Ladies and gentlemen thank you for standing by. Welcome to the iHeartMedia Inc. and Clear Channel Outdoor Holdings Inc. 2016 First Quarter Earnings Conference Call. [Operator Instructions]. As a reminder, today's conference call is being recorded. I would now like to turn the conference over to your host, Eileen McLaughlin, Vice President, Investor Relations. Please go ahead.

Good morning and thank you for joining our 2016 first quarter earnings call. On the call today are Rich Bressler, President, Chief Operating Officer and Chief Financial Officer; and Brian Coleman, Senior Vice President and Treasurer. We'll provide an overview of the first quarter 2016 financial and operating performances of iHeartMedia Inc. and its subsidiaries: iHeartMedia Capital One, LLC; and iHeartCommunications Inc., Clear Channel Outdoor Holdings Inc., and Clear Channel International BV. For purposes of this call, when we describe the financial and operating performance of iHeartMedia Inc., that also describes the performance of its subsidiaries; iHeartMedia Capital One, LLC and iHeartCommunications Inc. After an introduction and a review of the quarter, we will open up the line for questions. Before we begin, I would like to remind everyone that this conference call includes forward-looking statements. These statements include management's expectations, beliefs, and projections about performance and represent management's current belief. There can be no assurance that management's expectations, beliefs, or projections will be achieved or that actual results will not differ from expectations. Please review the statements of risks contained in our earnings press releases and filings with the SEC. Pacing data will also be mentioned during the call. For those of you not familiar with pacing data, it reflects revenues booked at a specific date versus the comparable date in the prior period, and may or may not reflect the actual revenue growth rate at the end of the period. During today's call, we will provide certain performance measures that do not conform to generally accepted accounting principles. We provided schedules that reconcile these non-GAAP measures with our reported results on a GAAP basis, as part of our earnings press releases and the slide presentation, which can be found in the Investor sections of our websites, iheartmedia.com, and clearchanneloutdoor.com. Please note that our two earnings releases and the slide presentation provide a detailed breakdown of foreign exchange and non-cash compensation expense items, as well as segment revenues and OIBDAN. Please note that the information provided on this call speaks only to management's reviews as of today, May 4, and may no longer be accurate at the time of a replay. With that, I will now turn the call over to Rich Bressler.

Thank you, Eileen and good morning everyone. Thanks for joining us. We are pleased with the success of our growth initiatives in the quarter. It shows that the investments we've made and are still making to transform iHeartMedia into 21st century multi-platform media and entertainment company are continuing to pay off. With our diverse portfolio of assets, we have the ability to reach consumers wherever they are. More than ever, we're confident that we have the right strategy to maximize the value of radio and outdoor as true mass market mediums, while building our other platforms including digital, events, and social on top of that base, and that's because fundamental trends continue to drive powerful opportunities for our businesses. As [Neilson’s] latest comparable metrics report shows, TV's weekly reach keeps falling from its historic high of 95%, now reaching just 86% of American adults over 18, and with millennial that reach is even lower, at 75%, quite a drop from its record high of 95%. By contrast, broadcast radio's reach remains the highest and most stable of all media continuing to reach 93% of all US adults 18 plus, with millennials’ reach almost the same, at 92%. So radio has now surpassed TV to become the number one reach medium. Put another way, more adults and more millennials are reached by AM/FM radio than any other medium. Back in 1970, radio also reached 93% of American adults. That's remarkable stability, showing that radio is not being negatively affected by digital, unlike newspapers, magazines, and TV. To the contrary, digital has proven to be a nice add-on to broadcast radio. With broadcast radio as its core platform, iHeartMedia also drives social media engagement to a level few other companies can match. For example, just look at the 115 billion, that's billion…

[Operator Instructions] and our first question will come from the line of Avi Steiner with JPMorgan. Your line is open.

The first question, I'm going to try and bucket in different categories. But the first question here on domestic outdoor, the growth at 4% was better than we've seen in that division in a while. Your pacing, I know it's a point of time also strong, and I'm trying to understand the way for your occupancy comments, if there's any one-time drivers in there, with the Dulles win or the Dallas loss in those numbers. Really I'm trying to get at sustainability. And then lastly on domestic outdoor, how do we think about margins in that segment this year, given how strong Q1 was on the top line, I would've thought it would have been a little stronger on the EBITDA line.

