NYSE$CCO

Clear Channel Outdoor Holdings Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Clear Channel Outdoor Holdings, Inc. reported financial results that were significantly impacted by the COVID-19 pandemic.

Clear Channel Outdoor Holdings reported a challenging Q1 2020, significantly impacted by the COVID-19 pandemic. Despite a strong performance in the Americas segment, the company experienced overall revenue decline due to the pandemic's effect, particularly in Europe and Other regions. The company is implementing cost-saving measures and focusing on liquidity to mitigate the impact.

  • Q1 earnings were significantly impacted by the COVID-19 pandemic.
  • Americas segment saw revenue growth of 8.5% and Segment Adjusted EBITDA up 18.5%.
  • Europe revenue decreased by 18.9% year-over-year.
  • Company is implementing cost savings initiatives and exploring opportunistic transactions to strengthen the balance sheet.

Headline financials

Total Revenue

$551M

Previous: $587M-6.2%
EPS (adj)

-$0.33

Previous: -$0.45+26.7%
Capital Expenditures

-$32.8M

Previous: -$28.2M-16.5%
Free Cash Flow

-$310M

Previous: -$192M-61.3%
Net Income

-$277M

Previous: -$164M-69.0%
Operating Income

-$164M

Previous: $9.11M-1904.6%
Gross Profit

$201M

Previous: $239M-16.2%
Cash & Equivalents

$372M

Previous: $171M+118.0%
Total Assets

$6.12B

Previous: $6.33B-3.2%
Stock-Based Comp

$3.78M

Previous: $1.83M+105.9%

Revenue & EPS history

Clear Channel · Revenue · Quarterly

$551M

Q1 2020-6.2%vs Q1 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Clear Channel · $98.7M total across 2 segments · Q3 2023

  • Airports
    $75.6M
  • Other
    $23.1M+34.4%

Forward guidance

The company anticipates significant adverse effects on the results of operations throughout the business during the second quarter as more customers defer advertising buying decisions and reduce marketing spend.

Tailwinds

  • Negotiations with landlords to align fixed site lease expenses with revenue during the economic downturn.
  • Savings from lower variable compensation expense, temporary salary reductions, reduced hours for hourly employees, hiring freezes and furloughs.
  • Reducing discretionary expenses.
  • Deferring discretionary capital expenditures.
  • Exploring options to defer our committed capital expenditures.

Headwinds

  • Shelter in place protocols have limited the behavior and movement of consumers and target audiences, making it difficult to predict and plan advertising campaigns.
  • Receiving an unprecedented level of requests to defer or cancel current contracts as customers seek to conserve cash.
  • Customers are deferring buying decisions and reducing their marketing spend.
  • Experiencing a sharp decline in bookings, particularly in European businesses.
  • Expect the first lien net leverage ratio to increase during the second quarter of 2020 due to the impacts of COVID-19 and the exclusion of results from Clear Media.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-1.9%

Avg return

Earnings day

-0.8%

Avg return

5 days after

-1.5%

Avg return

30 days after

37%

24 / 65 earnings

Positive

+26.5%

Q3 2020

Best reaction

-20.7%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%+0.0%
Q4 2025-0.8%-0.4%-2.1%
Q3 2025-1.7%+8.3%+9.9%
Q1 2025+5.7%+11.2%+9.2%
Q4 2024-2.2%-7.4%-15.6%
Q3 2024-3.3%-2.7%+0.7%
Q2 2024-4.9%-7.0%+5.6%
Q1 2024+1.9%+1.3%-10.4%
Q4 2023+3.2%-4.8%-12.2%
Q3 2023+14.2%+16.8%+46.0%
Q2 2023-7.1%-8.9%-13.1%
Q1 2023-16.7%-14.3%+6.3%
Q4 2022+5.2%+2.6%-27.7%
Q3 2022-20.7%-6.6%-16.5%
Q2 2022-3.0%+10.9%+0.0%
Q1 2022-14.5%-12.1%-32.2%
Q4 2021+1.9%+3.3%+0.5%
Q3 2021+3.4%+11.3%-4.6%
Q2 2021+11.3%+4.2%+6.3%
Q1 2021-8.6%-15.3%+11.3%
Q4 2020-17.3%-11.5%-10.6%
Q3 2020+26.5%+26.0%+31.0%
Q2 2020+8.3%+30.2%+28.1%
Q1 2020+5.7%+9.9%+59.3%
Q4 2019+1.5%-3.9%-73.0%
Q3 2019+0.8%+0.8%-1.9%
Q2 2019-10.6%-17.8%-14.2%
Q1 2019-1.9%-5.8%+0.4%
Q4 2018-8.7%-7.5%+1.6%
Q3 2018-2.7%-6.2%-9.0%
Q2 2018+3.5%+5.8%+5.8%
Q1 2018-4.3%-7.5%+0.0%
Q4 2017-9.3%-2.1%-10.3%
Q3 2017+2.5%+2.5%+10.1%
Q2 2017-13.9%-2.0%-19.8%
Q1 2017-5.9%-9.8%-22.5%
Q4 2016-12.3%-9.4%+13.4%
Q3 2016+0.0%-6.0%-4.3%
Q2 2016-6.6%-7.9%-2.7%
Q1 2016+9.4%
Q4 2015+2.9%
Q3 2015-17.6%
Q2 2015+3.6%
Q1 2015+1.5%
Q4 2014-2.5%
Q3 2014+3.1%
Q2 2014+0.1%
Q1 2014-6.3%
Q4 2013-1.3%
Q3 2013+2.1%
Q2 2013+0.3%
Q1 2013+0.0%
Q1 2011-0.7%
Q4 2011-0.7%
Q4 2012-0.7%
Q3 2012-1.2%
Q2 2012-7.3%
Q1 2012-3.8%
Q4 2009-3.3%
Q2 2011-3.3%
Q3 2010-11.9%
Q3 2011-11.9%
Q2 2010-1.4%
Q4 2010-1.4%
Q1 2010+6.9%

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