Ladies and gentlemen, thank you for standing by. Welcome to the 2016 Fourth Quarter and Full Year Earnings Conference Call for iHeartMedia and Clear Channel Outdoor Holdings, Inc. [Operator Instructions] And as a reminder, this conference is being recorded. I will now 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 fourth quarter and full year 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 fourth quarter and full year 2016 financial and operating performances of iHeartMedia Inc. and its subsidiaries, iHeartMedia Capital I, LLC; iHeartCommunications, Inc.; Clear Channel Outdoor Holdings, Inc.; and Clear Channel International, B.V. For the purposes of this call, we described the financial and operating performance of iHeartMedia, Inc. that also describes the performance of its subsidiaries, iHeartMedia Capital I, LLC, iHeartCommunications, Inc., and Clear Channel Outdoor Holdings, 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 beliefs. 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 orders 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 provide schedules that reconciled these non-GAAP measures with our reported results on a GAAP basis, as part of our earnings press releases and the earnings conference call presentation, which can be found on the Investors section of our websites, iheartmedia.com and clearchanneloutdoor.com. Please note, there are two earnings releases and a slide presentation are available on our websites, www.iheartmedia.com and www.clearchanneloutdoor.com and are integral to our earnings conference call. They provide a detailed breakdown of foreign exchange and non-cash compensation expense items as well as segment revenues, operating income and OIBDAN, among other important information. For that reason, we ask that you view each slide as Rich comments on it. Also, please note that the information provided on this call speaks only to management’s view as of today, February 23 and may no longer be accurate at the time of the 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 our performance in 2016. Our consolidated revenues, operating income and OIBDAN were all up in the quarter and the full year. Over the past 5 years, our iHeartMedia segment has successfully transformed from a broadcast radio company into a multiplatform 21st century media and entertainment company, evidenced by our achieving 15 consecutive quarters of year-over-year revenue growth. We believe very few U.S. media companies have come close to that benchmark. In addition, both operating income and OIBDAN at our iHeartMedia segment were up in the fourth quarter and the full year. At Americas and International Outdoor, our results were impacted by the sale of certain markets and businesses. Excluding the impact of these sales and foreign exchange rates, revenues and OIBDAN for both Americas and International Outdoor were up in the fourth quarter and the full year. As you can see from these top line results, we are continuing to drive strong momentum across the company by investing in new digital technologies, creating innovative new products, focusing on data as a key asset of our businesses, interacting with our advertisers in new ways and aligning our industry leading assets around our most promising opportunities. Through our investments in our broadcast, outdoor, mobile, social, digital, live events data and programmatic platforms, we are building the scale necessary to compete in the world that is more and more defined by our advertisers do business in the digital edge. And we are well positioned to benefit from the favorable trends in consumer media usage and advertiser demand for mass-market reach, especially with the reach of television continuing to decline. In addition, consumers continue to spend more and more time out-of-home, which strengthened both our radio and outdoor businesses.…

[Operator Instructions] Okay. And our first question comes from the line of Avi Steiner. Please go ahead.

Thank you. Good morning. The mix of your business and balance sheet question if I may, the first one, Rich, maybe you can discuss the launch of iHeartPlus All Access offerings, any usage metrics you can give us there and how they may contribute in 2017?

Sure. Thanks, Avi and good morning everybody. Look, it’s really – we have already been – we were in data, I think it’s everybody knows for a month and we officially launched right around January 1, so it’s way too early. The reception clearly has been positive. And just to remind everybody on the call and I suspect that I will take just a minute or so and talk about iHeartPlus and iHeart All Access, which are our new on-demand subscription services just to allow yourself for everyone are all in one streaming music and live digital service and we include two of those iHeartPlus and iHeartRadio Plus and iHeartRadio All Access. And the way I think to think about and put in context, this is an example of how we can add on additional products at extremely small incremental cost that allows us to participate in new revenue streams. And from a functionality standpoint, you can now just push a button and I would encourage you all to sign up and subscribe to those and we will have them, because you have to just push the button to instantly replay songs from our live radio stations and you can directly save those songs to your play list. And this is the only service out there that can bridge the gap between radio and music collections and both of these new on-demand services, both of on-demand services building on real radio, filled around music discovery, while the other music services are based on music collection experience and that’s where we decided from recorded music formats, such as LPs and CDs. So, that’s the way to think about. You think about the other services out there, they are really decided upon things like LPs and CDs and think about ours is really enhanced radio. From a cost basis, either in the fourth quarter or going forward, the cost involving expansion as I alluded to a second ago with minimal that didn’t have material effect in our margins whatsoever. And it’s really just a great example at how we can add on the additional product, how we can create additional value for our listeners, that’s small incremental cost that allows to participate in new revenue streams. And again, unlike some of our other competitors whose models realized totally and their business model realized totally on the streaming services, these are expansion of our services and expansion of our brands.

