8. 8
Simple Business Model
Client / Tenant
Revenues
generated by
leasing space on
displays to
advertising tenants
who enter into
contracts ranging
from four weeks or
less to one year.
9. 9
Billboard Asset Components
Extension
Physical creative
that extends
beyond a display
ID
Unique location
and inventory
number for the
specific asset
Structure
Column or other
support for the
display; generally
steel monopole or
vertical support
beams
Site Lease
Ground or rooftop lease
specific to display.
Display permit and
structure is owned by
OUT
Ad Creative
Designed for the exact
size and proper
resolution, printed on
vinyl and attached by
ratchets and tension
clips. A photo of each
billboard campaign
when up and running
is shown to client as
“proof of performance”
Catwalk
Support structure held
by outriggers for crews
to change campaign
creative; also supports
lighting. Electricity
comes in up the
column or from
overhead
Head
Physical structure creating the face that
a vinyl ad is attached to. Comprised of
torsion bars, uprights, and stringers
made of steel, fiberglass, or wood. May
contain section panels onto which the
vinyl is attached, or a hurricane frame
with no panels. Skirting at the bottom
hides the torsion bars and is where the
“OUTFRONT” shield tag is located
10. 10
Display Permit Assets
OUT owns the
permit for each
location
• Competitive barrier to
entry
• Approximately 75%
1
legal
non-conforming
2
Own less than 10%
of site locations
Approximately
23,000 leases with
18,500 landlords1
8 year life average
• Majority have abate
and/or termination
clauses for market
weakness
• Small % have escalators
Note: 1) As of 12/31/2015; 2) Meaning they were legally constructed under laws in effect at the time they
were built, but could not be constructed under current laws.
Permit & Display
= OUT owned
Ground Site =
Landlord
11. 11
Transit Franchise Assets
Strategically
complementary to
billboard business
in urban/suburban
markets
Multi-Year contracts
with municipalities:
• Exclusive right to rent
space to advertisers
• Renewals are generally
a competitive bidding
process
Typical financial
terms:
• Revenue share
• Minimum annual
guarantee
• Generally no capital
expenditures as physical
asset is owned by
municipality
12. 12
Digital Displays
Digital brings
numerous benefits
to advertisers
• Rich media, interactivity,
location, flexibility
Digital billboard
inventory:
• 604 US 2015
1
• 100 built US 2015
2
Expect increase in
smaller-scale digital
displays
• Transit / Urban
• Networked
• Synchronized
• Full-motion
Note: 1) As of December 31, 2015; 2) As of December 31, 2015; excludes 6 sold in Puerto Rico.
13. 13
Top-Market Asset Locations
Notes: Numbers may not sum due to rounding. Source data from OUT 10-K, December 31, 2015. 1) Transit & Other
Market
Billboard Transit
1
Total Billboard Transit
1
Total Billboard Transit1
Total
New York, NY 466 179,127 179,593 14.2% 56.0% 26.7% 37.6% 62.4% 100.0%
Los Angeles, CA 4,710 40,598 45,308 15.6% 11.2% 14.3% 76.7% 23.3% 100.0%
State of NJ 3,991 - 3,991 5.4% 0.0% 3.8% 100.0% 0.0% 100.0%
Miami, FL 1,057 14,760 15,817 5.2% 4.5% 5.0% 73.4% 26.6% 100.0%
Houston, TX 1,161 - 1,161 4.2% 0.0% 3.0% 100.0% 0.0% 100.0%
Detroit, MI 2,313 12,953 15,266 3.8% 0.9% 3.0% 90.9% 9.1% 100.0%
Washington D.C. 25 34,694 34,719 0.6% 10.1% 3.4% 11.5% 88.5% 100.0%
San Francisco, CA 1,441 768 2,209 4.0% 0.7% 3.0% 93.0% 7.0% 100.0%
Atlanta, GA 2,324 16,549 18,873 2.8% 3.1% 2.9% 67.6% 32.4% 100.0%
Chicago, IL 1,070 744 1,814 3.7% 0.7% 2.8% 92.4% 7.6% 100.0%
Dallas, TX 727 294 1,021 3.3% 0.5% 2.5% 93.9% 6.1% 100.0%
Tampa, FL 1,628 - 1,628 3.2% 0.0% 2.2% 100.0% 0.0% 100.0%
Phoenix, AZ 1,824 3,191 5,015 2.5% 1.7% 2.3% 77.7% 22.3% 100.0%
Orlando, FL 1,546 - 1,546 2.4% 0.0% 1.7% 100.0% 0.0% 100.0%
St. Louis, MO 1,440 - 1,440 1.7% 0.0% 1.2% 100.0% 0.0% 100.0%
All other states 19,245 3,411 22,656 27.2% 10.6% 22.3% 85.9% 14.1% 100.0%
Total US 44,968 307,089 352,057 100.0% 100.0% 100.0% 70.3% 29.7% 100.0%
Canada 5,833 4,054 9,887 50.0% 70.6% 53.7% 76.5% 23.5% 100.0%
Mexico 4,329 74 4,403 31.5% 7.5% 27.2% 95.1% 4.9% 100.0%
South America 2,141 4,658 6,799 18.5% 21.9% 19.1% 79.5% 20.5% 100.0%
Total International 12,303 8,786 21,089 100.0% 100.0% 100.0% 82.1% 17.9% 100.0%
Displays % of Total Revenue Market Revenue Mix
15. Agreement
to sell Latin
America
Rebrand
& ticker
change
to OUT
Van
Wagner
acquisition
closed
15
Timeline
IPO on March 28, 2014
1
Complete split-off of CBS 81% ownership on July 16, 2014
Began operating as a REIT as of July 17, 2014
REIT low corporate taxes benefit shareholders via higher amounts
paid as dividends
Split-off
from CBS
FTSE
NAREIT
index
inclusion
Began
operating
as a REIT
PLR
received
from IRS
CBSO
IPO
CBSO debt
financing
Apr
16
Jan
31
Mar
28
Jul
17
Jan
1
20152014
Jul
16
Oct
1
Nov
20
Nov
2
Notes: 1) IPO commenced trading March 28, 2014 and completed on April 2, 2014.
