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OUTFRONT Media (OUT) Q1 Adjusted FFO Deficit Comes as Expected
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OUTFRONT Media Inc. (OUT - Free Report) delivered first-quarter 2021 adjusted funds from operations (“AFFO”) per share deficit of 17 cents, meeting the Zacks Consensus Estimate. In the prior-year quarter, the company reported AFFO per share of 28 cents.
Revenues were $259.2 million for the first quarter, missing the Zacks Consensus Estimate of $271.3 million. Also, the revenue figure plunged 32.7% year over year.
The company’s first-quarter results reflect a decline in operating expenses. However, a decline in revenues on dwindling demand for its services was a headwind.
Quarter in Detail
Billboard revenues were $223.6 million, indicating a year-over-year fall of 17.5%. The downside resulted from lower average revenues per display (referred to as yield) due to the pandemic’s impact on customer advertising expenditure and overall demand for the company’s services.
Transit and other revenues of $35.6 million slumped 68.9% year over year. The decline was mainly due to the fall in yield because of the pandemic’s impact on customer advertising expenditure and overall demand for the company’s services, and sale of its sports marketing operating segment.
OUTFRONT Media reported an operating loss of $31 million in the first quarter against an operating income of $33.8 million in the prior-year quarter.
Operating expenses of $177.6 million plunged 21% year over year. This mainly resulted from lower transit franchise expenses, decreased posting, maintenance and other expenses, and a drop in billboard property lease expenses.
Balance Sheet
Net cash flow used for operating activities for the quarter ended Mar 31, 2021, was $10.8 million against net cash flow of $14.9 million provided by operating activities for the quarter ended Mar 31, 2020.
As of Dec 31, 2021, OUTFRONT Media’s liquidity position comprised of unrestricted cash of $560 million and $497.9 million of availability under its $500-million revolving credit facility, net of $2.1 million of issued letters of credit. In the first quarter, the company sold no share under its at-the-market (“ATM”) equity program and had $232.5 million available under its ATM program at the quarter end.
PS Business Parks, Inc. reported first-quarter 2021 core FFO per share of $1.67, in line with the Zacks Consensus Estimate. However, the reported figure decreased 2.9% year over year.
Boston Properties Inc.’s (BXP - Free Report) first-quarter 2021 FFO per share of $1.56 beat the Zacks Consensus Estimate of $1.55. The quarterly figure also surpassed the mid-point of the company’s guidance by a cent, highlighting better-than-projected portfolio performance and higher fee income.
Highwoods Properties, Inc.’s (HIW - Free Report) first-quarter 2021 FFO per share of 91 cents surpassed the Zacks Consensus Estimate of 87 cents. However, FFO per share declined 2.2% from 91 cents recorded in the year-ago period.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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OUTFRONT Media (OUT) Q1 Adjusted FFO Deficit Comes as Expected
OUTFRONT Media Inc. (OUT - Free Report) delivered first-quarter 2021 adjusted funds from operations (“AFFO”) per share deficit of 17 cents, meeting the Zacks Consensus Estimate. In the prior-year quarter, the company reported AFFO per share of 28 cents.
Revenues were $259.2 million for the first quarter, missing the Zacks Consensus Estimate of $271.3 million. Also, the revenue figure plunged 32.7% year over year.
The company’s first-quarter results reflect a decline in operating expenses. However, a decline in revenues on dwindling demand for its services was a headwind.
Quarter in Detail
Billboard revenues were $223.6 million, indicating a year-over-year fall of 17.5%. The downside resulted from lower average revenues per display (referred to as yield) due to the pandemic’s impact on customer advertising expenditure and overall demand for the company’s services.
Transit and other revenues of $35.6 million slumped 68.9% year over year. The decline was mainly due to the fall in yield because of the pandemic’s impact on customer advertising expenditure and overall demand for the company’s services, and sale of its sports marketing operating segment.
OUTFRONT Media reported an operating loss of $31 million in the first quarter against an operating income of $33.8 million in the prior-year quarter.
Operating expenses of $177.6 million plunged 21% year over year. This mainly resulted from lower transit franchise expenses, decreased posting, maintenance and other expenses, and a drop in billboard property lease expenses.
Balance Sheet
Net cash flow used for operating activities for the quarter ended Mar 31, 2021, was $10.8 million against net cash flow of $14.9 million provided by operating activities for the quarter ended Mar 31, 2020.
As of Dec 31, 2021, OUTFRONT Media’s liquidity position comprised of unrestricted cash of $560 million and $497.9 million of availability under its $500-million revolving credit facility, net of $2.1 million of issued letters of credit. In the first quarter, the company sold no share under its at-the-market (“ATM”) equity program and had $232.5 million available under its ATM program at the quarter end.
Currently, OUTFRONT Media carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
OUTFRONT Media Inc. Price, Consensus and EPS Surprise
OUTFRONT Media Inc. price-consensus-eps-surprise-chart | OUTFRONT Media Inc. Quote
Performance of Other REITs
PS Business Parks, Inc. reported first-quarter 2021 core FFO per share of $1.67, in line with the Zacks Consensus Estimate. However, the reported figure decreased 2.9% year over year.
Boston Properties Inc.’s (BXP - Free Report) first-quarter 2021 FFO per share of $1.56 beat the Zacks Consensus Estimate of $1.55. The quarterly figure also surpassed the mid-point of the company’s guidance by a cent, highlighting better-than-projected portfolio performance and higher fee income.
Highwoods Properties, Inc.’s (HIW - Free Report) first-quarter 2021 FFO per share of 91 cents surpassed the Zacks Consensus Estimate of 87 cents. However, FFO per share declined 2.2% from 91 cents recorded in the year-ago period.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>