UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, ~~2021~~2022

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

Commission File Number: 001-36367

OUTFRONT Media Inc.

(Exact name of registrant as specified in its charter)


Maryland		46-4494703
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

405 Lexington Avenue, 17th Floor
New York,	NY	10174
(Address of principal executive offices)		(Zip Code)

(212) 297-6400

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01, par value	OUT	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes ☒ No

As of May ~~4, 2021,~~2, 2022, the number of shares outstanding of the registrant’s common stock was ~~145,539,929.~~164,009,700.

Table of Contents

OUTFRONT MEDIA INC.

QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED MARCH 31, ~~2021~~2022

TABLE OF CONTENTS


PART I			3
Item 1. Financial Statements (Unaudited)			3
Consolidated Statements of Financial Position as of March 31, ~~2021,~~2022, and December 31, ~~2020~~2021			3
Consolidated Statements of Operations for the three months ended March 31, ~~2021~~2022 and ~~2020~~2021			4
Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, ~~2021~~2022 and ~~2020~~2021			5
Consolidated Statements of Equity for the three months ended March 31, ~~2021~~2022 and ~~2020~~2021			6
Consolidated Statements of Cash Flows for the three months ended March 31, ~~2021~~2022 and ~~2020~~2021			7
Notes to Consolidated Financial Statements			9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			2422
Item 3. Quantitative and Qualitative Disclosures About Market Risk			4540
Item 4. Controls and Procedures			4742
PART II			4843
Item 1. Legal Proceedings			4843
Item 1A. Risk Factors			4843
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			4843
Item 3. Defaults Upon Senior Securities			4843
Item 4. Mine Safety Disclosures			4843
Item 5. Other Information			4843
Item 6. Exhibits			4843
SIGNATURES			5045

Table of Contents

PART I

Item 1. Financial Statements.

OUTFRONT Media Inc.

Consolidated Statements of Financial Position

(Unaudited)


		As of					As of
(in millions)	(in millions)	March 31, 2021		December 31, 2020		(in millions)	March 31, 2022		December 31, 2021
Assets:	Assets:					Assets:
Current assets:	Current assets:					Current assets:
Cash and cash equivalents	Cash and cash equivalents	$	560.0	$	710.4	Cash and cash equivalents	$	355.7	$	424.8
Restricted cash		1.6		1.6
Receivables, less allowance ($22.7 in 2021 and $26.3 in 2020)		164.9		209.2
Receivables, less allowance ($20.3 in 2022 and $18.5 in 2021)						Receivables, less allowance ($20.3 in 2022 and $18.5 in 2021)	265.0		310.5
Prepaid lease and franchise costs	Prepaid lease and franchise costs	9.1		5.4		Prepaid lease and franchise costs	10.3		12.5

Other prepaid expenses	Other prepaid expenses	13.9		14.4		Other prepaid expenses	18.5		17.8
Other current assets	Other current assets	28.0		33.7		Other current assets	11.2		11.7
Total current assets	Total current assets	777.5		974.7		Total current assets	660.7		777.3
Property and equipment, net (Note 4)	Property and equipment, net (Note 4)	629.2		634.2		Property and equipment, net (Note 4)	652.1		647.9
Goodwill	Goodwill	2,078.0		2,077.8		Goodwill	2,078.3		2,077.8
Intangible assets (Note 5)	Intangible assets (Note 5)	545.8		547.5		Intangible assets (Note 5)	609.5		614.9
Operating lease assets (Note 6)	Operating lease assets (Note 6)	1,437.7		1,421.3		Operating lease assets (Note 6)	1,503.5		1,485.5
Prepaid MTA equipment deployment costs (Note 18)	Prepaid MTA equipment deployment costs (Note 18)	208.2		204.6		Prepaid MTA equipment deployment costs (Note 18)	295.2		279.8
Other assets	Other assets	37.5		36.8		Other assets	43.7		41.5
Total assets	Total assets	$	5,713.9	$	5,896.9	Total assets	$	5,843.0	$	5,924.7

Liabilities:	Liabilities:					Liabilities:
Current liabilities:	Current liabilities:					Current liabilities:
Accounts payable	Accounts payable	$	56.8	$	64.9	Accounts payable	$	52.6	$	64.9
Accrued compensation	Accrued compensation	30.9		35.0		Accrued compensation	43.2		74.5
Accrued interest	Accrued interest	17.5		24.5		Accrued interest	17.4		30.7
Accrued lease and franchise costs	Accrued lease and franchise costs	39.1		65.8		Accrued lease and franchise costs	50.1		60.1
Other accrued expenses	Other accrued expenses	40.0		38.0		Other accrued expenses	46.6		40.3
Deferred revenues	Deferred revenues	42.3		29.5		Deferred revenues	43.0		30.9

Short-term debt (Note 9)		0		80.0

Short-term operating lease liabilities (Note 6)	Short-term operating lease liabilities (Note 6)	185.7		176.5		Short-term operating lease liabilities (Note 6)	194.3		187.5
Other current liabilities	Other current liabilities	20.4		20.7		Other current liabilities	18.6		18.8
Total current liabilities	Total current liabilities	432.7		534.9		Total current liabilities	465.8		507.7
Long-term debt, net (Note 9)	Long-term debt, net (Note 9)	2,616.6		2,620.8		Long-term debt, net (Note 9)	2,621.9		2,620.6
Deferred income tax liabilities, net	Deferred income tax liabilities, net	13.2		14.6		Deferred income tax liabilities, net	18.5		17.2
Asset retirement obligation (Note 7)	Asset retirement obligation (Note 7)	36.1		35.9		Asset retirement obligation (Note 7)	36.9		36.4
Operating lease liabilities (Note 6)	Operating lease liabilities (Note 6)	1,258.4		1,252.0		Operating lease liabilities (Note 6)	1,319.4		1,308.4
Other liabilities	Other liabilities	52.7		55.0		Other liabilities	41.6		43.9
Total liabilities	Total liabilities	4,409.7		4,513.2		Total liabilities	4,504.1		4,534.2

Commitments and contingencies (Note 18)	Commitments and contingencies (Note 18)	0		0		Commitments and contingencies (Note 18)	0		0

Preferred stock (2021 - 50.0 shares authorized, and 0.4 shares of Series A Preferred Stock issued and outstanding; 2020 - 50.0 shares authorized, and 0.4 shares of Series A Preferred Stock issued and outstanding) (Note 10)		383.4		383.4
Preferred stock (2022 - 50.0 shares authorized, and 0.1 shares of Series A Preferred Stock issued and outstanding; 2021 - 50.0 shares authorized, and 0.4 shares of Series A Preferred Stock issued and outstanding) (Note 10)						Preferred stock (2022 - 50.0 shares authorized, and 0.1 shares of Series A Preferred Stock issued and outstanding; 2021 - 50.0 shares authorized, and 0.4 shares of Series A Preferred Stock issued and outstanding) (Note 10)	119.8		383.4
Stockholders’ equity (Note 10):	Stockholders’ equity (Note 10):					Stockholders’ equity (Note 10):
Common stock (2021 - 450.0 shares authorized, and 145.5 shares issued and outstanding; 2020 - 450.0 shares authorized, and 144.5 issued and outstanding)		1.5		1.4
Common stock (2022 - 450.0 shares authorized, and 164.0 shares issued and outstanding; 2021 - 450.0 shares authorized, and 145.6 issued and outstanding)						Common stock (2022 - 450.0 shares authorized, and 164.0 shares issued and outstanding; 2021 - 450.0 shares authorized, and 145.6 issued and outstanding)	1.6		1.5
Additional paid-in capital	Additional paid-in capital	2,095.5		2,090.8		Additional paid-in capital	2,391.3		2,119.0
Distribution in excess of earnings	Distribution in excess of earnings	(1,175.1)		(1,100.4)		Distribution in excess of earnings	(1,176.8)		(1,122.0)
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(15.5)		(18.0)		Accumulated other comprehensive loss	(1.4)		(4.4)
Total stockholders’ equity	Total stockholders’ equity	906.4		973.8		Total stockholders’ equity	1,214.7		994.1
Non-controlling interests	Non-controlling interests	14.4		26.5		Non-controlling interests	4.4		13.0
Total equity	Total equity	1,304.2		1,383.7		Total equity	1,338.9		1,390.5
Total liabilities and equity	Total liabilities and equity	$	5,713.9	$	5,896.9	Total liabilities and equity	$	5,843.0	$	5,924.7

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

OUTFRONT Media Inc.

Consolidated Statements of Operations

(Unaudited)


		Three Months Ended						Three Months Ended
		March 31,						March 31,
(in millions, except per share amounts)	(in millions, except per share amounts)		2021		2020		(in millions, except per share amounts)		2022		2021
Revenues:	Revenues:						Revenues:
Billboard	Billboard		$	223.6	$	270.9	Billboard		$	298.2	$	223.6
Transit and other	Transit and other		35.6		114.4		Transit and other		75.3		35.6
Total revenues	Total revenues		259.2		385.3		Total revenues		373.5		259.2
Expenses:	Expenses:						Expenses:
Operating	Operating		177.6		224.8		Operating		212.8		177.6
Selling, general and administrative	Selling, general and administrative		76.5		90.8		Selling, general and administrative		98.4		76.5

Net gain on dispositions	Net gain on dispositions		(0.3)		(0.1)		Net gain on dispositions		(0.3)		(0.3)
Depreciation	Depreciation		20.0		21.0		Depreciation		19.3		20.0
Amortization	Amortization		16.4		15.0		Amortization		14.8		16.4
Total expenses	Total expenses		290.2		351.5		Total expenses		345.0		290.2
Operating income (loss)	Operating income (loss)		(31.0)		33.8		Operating income (loss)		28.5		(31.0)
Interest expense, net	Interest expense, net		(34.6)		(29.8)		Interest expense, net		(30.7)		(34.6)
Loss on extinguishment of debt	Loss on extinguishment of debt		(6.3)		0		Loss on extinguishment of debt		—		(6.3)
Other income, net			0		0.2
Income (loss) before benefit for income taxes and equity in earnings of investee companies			(71.9)		4.2
Other loss, net							Other loss, net		(0.1)		—
Loss before benefit for income taxes and equity in earnings of investee companies							Loss before benefit for income taxes and equity in earnings of investee companies		(2.3)		(71.9)
Benefit for income taxes	Benefit for income taxes		4.7		1.7		Benefit for income taxes		2.1		4.7
Equity in earnings of investee companies, net of tax	Equity in earnings of investee companies, net of tax		(0.4)		0.4		Equity in earnings of investee companies, net of tax		0.3		(0.4)
Net income (loss) before allocation to non-controlling interests	Net income (loss) before allocation to non-controlling interests		(67.6)		6.3		Net income (loss) before allocation to non-controlling interests		0.1		(67.6)
Net income attributable to non-controlling interests	Net income attributable to non-controlling interests		0.1		0.2		Net income attributable to non-controlling interests		0.2		0.1
Net income (loss) attributable to OUTFRONT Media Inc.			$	(67.7)	$	6.1
Net loss attributable to OUTFRONT Media Inc.							Net loss attributable to OUTFRONT Media Inc.		$	(0.1)	$	(67.7)

Net income (loss) per common share:
Net loss per common share:							Net loss per common share:
Basic	Basic		$	(0.52)	$	0.04	Basic		$	(0.04)	$	(0.52)
Diluted	Diluted		$	(0.52)	$	0.04	Diluted		$	(0.04)	$	(0.52)

Weighted average shares outstanding:	Weighted average shares outstanding:						Weighted average shares outstanding:
Basic	Basic		144.8		143.9		Basic		152.0		144.8
Diluted	Diluted		144.8		144.7		Diluted		152.0		144.8

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

OUTFRONT Media Inc.

Consolidated Statements of Comprehensive ~~Loss~~Income (Loss)

(Unaudited)


		Three Months Ended						Three Months Ended
		March 31,						March 31,
(in millions)	(in millions)		2021		2020		(in millions)		2022		2021
Net income (loss) before allocation to non-controlling interests	Net income (loss) before allocation to non-controlling interests		$	(67.6)	$	6.3	Net income (loss) before allocation to non-controlling interests		$	0.1	$	(67.6)
Net income attributable to non-controlling interests	Net income attributable to non-controlling interests		0.1		0.2		Net income attributable to non-controlling interests		0.2		0.1
Net income (loss) attributable to OUTFRONT Media Inc.			(67.7)		6.1
Other comprehensive loss, net of tax:
Net loss attributable to OUTFRONT Media Inc.							Net loss attributable to OUTFRONT Media Inc.		(0.1)		(67.7)
Other comprehensive income, net of tax:							Other comprehensive income, net of tax:
Cumulative translation adjustments	Cumulative translation adjustments		1.3		(10.5)		Cumulative translation adjustments		2.7		1.3
Net actuarial gain			0		0.7

Change in fair value of interest rate swap agreements	Change in fair value of interest rate swap agreements		1.2		(4.3)		Change in fair value of interest rate swap agreements		0.3		1.2
Total other comprehensive loss, net of tax			2.5		(14.1)
Total comprehensive loss			$	(65.2)	$	(8.0)
Total other comprehensive income, net of tax							Total other comprehensive income, net of tax		3.0		2.5
Total comprehensive income (loss)							Total comprehensive income (loss)		$	2.9	$	(65.2)

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

OUTFRONT Media Inc.

Consolidated Statements of Equity

(Unaudited)

Stockholders’ Equity
(in millions, except per share amounts) Shares of Common Stock Common Stock ($0.01 per share par value) Additional Paid-In Capital Distribution in Excess of Earnings Accumulated Other Comprehensive Loss Total Stockholders’ Equity Non-Controlling Interests Total Equity
Balance as of December 31, 2019 143.6 $ 1.4 $ 2,074.7 $ (964.6) $ (17.7) $ 1,093.8 $ 32.6 $ 1,126.4
Net income — — — 6.1 — 6.1 0.2 6.3
Other comprehensive loss — — — — (14.1) (14.1) — (14.1)
Stock-based payments:
Vested 1.0 — — — — — — —
Amortization — — 5.8 — — 5.8 — 5.8
Shares paid for tax withholding for stock-based payments (0.4) — (12.1) — — (12.1) — (12.1)
Class A equity interest redemptions 0.2 — 4.4 — — 4.4 (4.4) —
Dividends ($0.38 per share) — — — (55.3) — (55.3) — (55.3)
Balance as of March 31, 2020 144.4 $ 1.4 $ 2,072.8 $ (1,013.8) $ (31.8) $ 1,028.6 $ 28.4 $ 1,057.0


					Stockholders’ Equity																			Stockholders’ Equity
(in millions, except per share amounts)	(in millions, except per share amounts)	Shares of Series A Preferred Stock	Series A Preferred Stock ($0.01 per share par value)		Shares of Common Stock	Common Stock ($0.01 per share par value)		Additional Paid-In Capital		Distribution in Excess of Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity		Non-Controlling Interests		Total Equity		(in millions, except per share amounts)	Shares of Series A Preferred Stock	Series A Preferred Stock ($0.01 per share par value)		Shares of Common Stock	Common Stock ($0.01 per share par value)		Additional Paid-In Capital		Distribution in Excess of Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity		Non-Controlling Interests		Total Equity
Balance as of December 31, 2020	Balance as of December 31, 2020	0.4	$	383.4	144.5	$	1.4	$	2,090.8	$	(1,100.4)	$	(18.0)	$	973.8	$	26.5	$	1,383.7	Balance as of December 31, 2020	0.4	$	383.4	144.5	$	1.4	$	2,090.8	$	(1,100.4)	$	(18.0)	$	973.8	$	26.5	$	1,383.7
Net loss		—	—		—	—		—		(67.7)		—		(67.7)		0.1		(67.6)
Other comprehensive loss		—	—		—	—		—		—		2.5		2.5		—		2.5
Net income (loss)																				Net income (loss)	—	—		—	—		—		(67.7)		—		(67.7)		0.1		(67.6)
Other comprehensive income																				Other comprehensive income	—	—		—	—		—		—		2.5		2.5		—		2.5
Stock-based payments:	Stock-based payments:																			Stock-based payments:
Vested	Vested	—	—		1.0	0.1		—		—		—		0.1		—		0.1		Vested	—	—		1.0	0.1		—		—		—		0.1		—		0.1
Amortization	Amortization	—	—		—	—		6.0		—		—		6.0		—		6.0		Amortization	—	—		—	—		6.0		—		—		6.0		—		6.0
Shares paid for tax withholding for stock-based payments	Shares paid for tax withholding for stock-based payments	—	—		(0.5)	—		(8.7)		—		—		(8.7)		—		(8.7)		Shares paid for tax withholding for stock-based payments	—	—		(0.5)	—		(8.7)		—		—		(8.7)		—		(8.7)

Class A equity interest redemptions	Class A equity interest redemptions	—	—		0.5	—		10.7		—		—		10.7		(10.7)		—		Class A equity interest redemptions	—	—		0.5	—		10.7		—		—		10.7		(10.7)		—
Series A Preferred Stock dividends (7%)	Series A Preferred Stock dividends (7%)	—	—		—	—		—		(7.0)		—		(7.0)		—		(7.0)		Series A Preferred Stock dividends (7%)	—	—		—	—		—		(7.0)		—		(7.0)		—		(7.0)

Other	Other	—	—		—	—		(3.3)		—		—		(3.3)		(1.5)		(4.8)		Other	—	—		—	—		(3.3)		—		—		(3.3)		(1.5)		(4.8)
Balance as of March 31, 2021	Balance as of March 31, 2021	0.4	$	383.4	145.5	$	1.5	$	2,095.5	$	(1,175.1)	$	(15.5)	$	906.4	$	14.4	$	1,304.2	Balance as of March 31, 2021	0.4	$	383.4	145.5	$	1.5	$	2,095.5	$	(1,175.1)	$	(15.5)	$	906.4	$	14.4	$	1,304.2

Balance as of December 31, 2021																				Balance as of December 31, 2021	0.4	$	383.4	145.6	$	1.5	$	2,119.0	$	(1,122.0)	$	(4.4)	$	994.1	$	13.0	$	1,390.5
Net income (loss)																				Net income (loss)	—	—		—	—		—		(0.1)		—		(0.1)		0.2		0.1
Other comprehensive income																				Other comprehensive income	—	—		—	—		—		—		3.0		3.0		—		3.0
Stock-based payments:																				Stock-based payments:
Vested																				Vested	—	—		1.0	—		—		—		—		—		—		—
Amortization																				Amortization	—	—		—	—		7.9		—		—		7.9		—		7.9
Shares paid for tax withholding for stock-based payments																				Shares paid for tax withholding for stock-based payments	—	—		(0.4)	—		(10.9)		—		—		(10.9)		—		(10.9)
Series A Preferred Stock conversions																				Series A Preferred Stock conversions	(0.3)	(266.8)		17.4	0.1		266.7		—		—		266.8		—		—
Class A equity interest redemptions																				Class A equity interest redemptions	—	—		0.4	—		8.6		—		—		8.6		(8.6)		—
Series A Preferred Stock dividends (7%)																				Series A Preferred Stock dividends (7%)	—	3.2		—	—		—		(5.4)		—		(5.4)		—		(2.2)
Dividends ($0.30 per share)																				Dividends ($0.30 per share)	—	—		—	—		—		(49.3)		—		(49.3)		—		(49.3)
Other																				Other	—	—		—	—		—		—		—		—		(0.2)		(0.2)
Balance as of March 31, 2022																				Balance as of March 31, 2022	0.1	$	119.8	164.0	$	1.6	$	2,391.3	$	(1,176.8)	$	(1.4)	$	1,214.7	$	4.4	$	1,338.9

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

OUTFRONT Media Inc.

