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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
Lind Media Acquires Ohio Assets
The Mansfield News Journal reports that Lind Media announced that they have acquired over 500 billboards in the Cleveland, Columbus and Cincinnati markets. Also included are assets in Richland, Ashland, Crawford, Morrow Marion, Wayne, Knox, Fayette and Clinton counties. Lind Media Company, organized in 1991 by John L Siegenthaler, operates over 1,300 billboards […]
Tax Advantages of Buying A Billboard
Watchfire’s blog has a great post called “Purchasing New Signage – Understand Section 179 and save money.” The “Protecting Americans from Tax Hikes Act of 2015” allows a small business to take a depreciation writeoff of the entire amount of equipment bought in 2016, up to a $500,000 maximum. If […]
Drachman Sees M&A Opportunities For Independent Outdoor Companies
Investment banker Max Drachman of Kalil & Co has been busy doing outdoor transactions. Insider asked Max to talk about the outdoor M&A market. You can reach Max at kalil@kalilco.com, 520-795-1050. Max Kalil and Co has been busy in the first quarter. What have you done? Yes, we have had […]
