OUTFRONT Media Reports Third Quarter 2022 Results
Revenues of $453.7 million
Operating income of $74.3 million
Net income attributable to OUTFRONT Media Inc. of $40.8 million
Adjusted OIBDA of $123.2 million
AFFO attributable to OUTFRONT Media Inc. of $86.5 million
Quarterly dividend of $0.30 per share, payable December 30, 2022
NEW YORK, Nov. 3, 2022 /PRNewswire/ — OUTFRONT Media Inc. (NYSE: OUT) today reported results for the quarter ended September 30, 2022.
“We’re pleased to report third quarter results came in as expected, with revenue growing almost 14%. Billboard revenues were up 12%, driven principally by higher yields, and transit’s revenue recovery continued,” said Jeremy Male, Chairman and Chief Executive Officer of OUTFRONT Media. “Despite the uncertainty in the macroeconomic outlook, we feel very positive for the future of our business and believe that out of home, and OUTFRONT, are well positioned for continued growth.”
Three Months Ended | Nine Months Ended | |||||||
$ in Millions, except per share amounts | 2022 | 2021 | 2022 | 2021 | ||||
Revenues | $453.7 | $399.2 | $1,277.4 | $999.4 | ||||
Organic revenues | 449.3 | 398.2 | 1,270.6 | 997.8 | ||||
Operating income | 74.3 | 65.0 | 182.7 | 63.1 | ||||
Adjusted OIBDA | 123.2 | 108.1 | 318.7 | 189.2 | ||||
Net income (loss) before allocation to non-controlling interests | 41.1 | 33.2 | 89.6 | (35.1) | ||||
Net income (loss)2 | 40.8 | 33.1 | 88.7 | (35.5) | ||||
Net income (loss) per share1,2,3 | $0.23 | $0.18 | $0.49 | ($0.39) | ||||
Funds From Operations (FFO)2 | 88.0 | 74.6 | 222.2 | 83.9 | ||||
Adjusted FFO (AFFO)2 | 86.5 | 79.0 | 215.2 | 94.1 | ||||
Shares outstanding3 | 164.6 | 146.4 | 160.7 | 145.3 | ||||
Notes: See exhibits for reconciliations of non-GAAP financial measures; 1) “per share” means per common share for diluted earnings per weighted average share; 2) References to “Net income (loss)”, “Net income (loss) per share”, “FFO” and “AFFO” mean “Net income (loss) attributable to OUTFRONT Media Inc.”, “Net income (loss) attributable to OUTFRONT Media Inc. per common share”, “FFO attributable to OUTFRONT Media Inc.” and “AFFO attributable to OUTFRONT Media Inc.,” respectively; 3) Diluted weighted average shares outstanding. |
Third Quarter 2022 Results
Consolidated
Reported revenues of $453.7 million increased $54.5 million, or 13.7%, for the third quarter of 2022 as compared to the same prior-year period. Organic revenues of $449.3 million increased $51.1 million, or 12.8%.
Reported billboard revenues of $355.0 million increased $37.6 million, or 11.8%, due primarily to higher average revenue per display (yield) compared to the same prior-year period, as we have experienced an increase in demand for our services, and due to the impact of acquisitions. Organic billboard revenues of $350.6 million increased $34.0 million, or 10.7%.
Reported transit and other revenues of $98.7 million increased $16.9 million, or 20.7%, due primarily to an increase in yield compared to the same prior-year period, as we have experienced an increase in demand for our services due to an increase in transit ridership, partially offset by the loss of a transit franchise contract. Organic transit and other revenues of $98.7 million increased $17.1 million, or 21.0%.
Total operating expenses of $232.6 million increased $32.8 million, or 16.4%, due primarily to costs associated with higher billboard and transit revenues and higher guaranteed minimum annual payments to the New York Metropolitan Transportation Authority (the “MTA”). Selling, General and Administrative expenses (“SG&A”) of $106.5 million increased $8.0 million, or 8.1%, due to higher compensation-related expenses, including commissions and salaries, driven by both business performance improvements during the period and the impact of COVID-19 on the third quarter of 2021, a higher provision for doubtful accounts, and increased post-COVID 19 pandemic travel resulting in higher travel and entertainment expenses, partially offset by the impact of market fluctuations on an equity-linked retirement plan offered by the Company to certain employees.
Adjusted OIBDA of $123.2 million increased $15.1 million, or 14.0%, compared to the same prior-year period.
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