OUTFRONT Media Reports First Quarter 2021 Results
OUTFRONT Media reported Q1 2021 revenues of $259.2 million, a decrease of 32.7% from Q1 2020. The net loss attributable to the company was $67.7 million, compared to a profit of $6.1 million in the same period last year. The decline in revenue was primarily due to the COVID-19 pandemic's impact on advertising expenditures. Total operating expenses decreased by 21%, while adjusted OIBDA fell to $11.1 million, an 85.3% decline. The company suspended its common stock dividend to enhance liquidity. As of March 31, 2021, liquidity stood at $560 million.
- Total operating expenses decreased by 21%, indicating cost management efforts amid revenue decline.
- Liquidity position remains strong with $560 million in cash.
- Q1 2021 revenues decreased by 32.7% compared to Q1 2020.
- Net loss attributable to OUTFRONT Media was $67.7 million, compared to net income of $6.1 million in Q1 2020.
- Adjusted OIBDA fell to $11.1 million, a decrease of 85.3% year-over-year.
- Suspension of common stock dividend may affect investor sentiment.
NEW YORK, May 4, 2021 /PRNewswire/ -- OUTFRONT Media Inc. (NYSE: OUT) today reported results for the quarter ended March 31, 2021.
"First quarter revenues came in as expected and, from here forward, we will be making a big forward step towards our record 2019 results," said Jeremy Male, Chairman and Chief Executive Officer of OUTFRONT Media. "We are experiencing substantial revenue growth in all our segments in the second quarter, which will be the inflection point for both us and the industry as the world moves from stay-at-home to out-of-home."
Three Months Ended | ||||
$ in Millions, except per share amounts | 2021 | 2020 | ||
Revenues | ||||
Organic Revenues | 259.2 | 372.1 | ||
Operating Income (loss) | (31.0) | 33.8 | ||
Adjusted OIBDA | 11.1 | 75.5 | ||
Net income (loss) before allocation to non-controlling interests | (67.6) | 6.3 | ||
Net income (loss)2 | (67.7) | 6.1 | ||
Earnings (loss) per share1,2,3 | ( | |||
Funds From Operations (FFO)2 | (30.4) | 44.7 | ||
Adjusted FFO (AFFO)2 | (24.5) | 40.0 | ||
Shares Outstanding3 | 144.8 | 144.7 | ||
Notes: See exhibits for reconciliations of non-GAAP financial measures; 1) Per share for diluted earnings per share; 2) References to "Net income (loss)", "Earnings (loss) per share", "FFO" and "AFFO" mean "Net income (loss) attributable to OUTFRONT Media Inc.", "Earnings (loss) attributable to OUTFRONT Media Inc. per share", "FFO attributable to OUTFRONT Media Inc." and "AFFO attributable to OUTFRONT Media Inc.," respectively; 3) Diluted weighted average shares outstanding. | ||||
First Quarter 2021 Results
Consolidated
Reported revenues of
Reported billboard revenues of
Reported transit and other revenues of
Total Operating expenses of
Adjusted OIBDA of
Segment Results
U.S. Media
Reported and organic revenues of
Operating expenses decreased
Adjusted OIBDA of
Other
Reported revenues of
Operating expenses decreased
Adjusted OIBDA loss of
Corporate
Corporate costs, excluding stock-based compensation, increased
Interest Expense
Net Interest expense was
Income Taxes
The benefit for income taxes was
Net Income (Loss) Attributable to OUTFRONT Media Inc.
