Clear Channel Outdoor Reports First Quarter 2009 Results

SAN ANTONIO--(Business Wire)--
Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) today reported results for its
first quarter March 31, 2009.

The Company reported revenues of $582.2 million in the first quarter of 2009, a
25% decrease from the $775.6 million reported for the first quarter of 2008.
Included in the Company`s revenue is a $64.5 million decrease due to movements
in foreign exchange; excluding the effects of these movements in foreign
exchange, the revenue decline would have been 17%. See reconciliation of revenue
excluding effects of foreign exchange to revenue at the end of this press
release.

Clear Channel Outdoor`s operating expenses decreased 19% to $497.4 million
during the first quarter of 2009 compared to 2008. Included in the Company`s
first quarter 2009 expenses is a $62.2 million decrease due to movements in
foreign exchange; excluding the effects of these movements in foreign exchange,
decline in expenses would have been 9%. See reconciliation of expenses excluding
effects of foreign exchange to expenses at the end of this press release. Also
included in the Company`s first quarter 2009 operating expenses are
approximately $3.0 million of non-cash compensation expense, compared to
non-cash compensation expense of $2.1 million in the first quarter of 2008, and
approximately $6.9 million of restructuring charges.

Clear Channel Outdoor`s net loss and diluted loss per share were $87.9 million
and $0.25, respectively, during the first quarter of 2009. This compares to net
income of $88.9 million or $0.25 per diluted share in the first quarter of 2008.
The Company`s net loss in the first quarter 2009 was primarily attributable to a
reduction in revenues. Clear Channel Outdoor`s first quarter 2008 net income
included an approximate $75.6 million nontaxable gain, or $0.21 per diluted
share, on the divestiture of its interest in a South African outdoor advertising
company. Excluding this gain, Clear Channel Outdoor`s first quarter 2008 net
income would have been $13.3 million or $0.04 per diluted share. See
reconciliation of net income and diluted earnings per share at the end of this
press release.

The Company`s OIBDAN was $73.6 million in the first quarter of 2009, a 50%
decrease from the first quarter of 2008. The Company defines OIBDAN as net
income adjusted to exclude non-cash compensation expense and the following line
items presented in its Statement of Operations: Amount attributable to
noncontrolling interest; Income tax benefit (expense); Other operating income -
net; Equity in earnings of nonconsolidated affiliates; Interest expense; Other
income (expense) - net and Depreciation and amortization. See reconciliation of
OIBDAN to net income at the end of this press release.

The Company anticipates filing its Quarterly Report with the Securities and
Exchange Commission (SEC) on Form 10-Q later today. This Quarterly Report
includes further details and discussion of the Company`s first quarter results.

Mark P. Mays, Chief Executive Officer of Clear Channel Outdoor, commented,
"While our outdoor business continues to be impacted by the macroeconomic and
advertising related trends of recent months, our outdoor properties are second
to none in their quality, locations and innovation, and our employees are the
best in the business."

Paul J. Meyer, President and Chief Executive Officer - Americas and
Asia/Pacific, stated, "As was the case in the fourth quarter of 2008, the
sluggish U.S. economy negatively affected almost all of our domestic markets and
products. However, we were encouraged by the success of our efforts to reduce
expenses, which exceeded our expectations. We also were pleased with the
continued resilience of our Latin American and Canadian businesses to the global
economic downturn, and with the growth in our digital billboard revenue. That
growth was due principally to the significant increase in our digital inventory,
particularly during the second half of 2008. However, in recognition of the
current overall weakness in advertising demand, we have temporarily scaled back
our digital deployment plan, especially in our smaller markets."

Revenue, Direct Operating and SG&A Expenses, and OIBDAN by Division

(In thousands) Three Months Ended %
March 31, Change
2009 2008
Post-merger Pre-merger
Revenue
Americas $ 270,187 $ 333,362 (19 %)
International 312,029 442,217 (29 %)
Consolidated revenue $ 582,216 $ 775,579 (25 %)

Direct Operating and SG&A Expenses by Division
Americas $ 193,719 $ 214,620
Less: Non-cash compensation expense (2,168 ) (1,538 )
191,551 213,082 (10 %)

International 303,653 400,824
Less: Non-cash compensation expense (656 ) (392 )
302,997 400,432 (24 %)

Plus: Non-cash compensation expense 2,824 1,930
Consolidated direct operating and SG&A expenses $ 497,372 $ 615,444 (19 %)

The Company`s 2009 revenue and direct operating and SG&A expenses decreased approximately $64.5 million and $62.2
million, respectively, from foreign exchange movements during the first quarter of 2009 as compared to the same period
of 2008.

