Clear Channel Outdoor Holdings, Inc. (CCO) Earnings Call Transcript & Summary

Thanks everyone for today. For those of you who don't know me, my name is Courtney Bahlman. I'm the high-yield media and entertainment analyst here at Barclays. I picked up this sector in March of this year from Vince Foley. So really excited to have picked up the space, and I'm also really excited to have Clear Channel here with us today. We have Brian Coleman, who's the company's Chief Financial Officer; and Jason Menzel, who's the company's Treasurer here for which should be a pretty good discussion today. Thanks for joining us today, guys.

So I guess kind of the question on everyone's mind, if we could just start out with inflation. How is it impacting consumer? How is it impacting advertising budgets, the way that advertisers are thinking about the broader environment? Any high-level commentary you could share there, trend you've been seeing kind of throughout 2Q and how you're thinking about it for the rest of the year?

Sure, and thanks for having us today. We had our earnings call a couple of weeks ago and I'll kind of channel some of the things that were said on that call. But we -- ourselves and others are out attending other conferences, and I think the message from all of this has been pretty consistent. And again, for us, going back to earnings, we're not really hearing, seeing in the numbers, seeing in the pacing anything negative about inflation. Now we don't want to ignore all the kind of macro events that are out there. But in terms of our performance that we reported, in terms of the pacing that we were seeing at that time in terms of the tone from the advertisers, everything looks good. And when you talk about inflation kind of in that backdrop, our business has a high degree of fixed costs, and so inflation impacts us perhaps less so than many other mediums. If you think about our single largest expense which is our site lease expense, it's over 50% of our expense space, the majority is fixed. And so as long as you have high occupancy and are able to have positive rate discussions with advertisers, and those advertisers are in an environment where they want to advertise and they want to get out in front of their target audiences, which is the tone that we're hearing as people kind of are released from lockdowns in Europe or are reemerging from kind of a post-COVID environment, that's what they want to do, we're in a good spot, and we aren't seeing any kind of negativity right now in the marketplace.

No, that's great. Maybe you could just remind us real quick kind of the composition of your client base. What kind of industries maybe, what are the largest sectors that clients are coming from? And kind of any specific trends within those industries or any outperformance or underperformance that you've been seeing?

So we aren't reliant really upon any single category. Business Services has always been a large category for us. During COVID, some of the large categories such as media, amusements, entertainment, travel were all impacted. But I think the thing that I can say is across the board, a lot of the impacted -- most of the impacted categories have come back and everybody is really running at full speed. We feel pretty good. I think the one exception that Scott did mention on the call, and I'll mention it here, is auto insurance. And that's kind of a dynamic within that category as people are starting to drive again, they have more claims and their ability to advertise and they have a lot of claims kind of something that they manage. But other than that category, everybody -- every other category, strong positive sloping and the tone has been really positive.

No, that's great. So maybe kind of in the context of the broader environment along the same lines, digital deployment is a big part of your overall growth strategy and allowing customers the flexibility, the programmatic tie-in. Maybe could you talk a little bit about how you're thinking about digital deployment for the rest of the year and how it fits into what we're seeing in the broader macro economy?

Well, one of the key pillars that Scott laid out when he took over -- Scott Wells, our CEO, when he took over as CEO at the end of the year was digital transformation. And one of the key elements of that is the continuation of investing in our digital platform. In the U.S., it's over 30% of our revenue, but really a small number if you look at in terms of the panels -- total panel count. So it is something that we continue to invest in. And even during COVID, when we kind of pulled back our capital spend, digital conversion and digital replacement of signs that have aged out or key things, and we didn't really pull back in that area. And same is true for Europe. The digital product is something that adds a lot of flexibility to advertisers. They like it, it brings in new advertisers to the base, and it's something that we will continue to invest in. It's not a lack of capital. It's not a return profile. Those are very attractive. The issues that we have are with local governments and municipalities granting the digital permits. But as long as they'll grant the permits and we're able to get them, as long as we can win contracts in U.S. airports or in European street furniture contracts that have digital, those are -- that's where the focus is. And when I look at our CapEx guidance that we provided and updated at our last earnings call, we actually raised guidance. And that's a function of some inflation that we've seen in the cost of installation but also the continued leaning into, so to speak, the digital outlay, in this case, the focus in Americas.

No, that's great. So I guess kind of along the digitization programmatic line, you guys launched RADAR about 6 years ago, 2016?

Yes.

Why don't we talk about that a little bit. So any new tools you're building out on the platform? Any trends that you've been seeing? Just any color on how the platform has been performing.

