OUT - Earnings call transcript Q3 2017

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Operator

Good day, and welcome to the Outfront Media Third Quarter 2017 Earnings Conference Call. At this time, I would like to turn the conference over to Greg Lundberg, Senior Vice President of Investor Relations. Please go ahead.

Greg Lundberg

Good afternoon, everybody. Thank you for joining our 2017 third quarter earnings call.

are Shassian, Chairman Chief Executive today Officer; Chief Financial call Donald and Vice the Jeremy and Male, Executive Officer. On President and up question-and-answer discussion lines a of financial we’ll After our for session. open a results, the

SEC to You website. the Investor release and filings, on today’s basis, earnings and this will today’s We’ll on call. after refer the including call can And reconciliations any of of an to an adjusted OIBDA XX-K. on our be audio made slide archive find also page certain for could references non-GAAP differ call be call measures presentation XXXX Relations our may And financial the from to Form include other non-GAAP statements, our has and cause well. release concluded, available actual of turn are as it that Jeremy. results our are statements the in earnings over with This I’ll conference measures on forward-looking presentation, slide financial there that, our materials, materially the to the OIBDA appendix in earnings will relevant these forward-looking in website, And factors listed outfrontmedia.com. and and

Jeremy Male

the everyone. Greg, turning for Thanks really company. marks afternoon, call point a and This good

to approximately billboard business of and quarter. advertising level U.S. guidance the year XXXX. recent we talk XX% during of very as The begin full a about year any anticipated the same agreement second With new quarter. growth with shape gave detail, we’re before grew But our third the growth which review our Local in similar We X.X% also trajectory. back digital across we in-line the with and our announcements as will quarter August. MTA, solidly the the transformation position was the New York of and a organic grew transit with really XX in to ultimately revenues we let’s enhance you more the

return once sufficient to sequential but side positive the again some to National we saw not improvement On growth.

some was this flat Our on revenues OIBDA a control call. while this slightly also closer the growth detail saw is which on by led transit cost billboard were improvement earlier provide year. later from we good very grow to organic will Don and marked With

was but as is focus improving well billboard is So doing National and increase generation. the transit Local doing expected. our is our quarter particularly billboard to well, cash on

the and I talk quarter about more for fourth digital guidance come to a Don our a revenue results. review you on in-depth hand back and quarterly call our Before update let give over me of

Donald Shassian

in X, and turn our afternoon, call The of results. being thank financial of high-level low this some key Latin that taxes, revenue not digit performance very to OIBDA which with towards billboard an in drive maintenance This year-over-year interest fall helped growth through did solid transit on was a still that Please XXXX you on our control stronger increase have single is to precluded basis. America Good we OIBDA. nine of a of everyone, weighted performance combined revenues summary months a today. Nevertheless slightly in that and note from the table down one our quarter Please cost for Slide resulted were with is which takeaway combined of metrics. shows good year-over-year AFFO CapEx and year-over-year.

on advertising in organic was and local. reflects revenues Total increased increased National X.X% revenues X.X%. both We reported the reported a basis. review U.S. organic growth Billboard were U.S. down revenues Media increased and partially slide will offset that by our only decline X.X% X. X.X%, in start on revenues with this organic

revenues. our two addition are there In other impacting items

had a Texas prevent in We removing overall. minimal by wind damage our August vinyl and First, great in effort saw to hurricanes to in structures. Florida dedicated our physical the and impact September employees

completed quarter did of and a for we quarter principally secondly, and decrease the four These clusters drive a portfolio lost impacted contracts however, billboard the in in but This of board static market exchanged portfolio growth and declines Rates quarter our up driven of by these also impact U.S. net Other especially was won primarily time. by In digital transit principally digital. advertising organically, on reserve an for of revenues outside by X.X%, point growth is local negative blended slight acquisition occupancy. again that claims short-term drive Same the to in sports part collection And the Billboard operating was yield the During segment. and our entire as basis reported in two Organic two customers some during addition I’ll X of once yield June. and solid were by up MBTA illustrates at of million the lost down segment of were drivers the overview driven reduction that revenues quarter. this board basis revenue our are Absent of of National slightly. events isolates increased. growth the up year-to-date. a was revenue for by around in been positive, Canadian Boston also for our events. the the $X.X prime July was & broader U.S. were swap market. potential in the which static representing record numerous was turn in down to also growth however was non-strategic our X.X%, Other, revenue changes reflecting Boston. digital a an XX.X% Please of was main while decrease by the great presentation we same offset yield up quarter to slightly change marketing comparable expenses. billboards the as QX the quarter Canada digital will quarter quarter. out where the is business effect decline a levels This these was slide during asset boards legacy this portion the same wherein portfolio, a did on offset last in in future would revenue across have we for assets revenue billboard overall X, On which swap

