OUT - Earnings call transcript Q1 2021

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Operator

Ladies and gentlemen, good day, and welcome to the First Quarter 2021 Earnings Conference Call. At this time, I would like to turn the conference over to Mr. Greg Lundberg. Please go ahead, sir.

Greg Lundberg

Good afternoon, everyone. our Quarter joining Call. for you XXXX Earnings First Thank

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

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

of certain references reconciliations this and to basis. on And non-GAAP right appendix the the And non-GAAP over of measures earnings made turn refer on adjusted presentation, who's be will measures slide our financial me. Web OIBDA will in will other to are site. release and I Jeremy, to We an call next financial any OIBDA now the to sitting on and the call today

Jeremy Male

and first and instead. like break XXXX the review rear firmly before rear tell I'd Matt into the view. pleased Thanks, both sitting Greg, to the the our about and be thank all Yes, of today views, look office joining pandemic you happy that to tradition with to putting I'm us you Talking I the I'm forward all for vaccinated on and Manhattan worst today. and here Greg, quarter,

the our is a in So second for total to second now, to the outlook. high quarter expectation revenues range. return significant for up with mid XX% quarter let's Right growth our with begin

our towards step is that now review and Slide feel it X. said, on pandemic rest record increasingly is let's we a the to is which positive With forward this lows, back obviously our year. XXXX quarter, about summarized our XXXX first get While big levels the the of of

As remembering low of for we end country the first wasn't reopenings. pretty because last first in Sports guidance our made and strong discussed a substantive the different down grew by had when at outlook quarter quarter much our fourth terms in simply of adjusted revenues last of for from the quarter were you hadn't Total with XX% February, the worth year's billboard progress revenues range that our Marketing X%. business. sale we It's year vaccinations

While decrease we led expense able and steep AFFO. decline variable both revenue enjoy the to reduction, in OIBDA a some to were

were April compared were turn revenues. US ridership it's around subway, be of needs revenues Ridership low remained revenues seeing a now with But stubbornly view rail Slide are XX%. Let's of our Billboard more XX% to transit the at media across of down prepandemic while we around which XX% detailed levels. X, is quarter down has ridership in the where to it the nice at New to direction. example, for some starting City on right move was green that the see not up Weekly shoots. it's fourth XX% Obviously, to the average. end but York to country

Turning to X. Slide

more I'll call. absence particular is entertainment, in advertising of detail this billboard been and yields. categories transit to travel. than has the The historically the Part fact more see towards weighted part due local. later movies, in TV, that can these more National of is advertising national it of this was discuss obviously, to also most categories, down You that And due impacted

were X, with our line revenues. Slide on down see can XX%, in you total As yields essentially

expanding QX expect in that we our US our up X quarter's XX%. complete revenue our steady revenues, year, had total business to X, be Despite this the where half business, see To digital business, revenues quarter, in Last than more XX% principally it's growth. Slide Slide we is as decline, on for contributing some further and to very faced this Our here. up total some significant in issues saw revenues picture other of XX% tough transit and our digital comps. we've which same the business holding Canada, good rebounds. with shows the this reflects This on were lockdowns nearly comprises declined our the digital market dollar proportion and

Let me quarter more first now hand in detail. to our review to Matt over

Matthew Siegel

due of on to the the as minimum New that, most XXXX York you thank paying turn February fact we for is mainly Please MTA we the instead our with call, total mentioned revenues. This $XX and year-over-year. our annual less than million Overall, the X, afternoon, we the on guarantee rate run call revenue our on down Slide of expenses to share today. lower are joining during the contract Good expenses. will begin were

we key continue in in other be However, revenue share systems. to our transit

the billboard of expected. from also Posting some reduction allowance than of down expenses as sale our of year. is the collections on $XX Sports SG&A lower we that were continued benefit and bridge in quarter, coming million Slide OIBDA maintenance amount costs. from doubtful The We same fell we last as the and lease saw about for reflecting Marketing lower at last XX. took steps a year accounts with better half were some last

of leverage thought lightest pandemic slightly to the color composition. know, through fixed revenues the year. The us where ways. growing the growth and our works entire both we territory. quarter $XX as given ended expect high bringing the rates always you OIBDA on start OIBDA nature the As cost you And relatively of Remember is gives in throughout million, here, XX significant We at we business. that first ahead from we Slide positive up operating see

growth this intention quarter timing reflects spending XXX to as to lower our add Let's The XXX digital back and portfolio. our it's prepandemic amount levels total now to bring expenditures capital XX. billboards to our on turn issues Slide to