Yes. Look, we're excited about RADAR. For us, it's a differentiator in the space. It's something very near and dear to, again, Scott when he ran the Americas division. And it's got such traction with investors, we're rolling it out in Europe now or similar functionality in Europe. Now RADAR is a suite of tools. It started with being able to work with advertisers and their agencies and talk about who passes through the cone of influence of each panel or sign, how that person participates in target audiences. And it's all done through -- and this is what the lawyers telling me to say, an anonymized and aggregated data, so let's be clear on that. But it's really through phone apps. And so you can track people who have opted in. As they walk through or by signs, you know about the aggregate -- from the aggregated data about the individual. And then over time, since 2006, we've built out RADARProof, which is the attribution tool showing what actions are taken post passing the signed, did somebody who passed by a Hobby Lobby sign, we've got those in the South. I don't know if you have them in the rest of the country, go to a Hobby Lobby and buy a product. We've rolled out a RADARSync, which allows us to share the data that we've collected, again, across the broad swath of potential targets and tie that into potential advertisers and their agencies. And we've even recently rolled out or relatively recently RADARConnect, which then gives us the ability, should we -- should the advertiser choose to do it, target their phone and put phone advertising based on recent signs or displays that, that person has walked by. So RADAR was something that we felt was very important to kind of the evolution of the outdoor advertising space. It is something that we use not only to sell advertising and promote campaigns but really build a relationship with advertisers and their ad agencies. And through that partnership, I think we've gotten a lot of traction in winning deals, attracting new advertisers to the space, getting disproportionate shares of advertising campaign. So we're excited about it. And as I said, we're starting to roll that out in Europe and it's starting to gain traction there as well.

No, that's awesome. Super helpful. So I guess just shifting backwards real quick. We didn't touch on your geographic strategy. You guys have a pretty good mix between world, suburban, urban footprints and the billboards that you have in airports on the transit side. Any changes to how you're thinking about this? Or any kind of forward-looking thoughts on how you're thinking about your footprint or expanding the footprint?

Sure. I think our focus, and we mentioned this pre-COVID and it kind of maybe got lost in COVID, but now that we're hopefully on the other side. Our emphasis is in the U.S. and it's largely in digital, but we have a large print network that's very valuable as well, and we want to continue to emphasize growth in our U.S. platform. As far as transit goes, for us, in the U.S., that's primarily airports. We don't have a lot of other prints but we have some. And we feel -- again, we are a strong niche player in that marketplace. I think that was kind of rounded out with the recent -- it was a year ago now -- over a year ago, the winning of the Port Authority contract, which gave us the large New York airports and. So a lot of you that are New York, or if not, you pass through New York, keep your eyes open as you go through JFK as you go through LaGuardia, as you go through some of the, I guess, the new terminal, that New York, once it opens up, those signs are ours. And they're going to be cutting-edge leading digital-oriented advertising, and there's a lot of interest given where those airports are. And for us, we feel we're a little underrepresented in the city of New York. And so having those airports really complements he the geography that we have there. But look, we are in most of the top 20 DMAs in the U.S. We hold a strong position in most of those. We like the Americas billboard and airport business. And so that's important. We also have a large European presence and a small Latin American presence. And I think the way we think about that right now is we want to continue to invest to sustain that business and continue to grow it where appropriate, emphasizing digital but where we want to focus the growth is the highest returning assets, and that right now is in the U.S.

No. I think that makes a lot of sense. So I guess shifting to the topic that's on everybody's mind, the sale of the European business. There's been some M&A in the environment, different multiples. How are you guys thinking about that? Or any updates that you might be able to provide? .

I know you have to ask the question.

I do.

Yes. We really -- we announced in December that we were undergoing a strategic review for the European assets and that we wouldn't be providing updates until -- I guess, until and if the Board thought it was appropriate to do so. So I don't really have an update on the review process specifically. But the comment that we made back in December was a -- it could include sale. And so you can imagine we're going through all the work and doing all the analysis that we can to make sure that we come up with the right decision. And that's -- I don't -- I think it's safe to say in the current environment, that's something that requires maybe even more thought than it originally would have. So that review is ongoing. I think -- as I think about kind of -- where things kind of shape up for the business in the future, I go back to the focus is in the Americas. That's where the return is. That's what we want to make the investment. Under iHeart, we're probably underinvested, and we want to catch up on that front. But again, we also think that we've made investments in the right places. The digital conversion, the RADAR suite of tools, building -- making outdoor advertising, which is notoriously difficult for advertisers to buy, making it easier, making it more automated, looking a lot more like an advertiser buying digital. And so we hope to continue to maintain and build upon our presence in the outdoor advertising slice of the pie. But we also want to tap into other slices, like the digital advertising pocket. That's a big one. A small increase in capturing some of that spend could be very meaningful to the outdoor industry and us in particular.