Net loss attributable to OUTFRONT Media Inc. was
FFO & AFFO
FFO attributable to OUTFRONT Media Inc. was a deficit of
Cash Flow & Capital Expenditures
Net cash flow used for operating activities was
Dividends
In the three months ended March 31, 2021, we paid cash dividends of
Balance Sheet and Liquidity
As of March 31, 2021, our liquidity position included unrestricted cash of
COVID-19 Pandemic
The COVID-19 pandemic and the related preventative measures taken to help curb the spread, have had, and may continue to have, a significant impact on the global economy and our business. In 2021, the COVID-19 pandemic may continue to, among other things, (i) reduce or curtail our customers' advertising expenditures and overall demand for our services through purchase cancellations or otherwise; (ii) increase the volatility of our customers' advertising expenditure patterns from period-to-period through short-notice purchases, purchase deferrals or otherwise; and (iii) extend delays in the collection of certain earned advertising revenues from our customers, all of which could have a material adverse effect on our business, financial condition and results of operation in 2021. As a result of the impact of the ongoing COVID-19 pandemic on our business and results of operations, we expect our key performance indicators and total revenues to incrementally improve throughout the remainder of 2021 as compared to 2020, but be materially lower in 2021 than pre-COVID-19 pandemic levels, particularly in our U.S. Media segment and with respect to our transit and other business. We expect total expenses to increase throughout the remainder of 2021 as compared to 2020, but be materially lower than pre-COVID-19 pandemic levels, particularly in our U.S. Media segment and with respect to our transit and other business. Additionally, we expect billboard property lease expenses, such as rental expenses, and posting, maintenance and other expenses, as a percentage of revenues, to decrease throughout the remainder of 2021 as compared to 2020, but be materially higher than pre-COVID-19 pandemic levels. We expect transit franchise expenses, such as transit franchise payments, as a percentage of revenues, to increase throughout the remainder of 2021 as compared to 2020, and be materially higher than pre-COVID-19 pandemic levels, primarily due to our guaranteed minimum annual payment amounts owed to the MTA, which resumed on January 1, 2021. The impacts described above with respect to 2020 were greatest in the second quarter of 2020, with incremental improvement in the third and fourth quarters of 2020. Accordingly, results for the three months ended March 31, 2021, are not indicative of the results that may be expected for the fiscal year ending December 31, 2021. In addition, in order to preserve financial flexibility, increase liquidity and reduce expenses in light of the current uncertainty in the global economy and our business, we modified our business goals and undertook several actions to date, including, among other things, issuing the Series A Preferred Stock and certain senior unsecured notes, amending the credit agreement governing the revolving credit facility to modify the calculation of our financial maintenance covenant ratio, suspending our quarterly dividend payments on our common stock as described above, and reducing SG&A and posting, maintenance and other expenses. There remains uncertainty around the severity and duration of the COVID-19 pandemic and the measures taken, or may be taken, in response to the COVID-19 pandemic, which will depend on numerous factors, including, among others, the emergence of new cases of COVID-19 or its variants, hospitalization and mortality rates, and the availability and distribution of safe and effective treatments and vaccines. Accordingly, we cannot reasonably estimate the full impact of the COVID-19 pandemic on our business, financial condition and results of operations at this time, which may be material.
Conference Call
We will host a conference call to discuss the results on May 4, 2021 at 4:30 p.m. Eastern Time. The conference call numbers are 800-367-2403 (U.S. callers) and 334-777-6978 (International callers) and the passcode for both is 7892218. Live and replay versions of the conference call will be webcast in the Investor Relations section of our website, www.OUTFRONTmedia.com.
Supplemental Materials
In addition to this press release, we have provided a supplemental investor presentation which can be viewed on our website, www.OUTFRONTmedia.com.
About OUTFRONT Media Inc.
OUTFRONT leverages the power of technology, location and creativity to connect brands with consumers outside of their homes through one of the largest and most diverse sets of billboard, transit, and mobile assets in North America. Through its technology platform, OUTFRONT will fundamentally change the ways advertisers engage audiences on-the-go.
