NEW YORK, Nov. 4, 2021 /PRNewswire/ -- OUTFRONT Media Inc. (NYSE:OUT) today reported results for the quarter ended September 30, 2021.

"We achieved another strong quarter of recovery with overall revenue growth exceeding 40%. Billboard revenue reached an important milestone passing third quarter 2019 levels and transit revenue sharply accelerated reflecting ridership returning to mass transit," said Jeremy Male, Chairman and Chief Executive Officer of OUTFRONT Media. "We are excited by the opportunity for further improvement in our key markets as advertisers look to engage with audiences as they return to large urban centers."

	Three Months Ended September 30,		Nine Months Ended September 30,
$ in Millions, except per share amounts	2021	2020	2021	2020
Revenues	$399.2	$282.3	$999.4	$900.5
Organic revenues	399.2	283.2	999.4	877.8
Operating income	65.0	25.1	63.1	33.0
Adjusted OIBDA¹	108.1	59.4	189.2	150.3
Net income (loss) before allocation to non-controlling interests	33.2	(13.3)	(35.1)	(65.0)
Net income (loss)³	33.1	(13.5)	(35.5)	(65.3)
Net income (loss) per share^2,3,4	$0.18	($0.14)	($0.39)	($0.54)
Funds From Operations (FFO)³	74.6	22.6	83.9	39.4
Adjusted FFO (AFFO)³	79.0	27.7	94.1	46.4
Shares outstanding⁴	146.4	144.4	145.3	144.2

Notes: See exhibits for reconciliations of non-GAAP financial measures; 1) Consistent with the current year's presentation, we have reclassified amortization of direct lease acquisition costs of $9.1 million in the three months ended September 30, 2020, and $26.7 million in the nine months ended September 30, 2020, from amortization to sales, general and administrative expenses, resulting in a corresponding decrease in Adjusted OIBDA; 2) "per share" means per common share for diluted earnings per weighted average share; 3) References to "Net income (loss)", "Net income (loss) per share", "FFO" and "AFFO" mean "Net income (loss) attributable to OUTFRONT Media Inc.", "Net income (loss) attributable to OUTFRONT Media Inc. per common share", "FFO attributable to OUTFRONT Media Inc." and "AFFO attributable to OUTFRONT Media Inc.," respectively; 4) Diluted weighted average shares outstanding.

Third Quarter 2021 Results

Consolidated

Reported revenues of $399.2 million increased $116.9 million, or 41.4%, for the third quarter of 2021 as compared to the same prior-year period. Organic revenues increased $116.0 million, or 41.0%.

Reported billboard revenues of $317.4 million increased $77.5 million, or 32.3%, due primarily to higher average revenue per display (yield) compared to the same prior-year period, which was affected by the impact of the COVID-19 pandemic on customer advertising expenditures and overall demand for our services. Organic billboard revenues increased $76.7 million, or 31.9%, for the same reasons.

Reported transit and other revenues of $81.8 million increased $39.4 million, or 92.9%, due primarily to an increase in yield compared to same prior-year period, which was affected by the impact of the COVID-19 pandemic on customer advertising expenditures and overall demand for our services. Organic transit and other revenues of $81.8 million increased $39.3 million, or 92.5%.

Total Operating expenses of $199.8 million increased $44.0 million, or 28.2%, due primarily to guaranteed minimum annual payments to the New York Metropolitan Transportation Authority (the "MTA") and higher billboard and transit revenues. Selling, General and Administrative expenses ("SG&A") of $98.5 million increased $26.0 million, or 35.9%, due primarily to higher compensation-related expenses and higher professional fees, partially offset by a lower provision for doubtful allowances. Consistent with the current period's presentation, we have reclassified amortization of direct lease acquisition costs from Amortization to SG&A expenses in 2020.

Adjusted OIBDA of $108.1 million increased $48.7 million, or 82.0%.

Segment Results

U.S. Media

Reported and organic revenues of $376.2 million increased $110.4 million, or 41.5%, due primarily to an increase in yield compared to same prior-year period, which was affected by the impact of the COVID-19 pandemic on customer advertising expenditures and overall demand for our services. Billboard revenues increased 32.0% and Transit and other revenues increased 95.5% for the same reasons.

Operating expenses increased $41.0 million, or 28.1%, due primarily to guaranteed minimum annual payments to the MTA and higher billboard and transit revenues. SG&A expenses increased $18.9 million, or 35.0%, due primarily to higher compensation-related costs, partially offset by a lower provision for doubtful allowances.