Yes, no, that definitely makes sense. It's super helpful. So I guess maybe along the same lines of M&A. How are you guys thinking about the potential for tuck-in acquisitions across the Americas and the competitive environment within the M&A environment for the duration of 2022?

Yes. Price is pretty robust. But it's also -- we're seeing some activity, and I think -- it could be a function of the macro environment, it could be a function of family owners and other owners and developers looking at potential tax changes. But there are opportunities. We want to be active in the tuck-in space. I think in Q4, we did around $20 million of M&A. We started to break it out separately. Q1 wasn't particularly active. But that wasn't a sign of there not being opportunities in the pipeline. I think it was just timing more than anything else. So I would expect the company to continue to look at tuck-in acquisitions that are accretive, make sense, that fit into kind of where we are, and I don't expect that to change unless something in the macro changes. So we've got liquidity, we've got opportunities. And where it makes sense, we're going to be there.

Good stuff. So let's shift gears, I guess, a little bit. Can we talk about capital allocation? How does M&A fit into the capital allocation priorities? And if you could just refresh us on how you're thinking about capital allocation this year and into next, that would be helpful also.

Yes. Again, I think we want to continue to invest in digital. And while we don't really drive when those opportunities come up, we want to make sure that we have the capital if and when they do. It's something like L.A. came through on their digital sign ordinance, and we got the opportunity to turn back on all or a portion of the 80 signs that we lost a decade ago, but we want to be there and be able to do that. If we want a big contract in a city that currently doesn't have digital, and there are some, we want to be there for that. So I think, first and foremost, if I were kind of rack and stack different opportunities, that is the biggest return. It's just not something that we control. M&A is somewhat the same way. I mean, we have a pipeline of development. We want to continue to look at opportunities and make sure we have the capital to be there. I think given the current kind of macroeconomic overlay even now we're not seeing it in our business, it probably makes sense to hold on to the liquidity that we have, spend it where appropriate, but not declare excess yet. Should that happen, should things change, then I think it would be appropriate to possibly look at them. Repurchasing debt, if and when appropriate, we did pay off our revolvers at the end of last year. So it was something that was on our mind. But we'll wait and see. I think reinvesting in the business right now is the highest return.

Absolutely. So shifting gears here to the balance sheet since we are at a debt conference, and that is quite topical given the investor base that's here. Why don't we talk a little bit about leverage? I know you guys have first lien leverage at about 5.4x. So that's down. But your overall leverage, I think, is sitting at around 10x. Any plans on how you're trying to conquer that and get it down moving forward?

Yes. I'm Jason, thanks for having as Brian said earlier. So when we think about the leveraging or deleveraging, it's still one of our most important strategic priorities from a nonoperating perspective. And I think we've taken actions over the years to utilize our balance sheet and put the prepayable debt on the lower interest and push out maturities. And that was done by design, having prepayable debt in the form of our term loan facility. As we think about moving forward, there's lots of ways to reduce leverage. As Brian mentioned, we paid off our credit facilities at the end of the year. We use some of the excess -- I won't call it excess just yet, as you said, we'll use some of the liquidity to invest in the business because whether we're paying down the quantum of debt or we're investing in EBITDA-producing assets, you are delevering to an extent. So we do see that, especially now as the business is recovering. And as you said, our first lien leverage ratio has come down below the threshold. So when we think about deleveraging, I mean, again, it is and remains a very strategic, important aspect of our balance sheet. And we haven't given any guidance on where we anticipate leverage to be by the end of the year, but we do see the recovery in EBITDA and we have been paying down our facilities. So both those definitely help towards that deleveraging story.

I think the only thing I'd add is, obviously, path to deleveraging is critical. I mean, if you think about the U.S. business and look at our peers, eventually the option to convert to a REIT is something, I think, that we need to preserve. But you have to get leverage down to do that. And so COVID put a lot of things on hold, but we're on the other side of it. I think we need to need to figure out what the business looks like. That's part of the strategic review. We need to generate levered free cash flow. We need to attack leverage on either side of the fraction or maybe both. And then eventually, that leverage target is either at or within a step of what you would need to be to successfully REIT, and then you have to make the decision at that point in time is that where I want to be. So I think that's kind of the next few years and the work that's cut out for us. And there's, like you said, there's plenty of leverage to work on.

Yes. No, absolutely. I should have asked this earlier, but I guess, shifting back to the European operations. Obviously, we've seen kind of a resurgence in tourism. Airport traffic has been much stronger than it was throughout the COVID-affected period. Any updates on how Europe is performing as compared to the Americas? Are you seeing outperformance there? Or maybe a little bit more color on how airport is performing just in general.

Sure. So airports is not a big part of the European business, but I think it does point to people traveling, markets opening up and tourism in Europe. And Europe has performed very strong. It's kind of country by country, so I don't want to -- I'll hit it on a consolidated level, and then I'll talk about some countries, how about that. On a consolidated level, you could say the U.S. is back to 2019 levels and through it basically and then some on the core business. Airports, I think passenger traffic is about 90% of what it was pre-COVID, but it's coming back. I think we're seeing business travelers -- yes. I mean, anybody who flew here probably got to see some of that. International travel is anticipated to go up. Certainly, I bought some tickets to Europe and they were not cheap. So I think we're all moving in the right direction, and the airport has actually rebounded faster than we thought they would in the U.S. But comparing that to Europe, since that's really what the question was, is we're seeing that recovery in Europe as well. On a consolidated basis, we're not quite back up to 2019 revenue and EBITDA levels. But Justin, our CEO of Europe, talked about between now and the end of the year, he would expect that. And so that's a positive sign. I think that we're excited about getting Europe back. If you think about the European business, the portfolio mix, it's a lower-margin business. And while it has some of the fixed cost characteristics that the U.S. has, because of that lower margin, EBITDA or cash flow is very volatile. So in downtimes, it can flip very quickly, and in uptime, it can grow very quickly. And so we are excited about that trajectory. It's positive. We do expect Europe to kind of be behind America a little bit, but to get back to 2019 levels. They are already there in some countries like the U.K., where we have a very strong digital street furniture network. They're already well above 2019 levels. But in other markets that digital is not a big part of the business, that's really the drag, so to speak. But I think as long as things continue its kind of upward slope on trajectory, we'll get there.

Yes. So just kind of digging into that a little further, digital versus static billboards kind of throughout Europe. Have there been any nuances to the performance kind of across both? Any particular trends you're seeing in static billboards versus just digital? Has there been a higher digital uptake rate amongst clients?

Yes, there has. And it's a bit of a double-edged sword, but maybe one edge of the sword is bigger than the other. Digital is good. It is flexible, and particularly in Europe, when you have the street furniture networks, it is something that advertisers really value. And even during COVID, if you had digital networks, people may not have been going downtown to work, but they were going to their grocery stores in their local areas and we have a presence there. So you were still hitting the audience just in a different place. And so I think the great thing about digital is it's flexible, it brings in new advertisers. And if you can sell it like in a network throughout the country or in major metropolitan areas, it's a very attractive asset to have. So we want to continue to win the contract and have that digital component of those contracts as a key decision criteria for us in terms of making that investment. The other side is when the markets turn down, it's very easy to pull advertising. If you kind of had the extremes in our business, you can see that as we entered into COVID, digital advertising pulled back first as it could. And then airports advertising took almost a quarter because -- before you saw the impact because of the signs and the firms and people wanted to be in those spaces, and they were contracted to be there longer and they didn't want to give up those spaces out of fear of losing it to someone else. Digital brings in a lot of upside, but the one downside is -- I guess there's 2, one that people can react and be flexible the other way; and it also -- it limits your visibility because people can buy so quickly and come in and out of the market so fast that it's tough to use pacing information in the same way you did when people ordering vinyl to be printed and put up on the board and were committed for a period of time on their advertising. But by and large, we are excited about digital. We think it's important. We thought it's important for the past decade, and we'll continue to invest in it because there is still room and opportunity to invest.

No, there's definitely a lot of room there. I guess I should have asked this at the beginning also, but I guess, maybe back-paddling a little bit more. I keep thinking of all these questions I want to ask. The broader outdoor industry is pretty resilient as a whole. And we've discussed this, consistently been about 3% to 5% of total advertising market share. How are you thinking about how the advertisers thinking about how outdoor fits into advertising as a whole and the value of the medium?

