LFP - Large-Format-Printing

Clear Channel Outdoor Holdings, Inc. Reports Results for 2011 Fourth Quarter and Full Year

Thursday 23. February 2012 - 2011 Revenues increase 7% to $3.0 billion

2011 OIBDAN grows 15% to $745 million
Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) today reported financial results for the fourth quarter and full year ended December 31, 2011.
“We made significant progress in our Americas and International businesses over the quarter and full year,” said Bob Pittman, Executive Chairman of the Clear Channel Outdoor Holdings, Inc. Board of Directors. “Not only did the Company generate solid revenue and profit performance in 2011, but it also greatly expanded its digital capability in both the U.S. and Europe. With William Eccleshare now leading both our Americas and International operations, we look forward to continuing to invest in our cutting-edge assets, build stronger connections with our advertising partners, benefit from our global experience, and capitalize on our talent around the world to keep innovating.”
“The Company delivered solid revenue growth in 2011 despite the sluggish global economy, while OIBDAN climbed 15% thanks to expanded operating profit margin year over year,” said Tom Casey, Executive Vice President and Chief Financial Officer. “Over the past year, we continued to invest for future growth – adding 242 new digital billboards for a total of 857 across 37 U.S. markets by year’s end and expanded our digital footprint to several new international markets, such as Sweden and the U.K. As we enter 2012, with our strong operating platform, talented employees and financial discipline, we are well prepared to benefit from a global economic recovery.”
Full Year 2011 Results
Clear Channel Outdoor Holdings’ revenues increased 7% to $3.0 billion for the full year 2011 compared to $2.8 billion in 2010. Excluding the effects of movements in foreign exchange rates1, revenues rose 4%.
Americas revenues grew $47 million, or 4%, compared to 2010, driven by growth across bulletin, airport and shelter displays, and particularly digital displays, due to increased capacity and rates.
International revenues rose $159 million, or 11%, compared to 2010, resulting mainly from higher street furniture revenues across various markets. Excluding the effects of movements in foreign exchange rates, revenues increased 5%.
The Company’s OIBDAN1 improved 15% to $745 million in 2011 compared to $648 million in 2010. Excluding the effects of movements in foreign exchange rates, OIBDAN increased 13%.
Net income attributable to the Company totaled $43 million, or $0.11 per diluted share, in 2011 compared to a net loss attributable to the Company of $88 million, or $0.26 per diluted share, in 2010.
Fourth Quarter 2011 Results
The Company reported revenues of $816 million for the fourth quarter of 2011, a 3% increase from the $793 million in the fourth quarter of 2010. Excluding the effects of movements in foreign exchange rates, revenues grew 2%.
Americas revenues decreased $3 million, or 1%, compared to the fourth quarter of 2010. Revenues from bulletin displays, primarily digital, and airports grew during the fourth quarter of 2011, offset by declines in poster and mall displays, among other products. The effects of movements in foreign exchange rates did not significantly impact revenue growth in the quarter.
International revenues rose $26 million, or 6%, compared to the fourth quarter of 2010, resulting from growth in street furniture revenues across various markets, particularly China, Sweden, and Australia. Excluding the effects of movements in foreign exchange rates, revenues were up 5%.
OIBDAN totaled $229 million for the fourth quarter of 2011 compared to $207 million for the fourth quarter of 2010, reflecting an increase of 10%. Excluding the effects of movements in foreign exchange rates, OIBDAN increased 9%.
Net income attributable to the Company totaled $23 million, or $0.06 per diluted share, for the fourth quarter of 2011. This compares to net income attributable to the Company of $4 million, or $0.00 per diluted share, for the fourth quarter of 2010.
On January 24, 2012, William Eccleshare, previously the Chief Executive Officer of Clear Channel International, was named Chief Executive Officer of the Company, overseeing both the Americas and International divisions.
Revenues, Operating Expenses and OIBDAN by Segment

