OUTFRONT Media Reports First Quarter 2024 Results
OUTFRONT Media Inc. reported strong first quarter financial results with revenues of $408.5 million, operating income of $14.0 million, and a net loss of $27.2 million. Adjusted OIBDA stood at $66.5 million, with AFFO of $23.2 million. The company also declared a quarterly dividend of $0.30 per share, payable on June 28, 2024. The U.S. Media segment saw a revenue increase of 3.5%, while the Other segment reported a decrease of 2.6%. Adjusted OIBDA increased by 10.5% compared to the same period last year. Overall, OUTFRONT Media Inc. highlighted positive growth and solid financial performance for the quarter.
Strong first quarter financial results with revenues of $408.5 million.
Adjusted OIBDA increased by 10.5% to $66.5 million.
U.S. Media segment reported a revenue increase of 3.5%.
Declared a quarterly dividend of $0.30 per share.
Net loss of $27.2 million for the quarter.
Net loss per share was ($0.18).
Decrease in Other segment revenues by 2.6%.
Recorded additional impairment charges of $9.1 million related to MTA asset group.
Revenues of
Operating income of
Net loss attributable to OUTFRONT Media Inc. of
Adjusted OIBDA of
AFFO attributable to OUTFRONT Media Inc. of
Quarterly dividend of
"Strong local trends drove solid first quarter financial results, with total revenue up over
Three Months Ended | ||||
$ in Millions, except per share amounts | 2024 | 2023 | ||
Revenues | ||||
Organic revenues | 408.5 | 395.9 | ||
Operating income | 14.0 | 10.2 | ||
Adjusted OIBDA | 66.5 | 60.2 | ||
Net loss before allocation to non-controlling interests | (27.1) | (28.7) | ||
Net loss1 | (27.2) | (28.9) | ||
Net loss per share1,2,3 | ( | ( | ||
Funds From Operations (FFO)1 | 22.3 | 17.1 | ||
Adjusted FFO (AFFO)1 | 23.2 | 8.8 | ||
Shares outstanding3 | 165.4 | 164.5 |
Notes: See exhibits for reconciliations of non-GAAP financial measures; 1) References to "Net loss", "Net loss per share", "FFO" and "AFFO" mean "Net loss attributable to OUTFRONT Media Inc.", "Net loss attributable to OUTFRONT Media Inc. per common share", "FFO attributable to OUTFRONT Media Inc." and "AFFO attributable to OUTFRONT Media Inc.," respectively; 2) References to "per share" mean per common share for diluted earnings per weighted average share; 3) Diluted weighted average shares outstanding. |
First Quarter 2024 Results
Consolidated
Reported revenues of
Reported billboard revenues of
Reported transit and other revenues of
Total operating expenses of
Adjusted OIBDA of
Segment Results
Reported revenues of
Operating expenses increased
Adjusted OIBDA of
Other
Reported revenues of
Operating expenses decreased
Adjusted OIBDA of
Corporate
Corporate costs, excluding stock-based compensation, increased
Impairment Charges
As previously disclosed, we recorded impairment charges in 2023 with respect to our
Interest Expense
Net interest expense in the first quarter of 2024 was
Income Taxes
The benefit for income taxes was
Net Loss Attributable to OUTFRONT Media Inc.
