OUT - Earnings call transcript Q1 2020

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Operator

Good day, and welcome to the OUTFRONT Media First Quarter Earnings Conference Call.

At this time, I would like to turn the conference over to Mr. Greg Lundberg. Please go ahead.

Greg Lundberg

Good morning, everyone. our quarter joining call. for you XXXX earnings first Thank well. all We you're and hope that safe

Given State homes open results, New Matthew Officer. and the Chairman the After York for Chief up Siegel, joining call hosting and question-and-answer of and usual us the remotely Executive today's a Vice lines from Chief Officer, discussion we'll their Executive are President Male, home Jeremy session. and order, Financial we're financial our

a to of this refer concluded, that the and will slide today well. and the section presentation archive call can release Relations after comments as there our in find of Our be an audio is you earnings outfrontmedia.com, will today's Investor call website,

actual listed which differ statements filed our results these forward-looking Today's filings, our our and in from our to XX-Q, will related may call forward-looking cause statements materially are include materials Form XX-K including and SEC be and earnings XXXX in today. could factors later that

refer our financial will basis certain non-GAAP will OIBDA and presentation, reconciliations on appendix the an the measures in of on to on references earnings the and measures OIBDA of are to also this and non-GAAP adjusted Any website. slide financial be We call. other release, today

turn And to the with will that, Jeremy. I now over call

Jeremy Male

Thank you, joining for Greg, morning. and thank us this you all

going. are we the things we we've now the pandemic, significant posting less right into the and response know, stand quarter, to first time more reviewing relatively today, where carried great What's been it but today you results and our As growth for where than see indeed some is important historical usual. we're

work terrific they important business job measures doing in field. of keeping XXth, have office-based in three safety done going our staff and for a protective to work highlights put our our as early Beginning operation actions. March out for from we all the Slide some place are you employees who great shifted home of our

and our across our people travel, our helping generating adapt the and space of by and have special messaging with maintain to cleaning frequent communications We situation. that offices, of helping practice open most We're and health is business advertising our restricted enhanced for businesses help also communities also well-being The all non-essential the priority. employees. current important for remains our

to available drew XXth, Turning under on all some measures, March April announced revolving we On we financial million credit $XXX remaining the we that facility. closed amount our XXth, prudently of nearly of Ares two by Providence is our convertible We investment that equity leading perpetual preferred and Partners stock. structured Equity million $XXX an into common as the Management. firms, stock issuance private it

This gives to brings announced value relief navigate for on Board the new through the we the facility on to without liquidity immediate member credit coming also the us April to calculation give debt our adding our XXth, ratio quarters. It help to create a Directors covenants amendment our us maintenance On of as revolving we lasting to stakeholders. leverage. us

current to and a for reduction, environment, March, on we reductions and executive expenses, cash Cost numerous the business taken focus in our the certain enhance step-back hiring officers. employees have on measures our our including operational workforce flow Since have and compensation been freeze, temporary furloughs, for rightsizing liquidity. restrictions discretionary

on We're costs our our our guarantees. also transit focus fixed addressing billboard and with larger leases

with transit pausing and new Additionally, discretionary or are we activity. expenditure deployment, billboard acquisition digital areas suspending are we reducing and capital deferring other

is continue and dividend a REIT foundation dividends payer. be will business to stockholder Lastly, a the significant model of we

the XXXX our to Board the quarterly our market has levels and assess REIT our stock. improves. intend decided however, the distributions We as on common annual least to in pay For moment at requirements will

these all actions. guided goals Two

business options that year. as secondly, of of our our view for as response we're call, and second recovery we pursue duration our to prepare Firstly, some discuss enhanced this believe arise. our quarter flexibility balance on are with on well prudent the the whose going situation was a and Later early certainly was will directional thoughts And to financial it a unknown. strategic severity to to proactive goal

as Before review that, proceed do the slide on operational financial we let's and with quarter four. usual business and results first

had As had during you and know, COVID would comfortably a toll QX started in be where we ended digit March. originally revenue guided mid-single not up, we that's taking range to the have

business Given this around lower and up comp quarter of guidance revised with our performed in on with our XX% last line revenues X%. top a year, first

bad interest and growth OIBDA expense. coming was was benefit as higher we to lower in the flat quarter, also of prepared year-over-year due principally significantly COVID for the March X% slowdown provisions due in the AFFO debt to the reflecting quarters.