Contacts: | ||
Investors | Media | |
Gregory Lundberg | Courtney Richards | |
Senior Vice President, Investor Relations | PR & Events Specialist | |
(212) 297-6441 | (646) 876-9404 | |
greg.lundberg@OUTFRONTmedia.com | courtney.richards@OUTFRONTmedia.com |
Non-GAAP Financial Measures
In addition to the results prepared in accordance with generally accepted accounting principles in the United States ("GAAP") provided throughout this document, this document and the accompanying tables include non-GAAP financial measures as described below. We calculate organic revenues as reported revenues excluding revenues associated with a disposition and the impact of foreign currency exchange rates ("non-organic revenues"). We provide organic revenues to understand the underlying growth rate of revenue excluding the impact of non-organic revenue items. Our management believes organic revenues are useful to users of our financial data because it enables them to better understand the level of growth of our business period to period. We calculate and define "Adjusted OIBDA" as operating income (loss) before depreciation, amortization, net (gain) loss on dispositions, stock-based compensation and restructuring charges. We calculate Adjusted OIBDA margin by dividing Adjusted OIBDA by total revenues. Adjusted OIBDA and Adjusted OIBDA margin are among the primary measures we use for managing our business, evaluating our operating performance and planning and forecasting future periods, as each is an important indicator of our operational strength and business performance. Our management believes users of our financial data are best served if the information that is made available to them allows them to align their analysis and evaluation of our operating results along the same lines that our management uses in managing, planning and executing our business strategy. Our management also believes that the presentations of Adjusted OIBDA and Adjusted OIBDA margin, as supplemental measures, are useful in evaluating our business because eliminating certain non-comparable items highlight operational trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures. It is management's opinion that these supplemental measures provide users of our financial data with an important perspective on our operating performance and also make it easier for users of our financial data to compare our results with other companies that have different financing and capital structures or tax rates. When used herein, references to "FFO" and "AFFO" mean "FFO attributable to OUTFRONT Media Inc." and "AFFO attributable to OUTFRONT Media Inc.," respectively. We calculate FFO in accordance with the definition established by the National Association of Real Estate Investment Trusts ("NAREIT"). FFO reflects net income (loss) attributable to OUTFRONT Media Inc. adjusted to exclude gains and losses from the sale of real estate assets, depreciation and amortization of real estate assets, amortization of direct lease acquisition costs and the same adjustments for our equity-based investments and non-controlling interests, as well as the related income tax effect of adjustments, as applicable. We calculate AFFO as FFO adjusted to include cash paid for direct lease acquisition costs as such costs are generally amortized over a period ranging from four weeks to one year and therefore are incurred on a regular basis. AFFO also includes cash paid for maintenance capital expenditures since these are routine uses of cash that are necessary for our operations. In addition, AFFO excludes restructuring charges and losses on extinguishment of debt, as well as certain non-cash items, including non-real estate depreciation and amortization, stock-based compensation expense, accretion expense, the non-cash effect of straight-line rent, amortization of deferred financing costs and the same adjustments for our non-controlling interests, as well as the non-cash portion of income taxes and the related income tax effect of adjustments, as applicable. We use FFO and AFFO measures for managing our business and for planning and forecasting future periods, and each is an important indicator of our operational strength and business performance, especially compared to other real estate investment trusts ("REITs"). Our management believes users of our financial data are best served if the information that is made available to them allows them to align their analysis and evaluation of our operating results along the same lines that our management uses in managing, planning and executing our business strategy. Our management also believes that the presentations of FFO and AFFO, as supplemental measures, are useful in evaluating our business because adjusting results to reflect items that have more bearing on the operating performance of REITs highlight trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures. It is management's opinion that these supplemental measures provide users of our financial data with an important perspective on our operating performance and also make it easier to compare our results to other companies in our industry, as well as to REITs. Since organic revenues, Adjusted OIBDA, Adjusted OIBDA margin, FFO and AFFO are not measures calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, revenues, operating income (loss) and net income (loss) attributable to OUTFRONT Media Inc., the most directly comparable GAAP financial measures, as indicators of operating performance. These measures, as we calculate them, may not be comparable to similarly titled measures employed by other companies. In addition, these measures do not necessarily represent funds available for discretionary use and are not necessarily a measure of our ability to fund our cash needs.
Please see Exhibits 4-6 of this release for a reconciliation of the above non-GAAP financial measures to the most directly comparable GAAP financial measures.
