Technology
OUTFRONT Media Reports Third Quarter 2024 Results
Published
2 days agoon
By
Revenues of $451.9 million
Operating income of $71.3 million
Net income attributable to OUTFRONT Media Inc. of $34.6 million
Adjusted OIBDA of $117.1 million
AFFO attributable to OUTFRONT Media Inc. of $80.8 million
Special dividend of $0.75 per share, payable December 31, 2024
NEW YORK, Nov. 12, 2024 /PRNewswire/ — OUTFRONT Media Inc. (NYSE: OUT) today reported results for the quarter ended September 30, 2024.
“The strength of our U.S. Media business accelerated slightly in the third quarter, with 5% revenue growth and 11% Adjusted OIBDA growth,” said Jeremy Male, Chairman and Chief Executive Officer of OUTFRONT Media. “2024 has been a solid year thus far, and we are on track to achieve the high-end of our full-year Consolidated AFFO growth target.”
Three Months Ended
September 30,
Nine Months Ended
September 30,
$ in Millions, except per share amounts
2024
2023
2024
2023
Revenues
$451.9
$454.8
$1,337.7
$1,319.4
Organic revenues
451.9
430.5
1,302.8
1,253.6
Operating income (loss)
71.3
58.6
314.4
(364.2)
Adjusted OIBDA
117.1
116.9
309.6
304.5
Net income (loss) before allocation to redeemable
and non-redeemable noncontrolling interests
34.8
16.7
184.7
(485.2)
Net income (loss)1
34.6
17.0
184.2
(485.6)
Net income (loss) per share1,2,3
$0.19
$0.09
$1.06
($2.98)
Funds From Operations (FFO)1
82.7
73.4
188.8
35.9
Adjusted FFO (AFFO)1
80.8
75.7
188.8
167.7
Shares outstanding3
167.2
165.2
174.4
164.9
Notes: See exhibits for reconciliations of non-GAAP financial measures; 1) 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; 2) References to “per share” mean per common share for diluted earnings per weighted average share; 3) Diluted weighted average shares outstanding.
Third Quarter 2024 Results
On June 7, 2024, we sold all of our equity interests in Outdoor Systems Americas ULC and its subsidiaries (the “Transaction”), which hold all of the assets of our outdoor advertising business in Canada (the “Canadian Business”).
In connection with the Transaction, we received C$410.0 million in cash, which is subject to certain purchase price adjustments. The following reported results include the historical results of the Canadian Business through the date of sale.
Consolidated
Reported revenues of $451.9 million decreased $2.9 million, or 0.6%, for the third quarter of 2024 as compared to the same prior-year period, due primarily to the impact of the Transaction. Organic revenues of $451.9 million increased $21.4 million, or 5.0%.
Reported billboard revenues of $360.6 million decreased $3.0 million, or 0.8%, compared to the same prior-year period, due primarily to the impact of the Transaction, partially offset by an increase in average revenue per display (yield), driven by the impact of programmatic and direct sale advertising platforms on digital billboard revenues, the impact of new and lost billboards in the period, including insignificant acquisitions, and higher proceeds from condemnations. Organic billboard revenues, which exclude revenues associated with the impact of the Transaction, of $360.6 million increased $16.6 million, or 4.8%, due primarily to an increase in average revenue per display (yield), driven by the impact of programmatic and direct sale advertising platforms on digital billboard revenues, the impact of new and lost billboards in the period, including insignificant acquisitions, and higher proceeds from condemnations.
Reported transit and other revenues of $91.3 million increased $0.1 million, or 0.1%, compared to the same prior-year period, due primarily to an increase in average revenue per display (yield), partially offset by the impact of the Transaction and the impact of new and lost transit franchise contracts in the period. Organic transit and other revenues, which exclude revenues associated with the impact of the Transaction, of $91.3 million increased $4.8 million, or 5.5%, due primarily to an increase in average revenue per display (yield), partially offset by the impact of new and lost transit franchise contracts in the period.
Total operating expenses of $233.1 million decreased $6.7 million, or 2.8%, compared to the same prior-year period, due primarily to the impact of the Transaction, lower variable property lease expenses, the net impact of new and lost transit franchise expenses, and lower posting, maintenance and other expenses, partially offset by higher guaranteed minimum annual payments to the New York Metropolitan Transportation Authority (the “MTA”) and the impact of new locations, including through acquisitions. Selling, General and Administrative expenses (“SG&A”) of $108.7 million increased $3.4 million, or 3.2%, compared to the same prior-year period, primarily due to higher compensation-related expenses, including salaries and commissions, the impact of market fluctuations on an unfunded equity-linked retirement plan offered by the Company to certain employees and higher professional fees, as a result of a management consulting project, partially offset by the impact of the Transaction and a lower provision for doubtful accounts.
Adjusted OIBDA of $117.1 million increased $0.2 million, or 0.2%, compared to the same prior-year period.
Segment Results
U.S. Media
Reported revenues of $451.5 million increased $22.8 million, or 5.3%, due primarily to higher transit and other revenues, as well as higher billboard revenues. Billboard revenues increased 4.8% and Transit and other revenues increased 7.3%.
Operating expenses increased $7.1 million, or 3.1%, primarily driven by higher guaranteed minimum annual payments to the MTA, higher compensation-related expenses and higher posting and rotation costs, partially offset by lower variable property lease expenses and the net impact of new and lost transit franchise contracts. SG&A expenses increased by $2.4 million, or 2.9%, primarily driven by higher compensation-related expenses, partially offset by lower professional fees and a lower provision for doubtful accounts.
Adjusted OIBDA of $133.5 million increased $13.3 million, or 11.1%, compared to the same prior-year period.
Other
Reported revenues of $0.4 million decreased $25.7 million, or 98.5%, primarily driven by the impact of the Transaction and a decline in third-party digital equipment sales. Organic revenues decreased $1.4 million, or 77.8%.
Operating expenses decreased $13.8 million, or 97.2%, due primarily to the impact of the Transaction, as well as lower costs related to third-party digital equipment sales. SG&A expenses decreased $5.5 million, or 98.2%, driven primarily by the impact of the Transaction.
