OUT - Earnings call transcript Q2 2020

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Operator

Good day, and welcome to the OUTFRONT Media Inc.

Second Quarter Earnings Conference Call. At this time, I would like to turn the conference over to Mr. Gregory Lundberg. Please go ahead.

Gregory Lundberg

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

are a We headquarters our discussion call President where Executive up City; today's I hosting open Matthew financial and Officer, question-and-answer and Male, and lines well. at the actually results, Chief Chief Chairman am Financial we'll at his Executive as of our Siegel, in session. Officer York remotely New for Vice with home, Jeremy a After

could to differ section XXXX second refer an our in our presentation Form factors after results will are earnings website, first usual, release actual XX-Q find statements forward-looking as quarter slide Relative as XXXX today, materially our is audio be these comments filings, And in statements. our a quarter materials to listed the that there XXXX include be XX-K, in well. and Our XX-Q tomorrow. concluded, including outfrontmedia.com. to will call today's our forward-looking the of that This filed can archive earnings may you conference Investor from Relations SEC and cause our and call

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

Jeremy Male

And the at on see particularly Central, from back appreciate a every as picking back it's clients great outage But and connectivity as businesses. Obviously, demand basis. on Avenue. people of Chrysler that our Grand very had in the know joining in day. office actually indeed Railroad, Transit on through really all in softened Building, our saw what, both us and number are home of demand which and for At Greg, is seeing every and you is of buses quarter. the their power advertising today some the in I storm there. I today. frankly well streets, to at happen. am thanks here, on a that's for I you back Greenwich walked Billboard Lexington journey, been I guided being a drive good our running had could considerably of virtual opening step would now, yesterday up you levels. be many Thanks our I well I business my to the to my the Metro-North in as are still running commuted offices to expense we today that the much, what nightmare the been and have moment, for here, consumer But expected second We numbers revenue the see that

costs While and of drove larger we declines take revenue OIBDA business, dramatic the able on impact to were even AFFO. the significant an out

Slide the out such do our the usual, accurate and as business across seeing but point year move the world, as our business, half COVID-XX X, effects further to still is we comment that Although those later this the low on it's this when call. are Its the playing second was you quarter while not on sequential are see in for nothing forecasting resulting we and satisfying that numbers believe I'll pandemic. be in second improvements in certain the from the exactly as we of in country, firmly forward

pandemic. Media business X. level. and more a segment the no our There from area beginning U.S. detail, So Both Slide let's look particular similar is the were quarterly of our in at Other now our revenue on was down spared

most the down in XX%. see XX% in Media, Billboard and on Transit where divergence down was was you U.S. Slide which results X, can However,

this severe about the leave as As same still into primarily effect. people reflects commuting homes stay-at-home Transit the all their previously, the contraction orders we've At necessities. cities, audience in went in the Northeast, talked which needed time, in are to for larger

were As much fastest expect, Billboard’s growing portfolio. our that better the you worth relative which decline above below, these the audiences to markets ground would within smaller outpacing and were than mitigated noting It's Transit. recently, cities until

ultimately come to While surreal now out expect these but to they lagging, we of them times. are we outperform come as

shifted here as been which was markets. Our are national X local were the in Slide example just and local York media was company's our economy entertainment gone. few biggest have XX% XXX,X first, all hardest pressure TV down movie noting see In movie XX% in local back play what good just with two and decline decline. out national much we the Proportionately, the the they category, out. equal U.S. the at of future we movies, in the moved and first together, pretty top where down were also this vast specific XXXX, majority It's Los releases of or worth that. you this especially in back just isn't Angeles, entire New down that periods the but began of our was of the year-over-year Look, A saw XX%. we that to and accelerating. the industries, dynamics portfolio as XX% and coming drove use extensively, cities, can and studios for XX% shows saw national. national and put entertainment it's the hit, When Media, about and was business

of the were in occupied X, demand Yields yields Turning of to XX% decrease was boards down the timely promotions, country. a quarter. nature linked of more we in on Billboard which in closely maintaining events fact shorter all possible. reflecting function successful quarter Overall, advertising majority the some were in this were across is and pricing static, digital wherever the our digital and down of than more the than as more the Slide in were vast rate curtailed to largely digital that contracts

