OUTFRONT Media(US:OUT)2025-11-07 21:04Digital Revenue and Displays - For the nine months ended September 30, 2025, total digital revenues reached $450.5 million, with $141.5 million from digital billboards and $309.0 million from digital transit displays [138]. - The company built or converted 77 new digital billboard displays and 1,104 digital transit displays during the nine months ended September 30, 2025 [137]. - Digital billboard displays generate approximately four to five times more revenue per display compared to traditional static billboard displays [134]. - The company has approximately 31,358 digital displays as of September 30, 2025, including 6,499 reserved for transit agency use [138]. Financial Performance - Total revenues for the three months ended September 30, 2025, increased by $15.6 million, or 3%, to $467.5 million compared to $451.9 million in the same period of 2024 [148]. - Organic revenues for the nine months ended September 30, 2025, increased by $15.6 million, or 1%, totaling $1,318.4 million, while total revenues decreased by $19.3 million, or 1% [148]. - Operating income for the three months ended September 30, 2025, rose to $89.9 million, a 26% increase from $71.3 million in the prior year [148]. - Adjusted OIBDA for the three months ended September 30, 2025, was $137.2 million, reflecting a 17% increase from $117.1 million in the same period of 2024 [148]. - Net income attributable to OUTFRONT Media Inc. for the three months ended September 30, 2025, increased by 48% to $51.3 million compared to $34.6 million in the prior year [148]. - Funds from operations (FFO) attributable to OUTFRONT Media Inc. for the three months ended September 30, 2025, increased by 21% to $99.7 million from $82.7 million in the same period of 2024 [148]. Expenses and Cost Management - Total operating expenses for the three months ended September 30, 2025, decreased by 1% to $377.6 million compared to $380.6 million in the prior year [150]. - Billboard property lease expenses decreased by $8.8 million, or 7%, in the three months ended September 30, 2025, compared to the same prior-year period [152]. - SG&A expenses decreased by $3.5 million, or 3%, in the three months ended September 30, 2025, primarily due to lower compensation-related expenses [156]. - Interest expense, net, for the three months ended September 30, 2025, was $37.0 million, slightly down from $37.1 million in the same prior-year period [162]. Segment Performance - Billboard segment revenues decreased by $7.8 million, or 2%, in the three months ended September 30, 2025, compared to the same prior-year period [184]. - Transit segment revenues increased by $21.5 million, or 24%, in the three months ended September 30, 2025, compared to the same prior-year period [192]. - Adjusted OIBDA for the Billboard segment increased by $2.9 million, or 2%, in the three months ended September 30, 2025, with an adjusted OIBDA margin of 39.5% [188]. - Operating income for the Billboard segment was $103.0 million for the three months ended September 30, 2025, a 2% increase from $100.5 million in the same period of 2024 [183]. - Transit segment Adjusted OIBDA was $15.7 million in Q3 2025, compared to an Adjusted OIBDA loss of $2.9 million in Q3 2024 [197]. Capital Expenditures and Investments - Total capital expenditures increased by $4.1 million, or 7%, to $64.0 million for the nine months ended September 30, 2025, driven by growth in digital displays and maintenance spending [238]. - For the full year of 2025, capital expenditures are expected to be approximately $85.0 million, primarily for new digital displays and office renovations [239]. Debt and Financing - As of September 30, 2025, total debt, net, was $2,582.3 million, with a weighted average cost of debt of 5.4% [216]. - The company entered into a credit agreement on September 24, 2025, providing for a $500.0 million revolving credit facility and a $500.0 million term loan [216]. - The company maintained a Consolidated Total Leverage Ratio of 4.8 to 1.0 and a Consolidated Net Secured Leverage Ratio of 1.6 to 1.0 as of September 30, 2025, in compliance with debt covenants [226][227]. Cash Flow and Working Capital - Net cash flow provided by operating activities increased by $14.8 million, or 8%, to $189.5 million for the nine months ended September 30, 2025, compared to $174.7 million in the same period of 2024 [235]. - Cash used by investing activities was $87.3 million in the nine months ended September 30, 2025, a decrease from cash provided by investing activities of $230.7 million in the same prior-year period [236]. - Working capital deficit improved to $105.8 million as of September 30, 2025, from a deficit of $135.0 million as of December 31, 2024 [210]. Corporate Governance and Dividends - A quarterly cash dividend of $0.30 per share was approved, payable on December 31, 2025, to stockholders of record at the close of business on December 5, 2025 [214].