Adjusted OIBDA was a loss of $0.1 million, compared to Adjusted OIBDA of $6.3 million in the same prior-year period.
Corporate
Corporate costs, excluding stock-based compensation, increased $6.7 million, or 69.8%, to $16.3 million, due primarily to higher professional fees, as a result of a management consulting project, higher compensation-related expenses, and the impact of market fluctuations on an unfunded equity-linked retirement plan offered by the Company to certain employees.
Impairment Charges
As a result of negative aggregate cash flow forecasts related to our MTA asset group, we performed quarterly impairment analyses on our MTA asset group during the three months ended March 31, 2024 and June 30, 2024, and recorded impairment charges of $9.1 million and $8.8 million, respectively, in those periods for a total of $17.9 million in the six months ended June 30, 2024. The impairment charges recorded during 2024 represented additional MTA equipment deployment cost spending during the six months ended June 30, 2024. Our analysis performed as of September 30, 2024, resulted in positive aggregate cash flows in excess of the carrying value of our MTA asset group. As such, no impairment charges were recorded during the three months ended September 30, 2024. In the three months ended September 30, 2023, we recorded impairment charges of $12.1 million, representing additional MTA equipment deployment costs spending during the quarter, and in the nine months ended September 30, 2023, we recorded impairment charges of $523.5 million, primarily representing $455.2 million of impairment charges related to our MTA asset group and an impairment charge of $47.6 million representing the entire goodwill balance associated with our U.S. Transit and Other reporting unit.
Interest Expense
Net interest expense in the third quarter of 2024 was $37.1 million, including amortization of deferred financing costs of $1.5 million, as compared to $40.2 million, including amortization of deferred financing costs of $1.6 million, in the same prior-year period. The decrease was due primarily to a lower debt balance, partially offset by higher interest rates. The weighted average cost of debt was 5.5% as of both September 30, 2024 and September 30, 2023.
Income Taxes
The benefit for income taxes was $0.2 million in the third quarter of 2024 compared to a provision for income taxes of $1.4 million in the same prior-year period, due primarily to the impact of the Transaction. Cash paid for income taxes in the nine months ended September 30, 2024 was $11.4 million.
Net Income Attributable to OUTFRONT Media Inc.
Net income attributable to OUTFRONT Media Inc. increased $17.6 million, or 103.5% in the third quarter of 2024 compared to the same prior-year period. Diluted weighted average shares outstanding were 167.2 million for the third quarter of 2024 compared to 165.2 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 $0.19 in the third quarter of 2024 compared to $0.09 in the same prior-year period.
FFO & AFFO
FFO attributable to OUTFRONT Media Inc. increased $9.3 million, or 12.7%, in the third quarter of 2024, compared to the same prior-year period, due primarily to lower impairment charges on non-real estate assets and lower interest expense. AFFO attributable to OUTFRONT Media Inc. increased $5.1 million, or 6.7%, in the third quarter of 2024, compared to the same prior-year period, due primarily to lower maintenance capital expenditures.
Cash Flow & Capital Expenditures
Net cash flow provided by operating activities increased $25.5 million, or 17.1%, for the nine months ended September 30, 2024, compared to the same prior-year period, due primarily to a decrease in prepaid MTA equipment deployment costs and a smaller use of cash related to accounts payable and accrued expenses driven by lower incentive compensation payments made in 2024, partially offset by the timing of receivables and lower net income in 2024 compared to 2023, due to increased SG&A expenses and higher interest expense. Total capital expenditures decreased $3.7 million, or 5.8%, to $59.9 million for the nine months ended September 30, 2024, compared to the same prior-year period.
Dividends
In the nine months ended September 30, 2024, we paid cash dividends of $156.4 million, including $149.8 million on our common stock and vested restricted share units granted to employees and $6.6 million on our Series A Convertible Perpetual Preferred Stock (the “Series A Preferred Stock”). We announced on November 12, 2024, that our board of directors has approved a special dividend on our common stock of $0.75 per share payable on December 31, 2024, to stockholders of record at the close of business on November 15, 2024. Approximately $0.30 per share will be paid in cash (exclusive of cash paid in lieu of fractional shares) and approximately $0.45 per share will be paid in shares of our common stock. Stockholders will have the option to elect to receive their special dividend in all cash or all stock, however the aggregate amount of cash to be distributed will be equal to approximately $49.8 million, with the balance of the special dividend payable in the form of our common stock.
Balance Sheet and Liquidity
As of September 30, 2024, our liquidity position included unrestricted cash of $28.0 million and $494.3 million of availability under our $500.0 million revolving credit facility, net of $5.7 million of issued letters of credit against the letter of credit facility sublimit under the revolving credit facility, and $110.0 of additional availability under our accounts receivable securitization facility. During the three months ended September 30, 2024, 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, 2024, 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 approximately 7.8 million shares. Total indebtedness as of September 30, 2024 was $2.5 billion, excluding $18.1 million of deferred financing costs, and includes a $400.0 million term loan, $1.7 billion of senior unsecured notes, $450.0 million of senior secured notes, and $40.0 million of borrowings under our accounts receivable securitization facility.
Conference Call
We will host a conference call to discuss the results on November 12, 2024, at 8:30 a.m. Eastern Time. The conference call numbers are 833-470-1428 (U.S. callers) and 404-975-4839 (International callers) and the passcode for both is 482452. Live and replay versions of the conference call will be webcast in the Investor Relations section of our website, www.outfront.com.
Supplemental Materials
In addition to this press release, we have provided a supplemental investor presentation which can be viewed on our website, www.outfront.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 the United States. Through its technology platform, OUTFRONT will fundamentally change the ways advertisers engage audiences on-the-go.
