Financial Data and Key Metrics Changes - The company revised its guidance for AFFO per share for the full year of 2020 to a range of $4.16 to $4.56, indicating a full-year revenue decline of approximately 13% to 14% [5] - Acquisition-adjusted revenue declined by 23.4% year-over-year, while adjusted EBITDA decreased by 35.9% to $133.2 million [13][14] - Fully diluted AFFO contracted by 38.3% to $0.95 per share [14] Business Line Data and Key Metrics Changes - Local sales outperformed national sales, with local revenue accounting for 81% of total sales, while national revenue represented 19% [15] - The company experienced a significant decline in revenue from national markets, which was nearly double that of local markets [15] Market Data and Key Metrics Changes - Small and middle markets continued to perform better than larger markets, with relative strength seen in sectors such as health care, education, insurance, real estate, and home improvement [7] - Weakness was noted in amusements, entertainment, sports, retail, and fine dining sectors [7][35] Company Strategy and Development Direction - The company is focusing on aligning its cost base to current conditions, targeting $50 million in expense savings, and is now expecting to achieve at least $60 million [9] - The company plans to resume digital deployments in 2021, with an initial target of approximately 300 new digital units [46] Management's Comments on Operating Environment and Future Outlook - Management noted a sequential improvement in contract pacing every month, with June showing stronger contract value than June 2019 [6] - The company expressed caution regarding uncertainties related to COVID-19 and its impact on back-to-school and sports events [8] Other Important Information - The company ended the quarter with total leverage of 4.15 times net debt-to-EBITDA, well below the covenant of 7 times [20] - The company has approximately $1.1 billion in liquidity, including cash on hand and available credit [21] Q&A Session Summary Question: Can you comment on the pacing of contract dollars between Q3 and Q4 in 2020? - Management indicated that contract pacing is showing sequential improvement, suggesting Q4 will benefit from contracts written in June, but customers remain cautious and are buying shorter-term [38] Question: Can you discuss pricing versus occupancy trends and how this disruption compares to the Great Recession? - Management believes they can hold pricing better than during the Great Recession, although larger markets are facing more pricing pressure compared to smaller markets [41][42] Question: How has Q3 started compared to Q2? - Management reported that sequentially, July is better than June, indicating a recovery trend despite the second surge of COVID-19 [50] Question: What verticals have seen recovery throughout Q2? - Management noted recovery in services, education, and regional casinos, while Las Vegas has faced challenges [53][54]

PART I — FINANCIAL INFORMATION This section presents the unaudited condensed consolidated financial statements and management's discussion for Lamar Advertising Company and its subsidiary, Lamar Media Corp [ITEM 1. FINANCIAL STATEMENTS](index=5&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents unaudited condensed consolidated financial statements and detailed notes for Lamar Advertising Company and Lamar Media Corp [Lamar Advertising Company - Condensed Consolidated Balance Sheets](index=5&type=section&id=Lamar%20Advertising%20Company%20-%20Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of Lamar Advertising Company's financial position, detailing assets, liabilities, and stockholders' equity as of June 30, 2020, and December 31, 2019 | ASSETS (in thousands) | June 30, 2020 | December 31, 2019 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $177,093 | $26,188 | | Total current assets | $444,237 | $310,169 | | Total assets | $5,981,581 | $5,941,155 | | LIABILITIES AND STOCKHOLDERS' EQUITY (in thousands) | June 30, 2020 | December 31, 2019 | | Total current liabilities | $393,862 | $672,808 | | Long-term debt, net | $3,146,779 | $2,753,604 | | Total liabilities | $4,858,210 | $4,760,849 | | Stockholders' equity | $1,123,371 | $1,180,306 | | Total liabilities and stockholders' equity | $5,981,581 | $5,941,155 | - Cash and cash equivalents significantly increased from **$26.188 million** at December 31, 2019, to **$177.093 million** at June 30, 2020[14](index=14&type=chunk) - Total current liabilities decreased from **$672.808 million** to **$393.862 million**, primarily due to a reduction in current maturities of long-term debt[14](index=14&type=chunk) [Lamar Advertising Company - Condensed Consolidated Statements of Income and Comprehensive Income](index=6&type=section&id=Lamar%20Advertising%20Company%20-%20Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) This statement details Lamar Advertising Company's financial performance, including revenues, operating income, and net income for the three and six months ended June 30, 2020 and 2019 | Statements of Income (in thousands, except per share data) | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :------------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net revenues | $347,652 | $448,742 | $754,221 | $833,199 | | Operating income | $66,452 | $144,106 | $163,023 | $234,889 | | Net income | $31,429 | $118,396 | $71,922 | $169,649 | | Basic earnings per share | $0.31 | $1.18 | $0.71 | $1.70 | | Diluted earnings per share | $0.31 | $1.18 | $0.71 | $1.69 | | Cash dividends declared per share of common stock | $0.50 | $0.96 | $1.50 | $1.92 | - Net revenues decreased by **22.5%** for the three months ended June 30, 2020, and by **9.5%** for the six months ended June 30, 2020, compared to the same periods in 2019[16](index=16&type=chunk) - Net income saw a significant decline, dropping by **73.5%** for the three-month period and **57.6%** for the six-month period year-over-year[16](index=16&type=chunk) [Lamar Advertising Company - Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Lamar%20Advertising%20Company%20-%20Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This statement outlines changes in Lamar Advertising Company's stockholders' equity, including net income, dividends, and treasury stock transactions | Stockholders' Equity (in thousands) | December 31, 2019 | June 30, 2020 | | :---------------------------------- | :---------------- | :------------ | | Total Stockholders' Equity | $1,180,306 | $1,123,371 | | Net income (six months) | N/A | $71,922 | | Dividends/distributions to common shareholders (six months) | N/A | $(151,083) | | Purchase of treasury stock (six months) | N/A | $(10,124) | - Total stockholders' equity decreased from **$1,180.306 million** at December 31, 2019, to **$1,123.371 million** at June 30, 2020[18](index=18&type=chunk) - Common stock dividends/distributions for the six months ended June 30, 2020, totaled **$151.083 million**, a decrease from **$191.954 million** in the prior year[18](index=18&type=chunk)[94](index=94&type=chunk) [Lamar Advertising Company - Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Lamar%20Advertising%20Company%20-%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement details Lamar Advertising Company's cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2020 and 2019 | Cash Flows (in thousands) | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $210,677 | $237,049 | | Net cash used in investing activities | $(57,677) | $(137,145) | | Net cash used in financing activities | $(1,903) | $(104,347) | | Net increase (decrease) in cash and cash equivalents | $150,905 | $(4,240) | | Cash and cash equivalents at end of period | $177,093 | $17,254 | - Operating cash flows decreased by **$26.372 million** YoY, from **$237.049 million** in 2019 to **$210.677 million** in 2020[22](index=22&type=chunk) - Investing activities used significantly less cash in 2020 (**$57.677 million**) compared to 2019 (**$137.145 million**), primarily due to reduced acquisitions and capital expenditures[22](index=22&type=chunk) - Financing activities shifted from a significant cash outflow of **$104.347 million** in 2019 to a much smaller outflow of **$1.903 million** in 2020, driven by debt refinancing activities[22](index=22&type=chunk) [Lamar Advertising Company - Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Lamar%20Advertising%20Company%20-%20Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures regarding the accounting policies, estimates, and specific financial statement line items for Lamar Advertising Company [Significant Accounting Policies](index=10&type=section&id=Significant%20Accounting%20Policies) This section outlines key accounting policies and the impact of COVID-19 on estimates and goodwill assessment - The Company updated its goodwill qualitative assessment as of June 30, 2020, due to COVID-19 impacts, concluding **no impairment loss** for goodwill or long-lived assets[26](index=26&type=chunk)[27](index=27&type=chunk) - Estimates and assumptions in financial statements now explicitly consider potential impacts from the **COVID-19 pandemic**[28](index=28&type=chunk) [Revenues](index=10&type=section&id=Revenues) This section details the sources and recognition methods of advertising revenues, including disaggregated revenue data by segment - Advertising revenues are primarily from billboard, logo, and transit displays, recognized ratably over contract life, with contracts prior to January 1, 2019, under ASC 840 and most amended/new contracts under ASC 606[29](index=29&type=chunk) Disaggregated Revenue (in thousands) | Disaggregated Revenue (in thousands) | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Billboard Advertising | $312,095 | $393,798 | $667,400 | $729,993 | | Logo Advertising | $21,053 | $21,811 | $42,445 | $41,723 | | Transit Advertising | $14,504 | $33,133 | $44,376 | $61,483 | | Net Revenues | $347,652 | $448,742 | $754,221 | $833,199 | - Billboard