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OUTFRONT Media Reports First Quarter 2020 Results

08 May 2020
Revenues of $385.3 million
Operating Income of $33.8 million
Net income attributable to OUTFRONT Media Inc. of $6.1 million, $0.04 per diluted share
Adjusted OIBDA of $86.8 million
AFFO attributable to OUTFRONT Media Inc. of $40.0 million
Suspension of Quarterly Dividend
COVID-19 Pandemic Update

NEW YORK, May 8, 2020 /PRNewswire/ -- OUTFRONT Media Inc. (NYSE: OUT) today reported results for the quarter ended March 31, 2020.

"Positive momentum in 2019 carried into the first quarter of 2020, despite the impact from the COVID-19 pandemic on our business during March," said Jeremy Male, Chairman and Chief Executive Officer of OUTFRONT Media. "As we move forward, our business will see significant impacts from the pandemic ahead of early signs of improvement we are seeing in audience trends.  Recognizing this challenging economic period, we moved quickly to enhance our liquidity, relieve our expense base and cash outflows and, importantly, position ourselves to emerge with financial flexibility as the crisis passes."



Three Months Ended
 March 31,

$ in Millions, except per share amounts


2020


2019

Revenues


$385.3



$371.7


Organic Revenues


385.3



371.5


Operating Income


33.8



36.9


Adjusted OIBDA


86.8



86.8


Net Income before allocation to non-controlling interests


6.3



6.1


Net Income2


6.1



6.1


Earnings per share1,2,3


$0.04



$0.04


Funds From Operations (FFO)2


44.7



42.1


Adjusted FFO (AFFO)2


40.0



39.2


Shares Outstanding3


144.7



141.1



Notes: See exhibits for reconciliations of non-GAAP financial measures; 1) Per share for diluted earnings per share; 2) References to "Net Income", "Earnings per share", "FFO" and "AFFO" mean "Net Income attributable to OUTFRONT Media Inc.", "Earnings attributable to OUTFRONT Media Inc. per share", "FFO attributable to OUTFRONT Media Inc." and "AFFO attributable to OUTFRONT Media Inc.," respectively; 3) Diluted Weighted-Averages Shares Outstanding

First Quarter 2020 Results

Consolidated
Reported revenues of $385.3 million increased $13.6 million, or 3.7%, for the first quarter of 2020 as compared to the same prior-year period.  Organic revenues increased $13.8 million, or 3.7%, reflecting the impact of foreign exchange rates.

Reported billboard revenues of $270.9 million increased $19.9 million, or 7.9%, due to higher average revenue per display (yield) and the growth in revenues from digital billboard conversions.  Organic billboard revenues increased 8.0% due to higher average revenue per display (yield) and the growth in revenues from digital billboard conversions.

Reported and organic transit and other revenues of $114.4 million decreased $6.3 million, or 5.2%, due primarily to a decrease in yield and a decrease in third party digital equipment sales, partially offset by growth in revenues from digital displays.

Total Operating expenses of $224.8 million increased $7.9 million, or 3.6%, due primarily to higher billboard lease expense and higher posting, maintenance and other expenses. Selling, General and Administrative expenses ("SG&A") of $79.5 million increased $6.2 million, or 8.5%, due primarily to a higher provision for doubtful accounts from the COVID-19 pandemic.

Adjusted OIBDA of $86.8 million was flat.

Segment Results

U.S. Media
Reported and organic revenues of $354.7 million increased $16.3 million, or 4.8%, due primarily to an increase in billboard yield and growth in revenues from digital billboard and digital transit displays, partially offset by a decline in static transit revenues. Billboard revenues increased 8.6% due to an increase in yield and growth in revenues from digital billboard conversions.  Transit and other revenues decreased 3.9% due primarily to a decrease in yield as a result of the impact of the COVID-19 pandemic, partially offset by growth in revenues from digital displays.

