• Outfront organic revenues flat in 4Q 2017

    Outfront reported flat fourth quarter 2017 organic revenues but increased cashflow due to controlled expenses.  Here are the highlights from the 4Q 2017 press release and the Seeking Alpha earnings transcript.

    • Revenues increased 1% to $401 million during the fourth quarter of 2017.   Organic revenue, adjusting for acquisitions and currency fluctuations, was flat.  US billboard organic revenues were down 1.3% due to reduced national advertising.
    • Operating expenses increased 1% to $217 million during the fourth quarter of 2017 due to transit franchise expenses and the addition of digital billboards in Canada.
    • Cashflow (adjusted OBIDA) increased 3.3% to $121 million during the fourth quarter of 2017.
    • Capex totaled $12 million for the fourth quarter and $70 million for the year.  The company converted 15 static billboards to digital during the fourth quarter, bringing the number of digital billboards to 982.  CFO Donald Shassian said the company has an additional 100 sites in the digital billboard conversion pipeline.  The company is also adding 3,000 liveboards during the last half of 2018 in connection with the MTA buildout.
    • The company projects capexp of $75 million for 2018, including maintenance capexp of $25-25 million.
    • Debt/Cashflow was 4.8 times at December 2017, above the company’s target of 3.5-4.0.

    OUTFRONT stock finished the day down 3%.  Lamar was off 6%.  Clear Channel Outdoor was off 4%.  The S&P 500 was off 1%.

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