Slide guidance AFFO. the at is minor. OIBDA very categories shows Our total bridge year The other were in of XX remains the CapEx. biggest million changes since driver the in for unchanged $XX

negative right previously annual likely of anticipated. now, feel guidance will for XXXX. range was of growth indicated growth it's be And quarter ahead to This annual as we we our that XX% XX%

As you year business gain to and look momentum the guidance know, as to updating the billboard our continues forward progresses. we

Turning an XX MTA to update. Slide for

meantime, XXXX contract a a quarter. was equipment it position approximately that regarding deployment $XXX we'll our be constructive future. with see annual in scope the can you $XXX estimates update previously. $XXX million we the the deployment reduced million, down to We more to remain of near conversations light and in and the in to fully tenure the MTA to In million You

Now balance our turn Slide let's on XX. sheet to

Our liquidity remained strong $X.X at billion.

some notes Atlanta. markets, billboard Phoenix same X.XX% during year Our revolver due we slightly on notes, paid we We refinanced including down incurred to costs, senior the acquisitions quarter. cash tuck proactive various remains in facility. actions of outstanding took from end off and repurchase and closing our Philadelphia, which undrawn some We digital in spent $XX [X.XXX%] million the and is under amount our with $XX million

we revenues in to help tuck look and digital conversions, forward, invest decisions technology focused continuing grow further in As remain our and on capital acquisitions.

ahead. we the year XXXX, dividend. position we evaluate pleased closing, Board reinstatement our we of for be will an think strong to our with backdrop, Importantly, regards recurring us common sheet, growth as economic exciting into In in back to outlook are supported by mode forward move a and the entering balance

Let the me turn call over Jeremy. to back

Jeremy Male

our to Thank turn more you, on again XX. Matt. now And a detail outlook let's bit Slide in

surpassing that year. XX% of robust mentioned track in adjusted while of absolutely to has This Transit still and Marketing up led for billboard, relatively expect I the which year-over-year high sale dollar dramatically the Sports remains As last revenue ridership believe do in total in be we year. range second levels terms, be the revenues mid XXXX in will with the quarter on we XX% end to and increase earlier, growth we're QX. this lagging, outlook be improved by towards is small to expected

the mentioned business growth XXXX. aren't The is our loaded categories and our despite that develop, and guidance fact be continue year back achieved market. that green transit this recovery simply it's in will back QX earlier being As improvement that still there the in likely the into our shoots many strong I in more improvement end are

the true. year. What's these revenue like bring with by really very look to categories news our of representation James that noticeable you The the half and of movies, If pandemic, new the quarters. most If the a turn And entertainment, and recovery three post The later year-over-year our is Slide time. of first will XX, of already pandemic films travel, books. Space can category large Furious, onto reverse our the nearly the last big of are we're Jam you during represented in they movie in of all impacted at like quarter. category in casinos, seeing this fact, TV, it first important categories years' is over in period decline we each some things the Fast good swings significant the revenue by back see Bond this graphic the

line in and of New restrictions on majority lifting York, announced New of the most pandemic with yesterday, Just XXth. Connecticut, the states, Jersey May

hour XX on Here XXth. subway city, resuming in the is service May

a call positive today, we environment. that this leave we into growth as know back are firmly So

world's right of and As market positive will well back thrive the summer go across events positioned our more that office, fully home vacation. will we then out, in case move this, extremely of stores, more our of see out Outfront months, customers, rates a we momentum the school the on dine country. In meet back all shop and to attend the and, our us And and to to more stakeholders. our vaccinated, like parts benefit people we fall. to in of are to the is towards desire to business believe continue as indeed,

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

Operator

[Operator comes Instructions] Alexia question Our JPMorgan. with Quadrani from first

Anna Lizzul

Anna is for Alexia. This on

probably trending. at to on noted that improvement as they kind the side? billboard this improvement wanted visibility side. as New QX early ask on of I morning how that the wondering in York May. you're Has same Lamar about I'm First, least expect seeing billboard the City if improved is just You know

Jeremy Male

in QX, Maybe that said just think talking I question, before I I revenue was QX. transit increase think about we I our when address

was increase XX% that for just for QX So clarity.

of just ahead good of helpful which is XXXX, them really a little actually And markets. see. of really, Anna. obviously, full about business look billboard QX, into lot let's of we're take feeling question, when we And particular. life our that in have in our give clarity, over outpacing billboard In general, to those, it's detail of bit better XX for maybe we and about a sort half pacings stop So of the are to

Now it fair, to smaller be our tends be to markets.

smaller period, Our have, our entire some over cities. outperformed of the larger markets