sales now our other segment, didn't look which and that in almost the slide last Media revenue detail, five. up on down was of our while recur. in more because beginning was was year driver Let's quarterly US at much the equipment growth X% quarter, mostly smaller, is

I US Media was by billboard down growth, other ago. transit the impact the reflecting that shows strength moment a initial six Slide driven mentioned largely COVID but was and X% X%,

slide performance, Turning The decline - fourth some in up up while up was in local same good kept the story national national to local billboard and offset the our pace local quarter, as by showed X%. the revenue seven, split on transit. it came reflects

a increased their billboards XX digital yield and XX% that our up last points quarter. the by XXX number a US monthly higher of billboard Digital We from during boards greater billboard much quarter, year. reflecting grew in the Slide digital year-over-year overall XX% eight revenues, of was revenue. shows and X full

this core other implies. actually our which segment, somewhat that than nine, slide chart to is better was first performance it's our worth noting Turning

the and down marginally million and began offset organic March. by this sales very on an good didn't basis, recur marketing. digital The revenues Canada US, billboard year, COVID in in Specifically, in like other seeing $X impacts reflects in were growth piece that equipment transit sports

be new in was yields as billboard transit from XX%. to revenue grow continued the robust, this a as quarter slide XX% our transit year, displays. of well to our the Combined up digital pandemic up In in impacts some XX%. first by digital company revenues, digital continued with board XX, driven saw beginning Turning was growth X nearly units pandemic. important and digital very Even total expansion This in solid last our same progress we including area. even March, good impact so summary, points very almost the of total from

our off Matt financials. now go remainder Let to me through hand the of to

Matthew Siegel

morning, Thanks, good Jeremy, and everyone.

you on As were levels this, levels XX, increased expense driven debt our and a point. which provisions, overall were total excluding see X%, bad overall by slide can down

take look slide of each in expenses a at get more on our detail I we'd Before that, XX. into

annual was in to where some It as Chicago, have San Transit our Los lease Francisco, of franchise fell strong in particularly some our in line Billboard expense due leases up in variable with Miami levels, components. as new an and larger well also reflected step-up. sales revenues. some locations expense of markets drop Angeles, our the

expect, would billboard are going franchise with these transit you and engaged mitigate costs partners our landlords forward. to As we

the in of coming Posting we hiring and doubtful were the maintenance last accounts, expenses impact. a represents This about back the XX% expenses half provision year. into were represented forward to the COVID up slightly. as of higher due employee and increase to rest quarters the due up, looked SG&A for primarily

in resulting our half This overall the to And lower employee on OIBDA was due slide benefits XX. flat growth, were revenue expenses expense. by lastly, increase line corporate expenses in with year-over-year in down

up by billboard slightly when revenue-weighted was on provisions drop a basis, dig in is was XX. I by the Media mentioned. a slide significant in different There the allocating US on offset transit our half. down After X%, expenses just was picture you corporate components bad This debt but

They $XX are the growth of XX Let's million flow liquidity the digital to CapEx turn investments now with fewer a We've of as capital were that at flat was a beginning primarily and to the year. There we'll conclusion. in for on remainder conversions. process slide some mentioned see cash source conversions expenditures XX. for

be from So of digital previously three that maintenance general, with lower immediately expect expense can screens ready. represents ordered are conversions a digital total bit billboards to when This $XX in million. now conditions below offset of deploy and we quarters suppressed we CapEx

a slide by were mostly the to bridge up driven points, AFFO of on interest Moving on expense. couple lower XX, we

aware, to withdrew uncertainty our the AFFO about XXth. brought COVID, on due we guidance by As March annual you're already

improved shows that We shape XX the Slide from last pandemic's Board we and flow conserving has Obviously the adjusted that prudent believe as substantially recovery. coverage mentioned year. of impact now, the earlier. dividend given the cash decided pause free which cash quarterly for business, Jeremy both AFFO our watch common dividend, is to our on

just REIT with their it's important in must of mechanics and taxable distribute income amount remain that The compliance to make second million think around actually to the in over $XXX take quarterly the million. REITs but companies one, All dividend. XXXX, most annual of compliance is a we test explain annual an In REIT XX% $XXX distributions. even dividends, I was though paid requirements.