and Transit Advertising revenues experienced **significant declines** for both the three and six months ended June 30, 2020, compared to 2019, primarily due to the **COVID-19 pandemic**[36](index=36&type=chunk) [Leases](index=11&type=section&id=Leases) This section provides details on operating lease costs and the maturity schedule of operating lease liabilities - Operating lease costs for the six months ended June 30, 2020, were **$158.734 million**, an increase from **$155.166 million** in 2019[37](index=37&type=chunk) - Variable lease costs decreased significantly for both the three and six months ended June 30, 2020, compared to 2019[37](index=37&type=chunk) Operating Lease Liabilities Maturities (in thousands) | Operating Lease Liabilities Maturities (in thousands) | Amount | | :------------------------------------ | :----- | | 2020 | $114,518 | | 2021 | $206,414 | | 2022 | $181,916 | | 2023 | $158,968 | | 2024 | $141,902 | | Thereafter | $854,924 | | Total undiscounted operating lease payments | $1,658,642 | | Less: Imputed interest | $(430,667) | | Total operating lease liabilities | $1,227,975 | [Stock-Based Compensation](index=12&type=section&id=Stock-Based%20Compensation) This section outlines stock option grants and the expense recognized for performance-based stock awards - The Company granted options for **32,000 shares** of Class A common stock during the six months ended June 30, 2020, with **2,470,063 shares** available for future grant[43](index=43&type=chunk) - Stock-based compensation expense related to performance-based awards was **$3.494 million** for the six months ended June 30, 2020[46](index=46&type=chunk) [Depreciation and Amortization](index=12&type=section&id=Depreciation%20and%20Amortization) This section presents the breakdown of depreciation and amortization expenses across different categories Depreciation and Amortization (in thousands) | Depreciation and Amortization (in thousands) | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Direct advertising expenses | $60,142 | $58,200 | $118,839 | $116,315 | | General and administrative expenses | $1,151 | $1,140 | $2,432 | $2,261 | | Corporate expenses | $2,705 | $2,353 | $5,040 | $4,623 | | Total | $63,998 | $61,693 | $126,311 | $123,199 | - Total depreciation and amortization expense increased to **$126.311 million** for the six months ended June 30, 2020, from **$123.199 million** in the prior year[47](index=47&type=chunk) [Goodwill and Other Intangible Assets](index=13&type=section&id=Goodwill%20and%20Other%20Intangible%20Assets) This section provides details on the gross carrying amount and accumulated amortization of intangible assets, including goodwill Intangible Assets (in thousands) | Intangible Assets (in thousands) | June 30, 2020 Gross Carrying Amount | June 30, 2020 Accumulated Amortization | December 31, 2019 Gross Carrying Amount | December 31, 2019 Accumulated Amortization | | :------------------------------- | :---------------------------------- | :------------------------------------- | :-------------------------------------- | :------------------------------------- | | Customer lists and contracts | $644,330 | $551,309 | $641,714 | $539,405 | | Site locations | $2,399,355 | $1,550,917 | $2,384,520 | $1,509,335 | | Goodwill | $2,165,697 | $253,536 | $2,165,810 | $253,536 | - Goodwill remained largely stable at approximately **$2.166 billion**, with **no impairment** recognized as of June 30, 2020[49](index=49&type=chunk) [Asset Retirement Obligations](index=13&type=section&id=Asset%20Retirement%20Obligations) This section details the changes in asset retirement obligations, including additions, accretion expense, and settlements Asset Retirement Obligations (in thousands) | Asset Retirement Obligations (in thousands) | Amount | | :---------------------------------------- | :----- | | Balance at December 31, 2019 | $226,137 | | Additions | $421 | | Accretion expense | $2,129 | | Liabilities settled | $(3,742) | | Balance at June 30, 2020 | $224,945 | - Asset retirement obligations slightly decreased to **$224.945 million** at June 30, 2020, from **$226.137 million** at December 31, 2019[50](index=50&type=chunk) [Distribution Restrictions](index=13&type=section&id=Distribution%20Restrictions) This section outlines the restrictions on Lamar Media's ability to distribute funds to Lamar Advertising, governed by debt indentures and credit facilities - Lamar Media's ability to distribute to Lamar Advertising is restricted by indentures and its senior credit facility, with permitted transfers up to **$3.430 billion** as of June 30, 2020, under note terms[51](index=51&type=chunk) - As of June 30, 2020, Lamar Media's senior credit facility allowed transfers up to Lamar Advertising's taxable income, provided total debt ratio was less than **7.0 to 1** and secured debt ratio did not exceed **4.5 to 1**, with available cumulative credit of **$2.180 billion**[52](index=52&type=chunk) [Earnings Per Share](index=13&type=section&id=Earnings%20Per%20Share) This section reports the basic and diluted earnings per share for the three and six months ended June 30, 2020 and 2019 - Basic and diluted EPS for the three months ended June 30, 2020, were **$0.31**, down from **$1.18** in 2019[16](index=16&type=chunk) - Basic and diluted EPS for the six months ended June 30, 2020, were **$0.71**, down from **$1.70** and **$1.69** respectively in 2019[16](index=16&type=chunk) [Long-term Debt](index=14&type=section&id=Long-term%20Debt) This section details the Company's long-term debt structure, including senior credit facilities and various senior notes, and recent refinancing activities Long-term Debt (in thousands) | Long-term Debt (in thousands) | June 30, 2020 Debt | June 30, 2020 Debt, net of deferred financing costs | December 31, 2019 Debt | December 31, 2019 Debt, net of deferred financing costs | | :---------------------------- | :----------------- | :------------------------------------------------ | :--------------------- | :---------------------------------------------------- | | Senior Credit Facility | $598,339 | $585,642 | $1,127,069 | $1,117,992 | | 5% Senior Subordinated Notes | $535,000 | $532,214 | $535,000 | $531,763 | | 5 3/4% Senior Notes | $653,988 | $646,817 | $654,345 | $646,593 | | 4 7/8% Senior Notes | $400,000 | $394,210 | — | — | | 4% Senior Notes | $400,000 | $394,390 | — | — | | 3 3/4% Senior Notes | $600,000 | $591,606 | — | — | | Total Debt | $3,199,014 | $3,155,899 | $3,004,532 | $2,980,118 | - Lamar Media refinanced its senior credit facility on February 6, 2020, establishing a new **$750 million** revolving credit facility and a **$600 million** Term B loan facility maturing in 2025 and 2027, respectively[56](index=56&type=chunk)[57](index=57&type=chunk) - New senior notes were issued in 2020: **$600 million** of 3 3/4% Senior Notes due 2028, **$400 million** of 4% Senior Notes due 2030, and **$400 million** of 4 7/8% Senior Notes due 2029[78](index=78&type=chunk)[80](index=80&type=chunk)[82](index=82&type=chunk) - The Company incurred an **$18.184 million** loss on debt extinguishment for the six months ended June 30, 2020, primarily from the early repayment of 5 3/8% Senior Notes and refinancing of the senior credit facility[163](index=163&type=chunk) [Fair Value of Financial Instruments](index=19&type=section&id=Fair%20Value%20of%20Financial%20Instruments) This section provides the estimated fair value of the Company's long-term debt compared to its carrying amount - The estimated fair value of the Company's long-term debt (including current maturities) was **$3.159 billion**, which did not exceed the carrying amount of **$3.199 billion** as of June 30, 2020[87](index=87&type=chunk) [New Accounting Pronouncements](index=19&type=section&id=New%20Accounting%20Pronouncements) This section discusses the adoption of new accounting standards, including Topic 842 on Leases and ASU 2016-13 on Credit Losses - The Company adopted Topic 842, Leases, effective January 1, 2019, recognizing **$1.2 billion** in additional operating liabilities and corresponding ROU assets[89](index=89&type=chunk)[91](index=91&type=chunk) - ASU 2016-13, Financial Instruments – Credit Losses, was adopted on January 1, 2020, with **no material impact** on consolidated financial statements, but the allowance for credit losses now considers **COVID-19 impacts**[93](index=93&type=chunk) [Dividends/Distributions](index=20&type=section&id=Dividends%2FDistributions) This section reports cash distributions to common stockholders and the Company's policy for maintaining REIT status Dividends/Distributions (in thousands, except per share data) | Dividends/Distributions (in thousands, except per share data) | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :---------------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cash distributions to common stockholders (aggregate) | $50,396 | $96,039 | $151,083 | $191,954 | | Cash distributions to common stockholders (per share) | $0.50 | $0.96 | $1.50 | $1.92 | - Common stock cash distributions decreased significantly in 2020 compared to 2019, with **$0.50 per share** for Q2 2020 vs. **$0.96** in Q2 2019[94](index=94&type=chunk) - The Company intends to distribute at least **90%** of its REIT taxable income to maintain REIT status, with future distributions at the Board's discretion, considering liquidity, leverage, and operating environment[217](index=217&type=chunk) [Information about Geographic Areas](index=20&type=section&id=Information%20about%20Geographic%20Areas) This section provides a breakdown of revenues and long-lived assets from foreign countries Geographic Information (in thousands) | Geographic Information (in thousands) | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Revenues from foreign countries | $11,022 | $17,057 | | Net carrying value of long-lived assets in foreign countries (as of June 30) | $5,406 | $4,549 | - Revenues from foreign countries decreased by **35.3%** for the six months ended June 30, 2020, compared to the same period in 2019[95](index=95&type=chunk) [Stockholders' Equity](index=20&type=section&id=Stockholders'%20Equity) This section details the availability under the 'At-the-Market' Offering Program and the Board-authorized share repurchase program - As of June 30, 2020, **$336.668 million** remained available to be sold under the 'At-the-Market' Offering Program[96](index=96&type=chunk) - The Board authorized a repurchase program for up to **$250 million** of Class A common stock, expiring September 30, 2021, with **no repurchases** made as of June 30, 2020[101](index=101&type=chunk) [Subsequent Event](index=21&type=section&id=Subsequent%20Event) This section reports Lamar Media's announced intent to redeem a portion of its 5% Notes after the reporting period - On July 30, 2020, Lamar Media announced its intent to redeem **$267.5 million** of its 5% Notes on August 31, 2020, leaving **$267.5 million** outstanding[102](index=102&type=chunk) [Lamar Media Corp. - Condensed Consolidated Financial Statements](index=22&type=section&id=Lamar%20Media%20Corp.