Clear Channel Outdoor Holdings (CCO) risk factors, FY2024 10-K

Other

1. 01Our results have been, and could continue to be, adversely affected by continued economic uncertainty, an economic slowdown or a recession
2. 02We require a significant amount of cash to service our debt obligations and to fund our operations and capital expenditures, and our ability to generate cash depends on many factors beyond our control, including the recent volatility and uncertainty in the capital markets
3. 03We may not be able to generate sufficient cash to service our substantial indebtedness, may not be able to refinance our indebtedness before it becomes due and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful
4. 04Our ability to make scheduled payments on our debt obligations depends on our financial condition and operating performance, which is subject to prevailing economic and competitive conditions and to certain financial, business, economic and other factors beyond our control

Operational Risks

1. 05Implementing our strategy is difficult, costly and time consuming, and we may not realize the anticipated benefits thereof fully or at all
2. 06The success of our business is dependent upon our ability to obtain and renew contracts with municipalities, transit authorities and private landlords, which we may fail to obtain on favorable terms
3. 07We face intense competition in the out-of-home advertising business

Technology Risks

1. 08Regulations, consumer concerns and other challenges regarding privacy, digital services, data protection and the use of artificial intelligence, or any failure to comply with these regulations, could hinder our operations
2. 09If our security measures are breached, we could lose valuable information, suffer disruptions to our business, and incur expenses and liabilities, including damage to our relationships with customers and business partners

Regulatory Risks

1. 10Government regulation of out-of-home advertising may restrict our out-of-home advertising operations
2. 11Restrictions on out-of-home advertising of certain products may restrict the categories of clients that can advertise using our products
3. 12Environmental, health, safety and land use laws and regulations, as well as various actual and proposed ESG policies, regulations and disclosure standards, may limit or restrict some of our operations

Strategic Risks

1. 13The dispositions of the businesses in our Europe-South segment and of certain businesses in Latin America, the agreed-upon disposition of the businesses in our Europe-North segment, and the potential dispositions of our businesses in Spain and Brazil, as well as other strategic transactions or acquisitions, pose risks
2. 14Both dispositions and acquisitions also carry the risk that management’s attention could be diverted from other business concerns
3. 15Third-party claims against us could harm our business, operating results and financial condition
4. 16Claims that our suppliers infringe on the intellectual property rights of others could cause disruptions in our supply chain

Risks Related to Ownership of our Common Stock

1. 17Our stock price has been highly volatile and may decline regardless of our operating performance
2. 18If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline
3. 19Sales of substantial amounts of our common stock in the public market by our stockholders, or the perception that these sales could occur, could adversely affect the price of our common stock and could impair our ability to raise capital through the sale of additional shares
4. 20Our failure to meet the continued listing requirements of the New York Stock Exchange (the “NYSE”) could result in the delisting of our common stock, which would have an adverse impact on the trading, liquidity and market price of our common stock
5. 21Our certificate of incorporation, as amended, designates the Court of Chancery of the State of Delaware, subject to certain exceptions, as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders

Risks Related to Our Indebtedness

1. 22Covenants in our debt indentures and credit agreements restrict our ability to pursue our business strategies
2. 23Despite current indebtedness levels, we and our subsidiaries may still be able to incur more debt, and this could exacerbate the risks associated with our leverage
3. 24Downgrades in our credit ratings may adversely affect our borrowing costs, limit our financing options, reduce our flexibility under future financings, and adversely affect our liquidity or business operations

General Risks

1. 25We are dependent upon the performance of our senior management team and other key individuals
2. 26Our financial performance may be adversely affected by many factors beyond our control
3. 27Continued scrutiny and changing expectations from government regulators, municipalities, investors, lenders, customers, activists and other stakeholders may impose additional costs on us and/or expose us to additional risks
4. 28CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS