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Mar 31, 2020
Outfront Media Q1 2020 Earnings Report
Reported first quarter 2020 results, showing revenue increase despite the impact of COVID-19.
Key Takeaways
OUTFRONT Media reported a revenue increase of 3.7% to $385.3 million for Q1 2020. The company's performance was impacted by the COVID-19 pandemic during March, but positive momentum from 2019 helped to offset some of the negative effects. The company is taking actions to enhance liquidity and reduce expenses in response to the challenging economic environment.
Revenues increased by 3.7% to $385.3 million.
Operating Income was $33.8 million.
Net income attributable to OUTFRONT Media Inc. was $6.1 million, or $0.04 per diluted share.
Adjusted OIBDA was $86.8 million.
Outfront Media
Outfront Media
Outfront Media Revenue by Segment
Revenue by Segment
Billboard Revenue
CapyFin.comTransit Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Due to the COVID-19 pandemic, OUTFRONT Media anticipates their key performance indicators and total revenues to be materially lower in 2020 than historical levels, particularly in the U.S. Media segment and within the transit and other business. Transit franchise expenses, billboard property lease expenses and posting, maintenance and other expenses are expected to increase as a percentage of revenues. The impacts are expected to be greater in the second quarter of 2020 than in the third and fourth quarters.
Positive Outlook
- The company has borrowed nearly all of the remaining available amount under the revolving credit facility.
- The credit agreement governing the revolving credit facility was amended to modify the calculation of our financial maintenance covenant ratio.
- Completed the private placement described above.
- Reduced or deferred capital expenditures and expenses through cost-savings initiatives.
- Company expects to meet or exceed our minimum annual 2020 REIT distribution requirements.
Challenges Ahead
- Key performance indicators and total revenues to be materially lower in 2020 than historical levels.
- Transit franchise expenses, billboard property lease expenses and posting, maintenance and other expenses are expected to increase as a percentage of revenues.
- Impacts are expected to be greater in the second quarter of 2020 than in the third and fourth quarters.
- Interrupted ability to build and deploy advertising structures and sites, including digital displays
- Extended delays in the collection of earned advertising revenues from customers
Revenue & Expenses
Visualization of income flow from segment revenue to net income