%20-%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Lamar Media Corp., a wholly-owned subsidiary of Lamar Advertising Company - Lamar Media Corp. is a wholly-owned subsidiary of Lamar Advertising Company, and its financial statements are presented separately[4](index=4&type=chunk) [Lamar Media Corp. - Condensed Consolidated Balance Sheets](index=22&type=section&id=Lamar%20Media%20Corp.%20-%20Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of Lamar Media Corp.'s financial position, detailing assets, liabilities, and stockholder's equity | ASSETS (in thousands) | June 30, 2020 | December 31, 2019 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $176,593 | $25,688 | | Total current assets | $443,737 | $309,669 | | Total assets | $5,964,847 | $5,924,421 | | LIABILITIES AND STOCKHOLDER'S EQUITY (in thousands) | June 30, 2020 | December 31, 2019 | | Total current liabilities | $387,492 | $666,849 | | Long-term debt, net | $3,146,779 | $2,753,604 | | Total liabilities | $4,851,840 | $4,754,890 | | Stockholder's equity | $1,113,007 | $1,169,531 | | Total liabilities and stockholder's equity | $5,964,847 | $5,924,421 | [Lamar Media Corp. - Condensed Consolidated Statements of Income and Comprehensive Income](index=23&type=section&id=Lamar%20Media%20Corp.%20-%20Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) This statement details Lamar Media Corp.'s financial performance, including revenues, operating income, and net income | Statements of Income (in thousands) | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net revenues | $347,652 | $448,742 | $754,221 | $833,199 | | Operating income | $66,557 | $144,195 | $163,252 | $235,087 | | Net income | $31,534 | $118,485 | $72,151 | $169,847 | [Lamar Media Corp. - Condensed Consolidated Statements of Stockholder's Equity](index=24&type=section&id=Lamar%20Media%20Corp.%20-%20Condensed%20Consolidated%20Statements%20of%20Stockholder's%20Equity) This statement outlines changes in Lamar Media Corp.'s stockholder's equity, including net income and dividends to parent | Stockholder's Equity (in thousands) | December 31, 2019 | June 30, 2020 | | :---------------------------------- | :---------------- | :------------ | | Total Stockholder's Equity | $1,169,531 | $1,113,007 | | Net income (six months) | N/A | $72,151 | | Dividend to parent (six months) | N/A | $(161,208) | [Lamar Media Corp. - Condensed Consolidated Statements of Cash Flows](index=25&type=section&id=Lamar%20Media%20Corp.%20-%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement details Lamar Media Corp.'s cash flows from operating, investing, and financing activities | Cash Flows (in thousands) | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $182,753 | $214,344 | | Net cash used in investing activities | $(57,677) | $(137,145) | | Net cash provided by (used in) financing activities | $26,021 | $(81,642) | | Net increase (decrease) in cash and cash equivalents | $150,905 | $(4,240) | | Cash and cash equivalents at end of period | $176,593 | $16,754 | [Lamar Media Corp. - Notes to Condensed Consolidated Financial Statements](index=26&type=section&id=Lamar%20Media%20Corp.%20-%20Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for Lamar Media Corp.'s financial statements, substantially mirroring those of the parent company - Lamar Media Corp.'s notes to condensed consolidated financial statements are substantially equivalent to those of Lamar Advertising Company, with earnings per share data not provided as it is a wholly-owned subsidiary[114](index=114&type=chunk) - Lamar Media and its subsidiary guarantors fully and unconditionally guarantee Lamar Media's publicly issued notes, requiring condensed consolidating financial information[115](index=115&type=chunk) [Lamar Media Corp. - Condensed Consolidating Balance Sheet](index=27&type=section&id=Lamar%20Media%20Corp.%20-%20Condensed%20Consolidating%20Balance%20Sheet) This consolidating balance sheet provides a detailed view of Lamar Media Corp.'s assets, liabilities, and equity | Lamar Media Corp. Consolidated Balance Sheet (in thousands) | June 30, 2020 | December 31, 2019 | | :-------------------------------------------------------- | :------------ | :---------------- | | Total assets | $5,964,847 | $5,924,421 | | Total liabilities | $4,851,840 | $4,754,890 | | Stockholder's equity | $1,113,007 | $1,169,531 | [Lamar Media Corp. - Condensed Consolidating Statements of Income and Comprehensive Income](index=29&type=section&id=Lamar%20Media%20Corp.%20-%20Condensed%20Consolidating%20Statements%20of%20Income%20and%20Comprehensive%20Income) This consolidating income statement details Lamar Media Corp.'s revenues, operating income, and net income | Lamar Media Corp. Consolidated Income (in thousands) | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :--------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net revenues | $347,652 | $448,742 | $754,221 | $833,199 | | Operating income | $66,557 | $144,195 | $163,252 | $235,087 | | Net income | $31,534 | $118,485 | $72,151 | $169,847 | [Lamar Media Corp. - Condensed Consolidating Statement of Cash Flows](index=33&type=section&id=Lamar%20Media%20Corp.%20-%20Condensed%20Consolidating%20Statement%20of%20Cash%20Flows) This consolidating cash flow statement outlines Lamar Media Corp.'s cash movements from operating, investing, and financing activities | Lamar Media Corp. Consolidated Cash Flows (in thousands) | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :------------------------------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $182,753 | $214,344 | | Net cash used in investing activities | $(57,677) | $(137,145) | | Net cash provided by (used in) financing activities | $26,021 | $(81,642) | | Net increase (decrease) in cash and cash equivalents | $150,905 | $(4,240) | | Cash and cash equivalents at end of period | $176,593 | $16,754 | [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and operational results, highlighting the significant impact of the COVID-19 pandemic on revenues and expenses [Overview and COVID-19 Impact](index=35&type=section&id=Overview%20and%20COVID-19%20Impact) This section discusses the significant adverse effects of the COVID-19 pandemic on advertising demand and the Company's responsive cost-saving measures - The **COVID-19 pandemic** significantly reduced demand for out-of-home advertising, leading to a **22.5% decrease** in consolidated net revenues for the three months ended June 30, 2020[142](index=142&type=chunk)[143](index=143&type=chunk) - In response to the pandemic, the Company implemented cost-saving measures including reducing operating costs by **10.4%** for Q2 2020, curtailing capital projects, limiting acquisitions, and utilizing CARES Act provisions[144](index=144&type=chunk) - The Company observed an improvement in customer activity in June and July as government restrictions eased, but the recovery timing remains uncertain[143](index=143&type=chunk) [Acquisitions and Capital Expenditures](index=36&type=section&id=Acquisitions%20and%20Capital%20Expenditures) This section details the Company's acquisition activities and capital expenditures, noting reductions due to the COVID-19 pandemic - The Company completed acquisitions totaling approximately **$26.2 million** during the six months ended June 30, 2020[149](index=149&type=chunk) Capital Expenditures (in thousands) | Capital Expenditures (in thousands) | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Billboard — traditional | $1,503 | $13,431 | $8,023 | $22,693 | | Billboard — digital | $5,227 | $14,418 | $16,802 | $26,037 | | Total capital expenditures | $10,565 | $34,609 | $36,274 | $60,560 | - Total capital expenditures decreased significantly to **$36.274 million** for the six months ended June 30, 2020, from **$60.560 million** in 2019, reflecting curtailed spending due to **COVID-19**[150](index=150&type=chunk) [Non-GAAP Financial Measures](index=37&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and explains the non-GAAP financial measures used by management to evaluate operating performance - Management uses non-GAAP measures like **Adjusted EBITDA**, **FFO**, **AFFO**, and acquisition-adjusted net revenue to evaluate operating performance[152](index=152&type=chunk) - **Adjusted EBITDA** is defined as net income before income tax, interest, debt extinguishment loss/gain, stock-based compensation, depreciation/amortization, asset disposition gain/loss, capitalized contract fulfillment costs, and ASC 842 impact[153](index=153&type=chunk) - **FFO** is defined as net income before real estate asset sale gains/losses and real estate related depreciation/amortization, with adjustments for unconsolidated affiliates and non-controlling interest[154](index=154&type=chunk) [Results of Operations - Lamar Advertising Company](index=38&type=section&id=Results%20of%20Operations%20-%20Lamar%20Advertising%20Company) This