Consolidated Statements of Cash Flows

(Unaudited)


		Three Months Ended					Three Months Ended
		March 31,					March 31,
(in millions)	(in millions)	2021		2020		(in millions)	2022		2021
Operating activities:	Operating activities:					Operating activities:
Net income (loss) attributable to OUTFRONT Media Inc.		$	(67.7)	$	6.1
Adjustments to reconcile net income (loss) to net cash flow provided by (used for) operating activities:
Net loss attributable to OUTFRONT Media Inc.						Net loss attributable to OUTFRONT Media Inc.	$	(0.1)	$	(67.7)
Adjustments to reconcile net loss to net cash flow provided by (used for) operating activities:						Adjustments to reconcile net loss to net cash flow provided by (used for) operating activities:
Net income attributable to non-controlling interests	Net income attributable to non-controlling interests	0.1		0.2		Net income attributable to non-controlling interests	0.2		0.1
Depreciation and amortization	Depreciation and amortization	36.4		36.0		Depreciation and amortization	34.1		36.4
Deferred tax benefit	Deferred tax benefit	(5.2)		(1.8)		Deferred tax benefit	(1.3)		(5.2)
Stock-based compensation	Stock-based compensation	6.0		5.8		Stock-based compensation	7.9		6.0
Provision for doubtful accounts		(2.8)		8.1
Provision (recovery) for doubtful accounts						Provision (recovery) for doubtful accounts	1.7		(2.8)
Accretion expense	Accretion expense	0.7		0.6		Accretion expense	0.7		0.7
Net gain on dispositions	Net gain on dispositions	(0.3)		(0.1)		Net gain on dispositions	(0.3)		(0.3)
Loss on extinguishment of debt	Loss on extinguishment of debt	6.3		0		Loss on extinguishment of debt	—		6.3
Equity in earnings of investee companies, net of tax	Equity in earnings of investee companies, net of tax	0.4		(0.4)		Equity in earnings of investee companies, net of tax	(0.3)		0.4
Distributions from investee companies	Distributions from investee companies	0.3		1.2		Distributions from investee companies	0.3		0.3
Amortization of deferred financing costs and debt discount and premium	Amortization of deferred financing costs and debt discount and premium	1.9		1.3		Amortization of deferred financing costs and debt discount and premium	1.6		1.9
Change in assets and liabilities, net of investing and financing activities:	Change in assets and liabilities, net of investing and financing activities:					Change in assets and liabilities, net of investing and financing activities:
Decrease in receivables	Decrease in receivables	47.2		19.7		Decrease in receivables	44.1		47.2
Increase in prepaid MTA equipment deployment costs	Increase in prepaid MTA equipment deployment costs	(3.6)		(18.2)		Increase in prepaid MTA equipment deployment costs	(15.4)		(3.6)
(Increase) decrease in prepaid expenses and other current assets		1.2		(2.8)
Decrease in prepaid expenses and other current assets						Decrease in prepaid expenses and other current assets	3.4		1.2
Decrease in accounts payable and accrued expenses	Decrease in accounts payable and accrued expenses	(46.1)		(46.0)		Decrease in accounts payable and accrued expenses	(64.2)		(46.1)
Increase in operating lease assets and liabilities	Increase in operating lease assets and liabilities	0.4		1.3		Increase in operating lease assets and liabilities	1.7		0.4
Increase in deferred revenues	Increase in deferred revenues	12.8		11.1		Increase in deferred revenues	12.1		12.8
Decrease in income taxes	Decrease in income taxes	(0.1)		(0.7)		Decrease in income taxes	(3.0)		(0.1)
Other, net	Other, net	1.3		(6.5)		Other, net	(2.7)		1.3
Net cash flow provided by (used for) operating activities	Net cash flow provided by (used for) operating activities	(10.8)		14.9		Net cash flow provided by (used for) operating activities	20.5		(10.8)

Investing activities:	Investing activities:					Investing activities:
Capital expenditures	Capital expenditures	(9.4)		(18.2)		Capital expenditures	(16.9)		(9.4)
Acquisitions	Acquisitions	(15.8)		(6.6)		Acquisitions	(9.6)		(15.8)
MTA franchise rights	MTA franchise rights	(4.2)		(2.8)		MTA franchise rights	(2.1)		(4.2)
Net proceeds from dispositions	Net proceeds from dispositions	1.1		0.3		Net proceeds from dispositions	0.8		1.1
Return of investment in investee companies		0		0.6

Net cash flow used for investing activities	Net cash flow used for investing activities	(28.3)		(26.7)		Net cash flow used for investing activities	(27.8)		(28.3)

Financing activities:	Financing activities:					Financing activities:
Proceeds from long-term debt borrowings	Proceeds from long-term debt borrowings	500.0		495.0		Proceeds from long-term debt borrowings	—		500.0
Repayments of long-term debt borrowings	Repayments of long-term debt borrowings	(500.0)		0		Repayments of long-term debt borrowings	—		(500.0)
Proceeds from borrowings under short-term debt facilities		0		15.0

Repayments of borrowings under short-term debt facilities	Repayments of borrowings under short-term debt facilities	(80.0)		0		Repayments of borrowings under short-term debt facilities	—		(80.0)
Payments of deferred financing costs	Payments of deferred financing costs	(7.1)		(0.4)		Payments of deferred financing costs	—		(7.1)
Payments of debt extinguishment charges	Payments of debt extinguishment charges	(4.7)		0		Payments of debt extinguishment charges	—		(4.7)

Taxes withheld for stock-based compensation	Taxes withheld for stock-based compensation	(8.8)		(11.8)		Taxes withheld for stock-based compensation	(10.9)		(8.8)
Dividends	Dividends	(7.3)		(55.6)		Dividends	(51.5)		(7.3)
Other	Other	(3.7)		0		Other	—		(3.7)
Net cash flow provided by (used for) financing activities		(111.6)		442.2
Net cash flow used for financing activities						Net cash flow used for financing activities	(62.4)		(111.6)
Effect of exchange rate changes on cash, cash equivalents and restricted cash						Effect of exchange rate changes on cash, cash equivalents and restricted cash	0.6		0.3
Net decrease in cash, cash equivalents and restricted cash						Net decrease in cash, cash equivalents and restricted cash	(69.1)		(150.4)
Cash, cash equivalents and restricted cash at beginning of period						Cash, cash equivalents and restricted cash at beginning of period	424.8		712.0
Cash, cash equivalents and restricted cash at end of period						Cash, cash equivalents and restricted cash at end of period	$	355.7	$	561.6

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OUTFRONT Media Inc.

Consolidated Statements of Cash Flows (Continued)

(Unaudited)


		Three Months Ended					Three Months Ended
		March 31,					March 31,
(in millions)	(in millions)	2021		2020		(in millions)	2022		2021
Effect of exchange rate changes on cash, cash equivalents and restricted cash		0.3		(1.7)
Net increase (decrease) in cash, cash equivalents and restricted cash		(150.4)		428.7
Cash, cash equivalents and restricted cash at beginning of period		712.0		60.9
Cash, cash equivalents and restricted cash at end of period		$	561.6	$	489.6

Supplemental disclosure of cash flow information:	Supplemental disclosure of cash flow information:					Supplemental disclosure of cash flow information:
Cash paid for income taxes	Cash paid for income taxes	$	0.5	$	0.8	Cash paid for income taxes	$	2.1	$	0.5
Cash paid for interest	Cash paid for interest	39.9		37.5		Cash paid for interest	42.6		39.9

Non-cash investing and financing activities:	Non-cash investing and financing activities:					Non-cash investing and financing activities:
Accrued purchases of property and equipment	Accrued purchases of property and equipment	$	3.8	$	9.7	Accrued purchases of property and equipment	$	7.3	$	3.8
Accrued MTA franchise rights	Accrued MTA franchise rights	7.0		5.0		Accrued MTA franchise rights	3.8		7.0

Taxes withheld for stock-based compensation	Taxes withheld for stock-based compensation	0		0.2		Taxes withheld for stock-based compensation	0.1		—

See accompanying notes to unaudited consolidated financial statements.

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OUTFRONT Media Inc.

Notes to Consolidated Financial Statements

(Unaudited)

Note 1. Description of Business and Basis of Presentation

Description of Business

OUTFRONT Media Inc. (the “Company”) and its subsidiaries (collectively, “we,” “us” or “our”) is a real estate investment trust (“REIT”), which provides advertising space (“displays”) on out-of-home advertising structures and sites in the United States (the “U.S.”) and Canada. Our inventory consists of billboard displays, which are primarily located on the most heavily traveled highways and roadways in top Nielsen Designated Market Areas (“DMAs”), and transit advertising displays operated under exclusive multi-year contracts with municipalities in large cities across the U.S. and Canada. In total, we have displays in all of the 25 largest markets in the U.S. and approximately 150 markets across the U.S. and Canada. We currently manage our operations through 2 operating segments—U.S. Billboard and Transit, which is included in our U.S. Media reportable segment, and International.

In the third quarter of 2020, we sold all of our equity interests in certain of our subsidiaries (the “Sports Disposition”), which held all of the assets of our Sports Marketing operating segment, for a purchase price of approximately $34.6 million in cash, subject to closing and post-closing adjustments. The Sports Marketing operating segment was the marketing and multimedia rights holder for a variety of colleges, universities and other educational institutions across the United States. The operating results of our Sports Marketing operating segment through June 30, 2020, are included in our Consolidated Financial Statements.

Basis of Presentation and Use of Estimates

The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules of the Securities and Exchange Commission (the “SEC”). In the opinion of our management, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting of normal and recurring adjustments, necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. Certain reclassifications of prior year’s data have been made to conform to the current period’s presentation. Consistent with 2021, amortization of direct lease acquisition costs previously reported in ~~Amortization~~ ~~have been reclassified to conform with the current period’s presentation. The impact of the reclassification is a decrease in~~ ~~Amortization~~ ~~of $11.3 million in the three months ended March 31, 2020, and a corresponding increase in~~ ~~Selling, general and administrative~~ ~~expenses (“SG&A”) on the Consolidated Statement of Operations.~~ These financial statements should be read in conjunction with the more detailed financial statements and notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, filed with the SEC on February ~~26, 2021.~~24, 2022.

The preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, including the impact of extraordinary events such as the ongoing novel coronavirus (“COVID-19”) pandemic, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates under different assumptions or conditions, including the severity and duration of the COVID-19 pandemic.

The COVID-19 pandemic and the related preventative measures taken to help curb the spread, have had, and may continue to have, a significant impact on the global economy and our business. Given the uncertainty around the severity and duration of the COVID-19 pandemic and the measures taken, or may be taken, in response to the COVID-19 pandemic, the Company cannot reasonably estimate the full impact of the COVID-19 pandemic on our business, financial condition and results of operations at this time, which may be material.

Note 2. New Accounting Standards

~~Adoption of New Accounting Standards~~

In the first quarter of 2021, we adopted the Financial Accounting Standards Board’s (the “FASB’s”) guidance for simplifying the accounting for income taxes by removing certain exceptions to the general principles of Accounting Standards Codification Topic 740, ~~Income Taxes. The adoption of this guidance did not have a material effect on our consolidated financial statements.~~

~~Table of Contents~~

~~OUTFRONT Media Inc.~~

~~Notes to Consolidated Financial Statements~~

~~(Unaudited)~~

Recent Pronouncements

In March 2020, the ~~FASB~~Financial Accounting Standards Board (“FASB”) issued guidance providing optional expedients and exceptions for accounting for contracts, hedging relationships and other transactions that reference to the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. The guidance is effective for all entities as of March 12, 2020, through December 31, 2022. We do not expect this guidance to impact our accounting for our existing debt and hedging instruments.

In October 2021, the FASB issued guidance on the recognition and measurement of contract assets and contract liabilities acquired in a business combination. At the acquisition date, the acquirer should account for the related revenue contracts as if it had originated the contracts. The guidance also provides certain practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a business combination. This guidance is effective for public entities as of December 15, 2022. We are currently evaluating the impact of this guidance on our consolidated financial statements.

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OUTFRONT Media Inc.

Notes to Consolidated Financial Statements

(Unaudited)

Note 3. Restricted Cash

~~We have an~~In August 2021, the escrow agreement in connection with one of our transit franchise contracts, which ~~requires~~required us to deposit funds into an escrow account to fund capital expenditures over the term of the transit franchise ~~contract.~~contract, was terminated. As of March 31, ~~2021,~~2022, we have ~~$1.6 million of~~no restricted ~~cash deposited in the escrow account.~~cash.


		As of							As of
(in millions)	(in millions)	March 31, 2021		March 31, 2020		December 31, 2020		(in millions)	March 31, 2022		March 31, 2021		December 31, 2021
Cash and cash equivalents	Cash and cash equivalents	$	560.0	$	487.8	$	710.4	Cash and cash equivalents	$	355.7	$	560.0	$	424.8
Restricted cash	Restricted cash	1.6		1.8		1.6		Restricted cash	—		1.6		—
Cash, cash equivalents and restricted cash	Cash, cash equivalents and restricted cash	$	561.6	$	489.6	$	712.0	Cash, cash equivalents and restricted cash	$	355.7	$	561.6	$	424.8

Note 4. Property and Equipment, Net

The table below presents the balances of major classes of assets and accumulated depreciation.


			As of						As of
(in millions)	(in millions)	Estimated Useful Lives	March 31, 2021		December 31, 2020		(in millions)	Estimated Useful Lives	March 31, 2022		December 31, 2021
Land	Land		$	102.6	$	98.0	Land		$	103.3	$	102.9
Buildings	Buildings	20 to 40 years	48.6		48.3		Buildings	15 to 35 years	50.6		50.3
Advertising structures	Advertising structures	5 to 20 years	1,908.3		1,897.7		Advertising structures	3 to 20 years	1,953.6		1,937.4
Furniture, equipment and other	Furniture, equipment and other	3 to 10 years	170.7		168.5		Furniture, equipment and other	3 to 10 years	175.6		171.3
Construction in progress	Construction in progress		24.1		25.1		Construction in progress		47.8		38.7
			2,254.3		2,237.6				2,330.9		2,300.6
Less: Accumulated depreciation	Less: Accumulated depreciation		1,625.1		1,603.4		Less: Accumulated depreciation		1,678.8		1,652.7
Property and equipment, net	Property and equipment, net		$	629.2	$	634.2	Property and equipment, net		$	652.1	$	647.9

Depreciation expense was $19.3 million in the three months ended March 31, 2022, and $20.0 million in the three months ended March 31, ~~2021, and $21.0 million in the three months ended March 31, 2020.~~2021.

Note 5. Intangible Assets

Our identifiable intangible assets primarily consist of acquired permits and leasehold agreements, and franchise agreements, which grant us the right to operate out-of-home structures in specified locations and the right to provide advertising space on railroad and municipal transit properties. Identifiable intangible assets are amortized on a straight-line basis over their estimated useful life, which is the respective life of the agreement that in some cases includes historical experience of renewals.

Our identifiable intangible assets consist of the following:


(in millions)	Gross		Accumulated Amortization		Net
As of March 31, 2022:
Permits and leasehold agreements	$	1,311.8	$	(828.3)	$	483.5
Franchise agreements	529.3		(405.4)		123.9
Other intangible assets	4.9		(2.8)		2.1
Total intangible assets	$	1,846.0	$	(1,236.5)	$	609.5

As of December 31, 2021:
Permits and leasehold agreements	$	1,303.6	$	(816.5)	$	487.1
Franchise agreements	528.2		(402.7)		125.5
Other intangible assets	4.9		(2.6)		2.3
Total intangible assets	$	1,836.7	$	(1,221.8)	$	614.9

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OUTFRONT Media Inc.

Notes to Consolidated Financial Statements

(Unaudited)

~~Our identifiable~~

In the three months ended March 31, 2022, we acquired 15 displays, resulting in amortizable intangible assets ~~consist~~for permits and leasehold agreements of $6.1 million, which are amortized using the ~~following:~~

(in millions) Gross Accumulated Amortization Net
As of March 31, 2021:
Permits and leasehold agreements $ 1,200.4 $ (787.9) $ 412.5
Franchise agreements 519.1 (388.6) 130.5
Other intangible assets 22.1 (19.3) 2.8
Total intangible assets $ 1,741.6 $ (1,195.8) $ 545.8
As of December 31, 2020:
Permits and leasehold agreements $ 1,190.0 $ (777.1) $ 412.9
Franchise agreements 514.7 (383.7) 131.0
Other intangible assets 45.8 (42.2) 3.6
Total intangible assets $ 1,750.5 $ (1,203.0) $ 547.5
straight-line method over their estimated useful lives, an average period of 13.4 years.

All of our intangible assets, except goodwill, are subject to amortization. Amortization expense was $14.8 million in the three months ended March 31, 2022, and $16.4 million in the three months ended March 31, ~~2021, and $15.0 million in the three months ended March 31, 2020.~~2021.

Note 6. Leases

Lessee

As of March 31, ~~2021,~~2022, we have operating lease assets of ~~$1.4~~$1.5 billion, short-term operating lease liabilities of ~~$185.7~~$194.3 million and non-current operating lease liabilities of $1.3 billion. As of December 31, ~~2020,~~2021, we had operating lease assets of ~~$1.4~~$1.5 billion, short-term operating lease liabilities of ~~$176.5~~$187.5 million and non-current operating lease liabilities of $1.3 billion. As of March 31, 2022, the weighted-average remaining lease term was 10.7 years and the weighted-average discount rate was 5.2%. As of December 31, 2021, the weighted-average remaining lease term was 10.5 years and the weighted-average discount rate was ~~5.4%~~5.2%.

For the three months ended March 31, 2022, we recorded operating lease costs of $106.7 million in Operating expenses and $2.7 million in Selling, general and administrative expenses. For the three months ended March 31, 2022, these costs include $25.0 million of variable operating lease costs. For the three months ended March 31, 2021, we recorded operating lease costs of $93.7 million in Operating expenses and $2.1 million in Selling, general and administrative expenses. For the three months ended March 31, 2021, these costs include $13.9 million of variable operating lease costs. For ~~the three months ended March 31, 2020, we recorded operating lease costs of $102.5 million in~~ ~~Operating expenses~~ ~~and $2.2 million in~~ ~~Selling, general and administrative~~ ~~expenses. For the three months ended March 31, 2020, these costs include $22.1 million of variable operating lease costs. For~~ each of the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, sublease income was immaterial.

For the three months ended March 31, 2022, cash paid for operating leases was $118.4 million and leased assets obtained in exchange for new operating lease liabilities was $81.9 million. For the three months ended March 31, 2021, cash paid for operating leases was $97.9 million and leased assets obtained in exchange for new operating lease liabilities was $69.1 million. ~~For the three months ended March 31, 2020, cash paid for operating leases was $108.6 million and leased assets obtained in exchange for new operating lease liabilities was $77.2 million.~~

Lessor

We recorded rental income of $288.3 million for the three months ended March 31, 2022, and $215.8 million for the three months ended March 31, 2021, ~~and $262.3 million for the three months ended March 31, 2020,~~ in Revenues on our Consolidated Statement of Operations.

~~Table of Contents~~

~~OUTFRONT Media Inc.~~

~~Notes to Consolidated Financial Statements~~

~~(Unaudited)~~

Note 7. Asset Retirement Obligation

The following table sets forth the change in the asset retirement obligations associated with our advertising structures located on leased properties. The obligation is calculated based on the assumption that all of our advertising structures will be removed within the next 50 years. The estimated annual costs to dismantle and remove the structures upon the termination or non-renewal of our leases are consistent with our historical experience.


(in millions)
As of December 31, ~~2020~~2021	$	~~35.9~~36.4
Accretion expense	0.7
Additions	0.1
Liabilities settled	~~(0.6)~~(0.4)
Foreign currency translation adjustments	0.1
As of March 31, ~~2021~~2022	$	~~36.1~~36.9

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OUTFRONT Media Inc.

Notes to Consolidated Financial Statements

(Unaudited)

Note 8. Related Party Transactions

We have a 50% ownership interest in 2 joint ventures that operate transit shelters in the greater Los Angeles area and Vancouver, and 4 joint ventures which currently operate a total of 7 billboard displays in New York and Boston. All of these joint ventures are accounted for as equity investments. These investments totaled ~~$9.8~~$11.3 million as of March 31, ~~2021,~~2022, and ~~$10.5~~$11.2 million as of December 31, ~~2020,~~2021, and are included in Other assets on the Consolidated Statements of Financial Position. We provided sales and management services to these joint ventures and recorded management fees in Revenues on the Consolidated Statement of Operations of $1.7 million in the three months ended March 31, 2022, and $1.1 million in the three months ended March 31, ~~2021, and $1.5 million in the three months ended March 31, 2020.~~2021.

~~Table of Contents~~

~~OUTFRONT Media Inc.~~

~~Notes to Consolidated Financial Statements~~

~~(Unaudited)~~

Note 9. Debt

Debt, net, consists of the following:


		As of							As of
(in millions, except percentages)	(in millions, except percentages)	March 31, 2021			December 31, 2020			(in millions, except percentages)	March 31, 2022			December 31, 2021
Short-term debt:

Repurchase Facility		$	0		$	80.0
Total short-term debt		0			80.0

Long-term debt:	Long-term debt:							Long-term debt:

Term loan, due 2026	Term loan, due 2026	597.9			597.8			Term loan, due 2026	598.3			598.2

Senior unsecured notes:	Senior unsecured notes:							Senior unsecured notes:
5.625% senior unsecured notes, due 2024		0			501.3
6.250% senior unsecured notes, due 2025	6.250% senior unsecured notes, due 2025	400.0			400.0			6.250% senior unsecured notes, due 2025	400.0			400.0
5.000% senior unsecured notes, due 2027	5.000% senior unsecured notes, due 2027	650.0			650.0			5.000% senior unsecured notes, due 2027	650.0			650.0
4.250% senior unsecured notes, due 2029	4.250% senior unsecured notes, due 2029	500.0			0			4.250% senior unsecured notes, due 2029	500.0			500.0
4.625% senior unsecured notes, due 2030	4.625% senior unsecured notes, due 2030	500.0			500.0			4.625% senior unsecured notes, due 2030	500.0			500.0
Total senior unsecured notes	Total senior unsecured notes	2,050.0			2,051.3			Total senior unsecured notes	2,050.0			2,050.0

Debt issuance costs	Debt issuance costs	(31.3)			(28.3)			Debt issuance costs	(26.4)			(27.6)
Total long-term debt, net	Total long-term debt, net	2,616.6			2,620.8			Total long-term debt, net	2,621.9			2,620.6

Total debt, net	Total debt, net	$	2,616.6		$	2,700.8		Total debt, net	$	2,621.9		$	2,620.6

Weighted average cost of debt	Weighted average cost of debt	4.3		%	4.5		%	Weighted average cost of debt	4.3		%	4.3		%

Term Loan

The interest rate on the term loan due in 2026 (the “Term Loan”) was ~~1.9%~~2.2% per annum as of March 31, ~~2021.~~2022. As of March 31, ~~2021,~~2022, a discount of ~~$2.1~~$1.7 million on the Term Loan remains unamortized. The discount is being amortized through Interest expense, net, on the Consolidated Statement of Operations.

Revolving Credit Facility

We also have a $500.0 million revolving credit facility, which matures in 2024 (the “Revolving Credit Facility,” together with the Term Loan, the “Senior Credit Facilities”).

As of March 31, ~~2021,~~2022, there were 0no outstanding borrowings under the Revolving Credit Facility.

The commitment fee based on the amount of unused commitments under the Revolving Credit Facility was $0.4 million in each of the three months ended March 31, ~~2021,~~2022, and ~~$0.3 million in the three months ended March 31, 2020.~~2021. As of March 31, ~~2021,~~2022, we had issued letters of credit totaling approximately ~~$2.1~~$4.1 million against the letter of credit facility sublimit under the Revolving Credit Facility.

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OUTFRONT Media Inc.

Notes to Consolidated Financial Statements

(Unaudited)

Standalone Letter of Credit Facilities

As of March 31, ~~2021,~~2022, we had issued letters of credit totaling approximately ~~$72.0~~$72.7 million under our aggregate ~~$78.0~~$81.0 million standalone letter of credit facilities. The total fees under the letter of credit facilities were immaterial in each of the three months ended March 31, ~~2021~~2022 and ~~2020.~~

~~Table of Contents~~

~~OUTFRONT Media Inc.~~

~~Notes to Consolidated Financial Statements~~

~~(Unaudited)~~

2021.

Accounts Receivable Securitization ~~Facilities~~Facility

As of March 31, ~~2021,~~2022, we have a revolving accounts receivable securitization facility (the “AR Facility”), which terminates in June 2022, unless further extended, and a 364-day uncommitted structured repurchase facility (the “Repurchase Facility” and together with the AR Facility, the “AR Securitization Facilities”), which terminates in June 2021, unless further extended.

In connection with the AR ~~Securitization Facilities,~~Facility, Outfront Media LLC and Outfront Media Outernet Inc., each a wholly-owned subsidiary of the Company, and certain of the Company’s taxable REIT subsidiaries (“TRSs”) (the “Originators”), will sell and/or contribute their respective existing and future accounts receivable and certain related assets to either Outfront Media Receivables LLC, a special purpose vehicle and wholly-owned subsidiary of the Company relating to the Company’s qualified REIT subsidiary accounts receivable assets (the “QRS SPV”) or Outfront Media Receivables TRS, LLC a special purpose vehicle and wholly-owned subsidiary of the Company relating to the Company’s TRS accounts receivable assets (the “TRS SPV” and together with the QRS SPV, the “SPVs”). The SPVs may transfer undivided interests in their respective accounts receivable assets to certain purchasers from time to time (the “Purchasers”). The SPVs are separate legal entities with their own separate creditors who will be entitled to access the SPVs’ assets before the assets become available to the Company. Accordingly, the SPVs’ assets are not available to pay creditors of the Company or any of its subsidiaries, although collections from the receivables in excess of amounts required to repay the Purchasers and other creditors of the SPVs may be remitted to the Company. Outfront Media LLC will service the accounts receivables on behalf of the SPVs for a fee. The Company has agreed to guarantee the performance of the Originators and Outfront Media LLC, in its capacity as servicer, of their respective obligations under the agreements governing the AR Facility. Neither the Company, the Originators nor the SPVs guarantee the collectability of the receivables under the AR Facility. Further, the TRS SPV and the QRS SPV are jointly and severally liable for their respective obligations under the agreements governing the AR Facility.