Operating expenses increased $9.3 million, or 4.8%, due primarily to higher billboard property lease costs and higher posting, maintenance and other costs, partially offset by lower transit franchise expenses due to lower transit revenues. SG&A expenses increased $10.8 million, or 21.4%, due primarily to a higher provision for doubtful accounts and higher compensation and other employee-related costs.

Adjusted OIBDA of $90.8 million decreased $3.8 million, or 4.0%.

Other
Reported revenues of $30.6 million decreased $2.7 million, or 8.1%, due to a decrease in third-party digital equipment sales and a decline in Canada, partially offset by improved performance in our Sports Marketing operating segment. Organic revenues decreased $2.5 million, or 7.6%.

Operating expenses decreased $1.4 million, or 6.0%, driven by lower costs related to third-party digital equipment sales, partially offset by higher costs related to our Sports Marketing operating segment and higher expenses related to Canada. SG&A expenses decreased $0.6 million, or 7.0%, driven primarily by lower expenses related to our Sports Marketing operating segment and Canada.

Adjusted OIBDA of $0.5 million decreased $0.7 million, or 58.3%.

Corporate
Corporate costs, excluding stock-based compensation, decreased $4.5 million, or 50.0%, to $4.5 million, due primarily to lower compensation-related expenses.

Interest Expense
Net Interest expense in the first quarter of 2020 was $29.8 million, including amortization of deferred financing costs of $1.3 million, as compared to $32.7 million in the same prior-year period, including amortization of deferred financing costs of $1.4 million. The decrease was due primarily to lower rates despite a higher outstanding debt balance.  The weighted average cost of debt at March 31, 2020 was 4.0% compared to 5.1% at March 31, 2019.

Income Taxes
The benefit for income taxes was $1.7 million in the first quarter of 2020 compared to $1.0 million in the same prior-year period.  Cash paid for income taxes in the three months ended March 31, 2020 was $0.8 million.

Net Income Attributable to OUTFRONT Media Inc.
Net income attributable to OUTFRONT Media Inc. was $6.1 million in both the first quarter of 2020 and the same prior-year period. Diluted weighted average shares outstanding were 144.7 million for the first quarter of 2020 and 141.1 million for the same prior-year period. Net income attributable to OUTFRONT Media Inc. per common share for diluted earnings per weighted average share was $0.04 for both the first quarter of 2020 and the same prior-year period.

FFO & AFFO
FFO attributable to OUTFRONT Media Inc. was $44.7 million in the first quarter of 2020, an increase of $2.6 million, or 6.2%, from the same prior-year period, driven primarily by higher amortization of direct lease acquisition costs and real estate-related intangibles.  AFFO attributable to OUTFRONT Media Inc. was $40.0 million in the first quarter of 2020, an increase of $0.8 million, or 2.0%, compared to the same prior-year period, due primarily to lower interest expense and higher amortization, partially offset by lower operating income and higher cash paid for direct lease acquisition costs.

Cash Flow & Capital Expenditures
Net cash flow provided by operating activities of $14.9 million for the three months ended March 31, 2020 decreased $26.5 million, or 64.0%, compared to $41.4 million during the same prior-year period, due primarily to a larger decrease in accounts payable and accrued expenses, and a smaller decrease in accounts receivable.  Total capital expenditures increased $0.1 million, or 0.6%, to $18.2 million for the three months ended March 31, 2020, compared to the same prior-year period.

Dividends
In the three months ended March 31, 2020, we paid cash dividends of $55.6 million. In order to preserve financial flexibility and liquidity in light of the current uncertainty in the global economy resulting from the COVID-19 pandemic, our board of directors has decided to suspend our quarterly dividend on our common stock but expects to meet or exceed our minimum annual 2020 REIT distribution requirements.