Okay, great. And then given it’s helpful to your liquidity, just shifting to balance sheet here, can you talk about your comfort around extending the receivables base facility into ‘18 given the actions you have taken on the 10?

Sure, Avi. I think the company views it. It’s probable that we can extend the ABL. I think we disclosed that in our public filings and we will continue to work toward the goal of extending the ABL.

Great. And maybe getting to a bigger one here, so in the December 20 8-K and then again today the company noted its exploring global refinancing alternatives and I want to make sure, at least I understand or think about it correctly that is it fair to say it’s holistic and that the goal here is to create the sustainable capital structure that both reduces outstanding debt to be well below what one may view it as enterprise value to create real equity value here. And relatedly and perhaps more importantly to turn the structure materially free cash flow positive, I know those are words that I can define, but related to allow you to invest in the business?

Well, Avi, I feel like you have given me the answer instead of the question. The way that I would look at it is this, the ultimate goal of any type of holistic restructuring will be a sustainable capital structure. As Rich would tell you, we have experienced several quarters of consecutive operational growth, but we need to address our capital structure as well an increase in free cash flow generation to the reduction of cash interest as a way to get there, but I don’t want to get into the specifics. I think that general statement holds true. I think that’s consistent with the disclosures that we have made. And I think that’s what we look to going forward.

Yes. And Avi, the only thing I would add, I agree with Brian, I think you kind of gave us your answers before you gave us the question. But look, if you go back over not just this year, but in years and years themselves, we have been here Bob, myself and the rest of the management team. We have understood that our responsibility first and foremost is to create value for all of our stakeholders and we continue to do that everyday in addition to operating the business and that will continue.

Great. And I will leave it on this and I will make it much more shorter, but I did not see the same language in the CCO 10-K around restructuring, et cetera. Is it safe to say that the focus here is going to be confined entirely to the parent level debt? And thanks for the questions.

Hi. We are talking about iHeart in our disclosures. We are talking about iHeart in the questions and answers. There is no – there has been no discussion or disclosure around CCOH.

Terrific. Thank you.

Our next question comes from the line of Marci Ryvicker from Wells Fargo. Please go ahead.

Thanks. Rich, when you talked about the outdoor business, do you mention a lot of things that you did not mention to static billboards, you talked about airports, you talked about digital, so can you talk about the health of the static billboard business both in the fourth quarter and maybe as it relates to the first quarter pace. And then on the iHeart side, just any thoughts on the competitive marketplace post the announcement of the Entercom-CBS Radio transaction?

Well, look on the outdoor – on the outdoor side, I think you saw our fourth quarter results, you saw our first quarter pacing, I think in the last couple of days, you have seen some of the people that were also in the business come out with our results and we have – it looks like, we will continue to perform well and continue to outperform. So the fundamentals are good. I am not going to comment on any specific thing with respect to any individual boards whether it’s static or digital. But what we continue to be encouraged by, all the investments that we are making, taking advantage of emerging, technologies, mobile data analytics and we get that word a lot. [indiscernible] in terms of data, data analytics, data infuse, programmatic, different platforms, I can get to look to the results that companies are having. And I just kind of, our point to the bottom line results and you know at Outdoor America we hold that data analytics tool, RADAR in early 2016 and look forward to launch what I believe is the industry’s first programmatic out-of-home buying solution. The programmatic solution taps into RADAR’s mobile data driven audience insights which gives marketers and our advertisers unique ability to buy digital out-of-home inventory with the same sophisticated buying that they currently expect in the same sophisticated buying the way the world is going. You couple that with our local business is delivering a strong performance. Scott Wells, Bob McEwen, the rest of the management team is doing a great job. And we are also seeing the improvement from our national business, which when we go back to the third quarter, we had some decline in the third quarter. And November and December picked up nationally and the teams have executed on a number of large digital campaigns. And so far in the first quarter of 2017 large national advertiser renewals are going well, but we are only here in mid-February. So I always put a little bit of cautionary, because those are early in the year, but feel really good about the team and the business and their execution. I think you have seen that manifest itself in the fourth quarter and our first quarter pacing.

And on the radio portion?

Well, I am sorry, on radio, I apologize. On radio, look we think it’s great. Bob and myself just had great respect for David Field, the leadership piece he provided Entercom. He has been a great partner with us. As you know, radio is now the biggest reach media. And this the merger – the proposed merger that David is leading is another important validation of the value of radio and the value of audio. And we are looking forward to continue to work with Dave and his team to help move advertisers and marketers discover the full and unique panel of radio, the effectiveness of radio and to bring more money and advertising dollars to the radio market. So we only feel very, very good about the proposed deal and we are always thrilled that’s going under David’s leadership.