Net loss attributable to OUTFRONT Media Inc. decreased
FFO & AFFO
FFO attributable to OUTFRONT Media Inc. increased
Cash Flow & Capital Expenditures
Net cash flow provided by operating activities increased
Dividends
In the three months ended March 31, 2024, we paid cash dividends of
Balance Sheet and Liquidity
As of March 31, 2024, our liquidity position included unrestricted cash of
Conference Call
We will host a conference call to discuss the results on May 2, 2024, at 4:30 p.m. Eastern Time. The conference call numbers are 833-470-1428 (
Supplemental Materials
In addition to this press release, we have provided a supplemental investor presentation which can be viewed on our website, www.outfront.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
Contacts: | ||
Investors | Media | |
Stephan Bisson | Courtney Richards | |
Investor Relations | PR & Events Specialist | |
(212) 297-6573 | (646) 876-9404 | |
stephan.bisson@outfront.com | courtney.richards@outfront.com |
Non-GAAP Financial Measures
In addition to the results prepared in accordance with generally accepted accounting principles in
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. 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; the severity and duration of pandemics, and the impact on our business, financial condition and results of operations; competition; government regulation; our ability to operate our digital display platform; 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, including risks related to the sale of 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; expectations relating to environmental, social and governance considerations; 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
EXHIBITS
Exhibit 1: CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Three Months Ended | ||||
March 31, | ||||
(in millions, except per share amounts) | 2024 | 2023 | ||
Revenues: | ||||
Billboard | $ 328.8 | $ 320.6 | ||
Transit and other | 79.7 | 75.2 | ||
Total revenues | 408.5 | 395.8 | ||
Expenses: | ||||
Operating | 238.7 | 235.5 | ||
Selling, general and administrative | 110.5 | 107.9 | ||
Net loss on dispositions | 0.1 | 0.3 | ||
Impairment charges | 9.1 | — | ||
Depreciation | 18.5 | 20.1 | ||
Amortization | 17.6 | 21.8 | ||
Total expenses | 394.5 | 385.6 | ||
Operating income | 14.0 | 10.2 | ||
Interest expense, net | (41.4) | (37.7) | ||
Loss before benefit (provision) for income taxes and equity in earnings of investee | (27.4) | (27.5) | ||
Benefit (provision) for income taxes | 0.5 | (0.4) | ||
Equity in earnings of investee companies, net of tax | (0.2) | (0.8) | ||
Net loss before allocation to non-controlling interests | (27.1) | (28.7) | ||
Net income attributable to non-controlling interests | 0.1 | 0.2 | ||
Net loss attributable to OUTFRONT Media Inc. | $ (27.2) | $ (28.9) | ||
Net loss per common share: | ||||
Basic | $ (0.18) | $ (0.19) | ||
Diluted | $ (0.18) | $ (0.19) | ||
Weighted average shares outstanding: | ||||
Basic | 165.4 | 164.5 | ||
Diluted | 165.4 | 164.5 |
Exhibit 2: CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||
As of | ||||
(in millions) | March 31, | December 31, | ||
Assets: | ||||
Current assets: | ||||
Cash and cash equivalents | $ 42.4 | $ 36.0 | ||
Receivables, less allowance ( | 251.7 | 287.6 | ||
Prepaid lease and franchise costs | 3.3 | 4.5 | ||
Other prepaid expenses | 15.8 | 19.2 | ||
Assets held for sale | 31.8 | 34.6 | ||
Other current assets | 14.4 | 15.7 | ||
Total current assets | 359.4 | 397.6 | ||
