Outfront Revenues Up 53% in 2Q 21

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Outfront organic revenues grew 53% in the second quarter of 2021.  Here are the results from the OUTFRONT 2Q 21 earning release, Outfront 2Q 21 earnings deck and conference call.

  • Revenue grew by 53% to $341 million in the second quarter of 2021. Local revenues increased 51%.  More encouragingly national revenues increased 50%.  National revenues decreased the most during covid and have been the slowest to come back to the market.
  • Adjusted cashflow (operating income before depreciation and amortization) grew 355% to $70 million in the second quarter of 2021.
  • OUTFRONT’s average billboard yield increased from $1,462 during the second quarter of 2020 to $2,236 during the second quarter of 2021.

 

  • OUTFRONT spent an additional $21 million on MTA deployment costs during the second quarter 0f 2021, bringing the total deployment costs to date to $390 million. In addition the company spend $27 million on tuck-in acquisitions.
  • OUTFRONT is resuming a dividend of $0.10/share.  The dividend was suspended in May 2020 due to covid.

OUTFRONT CEO Jeremy Male is bullish on the third quarter:

We expect our total revenue to be up in the mid-possibly-high-thirty percent range in the third quarter…our US billboard revenues will be at or above their 2019 levels which is a much quicker recovery than we anticipated.  Regarding transit we expect third quarter growth of more than 70% and believe ridership recovery will be a significant tailwind for some time…

OUTFRONT CFO Matt Siegel on digital billboard supply chain issues

We expect 150-200 new digitals this year…We recognize supply chain issues.  We think we have enough signage on order and in inventory that we can reach those numbers…there are delays in getting container space overseas.

Insider’s take: Nice to see the revenue rebound.  OUTFRONT’s decision to resume a common stock dividend is a signal that management thinks the company has put covid behind it.  OUTFRONT finished the day up 4.21%, Clear Channel Outdoor up 2.5%, Lamar up 2.2% and the S&P 500 up 0.6%.

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