Delaware
|
1-32663
|
86-0812139
|
(State or other jurisdiction
|
(Commission File Number)
|
(I.R.S. Employer
|
of incorporation)
|
Identification No.)
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
(d)
|
Exhibits
|
|
99.1
|
Press Release issued by Clear Channel Outdoor Holdings, Inc. on August 1, 2013
|
|
CLEAR CHANNEL OUTDOOR HOLDINGS, INC.
|
|||
Date: August 1, 2013
|
By:
|
/s/ Scott D. Hamilton
|
|
Scott D. Hamilton
|
|||
Senior Vice President, Chief Accounting Officer and
|
|||
Assistant Secretary
|
Exhibit No.
|
Description
|
|
99.1
|
Press Release issued by Clear Channel Outdoor Holdings, Inc. on August 1, 2013
|
|
●
|
Revenue rose 2% year over year to $765 million, and OIBDAN1 was up 4% to $203 million, excluding foreign exchange and divestitures
|
●
|
Americas revenue grew 5% and OIBDAN increased 3%, excluding foreign exchange
|
●
|
International revenue was flat and OIBDAN grew 8%, excluding foreign exchange and divestitures
|
●
|
Americas revenues rose $14 million, or 4%, on a reported basis and 5% adjusted for movements in foreign exchange rates, driven by higher occupancy and capacity on digital bulletins, higher occupancy and rate on traditional bulletins, strong growth in posters, and increased revenue at airports.
|
●
|
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.
|
●
|
Launching consumer networks in the U.S., comprised of targeted portfolios of displays delivering pre-selected demographic groups supported by Traffic Audit Bureau (TAB) ratings that plug into existing advertiser models – an innovation that offers advertisers and agencies a simpler and easier buying process with enhanced audience metrics and greater exposure to the targeted audience.
|
●
|
Announcing that Clear Channel Airports won a five-year contract with extension options to provide indoor digital media programs at Chicago’s O’Hare and Midway International airports, where Clear Channel has operated since 2002. The program will include approximately 400 digital displays and reach 66 million passengers annually. Clear Channel Airports was also selected by San Francisco International Airport to provide digital media and sponsorship solutions throughout its terminals, including 30 digital installations that will reach more than 10 million passengers annually.
|
●
|
As part of Clear Channel Outdoor’s sponsorship of the Cannes Lions International Festival of Creativity, creating the world’s first hand-painted micrography billboard made entirely of tweets which were sent to #Canvas or @CCOutdoor, delivering a reach of more than 10 million impressions over four days.
|
●
|
Highlighting the immediacy and flexibility of the Americas digital out-of-home network, beginning on July 4, 2013, 1,000 digital billboards across the U.S. displayed the lyrics of “The Star Spangled Banner” linked to the #united4th campaign, which was also promoted on more than 200 Clear Channel radio stations and on iHeartRadio.
|
●
|
Creating a mobile-controlled, personalized, geo-specific campaign across five European countries to promote the theatrical release of Universal Pictures’ Despicable Me 2. Across a network of 259 digital screens, consumers could control and personalize the on-screen creative via their mobile phones, and receive a text link back to share their personalized Minion film socially. The interactive campaign was supported by additional static and digital formats.
|
●
|
Installing nine new digital billboards for a total of 1,055 across 37 U.S. markets.