16. 16
REIT Assets
Qualified REIT Subsidiary
“QRS”
Taxable REIT Subsidiary
“TRS”
US billboards
US fixed transit assets
100% of taxable income to be
distributed to shareholders
International operations
US mobile transit assets
Residual cash may be used for
reinvestment or debt
repayment
17. 17
OUT vs. Other REITs
Sources: Company reports; REIT.com; 1) FactSet for OUT and Wireless Towers; Evercore ISI for traditional
REITs; priced as of 2/26/2016.
OUT
Wireless
Towers
Self-
Storage Office
Regional
Malls
Shopping
Centers
Residential
Apartments Lodging
REIT's
Business Model
Leasing space
to advertisers
and wireless
carriers on
owned
structures
Leasing space
to wireless
operators and
broadcasters on
owned
structures
Leasing space
to individual and
business
tenants in
owned facilities
Leasing space
to businesses in
office buildings
Leasing space
to retailers in
shopping malls
Leasing space
to retailers in
shopping
centers and
strip malls
Leasing space to
consumers in
residential
apartments
Leasing space
to consumers in
hotels
Tenant's
Objective
Reach
consumer with
advertising to
drive sales
Provide best
signal coverage
to mobile users
Find space to
store excess
goods
Find attractive
space for
business
location
Retail store in
attractive
demographic
location
Retail store in
attractive
demographic
location
Find attractive
space for
residence
Find attractive
space for short-
term stay
Assets Billboards, site
permits, transit
franchises, land,
land leases
Towers,
shelters, land,
land leases
Buildings, land Buildings, land Buildings, land Buildings, land Buildings, land Buildings, land
Barrier to Entry High High Low Low Low Low Low Low
Key
Differentiator
Location Location Location Location Location Location Location Location
Tenant Type Business Business Business &
Consumer
Business Business Business Consumer Consumer
Tenant Lease
Length
< 1 month to 12
months
5-10 years Monthly 10-12 years
city, 5-7 years
suburban
7-10 years 3-5 years 1 year 1 night to
several nights
Capex %
Revenue
Under 5% total
including 2%
maintenance
2-3% 3-6% 11-13% 9-11% 8-9% 6-8% 8-12%
AFFO Multiple
(2016) 1
14.8x 18.0x 25.4x 29.3x 21.2x 23.1x 21.8x 23.3x
Net Leverage 1
5.4x 5.5x 3.0x 8.0x 6.2x 6.3x 5.8x 3.2x
19. 19
Long Term U.S. Growth Trends
Long-run
outperformance of
Out-of-Home (OOH)
advertising
1990 – 2015
• GDP +2.3%
• Media +3.0%
• OOH +4.1%
Brief economic
downturns followed
by strong rebounds
Source: OAAA.org; US Dept. of Commerce Bureau of Economic Analysis (www.bea.gov); MAGNA GLOBAL.
(20%)
(18%)
(16%)
(14%)
(12%)
(10%)
(8%)
(6%)
(4%)
(2%)
–
2%
4%
6%
8%
10%
12%
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
GDP vs. Media & OOH Revenue Growth
Real GDP
All Media
OOH
Print/Radio/TV
OUT (US)
20. 20
U.S. Ad Spending & Media Mix
Source: 1) MAGNA GLOBAL; 2) OAAA.org / Nielsen
Out-of-Home (OOH)
continues to hold
and grow share
Internet growth is
fueled by mobile1
OOH is highly
complementary to
mobile
• 70% of an adult’s day is
OOH
2
• 69% of mobile usage is
OOH
2
1994
1997
2000
2003
2006
2009
2012
2015
OOH
Internet
Print
TV
Radio
$87B
$166B
4.3%
34.7%
14.1%
38.1%
8.8%
3.6%
53.5%
30.1%
12.7%
Share
Share
21. 21
U.S. Top 100 Advertiser Spending
Top 100 National
advertisers spend
differently than
Local advertisers
• OUT is 46% National,
54% Local
1
Significant
opportunity to
increase OOH
allocations. Top 10
by:
• Total Ad $ = 2.7%
• OOH $ = 5.6%
• OOH % = 11.6%
6.0%
12.4%
19.7%
8.6%
53.3%
1.8%
4.3%
12.9%
6.0%
74.9%
OOH
Radio
Print
Internet
(Excl.