Property and equipment, net | 657.1 | 657.8 | ||
Goodwill | 2,006.4 | 2,006.4 | ||
Intangible assets | 682.9 | 695.4 | ||
Operating lease assets | 1,577.6 | 1,591.9 | ||
Assets held for sale | 211.1 | 214.3 | ||
Other assets | 19.5 | 19.5 | ||
Total assets | $ 5,514.0 | $ 5,582.9 | ||
Liabilities: | ||||
Current liabilities: | ||||
Accounts payable | $ 54.4 | $ 55.5 | ||
Accrued compensation | 32.2 | 41.4 | ||
Accrued interest | 23.2 | 34.2 | ||
Accrued lease and franchise costs | 59.2 | 80.0 | ||
Other accrued expenses | 56.2 | 56.2 | ||
Deferred revenues | 52.4 | 37.7 | ||
Short-term debt | 120.0 | 65.0 | ||
Short-term operating lease liabilities | 185.6 | 180.9 | ||
Liabilities held for sale | 21.4 | 24.1 | ||
Other current liabilities | 17.6 | 18.0 | ||
Total current liabilities | 622.2 | 593.0 | ||
Long-term debt, net | 2,677.8 | 2,676.5 | ||
Asset retirement obligation | 33.3 | 33.0 | ||
Operating lease liabilities | 1,400.8 | 1,417.4 | ||
Liabilities held for sale | 90.8 | 90.9 | ||
Other liabilities | 41.9 | 42.0 | ||
Total liabilities | 4,866.8 | 4,852.8 | ||
Commitments and contingencies | ||||
Preferred stock (2024 - 50.0 shares authorized, and 0.1 shares of Series A Preferred Stock | 119.8 | 119.8 | ||
Stockholders' equity: | ||||
Common stock (2024 - 450.0 shares authorized, and 165.9 shares issued and | 1.7 | 1.7 | ||
Additional paid-in capital | 2,431.9 | 2,432.2 | ||
Distribution in excess of earnings | (1,900.5) | (1,821.1) | ||
Accumulated other comprehensive loss | (8.9) | (5.8) | ||
Total stockholders' equity | 524.2 | 607.0 | ||
Non-controlling interests | 3.2 | 3.3 | ||
Total equity | 647.2 | 730.1 | ||
Total liabilities and equity | $ 5,514.0 | $ 5,582.9 |
Exhibit 3: CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
Three Months Ended | ||||
March 31, | ||||
(in millions) | 2024 | 2023 | ||
Operating activities: | ||||
Net loss attributable to OUTFRONT Media Inc. | $ (27.2) | $ (28.9) | ||
Adjustments to reconcile net loss to net cash flow provided by operating activities: | ||||
Net income attributable to non-controlling interests | 0.1 | 0.2 | ||
Depreciation and amortization | 36.1 | 41.9 | ||
Deferred tax provision | 1.0 | 1.0 | ||
Stock-based compensation | 7.2 | 7.8 | ||
Provision for doubtful accounts | 1.1 | 1.4 | ||
Accretion expense | 0.8 | 0.8 | ||
Net loss on dispositions | 0.1 | 0.3 | ||
Equity in earnings of investee companies, net of tax | 0.2 | 0.8 | ||
Distributions from investee companies | 0.7 | 0.8 | ||
Amortization of deferred financing costs and debt discount and premium | 1.6 | 1.6 | ||
Change in assets and liabilities, net of investing and financing activities: | ||||
Decrease in receivables | 34.9 | 54.0 | ||
Increase in prepaid MTA equipment deployment costs | — | (18.8) | ||
Increase in prepaid expenses and other current assets | (2.0) | (1.0) | ||
Decrease in accounts payable and accrued expenses | (41.6) | (70.9) | ||
Increase in operating lease assets and liabilities | 3.6 | 4.2 | ||
Increase in deferred revenues | 14.7 | 19.5 | ||
Increase (decrease) in income taxes | 1.2 | (4.2) | ||
Decrease in assets and liabilities held for sale, net | (0.5) | — | ||
Other, net | (1.4) | (1.1) | ||
Net cash flow provided by operating activities | 30.6 | 9.4 | ||
Investing activities: | ||||
Capital expenditures | (18.4) | (22.6) | ||
Acquisitions | (6.0) | (5.1) | ||
MTA franchise rights | — | (0.1) | ||
Net proceeds from dispositions | 5.4 | 0.1 | ||
Net cash flow used for investing activities | (19.0) | (27.7) | ||
