Summary of Lamar Advertising Company (LAMR) FY Conference Call - May 13, 2025 Company Overview - **Company**: Lamar Advertising Company (LAMR) - **Industry**: Advertising, specifically Out-of-Home (OOH) advertising Key Points and Arguments Market Conditions - The mood at the OAAA Industry Conference was constructive, with no signs of trouble in the market [1] - Q1 results showed organic growth of just over 1%, with business strong enough to maintain guidance [2][3] - 75% of revenue is already under contract, typical for this time of year [3] Financial Performance - The company expects to achieve its goals for the year, with organic growth outlook remaining around 3% [4][5] - The impact of events like the Super Bowl and leap year was material, particularly affecting the Southwest region, which saw a 1% decline [9][10] - Political advertising is expected to contribute approximately $15 million in the second half of the year [11] Economic Outlook - Historical performance during garden variety recessions indicates that Lamar typically holds the line on rates and experiences only minor occupancy declines [14][15] - Current pacings suggest a steady year ahead, with no significant downturn anticipated [15] Sector Insights - Local auto dealers are adapting to inventory issues by shifting advertising focus from new car sales to service promotions [16][18] - Retail advertising saw a 6% increase in Q1, but potential tariff impacts on inventory are being monitored closely [19] - Legal services remain a strong vertical, accounting for about 10% of revenue, with a stable customer base [21][22] Competitive Landscape - Lamar is gaining market share from local TV and radio, with a noted shift in advertising dollars towards billboards [24][27] - National advertising has been slightly underperforming, attributed to changes in agency strategies [28][29] Programmatic Advertising - Programmatic advertising is expected to exceed $50 million in 2025, with a 30% increase in Q1 [33] - The company is testing programmatic on the local side, driven by demand from more sophisticated local customers [37] Digital Conversion and CapEx - Lamar plans to convert over 350 boards to digital in 2025, with consistent returns historically between 25% to low 30% [45] - The pace of conversions is primarily governed by regulatory permitting [46] M&A Activity - The company has completed $70 million in acquisitions and expects to surpass $200 million this year, driven by pent-up demand [54] - Acquisitions typically yield high margins, with forward multiples expected to be in the 10 to 11 range post-synergies [56] Capital Allocation - Lamar is focused on digital conversions, acquisitions, and purchasing land under billboards, with a projected $20 million for easements this year [62][63] Share Repurchase Program - A $150 million share repurchase program was initiated to avoid dilution from acquisitions, executed at an average price of $108 [68][70] Transit and Airport Business - Transit revenue is stable, primarily from bus wraps, while airport business remains steady despite potential impacts from international travel [71][73] - Combined revenue from transit and airport operations is approximately $160 million, contributing around 15-17% EBITDA margins [74] Additional Important Insights - The company is navigating minor cost increases due to tariffs but does not anticipate significant supply chain issues [51][53] - The recent sale of a 20% stake in Vistar to T-Mobile is expected to enhance outdoor measurement and attribution capabilities [39][40] This summary encapsulates the key insights and financial outlook for Lamar Advertising Company as discussed in the conference call, highlighting the company's resilience and strategic focus in the advertising industry.

Core Viewpoint - Lamar Advertising Company (LAMR) reported a first-quarter 2025 adjusted funds from operations (AFFO) per share of $1.60, exceeding the Zacks Consensus Estimate of $1.54 and showing year-over-year growth from $1.54 [1] Financial Performance - Quarterly net revenues reached $505.4 million, reflecting a 1.5% increase year-over-year, but fell short of the consensus estimate of $508.9 million [2] - Operating income surged 53.5% to $191.2 million compared to $124.6 million in the prior year, while adjusted EBITDA decreased by 0.8% to $210.2 million [3] - Acquisition-adjusted net revenues increased by 1.1% year-over-year to $505.4 million, while acquisition-adjusted EBITDA fell by 1% to $210.2 million [3] Expense Analysis - Direct advertising expenses rose by 2.2% year-over-year to $179.6 million, and general and administrative expenses increased by 7.3% to $89.2 million [4] - Free cash flow decreased by 12.7% year-over-year to $121.4 million [4] Balance Sheet Position - Cash flow from operating activities for the three months ended March 31, 2025, was $127.7 million, down from $279.3 million in the previous quarter [5] - As of March 31, 2025, total liquidity was $491.3 million, consisting of $455.2 million available for borrowing and $36.1 million in cash [6] - The outstanding balance under the revolving credit facility was $286 million, with an additional $223.5 million under the Accounts Receivable Securitization Program [6] 2025 Outlook - LAMR maintained its 2025 AFFO per share guidance between $8.13 and $8.28, with the Zacks Consensus Estimate at $8.19, within the projected range [7]