In connection with the Repurchase Facility, the Originators may borrow funds collateralized by subordinated notes (the “Subordinated Notes”) issued by the SPVs in favor of their respective Originators and representing a portion of the outstanding balance of the accounts receivable assets sold by the Originators to the SPVs under the AR Facility. The Subordinated Notes will be transferred to MUFG, as repurchase buyer, on an uncommitted basis, and subject to repurchase by the applicable Originators on termination of the Repurchase Facility. The Originators have granted MUFG a security interest in the Subordinated Notes to secure their obligations under the agreements governing the Repurchase Facility, and the Company has agreed to guarantee the Originators’ obligations under the agreements governing the Repurchase Facility.

As of March 31, ~~2021,~~2022, there were 0no outstanding borrowings under ~~either~~ the AR ~~Facility or the Repurchase~~ Facility. As of March 31, ~~2021,~~2022, there was 0no borrowing capacity ~~remaining~~ under the AR Facility ~~based on approximately $207.9 million of accounts receivable used as collateral for the AR Securitization Facilities and~~due to a ~~related~~ voluntary temporary suspension of the AR ~~Facility, and there was $80.0 million of borrowing capacity remaining under the Repurchase~~ Facility in accordance with the agreements governing the AR ~~Securitization Facilities.~~Facility; however, as of March 31, 2022, we had approximately $303.2 million of accounts receivable that could be used as collateral for the AR Facility. The commitment fee based on the amount of unused commitments under the AR Facility was immaterial for each of the three months ended March 31, ~~2021~~2022 and ~~2020.~~

~~Senior Unsecured Notes~~

On January 19, 2021, 2 of our wholly-owned subsidiaries, Outfront Media Capital LLC (“Finance LLC”) and Outfront Media Capital Corporation (“Finance Corp” and, together with Finance LLC, the “Borrowers”) issued $500.0 million aggregate principal amount of 4.250% Senior Unsecured Notes due 2029 (the “2029 Notes”) in a private placement. The 2029 Notes are fully and unconditionally guaranteed on a senior unsecured basis by the Company and each of its direct and indirect domestic subsidiaries that guarantee the Senior Credit Facilities. Interest on the 2029 Notes is payable on January 15 and July 15 of each year, beginning on July 15, 2021. On or after January 15, 2024, the Borrowers may redeem at any time, or from time to time, some or all of the 2029 Notes. Prior to such date, the Borrowers may redeem up to 40% of the aggregate principal amount with the net proceeds of certain equity offerings, provided that at least 50% of the aggregate principal amount of the 2029 Notes will remain outstanding after the redemption.

On February 16, 2021, we used the net proceeds from the issuance of the 2029 Notes, together with cash on hand, to redeem all of our outstanding 5.625% Senior Unsecured Notes due 2024 (the “2024 Notes”) and to pay accrued and unpaid interest on the 2024 Notes, if any, to, but excluding, the redemption date, and to pay fees and expenses in connection with the 2029 Notes offering and the 2024 Notes redemption. In the first quarter of 2021, we recorded a ~~Loss on extinguishment of debt~~ ~~of $6.3 million relating to the 2024 Notes on the Consolidated Statement of Operations.~~

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~~OUTFRONT Media Inc.~~

~~Notes to Consolidated Financial Statements~~

~~(Unaudited)~~

Debt Covenants

Our credit agreement, dated as of January 31, 2014 (as amended, supplemented or otherwise modified, the “Credit Agreement”), governing the Senior Credit Facilities, the agreements governing the AR ~~Securitization Facilities,~~Facility, and the indentures governing our senior unsecured notes contain customary affirmative and negative covenants, subject to certain exceptions, including but not limited to those that restrict the Company’s and its subsidiaries’ abilities to (i) pay dividends on, repurchase or make distributions in respect to the Company’s or its wholly-owned subsidiary, Outfront Media Capital LLC’s ~~(“Finance LLC’s”)~~ capital stock or make other restricted payments other than dividends or distributions necessary for us to maintain our REIT status, subject to certain conditions and exceptions, (ii) enter into agreements restricting certain subsidiaries’ ability to pay dividends or make other intercompany or third-party transfers, and (iii) incur additional indebtedness. One of the exceptions to the restriction on our ability to incur additional indebtedness is satisfaction of a Consolidated Total Leverage Ratio, which is the ratio of our consolidated total debt to our Consolidated EBITDA (as defined in the Credit Agreement) for the trailing four consecutive quarters, of no greater than 6.0 to 1.0. As of March 31, ~~2021,~~2022, our Consolidated Total Leverage Ratio was ~~12.7~~5.8 to 1.0 in accordance with the Credit Agreement.

The terms of the Credit Agreement (and under certain circumstances, the agreements governing the AR ~~Securitization Facilities)~~Facility) require that we maintain a Consolidated Net Secured Leverage Ratio, which is the ratio of (i) our consolidated secured debt (less up to $150.0 million of unrestricted cash) to (ii) our Consolidated EBITDA (as defined in the Credit Agreement) for the trailing four consecutive quarters, of no greater than 4.5 to 1.0. As of March 31, ~~2021,~~2022, our Consolidated Net Secured Leverage Ratio was ~~1.1~~1.0 to 1.0 in accordance with the Credit Agreement. As of March 31, ~~2021,~~2022, we are in compliance with our debt covenants.

OUTFRONT Media Inc.

Notes to certain exceptions such as payments necessary to maintain the Company’s REIT status, including any payments on any class of the Company’s capital stock that is required to be made prior to the payment of a dividend or distribution on the Company’s common stock and the Company’s existing payment obligations to holders of the Class A equity interests in Outfront Canada (as defined in Note 10. ~~Equity~~ ~~to the~~ Consolidated Financial ~~Statements).~~Statements

(Unaudited)

Deferred Financing Costs

As of March 31, ~~2021,~~2022, we had deferred ~~$35.1~~$28.8 million in fees and expenses associated with the Term Loan, Revolving Credit Facility, AR ~~Securitization Facilities~~Facility and our senior unsecured notes. We are amortizing the deferred fees through Interest expense, net, on our Consolidated Statement of Operations over the respective terms of the Term Loan, Revolving Credit Facility, AR ~~Securitization Facilities~~Facility and our senior unsecured notes.

Interest Rate Swap ~~Agreements~~Agreement

We have ~~several~~an interest rate cash flow swap ~~agreements~~agreement to effectively convert a portion of our LIBOR-based variable rate debt to a fixed rate and hedge our interest rate risk related to such variable rate debt. The fair value of ~~these~~this swap ~~positions~~position was a net liability of approximately ~~$4.3~~$0.1 million as of March 31, ~~2021,~~2022, and ~~$5.6~~$0.4 million as of December 31, ~~2020,~~2021, and is included in Other current liabilities on our Consolidated Statement of Financial Position.

As of March 31, ~~2021,~~2022, under the terms of ~~these agreements,~~this agreement, we will pay interest based on an aggregate notional amount of ~~$200.0~~$50.0 million, under a weighted-average fixed interest rate of ~~2.7%~~1.8%, with a receive rate of one-month LIBOR and which ~~mature at various dates until~~matures on June 30, 2022. The one-month LIBOR rate was approximately ~~0.1%~~0.5% as of March 31, ~~2021.~~2022.

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~~OUTFRONT Media Inc.~~

~~Notes to Consolidated Financial Statements~~

~~(Unaudited)~~

Fair Value

Under the fair value hierarchy, observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities are defined as Level 1; observable inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability are defined as Level 2; and unobservable inputs for the asset or liability are defined as Level 3. The aggregate fair value of our debt, which is estimated based on quoted market prices of similar liabilities, was approximately ~~$2.7~~$2.6 billion as of March 31, ~~2021,~~2022, and ~~$2.8~~$2.7 billion as of December 31, ~~2020.~~2021. The fair value of our debt as of both March 31, ~~2021,~~2022, and December 31, ~~2020,~~2021, is classified as Level 2. The aggregate fair value loss associated with our interest rate cash flow swap agreements was approximately ~~$4.3~~$0.1 million as of March 31, ~~2021,~~2022, and ~~$5.6~~$0.4 million as of December 31, ~~2020.~~2021. The aggregate fair value of our interest rate cash flow swap agreements as of both March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, is classified as Level 2.

Note 10. Equity

As of March 31, ~~2021,~~2022, 450,000,000 shares of our common stock, par value $0.01 per share, were ~~authorized; 145,538,216~~authorized, of which 164,009,700 shares were issued and outstanding; and 50,000,000 shares of our preferred stock, par value $0.01 per share, were authorized, ~~with 400,000~~of which 125,000 shares of Series A Convertible Perpetual Preferred Stock (the “Series A Preferred Stock”), par value $0.01 per share, were issued and outstanding.

The Series A Preferred Stock ranks senior to the shares of the Company’s common stock with respect to dividend and distribution rights. Holders of the Series A Preferred Stock are entitled to a cumulative dividend accruing at the initial rate of 7.0% per year, payable quarterly in arrears, subject to increases as set forth in the Articles Supplementary, effective as of April 20, 2020 (the “Articles”). Dividends may, at the option of the Company, be paid in cash, in-kind, through the issuance of additional shares of Series A Preferred Stock or a combination of cash and in-kind, until April 20, 2028, after which time dividends will be payable solely in cash. So long as any shares of Series A Preferred Stock remain outstanding, the Company may not, without the consent of a specified percentage of holders of shares of Series A Preferred Stock, declare a dividend on, or make any distributions relating to, capital stock that ranks junior to, or on a parity basis with, the Series A Preferred Stock, subject to certain exceptions, including but not limited to (i) any dividend or distribution in cash or capital stock of the Company on or in respect of the capital stock of the Company to the extent that such dividend or distribution is necessary to maintain the Company’s status as a REIT; and (ii) any dividend or distribution in cash in respect of our common stock that, together with the dividends or distributions during the 12-month period immediately preceding such dividend or distribution, is not in excess of 5% of the aggregate dividends or distributions paid by the Company necessary to maintain its REIT status during such 12-month period. If any dividends or distributions in respect of the shares of our common stock are paid in cash, the shares of Series A Preferred Stock will participate in the dividends or distributions on an as-converted basis up to the amount of their accrued dividend for such quarter, which amounts will reduce the dividends payable on the shares of Series A Preferred Stock dollar-for-dollar for such quarter. The Series A Preferred Stock is convertible at the option of any holder at any time into shares of our common stock at an initial conversion price of $16.00 per share and an initial conversion rate of 62.50 shares of our common stock per share of Series A Preferred Stock, subject to certain anti-dilution adjustments and a share cap as set forth in the Articles. Subject to certain conditions set forth in the Articles (including a change of control), each of the

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OUTFRONT Media Inc.

Notes to Consolidated Financial Statements

(Unaudited)

Company and the holders of the Series A Preferred Stock may convert or redeem the Series A Preferred Stock at the prices set forth in the Articles, plus any accrued and unpaid dividends.

On March 1, 2022, 275,000 shares of Series A Preferred Stock were converted into approximately 17.4 million shares of the Company’s common stock, which included $3.2 million of accrued and unpaid dividends through and including the conversion date that were settled in the Company’s common stock in accordance with the Articles. During the three months ended March 31, ~~2021,~~2022, we paid cash dividends of ~~$7.0~~$2.2 million on the Series A Preferred Stock. As of March 31, ~~2021,~~2022, the maximum number of shares of common stock that could be required to be issued on conversion of the outstanding shares of Series A Preferred Stock was ~~25.0~~approximately 7.8 million shares.

In connection with the acquisition of outdoor advertising assets in Canada in June 2017, the Company issued 1,953,407 shares of Class A equity interests of a subsidiary of the Company that controls its Canadian business (“Outfront Canada”)~~. The Class A equity interests are~~, which, among other things, were (i) entitled to receive priority cash distributions from Outfront Canada at the same time and in the same per share amount as the dividends paid on shares of the Company’s common ~~stock. The Class A equity interests may be redeemed~~stock, and (ii) redeemable by the holders in exchange for shares of the Company’s common stock on a one-for-one ~~basis (subject~~basis. During the three months ended March 31, 2022, we made distributions of $0.1 million to anti-dilution adjustments) or, at the Company’s option, cash equal to the then fair market value of the shares of the Company’s common stock. The Company is also subject to limitations on its ability to sell or otherwise dispose of the assets acquired in Canada until June 2022, unless it pays holders of the Class A equity interests, which are recorded in ~~Outfront Canada an amount intended to approximate their resulting tax liability, plus a tax gross-up.~~

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~~OUTFRONT Media Inc.~~

~~Notes to~~on our Consolidated ~~Financial~~ Statements

~~(Unaudited)~~

~~During the three months ended March 31, 2021, we made 0 distributions to holders~~ of ~~the Class A equity interests.~~Equity and Consolidated Statements of Cash Flows. As of March 31, ~~2021, 1,527,579~~2022, all Class A equity interests have been redeemed for shares of the Company’s common ~~stock.~~stock and no Class A equity interests are outstanding.

We have a sales agreement in connection with an “at-the-market” equity offering program (the “ATM Program”), under which we may, from time to time, issue and sell shares of our common stock up to an aggregate offering price of $300.0 million. We have no obligation to sell any of our common stock under the sales agreement and may at any time suspend solicitations and offers under the sales agreement. ~~NaN~~No shares were sold under the ATM Program during the three months ended March 31, ~~2021.~~2022. As of March 31, ~~2021,~~2022, we had approximately $232.5 million of capacity remaining under the ATM Program.

On May 2, 2022, we announced that our board of directors approved a quarterly cash dividend of $0.30 per share on our common stock, payable on June 30, 2022, to stockholders of record at the close of business on June 3, 2022.

Note 11. Revenues

The following table summarizes revenues by source:


		Three Months Ended						Three Months Ended
		March 31,						March 31,
(in millions)	(in millions)		2021		2020		(in millions)		2022		2021
Billboard:	Billboard:						Billboard:
Static displays	Static displays		$	165.1	$	201.1	Static displays		$	206.0	$	165.1
Digital displays	Digital displays		49.3		60.4		Digital displays		81.4		49.3
Other	Other		9.2		9.4		Other		10.8		9.2
Billboard revenues	Billboard revenues		223.6		270.9		Billboard revenues		298.2		223.6
Transit:	Transit:						Transit:
Static displays	Static displays		23.9		65.1		Static displays		41.2		23.9
Digital displays	Digital displays		6.4		27.7		Digital displays		25.9		6.4
Other	Other		4.6		7.4		Other		6.4		4.6
Total transit revenues	Total transit revenues		34.9		100.2		Total transit revenues		73.5		34.9
Sports marketing and other			0.7		14.2
Other							Other		1.8		0.7
Transit and other revenues	Transit and other revenues		35.6		114.4		Transit and other revenues		75.3		35.6
Total revenues	Total revenues		$	259.2	$	385.3	Total revenues		$	373.5	$	259.2

Rental income was $288.3 million in the three months ended March 31, 2022, and $215.8 million in the three months ended March 31, 2021, ~~and $262.3 million in the three months ended March 31, 2020,~~ and is recorded in Billboard revenues on the Consolidated Statement of Operations.

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OUTFRONT Media Inc.

Notes to Consolidated Financial Statements

(Unaudited)

The following table summarizes revenues by geography:


		Three Months Ended						Three Months Ended
		March 31,						March 31,
(in millions)	(in millions)		2021		2020		(in millions)		2022		2021
United States:	United States:						United States:
Billboard	Billboard		$	212.5	$	256.5	Billboard		$	283.4	$	212.5
Transit and other	Transit and other		32.9		98.2		Transit and other		70.8		32.9
Sports marketing and other			0.7		14.2
Other							Other		1.8		0.7
Total United States revenues	Total United States revenues		246.1		368.9		Total United States revenues		356.0		246.1
Canada	Canada		13.1		16.4		Canada		17.5		13.1
Total revenues	Total revenues		$	259.2	$	385.3	Total revenues		$	373.5	$	259.2

We recognized substantially all of the Deferred revenues on the Consolidated Statement of Financial Position as of December 31, ~~2020,~~2021, during the three months ended March 31, ~~2021.~~2022.

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~~OUTFRONT Media Inc.~~

~~Notes to Consolidated Financial Statements~~

~~(Unaudited)~~

Note 12. Restructuring Charges

As of March 31, ~~2021, $1.0~~2022, $0.4 million in restructuring reserves remain outstanding and is included in Other current liabilities on the Consolidated Statement of Financial Position.

Note 13. Acquisitions

We completed several asset acquisitions for a total purchase price of approximately $9.6 million in the three months ended March 31, 2022, and $15.8 million in the three months ended March 31, ~~2021, and $6.6 million in the three months ended March 31, 2020.~~2021.

In the second quarter of 2018, we entered into an agreement to acquire 14 digital and 7 static billboard displays in California for a total estimated purchase price of $35.4 million. In the second quarter of 2019, we completed this acquisition except with respect to 4 digital displays, which we expect to acquire in ~~2022~~2023 for an estimated purchase price of $9.2 million, subject to customary closing conditions and the timing of site development.

Note 14. Stock-Based Compensation

In the first quarter of 2021, the Company granted one-time equity award grants to our executive officers. The grant values of the one-time restricted share unit (“RSU”) awards were equal to 100% of each executive officer’s current base salary, and comprised of 60% performance-based RSUs (“PRSUs”), which contain a market and service condition, and 40% time-based RSUs, which only contain a service condition. The PRSU market condition will be based on the Company’s total shareholder return (“TSR”) relative to the TSRs of the companies in the iShares Evolved U.S. Media and Entertainment Index as of January 1, 2021, measured over a ~~two~~-year performance period, with the number of PRSUs eligible to vest ranging from 0% to 200% of target based on a percentile ranking of the Company’s relative TSR. Subject to the market condition, these one-time equity grants will cliff vest in full on the second anniversary of the award grant date. A Monte Carlo method simulation has been used to estimate the grant date fair value of the PRSUs that have a market condition.

The following table summarizes our stock-based compensation expense for the three months ended March 31, ~~2021~~2022 and ~~2020.~~2021.


		Three Months Ended						Three Months Ended
		March 31,						March 31,
(in millions)	(in millions)		2021		2020		(in millions)		2022		2021
Stock-based compensation expenses (RSUs and PRSUs), before income taxes			$	6.0	$	5.8
Stock-based compensation expenses (restricted share units (“RSUs”) and performance-based RSUs (“PRSUs”)), before income taxes							Stock-based compensation expenses (restricted share units (“RSUs”) and performance-based RSUs (“PRSUs”)), before income taxes		$	7.9	$	6.0
Tax benefit	Tax benefit		(0.3)		(0.4)		Tax benefit		(0.4)		(0.3)
Stock-based compensation expense, net of tax	Stock-based compensation expense, net of tax		$	5.7	$	5.4	Stock-based compensation expense, net of tax		$	7.5	$	5.7

As of March 31, ~~2021,~~2022, total unrecognized compensation cost related to non-vested RSUs and PRSUs was ~~$52.6~~$55.2 million, which is expected to be recognized over a weighted average period of 2.1 years.

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OUTFRONT Media Inc.

Notes to Consolidated Financial Statements

(Unaudited)

RSUs and PRSUs

The following table summarizes activity for the three months ended March 31, ~~2021,~~2022, of RSUs and PRSUs issued to our employees.

Activity Weighted Average Per Share Grant Date Fair Market Value
Non-vested as of December 31, 2020 2,208,059 $ 24.80
Granted:
RSUs 954,350 21.48
PRSUs 567,571 23.34
Vested:
RSUs (651,997) 24.55
PRSUs (239,202) 21.81
Forfeitures:
RSUs (6,178) 25.48
PRSUs (259,086) 30.63
Non-vested as of March 31, 2021 2,573,517 23.00

~~Stock Options~~

~~The following table summarizes activity for the three months ended March 31, 2021, of stock options issued to our employees.~~

Activity Weighted Average Exercise Price
Outstanding as of December 31, 2020 103,413 $ 26.39
Outstanding as of March 31, 2021 103,413 26.39
Exercisable as of March 31, 2021 103,413 26.39

~~As of March 31, 2021, all exercisable stock options issued to our employees were out-of-the-money based on the closing stock price of our common stock of $21.83.~~


	Activity	Weighted Average Per Share Grant Date Fair Market Value
Non-vested as of December 31, 2021	2,447,246	$	23.18
Granted:
RSUs	908,598	25.24
PRSUs	482,618	24.42
Vested:
RSUs	(710,912)	24.13
PRSUs	(293,773)	21.65
Forfeitures:
RSUs	(5,925)	23.62
PRSUs	(3,061)	26.60
Non-vested as of March 31, 2022	2,824,791	23.89

Note 15. Retirement Benefits

The following table presents the components of net periodic pension cost and amounts recognized in other comprehensive income (loss) for our pension plans:


		Three Months Ended						Three Months Ended
		March 31,						March 31,
(in millions)	(in millions)		2021		2020		(in millions)		2022		2021
Components of net periodic pension cost:	Components of net periodic pension cost:						Components of net periodic pension cost:
Service cost	Service cost		$	0.1	$	0.4	Service cost		$	—	$	0.1
Interest cost	Interest cost		0.5		0.7		Interest cost		0.5		0.5
Expected return on plan assets	Expected return on plan assets		(0.8)		(1.1)		Expected return on plan assets		(0.7)		(0.8)
Amortization of net actuarial losses(a)	Amortization of net actuarial losses(a)		0.2		0.3		Amortization of net actuarial losses(a)		—		0.2

Net periodic pension cost	Net periodic pension cost		$	0	$	0.3	Net periodic pension cost		$	(0.2)	$	—

(a)Reflects amounts reclassified from accumulated other comprehensive income to net income.

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~~OUTFRONT Media Inc.~~

~~Notes to Consolidated Financial Statements~~

~~(Unaudited)~~

In the three months ended March 31, ~~2021,~~2022, we contributed ~~$0.3~~$0.1 million to our defined benefit pension plans. In ~~2021,~~2022, we expect to contribute approximately ~~$1.2~~$0.1 million to our defined benefit pension plans.

Note 16. Income Taxes

We are organized in conformity with the requirements for qualification and taxation as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”) and, accordingly, we have not provided for U.S. federal income tax on our REIT taxable income that we distribute to our stockholders. We have elected to treat our subsidiaries that participate in certain non-REIT qualifying activities as ~~TRSs.~~taxable REIT subsidiaries (“TRSs”). As such, we have provided for their federal, state and foreign income taxes.