section analyzes the operational performance of Lamar Advertising Company, comparing financial results for the current and prior periods [Six Months Ended June 30, 2020 compared to Six Months Ended June 30, 2019](index=38&type=section&id=Six%20Months%20Ended%20June%2030%2C%202020%20compared%20to%20Six%20Months%20Ended%20June%2030%2C%202019) This section compares Lamar Advertising Company's financial performance for the six months ended June 30, 2020, against the same period in 2019 Financial Metric (in thousands) | Financial Metric (in thousands) | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | Change (Decrease) | Percent Change (Decrease) | | :------------------------------ | :----------------------------- | :----------------------------- | :---------------- | :------------------------ | | Net revenues | $754,221 | $833,199 | $(78,978) | (9.5)% | | Operating income | $163,023 | $234,889 | $(71,866) | (30.6)% | | Net income | $71,922 | $169,649 | $(97,727) | (57.6)% | | Adjusted EBITDA | $293,013 | $354,059 | $(61,046) | (17.2)% | | FFO | $189,666 | $264,266 | $(74,600) | (28.2)% | | AFFO | $209,323 | $253,033 | $(43,710) | (17.3)% | - Net revenues decreased by **$79.0 million (9.5%)** due to declines in billboard (**$62.6 million**) and transit (**$17.1 million**) advertising, primarily from the **COVID-19 pandemic**[159](index=159&type=chunk) - Operating income decreased by **$71.9 million**, and net income fell by **$97.7 million**, largely due to revenue declines and a **$18.2 million** loss on debt extinguishment[163](index=163&type=chunk)[166](index=166&type=chunk) [Three Months Ended June 30, 2020 compared to Three Months Ended June 30, 2019](index=40&type=section&id=Three%20Months%20Ended%20June%2030%2C%202020%20compared%20to%20Three%20Months%20Ended%20June%2030%2C%202019) This section compares Lamar Advertising Company's financial performance for the three months ended June 30, 2020, against the same period in 2019 Financial Metric (in thousands) | Financial Metric (in thousands) | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Change (Decrease) | Percent Change (Decrease) | | :------------------------------ | :------------------------------- | :------------------------------- | :---------------- | :------------------------ | | Net revenues | $347,652 | $448,742 | $(101,090) | (22.5)% | | Operating income | $66,452 | $144,106 | $(77,654) | (53.9)% | | Net income | $31,429 | $118,396 | $(86,967) | (73.5)% | | Adjusted EBITDA | $133,196 | $207,935 | $(74,739) | (35.9)% | | FFO | $92,103 | $159,289 | $(67,186) | (42.2)% | | AFFO | $96,060 | $154,108 | $(58,048) | (37.7)% | - Net revenues decreased by **$101.1 million (22.5%)** for the three months ended June 30, 2020, driven by **$81.7 million** and **$18.6 million** decreases in billboard and transit net revenues, respectively, due to the pandemic[173](index=173&type=chunk) - Operating income decreased by **$77.7 million**, and net income dropped by **$87.0 million**, reflecting the severe impact of reduced advertising demand[177](index=177&type=chunk)[180](index=180&type=chunk) [Liquidity and Capital Resources - Lamar Advertising Company](index=42&type=section&id=Liquidity%20and%20Capital%20Resources%20-%20Lamar%20Advertising%20Company) This section assesses Lamar Advertising Company's liquidity position, sources of cash, and capital resource management strategies [Overview and Sources of Cash](index=42&type=section&id=Overview%20and%20Sources%20of%20Cash) This section provides an overview of Lamar Advertising Company's total liquidity and the primary sources of its cash - As of June 30, 2020, total liquidity was approximately **$1.086 billion**, comprising **$177.1 million** in cash and cash equivalents, **$737.2 million** availability under the revolving credit facility, and **$171.8 million** under the Accounts Receivable Securitization Program[186](index=186&type=chunk) - Working capital increased by **$413.0 million** to a surplus of **$50.4 million** at June 30, 2020, primarily due to repayment of the Accounts Receivable Securitization Program and increased cash[187](index=187&type=chunk) - Cash provided by operating activities decreased to **$210.7 million** for the six months ended June 30, 2020, from **$237.0 million** in 2019, due to revenue declines offset by expense reductions[188](index=188&type=chunk) [Factors Affecting Sources of Liquidity](index=44&type=section&id=Factors%20Affecting%20Sources%20of%20Liquidity) This section discusses the debt covenants and restrictions that influence the Company's liquidity and capital management - The Company and Lamar Media must comply with covenants and restrictions under the senior credit facility and outstanding debt securities, including a secured debt ratio of less than or equal to **4.5 to 1.0** and a total debt ratio of less than **7.0 to 1.0** for certain debt incurrences[203](index=203&type=chunk)[204](index=204&type=chunk)[206](index=206&type=chunk) - As of June 30, 2020, the Company was in **compliance with all debt covenants**[64](index=64&type=chunk)[203](index=203&type=chunk) [Uses of Cash](index=46&type=section&id=Uses%20of%20Cash) This section details how Lamar Advertising Company utilized its cash, including capital expenditures, acquisitions, debt redemptions, and dividend payments - Capital expenditures, excluding acquisitions, were approximately **$36.3 million** for the six months ended June 30, 2020, with anticipated total 2020 capital expenditures updated to **$58.0 million** due to **COVID-19**[211](index=211&type=chunk) - Acquisition activity is being limited due to **COVID-19**, with **$26.2 million** spent on acquisitions in the first six months of 2020[212](index=212&type=chunk) - The Company redeemed **$510.0 million** of 5 3/8% Senior Notes on February 20, 2020, incurring a **$12.6 million** loss on debt extinguishment[214](index=214&type=chunk) - Quarterly cash dividends were **$1.00 per share** on March 31, 2020, and **$0.50 per share** on June 30, 2020, with future plans subject to Board discretion and REIT requirements[216](index=216&type=chunk)[217](index=217&type=chunk) [Off-Balance Sheet Arrangements](index=47&type=section&id=Off-Balance%20Sheet%20Arrangements) This section describes the Company's off-balance sheet commitments, primarily guaranteed minimum payments for advertising space - Off-balance sheet commitments include guaranteed minimum payments to transit municipalities and airport authorities for advertising space, which no longer meet ASC 842 lease criteria[219](index=219&type=chunk) [Commitments and Contingencies](index=47&type=section&id=Commitments%20and%20Contingencies) This section outlines the Company's contractual obligations, including long-term debt, interest, and operating leases Contractual Obligations (in millions) | Contractual Obligations (in millions) | Total | Less Than 1 Year | 1 - 3 Years | 3 - 5 Years | After 5 Years | | :---------------------------------- | :------ | :--------------- | :---------- | :---------- | :------------ | | Long-Term Debt | $3,155.9 | $9.1 | $0.0 | $533.0 | $2,613.8 | | Interest obligations on long term debt | $880.0 | $134.1 | $274.7 | $223.3 | $247.9 | | Billboard site and other operating leases | $1,758.9 | $246.2 | $406.6 | $308.1 | $798.0 | | Total payments due | $5,794.8 | $389.4 | $681.3 | $1,064.4 | $3,659.7 | Other Commercial Commitments (in millions) | Other Commercial Commitments (in millions) | Total Amount Committed | Less Than 1 Year | 1 - 3 Years | 3 - 5 Years | After 5 Years | | :----------------------------------------- | :--------------------- | :--------------- | :---------- | :---------- | :------------ | | Revolving Credit Facility | $750.0 | $0.0 | $0.0 | $750.0 | $0.0 | | Standby Letters of Credit | $12.8 | $12.3 | $0.5 | $0.0 | $0.0 | [Critical Accounting Estimates and Accounting Standards Update](index=48&type=section&id=Critical%20Accounting%20Estimates%20and%20Accounting%20Standards%20Update) This section reviews critical accounting policies and the impact of recent accounting standard adoptions - No material changes to critical accounting policies and estimates were reported since the 2019 Form 10-K[222](index=222&type=chunk) - The adoption of Topic 842, Leases, on January 1, 2019, resulted in recognizing **$1.2 billion** in operating lease liabilities and ROU assets[226](index=226&type=chunk) - The adoption of ASU 2016-13, Financial Instruments – Credit Losses, on January 1, 2020, had **no material impact**, but credit loss allowance now considers **COVID-19**[227](index=227&type=chunk) [Results of Operations - Lamar Media Corp.](index=49&type=section&id=Results%20of%20Operations%20-%20Lamar%20Media%20Corp.) This section analyzes the operational performance of Lamar Media Corp., comparing financial results for the current and prior periods [Six Months Ended June 30, 2020 compared to Six Months Ended June 30, 2019 (Lamar Media Corp.)](index=49&type=section&id=Six%20Months%20Ended%20June%2030%2C%202020%20compared%20to%20Six%20Months%20Ended%20June%2030%2C%202019%20(Lamar%20Media%20Corp.)) This section compares Lamar Media Corp.'s financial performance for the six months ended June 30, 2020, against the same period in 2019 Financial Metric (in thousands) | Financial Metric (in thousands) | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | Change (Decrease) | Percent Change (Decrease) | | :------------------------------ | :----------------------------- | :----------------------------- | :---------------- | :------------------------ | | Net revenues | $754,221 | $833,199 | $(78,978) | (9.5)% | | Operating income | $163,252 | $235,087 | $(71,835) | (30.6)% | | Net income | $72,151 | $169,847 | $(97,696) | (57.5)% | | Adjusted EBITDA | $293,242 | $354,257 | $(61,015) | (17.2)% | | FFO | $189,895 | $264,464 | $(74,569) | (28.2)% | | AFFO | $209,552 | $253,231 | $(43,679) | (17.2)% | - Lamar Media Corp. experienced a **9.5% decrease** in net revenues for the six months ended