OUTFRONT Media Reports Q4 And Full Year 2014 Results
Gail Chiasson, North American Editor
New York-based OUTFRONT Media Inc. yesterday (Feb. 26/15) reported results for the fourth quarter and full year ended December 31, 2014, announcing that its revenues for Q4 were $395.0 million, up 14.9% in Q4 over the same period the previous year.
“We’re pleased to announce fourth quarter financial results that reflect solid business performance and the successful integration of the Van Wagner acquisition,” said Jeremy Male, chairman and CEO. “The increase in our quarterly dividend reflects confidence that our business is poised for continued growth, and we’re confident that we’re executing on all the right steps to grow and enhance our business for the benefit of both our clients and our shareholders.”
On an organic basis, revenues of $339.3 million for the fourth quarter of 2014 were up 0.7% compared to the same prior-year period. Reported billboard revenues of $281.9 million increased $42.0 million, or 17.5%, due to acquisitions, stronger local advertising sales and increased revenues from digital, partially offset by foreign currency exchange losses and softer market conditions in national advertising. On an organic basis, billboard revenues increased 1.0% over the fourth quarter of 2013.
Reported transit and other revenues of $113.1 million increased $9.1 million, or 8.8%, due to acquisitions, partially offset by softer market conditions in national advertising. On an organic basis, transit and other revenues increased 0.2% over the fourth quarter of 2013.
In the US, reported revenues of $356.4 million increased $53.9 million, or 17.8%, for the fourth quarter of 2014 as compared to the same prior-year period. On an organic basis, revenues were $300.7 million for the fourth quarter of 2014, an increase of 0.5% from the same prior-year period, reflecting growth in digital revenues and stronger local advertising sales, partially offset by softer market conditions in national advertising.
On the International front, reported revenues of $38.6 million decreased $2.8 million, or 6.8%, in the fourth quarter of 2014 as compared to the same prior-year period due to foreign currency exchange. Organic revenues increased $0.9 million, or 2.4%, led by solid growth in Canada and South America
For the full year 2014, reported revenues of $1,353.8 million increased $59.8 million, or 4.6%, for the year ended December 31, 2014, as compared to the same prior-year period. On an organic basis, revenues of $1,295.5 million increased $28.1 million, or 2.2% compared to 2013.
Reported billboard revenues of $972.1 million increased $46.4 million, or 5.0%, due to acquisitions, stronger local advertising sales, and increased revenues from digital, partially offset by foreign currency exchange losses and softer market conditions in national advertising. Organic billboard revenues increased $13.9 million, or 1.5%, compared to 2013.
Reported transit and other revenues of $381.7 million increased $13.4 million, or 3.6%, due to acquisitions, partially offset by softer market conditions in national advertising. Organic transit and other revenues increased $14.2 million, or 4.0%, compared to 2013.
Total Operating expenses and SG&A of $950.8 million grew $64.1 million, or 7.2%, primarily as a result of $38.9 million of expense related to acquisitions, $19.6 million of incremental stand-alone costs, increased lease expenses and increased compensation-related expenses.
For the year, in the US, reported revenues of $1,198.8 million increased $68.7 million, or 6.1%, for the year ended December 31, 2014 as compared to the same prior-year period. On an organic basis, revenues were $1,140.5 million, an increase of 2.1% from the same prior-year period, reflecting increased revenues from digital and stronger local advertising sales offset by softer market conditions in national advertising.
And on the International front, reported revenues of $155.0 million decreased $8.9 million, or 5.4%, due primarily to foreign currency exchange. Organic revenues increased $4.2 million, or 2.8%, led by solid growth in Canada and South America.
The benefit from income taxes was $3.1 million in the fourth quarter of 2014 compared to a provision of $26.1 million in the fourth quarter of 2013. On July 17, 2014, OUTFRONT Media began operating in a manner that will allow it to qualify as a real estate investment trust for U.S. federal income tax purposes for the tax year commencing July 17, 2014 and ending December 31, 2014. The effective income tax rate would have been 5.3% for the three months ended December 31, 2013 had it been operating as a REIT for that period. Cash paid for income taxes in the fourth quarter of 2014 was $21.6 million as compared to $37.5 million in the same prior-year period.
Follow DailyDOOH