|
(In thousands)
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||||||
June 30,
|
%
|
June 30,
|
%
|
|||||||||||||||||||||
2013
|
2012
|
Change
|
2013
|
2012
|
Change
|
|||||||||||||||||||
Revenue1
|
||||||||||||||||||||||||
Americas
|
$ | 335,025 | $ | 320,678 | 4 | % | $ | 621,486 | $ | 600,829 | 3 | % | ||||||||||||
International 3
|
431,846 | 440,648 | (2 | %) | 795,595 | 811,780 | (2 | %) | ||||||||||||||||
Consolidated revenue
|
$ | 766,871 | $ | 761,326 | 1 | % | $ | 1,417,081 | $ | 1,412,609 | 0 | % | ||||||||||||
Operating Expenses1,2
|
||||||||||||||||||||||||
Americas
|
$ | 196,934 | $ | 186,644 | 6 | % | $ | 388,197 | $ | 381,701 | 2 | % | ||||||||||||
International 3
|
335,644 | 350,422 | (4 | %) | 670,133 | 699,426 | (4 | %) | ||||||||||||||||
Consolidated operating expenses
|
$ | 532,578 | $ | 537,066 | (1 | %) | $ | 1,058,330 | $ | 1,081,127 | (2 | %) | ||||||||||||
OIBDAN1
|
||||||||||||||||||||||||
Americas
|
$ | 138,091 | $ | 134,034 | 3 | % | $ | 233,289 | $ | 219,128 | 6 | % | ||||||||||||
International 3
|
96,202 | 90,226 | 7 | % | 125,462 | 112,354 | 12 | % | ||||||||||||||||
Corporate
|
(31,558 | ) | (27,798 | ) | (57,721 | ) | (52,047 | ) | ||||||||||||||||
Consolidated OIBDAN
|
$ | 202,735 | $ | 196,462 | 3 | % | $ | 301,030 | $ | 279,435 | 8 | % |
(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 Channel Communications
|
12,496 | 16,089 | 24,416 | 32,069 | ||||||||||||
Equity in earnings (loss) of nonconsolidated affiliates
|
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 |
(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 portion of long-term debt)
|
677.7 | 802.0 | ||||||
Long-Term Debt (including current portion of long-term debt)
|
4,938.1 | 4,944.8 | ||||||
Shareholders’ Equity
|
338.2 | 446.1 |
(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 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
|
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 |
(In Millions) Note: numbers may not sum due to rounding
|
Four Quarters Ended
|
|||
June 30,
|
||||
2013
|
||||
EBITDA (as defined by the CCWH Senior Notes indentures)
|
$ | 796 | ||
Less adjustments to EBITDA (as defined by the CCWH Senior Notes indentures):
|
||||
Cost incurred in connection with severance, the closure and/or consolidation of facilities, retention charges, consulting fees, and other permitted activities
|
(46 | ) | ||
Extraordinary, non-recurring or unusual gains or losses or expenses (as referenced in the definition of EBITDA in the CCWH Senior Notes indentures)
|
(28 | ) | ||
Non-cash charges
|
(28 | ) | ||
Other items
|
(10 | ) | ||
Less: Depreciation and amortization, Impairment charges, Other operating income (expense), net, and Share-based compensation expense
|
(402 | ) | ||
Operating income
|
283 | |||
Plus: Depreciation and amortization, Impairment charges, Other operating income (expense), net, and Share-based compensation expense
|
402 | |||
Less: Interest expense
|
(379 | ) | ||
Plus: Interest income on Due from Clear Channel Communications
|
56 | |||
Less: Current income tax benefit
|
(70 | ) | ||
Plus: Other income (expense), net
|
1 | |||
Adjustments to reconcile consolidated net loss to net cash provided by operating activities (including Provision for doubtful accounts, Amortization of deferred financing charges and note discounts, net and Other reconciling items, net)
|
18 | |||
Change in assets and liabilities, net of assets acquired and liabilities assumed
|
(12 | ) | ||
Net cash provided by operating activities
|
$ | 299 |
(In thousands)
|
||||||||||||||||||||
Operating income (loss)
|
