OUTFRONT Media Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>OUTFRONT Media Inc. has filed its Q1 2024 10-Q report, detailing financial performance and operational information.</b>

AI Summary

OUTFRONT Media Inc. (OUT) filed a Quarterly Report (10-Q) with the SEC on May 3, 2024. OUTFRONT Media Inc. filed its quarterly report on Form 10-Q for the period ended March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. The company's principal executive offices are located at 90 Park Avenue, 9th Floor, New York, NY 10016. OUTFRONT Media Inc. was formerly known as CBS OUTDOOR AMERICAS INC. until June 21, 2013. The filing includes references to various accounting standards and financial statement components, such as Operating Lease Right-of-Use Asset and Liability.

Why It Matters

For investors and stakeholders tracking OUTFRONT Media Inc., this filing contains several important signals. This 10-Q filing provides investors with the latest financial data and operational updates for OUTFRONT Media Inc., crucial for assessing the company's current health and future prospects. Understanding the details within this report, including specific financial figures and disclosures, is essential for making informed investment decisions regarding OUTFRONT Media Inc.

Risk Assessment

Risk Level: low — OUTFRONT Media Inc. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any immediate red flags or significant negative disclosures, indicating a routine update.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand the company's performance trends and outlook.

Key Numbers

• 2024-03-31 — Reporting Period End Date (The 10-Q report is for the period ended March 31, 2024.)
• 2024-05-03 — Filing Date (The 10-Q report was filed on May 3, 2024.)
• 2013-06-21 — Name Change Date (Date when CBS OUTDOOR AMERICAS INC. changed its name to OUTFRONT Media Inc.)

Key Players & Entities

• OUTFRONT Media Inc. (company) — Filer of the 10-Q report.
• CBS OUTDOOR AMERICAS INC. (company) — Former name of OUTFRONT Media Inc.
• New York (location) — City where the company's principal executive offices are located.

FAQ

Industry Context

OUTFRONT Media Inc. operates in the out-of-home advertising industry, which includes billboards, transit advertising, and other forms of public space advertising.

Regulatory Implications

Companies like OUTFRONT Media Inc. are subject to SEC regulations for financial reporting, including the timely filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Analyze the revenue and expense details for the first quarter of 2024.
2. Examine any changes in the company's debt structure or equity.
3. Review disclosures related to operating leases and their impact on the balance sheet.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-03: Filing Date — Date the 10-Q was officially submitted to the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides investors with a timely update on the company's financial condition between annual reports.)

Operating Lease Right-of-Use Asset

An asset representing the right to use an underlying asset for the lease term. (Indicates a significant lease commitment impacting the company's balance sheet.)

Operating Lease Liability

A liability representing the obligation to make lease payments over the lease term. (Shows the company's future payment obligations related to its leases.)

Year-Over-Year Comparison

This filing represents the first quarterly report for OUTFRONT Media Inc. in the fiscal year 2024, providing an update compared to the previous year's Q1 results and the most recent annual report.

Key Financial Figures

• $0 — nge on which registered Common Stock, $0.01, par value OUT New York Stock Excha

Filing Documents

• out-20240331.htm (10-Q) — 1537KB
• a311section302mar312024.htm (EX-31.1) — 11KB
• a312section302mar312024.htm (EX-31.2) — 11KB
• a321section906mar312024.htm (EX-32.1) — 5KB
• a322section906mar312024.htm (EX-32.2) — 6KB
• 0001579877-24-000047.txt (&nbsp;) — 8181KB
• out-20240331.xsd (EX-101.SCH) — 56KB
• out-20240331_cal.xml (EX-101.CAL) — 65KB
• out-20240331_def.xml (EX-101.DEF) — 335KB
• out-20240331_lab.xml (EX-101.LAB) — 703KB
• out-20240331_pre.xml (EX-101.PRE) — 560KB
• out-20240331_htm.xml (XML) — 1019KB