Look, I really kind of went through when I covered in my highlights; first of all, these numbers are apples-to-apples. So you know we've always have wins and losses, but there's nothing material on either side. As I tried to point out and go into a little bit of detail on the (inaudible), the revenue is really driven by high revenues from the digital billboards and new deployments and higher occupancy on static bulletins with both local and national up in the quarter. So I'm really pleased, it’s really kind of across-the-board, and just to go back, we've made a number of management changes and you've all heard me talk about this before, but I can't overemphasize that it's really about execution. We made a number of management changes last year, starting with Scott Walls and his teams. We then brought in Bob McCuin that you've heard me mention before, to run all of advertising sales. I think we are seeing the benefits on that execution. We see it in the first quarter. I mentioned the second quarter pacings; again, pacings is just a point in time but for both sides out there, and also when we announced the asset sales in the beginning of this year, the real focus on saying okay, what's not core to the company? What's more valuable in someone else's hands? (inaudible) a good price and we've talked about that, we got 12.5 times approximately on the assets that we announced the sale of. And I think it's managements’ execution, that focus, and then on cost we are always looking whether it's any of our divisions, to continue to work to optimize our cost position effectiveness. The fact that margins were up 20 basis points is from both a higher mix of the assets, including digital, that I just articulated, and the ongoing efficiencies which again quite frankly, are a way of life in our company.

And then, staying on the outdoor topic, I noticed in the 10-Q you swapped more assets for additional cash. Could we talk about the revenue and EBITDA impact around that, if any? Can you confirm that the cash from the swap is not a required for debt repayment? And lastly on that topic, given your healthy cash balance which I think is lower this quarter, maybe what's behind some of those actions. Thanks.

Well, I’ll let Brian field with me as always, answer the question on the cash, but just to make sure that everybody has had the chance to look at the 10-Q that I was talking about, during the first quarter of this year, we entered into an agreement to sell Indianapolis Indiana market for certain assets in Atlanta, Georgia for approximately $41 million in cash. The transaction is subject to regulatory approval. We expected it to close in 2016. Again, it's really just overall pods that we continue to evaluate our business and asset portfolios, and we continue to demonstrate through various (inaudible), I think we know how to clearly maximize the value of our balance sheet. In terms of the amount of cash that's on the balance sheet, again, what we're looking to do to say if you can sell non-strategic assets at a good price. I would suggest that like the 12.5 multiple that we publicly disclosed again, for the assets we've sold this year, it was a good price, more valuable in someone else's hands, and for all of our shareholders and stakeholders it's better value for us to sell those assets and get the cash.

Yes, and to continue on, Avi, this is Brian. To continue on with the remainder of the question, I think it's important to note that while the transaction that Rich referred to is disclosed, it hasn't been consummated, and so we really aren't talking about how that will run through the debt agreements. That's at some point in the future. Obviously as you look in historically, we've utilized our capacity under the debt agreements to optimize liquidity, and you should assume that is the way we will think about our future asset sales as well. Continuing on I think to the remainder of your question, it is true cash balances perhaps went down in the first quarter versus pro forma year end cash balances for some of the sales transactions that occurred and that should not be a surprise. Our first and third quarter have a disproportionate amount of debt service. Our second and fourth quarters have the reciprocal of that. What we've done, kind of in a macro sense is since at the end of the third quarter last year is done a number of things to generate liquidity. You should assume the company will continue to do those things and put ourselves in a position, where we have resources available to us should the opportunity present itself to be proactive in the (inaudible) markets as we have done in the past. So, we have to take that in consideration with the context of everything else that's going on, and we have to be focused on preserving liquidity for operating purposes. But I think we continue to operate as we've done in the past, and we've set ourselves up to be opportunistic

One clarification and then my last question or the clarification, international pacing plus 4.5, is that apples-to-apples in other words, including the change-over in the UK contract and everything that's gone on?

Again we're consistent, we have been just like you asked the question, we have not, we're always winning contracts, losing contracts, so we haven’t adjusted for the loss of the London contract that you referred to. So the UK pacing is apples-to-apples operating, but we're always winning and losing contracts and we have not factored anything out. But the largest markets, France, China, Australia, we're really sort of feeling some really great momentum for those markets. So that's relative to the benefit of the pacing, but not adjusting. I probably should point out also on CCLA, you didn't ask this question, but on the pacing of the 4.4, we did adjust for the sale of the non-strategic markets. So CCLA adjusting for the sale of the non-strategic market that we sold the first quarter this year, and we have strong growth in digital airports, that's what's driving the pacing. CCI not adjusting for the loss of the London contract, a 4.5 driven by France, China, Australia. Just to be clear.

I'm going to end on this, and thank you for the time. I'm sure you can't discuss ongoing mediation, so not going to ask about that. But as you think about the capital structure is the priority just to address front-end maturities or is it broader? And then is the balance sheet, I guess this is for both of you, but is the balance sheet in any way limiting you from M&A, maybe Rich, relative to some of the radio comments you made, or is it limiting you from doing anything on the outdoor side, given some high profile contract opportunities this year.

