Outfront Media Inc. (NYSE:OUT) Q3 2018 Earnings Conference Call Transcript

Nov 05, 2018 • 04:30 pm ET


Outfront Media Inc. (NYSE:OUT) Q3 2018 Earnings Conference Call Transcript


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Good day, and welcome to the OUTFRONT Media, Inc. Third Quarter 2018 Earnings Call. At this time, I would like to turn the conference over to Mr. Gregory Lundberg. Please go ahead, sir.

Gregory Lundberg

Good afternoon, everyone. Thank you for joining our 2018 Third Quarter Earnings Call. On the call today are Jeremy Male, Chairman and Chief Executive Officer; and Matthew Siegel, Executive Vice President and Chief Financial Officer.

After a discussion of our financial results, we'll open up the lines for a question-and-answer session. Our comments today will refer to the earnings release and the slide presentation that you can find in the Investor Relations section of our website, outfrontmedia.com. After today's call is concluded, an audio archive will be there as well. This conference call may include forward-looking statements. Relevant factors that could cause actual results to differ materially from these forward-looking statements are listed in our earnings materials and in our SEC filings, including our 2017 Form 10-K.

We will refer to certain non-GAAP financial measures on this call. Any references to OIBDA made today will be on an adjusted basis, and reconciliations of OIBDA and other non-GAAP financial measures are in the appendix of the slide presentation, the earnings release and on our website.

And with that, I will now turn the call over to Jeremy.

Jeremy Male

Thanks, Greg, and good afternoon, everyone. We are pleased you could join us today to review our third quarter and discuss our outlook for the balance of the year. Third quarter total revenues increased 5.6% on a reported basis. It was a very satisfying quarter. We grew revenues across the board, Billboard, transit, local, national, U.S. Media and Other. This helped drive a strong flow through to our profitability with adjusted OIBDA up 7% and AFFO up 10.5%.

Let's drill into the revenues on Slide 4. Total revenues were up over 5% on both a reported and organic basis. The main engine of this was strength in our U.S. Media segment, while we had higher percentage growth in Canada. Looking more closely at U.S. Media on Slide 5, we grew 4.6% in total. This was led by Billboard, which was up 6.4%. After being down last quarter, transit swung back to growth, and while the growth was slight, we see the forward trajectory improving sharply from here with strength in all of our key markets.

Slide 6 gives you a different view of the U.S. Media growth, this time split between revenues from local and national advertisers. I'd like to mention here that local has been powering our business very consistently every quarter for some time and represented 54% of our U.S. Media revenues in the quarter. Local was up over 8% this quarter and is up 5% year-to-date. National returned to growth this quarter, and we are seeing good things in the fourth quarter, which I'll address later on this call.

Lastly, on revenues, please turn to Slide 7. We saw strong double-digit growth in our Other revenues on both a