worth distribution payments paid XXXX bring million annual this and that remaining This minimum to and also distributions. - can payment met March, noting a us we amount common requirement pausing, we and the It's both the can we assess the dividend stock. slightly By quarterly are $XX dividend total pausing requirement. by common be total preferred above to

you side have can the XX. our We see liquidity, which on left slide strengthened of

unrestricted credit cash the facility, of which drew in balance the full we and on quarter, in left remainder the right. you the can now During nearly the revolving in column maturity all XXXX chart see the our

interest cash net own convertible April. and the We issuance this was that in felt worth closed prudent equity it But this of our to accounts. in not have the $XXX our million liquidity show does preferred proceeds expense extra

equivalents of on As and cash million. approximately yesterday, were hand $XXX our

when on ratio is XXst, see Had have covenants would times. noting proceeds the the net as been leverage X.X as net you debt on not hand the agreements. preferred calculating leverage counted the worth slide is been debt Also our under of our stock March

our we of and in our for and year the QX payments. when step credit XXXX, XXXX revolving the amending we on covenant substitute Until took to able on calculating in covenants to financial QX the be XXth facility. subject September important limitations this results future was restricted denominator of making LTM results will QX our in Another maintenance QX certain

stronger to our the not anticipate options. the competitive closing and in price it interest is of pandemic attractive flexibility security in will our enhance coupon and of preferred to aligned additional for chose sheet, the a raise we capital with attractive much balance at believe further position we what financial very wanted stakeholders. The from form carries a of To debt. conversion an we with We strategic and emerge be equity, all

displays, XXX first which the New slide was X,XXX our see of deployment the digitization March revenue displays, We quarter for. carry digital installed just MTA, half in Driving under a on strong York continued can more which towards growth bringing the in XXst advertising ramp further you total of of than as XX.

did Our were total quarter $XX cost in and quarter MTA not recoup costs the We project XXXX. the any during of not recoup we remainder million. may the

March project previously announced display suspended March and we now $XXX million. that costs cumulative be as deployment given we COVID of Our $XXX of XXth, full-year significantly therefore the XXst. lower pandemic announced we spending expect impact were our million our On the than

said also deployment. we that fund incremental to of previously expected net the $XXX equipment third-party million We remaining financing

the more aspects of deployment given we update pandemic, on COVID we uncertainty However, have as you around will the clarity. the

Importantly, the MTA as they review the conversation situation. we're constructive with having

was eventful certainly the company. this I period joined most closing, In since the

and helped proactive measures to planning will prepare pandemic. and to take with continue us risk address have quick and we the enterprise operational taken the Our financial

with Some going it strategic others, where to flexibility. and to but financial the than be, needs collectively, get to believe we're of company were more importantly, them challenging and we

turn back me Let now the Jeremy. to over call

Jeremy Male

Matt. Thanks

to in And business were would impacting place they slide our and of background. that a simply, March, put tracking started XX. When little our quite we now give let's to the cancellations, before business. is helpful turn in we outlook because, which really it Maybe analyzed new on financial pandemic never immaterial to bit something infrequent be included that our had

date, and we the to at expect be that approximately are being and cancellations. combination case indeed writing, later XX%. is to all contractual outright to of need no new some down reflecting contracts certainly This quarters, changes as we the QX Considering revenues look we from QX business these that consider declines our total now longer audience factors, we into deferred are

business be parts was major you region Transit, to expect differently a QX, of our expect, As degree to is is billboard. in is XX% of and focused the billboard greater two this while transit much expected to In out would down quickly the down playing we which, Northeast XX%. you know, business. than around currently be impacted urban more our in by and as definition,

see in work further patterns trend we're expectation from normalization improvements July now, Looking weeks. our and We and some seeing the our a believe we right imply forward, an August QX advertisers improving at over of it numbers in coming lifestyles an the from trough onwards. people's in

we for with is it you As but everyone know, all to the thought seeing. was share important fluid, very situation what we're we

what thing day you the we now, business. is are every some One see right as encouraged that So should is be good we day. by writing new

step For steps half significantly last back, expect and forward improve the few in this one but the this second weeks, ratio few it's a been year. of we to

some your with household, advertising their frequency homes. highly necessities impactful every has and one going moments on and that call, of leave in in it's well, for to this you relevant. Like are home someone these someone be our can People of still out