I think we saw a lot of positive traction pre-COVID, and during COVID, of course, everything was more or less put on hold. But now that we're on the other side of it, I think we've picked right up where we left off. And I mean that in a number of ways. I think, a, people or advertisers and agencies I think are realizing that may be overinvested in certain types of advertising such as digital, such as broadcast TV and may be underrepresented in outdoor. With the tools that ourselves and others have put in place to help with planning, to help with the buying process, to help improve attribution, I think there's a greater level of confidence in advertisers going to the outdoor space. And so I agree with you, if you look historically through recessionary periods or periods of economic volatility, outdoor has been pretty resilient. I would like to think that with the investments we've made and with the relationships we've built and with the information, the data we can now share that we couldn't before, we've even improved our positioning vis-a-vis other traditional media and even digital media to a certain extent where people think they're over-indexed. And I think we'd be more resilient in the case of economic stress.

Yes. No, that's great. I definitely want to make sure -- I think we have a little bit of time left. I definitely want to make sure that I open the floor to investor questions, if anyone has. Just give us a shout. We'll get you the mic. If not, I definitely have a couple more questions I'd like to go through, but I don't want to overlook any questions if there are any. So with that, does anyone have any questions?

I think we did that good of a job.

Great job, Brian. Great job, Jason. All right. So do you guys mind if we continue a little bit, talk about a couple more things? Good stuff.

Sure, please.

So maybe kind of back to the debt back to the balance sheet. How are you guys thinking about a rising rate environment? How are you guys thinking about your floating rate debt and the potential to mitigate any potential additional interest accrual on the debt? How are you thinking of that?

So just to put it in context, we have out of our capital structure, 66% of that is fixed at this point. And we took advantage of creating that structure throughout 2019 and again a little bit in '20, a little bit in '21, where we're taking advantage of these very low-cost interest rate environments, right? And not only that, we saw spreads at very low levels and we took the opportunity to take out some of our higher cost debt and push it out further down the maturity stack. We have a lot of runway in that maturity profile now. And with 66% of that debt fixed at low rates, I think we feel fairly good about the mix of floating to fixed. And just as a reminder, the only floating rate debt that we have on our credit facilities and our term loan facility. So we feel pretty good about it. And we think we've taken the right actions over the last couple of years to ensure that we are taking advantage of that market environment, I wouldn't call it market timing, I'll just call it the market environment. So I think we feel pretty good. And on top of that, our cost of debt today is around 5.6%. And we have a large chunk of cash on the balance sheet. I'm not saying that's offsetting a significant rise in rates, but it definitely is something that will capture some of the income on the other side. I think we feel pretty good about where we are.

I would -- again, not to belabor, I would just add. If you think about the business outdoor, how it's performed in prior inflationary periods, we're kind of at that point where if it's inflation and interest rates are rising and businesses are growing, that's more in line with our business. And so we can afford higher interest rates on the 30% of our debt that's floating. I used to have Jason's job, so I always think about these things. Whereas we've set this up in an environment where we did capitalize on great rates, which Jason said. We obviously will keep our eyes open if there's opportunities to mitigate and fix out or repay some of our prepayable debt. We certainly want to keep open. But we're comfortable with a certain amount of floating debt because we think it aligns with the economic environment, at least in terms of inflation. Now obviously, if you've got inflation in a recession, then you may want to hedge a little more.

Yes. No, absolutely. So along the same lines, refinancing opportunities or potential buybacks, how are you guys thinking about those? I have to ask.

I think as far as the first part of that question, we -- like I said, we have maturity stack that's got quite a bit of runway. I think the nearest maturity that we have are the 2025s. They're sitting at our European entity, but it is very close, the assets is secured. And actually, I think it trades fairly well today. So the rest of the time that we're looking through our capital structure is where can we be opportunistic. And we have a little bit of flexibility to be patient, but I think we'll be on the sidelines making sure that we take advantage of our opportunity. And then with regards to the buyback of certain of our bonds, depending on where they're trading, I know we've seen recent activity that has...

[indiscernible]

If you would ask that question 3 weeks ago, it's probably a different answer.

It would be a different answer. But we will monitor those opportunities and take advantage of going back to the capital allocation decision if that produces the right type of returns versus investing in the business. It's something we'll take a serious consideration on.

Yes. No, that's super helpful. Just want to check back in, does anyone have any questions? I'm super happy to keep going. I don't know if there's anything else that you guys would like to touch on that we haven't touched on. I'm full of questions, I could go on all day. But maybe similarly, Latin America, if we could talk about that. How -- obviously, there's a lot of nuances kind of between your American consumer, European consumer, your Latin American consumer and those respective behaviors for those advertisers, right? Could you talk a little bit about what you're seeing in LatAm? Are you seeing any particular strength there?