[PART I — FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements for Lamar Advertising Company and its subsidiary, Lamar Media Corp., for Q1 2025, including balance sheets, income statements, and cash flows [Lamar Advertising Company Financial Statements](index=6&type=section&id=Lamar%20Advertising%20Company%20Financial%20Statements) Lamar Advertising Company reported Q1 2025 net revenues of $505.4 million, a 1.5% increase, with net income significantly rising to $139.2 million due to a $69.8 million gain on asset disposition Condensed Consolidated Statements of Income (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | **Net revenues** | $505,430 | $498,150 | +1.5% | | **Operating income** | $191,233 | $124,600 | +53.5% | | **Gain on disposition of assets** | $69,785 | $2,188 | +3090% | | **Net income** | $139,229 | $78,499 | +77.4% | | **Diluted earnings per share** | $1.35 | $0.76 | +77.6% | | **Cash dividends declared per share** | $1.55 | $1.30 | +19.2% | Condensed Consolidated Balance Sheet Highlights | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total current assets | $405,315 | $425,268 | | **Total assets** | **$6,547,175** | **$6,586,549** | | Total current liabilities | $717,291 | $778,474 | | Long-term debt, net | $2,964,419 | $2,961,058 | | **Total liabilities** | **$5,515,605** | **$5,538,529** | | **Total stockholders' equity** | **$1,031,570** | **$1,048,020** | - The company received **$115.1 million** in cash for the sale of its 20% equity interest in Vistar Media, Inc., recognizing a gain of **$67.7 million** on the transaction during Q1 2025[93](index=93&type=chunk) Condensed Consolidated Cash Flow Summary (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $127,745 | $110,562 | | Net cash provided by (used in) investing activities | $65,426 | $(45,016) | | Net cash used in financing activities | $(206,522) | $(73,626) | | **Net decrease in cash and cash equivalents** | **$(13,344)** | **$(8,200)** | [Lamar Media Corp. Financial Statements](index=25&type=section&id=Lamar%20Media%20Corp.%20Financial%20Statements) Lamar Media Corp., a wholly-owned subsidiary, reported Q1 2025 net revenues of $505.4 million and net income of $139.3 million, reflecting contributions from and dividends paid to its parent Lamar Media Corp. Condensed Statements of Income (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | **Net revenues** | $505,430 | $498,150 | | **Operating income** | $191,342 | $124,738 | | **Net income** | $139,338 | $78,637 | - Lamar Media Corp. is a wholly-owned subsidiary of Lamar Advertising Company, filing with a reduced disclosure format, and does not provide earnings per share data[5](index=5&type=chunk)[121](index=121&type=chunk) - During Q1 2025, Lamar Media Corp. received a **$30.7 million** capital contribution from its parent and paid a dividend of **$185.4 million** to its parent[115](index=115&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2025 net revenues increased by 1.5% to $505.4 million, boosted by a $69.8 million gain from asset disposition, while Adjusted EBITDA slightly decreased and AFFO grew by 3.8% Acquisition-Adjusted Net Revenue Growth (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 (in thousands) | Q1 2024 Acquisition-Adjusted (in thousands) | Growth | | :--- | :--- | :--- | :--- | | **Net Revenue** | $505,430 | $500,040 | +1.1% | - The company recognized a **$69.8 million** gain on disposition of assets and investments, primarily from the sale of its equity interest in Vistar Media, Inc[152](index=152&type=chunk) Key Performance Indicators (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | **Adjusted EBITDA** | $210,221 | $211,922 | (0.8)% | | **FFO** | $156,142 | $148,506 | +5.1% | | **AFFO** | $164,308 | $158,237 | +3.8% | - As of March 31, 2025, the company had total liquidity of **$491.3 million**, comprising **$36.1 million** in cash and **$455.2 million** available under its revolving credit facility[164](index=164&type=chunk) - The company anticipates total capital expenditures for 2025 to be approximately **$195.0 million**, with Q1 2025 expenditures at **$29.9 million**, primarily for digital billboards (**$16.1 million**)[198](index=198&type=chunk)[139](index=139&type=chunk) - The company declared a Q1 2025 cash dividend of **$1.55 per share** and expects aggregate distributions for 2025 to be at least **$6.20 per share**[199](index=199&type=chunk) - During Q1 2025, the company repurchased **164,529 shares** of its Class A common stock for a total of **$18.4 million** under its authorized repurchase program[201](index=201&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations on its approximately $1.11 billion variable-rate debt, representing 34.6% of total long-term debt, with mitigation through balanced fixed and variable rates Variable-Rate Debt Exposure as of March 31, 2025 | Metric | Value | | :--- | :--- | | **Variable-Rate Debt Outstanding** | ~$1.11 billion | | **Percentage of Total Long-Term Debt** | ~34.6% | | **Weighted Average Interest Rate (Q1 2025)** | 5.7% | | **Hypothetical Impact of 200 bps Rate Increase (Q1 2025)** | ~$5.2 million increase in interest expense | - The company mitigates interest rate risk by issuing fixed-rate long-term debt and can fix rates on its variable debt for periods up to twelve months[231](index=231&type=chunk) [Controls and Procedures](index=48&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures are effective[232](index=232&type=chunk) - No material changes in internal control over financial reporting were identified during the last fiscal quarter[233](index=233&type=chunk) [PART II — OTHER INFORMATION](index=49&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Risk Factors](index=49&type=section&id=ITEM%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors since the filing of its 2024 Annual Report on Form 10-K - There have been no material changes to the company's risk factors since the filing of its 2024 Annual Report on Form 10-K[234](index=234&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 164,529 shares of Class A common stock in March 2025, with approximately $231.6 million remaining available under the repurchase program authorized through March 31, 2026 Stock Repurchase Activity - Quarter Ended March 31, 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | Program Status | | :--- | :--- | :--- | :--- | | **Jan 2025** | — | $— | $250,000,000 remaining | | **Feb 2025** | — | $— | $250,000,000 remaining | | **Mar 2025** | 164,529 | $112.10 | $231,553,725 remaining | - The Board of Directors authorized a stock repurchase program of up to **$250.0 million**, extended through March 31, 2026[235](index=235&type=chunk) [Other Information](index=49&type=section&id=ITEM%205.%20Other%20Information) No information was reported for this item - None[236](index=236&type=chunk) [Exhibits](index=50&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial statements in Inline XBRL format - The filing includes CEO and CFO certifications pursuant to Section 302 (Exhibits **31.1**, **31.2**) and Section 906 (Exhibit **32.1**) of the Sarbanes-Oxley Act[237](index=237&type=chunk)