June 30, 2020, primarily from billboard and transit advertising declines due to the **pandemic**[229](index=229&type=chunk) - Net income for Lamar Media Corp. decreased by **57.5%** to **$72.151 million** for the six months ended June 30, 2020, compared to **$169.847 million** in 2019[236](index=236&type=chunk) [Three Months Ended June 30, 2020 compared to Three Months Ended June 30, 2019 (Lamar Media Corp.)](index=51&type=section&id=Three%20Months%20Ended%20June%2030%2C%202020%20compared%20to%20Three%20Months%20Ended%20June%2030%2C%202019%20(Lamar%20Media%20Corp.)) This section compares Lamar Media Corp.'s financial performance for the three months ended June 30, 2020, against the same period in 2019 Financial Metric (in thousands) | Financial Metric (in thousands) | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Change (Decrease) | Percent Change (Decrease) | | :------------------------------ | :------------------------------- | :------------------------------- | :---------------- | :------------------------ | | Net revenues | $347,652 | $448,742 | $(101,090) | (22.5)% | | Operating income | $66,557 | $144,195 | $(77,638) | (53.8)% | | Net income | $31,534 | $118,485 | $(86,951) | (73.4)% | | Adjusted EBITDA | $133,301 | $208,024 | $(74,723) | (35.9)% | | FFO | $92,208 | $159,378 | $(67,170) | (42.1)% | | AFFO | $96,165 | $154,197 | $(58,032) | (37.6)% | - Lamar Media Corp.'s net revenues decreased by **22.5%** for the three months ended June 30, 2020, primarily due to the ongoing pandemic's impact on advertising demand[243](index=243&type=chunk) - Net income for Lamar Media Corp. declined by **73.4%** to **$31.534 million** for the three months ended June 30, 2020, compared to **$118.485 million** in 2019[249](index=249&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines Lamar Advertising Company's and Lamar Media Corp.'s exposure to market risks, primarily focusing on interest rate risk associated with variable-rate debt instruments - As of June 30, 2020, approximately **$598.3 million (18.7%)** of the Company's long-term debt was variable-rate, primarily under the senior credit facility and Accounts Receivable Securitization Program[258](index=258&type=chunk) - A **200 basis point increase** in the weighted average interest rate (from **2.6% to 4.6%**) would have increased interest expense by approximately **$10.4 million** for the six months ended June 30, 2020[258](index=258&type=chunk) - The Company mitigates interest rate risk by maintaining a balance between variable and fixed-rate debt and has the capability to fix interest rates on borrowings for up to twelve months[259](index=259&type=chunk) [ITEM 4. Controls and Procedures](index=54&type=section&id=ITEM%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the Company's and Lamar Media's disclosure controls and procedures and reports no material changes in internal control over financial reporting - Management concluded that the Company's and Lamar Media's disclosure controls and procedures were **effective** as of June 30, 2020[261](index=261&type=chunk) - There have been **no material changes** in internal control over financial reporting during the last fiscal quarter[262](index=262&type=chunk) PART II — OTHER INFORMATION This section provides additional information including updated risk factors, equity security sales, and a list of exhibits [ITEM 1A. Risk Factors](index=55&type=section&id=ITEM%201A.%20Risk%20Factors) This section updates the risk factors, emphasizing the material adverse effects of pandemics like COVID-19 on the Company's business, financial results, and stock price - The **COVID-19 pandemic** has materially affected the business by reducing demand for out-of-home advertising, impacting vehicle volume, pedestrian traffic, and advertiser spending[265](index=265&type=chunk) - The pandemic has negatively affected advertising customer segments (entertainment, retail, restaurant, automotive) and caused a decline in the Company's stock price[265](index=265&type=chunk)[267](index=267&type=chunk) - The **TCJA** and **CARES Act** changes, particularly regarding net operating losses (NOLs) and interest expense deductions, could impact Lamar Advertising's ability to comply with REIT distribution requirements or avoid taxes[269](index=269&type=chunk)[271](index=271&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section states that there were no unregistered sales of equity securities or use of proceeds to report for the period - **No unregistered sales** of equity securities or use of proceeds were reported[272](index=272&type=chunk) [ITEM 5. Other Information](index=56&type=section&id=ITEM%205.%20Other%20Information) This section indicates that there is no other information to report for the period - **No other information** was reported[272](index=272&type=chunk) [ITEM 6. Exhibits](index=57&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate organizational documents, debt indentures, credit agreements, and certifications - Key exhibits include Amended and Restated Certificates of Incorporation and Bylaws for Lamar Advertising Company and Lamar Media Corp[273](index=273&type=chunk) - Debt-related exhibits include the Indenture for 4 7/8% Senior Notes and various amendments to the Receivables Financing Agreement[273](index=273&type=chunk) - Certifications from the Chief Executive Officer and Chief Financial Officer are included, as required by the Sarbanes-Oxley Act[273](index=273&type=chunk)[274](index=274&type=chunk)

Financial Data and Key Metrics Changes - Q1 2020 marked the 40th consecutive quarter of revenue growth, although business was impacted by COVID-19, costing approximately $4 million to $5 million in revenue [6] - Adjusted EBITDA increased by 9.4% to $159.8 million compared to $146.1 million in Q1 2019, while fully diluted AFFO rose 13.1% to $1.12 per share [12] - April revenues were approximately $116 million, a decline of about 20% from pro forma April 2019 [6][12] Business Line Data and Key Metrics Changes - Digital unit revenue was up 5.9% in Q1, with a total of 3,589 digital units, an increase of 47 units [21] - The top three verticals—services, hospitals, and restaurants—are performing well, with services seeing increased demand from attorneys and cleaning services [22][23] - The education vertical was notably strong, up 70% in Q1, driven by online education and fall enrollment [28] Market Data and Key Metrics Changes - Traffic activity in markets that generated 80% of 2019 billboard revenues is already back to 75% of last year's average, with many smaller markets rebounding faster than larger DMAs [9][10] - The oil patch is struggling, particularly in areas like Tulsa and Oklahoma City, due to macroeconomic challenges [36] Company Strategy and Development Direction - The company has reduced its CapEx budget from $130 million to approximately $58 million, focusing on essential projects [11][13] - Management is optimistic about emerging stronger from the crisis, with plans to maintain REIT status and distribute at least 90% of NOI [47] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about recovery, noting that car travel is expected to increase significantly as people avoid air travel [44] - The company anticipates a good political advertising season in Q3 and Q4, with political pacing up 32% from the 2018 cycle [60] Other Important Information - The company ended Q1 with total leverage of 4.03 times net debt-to-EBITDA, with approximately $609 million in liquidity [14][19] - Significant cost reductions are expected, including $16.5 million in executive bonuses and $13 million in lease portfolio savings [11] Q&A Session Summary Question: Considering the results were not significantly affected by COVID-19 in Q1, would the company consider M&A? - Management indicated a willingness to explore M&A opportunities as the company aims to emerge as a strong player in the industry [32] Question: How is the Q2 trend shaping up, and how has the oil patch fared? - Management noted that May is expected to be slightly worse than April, with the oil patch facing challenges [36] Question: How does the company view the recovery compared to the 2008/2009 downturn? - Management feels more optimistic this time due to a stronger balance sheet and broader platform, anticipating increased car travel [44] Question: How is the company balancing dividend distribution and leverage? - The Board aims to maintain REIT status and distribute at least 90% of NOI, while also considering liquidity [47] Question: What data supports the expectation of increased car travel this summer? - Management cited traffic activity data showing significant increases in smaller markets, with many areas already seeing traffic up to 75% of last year's levels [54]

