OUTFRONT Media Inc.

Good day and welcome to the Outfront Media Third Quarter Earnings Conference Call. At this time, I would like to turn the conference over to Gregory Lundberg. Please go ahead.

Hey, good afternoon, everyone. Thanks for joining our 2020 Third Quarter Earnings Call. We hope that you're safe and well. On the call today are Jeremy Mayle, Chairman and Chief Executive Officer, and Matthew Siegel, Executive Vice President and Chief Financial Officer. After a discussion of our financial results, we'll open up the lines for a question and answer session. Our comments today will refer to the earnings release and the slide presentation that you can find in the investor relations section of our website, outfrontmedia.com. And after today's call is concluded, an audio archive will be there as well. This conference call may include forward-looking statements, relevant 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 2020 quarterly reports, including our third quarter 10-Q, which will be filed tomorrow. We will refer to certain non-GAAP financial measures on this call. Any references made to OIBDA will be on an adjusted basis, and reconciliations of OIBDA and other non-GAAP financial measures are in the appendix of the slide presentation, the earnings release, and also on our website. And with that, I will hand the call over to Jeremy.

Thank you, Greg, and thanks for joining us today. I hope that many of you are safely back in your offices. I've been spending quite a bit of time and hours over the past few months, and I'm pleased to say that Midtown is looking a bit more like normal. Things certainly feel better than they did last quarter, and this is reflected in our numbers on slide three. Total revenues were down 39% or 37% on an apples-to-apples basis after our sports marketing disposal and well within our guidance range. We saw better billboard performance than expected, while transit is recovering more slowly given continuing low ridership. Once again, we were able to take over $100 million out of our quarterly cost structure helping improve the year-over-year decline in OIDA and FFO. Importantly, if you look at slide four, you can see that we had good sequential improvement on virtually every metric with the exception of transit. I'm not going to go through all of these figures at the moment, but notable here are the significant sequential improvements in U.S. media billboard revenues, our adjusted OIDA, and AFFO. Let's now go into more detail, beginning with total revenues on slide five. As I just mentioned, we disposed of our sports marketing operation during the course. It was a good business for us, but as you know, was non-core for us, and will benefit from the scale of its new owners. The figures you see here include it in our other revenues in 2019, and there's additional color on this in the appendix. While the impacts of the pandemic during the quarter were less pronounced than they were in the second quarter, they still weighed on our U.S. media and Canada in broadly similar fashion. In U.S. media, as seen on slide 6, all board revenues were down 23%, a 14-point improvement from the loss rate last quarter. Transit was down 69%, a 7-point improvement. I'll go into the drivers of this differential later on the call, but you can see one of them on slide seven, which is our local and national mix. National drives the majority of our transit revenues, while local drives the majority of our billboard revenues. Overall, local revenues were down 28%, while national were down 48%. Both of these improved from last quarter, but it was local advertising that led the way. Turning to slide 8, our billboard yields were down 21% in the quarter and this was driven far more by demand than rate. There was no pronounced differentiation in the performance between static and digital yields. Looking at our other business on slide 9, Canadian billboard revenues were down 28% A better result than last quarter and driven by similar factors to the U.S. The organic figures removed sports marketing and I'll also point out that prior year other revenues had $6 million of non-recurring third-party digital equipment sales. The last topic on revenues I'd like to cover is digital on slide 10. Total revenues were down 37%, right in line with the rest of the business, and a bit better in the last quarter, with improvement in the declines of both billboards and transit. This is quite a big change from this time last year, when we told you that total digital grew 28%, driven by digital billboards down 15%, and transit up a very strong 77%. As our business recovers, we remain convinced that that digital will continue to be a key growth driver for our business. Let's now shift over to Matt, and he'll walk you through the rest of our financials.