Contacts:
Investors
Media
Stephan Bisson
Courtney Richards
Investor Relations
PR & Events Specialist
(212) 297-6573
(646) 876-9404
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 the impact of the Transaction 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 impairment 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, impairment charges, depreciation and amortization of real estate assets, amortization of direct lease acquisition costs and the same adjustments for our equity-based investments and redeemable and non-redeemable noncontrolling 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 losses on extinguishment of debt, as well as certain non-cash items, including non-real estate depreciation and amortization, impairment charges on 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 redeemable and non-redeemable noncontrolling interests, along with 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. 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; the severity and duration of pandemics, and the impact on our business, financial condition and results of operations; competition; government regulation; our ability to operate our digital display platform; 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; 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; expectations relating to environmental, social and governance considerations; 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 investments or business 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, 2023, filed with the SEC on February 22, 2024. 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.
Revision of Previously Issued Financial Information
In the third quarter of 2024, we identified an error related to the accounting for noncontrolling interests in our consolidated joint ventures, which include buy/sell clauses. The error related to the appropriate classification of these noncontrolling interests as redeemable and recognition of these redeemable noncontrolling interests at the maximum redemption value for each period. The Company assessed the materiality of the error on its previously issued financial statements in accordance with the SEC’s Staff Accounting Bulletin (“SAB”) No. 99 and SAB No. 108 and concluded that the amount was not material, individually or in the aggregate, to any of its previously issued financial statements, but would have been material to certain of our financial statements in the current period. Accordingly, we have revised our previously issued financial information. The impact of correcting the error related to the classification of redeemable noncontrolling interests is included on the affected line items of our Consolidated Statement of Financial Position as of December 31, 2023, which is included in the exhibits below.
As previously disclosed, for the three months ended March 31, 2023, the Company recorded an out-of-period adjustment relating to variable billboard property lease costs and accrued lease and franchise costs in 2022, resulting in a $5.2 million increase in operating expenses for the three months ended March 31, 2023. The Company assessed the materiality of the amount reflected in this adjustment on its previously issued financial statements in accordance with the SEC’s SAB No. 99 and SAB No. 108 and concluded that the amount was not material, individually or in the aggregate, to any of its previously issued financial statements. In the third quarter of 2024, we voluntarily revised our previously issued financial information to reflect the out-of-period adjustment amount. The impact of correcting the error related to variable lease costs is included on the affected line items of our Consolidated Statements of Operations for the nine months ended September 30, 2023, which is included in the exhibits below.
There is no impact to net cash provided by operating activities, investing activities, or financing activities in our Consolidated Statements of Cash Flows, which is included in the exhibits below.
EXHIBITS
Exhibit 1: CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) See Notes on Page 15
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions, except per share amounts)
2024
2023
2024
2023
Revenues:
Billboard
$ 360.6
$ 363.6
$ 1,062.8
$ 1,055.8
Transit and other
91.3
91.2
274.9
263.6
Total revenues
451.9
454.8
1,337.7
1,319.4
Expenses:
Operating
233.1
239.8
711.6
716.0
Selling, general and administrative
108.7
105.3
338.3
321.8
Net (gain) loss on dispositions
1.5
—
(153.6)
0.2
Impairment charges
—
12.1
17.9
523.5
Depreciation
18.6
19.3
55.5
59.1
Amortization
18.7
19.7
53.6
63.0
Total expenses
380.6
396.2
1,023.3
1,683.6
Operating income (loss)
71.3
58.6
314.4
(364.2)
Interest expense, net
(37.1)
(40.2)
(119.6)
(117.6)
Loss on extinguishment of debt
—
—
(1.2)
—
Other income (loss), net
(0.1)
(0.1)
1.0
0.1
Income (loss) before benefit (provision) for income taxes
and equity in earnings of investee companies
34.1
18.3
194.6
(481.7)
Benefit (provision) for income taxes
0.2
(1.4)
(10.4)
(2.2)
Equity in earnings of investee companies, net of tax
0.5
(0.2)
0.5
(1.3)
Net income (loss) before allocation to redeemable and
non-redeemable noncontrolling interests
34.8
16.7
184.7
(485.2)
Net income (loss) attributable to redeemable and non-
redeemable noncontrolling interests
0.2
(0.3)
0.5
0.4
Net income (loss) attributable to OUTFRONT Media Inc.
$ 34.6
$ 17.0
$ 184.2
$ (485.6)
Net income (loss) per common share:
Basic
$ 0.20
$ 0.09
$ 1.07
$ (2.98)
Diluted
$ 0.19
$ 0.09
$ 1.06
$ (2.98)
Weighted average shares outstanding:
Basic
166.0
165.0
165.8
164.9
Diluted
167.2
165.2
174.4
164.9
Exhibit 2: CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited) See Notes on Page 15
As of
(in millions)
September 30,
2024
December 31,
2023
Assets:
Current assets:
Cash and cash equivalents
$ 28.0
$ 36.0
Receivables, less allowance ($19.8 in 2024 and $17.2 in 2023)
281.2
287.6
Prepaid lease and franchise costs
2.7
4.5
Other prepaid expenses
19.2
19.2
Assets held for sale
—
34.6
Other current assets
12.8
15.7
Total current assets
343.9
397.6
Property and equipment, net
654.1
657.8
Goodwill
2,006.4
2,006.4
Intangible assets
657.4
695.4
Operating lease assets
1,522.3
1,591.9
Assets held for sale
—
214.3
Other assets
19.5
19.5
Total assets
$ 5,203.6
$ 5,582.9
Liabilities:
Current liabilities:
Accounts payable
$ 42.8
$ 55.5
Accrued compensation
51.9
41.4
Accrued interest
23.6
34.2
Accrued lease and franchise costs
76.9
80.0
Other accrued expenses
50.7
56.2
Deferred revenues
45.0
37.7
Short-term debt
40.0
65.0
Short-term operating lease liabilities
177.0
180.9
Liabilities held for sale
—
24.1
Other current liabilities
19.3
18.0
Total current liabilities
527.2
593.0
Long-term debt, net
2,481.4
2,676.5
Asset retirement obligation
33.7
33.0
Operating lease liabilities
1,364.3
1,417.4
Liabilities held for sale
—
90.9
Other liabilities
43.9
42.0
Total liabilities
4,450.5
4,852.8
Commitments and contingencies
Redeemable noncontrolling interests
13.5
31.3
Preferred stock (2024 – 50.0 shares authorized, and 0.1 shares of Series A Preferred Stock
issued and outstanding; 2023 – 50.0 shares authorized, and 0.1 shares issued and
outstanding)
119.8
119.8
Stockholders’ equity:
Common stock (2024 – 450.0 shares authorized, and 166.0 shares issued and
outstanding; 2023 – 450.0 shares authorized, and 165.1 issued and outstanding)
1.7
1.7
Additional paid-in capital
2,410.1
2,402.5
Distribution in excess of earnings
(1,793.3)
(1,821.1)
Accumulated other comprehensive loss
(0.3)
(5.8)
Total stockholders’ equity
618.2
577.3
Noncontrolling interests
1.6
1.7
Total liabilities and equity
$ 5,203.6
$ 5,582.9
Exhibit 3: CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) See Notes on Page 15
Nine Months Ended
September 30,
(in millions)
2024
2023
Operating activities:
Net income (loss) attributable to OUTFRONT Media Inc.