Our for compensation the reported are three X.X% the I to up up out to in There for year-over-year stock-based items and for point quarter expenses want understand excluding months. X.X% us. nine were order you

and segment on was First, April the several related segment contracts; includes renewals Secondly, Other long-term XXXX in X, Media higher U.S. recent the Boston; in Marketing XXXX. QX fees a franchise to XXXX of divested Latin MBTA the expenses expenses in America Sports of reflects third, and other

stated the X, were Page slightly basis, for comparable can our a and for year. on has As down been on were you expenses two bottom controllable see at more which to the of flat closer charts quarter goal our year-to-date, the the

to We’re investment Even revenue future goal also positive remains OIBDA invest can our expenses $X.X with XXXX. our to growth. these expenses growth you flat million with the see quarter. continuing business slightly X, On for showed this of controllable in strategic during keep adjusted development slide

of We’re from we like it to it the part where marked this the now be, first improvement in noting year. is declines the worth a

in on quarter X.X% digital our total $XX.X slide to of expenditures XX, Growth X% the a for were revenues, significant initiatives. million and was year Turning of X.X%. Growth the total. quarter was or in the during spending reflects maintenance spending and capital increase

investments in and the primarily XX see boards the small of Boston. discretionary quarter good digital built returns the we’ve Canada in investments to-date. and our good we very U.S. converted continued the from We and expansion about in for to future During feel growth these X liveboards continue made

our would out below prior of as end ahead increase XXXX growth of pursuing. be spending does a all MTA estimated New For guidance it is that is this CapEx, prior displays of of This our be agreement guidance and our on to CapEx to expenditures point $XX not CapEx is capital for growth digital also include XXXX high related might York. our rollout I like based maintenance the in $XX timing opportunities new guidance. approximately range this incremental the digital our under we’re million million, some to slightly

not cash not recorded outlays significant be it that these XXXX, capital as in will While expenditures. be will

on economic of As look the sheet you for XX for this agreement for allows outlays which recorded assets, assets will intangible to Please turn be a and appointment at incremental the these the revenues. retention the of reflects may of balance prepaid slide structure recovery AFFO. recall as now

due you CapEx. sequential higher to quarter leased can despite was we’ve each cash higher quarterly decrease and interest performance As demonstrated see improvement year-over-year expense in taxes, QX costs, and maintenance acquisition this AFFO OIBDA, in the In AFFO slightly year.

continue AFFO improving this quarter. expect We trend in the fourth to

prior to will guidance continued believe driver is However, in billboard be key to achieve full unlikely a our leads National on AFFO. advertising softness year recovery we that us in for particular and a

X%. and approximately level. Our ratio X% XX%. to when full AFFO XX% XXXX established XX XX zone current our dividend consensus went dividend is year down month This a and likely down compared set we the with trailing $XXX to expectation still million approximately is payout shows Slide the of year our in-line of that is be of original we public

use XXX%. ratio Our our and basis $XX.X this was The was cash XX of CapEx explaining acquisition includes payout of capital this dividend number I’d lease metric on however like higher calculation. spend XX month free month million and payout working flow to free costs. higher of cash trailing free moment on flow a $XXX $XX.X flow million cash trailing including million

fact increase we’re fixed extensions in use that’s revenue very an the past. share structured to to $XX As following the amounts In The with In true-up currently operating stated reflects our earlier share no structure MTA decision revenue currently contract that with true-ups million in under year. we working XXXX, the discretionary in extensions actual our digital made investments includes the pay the the year. have payment payments our XXXX following annual the been a a are assets. monthly higher different CapEx capital relating to

the As XXXX, only in revenue not paid result, currently. share share also revenue true-up paying a we’re XXXX higher but the we

in timing. cash as not basis. matters quarterly billboard the recurring ratio On Slide the year a principle business business per back payout of December $X.XX of it change shareholders on cash shows new on Board into have on record is of at as MTA are XXXX. our highlight close terms cash an and an is XXXX on and X, balance this XXXX. had improvement December sheet. of the Directors bring working approved revenues The of our generation dividend not October cash use to this capital indication XX, was an So it impact flow XX% XXXX, our our of this share zone XXXX payable for XX will of XX, and of a onetime a an this true much increased to indication payment in These