Search &
Mobile)
TV
Media Allocation: Top 100 Advertisersvs.Market
(excluding Search & Mobile)
Top 100
Total Ad
Market
Note: This chart graphs two different data sets. The Top 100 is sourced from Kantar, which excludes Search and Mobile from its
figures. The Total Ad Market is sourced from MAGNA GLOBAL estimates, which track the entire U.S. advertising market; Search
and Mobile are subtracted from MAGNA GLOBAL’s Internet figures to make them more comparable to Kantar. 1) Twelve months
ending December 31, 2015.
22. 22
U.S. Top 20 Advertisers
Source: Kantar Media, Top 250 U.S. Advertisers, Year-to-Date (YTD) December 31, 2015.
Total Ad $ OOH $
OOH
% Chg
OOH %
Allocation Total Ad $ OOH $
OOH
% Chg
OOH %
Allocation
1 AT&T $1,261.0 $20.8 (6.2%) 1.6 1 McDonalds $802.8 $69.7 (1.1%) 8.7
2 Verizon $1,256.5 $47.7 39.1% 3.8 2 Apple $609.2 $59.2 (2.2%) 9.7
3 Geico $1,136.2 $25.1 (9.6%) 2.2 3 Verizon $1,256.5 $47.7 39.1% 3.8
4 Pfizer $1,069.4 $0.4 45.9% 0.0 4 Warner Bros. $826.0 $34.4 20.3% 4.2
5 Warner Bros. $826.0 $34.4 20.3% 4.2 5 Metro PCS $249.1 $33.7 (26.3%) 13.5
6 McDonalds $802.8 $69.7 (1.1%) 8.7 6 Coca-Cola $256.2 $28.7 30.2% 11.2
7 Ford $793.2 $13.8 927.6% 1.7 7 Universal Pictures $529.8 $25.2 48.5% 4.8
8 Chevrolet $779.5 $3.6 561.2% 0.5 8 Geico $1,136.2 $25.1 (9.6%) 2.2
9 T-Mobile $759.1 $21.0 43.7% 2.8 9 Chase $277.0 $24.5 (4.8%) 8.9
10 Sprint $736.8 $21.1 58.1% 2.9 10 Samsung $644.9 $21.3 0.4% 3.3
11 Nissan $714.0 $4.1 (65.3%) 0.6 11 Sprint $736.8 $21.1 58.1% 2.9
12 Macys $675.9 $3.6 (21.6%) 0.5 12 T-Mobile $759.1 $21.0 43.7% 2.8
13 Walmart $657.4 $1.1 (52.6%) 0.2 13 AT&T $1,261.0 $20.8 (6.2%) 1.6
14 Samsung $644.9 $21.3 0.4% 3.3 14 Citi $335.0 $20.6 (21.2%) 6.1
15 Apple $609.2 $59.2 (2.2%) 9.7 15 NBC $153.1 $19.7 (11.7%) 12.9
16 Microsoft $605.0 $19.5 158.3% 3.2 16 Microsoft $605.0 $19.5 158.3% 3.2
17 State Farm $585.2 $12.4 4.4% 2.1 17 Fox $120.4 $19.1 (9.0%) 15.9
18 Toyota $561.1 $3.8 (35.2%) 0.7 18 20th Century Fox $410.3 $17.8 (12.7%) 4.3
19 Progressive $546.4 $0.1 (91.9%) 0.0 19 HBO $84.1 $17.5 (4.7%) 20.8
20 Universal Pictures $529.8 $25.2 48.5% 4.8 20 Pepsi $171.1 $14.7 (7.8%) 8.6
Average 2.7% Average 7.5%
By Total Ad Spending Across All Media By Total OOH Spending
23. 23
Where Some Brands Put Advertising
Source: Kantar Media, Top 250 U.S. Advertisers, Year-to-Date (YTD) December 31, 2015. Kantar data does not include
Search or Mobile advertising expenditures.
9.7%
5.7%
10.7%
1.6% 0.6% 0.5%
24. 24
Client/Tenant Advertising Choices
Client/Tenant Buy Media Audience
OOH
Internet
TV
Print
Radio
NATIONALLOCAL
Direct
Local client buys direct from OUT
salesforce
Advertising Agency
National client selects an
advertising agency to select the
optimal media allocation to best
achieve the client’s goals. Both
covered by OUT’s national
salesforce
25. 25
Choosing OOH vs. Other Media
OOH
Internet /
Mobile TV Print Radio
Viewability
100%, no ad-
blocking
54% display ads
non-viewable
2
DVR, channel
change,
streaming
Page flip, jump
to editorial
Station change,
streaming,
library
Audience
1-to-many;
growing
1-to-1;
growing
1-to-many;
shrinking
1-to-many;
shrinking
1-to-many;
shrinking
Medium sight, motion
sight, motion,
sound
sight, motion,
sound
sight sound
Measurement
Today: TAB
Future: OUT’s
real-time
location-based
audience/actions
audience/actions ratings survey circulation data ratings survey
Cost (CPM)
1
$4 $5 $19 $23 $13
Source: 1) OAAA.org; 2) OAAA.org / comScore Inc.
