Clear Channel Outdoor Holdings, Inc.

Ladies and gentlemen, thank you for standing by. Welcome to Clear Channel Outdoor Holdings, Inc. 2024 Fourth Quarter Earnings Conference Call. At this time, 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.

Good morning, and thank you for joining our call. On the call today are Scott Wells, our CEO, and David Saylor, our CFO. They will provide an overview of the 2024 Fourth Quarter Operating Performance of Clear Channel Outdoor Holdings, Inc., and Clear Channel International, BV. We recommend you download the 2024 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, we'll open the line for questions. Before we begin, I'd like to remind everyone 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 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 provide schedules that reconcile these 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 periods presented. Additionally, our Europe South segment, including the business in Spain, was classified as discontinued operations in 2023. The consolidated results include the America segment, airport segment, and Singapore. Also, please note that the information provided on this call speaks only to management's views as of today, February 24, 2025, and may no longer be accurate at the time of a replay. Please see slide 4 in the earnings presentation, and I will now turn the call over to Scott.

Good morning, everyone, and thank you for taking the time to join us today. Our recent agreement to sell our Europe North segment, as well as the recent sale of most of our businesses in Latin America, marks significant progress in the execution of our plan to optimize our portfolio and focus on our higher margin U.S. business. To date, we've closed deals amounting to approximately $120 million and have agreed to sell our Europe North segment for $625 million. We are also optimistic about our ability to best our businesses in Spain and Brazil, given their strong performance. As we 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 term loans to retire the most advantageous debt in our stack as permitted in our agreements to reduce cash interest and increase AFFO. During the fourth quarter, our America segment delivered record revenue of $311 million, representing an increase of 4.1% driven by strength in digital and local sales. which was in line with our guidance. As we previously noted, throughout the year, National remained 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. Airports continued to perform well in the fourth quarter, with revenue increasing 4.3% to a record level of $116 million, compared to a robust performance in the prior year and in line with guidance. our airports team delivered strong results throughout the year with consistent national demand for our premium assets and record travel activity. While the rate of growth normalized over the course of the year, we continued to see consistently strong demand. On a consolidated basis, we generated revenue of $427 million during the fourth quarter, representing an increase of 2.6%, which reflects the impact from a loss of a contract in Singapore as of December 31st 2023. Excluding Singapore, revenue from the fourth quarter for our America and airport segments was up 4.1%. 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 airport segments was up 6.6%. Turning to 2025, we expect strengthened our business to build as the year develops with healthy revenue, adjusted EBITDA, and AFFO growth. 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 top line. Our roadmap for growth remains centered on expanding our digital footprint, strengthening our data and analytics capabilities, and strategically growing our sales force. Building on our radar platform, we recently launched our CCO 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 live. We believe these initiatives are elevating our ability to make inroads with brands that have not been utilizing out-of-home to connect with their target audiences. We're also seeing the benefits of our expanded sales force and verticalized focus where we have added professionals with experience and relationships in our target verticals. Beyond building business and pharma, we're laying the groundwork to grow our presence in the auto and beverage categories as well. Finally, once we complete the Europe North Investiture, we will be in position to take steps to further address our cost structure through zero-based budgeting, as we prioritize our spending to drive growth in our America and airport segments. All of these efforts are aimed at strengthening our higher margin U.S. businesses and enhancing our ability to organically grow adjusted EBITDA and AFFO, with a priority to reduce leverage and strengthen our balance sheet, a central goal in our focus on enhancing shareholder value. Turning to our forecast, full-year consolidated revenue is expected to reach between $1.562 billion and $1.607 billion, representing a 4% to 7% increase over the last year. Dave will provide a detailed overview of our guidance in a moment. 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 and executing on our plan. I'd like to thank our company-wide 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. With that, let me hand the call over to Dave. Thanks, Scott.