Core Insights - OUTFRONT Media (OUT) shares have increased by 11.2% over the past three months, significantly outperforming the industry's growth of 1.2% [1] - The company operates a diversified portfolio of advertising sites across key U.S. markets, which helps mitigate revenue volatility [3] Business Strategy - OUTFRONT Media is transitioning from traditional static billboard advertising to digital displays, which is expected to enhance digital revenue growth [2][4] - The company is making strategic investments in its digital billboard portfolio and transit assets, aiming to expand advertising relationships and boost revenues [4][8] - In Q1 2025, OUTFRONT Media acquired assets worth approximately $5.7 million to enhance its portfolio quality and long-term growth potential [5][8] Industry Trends - Out-of-home (OOH) advertising is experiencing rapid growth and increasing its market share compared to other media forms, driven by lower advertising costs and technological advancements [6] - The fragmentation of other advertising media is facilitating a shift towards outdoor advertising, benefiting companies like OUTFRONT Media [6]

Core Insights - Allegion US has launched the Outdoor Defense option for Von Duprin exit devices, marking the first product designed specifically for outdoor conditions, enhancing reliability and functionality [1][2] Product Features - The Outdoor Defense option enhances the durability and performance of the 98/99 Series exit devices, providing protection against moisture, temperature variations, and corrosion [2] - This option is available for both mechanical and electronic components, including popular features like latch retraction, alarmed exits, delayed/controlled egress, and monitoring [3][4] Market Positioning - The introduction of the Outdoor Defense option sets a new standard in exterior security solutions, reflecting Allegion's commitment to engineering excellence and customer satisfaction [4] - The product is designed for various outdoor applications such as courtyards, rooftops, and perimeter security, ensuring safety without compromise [4] Company Overview - Allegion designs and manufactures innovative security and access solutions, with a strong portfolio of brands including Von Duprin, Schlage, and others, catering to both residential and commercial markets [5]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The service offers a free two-week trial to explore top ideas across exclusive income-focused portfolios [1] Group 2 - REITs encompass various forms, including non-traditional types such as data centers, cell towers, and outdoor advertising, which play essential roles in the economy [2] - The focus is on defensive stocks with a medium- to long-term investment horizon [2]

Outfront Media (OUT) FY Conference Summary Company Overview - **Company**: Outfront Media - **Event**: FY Conference held on May 14, 2025 - **Key Speakers**: Interim CEO Nick Bryan, EVP and CFO Matt Siegel Core Industry Insights - **Industry**: Out of Home (OOH) Advertising - **Market Position**: Outfront Media is positioned as a leader in the OOH advertising space, focusing on enhancing its value proposition to marketers and improving operational efficiencies. Key Points and Arguments Leadership and Experience - Nick Bryan has over 35 years of experience in the advertising agency sector, emphasizing the value of OOH advertising in brand building and growth [4][6][7]. Strategic Imperatives 1. **Sales Strategy and Culture**: Focus on changing the sales strategy and organizational culture to align with market demands [6][7]. 2. **Technology and Automation**: Emphasis on improving systems and technology for better automation and process efficiency [7]. 3. **Attracting Non-OOH Advertisers**: Targeting large multinational brands that currently underutilize OOH advertising [7][27]. 4. **Operational Efficiency**: Aiming for high operational efficiency across all initiatives [7]. Marketing and Measurement Challenges - OOH advertising is perceived as undervalued and poorly marketed, leading to a decline in its share of total media spend [4][9]. - The need for improved measurement metrics, including reach and frequency, to enhance the effectiveness of OOH advertising [9][13][16]. - The industry must focus on providing clear Return on Advertising Spend (ROAS) and incrementality metrics to attract sophisticated marketers [9][16]. Market Trends and Performance - Q1 2025 saw a 4% increase in national advertising but a 3% decline in local advertising [35]. - The company is optimistic about Q2 trends, with 90% of the quarter booked and 70-75% visibility for the year [37][40]. - The West region, particularly LA, faces challenges but shows potential for recovery with upcoming entertainment events [45]. Financial Strategy and Outlook - Outfront Media is focusing on structural improvements to enhance profitability and operational agility [34]. - The exit from low-margin contracts in New York and Los Angeles is part of a strategy to improve EBITDA margins [46][47]. - Digital conversions are targeted at 100-150 units per year, with a consistent internal rate of return (IRR) of around 25% [62][64]. Future Growth and M&A Strategy - The focus for 2025 is on transformation and operational excellence, with modest M&A opportunities considered for future growth [67][68]. - Potential areas for M&A include technology, systems, and partnerships in the experiential space [68]. Additional Important Insights - The company recognizes the need to integrate OOH advertising into the broader marketing mix, emphasizing its role in brand building and consumer engagement [22][33]. - There is a significant opportunity in the retail sector, as retailers increasingly seek to become media owners [28][30]. - The company is aware of macroeconomic uncertainties but remains confident in its operational resilience and market position [41][43]. This summary encapsulates the key discussions and insights from the Outfront Media FY Conference, highlighting the company's strategic focus, market challenges, and future growth opportunities.