26. 26
OUT Stable & Diverse Tenants
% of OUT Total US Revenues
Over 20,000 U.S. customers, none of which represented more than 2.2% of 2015 U.S. revenue
Notes: Van Wagner assets acquired October 1, 2014. Numbers may not sum due to rounding. Reflects current category
presentation.
2007 2008 2009 2010 2011 2012 2013 2014 2015 Chg '07-'15
Retail 9% 9% 9% 9% 9% 10% 10% 10% 10% 0
Television 5 6 5 7 7 7 8 8 8 2
Health/Pharma 5 5 6 6 7 7 7 8 7 3
Entertainment 7 6 6 6 6 7 7 7 7 (0)
Professional Services 4 4 5 5 6 5 6 6 6 2
Restaurants/Fast Food 5 6 7 7 7 7 7 6 6 0
Telecom/Utilities 9 8 8 7 7 7 6 5 6 (3)
Computers/Internet 1 1 1 2 2 3 3 4 5 4
Financial Services 7 7 7 7 7 6 5 5 5 (1)
Auto 8 7 6 5 5 5 5 5 5 (3)
Movies 4 5 4 5 5 5 4 4 5 1
Casinos/Lottery 4 5 5 5 5 5 5 5 4 (0)
Travel/Leisure 5 5 5 5 5 5 4 4 4 (1)
Education 2 3 4 4 5 4 5 4 4 1
Beer/Liquor 5 5 5 5 5 4 5 4 4 (1)
Food/Beverage 2 3 4 3 3 3 3 3 3 1
Real Estate 7 4 3 2 2 1 1 2 2 (5)
Govt/Political 1 1 1 2 1 2 2 2 2 1
Household Products 1 1 1 1 1 1 1 1 1 0
Other 8 8 9 8 8 7 7 7 6 (2)
Total 100% 100% 100% 100% 100% 100% 100% 100% 100%
TV, Ent. & Movies 20% 19% 19% 19% 19% 19% 19% 18% 17% (3)
27. 27
OUT Repeat Clients/Tenants
Longstanding
relationship
Multiple markets
& formats
Integral to launch
strategy
2007
2009
2011
2013
2014
2015
iPod iPad 2 iPhone 6/Watch
Apple TViPhone 5CiPod Touch
30. 30
Performance Improvement
Invest in key
strategic locations:
• High Traffic Areas
• Transit Centers
• Retail Districts
• Iconic Locations
Sales and
operational
incentives aligned
to maximize yield
and profitability
Ongoing cost
optimization
Pyramid of Quality – Audience, DMA, Location
31. OUT
21%
Other
35%
JCD
4%
CCO
19%
LAMR
21%
31
Acquisitions
2015 U.S. Revenues 1
U.S. market is
highly fragmented
Strategic
acquisition
opportunities:
• Complementary assets
in Top 25 DMAs
• “Other” category
includes approximately
125 smaller,
independent U.S.
companies
• International
Notes: 1) OAAA; Company reports.
32. 32
Cell Site Leasing
Leasing empty
space on OUT
assets to wireless
carriers
• 25,000 potential sites
• 1-3 wireless carriers per
site
• Recurring, monthly rent
under long-term lease
• No capital expenditures
Small-scale
equipment
Carriers
responsible for
providing backhaul
33. $63.3
$57.7
$23.4
$14.7
$7.1
(16%)
(14%)
(12%)
(10%)
(8%)
(6%)
(4%)
(2%)
–
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
– 5% 10% 15% 20% 25% 30% 35% 40% 45%
GrowthRateYr/Yr
U.S. Advertising Market Share
US Media Mix
1
($Billions)
OOH
Radio
Print
TV
Internet
33
Market Share Shift
Create unique
new products and
processes to
drive media
allocation to OUT
OUTFRONT’s ON
Smart Media:
• Mobile ad integration
• Introducing advanced
hardware with high-
resolution, full motion
video
• Building data
management platform
(DMP) with location-
based audience data
and agency workflow
automation
Notes: 1) MAGNA GLOBAL, 2015E.
34. 34
OUTFRONT Mobile
Location-based
mobile ad tied to
OOH campaign
• Within a geo-fenced
area, relevant mobile
ads are served to
consumers who pass an
OUT display
Drives strong
secondary action
rates
Advertiser
measurement &
analytics
Launched 4Q15
35. 35
Data Management Platform
Consumer travel
patterns and
behavior in the
physical world
OUT’s proprietary
Data Management
Platform will
associate the data
to make it
relational and
contextual
Audience profiles
created from data
attributes
Audiences will be
mapped to OUT
assets by day and
time
OUT’s Salesforce
and Ad Agency
buying platform for
workflow
automation
Common currency
of Impressions by
Audience and
CPM by Product
Attributes
$
36. 36
Advanced Digital Displays
A new screen for
digital advertisers
Smart media
displays will offer:
• Engaging, full-motion,
high-definition video
• App-enablement
• Synchronization
• Livestream feeds
• Remote advertiser
content control
38. 38
Revenue Type & Location
Strategic Locations in Top Markets
Canada Mexico South America
Total Revenues1
Notes: 1) Twelve months ended December 31, 2015; 2) Announced on November 2, 2015.