So, Avi, I'll take those in reverse orders, and then give Rich the opportunity to kind of come over the top if he'd like. I think first, we feel like we've been able to manage the company's capital structure and its liquidity position in a way that hasn't inhibited the operation of the business, and I think you can see that our investment in the business continues at levels that are consistent with historical levels, and we continue to invest in the businesses where we think we can get the best return. In fact I think that part of our success story, over the historical period is related to successful investments that we've made. So I don't see that has been an issue with respect to investing with the business, and I'll let Rich comment on that. The other part of the question is what is our focus? Our focus is broader than just (inaudible) term maturity. It is what can we do that best positions the company for growth in the future? You know operationally we continue to have success, but we have a significant amount of debt and there is an opportunity, a window of opportunity where we have the ability to go out and address this issue, whether that's a holistic approach, whether that sequential, and there's a variety of things we have to look at. Liquidity is one, and addressing near term maturity, particularly at a discount directly affects liquidity. The capturing discount and the ability to right size the debt portion of our capital structure in the face of EBITDA growth is also a priority. So it's difficult to say at any point in time, what the priority is. I think a lot of it depends on where the opportunities are, and that's really the formula that we have to look at. I know that's probably less satisfactory. But I think you'd be disappointed if I put all my chips in one bucket and told you on this phone call. So that's really the kind of the way that we look at it and, Rich, I don't know if you had anything to add.

The only thing I'd add, Avi, is that overall I think again, just look at, I'd look at a couple things to answer your question holistically. First of all, we just looked at our operating performance. I think we continue to like on iHeart, you didn't ask we talked about Outdoor a little bit. But we continued to significantly outperform the industry. We continue to significant, over any period of time last year, year-and-a-half, outperform media companies. \ Obviously you have Facebook and Google, the big digital companies are performing, are growing their revenue quicker than we are (inaudible) if you look in the media industry. So I would say, if you point to the evidence, I think what we are doing is a good job of harvesting and selling things that are non-core and if you look on stuff that is important to us, I mean just go back over the last couple of years and remember we bought [WLR] in New York, a radio station. We bought some radio stations up in the northeast, up in Boston, everything. We've made investments to help drive everything is important to us in terms of programmatic, ad serving, data analytics, in terms of where the world is going, which is starting to show up in our performance. We've made an investment in [Jelly], which enables us to make broadcast look like digital and make it easy to buy for advertisers and advertising agencies, which is absolutely critical to our future. We've made investments in unified social to data dashboards. So I think, within our capital structure, we have been very good about thinking about ways to make investments that will drive the operating performance of our business that have continued to enable us to serve our advertisers well and outperform the industry.

Our next question comes from the line of Jason Kim with Goldman Sachs. Your line is open.

On the working capital side, it looks like the accounts receivable did normalizes this quarter, which was good to see especially at CCO. Can you comment a bit on what you're seeing there, and if the improving accounts receivable collections can be sustained for the balance of the year?

Yes, this from an accounts receivable perspective, it's just timing. We continue to really focus on accounts receivable, it's really just seasonality in terms of timing. But I promise you no different than folks of operating expenses, no different than folks (inaudible) I think we've done a good job in terms of margin, a good job in terms of capital expenditures. The only fluctuations we've seen is seasonality there, but there's nothing else really to focus on.

Got it, and then for your ‘16 CapEx guidance, I know you have 300 million to $350 million for total company guidance. How much of that is expected to be at CCO for this year?

Yeah, I don't think we've broken that out, but I think that if you kind of look at historically, the way that the allocation of our expenditures and the way we allocate capital, I would think look historically to think about the future, I don't think you'll see any major changes in that.

Our next question comes from the line of Marci Ryvicker with Wells Fargo. Your line is open.

The strength in Outdoor Americas it seems to me that this very company specific, its execution, you're taking back some share. Is there also the chance that the industry in general has gotten better, it's kind of giving you wind at your back? And then is there any update on the LA situation, and then I have one follow-up.