Financial Data and Key Metrics Changes - The company achieved its sixteenth consecutive quarter of acquisition adjusted revenue growth with an increase of 1.1% in Q1 2025 [4] - Adjusted EBITDA was $210.2 million, slightly down from $211.9 million in 2024, with an adjusted EBITDA margin of approximately 41.6% [11] - Adjusted funds from operations (AFFO) totaled $164.3 million, an increase of 3.8% from $158.2 million last year, with diluted AFFO per share growing 3.9% to $1.60 [11][17] - Acquisition adjusted consolidated expenses increased by 2.6% in Q1, slightly better than anticipated [10] Business Line Data and Key Metrics Changes - Local and regional sales accounted for approximately 82% of billboard revenue in Q1, growing for the sixteenth consecutive quarter [11] - Programmatic revenue increased by about $2 million, translating into nearly 30% growth [6] - Digital billboard revenue was up 4%, accounting for approximately 30% of total billboard revenue [6] Market Data and Key Metrics Changes - Categories of strength included services (up 11%), retail (up 6%), and construction (up 15%), while gaming (down 9%) and restaurants (down 4%) showed relative weakness [19][20] - The Central and Midwest regions showed relative strength, while the Southwest region, including Las Vegas, showed relative weakness [19] Company Strategy and Development Direction - The company is focused on maintaining its leadership status in the out-of-home advertising industry, with a strong balance sheet and a commitment to acquisitions [8][14] - The company plans to exceed its projected $150 million in acquisition spending for the year, with a year-to-date spend of over $70 million [8][43] - The company aims to maintain a dividend policy of distributing 100% of taxable income, with a cash dividend of $1.55 per share recommended for the second quarter [18] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the out-of-home advertising medium's resilience in uncertain economic conditions, with no cancellations reported from local or national customers [5] - The company is closely monitoring the broader economy but has not seen significant negative impacts on its business [5] - Management expressed confidence in the performance of programmatic advertising and digital billboards as they move into Q2 [19] Other Important Information - The company has repurchased $150 million of its stock at an average price of just over $108 per share, indicating confidence in its market position [8][16] - Total consolidated debt at quarter-end was approximately $3.2 billion, with a weighted average interest rate of 4.6% [13] Q&A Session Summary Question: Expectations for organic revenue growth and national softness - Management is currently 75% booked to the goal of approximately 3% organic revenue growth for the year, with national weakness attributed to changes in large customers' buying habits [25][26][27] Question: Economic slowdown and indicators of weakness - Management noted that shorter cycle sales, particularly in digital, serve as indicators, and current performance is solid, providing confidence [32] Question: M&A landscape and expense growth expectations - Management expects to exceed $200 million in acquisition activity for the year and maintains a 3% expense growth expectation [42][43] Question: Addressing national weakness and digital conversion pace - Management is pacing to meet digital conversion goals and noted that national spending can fluctuate based on customer changes [50][51] Question: AFFO per share guidance and expense growth drivers - Management affirmed that the AFFO guidance remains unchanged despite share repurchases, with elevated expenses attributed to one-time items and health insurance costs [56][59]