Tax years ~~2017~~2018 to present are open for examination by the tax authorities.

Our effective income tax rate represents a combined annual effective tax rate for federal, state, local and foreign taxes applied to interim operating results.

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Notes to Consolidated Financial Statements

(Unaudited)

In the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, our effective tax rate differed from the U.S. federal statutory income tax rate primarily due to our REIT status, including the dividends paid deduction, the impact of state and local taxes, and the effect of foreign operations.

Note 17. Earnings Per Share (“EPS”)

Three Months Ended
March 31,
(in millions) 2021 2020
Net income (loss) available for common stockholders $ (67.7) $ 6.1
Less: Distributions to holders of Series A Preferred Stock 7.0 0
Less: Distributions to holders of Class A equity interests of a subsidiary 0 0.4
Net income (loss) available for common stockholders, basic and diluted $ (74.7) $ 5.7
Weighted average shares for basic EPS 144.8 143.9
Dilutive potential shares from grants of RSUs, PRSUs and stock options(a)
0 0.8
Weighted average shares for diluted EPS 144.8 144.7


	Three Months Ended
	March 31,
(in millions)		2022		2021
Net loss available for common stockholders		$	(0.1)	$	(67.7)
Less: Distributions to holders of Series A Preferred Stock		5.4		7.0
Less: Distributions to holders of Class A equity interests of a subsidiary		0.1		—

Net loss available for common stockholders, basic and diluted		$	(5.6)	$	(74.7)




Weighted average shares for basic and diluted EPS		152.0		144.8

(a)The potential impact of ~~an aggregate~~1.1 million granted RSUs and PRSUs in the three months ended March 31, 2022, and 1.9 million granted RSUs, PRSUs and stock options in the three months ended March 31, 2021, ~~and 0.5 million granted RSUs, PRSUs and stock options in the three months ended March 31, 2020,~~ were antidilutive.

(b)The potential impact of 19.1 million shares of our common stock issuable upon conversion of the Series A Preferred Stock in the three months ended March 31, 2022, and 25.0 million shares of our common stock issuable upon conversion of the Series A Preferred Stock in the three months ended March 31, 2021, ~~was~~were antidilutive.

(c)The potential impact of 0.3 million of Class A equity interests of Outfront Canada in the three months ended March 31, 2022, and 0.8 million of Class A equity interests of Outfront Canada in the three months ended March 31, 2021, ~~and 1.1 million of Class A equity interests of Outfront Canada in the three months ended March 31, 2020,~~ was antidilutive. (See Note 10. Equity to the Consolidated Financial Statements.)

Note 18. Commitments and Contingencies

Off-Balance Sheet Arrangements

Our off-balance sheet commitments primarily consist of guaranteed minimum annual payments. These arrangements result from our normal course of business and represent obligations that are payable over several years.

Contractual Obligations

We have agreements with municipalities and transit operators that entitle us to operate advertising displays within their transit systems, including on the interior and exterior of rail and subway cars and buses, as well as on benches, transit shelters, street kiosks, and transit platforms. Under most of these franchise agreements, the franchisor is entitled to receive the greater of a percentage of the relevant revenues, net of agency fees, or a specified guaranteed minimum annual payment.

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~~OUTFRONT Media Inc.~~

~~Notes to Consolidated Financial Statements~~

~~(Unaudited)~~

Under the MTA agreement, which was amended in June 2020 and July 2021 (as amended, the “MTA Agreement”):

~~Under the MTA agreement, we are obligated to~~•Deployments. We must deploy, over a number of years, (i) ~~8,565~~5,433 digital advertising screens on subway and train platforms and entrances, (ii) ~~37,716~~15,896 smaller-format digital advertising screens on rolling stock, and (iii) ~~7,829~~9,283 MTA communications displays, ~~with such deployment amounts being~~ subject to modification as agreed-upon by us and the MTA. ~~In addition, we~~We are also obligated to ~~pay to~~deploy certain additional digital advertising screens and MTA communications displays in subway and train stations and rolling stock that the MTA may build or acquire in the ~~greater~~future (collectively, the “New Inventory”).

•Recoupment of ~~a percentage of revenues or a guaranteed minimum annual payment. Incremental~~Equipment Deployment Costs. We may retain incremental revenues that exceed an annual base revenue amount ~~will be retained by us~~ for the cost of deploying advertising and communications displays throughout the transit system. As presented in the table below, recoupable MTA equipment deployment costs are recorded as Prepaid MTA equipment deployment costs and Intangible assets on our Consolidated Statement of Financial Position, and as these costs are recouped from incremental revenues that the MTA would otherwise be entitled to receive, Prepaid MTA equipment deployment costs will be reduced. If incremental revenues generated over the term of the agreement are not sufficient to cover all or a portion of the equipment deployment costs, the costs will not be recouped, which could have an adverse effect on our business, financial condition and results of operations. If we do not recoup all costs of deploying advertising and communications screens with respect to the New Inventory by the end of the term of the MTA Agreement, the MTA will be obligated to reimburse us for these costs. Deployment costs in an amount not to exceed $50.7 million, which

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OUTFRONT Media Inc.

Notes to Consolidated Financial Statements

(Unaudited)

are deemed authorized before December 31, 2020, will be paid directly by the MTA. For any deployment costs deemed authorized after December 31, 2020, the MTA and the Company will no longer be obligated to directly pay 70% and 30% of the costs, respectively, and these costs will be subject to recoupment in accordance with the MTA Agreement. We did not recoup any equipment deployment costs in the three months ended March 31, ~~2021,~~2022, and it is unlikely we will recoup equipment deployment costs in the remainder of ~~2021. In June 2020, we entered into an amendment~~2022.

•Payments. We must pay to the MTA ~~agreement, pursuant~~the greater of a percentage of revenues or a guaranteed minimum annual payment. Our payment obligations with respect to ~~which, (i) for up~~guaranteed minimum annual payment amounts owed to ~~$143.0 million of MTA equipment deployment costs to be incurred under~~ the MTA ~~agreement after June 2020,~~resumed on January 1, 2021, in accordance with the terms of the MTA Agreement, and ~~the Company will directly pay 70% and 30% of the costs, respectively, instead of the costs being recoupable from incremental revenues generated under the agreement, and (ii)~~ any guaranteed minimum annual payment amounts that would have been paid for the period from April 1, 2020 through December 31, 2020 (less any revenue share amounts actually paid during this period using an increased revenue share percentage of 65%) will instead be added in equal increments to the guaranteed minimum annual payment amounts owed for the period from January 1, 2022, through December 31, 2026. ~~Our payment obligations with respect~~The MTA Agreement also provides that if prior to ~~guaranteed minimum annual payment amounts owed~~April 1, 2028 the balance of unrecovered costs of deploying advertising and communications screens throughout the transit system is equal to or less than zero, then in any year following the year in which such recoupment occurs (the “Recoupment Year”), the MTA ~~resumed on January 1, 2021,~~is entitled to receive an additional payment equal to 2.5% of the annual base revenue amount for such year calculated in accordance with the ~~terms~~MTA Agreement, provided that gross revenues in such year (i) were at least equal to the gross revenues generated in the Recoupment Year, and (ii) did not decline by more than 5% from the prior year.

During the ~~MTA regarding possible modifications to~~three months ended March 31, 2022, we had no recoupment from incremental revenues and as of March 31, 2022, $48.5 million has been funded by the ~~overall scope and term under the MTA agreement.~~MTA. As of March 31, ~~2021, 7,645~~2022, 12,479 digital displays had been installed, of which ~~265~~1,387 installations occurred in the three months ended March 31, ~~2021.~~2022.


(in millions)	(in millions)	Beginning Balance		Deployment Costs Incurred		Recoupment/MTA Funding		Amortization		Ending Balance		(in millions)	Beginning Balance		Deployment Costs Incurred		Recoupment/MTA Funding		Amortization		Ending Balance
Three months ended March 31, 2021:
Three months ended March 31, 2022:												Three months ended March 31, 2022:
Prepaid MTA equipment deployment costs	Prepaid MTA equipment deployment costs	$	204.6	$	3.6	$	—	$	—	$	208.2	Prepaid MTA equipment deployment costs	$	279.8	$	15.4	$	—	$	—	$	295.2
Other current assets	Other current assets	28.0		9.1		(16.2)		—		20.9		Other current assets	5.2		0.1		(3.1)		—		2.2
Intangible assets (franchise agreements)	Intangible assets (franchise agreements)	58.4		4.7		—		(2.5)		60.6		Intangible assets (franchise agreements)	63.0		1.4		—		(0.6)		63.8
Total	Total	$	291.0	$	17.4	$	(16.2)	$	(2.5)	$	289.7	Total	$	348.0	$	16.9	$	(3.1)	$	(0.6)	$	361.2

Year ended December 31, 2020:
Year ended December 31, 2021:												Year ended December 31, 2021:
Prepaid MTA equipment deployment costs	Prepaid MTA equipment deployment costs	$	171.5	$	33.1	$	—	$	—	$	204.6	Prepaid MTA equipment deployment costs	$	204.6	$	75.2	$	—	$	—	$	279.8
Other current assets	Other current assets	—		44.4		(16.4)		—		28.0		Other current assets	28.0		6.2		(29.0)		—		5.2
Intangible assets (franchise agreements)	Intangible assets (franchise agreements)	38.3		26.0		—		(5.9)		58.4		Intangible assets (franchise agreements)	58.4		14.5		—		(9.9)		63.0
Total	Total	$	209.8	$	103.5	$	(16.4)	$	(5.9)	$	291.0	Total	$	291.0	$	95.9	$	(29.0)	$	(9.9)	$	348.0

Letters of Credit

We have indemnification obligations with respect to letters of credit and surety bonds primarily used as security against non-performance in the normal course of business. As of March 31, ~~2021,~~2022, the outstanding letters of credit were approximately ~~$74.1~~$76.8 million and outstanding surety bonds were approximately ~~$167.5~~$167.1 million, and were not recorded on the Consolidated Statements of Financial Position.

Legal Matters

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~~OUTFRONT Media Inc.~~

~~Notes to Consolidated Financial Statements~~

~~(Unaudited)~~

eventual outcome of any litigation, in our opinion, none of our current litigation is expected to have a material adverse effect on our results of operations, financial position or cash flows.

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OUTFRONT Media Inc.

Notes to Consolidated Financial Statements

(Unaudited)

Note 19. Segment Information

We currently manage our operations through 2 operating segments—U.S. Billboard and Transit, which is included in our U.S. Media reportable segment, and International. International does not meet the criteria to be a reportable segment and accordingly, is included in Other.

The following tables set forth our financial performance by segment. ~~In the third quarter of 2020, we completed the Sports Disposition. Historical operating results for our Sports Marketing operating segment through June 30, 2020, are included in~~ ~~Other~~.


		Three Months Ended						Three Months Ended
		March 31,						March 31,
(in millions)	(in millions)		2021		2020		(in millions)		2022		2021
Revenues:	Revenues:						Revenues:
U.S. Media	U.S. Media		$	245.4	$	354.7	U.S. Media		$	354.2	$	245.4
Other	Other		13.8		30.6		Other		19.3		13.8
Total revenues	Total revenues		$	259.2	$	385.3	Total revenues		$	373.5	$	259.2

We present Operating income (loss) before Depreciation, Amortization, Net gain on dispositions~~and~~, Stock-based compensation and Restructuring charges (“Adjusted OIBDA”) as the primary measure of profit and loss for our operating segments.


		Three Months Ended						Three Months Ended
		March 31,						March 31,
(in millions)	(in millions)		2021		2020		(in millions)		2022		2021
Net income (loss) before allocation to non-controlling interests	Net income (loss) before allocation to non-controlling interests		$	(67.6)	$	6.3	Net income (loss) before allocation to non-controlling interests		$	0.1	$	(67.6)
Benefit for income taxes	Benefit for income taxes		(4.7)		(1.7)		Benefit for income taxes		(2.1)		(4.7)
Equity in earnings of investee companies, net of tax	Equity in earnings of investee companies, net of tax		0.4		(0.4)		Equity in earnings of investee companies, net of tax		(0.3)		0.4
Interest expense, net	Interest expense, net		34.6		29.8		Interest expense, net		30.7		34.6
Loss on extinguishment of debt	Loss on extinguishment of debt		6.3		0		Loss on extinguishment of debt		—		6.3
Other income, net			0		(0.2)
Other loss, net							Other loss, net		0.1		—
Operating income (loss)	Operating income (loss)		(31.0)		33.8		Operating income (loss)		28.5		(31.0)

Net gain on dispositions	Net gain on dispositions		(0.3)		(0.1)		Net gain on dispositions		(0.3)		(0.3)
Depreciation and amortization~~(a)~~	Depreciation and amortization~~(a)~~		36.4		36.0		Depreciation and amortization~~(a)~~		34.1		36.4
Stock-based compensation	Stock-based compensation		6.0		5.8		Stock-based compensation		7.9		6.0
Total Adjusted OIBDA~~(a)~~	Total Adjusted OIBDA~~(a)~~		$	11.1	$	75.5	Total Adjusted OIBDA~~(a)~~		$	70.2	$	11.1

Adjusted OIBDA:	Adjusted OIBDA:						Adjusted OIBDA:
U.S. Media~~(a)~~	U.S. Media~~(a)~~		$	24.6	$	80.0	U.S. Media~~(a)~~		$	80.1	$	24.6
Other(a)	Other(a)		(2.0)		0		Other(a)		0.6		(2.0)
Corporate	Corporate		(11.5)		(4.5)		Corporate		(10.5)		(11.5)
Total Adjusted OIBDA~~(a)~~	Total Adjusted OIBDA~~(a)~~		$	11.1	$	75.5	Total Adjusted OIBDA~~(a)~~		$	70.2	$	11.1

~~(a)~~Consistent with the current year’s presentation, we have reclassified amortization of direct lease acquisition costs of $11.3 million in the three months ended March 31, 2020, of which $10.8 million was recorded in our ~~U.S. Media~~ ~~segment and $0.5 million was recorded in~~ ~~Other, from~~ ~~Amortization~~ to ~~SG&A~~ ~~expenses, resulting in a corresponding decrease in Adjusted OIBDA.~~

2220

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OUTFRONT Media Inc.

Notes to Consolidated Financial Statements

(Unaudited)


		Three Months Ended						Three Months Ended
		March 31,						March 31,
(in millions)	(in millions)		2021		2020		(in millions)		2022		2021
Operating income (loss):	Operating income (loss):						Operating income (loss):
U.S. Media	U.S. Media		$	(8.6)	$	47.4	U.S. Media		$	49.3	$	(8.6)
Other	Other		(4.9)		(3.3)		Other		(2.4)		(4.9)
Corporate	Corporate		(17.5)		(10.3)		Corporate		(18.4)		(17.5)
Total operating income (loss)	Total operating income (loss)		$	(31.0)	$	33.8	Total operating income (loss)		$	28.5	$	(31.0)

Net gain on dispositions:	Net gain on dispositions:						Net gain on dispositions:
U.S. Media	U.S. Media		$	(0.3)	$	(0.1)	U.S. Media		$	(0.3)	$	(0.3)

Total gain on dispositions	Total gain on dispositions		$	(0.3)	$	(0.1)	Total gain on dispositions		$	(0.3)	$	(0.3)

Depreciation and amortization:	Depreciation and amortization:						Depreciation and amortization:
U.S. Media(a)			$	33.5	$	32.7
Other(a)			2.9		3.3
U.S. Media							U.S. Media		$	31.1	$	33.5
Other							Other		3.0		2.9
Total depreciation and amortization~~(a)~~	Total depreciation and amortization~~(a)~~		$	36.4	$	36.0	Total depreciation and amortization~~(a)~~		$	34.1	$	36.4

Capital expenditures:	Capital expenditures:						Capital expenditures:
U.S. Media	U.S. Media		$	8.9	$	17.3	U.S. Media		$	16.1	$	8.9
Other	Other		0.5		0.9		Other		0.8		0.5
Total capital expenditures	Total capital expenditures		$	9.4	$	18.2	Total capital expenditures		$	16.9	$	9.4


		As of					As of
(in millions)	(in millions)	March 31, 2021		December 31, 2020		(in millions)	March 31, 2022		December 31, 2021
Assets:	Assets:					Assets:
U.S. Media	U.S. Media	$	4,950.8	$	4,977.2	U.S. Media	$	5,275.6	$	5,280.7
Other	Other	245.8		249.5		Other	250.0		248.1
Corporate	Corporate	517.3		670.2		Corporate	317.4		395.9
Total assets	Total assets	$	5,713.9	$	5,896.9	Total assets	$	5,843.0	$	5,924.7

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with our historical consolidated financial statements and the notes thereto appearing in our Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, filed with the Securities and Exchange Commission (the “SEC”) on February ~~26, 2021,~~24, 2022, and the unaudited consolidated financial statements and the notes thereto included in this Quarterly Report on Form 10-Q. This MD&A contains forward-looking statements that involve numerous risks and uncertainties. The forward-looking statements are subject to a number of important factors, including, but not limited to, those factors discussed in the sections entitled “Risk Factors” in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, filed with the SEC on February ~~26, 2021,~~24, 2022, and the section entitled “Cautionary Statement Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q, that could cause our actual results to differ materially from the results described herein or implied by such forward-looking statements. Except as otherwise indicated or unless the context otherwise requires, all references in this Quarterly Report on Form 10-Q to (i) “OUTFRONT Media,” “the Company,” “we,” “our,” “us” and “our company” mean OUTFRONT Media Inc., a Maryland corporation, and unless the context requires otherwise, its consolidated subsidiaries, and (ii) the “25 largest markets in the U.S.,” “approximately 150 markets in the U.S. and Canada” and “Nielsen Designated Market Areas” are based, in whole or in part, on Nielsen Media Research’s 2022 Designated Market Area ~~rankings as of January 1, 2021.~~rankings.

Overview

OUTFRONT Media is a real estate investment trust (“REIT”), which provides advertising space (“displays”) on out-of-home advertising structures and sites in the United States (the “U.S.”) and Canada. We currently manage our operations through two operating segments—U.S. Billboard and Transit, which is included in our U.S. Media reportable segment, and International. International does not meet the criteria to be a reportable segment and accordingly, is included in Other (see Note 19. Segment Information to the Consolidated Financial Statements).

Business

We are one of the largest providers of advertising space on out-of-home advertising structures and sites across the U.S. and Canada. Our inventory consists of billboard displays, which are primarily located on the most heavily traveled highways and roadways in top Nielsen Designated Market Areas (“DMAs”), and transit advertising displays operated under exclusive multi-year contracts with municipalities in large cities across the U.S. and Canada. In total, we have displays in all of the 25 largest markets in the U.S. and approximately 150 markets in the U.S. and Canada. Our top market, high profile location focused portfolio includes sites in and around both Grand Central Station and Times Square in New York, various locations along Sunset Boulevard in Los Angeles, and the Bay Bridge in San Francisco. The breadth and depth of our portfolio provides our customers with a range of options to address their marketing objectives, from national, brand-building campaigns to hyper-local campaigns that drive customers to the advertiser’s website or retail location “one mile down the road.”

In addition to providing location-based displays, we also focus on delivering mass and targeted audiences to our customers. Geopath, the out-of-home advertising industry’s audience measurement system, enables us to build campaigns based on the size and demographic composition of audiences. As part of our technology platform, we are developing solutions for enhanced demographic and location targeting, and engaging ways to connect with consumers on-the-go. Additionally, our OUTFRONT Mobile Network ~~and social influence add-on~~ products allow our customers to further leverage location targeting with interactive mobile ~~advertising and social sharing amplification.~~advertising.

We believe out-of-home continues to be an attractive form of advertising, as our displays are always viewable and cannot be turned off, skipped, blocked or fast-forwarded. Further, out-of-home advertising can be an effective “stand-alone” medium, as well as an integral part of a campaign to reach audiences using multiple forms of media, including television, radio, print, online, mobile and social media advertising platforms. We provide our customers with a differentiated advertising solution at an attractive price point relative to other forms of advertising. In addition to leasing displays, we provide other value-added

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services to our customers, such as pre-campaign category research, consumer insights, print production and post-campaign tracking and analytics.

U.S. Media. Our U.S. Media segment generated ~~12%~~19% of its revenues in the New York City metropolitan area in the three months ended March 31, ~~2021~~2022 and ~~22%~~12% in ~~the three months ended March 31, 2020, and generated 15% in the Los Angeles metropolitan area in each of~~ the three months ended March 31, 2021, and ~~2020.~~generated 17% in the Los Angeles metropolitan area in the three months ended March 31, 2022, and 15% in the three months ended March 31, 2021. In the three months ended March 31, 2022, our U.S. Media segment generated $354.2 million of Revenues and $80.1 million of Operating income before Depreciation, Amortization, Net gain on dispositions and Stock-based compensation (“Adjusted OIBDA”). In the three months ended March 31, 2021, our U.S. Media segment generated $245.4 million of Revenues and $24.6 million of ~~Operating income~~ ~~before~~ ~~Depreciation~~, ~~Amortization~~, ~~Net gain on dispositions~~ ~~and~~ ~~Stock-based compensation~~ ~~(“Adjusted OIBDA”). In the three months ended March 31, 2020, our~~ ~~U.S. Media~~ ~~segment generated $354.7 million of~~ ~~Revenues~~ ~~and $80.0 million of~~ Adjusted OIBDA. (See the “Segment Results of Operations” section of this MD&A.)

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Other (includes ~~International~~International). In the three months ended March 31, 2022, Other generated $19.3 million of Revenues and ~~through June 30, 2020, Sports Marketing).~~$0.6 million of Adjusted OIBDA. In the three months ended March 31, 2021, Other generated $13.8 million of Revenues and an Adjusted OIBDA loss of $2.0 million. ~~In the three months ended March 31, 2020,~~ ~~Other~~ ~~generated $30.6 million of~~ ~~Revenues~~ ~~and Adjusted OIBDA of $0.0 million.~~

COVID-19 Impact

The novel coronavirus (“COVID-19”) pandemic and the related preventative measures taken to help curb the spread, including shutdowns and slowdowns of, and restrictions on, businesses, public gatherings, social interactions and travel (including reductions in foot traffic, roadway traffic, commuting, transit ridership and overall target audiences) throughout the markets in which we do business have had, and may continue to have, a significant impact on the global economy and our business. Though ~~generally~~ we remain able to continue to sell and service our displays with no significant disruption, governmental restrictions have eased in ~~several~~most of our markets and ~~several~~most of our markets have commenced their economic recoveries, our ~~billboard and~~ transit businesses ~~in many of the top DMAs, such as New York and Los Angeles,~~ are still experiencing the significant impacts of the COVID-19 pandemic. In 2021, the COVID-19 pandemic may continue to, among other things, (i) reduce or curtail our customers’ advertising expenditures and overall demand for our services through purchase cancellations or otherwise; (ii) increase the volatility of our customers’ advertising expenditure patterns from period-to-period through short-notice purchases, purchase deferrals or otherwise; and (iii) extend delays in the collection of certain earned advertising revenues from our customers, all of which could have a material adverse effect on our business, financial condition and results of operation in 2021.

