OUTFRONT Media Reports Fourth Quarter And Full Year 2020 Results
OUTFRONT Media reported significant revenue declines for Q4 and the full year 2020, largely attributed to the COVID-19 pandemic. Total revenues decreased 31.2% to $335.8 million for Q4 and 30.6% to $1,236.3 million for the full year. Operating income dropped to $39.5 million in Q4 from $98.0 million in 2019. The net income was $4.3 million, sharply down from $45.0 million in Q4 2019. Despite these challenges, the company expects a return to positive revenue growth in Q2 2021 as it laps pandemic impacts. It also suspended its quarterly dividend to maintain liquidity.
- Expectation of positive revenue growth in Q2 2021 as pandemic effects lessen.
- Q4 2020 revenues down 31.2% to $335.8 million compared to Q4 2019.
- Full year 2020 revenues decreased 30.6% to $1,236.3 million.
- Operating income for Q4 dropped to $39.5 million from $98.0 million in 2019.
- Net income fell to $4.3 million compared to $45.0 million in Q4 2019.
- Suspended quarterly dividend to preserve financial flexibility.
NEW YORK, Feb. 25, 2021 /PRNewswire/ -- OUTFRONT Media Inc. (NYSE: OUT) today reported results for the quarter and full year ended December 31, 2020.
"Digital billboards returned to growth, helping drive total revenues above our expectations, with good flow-through to cash flow," said Jeremy Male, Chairman and Chief Executive Officer of OUTFRONT Media. "We will return to positive revenue growth in the second quarter as we lap the onset of the pandemic, and look forward to further recovery in our business throughout the year."
Three Months Ended | Twelve Months Ended | |||||||||||
$ in Millions, except per share amounts | 2020 | 2019 | 2020 | 2019 | ||||||||
Revenues | ||||||||||||
Organic Revenues | 335.8 | 472.6 | 1,210.7 | 1,725.3 | ||||||||
Operating Income | 39.5 | 98.0 | 72.5 | 309.1 | ||||||||
Adjusted OIBDA1 | 83.0 | 140.4 | 233.3 | 474.2 | ||||||||
Net Income before allocation to non-controlling interests | 4.8 | 45.5 | (60.2) | 140.6 | ||||||||
Net Income (loss)2 | 4.3 | 45.0 | (61.0) | 140.1 | ||||||||
Earnings (loss) per share2,3,4 | ( | ( | ||||||||||
Funds From Operations (FFO)2 | 43.2 | 83.6 | 82.6 | 295.3 | ||||||||
Adjusted FFO (AFFO)2 | 49.9 | 106.0 | 96.3 | 334.1 | ||||||||
Shares Outstanding4 | 144.5 | 144.6 | 144.3 | 143.2 | ||||||||
Notes: See exhibits for reconciliations of non-GAAP financial measures; 1) Consistent with the current period's presentation, we have reclassified amortization of direct lease acquisition costs to Selling, general and administrative expense from Amortization in 2019 periods, resulting in a corresponding decrease in Adjusted OIBDA; 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) Per share for diluted earnings per share; 4) Diluted weighted average shares outstanding. |
Fourth Quarter 2020 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 of
Corporate
Corporate costs, excluding stock-based compensation and restructuring charges, decreased
Full Year 2020 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 of
Corporate
Corporate costs, excluding stock-based compensation and restructuring charges, decreased
Interest Expense
Net Interest expense in the fourth quarter of 2020 was
Income Taxes
The income tax provision was
Net Income Attributable to OUTFRONT Media Inc.