what continue see is clients can US them to up. audience we is proprietary the our Scout trend, happened national the which in their is audience at market assets still to as delivering appear there very and significant has platform. are improve by location it that XX. shows is across in but the will the states XX% a Smart number to expect levels, the uptick overall from impressions. which is by giving media levels crossed different and encouraging, data declines and slide an planning our back of of to nice now seven-day that You show on XX-day our has to to stopped, our It help cities open and increasing We've our Different have average. certainly been at This pre-COVID

their also This that opened data the our OUTFRONT or of patterns. and of as thousands both and to people Our because levels people's locations. has This that opportunities open relationships advertising living pre-COVID business know we have us longstanding has been journey continue kept exceed will impression enabled central also to able new displays benefit ongoing from to sales changed and and retain conversations also our client our partners. identify to

clients economy improves. so as difficult forward who the we're working their hard demand the to this to I'd helping our Lastly, thank we helping employees really We people like best and have best are looking and period. us believe and through our reinvigorate assets the

the So with that, operator, line I'd now like for questions. to open

Operator

question Instructions] will Please from Alexia go now from We [Operator Quadrani ahead. JPMorgan. first our take

Alexia Quadrani

I have two questions.

the some can what First, at terms if of you give in you're us terms for and color on the transit looking versus in local paying of my And with you've if categories guidance quarter seeing that in second about big advertising you're national. authorities conversations MTA's one, second guarantees. and if driven about maybe MTA then can you're you if talked question is, the the productive talk outfitting

Jeremy Male

guidance for you first as the to we we as we I this color continue important came I'll as of give really really believe OUTFRONT and was to come today and is the that, to those. out we that take was at it into have. this on look and guess felt both thing we say out-of-home, sector strong feel always strong. can out-of-home as we and bullish we absolutely call

seeing as stage where pandemic significant pullback. and the then difficult, gave back and in would it at to terms they going look said interesting conference actually categories would early yeah, increased March at at it, if thought in investor the dollar we what we and questions, that we are most were difficult But the be be as we and movies, retail entertainment, obviously it's your did, we we're

and impacted lot is than can local there business, As our you a involved we national sure, as imagine, is somewhat look geography more here. I'm across

to the two, we drove New transit city, were a that really. over York two and outperformance really aspects be. the particularly market is our years big that drove couple is and last that business. fact difficult place the What interesting things of business urban, is were One, our our

this about weeks, a bit difficult little be in few I'll is necessarily isn't now, in and big a that and and right particular the place minute. city transit talk Obviously to urban

So have lots particularly less Coast, where difficult. geographical in the change of impacted. and than and East, we local markets, smaller Northeast, The the easier certainly much actually West right in middle,

of to transit MTA. just your the markets. in of that, So all being it's much be on question it's many couple then down a and and of Look, are services I'll key That that for commute maybe our down a American going absolutely difficult are the comments part weeks. to on a believers come. few fundamental said, We transit. in reflecting pretty key years to Right come to we public believe ridership obviously, now have going is

And impacts that say, and going for difficult. determining the be you quarter, weeks in to next can our obviously we second of see as the is few guidance

As start there. to we're going we're things really start up, positive to open hopeful seeing some movement that

Specifically relationships authorities terms of we of US. transit across in with important the a number guarantees, have

regards talking to confirm April. with and guarantees. those the agreement we been We've all the where been them applicable, with structure our MTA, of haven't paying from to the I can in guarantee that MTA to And relationships,

Operator

sir. our take now Ben question go Stanley. Swinburne Morgan from Please We'll ahead, from next

Your open. line is

Ben Swinburne

it Jeremy, may of has historically growth the a years beta sounds it part of last return you you embrace national that feels about year come growth be be, it's as you outdoor national outdoor's that. wondering a out grow no back but expect national terms media few do going ball, the of level the I'm on if - you I'd I think, but faster versus story I like national talk seeing advertising. local? part now, what to I you're this of just the of higher strength of advertising whatever what has and in if And like could we business at right expect sort into know you think to there's through the been half in your this think than local? of of about love the mean, the national been thoughts in as national to and crystal 'XX, by

preferred quantify Since or outlook, And expense help to either, any for revenue the guess, your way for help Matt I quarter us or decline? you us second growth, you you can gave expect or then for near the Thanks the in guys costs? wondering think lot. I you or to if And at term? about PIK cash be us dividend least on just was equity a a that

