OUTFRONT Media Inc. · NYSE:OUT
OUTFRONT Media — CBS Outdoor Americas — Q1 2014 Earnings Presentation
20 slides from OUTFRONT Media's earnings presentation, May 8, 2014
Slide 1: 2014 First Quarter
2014 First Quarter May 8, 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. In particular, statements pertaining to our capital re
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: 2014 First Quarter Highlights
2014 First Quarter Highlights Notes: All changes refer to the three months ended March 31, 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
Slide 5: A Great Time to be Out of Home
A Great Time to be Out of Home Outdoor’s Power is 1 Increasing Growing audience Always On and increasingly engaging Upside from 2 Technology Digital conversion Drives search & social 3 Reach & Speed Strong national & local execution Rapid campaign deployment Non-GAAP reconciliations are
Slide 6: CBSO Has a Great Industry Position
CBSO Has a Great Industry Position Non-GAAP reconciliations are provided in the Appendix and at www.cbsoutdoor.com 6
Slide 7: Financial Highlights
Financial Highlights Donald Shassian – EVP & CFO Non-GAAP reconciliations are provided in the Appendix and at www.cbsoutdoor.com 7
Slide 8: Consolidated
Consolidated $ Millions Revenues 1 Total revenues +4.4% $275.7 4.4% $287.9 Billboard revenue +2.6% 73.2 9.6% 80.2 • Yield improvements • Static conversions to digital 2.6% • International turnaround 202.5 207.7 Transit revenue +9.6% • Stronger entertainment 1Q13 Transit & Other Billboard 1Q14
Slide 9: United States
United States $ Millions Revenues U.S. $245.2 4.0% $255.0 Revenue up 4.0% 66.8 9.0% 72.8 Billboard revenue +2.1% 178.4 2.1% 182.2 • Yield improvements • Static conversions to digital • Local advertising driver 1Q13 Transit & Other Billboard 1Q14 Transit revenue +9.0% • Stronger entertainment s
Slide 10: International
International $ Millions Revenues 1 $32.9 International $30.5 7.9% 7.4 Total revenue +7.9%1 6.4 15.6% • Canada & Mexico were solid • Billboard revenue +5.8% 24.1 5.8% 25.5 • Transit revenue +15.6% • Digital investment Higher operating costs due to 1Q13 Transit & Other Billboard 1Q14 revenue grow
Slide 11: Capital Expenditures
Capital Expenditures $ Millions 43 digital billboards added • 38 added in the US, virtually Growth LTM1 all static conversions Maintenance • 435 total digital billboards $58.2 $60.4 $52.4 $53.8 Expect annual digital $51.8 deployment to be near $35.9 historical pace • Digital conversions under wa
Slide 12: FFO & AFFO
FFO & AFFO $ Millions except per share FFO 1 Solid improvement on a amounts $0.42 comparable basis $0.40 • FFO +5.0% • AFFO +7.4% $47.9 5.0% $50.3 Reflects material differences between the two periods: • $7.0 million of after-tax interest expense from the 1Q13 FFO Per Share 1Q14 January 2014 fin
Slide 13: Balance Sheet
Balance Sheet $ Millions $539 million of total liquidity • $114 million cash • $425 million undrawn revolving credit facility 4Q13 1Q14 Cash & Equivalents $29.8 $113.9 Balanced fixed vs. floating rate debt Debt • 4.2% Weighted Average Cost of $425M Revolving Credit Facility due 2019 0.0 0.0 Debt
Slide 14: Industry & Strategy
Industry & Strategy Jeremy Male - CEO Non-GAAP reconciliations are provided in the Appendix and at www.cbsoutdoor.com 14
Slide 15: CBSO Growth Strategies
CBSO Growth Strategies DIGITAL REVENUE YIELD TRANSIT FRANCHISES MERGERS & ACQUISITIONS Non-GAAP reconciliations are provided in the Appendix and at www.cbsoutdoor.com 15
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, this presentation and the accompanying tables include non-GAAP measures as describ
Slide 17: Appendix
Appendix Non-GAAP reconciliations are provided in the Appendix and at www.cbsoutdoor.com 16
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended March 31, 2013 (in millions) U.S. International Corporate Consolidated Revenues $ 245.2 $ 34.0 $ — $ 279.2 Operating income (loss) $ 48.2 $ (6.6 ) $ (6.9 ) $ 34.7 Net gains on dispositions (9.9 ) 0.1 — (9.8 ) Depreciation and amortization 41.8 7.1 — 48.9 S
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended March 31, (in millions, except per share amounts) 2013 2014 Net income $ 19.9 $ 8.4 Depreciation of billboard advertising structures 24.2 24.2 Amortization of real estate related intangible assets 10.7 10.7 Amortization of direct lease acquisition costs 7.
Slide 20: About CBS Outdoor Americas Inc.
About CBS Outdoor Americas Inc. CBS Outdoor Americas Inc. (NYSE: CBSO) is one of the largest lessors of advertising space on out-of-home advertising structures and sites across the U.S., Canada and Latin America. Our portfolio primarily consists of billboard displays, which are predominantly located