OUTFRONT Media Inc (OUT) 2024 Q3 法說會逐字稿

Hello, everyone and welcome to OutFront Media's third quarter, 2024 earnings call. My name is Lydia and I'll be your operator today.

大家好，歡迎參加 OutFront Media 2024 年第三季財報電話會議。我叫莉迪亞，今天我將成為您的接線生。

After the prepared remarks, there'll be an opportunity for you to ask questions. If you'd like to do so, you can ask a question by pressing star, followed by one on your telephone keypad. I'll now hand you over to Stefan Bison, Vice President of Investor Relations to begin. Please go ahead.

準備好發言後，您將有機會提問。如果您願意，可以按星號然後按電話鍵盤上的星號來提問。現在我將把您交給投資者關係副總裁 Stefan Bison 開始。請繼續。

Good morning and thank you for joining our 2024, 3rd quarter earnings call. With me on the call today are Jeremy Male Chairman and Chief Executive Officer and Matthew Siegel, Executive Vice President and Chief Financial Officer.

早安，感謝您參加我們的 2024 年第三季財報電話會議。今天與我一起參加電話會議的是董事長兼執行長 Jeremy Male 和執行副總裁兼財務長 Matthew Siegel。

After a discussion of our financial results, we'll open the lines for a question and answer session.

討論完我們的財務表現後，我們將開始問答環節。

Our comments today will refer to the earnings release and the slide presentation that you can find on the investor relations section of our website Outfront.com.

我們今天的評論將參考您可以在我們網站 Outfront.com 的投資者關係部分找到的收益發布和幻燈片演示。

After today's call is concluded, a replay will be available there as well.

今天的電話會議結束後，也將重播。

This conference call may include forward-looking statements, relevant factors that could cause actual results to differ materially from these forward-looking statements are listed in our earnings materials and in our SEC, file including our 2023 form 10-K and our September 30, 2024, form 10-Q which will be filed later today.

本次電話會議可能包括前瞻性陳述，可能導致實際結果與這些前瞻性陳述有重大差異的相關因素已列在我們的收益資料和SEC 文件中，包括我們的2023 年10-K 表格和9 月30日， 2024 年，10-Q 表將於今天稍後提交。

We will refer to certain non-GAAP financial measures on this call. Any references to Oieda made today will be on an adjusted basis.

我們將在本次電話會議上提及某些非公認會計準則財務指標。今天對大江田的任何提及都將經過調整。

Reconciliations of Oieda and other non-GAAP financial measures are in the appendix of the slide presentation, the earnings release and on our website which also includes presentations with prior period reconciliations.

Oieda 和其他非 GAAP 財務指標的調整表位於投影片簡報的附錄、收益發布和我們的網站上，其中還包括與前期調整表的簡報。

Also, please note that given the June sale of our Canadian business, our consolidated third quarter results do not include any Canada results compared to the comparable prior year period.

另請注意，鑑於我們六月出售了加拿大業務，我們第三季的合併業績不包括與去年同期相比的任何加拿大業績。

Detailed historical financial results of the divested Canadian business can be found on slide 25 of our slide presentation and detailed historical US media financial results can be found on slide 24.

被剝離的加拿大業務的詳細歷史財務結果可以在我們幻燈片演示的第 25 幻燈片中找到，詳細的美國媒體歷史財務結果可以在幻燈片 24 中找到。

Given the sale of our Canadian business, our remarks today will focus primarily on the results of our US media segment.

鑑於我們出售了加拿大業務，我們今天的演講將主要關注我們美國媒體部門的業績。

Let me now turn the call over to Jaremy.

現在讓我把電話轉給傑瑞米。

Thank you, Stefan, and thanks to everyone for joining us on our call this morning.

謝謝你，斯特凡，也謝謝大家今天早上加入我們的電話會議。

It's a pleasure to report our third quarter results today. Our first period as a fully domestic company as Stefan just mentioned and similar to last quarter, our remarks today will focus almost entirely on our US media segment. As you can see on slide 3, which summarizes our headline results. Our US business grew revenues over 5% driven by an acceleration in our billboard growth and high single digit growth in transit.

今天很高興報告我們的第三季業績。正如斯特凡剛才提到的，我們作為一家完全國內公司的第一個時期與上個季度類似，我們今天的言論將幾乎完全集中在我們的美國媒體部門。正如您在投影片 3 中看到的，它總結了我們的主要結果。由於廣告看板成長加速和交通運輸高個位數成長，我們的美國業務收入成長了 5% 以上。

US media adjusted OBIDA grew just over 11% driven by the revenue growth I just described combined with US media expense growth of just 3%. Together US media and corporate adjusted orbiter was up 6%. Consolidated AFFO grew nearly 7% to $81 million and puts us well on our way to achieving the high end of the growth target we laid out laid out earlier this year.

受我剛才描述的營收成長以及僅 3% 的美國媒體費用成長的推動，美國媒體調整後的 OBIDA 成長略高於 11%。美國媒體和企業調整後的軌道器總共上漲了 6%。合併後的 AFFO 成長了近 7%，達到 8,100 萬美元，使我們能夠順利實現今年稍早制定的成長目標的高端。

Our AFFO growth is impressive given that we are comparing against the seasonally strong quarter from last year that included our since divested Canadian business. On slide 4, you can see our US media revenues in more detail, billboard revenues were up 4.8%. Our strongest markets continue to be those that are more locally skewed, such as those in New Jersey, Texas and Michigan.

考慮到我們與去年季節性強勁的季度（包括我們剝離的加拿大業務）進行比較，我們的 AFFO 成長令人印象深刻。在投影片 4 上，您可以更詳細地看到我們的美國媒體收入，廣告看板收入增加了 4.8%。我們最強勁的市場仍然是那些在地化程度較高的市場，例如新澤西州、德克薩斯州和密西根州的市場。

Every region was up except the West which improved sequentially but remained flattish due to some weakness in Los Angeles.