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Company Ratings and Analyst Insights - OUTFRONT Media Inc. has a dividend yield of 8.00%. Morgan Stanley analyst Benjamin Swinburne maintained an Equal-Weight rating and reduced the price target from $18 to $17, with an accuracy rate of 77%. TD Cowen analyst Lance Vitanza initiated coverage with a Hold rating and a price target of $16, having an accuracy rate of 75%. Recent news indicated worse-than-expected first-quarter financial results [7] - Healthcare Realty Trust Incorporated has a dividend yield of 8.08%. Wedbush analyst Richard Anderson maintained a Neutral rating and cut the price target from $18 to $16, with an accuracy rate of 62%. Wells Fargo analyst James Feldman assumed coverage with an Underweight rating and raised the price target from $16 to $17, having an accuracy rate of 61%. Recent news showed downbeat quarterly sales results [7] - Park Hotels & Resorts Inc. has a dividend yield of 9.63%. Morgan Stanley analyst Stephen Grambling maintained an Equal-Weight rating and reduced the price target from $12 to $10, with an accuracy rate of 63%. Truist Securities analyst Patrick Scholes maintained a Buy rating and cut the price target from $18 to $16, having an accuracy rate of 65%. Recent news reported better-than-expected quarterly results [7]

PART I [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents OUTFRONT Media Inc.'s unaudited consolidated financial statements for Q1 2025 and 2024, including notes and revisions for noncontrolling interests [Consolidated Statements of Financial Position](index=3&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) Total assets decreased slightly to **$5.13 billion** as of March 31, 2025, with stable liabilities and declining equity due to distributions Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $30.5 | $46.9 | | Total current assets | $321.3 | $385.8 | | Goodwill | $2,006.4 | $2,006.4 | | Total assets | $5,132.3 | $5,215.2 | | Short-term debt | $50.0 | $10.0 | | Total current liabilities | $529.8 | $520.8 | | Long-term debt, net | $2,483.7 | $2,482.5 | | Total liabilities | $4,426.6 | $4,431.2 | | Total stockholders' equity | $566.9 | $649.0 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 revenues decreased to **$390.7 million** due to the Canadian business sale, while net loss improved to **$20.6 million** due to no impairment charges Q1 2025 vs Q1 2024 Performance (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $390.7 | $408.5 | | Operating Income | $13.9 | $14.0 | | Impairment Charges | $0.0 | $9.1 | | Interest Expense, net | ($36.0) | ($41.4) | | Net Loss Attributable to OUTFRONT | ($20.6) | ($27.2) | | Diluted EPS | ($0.14) | ($0.18) | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to **$33.6 million** in Q1 2025, while investing and financing activities used cash, resulting in a **$16.4 million** decrease in cash Cash Flow Summary (in millions) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash flow provided by operating activities | $33.6 | $30.6 | | Net cash flow used for investing activities | ($24.7) | ($19.0) | | Net cash flow used for financing activities | ($25.3) | ($4.9) | | **Net (decrease) increase in cash** | **($16.4)** | **$6.4** | | Cash and cash equivalents at end of period | $30.5 | $42.4 | - The increase in cash used for financing activities was driven by higher net borrowings under short-term debt facilities in the prior year period (**$55.0 million** in Q1 2024 vs **$40.0 million** in Q1 2025)[19](index=19&type=chunk)[223](index=223&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail the company's REIT structure, Canadian business sale, debt, revenue recognition, segment performance, MTA agreement, and a revision for noncontrolling interests - The company operates as a REIT with two reportable segments: Billboard and Transit, and its former Canadian operations were sold on June 7, 2024[24](index=24&type=chunk)[25](index=25&type=chunk) - In Q3 2024, an error in accounting for redeemable noncontrolling interests led to a revision of previously issued financial information, which was not material to prior periods but would have been to the current period[28](index=28&type=chunk)[110](index=110&type=chunk) - In Q1 2024, the company recorded a **$9.1 million** impairment charge related to its New York Metropolitan Transportation Authority (MTA) asset group due to negative cash flow forecasts, with no impairment recorded in Q1 2025[38](index=38&type=chunk)[95](index=95&type=chunk) - The company's long-term equity incentive program was updated in Q1 2025, adding a relative