Cautionary Statement Regarding Forward-Looking Statements
We have made statements in this document that are forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by the use of forward-looking terminology such as "believes," "expects," "could," "would," "may," "might," "will," "should," "seeks," "likely," "intends," "plans," "projects," "predicts," "estimates," "forecast" or "anticipates" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions related to our capital resources, portfolio performance and results of operations, including but not limited to the impact of the novel coronavirus ("COVID-19") pandemic on our capital resources, portfolio performance and results of operations. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and may not be able to be realized. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: declines in advertising and general economic conditions, including declines caused by the COVID-19 pandemic; the severity and duration of the COVID-19 pandemic and any other pandemics, and the impact on our business, financial condition and results of operations; competition; government regulation; our ability to implement our digital display platform and deploy digital advertising displays to our transit franchise partners, including interruptions and reductions in demand caused by the impact of the COVID-19 pandemic; losses and costs resulting from recalls and product liability, warranty and intellectual property claims; our ability to obtain and renew key municipal contracts on favorable terms; taxes, fees and registration requirements; decreased government compensation for the removal of lawful billboards; content-based restrictions on outdoor advertising; seasonal variations; acquisitions and other strategic transactions that we may pursue could have a negative effect on our results of operations; dependence on our management team and other key employees; diverse risks in our Canadian business; experiencing a cybersecurity incident; changes in regulations and consumer concerns regarding privacy, information security and data, or any failure or perceived failure to comply with these regulations or our internal policies; asset impairment charges for our long-lived assets and goodwill; environmental, health and safety laws and regulations; our substantial indebtedness; restrictions in the agreements governing our indebtedness; incurrence of additional debt; interest rate risk exposure from our variable-rate indebtedness; our ability to generate cash to service our indebtedness; cash available for distributions; hedging transactions; the ability of our board of directors to cause us to issue additional shares of stock without common stockholder approval; certain provisions of Maryland law may limit the ability of a third party to acquire control of us; our rights and the rights of our stockholders to take action against our directors and officers are limited; our failure to remain qualified to be taxed as a REIT; REIT distribution requirements; availability of external sources of capital; we may face other tax liabilities even if we remain qualified to be taxed as a REIT; complying with REIT requirements may cause us to liquidate investments or forgo otherwise attractive opportunities; our ability to contribute certain contracts to a taxable REIT subsidiary ("TRS"); our planned use of TRSs may cause us to fail to remain qualified to be taxed as a REIT; REIT ownership limits; complying with REIT requirements may limit our ability to hedge effectively; failure to meet the REIT income tests as a result of receiving non-qualifying income; the Internal Revenue Service may deem the gains from sales of our outdoor advertising assets to be subject to a
