Outfront Media Inc. · NYSE:OUT
Outfront Media — Q1 2015 Earnings Presentation
26 slides from Outfront Media's earnings presentation, May 5, 2015
Slide 1: First Quarter 2015
2015 First Quarter May 5, 2015
Slide 2: Safe Harbor Disclaimer
Safe Harbor Disclaimer 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
Slide 3: Jeremy Male, CEO
Jeremy Male CEO 3
Slide 4: Key Highlights
Key Highlights Solid quarter as expected - organic revenue +4.9% 1 • Transit +12.8%, Billboard +1.7% Transit performed well in both National and Local OIBDA reflects business mix Declared 2Q15 dividend at $0.34/share Notes: 1) All changes refer to the three months ended March 31, 2015 compar
Slide 5: Donald Shassian, EVP & CFO
Donald Shassian EVP & CFO 5
Slide 6: Q1 Summary
Q1 Summary Items affecting 1Q15 Adj. Net comparability: OIBDA Inc. EPS FFO AFFO • Restructuring costs 1Q15 Reported $87.0 $1.1 $0.01 $49.9 $49.5 • Net gain on Restructuring N/A 0.5 0.00 0.5 N/A dispositions Dispositions N/A (0.3) (0.00) 0.0 N/A • Acquisitions 1Q15 REIT- $87.0 $1.3 $0.01 $50.4 $49.
Slide 7: Q1 Consolidated
Q1 Consolidated Revenues Organic2 $343.9 $287.9 19.5% revenues up 4.9% 97.0 yr/yr 82.8 17.1% • Billboard +1.7% 205.1 20.4% 246.9 • Transit +12.8% Billboard Adjusted OIBDA 1Q14 Transit & Other 1Q15 Total margin up slightly 1 Adjusted OIBDA • Higher growth in 25.3% Transit, which carries 25.1% hig
Slide 8: Q1 United States
Q1 United States Revenues Organic2 $313.9 revenues up 5.0% $255.0 23.1% 92.8 yr/yr 78.1 18.8% • Billboard +1.4% 221.1 • Transit +13.3% 176.9 25.0% National up Billboard solidly 1Q14 Transit & Other 1Q15 Total Static yield flat, digital yield down Adjusted OIBDA 1 slightly 30.1% Margin down 3
Slide 9: Q1 International
Q1 International Revenues Organic2 revenue $32.9 (8.8%) $30.0 +3.4% yr/yr (10.6%) 4.7 4.2 • Billboard +3.6% • Transit +2.4% 28.2 (8.5%) 25.8 Solid growth in Billboard 1Q14 Transit & Other 1Q15 Canada and Total Mexico 1 Adj. OIBDA Adjusted OIBDA decreased on seasonality and geographic mix 3.3%
Slide 10: Capital Expenditures
Capital Expenditures $13.1M capex in Q1 2015 $70.0 • $6.5M Maintenance $64.2 • $6.6M Growth 20.6 Q4 23 new digital Q3 billboards 14.3 • 16 in U.S. 13.6 Q2 • 7 in Canada 15.7 Q1 13.1 2015 Capex guidance remains 2014 2015 $70M • $30M maintenance • $40M growth Notes: $ Millions unless per share o
Slide 11: Cash Flow
Cash Flow FFO 1 Seasonally the lowest quarter of $48.5 $50.4 the year 3.9% AFFO up 14.1% • Driven by higher Adjusted OIBDA from 1Q14 1Q15 organic growth and acquisitions, as well as lower taxes AFFO 1 • Offset by higher interest expense on acquisition-related $49.5 debt and strategic $43.4 14.1%
Slide 12: Dividends
Dividends +5% increase in Regular Quarterly Cash 1Q15 regular Dividends cash dividend payment +5% 2Q15 regular cash dividend unchanged at 46.7 46.7 $0.34 44.4 44.4 Special “Top-Up” dividend of $8.2M in 1Q15 3Q14 4Q14 1Q15 2Q15E • Brings 2014 dividend payout to 100% of QRS taxable income Notes:
Slide 13: Balance Sheet
Balance Sheet 1Q15 $450M of liquidity Cash $56.0 • $56.0M cash Total Cash & Equivalents $56.0 • $394.5M availability Debt on $425M revolving credit facility, net of $425M Revolving Credit 2019 0.0 $30.5M letters of Sr. Secured Term Loan 2021 798.3 credit outstanding 5.250% Sr. Notes 2022 549.3 5.6
