Outfront Media Inc. · NYSE:OUT
Outfront Media — CBS Outdoor Americas — Q2 2014 Earnings Presentation
22 slides from Outfront Media's earnings presentation, Aug 7, 2014
Slide 1: 2014 Second Quarter
2014 Second Quarter August 7, 2014
Slide 2: Safe Harbor Disclaimer
Safe Harbor Disclaimer Forward-Looking Statements We have made statements in this presentation 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
Slide 3: Business Overview
Business Overview Jeremy Male - CEO Non-GAAP reconciliations are provided in the Appendix and at www.cbsoutdoor.com 3
Slide 4: Key Highlights
Key Highlights Notes: All changes refer to the three months ended June 30, 2014 compared to the same prior-year period. (1) Revenue comparison is on a constant dollar basis. (2) Adjusted OIBDA and AFFO are presented on a comparable basis for 2013; please see Non-GAAP reconciliations in the Appendix
Slide 5: Financial Highlights
Financial Highlights Donald Shassian – EVP & CFO Non-GAAP reconciliations are provided in the Appendix and at www.cbsoutdoor.com 5
Slide 6: Consolidated
Consolidated $ Millions Revenues 1 Total revenues $334.4 $329.1 1.6% +1.6% 90.3 (1.3%) 89.1 2.7% Billboard revenue 238.8 245.3 +2.7% Transit & Other 2Q13 Billboard 2Q14 Transit & Other Note: (1) Constant dollar revenue -1.3% Adjusted OIBDA 2 33.0% Adjusted OIBDA +2.2% 32.4% 2.2% $110.3 Adj
Slide 7: United States
United States $ Millions Revenues $291.1 U.S. $285.9 1.8% Revenue up 1.8% 81.1 (2.0%) 79.5 Billboard revenue +3.3% 3.3% 211.6 • Yield improvements on static 204.8 and digital bulletins • Digital billboard conversions Transit & Other • Local advertising strength 2Q13 Billboard 2Q14 offset by soft
Slide 8: International
International $ Millions Revenues 1 International $43.2 0.2% $43.3 Total revenue +0.2% 1 9.2 4.3% 9.6 • Billboard revenue -0.9% • Transit revenue +4.3% 34.0 (0.9%) 33.7 • Digital investment Canada +4.7% 2Q13 Transit & Other 2Q14 • Canada reflects increased Billboard spending across several ad No
Slide 9: Capital Expenditures
Capital Expenditures $ Millions 2Q14 three-month capex $10.9 million • $6.5 million Growth • $4.4 million Maintenance Growth LTM1 • Total capex 3.3% of revenues Maintenance − 4.4% excluding Transit & $60.4 $62.4 Other revenues $58.2 $51.8 $53.8 • Maintenance 1.3% of revenues $37.8 40 digital bil
Slide 10: FFO & AFFO
FFO & AFFO $ Millions FFO 1 REIT-comparable FFO & AFFO: 0.9% • Aligns to how we began $79.4 $80.3 $81.0 operating as of 7/17/14 $66.4 • Adjusts 2013 for incremental stand-alone costs • Adjusts 2013 for interest expense • Adjusts 2013 and 2014 for taxes as a REIT FFO 2Q13 REIT-Comparable FFO 2Q14
Slide 11: Balance Sheet
Balance Sheet $ Millions 4Q13 2Q14 $548 million of total liquidity • $123 million cash Cash $29.8 $123.4 • $425 million undrawn IPO Proceeds for estimated cash E&P Purge 100.0 revolving credit facility Total Cash & Equivalents $223.4 Balanced fixed vs. floating Debt $425M Revolving Credit Facili
Slide 12: Conclusion
Conclusion Jeremy Male - CEO Non-GAAP reconciliations are provided in the Appendix and at www.cbsoutdoor.com 12
Slide 13: Outlook & Strategy
Outlook & Strategy Third quarter outlook Acquisitions enhance platform for growth • Van Wagner and Windsor (Chicago) • Evaluating additional tuck-in opportunities Focused intensely on marketing, selling, and process to drive yield improvement Important rebranding in Q4 Non-GAAP reconciliatio
Slide 14: Appendix
Appendix Non-GAAP reconciliations are provided in the Appendix and at www.cbsoutdoor.com 14
Slide 15: Revenue Mix
Revenue Mix Current Quarter CONSOLIDATED UNITED STATES INTERNATIONAL Canada United Latin 7% States Transit Billboard America 6% Transit & Billboard Transit & Billboard & Other 78% 87% Other 27% 73% Other 73% 22% 27% Trailing Last Twelve Months 1 CONSOLIDATED UNITED STATES INTERNATIONAL Canada Latin
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations 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 presentation and the accompanying tables include non-GAAP financial measures as described below.
Slide 17: Non-GAAP Reconciliations (unaudited)
Non-GAAP Reconciliations (unaudited) Three Months Ended June 30, 2014 (in millions) U.S. International Corporate Consolidated Revenues: Billboard $ 211.6 $ 33.7 $ — $ 245.3 Transit and other 79.5 9.6 — 89.1 Total revenues 291.1 43.3 — 334.4 Non-comparable revenues (1.7 ) — — (1.7 ) Same-site revenue
Slide 18: Non-GAAP Reconciliations (unaudited)
Non-GAAP Reconciliations (unaudited) Three Months Ended June 30, 2013 (in millions) U.S. International Corporate Consolidated In Constant $(3) Revenues: Billboard $ 204.8 $ 36.6 $ — $ 241.4 $ 238.8 Transit and other 81.1 10.2 — 91.3 90.3 Total revenues 285.9 46.8 — 332.7 $ 329.1 Non-comparable reven
Slide 19: Non-GAAP Reconciliations (unaudited)
Non-GAAP Reconciliations (unaudited) Three Months Ended June 30, 2013 2014 Stand- Net Loss on Alone Interest REIT Tax REIT - REIT Tax REIT - (in millions, except per share Dispositions Costs Expense Comparable Adjustment Comparable Adjustment Comparable amounts) Reported (5) (6) (7) to 2014 (8) Basi
Slide 20: Non-GAAP Reconciliations (unaudited)
Non-GAAP Reconciliations (unaudited) Three Months Ended Six Months Ended June 30, June 30, (in millions, except per share amounts) 2014 2013 2014 2013 Net income $ 22.4 $ 36.4 $ 30.8 $ 56.3 Depreciation of billboard advertising structures 24.6 24.2 48.8 48.4 Amortization of real estate related intan
Slide 21: Non-GAAP Reconciliations: Footnotes to Tables
Non-GAAP Reconciliations (unaudited) Footnotes to Tables 1) Adjusted weighted average shares includes the 23.0 million shares issued in connection with the initial public offering and the 97.0 million shares outstanding after our stock split for basic earnings per share (“EPS”) and adjusted weighted
Slide 22: About CBS Outdoor Americas Inc.
About CBS Outdoor Americas Inc. CBS Outdoor is one of the largest out-of-home media companies in the Americas and has a major presence in top markets throughout the United States, Canada, Mexico and South America. With traditional billboard and transit outdoor advertising properties, and a network o