EXHIBITS | ||||||||
Exhibit 1: CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(in millions, except per share amounts) | 2021 | 2020 | ||||||
Revenues: | ||||||||
Billboard | $ | 223.6 | $ | 270.9 | ||||
Transit and other | 35.6 | 114.4 | ||||||
Total revenues | 259.2 | 385.3 | ||||||
Expenses: | ||||||||
Operating | 177.6 | 224.8 | ||||||
Selling, general and administrative | 76.5 | 90.8 | ||||||
Net gain on dispositions | (0.3) | (0.1) | ||||||
Depreciation | 20.0 | 21.0 | ||||||
Amortization | 16.4 | 15.0 | ||||||
Total expenses | 290.2 | 351.5 | ||||||
Operating income (loss) | (31.0) | 33.8 | ||||||
Interest expense, net | (34.6) | (29.8) | ||||||
Loss on extinguishment of debt | (6.3) | — | ||||||
Other income, net | — | 0.2 | ||||||
Income (loss) before benefit for income taxes and equity in earnings of investee companies | (71.9) | 4.2 | ||||||
Benefit for income taxes | 4.7 | 1.7 | ||||||
Equity in earnings of investee companies, net of tax | (0.4) | 0.4 | ||||||
Net income (loss) before allocation to non-controlling interests | (67.6) | 6.3 | ||||||
Net income attributable to non-controlling interests | 0.1 | 0.2 | ||||||
Net income (loss) attributable to OUTFRONT Media Inc. | $ | (67.7) | $ | 6.1 | ||||
Net income (loss) per common share: | ||||||||
Basic | $ | (0.52) | $ | 0.04 | ||||
Diluted | $ | (0.52) | $ | 0.04 | ||||
Weighted average shares outstanding: | ||||||||
Basic | 144.8 | 143.9 | ||||||
Diluted | 144.8 | 144.7 | ||||||
Exhibit 2: CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||||
As of | ||||||||
(in millions) | March 31, | December 31, | ||||||
Assets: | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 560.0 | $ | 710.4 | ||||
Restricted cash | 1.6 | 1.6 | ||||||
Receivables, less allowance ( | 164.9 | 209.2 | ||||||
Prepaid lease and franchise costs | 9.1 | 5.4 | ||||||
Other prepaid expenses | 13.9 | 14.4 | ||||||
Other current assets | 28.0 | 33.7 | ||||||
Total current assets | 777.5 | 974.7 | ||||||
Property and equipment, net | 629.2 | 634.2 | ||||||
Goodwill | 2,078.0 | 2,077.8 | ||||||
Intangible assets | 545.8 | 547.5 | ||||||
Operating lease assets | 1,437.7 | 1,421.3 | ||||||
Prepaid MTA equipment deployment costs | 208.2 | 204.6 | ||||||
Other assets | 37.5 | 36.8 | ||||||
Total assets | $ | 5,713.9 | $ | 5,896.9 | ||||
Liabilities: | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 56.8 | $ | 64.9 | ||||
Accrued compensation | 30.9 | 35.0 | ||||||
Accrued interest | 17.5 | 24.5 | ||||||
Accrued lease and franchise costs | 39.1 | 65.8 | ||||||
Other accrued expenses | 40.0 | 38.0 | ||||||
Deferred revenues | 42.3 | 29.5 | ||||||
Short-term debt | — | 80.0 | ||||||
Short-term operating lease liabilities | 185.7 | 176.5 | ||||||
Other current liabilities | 20.4 | 20.7 | ||||||
Total current liabilities | 432.7 | 534.9 | ||||||
Long-term debt, net | 2,616.6 | 2,620.8 | ||||||
Deferred income tax liabilities, net | 13.2 | 14.6 | ||||||
Asset retirement obligation | 36.1 | 35.9 | ||||||
Operating lease liabilities | 1,258.4 | 1,252.0 | ||||||
Other liabilities | 52.7 | 55.0 | ||||||
Total liabilities | 4,409.7 | 4,513.2 | ||||||
Commitments and contingencies | ||||||||
Preferred stock (2021 - 50.0 shares authorized, and 0.4 shares of Series A Preferred Stock issued and outstanding; 2020 - 50.0 shares authorized, and 0.4 shares issued and outstanding) | 383.4 | 383.4 | ||||||