Net income attributable to OUTFRONT Media Inc. was
FFO & AFFO
FFO attributable to OUTFRONT Media Inc. was
Cash Flow & Capital Expenditures
Net cash flow provided by operating activities of
Dividends
In the year ended December 31, 2020, we paid cash dividends of
Balance Sheet and Liquidity
As of December 31, 2020, 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. The COVID-19 pandemic has (i) delayed our ability to build and deploy certain advertising structures and sites, including digital displays; (ii) reduced or curtailed our customers' advertising expenditures and overall demand for our services through purchase cancellations or otherwise; (iii) increased the volatility of our customers' advertising expenditure patterns from period-to-period through short-notice purchases, purchase deferrals or otherwise; and (iv) extended 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 COVID-19 pandemic on our business and results of operations, we expect our key performance indicators and total revenues to incrementally improve in 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 in 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 and posting, maintenance and other expenses, such as rental expenses, as a percentage of revenues, to decrease in 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 in 2021 as compared to 2020, but be materially higher than pre-COVID-19 pandemic levels, primarily due to our guaranteed minimum annual payment amounts owed to the MTA resuming 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 years ended December 31, 2020 and 2019, are not indicative of the results that may be expected for the fiscal year ending December 31, 2021. In order to preserve financial flexibility, increase liquidity and reduce expenses in light of the current uncertainty in the global economy and our business resulting from the COVID-19 pandemic, we undertook the following actions in 2020, among others: issued and sold
Conference Call
We will host a conference call to discuss the results on February 25, 2021 at 4:30 p.m. Eastern Time. The conference call numbers are 888-204-4368 (U.S. callers) and 856-344-9299 (International callers) and the passcode for both is 9716517. 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 | |
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, a gain on disposition of non-real estate assets, 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 (the "IRS") 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 | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(in millions, except per share amounts) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenues: | ||||||||||||||||
Billboard | $ | 279.3 | $ | 321.1 | $ | 978.6 | $ | 1,189.9 | ||||||||
Transit and other | 56.5 | 167.0 | 257.7 | 592.3 | ||||||||||||
Total revenues | 335.8 | 488.1 | 1,236.3 | 1,782.2 | ||||||||||||
Expenses: | ||||||||||||||||
Operating | 176.2 | 255.9 | 710.8 | 958.6 | ||||||||||||
Selling, general and administrative | 83.1 | 97.7 | 315.1 | 371.7 | ||||||||||||
Restructuring charges | 0.5 | — | 5.8 | 0.3 | ||||||||||||
Net gain on dispositions | (0.4) | (0.8) | (13.7) | (3.8) | ||||||||||||
Depreciation | 21.3 | 22.4 | 84.5 | 87.3 | ||||||||||||
Amortization | 15.6 | 14.9 | 61.3 | 59.0 | ||||||||||||
Total expenses | 296.3 | 390.1 | 1,163.8 | 1,473.1 | ||||||||||||
Operating income | 39.5 | 98.0 | 72.5 | 309.1 | ||||||||||||
Interest expense, net | (33.8) | (34.4) | (131.1) | (134.9) | ||||||||||||
Loss on extinguishment of debt | — | (17.5) | — | (28.5) | ||||||||||||
Other income, net | — | — | 0.1 | 0.1 | ||||||||||||
Income (loss) before provision for income taxes and | 5.7 | 46.1 | (58.5) | 145.8 | ||||||||||||