PART I — FINANCIAL INFORMATION This section presents the unaudited condensed consolidated financial information, management's discussion, market risk, and controls [ITEM 1. FINANCIAL STATEMENTS](index=5&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents unaudited condensed consolidated financial statements for Lamar Advertising Company and Lamar Media Corp., detailing financial position, performance, and cash flows [Lamar Advertising Company - Condensed Consolidated Balance Sheets](index=5&type=section&id=Lamar%20Advertising%20Company%20-%20Condensed%20Consolidated%20Balance%20Sheets) Lamar Advertising Company's balance sheet as of March 31, 2020, shows a significant increase in cash and cash equivalents and long-term debt compared to December 31, 2019, while total stockholders' equity experienced a slight decrease | Metric | March 31, 2020 (in millions) | December 31, 2019 (in millions) | | :-------------------------- | :------------------------------ | :------------------------------- | | Cash and cash equivalents | $496.6 | $26.2 | | Total assets | $6,393.0 | $5,941.2 | | Total liabilities | $5,255.2 | $4,760.8 | | Long-term debt | $3,382.2 | $2,753.6 | | Stockholders' equity | $1,137.8 | $1,180.3 | [Lamar Advertising Company - Condensed Consolidated Statements of Income and Comprehensive Income](index=6&type=section&id=Lamar%20Advertising%20Company%20-%20Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) For the three months ended March 31, 2020, Lamar Advertising Company reported increased net revenues but a decrease in net income compared to the same period in 2019, primarily due to a significant loss on debt extinguishment | Metric | Three months ended March 31, 2020 (in millions) | Three months ended March 31, 2019 (in millions) | | :---------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net revenues | $406.6 | $384.5 | | Operating income | $96.6 | $90.8 | | Loss on extinguishment of debt | $18.2 | $— | | Net income | $40.5 | $51.3 | | Basic earnings per share | $0.40 | $0.51 | | Cash dividends declared per share | $1.00 | $0.96 | [Lamar Advertising Company - Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Lamar%20Advertising%20Company%20-%20Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This statement outlines the changes in Lamar Advertising Company's stockholders' equity for the three months ended March 31, 2020, and 2019, reflecting the impact of net income, common and preferred stock dividends, and treasury stock purchases | Metric | March 31, 2020 (in millions) | December 31, 2019 (in millions) | | :------------------------------------ | :------------------------------ | :------------------------------- | | Total Stockholders' Equity | $1,137.8 | $1,180.3 | | Net income (Q1 2020) | $40.5 | | | Dividends/distributions to common shareholders (Q1 2020) | $(100.7) | | | Purchase of treasury stock (Q1 2020) | $(10.1) | | [Lamar Advertising Company - Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Lamar%20Advertising%20Company%20-%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Lamar Advertising Company's cash flow statement for the three months ended March 31, 2020, shows a significant increase in cash from financing activities, primarily due to debt refinancing, which led to a substantial net increase in cash and cash equivalents | Metric | Three months ended March 31, 2020 (in millions) | Three months ended March 31, 2019 (in millions) | | :------------------------------------ | :--------------------------------------- | :--------------------------------------- | | Net cash provided by operating activities | $62.9 | $60.7 | | Net cash used in investing activities | $(35.6) | $(91.1) | | Net cash provided by financing activities | $443.6 | $41.6 | | Net increase in cash and cash equivalents | $470.5 | $11.3 | | Cash and cash equivalents at end of period | $496.6 | $32.8 | [Lamar Advertising Company - Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Lamar%20Advertising%20Company%20-%20Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and disclosures for the condensed consolidated financial statements, covering significant accounting policies, revenue recognition, leases, stock-based compensation, long-term debt, and the impact of new accounting pronouncements and the COVID-19 pandemic - The Company updated its goodwill qualitative assessment as of March 31, 2020, due to COVID-19 related changes, but concluded that goodwill was not impaired[26](index=26&type=chunk) - Lamar Media entered into a Fourth Amended and Restated Credit Agreement on February 6, 2020, establishing a new **$750 million revolving credit facility** and a **$600 million Term B loan facility**[56](index=56&type=chunk) - Additionally, Lamar Media issued **$1.0 billion in new senior notes** (3 3/4% due 2028 and 4% due 2030) to repay existing debt and redeem its 5 3/8% Senior Notes, resulting in an **$18.2 million loss on debt extinguishment**[57](index=57&type=chunk)[173](index=173&type=chunk) - The Company adopted Topic 842, Leases, effective January 1, 2019, recognizing **$1.2 billion in additional operating liabilities** and corresponding right-of-use assets[88](index=88&type=chunk) - ASU 2016-13, Financial Instruments – Credit Losses, was adopted on January 1, 2020, with no material impact, but the allowance for credit losses now considers COVID-19 impacts[89](index=89&type=chunk) [Lamar Media Corp. - Condensed Consolidated Balance Sheets](index=19&type=section&id=Lamar%20Media%20Corp.%20-%20Condensed%20Consolidated%20Balance%20Sheets) Lamar Media Corp.'s balance sheet largely mirrors Lamar Advertising's consolidated figures due to its wholly-owned subsidiary status, showing similar increases in cash and long-term debt as of March 31, 2020, compared to December 31, 2019 | Metric | March 31, 2020 (in millions) | December 31, 2019 (in millions) | | :-------------------------- | :------------------------------ | :------------------------------- | | Cash and cash equivalents | $496.1 | $25.7 | | Total assets | $6,376.3 | $5,924.4 | | Total liabilities | $5,249.0 | $4,754.9 | | Long-term debt | $3,382.2 | $2,753.6 | | Stockholder's equity | $1,127.2 | $1,169.5 | [Lamar Media Corp. - Condensed Consolidated Statements of Income and Comprehensive Income](index=20&type=section&id=Lamar%20Media%20Corp.%20-%20Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Lamar Media Corp.'s income and comprehensive income statement reflects similar trends to its parent company for the three months ended March 31, 2020, with increased net revenues but a decrease in net income due to the debt extinguishment loss | Metric | Three months ended March 31, 2020 (in millions) | Three months ended March 31, 2019 (in millions) | | :----------------------------- | :--------------------------------------- | :--------------------------------------- | | Net revenues | $406.6 | $384.5 | | Operating income | $96.7 | $90.9 | | Loss on extinguishment of debt | $18.2 | $— | | Net income | $40.6 | $51.4 | [Lamar Media Corp. - Condensed Consolidated Statements of Stockholder's Equity](index=21&type=section&id=Lamar%20Media%20Corp.%20-%20Condensed%20Consolidated%20Statements%20of%20Stockholder's%20Equity) This statement shows changes in Lamar Media Corp.'s stockholder's equity for the three months ended March 31, 2020, and 2019, influenced by net income, dividends to the parent company, and contributions from the parent | Metric | March 31, 2020 (in millions) | December 31, 2019 (in millions) | | :-------------------------- | :------------------------------ | :------------------------------- | | Total Stockholder's Equity | $1,127.2 | $1,169.5 | | Net income (Q1 2020) | $40.6 | | | Dividend to parent (Q1 2020) | $(110.8) | | | Contribution from parent (Q1 2020) | $29.4 | | [Lamar Media Corp. - Condensed Consolidated Statements of Cash Flows](index=22&type=section&id=Lamar%20Media%20Corp.%20-%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Lamar Media Corp.'s cash flow activities for the three months ended March 31, 2020, largely mirror the parent company's, with a significant increase in cash from financing due to debt refinancing, leading to a substantial net increase in cash and cash equivalents | Metric | Three months ended March 31, 2020

PART I [Business](index=5&type=section&id=ITEM%201.%20BUSINESS) Lamar Advertising is a leading outdoor advertising company in the United States, operating since 1902, focusing on leasing advertising space on billboards, logo signs, and transit displays [General Overview](index=5&type=section&id=General) Lamar Advertising is one of the largest outdoor advertising companies in the U.S., providing fully integrated services from ad production to maintenance Advertising Display Portfolio (as of Dec 31, 2019) | Display Type | Count | | :--- | :--- | | Billboard Advertising Displays | ~157,800 | | Digital Billboard Displays | >3,500 | | Logo Sign Advertising Displays | >151,200 | | Transit Advertising Displays | >52,800 | [Corporate History](index=5&type=section&id=Corporate%20History) Founded in 1902, Lamar has been publicly traded since 1996 and reorganized in 2014 to qualify as a Real Estate Investment Trust (REIT) - The company reorganized its business operations to qualify as a REIT for the taxable year ended December 31, 2014[19](index=19&type=chunk) [Operating Strategies](index=6&type=section&id=Operating%20Strategies) The company's operating strategy emphasizes high-quality local sales, centralized control with decentralized management, internal growth, and reinvestment in digital technology - Local advertising constituted approximately **76% of net revenues** for the year ended December 31, 2019[21](index=21&type=chunk) - The company invested approximately **$1.1 billion in capital expenditures** since January 1, 2009, for upgrading existing displays and constructing new ones[24](index=24&type=chunk) - In fiscal year 2019, total capital expenditures were approximately **$141.0 million**, with **$57.5 million** dedicated to digital technology[26](index=26&type=chunk) [Capital Allocation Strategy](index=6&type=section&id=Capital%20Allocation%20Strategy) Lamar's capital allocation strategy aims to increase adjusted funds from operations (AFFO) and return on invested capital, prioritizing reinvestment and strategic acquisitions after meeting REIT distribution requirements - In 2019, the company generated **$630.7 million in cash from operating activities**, used to fund capital expenditures, dividends, and acquisitions[27](index=27&type=chunk) [Company Operations](index=7&type=section&id=Company%20Operations) The company's operations are primarily divided into billboards, logo signs, and transit advertising, with billboards being the largest segment - Billboard advertising revenue in 2019 was comprised of approximately **75% from bulletin rentals** and **25% from poster rentals**[29](index=29&type=chunk) - As of December 31, 2019, the company's **3,500+ digital billboards** generated approximately **25% of total billboard advertising net revenue**[34](index=34&type=chunk) - Lamar is the largest provider of logo sign services in the U.S., operating **24 of the 26 privatized state logo