half. was segment, very challenged Other marketing revenues its illustrates Billboards impacted XX% made revenues length saw down severity Transit of were by Turning X, and the points cancellation by of business similarly athletic on sports Slide our and down Canada to spring seasons. our XX%. moment I with and the revenues X ago a by the in lockdown the the Slide Digital, Billboard down

attractive us. you XX% Billboard growth key to and Digital will Recall Digital extremely to last be that up were Transit, a Digital year, product continue up know, revenues XX%. As advertisers. our our is driver for Digital

caused the pandemic an Matt as aberration Digital move The reengaging and investment our momentarily, we we will describe second are by forward. quarter are results as

let talk So through me we're hand more Matt and to in go that first seeing what before balance I regard, off the of our to about financials. that

Matthew Siegel

expenses Thanks, talking Slide Jeremy, and XX. start good afternoon, about on by everyone. I'll

revenues, forecasted. reduce as much were deliver our excess them couldn't to we as in million While savings $XXX we of able cost we'd of

simply this structure of by but we business, was was Some our broke piece the in driven a the of March. numerous given out pandemic significant by measures took as proactive

business the fees, a expenses, discussions furloughs, to reductions including to accounts advertising we've provision in the XX. on the variable to lower largely Transit continue landlords We to partially negotiations officers workforce revenues due was equity-linked on offset by is we directors, key in proactive line the certain look at and franchise arrangements. minimum expenses primarily down able our of higher lower anticipation impact because with salaries were convert partially lease fluctuations and on plan but were lower a the to cash into various Let's our hiring by market with by for driven base employees. executive slide expense had fell activities. work and proactive to costs, maintenance impact the retirement Transit annual revenue revenues steps market. due to doubtful displays, expenses the have professional offered regarding and there and to of restrictions corporate on non-employee employee-based and lower guarantees temporary an of Billboard decreased expense and with to lease to component took certain share salaries components in deterioration of to partners our lower reductions due SG&A from compensation Posting our reductions, down, offset discretionary COVID-XX. freeze, employee temporary

that as all minimum future you last of benefit chart OIBDA. by costs, some upticks variable of as guarantees. Let's the a offset turn this pandemic posed to revenues, chart sudden OIBDA I the year's primarily a was the to through in fixed a and how downward Cost could just shows shock clearly to costs on of Slide It's This XX. reduction it well described. revenue cost annual in measures able evident were good we portion reduction driven

loss and substantial. in obviously, margin an fixed relative to also business, its of reduced XX in look as a sales be will components on loss, the expenditures These typically of sharp is at particular, While XX, a OIBDA which revenue it's attractive that commitments our of some size. were operating conversions Dallas, significantly. there which Billboard flung and majority that our effects Media, for some following be variable to complete When of more Louis, clear projects we because Indianapolis U.S. followed Slide of positive invest in vast cost on Capital as We is Slide Jersey. will unsurprisingly New we base business, you decline. did some maintenance XX% through certain of Transit, leverage growth, increase in St. have the some on progress. Digital drove our expenses the were the in improves Billboards, the included

to $XX be million there to. our reminding schedule As other out billboard $XX Again, growth, both opportunities very reduced guidance and the to future organic we'll there back CapEx number. It's are digital anticipate acquisitions. year some that to close our we million is we that important likely builds progresses, that for and great being and from you pretty worth paused there projects are getting

AFFO can You XX the in and on revenue see is OIBDA the key driver. Slide move therefore, that

quarter. some drivers, offset, for a in benefit picked AFFO we the other As yet negative was slight up the

metric, While AFFO, which was cash investors we was minus expenditures, cash million free in it, as, our capital flow operations negative, generated is typically a define from the not REIT quarter. $XX

our positive liquidity note this our million our AFFO cash or aggressive now winds and importantly, of position. preferred $XX costs, presented, coverage XX the historically payments for both the $XX dividend statement. strong generation total of we reflects our on with for cost-cutting cash dividends and flow we adjusted protects up generated a includes MTA deployment flow. This free and Slide in As growth some million shows dividend year-to-date. cash that quarter I'll the

Dividends, relative XXXX has will out that into see we flow point to I on to weaker XXXX. core both other you key that stronger cash consideration trend year-over-year potential preferred of increased results for the and areas. cycle ratio investment this us our our allocations Although are levels to as want and be making our of debt for of payout capital basis, LTM the common an continue the and liquidity, outlook businesses

required is REIT we year As last at distribute discussed minimum to our it for our fiscal quarter, least intention XXXX.