$ 184.2
$ (485.6)
Adjustments to reconcile net income (loss) to net cash flow provided by operating activities:
Net income attributable to redeemable and non-redeemable noncontrolling interests
0.5
0.4
Depreciation and amortization
109.1
122.1
Deferred tax benefit
(1.2)
(0.3)
Stock-based compensation
21.8
22.9
Provision for doubtful accounts
4.2
4.0
Accretion expense
2.2
2.3
Net (gain) loss on dispositions
(153.6)
0.2
Impairment charges
—
511.4
Loss on extinguishment of debt
1.2
—
Equity in earnings of investee companies, net of tax
(0.5)
1.3
Distributions from investee companies
0.9
0.9
Amortization of deferred financing costs and debt discount and premium
4.6
5.0
Change in assets and liabilities, net of investing and financing activities:
Decrease in receivables
2.3
15.2
Increase in prepaid MTA equipment deployment costs
—
(21.8)
Increase in prepaid expenses and other current assets
(2.6)
(5.4)
Decrease in accounts payable and accrued expenses
(19.6)
(42.4)
Increase in operating lease assets and liabilities
14.3
14.6
Increase in deferred revenues
7.3
10.5
Increase (decrease) in income taxes
0.3
(3.4)
Decrease in assets and liabilities held for sale, net
(2.1)
—
Other, net
1.4
(2.7)
Net cash flow provided by operating activities
174.7
149.2
Investing activities:
Capital expenditures
(59.9)
(63.6)
Acquisitions
(11.2)
(30.7)
MTA franchise rights
(7.0)
0.6
Net proceeds from dispositions
310.0
0.3
Investment in investee companies
(1.2)
—
Net cash flow provided by (used for) investing activities
230.7
(93.4)
Financing activities:
Repayments of long-term debt borrowings
(200.0)
—
Proceeds from borrowings under short-term debt facilities
135.0
120.0
Repayments of borrowings under short-term debt facilities
(160.0)
—
Payments of deferred financing costs
(0.3)
(4.1)
Taxes withheld for stock-based compensation
(7.4)
(12.4)
Purchase of redeemable noncontrolling interest
(23.9)
—
Dividends
(156.4)
(155.4)
Net cash flow used for financing activities
(413.0)
(51.9)
Exhibit 3: CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Unaudited) See Notes on Page 15
Nine Months Ended
September 30,
(in millions)
2024
2023
Effect of exchange rate changes on cash and cash equivalents
(0.4)
0.1
Net increase (decrease) in cash and cash equivalents
(8.0)
4.0
Cash and cash equivalents at beginning of period
36.0
40.4
Cash and cash equivalents at end of period
$ 28.0
$ 44.4
Supplemental disclosure of cash flow information:
Cash paid for income taxes
$ 11.4
$ 5.9
Cash paid for interest
127.1
126.3
Non-cash investing and financing activities:
Accrued purchases of property and equipment
7.2
4.6
Accrued MTA franchise rights
2.1
2.9
Taxes withheld for stock-based compensation
0.3
0.1
Exhibit 4: SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(Unaudited) See Notes on Page 15
Three Months Ended September 30, 2024
(in millions, except percentages)
U.S. Media
Other
Corporate
Consolidated
Revenues:
Billboard
$ 360.6
$ —
$ —
$ 360.6
Transit and other
90.9
0.4
—
91.3
Total revenues
$ 451.5
$ 0.4
$ —
$ 451.9
Organic revenues(a):
Billboard
$ 360.6
$ —
$ —
$ 360.6
Transit and other
90.9
0.4
—
91.3
Total organic revenues(a)
$ 451.5
$ 0.4
$ —
$ 451.9
Non-organic revenues(b):
Billboard
$ —
$ —
$ —
$ —
Transit and other
—
—
—
—
Total non-organic revenues(b)
$ —
$ —
$ —
$ —
Operating income (loss)
$ 94.9
$ (0.3)
$ (23.3)
$ 71.3
Net loss on dispositions
1.3
0.2
—
1.5
Depreciation and amortization
37.3
—
—
37.3
Stock-based compensation
—
—
7.0
7.0
Adjusted OIBDA
$ 133.5
$ (0.1)
$ (16.3)
$ 117.1
Adjusted OIBDA margin
29.6 %
(25.0) %
*
25.9 %
Capital expenditures
$ 17.6
$ —
$ —
$ 17.6
Three Months Ended September 30, 2023
(in millions, except percentages)
U.S. Media
Other
Corporate
Consolidated
Revenues:
Billboard
$ 344.0
$ 19.6
$ —
$ 363.6
Transit and other
84.7
6.5
—
91.2
Total revenues
$ 428.7
$ 26.1
$ —
$ 454.8
Organic revenues(a):
Billboard
$ 344.0
$ —
$ —
$ 344.0
Transit and other
84.7
1.8
—
86.5
Total organic revenues(a)
$ 428.7
$ 1.8
$ —
$ 430.5
Non-organic revenues(b):
Billboard
$ —
$ 19.6
$ —
$ 19.6
Transit and other
—
4.7
—
4.7
Total non-organic revenues(b)
$ —
$ 24.3
$ —
$ 24.3
Operating income (loss)
$ 72.7
$ 2.7
$ (16.8)
$ 58.6
Impairment charges
12.1
—
—
12.1
Depreciation and amortization
