Ladies and gentlemen, thank you for standing by. Welcome to Clear Channel's first quarter 2014 earnings. Now, I will turn the conference over to Effie Epstein, Vice President of Investor Relations.

Good morning, and thank you for joining our 2014 First Quarter Earnings Call. On the call today are Rich Bressler, President and Chief Financial Officer; and Brian Coleman, Senior Vice President and Treasurer. We'll provide an overview of the first quarter 2014 financial and operating performances of CC Media Holdings, Clear Channel Communications and Clear Channel Outdoor Holdings. For purposes of this call, when we describe the financial and operating performance of CC Media Holdings, that also describes the performance of its subsidiary, Clear Channel Communications. After an introduction and a review of the quarter, we'll open up the line for questions. Before we begin, I'd like to remind everyone that this conference call may include forward-looking statements that involve uncertainties and risks. 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 see our annual reports on Form 10-K and our quarterly reports on Form 10-Q filed with the Securities and Exchange Commission for a discussion of important factors that could affect our actual results. Pacing data will also be mentioned during this 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've 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 on the Investors section of our websites, clearchannel.com and clearchanneloutdoor.com. Please note that our 2 earnings releases and the slide presentation provide a detailed breakdown of all foreign exchange and noncash compensation expense items, as well as segment revenues and OIBDAN for the quarter. Our discussion today also excludes the effects of movements in foreign exchange. With that, I will now turn the call over to Rich Bressler.

Thanks, Effie, and good morning, everybody. Once again, as Effie mentioned in the opening remarks, we've prepared slides to accompany this call. You can find those on our website. Before reviewing our financial results, let me highlight several of the initiatives we've launched since our last earnings announcement that should help give you a sense of where we are taking the company. Starting with Media and Entertainment, we're living up to our promise to be everywhere our listeners want to find us. During the quarter, we announced key partnerships with Amazon's Fire TV, Apple’s CarPlay and the Samsung's Gear 2 smartwatch, and we're continuing to focus on expanding distribution of the iHeartRadio platform to engage with consumers both in and out of the home. On the broadcast radio front, last month, Nielsen Audio and Nielsen Catalina Solutions announced that they have finally cracked the code, and created the first single-source ROI measurement tool for radio. This study showed the power of radio and highlighted radio's ability to deliver sales lift of more than $6 for every dollar spent. According to Advertising Age, this is a ROI greater than digital or TV media. In fact, Nielsen found that one retail brand delivered a sales lift of more than $23 for each dollar spent on radio advertising. Finally, we have the definitive proof of radio's value. This is an important development as radio begins to close the gap between its massive consumer scale and engagement and its relative share of advertising spend. Nielsen has now proved, beyond a shadow of a doubt what everyone in our industry has always known, that radio over-delivers by far, for our advertising partners and that radio provides unparalleled value for every dollar invested. As you can imagine, we're sharing the details of this Nielsen study with…

[Operator Instructions] Our first question today comes from the line of Marci Ryvicker with Wells Fargo.

I just wanted to dig deeper into the national commentary. And I guess first, can you just tell us what percent of your revenue both in Outdoor and radio is national?

Sure, Marci. So if you look at -- national was about 1/3 of our revenue, around -- or about 35% of our overall revenue for Outdoor.

Okay, what about for radio?

We haven't -- we don't break that out for radio separately.

Okay. And then I'm curious why there has been a shift in Outdoor, specifically and not radio and I'm just also curious if it's particular ad categories are having a larger impact than others in particular markets, or is it just a broad-based shift?