Stockholders' equity: | ||||||||
Common stock (2021 - 450.0 shares authorized, and 145.5 shares issued and outstanding; 2020 - 450.0 shares authorized, and 144.5 issued and outstanding) | 1.5 | 1.4 | ||||||
Additional paid-in capital | 2,095.5 | 2,090.8 | ||||||
Distribution in excess of earnings | (1,175.1) | (1,100.4) | ||||||
Accumulated other comprehensive loss | (15.5) | (18.0) | ||||||
Total stockholders' equity | 906.4 | 973.8 | ||||||
Non-controlling interests | 14.4 | 26.5 | ||||||
Total equity | 1,304.2 | 1,383.7 | ||||||
Total liabilities and equity | $ | 5,713.9 | $ | 5,896.9 | ||||
Exhibit 3: CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(in millions) | 2021 | 2020 | ||||||
Operating activities: | ||||||||
Net income (loss) attributable to OUTFRONT Media Inc. | $ | (67.7) | $ | 6.1 | ||||
Adjustments to reconcile net income (loss) to net cash flow provided by (used for ) operating activities: | ||||||||
Net income attributable to non-controlling interests | 0.1 | 0.2 | ||||||
Depreciation and amortization | 36.4 | 36.0 | ||||||
Deferred tax benefit | (5.2) | (1.8) | ||||||
Stock-based compensation | 6.0 | 5.8 | ||||||
Provision for doubtful accounts | (2.8) | 8.1 | ||||||
Accretion expense | 0.7 | 0.6 | ||||||
Net gain on dispositions | (0.3) | (0.1) | ||||||
Loss on extinguishment of debt | 6.3 | — | ||||||
Equity in earnings of investee companies, net of tax | 0.4 | (0.4) | ||||||
Distributions from investee companies | 0.3 | 1.2 | ||||||
Amortization of deferred financing costs and debt discount and premium | 1.9 | 1.3 | ||||||
Change in assets and liabilities, net of investing and financing activities: | ||||||||
Decrease in receivables | 47.2 | 19.7 | ||||||
Increase in prepaid MTA equipment deployment costs | (3.6) | (18.2) | ||||||
(Increase) decrease in prepaid expenses and other current assets | 1.2 | (2.8) | ||||||
Decrease in accounts payable and accrued expenses | (46.1) | (46.0) | ||||||
Increase in operating lease assets and liabilities | 0.4 | 1.3 | ||||||
Increase in deferred revenues | 12.8 | 11.1 | ||||||
Decrease in income taxes | (0.1) | (0.7) | ||||||
Other, net | 1.3 | (6.5) | ||||||
Net cash flow provided by (used for) operating activities | (10.8) | 14.9 | ||||||
Investing activities: | ||||||||
Capital expenditures | (9.4) | (18.2) | ||||||
Acquisitions | (15.8) | (6.6) | ||||||
MTA franchise rights | (4.2) | (2.8) | ||||||
Net proceeds from dispositions | 1.1 | 0.3 | ||||||
Return of investments in investee companies | — | 0.6 | ||||||
Net cash flow used for investing activities | (28.3) | (26.7) | ||||||
Financing activities: | ||||||||
Proceeds from long-term debt borrowings | 500.0 | 495.0 | ||||||
Repayments of long-term debt borrowings | (500.0) | — | ||||||
Proceeds from borrowings under short-term debt facilities | — | 15.0 | ||||||
Repayments of borrowings under short-term debt facilities | (80.0) | — | ||||||
Payments of deferred financing costs | (7.1) | (0.4) | ||||||
Payment of debt extinguishment charges | (4.7) | — | ||||||
Taxes withheld for stock-based compensation | (8.8) | (11.8) | ||||||
Dividends | (7.3) | (55.6) | ||||||
Other | (3.7) | — | ||||||
Net cash flow provided by (used for) financing activities | (111.6) | 442.2 | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0.3 | (1.7) | ||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (150.4) | 428.7 | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 712.0 | 60.9 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 561.6 | $ | 489.6 | ||||
