• Clear Channel Outdoor Revenue and Cashflow Grow

    Clear Channel Outdoor revenues and cashflow grew for the second quarter of 2018.  Here are links to the second quarter earnings release and conference call powerpoint.

    • Americas revenue (North America) declined 0.1% to $300 million.  Americas revenue grew 2.1%, however, when adjusted for divestitures.  Growth resulted from higher digital and static revenue.   Operating expenses declined 2.4% to $178 million due to sale of the company’s Canadian plant.  As a result Americas cashflow (OBIDAN) increased 3.5% to $122 million.

    • International revenue grew 11% to $412 million due to growth in Sweden, China, Switzerland, Spain and Belgium.   International cashflow (OBIDAN) increased 21% to $92 million.
    • Consolidated Cashflow (OBIDAN) was up 11% to $94 million.  Cashflow was up 9% when adjusted for FX and divestitures.
    • Capital Expenditures totaled $61 million for the six months ended June and is forcecast at $220 million for the full year.  CFO Rich Bressler said the company installed 450 new digital displays during the second quarter of the year.  Capital expenditures are concentrated in digital billboards and street furniture.
    • Total debt is $5.3 billion.  Total debt/cashflow is 8.7 which Insider thinks is well above the 5.0-6.0 sustainable level.  The weighted cost of Clear Channel Outdoor’s debt is 7.1%.  Almost half of the company’s debt matures in 2020.

    Insider’s take: Lots to like.  Cashflow is growing.  International revenues are growing in double digits. US revenues have started growing again.  Look at this chart:

    Revenue Change for Clear Channel Outdoor Americas (Canada and US), excluding FX and divestitures.

    The market liked what it heard.  Clear Channel Outdoor finished the day up 3.5%, Outfront up 2.2%, Lamar up 1.5% and the S&P 500 up 0.49%.

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