Thank you.

And our next question comes from the line of Jason Kim with Goldman Sachs.

Hi, good morning. Thank you for taking my questions. To start off, how should we think about the border revenue and expense line for ‘17 and also corporate expense has also been at a higher level, is this more or less related to your balance sheet related activities or is there a higher level of spending that is more of a norm going forward?

Yes. Let’s talk about, first mentioned, these are largely investment in the businesses that we might have otherwise made in used cash. And so as we have done in the past, we welcome modern trade opportunities with growing companies that we can strategically and I think that’s the key point along with that could help our – that could help us. We made investments in the companies by acquiring equity interest in exchange for advertising, which is providing the future, while each of these deals were different. The future benefits we expect to receive in these investments include the share of revenue, very often into – excuse me, include a share of technical services that helps to drive our operating businesses. And in terms as they include voices [ph], which enable us to influence the product roadmap. And therefore enable us to improving our products and our product roadmap. And by the way, it’s one of ways, just to point out, which I mentioned in the opening remarks, I mentioned in my quarterly release, we are incredibly proud, Bob and myself and quite frankly the entire team. This is a team effort that we had here for 15 consecutive quarters. And we have got 15 consecutive quarters with the balance sheet, that we have, that you all know it’s actually about and having that growth, I don’t think is pretty much any other media company and maybe many companies in the market, that have 15 consecutive quarters of revenue growth. And to do that, we have got to use our assets. We will do best and get the most out of them and doing border and trade deals, one of the ways we get, the best out of our assets. And just the last thing, I would tell you is really common practice in our industry. So with respect to – on your second question, with respect to your corporate expenses, really the increase in corporate expenses is related in part to additional spending on our professional fees, as you would expect with everything we have going on.

It makes sense. And then a couple of housekeeping questions, at the end of the quarter you had $55 million in your current assets line as assets held for sale, does that number base going to get converted to cash as part of the special dividend payment from CCO in the first quarter?

Just repeat that question again.

Yes. In other words, at the end of the year, on the current assets line, there was $55 million recorded as a – in current assets – assets held for sale…?

Those are just the CCOA markets that were held for sale. That’s all.

Right. So they will become, so that you sold those assets and now therefore they will just become cash?

Yes. That’s correct.

Okay. And then maybe one for Brian, for the special dividend or the one-time dividend of CCO paid to the parent or the shareholders in the first quarter, did you use the general RP basket, which I think was about [indiscernible] or did you use any of the reinvestment carve-outs?

The distribution from those asset sales used the general RP basket.

So a lot of it was used for reinvestment carve-outs?

The asset sales, once the sale of the current outdoor, they could be used to be reinvested or they can be distributed. In this case, if they are distributed, it uses the RP. So, I think we are targeting apples-and-oranges. I mean if they were reinvested then they wouldn’t have been distributed.

Got it. Thank you.

Our next question comes from Lance Vitanza from Cowen.

Hi. Thanks guys and congrats on the quarter. Two quick housekeeping items and then I got a couple of other more substantive questions, but I missed the radio pacing number, could you repeat that for me?

The radio pacing number is plus 2%.

Plus 2%, okay. And then I got the outdoor pacings, those are, I heard pro forma for asset sales, but those are on a local currency basis, is that the way you disclose those?

Yes.

Okay, great. And then so turning to iHeartRadio app, great to see registered users and total listening hours continue to grow, I guess maybe that answers the question, which is as registered users continue to grow, are they users themselves and it’s sort of individual basis, are they becoming more or less active, is there anyway to know, is the listener our per registered user going up as well as just total registered users and total listener hours and more generally, how do you think about the value of a registered user and I mean presumably, it’s based on some level of engagement and I guess I am just trying to figure out how we can kind of track that?

Well, I am not sure in terms of where you are going with a lot of question. Remember, we are working to do just to take a step back from an iHeartRadio standpoint is we are looking to follow the consumer. That’s why I said, this is not about technology. And then we connect our advertisers with our consumers. As I said, we rank the relation – we rank the relationship with them. And the way you should track what I would invite you to do, because I can give you – I went through in my opening remarks and I think we went through in the press release, we have got 96 million registered users to the point. We are growing 21% year-over-year. iHeartRadio’s cumulative downloads reached plus 1.3 billion including update in total listening hours were up 1% year-over-year. So if you think about that in one word that also is a more engagement. If you look at our, just as a reminder, if you look at our social impressions, as you come out of Jingle Ball, we had 11 billion social impressions through our Jingle Ball, which is over 3x social impressions that Big Game had a number of weeks ago. As you look at our social impressions as a company, we had 143 billion or so social impressions last year in 2016, 143 billion, that’s a staggering number. Thinking about the iHeart Music Awards last year, we had this year’s a week from this week and a week from the Sunday out in LA in The Forum, but if you go back to 2016, to put it in context, we had 115 billion social impressions for the 2016 iHeart Music Awards. The 2016, a category what had about 40 billion social impressions. We had 115 billion.…

That’s actually really helpful. Thank you so much.