OIBDAN
Americas $ 78,636 $ 120,280 (35 %)
International 9,032 41,785 (78 %)
Corporate (14,024 ) (16,056 )
Consolidated OIBDAN $ 73,644 $ 146,009 (50 %)

See reconciliation of OIBDAN to net income at the end of this press release.

Restructuring Program

On January 20, 2009, CC Media Holdings announced that it had commenced a
restructuring program targeting a reduction of fixed costs by approximately $350
million on an annualized basis. The restructuring program will also include
other actions, including elimination of overlapping functions and other cost
savings initiatives. The program is expected to result in restructuring and
other non-recurring charges of approximately $200 million, although additional
costs may be incurred as the program evolves. It is estimated that approximately
40% of the anticipated cost savings and related charges will be attributable to
Clear Channel Outdoor. The cost savings initiatives are expected to be fully
implemented by the end of the first quarter of 2010. No assurance can be given
that the restructuring program will be successful or will achieve the
anticipated cost savings in the timeframe expected or at all. In addition, the
restructuring program may be modified or terminated in response to economic
conditions or otherwise.

For the first quarter of 2009, the Company recognized approximately $6.9 million
of expenses related to the restructuring program.

Restructuring Expenses

(In millions) Three Months Ended Three Months Ended
March 31,2009 December 31,2008
Americas $ 2.6 $ 8.4

International 3.2 27.1

Corporate 1.1 -__
Total $ 6.9 $ 35.5

TABLE 1 - Financial Highlights of Clear Channel Outdoor Holdings, Inc. and Subsidiaries - Unaudited

Three Months Ended
(In thousands, except per share data) March 31,
2009 2008 %
Post-merger Pre-merger Change
Revenue $ 582,216 $ 775,579 (25 %)
Direct operating expenses 379,608 470,834 (19 %)
Selling, general and administrative expenses 117,764 144,610 (19 %)
Corporate expenses 14,246 16,234 (12 %)
Depreciation and amortization 101,908 105,090
Other operating income - net 4,612 2,372
Operating income (loss) (26,698 ) 41,183

Interest expense 38,773 36,624
Equity in earnings (loss) of nonconsolidated affiliates (2,293 ) 78,043
Other income (expense) - net (3,168 ) 12,547
Income (loss) before income taxes (70,932 ) 95,149
Income tax benefit (expense):
Current (2,671 ) 4,901
Deferred (17,752 ) (12,801 )
Income tax benefit (expense) (20,423 ) (7,900 )
Consolidated net income (loss) (91,355 ) 87,249
Amount attributable to noncontrolling interest (3,475 ) (1,657 )

Net income (loss) attributable to the Company $ (87,880 ) $ 88,906

Diluted net earnings per share $ (.25 ) $ .25

Weighted average shares outstanding - Diluted 355,331 355,794

The information in Table 1 is presented for two periods: post-merger and
pre-merger. Preliminary purchase accounting adjustments were pushed down to the
opening balance sheet of the Company on July 31, 2008 as the merger occurred at
the close of business on July 30, 2008 and the results of operations subsequent
to this date reflect the impact of the new basis of accounting. The financial
reporting periods are presented as follows:

* The period from January 1, 2009 through March 31, 2009 includes the
post-merger period of the Company, reflecting the purchase accounting
adjustments related to the merger that were pushed down to the Company.
* The period from January 1, 2008 through March 31, 2008 includes the pre-merger
period of the Company. The consolidated financial statements for all pre-merger
periods were prepared using the historical basis of accounting for the Company.
As a result of the merger and the associated preliminary purchase accounting,
the consolidated financial statements of the post-merger periods are not
comparable to periods preceding the merger.

Supplemental Disclosure Regarding Non-GAAP Financial Information

Operating Income (Loss) before Depreciation and Amortization (D&A), Non-cash
Compensation Expense and Other Operating Income - Net (OIBDAN)

The following tables set forth Clear Channel Outdoor's OIBDAN for the three
months ended March 31, 2009 and 2008. The Company defines OIBDAN as net income
adjusted to exclude non-cash compensation expense and the following line items
presented in its Statement of Operations: Amount attributable to noncontrolling
interest; Income tax benefit (expense); Other income (expense) - net; Equity in
earnings of nonconsolidated affiliates; Interest expense; Other operating income
- net; and Depreciation and Amortization.

The Company uses OIBDAN, among other things, to evaluate the Company's operating
performance. This measure is among the primary measures used by management for
planning and forecasting of future periods, as well as for measuring performance
for compensation of executives and other members of management. This measure is
an important indicator of the Company's operational strength and performance of
its business because it provides a link between profitability and cash flows
from operating activities. It is also a primary measure used by management in
evaluating companies as potential acquisition targets.

The Company believes the presentation of this measure is relevant and useful for
investors because it allows investors to view performance in a manner similar to
the method used by the Company's management. It helps improve investors' ability
to understand the Company's operating performance and makes it easier to compare
the Company's results with other companies that have different capital
structures, stock option structures or tax rates. In addition, this measure is
also among the primary measures used externally by the Company's investors,
analysts and peers in its industry for purposes of valuation and comparing the
operating performance of the Company to other companies in its industry.

Since OIBDAN is not a measure calculated in accordance with GAAP, it should not
be considered in isolation of, or as a substitute for, net income as an
indicator of operating performance and may not be comparable to similarly titled
measures employed by other companies. OIBDAN is not necessarily a measure of the
Company's ability to fund its cash needs. As it excludes certain financial
information compared with operating income and net income (loss), the most
directly comparable GAAP financial measures, users of this financial information
should consider the types of events and transactions, which are excluded.

In addition, because a significant portion of the Company's advertising
operations are conducted in foreign markets, principally France and the United
Kingdom, management reviews the operating results from its foreign operations on
a constant dollar basis. A constant dollar basis (i.e. a foreign currency
adjustment is made to the 2009 actual foreign revenues and expenses at average
2008 foreign exchange rates) allows for comparison of operations independent of
foreign exchange movements.

As required by the SEC, the Company provides reconciliations below to the most
directly comparable amounts reported under GAAP, including: (i) OIBDAN for each
segment to consolidated operating income; (ii) Revenue excluding foreign
exchange effects to revenue; (iii) Expense excluding foreign exchange effects to
expense (iv) OIBDAN to net income and (v) Net income and diluted earnings per
share excluding certain items discussed earlier.

Corporate and
(In thousands) Non-cash Depreciation other
Operating compensation and reconciling
income (loss) expense amortization items OIBDAN

Three Months Ended March 31, 2009 (Post-merger)
Americas $ 29,818 $ 2,168 $ 46,650 $ - $ 78,636
International (46,882 ) 656 55,258 - 9,032
Corporate (14,246 ) 222 - - (14,024 )
Other operating income - net 4,612 - - (4,612 ) -
Consolidated $ (26,698 ) $ 3,046 $ 101,908 $ (4,612 ) $ 73,644

Three Months Ended March 31, 2008 (Pre-merger)
Americas $ 68,643 $ 1,538 $ 50,099 $ - $ 120,280
International (13,598 ) 392 54,991 - 41,785
Corporate (16,234 ) 178 - - (16,056 )
Other operating income - net 2,372 - - (2,372 ) -
Consolidated $ 41,183 $ 2,108 $ 105,090 $ (2,372 ) $ 146,009

Reconciliation of Revenue excluding Foreign Exchange Effects to Revenue

(In thousands) Three Months Ended %
March 31, Change
2009 2008
Post-merger Pre-merger

Revenue $ 582,216 $ 775,579 (25 %)
Excluding: Foreign exchange decrease (increase) 64,537 -
Revenue excluding effects of foreign exchange $ 646,753 $ 775,579 (17 %)

International revenue $ 312,029 $ 442,217 (29 %)
Excluding: Foreign exchange decrease (increase) 60,949 -
International revenue excluding effects of foreign exchange $ 372,978 $ 442,217 (16 %)

Reconciliation of Expense (Direct Operating and SG&A Expenses) excluding Foreign Exchange Effects to Expense

(In thousands) Three Months Ended %
March 31, Change
2009 2008
Post-merger Pre-merger

Expense $ 497,372 $ 615,444 (19 %)
Excluding: Foreign exchange decrease (increase) 62,222 -
Expense excluding effects of foreign exchange $ 559,594 $ 615,444 (9 %)