35.4
3.6
—
39.0
Stock-based compensation
—
—
7.2
7.2
Adjusted OIBDA
$ 120.2
$ 6.3
$ (9.6)
$ 116.9
Adjusted OIBDA margin
28.0 %
24.1 %
*
25.7 %
Capital expenditures
$ 16.4
$ 2.3
$ —
$ 18.7
Nine Months Ended September 30, 2024
(in millions, except percentages)
U.S. Media
Other
Corporate
Consolidated
Revenues:
Billboard
$ 1,034.7
$ 28.1
$ —
$ 1,062.8
Transit and other
267.3
7.6
—
274.9
Total revenues
$ 1,302.0
$ 35.7
$ —
$ 1,337.7
Organic revenues(a):
Billboard
$ 1,034.7
$ —
$ —
$ 1,034.7
Transit and other
267.3
0.8
—
268.1
Total organic revenues(a)
$ 1,302.0
$ 0.8
$ —
$ 1,302.8
Non-organic revenues(b):
Billboard
$ —
$ 28.1
$ —
$ 28.1
Transit and other
—
6.8
—
6.8
Total non-organic revenues(b)
$ —
$ 34.9
$ —
$ 34.9
Operating income (loss)
$ 227.3
$ 157.5
$ (70.4)
$ 314.4
Net (gain) loss on dispositions
1.5
(155.1)
—
(153.6)
Impairment charges
17.9
—
—
17.9
Depreciation and amortization
109.1
—
—
109.1
Stock-based compensation
—
—
21.8
21.8
Adjusted OIBDA
$ 355.8
$ 2.4
$ (48.6)
$ 309.6
Adjusted OIBDA margin
27.3 %
6.7 %
*
23.1 %
Capital expenditures
$ 53.7
$ 6.2
$ —
$ 59.9
Nine Months Ended September 30, 2023
(in millions, except percentages)
U.S. Media
Other
Corporate
Consolidated
Revenues:
Billboard
$ 1,002.3
$ 53.5
$ —
$ 1,055.8
Transit and other
245.8
17.8
—
263.6
Total revenues
$ 1,248.1
$ 71.3
$ —
$ 1,319.4
Organic revenues(a)
Billboard
$ 1,002.3
$ —
$ —
$ 1,002.3
Transit and other
245.8
5.5
—
251.3
Total organic revenues(a)
$ 1,248.1
$ 5.5
$ —
$ 1,253.6
Non-organic revenues(b):
Billboard
$ —
$ 53.5
$ —
$ 53.5
Transit and other
—
12.3
—
12.3
Total non-organic revenues(b)
$ —
$ 65.8
$ —
$ 65.8
Operating income (loss)
$ (309.7)
$ 3.6
$ (58.1)
$ (364.2)
Net loss on dispositions
0.2
—
—
0.2
Impairment charges
523.5
—
—
523.5
Depreciation and amortization
111.6
10.5
—
122.1
Stock-based compensation
—
—
22.9
22.9
Adjusted OIBDA
$ 325.6
$ 14.1
$ (35.2)
$ 304.5
Adjusted OIBDA margin
26.1 %
19.8 %
*
23.1 %
Capital expenditures
$ 58.0
$ 5.6
$ —
$ 63.6
Exhibit 5: SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES
(Unaudited) See Notes on Page 15
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2024
2023
2024
2023
Net income (loss) attributable to OUTFRONT Media Inc.
$ 34.6
$ 17.0
$ 184.2
$ (485.6)
Depreciation of billboard advertising structures
14.0
14.6
41.1
44.8
Amortization of real estate-related intangible assets
17.0
18.0
49.0
54.4
Amortization of direct lease acquisition costs
16.0
15.0
45.1
42.4
Net (gain) loss on disposition of real estate assets
1.5
—
(153.6)
0.2
Impairment charges(c)
—
8.8
13.1
379.9
Adjustment related to redeemable and non-
redeemable noncontrolling interests
—
—
(0.2)
(0.2)
Income tax effect of adjustments(d)
(0.4)
—
10.1
—
FFO attributable to OUTFRONT Media Inc.
$ 82.7
$ 73.4
$ 188.8
$ 35.9
Non-cash portion of income taxes
0.1
1.0
(1.0)
(3.7)
Cash paid for direct lease acquisition costs
(14.0)
(12.5)
(42.7)
(43.6)
Maintenance capital expenditures
(5.5)
(8.0)
(17.9)
(24.5)
Other depreciation
4.6
4.7
14.4
14.3
Other amortization
1.7
1.7
4.6
8.6
Impairment charges on non-real estate assets(c)(e)
—
3.3
4.8
143.6
Stock-based compensation
7.0
7.2
21.8
22.9
Non-cash effect of straight-line rent
2.0
2.5
8.0
6.9
Accretion expense
0.7
0.8
2.2
2.3
Amortization of deferred financing costs
1.5
1.6
4.6
5.0
Loss on extinguishment of debt
—
—
1.2
—
AFFO attributable to OUTFRONT Media Inc.
$ 80.8
$ 75.7
$ 188.8
$ 167.7
Exhibit 6: SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES
(Unaudited) See Notes on Page 15
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2024
2023
2024
2023
Adjusted OIBDA
$ 117.1
$ 116.9
$ 309.6
$ 304.5
Interest expense, net, less amortization of deferred
financing costs
(35.6)
(38.6)
(115.0)
(112.6)
Cash paid for income taxes(f)
(0.1)
(0.4)
(1.3)
(5.9)
Direct lease acquisition costs
2.0
2.5
2.4
(1.2)
Maintenance capital expenditures
(5.5)
(8.0)
(17.9)
(24.5)
Equity in earnings of investee companies, net of tax
0.5
(0.2)
0.5
(1.3)
Non-cash effect of straight-line rent
2.0
2.5
8.0
6.9
Accretion expense
0.7
0.8
2.2
2.3
Other income (loss), net
(0.1)
(0.1)
1.0
0.1
Adjustment related to redeemable and non-
redeemable noncontrolling interests
(0.2)
0.3
(0.7)
(0.6)
AFFO attributable to OUTFRONT Media Inc.