Look I can't, I know in terms of people reporting, so I won't comment on other companies out there. What I can comment on is a little bit when I alluded to before and talked about in my script, and talked about in the opening remarks and we've been talking about for some time. It is about execution, execution, execution and management. And I think you could almost track to the day we made the changes for the leadership in Clear Channel Outdoor America and throughout the year, and you'd see the results showing up on the bottom line. I think our team is doing a really great job of being out there, of being facing the clients. I think we are doing a great job of responding [RSPs] very quickly out there, and I think Outdoor is a great product. It's a really great product from an out-of-home experience, with people spending more and more time out of home, but we all know that and continue to deliver values to the advertisers. On LA digital, there's really no update. I'd say it and we continue to stay away from exactly when we're going to be at resolution on that, other than we continue to work our way through the process of the legalities in LA. But just as reminder, we still have approximately 50 digital boards around the LA market even with the ones that were taken down, and we've been able to convert about 80. Again, these are not big numbers, but we're not sitting on our hands and standing still. We've covered about 80 billboards for static (inaudible) and traditional displays, during this period of time also. So we're trying to maximize, to the extent that’s feasible, the opportunities there.

And my one follow-up is on the programmatic platform; is this something that you can open up or will open up to the industry, or is it going to stay something that's very company specific?

Well first of all you have, from our standpoint, from an iHeart standpoint as you know we’ve been investing in programmatic and audience space, ad buying solutions, and if you think it, that enables radio to be bought and sold as easily and seamlessly as the big digital media companies, Facebook and Google, and so closing the gap with what the companies have to offer. I'm also happy that we’ve - because it is kind of ordinated data-infused buying to our advertisers across our broadcast stations and iHeartRadio, we now have the ability to provide frictionless programmatic platform for marketers that looks and feel like digital and integrate them seamlessly into their planning and buying systems, and also, for the first time, and then I'll come back to the industry for a second, we're able to sell impression based advertising in a way that's complementary to our digital buying. So just to be clear, we can do impression based advertising, so if people want to buy impressions, and that's in addition to our premium based inventory. So the ability to do that and although there will be a gradual adoption of programmatic platforms, it will enable us to effectively sell our entire broadcast and digital inventory. And just as a reminder, about a third of our broadcast audience registers with us for digital. Just also, you probably have all assumed we now have crossed 85 million unique usage for iHeart, for the iHeart app. We're growing faster than any other streaming service out there. But the importance of crossing 85 million is once we've seen about a third of our broadcast listeners have now registered and about a third of our broadcast listeners register us on digital, and once they register we have all their information. And no different than the big digital players, we can take that third and all their registered information and extrapolate over our broadcast audience. So long-winded, and to the first part as to why we're so excited about our future in serving our advertising partners. In terms of the industry, just as a reminder, we have caps which serve the industry. We’ve made an announcement that we'll bring the programmatic to the industry through Expressway from [cast] to enable the programmatic buying across industry and that's being rolled out as we speak.

Our next question comes from the line of Lance Vitanza at CRT. Your line is open.

I wanted to ask a more general question about radio, the revenue growth impressive. How did your overall markets perform, presumably, you took a lot of share. And then I have a couple of follow-ups related to that.

Certainly we're really pleased, great results; great team effort here, and it is I want to emphasize; we have a great team, great senior management team. Based on Noah Caplan data, I think the total industry was just up about 1%, maybe a little over 1%. So clearly, we outperformed the industry. I think the reason for the outperform continues to be our multi-platform asset base, which helps drive our growth and it differentiates in the marketplace, and you've seen our track record. It's a sustainable period of time, over the last years that we continue to outperform the market. That is also contributing, as a reminder and I mentioned this briefly in my remarks, but it's worth repeating. Our reach remains at 93% for all US adults 18 plus and 92% for millenials, and while TV, which used to be the reach medium continues to decline, they were an historic high of 95% of reaching adults. They are now at 86%, and they are actually at about 75% for millennials. So one in four millennials do not watch advertising supported TV, and so to think about it simply, more adults and more millennials are reached by AM/FM radio than any other medium. Kind of full-stop, period. If you look to a little more detail the revenue drives in the quarter, spoke about traffic and weather and political. We had strong growth in our top five markets, which I'm very pleased about. Bob and I are both pleased and the management team’s at LA, Chicago, Dallas, New York and San Diego. Events were up. We've got great strength in the auto, the entertainment, the financial services categories, homebuilding professional services. So really, really nice strength across the board, and I just previously mentioned to answer the previous question, I think from Marci, that we also crossed 85 million registered users, which is faster than any of the digital music service, even faster than Facebook. So I think there's no one piece that's contributing to all of the growth, and that's why I continue to emphasize we are a multi-platform asset base, so everything is contributing to the growth.

And then on the EBITDA side on radio, it looks like about 60% of the incremental revenues flowed through to the EBITDA line. Is that about what we should expect generally going forward?