Adjusted OIBDA of $116.4 million increased $50.5 million, or 76.6%.

Other

Reported revenues of $23.0 million increased $6.5 million, or 39.4%, due to an improvement in Canada relative to the impact of COVID-19 on customer advertising expenditures and overall demand for our services in the same prior-year period. Organic revenues increased $5.6 million, or 32.2%.

Operating expenses increased $3.0 million, or 30.3%, due primarily to higher billboard and transit revenues. SG&A expenses increased $1.1 million, or 26.2%, driven primarily by higher expenses in Canada.

Adjusted OIBDA of $4.8 million increased $2.4 million, or 100.0%, compared to the same prior-year period.

Corporate

Corporate costs, excluding stock-based compensation, increased $4.2 million, or 47.2%, to $13.1 million, due primarily to the impact of higher compensation-related expenses, partially offset by the impact of market fluctuations on an equity-linked retirement plan offered to certain employees.

Interest Expense

Net Interest expense was $31.8 million, including amortization of deferred financing costs of $1.7 million, as compared to $34.2 million in the same prior-year period, including amortization of deferred financing costs of $1.8 million. The decrease was primarily due to lower rates compared to the same prior-year period. The weighted average cost of debt at September 30, 2021 was 4.3% compared to 4.5% in the same prior-year period.

Income Taxes

The provision for income taxes was $1.1 million compared to $3.5 million in the same prior-year period. Cash paid for income taxes in the nine months ended September 30, 2021 was $1.5 million.

Net Income (Loss) Attributable to OUTFRONT Media Inc.

Net income attributable to OUTFRONT Media Inc. was $33.1 million compared to a Net loss attributable to OUTFRONT Media Inc. of $13.5 million in the same prior-year period. Diluted weighted average shares outstanding were 146.4 million compared to 144.4 million for the same prior-year period. Net income attributable to OUTFRONT Media Inc. per common share for diluted earnings per weighted average share was $0.18 compared to a Net loss attributable to OUTFRONT MEDIA INC. per common share for diluted earnings per weighted average share of $0.14 in the same prior-year period.

FFO & AFFO

FFO attributable to OUTFRONT Media Inc. was $74.6 million compared to $22.6 million in the same prior-year period, due primarily to higher operating income, higher amortization of direct lease acquisition costs and lower income taxes. AFFO attributable to OUTFRONT Media Inc. was $79.0 million compared to $27.7 million in the same prior-year period, due primarily to higher operating income and lower gains on dispositions.

Cash Flow & Capital Expenditures

Net cash flow provided by operating activities was $45.1 million for the nine months ended September 30, 2021, compared to $86.0 million during the same prior-year period. Total capital expenditures decreased $0.8 million, or 1.9%, to $41.2 million for the nine months ended September 30, 2021, compared to the same prior-year period.

Dividends

In the nine months ended September 30, 2021, we paid cash dividends of $35.9 million, including $21.0 million on our Series A Convertible Perpetual Preferred Stock (the "Series A Preferred Stock") and $14.9 million on our common stock and vested restricted share units granted to employees. We announced on October 26, 2021, that our board of directors has approved a quarterly cash dividend on our common stock of $0.10 per share payable on December 31, 2021, to shareholders of record at the close of business on December 3, 2021.

Balance Sheet and Liquidity

As of September 30, 2021, our liquidity position included unrestricted cash of $510.3 million and $496.0 million of availability under our $500.0 million revolving credit facility, net of $4.0 million of issued letters of credit against the letter of credit facility sublimit under the revolving credit facility. During the three months ended September 30, 2021, no shares of our common stock were sold under our at-the-market equity offering program, of which $232.5 million remains available. As of September 30, 2021, the maximum number of shares of our common stock that could be required to be issued on conversion of the outstanding shares of the Series A Preferred Stock was 25.0 million shares. Total indebtedness as of September 30, 2021 was $2.7 billion, excluding $28.8 million of debt issuance costs, and includes a $600.0 million term loan and $2.1 billion of senior unsecured notes.