So L. a those the we're back get sort but our not at levels, or really levels as over only about can sign. A. end. or towards total, I in good it's York repeat New moving in 'XX general And feeling positive we back our of Francisco, yet San

Anna Lizzul

In keep those year? going listed And follow-up, if categories your just are Slide categories which what one driving may. through reference the on you've to can guidance and XX, the I factors

Jeremy Male

spoke weaker. TV, And travel. still I Well, moment categories right professional and still Internet and call great, guess are all by of cable don't weak, airlines look beer, categories there. being when we legal, retail liquor and at Broadway, we most and The and today, doing at ones in we are that look sit dollar when on growth services have is and terms is that up the billboards. at I the still movies, obviously, as is about and here the financial, QX driven we the

to as these, of all So absolutely, progresses. potential, have snap the we year the believe, back

a us. So they for come that hopefully, back just think I be, as will that tailwind further

Operator

next comes Stanley. with from Ben question Morgan Swinburne Our

Ben Swinburne

that's your combination? questions, Two likely missed sort -- or you might ahead can the sort color some it, if any you apologize, in guess on function to the why on update add. of about build upside, like it the or guidance. there on I revenue year relationship? a I a to comments, just or sounds but Jeremy then coming guys gave anything would anything MTA, you your Is sure people you your of like this just you And AFFO initial you comment comment or it, if about and have reducing love CapEx And that, is comment in of full Matt, on to year more you would spending. I'm Could I but and this MTA talked didn't that ability talked you else of hear. see add

Matthew Siegel

chime I'll take in. can those, Jeremy and

It's months about guidance, material a feel primarily obviously, interest. couple Really the just did revenue, isn't ridership we nicely. change from or out. in than overall as Transit It's we better AFFO billboard of still the but growing, there. Jeremy progressing our business On ago. pointed is no CapEx

bringing along revenue it year we'll with hopefully, more it's OIBDA to say progresses. the as So have, and

with On I making we're as think the conversations long We duration the together. MTA, we're in progress mentioned, constructive, but MTA.

of recall, we place. If on. the you a is long contract, a complicated we process. and things There's back up It's have of approvals signed contract. when MTA a it's a first lot a complicated lot The going

we'll moving announce lot investment soon, something goal plan can have extended new So but that get contract. a we there's modified of think the a some and shortly. we news we of we're really hopeful duration our parts that is And

Operator

question from next with Our Zaffino Ian comes Oppenheimer.

Ian Zaffino

say be what billboards digital up I to think of XXX said. guys to you this you going you're year? that Did that's

that deploy that is during seeing you're COVID up you up boards to? a wanted like to so demand you trying didn't of that to additional is reflection And this catch pent you're or a opportunities where just

Jeremy Male

we XXX to around Before mark. XXX at that were the pandemic, or

of right yes, of really previous on switched year. last off from at back getting pandemic, it's switched QX we back our level XXX XXX from But any year. for start to really last to the of spillover months sort pipeline of than to So rather tap few a about about more it massive kind the

Ian Zaffino

revenues stations. on know great. know XXXX. what of that how that I had capture and should kind think starts about that's talking more in I just starts guys think subway you back of less conceptually But you of business side, you great. to the you maybe recovery, need are we to wanted ask the not about do actually is recovering. I to there's reopening because this? impressions But recovery and transit happening, it's and same It's The about less then ridership people XXXX? and on to that's in But think in MTA the full the think subway you're XXX% And the people because terms that business valuable the or that recovering I how as get

Jeremy Male

let's better that so to that million improving in environment brand, million -- that X we XXX% systems revenues. is XXXX DC, don't are city, we with a is get process advertising audiences we Boston advertising that of can I the We at be dramatically to to That's as to are we I need in you're XXXX office. to New advertising. dollars. think about But We're thing our largely brand mean, out drive to and in sort believe and think may follow better we But the that it depends York, guess X exactly kick really in natural franchises revenues as models rise consequence will or to here see of car when key getting will entertainment the for we starting which digital, we if out, back crowded will that of going back we eating levels. think talk believe the daily on what a in still people which looking for what back up and And so absolutely in to York. the advertisers San actually -- here say audiences the and soon out we really don't of subway we're about certainly where Francisco, for be get have some first engagement. less investments think I environment New --

to positive. good balance year all for than longer next a to be us billboard. tailwind it's to But going it's going So directionally It's going of take into XXXX. and be the this over

Operator

Stephan next comes Wolfe from Our that's question and Research. Bisson the with

Stephan Bisson

much buy back there's system? changed? now Can lead it digital more I the has the was the transit how talk in wondering, recovers? could How is necessary as quickly time about more environment you come that