I'm not sure. I wouldn't call it really a broad-based shift and just to maybe just take a step back, I want to make one comment on Outdoor. We continue to be incredibly bullish and are incredibly bullish about the Outdoor business. And I think that's an important context. And really, because of the rise of cities, people spend more than 1/3 of their time outside of home right now. I think if you look at America, we're particularly like 80% of American consumers are out of their home the majority of the day. So it's really important to remember the Outdoor business. When you look at the categories, by the way, just the overall comment on categories for Outdoor, we were strong in Americas, strong on travel and transportation, real estate, some things like government agencies, a little weaker on hotels, motels, beverages and the entertainment business. And really, what happened when you look at CCOA, which I assume is what you're referring to specifically, that we just had a couple of national advertisers that were really doing away with the 12 months contract as part of the upfront and instead, relying a little bit more on specific product launches as I highlighted in my opening remarks and social media guide with their spot buying throughout the year. And from our standpoint, I think that's -- and obviously, the Olympics and the Sochi Olympics, which I think I also referred to in my remarks and that also hurt us a little bit in the first quarter. And what we don't want to do is we don't want to refer to kind of some short-term tactics like I think, some of our competition did. And so from our standpoint, where we're driving the outdoor business is to really say this…

So just -- it sounds like it's more of a change in buying patterns versus actual money that's leaving and going somewhere else. Is that the right way to characterize it?

Yes. Look, I'm not going to characterize it but I think yes. I think for the most parts, it's a little bit more in some of the change in buying patterns and we're in a competitive environment out here for advertising dollars. You're saw a lot of people release numbers and I'm you've seen as much as I have the last couple of days whether they're traditional media companies, new media companies, people releasing numbers today, people releasing numbers this afternoon. But I think that the end, you really need to keep your focus. We all need to keep our focus and the eye on our prize here is that we've got this great set of assets, which is why I went through a couple of minutes up front about the strength of Outdoor and why we think it's such a great business both in the U.S. and outside the U.S. And then you also have to have management, which is why I pointed out under the leadership of Bob and William Eccleshare and myself, Walker, Suzanne Grimes in the U.S., our teams outside the U.S. It is also about management and recognizing shifts in patterns that are out there and making sure that you change your strategies to capture those dollars when the shift in patterns happen. And that's where you'll see that's happening here and that's why I pointed out CCI from a credibility standpoint say, okay, we saw that shift in pattern happening outside the U.S. for International and now, look at the quarter we just had. I mean, International's up over 20% on the bottom line.

We have a question from Avi Steiner with JPMorgan.

A couple more on Outdoor before I shift gears here for a second. In the Americas, if we stripped out the airport loss and nonrenewal in L.A, am I right that Outdoors still would have been down and is there a way to kind of frame that somehow for us?

Well, look, I'm not going to and I'll be -- I know you guys ask maybe every call a little different way, a little different question but I'm not going to break out any of the pieces. I'll really stick to what I was saying before. Look, L.A. digital we saw the 77 boards that are down. They were down starting the second quarter of last year and back to my comment earlier, so we don't have a clean quarter the first quarter. I'd like a clean quarter too. We don't have a clean quarter in the second year -- in the second quarter, I'm sorry. And I just want to remind everybody that even in the second quarter even though the boards legally technically came down April 15, 2013 but cancellations, I think, as you're are all well aware, takes 4 to 5 weeks to come through. So we were able to execute on most of the contracts we had last year that was signed up for digital Outdoor even though the boards came down by leveraging our other assets in the portfolio. So I think we're still going to have some tough comps in the second quarter and it's still not clean in terms of a year-over-year business.

Fair enough. And then on the prepared remarks, I heard you talk about this change in buying pattern as coming back long term and if I'm misquoting you, I apologize, but am I thinking about that right or did I hear that right and is that something that you think normalizes this year or the does it take longer for that to happen?

No, I think you'll see continued improvement and that's why I purposely, in my prepared remarks, did not use the word long term. It's something that Walker and his team and Suzanne, they're all over this. I was with Walker yesterday. He was in my office, he was on doing a bunch of ad sales meetings, these -- and you'll start to see improvement in the second quarter, third quarter, fourth quarter. I think you'll continue to see improves throughout the years. So this is not long term. This is just, like I said, I think we had a confluence of events in the first quarter. And again, not to be a broken record but I will be a broken record. I'd point out what we did at CCI on International and within a quarter and 2 quarters, look at the results we're now producing of the great work William and his team did outside the United States.

Okay, turning to radio, I think you referenced a big buy last year at this time. Was that one-time event, something that comes back? Can you frame that or put some magnitude around that?

I'm sorry what's the question Avi? I'm not...

On radio pacings, I thought you had referenced a big telco buy last year at this time?

Yes, yes, I did. I mean, look, my only point to there and you all know if I haven't said it 100x, I'll say it 100x more, how much I hate giving everybody pacings information, because it is such a snapshot in a point in time. It could change quickly and you're catching it at some period in time that we had a big buy last year. But yes, we did have a big buy last year and all I was referencing is how it affects things at the day I'm giving you those pacings. But we have, with Tim Castelli and his team and Greg Glendale [ph] and Jeff Howard leading all of our national sales efforts. They're constantly in the market. We have lots of buys that are going on. I was just referencing this point in time compared to last year.

Okay. The press reported, I don't know if you're going to answer this either but I'm going to try, that you've been engaging in some headcount reduction on the radio side. I don't know if you can help us think about that in terms of margins going forward. You did talk about, I think, growth in EBITDA on the radio business going forward but anything you can talk about there would be helpful.

Look I'm not going to discuss anything individually on any matters that we do. But if you just really kind of take a step back, the one thing, and I think Bob and I have been clear on this over the last several months, not by our word, by our actions. We've significantly flattened our senior management organization to reduce overlap. And now that we're aligning our sales organizations to this structure and we're giving it more resources, we're giving people more authority, we're giving people more accountability, we've got just a great team in place. So we're trying to -- so that team can now be more productive, they can operate efficiently and they can operate as effectively as possible. And we're just going to continue -- with that as a backdrop, we'll continue to look for ways to be more effective and more efficient as we identify opportunities to improve our business. And look that's our job. I mean, our job is to create value for all of our stakeholders and anytime we identify that we can be more effective, more efficient, anytime we identify that we can get closer to the decision-making process, and the sum of all of those points is to drop more to the bottom line, we expect to do that. And I expect that you'll see to realize EBITDA benefits from all of our actions in this year as the results go forward.

Question from Jason Kim with Goldman Sachs.

Maybe a couple of questions at the capital structure side. First of all, is there any particular reason why you paid down the $247 million of your ABO [ph] facility during the quarter?

Sure, Jason, this is Brian. That really was a cash management maneuver, right? We had the cash. We could earn 20 basis points in short-term investments so we could earn 200 basis points so to speak by repaying the ABO. The liquidity is still available. We can reborrow that at any time. So that's really a cash management move. When we think about our liquidity, it didn't change anything because it's available to be drawn if and when needed.

Okay. And then I mean, I guess, as I look at the trading levels of your bonds in the bank that virtually, every piece of that is at the highs right now. So the market seems to be continuing to be supportive of the company and I know you typically talk about balancing between the taking advantage of market conditions and not taking on more interest expense too soon. As you look to push out maturities and obviously, your last major transaction was done just that the end of last year. But has your thoughts evolved at all recently, given how well your bonds are trading today? And I'm talking about looking at potentially addressing more of your maturities and even ways to save on interest expense on some of your wider spread term loans?

Yes, first let me just that it has not gone unnoticed, the improvement in the trading levels across our capital structure, the whole complex. So we are aware of that. Yes, I think the best way to answer this question is if you take a look at our past behavior, it's probably a pretty good indication of the company's future behavior. We have been active in the past, we'll continue to be active. This is just one of those things like asset sales. I can tell you actually, we have something unannounced, we can't really talk about it. You still get the question and you have to answer it like I'm answering it today.

We have a question from David Miller.

I just wanted to flush out the Los Angeles situation a little bit more. So at least my impression was that those comparisons lapped on April 15, but you guys are saying that that's not really true because even though the boards were turned off last year on April 15, there was sort of a residual revenue affect that kind of leaked into the bottom portion of last year's quarter. Can you just flush that out for me a little bit? Was it a make good situation or how should I think about that? Should I just assume basically that those comparisons don't really lap on April 15? Should I just to show that as of July 1, that the comparisons laps -- when should that comparison lap, in your view?

So look, somewhere between what a mentioned, just I want to go back to that again because I just want to make sure I was clear if I wasn't clear before. So just as a reminder, the boards were turned off April 15. You're right on that. In the advertising world, in the advertising community, cancellations usually take 4 to 5 weeks to come through since you have contracts and you have the ability to repurpose that inventory and we were able to do that by leveraging other assets in our portfolio and I think it's just worth reminding all of us that yes, we did lose 77 digital boards in L.A. and we're on a process we're working. I think as I said in my opening remarks with the municipalities in L.A. very constructively, to move forward and to get those back. On the other hand, in the city of Los Angeles, just as a reminder, we still have -- we have 2,000 traditional bulletins and posters in L.A. County, excluding the city. We have another 2,800 spaces. In the greater Los Angeles DMA, we have another 3,200 spaces. So we have plenty of other places to put this inventory there. And so in terms of -- I can tell you exactly how to model it and when to do it. All I can tell you that April 15, they came down, the contracts had 4 to 5 weeks to run a number of the contracts, that it was still not a clean quarter. What I would say is obviously, clearly, the third quarter will be a clean quarter, the third quarter this year compared to the third quarter last year.

We have question from Lance Vitanza with CRT.

It looks like you're finally seeing a turnaround in France. It seems like it's coming sometime after the economies at least started to improve. And so I'm just wondering, is that just a normal lag between economic recovery and Outdoor ad spend or is something else going on there? Is market getting less competitive or can you talk a little bit about that?

Happy to talk about it, and thanks for the question on France. Look, the French market -- the French market in France is as competitive as it was 12 months ago. So there clearly is no material change to that. I think as we've talked about in the last 6 or 7 months, one of our big initiatives with CCI is allocate capital, the highest return on inventory. One of our big initiatives is to identify unserved or bring a tighter focus to markets and go where we think we can capture dollars. I'm not going to go into a lot of detail on that for competitive reasons. But with the downturn that was happening last year in France, we took a critical look at our footprint. We managed it to focus on the highest ROI. For example, we do have better offerings in digital malls in France, which have performed very well in Q1. And overall, France came back this quarter. And by the way I think I've pointed this out briefly, your question was on France, but I also want to point out the U.K. and China were also growth markets for us in the first quarter. So we feel really good about again, the job the team has done in the markets we're in.

If I could just get one more in quickly on the political revenue. Could you remind is what the current asset configuration generated in 2Q '12 and 2Q '13 in terms of political revenues?

Yes, I don't have that off hand. I'll let Effie get back to you with that. And just as a reminder, our political dollars this year are relatively smaller or not even relatively, are small in the first quarter, the second quarter. We expect to see the bulk of the political spending come in the third and fourth quarter and Nathan Daschle and his team and the new political organization we have are just doing an outstanding job for us. I remember, Nathan used to run the Democratic Governor's Association, came on board towards the end of last year and he and his team are working with all our market presence to make sure we maximize the advertising dollars. So we feel really good about that.

Question from Tracy Young with Evercore.

Just focusing on the digital business. It looks like you added 15 boards this quarter, it's a little light versus prior first quarter. Is that just a timing difference compared to where they're going to be aligned for the rest of the year? And also, is there any way for you to give us the same board revenue growth on digital?

Okay, so in terms of the digital expansion, yes, we did add only 15 boards this year. That we are continue to be incredibly bullish about digital billboards. We intended to add more digital billboards this quarter than we added last and more as the year goes on. But quite frankly, the extreme weather conditions that I referenced earlier in the opening remarks and a slow permitting process has forced us to push those planned installations into the second and third quarter. But I think you'll see the pace of those pick up.

Okay. And is there any way to give us just a revenue -- same board revenue growth figure for digital for first quarter?

No, we don't break that out, sorry.

At this time, there are no further questions in queue. Please continue.

Great. Well, look, thank you, everybody. Effie, I, Brian and the team, we're here to answer any follow-up questions and hope everybody has a great day.

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