(In thousands) Three Months Ended
December 31,
%
Year Ended
December 31,
%
2011 2010 Change 2011 2010 Change

Revenues1:
Americas $ 359,159 $ 361,999 (1 %) $ 1,336,592 $ 1,290,014 4 %
International 456,843 430,734 6 % 1,667,282 1,507,980 11 %
Consolidated revenues $ 816,002 $ 792,733 3 % $ 3,003,874 $ 2,797,994 7 %
Operating Expenses1, 2:

Americas $ 217,577 $ 216,866 0 % $ 824,826 $ 798,161 3 %
International 346,455 331,653 4 % 1,344,081 1,244,514 8 %
Consolidated operating expenses $ 564,032 $ 548,519 3 % $ 2,168,907 $ 2,042,675 6 %

OIBDAN1:
Americas $ 141,582 $ 145,133 (2 %) $
511,766
$ 491,853 4 %
International 110,388 99,081 11 %
323,201
263,466 23 %
Corporate1, 2 (22,845 ) (36,759 ) (90,058 ) (107,212 )
Consolidated OIBDAN $ 229,125 $ 207,455 10 % $ 744,909 $ 648,107 15 %
See the end of this press release for reconciliations of (i) OIBDAN for each segment to consolidated operating income (loss); (ii) revenues excluding foreign exchange effects to revenues; (iii) direct operating and SG&A expenses excluding foreign exchange effects to expenses; (iv) OIBDAN excluding foreign exchange effects to OIBDAN; (v) direct operating and SG&A expenses excluding non-cash compensation expenses to expenses; (vi) corporate expenses excluding non-cash compensation expenses to corporate expenses; and (vii) OIBDAN to net income (loss). See also the definition of OIBDAN under the Supplemental Disclosure section of this release.
2The Company’s operating expenses include direct operating expenses and SG&A expenses, but exclude non-cash compensation expenses associated with the Company’s stock option grants and restricted stock and restricted stock unit awards. Corporate expenses also exclude non-cash compensation expenses associated with the Company’s stock option grants and restricted stock and restricted stock unit awards.
Americas
In 2011, Americas revenues rose $47 million, or 4%, compared to 2010, fueled mainly by growth in bulletin, airport and shelter displays, and particularly digital displays. Driving the increase in bulletin revenues were a greater number of digital displays, as well as higher rates. Airport and shelter revenues were also up primarily on higher average rates.
Operating expenses grew $27 million compared to 2010, reflecting increased site lease expenses associated with higher airport and bulletin revenues, particularly from digital displays, as well as increases from the deployment of new digital displays. Also contributing to the growth in expenses were higher commission expenses related to increased revenues.
Americas OIBDAN for 2011 totaled $512 million, an increase of 4% compared with OIBDAN of $492 million in 2010.
As of December 31, 2011, the Company has deployed 857 digital billboards, up 242 for the year, across 37 markets in the United States.
International
International revenues rose $159 million, or 11%, in 2011 compared to 2010, reflecting primarily higher street furniture revenues across most of the Company’s markets, particularly China and Sweden. Improved yields and additional displays contributed to the revenue increase in China, and greater yields in combination with a new contract drove the revenue growth in Sweden. The higher revenues from street furniture were partially offset by declines in billboard revenues across several markets, primarily Italy and the U.K. In addition, foreign exchange rate movements resulted in an $82 million increase in revenues in 2011. Excluding the effects of movements in foreign exchange rates, revenues were up 5%.
Operating expenses increased $100 million in 2011, attributable mainly to a $68 million increase from movements in foreign exchange rates. Higher site lease as well as selling and marketing expenses associated with the growth in revenues were partially offset by a decline in restructuring expenses. Also contributing to the growth in expenses was a $6 million increase related to the unfavorable impact of litigation.
Led by the revenue growth from the Company’s street furniture business across a number of countries, International OIBDAN in 2011 was up 23% to $323 million from $263 million in 2010. Excluding the effects of movements in foreign exchange rates, OIBDAN rose 17%.