contracts**[37](index=37&type=chunk) [Competition](index=9&type=section&id=Competition) The outdoor advertising industry is fragmented, with Lamar competing against other large outdoor providers and various other media forms - Competitors include large outdoor providers, broadcast and print media, and a growing variety of other out-of-home advertising media in locations like shopping centers, airports, and stadiums[50](index=50&type=chunk) Total Revenue by Advertising Type (Year Ended Dec 31, 2019) | Advertising Type | Revenue (in millions) | | :--- | :--- | | Static Billboard | $1,145.4 | | Digital Billboard | $392.1 | | Transit | $131.9 | | Logo | $84.2 | | **Total** | **$1,753.6** | [Advertising Tenants](index=12&type=section&id=Advertising%20Tenants) Lamar has a diverse tenant base across various industries, with no individual tenant representing more than 2.0% of billboard advertising net revenues Top Billboard Advertising Categories by Revenue (2019) | Category | Percentage of Net Billboard Advertising Revenues | | :--- | :--- | | Service | 14% | | Health Care | 11% | | Restaurants | 11% | | Retailers | 9% | | Amusement/Entertainment/Sports | 7% | | Automotive | 5% | | Financial | 4% | | Gaming | 4% | | Education | 4% | | Insurance | 4% | [Regulation](index=12&type=section&id=Regulation) The outdoor advertising industry is subject to significant federal, state, and local regulations, which restrict display characteristics and act as a barrier to entry - Federal law, primarily the Highway Beautification Act of 1965 (HBA), regulates outdoor advertising on major highways and requires states to implement control programs[56](index=56&type=chunk) - The expansion of digital billboards may face new or revised regulations due to concerns over aesthetics or driver safety, which could materially impact the business[59](index=59&type=chunk)[60](index=60&type=chunk) [Real Estate Portfolio](index=13&type=section&id=Real%20Estate%20Portfolio) The company's real estate portfolio includes both owned and leased properties, with a significant portion of leases expiring or subject to renewal in the next five years Owned vs. Leased Billboard Sites (as of Dec 31, 2019) | Site Type | Count | | :--- | :--- | | Leased Sites | >74,300 | | Owned Sites | >8,900 | - Approximately **69% of leases** will expire or be subject to renewal in the next 5 years[63](index=63&type=chunk) [Seasonality](index=14&type=section&id=Seasonality) The company's revenues and operating results are subject to seasonality, with financial performance typically weakest in the first quarter - The company typically experiences its weakest financial performance in the first quarter of the calendar year[70](index=70&type=chunk) [Risk Factors](index=15&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces various risks, including substantial debt, operational challenges, intense competition, extensive regulations, and complexities related to its REIT status [Financial Risks](index=15&type=section&id=Financial%20Risks) The company's substantial debt, approximately $2.98 billion as of December 31, 2019, poses significant risks by limiting cash flow and increasing vulnerability to economic downturns - As of December 31, 2019, Lamar Media had approximately **$2.98 billion of total debt outstanding**[72](index=72&type=chunk) - Debt agreements restrict the company's ability to incur more debt, dispose of assets, create liens, make investments, and pay dividends[75](index=75&type=chunk) [Operational and Strategic Risks](index=16&type=section&id=Operational%20and%20Strategic%20Risks) Revenues are sensitive to economic downturns, and the company's growth strategy through acquisitions faces challenges in integration and a dwindling pool of suitable candidates - In 2019, the company completed acquisitions for a total cash purchase price of approximately **$226.3 million**[81](index=81&type=chunk) - The company faces competition from larger outdoor advertisers like Clear Channel and Outfront Media, as well as other media such as television, radio, and the internet[86](index=86&type=chunk)[87](index=87&type=chunk) [Regulatory and Legal Risks](index=17&type=section&id=Regulatory%20and%20Legal%20Risks) The business is heavily impacted by governmental regulations, particularly the Highway Beautification Act of 1965, and evolving rules for digital billboards could affect deployment strategy - Governmental regulations, including the Highway Beautification Act of 1965, pose a significant barrier to entry and expansion in many markets[88](index=88&type=chunk) - Four of the company's **25 logo sign contracts** were subject to renewal or expiration in 2020[94](index=94&type=chunk) [REIT and Tax Risks](index=19&type=section&id=REIT%20and%20Tax%20Risks) Failure to maintain REIT qualification would result in significant adverse tax consequences, requiring the company to distribute at least 90% of its REIT taxable income annually - If Lamar fails to qualify as a REIT, it would be subject to corporate income tax and could not re-elect REIT status for four years[98](index=98&type=chunk) - As a REIT, Lamar must distribute at least **90% of its REIT taxable income** to stockholders annually[102](index=102&type=chunk) [Properties](index=22&type=section&id=ITEM%202.%20PROPERTIES) The company's headquarters is in Baton Rouge, Louisiana, operating 126 owned and 130 leased facilities, alongside over 8,900 owned and 74,300 leased outdoor advertising sites Property Portfolio Summary (2019) | Property Type | Details | | :--- | :--- | | Owned Operating Facilities | 126 | | Leased Operating Facilities | 130 (Annual lease expense: ~$8.3M) | | Owned Outdoor Sites | >8,900 parcels | | Leased Outdoor Sites | >74,300 sites (Annual lease expense: ~$287.6M) | PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=23&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) Lamar's Class A common stock trades on NASDAQ under "LAMR", while Class B is privately held by the Reilly family, and as a REIT, the company must distribute at least 90% of its taxable income annually - The company's Class A common stock is listed on the NASDAQ Global Select Market under the symbol **"LAMR"**[123](index=123&type=chunk) [Selected Financial Data](index=24&type=section&id=ITEM%206.%20SELECTED%20FINANCIAL%20DATA) This section presents selected consolidated financial data for Lamar Advertising Company for the five years ended December 31, 2019, showing consistent growth in net revenues and cash flows Selected Financial Data (2017-2019) | Metric (in thousands) | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | Net revenues | $1,753,644 | $1,627,222 | $1,541,260 | | Operating income | $517,741 | $460,556 | $455,367 | | Net income | $372,111 | $305,232 | $317,676 | | Cash flows from operating activities | $630,865 | $564,846 | $507,016 | | Total assets | $5,941,155 | $4,544,641 | $4,214,345 | | Total debt | $2,980,118 | $2,888,688 | $2,556,690 | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=25&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the company's financial condition and results of operations, highlighting revenue growth, net income increase, and liquidity management for 2019 [Overview](index=25&type=section&id=Overview) The company's revenue, primarily from renting advertising space, is sensitive to economic conditions, with growth driven by occupancy, rates, and strategic acquisitions Capital Expenditures (in thousands) | Category | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | Billboard — Traditional | $48,194 | $37,905 | $36,015 | | Billboard — Digital | $57,519 | $45,938 | $40,218 | | Logos | $10,762 | $11,438 | $9,614 | | Transit | $2,308 | $5,364 | $2,863 | | Land and buildings | $13,453 | $8,420 | $13,690 | | PP&E | $8,720 | $8,573 | $6,929 | | **Total** | **$140,956** | **$117,638** | **$109,329** | [Results of Operations: 2019 vs. 2018](index=27&type=section&id=Results%20of%20Operations%3A%20Years%20Ended%20December%2031%2C%202019%20and%202018) In 2019, net revenues increased 7.8% to $1.75 billion, driven by acquisitions and digital billboard growth, leading to significant increases in operating income, net income, Adjusted EBITDA, and AFFO Financial Performance Comparison: 2019 vs. 2018 (in millions) | Metric | 2019 | 2018 | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | $1,753.6 | $1,627.2 | 7.8% | | Operating Income | $517.7 | $460.6 | 12.4% | | Net Income | $372.1 | $305.2 | 21.9% | | Adjusted EBITDA | $784.9 | $722.5 | 8.6% | | AFFO | $581.4 | $544.5 | 6.8% | - Acquisition-adjusted net revenue increased by **$45.7 million**, or **2.7%**, in 2019 compared to 2018[146](index=146&type=chunk) [Results of Operations: 2018 vs. 2017](index=29&type=section&id=Results%20of%20Operations%3A%20Years%20Ended%20December%2031%2C%202018%20and%202017) In 2018, net revenues increased 5.6% to $1.627 billion, with operating income showing modest growth, while net income decreased due to a debt extinguishment loss, despite strong non-GAAP metric performance Financial Performance Comparison: 2018 vs. 2017 (in millions) | Metric | 2018 | 2017 | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | $1,627.2 | $1,541.3 | 5.6% | | Operating Income | $460.6 | $455.4 | 1.1% | | Net Income | $305.2 | $317.7 | (3.9)% | | Adjusted EBITDA | $722.5 | $671.4 | 7.6% | | AFFO | $544.5 | $496.3 | 9.7% | - The decrease in net income in 2018 was largely due to a **$15.4 million loss on debt extinguishment** related to the prepayment of Senior Subordinated Notes[166](index=166&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains liquidity through cash from operations and its senior credit facility, with total liquidity at $413.5 million as of December 31, 2019, and actively manages its debt through refinancing - As of December 31, 2019, total liquidity was approximately **$413.5 million**, comprising **$26.2 million in cash** and **$387.3 million available** under the revolving credit facility[176](index=176&type=chunk) - In February 2020, the