Financial Data and Key Metrics Changes - The company reported a 1.1% increase in acquisition adjusted revenue for Q1 2025, marking the sixteenth consecutive quarter of growth [4][10] - Adjusted EBITDA was $210.2 million, a slight decline of 0.8% from $211.9 million in Q1 2024, with an adjusted EBITDA margin of approximately 41.6% [10][12] - Adjusted funds from operations (AFFO) totaled $164.3 million, up 3.8% from $158.2 million in the previous year, with diluted AFFO per share growing 3.9% to $1.60 [10][15] Business Line Data and Key Metrics Changes - Local and regional sales accounted for approximately 82% of billboard revenue, continuing to grow for the sixteenth consecutive quarter [10] - Programmatic revenue increased by about $2 million, translating to nearly 30% growth year over year [6][18] - Digital billboard revenue rose by 4%, representing around 30% of total billboard revenue [6] Market Data and Key Metrics Changes - The Central and Midwest regions showed relative strength, while the Southwest region, including Las Vegas, exhibited weakness [18] - Categories of strength included services (up 11%), retail (up 6%), and construction (up 15%), while gaming and restaurants showed declines of 9% and 4% respectively [18] Company Strategy and Development Direction - The company is focused on maintaining its leadership status in the out-of-home advertising industry, with a strong balance sheet and a commitment to acquisitions [7][12] - The company plans to exceed its projected $150 million in acquisition spending for the year, having already closed 10 deals worth approximately $22 million in Q1 [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the out-of-home advertising medium, noting no cancellations or significant concerns from customers [5][17] - The company affirmed its full-year AFFO guidance of $8.13 to $8.28 per share, indicating a stable outlook despite broader economic uncertainties [15][17] Other Important Information - The company repurchased $150 million of its stock at an average price of just over $108 per share, reflecting confidence in its market position [7][14] - Total consolidated debt stood at approximately $3.2 billion, with a weighted average interest rate of 4.6% and total leverage of 2.85 times net debt to EBITDA [12][13] Q&A Session Summary Question: Expectations for organic revenue growth and national softness - Management indicated they are 75% booked to their goal of approximately 3% organic revenue growth, with national weakness attributed to changes in large customers' buying habits [23][25] Question: Economic slowdown and indicators of weakness - Management noted that shorter cycle sales, particularly digital, serve as indicators, and current performance is solid, providing confidence [31][32] Question: M&A landscape and expense growth expectations - Management expects to exceed $200 million in acquisition activity for the year and maintains a 3% expense growth outlook [41][42] Question: Addressing national weakness and digital conversion pace - Management acknowledged national weakness but noted that programmatic growth helps offset it, with digital conversion goals still on track [47][48] Question: AFFO per share guidance and expense growth drivers - Management clarified that the AFFO guidance remains unchanged despite share repurchases, and elevated expenses were due to one-time items and health insurance costs [53][56]

Group 1 - Lamar Advertising reported quarterly funds from operations (FFO) of $1.60 per share, exceeding the Zacks Consensus Estimate of $1.54 per share, and up from $1.54 per share a year ago, representing an FFO surprise of 3.90% [1] - The company posted revenues of $505.43 million for the quarter ended March 2025, which was 0.68% below the Zacks Consensus Estimate, compared to $498.15 million in the same quarter last year [2] - Over the last four quarters, Lamar has surpassed consensus FFO estimates two times and topped consensus revenue estimates just once [2] Group 2 - The current consensus FFO estimate for the coming quarter is $2.20 on revenues of $587.89 million, and for the current fiscal year, it is $8.19 on revenues of $2.28 billion [7] - The estimate revisions trend for Lamar is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] - The outlook for the REIT and Equity Trust - Other industry, to which Lamar belongs, is currently in the bottom 42% of over 250 Zacks industries, suggesting potential challenges ahead [8]

