OUTFRONT Media Inc. Files Q3 2024 10-Q Report

TL;DR

**OUTFRONT Media Q3 10-Q filed. Check financials.**

AI Summary

OUTFRONT Media Inc. filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and operational status. Key financial data and disclosures relevant to investors are presented in this report.

Why It Matters

This 10-Q filing provides investors with a detailed look at OUTFRONT Media's financial health and operational performance for the third quarter of 2024, crucial for investment decisions.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks indicated.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the fiscal quarter covered by the report.)
• 2024-11-12 — Filing Date (The date the 10-Q was officially submitted to the SEC.)
• 2023-12-31 — Previous Year End Date (Provides a reference point for year-over-year comparisons.)

Key Players & Entities

• OUTFRONT Media Inc. (company) — Filer of the 10-Q report
• 20240930 (date) — End of the reporting period
• 20241112 (date) — Filing date of the report
• 90 PARK AVENUE, NEW YORK, NY 10016 (address) — Company's business and mailing address
• CBS OUTDOOR AMERICAS INC. (company) — Former company name

FAQ

Key Financial Figures

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

Filing Documents

• out-20240930.htm (10-Q) — 3362KB
• a311section302sept302024.htm (EX-31.1) — 11KB
• a312section302sept302024.htm (EX-31.2) — 11KB
• a321section906sept302024.htm (EX-32.1) — 5KB
• a322section906sept302024.htm (EX-32.2) — 6KB
• 0001579877-24-000091.txt ( ) — 16108KB
• out-20240930.xsd (EX-101.SCH) — 61KB
• out-20240930_cal.xml (EX-101.CAL) — 70KB
• out-20240930_def.xml (EX-101.DEF) — 383KB
• out-20240930_lab.xml (EX-101.LAB) — 735KB
• out-20240930_pre.xml (EX-101.PRE) — 627KB
• out-20240930_htm.xml (XML) — 3925KB

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 3 Consolidated Statements of Financial Position as of September 30, 2024, and December 31, 2023 3 Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 4 Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2024 and 2023 5 Consolidated Statements of Redeemable Noncontrolling Interests, Preferred Stock and Equity for the three and nine months ended September 30, 2024 and 2023 6 Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 10

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 12

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 42

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 64

Controls and Procedures

Item 4. Controls and Procedures 65 PART II 66

Legal Proceedings

Item 1. Legal Proceedings 66

Risk Factors

Item 1A. Risk Factors 66

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 66

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 66

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 66

Other Information

Item 5. Other Information 66

Exhibits

Item 6. Exhibits 66

SIGNATURES

SIGNATURES 68 Table of Contents PART I

Financial Statements

Item 1. Financial Statements. OUTFRONT Media Inc. Consolidated Statements of Financial Position (Unaudited) As of (in millions) September 30, 2024 December 31, 2023 Assets: Current assets: Cash and cash equivalents $ 28.0 $ 36.0 Receivables, less allowance ($ 19.8 in 2024 and $ 17.2 in 2023) 281.2 287.6 Prepaid lease and transit franchise costs 2.7 4.5 Other prepaid expenses 19.2 19.2 Assets held for sale (Note 12) — 34.6 Other current assets 12.8 15.7 Total current assets 343.9 397.6 Property and equipment, net (Note 3) 654.1 657.8 Goodwill 2,006.4 2,006.4 Intangible assets (Note 4) 657.4 695.4 Operating lease assets (Note 5) 1,522.3 1,591.9 Assets held for sale (Note 12) — 214.3 Other assets 19.5 19.5 Total assets $ 5,203.6 $ 5,582.9 Liabilities: Current liabilities: Accounts payable $ 42.8 $ 55.5 Accrued compensation 51.9 41.4 Accrued interest 23.6 34.2 Accrued lease and franchise costs 76.9 80.0 Other accrued expenses 50.7 56.2 Deferred revenues 45.0 37.7 Short-term debt (Note 8) 40.0 65.0 Short-term operating lease liabilities (Note 5) 177.0 180.9 Liabilities held for sale (Note 12) — 24.1 Other current liabilities 19.3 18.0 Total current liabilities 527.2 593.0 Long-term debt, net (Note 8) 2,481.4 2,676.5 Asset retirement obligation (Note 6) 33.7 33.0 Operating lease liabilities (Note 5) 1,364.3 1,417.4 Liabilities held for sale (Note 12) — 90.9 Other liabilities 43.9 42.0 Total liabilities 4,450.5 4,852.8 Commitments and contingencies (Note 17) Redeemable noncontrolling interests (Notes 9 and 19) 13.5 31.3 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 10) 119.8 119.8 Stockholders' equity (Note 10): Common stock (2024 - 450.0 shares authorized, and 166.0 shares issued and outstanding; 2023 - 450.0 shares authorized, and 165.1 issued and