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 3 Consolidated Statements of Financial Position as of March 31, 2024, and December 31, 2023 3 Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 4 Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2024 and 2023 5 Consolidated Statements of Equity for the three months ended March 31, 2024 and 2023 6 Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 44

Controls and Procedures

Item 4. Controls and Procedures 45 PART II 46

Legal Proceedings

Item 1. Legal Proceedings 46

Risk Factors

Item 1A. Risk Factors 46

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 46

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 46

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 46

Other Information

Item 5. Other Information 46

Exhibits

Item 6. Exhibits 46

SIGNATURES

SIGNATURES 48 Table of Contents PART I

Financial Statements

Item 1. Financial Statements. OUTFRONT Media Inc. Consolidated Statements of Financial Position (Unaudited) As of (in millions) March 31, 2024 December 31, 2023 Assets: Current assets: Cash and cash equivalents $ 42.4 $ 36.0 Receivables, less allowance ($ 17.6 in 2024 and $ 17.2 in 2023) 251.7 287.6 Prepaid lease and transit franchise costs 3.3 4.5 Other prepaid expenses 15.8 19.2 Assets held for sale (Note 11) 31.8 34.6 Other current assets 14.4 15.7 Total current assets 359.4 397.6 Property and equipment, net (Note 3) 657.1 657.8 Goodwill 2,006.4 2,006.4 Intangible assets (Note 4) 682.9 695.4 Operating lease assets (Note 5) 1,577.6 1,591.9 Assets held for sale (Note 11) 211.1 214.3 Other assets 19.5 19.5 Total assets $ 5,514.0 $ 5,582.9 Liabilities: Current liabilities: Accounts payable $ 54.4 $ 55.5 Accrued compensation 32.2 41.4 Accrued interest 23.2 34.2 Accrued lease and franchise costs 59.2 80.0 Other accrued expenses 56.2 56.2 Deferred revenues 52.4 37.7 Short-term debt (Note 8) 120.0 65.0 Short-term operating lease liabilities (Note 5) 185.6 180.9 Liabilities held for sale (Note 11) 21.4 24.1 Other current liabilities 17.6 18.0 Total current liabilities 622.2 593.0 Long-term debt, net (Note 8) 2,677.8 2,676.5 Asset retirement obligation (Note 6) 33.3 33.0 Operating lease liabilities (Note 5) 1,400.8 1,417.4 Liabilities held for sale (Note 11) 90.8 90.9 Other liabilities 41.9 42.0 Total liabilities 4,866.8 4,852.8 Commitments and contingencies (Note 16) Preferred stock (2024 - 50.0 shares authorized, and 0.1 shares of Series A Preferred Stock issued and outstanding; 2023 - 50.0 shares authorized, and 0.1 shares of Series A Preferred Stock issued and outstanding) (Note 9) 119.8 119.8 Stockholders' equity (Note 9): Common stock (2024 - 450.0 shares authorized, and 165.9 shares issued and outstanding; 2023 - 450.0 shares authorized, and 165.1 issued and outstanding) 1.7 1.7 Additional paid-in capital 2,431.