XX, significantly can see you has As last slide our since strengthened balance quarter. sheet on

with cash are liquidity We position of a and combined in availability strong $X.X billion.

$XXX and the pandemic, of and to million. we with outstanding under the investment to a our important anticipated portion and raised revenues Providence revolving reduced $XXX XXXX outstanding million suspended million $XXX notes we capacity convertible note the AR the temporarily facility. we the proceeds accounts securitization $XX in on the our that million to facilities also amounts deterioration It's down receivable by During borrowing portion Management, the fully preferred due paid repaid Ares stock of of repurchase we Equity from senior issued credit gross due and quarter, in

and Our maturity in longest nicely with our is thereafter next date maturity XXXX. are laddered significant XXXX our maturities

credit we is of an the covenant purposes purpose our to and in for facilities only EBITDA our quarter may with third maintenance You the XXXX. XXXX to allows us recall as amendment defined substitute the This for second results secured ratio. received senior covenant that for calculating period that same

on compared the leverage proceeds net and has by times net net see partially the you this the basis, are slide, we issue. On offset a end cash quarter times last the on can at quarter. increased preferred this total lower X.X to As from of at results, our X.X

which and sheet project, in on Slide our deployment, is One MTA XX. capital strength liquidity terms see digitization considerations of the our balance you can of

had for earnings as back stopped began the this As we mentioned see our you we reflect here, in cause. May, pandemic can as in the display our quarter call net deployment and adds

the quarter recoup of We million. in recoup the just costs any $XX Our surprisingly, not will total the unlikely and MTA quarter project we do was XXXX. cost remainder during not it's

$XXX costs XX. project June cumulative million at Our were

recommence improved constructing. we front situation in a to in is good decided the display our MTA that in time As Operationally, to deployments New this the York, believe quarter. third the be

the and given drives prudent be modifications preserving However, made pandemic the again We contract. begin uncertainty we, important to agree in deployment to therefore, our us MTA some the with our the of liquidity. to circumstances,

First, deployment this fund capital they year. majority have to of agreed the the

For twelve months, incurred the and over next the any will won't be about will $XXX million pay spending XX%. XX%, of pay There MTA we recoupment.

eliminated minimum the the Second, rest MTA for the guarantees of annual XXXX.

the five a we a paying to pro am in And XXXX. rest of have for years basis compared XX% paid we XXXX. sorry, and the the we will higher – I future revenue share guarantees guarantees paying would delta be level beginning Third, on the minimum added XXXX XX%, minimum for rata to of share are be finally, revenue prior the will resulting between

and position outcome we So partnership. the some quarter improves, we from as to we opportunities that are for may us. wasn't to hope be business liquidity in weather strong closing, to fullest it able to it a arise. a extent In come. may good prepared we environment were able. of from strategic expected prepared emerged spirit a And We difficult whatever for the It benefit the the of was with and

call me to let Jeremy. Now the turn over back

Jeremy Male

now outlook our Matt. And XX. let's Thanks, to on Slide turn

write significant weeks, as had but new you some well we've the cancellations business, have might with Over last deal to to imagine. few continued great

We that point in in are we believe and now us. and the some starts as business of say are despite firmly the the we uncertainty our to that forward, seeing signs pleased reopening, fits behind improvement. look is states low We of

the down to as XX% quarter, this XX%, revenues the in bit The as assets, positive to look a range, see our both today, quarter. third Transit revenues and can be XX% you second around we and expect blended it is down is on increasing above-ground Slide to an basis, improvement Transit down XX. driving from better at factor sequentially. takes around Billboard us which the be For XX% the around a a we step-up to audience Billboard total On key

from shared with we impressions is SMARTSCOUT data. you our quarter, As last audience mobile this sourced proprietary data showing

business are York for seem our Los to least think audience be Angeles us. While in issues we that the general, it's New behind to at fair and lagging, say our Billboard