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."). 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. In total, we have displays in all of the 25 largest markets in the U.S. and approximately 120 markets across the U.S. We currently manage our operations through one operating segment, U.S. Billboard and Transit, which is included in our U.S. Media reportable segment. Prior to its sale, our Canadian operations comprised our International operating segment, which did not meet the criteria to be a reportable segment and accordingly, was included in Other . Historical operating results of our Canadian operations are included in Other through the date of sale. On June 7, 2024, we sold all of our equity interests in Outdoor Systems Americas ULC and its subsidiaries (the "Transaction"), which hold all of the assets of the Company's outdoor advertising business in Canada (the "Canadian Business"). (See Note 12. Acquisitions and Dispositions : Dispositions : Canadian Business .) Basis of Presentation and Use of Estimates The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules of the Securities and Exchange Commission (the "SEC"). In the opinion of our management, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting of normal and recurring adjustments, necessary for a fair stateme

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) the out-of-period adjustment amount. Prior periods not presented herein will be voluntarily revised, as applicable, in future filings. (See Note 19. Revised Consolidated Financial Information .) The impact of the revisions have been reflected throughout the Consolidated Financial Statements, including the applicable Notes to the Consolidated Financial Statements, as appropriate. Note 2. New Accounting Standards Recent Pronouncements In November 2024, the Financial Accounting Standards Board (the "FASB") issued guidance to improve disclosure of expenses by providing more detailed information about specific expense categories included in commonly presented financial statement expense captions in the notes to the financial statements. The guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. This guidance does not change or remove current expense disclosure requirements and will not have any impact on our consolidated financial statements. In November 2023, the FASB issued guidance to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. 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

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Our identifiable intangible assets consist of the following: (in millions) Gross Accumulated Amortization Impairment Net As of September 30, 2024: Permits and leasehold agreements $ 1,541.8 $ ( 934.7 ) $ — $ 607.1 Franchise agreements (a) 960.3 ( 434.7 ) ( 485.8 ) 39.8 Other intangible assets 19.4 ( 8.9 ) — 10.5 Total intangible assets $ 2,521.5 $ ( 1,378.3 ) $ ( 485.8 ) $ 657.4 As of December 31, 2023: Permits and leasehold agreements $ 1,535.5 $ ( 893.8 ) $ — $ 641.7 Franchise agreements (a) 934.8 ( 426.4 ) ( 467.9 ) 40.5 Other intangible assets 19.5 ( 6.3 ) — 13.2 Total intangible assets $ 2,489.8 $ ( 1,326.5 ) $ ( 467.9 ) $ 695.4 (a) We reclassified all Prepaid MTA equipment deployment costs (see Note 17. Commitments and Contingencies ) and recorded impairments in the second, third and fourth quarters of 2023, as well as the first and second quarters of 2024, due to the long-term outlook of our U.S. Transit and Other reporting unit. In the nine months ended September 30, 2024, we acquired 8 displays, resulting in amortizable intangible assets for permits and leasehold agreements of $ 8.6 million, which are amortized using the straight-line method over their estimated useful lives, an average period of 16.5 years. All of our intangible assets, except goodwill, are subject to amortization. Amortization expense was $ 18.7 million in the three months ended September 30, 2024, $ 19.7 million in the three months ended September 30, 2023, $ 53.6 million in the nine months ended September 30, 2024, and $ 63.0 million in the nine months ended September 30, 2023. As a result of negative aggregate cash flow forecasts related to our New York Metropolitan Transportation Authority (the "MTA") asset group, we performed quarterly impairment analyses on the MTA asset group during the three months ended March 31, 2024 and June 30, 2024, and recorded impairment charges of $ 9.1 million and $ 8.8 milli

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) The components of our lease expenses were as follows: Three Months Ended Nine Months Ended September 30, September 30, (in mil

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View this 10-Q filing on SEC EDGAR