Clear Channel Outdoor Holdings, Inc.

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 second quarter 2025 operating performance of Clear Channel Outdoor Holdings Inc. We recommend you download the second quarter 2025 earnings presentation located in the financial information section of our investor relations website and review that 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 is important to reiterate that all European and Latin American operations are reported as discontinued operations for all periods presented. This includes our current businesses in Spain and Brazil, as well as our former businesses in Mexico, Chile, and Peru, which were sold on February 5th, 2025, and our former Europe North segment, which was sold on March 31st, 2025. The reported consolidated results include the America and airport segments in Singapore. Also, please note that the information provided on this call speaks only to management's views as of today, August 5th, 2025, and may no longer be accurate at the time of a reply. Please see slide four 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. During the second quarter, we delivered solid financial results within our guidance range and continued to make good progress in executing on our strategic plan. Our transition into a US-focused organization has allowed us to direct our attention to maximizing ROI from our digital footprint, data analytics resources, and Salesforce to scale our business and increase cash generation. Our outlook remains positive, and we expect a good second half of the year, attesting to the strength of -of-home advertising and our leadership in innovating and driving the digital transformation of our industry. Turning to our results, on a consolidated basis, we generated revenue of $402.8 million during the second quarter, representing an increase of 7%. Our America segment delivered record second quarter revenue of $303.1 million, representing a -over-year increase of 4.4%, driven by strength in digital and local sales, as well as the planned ramp up in the MTA roadside billboard contract. We saw growth across the majority of our markets with continued strength in San Francisco, as we benefit from the recovery in the market and the surge in AI-related investments. And airports delivered a .6% increase in revenue for the second quarter, a record of $99.7 million, a substantial gain compared to a strong performance in the prior year comparable period. Categories that continue to perform well across the company include business services, technology, banking, and insurance. In addition to our financial results, we also took some important capital structure actions during Q2 and shortly after, extending both our cashflow revolver and asset-backed credit line to June 2030, refinancing approximately 40% of our debt maturities in two tranches of senior secured notes to 2031 and 2033, with our nearest maturity now in 2028, and continuing to buyback senior notes. Thus far, our buybacks have reduced our annual interest by $17.5 million, generating a yield of 12.4%. Through the refinancing and the debt buybacks, we have maintained essentially flat cash interest, and this does not include interest savings of approximately $28 million from the prepayment of the CCI BV term loans. Dave will dive a little deeper on this in his section. Now, let me talk a bit more about the future and how we are continuing to leverage technology to make our medium more compelling to advertisers. We are now in the process of rolling out our In-Flight Insights campaign attribution solution. We have been testing this technology for a couple of years, and we're now ready to arm our company-wide sales force with this groundbreaking tool. The tool allows brands to assess the impact of their -of-home campaigns while they are still alive, with previously unavailable insights into audience visits in a privacy-conscious way. These insights allow customers to evaluate ways to optimize their -of-home campaign performance to drive more store traffic. As we expand access to the solution, we're finding that consumers travel much farther than expected after seeing an -of-home ad. This is key as it underscores the influence of our platform on much larger audiences well beyond a specific geographic location. In a world of declining search efficacy, we believe our physical presence is a distinct advantage. A great example of this scale benefit is our progress with the pharma category, where recent campaigns have been executed across a wide swath of our markets. We are demonstrating success in reaching targeted audiences at scale, selling audiences more than locations. Our vertical sales force has been invaluable in this regard as they leverage their relationships and sector knowledge to educate advertisers on the scope of our reach and impact. So we've made substantial progress in developing what is now a very dynamic, addressable, and measurable platform integrated with the broader digital advertising world. This is demonstrated by the results of our recently released five-year study of data with market research leader, Kantar, which demonstrated that -of-home advertising outperforms CTV and digital channels in key metrics such as ad awareness, brand favorability, and purchase intent. Among the positive findings, -of-home delivers over a 13% lift in ad awareness, surpassing even linear TV, confirming it as a powerful solution for reaching audiences at scale. The study validates our strategic investment in innovation and attribution via platforms like CCO RadarProof that position our company as the industry's most measurement-forward media partner. As I noted, our business remains healthy entering the second half of the year, and we are reiterating the midpoint of our consolidated revenue and adjusted EBITDA guidance for the year. We are confident as we now have nearly 90% of our Q3 revenue guidance under contract, and our business pipeline remains solid. We called a strong second half when we gave full-year guidance in February, and we are seeing that come in. With regard to our remaining business sales, we still expect to close the sale of our business in Brazil this year, and the sale process for our business in Spain is ongoing. As we complete these transactions, we are deep in the process of zero-based budgeting, and we'll share details on that work at our investor day on September 9th. Summing it up, we're feeling good about the remainder of the year, and more importantly, the direction we're headed longer term as we confidently execute in our plan and work to enhance shareholder value. And with that, I'll hand the call over to Dave.