除西部地區有所改善外，所有地區均有所上漲，但由於洛杉磯的疲軟，西部地區的表現仍然持平。

Transit revenue is up 7.3% versus the prior year driven by growth in all markets including the New York MTA.

受包括紐約 MTA 在內的所有市場成長的推動，交通收入較上年增長 7.3%。

As has been the case all year, our improved transit revenues were the result of solid performances from both our local and national teams.

與全年的情況一樣，我們交通收入的提高得益於我們當地和國家團隊的出色表現。

The breakdown of local and national revenues in our US media business can be seen on slide 5. Local remained the primary driver of our growth up, almost 7% national revenues improved from Q2 levels and were up a little over 3%. On a consolidated basis, our best performing categories in the third quarter were retail tech utilities, telecom, legal, and government political. On the weaker side were also health, medical, alcohol and education. Slide 6 illustrates our solid us media billboard yield growth up almost 7% year over year reaching just under $3000.

我們的美國媒體業務的地方和國家收入細目可以在幻燈片 5 中看到。本地收入仍然是我們成長的主要推動力，全國收入較第二季度水準提高了近 7%，增幅略高於 3%。綜合來看，第三季表現最佳的類別是零售科技公用事業、電信、法律和政府政治。健康、醫療、酒精和教育也處於弱勢。投影片 6 展示了我們穩健的美國媒體廣告看板收益率年增近 7%，達到略低於 3000 美元。

The drivers of this year growth remain our digital conversions rate, occupancy and higher automated transaction revenue. Slide 7 highlights our strong US media digital performance with revenue growing 10% in the quarter representing over 32% of our total revenues up from 31% last year.

今年成長的驅動力仍然是我們的數位轉換率、入住率和更高的自動化交易收入。幻燈片 7 凸顯了我們強勁的美國媒體數位業績，本季營收成長了 10%，占我們總營收的 32% 以上，高於去年的 31%。

US digital billboard was up over 11%. Our transit was up just over 8% gain driven predominantly by the MTA. Automated revenues comprise nearly 17% of our total digital revenues in the quarter.

美國數位廣告看板上漲超過 11%。我們的交通運輸增加了 8% 以上，主要是由 MTA 推動的。自動化收入佔本季數位總收入的近 17%。

About 7% of our digital transit revenue came from automated channels up from just under 2% last year. Reinforcing our belief that the MTA digital network is well aligned for automated selling. With that let me now hand it over to Matthew to review the rest of the financials.

我們的數位交通收入中約有 7% 來自自動化管道，而去年這一比例略低於 2%。堅定了我們的信念：MTA 數位網路非常適合自動化銷售。現在讓我把它交給馬修來審查其餘的財務狀況。

Thanks Jeremy and good morning, everyone. As with Jeremy's remarks, most of my comments will focus on our US media segment as these are the primary operations going forward. For a deeper dive into our financial statements please turn to slide 8 for a more detailed look at our US media expenses. Total US media expenses were up just under $10 million or just over 3% year over year.

謝謝傑里米，大家早安。與傑里米的言論一樣，我的大部分評論將集中在我們的美國媒體部門，因為這些是未來的主要業務。若想更深入了解我們的財務報表，請參閱投影片 8，以更詳細地了解我們的美國媒體支出。美國媒體總支出略高於 1,000 萬美元，較去年同期略高於 3%。

US media billboard lease expense was up 1% versus last year. Small increases on the portion of our inventory on fixed rates were partially offset by lower revenues on the portion of our inventory operated on leases with revenue share arrangements primarily located in New York and Los Angeles.

美國媒體廣告看板租賃費用比去年增加了 1%。我們的固定利率庫存部分的小幅增長被主要位於紐約和洛杉磯的收入分成租賃安排的庫存部分收入的下降所部分抵消。

US Media transit franchise expense was up 2% versus the prior year. Principally due to higher mag payments to the MTA and higher revenues on contracts operated under revenue shares partially offset by the non-renewal of a loss-making contract. And small benefits from amendments to the existing transit agreements.

US Media 交通特許經營費用比上年增長 2%。主要是由於向 MTA 支付的 mag 費用增加以及根據收入分成營運的合約收入增加，但部分被虧損合約的不續約所抵消。現有過境協議的修訂也帶來了一些小好處。

US media posting maintenance and other expenses were up about 10% versus the prior year. Primarily due to higher compensation related expenses and an increase in business activity driving higher posting and rotation costs. US media SG&A expense grew less than 3% or just over $2 million during the quarter due to higher compensation related expenses, partially asset by lower professional fees and smaller provision for doubtful accounts.

美國媒體發布的維護和其他費用比前一年增加了約 10%。主要是由於薪酬相關費用增加以及業務活動增加導致發布和輪換成本增加。由於薪酬相關費用增加、專業費用降低以及可疑帳戶準備金減少，部分資產資產在本季度增長了不到 3%，即略高於 200 萬美元。

Slide 9 provides additional detail on the sources of US Media Orbiter. Total US media Orbiter was up 11% to just over $133 million.

幻燈片 9 提供了有關 US Media Orbiter 來源的更多詳細資訊。美國媒體 Orbiter 總營收成長 11%，達到略高於 1.33 億美元。

US billboard orbit owes up 8% to $136 million which represents a margin of 37.8%. Up 110 basis points year over year. Transit over to improve by about $3 million to a loss of just under $3 million.

