loss) before income taxes 1,776 33,037 (46,555 ) (18,716 )
Income tax benefit (expense)   10,214         (8,212 )   3,126         (1,000 )
Consolidated net income (loss) 11,990 24,825 (43,429 ) (19,716 )
Amount attributable to noncontrolling interest 7,772 7,541 17,723 14,986
               
Net income (loss) attributable to the Company   4,218         17,284     (61,152 )       (34,702 )
 
Diluted net earnings (loss) per share $ 0.01 $ 0.05 $ (0.18 ) $ (0.12 )
 
Weighted average shares outstanding – Diluted 359,011 357,547 357,507 356,808
 

For the three months ended September 30, 2013, foreign exchange rate movements increased the Company’s revenues by less than $1 million, and increased direct operating and SG&A expenses by approximately $2 million. For the nine months ended September 30, 2013, foreign exchange rate movements increased the Company’s revenues by $1 million and direct operating and SG&A expenses by $4 million.

 

TABLE 2 - Selected Balance Sheet Information

 

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

 
(In millions)       September 30,         December 31,
  2013   2012
 
Cash $ 418.6 $ 562.0
Total Current Assets 1,326.3 1,509.3
Net Property, Plant and Equipment 2,071.3 2,207.7
Due from Clear Channel Communications 944.6 729.2
Total Assets 6,928.3 7,105.8
 
Current Liabilities (excluding current portion of long-term debt) 767.6 802.0
Long-Term Debt (including current portion of long-term debt) 4,939.9 4,944.8
Shareholders’ Equity 336.0 446.1
 
 

TABLE 3 - Total Debt

 

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

 
(In millions)       September 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 Senior Subordinated 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 21.8 27.1
Original Issue Discount   (6.9 )   (7.3 )
Total 4,939.9 4,944.8
Cash   418.6     562.0  
Net Debt $ 4,521.3   $ 4,382.8  
 

The current portion of long-term debt was $6 million as of September 30, 2013.

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