Jeremy Male

that difficult the yes. we portfolio. through think the being talked bigger were I of it's pipes, as our fact bit right We becoming that, being XX% yes, absolute, can across that's certainly And our to automation only business. now that to our not short money going actually is to the And increase. as about just And about We programmatic later. think, medium. and We and digital is digital seen Stephan, engaging an take little were a transit answer revenues a always buy. inflexible I

That miles have really the isn't case ahead. book You to now.

very significant short indeed industry us buys think lay us which as great with is down the can notice, for whole. at and actually a You we

Stephan Bisson

think were big with valuation liquidity? I given gap. the that noted the a a you markets have last on little on Do any market then And up M&A you update significant tied pretty bit call, the your

Jeremy Male

about executed tuck We acquisitions more pipeline. talked that certainly or ins in the two the three in first we've some quarter, got and we small

we a as from about of through potential we being expectation of did to value yes, sellers -- go buyers. mismatch think there I talk a bit

seeming think like we bit. -- go some I would year. to through in some that's that more to out the and we iron a as this of expect balance see maybe tuck And

Operator

Jim with comes Research. next Barrington from Our Goss question

Jim Goss

to you're to the a of sort couple lot a now that related and be way, rethinking get were questions. time a of that maybe disparity think office be in urban suburbs past? bad am you outside normal, you anything your for would that that to there remote the the was close properties more they'd I've would would of good is, case, if in to billboards but be the of the do that sort the maybe that that during a got relative thinking at less for something I the early came the future expectations usage pandemic One And and work be a the back still the getting space that sense up there answer in or city?

Jeremy Male

hard was were in middle when I the it things going the really to think were pandemic, sitting out. play we how of to see

vaccinated, some from the fact, confident. big sat types. cities, large And of of reluctance, the we're to have get think et now, we're [everybody] offices will get to way office we've feel believe interesting it's here working increasingly where of some the Jim cetera. our got just And really as people see almost back think will we people out comments all industry but back will earlier all other across I desire -- to And from normal. kind a and that what I home, In from all the country we to in right been there's today is thinks about will homes. from about in as they of indeed a that, that their he benefit Diamond number

disparity do have centers. in little markets assets is country. take So in we have it may But the a may there what certain and city while across we be some

assets audience our can through they are. find our assets wherever We in have burbs. We the

as going we on And So call, we of general, this believe way that of feel, the great to as balance home we've a confident in hopefully be in year. an to increasingly industry, indicated out impact audiences is the to very future. this continue about

Jim Goss

entertainment are movies probably back little. slide off was And you've categories, on you and drop at looking biggest coming where the said were the a

wondering well be tightened maybe any and blockbusters. a windows a in push where film affects impacted release on maybe process, the bit, except business business, bit the shorter other or quite biggest that might Do of the three terms digital a more for it your that? in be weeks course little thoughts longer or I'm having into or that might period time in of tie a if be of Over two would way. a might that and have it have lot if turnover some bigger there this you

Jeremy Male

do digital of think now can proposition I something And expect absolutely the we inventory will some terms deliver. to tension also, some it's which we coming back as because of our buys will absolute in those of availability start it that, we see that some as year. like these increasing desire go billboard our shorten think right categories I And flexibility, balance assets interesting to put they to in of see just terms. of on this is do some

that digital, be be can might have incremental that demand. a where you capacity that able incremental way we to So satisfy

Jim Goss

opportunity that would And prices that I and imagine. way an could pressure probably give too, you

Jeremy Male

imagine, supply carefully you manage the yes, trying business at pretty our our certainly Well, moment. across as and can we're demand to

Jim Goss

all was talked though, any some new had question, the the several And of are last process wondering, win? about contracts. focused on to if began. there wondering stand that I about trying transit My I'm you this There for before were you're those very bid that and where

Jeremy Male

really we that longevity major no up franchises transit right other be there's as happen, was the year I now, transit within to many we expect in look two. of for calendar pushed within now at that said, that the we aren't that actually for as we a within certainly 'XX. in And this of play out major terms contract. franchises bid So year have, have that right or happen year. there to other calendar to Most bids, Washington expect transit got some

Operator

no we questions have further time, this queue. At in the

our So to back I'll for comments. speakers it turn closing

Jeremy Male

thanks within you thanks and today. us to again. everyone operator investor to joining weeks. you And Thank you we the we're look and coming So, seeing speaking events forward for at

Operator

today's gentlemen, your Ladies and participation. that Thank you for concludes presentation.

You may now disconnect.

Outfront Media (OUT) 5 May 212021 Q1 Earnings call transcript