COVID-19 Pandemic

The ongoing COVID-19 pandemic and the related preventative measures taken to help curb the spread, have had, and may continue to have, a significant impact on the global economy and our business. In 2021, the COVID-19 pandemic may, among other things, (i) reduce or curtail our customers' advertising expenditures and overall demand for our services through purchase cancellations or otherwise; (ii) increase the volatility of our customers' advertising expenditure patterns from period-to-period through short-notice purchases, purchase deferrals or otherwise; and (iii) delay the collection of certain earned advertising revenues from our customers, all of which could have a material adverse effect on our business, financial condition and results of operation in 2021. As a result of the impact of the ongoing COVID-19 pandemic on our business and results of operations, we expect our key performance indicators and total revenues to incrementally improve throughout the remainder of 2021 as compared to 2020, but be materially lower in 2021 than pre-COVID-19 pandemic levels, particularly in our U.S. Media segment and with respect to our transit and other business. We expect total expenses to increase throughout the remainder of 2021 as compared to 2020, but be materially lower in 2021 than pre-COVID-19 pandemic levels, particularly in our U.S. Media segment and with respect to our transit and other business. Additionally, we expect billboard property lease expenses, such as rental expenses, and posting, maintenance and other expenses, as a percentage of revenues, to decrease throughout the remainder of 2021 as compared to 2020. We expect transit franchise expenses, such as transit franchise payments, as a percentage of revenues, to increase throughout the remainder of 2021 as compared to 2020, and be materially higher in 2021 than pre-COVID-19 pandemic levels, primarily due to our guaranteed minimum annual payment amounts owed to the MTA, which resumed on January 1, 2021. The impacts described above with respect to 2020 were greatest in the second quarter of 2020, with incremental improvement in the third and fourth quarters of 2020. Accordingly, results for the three and nine months ended September 30, 2021, are not indicative of the results that may be expected for the fiscal year ending December 31, 2021. There remains 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, which will depend on numerous factors, including, among others, the emergence of new cases of COVID-19 and its variants, hospitalization and mortality rates, and the availability and distribution of safe and effective treatments and vaccines. Accordingly, 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.

Conference Call

We will host a conference call to discuss the results on November 4, 2021 at 4:30 p.m. Eastern Time. The conference call numbers are 800-353-6461 (U.S. callers) and 334-323-0501 (International callers) and the passcode for both is 7946502. Live and replay versions of the conference call will be webcast in the Investor Relations section of our website, www.OUTFRONTmedia.com.

Supplemental Materials

In addition to this press release, we have provided a supplemental investor presentation which can be viewed on our website, www.OUTFRONTmedia.com.

About OUTFRONT Media Inc.

OUTFRONT leverages the power of technology, location and creativity to connect brands with consumers outside of their homes through one of the largest and most diverse sets of billboard, transit, and mobile assets in North America. Through its technology platform, OUTFRONT will fundamentally change the ways advertisers engage audiences on-the-go.

Contacts:

Investors		Media
Matthew Siegel		Courtney Richards
Chief Financial Officer		PR & Events Specialist
(212) 297-6535		(646) 876-9404
matthew.siegel@outfront.com		courtney.richards@outfront.com

Non-GAAP Financial Measures

In addition to the results prepared in accordance with generally accepted accounting principles in the United States ("GAAP") provided throughout this document, this document and the accompanying tables include non-GAAP financial measures as described below. We calculate organic revenues as reported revenues excluding revenues associated with a disposition and the impact of foreign currency exchange rates ("non-organic revenues"). We provide organic revenues to understand the underlying growth rate of revenue excluding the impact of non-organic revenue items. Our management believes organic revenues are useful to users of our financial data because it enables them to better understand the level of growth of our business period to period. We calculate and define "Adjusted OIBDA" as operating income (loss) before depreciation, amortization, net (gain) loss on dispositions, stock-based compensation and restructuring charges. We calculate Adjusted OIBDA margin by dividing Adjusted OIBDA by total revenues. Adjusted OIBDA and Adjusted OIBDA margin are among the primary measures we use for managing our business, evaluating our operating performance and planning and forecasting future periods, as each is an important indicator of our operational strength and business performance. Our management believes users of our financial data are best served if the information that is made available to them allows them to align their analysis and evaluation of our operating results along the same lines that our management uses in managing, planning and executing our business strategy. Our management also believes that the presentations of Adjusted OIBDA and Adjusted OIBDA margin, as supplemental measures, are useful in evaluating our business because eliminating certain non-comparable items highlight operational trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures. It is management's opinion that these supplemental measures provide users of our financial data with an important perspective on our operating performance and also make it easier for users of our financial data to compare our results with other companies that have different financing and capital structures or tax rates. When used herein, references to "FFO" and "AFFO" mean "FFO attributable to OUTFRONT Media Inc." and "AFFO attributable to OUTFRONT Media Inc.," respectively. We calculate FFO in accordance with the definition established by the National Association of Real Estate Investment Trusts ("NAREIT"). 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. 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. AFFO also includes cash paid for maintenance capital expenditures since these are routine uses of cash that are necessary for our operations. In addition, AFFO excludes restructuring charges and losses on extinguishment of debt, as well as certain non-cash items, including non-real estate depreciation and amortization, a gain on disposition of non-real estate assets, stock-based compensation expense, accretion expense, the non-cash effect of straight-line rent, amortization of deferred financing costs and the same adjustments for our non-controlling interests, as well as the non-cash portion of income taxes and the related income tax effect of adjustments, as applicable. We use FFO and AFFO measures for managing our business and for planning and forecasting future periods, and each is an important indicator of our operational strength and business performance, especially compared to other real estate investment trusts ("REITs"). Our management believes users of our financial data are best served if the information that is made available to them allows them to align their analysis and evaluation of our operating results along the same lines that our management uses in managing, planning and executing our business strategy. Our management also believes that the presentations of FFO and AFFO, as supplemental measures, are useful in evaluating our business because adjusting results to reflect items that have more bearing on the operating performance of REITs highlight trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures. It is management's opinion that these supplemental measures provide users of our financial data with an important perspective on our operating performance and also make it easier to compare our results to other companies in our industry, as well as to REITs. Since organic revenues, Adjusted OIBDA, Adjusted OIBDA margin, FFO and AFFO are not measures calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, revenues, operating income (loss) and net income (loss) attributable to OUTFRONT Media Inc., the most directly comparable GAAP financial measures, as indicators of operating performance. These measures, as we calculate them, may not be comparable to similarly titled measures employed by other companies. In addition, these measures do not necessarily represent funds available for discretionary use and are not necessarily a measure of our ability to fund our cash needs.