Balance Sheet and Liquidity
As of March 31, 2020, our liquidity position included unrestricted cash of $487.8 million and $3.5 million of availability under our $500.0 million revolving credit facility, net of $1.5 million of issued letters of credit against the letter of credit facility sublimit under the revolving credit facility.  During the three months ended March 31, 2020, no shares of our common stock were sold under our at-the-market equity offering program, of which $232.5 million remains available.  Total indebtedness as of March 31, 2020 was $3.0 billion, excluding $26.1 million of debt issuance costs, and includes a $600.0 million term loan, $1.7 billion of senior unsecured notes, $120.0 million of borrowings under our accounts receivable securitization facility, $90.0 million of borrowings under our structured repurchase facility, and $495.0 million of borrowings under our revolving credit facility.

Subsequent Event
On April 20, 2020, we issued and sold $400.0 million in newly issued convertible, perpetual preferred stock in a private placement, which is convertible into shares of our common stock at a conversion price of $16.00 per share.  The convertible preferred stock carries a 7.0% annual dividend, which will be payable at our option in cash or in-kind, subject to certain exceptions and conditions.  On an as-converted basis, the convertible preferred stock will represent approximately 14.8% of our outstanding shares of common stock.

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) interrupted our ability to build and deploy 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 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 2020. 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 be materially lower in 2020 than historical levels, particularly in our U.S. Media segment and with respect to our transit and other business.  Additionally, we expect transit franchise expenses, billboard property lease expenses and posting, maintenance and other expenses, such as rental expenses and minimum annual guarantee payments, to materially increase as a percentage of revenues more than historical levels, as revenues decline in 2020.  We expect the impacts described above to be greater in the second quarter of 2020 than in the third and fourth quarters of 2020.  Accordingly, results for the three months ended March 31, 2020, are not indicative of the results that may be expected for the fiscal year ending December 31, 2020. In order to preserve financial flexibility and increase liquidity in light of the current uncertainty in the global economy and our business resulting from the COVID-19 pandemic, we undertook the following actions, among others: borrowed nearly all of the remaining available amount under the revolving credit facility and amended the credit agreement governing the revolving credit facility to modify the calculation of our financial maintenance covenant ratio, completed the private placement described above, and reduced or deferred capital expenditures and expenses through cost-savings initiatives. Given the 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, 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 8, 2020 at 8:30 a.m. Eastern Time. The conference call numbers are 800-263-0877 (U.S. callers) and 856-344-9283 (International callers) and the passcode for both is 7675011.  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.

Contact:



Investors:


Media:

Gregory Lundberg


Carly Zipp

Senior Vice President, Investor Relations


Director of Communications

(212) 297-6441


(212) 297-6479

greg.lundberg@OUTFRONTmedia.com


carly.zipp@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 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 "Fund From Operations, or FFO" and "Adjusted FFO, or 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, 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 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: the severity and duration of the novel coronavirus (COVID-19) and any other pandemics, and the impact on our business, financial condition and results of operations; declines in advertising and general economic conditions, including declines caused by the COVID-19 pandemic; competition; government regulation; our ability to implement our digital display platform and deploy digital advertising displays to our transit franchise partners, including the impact of the COVID-19 pandemic; taxes, fees and registration requirements; our ability to obtain and renew key municipal contracts on favorable terms; decreased government compensation for the removal of lawful billboards; content-based restrictions on outdoor advertising; environmental, health and safety laws and regulations; 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; the ability of our board of directors to cause us to issue additional shares of stock without 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 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; 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; 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 100% prohibited transaction tax; establishing operating partnerships as part of our REIT structure; and other factors described in our filings with the Securities and Exchange Commission (the "SEC"), including but not limited to the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 26, 2020. All forward-looking statements in this document apply as of the date of this document or as of the date they were made and, except as required by applicable law, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors of new information, data or methods, future events or other changes.