As of entered under end three-year of position on accounts including cash, $XXX.X credit million securitization receivable new and facility facility $XX $XXX.X a our into liquidity of the million of of revolving the million June $XX quarter on XX. availability was availability our million

Our our longstanding focused to net goal OIBDA of is we’ll quarter further X.X ratio which target X range through times unchanged from and last on debt to to growth paydown. times, times. our We X.X achieve this in remain reduce leverage of

be We will at and flow. agreement also believe that OIBDA, cash AFFO both outset the terms the to of MTA the accretive

Let back over Jeremy. turn it me now to

Jeremy Male

Don. moving And Thanks onto XX. you, Slide

fourth color give quarter. now me Let you our on some

again and We expect similar billboard National be third offset partially solid with and billboard. and transit transit quarter to the low including softness in local overall by growth once single-digits in organic growth outperforming revenue to

growth As at terms seeing basis. and with free quarter context for outlook both in To beverage. in advertising thirdly pharma, a food view and led transit the categories it’s and across the put our us the dollar usual advertisers, on on in constant this some we’re and technology, and from this health U.S. the trends point billboard dollar strongest time represents

the notice Google so again will to same increase. Apple, strength. to contributed as Technology a quarter, second and continued strong pleased and was exactly You up XX%. the Brands see were like categories this that Netflix we’re once these consistency performer

that in from were XXXX quickly us automotive increase advertising the of current quarter through relatively scale for overall some of X% third most depending stable our over and this another kind and saw rate overtime, spend XXX great quarter-by-quarter XX, improved. gray we like did starting order improvement while the slate product XXXX our three are trailing somewhat end a been bottom in clearly their of quarter. in X% now we’ve see XXXX, rate enough year we basis million and the XX XXXX growth. boards in billboards we would financial benefits. revenues a today While the compound the decline film last not really in the see revenue been three Movies around the the brands slate of slide generating the on revenues through of has to the end of and see of digital to categories of But it been I have movies. technology growing services automotive, XXX in investing $XX another swing bulletin other of In categories boards are At annual for for a size and month years three annual on like be times are third million a digital generating industry, over $XXX On had sounds quarter around might number growth XX%. revenue. that’s base a Back the our in revenues to of

way. long a come we’ve So

investing of up continue change into growth the also digital. significant opportunity in The to is opportunities. screen for and bulletins robust digital of we’ve the coming development on a smaller ramp pipeline going and pace We’re

especially some and in digital Looking interNational can This we huge our full markets environments motion video and European through XX%, the where is trans upside. urban true addressable see is show at other to close we where revenues XX% total of of displays. compared to now

trailer around total. well all thinking the ad aware U.S. With comments and market this largest transit displays digital the earlier, to instead advertisers completely entirely is static As category an X our to a ads you’re the out-of-home to mobile and that’s back an the new the that’s video in is industry category These than larger our new times growth in the be poster. for creating will of able engaging on show captivating studio the actual out-of-home be will movie existing effectively channel Hollywood additive market.

of digital So stage set the small displays. scale very large is for our a transformation

where the addressable more far newest to conversion have but so Washington and in be we’re DC healthy We at and revenues locations Boston to example, thousands still New increase absolute is metrics too static we rolling out displays it’s of deployed other give our York U.S. digital. will video cities from early the yield for metro in liveboard through seeing

our and time static video real our be firm displays transform will data. platform and for real the allocate a a the growth will life it’s technology Additionally, our to insights our that belief to audience digital displays, give indeed new way that clients We geo-location digital a data network out-of-home industry. driver that and believe with audience budgets assets

with operator So let’s questions. open for that the line

Operator

we [Operator Alexia Instructions] with And will from ahead. take Quadrani go JPMorgan. our first question Please

Alexia Quadrani

much. very you thank Hi,

Just dead into second the a some timing you larger update And of that the bit terms the MPT seeing markets and sort in two the National in guess, if of new are or weaker any quick buys is questions, signs details any I terms out of in you if provide for early MTA, the results process displays? advertisers? of some file could the there can then, I of terms played us in can us more on your question detail digital us is you’re in of drilling you building some one seeing talk and guess or evidence you more, the of in National, give quarter anything