我們Billboard Orbit 的債務增加了 8%，達到 1.36 億美元，利潤率為 37.8%。年比上漲110個基點。Transit 改善了約 300 萬美元，損失略低於 300 萬美元。

The improvement was primarily due to the better revenues. Chairman described earlier in the call. On slide 10, you can see our combined US media and corporate orbiter which is up about 6% to approximately $117 million.

這一改善主要是由於收入增加。主席在早些時候的電話會議中進行了描述。在投影片 10 上，您可以看到我們的美國媒體和企業軌道合併後的股票上漲了約 6%，達到約 1.17 億美元。

Q3 corporate expenses up $6.7 million. The majority was due to consulting fees and the impact of market fluctuations on an unfunded equity linked retirement plan. Turn into capital expenditures on slide 11, Q3, US media CapEx spend was $17.6 million including $5.5 million of maintenance spend. Growth CapEx was up slightly while maintenance CapEx was down about $2 million. For the full year, we believe we will spend approximately $85 million in total CapEx towards the higher end of our prior range including some spend complete repairs related to hurricane Milton.

第三季公司開支增加 670 萬美元。其中大部分是由於諮詢費以及市場波動對無資金支持的股票掛鉤退休計畫的影響。轉向第 11 張投影片第三季的資本支出，美國媒體資本支出為 1,760 萬美元，其中包括 550 萬美元的維護支出。成長資本支出略有上升，而維護資本支出下降了約 200 萬美元。我們相信全年的資本支出總額將達到約 8,500 萬美元，達到先前範圍的上限，其中包括與米爾頓颶風相關的部分完整維修費用。

We ended the quarter with a little more than 1900 digital billboards up 17 from the end of the second quarter and representing under 5% of our total billboard inventory. In transit, we added nearly 1,400 digital displays in the US in the third quarter.

截至本季末，我們的數位廣告看板數量略多於 1900 個，比第二季末增加了 17 個，占我們廣告看板總庫存的不到 5%。第三季度，我們在美國增加了近 1,400 個數位顯示器。

As has been the case thus far this year the installations are mostly small format screens on subway and train cars in the New York MTA and we are happy to confirm that we have substantially completed our initial deployment commitments.

與今年迄今為止的情況一樣，紐約 MTA 的地鐵和火車車廂上的安裝大多是小型螢幕，我們很高興地確認，我們已經基本完成了最初的部署承諾。

Well, speaking of the New York, MTA, hopefully you noticed that we did not have an impairment charge this quarter. As we currently expect net positive cash flows through the end of the amended term of the MTA agreements. As such we would not expect to incur additional impairment charges going forward on our MTA equipment deployment cost spending. Now trying to consolidate AFFO on slide 12, you can see the bridge on our Q3 AFFO near $81 million.

好吧，說到紐約 MTA，希望您注意到我們本季沒有減損費用。我們目前預計 MTA 協議修訂期限結束時將出現淨正現金流。因此，我們預期 MTA 設備部署成本支出不會產生額外的減損費用。現在嘗試在幻燈片 12 上合併 AFFO，您可以看到我們第三季 AFFO 的橋樑接近 8,100 萬美元。

The $5 million year over year increase was due to higher us media Obada lower interest expense, lower us media maintenance CapEx and lower other maintenance CapEx partially offset by lower other Obada principally related to the Canada sale and corporate expense. For 2024, we expect that quarterly consolidated AFFO will be between $295million and $300 million.

年比增加500 萬美元的原因是美國媒體Obada 利息支出較低、美國媒體維護資本支出較低以及其他維護資本支出較低，但主要與加拿大銷售和公司費用相關的其他Obada 支出下降部分抵消了這一增長。到 2024 年，我們預計季度合併的 AFFO 將在 2.95 億美元至 3 億美元之間。

Please turn to slide 13 for an update on our balance sheet. Committed liquidity is over $600 million including around $30 million of cash. Almost $500 million available by our revolver and $110 million available under our accounts receivable securitization facility. As of September 30, our total net leverage was 5.0 times down from 5.4 times year end of 2023 we expect to continue to do whatever within our 4 to 5 times target range through the adjust through adjusted orbit of growth.

請參閱投影片 13 以了解我們資產負債表的最新情況。承諾的流動資金超過 6 億美元，其中包括約 3,000 萬美元的現金。我們的左輪手槍可提供近 5 億美元，應收帳款證券化工具可提供 1.1 億美元。截至 9 月 30 日，我們的總淨槓桿率為 5.0 倍，較 2023 年底的 5.4 倍下降，我們預計將透過調整成長軌道繼續在 4 至 5 倍的目標範圍內採取任何行動。

Turning to our dividend, we announced today that our board of directors approved a $0.75 per share special dividend totalling about $125 million payable on December 31 to shareholders of record at the close of business on November 15. About $50 million or $0.30 per share will be paid in cash the same per share amount as the three common dividends paid earlier this year and the remaining $0.45 per share or about $75 million, we paid in shares of our common stock.

談到股息，我們今天宣布，董事會批准了每股 0.75 美元的特別股息，總額約為 1.25 億美元，將於 12 月 31 日支付給 11 月 15 日收盤時在冊的股東。約 5,000 萬美元或每股 0.30 美元將以現金支付，每股金額與今年稍早支付的三筆普通股股息相同，剩餘的每股 0.45 美元或約 7,500 萬美元，我們以普通股形式支付。

Stockholders will have the option to elect to receive the special dividend and all cash or all stock. However, if the aggregate amount of stockholder cash elections exceeds the $49.8 million cash limit and the payment of such cash collections will be made on a program basis to shareholders who made the cash selection with the balance paid in shares of common stock.

股東可以選擇接受特別股利和全部現金或全部股票。然而，如果股東現金選擇的總額超過 4,980 萬美元的現金限額，則此類現金募集將按計劃向做出現金選擇的股東支付，餘額則以普通股支付。

Please refer to our SEC filing for further information on the special dividend election process.

