OUTFRONT Media(US:OUT)2025-05-09 20:04PART I Item 1. Financial Statements (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 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 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 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)19223 Notes to Consolidated Financial Statements 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, 20242425 - 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 period28110 - 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 20253895 - 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 awards77 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 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 performance123145 - 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 displays130 Segment Results of Operations 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 - Transit segment revenue increased primarily due to higher yield, partially offset by the impact of new and lost franchise contracts178 Liquidity and Capital Resources 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)6061211 - 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 costs196222 - On May 8, 2025, the board approved a quarterly cash dividend of $0.30 per share71199 Item 3. Quantitative and Qualitative Disclosures About Market Risk 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 Facility234237 - 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 2024232233 Item 4. Controls and Procedures 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 period241 - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls242 PART II Item 1. Legal Proceedings 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 flows246 Item 1A. Risk Factors 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 reported247 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds There were no unregistered sales of equity securities in the quarter - There were no unregistered sales of equity securities in the quarter248 Item 5. Other Information 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 shares251 Item 6. Exhibits This section references the Exhibit Index, listing all documents filed as part of the quarterly report, including certifications and equity award agreements