So first of all, I'll say LatAm is very small for us.

It's very. Yes.

it's very small. But it is an interesting marketplace. We're in 4 countries, we're in Brazil, Peru, Mexico and Chile. And each one is a little bit different and it is fascinating. But I guess I would say that it hasn't completely recovered from COVID and it is probably behind Europe. It probably won't until the very end of the year or possibly next year. There are certain countries where we were on track to do that. Brazil is a strong country for us, but they did not have their street carnival. I think they actually did, but it wasn't official. That's Brazil, right? And so we've got good contracts in Brazil, digital. We are not in Sao Paulo. That's probably a weakness there, but that business is on the right track. Chile, we've got a presence in the wealthier districts of Santiago where a lot of the advertising spend and then in malls and digital, so a niche presence, highly digital, that performs pretty well. In Mexico, we did not renew the ECOBICI bike contract in Mexico City, but a lot of the advertising panels that went along with that, we feel we'll be able to preserve. So we've got the revenue drop off of losing the bike contract, which was just running the bikes and getting paid by the city. So it will impact the top line. But the value and what we really specialize in is the advertising. We expect to keep that. And so 3 of the 4 countries, I think, we're pretty excited about, and we do think we're on the right trajectory and we'll rebound. Peru is more than just kind of a COVID and economic headwinds. We've got some political headwinds and they're all kind of mixed in there. But we've got a great presence and we'll continue to monitor space there. I think I conclude with Latin America by saying this. I talked about it but it is not core to the rest of the business, and investors and stakeholders should think about it that way. You certainly don't want to dispose off Latin America when it hasn't recovered and isn't generating positive EBITDA. It historically does and it will be valuable again, and then I think we'll have to think about it and when -- if and when that happens and decide whether or not we want to continue to manage it when it's not core to the rest of the business.

No, absolutely. I know that Latin America is small overall in the context but it helps to kind of understand how you're thinking about the 3 different regions and like consumer behaviors and all of that. Is there any kind of additional color you might be able to share? I'm assuming you would have expect most of the consumers and even advertisers in the Latin American markets to be kind of disproportionately affected as compared to American, European? Or maybe disproportionate isn't the right word, maybe affected to a more meaningful degree?

Yes. So it's interesting, because of our emphasis in digital in our Latin American markets, a lot of the advertising is really from multinational corporations. And so the Netflix and the Amazons or the big consumer products or the big banks, then they have different names, but it's big country advertisers or multinational advertising. That's not to say we don't have some print assets or we don't have exposure to the local companies, which might be disproportionately impacted by the things that are going on. And certainly, if somebody would have cut back their budgets like a Netflix or an Amazon or a Hulu, then that could impact us. But countering that is that these are high-growth markets, and there are a lot of subscribers and there's a lot of competition between advertisers for those subscribers. And because of our digitization, we are more exposed or benefit depending on the environment from that than we really are at the local level. We will have competitors that will have the transit agreements, the print bus stops in the various cities that we're talking about. And they're going to have a greater amount of exposure, that local advertising. I think that helps us right now because in the current environment in Latin America, we say the COVID recovery has lagged. It hasn't lagged in digital. Digital is almost back. And when you have a disproportionate amount of your assets in digital, that's helpful. That is us in 3 of the 4 countries. And so I think we're benefiting from that. If that's helpful color on how we see it.

Very, very helpful. I think I'm about done growing you guys for today. Just going to do one last survey of the audience. Does anyone have any questions that they would like to post to Brian or Jason sent up here before we cut them loose? All right. With that, Brian, Jason, thank you guys so much for meeting to truck up from San Antonio and joining us today.

I suggest everyone makes that trip. Regan kind of has often boxed stuff. But if you go to San Antonio, you go to Dallas, you'll see a lot of Clear Channel signs. So I encourage anybody to make that trip.

Yes, my parents and my dad is a chemical engineer, long history as a purpose I promise. My dad is a chemical engineer, my mom in real estate. They always ask, what do you do? We're in the car driving the other day. "Oh, look at our research billboard companies." I was pointing out all the Clear Channel or in the upfront. And they're like, "Oh my, god, that's so cool, like those companies." So it's cool to see it in practice. But thank you guys so much for joining us today, and we'll see you again soon.

Thank you. Thank you, Courtney. Thank you, everyone.

Thank you.