Thanks, Scott. Please see slide five for an overview of our results. The amounts I referred to are for the second quarter of 2025, and the percent changes are second quarter 2025 compared to the second quarter of 2024, unless otherwise noted. In solidated revenue for the quarter was 402.8 million, a 7% increase, which was in line with our guidance. Income from continuing operations was 6.3 million. Adjusted EBITDA for the quarter was 128.6 million, up 7.7%, driven in part by strong digital revenue and local sales performance across both segments. AFFO was 27.8 million, up .9% within our expectations. On to slide six for the America segment second quarter results. America revenue was 303.1 million, up .4% in line with guidance. The increase was primarily driven by digital revenue, which was up 11.1%, the MTA roadside billboard contract, and continued improvement in the San Francisco Bay area. Local sales were up 7.4%, and national sales were down 1% on a comparable basis. This is the 17 consecutive quarter local has grown year over year. Segment adjusted EBITDA was 127.6 million, up 0.5%, with a segment adjusted EBITDA margin of 42.1%, impacted by the ramp up in site lease expense primarily related to the MTA contract. Please see slide seven for a review of the second quarter results for airports. I'm pleased to say airports has delivered another terrific quarter with revenue of 99.7 million, up 15.6%, outperforming our second quarter guidance. The increase was driven by strong performance across both sales channels, with national sales up 15.4%, and local sales up .9% on a comparable basis. Segment adjusted EBITDA was 24.3 million, up 27.6%, with a segment adjusted EBITDA margin of 24.4%, driven by revenue growth. Moving on to slide eight, CAPEX totaled 12.8 million in the second quarter, down 21.4%, driven by lower digital spend and less contractual spend on shelters. Now on to slide nine, we ended the quarter with liquidity of 351 million, which includes 139 million of cash, and 212 million available under the revolvers. This strong liquidity position compliments the various balance sheet initiatives we have taken just prior to, and since our last earnings call. With the proceeds from the sale of our international businesses and cash on hand, we prepaid the 375 million of CCI BV term loans, and repurchased approximately 230 million aggregate principal amount of outstanding senior notes in the open market. At the end of the second quarter, we amended our revolving credit facilities to extend maturities through June, 2030, and more recently, we completed a new senior secured notes offering. Investor interest in the offering was very strong, attesting to the underlying fundamentals of our business, outlook and access to the capital markets. These collective efforts have secured our access to our credit facilities through mid 2030, pushed approximately 40% of our debt maturities to 2031 and beyond, increased our weighted average maturity from 3.2 years to 4.8 years, and reduced our annualized cash interest by 28 million. Our work to strengthen and de-risk our maturity profile is ongoing, and we will continue to actively manage our balance sheet with the goal of ensuring we maintain flexibility while prioritizing debt reduction. Now onto slide 10, and our guidance for the third quarter and the full year of 2025. For the third quarter, we expect our consolidated revenue to be within 395 million to 410 million, representing a 5% to 9% increase over the same period in the prior year. We expect third quarter America revenue to be within 303 million to 313 million, and airports revenue is expected to be within 92 million to 97 million. As Scott mentioned, we are again confirming our midpoint for the consolidated full year revenue guidance and adjusted EBITDA that we provided in February. We expect full year AFFO to be within 75 million to 85 million, representing an increase of 28% to 45% over the prior year. Following the prepayment of the CCIBV term loans, the second quarter purchases of senior notes, and the recent refinancings, we anticipate future annualized interest of approximately 390 million, assuming no further capital markets activity. And now let me turn the call back to Scott.