Finance

Outfront’s Male and Shassian Interviewed by REIT.com

Reit.com has an interview with Outfront Chairman and CEO Jeremy Male and CFO Donald Shassian.  Some of the highlights of the interview. Male says that out-of-home was a 2X GDP business from 1990-2015 with annual revenue growth of 4%/year or twice the 2%/year GDP growth rate.  Looks to Insider like the Outdoor industry is a GDP business (see table below where Insider compares US outdoor revenues with US GDP).  Outdoor revenues have grown by 4.1%/year since 1994 versus 4.3%/year growth […]

by billboardinsider· · Comments are Disabled · Finance

iHeart Has Trial Date On Debt Dispute

An update on iHeart Media/Clear Channel Outdoor debt issues.  The Wall Street Journal is reporting that iHeart has a May trial date set to block a group of lenders from declaring a default on more than $3 billion in loans. In the meantime, both sides have agreed to abide by a restraining order until the trial begins. Interestingly, the argument surrounds a transfer of shares that the lenders say are worth $1.241 billion and is not permitted under the terms of the […]

by John Weller· · Comments are Disabled · Finance

Jarred Saba on Buying Billboard Leases

There are several companies which want to buy outdoor advertising easements:  Landmark, Milepost Capital, Billboard Property Group and Lease Advisors.  Insider is skeptical about some of these companies but thinks it never hurts to talk to anyone any time. Lease Advisors was founded in 2008 and is the nation’s leading lease acquisition and consultancy firm providing services to landowners whose property is host to a billboard or cellular installation.  The company has offices in Los Angeles, San Diego, San Francisco, Melbourne, Toronto […]

by billboardinsider· · Comments are Disabled · Finance

Emarketer expects outdoor to grow 2.6% during 2016.

eMarketer projects a 5.1% increase in 2016 US ad revenues according to Mediapost.  Here’s how it splits out by sector. Digital Media Spending up 15.4% TV ad spending up 5.1%. Outdoor ad spending up 2.6%. Print ad spending down 5% Insider’s take: Not sure why emarketer projects such low outdoor growth.  The US outdoor industry grew by 5.8% during the fourth quarter or 2015 and outdoor will get a boost during 2016 from political advertising just like everyone else.

by billboardinsider· · Comments are Disabled · Finance

Limit Outdoor Debt to 3X Gross Revenue

Insider thinks 3 times annualized revenues is a reasonable debt limit for most small billboard companies.  Here’s why. If you borrow less than 3 times gross revenue,  your plant will be worth more than debt even if revenues drop and multiples contract during a recession. Industry revenues declined 20% during the 2008-2009 recession. Billboard values have averaged 5-6 times gross revenues but can be expected to drop to 4 times gross revenue during a recession. If you borrow no more […]

by billboardinsider· · Comments are Disabled · 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