72%
28%
Billboard
Transit
64%
27%
8%
US Billboard
US Transit
Intl Billboard
Intl Transit
Sale Pending2
39. 39
Revenues
US is 91% of total1
and is composed
of:
• Local 54%
• National 46%
US is 70% billboard
and 30% transit1
International is 86%
billboard and 14%
transit
1
$921 $972 $1,084
$373 $382
$430
$1,294 $1,354
$1,514
2013 2014 2015
Billboard
Transit
Notes: $ in millions. 1) Twelve months ended December 31, 2015. Van Wagner assets acquired October 1, 2014.
40. 20.6% 21.6% 24.4%
15.2% 15.1%
15.0%
17.3% 17.0%
15.6%
13.3% 13.4% 13.6%
1.6%
2.0%
2.5%
68.5%
70.2% 72.1%
2013 2014 2015
40
Expenses
Expense trend
reflects:
• Incremental stand-alone
public company costs
• Van Wagner acquisition
Oct. 1, 2014 with higher
urban lease costs
• Strategic business
development expenses
Different margin
profiles1
:
• Billboard lease expense
= 34% of billboard
revenue
• Transit franchise
expense = 63% of transit
revenues
Approximately 70%
of costs are fixed
Notes: Expenses as a percent of Total Revenues. SG&A excludes Corporate and Stock-Based Compensation, which are shown
separately. Expenses reflect Van Wagner assets acquired on October 1, 2014. 2013 and 2014 figures reflect revenue and
expense reclassification to conform with current reporting initiated in 1Q15; 1) For the twelve months ending December 30, 2015.
41. 41
Adjusted OIBDA
Recent margin
performance
reflects:
• Weakness in higher-
margin US billboard
results
• Strategic business
development expenses
Expect improved
billboard revenue to
drive margin
expansion
Notes: $ in millions. See Appendix for Non-GAAP reconciliations. Van Wagner assets acquired October 1, 2014.
$415 $413 $438
32.1% 30.5%
28.9%
2013 2014 2015
Adj. OIBDA
Adj. OIBDA Margin
42. 42
Capital Expenditures
Low overall capital
intensity
Maintenance is less
than half of total
capex1
Stringent ROI
thresholds on
digital & growth
Transit capex is
generally nominal
Notes: $ in millions. 1) LTM December 31, 2015; total capital expenditures as a percentage of total revenues. Van Wagner
assets acquired October 1, 2014. Previously reported amounts have been revised to conform to the current presentation.
1.7%
2.2%
3.9%
3.4%
3.8%
4.7% 4.7%
3.9%
2010 2011 2012 2013 2014 2015
Capex as a % of Total Revenue
Maintenance Growth Total
43. 43
Cash Flow & Dividend
Flow-through from
Adjusted OIBDA is
largest cash flow
driver
Dividend policy in
line with REIT
structure
• 90% required payout of
QRS taxable income as
dividend
• OUT expects a payout of
100%+
Solid dividend
1
payout ratios:
• 71% of LTM AFFO
2
• 80% of LTM FCF
2
Notes: $ in millions. 1) Excludes “top-up” special dividend paid in March 2015; 2) LTM regular cash dividends divided by
LTM Free Cash Flow (“FCF”) or Adjusted Funds From Operations (“AFFO”), as applicable; see Appendix for Non-GAAP
reconciliations.
$267
$234
$188
2015
AFFO
Free Cash Flow
Regular Cash Dividends
44. 44
Balance Sheet & Liquidity
2015
Cash $101.6
Total Cash & Equivalents $101.6
Debt
$425M Revolving Credit 2019 0.0
Sr. Secured Term Loan 2021 748.6
5.250% Sr. Notes 2022 549.4
5.625% Sr. Notes 2024 503.4
5.875% Sr. Notes 2025 450.0
Other 0.3
Total Debt $2,251.7
Weighted Average Cost of Debt 4.7%
Net Leverage Ratio
1
4.8x
$495.4M of liquidity
2
• $101.6M cash
• $393.8M availability on
$425.0M revolving credit
facility, net of $31.2M
letters of credit
outstanding
Attractively priced
debt structure
• 4.7% WACD
• 67% fixed, 33% floating
Leverage target
range of 3.5x-4.0x
net debt
Notes: $ Millions unless per share or otherwise stated. 1) Calculated as Total Debt less Total Cash & Equivalents divided
by LTM “Consolidated EBITDA” as defined in the Credit Agreement governing the Company’s senior credit facilities; 2) As
of December 31, 2015.