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.

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, including but not limited to the impact of the novel coronavirus ("COVID-19") pandemic on 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, including declines caused by the COVID-19 pandemic; the severity and duration of the COVID-19 pandemic and any other pandemics, and the impact on our business, financial condition and results of operations; competition; government regulation; our ability to implement our digital display platform and deploy digital advertising displays to our transit franchise partners, including interruptions and reductions in demand caused by the impact of the COVID-19 pandemic; losses and costs resulting from recalls and product liability, warranty and intellectual property claims; our ability to obtain and renew key municipal contracts on favorable terms; taxes, fees and registration requirements; decreased government compensation for the removal of lawful billboards; content-based restrictions on outdoor advertising; 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; diverse risks in our Canadian business; experiencing a cybersecurity incident; 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 our long-lived assets and goodwill; environmental, health and safety laws and regulations; 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; the ability of our board of directors to cause us to issue additional shares of stock without common 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 failure to remain qualified to be taxed as a 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; the Internal Revenue Service 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; 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, 2020, filed with the SEC on February 26, 2021, and in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021, filed with the SEC on August 6, 2021. 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.

EXHIBITS

Exhibit 1: CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) See Notes on Page 14

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions, except per share amounts)	2021		2020		2021		2020
Revenues:
Billboard	$	317.4	$	239.9	$	828.3	$	699.3
Transit and other	81.8		42.4		171.1		201.2
Total revenues	399.2		282.3		999.4		900.5
Expenses:
Operating	199.8		155.8		567.0		534.6
Selling, general and administrative	98.5		72.5		263.9		232.0
Restructuring charges	—		0.6		—		5.3
Net gain on dispositions	(0.4)		(8.0)		(3.6)		(13.3)
Depreciation	19.6		21.0		59.6		63.2
Amortization	16.7		15.3		49.4		45.7
Total expenses	334.2		257.2		936.3		867.5
Operating income	65.0		25.1		63.1		33.0
Interest expense, net	(31.8)		(34.2)		(98.5)		(97.3)
Loss on extinguishment of debt	—		—		(6.3)		—
Other income (loss), net	—		(0.1)		—		0.1
Income (loss) before (provision) benefit for income taxes and equity in earnings of investee companies	33.2		(9.2)		(41.7)		(64.2)
(Provision) benefit for income taxes	(1.1)		(3.5)		6.0		(0.3)
Equity in earnings of investee companies, net of tax	1.1		(0.6)		0.6		(0.5)
Net income (loss) before allocation to non-controlling interests	33.2		(13.3)		(35.1)		(65.0)
Net income attributable to non-controlling interests	0.1		0.2		0.4		0.3
Net income (loss) attributable to OUTFRONT Media Inc.	$	33.1	$	(13.5)	$	(35.5)	$	(65.3)