$ 80.8
$ 75.7
$ 188.8
$ 167.7
Exhibit 7: OPERATING EXPENSES
(Unaudited) See Notes on Page 15
Three Months Ended
Nine Months Ended
September 30,
%
September 30,
%
(in millions, except percentages)
2024
2023
Change
2024
2023
Change
Operating expenses:
Billboard property lease
$ 119.3
$ 124.2
(3.9) %
$ 363.2
$ 368.5
(1.4) %
Transit franchise
59.1
59.5
(0.7)
178.6
180.1
(0.8)
Posting, maintenance and other
54.7
56.1
(2.5)
169.8
167.4
1.4
Total operating expenses
$ 233.1
$ 239.8
(2.8)
$ 711.6
$ 716.0
(0.6)
Exhibit 8: EXPENSES BY SEGMENT
(Unaudited) See Notes on Page 15
Three Months Ended
Nine Months Ended
September 30,
%
September 30,
%
(in millions, except percentages)
2024
2023
Change
2024
2023
Change
U.S. Media:
Operating expenses
$ 232.7
$ 225.6
3.1 %
$ 689.5
$ 675.5
2.1 %
SG&A expenses
85.3
82.9
2.9
256.7
247.0
3.9
Other:
Operating expenses
0.4
14.2
(97.2)
22.1
40.5
(45.4)
SG&A expenses
0.1
5.6
(98.2)
11.2
16.7
(32.9)
NOTES TO EXHIBITS
PRIOR PERIOD PRESENTATION CONFORMS TO CURRENT REPORTING CLASSIFICATIONS.
(a)
Organic revenues exclude revenues associated with the impact of the sale of our equity interests in Outdoor Systems Americas ULC and its subsidiaries (the “Transaction”), which hold all of the assets of our outdoor advertising business in Canada, and the impact of foreign currency exchange rates (“non-organic revenues”).
(b)
In the three months ended September 30, 2023, nine months ended September 30, 2024, and nine months ended September 30, 2023, non-organic revenues reflect the impact of the Transaction. Also in the nine months ended September 30, 2023, non-organic revenues reflect the impact of foreign currency exchange rates.
(c)
Impairment charges related to the long-term outlook of our U.S. Transit and Other reporting unit.
(d)
Income tax effect related to Net gain on disposition of real estate assets.
(e)
In the nine months ended September 30, 2023, also includes an impairment charge related to an other-than-temporary decline in fair value of a cost-method investment.
(f)
Cash paid for income taxes is presented in this table net of cash paid for income taxes related to a net gain on disposition of real estate assets associated with the Transaction.
*
Calculation not meaningful.
View original content to download multimedia:https://www.prnewswire.com/news-releases/outfront-media-reports-third-quarter-2024-results-302301829.html
SOURCE OUTFRONT Media Inc.
You may like
Technology
Stryker launches next generation of SurgiCount+ to help improve the standard of care in hospitals for sponge management and blood loss assessment
Published
20 minutes agoon
November 14, 2024By
PORTAGE, Mich., USA, Nov. 14, 2024 /PRNewswire/ — Stryker (NYSE:SYK), a global leader in medical technologies, announced its launch of the next generation of SurgiCount+ within its sponge management portfolio. Now integrated with Stryker’s Triton technology, SurgiCount+ addresses two key challenges: retained surgical sponges and blood loss assessment. Integrating these previously separate digital solutions provides the added benefit of a more efficient, streamlined workflow for hospitals.
Maternal mortality has been rising in the U.S. for decades,1 with approximately 50,000 cases of severe maternal morbidity occurring each year.2 Notably, 70% of pregnancy-related deaths due to hemorrhage are preventable.3 Stryker’s Triton software includes AI technology that can differentiate blood from other fluids and a Bluetooth scale that batch weighs blood-soaked items to help assess blood loss. This provides hospital staff with real-time information to help coordinate the clinical team’s hemorrhage response and make informed patient care decisions.
Surgical sponges continue to be the number one retained surgical item with 88% of retained surgical items occurring with a false correct count.4 For nurses trying to locate a missing sponge in the operating room (OR), that can take up to 10 minutes on average.5 Stryker’s SurgiCount+ software helps address these problems by featuring a wireless reader that counts, tracks and locates surgical sponges in the OR. RFID-tagged sponges enable unique identification, eliminating false-correct duplicate or unknown counts.
“We are committed to helping keep caregivers and patients safe from harm,” said Brandon Jominy, vice president and general manager of Stryker’s Surgical Technologies business. “Integrating our SurgiCount+ and Triton technologies on one platform will set a new industry standard for quantifying blood loss and continuing to help reduce retained surgical sponges in the OR.”
Additionally, recent studies show that nurse burnout is affecting more than half of all U.S. nurses.6 By integrating these two technologies into one solution, it provides additional benefits to hospitals and staff which includes:
Helping save time by standardizing clinical protocols for chartingSimplifying workflows and aggregating case data with backend dataHelping reduce manual data entry errors through real-time EMR integrationTracking and communicating patient information with one seamless workflow
For more information about Stryker’s SurgiCount+ integrated with Triton please visit safeor.com/products/surgicount-triton.
About Stryker
Stryker is a global leader in medical technologies and, together with its customers, is driven to make healthcare better. The company offers innovative products and services in MedSurg, Neurotechnology, Orthopaedics and Spine that help improve patient and healthcare outcomes. Alongside its customers around the world, Stryker impacts more than 150 million patients annually. More information is available at stryker.com.
Media contact
Beth Sizemore
Sr. Director, Strategic Communications
beth.sizemore@stryker.com
1. Hoyert DL. Maternal mortality rates in the United States, 2021. NCHS Health E-Stats. 2023. DOI: https://dx.doi.org/10.15620/cdc:124678
2. Callaghan, W.M., Creanga, A.A. and Kuklina, E.V. (2012) “Severe maternal morbidity among delivery and postpartum hospitalizations in the United States,” Obstetrics & Gynecology,120(5), pp. 1029–1036. doi:10.1097/aog.0b013e31826d60c5.