We XXX% are delivering of pre-COVID levels.

office it doesn't on audience It's a and you of your daily Those can although Manhattan revenues, on recovery. and serve future proxy and as L.A. with City, are somewhat subway call exactly of indicator. solid In is down ridership will piece This million. significant around are they Now, to you align that and our today. to lagging. historical in since as probably rising an mentioned leading it and above path March, see levels, been is went doesn't into be revenues but between the hand, York one then York, commute for this in us a but on pre-crisis our York steadily both X.X New of New pre-pandemic six slowly earlier, million. to I million good was it's are and Transit, now is who markets for five million other well important based a New

to closing, delivering audiences they thank over a to still and have six local making to great to company will that's industry make million, the with takes while, so. but again Even once if They our this and our time. long going Now ridership our way what a a subway national huge both really do are customers. five continue that improving still attractive from for the for be remarkable like million presentation sacrifices it's challenging I'd employees our truly In and digital outfront. we're

increasingly our tailwinds reach and that in While great times in has other We media remain technology much assets and have than data changed them population. more for reliably business. and not. reach directly our much huge has the an still many immediately, economy these distracting We business, and mobile

let's the So with that, questions. operator, line for now open

Operator

[Operator take ahead. our from Morgan Instructions] Ben Please from Stanley. question Swinburne first We'll go

Ben Swinburne

trends move And was of afternoon. that. the the the Jeremy, maybe do half pacings the on detail confused. are this better month-to-month focused if on should you kind the good through of we of that But the obviously, I quarter Thanks, have in improvement color third as Matt, at rate sense quarter? we year. when a MTA. than you thank and of sort any then, for business, little the back fourth look on get you be your bit the I for know don't forward you

just on XXXX think, for If five you point the you the starting making and delta go years. back could I were about added, in being talk

have talking pay. will think the just us would be way could any like, if you what here about about and I you help to, were that would you know know, paid I deltas look don't there what what quantify and I is you helpful. that think might roughly if don't that and

Jeremy Male

Thanks, Ben. Okay.

I'll take piece that first the So question. of

there. remember color. But to if beyond It's we You'll least some that our guide There just a provide typically many lot the from fair there uncertainty. that say is of I don't many can are we still see is that in. at let's calls imponderables still quarter out of

and is with wave, et obviously, late the et any cetera happens there happens schools, have, second sort what of what We cetera. film's

can that improvement certainly the parts uncertainty will sequential But, of both quarter anticipation out what our it's there. from is show business. fourth there in further see still we our So right now,

Ben Swinburne

you. Thank

Matthew Siegel

a we of second are the effectively, quarter going rest to year. share part Ben, for the paying MTA, to them the on the second from the revenue on be

guarantee. that is year. months be the the which won't minimum we over and guarantee the and XXXX. between XX% XXXX revenue from the share amount course will add extent minimum paying the That be share paying guarantee the the up of So minimum five that into of the to we've revenue XX%, bright difference been nine that is aggregate the of below years up We'll and add year our

Ben Swinburne

think going follow-up, all transit year ranges Matt, help we outcome looking you discussions we are into as obviously into your can be of you and And of as "normal". just process an next Is as below see. the this sort Jeremy, us negotiations of partners with and adjustments move of I look well or to a as ridership, at XXXX? about ongoing

Jeremy Male

Thanks, that. Yes. Ben. I'll take Yes,

what over We have We've have have what reason if that costs But wouldn't a total, - those we know they've say them. are look been franchises - very still particular really We've be as XX, got able question. why fixed And regards of discussion what responses. with few like - partnership And been we like, spirit year we how few our see to months, say Look, I terrific great in XX partnership. of the from quite we spirits you you I transit mean, and I that it's had see over the can suppressed early forward. last Transit variables. no to in would next we've with and within maintain necessarily as that a have of you business. will go significance cooperation had to

Ben Swinburne

guys. you, Thank

Operator

ahead. Quadrani question take from will go JPMorgan. Alexia now Please our We from next