~~As a result of the~~ impact of the ongoing novel coronavirus (“COVID-19”) pandemic. There still remains uncertainty around the severity and duration of the COVID-19 pandemic ~~on our business~~ and ~~results of operations, we expect our key performance indicators and total revenues to incrementally improve throughout~~ the ~~remainder of 2021 as compared to 2020, but be materially lower in 2021 than pre-COVID-19 pandemic levels, particularly in our~~ ~~U.S. Media~~ segment and with respect to our transit and other business. We expect total expenses to increase throughout the remainder of 2021 as compared to 2020, but be materially lower than pre-COVID-19 pandemic levels, particularly in our ~~U.S. Media~~ segment and with respect to our transit and other business. Additionally, we expect billboard property lease expenses, such as rental expenses, and posting, maintenance and other expenses, as a percentage of revenues, to decrease throughout the remainder of 2021 as compared to 2020, but be materially higher than pre-COVID-19 pandemic levels. We expect transit franchise expenses, such as transit franchise payments, as a percentage of revenues, to increase throughout the remainder of 2021 as compared to 2020, and be materially higher than pre-COVID-19 pandemic levels, primarily due to our guaranteed minimum annual payment amounts owed to the MTA, which resumed on January 1, 2021. The impacts described above with respect to 2020 were greatest in the second quarter of 2020, with incremental improvement in the third and fourth quarters of 2020. Accordingly, results for the three months ended March 31, 2021, are not indicative of the resultsmeasures that may be ~~expected for~~taken in response to the ~~fiscal year ending December 31, 2021.~~

~~Throughout~~COVID-19 pandemic. If the ~~ongoing~~measures that were taken in response to the COVID-19 pandemic ~~we have prioritized the health~~in 2020 and ~~safety of our employees~~2021 are reimplemented in a manner that reduces foot traffic, roadway traffic, commuting, transit ridership and customers by (i) shifting to a secure remote workforce for personnel other than operations personnel who service our displays and certain other personnel, (ii) implementing deep cleaning, social distancing and other protective policies and practices in accordance with federal, state and local regulations and guidance across all offices and facilities that are open oroverall target advertising audiences in the ~~process of reopening, (iii) restricting non-essential~~markets in which we do business, ~~travel, and (iv) communicating frequently with our employees and customers to address any concerns. None of these actions have caused~~there could be a significant disruption in our ability to manage the continuity of our business or our internal controls. In addition, in order to preserve financial flexibility, increase liquidity and reduce expenses in light of the current uncertainty in the global economy and our business, we modified our business goals and undertook several actions to date, including, among other things, issuing the Series A Preferred Stock (as defined below) and certain senior unsecured notes; amending the Credit Agreement (as defined below) to modify the calculation of the Company’s financial maintenance covenant ratio under the Credit Agreement; suspending our quarterly dividend paymentsimpact on our ~~common stock, subject to the minimum annual REIT distribution requirement (which may be satisfied by making distributions to our common stockholders, our~~

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~~preferred stockholders (including holders of Series A Preferred Stock) or a combination of our stockholders); and reducing SG&A (as defined below) and posting, maintenance and other expenses.~~

We will continue in 2021 to focus on managing costs and expenses to offset any decreases in revenues in 2021 as compared to pre-COVID-19 pandemic levels. However, we have resumed capital investments in a measured manner, including taking a highly selective approach to new acquisition activity, based on our current financial condition. In addition, we have engaged, and will continue to engage, in constructive conversations with our billboard ground lease landlords and transit franchise partners to mitigate any increases as a percentage of revenues in billboard property lease expenses, transit franchise expenses and posting, maintenance and other expenses.

business. We continue to monitor the evolving situation and guidance from federal, state and local public health authorities and may take ~~additional~~ actions based on their recommendations. When the COVID-19 pandemic subsides, there can be no assurances as to the time it may take to generate total revenues, particularly in our U.S. Media segment and with respect to our transit and other business, at pre-COVID-19 pandemic levels. There remains uncertainty around the severity and duration of the COVID-19 pandemic and the measures taken, or may be taken, in response to the COVID-19 pandemic, which will depend on numerous factors, including, among others, the emergence of new cases of COVID-19 or its variants, hospitalization and mortality rates, and the availability and distribution of safe and effective treatments and vaccines. Accordingly, the Company cannot reasonably estimate the full impact of the COVID-19 pandemic on our business, financial condition and results of operations at this time, which may be material.

As a result of the impact of the COVID-19 pandemic on our business and results of operations, we expect our key performance indicators and total revenues to incrementally improve in 2022 as compared to 2021, but some key performance indicators will continue to be materially lower in 2022 than pre-COVID-19 pandemic levels. We expect total revenues in 2022 to approach or potentially surpass pre-COVID-19 pandemic levels based on our current expectation of strong performance in total billboard revenues in our U.S. Media segment. We expect total transit and other revenues in our U.S. Media segment to incrementally improve in 2022, but still remain materially below pre-COVID-19 pandemic levels until 2023. We also expect Adjusted OIBDA to incrementally improve in 2022, driven by improvements in our transit and other business, but remain below pre-COVID-19 pandemic levels. We expect total expenses to increase in 2022 as compared to 2021, and exceed pre-COVID-19 pandemic levels. In particular, we expect billboard property lease expenses, such as rental expenses, and posting, maintenance and other expenses, as a percentage of revenues, to be consistent with pre-COVID-19 pandemic levels. We expect transit franchise expenses, such as transit franchise payments, as a percentage of revenues, to decrease in 2022 as compared to 2021, but be higher in 2022 than pre-COVID-19 pandemic levels, primarily due to the guaranteed minimum annual payment amounts owed to the MTA and other transit franchise partners as total transit and other revenues incrementally improve in the future. Results for the three months ended March 31, 2022, are not indicative of the results that may be expected for the fiscal year ending December 31, 2022.

Economic Environment

Our revenues and operating results are sensitive to fluctuations in advertising expenditures, general economic conditions and other external events beyond our control, such as the COVID-19 pandemic as described above.

We rely on third parties to manufacture and transport our digital displays. As a result of the current market-wide supply shortages and logistics disruptions as the economy recovers from the COVID-19 pandemic, we have experienced delays and price increases beginning in 2021 with respect to certain of our digital displays, which will continue in 2022, and could have an adverse effect on our business, financial condition and results of operations.

Business Environment

The outdoor advertising industry is fragmented, consisting of several companies operating on a national basis, as well as hundreds of smaller regional and local companies operating a limited number of displays in a single or a few local geographic markets. We compete with these companies for both customers and structure and display locations. We also compete with other media, including online, mobile and social media advertising platforms and traditional advertising platforms (such as television, radio, print and direct mail marketers). In addition, we compete with a wide variety of out-of-home media, including advertising in shopping centers, airports, movie theaters, supermarkets and taxis.

Increasing the number of digital displays in our prime audience locations is an important element of our organic growth strategy, as digital displays have the potential to attract additional business from both new and existing customers. We believe digital displays are attractive to our customers because they allow for the development of richer and more visually engaging messages, provide our customers with the flexibility both to target audiences by time of day and to quickly launch new advertising campaigns, and eliminate or greatly reduce print production and installation costs. In addition, digital displays enable us to run multiple advertisements on each display. Digital billboard displays generate approximately four times more

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revenue per display on average than traditional static billboard displays. Digital billboard displays also incur, on average, approximately two to four times more costs, including higher variable costs associated with the increase in revenue than traditional static billboard displays. As a result, digital billboard displays generate higher profits and cash flows than traditional static billboard displays. The majority of our digital billboard displays were converted from traditional static billboard displays.

~~In 2017, we~~We have commenced deployment of state-of-the-art digital transit displays in connection with several transit franchises and are planning to increase deployments over the coming years. ~~Once~~In the ~~digital transit displays have been deployed at scale,~~future, we expect ~~that revenue~~revenues generated on digital transit displays will be a multiple of the ~~revenue~~revenues generated on comparable static transit displays. Subject to the impact of the COVID-19 pandemic, we intend to incur significant equipment deployment costs and capital expenditures in the coming years to continue increasing the number of digital displays in our portfolio.

We have built or converted 1722 new digital billboard displays in the U.S. during the three months ended March 31, ~~2021.~~2022. Additionally, in the three months ended March 31, ~~2021,~~2022, we entered into marketing arrangements to sell advertising on ~~six~~16 third-party digital billboard displays in the U.S. In the three months ended March 31, ~~2021,~~2022, we have built, converted or replaced

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~~271~~ 1,409 digital transit and other displays in the U.S. ~~and three digital transit and other displays in Canada.~~ The following table sets forth information regarding our digital displays.


		Digital Revenues (in millions) for the Three Months Ended March 31, 2021(a)						Number of Digital Displays as of March 31, 2021(a)			Digital Revenues (in millions) for the Three Months Ended March 31, 2022(a)						Number of Digital Displays as of March 31, 2022(a)
Location	Location	Digital Billboard		Digital Transit and Other		Total Digital Revenues		Digital Billboard Displays	Digital Transit and Other Displays	Total Digital Displays		Location	Digital Billboard		Digital Transit and Other		Total Digital Revenues		Digital Billboard Displays	Digital Transit and Other Displays	Total Digital Displays
United States	United States	$	45.1	$	6.3	$	51.4	1,258	9,171	10,429		United States	$	75.0	$	25.6	$	100.6	1,432	13,975	15,407
Canada	Canada	4.2		0.1		4.3		222	108	330		Canada	6.4		0.3		6.7		233	120	353
Total	Total	$	49.3	$	6.4	$	55.7	1,480	9,279	10,759		Total	$	81.4	$	25.9	$	107.3	1,665	14,095	15,760

(a)Digital display amounts include ~~3,293~~4,014 displays reserved for transit agency use. Our number of digital displays is impacted by acquisitions, dispositions, management agreements, the net effect of new and lost billboards, and the net effect of won and lost franchises in the period.

Our revenues and profits may fluctuate due to seasonal advertising patterns and influences on advertising markets. Typically, our revenues and profits are highest in the fourth quarter, during the holiday shopping season, and lowest in the first quarter, as advertisers adjust their spending following the holiday shopping season. As described above, our revenues and profits may also fluctuate due to external events beyond our control, such as the COVID-19 pandemic.

We have a diversified base of customers across various industries. During the three months ended March 31, ~~2021,~~2022, our largest categories of advertisers were ~~professional services, healthcare/pharmaceuticals~~Entertainment, Health/Medical and ~~retail,~~Retail, each of which represented approximately ~~13%~~23%, 9%10% and 8%9% of our total U.S. Media segment revenues, respectively. During the three months ended March 31, ~~2020,~~2021, our largest categories of advertisers were ~~professional services, computers/internet~~Entertainment, Health/Medical and ~~retail,~~Retail, each of which represented approximately ~~10%~~16%, 9%10% and 9%8% of our total U.S. Media segment revenues, respectively.

Our large-scale portfolio allows our customers to reach a national audience and also provides the flexibility to tailor campaigns to specific regions or markets. In the three months ended March 31, ~~2021,~~2022, we generated approximately ~~38%~~41% of our U.S. Media segment revenues from national advertising campaigns compared to approximately ~~43%~~38% in the same prior-year period.

Our transit businesses require us to periodically obtain and renew contracts with municipalities and other governmental entities. When these contracts expire, we generally must participate in highly competitive bidding processes in order to obtain or renew contracts.

Key Performance Indicators

Our management reviews our performance by focusing on the indicators described below.

Several of our key performance indicators are not prepared in conformity with Generally Accepted Accounting Principles in the United States of America (“GAAP”). We believe these non-GAAP performance indicators are meaningful supplemental measures of our operating performance and should not be considered in isolation of, or as a substitute for, their most directly comparable GAAP financial measures.

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		Three Months Ended										Three Months Ended
		March 31,				%						March 31,	%
(in millions, except percentages)	(in millions, except percentages)		2021			2020			Change		(in millions, except percentages)		2022			2021			Change
Revenues	Revenues		$	259.2		$	385.3		(33)	%	Revenues		$	373.5		$	259.2		44	%
Organic revenues(a)(b)	Organic revenues(a)(b)		259.2			372.1			(30)		Organic revenues(a)(b)		373.5			259.2			44
Operating income (loss)	Operating income (loss)		(31.0)			33.8			*		Operating income (loss)		28.5			(31.0)			*
Adjusted OIBDA~~(c)~~(b)	Adjusted OIBDA~~(c)~~(b)		11.1			75.5			(85)		Adjusted OIBDA~~(c)~~(b)		70.2			11.1			*
Adjusted OIBDA(b)(c) margin			4		%	20		%
Adjusted OIBDA(b) margin											Adjusted OIBDA(b) margin		19		%	4		%
Funds from operations (“FFO”)(b) attributable to OUTFRONT Media Inc.	Funds from operations (“FFO”)(b) attributable to OUTFRONT Media Inc.		(30.4)			44.7			*		Funds from operations (“FFO”)(b) attributable to OUTFRONT Media Inc.		41.8			(30.4)			*
Adjusted FFO (“AFFO”)(b) attributable to OUTFRONT Media Inc.	Adjusted FFO (“AFFO”)(b) attributable to OUTFRONT Media Inc.		(24.5)			40.0			*		Adjusted FFO (“AFFO”)(b) attributable to OUTFRONT Media Inc.		35.5			(24.5)			*
Net income (loss) attributable to OUTFRONT Media Inc.			(67.7)			6.1			*
Net loss attributable to OUTFRONT Media Inc.											Net loss attributable to OUTFRONT Media Inc.		(0.1)			(67.7)			(100)

*Calculation is not meaningful.

(a)Organic revenues exclude ~~revenues associated with a disposition and~~ the impact of foreign currency exchange rates (“non-organic revenues”). We provide organic revenues to understand the underlying growth rate of revenue excluding the impact of non-organic revenue items. Our management believes organic revenues are useful to users of our financial data because it enables them to better understand the level of growth of our business period to period. Since organic revenues are not calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, revenues as an indicator of operating performance. Organic revenues, as we calculate it, may not be comparable to similarly titled measures employed by other companies.

(b)See the “Reconciliation of Non-GAAP Financial Measures” and “Revenues” sections of this MD&A for reconciliations of Operating income (loss) to Adjusted OIBDA, Net income (loss) attributable to OUTFRONT Media Inc. to FFO attributable to OUTFRONT Media Inc. and AFFO attributable to OUTFRONT Media Inc. and Revenues to organic revenues.

~~(c)Consistent with the current year’s presentation, we have reclassified amortization of direct lease acquisition costs of $11.3 million in the three months ended March 31, 2020, from~~ ~~Amortization~~ to ~~Selling, general and administrative~~ ~~expenses, resulting in a corresponding decrease in Adjusted OIBDA.~~

Adjusted OIBDA

We calculate Adjusted OIBDA as operating income (loss) before depreciation, amortization, net (gain) loss on dispositions, stock-based compensation and restructuring charges. We calculate Adjusted OIBDA margin by dividing Adjusted OIBDA by total revenues. Adjusted OIBDA and Adjusted OIBDA margin are among the primary measures we use for managing our business, evaluating our operating performance and planning and forecasting future periods, as each is an important indicator of our operational strength and business performance. Our management believes users of our financial data are best served if the information that is made available to them allows them to align their analysis and evaluation of our operating results along the same lines that our management uses in managing, planning and executing our business strategy. Our management also believes that the presentations of Adjusted OIBDA and Adjusted OIBDA margin, as supplemental measures, are useful in evaluating our business because eliminating certain non-comparable items highlight operational trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures. It is management’s opinion that these supplemental measures provide users of our financial data with an important perspective on our operating performance and also make it easier for users of our financial data to compare our results with other companies that have different financing and capital structures or tax rates.

FFO and AFFO

When used herein, references to “FFO” and “AFFO” mean “FFO attributable to OUTFRONT Media Inc.” and “AFFO attributable to OUTFRONT Media Inc.,” respectively. We calculate FFO in accordance with the definition established by the National Association of Real Estate Investment Trusts (“NAREIT”). FFO reflects net income (loss) attributable to OUTFRONT Media Inc. adjusted to exclude gains and losses from the sale of real estate assets, depreciation and amortization of real estate assets, amortization of direct lease acquisition costs and the same adjustments for our equity-based investments and non-controlling interests, as well as the related income tax effect of adjustments, as applicable. We calculate AFFO as FFO adjusted to include cash paid for direct lease acquisition costs as such costs are generally amortized over a period ranging from four weeks to one year and therefore are incurred on a regular basis. AFFO also includes cash paid for maintenance capital expenditures since these are routine uses of cash that are necessary for our operations. In addition, AFFO excludes restructuring charges and losses on extinguishment of debt, as well as certain non-cash items, including non-real estate depreciation and amortization, stock-based compensation expense, accretion expense, the non-cash effect of straight-line rent, amortization of deferred financing costs and the same adjustments for our non-controlling interests, ~~as well as~~along with the non-cash portion of income taxes, and the related income tax effect of adjustments, as applicable. We use FFO and AFFO measures for managing our business and for planning and forecasting future periods, and each is an important indicator of our operational strength and business performance, especially compared to other REITs. Our management believes users of our financial data are best served

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if the information that is made available to them allows them to align their analysis and evaluation of our operating results along the same lines that our management uses in managing, planning and executing our business strategy. Our management also believes that the presentations of FFO and AFFO, as supplemental measures, are useful in evaluating our business because adjusting results to reflect items that have more bearing on the operating performance of REITs highlight trends in our business

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that may not otherwise be apparent when relying solely on GAAP financial measures. It is management’s opinion that these supplemental measures provide users of our financial data with an important perspective on our operating performance and also make it easier to compare our results to other companies in our industry, as well as to REITs.

Since Adjusted OIBDA, Adjusted OIBDA margin, FFO and AFFO are not measures calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, operating income (loss), net income (loss) attributable to OUTFRONT Media Inc., and revenues, the most directly comparable GAAP financial measures, as indicators of operating performance. These measures, as we calculate them, may not be comparable to similarly titled measures employed by other companies. In addition, these measures do not necessarily represent funds available for discretionary use and are not necessarily a measure of our ability to fund our cash needs.

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Reconciliation of Non-GAAP Financial Measures

The following table reconciles Operating income (loss) to Adjusted OIBDA, and Net income (loss) attributable to OUTFRONT Media Inc. to FFO attributable to OUTFRONT Media Inc. and AFFO attributable to OUTFRONT Media Inc.


		Three Months Ended								Three Months Ended
		March 31,								March 31,
(in millions, except per share amounts)	(in millions, except per share amounts)		2021			2020			(in millions, except per share amounts)		2022			2021
Total revenues	Total revenues		$	259.2		$	385.3		Total revenues		$	373.5		$	259.2

Operating income (loss)	Operating income (loss)		$	(31.0)		$	33.8		Operating income (loss)		$	28.5		$	(31.0)

Net gain on dispositions	Net gain on dispositions		(0.3)			(0.1)			Net gain on dispositions		(0.3)			(0.3)
Depreciation	Depreciation		20.0			21.0			Depreciation		19.3			20.0
Amortization~~(a)~~	Amortization~~(a)~~		16.4			15.0			Amortization~~(a)~~		14.8			16.4
Stock-based compensation	Stock-based compensation		6.0			5.8			Stock-based compensation		7.9			6.0
Adjusted OIBDA~~(a)~~	Adjusted OIBDA~~(a)~~		$	11.1		$	75.5		Adjusted OIBDA~~(a)~~		$	70.2		$	11.1
Adjusted OIBDA(a) margin			4		%	20		%
Adjusted OIBDA margin									Adjusted OIBDA margin		19		%	4		%

Net income (loss) attributable to OUTFRONT Media Inc.			$	(67.7)		$	6.1
Net loss attributable to OUTFRONT Media Inc.									Net loss attributable to OUTFRONT Media Inc.		$	(0.1)		$	(67.7)
Depreciation of billboard advertising structures	Depreciation of billboard advertising structures		14.1			15.5			Depreciation of billboard advertising structures		13.6			14.1
Amortization of real estate-related intangible assets	Amortization of real estate-related intangible assets		12.4			12.0			Amortization of real estate-related intangible assets		13.4			12.4
Amortization of direct lease acquisition costs	Amortization of direct lease acquisition costs		11.2			11.3			Amortization of direct lease acquisition costs		15.3			11.2
Net gain on disposition of real estate assets	Net gain on disposition of real estate assets		(0.3)			(0.1)			Net gain on disposition of real estate assets		(0.3)			(0.3)

Adjustment related to non-controlling interests	Adjustment related to non-controlling interests		(0.1)			(0.1)			Adjustment related to non-controlling interests		(0.1)			(0.1)

FFO attributable to OUTFRONT Media Inc.	FFO attributable to OUTFRONT Media Inc.		(30.4)			44.7			FFO attributable to OUTFRONT Media Inc.		41.8			(30.4)
Non-cash portion of income taxes	Non-cash portion of income taxes		(5.2)			(2.5)			Non-cash portion of income taxes		(4.2)			(5.2)
Cash paid for direct lease acquisition costs	Cash paid for direct lease acquisition costs		(12.1)			(14.9)			Cash paid for direct lease acquisition costs		(16.0)			(12.1)
Maintenance capital expenditures	Maintenance capital expenditures		(3.6)			(4.8)			Maintenance capital expenditures		(4.4)			(3.6)

Other depreciation	Other depreciation		5.9			5.5			Other depreciation		5.7			5.9
Other amortization	Other amortization		4.0			3.0			Other amortization		1.4			4.0

Stock-based compensation	Stock-based compensation		6.0			5.8			Stock-based compensation		7.9			6.0
Non-cash effect of straight-line rent	Non-cash effect of straight-line rent		2.0			1.3			Non-cash effect of straight-line rent		1.0			2.0
Accretion expense	Accretion expense		0.7			0.6			Accretion expense		0.7			0.7
Amortization of deferred financing costs	Amortization of deferred financing costs		1.9			1.3			Amortization of deferred financing costs		1.6			1.9
Loss on extinguishment of debt	Loss on extinguishment of debt		6.3			—			Loss on extinguishment of debt		—			6.3

AFFO attributable to OUTFRONT Media Inc.	AFFO attributable to OUTFRONT Media Inc.		$	(24.5)		$	40.0		AFFO attributable to OUTFRONT Media Inc.		$	35.5		$	(24.5)

~~(a)Consistent with the current year’s presentation, we have reclassified amortization of direct lease acquisition costs of $11.3~~FFO was $41.8 million in the three months ended March 31, ~~2020, from~~ ~~Amortization~~2022, compared to~~Selling, general and administrative~~ ~~expenses, resulting in a corresponding decrease in Adjusted OIBDA.~~

~~FFO in the three months ended March 31, 2021, was~~ a deficit of $30.4 ~~million compared to FFO of $44.7 million in the same prior-year period. AFFOin the three months ended March 31, 2021, was a deficit of $24.5 million compared AFFO of $40.0~~ million in the same prior-year period. The ~~decreases were~~increase in FFO was due primarily to higher operating income, a loss on extinguishment of debt in 2021 and higher amortization of direct lease acquisition costs. AFFO was $35.5 million compared to a deficit of $24.5 million in the same prior-year period. The increase in AFFO was due primarily to ~~the impact of the COVID-19 pandemic on revenues, partially offset by cost reduction measures taken in response to the COVID-19 pandemic.~~higher operating income.