3. Building U.S. Capacity to Review and Prevent Maternal Deaths. (2018). Report from nine maternal mortality review committees. https://www.cdcfoundation.org/sites/default/files/files/ReportfromNineMMRCs.pdf
4. Gawande, A. A., Studdert, D. M., Orav, E. J., Brennan, T. A., & Zinner, M. J. (2003). Risk factors for retained instruments and sponges after surgery. The New England Journal of Medicine, 348(3), 229–235. https://doi.org/10.1056/NEJMsa021721
5. Double-blinded survey of 154 Operating Room Nurses from 154 different facilities across the United States. Data on file internally. Conducted August 2020.
6. Rotenstein, L.S., Brown, R., Sinsky, C. et al. The Association of Work Overload with Burnout and Intent to Leave the Job Across the Healthcare Workforce During COVID-19. J GEN INTERN MED 38, 1920–1927 (2023). https://doi.org/10.1007/s11606-023-08153-z
View original content to download multimedia:https://www.prnewswire.com/news-releases/stryker-launches-next-generation-of-surgicount-to-help-improve-the-standard-of-care-in-hospitals-for-sponge-management-and-blood-loss-assessment-302305698.html
SOURCE Stryker
Technology
14,000 Consumers Weigh In: Kearney Consumer Institute Releases Keeping Up with the Consumer – New Report Identifies Key Tension Points Informing Consumer Choices, Brand Selection, and What’s Behind “Unpredictable” Consumer Behavior
Published
20 minutes agoon
November 14, 2024By
Key Findings:
Brands are pumping out more choices than consumers need or want.Consumers streamline their needs spending to enable discretionary spend.Brands and retailers need to revert to EQ and great merchandising.
CHICAGO, Nov. 14, 2024 /PRNewswire/ — The Kearney Consumer Institute (KCI), an internal think tank of global strategy and management consultancy Kearney, today released a consumer research report that upends much of the conventional wisdom around brand proliferation, over-reliance on data, and consumer choices. Based on survey data from 14,000 consumers across the US, Europe, and APAC, Keeping Up with the Consumer examines buyers’ unpredictable, seemingly quixotic behaviors, identifies the underlying tension points that explain them, and concludes that brands are massively under-accounting for the human element that drives purchase decisions.
“Brands have more data than ever about consumer demographics, behavior, spending, and opinions. But we still often categorize consumer behavior as ‘unpredictable.’ To understand why, our research found three key consumer tensions that help explain this behavior,” notes KCI lead Katie Thomas. “As options and access grow, consumers’ lives are only getting more complicated. Sometimes we get lost in one side of a narrative, without realizing the strain it puts on consumers.” The research identified the following three friction points:
Options vs. overload: Consumers seem to expect a product that suits each type of skin, diet, or fitness need. Yet, in many major categories, most consumers believe there’s already plenty to choose from—if not too much.
Curation vs. control: Two out of three consumers say they like making all their decisions themselves. But it’s logical that consumers want (and need) some level of curation to make sense of all their options.
Facts vs. feelings: Consumers want to “do their own research” (and they trust themselves more than they trust brands and institutions), but have limited reserves of time, energy, and motivation.
Keeping Up with the Consumer explores consumer shifts since 2016, when the KCI released The Future Consumer. Then, brands were focusing on the power of influence, a socially driven approach centered on “authenticity.” However, as the “influence” approach became more common, it lost some appeal and started to feel less authentic. Meantime, dramatic changes to the consumer landscape—from COVID-19 to political unrest to the emergence of new social media and shopping platforms—helped consolidate this massive shift.
The research suggests that retailers and brands aren’t striking the right balance between facts versus feelings, curation versus control, and too many choices. Noted Thomas, “When retailers and brands balance the tension, applying emotional intelligence and great merchandising, they will better navigate the mindset of the future consumer to address their needs.”
“Here, we see the push–pull between consumers and brands,” Thomas says. “Sometimes brands should lead consumers forward; but sometimes, the better choice is following consumer behavior. The key is understanding the complex, nuanced, and sometimes unexpected tensions that will crop up next.”
Read the full report by clicking this link.
For more information, or to schedule an interview with Katie Thomas or receive a copy of the Keeping Up with the Consumer report, please contact:
MKPR/Meir Kahtan
+1 917-864-0800
mkahtan@rcn.com
About the Kearney Consumer Institute
The Kearney Consumer Institute (KCI) perspective. By leveraging consumer behavior data and insights, the KCI helps generate conversation, and ultimately action, around how to address consumer needs with meaningful benefits.
Using a consumer-first lens the KCI looks at today’s consumer revolution not by thinking about consumers, but by thinking like consumers. Our consumer-centric approach includes simple, precise, plain-language conversations on topics like trends, consumer communities, convenience, loyalty, service, fair pricing, and product development and technologies.
About Kearney
Kearney is a leading global management consulting firm. For nearly 100 years, we have been a trusted advisor to C-suites, government bodies, and nonprofit organizations. Our people make us who we are. Driven to be the difference between a big idea and making it happen, we work alongside our clients to regenerate their businesses to create a future that works for everyone. www.kearney.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/14-000-consumers-weigh-in-kearney-consumer-institute-releases-keeping-up-with-the-consumer–new-report-identifies-key-tension-points-informing-consumer-choices-brand-selection-and-whats-behind-unpredictable-consumer-behavio-302305115.html
SOURCE Kearney
Technology
GovInvest Reports Triple-Digit Quarterly Growth Fueled by New Customer Wins and Industry Recognition
Published
20 minutes agoon
November 14, 2024By
LOS ANGELES, Nov. 14, 2024 /PRNewswire/ — GovInvest, the pioneer of compensation analytics technology for government agencies, is celebrating a record third quarter in 2024, marked by significant new customer growth, regional expansion, and industry recognition. Over the past quarter (July-September 2024), GovInvest achieved an impressive 125% quarter-over-quarter increase driven by new client partnerships and strengthened relationships with existing customers through expanded solutions.
