Revenues of $408.5 million;
Operating income of $14.0 million;
Net loss attributable to OUTFRONT Media Inc. of $27.2 million;
Adjusted OIBDA of $66.5 million;
AFFO attributable to OUTFRONT Media Inc. of $23.2 million;
Quarterly dividend of $0.30 per share, payable June 28, 2024.
NEW YORK, May 2, 2024 — OUTFRONT Media Inc. (NYSE: OUT) today reported results for the quarter ended March 31, 2024.
“Strong local trends drove solid first quarter financial results, with total revenue up over 3% and Adjusted OIBDA up 10%” said Jeremy Male, Chairman and Chief Executive Officer of OUTFRONT Media. “It was particularly pleasing to see good growth in transit during the period, and encouragingly this trend has continued into the second quarter.”
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Three Months Ended |
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$ in Millions, except per share amounts |
2024 |
2023 |
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Revenues |
$408.5 |
$395.8 |
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Organic revenues |
408.5 |
395.9 |
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Operating income |
14.0 |
10.2 |
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Adjusted OIBDA |
66.5 |
60.2 |
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Net loss before allocation to non-controlling interests |
(27.1) |
(28.7) |
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Net loss1 |
(27.2) |
(28.9) |
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Net loss per share1,2,3 |
($0.18) |
($0.19) |
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Funds From Operations (FFO)1 |
22.3 |
17.1 |
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Adjusted FFO (AFFO)1 |
23.2 |
8.8 |
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Shares outstanding3 |
165.4 |
164.5 |
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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 $408.5 million increased $12.7 million, or 3.2%, for the first quarter of 2024 as compared to the same prior-year period. Organic revenues of $408.5 million increased $12.6 million, or 3.2%.
Reported billboard revenues of $328.8 million increased $8.2 million, or 2.6%, compared to the same prior-year period due primarily to an increase in average revenue per display (yield) and the impact of new and lost billboards in the period, partially offset by lower proceeds from condemnations. Organic billboard revenues of $328.8 million increased $8.1 million, or 2.5%.
Reported transit and other revenues of $79.7 million increased $4.5 million, or 6.0%, compared to the same prior-year period, due primarily to an increase in average revenue per display (yield), partially offset by the impact of new and lost transit franchise contracts. Organic transit and other revenues of $79.7 million increased $4.5 million, or 6.0%.
Total operating expenses of $238.7 million increased $3.2 million, or 1.4%, compared to the same prior-year period, due primarily to higher posting, maintenance, and other expenses, offset slightly by lower transit franchise expense. Selling, General and Administrative expenses (“SG&A”) of $110.5 million increased $2.6 million, or 2.4%, compared to the same prior-year period, primarily due to higher professional fees, higher compensation-related expenses and higher rent related to new offices, partially offset by lower travel and entertainment expenses.
Adjusted OIBDA of $66.5 million increased $6.3 million, or 10.5%, compared to the same prior-year period.
Segment Results
U.S. Media
Reported revenues of $389.6 million increased $13.2 million, or 3.5%, due primarily to higher billboard revenues. Billboard revenues increased 2.5% and Transit and other revenues increased 7.7%. Organic revenues increased $13.2 million, or 3.5%.
Operating expenses increased $3.6 million, or 1.6%, primarily driven by higher billboard revenues, higher guaranteed minimum annual payments to the New York Metropolitan Transportation Authority (the “MTA”), higher compensation-related expenses, higher maintenance and utilities costs, and higher posting and rotation costs, driven by higher business activity. SG&A expenses decreased by $0.1 million, or 0.1%, primarily driven by a lower provision for doubtful accounts and lower professional fees, partially offset by higher compensation-related expenses, higher rent related to new offices and higher insurance costs.
Adjusted OIBDA of $81.8 million increased $9.7 million, or 13.5%, compared to the same prior-year period.
Other
Reported revenues of $18.9 million decreased $0.5 million, or 2.6%, compared to the same prior-year period due primarily to a decline in third-party digital equipment sales, partially offset by an increase in average revenue per display (yield). Canada revenues of $18.6 million increased $1.0 million, or 5.7%. Organic revenues decreased $0.6 million, or 3.1%.
Operating expenses decreased $0.4 million, or 3.1%, due primarily to lower costs related to third-party digital equipment sales, partially offset by higher expenses in Canada. SG&A expenses increased $0.1 million, or 1.9%, driven primarily by higher expenses in Canada.
Adjusted OIBDA of $0.9 million decreased $0.2 million, or 18.2%, compared to the same prior-year period.
Corporate
Corporate costs, excluding stock-based compensation, increased $3.2 million, or 24.6%, to $16.2 million, due primarily to higher professional fees as a result of a management consulting project and the impact of market fluctuations on an unfunded equity-linked retirement plan offered by the Company to certain employees.