請參閱我們向 SEC 提交的文件，以了解有關特別股息選舉流程的更多資訊。

The special dividend represents the projected excess remaining balance of 100% of the company's 2024 distributable income beyond the cash dividends paid earlier this year and has been sized to maximize the tax savings afforded to us by the restructure as well as retain the deleveraging effect of the Canada sale completed in June.

特別股息代表公司2024 年可分配收入100% 的預計超額餘額，超出了今年早些時候支付的現金股息，其規模旨在最大限度地提高重組為我們帶來的稅收節省，並保留重組的去槓桿效應。

To us that the small dilutive impact of the commerce stock portion of the special dividend. Our board of directors also approved a reverse stock split to return our aggregate share account to pre stock dividend levels which we expect to complete in January of 2025. There were no large or notable acquisitions made during the quarter. Looking at our current acquisition pipeline, we expect to complete about a total of $25 million of acquisitions this year. Before I pass the call back to Jeremy, I'll take a moment to explain some accounting revisions in our documents.

我們認為商業股部分特別股利的稀釋影響較小。我們的董事會也批准了反向股票分割，將我們的總股票帳戶恢復到股票股利前的水平，我們預計將於 2025 年 1 月完成。本季度沒有進行任何大型或值得注意的收購。從我們目前的收購管道來看，我們預計今年將完成總計約 2,500 萬美元的收購。在將電話轉回傑里米之前，我將花點時間解釋我們文件中的一些會計修訂。

In connection with finalizing our results for the third quarter, we identified an error related to the treatment of non-controlling interest on our balance sheet involving a few of our historical consolidated joint ventures. As noted in our earnings release, we concluded that the error was not material to our previously issued financial statements but would require revisions to our current and comparative periods with respect to certain equity line items on our balance sheet and our consolidated statements of equity.

在最終確定第三季業績時，我們發現了與資產負債表上涉及一些歷史合併合資企業的非控制權益處理相關的錯誤。正如我們在收益報告中指出的那樣，我們的結論是，該錯誤對我們之前發布的財務報表並不重要，但需要對我們資產負債表和合併權益表上的某些權益項目的當前和比較期間進行修改。

There is no impact on our total assets and liabilities, income statement, statement of cash flows or OBIDA or AFFO related to this matter.

與此事件相關的我們的總資產和負債、損益表、現金流量表或 OBIDA 或 AFFO 沒有受到影響。

As an administrative matter, we also decided to voluntarily revise our previously issued financial information to reflect the immaterial out of period adjustment related to variable billboard property lease costs that was already recorded and disclosed in the first quarter of 2023.

作為行政事項，我們還決定自願修改我們先前發布的財務信息，以反映與 2023 年第一季度已記錄和披露的可變廣告牌物業租賃成本相關的無關緊要的期外調整。

Please refer to our SEC filing for further information on the revisions. In closing it was a good quarter and we look forward to running through the tape to the end of the year with that. Let me turn the call back to Jeremy.

請參閱我們向 SEC 提交的文件，以了解有關修訂的更多資訊。總而言之，這是一個不錯的季度，我們期待著將磁帶播放到年底。讓我把電話轉回給傑里米。

Thanks very much Matt.

非常感謝馬特。

So, before we jump into revenue guidance for the fourth quarter, I want to mention a couple of recent developments which will impact comparability for the prior year, particularly as it relates to our billboard business.

因此，在我們進入第四季度的收入指導之前，我想提一下最近的一些發展，這些發展將影響上一年的可比性，特別是與我們的廣告看板業務相關的情況。

First, as many of you may have seen last month, we recently exited a billboard contract with the New York MTA creating a revenue headwind for Q4.

首先，正如你們許多人上個月可能已經看到的那樣，我們最近退出了與紐約 MTA 的廣告牌合同，這給第四季度的收入帶來了阻力。

Importantly, and as implied by our full year AFFO guidance, we expect a de minimis impact to our OBIDA & AFFO this year. For 2025, it will continue to be a revenue headwind but also be very much margin enhancing.

重要的是，正如我們全年 AFFO 指導所暗示的那樣，我們預計今年對 OBIDA 和 AFFO 的影響微乎其微。到 2025 年，這將繼續成為收入的逆風，但也將大大提高利潤率。

Secondly, the storms in the Southeast will also present a small headwind as we proactively removed advertising copy for safety reasons and it took some time to replace, given some of the damage in the area.

其次，東南部的暴風雨也將帶來輕微的逆風，因為出於安全原因，我們主動刪除了廣告文案，並考慮到該地區的一些損壞，需要一些時間才能替換。

We're immensely proud of the team in the region who responded to storms in such a safe and expeditious manner. So, with that said, looking ahead to the fourth quarter and based on what we're seeing in the business as of today, we estimate that reported Q4 US media revenue growth will be around 3% with billboard in the low single digits and transit again, growing high single digits led by the New York NTA.

我們對該地區的團隊以如此安全、迅速的方式應對風暴感到非常自豪。因此，話雖如此，展望第四季度，根據我們今天所看到的業務情況，我們估計第四季度美國媒體收入成長將在3% 左右，廣告看板和交通運輸收入將保持在較低的個位數水準再次以紐約 NTA 為首，實現高個位數成長。

Before turning it over to Q&A, I wanted to speak a little bit more about the billboard contract in New York that we exited as it's illustrative of our broader strategy with regards to how we approach contracts and partnerships with any counter party, municipal or private or any property type, both billboard and transit.