With its comprehensive suite of labor costing, budgeting, and compensation analytics solutions, GovInvest empowers public sector organizations to streamline operations, bridge the gap between HR and finance, and make smarter workforce decisions. By providing real-time, data-driven insights, the platform helps agencies attract top talent, optimize budgets, and improve employee satisfaction—critical advantages during today’s labor crisis.
Nationwide Customer Growth
Q3 2024 client wins and expansions included new deals in California, Georgia, Ohio, Rhode Island, Iowa, Texas, and Washington. These recent additions highlight GovInvest’s continued momentum in its core California market, where cities like San Bernardino, Beverly Hills, and San Marcos have deepened their use of GovInvest solutions. At the same time, the company is experiencing significant geographic growth, with new clients across diverse regions such as Georgia, Texas, and Washington, demonstrating its expanding national footprint and ability to address the labor costing and budgeting needs of government agencies nationwide.
“We’re excited to see such strong customer growth this past quarter in every geographic market, particularly in the southeast and pacific northwest,” said Michael Fryke, CEO of GovInvest. “This expansion underscores the trust that public sector agencies have in GovInvest’s ability to deliver powerful, data-driven solutions that address their labor costing and budgeting needs. We’re proud to partner with these organizations as they tackle today’s workforce challenges and plan for future success.”
Industry Recognition and Strategic Partnerships
GovInvest’s industry recognition further solidified its leadership in the government services sector. The company was named to the 2024 Inc. 5000 list, ranking 95th in the Government Services sector. This prestigious recognition honors the fastest-growing private companies in America and highlights GovInvest’s rapid growth even amid inflationary pressures and labor market challenges.
“We are deeply humbled by the opportunity to not only make the Inc. 5000 list but to have earned a position within the top 100 Government Services companies,” said Michael Fryke, CEO of GovInvest. “Our success is driven by the dedication of our customers and team, who work tirelessly to provide cutting-edge solutions to help governments make smarter, data-driven workforce decisions.”
In addition, GovInvest announced a strategic partnership with CPS HR Consulting, designed to deliver advanced, technology-driven solutions for compensation consulting. This collaboration further positions GovInvest as a leader in the government services sector, enhancing its value proposition for public sector agencies seeking smarter workforce strategies.
Strengthening Industry Ties
GovInvest’s involvement in key industry events continued to drive its momentum in Q3 2024, including being selected as a sponsor for the PSHRA (Public Sector HR Association) Annual Conference in September. GovInvest showcased its commitment to supporting human resource and public sector professionals with ongoing education and technological innovation.
Customer Webinars Resonating with Agencies
GovInvest’s client webinars also gained traction, with a particular focus on labor costing and workforce planning in the face of inflation and wage compression. The “Effective Labor Negotiations in an Era of Union Empowerment” webinar, featuring Chris Moses, Director of Human Resources for the City of Columbus, OH, provided public agencies with actionable insights into navigating today’s complex labor landscape with GovInvest’s tools. The session resonated with many participants, reinforcing GovInvest’s position as a thought leader in the government analytics space.
“With GovInvest, we’re able to show the unions exactly where we stand financially, making negotiations more transparent,” Moses said. “The trust that we’ve built through these accurate, real-time projections has been invaluable.”
Looking Ahead
As GovInvest looks ahead to continued growth, the company remains dedicated to providing the most advanced labor costing and compensation solutions for government agencies across the country. With a strong foundation of customer success and industry recognition, GovInvest is poised to drive further innovation and transformation in the public sector.
About GovInvest
Founded in 2014, GovInvest empowers over 1,000 public sector agencies nationwide to run their own labor, compensation, and benefits analysis at a fraction of the cost and time through powerful software solutions and hands-on consulting. With a commitment to transparency, efficiency, and equity, GovInvest empowers government leaders to make data-driven decisions, attract top talent, and enhance the effectiveness of their operations. To learn more, visit www.govinvest.com.
CONTACT: Christen Clegg, christen@govinvest.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/govinvest-reports-triple-digit-quarterly-growth-fueled-by-new-customer-wins-and-industry-recognition-302305754.html
SOURCE GovInvest
Stryker launches next generation of SurgiCount+ to help improve the standard of care in hospitals for sponge management and blood loss assessment
14,000 Consumers Weigh In: Kearney Consumer Institute Releases Keeping Up with the Consumer – New Report Identifies Key Tension Points Informing Consumer Choices, Brand Selection, and What’s Behind “Unpredictable” Consumer Behavior
GovInvest Reports Triple-Digit Quarterly Growth Fueled by New Customer Wins and Industry Recognition
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
Peloton Unveils Holiday 2022 Creative Campaign Highlighting How Motivation Transcends Beyond the Workout
These ’90s fashion trends are making a comeback in 2017
Why You Should Build on #NEAR – Co-founder Illia Polosukhin at CV Labs
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
NEAR End of Year Town Hall 2021: The Open Web World, MetaBUILD 2 Hackathon and 2021 recap
Trending
-
Technology5 days ago
CloudOne Digital Appoints Packet Cofounder and Former Equinix Executive Zach Smith to Board of Directors to Drive Growth in Bare Metal and Hybrid-Cloud Solutions
-
Coin Market5 days ago
Is Helium mining still profitable?
-
Coin Market5 days ago
Cumulative traffic to exchanges increased by 8% in October — report
-
Coin Market5 days ago
FTX bankruptcy estate sues Anthony Scaramucci and SkyBridge Capital
-
Technology5 days ago
Stay Better in China: Bring the Practice to My Country
-
Coin Market5 days ago
BTC’s ‘incoming’ $110K call, BlackRock’s $1.1B inflow day, and more: Hodler’s Digest Nov. 3 – 9
-
Technology5 days ago
LG Display Succeeds in Developing World’s First Stretchable Display that Expands by 50 Percent
-
Technology5 days ago
Stop Overpaying for Commercial Energy! Here’s How Your Business Can Cut Costs Today