Jeremy Male

we Thanks local. maybe reason, take time and was ads, long-term expense permanent national higher first on switch for to the if that, back beta than on can a when thing over hand from. undoubtedly National guess, downturn, questions, the the than to I'll last first It dollars one saw there Ben. for than in comments and comes that's look was and beta the more expenses up and rather the floated color be where off a a quicker make tends few local. some in Matt I you for preferred question. then to picking is the there that more

couple reason kind beta of and we're local has sort our last doing in think our advertisers, national As coming of the a why there's difficult actually through particular as we from from cycle, maintain been national of it years. sort and local actually outperform shouldn't and both we as get high this some that good there's new we're of looking seeing forward, no tracker business

said right in still our continue we'll the at future. growth the that's the I media outpace outset, were to reason we that why and growth media That's reason they're our outpacing the the fundamentals of As out-of-home, valid.

of of the hand comments over taken. initiatives And a shape of we've terms just expense to I just the maybe sort overall Matt, in of couple before

expenses particularly around minimum of expense talked good portion We've variable fall this about base where year relates from expense, We $XXX guarantees out in transit the benefiting expect a million to variable suppressed. our that in obviously lot QX transit. compared to of about are A XXXX. to

it of come So hard good working piece billboard will that's We've our where on leases. from. a been

come variable as taken. other that down. of of through is lease our And the Some we've some some is fixed, variable that then balance also of costs initiatives cost that's will

So I'll more to Matt, this color. hand over a now bit that but is

Matthew Siegel

I billboard expense, can figure you Yes. lease Ben, down can - on go XX%. out the maybe think expense

with go Jeremy on and posting, landlords said, taken we've and reduction. are maintenance our some personnel in down working to There shifted other is both will larger reduction, and big saving franchise a We somewhere markets million hard As steps our hiring that freezes, each. gets transit some variable. Jeremy SG&A. the plus variable in of dollar headcount have issues $XX be we're activity think - a both with component $XX those million range can into wise said, entirely of

preferred. dividend we to this So PIK had the have that's At about XXXX, preferred question make exercise expect cash option we $XXX million. we of need a And but through you to do payments if the time, on aspect the it.

Ben Swinburne

variable? And transit just so like are MGs to you purely to it's or I MTA the not be be essentially going accruing on because understand, going paying, you're

Matthew Siegel

the now, In guarantees be to of accruing. going we're case minimum not right

So it is variable. completely

Operator

We take now David from Capital. next question Imperial our will Miller from

David Miller

analysts The of first questions. took two all my

much. the you very can move Thank you guys next So question. onto

Jeremy Male

Thanks, David.

Operator

now our We'll Sachs. from from Please Borst ahead. Drew next Goldman go take question

Drew Borst

wonder improvement? overall Is provide or or color the color like to seeing. it if for additional sort on that you just that, I billboard improvement that's more I seeing some geography quickly? particular some able but of transit Jeremy, more to or it about a any of please. it is be wanted digital, the recurring are just you're the bit where might Is more there trends, August you is static ask on looking little

Jeremy Male

Sure. Thanks, Drew.

less impacted, as but see seeing the transit much that we're quarter considerably we're certainly those certainly third than better up. is some states mean, strength in signs we - is and than also it look in business second the it now, of quarter. is in to in second I that So recovery, quarter, to where I'm starting it open pockets than the most right pace And sorry, transit obviously billboard obvious as starting that's at less is of

When be we dependent just demand service generally, think starts and as of about going a improving improve that's how on that service. I think to they the quickly transit starts quite bit picking up how quickly

really both. what see our trackers, So from it's can inflection is we of early something from days, an in but point there

Drew Borst

just OpEx back Matt, the maybe thank for to again, then on, for, the detail and provided. going one And you all already you've

You of be billboard a of might be also might Could to of lease by the help some you the expense see much you balance think buckets mentioned how the able year? able expenses be other about of reduced to us the XX%. sort in terms like of over reduction

Matthew Siegel

year, the is not of Balance the I based a a I'm of because costs. reduction hope lot on seeing variable reduction bigger

which reduction, franchise transit revenue as big. shouldn't to expect our track, be our So we

we're the a the million quarter landlords going work and doing directly. that recurring. XX% in reduction fourth little for probably in savings So the quarter, quarter. It's is with Jeremy be $XXX the mentioned maybe Of the that to half less third billboard, of

activity then revenue the thing and furloughed the posting, it the our has Unfortunately a SG&A. of maintenance gone Hopefully increases on and number staff. all same down. We of level increases and

think thing, that do of half again, costs each will picks say, that we back, So level quarter the as some up, stays away. but come in those same activity