company completed a refinancing that increased the revolving credit facility capacity by **$200.0 million** and issued **$1.0 billion in new senior notes**[176](index=176&type=chunk)[188](index=188&type=chunk) Contractual Obligations (as of Dec 31, 2019, in millions) | Obligation | Total | Less Than 1 Year | 1 - 3 Years | 3 - 5 Years | After 5 Years | | :--- | :--- | :--- | :--- | :--- | :--- | | Long-Term Debt | $2,980.1 | $226.5 | $490.6 | $1,053.3 | $1,209.7 | | Interest obligations | $614.0 | $144.9 | $265.2 | $158.1 | $45.8 | | Operating leases | $1,786.6 | $261.1 | $405.4 | $317.9 | $802.2 | | **Total** | **$5,380.7** | **$632.5** | **$1,161.2** | **$1,529.3** | **$2,057.7** | [Critical Accounting Estimates](index=38&type=section&id=Critical%20Accounting%20Estimates) The company's financial statements rely on critical accounting estimates involving judgment, including goodwill impairment testing, asset retirement obligations, business combination fair value allocation, and lease accounting under ASC 842 - Goodwill impairment was tested on December 31, 2019, for two reporting units (Logo and Billboard operations), and no impairment charge was required[218](index=218&type=chunk)[219](index=219&type=chunk) - The asset retirement obligation, valued at **$226.1 million** as of December 31, 2019, is based on the estimated present value of costs to dismantle and remove billboard structures from leased land[220](index=220&type=chunk) - The adoption of ASC 842 on January 1, 2019, resulted in recording operating lease liabilities of **$1.265 billion** and right-of-use assets of **$1.321 billion**[224](index=224&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company is primarily exposed to interest rate risk from its variable rate debt, with approximately $1.292 billion at variable rates as of December 31, 2019, and mitigates this risk through a balance of fixed and variable rate debt - At December 31, 2019, approximately **$1.292 billion (46.9%)** of the company's long-term debt bore interest at variable rates[266](index=266&type=chunk) - A hypothetical **200 basis point increase** in interest rates would have increased 2019 interest expense by an estimated **$26.8 million**[266](index=266&type=chunk) [Financial Statements](index=46&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS) This section contains the consolidated financial statements for Lamar Advertising Company and its subsidiary for the fiscal year ended December 31, 2019, along with the unqualified auditor's report and critical audit matters - The independent auditor, KPMG LLP, issued an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting[275](index=275&type=chunk)[281](index=281&type=chunk) - Critical Audit Matters identified by the auditor were the assessment of the accounting lease term for billboard land leases and the valuation of the site locations intangible asset from the Fairway Outdoor Advertising acquisition[289](index=289&type=chunk)[292](index=292&type=chunk) [Controls and Procedures](index=105&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2019, with no material changes to internal controls identified - Management concluded that as of December 31, 2019, the company's disclosure controls and procedures were effective[569](index=569&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=106&type=section&id=ITEM%2010.%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the company's 2020 Proxy Statement - The detailed information for this item is incorporated by reference from the forthcoming 2020 Proxy Statement[577](index=577&type=chunk) [Executive Compensation](index=106&type=section&id=ITEM%2011.%20EXECUTIVE%20COMPENSATION) Information regarding executive compensation is incorporated by reference from the company's 2020 Proxy Statement - The detailed information for this item is incorporated by reference from the forthcoming 2020 Proxy Statement[579](index=579&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=106&type=section&id=ITEM%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS) Information regarding security ownership of certain beneficial owners and management is incorporated by reference from the company's 2020 Proxy Statement - The detailed information for this item is incorporated by reference from the forthcoming 2020 Proxy Statement[580](index=580&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=106&type=section&id=ITEM%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%2C%20AND%20DIRECTOR%20INDEPENDENCE) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the company's 2020 Proxy Statement - The detailed information for this item is incorporated by reference from the forthcoming 2020 Proxy Statement[581](index=581&type=chunk) [Principal Accounting Fees and Services](index=106&type=section&id=ITEM%2014.%20PRINCIPAL%20ACCOUNTING%20FEES%20AND%20SERVICES) Information regarding principal accounting fees and services is incorporated by reference from the company's 2020 Proxy Statement - The detailed information for this item is incorporated by reference from the forthcoming 2020 Proxy Statement[582](index=582&type=chunk) PART IV [Exhibits, Financial Statement Schedules](index=106&type=section&id=ITEM%2015.%20EXHIBITS%2C%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists the financial statements, financial statement schedules, and exhibits filed as part of the annual report, with detailed indexes provided - This item references the financial statements and schedules found in Item 8 and the Exhibit Index[583](index=583&type=chunk)[584](index=584&type=chunk)[585](index=585&type=chunk)

Financial Data and Key Metrics Changes - For Q4 2019, acquisition-adjusted revenue growth was 2.7%, with adjusted EBITDA increasing by 4.7% to $215.6 million compared to $195.3 million in Q4 2018 [9][10] - Full year revenue increased by 7.8% to $1.75 billion, adjusted EBITDA rose by 8.6% to $784.9 million, and fully diluted AFFO per share increased by 5.5% to $5.80 [10][11] - Consolidated expenses grew by only 1% in Q4, with full year expense growth at 2.1%, aligning with historical levels [11] Business Line Data and Key Metrics Changes - The digital platform showed strong performance with same board growth of 4.6% for the full year, and 5.2% for the digital platform specifically [18] - The company ended the year with 3,542 digital faces, an increase of approximately 335 faces, with a goal of adding around 250 new-build units in 2020 [19] Market Data and Key Metrics Changes - In Q4, local sales grew by 1.8% while national/programmatic sales increased by 7.7% [20] - Strong verticals included service (up 7%), hospitals (up 8%), amusement/entertainment/sports (up 7%), insurance (up 42%), and financial (up 20%), while automotive was down 4% and retail saw a negative swing of 5% in November and December [21][22] Company Strategy and Development Direction - The company successfully integrated several acquisitions in 2019, expanding into nine new markets [5] - For 2020, the company anticipates stronger acquisition-adjusted growth driven by political and programmatic revenues, with a guidance of 3.5% to 4% pro forma sales growth [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for Q1 2020, expecting a strong start towards annual targets [9] - The company noted that retail performance in January 2020 showed improvement, indicating a potential recovery from the holiday season's negative impact [22][34] Other Important Information - The company completed a major refinancing of $2.35 billion in January 2020, aimed at lowering overall debt costs and enhancing liquidity [14][15] - The refinancing is expected to result in over $60 million in amortization and cash interest savings, which can be redirected towards acquisitions or digital conversions [16] Q&A Session Summary Question: Impact of retail performance on growth - Management acknowledged that retail's negative contribution could be attributed to a holiday hiccup, but early indicators for 2020 are positive with January showing a 2.6% increase [24][34] Question: Expectations for D&A in 2020 - Management projected depreciation and amortization to be approximately $249 million to $250 million [26] Question: Q1 revenue expectations and M&A pipeline - Management indicated confidence in Q1 performance but will not provide specific pacing estimates, and confirmed that the guidance does not include M&A activity, which has slowed compared to the previous 15 months [29][30]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2019 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 1-36756 Lamar Advertising Company Commission File Number 1-12407 Lamar Media Corp. (Exact name of registrants as specified in their charter ...

Lamar Advertising Company REIT (NASDAQ:LAMR) Q3 2019 Earnings Conference Call November 5, 2019 9:00 AM ET Company Representatives Sean Reilly - Chief Executive Officer Jay Johnson - Treasurer, Chief Financial Officer Conference Call Participants Marci Ryvicker - Wolfe Research Ben Swinburne - Morgan Stanley David Miller - Imperial Capital Anna Lizzul - JPMorgan Operator Excuse me everyone. We now have Sean Reilly and Jay Johnson in conference. Please be aware that each of your lines is in a listen-only mod ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2019 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 1-36756 Lamar Advertising Company Commission File Number 1-12407 Lamar Media Corp. (Exact name of registrants as specified in their charters) De ...

Lamar Advertising Company (NASDAQ:LAMR) Q2 2019 Results Earnings Conference Call August 7, 2019 9:00 AM ET Company Participants Sean Reilly - CEO Keith Istre - Treasurer and CFO Conference Call Participants Stephan Bisson - Wolfe Research Alexia Quadrani - JPMorgan Eric Handler - MKM Partners Jason Bazinet - Citi Ben Swinburne - Morgan Stanley Operator Excuse me, everyone. We now have Mr. Sean Reilly and Mr. Keith Istre in conference. Please be aware each of your lines is in listen-only mode. At the conclus ...