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Analysis of Results of Operations

Revenues

We derive Revenues primarily from providing advertising space to customers on our advertising structures and sites. Our contracts with customers generally cover periods ranging from four weeks to one year. Revenues from billboard displays are recognized as rental income on a straight-line basis over the contract term. Transit and other revenues are recognized over the contract period. (See Note 11. Revenues to the Consolidated Financial Statements.)


		Three Months Ended								Three Months Ended
		March 31,			%					March 31,	%
(in millions, except percentages)	(in millions, except percentages)		2021		2020		Change		(in millions, except percentages)		2022		2021		Change
Revenues:	Revenues:								Revenues:
Billboard	Billboard		$	223.6	$	270.9	(17)	%	Billboard		$	298.2	$	223.6	33	%
Transit and other	Transit and other		35.6		114.4		(69)		Transit and other		75.3		35.6		112
Total revenues	Total revenues		$	259.2	$	385.3	(33)		Total revenues		$	373.5	$	259.2	44

Organic revenues(a):	Organic revenues(a):								Organic revenues(a):
Billboard	Billboard		$	223.6	$	271.7	(18)		Billboard		$	298.2	$	223.6	33
Transit and other	Transit and other		35.6		100.4		(65)		Transit and other		75.3		35.6		112
Total organic revenues(a)	Total organic revenues(a)		259.2		372.1		(30)		Total organic revenues(a)		373.5		259.2		44
Non-organic revenues:	Non-organic revenues:								Non-organic revenues:
Billboard	Billboard		—		(0.8)		*		Billboard		—		—		*
Transit and other	Transit and other		—		14.0		*		Transit and other		—		—		*
Total non-organic revenues	Total non-organic revenues		—		13.2		*		Total non-organic revenues		—		—		*
Total revenues	Total revenues		$	259.2	$	385.3	(33)		Total revenues		$	373.5	$	259.2	44

*Calculation is not meaningful.

(a)Organic revenues exclude ~~revenues associated with a disposition and~~ the impact of foreign currency exchange rates (“non-organic revenues”).

Total revenues ~~decreased~~increased by ~~$126.1~~$114.3 million, or ~~33%~~44%, and organic revenues ~~decreased $112.9~~increased $114.3 million, or ~~30%~~44%, in the three months ended March 31, ~~2021,~~2022, compared to the same prior-year period.

~~In the three months ended March 31, 2020, non-organic revenues exclude the impact of the Sports Disposition and reflect the impact of foreign currency exchange rates.~~

Total billboard revenues ~~decreased $47.3~~increased $74.6 million, or ~~17%~~33%, in the three months ended March 31, ~~2021,~~2022, compared to the same prior-year period, ~~principally driven by a decline~~primarily due to an increase in average revenue per display (yield) as ~~a result of the impact of the COVID-19 pandemic on customer advertising expenditures and overall demand for our services.~~

~~Organic billboard revenues decreased $48.1 million, or 18%,~~we have experienced increases in the three months ended March 31, 2021, compared to the same prior-year period, principally driven by a decline in average revenue per display (yield) as a result of the impact of the COVID-19 pandemic on customer advertising expenditures and overall demand for our services.

Total transit and other revenues ~~decreased $78.8~~increased $39.7 million, or ~~69%~~112%, in the three months ended March 31, ~~2021,~~2022, compared to the same prior-year period, ~~principally~~primarily driven by ~~a decline~~an increase in average revenue per display (yield), as ~~a result of the impact of the COVID-19 pandemic on customer advertising expenditures and~~we have experienced increases in overall demand for our services ~~and~~due to an increase in transit ridership, partially offset by the ~~impact~~loss of ~~the Sports Disposition.~~a transit franchise contract.

Organic transit and other revenues decreased $64.8 million, or 65%, in the three months ended March 31, 2021, compared to the same prior-year period, is due to a decline in average revenue per display (yield) as a result of the impact of the COVID-19 pandemic on customer advertising expenditures and overall demand for our services.

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Expenses


		Three Months Ended								Three Months Ended
		March 31,			%					March 31,	%
(in millions, except percentages)	(in millions, except percentages)		2021		2020		Change		(in millions, except percentages)		2022		2021		Change
Expenses:	Expenses:								Expenses:
Operating	Operating		$	177.6	$	224.8	(21)	%	Operating		$	212.8	$	177.6	20	%
Selling, general and administrative~~(a)~~	Selling, general and administrative~~(a)~~		76.5		90.8		(16)		Selling, general and administrative~~(a)~~		98.4		76.5		29

Net gain on dispositions	Net gain on dispositions		(0.3)		(0.1)		*		Net gain on dispositions		(0.3)		(0.3)		—
Depreciation	Depreciation		20.0		21.0		(5)		Depreciation		19.3		20.0		(4)
Amortization~~(a)~~	Amortization~~(a)~~		16.4		15.0		9		Amortization~~(a)~~		14.8		16.4		(10)
Total expenses	Total expenses		$	290.2	$	351.5	(17)		Total expenses		$	345.0	$	290.2	19

*Calculation is not meaningful.

~~(a)Consistent with the current year’s presentation, we have reclassified amortization~~Table of ~~direct lease acquisition costs of $11.3 million in three months ended March 31, 2020, from~~ Contents~~Amortization~~ to ~~Selling, general and administrative~~ ~~expenses.~~

Operating Expenses


		Three Months Ended								Three Months Ended
		March 31,			%					March 31,	%
(in millions, except percentages)	(in millions, except percentages)		2021		2020		Change		(in millions, except percentages)		2022		2021		Change
Operating expenses:	Operating expenses:								Operating expenses:
Billboard property lease	Billboard property lease		$	94.1	$	102.8	(8)	%	Billboard property lease		$	107.3	$	94.1	14	%
Transit franchise	Transit franchise		39.6		57.8		(31)		Transit franchise		53.7		39.6		36
Posting, maintenance and other	Posting, maintenance and other		43.9		64.2		(32)		Posting, maintenance and other		51.8		43.9		18
Total operating expenses	Total operating expenses		$	177.6	$	224.8	(21)		Total operating expenses		$	212.8	$	177.6	20

Billboard property lease expenses represented ~~42%~~36% of billboard revenues in the three months ended March 31, ~~2021,~~2022, and ~~38%~~42% in the three months ended March 31, ~~2020.~~2021. The decrease in billboard property lease expenses as a percentage of revenues is primarily due to an increase in billboard revenues.

Transit franchise expenses represented ~~131%~~80% of transit display revenues in the three months ended March 31, ~~2021~~2022 and ~~62%~~131% in the three months ended March 31, ~~2020.~~2021. The ~~increase~~decrease in transit franchise expense as a percentage of revenues isare primarily driven by ~~guaranteed minimum annual payments to~~an increase in transit revenue, while the New York Metropolitan Transportation Authority (the “MTA”). was paid guaranteed minimum annual payments in each of the three months ended March 31, 2022 and 2021.

Billboard property lease and transit franchise expenses ~~decreased $26.9~~increased $27.3 million in the three months ended March 31, 2021, compared to the same prior-year period, due primarily to lower billboard and transit revenues resulting from the impact of the COVID-19 pandemic and the impact of agreements with landlords and transit franchise partners to modify our existing minimum lease payments and guaranteed minimum annual payments to revenue share percentages.

~~Posting, maintenance and other expenses decreased $20.3 million, or 32%, in the three months ended March 31, 2021,~~2022, compared to the same prior-year period, primarily due to higher billboard and transit revenues, and higher guaranteed minimum annual payments to the ~~impact~~MTA.

Posting, maintenance and other expenses as a percentage of ~~the COVID-19 pandemic and the related restrictions~~Revenues were 14% in the ~~top DMAs reducing~~three months ended March 31, 2022, and 17% in the three months ended March 31, 2021. Posting, maintenance and other expenses increased $7.9 million, or ~~curtailing customer advertising expenditures~~18%, in the three months ended March 31, 2022, compared to the same prior-year period, primarily due to increased activity resulting in higher posting and ~~overall demand for our services,~~rotation costs, compensation-related expenses, production costs and ~~the impact of the Sports Disposition.~~materials cost.

Selling, General and Administrative Expenses (“SG&A”)

SG&A expenses represented ~~30%~~26% of Revenues in the three months ended March 31, ~~2021~~2022 and ~~24%~~30% of Revenues in the same prior-year period. SG&A expenses ~~decreased $14.3~~increased $21.9 million, or ~~16%~~29%, in the three months ended March 31, ~~2021,~~2022, compared to the same prior-year period, primarily ~~driven by~~due to higher compensation-related expenses, including commissions, salaries and bonuses, and a ~~lower~~higher provision for doubtful ~~allowances~~accounts, both driven by business performance improvements during the period and ~~lower~~the impact of COVID-19 on the first quarter of 2021. The increase in SG&A expenses ~~resulting from~~was partially offset by the ~~Sports Disposition. Consistent with~~impact of market fluctuations on an equity-linked retirement plan offered by the ~~current year’s presentation, we have reclassified amortization of direct lease acquisition costs of $11.3 million in three months ended March 31, 2020 from~~ ~~Amortization~~Company to ~~Selling, general and administrative~~ ~~expenses.~~certain employees.

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Net Gain on Dispositions

Net gain on dispositions was $0.3 million ~~for~~in each of the three months ended March 31, ~~2021, compared to $0.1 million for the same prior-year period.~~2022 and 2021.

Depreciation

Depreciation decreased ~~$1.0~~$0.7 million, or 5%4%, in the three months ended March 31, ~~2021,~~2022, compared to the same prior-year period.

Amortization

Amortization ~~increased $1.4~~decreased $1.6 million, or 9%10%, in the three months ended March 31, ~~2021,~~2022, compared to the same prior-year ~~period,~~period. The increase was principally driven by ~~higher~~lower amortization of intangible assets. ~~Consistent with the current year’s presentation, we have reclassified amortization of direct lease acquisition costs of $11.3 million in three months ended March 31, 2020 from~~ ~~Amortization~~ to ~~Selling, general and administrative~~ ~~expenses.~~

Interest Expense, Net

Interest expense, net, was ~~$34.6~~$30.7 million (including ~~$1.9~~$1.6 million of deferred financing costs) in the three months ended March 31, ~~2021,~~2022, and ~~$29.8~~$34.6 million (including ~~$1.3~~$1.9 million of deferred financing costs) in the same prior-year period. The ~~increase~~decrease in Interest expense, net, was primarily due to a ~~higher~~lower outstanding average debt ~~balance, partially offset by lower interest rates.~~balance.

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Loss on Extinguishment of Debt

In the ~~first quarter of~~three months ended March 31, 2021, we recorded a loss on extinguishment of debt of $6.3 million relating to the redemption of our 5.625% Senior Unsecured Notes due ~~2024.~~2024 in the first quarter of 2021.

Benefit for Income Taxes

Benefit for income taxes ~~increased $3.0~~decreased $2.6 million, or ~~176%~~55%, in the three months ended March 31, ~~2021,~~2022, compared to the same prior-year period due primarily to a ~~higher~~lower taxable REIT subsidiary (“TRS”) loss in the three months ended March 31, ~~2021 compared to the same prior-year period.~~2022.

Net Income (Loss)

Net income before allocation to non-controlling interests was $0.1 million compared to a Net loss before allocation to non-controlling interests ~~was~~of $67.6 ~~million in the three months ended March 31, 2021, compared~~ ~~Net income before allocation to non-controlling interests~~ ~~of $6.3~~ million in the same prior-year period, due primarily to ~~the impact~~higher operating income, as we have experienced increases in customer advertising expenditures and overall demand for our services, and a loss on extinguishment of ~~the COVID-19 pandemic, partially offset by the impact of cost reduction measures taken~~debt in ~~response, and higher interest expense.~~2021.

Segment Results of Operations

We present Adjusted OIBDA as the primary measure of profit and loss for our reportable segments. (See the “Key Performance Indicators” section of this MD&A and Note 19. Segment Information to the Consolidated Financial Statements.)

We currently manage our operations through two operating segments—U.S. Billboard and Transit, which is included in our U.S. Media reportable segment, and International. International does not meet the criteria to be a reportable segment and accordingly, is included in Other. Our segment reporting therefore includes U.S. Media and Other.

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The following table presents our Revenues, Adjusted OIBDA and Operating income (loss) by segment in the three months ended March 31, ~~2021~~2022 and ~~2020. In the third quarter of 2020, we completed the Sports Disposition. Historical operating results for our Sports Marketing operating segment through June 30, 2020, are included in~~ ~~Other~~.2021.

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		Three Months Ended						Three Months Ended
		March 31,						March 31,
(in millions)	(in millions)		2021		2020		(in millions)		2022		2021
Revenues:	Revenues:						Revenues:
U.S. Media	U.S. Media		$	245.4	$	354.7	U.S. Media		$	354.2	$	245.4
Other	Other		13.8		30.6		Other		19.3		13.8
Total revenues	Total revenues		$	259.2	$	385.3	Total revenues		$	373.5	$	259.2

Operating income (loss)	Operating income (loss)		$	(31.0)	$	33.8	Operating income (loss)		$	28.5	$	(31.0)

Net gain on dispositions	Net gain on dispositions		(0.3)		(0.1)		Net gain on dispositions		(0.3)		(0.3)
Depreciation	Depreciation		20.0		21.0		Depreciation		19.3		20.0
Amortization~~(a)~~	Amortization~~(a)~~		16.4		15.0		Amortization~~(a)~~		14.8		16.4
Stock-based compensation~~(b)~~(a)	Stock-based compensation~~(b)~~(a)		6.0		5.8		Stock-based compensation~~(b)~~(a)		7.9		6.0
Total Adjusted OIBDA(a)			$	11.1	$	75.5
Total Adjusted OIBDA							Total Adjusted OIBDA		$	70.2	$	11.1

Adjusted OIBDA:	Adjusted OIBDA:						Adjusted OIBDA:
U.S. Media(a)			$	24.6	$	80.0
Other(a)			(2.0)		—
U.S. Media							U.S. Media		$	80.1	$	24.6
Other							Other		0.6		(2.0)
Corporate	Corporate		(11.5)		(4.5)		Corporate		(10.5)		(11.5)
Total Adjusted OIBDA(a)			$	11.1	$	75.5
Total Adjusted OIBDA							Total Adjusted OIBDA		$	70.2	$	11.1

Operating income (loss):	Operating income (loss):						Operating income (loss):
U.S. Media	U.S. Media		$	(8.6)	$	47.4	U.S. Media		$	49.3	$	(8.6)
Other	Other		(4.9)		(3.3)		Other		(2.4)		(4.9)
Corporate	Corporate		(17.5)		(10.3)		Corporate		(18.4)		(17.5)
Total operating income (loss)	Total operating income (loss)		$	(31.0)	$	33.8	Total operating income (loss)		$	28.5	$	(31.0)

(a)Consistent with the current year’s presentation, we have reclassified amortization of direct lease acquisition costs of $11.3 million in the three months ended March 31, 2020, of which $10.8 million was recorded in our ~~U.S. Media~~ ~~segment and $0.5 million was recorded in~~ ~~Other, from~~ ~~Amortization~~ to ~~SG&A~~ ~~expenses, resulting in a corresponding decrease in Adjusted OIBDA.~~

~~(b)~~Stock-based compensation is classified as Corporate expense.

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U.S. Media


		Three Months Ended										Three Months Ended
		March 31,				%						March 31,	%
(in millions, except percentages)	(in millions, except percentages)		2021			2020			Change		(in millions, except percentages)		2022			2021			Change
Revenues:	Revenues:										Revenues:
Billboard	Billboard		$	212.5		$	256.5		(17)	%	Billboard		$	283.4		$	212.5		33	%
Transit and other	Transit and other		32.9			98.2			(66)		Transit and other		70.8			32.9			115

Total revenues	Total revenues		245.4			354.7			(31)		Total revenues		354.2			245.4			44
Operating expenses	Operating expenses		(166.1)			(202.7)			(18)		Operating expenses		(199.4)			(166.1)			20
SG&A expenses~~(a)~~	SG&A expenses~~(a)~~		(54.7)			(72.0)			(24)		SG&A expenses~~(a)~~		(74.7)			(54.7)			37
Adjusted OIBDA~~(a)~~	Adjusted OIBDA~~(a)~~		$	24.6		$	80.0		(69)		Adjusted OIBDA~~(a)~~		$	80.1		$	24.6		*
Adjusted OIBDA(a) margin			10		%	23		%
Adjusted OIBDA margin											Adjusted OIBDA margin		23		%	10		%

Operating income (loss)	Operating income (loss)		$	(8.6)		$	47.4		(118)		Operating income (loss)		$	49.3		$	(8.6)		*

Net gain on dispositions	Net gain on dispositions		(0.3)			(0.1)			200		Net gain on dispositions		(0.3)			(0.3)			—
Depreciation and amortization~~(a)~~	Depreciation and amortization~~(a)~~		33.5			32.7			2		Depreciation and amortization~~(a)~~		31.1			33.5			(7)
Adjusted OIBDA~~(a)~~	Adjusted OIBDA~~(a)~~		$	24.6		$	80.0		(69)		Adjusted OIBDA~~(a)~~		$	80.1		$	24.6		*

* Calculation is not meaningful.

~~(a)Consistent with the current year’s presentation, we have reclassified amortization of direct lease acquisition costs of $10.8 million in the three months ended March 31, 2020, in our~~ ~~U.S. Media~~ ~~segment from~~ ~~Amortization~~ to ~~SG&A~~ ~~expenses, resulting in a corresponding decrease in Adjusted OIBDA.~~

Total U.S. Media segment revenues ~~decreased $109.3~~increased $108.8 million, or ~~31%~~44%, in the three months ended March 31, ~~2021,~~2022, compared to the same prior-year period, due primarily to ~~a decline in average revenue per display (yield)~~stronger transit revenues and higher billboard revenues. While transit revenues have increased, transit revenues remains below pre-COVID-19 pandemic levels, as ~~a result of the impact of the COVID-19~~overall ridership remains materially below pre-COVID-19 pandemic ~~on customer advertising expenditures and overall demand for our services.~~levels. In the three months ended March 31, ~~2021,~~2022, we generated approximately ~~38%~~41% of our U.S. Media segment revenues from national advertising campaigns and ~~43%~~38% in the same prior-year period.

~~Revenues from~~Billboard revenues in the U.S. Media segment ~~billboards decreased $44.0~~increased $70.9 million, or ~~17%~~33%, in the three months ended March 31, ~~2021,~~2022, compared to the same prior-year period, reflecting ~~a decline~~an increase in average revenue per display (yield) as ~~a result of the impact of the COVID-19 pandemic on customer advertising expenditures and~~we have experienced increases in overall demand for our services.

Transit and other revenues in the U.S. Media segment ~~decreased $65.3~~increased $37.9 million, or ~~66%~~115%, in the three months ended March 31, ~~2021,~~2022, compared to the same prior-year period, driven by ~~a decline~~an increase in average revenue per display (yield) as ~~a result of the impact of the COVID-19 pandemic on customer advertising expenditures and~~we have experienced increases in overall demand for our ~~services.~~services due to an increase in transit ridership, partially offset by the loss of a transit franchise contract.

Operating expenses in the U.S. Media segment ~~operating expenses decreased $36.6~~increased $33.3 million, or ~~18%~~20%, in the three months ended March 31, ~~2021,~~2022, compared to the same prior-year period, primarily driven by ~~lower billboard and transit revenues resulting from the impact of the COVID-19 pandemic and the impact of agreements with landlords and~~higher transit franchise, ~~partners to modify our existing minimum~~billboard lease ~~payments~~ and posting maintenance and other costs, associated with the increase in revenue, as well as higher guaranteed minimum annual payments to ~~revenue share percentages.~~the MTA.

SG&A expenses in the U.S. Media segment ~~SG&A expenses decreased $17.3~~increased $20.0 million, or ~~24%~~37%, in the three months ended March 31, ~~2021,~~2022, compared to the same prior-year period, primarily driven by higher compensation-related expenses, including commissions, salaries and bonuses, and a ~~lower~~higher provision for doubtful ~~allowances and lower compensation-related costs.~~accounts.

U.S. Media segment Adjusted OIBDA ~~decreased $55.4~~increased $55.5 million ~~or 69%,~~ in the three months ended March 31, ~~2021,~~2022, compared to the same prior-year period. Adjusted OIBDA margin was ~~10%~~23% in the three months ended March 31, ~~2021,~~2022, and ~~23%~~10% in the same prior-year period.

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Other


		Three Months Ended										Three Months Ended
		March 31,				%						March 31,	%
(in millions, except percentages)	(in millions, except percentages)		2021			2020			Change		(in millions, except percentages)		2022			2021			Change
Revenues:	Revenues:										Revenues:
Billboard	Billboard		$	11.1		$	14.4		(23)	%	Billboard		$	14.8		$	11.1		33	%
Transit and other	Transit and other		2.7			16.2			(83)		Transit and other		4.5			2.7			67
Total revenues	Total revenues		$	13.8		$	30.6		(55)		Total revenues		$	19.3		$	13.8		40

Organic revenues(a):	Organic revenues(a):										Organic revenues(a):
Billboard	Billboard		$	11.1		$	15.2		(27)		Billboard		$	14.8		$	11.1		33
Transit and other	Transit and other		2.7			2.2			23		Transit and other		4.5			2.7			67
Total organic revenues(a)	Total organic revenues(a)		13.8			17.4			(21)		Total organic revenues(a)		19.3			13.8			40
Non-organic revenues:	Non-organic revenues:										Non-organic revenues:
Billboard	Billboard		—			(0.8)			*		Billboard		—			—			*
Transit and other	Transit and other		—			14.0			*		Transit and other		—			—			*
Total non-organic revenues	Total non-organic revenues		—			13.2			*		Total non-organic revenues		—			—			*
Total revenues	Total revenues		13.8			30.6			(55)		Total revenues		19.3			13.8			40
Operating expenses	Operating expenses		(11.5)			(22.1)			(48)		Operating expenses		(13.4)			(11.5)			17
SG&A expenses~~(b)~~	SG&A expenses~~(b)~~		(4.3)			(8.5)			(49)		SG&A expenses~~(b)~~		(5.3)			(4.3)			23
Adjusted OIBDA~~(b)~~	Adjusted OIBDA~~(b)~~		$	(2.0)		$	—		*		Adjusted OIBDA~~(b)~~		$	0.6		$	(2.0)		*
Adjusted OIBDA(b) margin			(14)		%	—		%
Adjusted OIBDA margin											Adjusted OIBDA margin		3		%	(14)		%

Operating loss			$	(4.9)		$	(3.3)		48
Operating income (loss)											Operating income (loss)		$	(2.4)		$	(4.9)		(51)

Depreciation and amortization~~(b)~~	Depreciation and amortization~~(b)~~		2.9			3.3			(12)		Depreciation and amortization~~(b)~~		3.0			2.9			3
Adjusted OIBDA~~(b)~~	Adjusted OIBDA~~(b)~~		$	(2.0)		$	—		*		Adjusted OIBDA~~(b)~~		$	0.6		$	(2.0)		*

* Calculation is not meaningful.