46. 46
Non-GAAP Reconciliations
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 and define “Adjusted OIBDA” as operating income before depreciation,
amortization, net (gains) losses on dispositions, stock-based compensation, restructuring charges and costs related to our acquisition of certain outdoor advertising businesses of
Van Wagner Communications, LLC (the “Acquisition”). 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. We calculate
Funds from Operations (“FFO”) in accordance with the definition established by the National Association of Real Estate Investment Trusts (“NAREIT”). FFO reflects net income
adjusted to exclude gains and losses from the sale of real estate assets, depreciation and amortization of real estate assets and amortization of direct lease acquisition costs, as
well as the same adjustments for our equity based investments, as applicable. We calculate Adjusted FFO (“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 costs related to the Acquisition
and restructuring charges, as well as certain non-cash items, including non-real estate depreciation and amortization, deferred income taxes, stock-based compensation expense,
accretion expense, the non-cash effect of straight-line rent and amortization of deferred financing costs. 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 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,
AFFO, and related dividend payout ratios, 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. We calculate Free Cash Flow (“FCF”) as net cash flow provided by operating activities less capital expenditures plus
cash taxes related to our REIT conversion. We use FCF for managing our business, including evaluating cash available for dividends, debt service and strategic investments and
acquisitions. 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. It is management’s opinion that this
supplemental measure provides users of our financial data with an important perspective on our operating performance and also makes it easier to compare our results to other
companies in our industry, as well as to REITs. Our management believes these adjusted presentations are useful in evaluating our business because they allow users of our
financial data to compare our operating performance for the periods presented, taking into account certain significant costs arising as a result of our separation from CBS
Corporation and the Acquisition, as well as the REIT tax treatment that would have applied had we been operating as a REIT for the periods presented. Since Adjusted OIBDA,
Adjusted OIBDA margin, FFO, AFFO, FCF and related dividend payout ratios, are not measures calculated in accordance with GAAP, they should not be considered in isolation of,
or as a substitute for, operating income, net income and net cash flow provided by operating activities, 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.
47. 47
Reconciliations
($ in millions)
December 31,
2013
December 31,
2014
December 31,
2015
December 31,
2014
March 31,
2015
June 30,
2015
September 30,
2015
December 31,
2015
Revenues
Billboard 920.9$ 971.5$ 1,084.3$ 282.5$ 246.9$ 280.1$ 278.3$ 279.0$
Transit & Other 373.1 382.3 429.5 112.5 97.0 104.6 108.4 119.5
Total revenues 1,294.0$ 1,353.8$ 1,513.8$ 395.0$ 395.0$ 395.0$ 395.0$ 395.0$
US Billboard 780.0 838.4 969.8 249.2 221.1 246.9 250.3 251.5
US Transit & Other 350.1 360.4 410.5 107.2 92.8 99.2 103.6 114.9
US Total Revenues 1,130.1 1,198.8 1,380.3 356.4 313.9 346.1 353.9 366.4
INTL Billboard 140.9 133.1 114.5 33.3 25.8 33.2 28.0 27.5
INTL Transit & Other 23.0 21.9 19.0 5.3 4.2 5.4 4.8 4.6
INTL Total Revenues 163.9 155.0 133.5 38.6 30.0 38.6 32.8 32.1
Operating income 238.8$ 183.1$ 86.4$ 50.5$ 26.6$ 54.6$ 52.7$ (47.5)$
Restructuring charges — 9.8 2.6 3.6 0.6 2. — —
Acquisitions costs — 10.4 — 9.0 — — — —
Loss on real estate assets held for sale — — 103.6 — — — — 103.6
Net (gain) loss on dispositions (27.3) (2.5) 0.7 (1.1) (0.3) 0.9 — 0.1
Depreciation & Amortization 195.8 202.2 229.1 55.6 56.5 57.2 57.5 57.9
Stock-based compensation 7.5 10.4 15.2 3.0 3.6 4.4 3.7 3.5
Adjusted OIBDA 414.8$ 413.4$ 437.6$ 120.6$ 87.0$ 119.1$ 113.9$ 117.6$
Adjusted OIBDA margin 32.1% 30.5% 28.9% 30.5% 22.0% 30.2% 28.8% 29.8%
Net income 143.5$ 306.9$ (29.4)$ 27.8$ 1.1$ 22.2$ 21.2$ (73.9)$
Depreciation of billboard advertising structures 97.5 99.6 104.9 26.0 26.8 25.8 26.1 26.2
Amortization of real estate related intangible
assets 43.2 44.9 55.8 12.7 14.4 14.2 13.9 13.3
Amortization of direct lease acquisition costs 30.9 33.8 36.3 9.6 7.5 9.2 9.4 10.2
Loss on real estate assets held for sale — — 103.6 — — — — —
Net (gain) loss on disposition of billboard
advertising structures, net of tax (16.4) (2.1) 0.3 (1.7) (0.3) 0.5 — 103.7
Adjustment related to equity-based investments 0.8 0.8 0.7 0.2 0.4 — 0.2 0.1
FFO 299.5$ 483.9$ 272.2$ 74.6$ 49.9$ 71.9$ 70.8$ 79.6$
Three Months EndedTwelve Months Ended
48. 48
Reconciliations
Year Ended December 31, 2015
(in millions, except percentages) U.S. International Corporate Consolidated
Revenues:
Billboard $ 969.8 $ 114.5 $ — $ 1,084.3
Transit and other 410.5 19.0 — 429.5
Total revenues $ 1,380.3 $ 133.5 $ — $ 1,513.8
Organic revenues(b)
Billboard $ 790.5 $ 114.5 $ — $ 905.0
Transit and other 391.3 19.0 — 410.3
Total organic revenues(b)
$ 1,181.8 $ 133.5 $ — $ 1,315.3
Non-organic revenues(c)
:
Billboard $ 179.3 $ — $ — $ 179.3
Transit and other 19.2 — — 19.2
Total non-organic revenues(c)
$ 198.5 $ — $ — $ 198.5
Operating income (loss) $ 251.3 $ (111.9) $ (53.0) $ 86.4
Restructuring charges 2.6 — — 2.6
Loss on real estate assets held for sale — 103.6 — 103.6
Net loss on dispositions 0.6 0.1 — 0.7
Depreciation and amortization 205.1 24.0 — 229.1
Stock-based compensation — — 15.2 15.2
Adjusted OIBDA $ 459.6 $ 15.8 $ (37.8) $ 437.6
Adjusted OIBDA margin 33.3 % 11.8 % * 28.9 %
Capital expenditures $ 53.3 $ 5.9 $ — $ 59.2
49. 49
Reconciliations
Notes: a) Adjustment to reflect costs related to the Acquisition.