Alexia Quadrani

color learned give the wondered on I the and it's what QX. terms guess, of bit you I of Thank What for to saw if bit nationally-driven sort local. of I commitments? little improvement more QX a in you. July what seeing in seeing the what you're a lows are than assume a of little can you've in raise Hi. you on you guide versus more color

at then, than part better seeing any in that's So lastly, mentioned you. of the is Billboards of marks ground, the Thank in moving it then, all obviously, the interim? above And subways. Transit my improvement I Is you all? guess, And you question. in interest to in Transit Are advertisers maybe the first aboveground? subway some doing

Jeremy Male

Good.

that, that, to it's we category have pacing matter you be to the be unless I to big really won't that see And know, as cycle. up again advertisers I supporters fact feel I be just advertising do difficult piece it as very been what think that pretty huge public talking categories, less for that the confident start see that of up a Alexia, a try continue for given we past future. to all in well, So, in have Legal that two are But be think of go us, has there city let I City in The election some QX, really to the then, of Day. were shift generally, most as for New also economies point our the of is for audiences but helpful? is up. through. smaller into and advertising not the for early three or looking Transit expected I be, up business, people actually, that it's us a part, me small services York picking cope in really we that categories we the are difficult local taking terms our is in or that markets, national nice But going held will considering in us maybe through categories. is guess, and local three that that. about also first there of look QX. think it's recovery currently will services, as - of points transit the quite likely base. and personally where Labor to past we pacing into will see take When that look are a And it's our that Political, appears in Transit thereafter. QX And categories good. we ahead. the the QX are been parts Is start public what two

Alexia Quadrani

helpful. much. Yes. very That's very Thank you

Operator

go question ahead. Citi. Please now from we our And next Jason Bazinet from will take

Jason Bazinet

about numbers so, I correcting my please bashful so be don't wrong, much. me. Thanks have may

franchise order like like was I of at payments million guys the XXXX for look the of a MTA year minimum renegotiating I some XX a and that I in $XXX expense, the that suggest had think decline the others you numbers When strongly than of interpretation other in proper transit my it seems million successful on do have numbers quantum or you've Is $XXX maybe that. or the those interpretation to Transit contracts, the of other been MTA. that, of something incorrect?

Jeremy Male

for thanks Jason, question. the

behalf I your right never with are can but discussions bashful. that the are We on partners. numbers And say It's is we've had what Transit that transit that button, very going indeed remembering our And much And to we worth they latitude. imply pretty understood does which we there contracts, these been other constructive a pretty can. desire I are diligently on behalf to diligently give and whatever has continue general, in think to revenues their on definitely their worked with, generate work that's to long-term. and some

Jason Bazinet

great. that's Okay,

Jeremy Male

you. Thank

Operator

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

Ian Zaffino

lease If you. just so, be, looks adjustments permanently at there well again like you medium-term the agreements, that or when the rail ridership reduce are those? authorities, for Because your lease I it Transit discussions Thank you the of work-from-home much? least that the or more expense. am Thanks. when commuter any might about looking your discussions sort terms, or this Is at further? not accountability I in or also, you specifically, with any discussed in just X.X% go the mean there Great. negotiating the if to when go us? opportunity think the developments for would as that, reduce to how a question Can then some And and maybe through other of remind in reduction could you other it? you

Jeremy Male

Okay.

So going Matt. leases to am off to hand the first on question I

like commuter Matt, Sure. back you'd A then - If Siegel on to Matthew rail? and take that come I'll

York as is in some couple expense for markets L.A. with Also landlords, negotiating others. mentioned. couple larger we in the and have some lease have of components been and our we of I in reasons, a variable a New down leases of our So,

contributed that. that's So to

Some EBITDA an over period of negotiations be out and appear lease It's of in reduction longer smoothed is they a accounting to in to our and going going because success AFFO, expenses. lease time. of get not

So going full see effect you're to expense. in not the

we talk really more continue XXX continue to to half and your estate question, them our there as like with portfolio. our in The real second our opportunity? We I - people have, work know, of is partners. We roughly don't landlords group

like we'd assets have are the of the working to we situation. and So maintain this whole to cost diligently we mitigate impact