Financing activities: | ||||
Proceeds from borrowings under short-term debt facilities | 65.0 | 85.0 | ||
Repayments of borrowings under short-term debt facilities | (10.0) | — | ||
Payments of deferred financing costs | (0.1) | — | ||
Taxes withheld for stock-based compensation | (7.4) | (12.3) | ||
Dividends | (52.4) | (52.0) | ||
Net cash flow provided by (used for) financing activities | (4.9) | 20.7 | ||
Exhibit 3: CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) | ||||
Three Months Ended | ||||
March 31, | ||||
(in millions) | 2024 | 2023 | ||
Effect of exchange rate changes on cash and cash equivalents | (0.3) | — | ||
Net increase in cash and cash equivalents | 6.4 | 2.4 | ||
Cash and cash equivalents at beginning of period | 36.0 | 40.4 | ||
Cash and cash equivalents at end of period | $ 42.4 | $ 42.8 | ||
Supplemental disclosure of cash flow information: | ||||
Cash paid for income taxes | $ 0.1 | $ 3.6 | ||
Cash paid for interest | 51.2 | 49.2 | ||
Non-cash investing and financing activities: | ||||
Accrued purchases of property and equipment | 8.0 | 5.9 | ||
Accrued MTA franchise rights | — | 3.0 | ||
Taxes withheld for stock-based compensation | 0.1 | — |
Exhibit 4: SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION | |||||||||
Three Months Ended March 31, 2024 | |||||||||
(in millions, except percentages) | Other | Corporate | Consolidated | ||||||
Revenues: | |||||||||
Billboard | $ 313.9 | $ 14.9 | $ — | $ 328.8 | |||||
Transit and other | 75.7 | 4.0 | — | 79.7 | |||||
Total revenues | $ 389.6 | $ 18.9 | $ — | $ 408.5 | |||||
Organic revenues(a): | |||||||||
Billboard | $ 313.9 | $ 14.9 | $ — | $ 328.8 | |||||
Transit and other | 75.7 | 4.0 | — | 79.7 | |||||
Total organic revenues(a) | $ 389.6 | $ 18.9 | $ — | $ 408.5 | |||||
Non-organic revenues(b): | |||||||||
Billboard | $ — | $ — | $ — | $ — | |||||
Transit and other | — | — | — | — | |||||
Total non-organic revenues(b) | $ — | $ — | $ — | $ — | |||||
Operating income (loss) | $ 36.5 | $ 0.9 | $ (23.4) | $ 14.0 | |||||
Net loss on dispositions | 0.1 | — | — | 0.1 | |||||
Impairment charges | 9.1 | — | — | 9.1 | |||||
Depreciation and amortization | 36.1 | — | — | 36.1 | |||||
Stock-based compensation | — | — | 7.2 | 7.2 | |||||
Adjusted OIBDA | $ 81.8 | $ 0.9 | $ (16.2) | $ 66.5 | |||||
Adjusted OIBDA margin | 21.0 % | 4.8 % | * | 16.3 % | |||||
Capital expenditures | $ 17.6 | $ 0.8 | $ — | $ 18.4 | |||||
Three Months Ended March 31, 2023 | |||||||||
(in millions, except percentages) | Other | Corporate | Consolidated | ||||||
Revenues: | |||||||||
Billboard | $ 306.1 | $ 14.5 | $ — | $ 320.6 | |||||
Transit and other | 70.3 | 4.9 | — | 75.2 | |||||
Total revenues | $ 376.4 | $ 19.4 | $ — | $ 395.8 | |||||
Organic revenues(a) | |||||||||
Billboard | $ 306.1 | $ 14.6 | $ — | $ 320.7 | |||||
Transit and other | 70.3 | 4.9 | — | 75.2 | |||||
Total organic revenues(a) | $ 376.4 | $ 19.5 | $ — | $ 395.9 | |||||
Non-organic revenues(b): | |||||||||
Billboard | $ — | $ (0.1) | $ — | $ (0.1) | |||||
Transit and other | — | — | — | — | |||||
Total non-organic revenues(b) | $ — | $ (0.1) | $ — | $ (0.1) | |||||
Operating income (loss) | $ 33.3 | $ (2.3) | $ (20.8) | $ 10.2 | |||||
Net loss on dispositions | 0.3 | — | — | 0.3 | |||||
Depreciation and amortization | 38.5 | 3.4 | — | 41.9 | |||||
Stock-based compensation | — | — | 7.8 | 7.8 | |||||
Adjusted OIBDA | $ 72.1 | $ 1.1 | $ (13.0) | $ 60.2 | |||||
Adjusted OIBDA margin | 19.2 % | 5.7 % | * | 15.2 % | |||||
