OUTFRONT Media Inc.

Hello all and welcome to Outfront Media's second quarter 2024 earnings call. My name is Lydia and I'll be your operator today. After the prepared remarks, there'll be an opportunity to ask questions. If you'd like to ask a question during the Q&A, you can do so by pressing star followed by one on your telephone keypad. I'll now hand you over to Stefan Beeson, Head of Investor Relations to begin. Please go ahead.

Good afternoon. and thank you for joining our 2024 second quarter earnings call. With me on the call today are Jeremy Mail, 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 the lines for a question and answer session. Our comments today will refer to the earnings release and a slide presentation that you can find on the investor relations section of our website, outfront.com. After today's call is concluded, a replay will be available 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 2023 Form 10-K and our June 30, 2024, 10-Q, which we expect to file this week. We will refer to certain non-GAAP financial measures on this call. Any references made to OIBDA today will be on an adjusted basis. Reconciliations of OIBDA and other non-GAAP financial measures are in the appendix of the slide presentation, the earnings release, and on our website, which also includes presentations with prior period reconciliations. Also, please note that given the intra-quarter sale of our Canadian business, our consolidated results include only 67 days of Canada results, compared to 91 days in comparable prior year periods. Detailed historical financial results of the divested Canadian business can be found on page 23 of our slide presentation, and detailed historical U.S. media financial results can be found on slide 22. Given the recent sale of our Canadian business, our remarks today will focus primarily on the results of our U.S. media sync. Let me now turn the call over to Jared.

Thank you, Stefan, and thanks to everyone for joining us on our call this afternoon. We're pleased to be here today to discuss our second quarter, during which we successfully completed the sell of our Canadian business, and more importantly, drove improving results in our US media business. As Stefan mentioned, our remarks today will focus primarily on our US media segment, given this represents essentially the entire remaining company moving forward. As you can see on slide three, which summarizes our headline results, Our U.S. media business grew revenues a solid 4 percent, driven by continued steady growth and billboard and impressive double digit growth in transit. U.S. media adjusted over to grew nearly 10 percent, driven by the revenue growth I just described, combined with the U.S. media expense growth of under 2 percent. U.S. media and corporate adjusted was up almost 8 percent. Consolidated AFFO grew a strong 9% to 85 million and puts us well on our way to meeting the guidance we laid out earlier this year. This growth is even more impressive given Canada contributed only 1.7 million to our consolidated adjusted OEBIDA in the second quarter compared to 6.5 million last year. On slide four, you can see our US media revenues in more detail. Billboard revenues were up 2.3%. Local continues to be particularly strong, with our more locally skewed markets leading our performance. Every region was up except the West, where LA was down due to soft media spend. Transit revenue was up nearly 11% versus the prior year, driven by particularly impressive growth in the New York MTA. Similar to the first quarter, our improved transit revenues were the result of solid performances from both local and national teams. The breakdown of local and national revenues in our US media business can be seen on slide five. Local was the primary driver of our revenue growth, up almost 7% during the quarter, while national grew slightly. On a consolidated basis, Our best performing categories in the second quarter were legal services, financial, utilities, CPG and resale. On the weaker side were entertainment, alcohol, restaurants, employment and auto. Slide six illustrates our solid US media billboard yield growth, up almost 4% year-over-year, reaching just under $3,000, which is a fresh second quarter record for Alphonse. The largest drivers of this yield growth remain our digital conversions, rates, occupancy, and higher automated transaction revenue. Slide seven highlights our strong US media digital performance, with revenue growing 10% in the quarter, representing over 34% of our total revenues, up from 32% last year. U.S. digital billboard was up nearly 6%, while transit was up almost 24%, fueled predominantly by the MTA. Automated revenues in the quarter represented 16% of our digital revenues, up from 14% during the first quarter. With that, let me now hand it over to Matt to review the rest of our financials.