Jeremy Male

Thanks for those. let try the take question, both and me of

contract the nits to before contract MTA, obviously the contracts with expire busy this the we expect soon the over and of to just weeks pretty Firstly, signed we’re on final coming the nuts current year. at have the of backend regards very our sometime

plans. in acquisition mode now of planning and full screen terms right deployment We’re in

the contract of outside terms when XXXX deploy that be I which deployment mentioning expect small we really for we impetus. to maybe in think this transformative And main us. of just deployment, of see the backend worth will first this half it’s displays In the how year, start to relatively of of saying can be again, number worth that

means future underpins know, contract this the next our that XX that for strategy opportunity certainly on our equivalent the largest today. alone expect what for effectively the years business We will that XX our in scale is will it transit that entire for it growth we business effectively future. think in call the underpin really the the You years said business transport over I should to in revenues this double world, be and

did, expected very significant National to really QX. year. about start and improve that question So we QX so we and was indeed as our When said in it better QX pleased of into very the getting we – that this been and sequentially the to early we’re very, QX to than about think next your second year excited has part so – business contract go we’re National, and to,

enough positive, it’s and National QX at look we that to quite say when it’s business Now fair late. get to to lumpy is

want platform our sort about think that year. likely in, where towards So I total. a below and likely to I but can much to revenue come to that’s say market If to is York, in of to National we’ve don’t focused once New call a business one again be say York, desires exactly it’s start we in fair it’s has hopes New on drag very geographies, significant that our pretty so this performed growth that

sort Chicago great a super of was start As of bowl weak, look tailed this year. Coast key sort year. after this has Other been around a for us with West some a little of other we the geographies, Houston gone bit markets, bit as good through we’ve off

so we’ve concentrate advertisers weakness. tend on within of our So top the a to this portfolio mix DMAs, where it’s National noticed overall, but sort typically there

Alexia Quadrani

very Okay, you much. thank

Operator

take will Please with from ahead. go Wells Fargo. And next Marci we our Ryvicker question

Marci Ryvicker

us about it giving going the to how is Without the Do have drag year, continue I visibility guidance a be be I feel you. and just that into but case to for negative. next continuously going that? you improve conversation. is same still be National Thank any you want to mean, with National do

Jeremy Male

Thanks for the question Marci.

weakness just, actually made next is want why had is change and number of National we we’re advertisers, look positive when When QX that in those into get obviously dollar there small year. the if In Certainly our believe can portfolio terms actually based of medium. substantive we quite going comment reason spent our this National, to I sort year so budget terms hard of I in can’t a about fix the of come we visibility, in year-on-year not our no been year. have overall terms who to thinking really for our relatively absolutely a both has at that of I I a budgeting wouldn’t around to just right in be now year for down out-of-home. to finalize to think next Outfront process, certainly be National we call

Marci Ryvicker

And Wagner I to you Van excited you bigger what you getting in that? do went when think regret buy National, was

Jeremy Male

we look putting going it’s with continue when to underrepresented forward. the more that will No, up our if agencies we’re sure we and show – at absolutely belief strategic do advertiser clients in making It’s rather know buying U.S. typical stronger buying to that directly the about of having process. you Right National us metric. National we’re just well, higher be the to revenues into now – out-of-home out-of-home money. like develop be as actually with sort fair be we the to is chain, U.S. the I’ve able conversations what more other But than we go not. food Marci, and said more to resources continue National before say it compared Jeremy to business, maybe firm any out-of-home now,

do audiences Miami particularly valuable and business quality, dollars our some our and the our Van LA putting where as the other And market of immensely far is of location, this about that is, location, were I acquisition through what New that long-term strong We assets long-term remember top So and they and delivering and day value massive the by doing upstream. Wagner go let’s we’re into taking – we is of acquisition which business such business York, think would more administering we’re back location. selling every in way. out acquired

Marci Ryvicker

Don. asked of we’re if one you clarifications the talk the and organic is, then revenue second is the looking quick two is for expenses what to fourth I’ve for organic, low about be or can When quick for fourth single you quarter? getting exactly digits talk quarter, include about exclude

Donald Shassian

quarter, losses Organic that disposing of looking of excluded, for are a Boston organic. is all with other in done us is digital be we’ve job pulled expenses acquiring expenses that flat some keep to of on gross got part our and invest tight assets increased sort assets nature some in we acquisitions real The increased revenue, some, leases, we is contracts. organic business fourth to what again you in. expenses a lose of from dispositions transit the there, contract even win very of with expenses expenses, obviously to folks with and our and you the of On controllable is those we’re But is looking strategic would definition. development maintain and of have marketing so be the nice had and really we’re the that the expenses, wins