Net income (loss) per common share:
Basic	$	0.18	$	(0.14)	$	(0.39)	$	(0.54)
Diluted	$	0.18	$	(0.14)	$	(0.39)	$	(0.54)

Weighted average shares outstanding:
Basic	145.6		144.4		145.3		144.2
Diluted	146.4		144.4		145.3		144.2

Exhibit 2: CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited) See Notes on Page 14

	As of
(in millions)	September 30, 2021		December 31, 2020
Assets:
Current assets:
Cash and cash equivalents	$	510.3	$	710.4
Restricted cash	—		1.6
Receivables, less allowance ($18.2 in 2021 and $26.3 in 2020)	245.9		209.2
Prepaid lease and franchise costs	11.7		5.4
Other prepaid expenses	19.0		14.4
Other current assets	14.3		33.7
Total current assets	801.2		974.7
Property and equipment, net	629.6		634.2
Goodwill	2,077.8		2,077.8
Intangible assets	552.1		547.5
Operating lease assets	1,436.9		1,421.3
Prepaid MTA equipment deployment costs	245.5		204.6
Other assets	40.3		36.8
Total assets	$	5,783.4	$	5,896.9

Liabilities:
Current liabilities:
Accounts payable	$	62.2	$	64.9
Accrued compensation	58.2		35.0
Accrued interest	17.6		24.5
Accrued lease and franchise costs	57.2		65.8
Other accrued expenses	39.5		38.0
Deferred revenues	35.0		29.5
Short-term debt	—		80.0
Short-term operating lease liabilities	188.5		176.5
Other current liabilities	18.6		20.7
Total current liabilities	476.8		534.9
Long-term debt, net	2,619.3		2,620.8
Deferred income tax liabilities, net	13.7		14.6
Asset retirement obligation	35.8		35.9
Operating lease liabilities	1,260.7		1,252.0
Other liabilities	53.1		55.0
Total liabilities	4,459.4		4,513.2

Commitments and contingencies

Preferred stock (2021 - 50.0 shares authorized, and 0.4 shares of Series A Preferred Stock issued and outstanding; 2020 - 50.0 shares authorized, and 0.4 shares issued and outstanding)	383.4		383.4
Stockholders' equity:
Common stock (2021 - 450.0 shares authorized, and 145.6 shares issued and outstanding; 2020 - 450.0 shares authorized, and 144.5 issued and outstanding)	1.5		1.4
Additional paid-in capital	2,110.6		2,090.8
Distribution in excess of earnings	(1,171.5)		(1,100.4)
Accumulated other comprehensive loss	(13.7)		(18.0)
Total stockholders' equity	926.9		973.8
Non-controlling interests	13.7		26.5
Total equity	1,324.0		1,383.7
Total liabilities and equity	$	5,783.4	$	5,896.9

Exhibit 3: CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) See Notes on Page 14

	Nine Months Ended
	September 30,
(in millions)	2021		2020
Operating activities:
Net loss attributable to OUTFRONT Media Inc.	$	(35.5)	$	(65.3)
Adjustments to reconcile net loss to net cash flow provided by operating activities:
Net income attributable to non-controlling interests	0.4		0.3
Depreciation and amortization	109.0		108.9
Deferred tax benefit	(6.6)		(3.8)
Stock-based compensation	20.7		17.3
Provision for doubtful accounts	(5.3)		17.4
Accretion expense	2.0		1.9
Net gain on dispositions	(3.6)		(13.3)
Loss on extinguishment of debt	6.3		—
Equity in earnings of investee companies, net of tax	(0.6)		0.5
Distributions from investee companies	0.5		2.1
Amortization of deferred financing costs and debt discount and premium	5.5		4.8
Change in assets and liabilities, net of investing and financing activities:
(Increase) decrease in receivables	(28.5)		80.5
Increase in prepaid MTA equipment deployment costs	(40.9)		(29.4)
(Increase) decrease in prepaid expenses and other current assets	9.6		(25.0)
Increase (decrease) in accounts payable and accrued expenses	0.8		(42.4)
Increase in operating lease assets and liabilities	5.0		13.4
Increase in deferred revenues	5.5		12.1
Increase (decrease) in income taxes	(0.9)		1.0
Other, net	1.7		5.0
Net cash flow provided by operating activities	45.1		86.0

Investing activities:
Capital expenditures	(41.2)		(42.0)
Acquisitions	(55.0)		(15.5)
MTA franchise rights	(12.1)		(14.4)
Net proceeds from dispositions	1.8		35.9
Return of investments in investee companies	—		0.9
Net cash flow used for investing activities	(106.5)		(35.1)