And we have a question from the line of Aaron Watts with Deutsche Bank.

Guys, thanks. Just two questions for me. I guess first Rich, you alluded this earlier, but to be clearly on the streaming offerings across the board, that unlike some of your peers that are burdened with very highest costs of content, you believe based on your agreements with labels and publishers you can scale profitably and in a margin enhancing way. And I guess secondly, you also talked about CBS and Entercom earlier, you have been involved in various transactions on the outdoor side, how do you see 2017 playing out in terms of M&A activity for the industry, new FCC Chair, new President and do you see further opportunities for iHeart and Clear Channel to monetize assets within your portfolio worldwide?

Well, look, in terms of the new on-demand service, I am not going to get into any details other than to say, we have – we just had great, great there are true partnerships with the recorded music industry. And whether that’s everybody from Lucian and Michele and the team at Universal to Steve Cooper and the team of Warner Music and Doug and the team at Sony and Danny Gross [ph] and just everybody, within the music industry. So they have been great partners. They understand about the dive that we bring in terms of adding on additional products. They understand about our ability to work with them. They add value for our listeners and small incremental costs and we see new revenue stream. So just could not feel better about our position and partnership within the music industry. In terms of 2017, one of the benefits of about being old and kicking around aspects of this industry for a long time is not you predict anything. So look, I am not going to predict what’s going to happen in terms of M&A industry, I am not going to predict what’s going to happen with new FCC Chair. I do think you have made some very positive comments from an FCC standpoint in terms of being proactive, in terms of radio. And Bob and myself and I assume the rest of the industry we all feel very good about that. And look, overall for 2017, I feel good about where we stand. As we said, we ended the year – we are pleased where we ended the year. I think you saw in our top line results, the first quarter of this year, I think overall, we are pleased where we stand in January. I think December maybe when we posted – other companies out there are seeing the same pattern, January and February has been a little bit weaker and March is a little bit stronger. But you know, but overall we are looking forward to the deal.

Thank you.

Operator, we can just take one more call. And we will have to finish for today.

Certainly, our last question comes from the line of David Phipps with Citi.

Hi. Thank you for squeezing me in. Could you talk about your advertising business, as you mentioned some of your competitors did a lot worse in the first quarter and they cited some issues with national advertising, can you talk about how iHeart was able to do much better than that?

Sure David. Look, I am going to go back to the fact and I know it sounds a little bit like a broken record, but it’s good to keep repeating those that’s the benefit, that’s what the advertising business is all about. You continue to reinforce the message. And that’s what we do. We have had – we have had 15 consecutive quarters of growth. And one is first and foremost, we always believe obviously in our way doing outdoor business and we are committed and we have seen this now for a number of years. And so I don’t think it’s any action that we are committed to transforming ourselves into a digital and data rich company both on the strength and power, in this case of broadcast radio. And we are benefiting quite frankly from the demand from mass reach media, in a world of the dwindling TV reach. And I think we all look at the same statistics, we all look at the reach of radio both among adults 18 plus, among millenials, among teens over 90% and we see that television is down below 80% on its reach for millenials. And just as a reminder, there are three reach mediums that reach more 200 million people in the United States, there is Facebook, there is Google and there is ourselves and we are the biggest at almost at over approximately a quarter of a billion people we reach. So I think it starts with that and it starts with our investments that we have been making for years. We have recognized that there is a transformation and those of you that follow the advertising industry, you are well aware that there is a transformation in terms of how advertising is bought and sold. And we are…

Just two quick follow-ups, would you expect Katz Media to grow organically in 2017, so ex-political. And then how do you think that SG&A expenses will run through the year?

So on Katz Media, the answer is I do not expect them to grow organically, because it’s a non-political review. So, if you go back historically particularly because of the Katz TV side of the business, I do not expect them to grow organically. And on expenses, I would look to – if you look in overall basis with everything I just talked about and we have to look at our margins on an annual basis, with everything I just talked about in terms of the investments that we have been making as a company, we still have some slight margin improvement on an annual basis and I suspect you will continue to see that.

Just to clarify on the Katz Media, if we ex out the political would we grow organically?

I am not going to comment on that. I am not going to comment on that separately.

Okay, thank you.

Alright. Operator, thank you very much. I want to thank everybody for joining us this morning. And as Brian and I will certainly be available for any questions you have over the next few days. Thank you.

Ladies and gentlemen, that does conclude our conference today. We would like to thank you for your participation and for using AT&T Teleconference. You may now disconnect.