在進行問答之前，我想多談談我們退出的紐約廣告牌合同，因為它說明了我們更廣泛的戰略，即我們如何處理與任何對手方（無論是市政的還是私人的）的合同和合作夥伴關係。

This particular concept contract exit reflects our focus on improving margins and the economic returns associated with these partnerships. When bidding on new or legacy contracts, particularly those with revenue shares and minimum annual guarantees. We strive to submit proposal that reflect the value brought to such a partnership by Out Front requiring an attractive return to the company and its shareholders.

這種特殊的概念合約退出反映了我們對提高利潤和與這些合作夥伴關係相關的經濟回報的關注。在競標新合約或舊合約時，特別是那些具有收入分成和最低年度保證的合約。我們努力提交能夠反映 Out Front 為此類合作夥伴關係帶來的價值的提案，要求為公司及其股東帶來有吸引力的回報。

So with that operator, let's now open the line up for any questions.

因此，對於該操作員，現在讓我們開始回答任何問題。

Thank you, Jeremy. (Operator Instructions)

謝謝你，傑瑞米。（操作員說明）

Our first question today comes from David Knox with JP Morgan.

我們今天的第一個問題來自摩根大通的大衛諾克斯。

Please go ahead. Your line is open.

請繼續。您的線路已開通。

Hey, thank you. Sorry, maybe just following up on the Q4 guide. I don't know if you can seize the impact of the MTA versus the storms you called out in the Southeast. And then I think the company that had won the MTA contract or it's the MTA contract had flagged some strategic benefit. You know, as a result of that is there, you know, kind of, was there any consideration on that front from your side? I just like to hear more on that.

嘿，謝謝你。抱歉，也許只是跟進第四季度指南。我不知道你是否能抓住 MTA 與你在東南部呼籲的風暴的影響。然後我認為贏得 MTA 合約的公司或說 MTA 合約已經帶來了一些策略利益。你知道，因此，你知道，你在這方面有什麼考慮嗎？我只是想聽更多相關內容。

Yeah. Thanks, David, for the question. So, as to sort of scale it, you know, around about a point and a half of a point and a half of growth in that sort of range. And as I say, then there's a, you know, small piece for the, for the storms that we mentioned. Look with regards to strategic benefit, you know, every company has to make their own decision. You know, when they bid these contracts, I wouldn't want to comment on, you know, active competitors, bidding strategy. But what I can say is that, you know, from our point of view, as the contract, you know, we bid it on the basis that would work for us. And you know that's kind of all you can say in these situations.

是的。謝謝大衛提出這個問題。因此，就規模而言，你知道，在這種範圍內成長大約一個半點。正如我所說，還有一小部分是關於我們提到的風暴的。從策略利益來看，每個公司都有自己的決定。你知道，當他們競標這些合約時，我不想評論活躍的競爭對手、競標策略。但我能說的是，你知道，從我們的角度來看，作為合同，你知道，我們是在對我們有利的基礎上投標的。你知道在這種情況下你只能說這些。

Okay. And then just on the property lease expense down, we would have thought maybe this would have firmed up a bit with the better result national. So, I'm curious if you could walk through national by market, what you're seeing in places like LA and New York relative to the other regions. And you mentioned the West flattish. I don't know if you can kind of walk through that and what you're seeing with the media vertical. Thanks.

好的。然後，隨著房產租賃費用的下降，我們可能會認為，隨著全國更好的結果，這可能會更加穩固。因此，我很好奇您是否可以按市場瀏覽全國範圍，看看您在洛杉磯和紐約等地相對於其他地區所看到的情況。你提到西方平坦。我不知道你是否能大致了解你在媒體垂直領域所看到的情況。謝謝。

Because it, it's let the yeah, sorry you go.

因為它，它讓「是的，對不起，你走了」。

I'm sorry. It's Matt, you know, as Jeremy mentioned in his prepared remarks, we're still seeing a little bit of weakness in in LA and a little bit in New York National is not back to where we'd like it. Still, you know, stronger right now in transit. So, our billboard lease expense, not up as much as we said in the past years. It's flipped around when New York and LA over perform or over perform their peers. You see a little higher, at least expense. We're seeing the opposite throughout most of this year.

對不起。這是馬特，你知道，正如傑里米在他準備好的演講中提到的那樣，我們仍然看到洛杉磯有一點弱點，而紐約國家隊也沒有回到我們想要的位置。不過，你知道，現在在運輸途中更加強勁。所以，我們的廣告看板租賃費用並沒有我們過去幾年所說的那麼高。當紐約和洛杉磯表現出色或表現超越同行時，情況就會逆轉。你看高一點，至少費用。今年大部分時間我們都看到相反的情況。

Thank you.

謝謝。

Our next question comes from Cameron McVeigh with Morgan Stanley. Please go ahead.

我們的下一個問題來自摩根士丹利的卡梅倫·麥克維。請繼續。

Hi thanks. Just maybe an update on the, the NCA integration of some of the programmatic ad tech capabilities down there. You know how that's how the timing is shaping up and potential impact to transit results going forward.

你好，謝謝。也許只是 NCA 整合了一些程式化廣告技術功能的更新。您知道時間安排如何以及對未來交通結果的潛在影響。

So, thanks, thanks for the question, Cameron. You know, you heard the call out there that you know, 7% of the revenue generated in Q3. On the MTA came through automated channels. Basically, we've now hooked up our liveaboards, you know, which are the, all of the screens that you see on platforms. We've also hooked up the urban panels that are the panels that you see above the subway entrances. What we haven't yet done is hook up on the mobile panels which are, you know, on train on the subway and also metro North and Long Island railroad. So, we'll get that benefit as we go down the track and that's going to be over the over the coming months.