I'm not going to comment specifically exactly on margin expansion, other than to tell you that, over any period of time there could be a quarter here or a quarter there. But over any period of time, we're going to continue to look for margin improvement through tight operating and financial discipline, through rigorous capital and cost allocations, and at the same time we're going to invest, as I highlighted before, on things like [Jell] and Unified Social. We're going to invest back into the business, where we think it's appropriate, but it's going to be a very, very prudent way. And just as a reminder, we did have about $16 million of revenue in the first quarter on political, I think about $11 million on the iHeart one on this 12, and about $3 million last year in the first quarter. So we did get the benefit of that because political is a high-margin business.

And then lastly for me, could you talk about how the revenue trends progressed through the quarter, presumably, they decelerated given the pacings, and I know what you think about pacings. But is that accurate, or what could we say about that?

I'm not going to comment. I would just - you guys have probably are ready to throw up every time I say this, but I'm not going to keep (inaudible) today, but I just can't overemphasize about that point of pacings as a given point in time. So I'm not going to comment on any specific months out there, other than to say that we feel really great about our business. We feel bit of like [used] to stay in a little bit longer than the election, that's for sure. But we feel really great about our business, we feel great about the (inaudible), feel great about all the stuff we're taking on things like that I've been talking about in terms of programmatic. Look the most important thing from us is, and I would it and I've said this before also is that our biggest opportunity is on the radio side. It continues to be dramatically, with all of our success, we continue to be dramatically under monetized. I talked about (inaudible) being the reach medium. We deliver as you know from all the [Nielsen] data, not our data Nielsen data, an average of six to one ROI, our return on investment. Simply you give us $1 we give you $6 back, and that just says we have a lot of room to continue to increase our revenue, even irrespective of what our ratings are, and again, our ratings have been up 10%, close to 10% last year on broadcast ratings, roughly close to 30% on digital ratings. So we've had great rating success, but the most important thing is that we are under monetized, and we need to continue to focus on being better at driving ad revenue based on our reach and based on our consumer engagement.

We are going to take one more call and then that will be it.

And that will be from the line of Aaron Watts with Deutsche Bank. Your line is open.

Just two quick ones on the radio side; first, Rich you mentioned how you did in political last year, and I think in the last cycle it was strong in the first quarter. Just any thoughts on what you’re seeing here in the second quarter and maybe expectations in the third and fourth, and then secondly, more bigger picture, you highlighted how out-of-home is where the majority of radio listening occurs, and I think it's fair to say that the cars’ always been a home base for terrestrial radio. As connected cars become more prevalent, and perhaps open the door a little wider to competing services, how do you see that impacting your business to the positive or negative?

So couple things, first of all on political as you know, we don't provide specific guidance. We wanted to make sure we shared with you what we actually had recorded in the first quarter. We are very confident in our DC based political team. We hired just a great guy in political media (inaudible) Kenny Day, a number of months ago, and Kenny has hired a couple team members and they are just doing an outstanding job and I think you're seeing the (inaudible) in the numbers in leveraging data and mobilizing our local sellers to assist the campaign, all the campaigns. By the way this goes not just the national campaign, this goes to local campaigns, local issues, just to be clear. They're really targeting specific demos. So we believe that we're positioned to continue to maximize our share of ad spending and we're really pleased, we talked about it last year going into this year that the sophisticated (inaudible) should be built for the election cycle and what they delivered. Again I'm not going to talk about going forward, but just to give you some perspective, as I mentioned, we had in total about 16 million in the first quarter of this year of political revenue. We were at about 4 million last year in political revenue. And the first quarter of 2012, if you go back to the last presidential cycle, in the first quarter, we had about 10 million in that first quarter. So hopefully that helps. And I'm sorry, what was the second question?

On the connected car.

On the connected car, yes, sorry about that. Look just as - remember all of the research that we've done, we've done all third-party research, not our research, not like some other people on internally generated research, but all third-party research is that 99% of consumers are comfortable with the current AM/FM generation of the car and 91%, just to be clear, 91% would prefer traditional buttons, dials and buttons in the car, in the car dash. I think the auto-makers are laser-focused on that. It is by far and away the number one media entertainment option when consumers make a buying decision, is to make sure AM/FM radio. You know, by far out there. So if anything in this world with lots of choices, we continue to see the foundation of AM/FM radio, consumers engagement, consumers desire to have dials and buttons in the car, that are easy to use as high as it's ever been and we feel great about that. By the way, the only last thing I would add to that is obviously they will always have the option as you think about a digital option with iHeart. We'll always be in the car also as a digital option, but that doesn't change the initial part of your question on the AM/FM radio and the strength of it based on what consumers want.

Okay, thank you, operator. And this will conclude our first quarter 2016 earnings conference call, and I’m certainly available to answer any questions later on today if anybody would like to call. Thank you.

Thank you.