Provision for income taxes | (0.8) | (2.4) | (1.1) | (10.9) | ||||||||||||
Equity in earnings of investee companies, net of tax | (0.1) | 1.8 | (0.6) | 5.7 | ||||||||||||
Net income (loss) before allocation to non-controlling | 4.8 | 45.5 | (60.2) | 140.6 | ||||||||||||
Net income attributable to non-controlling interests | 0.5 | 0.5 | 0.8 | 0.5 | ||||||||||||
Net income (loss) attributable to OUTFRONT Media Inc. | $ | 4.3 | $ | 45.0 | $ | (61.0) | $ | 140.1 | ||||||||
Net income (loss) attributable to OUTFRONT Media | ||||||||||||||||
Basic | $ | (0.02) | $ | 0.31 | $ | (0.56) | $ | 0.97 | ||||||||
Diluted | $ | (0.02) | $ | 0.31 | $ | (0.56) | $ | 0.97 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 144.5 | 143.6 | 144.3 | 142.5 | ||||||||||||
Diluted | 144.5 | 144.6 | 144.3 | 143.2 | ||||||||||||
Exhibit 2: CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||||
As of | ||||||||
(in millions) | December 31, | December 31, | ||||||
Assets: | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 710.4 | $ | 59.1 | ||||
Restricted cash | 1.6 | 1.8 | ||||||
Receivables, less allowances of | 209.2 | 290.0 | ||||||
Prepaid lease and franchise costs | 5.4 | 8.6 | ||||||
Prepaid MTA equipment deployment costs | — | 55.4 | ||||||
Other prepaid expenses | 14.4 | 15.8 | ||||||
Other current assets | 33.7 | 5.1 | ||||||
Total current assets | 974.7 | 435.8 | ||||||
Property and equipment, net | 634.2 | 666.2 | ||||||
Goodwill | 2,077.8 | 2,083.1 | ||||||
Intangible assets | 547.5 | 550.9 | ||||||
Operating lease assets | 1,421.3 | 1,457.0 | ||||||
Prepaid MTA equipment deployment costs | 204.6 | 116.1 | ||||||
Other assets | 36.8 | 73.2 | ||||||
Total assets | $ | 5,896.9 | $ | 5,382.3 | ||||
Liabilities: | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 64.9 | $ | 67.9 | ||||
Accrued compensation | 35.0 | 56.1 | ||||||
Accrued interest | 24.5 | 26.4 | ||||||
Accrued lease and franchise costs | 65.8 | 55.3 | ||||||
Other accrued expenses | 38.0 | 34.2 | ||||||
Deferred revenues | 29.5 | 29.0 | ||||||
Short-term operating lease liabilities | 176.5 | 168.3 | ||||||
Short-term debt | 80.0 | 195.0 | ||||||
Other current liabilities | 20.7 | 17.8 | ||||||
Total current liabilities | 534.9 | 650.0 | ||||||
Long-term debt, net | 2,620.8 | 2,222.1 | ||||||
Deferred income tax liabilities, net | 14.6 | 18.0 | ||||||
Asset retirement obligation | 35.9 | 35.1 | ||||||
Operating lease liabilities | 1,252.0 | 1,285.1 | ||||||
Other liabilities | 55.0 | 45.6 | ||||||
Total liabilities | 4,513.2 | 4,255.9 | ||||||
Preferred stock (2020 - 50.0 shares authorized, and 0.4 shares of Series A Preferred Stock | 383.4 | — | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Common stock 2020 - 450.0 shares authorized, and 144.5 shares issued and outstanding; | 1.4 | 1.4 | ||||||
Additional paid-in capital | 2,090.8 | 2,074.7 | ||||||
Distribution in excess of earnings | (1,100.4) | (964.6) | ||||||
Accumulated other comprehensive loss | (18.0) | (17.7) | ||||||
Total stockholders' equity | 973.8 | 1,093.8 | ||||||
Non-controlling interests | 26.5 | 32.6 | ||||||
Total equity | 1,383.7 | 1,126.4 | ||||||
Total liabilities and equity | $ | 5,896.9 | $ | 5,382.3 | ||||
Exhibit 3: CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
Year Ended | ||||||||
(in millions) | 2020 | 2019 | ||||||
Operating activities: | ||||||||
Net income (loss) attributable to OUTFRONT Media Inc. | $ | (61.0) | $ | 140.1 | ||||
Adjustments to reconcile net income to net cash flow provided by operating activities: | ||||||||
Net income attributable to non-controlling interests | 0.8 | 0.5 | ||||||
