Outfront revenues increased 38% in the fourth quarter of 2021 and are expected to rise by 40% in the first quarter of 2022. Here are the results from the company’s 4th quarter earnings release, 4th quarter 2021 earnings presentation and conference call.
- Revenue increased by 38% to $464 million during the fourth quarter of 2021. This was above the company’s 30% expectation. US billboard revenue was up 27%. Transit and other revenue increased 101%. CEO Jeremy Male is bullish on 2022. He expects revenue growth of at least 40% during the first quarter of 2022.
- Cashflow (OIBDA) increased from $83 million during the fourth quarter of 2020 to $151 million during the fourth quarter of 2021. CFO Matt Siegel mentioned that this is the company’s highest OIBDA ever.
- The company’s US Media billboard yield grew by 26% as you can see from the chart below.
- Capital expenditures increased from $11 million during the fourth quarter of 2020 to $33 million during the fourth quarter of 2021. Maintenance capexp was $12 million. Growth capexp (digital billboard conversions and new billboards) was $21 million. In addition to capexp OUTFRONT closed 6 acquisitions totaling $80 million during the fourth quarter of 2021. CFO Matt Siegel said the company intends to add 150-200 digital billboards in 2022.
- The company spent $37 million in cash to add 610 station displays and 1,302 in car displays under its MTA Subway and Commuter Rail agreement. Here are the totals so far.
- The company’s Net Leverage Ratio (Total debt less unrestricted cash divided by EBIDTA) is 5.6 times. Billboard Insider considers 5-6 times as high but sustainable. The Weighted average cost of debt is 4.3%.
- The company increased it’s quarterly dividend from $0.10 to $0.30. That’s about a 5% dividend yield based on the company’s current stock price.
Billboard Insider’s Take: Tripling the dividend is a great signal that OUTFRONT is back from covid. The market liked the news. OUTFRONT rose 7% to $25.14 in after hours trading.
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