2018 First Quarter May 2, 2018
Safe Harbor Disclaimer Cautionary Statement Regarding Forward-Looking Statements We have made statements in this document that are forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “could,” “would,” “may,” “might,” “will,” “should,” “seeks,” “likely,” “intends,” “plans,” “projects,” “predicts,” “estimates,” “forecast” or “anticipates” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions related to our capital resources, portfolio performance and results of operations. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and may not be able to be realized. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: declines in advertising and general economic conditions; competition; government regulation; our inability to increase the number of digital advertising displays in our portfolio; our ability to implement our digital display platform and deploy digital advertising displays to our transit franchise partners; taxes, fees and registration requirements; our ability to obtain and renew key municipal contracts on favorable terms; decreased government compensation for the removal of lawful billboards; content-based restrictions on outdoor advertising; environmental, health and safety laws and regulations; seasonal variations; acquisitions and other strategic transactions that we may pursue could have a negative effect on our results of operations; dependence on our management team and other key employees; the ability of our board of directors to cause us to issue additional shares of stock without stockholder approval; certain provisions of Maryland law may limit the ability of a third party to acquire control of us; our rights and the rights of our stockholders to take action against our directors and officers are limited; our substantial indebtedness; restrictions in the agreements governing our indebtedness; incurrence of additional debt; interest rate risk exposure from our variable-rate indebtedness; our ability to generate cash to service our indebtedness; cash available for distributions; hedging transactions; diverse risks in our Canadian business; a breach of our security measures; changes in regulations and consumer concerns regarding privacy, information security and data, or any failure or perceived failure to comply with these regulations or our internal policies; asset impairment charges for goodwill; our failure to remain qualified to be taxed as a real estate investment trust (“REIT”); REIT distribution requirements; availability of external sources of capital; we may face other tax liabilities even if we remain qualified to be taxed as a REIT; complying with REIT requirements may cause us to liquidate investments or forgo otherwise attractive opportunities; our ability to contribute certain contracts to a taxable REIT subsidiary (“TRS”); our planned use of TRSs may cause us to fail to remain qualified to be taxed as a REIT; REIT ownership limits; complying with REIT requirements may limit our ability to hedge effectively; failure to meet the REIT income tests as a result of receiving non- qualifying income; even if we remain qualified to be taxed as a REIT, and we sell assets, we could be subject to tax on any unrealized net built-in gains in the assets held before electing to be treated as a REIT; the Internal Revenue Service (the “IRS”) may deem the gains from sales of our outdoor advertising assets to be subject to a 100% prohibited transaction tax; establishing operating partnerships as part of our REIT structure; U.S. federal tax reform legislation could affect us in ways that are difficult to anticipate; and other factors described in our filings with the Securities and Exchange Commission (the "SEC"), including but not limited to the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on February 28, 2018. All forward-looking statements in this document apply as of the date of this document or as of the date they were made and, except as required by applicable law, we disclaim any obligation to publicly update or revise any forward- looking statement to reflect changes in underlying assumptions or factors of new information, data or methods, future events or other changes. Non-GAAP Financial Measures This presentation includes certain non ‐ GAAP financial measures intended to supplement, not substitute for, comparable GAAP financial measures. Reconciliations of non ‐ GAAP financial measures to GAAP financial measures are provided in the Appendix of this presentation. Prior period presentation conforms to current period reporting classifications. Numbers in this presentation may not sum due to rounding. 2
Jeremy Male CEO 3
Key Highlights – 1Q18 Reported revenue +2.2%, organic +0.8% U.S. Media billboard returned to growth, including strong digital U.S. Media transit up, with strong digital performance in Boston Local advertising remains very healthy, National is improving Adj. OIBDA +1.2% AFFO -1.0% Won new San Francisco transit contract 4
Donald Shassian EVP & CFO 5
Summary THREE MONTHS Ended March 31, 2018 2017 % Chg Rev - reported $337.9 2.2% $330.6 Rev - organic $334.0 0.8% $331.2 Adj. OIBDA $81.2 1.2% $80.2 Net Income $9.1 264.0% $2.5 $0.06 $0.02 per share FFO $45.3 3.2% $43.9 $0.33 $0.32 per share AFFO $38.1 (1.0%) $38.5 $0.27 $0.28 per share Notes: $ Millions unless per share or otherwise stated. Numbers may not sum due to rounding. Per share amounts based on weighted average share for diluted earnings per share. See Appendix for non-GAAP reconciliations. In accordance with GAAP, net income per common share excludes $0.7 million for the three months ended March 31, 2018 for distributions to holders of Class A equity interests of a subsidiary. 6
Revenues 1Q18 Total: • Reported +2.2% Billboard Transit & Other • Organic+0.8% Total Revenues U.S. Media $401.3 $396.2 $392.4 • Reported +0.9% $337 .9 $330.6 • Organic: 122.0 124.9 120.0 Total +0.9% 94.6 98.6 Billboard +0.5% Transit & other +2.0% 276.4 Other 274.2 272.4 236.0 239.3 • Reported +19.1% (including Canada acquired digital 1Q18 1Q17 2Q17 3Q17 4Q17 1Q18 billboards in 2Q17) • Total organic flat Notes: $ Millions unless otherwise stated. See Appendix for Non-GAAP reconciliations. 7
Expenses Total expenses 1 +2.5% Up 1.8% when 1Q17 1Q18 considering: Three Months % Chg $214.7 $221.0 U.S. Media • Sports marketing 24.6 28.8 Other accounting change (a)(b) 11.1 6.9 Corporate • Canada billboard (c)(d) 250.4 256.7 Total acquisition 2.5% (1.8) (a) Sports Marketing • One-time: cost (1.2) (b) Canada Acq. consultant and credit (0.6) agreement amendment (c) Cost Consultant (0.6) (d) Credit amendment Strategic business $249.2 $253.7 1.8% development costs: • Increased $2.9M to $5.3M, primarily in U.S. Media related to our technology platform Notes: $ Millions unless per share or otherwise stated. Numbers may not sum due to rounding. 1) Excludes stock-based compensation expense for the three months March 31, 2018 and March 31, 2017 of $5.0 million and $5.4 million, respectively. 8
Adjusted OIBDA 1Q18 +1.2% year/year • Higher total revenue • Lower transit expense $122.0 $121.1 $120.8 • Other expense increases 1Q18 Adj. OIBDA margin 24.0% vs. $81.2 $80.2 24.3% prior year 1Q17 2Q17 3Q17 4Q17 1Q18 1Q18 Notes: $ Millions unless otherwise stated. See Appendix for Non-GAAP reconciliations. 9
Capital Expenditures 1Q18 Capex as % of revenues: • Maintenance: 0.9% Total • Growth: 4.1% $75.0 $75.0 Growth • Total: 5.0% Maintenance Digital billboards: • 1Q18 builds & conversions: U.S. 14, 50.0 55.0 Canada 10 • Totals: U.S. 847 , Canada 168 Does not include $16.8 $8.6M of MTA 25.0 20.0 13.7 equipment deployment costs 2018 Guidance 1Q18 Low High in 1Q18 Notes: $ Millions unless otherwise stated. 10
NY MTA Update Site selection and electrical design work underway Initial deployments will occur later this Spring Display deployment will accelerate later this summer 11
Recommend
More recommend
