NYSE$OUT

Outfront Media Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported a decrease in revenue due to the impact of the COVID-19 pandemic, but digital billboards returned to growth.

OUTFRONT Media reported Q4 2020 revenues of $335.8 million, a decrease of 31.2% compared to the same period last year. Net income attributable to OUTFRONT Media Inc. was $4.3 million, or a loss of $0.02 per diluted share. Adjusted OIBDA was $83.0 million and AFFO attributable to OUTFRONT Media Inc. was $49.9 million.

  • Total revenues decreased by 31.2% to $335.8 million compared to the same quarter last year.
  • Digital billboards returned to growth, driving total revenues above expectations.
  • Net income attributable to OUTFRONT Media Inc. was $4.3 million, a decrease compared to $45.0 million in the same prior-year period.
  • Adjusted OIBDA decreased by 40.9% to $83.0 million.

Headline financials

Total Revenue

$336M

Previous: $488M-31.2%
EPS (adj)

-$0.02

Previous: $0.73-102.7%
Adjusted OIBDA

$83M

Previous: $152M-45.3%
AFFO

$49.9M

Previous: $106M-52.9%
Capital Expenditures

$11.5M

Previous: $24.5M-53.1%
Free Cash Flow

$33.1M

Previous: $90.3M-63.3%
Net Income

$4.3M

Previous: $45M-90.4%
Operating Income

$39.5M

Previous: $98M-59.7%
Gross Profit

$160M

Previous: $232M-31.3%
Cash & Equivalents

$710M

Previous: $59.1M+1102.0%
Total Assets

$5.9B

Previous: $5.38B+9.6%
Stock-Based Comp

$6.5M

Previous: $5.9M+10.2%

Revenue & EPS history

Outfront Media · Revenue · Quarterly

$336M

Q4 2020-31.2%vs Q4 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Outfront Media · $336M total across 2 segments · Q4 2020

  • Billboard
    $279M-13.0%
  • Transit
    $56.5M-66.2%

Forward guidance

The company expects to return to positive revenue growth in the second quarter and anticipates further recovery throughout the year.

Tailwinds

  • Return to positive revenue growth in Q2 as we lap the onset of the pandemic.
  • Further recovery in our business throughout the year.
  • Key performance indicators and total revenues to incrementally improve in 2021 as compared to 2020
  • Billboard property lease expenses and posting, maintenance and other expenses, such as rental expenses, as a percentage of revenues, to decrease in 2021 as compared to 2020
  • Expect to meet minimum annual 2021 REIT distribution requirements

Headwinds

  • Key performance indicators and total revenues to be materially lower in 2021 than pre-COVID-19 pandemic levels, particularly in our U.S. Media segment and with respect to our transit and other business.
  • Total expenses to increase in 2021 as compared to 2020, but be materially lower than pre-COVID-19 pandemic levels, particularly in our U.S. Media segment and with respect to our transit and other business.
  • Billboard property lease expenses and posting, maintenance and other expenses, such as rental expenses, as a percentage of revenues, to be materially higher than pre-COVID-19 pandemic levels.
  • Transit franchise expenses, such as transit franchise payments, as a percentage of revenues, to increase in 2021 as compared to 2020, but be materially higher than pre-COVID-19 pandemic levels, primarily due to our guaranteed minimum annual payment amounts owed to the MTA resuming on January 1, 2021.
  • The COVID-19 pandemic has (i) delayed our ability to build and deploy certain advertising structures and sites, including digital displays; (ii) reduced or curtailed our customers’ advertising expenditures and overall demand for our services through purchase cancellations or otherwise; (iii) increased the volatility of our customers’ advertising expenditure patterns from period-to-period through short-notice purchases, purchase deferrals or otherwise; and (iv) extended delays in the collection of certain earned advertising revenues from our customers, all of which could have a material adverse effect on our business, financial condition and results of operation in 2021.

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+0.4%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+2.0%

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%
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 2014-2.6%
Q2 2013-2.6%
Q1 2013+5.7%
Q1 2014+5.7%
Q4 2013+5.7%
Q3 2012
Q2 2012
Q1 2012

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