Financing activities:
Proceeds from long-term debt borrowings	500.0		895.0
Repayments of long-term debt borrowings	(500.0)		(495.0)
Proceeds from borrowings under short-term debt facilities	—		15.0
Repayments of borrowings under short-term debt facilities	(80.0)		(130.0)
Payments of deferred financing costs	(7.3)		(7.7)
Payment of debt extinguishment charges	(4.7)		—
Proceeds from Series A Preferred Stock issuances	—		383.8
Taxes withheld for stock-based compensation	(8.9)		(12.0)
Dividends	(35.9)		(68.1)
Other	(3.7)		—
Net cash flow provided by (used for) financing activities	(140.5)		581.0

Exhibit 3: CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Unaudited) See Notes on Page 14

	Nine Months Ended
	September 30,
(in millions)	2021		2020
Effect of exchange rate changes on cash, cash equivalents and restricted cash	0.2		(0.6)
Net increase (decrease) in cash, cash equivalents and restricted cash	(201.7)		631.3
Cash, cash equivalents and restricted cash at beginning of period	712.0		60.9
Cash, cash equivalents and restricted cash at end of period	$	510.3	$	692.2

Supplemental disclosure of cash flow information:
Cash paid for income taxes	$	1.5	$	3.1
Cash paid for interest	100.6		93.5

Non-cash investing and financing activities:
Accrued purchases of property and equipment	5.7		5.3
Accrued MTA franchise rights	5.8		5.2
Taxes withheld for stock-based compensation	0.2		0.3

Exhibit 4: SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(Unaudited) See Notes on Page 14

	Three Months Ended September 30, 2021
(in millions, except percentages)	U.S. Media			Other			Corporate		Consolidated
Revenues:
Billboard	$	298.4		$	19.0		$	—	$	317.4
Transit and other	77.8			4.0			—		81.8
Total revenues	$	376.2		$	23.0		$	—	$	399.2
Organic revenues^(a):
Billboard	$	298.4		$	19.0		$	—	$	317.4
Transit and other	77.8			4.0			—		81.8
Total organic revenues^(a)	$	376.2		$	23.0		$	—	$	399.2
Non-organic revenues^(b):
Billboard	$	—		$	—		$	—	$	—
Transit and other	—			—			—		—
Total non-organic revenues^(b)	$	—		$	—		$	—	$	—

Operating income (loss)	$	83.5		$	1.8		$	(20.3)	$	65.0
Net gain on dispositions	(0.4)			—			—		(0.4)
Depreciation and amortization	33.3			3.0			—		36.3
Stock-based compensation	—			—			7.2		7.2
Adjusted OIBDA	$	116.4		$	4.8		$	(13.1)	$	108.1

Adjusted OIBDA margin	30.9		%	20.9		%	*		27.1		%

Capital expenditures	$	14.6		$	1.1		$	—	$	15.7

	Three Months Ended September 30, 2020
(in millions, except percentages)	U.S. Media			Other			Corporate		Consolidated
Revenues:
Billboard	$	226.0		$	13.9		$	—	$	239.9
Transit and other	39.8			2.6			—		42.4
Total revenues	$	265.8		$	16.5		$	—	$	282.3
Organic revenues^(a):
Billboard	$	226.0		$	14.7		$	—	$	240.7
Transit and other	39.8			2.7			—		42.5
Total organic revenues^(a)	$	265.8		$	17.4		$	—	$	283.2
Non-organic revenues^(b):
Billboard	$	—		$	(0.8)		$	—	$	(0.8)
Transit and other	—			(0.1)			—		(0.1)
Total non-organic revenues^(b)	$	—		$	(0.9)		$	—	$	(0.9)

Operating income (loss)	$	31.9		$	7.5		$	(14.3)	$	25.1
Restructuring charges	0.4			0.2			—		0.6
Net gain on dispositions	—			(8.0)			—		(8.0)
Depreciation and amortization^(c)	33.6			2.7			—		36.3
Stock-based compensation	—			—			5.4		5.4
Adjusted OIBDA^(c)	$	65.9		$	2.4		$	(8.9)	$	59.4

