And then after today's call has concluded, an audio archive of this call will be there as well. And then when we look at our Transit business, I mean, there are two parts to our Transit business. Considering all these factors, as we look at Q2 to date, we expect our total revenues to be down approximately 50%. It's also worth noting that this requirement can be met by dividend payments and both common and preferred stock. OUTFRONT Media (OUT - Free Report) reported first-quarter 2020 adjusted funds from operations (FFO) per share of 28 cents, surpassing the Zacks Consensus Estimate of 24 cents. View original content to download multimedia:http://www.prnewswire.com/news-releases/outfront-media-reports-first-quarter-2020-results-301055518.html. Subsequent EventOn April 20, 2020, we issued and sold $400.0 million in newly issued convertible, perpetual preferred stock in a private placement, which is convertible into shares of our common stock at a conversion price of $16.00 per share. Driving our strong digital revenue growth in the first quarter was a further ramp in the continued digitization of the New York MTA, which you can see on Slide 19. For the last few weeks, it's been one step forward and a few steps back, but we expect this ratio to significantly improve in the second half of this year. Reported billboard revenues of $270.9 million increased $19.9 million, or 7.9%, due to higher average revenue per display (yield) and the growth in revenues from digital billboard conversions. Adjusted OIBDA of $0.5 million decreased $0.7 million, or 58.3%. This has also opened new sales opportunities as people journey to and from essential business locations. Outfront Media, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $385.30 million for the quarter ended March 2020, surpassing the â¦ My Next COVID-19 Stock Alert Poised For Triple Digit Moves ï»¿Get Ready for my next COVID-19 stock idea. ET. By providing your email address below, you are providing consent to Outfront Media Inc. to send you the requested Investor Email Alert updates. Are you trying to defend it a little bit more vigorously in this downturn? Notably, the reported figure remained flat, year on year. In October 2018, an 18-member coalition of Chicago Southland churches, synagogues and mosques spread the message "One God, Three Faiths" using Outfront billboards. Hopefully it's a constructive one. Let's now look at our quarterly revenue in more detail, beginning on Slide 5. SG&A expenses decreased $0.6 million, or 7.0%, driven primarily by lower expenses related to our Sports Marketing operating segment and Canada. Recently in News on November 4, 2020, Outfront Media Reports Third Quarter 2020 Results. Look, we are fundamental believers in public transit. Turning to our local and national revenue split on Slide 7, national kept up the same pace as it showed in the fourth quarter, while local was up 3%. National can switch off dollars quicker than local. Adjusted OIBDA of $90.8 million decreased $3.8 million, or 4.0%. And now let's turn to our outlook on Slide 20. Your line is open. See you at the top! Distributed by Public, unedited and unaltered, on 11 May 2020 12:08:03 UTC 0 When the pandemic started impacting our business in March, we put in place new financial tracking that includes the cancellations, which is something that we had never really analyzed before because, quite simply, they were infrequent and immaterial to our business. FFO reflects net income (loss) attributable to OUTFRONT Media Inc. adjusted to exclude gains and losses from the sale of real estate assets, depreciation and amortization of real estate assets, amortization of direct lease acquisition costs and the same adjustments for our equity-based investments and non-controlling interests, as well as the related income tax effect of adjustments, as applicable. Yeah, it's interesting. Let's conquer your financial goals together...faster. It tends to be more floated rather than permanent long term ads, and for that reason, that's where the beta comes from. And thank you all for joining us this morning. (PRNewsFoto/OUTFRONT Media Inc.) The Company will host a conference call to discuss the results on Friday, May 8, 2020 at 8:30 a.m. Eastern Time.The conference call number is 800-263-0877 (U.S. callers) and 856-344-9283 (International callers) and the passcode for both is 7675011. We calculate AFFO as FFO adjusted to include cash paid for direct lease acquisition costs as such costs are generally amortized over a period ranging from four weeks to one year and therefore are incurred on a regular basis. Our data has also enabled us to identify thousands of displays that have been able to retain or exceed their pre-COVID impression levels because of people's changed living patterns. 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, including but not limited to the impact of the COVID-19 pandemic on our capital resources, portfolio performance and results of operations. Say, half of our leases have -- more than half maybe, have diminution clauses, which give us an opportunity to discuss with them, it's a negotiation. They were flat at $18 million and the growth capex was primarily for 20 digital conversions. We've been working hard on our Billboard leases. I have two questions. We structured it as an issuance of perpetual preferred stock that is convertible into our common stock. Obviously, now, given the pandemic's impact on our business, our Board has decided to pause the quarterly common dividend, which Jeremy mentioned earlier. But Transit is also certainly starting to pace considerably better in that second quarter than it is in -- in that third quarter, I'm sorry, than it is in the second