(a)Organic revenues exclude ~~revenues associated with a disposition and~~ the impact of foreign currency exchange rates (“non-organic revenues”).

~~(b)Consistent with the current year’s presentation, we have reclassified amortization of direct lease acquisition costs of $0.5 million in the three months ended March 31, 2020, in~~ ~~Other~~ ~~from~~ ~~Amortization~~ to ~~SG&A~~ ~~expenses, resulting in a corresponding decrease in Adjusted OIBDA.~~

In the third quarter of 2020, we completed the Sports Disposition. The operating results of our Sports Marketing operating segment through June 30, 2020, are included in our Consolidated Financial Statements.

Total Other revenues ~~decreased $16.8~~increased $5.5 million, or ~~55%~~40%, in the three months ended March 31, ~~2021,~~2022, compared to the same prior-year period, reflecting ~~the Sports Disposition and a decline~~an increase in average revenue per display (yield) as ~~a result of the impact of the COVID-19 pandemic on customer advertising expenditures and overall demand for our services.~~

~~In the three months ended March 31, 2020, non-organic revenues exclude the impact of the Sports Disposition and reflect the impact of foreign currency exchange rates.~~

~~Organic~~ ~~Other~~ ~~revenues decreased $3.6 million, or 21%,~~we have experienced increases in the three months ended March 31, 2021, compared to the same prior-year period, reflecting a decline in average revenue per display (yield) as a result of the impact of the COVID-19 pandemic on customer advertising expenditures and overall demand for our services.

Other operating expenses ~~decreased $10.6~~increased $1.9 million, or ~~48%~~17%, in the three months ended March 31, ~~2021,~~2022, compared to the same prior-year period, primarily driven by ~~the impact of the Sports Disposition and lower billboard and transit revenues.~~higher expenses in Canada. Other SG&A expenses ~~decreased $4.2~~increased $1.0 million, or ~~49%~~23%, in the three months ended March 31, ~~2021,~~2022, compared to the same prior-year period, primarily driven by ~~the impact of the Sports Disposition.~~higher expenses in Canada.

Other ~~incurred~~Adjusted OIBDA was $0.6 million compared to an Adjusted OIBDA loss of $2.0 million in the ~~three months ended March 31, 2021, compared to Adjusted OIBDA of $0.0 million in the~~ same prior-year ~~period. The decrease was~~period, due primarily to ~~a decline~~an increase in average revenue per

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display (yield) ~~as a result of the impact of the COVID-19 pandemic on customer advertising expenditures and overall demand for our services, and the impact of the Sports Disposition.~~.

Corporate

Corporate expenses primarily include expenses associated with employees who provide centralized services. Corporate expenses, excluding stock-based compensation, were ~~$11.5~~$10.5 million in the three months ended March 31, ~~2021,~~2022, compared to ~~$4.5~~$11.5 million in the same prior-year ~~period. The increase was~~period, primarily due to the impact of market fluctuations on an equity-linked retirement plan offered by the Company to certain employees, ~~and~~partially offset by higher compensation-related ~~expenses.~~expenses, including salaries and bonuses.

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Liquidity and Capital Resources


		As of							As of
(in millions, except percentages)	(in millions, except percentages)	March 31, 2021		December 31, 2020		% Change		(in millions, except percentages)	March 31, 2022		December 31, 2021		% Change
Assets:	Assets:							Assets:
Cash and cash equivalents	Cash and cash equivalents	$	560.0	$	710.4	*		Cash and cash equivalents	$	355.7	$	424.8	(16)	%
Restricted cash		1.6		1.6		—	%
Receivables, less allowance ($22.7 in 2021 and $26.3 in 2020)		164.9		209.2		(21)
Receivables, less allowance ($20.3 in 2022 and $18.5 in 2021)								Receivables, less allowance ($20.3 in 2022 and $18.5 in 2021)	265.0		310.5		(15)
Prepaid lease and transit franchise costs	Prepaid lease and transit franchise costs	9.1		5.4		69		Prepaid lease and transit franchise costs	10.3		12.5		(18)

Other prepaid expenses	Other prepaid expenses	13.9		14.4		(3)		Other prepaid expenses	18.5		17.8		4
Other current assets	Other current assets	28.0		33.7		(17)		Other current assets	11.2		11.7		(4)
Total current assets	Total current assets	777.5		974.7		(20)		Total current assets	660.7		777.3		(15)
Liabilities:	Liabilities:							Liabilities:
Accounts payable	Accounts payable	56.8		64.9		(12)		Accounts payable	52.6		64.9		(19)
Accrued compensation	Accrued compensation	30.9		35.0		(12)		Accrued compensation	43.2		74.5		(42)
Accrued interest	Accrued interest	17.5		24.5		(29)		Accrued interest	17.4		30.7		(43)
Accrued lease and transit franchise costs	Accrued lease and transit franchise costs	39.1		65.8		(41)		Accrued lease and transit franchise costs	50.1		60.1		(17)
Other accrued expenses	Other accrued expenses	40.0		38.0		5		Other accrued expenses	46.6		40.3		16
Deferred revenues	Deferred revenues	42.3		29.5		43		Deferred revenues	43.0		30.9		39
Short-term debt		—		80.0		(100)

Short-term operating lease liabilities	Short-term operating lease liabilities	185.7		176.5		5		Short-term operating lease liabilities	194.3		187.5		4
Other current liabilities	Other current liabilities	20.4		20.7		(1)		Other current liabilities	18.6		18.8		(1)
Total current liabilities	Total current liabilities	432.7		534.9		(19)		Total current liabilities	465.8		507.7		(8)
Working capital	Working capital	$	344.8	$	439.8	(22)		Working capital	$	194.9	$	269.6	(28)

We continually project anticipated cash requirements for our operating, investing and financing needs as well as cash flows generated from operating activities available to meet these needs. Due to seasonal advertising patterns and influences on advertising markets, our revenues and operating income are typically highest in the fourth quarter, during the holiday shopping season, and lowest in the first quarter, as advertisers adjust their spending following the holiday shopping season. Further, certain of our municipal transit contracts require guaranteed minimum annual payments to be paid on a monthly or quarterly basis, as applicable.

Our short-term cash requirements primarily include payments for operating leases, guaranteed minimum annual payments, interest, capital expenditures, equipment deployment costs and dividends. Funding for short-term cash needs will come primarily from our cash on hand, operating cash flows, our ability to issue debt and equity securities, and borrowings under the Revolving Credit Facility (as defined below), the AR ~~Securitization Facilities~~Facility (as defined below) or other credit facilities that we may establish, to the extent available.

In addition, as part of our growth strategy, we frequently evaluate strategic opportunities to acquire new businesses, assets or digital technology. Consistent with this strategy, we regularly evaluate potential acquisitions, ranging from small transactions to larger acquisitions, which transactions could be funded through cash on hand, additional borrowings, equity or other securities, or some combination thereof. ~~In response to the ongoing COVID-19 pandemic, we have taken a highly selective approach to new acquisition activity.~~

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Our long-term cash needs include principal payments on outstanding indebtedness and commitments related to operating leases and franchise and other agreements, including any related guaranteed minimum annual payments, and equipment deployment costs. Funding for long-term cash needs will come from our cash on hand, operating cash flows, our ability to issue debt and equity securities, and borrowings under the Revolving Credit Facility or other credit facilities that we may establish, to the extent available.

Although we have taken several actions to date to preserve our financial flexibility and increase our liquidity, our short-term and long-term cash needs and related funding capability may be adversely affected by the impact of the ~~ongoing~~ COVID-19 pandemic if cash on hand and operating cash flows decrease in ~~2021,~~2022, and our ability to issue debt and equity securities and/or borrow under our existing or new credit facilities on reasonable pricing terms, or at all, may become uncertain. (See the “Overview—COVID-19 Impact” section of this MD&A.)

The decrease in working capital as of March 31, ~~2021,~~2022, compared to as of December 31, ~~2020,~~2021, is primarily driven by lower cash and ~~receivables,~~accounts receivable balances due to seasonal advertising patterns and influences on advertising markets as advertisers

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adjust their spending following the holiday shopping season, partially offset by lower ~~short-term debt, accounts payable~~accrued compensation and accrued ~~expenses.~~interest due to the timing of payments.

Under the MTA agreement, which was amended in June 2020 and July 2021 (as amended, the “MTA Agreement”):

•Recoupment of ~~revenues or a guaranteed minimum annual payment. Incremental~~Equipment Deployment Costs. We may retain incremental revenues that exceed an annual base revenue amount ~~will be retained by us~~ for the cost of deploying advertising and communications displays throughout the transit system. As presented in the table below, recoupable MTA equipment deployment costs are ~~being~~ recorded as Prepaid MTA equipment deployment costs and Intangible assets on our Consolidated Statement of Financial Position, and as these costs are recouped from incremental revenues that the MTA would otherwise be entitled to receive, Prepaid MTA equipment deployment costs will be reduced. If incremental revenues generated over the term of the agreement are not sufficient to cover all or a portion of the equipment deployment costs, the costs will not be recouped, which could have an adverse effect on our business, financial condition and results of ~~operation.~~operations. If we do not recoup all costs of deploying advertising and communications screens with respect to the New Inventory by the end of the term of the MTA Agreement, the MTA will be obligated to reimburse us for these costs. Deployment costs in an amount not to exceed $50.7 million, which are deemed authorized before December 31, 2020, will be paid directly by the MTA. For any deployment costs deemed authorized after December 31, 2020, the MTA and the Company will no longer be obligated to directly pay 70% and 30% of the costs, respectively, and these costs will be subject to recoupment in accordance with the MTA Agreement. We did not recoup any equipment deployment costs in ~~the~~ three months ended March 31, ~~2021,~~2022, and it is unlikely we will recoup equipment deployment costs in ~~2021. In June 2020,~~the remainder of 2022. For the full year of 2022, we ~~entered into an amendment to the MTA agreement, pursuant to which (i) for up to $143.0 million of~~expect our MTA equipment deployment costs to be ~~incurred under~~approximately $125.0 million.

•Payments. We must pay to the MTA ~~agreement after June 2020,~~the greater of a percentage of revenues or a guaranteed minimum annual payment. Our payment obligations with respect to guaranteed minimum annual payment amounts owed to the MTA ~~and~~resumed on January 1, 2021, in accordance with the ~~Company will directly pay 70% and 30%~~terms of the ~~costs, respectively, instead of the costs being recoupable from incremental revenues generated under the agreement,~~MTA Agreement, and ~~(ii)~~ any guaranteed minimum annual payment amounts that would have been paid for the period from April 1, 2020 through December 31, 2020 (less any revenue share amounts actually paid during this period using an increased revenue share percentage of 65%) will instead be added in equal increments to the guaranteed minimum annual payment amounts owed for the period from January 1, 2022, through December 31, 2026. ~~Our payment obligations with respect~~The MTA Agreement also provides that if prior to ~~guaranteed minimum annual payment amounts owed~~April 1, 2028 the balance of unrecovered costs of deploying advertising and communications screens throughout the transit system is equal to or less than zero, then in any year following the year in which such recoupment occurs (the “Recoupment Year”), the MTA ~~resumed on January 1, 2021,~~is entitled to receive an additional payment equal to 2.5% of the annual base revenue amount for such year calculated in accordance with the ~~terms~~MTA Agreement, provided that gross revenues in such year (i) were at least equal to the gross revenues generated in the Recoupment Year, and (ii) did not decline by more than 5% from the prior year.

•Term. In July 2021, we extended the initial 10-year term of the MTA ~~agreement, as amended.~~Agreement to a 13-year initial term. We have ~~engaged,~~the option to extend this initial 13-year term for an additional five-year period at the end of the 13-year initial term, subject to satisfying certain quantitative and will continue to engage, in constructive conversations with the MTA regarding possible modifications to the overall scope and term under the MTA agreement. While we are engaging in these conversations with the MTA, we have temporarily suspended deployment beginning in the first quarter of 2021. Accordingly, for the full year of 2021, we expect our MTA equipment deployment costs to be approximately $100.0 million. qualitative conditions.

We may utilize cash on hand and/or incremental third-party financing to fund equipment deployment costs over the next couple of years. However, given the uncertainty in the market around the severity and duration of the COVID-19 pandemic, we cannot reasonably estimate the aggregate financing amount, if any, at this time. As of March 31, ~~2021,~~2022, we have issued surety bonds in favor of the MTA totaling approximately $136.0 million, which amount is subject to change as equipment installations are completed and revenues are generated. We expect transit franchise expenses, as a percentage of revenues, to ~~increase~~decrease in ~~2021~~2022 as compared to ~~2020, and~~2021, but be ~~materially~~ higher than pre-COVID-19 pandemic levels. (See the “Overview—COVID-19 Impact” section of this MD&A.) As indicated in the table below, we incurred ~~$17.4~~$16.9 million related to MTA equipment deployment costs in the three months ended March 31, ~~2021~~2022 (which includes equipment deployment costs related to future deployments), for a total of ~~$368.5~~$463.9 million to date, of which $33.9 million had been recouped from incremental revenues to date and as of March 31, ~~2021, $53.5~~2022, $48.5 million ~~is to be~~has been funded by the MTA. As of March 31, ~~2021, 7,645~~2022, 12,479 digital displays had been installed, of which ~~265~~1,387 installations occurred in the three months ended March 31, ~~2021.~~2022.

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(in millions)	(in millions)	Beginning Balance		Deployment Costs Incurred		Recoupment/MTA Funding		Amortization		Ending Balance		(in millions)	Beginning Balance		Deployment Costs Incurred		Recoupment/MTA Funding		Amortization		Ending Balance
Three months ended March 31, 2021:
Three months ended March 31, 2022:												Three months ended March 31, 2022:
Prepaid MTA equipment deployment costs	Prepaid MTA equipment deployment costs	$	204.6	$	3.6	$	—	$	—	$	208.2	Prepaid MTA equipment deployment costs	$	279.8	$	15.4	$	—	$	—	$	295.2
Other current assets	Other current assets	28.0		9.1		(16.2)		—		20.9		Other current assets	5.2		0.1		(3.1)		—		2.2
Intangible assets (franchise agreements)	Intangible assets (franchise agreements)	58.4		4.7		—		(2.5)		60.6		Intangible assets (franchise agreements)	63.0		1.4		—		(0.6)		63.8
Total	Total	$	291.0	$	17.4	$	(16.2)	$	(2.5)	$	289.7	Total	$	348.0	$	16.9	$	(3.1)	$	(0.6)	$	361.2

Year ended December 31, 2020:
Year ended December 31, 2021:												Year ended December 31, 2021:
Prepaid MTA equipment deployment costs	Prepaid MTA equipment deployment costs	$	171.5	$	33.1	$	—	$	—	$	204.6	Prepaid MTA equipment deployment costs	$	204.6	$	75.2	$	—	$	—	$	279.8
Other current assets	Other current assets	—		44.4		(16.4)		—		28.0		Other current assets	28.0		6.2		(29.0)		—		5.2
Intangible assets (franchise agreements)	Intangible assets (franchise agreements)	38.3		26.0		—		(5.9)		58.4		Intangible assets (franchise agreements)	58.4		14.5		—		(9.9)		63.0
Total	Total	$	209.8	$	103.5	$	(16.4)	$	(5.9)	$	291.0	Total	$	291.0	$	95.9	$	(29.0)	$	(9.9)	$	348.0

Debt

Debt, net, consists of the following:


		As of							As of
(in millions, except percentages)	(in millions, except percentages)	March 31, 2021			December 31, 2020			(in millions, except percentages)	March 31, 2022			December 31, 2021
Short-term debt:

Repurchase Facility		$	—		$	80.0
Total short-term debt		—			80.0

Long-term debt:	Long-term debt:							Long-term debt:

Term loan, due 2026	Term loan, due 2026	597.9			597.8			Term loan, due 2026	598.3			598.2

Senior unsecured notes:	Senior unsecured notes:							Senior unsecured notes:
5.625% senior unsecured notes, due 2024		—			501.3
6.250% senior unsecured notes, due 2025	6.250% senior unsecured notes, due 2025	400.0			400.0			6.250% senior unsecured notes, due 2025	400.0			400.0
5.000% senior unsecured notes, due 2027	5.000% senior unsecured notes, due 2027	650.0			650.0			5.000% senior unsecured notes, due 2027	650.0			650.0
4.250% senior unsecured notes, due 2029	4.250% senior unsecured notes, due 2029	500.0			—			4.250% senior unsecured notes, due 2029	500.0			500.0
4.625% senior unsecured notes, due 2030	4.625% senior unsecured notes, due 2030	500.0			500.0			4.625% senior unsecured notes, due 2030	500.0			500.0
Total senior unsecured notes	Total senior unsecured notes	2,050.0			2,051.3			Total senior unsecured notes	2,050.0			2,050.0

Debt issuance costs	Debt issuance costs	(31.3)			(28.3)			Debt issuance costs	(26.4)			(27.6)
Total long-term debt, net	Total long-term debt, net	2,616.6			2,620.8			Total long-term debt, net	2,621.9			2,620.6

Total debt, net	Total debt, net	$	2,616.6		$	2,700.8		Total debt, net	$	2,621.9		$	2,620.6

Weighted average cost of debt	Weighted average cost of debt	4.3		%	4.5		%	Weighted average cost of debt	4.3		%	4.3		%

Payments Due by Period
(in millions) Total 2021 2022-2023 2024-2025 2026 and thereafter
Long-term debt $ 2,650.0 $ — $ — $ 400.0 $ 2,250.0
Interest 810.0 115.9 226.8 213.9 253.4
Total $ 3,460.0 $ 115.9 $ 226.8 $ 613.9 $ 2,503.4

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	Payments Due by Period
(in millions)	Total		2022		2023-2024		2025-2026		2027 and thereafter
Long-term debt	$	2,650.0	$	—	$	—	$	1,000.0	$	1,650.0
Interest	720.3		118.2		230.6		193.1		178.4
Total	$	3,370.3	$	118.2	$	230.6	$	1,193.1	$	1,828.4

Term Loan

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Revolving Credit Facility

We also have a $500.0 million revolving credit facility, which matures in 2024 (the “Revolving Credit Facility,” together with the Term Loan, the “Senior Credit Facilities”).

As of March 31, ~~2021,~~2022, there were no outstanding borrowings under the Revolving Credit Facility.

Standalone Letter of Credit Facilities

Accounts Receivable Securitization ~~Facilities~~Facility

As of March 31, ~~2021,~~2022, there were no outstanding borrowings under ~~either~~ the AR ~~Facility or the Repurchase~~ Facility. As of March 31, ~~2021,~~2022, there was no borrowing capacity ~~remaining~~ under the AR Facility ~~based on approximately $207.9 million of~~

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~~accounts receivable used as collateral for the AR Securitization Facilities and~~due to a ~~related~~ voluntary temporary suspension of the AR ~~Facility, and there was $80.0 million of borrowing capacity remaining under the Repurchase~~ Facility in accordance with the agreements governing the AR ~~Securitization Facilities.~~Facility; however, as of March 31, 2022, we had approximately $303.2 million of accounts receivable that could be used as collateral for the AR Facility. The commitment fee based on the amount of unused commitments under the AR Facility was immaterial for each of the three months ended March 31, ~~2021~~2022 and ~~2020.~~

~~Senior Unsecured Notes~~

On January 19, 2021, two of our wholly-owned subsidiaries, Outfront Media Capital LLC (“Finance LLC”) and Outfront Media Capital Corporation (“Finance Corp” and, together with Finance LLC, the “Borrowers”) issued $500.0 million aggregate principal amount of 4.250% Senior Unsecured Notes due 2029 (the “2029 Notes”) in a private placement. The 2029 Notes are fully and unconditionally guaranteed on a senior unsecured basis by the Company and each of its direct and indirect domestic subsidiaries that guarantee the Senior Credit Facilities. Interest on the 2029 Notes is payable on January 15 and July 15 of each year, beginning on July 15, 2021. On or after January 15, 2024, the Borrowers may redeem at any time, or from time to time, some or all of the 2029 Notes. Prior to such date, the Borrowers may redeem up to 40% of the aggregate principal amount with the net proceeds of certain equity offerings, provided that at least 50% of the aggregate principal amount of the 2029 Notes will remain outstanding after the redemption.

Debt Covenants

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On April 15, 2020, the Company, along with the Borrowers, and other guarantor subsidiaries party thereto, entered into an amendment (the “Amendment”) to the Credit Agreement. The Amendment provides that for the period from April 15, 2020 through September 30, 2021 (i) the Company’s Consolidated Net Secured Leverage Ratio shall be calculated by substituting the Company’s Consolidated EBITDA for each of the quarterly periods ended June 30, 2020 and September 30, 2020, included in any last twelve month compliance testing period, with the Company’s historical Consolidated EBITDA for each of the quarterly periods ended June 30, 2019 and September 30, 2019, respectively; and (ii) the Company will not make any Restricted Payments (as defined in the Credit Agreement) without the consent of the applicable lenders under the Credit Agreement, subject to certain exceptions such as payments necessary to maintain the Company’s REIT status, including any payments on any class of the Company’s capital stock that is required to be made prior to the payment of a dividend or distribution on the Company’s common stock and the Company’s existing payment obligations to holders of the Class A equity interests in Outfront Canada (as defined in Note 10. ~~Equity~~ ~~to the Consolidated Financial Statements).~~

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Deferred Financing Costs

Interest Rate Swap ~~Agreements~~Agreement

Equity

At-the-Market Equity Offering Program

We have a sales agreement in connection with an “at-the-market” equity offering program (the “ATM Program”), under which we may, from time to time, issue and sell shares of our common stock up to an aggregate offering price of $300.0 million. We have no obligation to sell any of our common stock under the sales agreement and may at any time suspend solicitations and offers under the sales agreement. No shares were sold under the ATM Program during the three months ended March 31, ~~2021.~~2022. As of March 31, ~~2021,~~2022, we had approximately $232.5 million of capacity remaining under the ATM Program.