($ in millions)
December 31,
2013
December 31,
2014
December 31,
2015
December 31,
2014
March 31,
2015
June 30,
2015
September 30,
2015
December 31,
2015
Adjusted OIBDA 414.8$ 413.4$ 437.6$ 120.6$ 87.0$ 119.1$ 113.9$ 117.6$
Interest expenses, net of deferred financing fees — (72.7) (108.5) (26.1) (26.3) (27.5) (27.4) (27.3)
Current taxes (g)
(116.) (44.9) (8.) (2.) 1. (5.9) (3.1) —
REIT Tax Adjustment(h)
— 40.8 — — — — — —
Cash paid for direct lease acquisition costs (31.6) (32.8) (35.9) (8.5) (7.9) (9.2) (9.4) (9.4)
Maintenance capital expenditures (23.7) (23.3) (25.6) (7.9) (6.5) (6.6) (7.4) (5.1)
Incremental stand-alone costs, net of tax (i)
— (6) — — — — — —
Equity earnings of investee companies, net of tax 2.5 2.9 4.8 1.5 0.8 1.1 1.7 1.2
Adjustment related to equity-based investments 0.8 0.8 0.7 0.2 0.4 — 0.2 0.1
Non-cash effect of straight-line rent 1.2 (0.2) (0.3) 0.5 0.4 (0.1) 0.4 (1.0)
Accretion expense 2.2 2.3 2.5 0.6 0.6 0.6 0.7 0.6
Other income (expense) 9.7 (6.1) (0.5) (0.1) — (0.1) (0.4) —
AFFO on a REIT-comparable basis 259.9$ 274.5$ 266.8$ 78.8$ 49.5$ 71.4$ 69.2$ 76.7$
Three Months EndedTwelve Months Ended
50. 50
Reconciliations
Three Months Ended Year Ended
December 31, December 31,
(in millions, except per share amounts) 2015 2014 2015 2014
Net income (loss) $ (73.9) $ 27.8 $ (29.4) $ 306.9
Depreciation of billboard advertising structures 26.2 26.0 104.9 99.6
Amortization of real estate related intangible assets 13.3 12.7 55.8 44.9
Amortization of direct lease acquisition costs 10.2 9.6 36.3 33.8
Loss on real estate assets held for sale 103.6 — 103.6 —
Net (gain) loss on disposition of billboard advertising
structures, net of tax 0.1 (1.7) 0.3 (2.1)
Adjustment related to equity-based investments 0.1 0.2 0.7 0.8
FFO 79.6 74.6 272.2 483.9
Restructuring charges, net of tax — 3.0 2.0 8.6
Acquisition costs, net of tax(i) — 7.8 — 9.1
Income tax benefit from reversal of deferred tax
liabilities due to REIT conversion(k) — (3.3) — (235.6)
Incremental stand-alone costs, net of tax(h) — (0.3) — (5.7)
Adjustment to interest expense, net of tax(j)
— — — 1.4
REIT tax adjustment(k)
— — — 25.3
FFO on a REIT-comparable basis $ 79.6 $ 81.8 $ 274.2 $ 287.0
FFO per weighted average share outstanding(l):
Basic $ 0.58 $ 0.62 $ 1.98 $ 4.23
Diluted $ 0.58 $ 0.62 $ 1.98 $ 4.22
FFO on a REIT-comparable basis, per adjusted
weighted average share(a)(m)(n)
:
Basic $ 0.58 $ 0.60 $ 2.00 $ 2.10
Diluted $ 0.58 $ 0.60 $ 2.00 $ 2.09
FFO $ 79.6 $ 74.6 $ 272.2 $ 483.9
Adjustment for deferred income taxes (1.6) (3.1) (1.7) (249.5)
Cash paid for direct lease acquisition costs (9.4) (8.5) (35.9) (32.8)
Maintenance capital expenditures (5.1) (7.9) (25.6) (23.3)
Restructuring charges - severance, net of tax — 1.3 2.0 3.7
Acquisition costs, net of tax(i) — 7.8 — 9.1
Other depreciation 2.4 1.9 8.8 7.6
Other amortization 5.8 5.4 23.3 16.3
Stock-based compensation 3.5 5.1 15.2 16.0
Non-cash effect of straight-line rent (1.0) 0.5 (0.3) (0.2)
Accretion expense 0.6 0.6 2.5 2.3
Amortization of deferred financing costs 1.9 1.4 6.3 12.1
AFFO 76.7 79.1 266.8 245.2
Incremental stand-alone costs, net of tax(h) — (0.3) — (5.7)
Adjustment to interest expense, net of tax(j)
— — — 1.4
Incremental amortization of deferred financing costs — — — (7.2)
REIT tax adjustment(k)
— — — 40.8
AFFO on a REIT-comparable basis $ 76.7 $ 78.8 $ 266.8 $ 274.5
AFFO per weighted average share outstanding(l):
Basic $ 0.56 $ 0.66 $ 1.94 $ 2.15
Diluted $ 0.56 $ 0.66 $ 1.94 $ 2.14
AFFO on a REIT-comparable basis, per adjusted
weighted average share(a)(m)(n)
:
Basic $ 0.56 $ 0.58 $ 1.94 $ 2.01
Diluted $ 0.56 $ 0.57 $ 1.94 $ 2.00
51. 51
Reconciliations
Net cash flow provided by operating activities $ 293.1
Capital expenditures (59.2)
Free Cash Flow $ 233.9
2015
($ in millions)
December 31,
Twelve
Months Ended
52. 52
Reconciliations
PRIOR PERIOD PRESENTATION CONFORMS TO CURRENT REPORTING CLASSIFICATIONS.
