• Clear Channel Revenues and Cashflow up 3% and 11% in 3Q 2018

    Clear Channel outperformed expectations for the third quarter of 2018. Here are the highlights of the 3Q 2018 earnings release, slide presentation and earnings call transcript.

    • CFO Rich Bressler wouldn’t comment on the iHeart bankrupcty other than to say that iHeart is entering the final stages or the bankruptcy process and expects to exit bankruptcy during the first quarter of 2019.  He also said that the Clear Channel Outdoor trade name and trademark is being appraised in anticipation of Clear Channel Outdoor buying the name from iHeart when it is spun off to a separate entity.
    • Consolidated revenue increased 3% to $664 million during the quarter.  Revenue was up 5% when adjusting of FX changes and divestitures.
    • Consolidated cashflow (obidan) was up 11% to $139 million.
    • Organic revenue (adjusted for acquisitions) increased 4% in the Americas division which includes the US.  Local, digital and airport revenues all increased  Americas cashflow increased 7%.

    • Capital expenditures totaled $49 million during the third quarter of 2018.  The company installed 14 new digital billboards in the US for a total of 1,256 displays in the US.
    • The company ended the quarter with $5.3 billion in debt.  Total debt/cashflow is 8.6.  Insider thinks a sustainable level of debt for Clear Channel Outdoor is 4:0-5:0.  Half of the company’s debt comes due in two years.

    Insider’s take:  A good quarter with increased revenues and cashflow.  Leverage is twice as high as it should be.  Look to see a deleveraging once Clear Channel Outdoor is spun off from its bankrupt parent iHeart Media.  The transaction is expected to occur soon.

    Clear Channel Outdoor closed the day up 1% to $6.05


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