International expense $ 303,653 $ 400,824 (24 %)
Excluding: Foreign exchange decrease (increase) 59,416 -
International expense excluding effects of foreign exchange $ 363,069 $ 400,824 (9 %)

Reconciliation of OIBDAN excluding Foreign Exchange Effects to OIBDAN

(In thousands) Three Months Ended %
March 31, Change
2009 2008
Post-merger Pre-merger

OIBDAN $ 73,644 $ 146,009 (50 %)
Excluding: Foreign exchange decrease (increase) 2,315 -
OIBDAN excluding effects of foreign exchange $ 75,959 $ 146,009 (48 %)

Reconciliation of OIBDAN to Net income

(In thousands) Three Months Ended %
March 31, Change
2009 2008
Post-merger Pre-merger
OIBDAN $ 73,644 $ 146,009 (50 %)
Non-cash compensation expense 3,046 2,108
Depreciation & amortization 101,908 105,090
Other operating income - net 4,612 2,372
Operating income (loss) (26,698 ) 41,183

Interest expense 38,773 36,624
Equity in earnings (loss) of nonconsolidated affiliates (2,293 ) 78,043
Other income (expense) - net (3,168 ) 12,547
Income (loss) before income taxes (70,932 ) 95,149
Income tax benefit (expense):
Current (2,671 ) 4,901
Deferred (17,752 ) (12,801 )
Income tax benefit (expense) (20,423 ) (7,900 )
Consolidated net income (loss) (91,355 ) 87,249
Amount attributable to noncontrolling interest (3,475 ) (1,657 )

Net income (loss) attributable to the Company $ (87,880 ) $ 88,906

Reconciliation of Net Income and Diluted Earnings per Share ("EPS")

(In millions, except per share data) Three Months Ended Three Months Ended
March 31, 2009 March 31, 2008
Net Income EPS Net Income EPS
Reported Amounts $ (87.9 ) $ (0.25 ) $ 88.9 $ 0.25
Less: Gain on disposition of asset - - (75.6 ) (0.21 )
Amounts excluding certain items $ (87.9 ) $ (0.25 ) $ 13.3 $ 0.04

About Clear Channel Outdoor Holdings

Clear Channel Outdoor, headquartered in San Antonio, Texas, is a global leader
in the outdoor advertising industry providing clients with advertising
opportunities through billboards, street furniture displays, transit displays,
and other out-of-home advertising displays.

Certain statements in this document constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
Clear Channel Outdoor to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. The words or phrases "guidance," "believe," "expect," "anticipate,"
"estimates" and "forecast" and similar words or expressions are intended to
identify such forward-looking statements. In addition, any statements that refer
to expectations or other characterizations of future events or circumstances are
forward-looking statements.

Various risks that could cause future results to differ from those expressed by
the forward-looking statements included in this document include, but are not
limited to: changes in business, political and economic conditions in the U.S.
and in other countries in which Clear Channel Outdoor currently does business
(both general and relative to the advertising industry); fluctuations in
interest rates; changes in operating performance; shifts in population and other
demographics; changes in the level of competition for advertising dollars;
fluctuations in operating costs; technological changes and innovations; changes
in labor conditions; changes in governmental regulations and policies and
actions of regulatory bodies; fluctuations in exchange rates and currency
values; changes in tax rates; and changes in capital expenditure requirements
and access to capital markets. Other unknown or unpredictable factors also could
have material adverse effects on Clear Channel Outdoor`s future results,
performance or achievements. In light of these risks, uncertainties, assumptions
and factors, the forward-looking events discussed in this document may not
occur. 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 document. Other key risks are described in Clear Channel
Outdoor`s reports and other documents filed with the U.S. Securities and
Exchange Commission, including in the section entitled "Item 1A. Risk Factors"
of the Company`s first Quarter Report on Form 10-Q for the period ended March
31, 2009 orthe Company`s Annual Report on Form 10-K for the period ended
December 31, 2008. Except as otherwise stated in this document, Clear Channel
Outdoor does not undertake any obligation to publicly update or revise any
forward-looking statements because of new information, future events or
otherwise.

Clear Channel Outdoor Holdings, Inc.
Investors:
Randy Palmer, 210-822-2828
Senior Vice President of Investor Relations
or
Media:
Lisa Dollinger, 210-832-3474
Chief Communications Officer
www.clearchanneloutdoor.com

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