Here are the results of the OUTFRONT Media first quarter 2023 earnings release, earnings presentation and conference call.

• Revenue increased by 6% to $396 million.  Billboard revenue increased by 8%.  Transit revenue declined by 1%.  Local revenue grew 10%.  National revenue grew 1%.  The company finished the quarter with a US Media billboard yield of $2,493.

• Adjusted cashflow declined by 14% to $60 million due to increased Billboard Lease and SG&A expenses.
• OUTFRONT ended the first quarter of 2023 with $2.8 billion in debt at a weighted average cost of 5.4% and a Debt/Cashflow of 5.2 times.  Billboard Insider thinks 6 times leverage is a prudent limit in the out of home industry.

CEO Jeremy Male sees single digit growth in Q2

…we estimate that Q2 total revenues will grow in the mid-single-digit range with billboard above that range and transit again flattish.

CFO Matt Siegel on the company’s acquisitions

We made $5 million of tuck-in acquisitions in the quarter, including a couple of deals we were working on last year. Looking forward, while we continue to close additional tuck-ins carried over from last year, given our current pipeline and the activity in the marketplace, we continue to expect to see a lower volume o f deals in ’23 than in — completed in 2022, both in quantity and dollar terms.

Billboard Insider’s take:  Local revenues are doing well but there are disconcerting signs in the weakness of OUTFRONT’s national revenue.  OUTFRONT declines 4.8% in after hours trading.

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