Jeremy Male

of than to cities going And the into are in Matt. what Thanks, down comes cities, your the continue of second feel about do question, how look part some believe I hugely to continue you are this forward looking GDP and that forward cities to going that the - bigger will they time, relevant over of looking a share to be into take to future. future?

the take only the doing significant believe is that take me I that absolutely do. of North. city I that percentage As That's into to in Metro the And what matter be future. how knowing people of to and the a incredible way will going is and Greenwich, in I of fact what is really it's I getting mentioned live earlier the the on, long

take do. it Are could build? going little of we will back No, probably bit Yes, a to it Now to to not. time immediately? those be levels

working? the on she out right in going there. earlier She was is because the house office to get And you she year be we day around who I a call, be to forecasting ad commuter variables But of chatting them hard, she came does a is and know so as home. there's Where a what? big my back XX Wieden+Kennedy, I want to one year interesting. her someone agencies. we think, little to works working XX, back graduated said for in is rail. is it other the in the She wants bunch there? now, city. just from when taking is How old last She of who get to is going be to lady

And back. digitization take time, a of little forget in confident be that rail, will through commuter So, be we're will going with what this particular we don't fabulous it doing are actually but may bit also that the audiences project.

So, were up as on the huge last we've created value. XX% year. Digital done we've subway, revenues

were last roof revenues year. through Transit Our the

So there in is an advertiser of deficit. up term, we some amazing that digitization, the through could shorter incremental certainly, added for value which believe, make it that

Ian Zaffino

you. Thank Okay.

Operator

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

Stephan Bisson

afternoon. Good

me. from couple a Just

First, and just that's on top the what out on payment MTA MAG years, guarantee annual the in of would correct? to not periods, cash New made being to added the York those and on the the adjustment minimum in necessarily that's City outer be a

Jeremy Male

right. it's Stephan,

We are going works. on an in create recruitment calculation how to It's payment the just higher MAG amortized we the on this a cash result on basis deficit year. to likely the based increase

Stephan Bisson

Got given we And I taking relative is on that's was dip really just larger second seems How July, then, still effect outperformance bit a there trends. moderate Or be a June? markets, is the it. versus then, it guess, think moderate-sized effect? And as to Okay. severe? COVID less little markets in the about markets to of

Jeremy Male

month-by-month. the as seen think, sort most we've part, look, for I we of So, yes, incremental improvement

guiding north into and to QX. that's us will longer likely difficult in a confident what very come which you to exposed breaks geographies to Northeast, also were back. why on in know So, we are obviously QX. for of that take and transit, look the sign QX which keeping be for that's most okay, is geographies, The When in QX positive the we feel

and here York a But on business Billboard similarly, we have big in Washington. the New So, and Coast. also West York then Boston, New

been obviously, San difficult and Fran L.A. So, has

of in Just our revenues. total between New L.A. and York XX% that's revenues,

we So, particularly than Midwest. a to number that they and heavily down our geographies, do look Southeast when in of the weigh more mix

Stephan Bisson

there little I little Got of better it. XXXX, And it's highlight then in XXXX, that isn't terms picture a prior and prospects? big know picture versus structural lot of bit the of you bit next lastly, in couple some clarity positioned a in business recovery kind But differences of the recession could in the of a months. larger what you

Jeremy Male

years from three we took that, back then, years it back over you look growing are get since XXXX, out-of-home, or guess, thing to if XXXX is time. XXXX, the Well, that I structurally since and the first revenues, while to XXXX, two

taking what fact my drove prepared the an coming went Interestingly, uptick mentioned, as was the as growth national the but it that So particularly, came pie. of out share fast, actually there, comments down the I of we fast of advertising the were increased in sort recession, back well.

think I actually, the we a of our Digital. of right coming that, then change. we structural piece where now, from much more And other portion revenues other have differences from big significant is were

got screens got that is audience unparallel of them. to we've data compared but out So also of a we've lot sort there, digital

how our we have uptick so have have and we I We trade going also, data, data, insight. automation see that from to we the a big the are And we think, inventory.

one day we've business. part him, other this X% his is be by I'm think, the for driven of change years of interestingly, and the And And talking someone XX% speeded Everything revenue is, will case. being the for of traded in I that of who now that an automated/programmatic major revenues ago, I he has traded digital way. Germany said seen will works that, corporations actually be in in that and way. our his up sure in digital were that to three that was

or Now out-of-home we going the pie. pipes digital look, out to But start absolutely that destined we going to coming be we do our not go we open going take ad to to that digital just are that don't as dollars, taking I that dollars believe follow are dollars be are will to from line. at I necessarily think

So, as comes. the of to that we number is it there are things think, And, I look recovery can think a I forward different. answer that is, think I yes

Stephan Bisson

Thanks so much.