所以，謝謝卡梅倫提出這個問題。你知道，你聽到了那裡的呼聲，你知道，第三季產生的收入的 7%。MTA 是透過自動化管道進行的。基本上，我們現在已經連接了我們的船宿，你知道，這是你在平台上看到的所有螢幕。我們還連接了城市面板，也就是您在地鐵入口上方看到的面板。我們還沒有做的是連接移動面板，這些面板位於地鐵、北線和長島鐵路的火車上。因此，當我們走上正軌時，我們將獲得這種好處，這將在未來幾個月內實現。

We're also in the process of hooking up our assets in Boston and DC and San Francisco. So, you know, we'll get a bit of benefit also there in 2025. You know, we've been growing transit very nicely this year. It was, you know, good for that to be able to, you know, talk about the MTA in terms of the whole sort of you know, being net cash positive as we go forward. So that's a, it's a great milestone for the business and we are, you know, excited, I think by the growth opportunity that the transit business will give us as we go through 2025.

我們也正在連結我們在波士頓、華盛頓特區和舊金山的資產。所以，你知道，到 2025 年我們也會從中受益。你知道，今年我們的交通發展非常好。你知道，能夠從你知道的整體角度談論 MTA 是一件好事，隨著我們的前進，淨現金為正。因此，這對我們的業務來說是一個偉大的里程碑，我認為我們對 2025 年交通業務將為我們帶來的成長機會感到興奮。

Got it. Thank you. And then just secondly, are you able to size the political ad spending impact maybe how that you know, had trended over four Q. Thanks.

知道了。謝謝。其次，您是否能夠衡量政治廣告支出影響的大小，也許您知道，在四個問題上的趨勢如何。

I can take that for the year in 2024. We got about $15 million of political. I can compare that to 2020 when we had about 10. So, a little more effort, a little more involvement of our government fairs team, I think led to a big increase. About half of that amount is in the fourth quarter, obviously primarily, October.

我可以將其視為 2024 年。我們獲得了大約 1500 萬美元的政治資金。我可以將其與 2020 年進行比較，當時我們有大約 10 個。因此，我認為，我們的政府展會團隊多一點努力、多一點參與，就會帶來大幅成長。其中大約一半發生在第四季度，顯然主要是十月。

Our next question comes from [Latana with Tt Cowen]. Please go ahead.

我們的下一個問題來自[拉塔納與 Tt Cowen]。請繼續。

Thanks for taking the question. I wonder if you could, talk in a little bit more detail about the increased spend at corporate and I'm just trying to get a sense for, you know, how much of that can we think of as being one time or non-recurring? And, you know, the higher professional fees was that just for the Canada sale that's easily dismissed if that's the case, but, you know, the management consulting project and higher comp sound a little bit more nebulous and, or recurring. And then particularly I'm not clear on exactly what happened with the, the benefit plan. I think you mentioned that is unfunded but yet required, some incremental expense as well. So, appreciate your help there.

感謝您提出問題。我想知道你是否可以更詳細地談談公司支出的增加，我只是想了解一下，你知道，我們可以將其中多少視為一次性或非經常性支出？而且，你知道，較高的專業費用只是針對加拿大銷售，如果是這種情況，很容易被駁回，但是，你知道，管理諮詢項目和更高的薪酬聽起來有點模糊，或者反覆出現。特別是我不清楚福利計劃到底發生了什麼事。我想你提到這是沒有資金支持但仍然需要的，還有一些增量費用。所以，感謝您的幫忙。

Oh, sure. It's Math again, I'll break it down. Just the benefit plan is an unfunded deferred comp plan. You know, I think tied to the S&P 500 or another equity index. So basically, when stock markets go up in a quarter, it's a higher expense when they go down, it's a good guy. So, there's almost all in the line item is relatively small so it sticks out. So there's always going to be some volatility from that and, we just try to make people aware of, you know, up or down or order of magnitude. The professional fees and corporate is a nationally recognized management consulting firm.

哦，當然。又是數學，我來分解一下。只是福利計劃是一項無資金支持的遞延補償計劃。你知道，我認為與標準普爾 500 指數或其他股票指數有關。所以基本上，當股市在一個季度上漲時，當股市下跌時，費用會更高，這是一個好人。因此，幾乎所有的訂單項目都相對較小，因此很突出。因此，總是會有一些波動，我們只是試著讓人們意識到，你知道，上升或下降或數量級。專業收費公司是國家認可的管理顧問公司。

We've been working with most of the year, helping us, we look at our, our assets and, and generating more revenue and more [OBIDA] of the assets that we have. We think the investment this year will add some benefit this year, but a lot more in the future. So, we, we're, you know, learning some new techniques and improving our already strong performance around our markets. I think those are two big ones we called out. comp in 2024. It's mostly, we were a little bit off last year and our numbers were, we're crewing closer as you mentioned. We're, you know, at the high end of our SFO guide, I think we're accruing, you know, closer to 100% of our short-term compensation plans versus last year. We were a little bit under our 100% targets. Hopefully that's helpful.

我們這一年的大部分時間都在工作，幫助我們，我們審視我們的資產，並創造更多的收入和更多[OBIDA]我們擁有的資產。我們認為今年的投資將為今年帶來一些收益，但在未來會帶來更多收益。所以，我們正在學習一些新技術，並提高我們在市場上已經很強勁的表現。我認為這是我們呼籲的兩個大問題。 2024 年比較。主要是，我們去年有點偏離，而我們的數字是，正如您所提到的，我們正在接近。你知道，我們處於 SFO 指南的高端，我認為與去年相比，我們的短期薪酬計劃接近 100%。我們略低於 100% 的目標。希望有幫助。

Very helpful. And if I could just squeeze in one more, I was actually, if anything seems like national came in a little bit better than I would have, than I might have thought. And I'm wondering if you're seeing that continue in the fourth quarter, or is that sort of, was it a kind of a flash in the pan and maybe we see software performance going forward?