quarter. NEW YORK, Nov. 4, 2020 /PRNewswire/ -- OUTFRONT Media Inc. (NYSE:OUT) is proud to announce Daniel Moran, Dinesh Boaz, Valentina Elegante and Danny Potts with Future First Studio, as the winners of the 2020 OUTFRAME competition. John Janedis - Wolfe Research. In summary, a very solid first quarter even including some impact from the pandemic. So you guys can move on to the next question. The first is, that vehicular audience that our Billboards appeal to, and there, there is no reason at all why, as people effectively come out of their homes that our audience shouldn't directly benefit from that. OtherReported revenues of $30.6 million decreased $2.7 million, or 8.1%, due to a decrease in third-party digital equipment sales and a decline in Canada, partially offset by improved performance in our Sports Marketing operating segment. Good morning. There was no -- effectively no change in audiences over that period. It also reflected our strong sales levels, particularly in some of our larger markets where some of our leases have variable components. U.S. Media was up almost 5% and was the growth driver in the quarter, while our Other segment, which is much smaller, was down mostly because of equipment sales last year that didn't recur. We also previously said that we expected $160 million of net incremental third-party financing to fund the remaining equipment deployment. You can unsubscribe to any of the investor alerts you are subscribed to by visiting the âunsubscribeâ section below. On the dividend, the REIT requirement is a full year look back. There is a slightly different picture when you dig into the components on Slide 14. Given this, and on top of a 10% comp last year, our business performed in line with our lower revised guidance with first quarter revenues up around 4%. On March 25, we announced that we suspended display deployment due to the impact of the COVID pandemic and therefore we now expect our full-year spending to be significantly lower than our previously announced $125 million. ", Net Income before allocation to non-controlling interests, Notes: See exhibits for reconciliations of non-GAAP financial measures; 1) Per share for diluted earnings per share; 2) References to "Net Income", "Earnings per share", "FFO" and "AFFO" mean "Net Income attributable to OUTFRONT Media Inc.", "Earnings attributable to OUTFRONT Media Inc. per share", "FFO attributable to OUTFRONT Media Inc." and "AFFO attributable to OUTFRONT Media Inc.," respectively; 3) Diluted Weighted-Averages Shares Outstanding. This gives us immediate liquidity without adding to our debt leverage. Thanks a lot. Thank you. Let me now turn the call back over to Jeremy. Our teamâs work is seen across 500,000 displays nationwide. Combined digital was 23% of our total company revenues, up almost 6 points from last year, so very good progress in this important area. Roughly what percentage of those are you actually actively engaged with right now in terms of renegotiating lease costs? Jeremy, could you talk about what you expect in terms of a return to growth as you think about national versus local? Thanks, Matt. Given the uncertainty around the severity and duration of the COVID-19 pandemic and the measures taken, or may be taken, in response to the COVID-19 pandemic, we cannot reasonably estimate the full impact of the COVID-19 pandemic on our business, financial condition and results of operations at this time, which may be material. So we think we'll see benefits in 2020 and probably into 2021 and '22 as well. It's Matt. The conference call numbers are 800-263-0877 (U.S. callers) and 856-344-9283 (International callers) and the passcode for both is 7675011. We don't know right now what measures will be taken for in-car transit with regards to social distancing, etc. Yeah. Outfront Media Inc. published this content on 11 May 2020 and is solely responsible for the information contained therein. So thanks very much, operator, and thank you all today for your questions and your time. Thank you again. Adjustments to reconcile net income to net cash flow provided by operating activities: Amortization of deferred financing costs and debt discount and premium, Cash paid for direct lease acquisition costs. Jim Goss -- Barrington Research -- Analyst. Thanks for the questions, Ben. Oppenheimer analyst I. Zaffino â¦ Interest ExpenseNet Interest expense in the first quarter of 2020 was $29.8 million, including amortization of deferred financing costs of $1.3 million, as compared to $32.7 million in the same prior-year period, including amortization of deferred financing costs of $1.4 million. Today's call may include forward-looking statements and relative 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 2019 Form 10-K and our 10-Q, which will be filed later today. You mentioned the Billboard lease expenses might be able to be reduced by 10%. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). We're also helping our communities by generating space for special help messaging and for advertising that is helping businesses adapt to the current situation. Cost reductions have been focus on rightsizing our business for the current environment, including restrictions on discretionary expenses and workforce reduction, furloughs, a hiring freeze and the temporary step-back in compensation for certain employees and our executive officers. Thanks, good morning. As you would expect, this is playing out differently in the two major parts of our business. Some of them were more challenging than others, but collectively, we believe we're going to get the company to where it needs to be, and importantly, with financial and strategic flexibility. Some of that's fixed, some of that is also variable as some of our variable lease costs will come down. We calculate Adjusted OIBDA margin by dividing Adjusted OIBDA by total revenues. Slide 6 shows that the U.S. Media strength was driven by 9% Billboard growth, but Transit and Other was down 4%, largely reflecting the initial COVID impact I mentioned a moment ago. The convertible preferred stock carries a 7.0% annual dividend, which will be payable at our option in cash or in-kind, subject to certain exceptions and conditions. We've been giving it to our clients by market and by location to help them in their planning and to show that our media is still delivering significant impressions. So the $100 million [Phonetic] savings that Jeremy mentioned for the quarter, probably a little less in the third quarter and fourth quarter. It shows that our overall audience is at 80% of the pre-COVID levels and there is a nice uptick in the seven-day trends, which has now crossed the 30-day average. After allocating bad debt provisions on a revenue-weighted basis, U.S. Media Billboard was up 5%, but Transit was down by half. We really believe we have the best people and the best assets and we're looking forward to helping our clients reinvigorate their demand as the economy improves. Billboard lease expense was up due to some new locations in Los Angeles, Chicago, San Francisco, and Miami, as well as some annual step-ups. 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, including but not limited to the impact of the COVID-19 pandemic on our capital resources, portfolio performance and results of operations. When used herein, references to "Fund From Operations, or FFO" and "Adjusted FFO, or AFFO" mean "FFO attributable to OUTFRONT Media Inc." and "AFFO attributable to OUTFRONT Media Inc.," respectively. Ben Swinburne -- Morgan Stanley -- Analyst. So, Bryan, let me take the second piece of that. We calculate FFO in accordance with the definition established by the National Association of Real Estate Investment Trusts ("NAREIT"). OUTFRONT drew $495 million of its $500 million revolver due 2024 ($2 million of LCs outstanding) in Q1 2020 and issued $400 million in new preferred equity in Q2 2020. But on the Billboard lease expense, could you just remind us approximately how many landlords you have in total? So that's where a good piece of it will come from. You can sign up for additional alert options at any time. So we do think as the activity level picks up, some of those costs will come back but, let's say, again that same thing, that half in each quarter stays away. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. So, it is completely variable. As Jeremy said, we're working hard with our landlords plus some of our larger markets have a variable component in posting, maintenance and other and SG&A. Regarding the dividend. If you look back to the sort of the last downturn, it was interesting really because what you actually had was there was obviously a macro decline, but audiences remains the same. We talk to the larger ones first most often and keep a very active dialogue with them. I guess the first thing to say is we felt it was really important to give you color and guidance on this call today and that, as we look at out-of-home, we continue to feel as bullish for the sector as we always have. We calculate organic revenues as reported revenues excluding the impact of foreign currency exchange rates ("non-organic revenues"). We have also enhanced the cleaning practice across our offices, restricted non-essential business travel, and maintained frequent and open communications with our employees. Selling, General and Administrative expenses ("SG&A") of $79.5 million increased $6.2 million, or 8.5%, due primarily to a higher provision for doubtful accounts from the COVID-19 pandemic. Right now, ridership is down and reflecting that, obviously, services are down pretty much in all of our key markets. Please see Exhibits 4-6 of this release for a reconciliation of the above non-GAAP financial measures to the most directly comparable GAAP financial measures. Before we do that, let's proceed with business as usual and review the first quarter financial and operational results on Slide 4. Change in assets and liabilities, net of investing and financing activities: Increase in prepaid MTA equipment deployment costs, Increase in prepaid expenses and other current assets, Decrease in accounts payable and accrued expenses, Increase in operating lease assets and liabilities, Net cash flow provided by operating activities, Return of investments in investee companies, Net cash flow used for investing activities, Proceeds from borrowings under short-term debt facilities, Repayments of borrowings under short-term debt facilities, Proceeds from shares issued under the ATM Program, Taxes withheld for stock-based compensation, Net cash flow provided by (used for) financing activities, Effect of exchange rate changes on cash, cash equivalents and restricted cash, Net increase in cash, cash equivalents and restricted cash, Cash, cash equivalents and restricted cash at beginning of period, Cash, cash equivalents and restricted cash at end of period, Exhibit 3: CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Unaudited) See Notes on Page 12. 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. Cash Flow & Capital ExpendituresNet cash flow provided by operating activities of $14.9 million for the three months ended March 31, 2020 decreased $26.5 million, or 64.0%, compared to $41.4 million during the same prior-year period, due primarily to a larger decrease in accounts payable and accrued expenses, and a smaller decrease in accounts receivable.
2020 outfront media q1 2020