Clear Channel CFO Brian Coleman and EVP Bob McCuin  appeared at the JP Morgan 51st Annual Technology, Media and Communications conference this week.  Some of their comments.

Brian Coleman asked more questions than he answered when discussing the call by activist shareholder Legion Partners to consider selling US assets.

So we’re open to constructive dialogue with all of investors, including Legion, who we’ve had a dialogue with. They’ve been an investor for a while. …We began a process over a year ago. Unfortunately, after — shortly after it was launched, there was some geopolitical events, including the invasion of Ukraine, that caused us to pivot on the process we were undergoing and prioritized the lower-margin noncore to Europe businesses, which we continue to look at. In fact, we successfully closed the sale of Switzerland at the end of March. But we are very much focused on continuing the strategic review process…When you talk about potential U.S. asset sales, I think you have to think about, what is the totality of the transaction? What are the attributes of any potential transaction? Have you taken into consideration tax benefits, strategic fit? Is it deleveraging? Does it provide liquidity? And so in the U.S., you have to think about those things. Where is your tax basis?…How does the sale impact the remainder of the portfolio? Are you looking for something that is deleveraging? Are you looking for something that is liquidity accretive?

National Sales VP Bob McCuin on why first quarter national revenues were weak

I think there’s a few categories that really impacted. So first of all, Q1 2022 nationally was incredibly strong. And our national business recovered nicely through COVID, and that really drove through Q1.  But it was emerging tech, we talked about crypto and the exposure we have, that definitely impacted us, and it impacted us in a few markets. And if you look at San Francisco as one of the markets we’ve called out, they had a disproportionate amount of that national business, and it’s our second largest revenue market. So it has a big impact.

Brian Coleman says Clear Channel Outdoor may use proceeds from asset sales to buy back debt which is trading at a discount.

I think our first objective is to ensure we have sufficient liquidity… And it is the reason why the Swiss asset sale proceeds, we kept on the balance sheet, utilizing the reinvestment baskets under the indentures, and those proceeds will be reinvested in the business. ..I really look at potential future asset sales proceeds first in terms of raising capital to buy back debt. I think where our share price is today…the value of the business is not fully reflected in the share price. I don’t think right now, under the set of facts and circumstances that we’re operating under, that it would make sense today. I do think the focus is on the strategic review, bringing in assets, all proceeds, potentially using those proceeds to pay down debt.

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