非常有幫助。如果我能再擠進一個，實際上，如果有什麼事情看起來像全國性的，比我想像的要好一點。我想知道您是否會看到這種情況在第四季度繼續下去，或者是一種曇花一現的情況，也許我們會看到軟體效能向前發展？

Yeah. National was you know, certainly better in Q3 than we've seen for the first 2 quarters. And you know, as, as we look at it, as we look at it now, we'd expect national to be national to be up in Q4.

是的。你知道，國家黨在第三季的表現肯定比我們在前兩季看到的還要好。你知道，正如我們現在所看到的那樣，我們預計國家隊將在第四季度上升。

Thanks very much.

非常感謝。

Our next question today comes from [in Thein with Oppenheimer], your line is open.

今天我們的下一個問題來自[泰因與奧本海默]，您的線路已開通。

Alright, great. Can you guys maybe give us an idea of what conversions look like for the remainder of the year and how you're thinking about it into 2025?

好吧，太棒了。你們能否告訴我們今年剩餘時間的轉換情況以及您如何考慮 2025 年的情況？

Sure, sure. I think we will get our conversions. We usually target a little higher number. Probably digital is about 100 to 150 maybe on the low end of that, fewer acquisitions this year, fewer management agreements and around the same number of conversions. So we'll be adding fewer digitals this year. I think the number 25 I'm not prepared to give a precise guidance range, but we're pretty confident it's going to be higher in 25 than in 24.

當然，當然。我想我們會得到轉變。我們通常會設定更高的目標數字。數位化可能是 100 到 150 左右，可能是這個數字的低端，今年收購較少，管理協議較少，但轉換數量大約相同。因此，今年我們將添加更少的數字。我認為 25 號我不準備給出精確的指導範圍，但我們非常有信心 25 號的數值會比 24 號更高。

Okay, thanks. And then also if I could speak in one more on the MTA and I don't know if you could answer this, but, you know, as far as the rates going up, I guess ridership is still kind of well below where it was pre COVID. I, is it, are you seeing, either advertisers returning or kind of what's driving that rate? Just given that, you know, a lot of the ridership is just sort of stalled and any kind of view on what ridership might be, you know, doing going forward, I guess, you know, a lot of companies are kind of calling people back five days a week, but, and any thoughts there would be helpful. Thanks.

好的，謝謝。然後，如果我能再就 MTA 發表一篇演講，我不知道你是否能回答這個問題，但是，你知道，就費率的上漲而言，我想乘客量仍然遠低於原來的水平新冠疫情之前。我，是嗎，你是否看到，廣告商正在回歸，或者是什麼推動了這一速度？考慮到這一點，你知道，很多客流量都停滯不前，對未來客流量的任何看法，你知道，我想，你知道，很多公司都在打電話給人們每週回來五天，但是，任何想法都會有幫助。謝謝。

Yeah, thank you. I mean, we said right the way along that we anticipated we'd be able to get, you know, our revenues back up to pre COVID levels. You know, without the audience growing back to, or ridership, you know, growing to pre COVID levels. And that's basically because we just have a much better product, you know, we've undertaken this sort of huge digitization program. So now you can be more timely, you can be more creative. And it's just a very exciting product and I think that's really what's drawing advertisers back? And as we, you know, as we look at it, you know, I think we really feel very positive as, you know, from the question that we had earlier with regards to, you know, automated revenues that, that will you know, keep, keep driving, you know, a very, a pretty solid digital growth story on our transit assets and particularly on the MTA.

是的，謝謝。我的意思是，我們一路上就說過，我們預計我們能夠將我們的收入恢復到新冠疫情爆發前的水平。你知道，如果觀眾沒有恢復到新冠疫情之前的水平，或者客流量沒有恢復到新冠病毒爆發前的水平。這基本上是因為我們擁有更好的產品，你知道，我們已經實施了這個巨大的數位化計畫。所以現在你可以更及時，你可以更有創意。這是一個非常令人興奮的產品，我認為這才是吸引廣告商回來的真正原因？正如我們所看到的，你知道，我認為我們真的感到非常積極，因為，你知道，從我們之前提出的關於自動化收入的問題來看，你會知道，繼續，繼續推動，你知道，我們的交通資產，特別是MTA 的數位成長故事非常非常紮實。

Okay. Thank you very much.

好的。非常感謝。

Our next question comes from Daniel Oatly with Wells Fargo. Please go ahead.

我們的下一個問題來自富國銀行的丹尼爾·奧特利。請繼續。

Thank you. Good morning and maybe just one on national. You talked in the past about the headwind from the media and entertainment vertical. So just wondering how that vertical specifically is trended early in Q4? And do you expect the strong film slate later in the quarter to give you a further boost? Thank you.

謝謝。早安，也許只是一場全國賽。您過去談到了媒體和娛樂垂直領域的逆風。那麼只是想知道第四季初期該垂直領域的具體趨勢如何？您預計本季稍後強勁的電影陣容會為您帶來進一步的推動嗎？謝謝。

Yeah, thanks for the question. I think it's fair to say that this year we did expect that the media and entertainment category would sort of, you know, bounce back more strongly than we saw. It certainly seems to have taken, I mean, not just for us, but I mean, for the industry as a whole longer, I think to get over the impacts of the both strikes last year and where we stand right now, I think, you know, we feel okay about the movie category as we look into you know, the fourth quarter and there are other areas of entertainment that are doing well for us.

