NYSE$OUT

Outfront Media Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported first quarter 2020 results, showing revenue increase despite the impact of COVID-19.

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.

Headline financials

Total Revenue

$385M

Previous: $372M+3.7%
EPS (adj)

$0.28

Previous: $0.28+0.0%
Adjusted OIBDA

$86.8M

No prior period
Capital Expenditures

-$18.2M

Previous: -$18.1M-0.6%
Free Cash Flow

-$12.1M

Previous: -$12M-0.8%
Net Income

$6.1M

Previous: $6.1M+0.0%
Operating Income

$33.8M

Previous: $36.9M-8.4%
Gross Profit

$161M

Previous: $155M+3.7%
Cash & Equivalents

$488M

Previous: $52.7M+825.6%
Total Assets

$5.8B

Previous: $5.08B+14.3%
Stock-Based Comp

$5.8M

Previous: $5.3M+9.4%

Revenue & EPS history

Outfront Media · Revenue · Quarterly

$385M

Q1 2020+3.7%vs Q1 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Outfront Media · $416M total across 3 segments · Q1 2020

  • Billboard
    $271M
  • Transit
    $114M
  • Other
    $30.6M-8.1%

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.

Tailwinds

  • 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.

Headwinds

  • 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

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.4%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+1.8%

Avg return

30 days after

55%

29 / 53 earnings

Positive

+22.4%

Q3 2023

Best reaction

-17.7%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.3%-2.5%-5.1%
Q4 2025+5.9%+7.0%-4.5%
Q3 2025+13.6%+21.9%+32.3%
Q1 2025-2.5%+5.0%+5.8%
Q4 2024+0.6%+1.4%-11.0%
Q3 2024+3.6%-0.8%+4.2%
Q2 2024+7.6%+8.3%+20.8%
Q1 2024-7.4%-7.2%-11.3%
Q4 2023+18.5%+18.7%+28.2%
Q3 2023+22.4%+21.4%+32.4%
Q2 2023-17.7%-21.4%-22.7%
Q1 2023-9.1%-10.8%-10.6%
Q4 2022-5.3%-5.9%-19.0%
Q3 2022-5.5%-5.0%+6.3%
Q2 2022-2.1%+3.1%-5.3%
Q1 2022-5.6%-10.0%-19.6%
Q4 2021+6.6%+7.8%+15.9%
Q3 2021+6.0%+2.6%-8.3%
Q2 2021+8.4%+6.3%+6.3%
Q1 2021-5.3%-0.4%-4.0%
Q4 2020-6.9%-4.3%+1.5%
Q3 2020+8.9%+27.4%+41.3%
Q2 2020+2.1%+5.1%+13.5%
Q1 2020+0.8%-20.8%+35.0%
Q4 2019-3.5%-11.8%-57.2%
Q3 2019-5.4%-6.1%-5.3%
Q2 2019+0.5%+3.6%+2.3%
Q1 2019+3.1%+4.4%+5.7%
Q4 2018+2.7%+5.4%+6.9%
Q3 2018+11.7%+15.5%+14.0%
Q2 2018-10.6%-11.2%-4.1%
Q1 2018+2.3%+4.0%+5.0%
Q4 2017-7.7%-9.3%-15.6%
Q3 2017+2.1%+3.0%-1.2%
Q2 2017+1.6%+0.0%-1.4%
Q1 2017-10.1%-9.8%-12.4%
Q4 2016-8.6%-4.8%-3.8%
Q3 2016+7.5%+1.9%+18.6%
Q2 2016-3.0%-3.1%-2.7%
Q1 2016-2.0%
Q4 2015+0.5%
Q3 2015+0.4%
Q2 2015-6.5%
Q1 2015-3.2%
Q4 2012-3.4%
Q4 2014-3.4%
Q3 2014+0.8%
Q3 2013+0.8%
Q2 2013-2.6%
Q2 2014-2.6%
Q1 2013+5.7%
Q1 2014+5.7%
Q4 2013+5.7%
Q3 2012
Q2 2012
Q1 2012

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