 

EXHIBITS


Exhibit 1:  CONSOLIDATED STATEMENTS OF OPERATIONS 
(Unaudited)
  See Notes on Page 12




Three Months Ended



March 31,

(in millions, except per share amounts)


2020


2019

Revenues:





Billboard


$

270.9



$

251.0


Transit and other


114.4



120.7


Total revenues


385.3



371.7


Expenses:





Operating


224.8



216.9


Selling, general and administrative


79.5



73.3


Restructuring charges




0.3


Net gain on dispositions


(0.1)



(1.5)


Depreciation


21.0



21.1


Amortization


26.3



24.7


Total expenses


351.5



334.8


Operating income


33.8



36.9


Interest expense, net


(29.8)



(32.7)


Other income, net


0.2



0.1


Income before benefit for income taxes and equity in earnings of investee companies


4.2



4.3


Benefit for income taxes


1.7



1.0


Equity in earnings of investee companies, net of tax


0.4



0.8


Net income before allocation to non-controlling interests


6.3



6.1


Net income attributable to non-controlling interests


0.2




Net income attributable to OUTFRONT Media Inc.


$

6.1



$

6.1







Net income per common share:





Basic


$

0.04



$

0.04


Diluted


$

0.04



$

0.04







Weighted average shares outstanding:





Basic


143.9



140.7


Diluted


144.7



141.1


 

 

Exhibit 2:  CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 
(Unaudited)
See Notes on Page 12




As of

(in millions)


March 31,
 2020


December 31,
 2019

Assets:





Current assets:





Cash and cash equivalents


$

487.8



$

59.1


Restricted cash


1.8



1.8


Receivables, less allowance ($19.9 in 2020 and $12.1 in 2019)


260.8



290.0


Prepaid lease and franchise costs


8.5



8.6


Prepaid MTA equipment deployment costs


0.9



55.4


Other prepaid expenses


15.3



15.8


Other current assets


7.6



5.1


Total current assets


782.7



435.8


Property and equipment, net


665.8



666.2


Goodwill


2,081.3



2,083.1


Intangible assets


562.7



550.9


Operating lease assets


1,470.9



1,457.0


Prepaid MTA equipment deployment costs


188.8



116.1


Other assets


52.1



73.2


Total assets


$

5,804.3



$

5,382.3







Liabilities:





Current liabilities:





Accounts payable


$

70.8



$

67.9


Accrued compensation


25.5



56.1


Accrued interest


17.7



26.4


Accrued lease and franchise costs


49.2



55.3


Other accrued expenses


33.2



34.2


Deferred revenues


40.0



29.0


Short-term debt


210.0



195.0


Short-term operating lease liabilities


180.8



168.3


Other current liabilities


15.4



17.8


Total current liabilities


642.6



650.0


Long-term debt, net


2,718.0



2,222.1


Deferred income tax liabilities, net


15.5



18.0


Asset retirement obligation


34.8



35.1


Operating lease liabilities


1,287.4



1,285.1


Other liabilities


49.0



45.6


Total liabilities


4,747.3



4,255.9







Commitments and contingencies










Stockholders' equity:





Common stock (2020 - 450.0 shares authorized, and 144.4 shares issued





 and outstanding; 2019 - 450.0 shares authorized, and 143.6 issued and outstanding)


1.4



1.4


Additional paid-in capital


2,072.8



2,074.7


Distribution in excess of earnings


(1,013.8)



(964.6)


Accumulated other comprehensive loss


(31.8)



(17.7)


Total stockholders' equity


1,028.6



1,093.8


Non-controlling interests


28.4



32.6


Total equity


1,057.0



1,126.4


Total liabilities and equity


$

5,804.3



$

5,382.3



 

 

Exhibit 3:  CONSOLIDATED STATEMENTS OF CASH FLOWS 
(Unaudited)
 See Notes on Page 12




Three Months Ended



March 31,

(in millions)


2020


2019

Operating activities:





Net income attributable to OUTFRONT Media Inc.