Non-cash compensation expenses
|
Depreciation and amortization
|
Other operating income (expense) - net and impairment charges
|
OIBDAN
|
||||||||||||||||
Three Months Ended June 30, 2013
|
||||||||||||||||||||
Americas
|
$ | 91,050 | $ | - | $ | 47,041 | $ | - | $ | 138,091 | ||||||||||
International
|
46,272 | - | 49,930 | - | 96,202 | |||||||||||||||
Impairment charges
|
- | - | - | - | - | |||||||||||||||
Corporate
|
(34,487 | ) | 2,334 | 595 | - | (31,558 | ) | |||||||||||||
Other operating income – net
|
3,697 | - | - | (3,697 | ) | - | ||||||||||||||
Consolidated
|
$ | 106,532 | $ | 2,334 | $ | 97,566 | $ | (3,697 | ) | $ | 202,735 | |||||||||
Three Months Ended June 30, 2012
|
||||||||||||||||||||
Americas
|
$ | 85,467 | $ | - | $ | 48,567 | $ | - | $ | 134,034 | ||||||||||
International
|
39,516 | - | 50,710 | - | 90,226 | |||||||||||||||
Impairment charges
|
- | - | - | - | - | |||||||||||||||
Corporate
|
(30,343 | ) | 2,154 | 391 | - | (27,798 | ) | |||||||||||||
Other operating income – net
|
2,746 | - | - | (2,746 | ) | - | ||||||||||||||
Consolidated
|
$ | 97,386 | $ | 2,154 | $ | 99,668 | $ | (2,746 | ) | $ | 196,462 | |||||||||
Six Months Ended June 30, 2013
|
||||||||||||||||||||
Americas
|
$ | 137,563 | $ | - | $ | 95,726 | $ | - | $ | 233,289 | ||||||||||
International
|
24,539 | - | 100,923 | - | 125,462 | |||||||||||||||
Impairment charges
|
- | - | - | - | - | |||||||||||||||
Corporate
|
(62,960 | ) | 3,995 | 1,244 | - | (57,721 | ) | |||||||||||||
Other operating income – net
|
5,800 | - | - | (5,800 | ) | - | ||||||||||||||
Consolidated
|
$ | 104,942 | $ | 3,995 | $ | 197,893 | $ | (5,800 | ) | $ | 301,030 | |||||||||
Six Months Ended June 30, 2012
|
||||||||||||||||||||
Americas
|
$ | 127,603 | $ | - | $ | 91,525 | $ | - | $ | 219,128 | ||||||||||
International
|
12,609 | - | 99,745 | - | 112,354 | |||||||||||||||
Impairment charges
|
- | - | - | - | - | |||||||||||||||
Corporate
|
(58,138 | ) | 5,356 | 735 | - | (52,047 | ) | |||||||||||||
Other operating income – net
|
6,749 | - | - | (6,749 | ) | - | ||||||||||||||
Consolidated
|
$ | 88,823 | $ | 5,356 | $ | 192,005 | $ | (6,749 | ) | $ | 279,435 |
(In thousands)
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||||||
June 30,
|
%
|
June 30,
|
%
|
|||||||||||||||||||||
2013
|
2012
|
Change
|
2013
|
2012
|
Change
|
|||||||||||||||||||
Revenue
|
$ | 766,871 | $ | 761,326 | 1 | % | $ | 1,417,081 | $ | 1,412,609 | 0 | % | ||||||||||||
Excluding: Foreign exchange decrease (increase)
|
(1,752 | ) | - | (895 | ) | - | ||||||||||||||||||
Revenue excluding effects of foreign exchange
|
$ | 765,119 | $ | 761,326 | 0 | % | $ | 1,416,186 | $ | 1,412,609 | 0 | % | ||||||||||||
Americas revenue
|
$ | 335,025 | $ | 320,678 | 4 | % | $ | 621,486 | $ | 600,829 | 3 | % | ||||||||||||
Excluding: Foreign exchange decrease (increase)
|
133 | - | 223 | - | ||||||||||||||||||||
Americas revenue excluding effects of foreign exchange
|
$ | 335,158 | $ | 320,678 | 5 | % | $ | 621,709 | $ | 600,829 | 3 | % | ||||||||||||
International revenue
|
$ | 431,846 | $ | 440,648 | (2 | %) | $ | 795,595 | $ | 811,780 | (2 | %) | ||||||||||||
Excluding: Foreign exchange decrease (increase)
|
(1,885 | ) | - | (1,118 | ) | - | ||||||||||||||||||
International revenue excluding effects of foreign exchange
|
$ | 429,961 | $ | 440,648 | (2 | %) | $ | 794,477 | $ | 811,780 | (2 | %) |
(In thousands)
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||||||
June 30,
|
%
|
June 30,
|
%
|
|||||||||||||||||||||
2013
|
2012
|
Change
|
2013
|
2012
|
Change
|
|||||||||||||||||||
Consolidated expense
|
