Finance

Outfront closes South America Sale to JC Decaux

Outfront Media has closed the sale of all of its equity interests in the Company’s Argentina, Chile, Mexico and Uruguay outdoor plant to JCDecaux.  The sale price was $82 million.  Revenue and cashflow were not disclosed. Insider’s take: A good thing for Outfront.  The market discounts revenue and cashflow from overseas outdoor assets especially when property rights and legal documentation aren’t as strong and outdoor land leases are nonexistent or short-term.

by billboardinsider· · Comments are Disabled · Finance

Outdoor Advertising Valuations March 2016

The four public outdoor companies were valued at 3.7 times gross revenue and 13.1 times cashflow at March 31, 2016 according the the Yahoo Finance pages for Clear Channel, Outfront, Lamar and JCDecaux. Lamar leads the group at a valuation of 5.8 times revenue and 13.9 times cashflow.  Insider attributes this to the fact that Lamar has the highest margins of the group and is the least reliant on short-term transit and airport advertising contracts. Clear Channel Outdoor has the […]

by billboardinsider· · Comments are Disabled · Finance

iHeart Media Debt Woes

iHeart Media is one of the largest media conglomerates in the United States.  They own 858 radio stations; Premier Networks, the top U.S. radio network; and iHeartRadio, among the nation’s top digital music services.  For those of us more focused on the billboard industry, we know iHeart as the owner of Clear Channel Outdoor, one of the world’s largest outdoor companies. Insider has previously written about the significant debt issues for iHeart and their related sales of billboard assets to […]

by John Weller· · Comments are Disabled · Finance, Uncategorized

Two Nevers When Negotiating A Billboard Lease

Landlords and easement companies are being more aggressive about adding onerous clauses to leases and easements. Here are two nevers when negotiating a lease or an easement. Never give your billboard to the landlord or easement holder when the lease expires or terminates. A steel monopole billboard has a 40 year life. Most leases run 20 years. Why would you spend money to put up a billboard and give it away when only half of its useful life is over. […]

by billboardinsider· · Comments are Disabled · Finance

Paul Wright of SignValue on Billboard Valuation

Insider is republishing an interview with Paul Wright because Wright’s insights are timeless.  Paul and Jeff Wright own Signvalue.com, the industry’s leading billboard valuation firm.  Signvalue.com should be in your bookmarks because it lists dozens of billboards for sale in the United states.  Paul Wright has published the best book on the billboard business.  It’s called Billboard Appraisal: The Valuation of Off-Premise Advertising Signs and is a must read for anyone active in the business. 1. Paul, what made you and Jeff start […]

by billboardinsider· · Comments are Disabled · Finance

Lind Media Acquires Ohio Assets

The Mansfield News Journal reports that Lind Media announced that they have acquired over 500 billboards in the Cleveland, Columbus and Cincinnati markets.  Also included are assets in Richland, Ashland, Crawford, Morrow Marion, Wayne, Knox, Fayette and Clinton counties. Lind Media Company, organized in 1991 by John L Siegenthaler, operates over 1,300 billboards in 27 Ohio and Indiana counties.  When Insider asked John Sigenthaler about the acquisition he had the following comment: “We very much anticipate future acquisitions that make sense for us.Our […]

by John Weller· · Comments are Disabled · Finance

Tax Advantages of Buying A Billboard

Watchfire’s blog has a great post called “Purchasing New Signage – Understand Section 179 and save money.”  The “Protecting Americans from Tax Hikes Act of 2015” allows a small business to take a depreciation writeoff of the entire amount of equipment bought in 2016, up to a $500,000 maximum.  If you have a mature outdoor plant which is generating taxable income there is a huge tax advantage of buying a digital sign because you’ll be able to write off the […]

by billboardinsider· · Comments are Disabled · Finance

Drachman Sees M&A Opportunities For Independent Outdoor Companies

Investment banker Max Drachman of Kalil & Co has been busy doing outdoor transactions.  Insider asked Max to talk about the outdoor M&A market.  You can reach Max at kalil@kalilco.com, 520-795-1050. Max Kalil and Co has been busy in the first quarter. What have you done? Yes, we have had a great quarter. We have closed three Outdoor deals so far: Jag Outdoor- We sold Jag Outdoor in northeast Wisconsin to Link Media. Jag was a 70 year old billboard […]

by billboardinsider· · Comments are Disabled · Finance

Clear Channel Outdoor Wins DC National and Dulles Airport Contract

Businesswire has announced that the Metropolitan Washington Airports Authority has awarded Clear Channel Outdoor a contract to provide advertising at DC’s Washington Dulles and Reagan National airports.  Here are the highlights: An 8 term contract term with one 2 year option to extend. 4 digital sign networks, 75 HD screens and 3 large format screens at Washington Dulles Airport. 6 digital sign networks, 49 HD screens and three 21′ digital screens at Reagan National Airport. Clear Channel Airports, a division […]

by billboardinsider· · Comments are Disabled · Finance

Scott Wells Buys Clear Channel Shares

Microcap reports that Clear Channel Outdoor Scott Wells bought 5,000 shares of Clear Channel Outdoor on March 4.  With the purchase Wells directly owns 50,283 shares of stock valued at $209,000. Insider’s take: If Insider were a Clear Channel Outdoor shareholder, he’d be happy that an insider is buying.  A $209,000 direct equity stake isn’t much, however for a CEO of a public company.  Insider bets that most of you have more than this invested in your business if it’s […]

by billboardinsider· · Comments are Disabled · Finance