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Note 1. Description of Business and Basis of Presentation Description of Business OUTFRONT Media Inc. (the "Company") and its subsidiaries (collectively, "we," "us" or "our") is a real estate investment trust ("REIT"), which provides advertising space ("displays") on out-of-home advertising structures and sites in the United States (the "U.S.") and Canada. Our inventory consists of billboard displays, which are primarily located on the most heavily traveled highways and roadways in top Nielsen Designated Market Areas ("DMAs"), and transit advertising displays operated under exclusive multi-year contracts with municipalities in large cities across the U.S. and Canada. In total, we have displays in all of the 25 largest markets in the U.S. and approximately 150 markets across the U.S. and Canada. We currently manage our operations through two operating segments—U.S. Billboard and Transit, which is included in our U.S. Media reportable segment, and International. On October 22, 2023, the Company, Outfront Canada HoldCo 2 LLC, a wholly-owned subsidiary of the Company, and Outfront Canada Sub LLC, a wholly-owned subsidiary of the Company (together, the "Selling Subsidiaries"), entered into a Share Purchase Agreement (the "Share Purchase Agreement") with Bell Media Inc. (the "Buyer"), relating to the sale of the Company's outdoor advertising business in Canada (the "Canadian Business"). Pursuant to the Share Purchase Agreement, the Selling Subsidiaries agreed to sell all of its (and its affiliates) equity interests in Outdoor Systems Americas ULC and its subsidiaries (the "Transaction"), which hold all of the assets of the Canadian Business, to the Buyer, for C$ 410.0 million in cash, payable on the date of the consummation of the Transaction (the "Closing"). (See Note 11. Acquisitions and Dispositions : Dispositions : Canadian Business .) Basis of Presentation and Use of Estimates The accompanying unaudi

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. In December 2023, the FASB issued guidance to enhance the transparency and decision usefulness of income tax disclosures primarily related to rate reconciliation and income taxes paid information. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. Retrospective application is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. Note 3. Property and Equipment, Net The table below presents the balances of major classes of assets and accumulated depreciation. As of (in millions) Estimated Useful Lives March 31, 2024 December 31, 2023 Land $ 110.2 $ 110.1 Buildings 15 to 35 years 46.2 42.7 Advertising structures 3 to 20 years 1,728.9 1,716.2 Furniture, equipment and other 3 to 10 years 176.4 173.9 Construction in progress 34.8 39.5 2,096.5 2,082.4 Less: Accumulated depreciation 1,439.4 1,424.6 Property and equipment, net $ 657.1 $ 657.8 Depreciation expense was $ 18.5 million in the three months ended March 31, 2024, and $ 20.1 million in the three months ended March 31, 2023. Note 4. Intangible Assets Our identifiable intangible assets primarily consist of acquired permits and leasehold agreements, and franchise agreements, which grant us the right to operate out-of-home structures in specified locations and the right to provide advertising space on railroad and municipal transit properties. Identifiable intangible assets are amortized on a straight-line basis over their estimated useful life, which is the respective life of the agreement that in some cases includes historical experience of renewals. Our identifiable intangible assets consist of the following: (in millions) Gross Accumulated Amortization Impairment Net As of March 31, 2024: Per

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) All of our intangible assets, except goodwill, are subject to amortization. Amortization expense was $ 17.6 million in the three months ended March 31, 2024, and $ 21.8 million in the three months ended March 31, 2023. As a result of our continued expectation of negative aggregate cash flows related to our MTA asset group, we recorded an additional impairment charge of $ 9.1 million in the first quarter of 2024, representing additional MTA equipment deployment cost spending during the quarter. Note 5. Leases Lessee The following table presents our operating lease assets and liabilities: As of (in millions, except years and percentages) March 31, 2024 December 31, 2023 Operating lease assets $ 1,577.6 $ 1,591.9 Short-term operating lease liabilities 185.6 180.9 Non-current operating lease liabilities 1,400.8 1,417.4 Weighted-average remaining lease term 10.9 years 10.9 years Weighted-average discount rate 6.3 % 6.2 % The components of our lease expenses were as follows: Three Months Ended March 31, (in millions) 2024 2023 Operating expenses (a) $ 121.2 $ 120.9 Selling, general and administrative expenses 3.9 3.1 Variable costs (a) 28.6 32.5 Cash paid for operating leases (b) 142.5 137.7 Leased assets obtained in exchange for new operating lease liabilities 60.5 172.1 (a) Includes an out-of-period adjustment of $ 5.2 million recorded in the first quarter of 2023 related to variable billboard property lease expenses (see Note 1. Description of Business and Basis of Presentation ). (b) Includes amounts related to Canada. (See Note 11. Acquisitions and Dispositions : Dispositions : Canadian Business .) For each of the three months ended March 31, 2024 and 2023, sublease income related to office properties was immaterial. Lessor We recorded rental income of $ 304.1 million for the three months ended March 31, 2024, and $ 298.4 million for the three months ended March 31, 202