Depreciation and amortization | 145.8 | 146.3 | ||||||
Deferred tax (benefit) provision | (2.8) | 0.2 | ||||||
Stock-based compensation | 23.8 | 22.3 | ||||||
Provision for doubtful accounts | 20.1 | 5.3 | ||||||
Accretion expense | 2.6 | 2.5 | ||||||
Net gain on dispositions | (13.7) | (3.8) | ||||||
Loss on extinguishment of debt | — | 28.5 | ||||||
Equity in earnings of investee companies, net of tax | 0.6 | (5.7) | ||||||
Distributions from investee companies | 2.2 | 4.9 | ||||||
Amortization of deferred financing costs and debt discount and premium | 6.6 | 7.9 | ||||||
Change in assets and liabilities, net of investing and financing activities: | ||||||||
(Increase) decrease in receivables | 60.8 | (29.5) | ||||||
Increase in prepaid MTA equipment deployment costs | (33.1) | (92.0) | ||||||
(Increase) decrease in prepaid expenses and other current assets | (25.5) | 3.5 | ||||||
Increase (decrease) in accounts payable and accrued expenses | (12.7) | 37.4 | ||||||
Increase in operating lease assets and liabilities | 10.7 | 6.7 | ||||||
Increase (decrease) in deferred revenues | 0.9 | (0.8) | ||||||
Increase in income taxes | 0.5 | 0.2 | ||||||
Other, net | 4.0 | 2.4 | ||||||
Net cash flow provided by operating activities | 130.6 | 276.9 | ||||||
Investing activities: | ||||||||
Capital expenditures | (53.5) | (89.9) | ||||||
Acquisitions | (18.1) | (69.7) | ||||||
MTA franchise rights | (23.6) | (24.0) | ||||||
Proceeds from dispositions | 40.0 | 5.8 | ||||||
Return of investment in investee companies | 2.0 | 1.5 | ||||||
Net cash flow used for investing activities | (53.2) | (176.3) | ||||||
Financing activities: | ||||||||
Proceeds from long-term debt borrowings | 895.0 | 1,270.0 | ||||||
Repayments of long-term debt borrowings | (495.0) | (1,191.5) | ||||||
Proceeds from borrowings under short-term debt facilities | 15.0 | 505.0 | ||||||
Repayments of borrowings under short-term debt facilities | (130.0) | (470.0) | ||||||
Payments of deferred financing costs | (7.7) | (22.1) | ||||||
Payments of debt extinguishment charges | — | (20.6) | ||||||
Proceeds from Series A Preferred Stock issuances | 383.4 | — | ||||||
Proceeds from shares issued under the ATM Program | — | 50.9 | ||||||
Taxes withheld for stock-based compensation | (12.6) | (7.9) | ||||||
Dividends | (75.1) | (208.1) | ||||||
Net cash flow provided by (used for) financing activities | 573.0 | (94.3) | ||||||
Exhibit 3: CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) | ||||||||
Year Ended | ||||||||
December 31, | ||||||||
(in millions) | 2020 | 2019 | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0.7 | 0.5 | ||||||
Net increase in cash, cash equivalents and restricted cash | 651.1 | 6.8 | ||||||
Cash, cash equivalents and restricted cash at beginning of year | 60.9 | 54.1 | ||||||
Cash, cash equivalents and restricted cash at end of year | $ | 712.0 | $ | 60.9 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for income taxes | $ | 3.4 | $ | 10.5 | ||||
Cash paid for interest | 127.6 | 121.5 | ||||||
Non-cash investing and financing activities: | ||||||||
Accrued purchases of property and equipment | $ | 3.3 | $ | 7.7 | ||||
Accrued MTA franchise rights | 6.5 | 4.0 | ||||||
Non-cash effect of straight-line rent | 11.2 | 6.9 | ||||||
Taxes withheld for stock-based compensation | 0.2 | — | ||||||
Exhibit 4: SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION | |||||||||||||||||
Three Months Ended December 31, 2020 | |||||||||||||||||
(in millions, except percentages) | U.S. Media | Other | Corporate | Consolidated | |||||||||||||
Revenues: | |||||||||||||||||
Billboard | $ | 262.6 | $ | 16.7 | $ | — | $ | 279.3 | |||||||||