$

6.1



$

6.1


Adjustments to reconcile net income to net cash flow provided by operating activities:





Net income attributable to non-controlling interests


0.2




Depreciation and amortization


47.3



45.8


Deferred tax benefit


(1.8)



(0.1)


Stock-based compensation


5.8



5.3


Provision for doubtful accounts


8.1



1.0


Accretion expense


0.6



0.6


Net gain on dispositions


(0.1)



(1.5)


Equity in earnings of investee companies, net of tax


(0.4)



(0.8)


Distributions from investee companies


1.2



0.7


Amortization of deferred financing costs and debt discount and premium


1.3



1.4


Cash paid for direct lease acquisition costs


(14.9)



(14.0)


Change in assets and liabilities, net of investing and financing activities:





Decrease in receivables


19.7



35.1


Increase in prepaid MTA equipment deployment costs


(18.2)



(22.7)


Increase in prepaid expenses and other current assets


(2.8)



(3.2)


Decrease in accounts payable and accrued expenses


(42.4)



(24.3)


Increase in operating lease assets and liabilities


1.3



6.3


Increase in deferred revenues


11.1



7.5


Decrease in income taxes


(0.7)



(1.7)


Other, net


(6.5)



(0.1)


Net cash flow provided by operating activities


14.9



41.4







Investing activities:





Capital expenditures


(18.2)



(18.1)


Acquisitions


(6.6)



(7.5)


MTA franchise rights


(2.8)



(5.4)


Net proceeds from dispositions


0.3



2.2


Return of investments in investee companies


0.6



0.1


Net cash flow used for investing activities


(26.7)



(28.7)







Financing activities:





Proceeds from long-term debt borrowings


495.0



35.0


Proceeds from borrowings under short-term debt facilities


15.0



15.0


Repayments of borrowings under short-term debt facilities




(20.0)


Payments of deferred financing costs


(0.4)




Proceeds from shares issued under the ATM Program




16.6


Taxes withheld for stock-based compensation


(11.8)



(7.6)


Dividends


(55.6)



(51.8)


Net cash flow provided by (used for) financing activities


442.2



(12.8)







Effect of exchange rate changes on cash, cash equivalents and restricted cash


(1.7)



0.1


Net increase in cash, cash equivalents and restricted cash


428.7




Cash, cash equivalents and restricted cash at beginning of period


60.9



54.1


Cash, cash equivalents and restricted cash at end of period


$

489.6



$

54.1


 

Exhibit 3:  CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Unaudited)
 See Notes on Page 12




Three Months Ended



March 31,

(in millions)


2020


2019

Supplemental disclosure of cash flow information:





Cash paid for income taxes


$

0.8



$

0.8


Cash paid for interest


37.5



24.5







Non-cash investing and financing activities:





Accrued purchases of property and equipment


9.7



9.4


Accrued MTA franchise rights


5.0



1.8


Taxes withheld for stock-based compensation


0.2



0.1



 

 

Exhibit 4:  SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION 
(Unaudited) See Notes on Page 12




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



$

14.4




$



$

270.9


Transit and other


98.2



16.2






114.4


  Total organic revenues(a)


$

354.7



$

30.6




$



$

385.3


Non-organic revenues(b):










Billboard


$



$




$



$


Transit and other










Total non-organic revenues(b)


$



$




$



$












Operating income (loss)


$

47.4



$

(3.3)




$

(10.3)



$

33.8


Net gain on dispositions


(0.1)








(0.1)


Depreciation and amortization


43.5



3.8






47.3


Stock-based compensation







5.8



5.8


Adjusted OIBDA


$

90.8



$

0.5




$

(4.5)



$

86.8












Adjusted OIBDA margin


25.6

%


1.6

%



*



22.5

%











Capital expenditures


$

17.3



$

0.9




$



$

18.2














Three Months Ended March 31, 2019

(in millions, except percentages)


U.S. Media


Other



Corporate


Consolidated

Revenues:










Billboard


$

236.2



$

14.8




$



$

251.0


Transit and other


102.2



18.5






120.7


Total revenues


$

338.4



$

33.3




$



$

371.7


Organic revenues(a)










Billboard


$

236.2



$

14.6




$



$

250.8


Transit and other


102.2



18.5






120.7


  Total organic revenues(a)


$

338.4



$

33.1




$



$

371.5


Non-organic revenues(b):










Billboard


$



$

0.2




$



$

0.2


Transit and other










Total non-organic revenues(b)