total shareholder return (TSR) metric and removing adjusted funds from operations for performance-based awards[77](index=77&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, noting a **4% revenue decrease** to **$390.7 million** due to divestiture, flat organic revenues, and a **3% Adjusted OIBDA decline** to **$64.2 million** Key Performance Indicators (in millions) | Indicator | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $390.7 | $408.5 | (4)% | | Organic Revenues | $390.7 | $389.9 | 0% | | Adjusted OIBDA | $64.2 | $66.5 | (3)% | | Net Loss | ($20.6) | ($27.2) | (24)% | | AFFO | $23.9 | $23.2 | 3% | - The sale of the Canadian business on June 7, 2024, is a primary driver of the difference between reported and organic revenue performance[123](index=123&type=chunk)[145](index=145&type=chunk) - Increasing the number of digital displays is a key element of the organic growth strategy, as digital billboards generate approximately **4-5 times more revenue** than comparable static displays[130](index=130&type=chunk) [Segment Results of Operations](index=37&type=section&id=MD%26A-Segment%20Results) Billboard Adjusted OIBDA rose **2% to $99.0 million**, Transit revenue grew **3% to $77.7 million** with an improved OIBDA loss, while the 'Other' segment declined due to divestiture Adjusted OIBDA by Segment (in millions) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Billboard | $99.0 | $97.1 | | Transit | ($14.2) | ($15.3) | | Other | $0.5 | $0.9 | | Corporate | ($21.1) | ($16.2) | | **Total Adjusted OIBDA** | **$64.2** | **$66.5** | - Billboard segment revenue was adversely impacted by lost billboards, particularly in New York and Los Angeles, but this was partially offset by an increase in average revenue per display (yield)[173](index=173&type=chunk) - Transit segment revenue increased primarily due to higher yield, partially offset by the impact of new and lost franchise contracts[178](index=178&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=MD%26A-Liquidity%20and%20Capital%20Resources) The company maintains **$2.53 billion** in total debt and a **$208.5 million** working capital deficit, with liquidity from cash and credit facilities, projecting **$85.0 million** in 2025 capital expenditures - The company was in compliance with its debt covenants as of March 31, 2025, with a Consolidated Total Leverage Ratio of **4.8 to 1.0** (well below the **6.0 to 1.0** limit) and a Consolidated Net Secured Leverage Ratio of **1.6 to 1.0** (below the **4.5 to 1.0** limit)[60](index=60&type=chunk)[61](index=61&type=chunk)[211](index=211&type=chunk) - For the full year 2025, capital expenditures are projected to be approximately **$85.0 million**, separate from the estimated **$35.0 million** in MTA equipment deployment costs[196](index=196&type=chunk)[222](index=222&type=chunk) - On May 8, 2025, the board approved a quarterly cash dividend of **$0.30 per share**[71](index=71&type=chunk)[199](index=199&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from commodity prices, particularly electricity, and interest rates on its **$400.0 million** variable-rate Term Loan and AR Facility, while credit risk is limited - The company is exposed to interest rate risk on its variable-rate debt, including the **$400.0 million** Term Loan and the **$150.0 million** AR Facility[234](index=234&type=chunk)[237](index=237&type=chunk) - Commodity price risk is present in electricity costs, but the company mitigates this partially through fixed-rate purchase agreements, which covered **8.2%** of total utility costs in 2024[232](index=232&type=chunk)[233](index=233&type=chunk) [Item 4. Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The Interim CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the reporting period[241](index=241&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[242](index=242&type=chunk) PART II [Item 1. Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, none of which are expected to materially affect its financial position, results, or cash flows - In management's opinion, no current litigation is expected to have a material adverse effect on the company's results, financial position, or cash flows[246](index=246&type=chunk) [Item 1A. Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) No material changes from the risk factors disclosed in the 2024 Annual Report on Form 10-K have been reported - No material changes from the risk factors disclosed in the 2024 Annual Report on Form 10-K have been reported[247](index=247&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities in the quarter - There were no unregistered sales of equity securities in the quarter[248](index=248&type=chunk) [Item 5. Other Information](index=53&type=section&id=Item%205.%20Other%20Information) An executive, Richard H. Sauer, adopted a Rule 10b5-1 trading plan on March 14, 2025, for the potential sale of up to 50,000 shares - An executive, Richard H. Sauer, adopted a Rule 10b5-1 trading plan on March 14, 2025, for the potential sale of up to **50,000 shares**[251](index=251&type=chunk) [Item 6. Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section references the Exhibit Index, listing all documents filed as part of the quarterly report, including certifications and equity award agreements

