Finance

Tax Laws Can Effect Billboard Financing Costs or Why You Should Never Finance an Alabama Billboard With A Lease

You should never finance an Alabama billboard  with a lease instead of a loan.  The State of Alabama has a punitive rental tax which applies to leases and rentals.  Here’s the Alabama tax law: 810-6-5-.09 Leasing and Rental of Tangible Personal Property. (1) The term “rental tax” as used in this rule shall mean the privilege or license tax levied in Section 40-12-222, Code of Alabama 1975. (2) Unless otherwise defined in this rule, the definitions of terms contained in […]

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Clear Channel Outdoor Americas organic revenue up 1.1% in 3Q 2016

Here are the highlights from Clear Channel Outdoor’s third quarter 2016 financials and webcast.  You can also read a Seeking Alpha transcript of the webcast here. Clear Channel Outdoor consolidated revenue declined by 3.3% to $673 million due to asset sales and the impact of foreign exchange fluctuations.  Organic revenue growth was 2.3% when adjusting for asset sales and foreign exchange fluctuations. Clear Channel Outdoor consolidated cashflow increased by 2% to $154 million due to strong performance by the company’s international […]

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Landmark announces third quarter 2016 Financials

Landmark Infrastructure has announced third quarter 2016 financials.  Here are the highlights of the firm’s press release and webcast. Third quarter revenue increased by 59% to 8.8% million due to acquisitions. Third quarter adjusted EBIDTA increased by 63% to $8.3 million. The company has been busy raising capital for acquisitions.  In August Landmark raised $46 million in 7.9% preferred units to raise capital for acquisitions  In October Landmark raised $56 million of common stock.  Most of the effort, however is […]

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Outfront 2.3% organic growth in third quarter 2016.

Outfront announced financials for the third quarter of 2006.   Here are the highlights from the earnings release and webcast. Revenues declined 1% to $383 million during the third quarter of 2016 due to the disposition of the company’s Latin American operations.  Organic revenues (excluding the impact of acquisitions and divestitures) grew 2.3%. Insider notes that this growth trails Lamar’s third quarter (3.6% organic revenue growth) and US GDP  (up 2.9% growth). Cashflow increased by 6% to $121 million due […]

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Lamar 3.6% organic revenue growth in 3Q 2016.

Lamar released financials for the third quarter 2016.  Here are the highlights. Revenue increased 10.5% to $388 million during the third quarter due to additional revenue from the Clear Channel Outdoor acquisitions. Revenue increased 3.6% when adjusted for acquisitions due to healthy increase in digital sign revenue (up 6.6%) and increased political advertising.  Lamar grew 1.25 times faster than US GDP which was up 2.9% during the third quarter of 2016. Cashflow increased by 12% to $178 million during the […]

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Max Drachman on Recent Outdoor Deals

Max Drachman is a outdoor advertising industry investment banker with Kalil and Co.  Insider interviewed Drachman last week about trends in the outdoor advertising M&A market. Max, have you closed any transactions since the last time we checked in with you in early September? Yes, we have closed four more deals since we last touched base: Boardworks’ divestiture of the majority of their plant in Atlanta. Diamond Outdoor’s divestiture of signs in South Carolina and Georgia to Adams Outdoor Windsor […]

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Landmark Issues $49 million in new common stock

Seeking Alpha reports that Landmark Infrastructure, the outdoor lease and easement purchaser, has issued 3 million shares in new common stock.   Insider calculates that the company raised $49 million based on 10/14/16 share price of $16.33.  Landmark is using the cash to pay down revolving debt.  It will ultimately be used to purchase new energy, cellular and outdoor leases and easements. Landmark has introduced a new outdoor financing product in which it will make long term loans to outdoor […]

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Gabe Oliverio on Negotiating A Non-Compete

  Non-competes are an important but often overlooked aspect of selling an outdoor company.   We asked Gabe Oliverio to discuss what sellers should be thinking about when they negotiate a non-compete.  Gabe is a managing director at Johnsen, Fretty & Co, an investment bank which specializes in divestitures, acquisitions, financings, and valuations for out-of-home advertising clients. Gabe, why does an outdoor buyer ask for a non-compete? Oftentimes its as simple as a buyer saying:  “I’m not going to pay […]

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Outdoor Valuations September 2016

Public outdoor company valuations shrank slightly during the third quarter of 2016 as this chart demonstrates: Public Company Outdoor Values September 2016 The average revenue multiple for the four public outdoor companies shrank from 3.74 times to 3.60 times.  JCDecaux, Clear Channel Outdoor and Outfront trade at a lower revenue multiple than Lamar because they rely more on short term transit advertising contracts or international outdoor markets where leases are less secure.  The transit business is mixed blessing.  It is […]

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Shassian says Outfront’s Digital Billboards Generate a 25% ROI.

Don Shassian, Outfront’s Chief Financial Officer spoke at the 24th Annual Deutsche Bank Leveraged Finance Conference, September 28, 2016 in New York City.  You can listen to the talk on the Outfront Events and Presentations Page.  Here’s a summary of the talk: On Outfront’s recent win of the Boston Transit contract:  “We’re very excited about it…Bringing digital into that environment creates more revenue opportunities and improves the ridership experience…It’s a five year contract with two renewal periods of five years […]

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