OUTFRONT’s performance improved during the fourth quarter of 2024 as transit and national revenues continued to rebound.  Here are are the results of the OUTFRONT 4Q 2024 earnings release, 4Q 2024 earnings presentation and conference call, sponsored and analyzed by SignValue.

• Organic revenue increased 3.9% to $493 million in 4Q 2024.  Billboard revenue was up 2%.  Outgoing CEO Jeremy Male said that billboard revenue growth would have been higher but was impacted by OUTFRONT’s exit of a “marginally profitable” MTA billboards contract in October.  Transit revenue was up 9%. Local revenue was up 0.7%.  National revenue was up 7%.  OUTFRONT’s average billboard yield increased by 4.5% to $3,137 during the fourth quarter of 2024 due to price increases.

• Adjusted Cashflow (OIBDA) was us 2.3% to $155 million.
• Capital expenditures totaled $18 million for 4Q 2024 consisting of $4 million in maintenance capexp and $14 million in growth capexp.
• OUTFRONT spent $8 million on acquisitions during 4Q 24 and also spent $24 million to purchae the 49% non-controlling interest in a joint venture.
• OUTFRONT had $2.5 billion in debt at 12/31/24 with a weighted average cost of debt of 5.4% and a Debt/Cashflow (EBIDTA) ratio of 4.7 times in line with the company’s 4.5-5.0 times target.

Outgoing CEO Jeremy Male said the sale of the company’s Canadian assets strengthens the balance sheet.

In June we closed the sale of our Canadian business for approximately $300 million U.S. and utilized essentially all of the proceeds from the sale to reduce our leverage which ended the year at 4.7 times down from 5.4 times at the end of 2023.

CFO Matt Siegel says to expect $85 million of capexp in 2025 business for 2025

We expect to spend approximately $85 million of CapEx about $35 million of this total will be for maintenance which includes $10 million to replace aging digital billboards we commenced our installation of digital boards in 2007 and while many of our earliest installations still look great we believe replacing some of these older screens with new state-of-the-art technology will help drive revenue growth

SignValue’s Take: As goes national and transit, so goes OUTFRONT.  The company is benefiting from an improvement in both sectors.   OUTFRONT finished the day up 0.4%.  Lamar was up 1.4%, Clear Channel Outdoor flat, the S&P 500 down 0.5%

If you have questions contact consultant at info@signvalue.com or (480) 657-8400.

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