是的，謝謝你的提問。我認為可以公平地說，今年我們確實預計媒體和娛樂類別的反彈會比我們看到的更強勁。我的意思是，這當然似乎不僅對我們而言，而且對整個行業而言，我認為要克服去年兩次罷工的影響以及我們現在所處的位置，我認為，你知道，我們對電影類別感覺良好，因為我們調查了第四季度，還有其他娛樂領域對我們來說表現良好。

You know, well, for miscellaneous entertainment looks like it's going to be up for us in Q4. You know, I'm pleased to say also that it looks like tech is going to be us. So, listen, you know, we have a basket of advertisers and the great thing about our portfolio is that if you're seeing a little bit of weakness in one place, you could typically make up for it with some strength in some of the other verticals. I think as we look into 2025, I think that we, you know, feel much better as we look at some of the temple films that are coming through in 2025. So, I guess we'll get the comp benefit then.

你知道，雜項娛樂看起來將在第四季出現。你知道，我也很高興地說，看起來科技將成為我們。所以，聽著，你知道，我們有一籃子廣告商，我們的投資組合的偉大之處在於，如果你在一個地方看到一點弱點，你通常可以通過某些方面的優勢來彌補它其他垂直領域。我認為，當我們展望 2025 年時，當我們看到 2025 年上映的一些寺廟電影時，我們會感覺好多了。所以，我想我們屆時會獲得補償福利。

Thank you.

謝謝。

Thank you. And our next question comes from Patrick Sholl with Barrington research. Your line is open.

謝謝。我們的下一個問題來自巴靈頓研究中心的派崔克‧肖爾。您的線路已開通。

Hi, good morning. Thank you. I got another question about the MTA. Do you sense that you do get some recovery and writers, I guess, is there any sort of concern you have in like the baskets of out of home spending for advertisers and that maybe being reallocated from kind of the billboard side to the transit side.

嗨，早安。謝謝。我還有一個關於 MTA 的問題。你是否感覺到你確實得到了一些恢復，我想，作家們，你是否有任何擔憂，例如廣告商的戶外支出籃子，以及可能從廣告牌一側重新分配到交通一側。

You know, typically when you look at well, we do have, you know, a good crossover between people that uses, you know, on the billboard side of the business and the transit business, we also have some very specific very specific advertisers in transit who are buying transit from for, for different reasons, you know, the commuting audience on metro North, you know, is not necessarily the same audiences get on the cross Bronx Expressway.

你知道，通常當你仔細觀察時，你知道，我們確實在廣告牌業務和交通業務方面使用的人們之間有很好的交叉，我們也有一些非常具體的廣告商出於不同的原因，購買公共交通的人，你知道，北地鐵的通勤受眾不一定是穿過布朗克斯高速公路的受眾。

So, you know, that I think has always been the case. You know, we have sort of you know, very high-end audiences say in various parts of the parts of the MTA system. And, you know, I think most commentators believe that, you know, ridership continues to, to, to creep up in cities, I think we do. But you know what we're kind of doing just fine without it because whichever way you look at it, you know, 4 million sets of eyeballs every single day or more than that, is a huge, huge audience and for advertisers and I think people are just, you know, beginning to, you know, we appreciate that.

所以，你知道，我認為情況一直如此。您知道，我們在 MTA 系統的各個部分都有非常高階的受眾所說的內容。而且，我認為大多數評論員都認為，城市的客流量持續攀升，我認為我們確實如此。但你知道，如果沒有它，我們會做得很好，因為無論你怎麼看，你知道，每天有 400 萬組眼球或更多，對於廣告商來說，這是一個巨大的受眾，我認為人們只是，你知道，開始，你知道，我們對此表示讚賞。

Okay. And then maybe on the automated buying side, I guess you said that that's helped bring in new advertisers. How, what sort of impact has that had on pricing.

好的。然後也許在自動購買方面，我猜你說過這有助於引入新的廣告商。這對定價有何影響？

So, when we look at the pricing that we achieve on a CPM basis through our programmatic channels, they're about a dollar higher than the CPMs that we achieve through our direct sales force. So, you know, in general, do you know what I mean? Programmatic is you know, a very sort of positive, positive part of our business, positive part of our business right now, not all of the dollars that we get on programmatic are necessarily absolutely new. Some of them might have come through a different channel. So, they may, you know, so I should make that point. But also, I mean we take, you know, getting revenues for a bunch of advertisers that frankly, we never would have expected or, and in some cases haven't even heard of. So, you know, really is extending the number of the number of different advertisers on a weekly basis on our digital platforms.

因此，當我們查看透過程序化管道以每千次展示費用為基礎實現的定價時，它們比我們透過直接銷售人員實現的每千次展示費用高出約一美元。所以，總的來說，你明白我的意思嗎？你知道，程序化是我們業務的一個非常積極的部分，是我們現在業務的積極部分，並非我們透過程式化獲得的所有資金都一定是絕對新的。其中一些可能是透過不同的管道獲得的。所以，他們可能，你知道，所以我應該指出這一點。而且，我的意思是，我們為一群廣告商獲得收入，坦白說，我們從未預料到，或者在某些情況下甚至沒有聽說過。所以，你知道，我們的數位平台上每週都會增加不同廣告商的數量。

Okay. Thank you.

好的。謝謝。

Thank you. We have no further questions. So, I'd like to turn the call back to Jeremy now for any closing comments.

謝謝。我們沒有其他問題了。因此，我現在想將電話轉回給 Jeremy，以徵求結束意見。

So, thanks for that. And thanks to everyone for joining us today. I'm sure I'll be seeing many of you at the various conferences and events this winter, but for those that I don't looking forward to presenting our full year results to you in February.

所以，謝謝你。感謝大家今天加入我們。我相信今年冬天我會在各種會議和活動中見到你們中的許多人，但對於那些我不期待在二月份向你們展示我們全年業績的人。

Thank you very much. Indeed.

非常感謝。的確。

This concludes our call today. Thank you for joining. You may now disconnect your line.

我們今天的電話會議到此結束。感謝您的加入。現在您可以斷開線路。