Exhibit 3: CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(in millions) | 2021 | 2020 | ||||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for income taxes | $ | 0.5 | $ | 0.8 | ||||
Cash paid for interest | 39.9 | 37.5 | ||||||
Non-cash investing and financing activities: | ||||||||
Accrued purchases of property and equipment | 3.8 | 9.7 | ||||||
Accrued MTA franchise rights | 7.0 | 5.0 | ||||||
Taxes withheld for stock-based compensation | — | 0.2 | ||||||
Exhibit 4: SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION | |||||||||||||||||
Three Months Ended March 31, 2021 | |||||||||||||||||
(in millions, except percentages) | U.S. Media | Other | Corporate | Consolidated | |||||||||||||
Revenues: | |||||||||||||||||
Billboard | $ | 212.5 | $ | 11.1 | $ | — | $ | 223.6 | |||||||||
Transit and other | 32.9 | 2.7 | — | 35.6 | |||||||||||||
Total revenues | $ | 245.4 | $ | 13.8 | $ | — | $ | 259.2 | |||||||||
Organic revenues(a): | |||||||||||||||||
Billboard | $ | 212.5 | $ | 11.1 | $ | — | $ | 223.6 | |||||||||
Transit and other | 32.9 | 2.7 | — | 35.6 | |||||||||||||
Total organic revenues(a) | $ | 245.4 | $ | 13.8 | $ | — | $ | 259.2 | |||||||||
Non-organic revenues(b): | |||||||||||||||||
Billboard | $ | — | $ | — | $ | — | $ | — | |||||||||
Transit and other | — | — | — | — | |||||||||||||
Total non-organic revenues(b) | $ | — | $ | — | $ | — | $ | — | |||||||||
Operating loss | $ | (8.6) | $ | (4.9) | $ | (17.5) | $ | (31.0) | |||||||||
Net gain on dispositions | (0.3) | — | — | (0.3) | |||||||||||||
Depreciation and amortization | 33.5 | 2.9 | — | 36.4 | |||||||||||||
Stock-based compensation | — | — | 6.0 | 6.0 | |||||||||||||
Adjusted OIBDA | $ | 24.6 | $ | (2.0) | $ | (11.5) | $ | 11.1 | |||||||||
Adjusted OIBDA margin | 10.0 | % | (14.5) | % | * | 4.3 | % | ||||||||||
Capital expenditures | $ | 8.9 | $ | 0.5 | $ | — | $ | 9.4 | |||||||||
Three Months Ended March 31, 2020 | |||||||||||||||||
(in millions, except percentages) | U.S. Media | Other | Corporate | Consolidated | |||||||||||||
Revenues: | |||||||||||||||||
Billboard | $ | 256.5 | $ | 14.4 | $ | — | $ | 270.9 | |||||||||
Transit and other | 98.2 | 16.2 | — | 114.4 | |||||||||||||
Total revenues | $ | 354.7 | $ | 30.6 | $ | — | $ | 385.3 | |||||||||
Organic revenues(a) | |||||||||||||||||
Billboard | $ | 256.5 | $ | 15.2 | $ | — | $ | 271.7 | |||||||||
Transit and other | 98.2 | 2.2 | — | 100.4 | |||||||||||||
Total organic revenues(a) | $ | 354.7 | $ | 17.4 | $ | — | $ | 372.1 | |||||||||
Non-organic revenues(b): | |||||||||||||||||
Billboard | $ | — | $ | (0.8) | $ | — | $ | (0.8) | |||||||||
Transit and other | — | 14.0 | — | 14.0 | |||||||||||||
Total non-organic revenues(b) | $ | — | $ | 13.2 | $ | — | $ | 13.2 | |||||||||
Operating income (loss) | $ | 47.4 | $ | (3.3) | $ | (10.3) | $ | 33.8 | |||||||||
Net gain on dispositions | (0.1) | — | — | (0.1) | |||||||||||||
Depreciation and amortization(c) | 32.7 | 3.3 | — | 36.0 | |||||||||||||
Stock-based compensation | — | — | 5.8 | 5.8 | |||||||||||||
Adjusted OIBDA(c) | $ | 80.0 | $ | — | $ | (4.5) | $ | 75.5 | |||||||||
Adjusted OIBDA margin(c) | 22.6 | % | — | % | * | 19.6 | % | ||||||||||
Capital expenditures | $ | 17.3 | $ | 0.9 | $ | — | $ | 18.2 | |||||||||
Exhibit 5: SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(in millions) | 2021 | 2020 | ||||||
Net income (loss) attributable to OUTFRONT Media Inc. | $ | (67.7) | $ | 6.1 | ||||