Adjusted OIBDA margin^(c)	24.8		%	14.5		%	*		21.0		%

Capital expenditures	$	9.4		$	0.7		$	—	$	10.1

	Nine Months Ended September 30, 2021
(in millions, except percentages)	U.S. Media			Other			Corporate		Consolidated
Revenues:
Billboard	$	782.7		$	45.6		$	—	$	828.3
Transit and other	160.7			10.4			—		171.1
Total revenues	$	943.4		$	56.0		$	—	$	999.4
Organic revenues^(a):
Billboard	$	782.7		$	45.6		$	—	$	828.3
Transit and other	160.7			10.4			—		171.1
Total organic revenues^(a)	$	943.4		$	56.0		$	—	$	999.4
Non-organic revenues^(b):
Billboard	$	—		$	—		$	—	$	—
Transit and other	—			—			—		—
Total non-organic revenues^(b)	$	—		$	—		$	—	$	—

Operating income (loss)	$	122.2		$	(1.6)		$	(57.5)	$	63.1
Net gain on dispositions	(0.6)			(3.0)			—		(3.6)
Depreciation and amortization	100.0			9.0			—		109.0
Stock-based compensation	—			—			20.7		20.7
Adjusted OIBDA	$	221.6		$	4.4		$	(36.8)	$	189.2

Adjusted OIBDA margin	23.5		%	7.9		%	*		18.9		%

Capital expenditures	$	39.3		$	1.9		$	—	$	41.2

	Nine Months Ended September 30, 2020
(in millions, except percentages)	U.S. Media			Other			Corporate		Consolidated
Revenues:
Billboard	$	663.9		$	35.4		$	—	$	699.3
Transit and other	170.1			31.1			—		201.2
Total revenues	$	834.0		$	66.5		$	—	$	900.5
Organic revenues^(a)
Billboard	$	663.9		$	38.0		$	—	$	701.9
Transit and other	170.1			5.8			—		175.9
Total organic revenues^(a)	$	834.0		$	43.8		$	—	$	877.8
Non-organic revenues^(b):
Billboard	$	—		$	(2.6)		$	—	$	(2.6)
Transit and other	—			25.3			—		25.3
Total non-organic revenues^(b)	$	—		$	22.7		$	—	$	22.7

Operating income (loss)	$	75.4		$	(1.3)		$	(41.1)	$	33.0
Restructuring charges	3.4			0.9			1.0		5.3
Net gain on dispositions	(1.2)			(12.1)			—		(13.3)
Depreciation and amortization^(c)	99.7			9.2			—		108.9
Stock-based compensation	—			—			16.4		16.4
Adjusted OIBDA^(c)	$	177.3		$	(3.3)		$	(23.7)	$	150.3

Adjusted OIBDA margin^(c)	21.3		%	(5.0)		%	*		16.7		%

Capital expenditures	$	40.3		$	1.7		$	—	$	42.0

Exhibit 5: SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES
(Unaudited) See Notes on Page 14

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)	2021		2020		2021		2020
Net income (loss) attributable to OUTFRONT Media Inc.	$	33.1	$	(13.5)	$	(35.5)	$	(65.3)
Depreciation of billboard advertising structures	13.8		15.3		42.0		46.2
Amortization of real estate-related intangible assets	12.8		12.3		37.8		36.5
Amortization of direct lease acquisition costs	15.3		9.1		40.4		26.7
Net gain on disposition of real estate assets	(0.4)		(0.8)		(0.6)		(6.1)
Adjustment related to non-controlling interests	—		—		(0.2)		(0.2)
Income tax effect of adjustments^(d)	—		0.2		—		1.6
FFO attributable to OUTFRONT Media Inc.	$	74.6	$	22.6	$	83.9	$	39.4
Non-cash portion of income taxes	1.0		(1.1)		(8.3)		(6.4)
Cash paid for direct lease acquisition costs	(12.5)		(9.0)		(35.4)		(32.6)
Maintenance capital expenditures	(4.9)		(2.9)		(13.3)		(14.0)
Restructuring charges- severance^(e)	—		0.6		—		4.4
Other depreciation	5.8		5.7		17.6		17.0
Other amortization	3.9		3.0		11.6		9.2
Gain on disposition of non-real estate assets^(f)	—		(7.2)		(3.0)		(7.2)
Stock-based compensation^(e)	7.2		5.4		20.7		17.3
Non-cash effect of straight-line rent	1.5		4.7		5.7		9.6
Accretion expense	0.7		0.6		2.0		1.9
Amortization of deferred financing costs	1.7		1.8		5.5		4.8
Loss on extinguishment of debt	—		—		6.3		—
Adjustment related to non-controlling interests	—		—		—		(0.1)
Income tax effect of adjustments^(g)	—		3.5		0.8		3.1
AFFO attributable to OUTFRONT Media Inc.	$	79.0	$	27.7	$	94.1	$	46.4