$ | 532,578 | $ | 537,066 | (1 | %) | $ | 1,058,330 | $ | 1,081,127 | (2 | %) | ||||||||||||
Excluding: Foreign exchange decrease (increase)
|
(1,638 | ) | - | (1,623 | ) | - | ||||||||||||||||||
Expense excluding effects of foreign exchange
|
$ | 530,940 | $ | 537,066 | (1 | %) | $ | 1,056,707 | $ | 1,081,127 | (2 | %) | ||||||||||||
Americas expense
|
$ | 196,934 | $ | 186,644 | 6 | % | $ | 388,197 | $ | 381,701 | 2 | % | ||||||||||||
Excluding: Foreign exchange decrease (increase)
|
112 | - | 191 | - | ||||||||||||||||||||
Americas expense excluding effects of foreign exchange
|
$ | 197,046 | $ | 186,644 | 6 | % | $ | 388,388 | $ | 381,701 | 2 | % | ||||||||||||
International expense
|
$ | 335,644 | $ | 350,422 | (4 | %) | $ | 670,133 | $ | 699,426 | (4 | %) | ||||||||||||
Excluding: Foreign exchange decrease (increase)
|
(1,750 | ) | - | (1,814 | ) | - | ||||||||||||||||||
International expense excluding effects of foreign exchange
|
$ | 333,894 | $ | 350,422 | (5 | %) | $ | 668,319 | $ | 699,426 | (4 | %) |
(In thousands)
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||||||
June 30,
|
%
|
June 30,
|
%
|
|||||||||||||||||||||
2013
|
2012
|
Change
|
2013
|
2012
|
Change
|
|||||||||||||||||||
OIBDAN
|
$ | 202,735 | $ | 196,462 | 3 | % | $ | 301,030 | $ | 279,435 | 8 | % | ||||||||||||
Excluding: Foreign exchange decrease (increase)
|
(114 | ) | - | 728 | - | |||||||||||||||||||
OIBDAN excluding effects of foreign exchange
|
$ | 202,621 | $ | 196,462 | 3 | % | $ | 301,758 | $ | 279,435 | 8 | % | ||||||||||||
Americas OIBDAN
|
$ | 138,091 | $ | 134,034 | 3 | % | $ | 233,289 | $ | 219,128 | 6 | % | ||||||||||||
Excluding: Foreign exchange decrease (increase)
|
21 | - | 32 | - | ||||||||||||||||||||
Americas OIBDAN excluding effects of foreign exchange
|
$ | 138,112 | $ | 134,034 | 3 | % | $ | 233,321 | $ | 219,128 | 6 | % | ||||||||||||
International OIBDAN
|
$ | 96,202 | $ | 90,226 | 7 | % | $ | 125,462 | $ | 112,354 | 12 | % | ||||||||||||
Excluding: Foreign exchange decrease (increase)
|
(135 | ) | - | 696 | - | |||||||||||||||||||
International OIBDAN excluding effects of foreign exchange
|
$ | 96,067 | $ | 90,226 | 6 | % | $ | 126,158 | $ | 112,354 | 12 | % |
(In thousands)
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||||||
June 30,
|
%
|
June 30,
|
%
|
|||||||||||||||||||||
2013
|
2012
|
Change
|
2013
|
2012
|
Change
|
|||||||||||||||||||
Corporate Expense
|
$ | 33,892 | $ | 29,952 | 13 | % | $ | 61,716 | $ | 57,403 | 8 | % | ||||||||||||
Less: Non-cash compensation expense
|
(2,334 | ) | (2,154 | ) | (3,995 | ) | (5,356 | ) | ||||||||||||||||
$ | 31,558 | $ | 27,798 | 14 | % | $ | 57,721 | $ | 52,047 | 11 | % |
(In thousands)
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||||||
June 30,
|
%
|
June 30,
|
%
|
|||||||||||||||||||||
2013
|
2012
|
Change
|
2013
|
2012
|
Change
|
|||||||||||||||||||
OIBDAN
|
$ | 202,735 | $ | 196,462 | 3 | % | $ | 301,030 | $ | 279,435 | 8 | % | ||||||||||||
Non-cash compensation expense
|
2,334 | 2,154 | 3,995 | 5,356 | ||||||||||||||||||||
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
|
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 Channel Communications
|
12,496 | 16,089 | 24,416 | 32,069 | ||||||||||||||||||||
Equity in earnings (loss) of nonconsolidated affiliates
|
169 | (157 | ) | (316 | ) | 264 | ||||||||||||||||||
Other income (expense) – net
|
(310 | ) | (1,631 | ) | (1,217 | ) | (2,125 | ) | ||||||||||||||||
Loss before income taxes
|
30,824 | 8,734 | (48,331 | ) | (51,753 | ) | ||||||||||||||||||
Income tax benefit (expense)
|
(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 | ) |