Core Viewpoint - OUTFRONT Media Inc. reported a first-quarter 2025 adjusted funds from operations (AFFO) per share of 14 cents, missing the Zacks Consensus Estimate of 15 cents, with no change from the prior-year quarter [1][2] Financial Performance - Quarterly revenues were $390.7 million, missing the Zacks Consensus Estimate by 1.5%, and decreased 4.4% year over year [2] - Billboard revenues totaled $310.7 million, reflecting a year-over-year decline of 1%, attributed to lost billboards and lower proceeds from condemnations, partially offset by higher average revenue per display [2][3] - Transit revenues increased to $77.7 million, up 2.6% from the year-ago quarter, driven by higher average revenue per display [3] - Operating income was $13.9 million, slightly down from $14 million in the previous year [3] - Operating expenses decreased to $221.3 million, down 7.3% year over year, due to lower variable property lease expenses and the impact of lost billboards [4] - Net interest expenses decreased to $36 million, down 13% from $41.4 million in the prior-year period, due to lower average debt balance and interest rates [5] Cash Flow and Balance Sheet - Net cash flow from operating activities for the quarter was $33.6 million, an increase from $30.6 million in the prior-year period [6] - As of March 31, 2025, the company had unrestricted cash of $30.5 million and $494.8 million available under its $500 million revolving credit facility [7] - No shares were sold under the at-the-market (ATM) equity program, with $232.5 million available under the program at the quarter's end [8] Dividend Information - OUTFRONT Media announced a quarterly cash dividend of 30 cents per share, payable on June 30 to shareholders of record as of June 6, 2025 [9]

Core Insights - Outfront Media reported $390.7 million in revenue for Q1 2025, a year-over-year decline of 4.4% [1] - The EPS for the same period was $0.14, compared to -$0.18 a year ago, indicating a significant improvement [1] - The revenue fell short of the Zacks Consensus Estimate of $396.65 million by 1.50%, while the EPS missed the consensus estimate of $0.15 by 6.67% [1] Financial Performance Metrics - Organic Billboard Revenues were $310.70 million, slightly below the average estimate of $312.96 million, reflecting a year-over-year decline of 1% [4] - Organic Transit Revenues reached $77.70 million, surpassing the estimated $81.41 million, with a year-over-year increase of 2.6% [4] - Organic Total Revenues were reported at $390.70 million, compared to the average estimate of $394.42 million, showing a year-over-year change of 0.3% [4] - Organic Other Revenues significantly dropped to $2.30 million, well below the estimated $3.67 million, marking an 87.8% year-over-year decline [4] - Billboard Revenues were $310.70 million, slightly below the average estimate of $311.47 million, with a year-over-year decline of 5.5% [4] - Revenues from Transit and other sources were $80 million, compared to the estimated $81.56 million, reflecting a year-over-year increase of 0.4% [4] - Net Earnings Per Share (Diluted) were -$0.14, compared to the average estimate of -$0.11 [4] - Adjusted OIBDA for Billboard was $99 million, exceeding the average estimate of $79.85 million [4] - Adjusted OIBDA for Other was $0.50 million, slightly above the estimated $0.35 million [4] - Adjusted OIBDA for Corporate was -$21.10 million, worse than the average estimate of -$13.91 million [4] Stock Performance - Outfront Media's shares returned +3.6% over the past month, while the Zacks S&P 500 composite increased by +11.