Transit and other | 52.3 | 4.2 | — | 56.5 | |||||||||||||
Total revenues | $ | 314.9 | $ | 20.9 | $ | — | $ | 335.8 | |||||||||
Organic revenues(a) | |||||||||||||||||
Billboard | $ | 262.6 | $ | 16.7 | $ | — | $ | 279.3 | |||||||||
Transit and other | 52.3 | 4.2 | — | 56.5 | |||||||||||||
Total organic revenues(a) | $ | 314.9 | $ | 20.9 | $ | — | $ | 335.8 | |||||||||
Non-organic revenues: | |||||||||||||||||
Billboard | $ | — | $ | — | $ | — | $ | — | |||||||||
Transit and other | — | — | — | — | |||||||||||||
Total non-organic revenues | $ | — | $ | — | $ | — | $ | — | |||||||||
Operating income (loss) | $ | 57.4 | $ | 0.9 | $ | (18.8) | $ | 39.5 | |||||||||
Restructuring charges | 0.5 | — | — | 0.5 | |||||||||||||
Net gain on dispositions | (0.2) | (0.2) | — | (0.4) | |||||||||||||
Depreciation and amortization | 33.9 | 3.0 | — | 36.9 | |||||||||||||
Stock-based compensation | — | — | 6.5 | 6.5 | |||||||||||||
Adjusted OIBDA | $ | 91.6 | $ | 3.7 | $ | (12.3) | $ | 83.0 | |||||||||
Adjusted OIBDA margin | 29.1 | % | 17.7 | % | * | 24.7 | % | ||||||||||
Capital expenditures | $ | 10.5 | $ | 1.0 | $ | — | $ | 11.5 | |||||||||
Three Months Ended December 31, 2019 | |||||||||||||||||
(in millions, except percentages) | U.S. Media | Other | Corporate | Consolidated | |||||||||||||
Revenues: | |||||||||||||||||
Billboard | $ | 300.8 | $ | 20.3 | $ | — | $ | 321.1 | |||||||||
Transit and other | 147.2 | 19.8 | — | 167.0 | |||||||||||||
Total revenues | $ | 448.0 | $ | 40.1 | $ | — | $ | 488.1 | |||||||||
Organic revenues(a) | |||||||||||||||||
Billboard | $ | 300.8 | $ | 20.5 | $ | — | $ | 321.3 | |||||||||
Transit and other | 147.2 | 4.1 | — | 151.3 | |||||||||||||
Total organic revenues(a) | $ | 448.0 | $ | 24.6 | $ | — | $ | 472.6 | |||||||||
Non-organic revenues(b): | |||||||||||||||||
Billboard | $ | — | $ | (0.2) | $ | — | $ | (0.2) | |||||||||
Transit and other | — | 15.7 | — | 15.7 | |||||||||||||
Total non-organic revenues(b) | $ | — | $ | 15.5 | $ | — | $ | 15.5 | |||||||||
Operating income (loss) | $ | 115.8 | $ | 2.8 | $ | (20.6) | $ | 98.0 | |||||||||
Net gain on dispositions | (0.7) | (0.1) | — | (0.8) | |||||||||||||
Depreciation and amortization(g) | 33.2 | 4.1 | — | 37.3 | |||||||||||||
Stock-based compensation | — | — | 5.9 | 5.9 | |||||||||||||
Adjusted OIBDA(g) | $ | 148.3 | $ | 6.8 | $ | (14.7) | $ | 140.4 | |||||||||
Adjusted OIBDA margin | 33.1 | % | 17.0 | % | * | 28.8 | % | ||||||||||
Capital expenditures | $ | 23.3 | $ | 1.2 | $ | — | $ | 24.5 | |||||||||
Year Ended December 31, 2020 | |||||||||||||||||
(in millions, except percentages) | U.S. Media | Other | Corporate | Consolidated | |||||||||||||
Revenues: | |||||||||||||||||
Billboard | $ | 926.5 | $ | 52.1 | $ | — | $ | 978.6 | |||||||||
Transit and other | 222.4 | 35.3 | — | 257.7 | |||||||||||||
Total revenues | $ | 1,148.9 | $ | 87.4 | $ | — | $ | 1,236.3 | |||||||||
Organic revenues(a) | |||||||||||||||||
Billboard | $ | 926.5 | $ | 52.1 | $ | — | $ | 978.6 | |||||||||
Transit and other | 222.4 | 9.7 | — | 232.1 | |||||||||||||
Total organic revenues(a) | $ | 1,148.9 | $ | 61.8 | $ | — | $ | 1,210.7 | |||||||||
Non-organic revenues(b): | |||||||||||||||||
Billboard | $ | — | $ | — | $ | — | $ | — | |||||||||
Transit and other | — | 25.6 | — | 25.6 | |||||||||||||
Total non-organic revenues(b) | $ | — | $ | 25.6 | $ | — | $ | 25.6 | |||||||||
Operating income (loss) | $ | 132.8 | $ | (0.4) | $ | (59.9) | $ | 72.5 | |||||||||
Restructuring charges | 3.9 | 0.9 | 1.0 | 5.8 | |||||||||||||
Net gain on dispositions | (1.4) | (12.3) | — | (13.7) | |||||||||||||
Depreciation and amortization | 133.6 | 12.2 | — | 145.8 | |||||||||||||