Series A Preferred Stock Issuance

On April 20, 2020, we issued 400,000 shares of our Series A Convertible Perpetual Preferred Stock (the “Series A Preferred Stock”), par value $0.01 per share. The Series A Preferred Stock ranks senior to the shares of the Company’s common stock with respect to dividend and distribution rights. Holders of the Series A Preferred Stock are entitled to a cumulative dividend accruing at the initial rate of 7.0% per year, payable quarterly in arrears, subject to increases as set forth in the Articles Supplementary, effective as of April 20, 2020 (the “Articles”). Dividends may, at the option of the Company, be paid in cash, in-kind, through the issuance of additional shares of Series A Preferred Stock or a combination of cash and in-kind, until April 20, 2028, after which time dividends will be payable solely in cash. So long as any shares of Series A Preferred Stock remain outstanding, the Company may not, without the consent of a specified percentage of holders of shares of Series A Preferred Stock, declare a dividend on, or make any distributions relating to, capital stock that ranks junior to, or on a parity basis with, the Series A Preferred Stock, subject to certain exceptions, including but not limited to (i) any dividend or distribution in cash or capital stock of the Company on or in respect of the capital stock of the Company to the extent that such dividend or distribution is necessary to maintain the Company’s status as a REIT; and (ii) any dividend or distribution in cash in respect of our common stock that, together with the dividends or distributions during the 12-month period immediately preceding such dividend or distribution, is not in excess of 5% of the aggregate dividends or distributions paid by the Company necessary to maintain its REIT status during such 12-month period. If any dividends or distributions in respect of the shares of our common stock are paid in cash, the shares of Series A Preferred Stock will participate in the dividends or distributions on an as-converted basis up to the amount of their accrued dividend for such quarter, which amounts will reduce the dividends payable on the shares of Series A Preferred Stock dollar-for-dollar for such quarter. The Series A Preferred Stock is convertible at the option of any holder at any time into shares of our common stock at an initial conversion price of $16.00 per share and an initial conversion rate of 62.50 shares of our common stock per share of Series A Preferred Stock, subject to certain anti-dilution adjustments and a share cap as set forth in the Articles. Subject to certain conditions set forth in the Articles (including a change of control), each of the Company and the holders of the Series A Preferred Stock may convert or redeem the Series A Preferred Stock at the prices set forth in the Articles, plus any accrued and unpaid dividends.

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On March 1, 2022, 275,000 shares of Series A Preferred Stock were converted into approximately 17.4 million shares of the Company’s common stock, which included $3.2 million of accrued and unpaid dividends through and including the conversion date that were settled in the Company’s common stock in accordance with the Articles. As of March 31, 2022, the maximum number of shares of common stock that could be required to be issued on conversion of the outstanding shares of Series A Preferred Stock was approximately 7.8 million shares.

Cash Flows

The following table presents our cash flows in the three months ended March 31, ~~2021~~2022 and ~~2020.~~2021.

Three Months Ended
March 31, %
(in millions, except percentages) 2021 2020 Change
Cash provided by (used for) operating activities $ (10.8) $ 14.9 *
Cash used for investing activities (28.3) (26.7) 6 %
Cash provided by (used for) financing activities (111.6) 442.2 *
Effect of exchange rate changes on cash, cash equivalents and restricted cash 0.3 (1.7) *
Net increase (decrease) in cash, cash equivalents and restricted cash $ (150.4) $ 428.7 *


	Three Months Ended
	March 31,				%
(in millions, except percentages)	2022		2021		Change
Net cash flow provided by (used for) operating activities	$	20.5	$	(10.8)	*
Net cash flow used for investing activities	(27.8)		(28.3)		(2)	%
Net cash flow used for financing activities	(62.4)		(111.6)		(44)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	0.6		0.3		*
Net decrease in cash, cash equivalents and restricted cash	$	(69.1)	$	(150.4)	*

*Calculation is not meaningful.

Cash ~~used for~~provided by operating activities was ~~$10.8~~$20.5 million in the three months ended March 31, ~~2021,~~2022, compared to Cash ~~provided by~~used for operating activitiesof ~~$14.9~~$10.8 million in the same prior-year period, ~~driven by the impact of the COVID-19 pandemic,~~due primarily to a lower net loss in 2022 compared to 2021 due to increases in overall demand for our services, partially offset by an increase in accrued expenses and an increase in prepaid MTA equipment deployment costs. In the ~~impact~~three months ended March 31, 2022, we paid net cash of ~~cost reduction measures taken in response~~$12.4 million related to ~~the COVID-19 pandemic.~~MTA equipment deployment costs and installed 1,387 digital displays. In the three months ended March 31, 2021, we received net cash of $3.5 million related to MTA equipment deployment costs and installed 265 digital displays. ~~In the three months ended March 31, 2020, we paid $18.2 million related to MTA equipment deployment costs.~~

Cash used for investing activities ~~increased $1.6~~decreased $0.5 million, or 6%2%, in the three months ended March 31, ~~2021,~~2022, compared to the same prior-year period, due primarily to ~~higher~~lower cash paid for acquisitions and MTA franchise rights ~~partially offset by~~and lower ~~cash paid for capital expenditures.~~proceeds from dispositions.

The following table presents our capital expenditures in the three months ended March 31, ~~2021~~2022 and ~~2020.~~2021.


		Three Months Ended							Three Months Ended
		March 31,				%			March 31,				%
(in millions, except percentages)	(in millions, except percentages)	2021		2020		Change		(in millions, except percentages)	2022		2021		Change
Growth	Growth	$	5.8	$	13.4	(57)	%	Growth	$	12.5	$	5.8	116	%
Maintenance	Maintenance	3.6		4.8		(25)		Maintenance	4.4		3.6		22
Total capital expenditures	Total capital expenditures	$	9.4	$	18.2	(48)		Total capital expenditures	$	16.9	$	9.4	80

Capital expenditures ~~decreased $8.8~~increased $7.5 million, or ~~48%~~80%, in the three months ended March 31, ~~2021,~~2022, compared to the same prior-year period, primarily due to ~~lower spending on~~growth in digital ~~billboard and transit display projects, office remodel projects, vehicles and safety, partially offset by higher spending on our technology platform.~~displays.

For the full year of ~~2021,~~2022, we expect our capital expenditures to be approximately $85.0 million, which will be used primarily for growth in digital displays, ~~maintenance and safety-related projects,~~ software and technology, ~~and to renovate~~the renovation of certain office ~~facilities.~~facilities, safety-related projects and maintenance. This estimate does not include equipment deployment costs that will be incurred in connection with the MTA agreement (as described above), which will be recorded as Prepaid MTA equipment deployment costs and Intangible assets on our Consolidated Statement of Financial Position, as applicable.

Cash used byfor financing activities ~~was $111.6~~decreased $49.2 million, or 44%, in the three months ended March 31, ~~2021,~~2022, compared to~~Cash provided by financing activities~~ ~~of $442.2 million in~~ the same prior-year period. In the three months ended March 31, 2022, we paid total cash dividends of $51.5 million on our common stock, the Series A Preferred Stock and vested restricted share units granted to employees. In the three months ended March 31, 2021, we made a repayment of $80.0 million under ~~the Repurchase Facility~~a 364-day uncommitted structured repurchase facility, which expired on June 29, 2021, and paid total cash dividends of $7.3 million on the Series A Preferred Stock and vested restricted share units granted to employees. In the three months ended March 31, 2020, we drew net borrowings of $495.0 million on our Revolving Credit Facility to enhance our liquidity position in response to the impact of the COVID-19 pandemic, drew net borrowings of $15.0 million on the AR Securitization Facilities and paid cash dividends of $55.6 million on our common stock.

Cash paid for income taxes was ~~$0.5~~$2.1 million for in the three months ended March 31, ~~2021~~2022 and ~~$0.8~~$0.5 million in the three months ended March 31, ~~2020.~~

2021.

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Off-Balance Sheet Arrangements

Our off-balance sheet commitments primarily consist of guaranteed minimum annual payments. (See Note 18. Commitments and Contingencies to the Consolidated Financial Statements for information about our off-balance sheet commitments.)

Critical Accounting Policies

The preparation of our financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. On an ongoing basis, we evaluate these estimates, which are based on historical experience and on various assumptions that we believe are reasonable under the circumstances, including the impact of extraordinary events such as the COVID-19 pandemic. The result of these evaluations forms the basis for making judgments about the carrying values of assets and liabilities and the reported amount of revenues and expenses that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions, including the severity and duration of the COVID-19 pandemic.

For accounting policies we consider to be the most critical as they are significant to our financial condition and results of operations, and require significant judgment and estimates on the part of management in their application, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” in our Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, filed with the SEC on February ~~26, 2021.~~24, 2022.

For a summary of our significant accounting policies, see Item 8., Note 2. Summary of Significant Accounting Policies to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, filed with the SEC on February ~~26, 2021.~~24, 2022.

Accounting Standards

See Note 2. New Accounting Standards to the Consolidated Financial Statements for information about the adoption of new accounting standards and recent accounting pronouncements.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

We have made statements in this MD&A and other sections of this Quarterly Report on Form 10-Q that are forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “could,” “would,” “may,” “might,” “will,” “should,” “seeks,” “likely,” “intends,” “plans,” “projects,” “predicts,” “estimates,” “forecast” or “anticipates” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions related to our capital resources, portfolio performance and results of operations, including but not limited to the impact of the COVID-19 pandemic on our capital resources, portfolio performance and results of operations.

Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and may not be able to be realized. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements:

•Declines in advertising and general economic conditions, including declines caused by the COVID-19 pandemic;

•The severity and duration of the COVID-19 pandemic and any other pandemics, and the impact on our business, financial condition and results of operations;

•Competition;

•Government regulation;

•Our ability to implement our digital display platform and deploy digital advertising displays to our transit franchise partners, including interruptions and reductions in demand caused by the impact of the COVID-19 pandemic;

•Losses and costs resulting from recalls and product liability, warranty and intellectual property claims;

•Our ability to obtain and renew key municipal contracts on favorable terms;

•Taxes, fees and registration requirements;

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•Decreased government compensation for the removal of lawful billboards;

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•Content-based restrictions on outdoor advertising;

•Seasonal variations;

•Acquisitions and other strategic transactions that we may pursue could have a negative effect on our results of operations;

•Dependence on our management team and other key employees;

•Diverse risks in our Canadian business;

•Experiencing a cybersecurity incident;

•Changes in regulations and consumer concerns regarding privacy, information security and data, or any failure or perceived failure to comply with these regulations or our internal policies;

•Asset impairment charges for our long-lived assets and goodwill;

•Environmental, health and safety laws and regulations;

•Our substantial indebtedness;

•Restrictions in the agreements governing our indebtedness;

•Incurrence of additional debt;

•Interest rate risk exposure from our variable-rate indebtedness;

•Our ability to generate cash to service our indebtedness;

•Cash available for distributions;

•Hedging transactions;

•The ability of our board of directors to cause us to issue additional shares of stock without common stockholder approval;

•Certain provisions of Maryland law may limit the ability of a third party to acquire control of us;

•Our rights and the rights of our stockholders to take action against our directors and officers are limited;

•Our failure to remain qualified to be taxed as a REIT;

•REIT distribution requirements;

•Availability of external sources of capital;

•We may face other tax liabilities even if we remain qualified to be taxed as a REIT;

•Complying with REIT requirements may cause us to liquidate investments or forgo otherwise attractive opportunities;

•Our ability to contribute certain contracts to a TRS;

•Our planned use of TRSs may cause us to fail to remain qualified to be taxed as a REIT;

•REIT ownership limits;

•Complying with REIT requirements may limit our ability to hedge effectively;

•Failure to meet the REIT income tests as a result of receiving non-qualifying income;

•The Internal Revenue Service may deem the gains from sales of our outdoor advertising assets to be subject to a 100% prohibited transaction tax; and

•Establishing operating partnerships as part of our REIT structure.

While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements in this Quarterly Report on Form 10-Q apply as of the date of this report or as of the date they were made and, except as required by applicable law, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could impact our future results, performance or transactions, see the section entitled “Risk Factors” in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, filed with the SEC on February ~~26, 2021.~~24, 2022. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We are exposed to market risk related to commodity prices and foreign currency exchange rates, and to a limited extent, interest rates and credit risks.

Commodity Price Risk

We incur various operating costs that are subject to price risk caused by volatility in underlying commodity values. Commodity price risk is present in electricity costs associated with powering our digital billboard displays and lighting our traditional static billboard displays at night.

We do not currently use derivatives or other financial instruments to mitigate our exposure to commodity price risk. However, we do enter into contracts with commodity providers to limit our exposure to commodity price fluctuations. For the year ended

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December 31, ~~2020,~~2021, such contracts accounted for ~~17.7%~~11.5% of our total utility costs. As of March 31, ~~2021,~~2022, we had active electricity purchase agreements with fixed contract rates for locations throughout Illinois, New Jersey, Pennsylvania and Texas, which expire at various dates through June 2024.

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Foreign Exchange Risk

Foreign currency translation risk is the risk that exchange rate gains or losses arise from translating our Canadian business’s statements of earnings and statements of financial position from functional currency to our reporting currency (the U.S. Dollar) for consolidation purposes. Any gain or loss on translation is included within comprehensive income and Accumulated other comprehensive income on our Consolidated Statement of Financial Position. The functional currency of our international subsidiaries is their respective local currency. As of March 31, ~~2021,~~2022, we have ~~$0.1~~$1.4 million of unrecognized foreign currency translation ~~losses~~gains included within Accumulated other comprehensive loss on our Consolidated Statement of Financial Position.

Substantially all of our transactions at our Canadian subsidiary are denominated in their local functional currency, thereby reducing our risk of foreign currency transaction gains or losses.

We do not currently use derivatives or other financial instruments to mitigate foreign currency risk, although we may do so in the future.

Interest Rate Risk

We are subject to interest rate risk to the extent we have variable-rate debt outstanding including under the Senior Credit Facilities and the AR ~~Securitization Facilities.~~Facility.

As of March 31, ~~2021,~~2022, we had a $600.0 million variable-rate Term Loan due 2026 outstanding, which has an interest rate of ~~1.9%~~2.2% per year. An increase or decrease of 1/4% in our interest rate on the Term Loan will change our annualized interest expense by approximately ~~$1.0~~$1.5 million.

As of March 31, ~~2021,~~2022, there were no outstanding borrowings under ~~either~~ the AR ~~Facility or the Repurchase~~ Facility.

We have ~~several~~an interest rate cash flow swap ~~agreements~~agreement to effectively convert a portion of our LIBOR-based variable rate debt to a fixed rate and hedge our interest rate risk related to such variable rate debt. The fair value of ~~these~~the swap ~~positions~~position was a net unrecognized loss of approximately ~~$4.3~~$0.1 million as of March 31, ~~2021, and~~2022, which is included in Other current liabilities on our Consolidated Statement of Financial Position. The following table provides information about our interest rate swap ~~agreements,~~agreement, which ~~are~~is sensitive to changes in interest rates. Notional amounts are used to calculate the contractual cash flows to be exchanged under the ~~agreements.~~agreement.


(in millions, except percentages)	(in millions, except percentages)	2021			2022			2023			2024			2025			2026			Thereafter			Total		Fair Value Loss as of 3/31/21		(in millions, except percentages)	2022			2023			2024			2025			2026			2027			Thereafter			Total		Fair Value Loss as of 3/31/22
Pay fixed/receive variable	Pay fixed/receive variable	$	150.0		$	50.0		$	—		$	—		$	—		$	—		$	—		$	200.0	$	4.3	Pay fixed/receive variable	$	50.0		$	—		$	—		$	—		$	—		$	—		$	—		$	50.0	$	0.1
Average pay rate	Average pay rate	2.7		%	1.8		%	—		%	—		%	—		%	—		%	—		%					Average pay rate	1.8		%	—		%	—		%	—		%	—		%	—		%	—		%
Average receive rate(a)	Average receive rate(a)	one-month LIBOR			one-month LIBOR			—			—			—			—			—							Average receive rate(a)	one-month LIBOR			—			—			—			—			—			—

(a)The one-month LIBOR rate was approximately ~~0.1%~~0.5% as of March 31, ~~2021.~~2022.

Credit Risk

In the opinion of our management, credit risk is limited due to the large number of customers and advertising agencies utilized. We perform credit evaluations on our customers and agencies and believe that the allowances for credit losses are adequate. We ~~have~~ experienced an increase in credit losses as a result of the COVID-19 pandemic and accordingly, we recorded additional provisions for doubtful accounts in 2020. Provisions for doubtful accounts have increased in the three months ended March 31, 2022, compared to the same prior-year period, driven by increased business activity. We expect provisions for doubtful accounts to ~~decline in 2021.We~~continue to increase through the remainder of the year. We do not currently use derivatives or other financial instruments to mitigate credit risk.

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Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), our management has carried out an evaluation, under the supervision of and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 13a-15(e) of the Exchange Act, as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures as of the end of the period covered by this report, were effective to provide reasonable assurance that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting, as defined in Rule 13a-15(f) under the Exchange Act, during the period covered by this Quarterly Report on Form 10-Q that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.

Limitations on Effectiveness of Disclosure Controls and Procedures and Internal Control Over Financial Reporting

In designing and evaluating our disclosure controls and procedures and internal control over financial reporting, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures and internal control over financial reporting must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

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PART II

Item 1. Legal Proceedings.

On an ongoing basis, we are engaged in lawsuits and governmental proceedings and respond to various investigations, inquiries, notices and claims from national, state and local governmental and other authorities (collectively, “litigation”). Litigation is inherently uncertain and always difficult to predict. Although it is not possible to predict with certainty the eventual outcome of any litigation, in our opinion, none of our current litigation is expected to have a material adverse effect on our results of operations, financial position or cash flows.

Item 1A. Risk Factors.

We have disclosed the risk factors affecting our business, results of operations and financial condition in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, filed with the SEC on February 26, 2021. The impact of the COVID-19 pandemic described in this Quarterly Report on Form 10-Q have heightened certain of the risks disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020, and such risk factors are further qualified by the information relating to the COVID-19 pandemic described in this Quarterly Report on Form 10-Q.24, 2022. There have been no material changes from the risk factors previously disclosed.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Unregistered Sales of Equity Securities

None.

Purchases of Equity Securities by the Issuer

Total ~~Number~~number of ~~Shares~~shares
~~Purchased~~ purchased

Average ~~Price Paid Per Share~~price paid per share

Total ~~Number~~number of ~~Shares Purchased~~shares purchased as ~~Part~~part of ~~Publicly Announced Programs~~publicly announced plans or programs

~~Remaining Authorizations~~Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs

January 1, ~~2021~~2022 through January 31, ~~2021~~2022

—

February 1, ~~2021~~2022 through February 28, ~~2021~~2022

—

March 1, ~~2021~~2022 through March 31, ~~2021~~2022

—

Total

—

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

None.

Item 5. Other Information.

None.

Item 6. Exhibits.

See Exhibit Index immediately following this Item, which is incorporated herein by reference.

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EXHIBIT INDEX


Exhibit Number						Description

3.1						Articles of Amendment and Restatement of OUTFRONT Media Inc. effective March 28, 2014, as amended by the Articles of Amendment of OUTFRONT Media Inc. effective November 20, 2014 and June 10, 2019 (incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-36367), filed on June 10, 2019).

3.2						Amended and Restated Bylaws of OUTFRONT Media Inc. (incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-36367), filed on February 26, 2019).

3.3						Articles Supplementary of OUTFRONT Media Inc. effective April 20, 2020 (incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-36367), filed on April 21, 2020).

~~4.1~~						Indenture, dated as of January 19, 2021, by and among Outfront Media Capital LLC, Outfront Media Capital Corporation, the guarantors named therein and Deutsche Bank Trust Company Americas (including the Form of Senior Notes) (incorporated herein by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K (File No. 001-36367), filed on January 19, 2021).

~~10.1~~						~~Form of Certificate and Terms and Conditions for Performance-Based Restricted Share Units Awards with Time Vesting under the OUTFRONT Media Inc. Amended and Restated Omnibus Stock Incentive Plan.~~

~~10.2~~						~~Form of Certificate and Terms and Conditions for Restricted Shares Units Awards with Time Vesting granted under the OUTFRONT Media Inc. Amended and Restated Omnibus Stock Incentive Plan.~~

~~10.3~~						Form of Certificate and Terms and Conditions for One-Time Performance-Based Restricted Share Units Awards with Time Vesting under the OUTFRONT Media Inc. Amended and Restated Omnibus Stock Incentive Plan.

~~10.4~~						~~Form of Certificate and Terms and Conditions for One-Time Restricted Share Units Awards with Time Vesting granted under the OUTFRONT Media Inc. Amended and Restated Omnibus Stock Incentive Plan.~~

31.1						Certification of the Chief Executive Officer of OUTFRONT Media Inc. pursuant to Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2						Certification of the Chief Financial Officer of OUTFRONT Media Inc. pursuant to Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1						Certification of the Chief Executive Officer of OUTFRONT Media Inc. furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley act of 2002.

32.2						Certification of the Chief Financial Officer of OUTFRONT Media Inc. furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley act of 2002.

101.INS						XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH						Inline XBRL Taxonomy Extension Schema

101.CAL						Inline XBRL Taxonomy Calculation Linkbase

101.DEF						Inline XBRL Taxonomy Definition Document

101.LAB						Inline XBRL Taxonomy Label Linkbase

101.PRE						Inline XBRL Taxonomy Presentation Linkbase

104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

OUTFRONT MEDIA INC.

By:

/s/ Matthew Siegel

Name:

Matthew Siegel

Title:

Executive Vice President and

Chief Financial Officer

(Principal Financial Officer)

Date: May ~~5, 2021~~3, 2022

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	Activity	Weighted Average Per Share Grant Date Fair Market Value
Non-vested as of December 31, 2020	2,208,059	$	24.80
Granted:
RSUs	954,350	21.48
PRSUs	567,571	23.34
Vested:
RSUs	(651,997)	24.55
PRSUs	(239,202)	21.81
Forfeitures:
RSUs	(6,178)	25.48
PRSUs	(259,086)	30.63
Non-vested as of March 31, 2021	2,573,517	23.00


	Activity	Weighted Average Exercise Price
Outstanding as of December 31, 2020	103,413	$	26.39


Outstanding as of March 31, 2021	103,413	26.39

Exercisable as of March 31, 2021	103,413	26.39