Outfront revenue up 2.5% for 3Q 2017

Here are the highlights from yesterday’s Outfront earnings release and seeking alpha earnings call transcript.

  • Revenues increased 2.5% to $392 million during the 3rd quarter of 2017.  Organic revenues (excluding acquisitions) increased 1%.  US revenue was up 1.8%.   Outfront took a reduction in revenue of $1.5 million during the quarter after proactively taking down vinyl on billboards prior to hurricanes.  CFO Donald Shassian said that static billboard yields declined while digital billboard yields increased.

 

  • Adjusted cashflow increased 0.1% to $121 million.

 

  • Capital expenditures totaled $59 million during the 3rd quarter of 2017 consisting of $7 million of maintenance capexp and $41 million tor the conversion of 22 static billboards to digital.  Maintenance capexp totaled 1.2% of revenue during the 3rd quarter of 2017.  You can see a breakout of Outfront’s digital screens and digital revenues below.

  • Debt totaled $2.2 billion at September 31, 2017.  The weighted average cost of debt was 4.9% and the Debt/Cashflow(EBIDTA) ratio was 4.9x.

 

  • Jeremy Male expects organic growth of the low single digits during the fourth quarter.  Digital will be growing and national and static will be soft.

 

  • Male expects small screen digital or Liveboards to grow dramatically, especially in urban transit environments where the company can show full motion video.  Hollywood studios, for instance, can show trailers on Outfront’s screens.

 

  • The market liked what it heard.  Outfront stock was up 3% to $24.04 for the day.  On the right you can see Outfront’s trading pattern for the past month.

 

You can access the Outfront Webcast and earnings slides via the Outfront Media Investor Events page.

 


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