Stock-based compensation | — | — | 22.9 | 22.9 | |||||||||||||
Adjusted OIBDA | $ | 268.9 | $ | 0.4 | $ | (36.0) | $ | 233.3 | |||||||||
Adjusted OIBDA margin | 23.4 | % | 0.5 | % | * | 18.9 | % | ||||||||||
Capital expenditures | $ | 50.8 | $ | 2.7 | $ | — | $ | 53.5 | |||||||||
Year Ended December 31, 2019 | |||||||||||||||||
(in millions, except percentages) | U.S. Media | Other | Corporate | Consolidated | |||||||||||||
Revenues: | |||||||||||||||||
Billboard | $ | 1,114.9 | $ | 75.0 | $ | — | $ | 1,189.9 | |||||||||
Transit and other | 513.8 | 78.5 | — | 592.3 | |||||||||||||
Total revenues | $ | 1,628.7 | $ | 153.5 | $ | — | $ | 1,782.2 | |||||||||
Organic revenues(a) | |||||||||||||||||
Billboard | $ | 1,114.9 | $ | 74.1 | $ | — | $ | 1,189.0 | |||||||||
Transit and other | 513.8 | 22.5 | — | 536.3 | |||||||||||||
Total organic revenues(a) | $ | 1,628.7 | $ | 96.6 | $ | — | $ | 1,725.3 | |||||||||
Non-organic revenues(b): | |||||||||||||||||
Billboard | $ | — | $ | 0.9 | $ | — | $ | 0.9 | |||||||||
Transit and other | — | 56.0 | — | 56.0 | |||||||||||||
Total non-organic revenues(b) | $ | — | $ | 56.9 | $ | — | $ | 56.9 | |||||||||
Operating income (loss) | $ | 376.3 | $ | 1.4 | $ | (68.6) | $ | 309.1 | |||||||||
Restructuring charges | — | — | 0.3 | 0.3 | |||||||||||||
Net (gain) loss on dispositions | (3.9) | 0.1 | — | (3.8) | |||||||||||||
Depreciation and amortization(g) | 129.2 | 17.1 | — | 146.3 | |||||||||||||
Stock-based compensation | — | — | 22.3 | 22.3 | |||||||||||||
Adjusted OIBDA(g) | 501.6 | 18.6 | (46.0) | 474.2 | |||||||||||||
Adjusted OIBDA margin | 30.8 | % | 12.1 | % | * | 26.6 | % | ||||||||||
Capital expenditures | $ | 86.7 | $ | 3.2 | $ | — | $ | 89.9 | |||||||||
Exhibit 5: SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(in millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net income (loss) attributable to OUTFRONT Media Inc. | $ | 4.3 | $ | 45.0 | $ | (61.0) | $ | 140.1 | ||||||||
Depreciation of billboard advertising structures | 15.4 | 16.8 | 61.6 | 66.0 | ||||||||||||
Amortization of real estate-related intangible assets | 12.3 | 11.6 | 48.8 | 45.0 | ||||||||||||
Amortization of direct lease acquisition costs | 11.5 | 11.3 | 38.2 | 48.2 | ||||||||||||
Net gain on disposition of real estate assets | (0.4) | (0.8) | (6.5) | (3.8) | ||||||||||||
Adjustment related to equity-based investments | 0.1 | — | 0.1 | 0.1 | ||||||||||||
Adjustment related to non-controlling interests | (0.1) | (0.3) | (0.3) | (0.3) | ||||||||||||
Income tax effect of adjustments(c) | 0.1 | — | 1.7 | — | ||||||||||||
FFO attributable to OUTFRONT Media Inc. | $ | 43.2 | $ | 83.6 | $ | 82.6 | $ | 295.3 | ||||||||
FFO attributable to OUTFRONT Media Inc. | $ | 43.2 | $ | 83.6 | $ | 82.6 | $ | 295.3 | ||||||||
Non-cash portion of income taxes | 0.5 | (0.2) | (5.9) | 0.4 | ||||||||||||
Cash paid for direct lease acquisition costs | (10.5) | (12.6) | (43.1) | (47.1) | ||||||||||||
Maintenance capital expenditures | (3.8) | (3.1) | (17.8) | (18.1) | ||||||||||||
Restructuring charges - severance(d) | 0.5 | — | 4.9 | 0.3 | ||||||||||||
Other depreciation | 5.9 | 5.6 | 22.9 | 21.3 | ||||||||||||
Other amortization | 3.3 | 3.3 | 12.5 | 14.0 | ||||||||||||
Gain on disposition of non-real estate assets(e) | — | — | (7.2) | — | ||||||||||||
Stock-based compensation(d) | 6.5 | 5.9 | 23.8 | 22.3 | ||||||||||||
Non-cash effect of straight-line rent | 1.6 | 2.5 | 11.2 | 6.9 | ||||||||||||
Accretion expense | 0.7 | 0.6 | 2.6 | 2.5 | ||||||||||||
Amortization of deferred financing costs | 1.8 | 3.0 | 6.6 | 7.9 | ||||||||||||
Loss on extinguishment of debt | — | 17.5 | — | 28.5 | ||||||||||||