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Note 6. Asset Retirement Obligation The following table sets forth the change in the asset retirement obligations associated with our advertising structures located on leased properties. The obligation is calculated based on the assumption that all of our advertising structures will be removed within the next 50 years. The estimated annual costs to dismantle and remove the structures upon the termination or non-renewal of our leases are consistent with our historical experience. (in millions) As of December 31, 2023 $ 33.0 Accretion expense 0.8 Additions 0.1 Liabilities settled ( 0.5 ) Foreign currency translation adjustments ( 0.1 ) As of March 31, 2024 $ 33.3 Note 7. Related Party Transactions On January 18, 2023, we entered into a transaction with an affiliate of Providence Equity Partners L.L.C. (the "Providence Affiliate") in connection with the Providence Affiliate's purchase of a lease for certain outdoor advertising assets (the "Assets") from a third-party seller. Pursuant to an agreement between us and the Providence Affiliate (the "Billboard Agreement"), we agreed to exclusively market, license and make advertising space available on the Assets to third-party advertisers for a term of up to ten years (the "Billboard Transaction"). In return, we will retain all revenues from the sale of advertising with respect to the Assets less the following payments to the Providence Affiliate or its payment designee, as applicable: (i) a minimum annual guarantee payment paid to the Providence Affiliate's payment designee that increases from approximately $ 1.8 million to $ 3.5 million during the term of the Billboard Agreement; (ii) a minimum annual guarantee payment paid to the Providence Affiliate that increases from $ 8.5 million to $ 12.0 million by year six and adjusted for inflation thereafter through year ten; (iii) a percentage revenue share payment on gross revenues generated above $ 22.0 m

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Note 8. Debt Debt, net, consists of the following: As of (in millions, except percentages) March 31, 2024 December 31, 2023 Short-term debt: AR Facility $ 120.0 $ 65.0 Total short-term debt 120.0 65.0 Long-term debt: Term loan, due 2026 599.0 598.9 Senior secured notes: 7.375 % senior secured notes, due 2031 450.0 450.0 Senior unsecured notes: 5.000 % senior unsecured notes, due 2027 650.0 650.0 4.250 % senior unsecured notes, due 2029 500.0 500.0 4.625 % senior unsecured notes, due 2030 500.0 500.0 Total senior unsecured notes 1,650.0 1,650.0 Debt issuance costs ( 21.2 ) ( 22.4 ) Total long-term debt, net 2,677.8 2,676.5 Total debt, net $ 2,797.8 $ 2,741.5 Weighted average cost of debt 5.7 % 5.7 % Term Loan The interest rate on the term loan due in 2026 (the "Term Loan") was 7.1 % per annum as of March 31, 2024. As of March 31, 2024, a discount of $ 1.0 million on the Term Loan remains unamortized. The discount is being amortized through Interest expense, net , on the Consolidated Statement of Operations. Revolving Credit Facility We also have a $ 500.0 million revolving credit facility, which matures in 2028 (the "Revolving Credit Facility," together with the Term Loan, the "Senior Credit Facilities"). As of March 31, 2024, there were no outstanding borrowings under the Revolving Credit Facility. The commitment fee based on the amount of unused commitments under the Revolving Credit Facility was $ 0.5 million in the three months ended March 31, 2024, and $ 0.4 million in the three months ended March 31, 2023. As of March 31, 2024, we had issued letters of credit totaling approximately $ 6.4 million against the letter of credit facility sublimit under the Revolving Credit Facility. 13 Table of Contents OUTFRONT Media Inc. Notes to Consolid

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