Operator

Please our next Goss from Jim go Barrington question from ahead. Research. now We'll take

Jim Goss

Thanks.

TV the Is You mentioned the that a numbers the the you that I also, were protect in on fairly the pricing some complex factor smaller and of might issue, you type but I environment able more to have little terms? wonder as of level? like of could being because being the biggest issue and level still value rather ridership maintain more. demographic in bit a pricing than integrity wondered have a at ridership being if more will good aspect, if volume Transit characterize than pricing But to better a scarcity little also you And side, as Is through come the back. current otherwise. a pricing demo senior networks those a sort have go you able of get might rates. Billboard have the

Jeremy Male

it's went Yes. a is white on people towards, workers But to million you there over And after back. the of when bit It X.X question. is complex. was time subway, the all out. that of thank were will fair look more that a probably when is XX%. And skew workers to that it's now before. – good skew down I to mean, little there have say the than probably hi, to less for There us the be collar I for time. less that frankly, a Jim. there come Thanks that still those – absolute a ridership look, is bit looking into of city-type that mean,

over come to we about of pricing. So look part talked we And other time. your that back when when our question, will look billboard you at, the

we've what space do that smart just is available. So is make of use tried to

bit So, I'd someone give prefer to per that and board a inventory sold. overshow utilizing price the of some little at by XXX wasn't keep

with in that smart XXX want that And So the and in getting rates been don't available people sense rather utilizing were think common lower comfortable makes I words, we've taking to than down than past. XX. that just are other we

Jim Goss

you about may over any now? be to your cities inclined markets suburban again just when to right does rethink does your urban favoring less you view from business Okay. cities. somewhat trend and But seem an to get or of Would would your the have talking the cause into And position potentially have try M&A you of then, that moment, may expand that orientation view than to this come to you back were at stronger.

Jeremy Male

was by indicator old office entire Facebook And post Yes. week, leased that the see I very space. big cities. bullish Interesting a office a actually it's think earlier massive for question, Actually, this to fascinating Jim. it Penn Station that's and

there earlier I in while audience, to the young the here one And that are that's will be to the look may advertisers blip, cities, out they to the absolutely to that they want in there that going be As I which going come in believe be, happens be is back. to I at going believe to are cities, cities I reach, where a when city. urban call, that where are Westchester, be. big we think those people big said They aren’t continue that big on

leases have next Now is to would business? we we your forever. the gone XX,XXX re-orientate in particularly to question part Billboard that's sort of Look, look sitting on of over terms of, our

where are of be we've past, we acquisitions with the are that that might good of tuck-in we've for now. I've is, that some answer We assets going XX? not just arise do might weeks change all have absolute arise the strength have I that sort over coming actually balance us months. a couple TMA not be sheet acquisitions, been us profile. through suspect the would contemplate and top for position of of crisis put now strategy to of not that they the us opportunities seen acquisitions occur be a be The So, the within in it's will But should top that to situation an our any and it in from we Would that times. to within opportunities ours it undertaken while. think a alluded naturally might that the we opportunistic indeed,

Jim Goss

right. Well, appreciate thoughts. I your All

Jeremy Male

Thank Jim. you,

Operator

Alright. today. question closing now or And we presenters to turn our additional over further any remarks. answer to like concludes for questions. it That back would session I have our for no and

Jeremy Male

call forward with questions much very the weeks. given that events your few time many Thanks, Hallie, to are for you and us. that thanks we look indeed. at and next and the speaking over to everyone coming up investor And of today you've the on Thanks

Operator

And that you does conclude for today’s participation. your call. Thank

You may disconnect. now

Outfront Media (OUT) 9 Aug 202020 Q2 Earnings call transcript