Adjustment related to non-controlling interests | — | (0.1) | (0.1) | (0.1) | ||||||||||||
Income tax effect of adjustments(f) | 0.2 | — | 3.3 | — | ||||||||||||
AFFO attributable to OUTFRONT Media Inc. | $ | 49.9 | $ | 106.0 | $ | 96.3 | $ | 334.1 | ||||||||
Exhibit 6: SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(in millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Adjusted OIBDA | $ | 83.0 | $ | 140.4 | $ | 233.3 | $ | 474.2 | ||||||||
Interest expense, net, less amortization of deferred | (32.0) | (31.4) | (124.5) | (127.0) | ||||||||||||
Cash paid for income taxes | (0.3) | (2.6) | (3.4) | (10.5) | ||||||||||||
Direct lease acquisition costs | 1.0 | (1.3) | (4.9) | 1.1 | ||||||||||||
Maintenance capital expenditures | (3.8) | (3.1) | (17.8) | (18.1) | ||||||||||||
Equity in earnings of investee companies, net of tax | (0.1) | 1.8 | (0.6) | 5.7 | ||||||||||||
Adjustment related to equity-based investments | 0.1 | — | 0.1 | 0.1 | ||||||||||||
Non-cash effect of straight-line rent | 1.6 | 2.5 | 11.2 | 6.9 | ||||||||||||
Accretion expense | 0.7 | 0.6 | 2.6 | 2.5 | ||||||||||||
Other income (expense) | — | — | 0.1 | 0.1 | ||||||||||||
Adjustment related to non-controlling interests | (0.6) | (0.9) | (1.2) | (0.9) | ||||||||||||
Income tax effect of adjustments (c)(f) | 0.3 | — | 1.4 | — | ||||||||||||
AFFO attributable to OUTFRONT Media Inc. | $ | 49.9 | $ | 106.0 | $ | 96.3 | $ | 334.1 | ||||||||
Exhibit 7: OPERATING EXPENSES (Unaudited) See Notes on Page 16
| ||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||
(in millions, except | December 31, | % | December 31, | % | ||||||||||||||||||
percentages) | 2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||||
Billboard property lease | $ | 98.6 | $ | 106.9 | (7.8) | % | $ | 390.5 | $ | 409.1 | (4.5) | % | ||||||||||
Transit franchise | 28.2 | 82.4 | (65.8) | 125.8 | 283.9 | (55.7) | ||||||||||||||||
Posting, maintenance and other | 49.4 | 66.6 | (25.8) | 194.5 | 265.6 | (26.8) | ||||||||||||||||
Total operating expenses | $ | 176.2 | $ | 255.9 | (31.1) | $ | 710.8 | $ | 958.6 | (25.9) | ||||||||||||
Exhibit 8: EXPENSES BY SEGMENT (Unaudited) See Notes on Page 16
| ||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||
(in millions, except | December 31, | % | December 31, | % | ||||||||||||||||||
percentages) | 2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||
U.S. Media: | ||||||||||||||||||||||
Operating expenses | $ | 163.8 | $ | 231.9 | (29.4) | % | $ | 647.4 | $ | 860.7 | (24.8) | % | ||||||||||
SG&A expenses(g) | 59.5 | 67.8 | (12.2) | 232.6 | 266.4 | (12.7) | ||||||||||||||||
Other: | ||||||||||||||||||||||
Operating expenses | 12.4 | 24.0 | (48.3) | 63.4 | 97.9 | (35.2) | ||||||||||||||||
SG&A expenses(g) | 4.8 | 9.3 | (48.4) | 23.6 | 37.0 | (36.2) | ||||||||||||||||
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 twelve months ended December 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. In the three and twelve months ended December 31, 2019, non-organic revenues exclude the impact of the Sports Disposition and reflect the impact of foreign currency exchange rates. |
(c) | Income tax effect related to Net gain on disposition of real estate assets. |
(d) | In 2020, Restructuring charges relate to severance associated with workforce reductions made in response to the COVID-19 pandemic and includes stock-based compensation expenses of |
(e) | Gain related to the Sports Disposition. |
(f) | Income tax effect related to Restructuring charges - severance and Gain on disposition of non-real estate assets. |
(g) | To conform 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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