(a) Adjusted weighted average shares include the 23.0 million shares issued in connection with the IPO, the 97.0 million shares
outstanding after our stock split, and the 16.5 millionshares issued as a special dividend in connection with our conversion to a REIT
for basic EPS. Adjusted weighted average shares for diluted EPS also include dilutive potential shares from grants of RSUs, PRSUs,
and stock options.
(b) Organic revenues exclude revenues associated with significant acquisitions and divestitures, revenues associated with business lines
we no longer operate, and the impact of foreign currency exchange rates ("non-organic revenues"). For the three months ended
December 31, 2015 and 2014 only, organic revenues includes revenues generated by the outdoor advertising businesses of Van
Wagner Communications, LLC, which we acquired on October 1, 2014, and therefore owned in both periods.
(c) Includes $0.8 million for the three months ended December 31, 2015, and $198.5 million for the year ended December 31, 2015,
primarily related to acquisitions. Includes $13.8 million for the three months ended December31, 2014, and $86.5 million for the year
ended December 31, 2014, primarily related to the impact of foreign currency exchange rates.
(d) Revenues on a constant dollar basis are calculated as reported revenues excluding the impact of foreign currency exchange rates
between periods.
(e) Adjustment to exclude net (gain) loss on dispositions.
(f) Adjustment to exclude restructuring charges.
(g) Adjustment to exclude loss on real estate assets held for sale.
(h) Adjustment to reflect incremental costs to operate as a stand-alone company at the same level as 2015.
(i) Adjustment to reflect costs related to the Acquisition.
(j) Adjustment to reflect interest expense, net of tax, to include one month of amortization of deferred financing costs incurredin 2015
relating to our entry into the Term Loan, the $425.0 million revolving credit facility and the issuance of $800.0 million of senior
unsecured notes on January 31, 2014, and amortization of deferred financing costs incurred in 2014, related to an unused lender
commitment to provide a senior unsecured bridge term loan facilityassociated with the Acquisition.
(k) Adjustment to reflect tax balances as if we had been operating as a REIT for all respective periods.
(l) Weighted average shares outstanding for basic and diluted EPS was 137.6 million shares for the three months ended December 31,
2015. Weighted average shares outstanding for basic EPS was 120.2 million shares and was 120.7 million shares for diluted EPSfor
the three months ended December 31, 2014. Weighted average shares outstanding for basic and diluted EPS was 137.3 million
shares for the year ended December 31, 2015. Weighted average shares outstanding for basic EPS was 114.3 million shares and was
114.8 million shares for diluted EPS for the year ended December31, 2014.
(m) Adjusted weighted average shares for basic EPS reflects 137.6 million shares and for diluted EPS, reflects 137.6 million shares for the
three months ended December 31, 2015. Adjusted weighted average shares for basic EPS reflects 136.6 million shares and for
diluted EPS, reflects 137.1 million shares for the three months ended December 31, 2014. Adjusted weighted average shares for
basic EPS reflects 137.3 million shares and for diluted EPS, reflects 137.3 million shares for the year ended December31, 2015.
Adjusted weighted average shares for basic EPS reflects 136.5 million shares and for diluted EPS, reflects 137.0 million shares for the
year ended December 31, 2014. Dilutive EPS includes dilutive potential shares from grants of RSUs, PRSUs, and stock options, as
applicable.
(n) On March 14, 2014, our board of directors declared a 970,000 to 1 stock split. As a result of the stock split, the 100 shares of our
common stock then outstanding were converted into 97,000,000 shares of our common stock. The effects of the stock split havebeen
applied retroactively for EPS purposes.
* Calculation not meaningful
53. About OUTFRONT Media Inc.
OUTFRONT Media Inc. (NYSE: OUT)
is one of the largest out-of-home
media companies in the United States
and Canada. With a diverse asset
portfolio of billboard, transit, and
digital properties in prime, iconic
locations, OUTFRONT Media delivers
select audiences and location-based
targeting for advertisers, as well as
engaging ways to connect with
increasingly mobile consumers.
www.OUTFRONTmedia.com
investor@OUTFRONTmedia.com
