“This is a great time for out of home and a great time for OUTFRONT” was h0w OUTFRONT CEO Jeremy Male summarized 3rd quarter 2021 performance.  Here are the highlights from Outfront’s 3rd quarter earning release, earnings presentation and conference call.

• OUTFRONT revenue grew 41% to $399 million.  Billboard revenues grew 32%.  Transit revenues grew 95%. CEO Jeremy Male expects revenue growth to be in the “low thirties” in the fourth quarter.  The company’s average US billboard yield increased by 34% to $2,464 during the third quarter of 2021.

• Cashflow or adjusted OBIDA increased 82% to $108 million based on increased revenues and expense controls.
• Capital expenditures increased from $10 million in the 3rd quarter of 2020 to $15.7 million in the third quarter of 2021.  Maintenance accounted for $11 million of the amount.  The company added 34 new digital billboards during the quarter but supply chain issues hindered digital billboard conversions.
• The company has spent $410 million to deploy a total of 7,570 station displays and 1,610 in car displays in the MTA system.  MTA development costs are recorded separately from capital expenditures.  It’s still early days for the contract which calls for OUTFRONT to install nearly 50,000 digital displays.;

• Leverage was 6.6 times at the end of the third quarter 2021 down from 7.9 times at the end of the second quarter.

CFO Matt Siegel on supply chain issues

We think most of our screens are somewhere on the ocean…I’m guessing we’ll be caught up midway through next year.

Jeremy Male on acquisitions

We’ve spent $55 million so far this year.  We’ve got an active pipeline.  We’re keen to add…There seems to be a lot of activity.  There are a number of private equity institution chasing assets…I think that is driving some sellers to come forward…We feel good right now that the pricing right now is pricing that sellers will wish to move their assets.

OUTFRONT stock ended the day up 0.30% versus the S&P 500 up 0.42%, Lamar down 1.4% and Clear Channel Outdoor down 5.9%.

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