“It’s great to be here sharing first quarter results which came in stronger than we anticipated,” was how OUTFRONT CEO Jeremy Male introduced Q1 2022 financials. Here are the results from the OUTFRONT 1Q 2022 earnings release, conference call and OUTFRONT 1Q 2022 earnings presentation.
- Revenues grew 44% to $374 million. Billboard revenues grew 33%. Transit grew 115%. The company’s US billboard yield increased by 35% to $2,343. This is a Q1 record for the company. Occupancy is up but rate makes up most of the yield improvement. OUTFRONT CEO Jeremy Male projects revenue growth in the low 30’s for OUTFRONT in the second quarter of 2022.
- Adjusted cashflow (OIBDA) increased from $11 million during the first quarter of 2021 to $70 million during the first quarter of 2022 due increased revenue.
- Capital expenditures increased from $9 million during the first quarter of 2021 to $17 million during the first quarter of 2022 due to digital investments. The company added 31 digital billboards in the US increasing total US digital billboard faces of 1,432.
- Net leverage (Debt/Long Term EBIDTA) is a moderate 5 times and the weighted average cost of debt is 4.3%. Only one-fifth of the company’s debt is floating rate.
CEO Jeremy Male says big markets are leading
We continue to see improvements in all our markets and regions but our performance in large markets is exceptional with New York and LA being two of our best performers.
CFO Matt Siegel says the company is growing digital billboards.
In recognition of potential supply chain issues we ordered boards with additional lead times and still expect to add 150-200 digital billboard displays this year.
CFO Matt Siegel on Acquisitions
Although our spend on tuck-in acquisitions during the first quarter was light…we would characterize the M&A pipeline as being robust and interesting.
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