Slide 14: Jeremy Male, CEO
Jeremy Male CEO 14
Slide 15: Outlook: Q2 2015 revenue growth expectation
Outlook Q2 2015 revenue growth expectation 15
Slide 16: Appendix
Appendix 16
Slide 17: Reclassification
Reclassification (in millions) 2013 2014 Three Months Ended: Three Months Ended: 31-Mar 30-Jun 30-Sep 31-Dec 31-Mar 30-Jun 30-Sep 31-Dec REVENUES US Billboard $ 173.3 $ 201.0 $ 203.1 $ 202.6 $ 176.9 $ 207.2 $ 205.1 $ 249.2 US Transit & Other 71.9 84.9 93.4 99.9 78.1 83.9 91.2 107.2 US Total $ 245.2
Slide 18: Acquisition Information
Acquisition Information REVENUES - Van Wagner 1Q14 2Q14 3Q14 4Q14 1Q15 (in millions) Billboard & Transit $ 41.0 $ 48.7 $ 48.6 $ 49.9 $ 45.0 Kiosks 4.1 4.7 5.0 5.3 1.6 Total $ 45.1 $ 53.4 $ 53.6 $ 55.2 $ 46.6 18
Slide 19: 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 document, this document and the accompanying tables include non-GAAP financial measures as descr
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three months ended March 31, 2015 (in millions) U.S. International Corporate Consolidated Revenues: Billboard $ 221.1 $ 25.8 $ — $ 246.9 Transit and other 92.8 4.2 — 97.0 Total revenues $ 313.9 $ 30.0 $ — $ 343.9 Organic revenues(c) Billboard $ 179.4 $ 25.8 $ — $ 205.2 Trans
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three months ended March 31, 2014 (in millions) U.S. International Corporate Consolidated In Constant $(e) Revenues: Billboard $ 176.9 $ 28.2 $ — $ 205.1 $ 201.8 Transit and other 78.1 4.7 — 82.8 82.2 Total revenues $ 255.0 $ 32.9 $ — $ 287.9 $ 284.0 Organic revenues(c) Bill
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three months ended March 31, 2015 2014 Net Gain on Net Gain on Stand- REIT Tax Dispositions Restructuring REIT - Dispositions Alone Costs Interest Adjustment REIT - (in millions, except per share amounts) Reported (f) Charges (g) Comparable Reported (f) (h) Expense (i) (j) C
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended March 31, (in millions, except per share amounts) 2015 2014 Net income $ 1.1 $ 8.4 Depreciation of billboard advertising structures 26.8 24.2 Amortization of real estate related intangible assets 14.4 10.7 Amortization of direct lease acquisition costs 7.5
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended March 31, (in millions) 2015 2014 Adjusted OIBDA 87.0 75.6 Interest expenses, net of deferred financing costs (26.4) (11.8) Incremental interest expense, net of tax and amortization of deferred financing costs — (5.8) Current taxes 1.0 (12.1) Cash paid for
Slide 25: Notes to Appendix Exhibits
Notes to Appendix Exhibits (a) Adjusted weighted average shares include the 23.0 million shares issued in connection with the IPO, the 97.0 million shares outstanding after our stock split, and the 16.5 million shares issued as a special dividend in connection with our conversion to a REIT for basic
Slide 26: About OUTFRONT Media Inc.
About OUTFRONT Media Inc. OUTFRONT Media (NYSE: OUT), formerly 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 billboard and transit properties, a prime asset f