Operator

go take now ahead. Research. Stephan Wolfe our Please We'll from next from question Bisson

open. is line Your

Stephan Bisson

me. for from Just a couple

a then purchase you slow that they of drag. in mentioned it strategic First, trying flexibility. defend large pricing mid-market, you could was to Thanks. recover you kind and the this to that coming seeing specific kind be, there I about of you'd a would Is and bit versus a little little Are know and what bit of transit, recession, markets occupancy downturn? a was trends? that out acquisitions market? maintaining discuss billboards, more vigorously that kind out little pricing you're want And there to anything of

Jeremy Male

for the Stephan. question, Thanks Yes.

audiences back had If it decline. - had you at an was - is was really, What because actually what of no to There but we've no time obviously of audiences in macro last remains actually over - and the to there period. was change that decline, sort with effectively macro cope same. interesting you a the look the decline some was audience this sort downturn,

it's to reflect back, had of by as come fair to these audience that expect, changes recover pricing some would in our we pricing, that recovery. in to audiences we've say line but with definition, So audience

been last has it's So all. fundamental the normalized we a purely believe back on few just the back have occupancy numbers It's to reasonably, get open strategy out gone at weeks. occupancy as we'll levels. also - And over and more up, not that down, states streets reflecting some change that in as

that that of XX our DMAs a the term. sales changing can leverage always near With presence interested in where we see your really to and some second force acquisitions, benefit. we transit. already have where national in and than terms operating expense we question acquiring we're And in of don't we principally regards kind And principally interested said we're top in rather billboards acquiring

we're first back to it's Stephan, reason as pricing go audience comments back made recovery, no that to levels can't audience that question, that and Going back. we already that on earlier of good about there's regards and why with feeling very part your the thinking the comes to pre-COVID pricing, happening

Operator

We'll ahead. question go Oppenheimer. our Zaffino from now next take Please from Ian

Ian Zaffino

we should help I start look social utilizations, crystal kind and levels the past just pre-COVID? we and maybe Maybe the about get as we're Thanks. your the us which about, If ball as to economy's look about. but into our you're into like, fall, back, trough fall talking you're the maybe think then need does of you the get the still to to world of levels maybe say, audience in what to the this the ability maintain talking back distancing, see to understand social get recovery when we in far still let's audience distancing? you had do How we

Jeremy Male

into falls two that really. so hubs audience, guess, I Okay.

not billboards The not our distancing. first to, audience particularly homes - something as of benefit audience directly is, at When appeal is out is is that - shouldn't that that and that from and no you is our reason something impacted that there, that. by travel their why, mode of there come vehicular obviously social effectively that all people

then to And business, two are our look there transit parts we when our at transit I business. mean,

the is first above-ground piece. The

have have we buses, rebound with bus assets. is line shouldn't in reason roadside and there we other shelters, So why our absolutely that no business

we with at it New sort of sort about continue are example, the it's distancing on one there. of measures York that's audience specifically so those of now that When social MTA talking for Subway, in to to how And transit, because it. so terrific impact there look long-term car, - and going that's unclear couple to We're right to and the the we advertising business things. as MTA set audience, are years also in is there There doing, the and of are years. partnership last to the piece, we've different to the a been pieces over revenues, XX various digital audience, investment to with communications drive the have that's go benefit,

So with to as at that are that solution for the pleased look complex to we the those a pieces different MTA, understand but say and quite open - to you work of relationship finding very a it's going they both the parties. all discussion, a can discussions it's I'm that's

Operator

ahead. of question Bryan next go our We'll now Goldberg take from America. from Bank Please

Bryan Goldberg

over renegotiating a expect speaking, [Technical in how Difficulty] costs? it's Hopefully constructive the expense, lease And on engaged should remarks. in stakeholder actually apologize you could prepared of we how And of have those little I approximately Roughly go remind your are of what's total? long you actively a I period many a now but in joined with negotiations tone just lease if you just in business? billboard these your on then right terms percentage late, generally the for? to addressed what landlords you this us one.