Depreciation of billboard advertising structures | 14.1 | 15.5 | ||||||
Amortization of real estate-related intangible assets | 12.4 | 12.0 | ||||||
Amortization of direct lease acquisition costs | 11.2 | 11.3 | ||||||
Net gain on disposition of real estate assets | (0.3) | (0.1) | ||||||
Adjustment related to non-controlling interests | (0.1) | (0.1) | ||||||
FFO attributable to OUTFRONT Media Inc. | $ | (30.4) | $ | 44.7 | ||||
Non-cash portion of income taxes | (5.2) | (2.5) | ||||||
Cash paid for direct lease acquisition costs | (12.1) | (14.9) | ||||||
Maintenance capital expenditures | (3.6) | (4.8) | ||||||
Other depreciation | 5.9 | 5.5 | ||||||
Other amortization | 4.0 | 3.0 | ||||||
Stock-based compensation | 6.0 | 5.8 | ||||||
Non-cash effect of straight-line rent | 2.0 | 1.3 | ||||||
Accretion expense | 0.7 | 0.6 | ||||||
Amortization of deferred financing costs | 1.9 | 1.3 | ||||||
Loss on extinguishment of debt | 6.3 | — | ||||||
AFFO attributable to OUTFRONT Media Inc. | $ | (24.5) | $ | 40.0 | ||||
Exhibit 6: SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(in millions) | 2021 | 2020 | ||||||
Adjusted OIBDA(c) | $ | 11.1 | $ | 75.5 | ||||
Interest expense, net, less amortization of deferred financing costs | (32.7) | (28.5) | ||||||
Cash paid for income taxes | (0.5) | (0.8) | ||||||
Direct lease acquisition costs | (0.9) | (3.6) | ||||||
Maintenance capital expenditures | (3.6) | (4.8) | ||||||
Equity in earnings of investee companies, net of tax | (0.4) | 0.4 | ||||||
Non-cash effect of straight-line rent | 2.0 | 1.3 | ||||||
Accretion expense | 0.7 | 0.6 | ||||||
Other income | — | 0.2 | ||||||
Adjustment related to non-controlling interests | (0.2) | (0.3) | ||||||
AFFO attributable to OUTFRONT Media Inc. | $ | (24.5) | $ | 40.0 | ||||
Exhibit 7: OPERATING EXPENSES | |||||||||||
Three Months Ended | |||||||||||
March 31, | % | ||||||||||
(in millions, except percentages) | 2021 | 2020 | Change | ||||||||
Operating expenses: | |||||||||||
Billboard property lease | $ | 94.1 | $ | 102.8 | (8.5) | % | |||||
Transit franchise | 39.6 | 57.8 | (31.5) | ||||||||
Posting, maintenance and other | 43.9 | 64.2 | (31.6) | ||||||||
Total operating expenses | $ | 177.6 | $ | 224.8 | (21.0) | ||||||
Exhibit 8: EXPENSES BY SEGMENT | |||||||||||
Three Months Ended | |||||||||||
March 31, | % | ||||||||||
(in millions, except percentages) | 2021 | 2020 | Change | ||||||||
U.S. Media: | |||||||||||
Operating expenses | $ | 166.1 | $ | 202.7 | (18.1) | % | |||||
SG&A expenses(c) | 54.7 | 72.0 | (24.0) | ||||||||
Other: | |||||||||||
Operating expenses | 11.5 | 22.1 | (48.0) | ||||||||
SG&A expenses(c) | 4.3 | 8.5 | (49.4) | ||||||||
NOTES TO EXHIBITS
PRIOR PERIOD PRESENTATION CONFORMS TO CURRENT REPORTING CLASSIFICATIONS.
(a) | Organic revenues exclude revenues associated with a disposition and the impact of foreign currency exchange rates ("non-organic revenues"). |
(b) | In the three months ended March 31, 2020, non-organic revenues exclude the impact of the sale of all of our equity interests in certain of our subsidiaries (the "Sports Disposition"), which held all of the assets of our Sports Marketing operating segment and reflect the impact of foreign currency exchange rates. |
(c) | Consistent with the current year's presentation, we have reclassified amortization of direct lease acquisition costs of |
* | Calculation not meaningful |
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SOURCE OUTFRONT Media Inc.
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