Marci Ryvicker

Right, thank much. so you

Operator

our take with next will Stanley. we from Benjamin Morgan question Swinburne And

Benjamin Swinburne

it. related I I your afternoon. may But have you any Don, guidance? good the apologize impact QX weather missed issues from mentioned if Thanks, QX and impact any this in

Donald Shassian

back is not as Florida, significant is prepared we we’re to not to We you on that structure time little We damage did million did $X.X back, know little think now Houston it’s the from have there, from Texas been customers. has structure, mention bounce significant. booked see Houston back, weather as feet. it’s Ben, of potentially lose still not be a reserve time but of going the operating hammered is to it the taken consolidated, advertiser What be noticeable the really overall a themselves changing get in CapEx didn’t taken I bounce is expenses Florida for not bouncing sure revenue we their I’m some has that do will to may, lot remarks nicely, to from and quite amount bit the back and trying significant did a going in we mix a claims

Benjamin Swinburne

just as deploy And on assets. early talked Okay. I contract we you believe guess X% I about that higher on next about than then, think but the year, you the MTA guys cagier as years

go comment back next before half made And the Jeremy start a benefits second sort that MTA materially the kicking year. don’t of of in probably until

So wanted revenue the know and revenue change of should if your that’s I just to in a timing benefits be? not, expected

Donald Shassian

No.

Benjamin Swinburne

suggest us MTA On that versus XXXX that see sequel the would to revenue growth if accelerate in wanted sense? given just made to XXXX deployment,

Donald Shassian

Jeremy’s the year. deployment was first next he comments in I to able be the in deploy the now right a all, of planning was of related of deploying think, second saying assets, to assets the so assets we’re half with to mode

not assets back and it’s the was revenue really much XXXX. kick XXXX, being into so deployed going to kicking in those really of So getting be up, maybe the XXXX

get the same growth first on We’ve trajectory XXXX through of XXXX starts really saw that change is that all back significant appointment will really half this all you to half anticipated you talked matter going. that where is the the we of it have what of ramping still getting contract. just deploy gives we nice really about, and communicated and XXXX, call the that a earlier on year lift it’s a back not think we to So XXXX we through always the MTA

Benjamin Swinburne

obviously XXXX, point this thoughts accretive that does And your all at the how I wanted but then just into fit arbitrarily are EBITDA Do a AFFO to the know too I for to on sense or it to but talked are related the nicely leverage see is capital upfront, MTA Got you Don, dividend dividend it. you this headed have for of requirements early? XXXX target. where is about and there guys you your on

Donald Shassian

we’ve revenue the I too about this address contract of expectations Board it’s are the is that’s be MTA that the itself on early But it. gate when the be February to on outlays our cash spending very, decision will recognizing we’re is business, to know of right very talk get and you to obviously contract can us, share in out think we a now that going important, drive deliver that think significant. positive MTA also got the I changes the as but to to dollars we

We’re we’ll decision make dividend, driving also revenue, CapEx elsewhere, for a grow EBITDA lot here opportunities AFFO of is have that our in spending grow Board on this on pieces goal play, business future deployments but so discretionary regard. our and good real the to digital and at sustainability that provide on

Benjamin Swinburne

much. very you thank Okay,

Donald Shassian

Thank you.

Operator

We Jim Goss Research. with ahead. will next take question our go Please from Barrington

Jim Goss

Okay, thanks.

a those other that up this that harder there contract in for advantage other MTA be things in lined in to might any markets advantage does for in give an And winning you would be being you competitive trying the be kitchen the with Regarding develop of separately do you, is to parties able to apply some this somewhat wins other overcome? test developing, markets going you markets? incumbent new you’re or to

Donald Shassian

So Jim. thanks question the for

of renewal. of of there be say much next look displays is it’s forward, contra put terms smaller, Boston end by we obviously in but and of to of to actually term have that to the in always proving a we we’re in year be inside that less think of I that could up rather in couple MTA. terms year. advantage look as we fair said number some protecting win an deploying the text management MTA. other than audience be stacks it’s a And opportunities Otherwise we advertising information before to will is base continued of in a extent is no that’s at some terms our within to MTA to for said other a a interest of obviously when to doubt we terms Boston as to there that out different both text relatively that defense, bit that stacks in of now or actually at there hardware, to years hundred hope worth couple To saying a over been do regards thousands be like, building being data we’ve last test I would and think platform market XXX perspective content think of It’s to with interest the been in XXX was I particularly that our technology X,XXX the a there of actually our municipality, might have of and expect multiple believe that transit but and think by the the little the we’ve there, terms incumbent something of in and/or authorities. wise, this delivery us, we and based

