Moves Europe-South Segment to Discontinued
Operations
SAN
ANTONIO, Oct. 31, 2023 /PRNewswire/ -- Clear
Channel Outdoor Holdings, Inc. (NYSE: CCO) (the "Company")
today announced that it has closed the previously announced sale of
its business in France to Equinox
Industries.
Additionally, the Company has initiated a process to sell the
businesses in its Europe-North segment, which include operations in
the United Kingdom, the Nordics
and several other countries throughout Northern and Central Europe. The Company has also initiated
a strategic review of its Latin American businesses, which include
operations in Mexico, Brazil, Chile
and Peru. To date, the Company has
sold its businesses in Switzerland, Italy and France and has agreed to sell its business in
Spain.
"Clear Channel's Board of Directors and management team are
focused on delivering profitable growth, strengthening our balance
sheet and further demonstrating the operating leverage of our
model," said Scott Wells, Chief
Executive Officer of Clear Channel Outdoor Holdings, Inc.
"Following the sale of our business in France, we have divested, or have agreed to
divest, all of our Europe-South segment operations. We continue to
take meaningful action to optimize our portfolio and improve our
capital structure, including initiating a process to sell our
Europe-North segment and conducting a strategic review of our Latin
American businesses. We are committed to acting in the best
interests of our shareholders and to driving value creation."
There can be no assurance that the initiation of the process to
sell our Europe-North segment and the strategic review of our Latin
American businesses will result in any transactions or particular
outcomes. The Company has not set a timetable for completion of
these processes, may suspend these processes at any time and does
not intend to make further announcements regarding these processes
unless and until the Company's Board of Directors approves a course
of action for which further disclosure is appropriate.
The Company has engaged Moelis & Company LLC and Deutsche
Bank Securities Inc. as financial advisors to assist it with the
process to sell the Company's Europe-North segment. The Company has
engaged Moelis & Company LLC as financial advisor to assist it
with the strategic review of our Latin American businesses.
Europe-South Segment Moved to Discontinued Operations
During the third quarter of 2023, the Company's plan to sell the
businesses comprising its Europe-South segment met the criteria to
be reported as discontinued operations. In accordance with
Generally Accepted Accounting Principles, starting with the release
of the Company's third quarter results, assets and liabilities of
discontinued operations will be presented separately in the
Company's Consolidated Balance Sheets, and results of discontinued
operations will be reported as a separate component of consolidated
net loss in the Company's Consolidated Statements of Loss for all
periods presented, resulting in changes to the presentation in
certain prior periods' amounts.
About Clear Channel Outdoor Holdings
Clear Channel
Outdoor Holdings, Inc. (NYSE: CCO) is at the forefront of driving
innovation in the out-of-home advertising industry. Our dynamic
advertising platform is broadening the pool of advertisers using
our medium through the expansion of digital billboards and displays
and the integration of data analytics and programmatic capabilities
that deliver measurable campaigns that are simpler to buy. By
leveraging the scale, reach and flexibility of our diverse
portfolio of assets, we connect advertisers with millions of
consumers every month across more than 330,000 print and digital
displays in 19 countries, excluding countries held for sale.
Cautionary Statement Concerning Forward-Looking
Statements
Certain statements in this press release constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. The words "believe,"
"expect," "anticipate," "would," "estimate," "forecast," "goals,"
"potential," "targets" and similar words and expressions are
intended to identify such forward-looking statements. Any
statements that refer to expectations or other characterizations of
future events or circumstances, such as statements about our
strategies with respect to the Company's North-Europe segment and Latin American
businesses and our expectations of optimizing our portfolio; our
expectations with respect to the timing, closing, satisfaction of
closing conditions and benefits of the sale processes and strategic
reviews or any proposed transaction; our expectations with respect
to our America and Airports segments; and our business plans and
strategies are forward-looking statements. These statements are not
guarantees of future performance and are subject to certain risks,
uncertainties and other factors, some of which are beyond our
control and are difficult to predict.
Various risks that could cause future results to differ from
those expressed by the forward-looking statements included in this
press release include, but are not limited to: the difficulty, cost
and time required to implement our strategy, including optimizing
our portfolio, and the fact that we may not realize the anticipated
benefits therefrom; the delay or failure to satisfy the conditions
to divest our business in Spain;
our inability to complete the sales of our North-Europe segment businesses; our inability
to complete any strategic transaction with respect to our Latin
American businesses; the impact of future dispositions,
acquisitions and other strategic transactions; continued economic
uncertainty; an economic slowdown or a recession; financial and
industry conditions such as volatility in the U.S. and global
banking market; our ability to service our debt obligations and to
fund our operations, business strategy and capital expenditures;
the impact of our substantial indebtedness, including the effect of
our leverage on our financial position and earnings; the impact of
our liquidity strategy, including open market repurchases of
outstanding notes; risks of doing business in foreign countries;
fluctuations in exchange rates and currency values; the volatility
of our stock price; the impacts on our stock price as a result of
future sales of common stock, or the perception thereof, and
dilution resulting from additional capital raised through the sale
of common stock or other equity-linked instruments; our ability to
continue to comply with the applicable listing standards of the New
York Stock Exchange; the restrictions contained in the agreements
governing our indebtedness limiting our flexibility in operating
our business; and certain other factors set forth in our filings
with the SEC. You are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
stated, or if no date is stated, as of the date of this press
release. Other key risks are described in the section entitled
"Item 1A. Risk Factors" of the Company's reports filed with the
SEC, including the Company's Annual Report on Form 10-K for the
year ended December 31, 2022. The
Company does not undertake any obligation to publicly update or
revise any forward-looking statements because of new information,
future events or otherwise.
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SOURCE Clear Channel Outdoor Holdings, Inc.