Exhibit 6: SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES
(Unaudited) See Notes on Page 14

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)	2021		2020		2021		2020
Adjusted OIBDA^(c)	$	108.1	$	59.4	$	189.2	$	150.3
Interest expense, net, less amortization of deferred financing costs	(30.1)		(32.4)		(93.0)		(92.5)
Cash paid for income taxes	(0.1)		(1.0)		(1.5)		(3.1)
Direct lease acquisition costs	2.8		0.1		5.0		(5.9)
Maintenance capital expenditures	(4.9)		(2.9)		(13.3)		(14.0)
Equity in earnings of investee companies, net of tax	1.1		(0.6)		0.6		(0.5)
Non-cash effect of straight-line rent	1.5		4.7		5.7		9.6
Accretion expense	0.7		0.6		2.0		1.9
Other income (loss)	—		(0.1)		—		0.1
Adjustment related to non-controlling interests	(0.1)		(0.2)		(0.6)		(0.6)
Income tax effect of adjustments^(d)(h)	—		0.1		—		1.1
AFFO attributable to OUTFRONT Media Inc.	$	79.0	$	27.7	$	94.1	$	46.4

Exhibit 7: OPERATING EXPENSES
(Unaudited) See Notes on Page 14

	Three Months Ended						Nine Months Ended
	September 30,				%		September 30,				%
(in millions, except percentages)	2021		2020		Change		2021		2020		Change
Operating expenses:
Billboard property lease	$	101.8	$	95.0	7.2	%	$	296.6	$	291.9	1.6	%
Transit franchise	49.0		21.3		130.0		131.1		97.6		34.3
Posting, maintenance and other	49.0		39.5		24.1		139.3		145.1		(4.0)
Total operating expenses	$	199.8	$	155.8	28.2		$	567.0	$	534.6	6.1

Exhibit 8: EXPENSES BY SEGMENT
(Unaudited) See Notes on Page 14

	Three Months Ended						Nine Months Ended
	September 30,				%		September 30,				%
(in millions, except percentages)	2021		2020		Change		2021		2020		Change
U.S. Media:
Operating expenses	$	186.9	$	145.9	28.1	%	$	529.8	$	483.6	9.6	%
SG&A expenses^(c)	72.9		54.0		35.0		192.0		173.1		10.9

Other:
Operating expenses	12.9		9.9		30.3		37.2		51.0		(27.1)
SG&A expenses^(c)	5.3		4.2		26.2		14.4		18.8		(23.4)

NOTES TO EXHIBITS

PRIOR PERIOD PRESENTATION CONFORMS TO CURRENT REPORTING CLASSIFICATIONS.

(a)	Organic revenues exclude revenues associated with a disposition and the impact of foreign currency exchange rates ("non-organic revenues").
(b)	In the three months ended September 30, 2020, non-organic revenues reflect the impact of foreign currency exchange rates. In the nine months ended September 30, 2020, non-organic revenues exclude the impact of the sale of all of our equity interests in certain of our subsidiaries (the "Sports Disposition"), which held all of the assets of our Sports Marketing operating segment and reflect the impact of foreign currency exchange rates.
(c)	Consistent with the current year's presentation, we have reclassified amortization of direct lease acquisition costs of $9.1 million in the three months ended September 30, 2020, of which $8.3 million was recorded in our U.S. Media segment and $0.8 million was recorded in Other, and $26.7 million in the nine months ended September 30, 2020, of which $25.1 million was recorded in our U.S. Media segment and $1.6 million was recorded in Other, from Amortization to SG&A expenses, resulting in a corresponding decrease in Adjusted OIBDA.
(d)	Income tax effect related to Net gain on disposition of real estate assets.
(e)	In 2020, Restructuring charges relate to severance associated with workforce reductions made in response to the COVID-19 pandemic and in the nine months ended September 30, 2020, includes stock-based compensation expenses of $0.9 million.
(f)	Gain related to the Sports Disposition.
(g)	Income tax effect related to a Gain on disposition of non-real estate assets in 2021 and 2020, and related to Restructuring charges - severance in 2020.
(h)	Income tax effect related to Restructuring charges - severance.

* Calculation not meaningful

View original content to download multimedia:https://www.prnewswire.com/news-releases/outfront-media-reports-third-quarter-2021-results-301416990.html

SOURCE OUTFRONT Media Inc.

OUTFRONT Media Reports Third Quarter 2021 Results