$



$

0.2




$



$

0.2












Operating income (loss)


$

55.5



$

(4.0)




$

(14.6)



$

36.9


Restructuring charges







0.3



0.3


Net gain on dispositions


(1.5)








(1.5)


Depreciation and amortization


40.6



5.2






45.8


Stock-based compensation







5.3



5.3


Adjusted OIBDA


$

94.6



$

1.2




$

(9.0)



$

86.8












Adjusted OIBDA margin


28.0

%


3.6

%



*



23.4

%











Capital expenditures


$

17.3



$

0.8




$



$

18.1













 

Exhibit 5:  SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES   
(Unaudited) See Notes on Page 12




Three Months Ended



March 31,

(in millions, except per share amounts)


2020


2019

Net income attributable to OUTFRONT Media Inc.


$

6.1



$

6.1


Depreciation of billboard advertising structures


15.5



16.3


Amortization of real estate-related intangible assets


12.0



10.9


Amortization of direct lease acquisition costs


11.3



10.3


Net gain on disposition of real estate assets


(0.1)



(1.5)


Adjustment related to non-controlling interests


(0.1)




FFO attributable to OUTFRONT Media Inc.


44.7



42.1


Non-cash portion of income taxes


(2.5)



(1.8)


Cash paid for direct lease acquisition costs


(14.9)



(14.0)


Maintenance capital expenditures


(4.8)



(4.1)


Restructuring charges




0.3


Other depreciation


5.5



4.8


Other amortization


3.0



3.5


Stock-based compensation


5.8



5.3


Non-cash effect of straight-line rent


1.3



1.1


Accretion expense


0.6



0.6


Amortization of deferred financing costs


1.3



1.4


AFFO attributable to OUTFRONT Media Inc.


$

40.0



$

39.2



 

Exhibit 6:  SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES   
(Unaudited) See Notes on Page 12




Three Months Ended



March 31,

(in millions)


2020


2019

Adjusted OIBDA


$

86.8



$

86.8


Interest expense, net, less amortization of deferred financing costs


(28.5)



(31.3)


Cash paid for income taxes


(0.8)



(0.8)


Cash paid for direct lease acquisition costs


(14.9)



(14.0)


Maintenance capital expenditures


(4.8)



(4.1)


Equity in earnings of investee companies, net of tax


0.4



0.8


Non-cash effect of straight-line rent


1.3



1.1


Accretion expense


0.6



0.6


Other income


0.2



0.1


Adjustment related to non-controlling interests


(0.3)




AFFO


$

40.0



$

39.2



 

Exhibit 7:  OPERATING EXPENSES
(Unaudited) See Notes on Page 12




Three Months Ended





March 31,


%

(in millions, except percentages)


2020


2019


Change

Operating expenses:







Billboard property lease


$

102.8



$

96.0



7.1

%

Transit franchise


57.8



58.1



(0.5)


Posting, maintenance and other


64.2



62.8



2.2


Total operating expenses


$

224.8



$

216.9



3.6



 

Exhibit 8:  EXPENSES BY SEGMENT
(Unaudited) See Notes on Page 12




Three Months Ended





March 31,


%

(in millions, except percentages)


2020


2019


Change

U.S. Media:







Operating expenses


$

202.7



$

193.4



4.8

%

SG&A expenses


61.2



50.4



21.4









Other:







Operating expenses


22.1



23.5



(6.0)


SG&A expenses


8.0



8.6



(7.0)


 

NOTES TO EXHIBITS


PRIOR PERIOD PRESENTATION CONFORMS TO CURRENT REPORTING CLASSIFICATIONS.



(a) 

Organic revenues exclude the impact of foreign currency exchange rates ("non-organic revenues").

(b) 

In the three months ended March 31, 2019, non-organic revenues reflect the impact of foreign currency exchange rates.

Calculation not meaningful

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/outfront-media-reports-first-quarter-2020-results-301055518.html

SOURCE OUTFRONT Media Inc.

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