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Company Performance - Outfront Media reported quarterly funds from operations (FFO) of $0.14 per share, missing the Zacks Consensus Estimate of $0.15 per share, and matching the FFO of $0.14 per share from a year ago [1] - The quarterly report indicates an FFO surprise of -6.67%, while the previous quarter saw an FFO of $0.69 per share, exceeding expectations by 9.52% [2] - The company posted revenues of $390.7 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.50%, compared to revenues of $408.5 million a year ago [3] Stock Performance - Outfront Media shares have declined approximately 14% since the beginning of the year, contrasting with the S&P 500's decline of -4.3% [4] - The current consensus FFO estimate for the upcoming quarter is $0.51 on revenues of $469.33 million, and for the current fiscal year, it is $1.87 on revenues of $1.83 billion [8] Industry Outlook - The REIT and Equity Trust - Other industry, to which Outfront Media belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges ahead [9] - Empirical research suggests a strong correlation between near-term stock movements and trends in estimate revisions, which could impact Outfront Media's stock performance [6]

Financial Data and Key Metrics Changes - Organic revenues grew slightly, in line with previous guidance, while OIBDA was $64 million and AFFO was $24 million [8][19] - Consolidated adjusted OIBDA totaled about $64 million, a 3% decline versus the prior year, but excluding certain costs, adjusted OIBDA would have increased [18][19] - Total net leverage was 4.8 times, within the target range of four to five times [20] Business Line Data and Key Metrics Changes - Billboard revenues were down 1%, impacted by the exit of a large New York billboard contract, while digital billboard revenues increased by 5.4% [8][9] - Transit revenues grew by 2.6%, with strong growth in New York MTA offset by weakness in other franchises [9][10] - Combined digital revenue performance grew almost 7%, representing nearly 33% of total organic revenues, up from about 31% last year [11] Market Data and Key Metrics Changes - Local revenues were down 3% year-on-year, while national revenues grew by 4%, driven by improved advertising sales efforts [11][12] - The strongest billboard region was identified as the South, while the West, particularly LA, faced challenges [10][44] Company Strategy and Development Direction - The company is focusing on four strategic imperatives: optimizing sales strategies, modernizing workflows, driving new demand from non-out-of-home advertisers, and ensuring operational excellence [7][22] - The management is committed to unlocking significant potential within the company and improving cost efficiencies [7][18] Management's Comments on Operating Environment and Future Outlook - The management expects second quarter revenues to be similar to the first quarter, with billboard revenues flattish to slightly down and transit up low to mid-single digits [22] - Despite economic uncertainties, there are no indications of cancellations or a likely recession, with expectations for mid-single-digit growth in reported 2025 consolidated AFFO [19][22] Other Important Information - The company announced a $0.30 cash dividend payable on June 30 to shareholders of record at the close of business on June 6 [21] - The company plans to exit another large but marginally profitable billboard contract in Los Angeles, which is expected to have a limited impact on adjusted OIBDA and AFFO [15][18] Q&A Session Summary Question: What percentage of ad categories are goods versus services, and which is more resilient in the current environment? - Management noted that most of their categories are services, with some postponements observed in automotive, government, and retail sectors, but no significant reductions [26][28] Question: How is media and entertainment spending trending in LA, and is the exit of the LA contract related to the fire? - Management emphasized the importance of the media and entertainment category in LA and clarified that the exit was not related to fire incidents, focusing instead on profitable contracts [31][33] Question: What is the status of the MTA contracts and the impact of congestion pricing on transit growth? - The MTA contract increased slightly, and while it's hard to trace the impact of congestion pricing, there are indications of higher ridership [35][36] Question: Can you elaborate on potential cost savings or operational efficiencies? - Management clarified that the focus is on demand generation and modernizing the tech stack rather than just efficiency, aiming for a laser-like focus on growth drivers [41][43] Question: Are there differences across geographies in revenue trends aside from exited contracts? - The West has been challenging, while the South and Midwest are performing well, with the East benefiting from strong MTA transit performance [44]