Outfront Media (OUT) Q1 FFO Matches Estimates, Down Y/Y
Zacks Investment Research | May 03, 2017 10:10PM ET
Outfront Media Inc.’s (NYSE:OUT) first-quarter 2017 adjusted funds from operations (“FFO”) per share of 28 cents came in line with the Zacks Consensus Estimate. The figure, however, came lower than the year-ago quarter tally of 34 cents. Results reflected a weakness in national advertising market, mainly in the automotive category.
Revenues for the quarter came in at $330.6 million, marginally above the Zacks Consensus Estimate of $330.3 million. However, revenues declined 5.1% from the year-ago tally of $348.4 million.
Quarter in Detail
Billboard revenues of $236.0 million in the quarter indicated a decline of 5.8% year over year. Results reflect the disposition of the company's outdoor advertising business in Latin America, decline in average revenue per display (yield) mainly from a reduction in U.S. national advertising, the net effect of new and lost billboards in the period, and dismal performance in Canada. However, the negatives were partly offset by increased proceeds from condemnations and the conversion of static billboards to digital.
Transit and other revenues also decreased 3.5% from the prior-year quarter to $94.6 million. The decline was due to a reduction in U.S. national advertising revenues and the disposition of outdoor business in Latin America, partly mitigated by the net effect of won and lost franchises.
Operating expenses of $191.9 million contracted 4.0% year over year, mainly due to the disposition of Latin America business. However, it was partly offset by elevated expenses related to the company’s sports marketing operating segment.
Operating income during the reported quarter was $26.0 million, up 7.4% from the year-earlier quarter. Adjusted operating income before depreciation and amortization declined 9.0% year over year to $80.2 million.
Net cash flow resulting from operating activities for the three-month period ending Mar 31, 2017 came in at $32.2 million, down from $33.8 million recorded in the comparable period last year.
As of Mar 31, 2017, Outfront Media’s liquidity position comprised cash of $26.3 million, as well as $398.3 million of availability under its $430.0 million revolving credit facility, net of $31.7 million of issued letters of credit against the revolving credit facility.
Our Take
The company’s huge diversity, both industry wise and geographical, efforts to convert from traditional static billboard displays to digital billboard displays and low cost out-of-home platform augur well. However, challenging national advertising market, cut-throat competition and any rise in interest rates remain concerns.
Currently, Outfront Media carries a Zacks Rank #3 (Hold). You can see Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.