Capital expenditures | $ 22.0 | $ 0.6 | $ — | $ 22.6 | |||||
Exhibit 5: SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES | ||||
Three Months Ended | ||||
March 31, | ||||
(in millions) | 2024 | 2023 | ||
Net loss attributable to OUTFRONT Media Inc. | $ (27.2) | $ (28.9) | ||
Depreciation of billboard advertising structures | 13.6 | 15.1 | ||
Amortization of real estate-related intangible assets | 16.1 | 18.3 | ||
Amortization of direct lease acquisition costs | 13.1 | 12.4 | ||
Net loss on disposition of real estate assets | 0.1 | 0.3 | ||
Impairment charges(c) | 6.7 | — | ||
Adjustment related to non-controlling interests | (0.1) | (0.1) | ||
FFO attributable to OUTFRONT Media Inc. | $ 22.3 | $ 17.1 | ||
Non-cash portion of income taxes | (0.6) | (3.2) | ||
Cash paid for direct lease acquisition costs | (15.3) | (16.5) | ||
Maintenance capital expenditures | (4.7) | (8.8) | ||
Other depreciation | 4.9 | 5.0 | ||
Other amortization | 1.5 | 3.5 | ||
Impairment charges on non-real estate assets(c) | 2.4 | — | ||
Stock-based compensation | 7.2 | 7.8 | ||
Non-cash effect of straight-line rent | 3.1 | 1.5 | ||
Accretion expense | 0.8 | 0.8 | ||
Amortization of deferred financing costs | 1.6 | 1.6 | ||
AFFO attributable to OUTFRONT Media Inc. | $ 23.2 | $ 8.8 |
Exhibit 6: SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES | ||||
Three Months Ended | ||||
March 31, | ||||
(in millions) | 2024 | 2023 | ||
Adjusted OIBDA | $ 66.5 | $ 60.2 | ||
Interest expense, net, less amortization of deferred financing costs | (39.8) | (36.1) | ||
Cash paid for income taxes | (0.1) | (3.6) | ||
Direct lease acquisition costs | (2.2) | (4.1) | ||
Maintenance capital expenditures | (4.7) | (8.8) | ||
Equity in earnings of investee companies, net of tax | (0.2) | (0.8) | ||
Non-cash effect of straight-line rent | 3.1 | 1.5 | ||
Accretion expense | 0.8 | 0.8 | ||
Adjustment related to non-controlling interests | (0.2) | (0.3) | ||
AFFO attributable to OUTFRONT Media Inc. | $ 23.2 | $ 8.8 |
Exhibit 7: OPERATING EXPENSES (Unaudited) See Notes on Page 13 | ||||||
Three Months Ended | ||||||
March 31, | % | |||||
(in millions, except percentages) | 2024 | 2023 | Change | |||
Operating expenses: | ||||||
Billboard property lease(d) | $ 121.7 | $ 121.2 | 0.4 % | |||
Transit franchise | 59.0 | 59.6 | (1.0) | |||
Posting, maintenance and other | 58.0 | 54.7 | 6.0 | |||
Total operating expenses | $ 238.7 | $ 235.5 | 1.4 |
Exhibit 8: EXPENSES BY SEGMENT (Unaudited) See Notes on Page 13 | ||||||
Three Months Ended | ||||||
March 31, | % | |||||
(in millions, except percentages) | 2024 | 2023 | Change | |||
Operating expenses(d) | $ 226.2 | $ 222.6 | 1.6 % | |||
SG&A expenses | 81.6 | 81.7 | (0.1) | |||
Other: | ||||||
Operating expenses | 12.5 | 12.9 | (3.1) | |||
SG&A expenses | 5.5 | 5.4 | 1.9 |
NOTES TO EXHIBITS | |
PRIOR PERIOD PRESENTATION CONFORMS TO CURRENT REPORTING CLASSIFICATIONS. | |
(a) | Organic revenues exclude revenues associated with the impact of foreign currency exchange rates ("non-organic revenues"). |
(b) | In the three months ended March 31, 2023, non-organic revenues reflect the impact of foreign currency exchange rates. |
(c) | Impairment charges recorded in the first quarter of 2024, due to the long-term outlook of our |
(d) | Includes an out-of-period adjustment of |
* | Calculation not meaningful. |
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SOURCE OUTFRONT Media Inc.
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