then mentioned you think are I softness, but And I for was hoping, any resilient remained some the you out there writing advertising, I current categories of of healthier and just business think Thanks. on or you sort secondarily, you environment? categories called have the in some are that of

Matthew Siegel

Matt. Bryan, the I'll first take It's one.

so say, XX,XXX leases, We have or leases, different XX,XXX landlords. or about I don't I more XX,XXX think than know, XX,XXX

half a of maybe, talk very our negotiation. the larger with first with dialogue triage. which leases often a we do half them, opportunity than and an - diminution Say, have it's clauses, the to give We more and like So active us to them. discuss have ones most keep

So it right everybody get can't takes time. away. Again, we

far, why estate of we over in we our as lease side in are have as so large our doing this. incredibly on that's benefits - we transit in people but So do focused a our XXX that real have side don't billboard grouping

benefits So XXXX probably and in well. we see and XXXX we'll 'XX think as into

Jeremy Male

take second So that. Bryan, me let of piece the

pretty look least in us. of pacing that, we legal expect Healthcare, come is well with of our showing impacted that just one is local pacing in growth for categories and services for be is So conversations having terms we're us, pretty as well, to to tech that in the well we the as QX, the at now. quick, right think going our we near term. back advertisers we about some tech when And pricing think from of

Operator

And final take go question. our Research. from Barrington we'll now Goss Please Jim ahead,

Jim Goss

in be it the to be likely final preferred at mean, concerned that be end the fair thinking Regarding is payments a dividends available the I shareholders of the would are and anything preferred, reduce are that the that, or payment regard? with there and move be couple in would And year this that think dividend, also others. would to should of then it it year? to common dividend And new form would into this one you

Matthew Siegel

Jim, it's Matt.

end or January. dividend, payment that, of the I'd December REIT a true-up back, a is so like, On early full year we could the dividend or look make say, requirement rationalized

I January. to of does calculation by paying. preferred of REIT The we've of a include what should we like some think I'd have flexibility, into visibility could the the we what have our be dividend requirement think then dividend. couple be and got so some we weeks

extent the to account our we're paying to would So REIT as take that calculate we something around a that. continue and preferred payment we requirement,

Jim Goss

environments? versus you Are between seeing displays varying also demand in Okay. digital static the various

Jeremy Male

Let me answer that...

Jim Goss

and In up? terms of down back coming going

Jeremy Male

Yes. It's interesting.

generally, been the one growth digital different enjoyed to relative it's static. has of reasons One its that home, but - of over out the great would last things the few flexibility years such stupendous actually for of about

quickly static Obviously back. enact you to than same because the people about token, rate can those where And more at their swiftly. back requirements you much decline static by in program, changes it a than and making this would actually advertising when digital, situation, expect come faster to we are comes decisions decisions swift more expect to it

Jim Goss

but subway ideas Okay. would discussions up to idea, MTA, so came type and of wondering are in with. but enforcement also have the also a to - And some Subway, unique is that rules which I'm York, the issue? the of for there it's on ongoing that sort pretty especially hear you lastly, And you developed of it's other right advanced is good terms been there address to in I issues social being spacing imagine exposure is challenging in have New that systems. there, Are

So well. about them maybe talk as

Jeremy Male

short right don't Jim, to measures cetera. New how transit up. with guess taken know now I for to don't answer now know are et that right exactly going York in-car indeed what State open the We others we social distancing is, of the will and be regards

audiences one as becomes it that say be having of it's inputs it's that obviously into that our hugely one may the near discussions where inputs to while remains clear, the for attractive and not be with advertisers MTA, with also having be fair we'll of a So the we'll they quite term, it's into the the are, because, the discussions audience.

previous carrying the to the you previously they all There He million the that fact passengers can about COVID, survive. - that, X cars. right? we a if And were that only of no fact way - is Subway, going in is jump day, their think to

now to not back. come sure just exactly right going We're how. So it's

Operator

or now I'd over additional you. any back remarks. closing like our the to speakers Thank to pass call for

Jeremy Male

Yes.

all We operator, to your and you So with thanks you Thank very time. thank speaking in much, today weeks. events look your again. forward and for questions coming the investor you many at of

Operator

and call. your gentlemen, for today's you this participation. Thank concludes Ladies

may You disconnect. now

Outfront Media (OUT) 8 May 202020 Q1 Earnings call transcript