Here are 4 things about OUTFRONT which SignValue learned from comparing OUTFRONT’s 2024 10k with prior years.

Fewer billboards, more transit displays

The number of OUTFRONT billboard displays declined by 13% in 2024 due to the sale of the Canadian plant and the loss of the New York MTA billboard contract.  The number of transit displays increased 14% in 2024 due to the deployment of screens in New York and elsewhere.

Urban billboards with high revenues – and high lease costs.

Urban billboards rent for big dollars.  Outfront’s 19,600 urban billboard structures genearated $5,991 in revenue per month per structure during 2024.    But urban billboards have sophisticated landlords and higher rents.  OUTFRONT’s billboard lease expense works out to $1,824/ month per structure during 2024 which equates to 30% of gross revenue.

Failing Grade on Investments

One way to grade a company’s investments is to compute sum up the gains the company takes when it sells assets versus the losses and impairments the company has had to take be writing off investments.   OUTFRONT gets a fail.  Over the past 10 years OUTFRONT has had a new loss on investments of $346 million due primarily as a $535 writeoff on the MTA contract has offset the $161 million  gain the company achieve from selling Canada.

In the past 10 years Lamar has taken $67 million in gains from selling assets with no losses with an additional $100 million gain expected in 2025 from the Vistar sale.

Muted capexp will continue.

OUTFRONT spend $139 million on capexp and acquisitions in 2024 down from $33 in 2022.  The company’s manager’s have signalled more of the same in 2025 although the sale of the Canada assets will give the company some ability for acquisitions.

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