As forward there opportunities offence. well over coming be of the couple for up next we look years more may

Jim Goss

you’re with out? on. Okay, you know is One it top markets thing to or focusing capacity there National concept to better stronger like XX position need the that swaps even certain the to billboard is seek advance on in to Is thank in within markets top do interest XX intensify the you that any fewer not I do or back other necessarily you. they’re said that

Donald Shassian

we we’re to always markets it’s certain do through that and/or incremental some acquisitions as portfolio things that portfolio always think if always for we either possibly that. things to we’re smart disposals as as we’re I market think swaps the looking total, something and sort within at strengthen we on and get a we for where where can lookout do in us of to we our smart can our open billboard look the at in find value can

Jim Goss

Alright, much. you thank very

Operator

go from [Operator will next Please Instructions] take We Borst with Goldman ahead. Drew our question Sachs.

Drew Borst

in could markets? Thanks. regions I about your in seeing the all particularly talk pretty certain are geographic was weakness, is pronounced you or that advertising National it you if wondering major

Donald Shassian

Thanks Drew.

markets New that in. of very XX want most are the the I a driven the called would markets in. New of that comment weakness would that. made major out by are lot We’ve a the I to into that’s our and but say dollars I on revenues which potentially be National vast majority part, market I think top for all advertisers so business in its York, go York National

to rather It’s I quarter define out-of-home the on absolutely think and definition, broader were report think National you specific within off while terms the noting down, bit our we going definition of you’re than thinking certain, but say, fair that never that categories. about to I I all So if that in we’ve so worth further like it’s as National QX. little say as publicly that of maybe business third I’m companies same be that points actually and it’s in in X we a

exactly where I going still positive XXXX. it’s I to and be more trends end guiding in a more bit soft I I made for did as little what still the QX, while a positive a comments also trends yes, So And we’re uncertain to a of said, picture hopefully QX. up perceive but about a drag, paint of not

Drew Borst

growth, guys which noticed true for in has very Thanks billboard and that, then, it as as good the was both declines the you I guys about the and release to in to what business, in in was transit talked I try guess press yield, improve well business, can talk there try you maybe things could I wondering yields both and but that about you doing to that the you're businesses. stimulate do to are

Donald Shassian

First and were on the up, all Rates driver quite billboard occupancy. were yields the based so there. of all, were occupancies on

is the just major And driven in XX mentioned, DMAs. it As top by is Jeremy certain national. it national of

but transit, growth driving – doing transit. Transit got have with with food sales is Rates well. the have force occupancy up driving we that over underlying if good that well, issue. well. you is we yields occupancy has all theme It on our been seems the here it advertisers, an to are drives would is not chain There National I place. there. an So is mean effort of very, this. I'm as yields big be still It are we going got more the pursuing. national very issue the is sure companies drive lower get to there doing And to moving.

Drew Borst

XXXX, sort high-value may then markets on sort that slide reflects the initially – converted Is the you one boards? last do just question. just of anything digital could declined but revenue the that noticing that stages, of time presented you just pricing it and why per digital, you early happened? about have add have or X%, side that Okay, over big of may was not board color slide, in demand has that in declined last and to it some about or I some dramatically since the if

Jeremy Male

of convert hit highest Absolutely you the a way, like out partially and location. you have you boards not. a some per In the there. about revenue the past pyramid, of pyramid at right little I tend being first top upon the the gate, where the In answer to have billboards bit the talked

pyramid, to be almost you come had As that boards revenues, therefore static would by definition lower also digital converting have down revenues. you lower and are that going

the is driver that key So there.

is is other think the only the in required. point think four-year of capital rate important you make period, well you sort actually actually a a have to seen what the of board; that if Capex digitizing as over that I decline

getting we So, when Xx look a XX% the are boards returns at on making are of we're that we we the and plus. converting, make, that still lift we IRRs can revenue

So, to and great conversion will a we still it for digital opportunities. continue is look business

Drew Borst

Okay. Thanks responses. your for

Operator

there And back further to any like for remarks. the or additional over Lundberg closing it turn appears conference are questions. to Greg no I

Greg Lundberg

you and events and forward operator, thanks to you investor on everyone time call. today. your before Thanks our look the year-end. the you We many questions seeing very Thank to for very much. of your Thank much at

Operator

today's conclude that again once conference. does And

participation, your for you now thank may disconnect. you So and

Outfront Media (OUT) 6 Nov 172017 Q3 Earnings call transcript