5321 Corporate Boulevard Baton Rouge, LA 70808 Lamar Advertising Company Announces First Quarter Ended March 31, 2025 Operating Results Three Month Results Baton Rouge, LA – May 8, 2025 - Lamar Advertising Company (the "Company" or "Lamar") (Nasdaq: LAMR), a leading owner and operator of outdoor advertising and logo sign displays, announces the Company's operating results for the first quarter ended March 31, 2025. "We delivered our 16th consecutive quarter of acquisition-adjusted revenue growth, aided by i ...

Core Insights - Lamar Advertising Company reported net revenues of $505.4 million for Q1 2025, reflecting a 1.5% increase from $498.2 million in Q1 2024 [2][20] - Net income surged by 77.4% to $139.2 million, primarily due to a $67.7 million gain from the sale of equity interest in Vistar Media [2][19] - Adjusted EBITDA slightly decreased by 0.8% to $210.2 million compared to $211.9 million in the same quarter last year [3][30] Financial Performance - The company achieved an operating income of $191.2 million, up from $124.6 million in Q1 2024, marking a significant increase of $66.6 million [2][20] - Funds from operations (FFO) rose by 5.1% to $156.1 million, while adjusted funds from operations (AFFO) increased by 3.8% to $164.3 million [5][30] - Free cash flow for Q1 2025 was reported at $121.1 million, down 12.7% from $138.7 million in Q1 2024, attributed to a current tax expense related to the Vistar sale [4][30] Acquisition-Adjusted Results - Acquisition-adjusted net revenue for Q1 2025 increased by 1.1% compared to the same period in 2024 [6] - Acquisition-adjusted EBITDA decreased by 1.0% year-over-year [6] Liquidity and Capital Management - As of March 31, 2025, Lamar had total liquidity of $491.3 million, including $455.2 million available for borrowing [7] - The company repurchased 164,529 shares for $18.4 million in Q1 2025 and an additional 1,223,562 shares for $131.6 million in April 2025, totaling $150.0 million under its stock repurchase program [9] Operational Highlights - The company continues to experience acquisition-adjusted revenue growth for the 16th consecutive quarter, driven by local and programmatic advertising [2] - The total number of displays operated by Lamar exceeds 363,000 across North America, with a significant digital billboard network [18]

Core Viewpoint - Lamar Advertising Company has acquired Premier Outdoor Media's assets, enhancing its presence in the Northeast Corridor and expanding its digital out-of-home (OOH) advertising capabilities [1][3][4]. Company Overview - Lamar Advertising Company is a leader in the OOH advertising industry, operating over 360,000 displays across North America, including approximately 5,000 digital billboards, making it the largest digital OOH network in the United States [4]. - Premier Outdoor Media, founded in 2018, became the largest independent digital OOH network in the Philadelphia Designated Market Area, growing its digital display count by over 500% under the leadership of Dominick Vastino and Sean Corbett [2][4]. Strategic Acquisition - The acquisition adds nearly 200 billboard faces, including 45 digital units, in key markets such as New Jersey, Delaware, Maryland, Pennsylvania, and New York, reinforcing Lamar's competitive edge in densely populated areas [1][3]. - Sean Reilly, CEO of Lamar, emphasized that this acquisition aligns with the company's strategy of adding high-quality, REIT-qualified assets to its portfolio [3]. Market Position and Growth Strategy - The transaction reflects Lamar's focus on scaling its digital OOH capabilities and acquiring regionally dominant networks that align with its REIT structure [4]. - As digital OOH continues to grow faster than traditional media, Lamar's expanded presence in the Northeast positions it to capture increasing advertiser demand [5]. Financial Outlook - Lamar is scheduled to report its first-quarter 2025 results on May 8, 2025, with the Zacks Consensus Estimate for funds from operations (FFO) per share at $1.54 on revenues of $508.9 million [5].

Company Overview - Lamar Advertising Company, founded in 1902, is one of the largest outdoor advertising companies in North America with over 360,000 displays across the United States and Canada [2] - The company offers a variety of advertising formats including billboard, interstate logo, transit, and airport advertising, catering to both local businesses and national brands [2] - Lamar operates the largest network of digital billboards in the United States, with approximately 5,000 displays [2] Upcoming Event - Sean Reilly, CEO of Lamar Advertising Company, is scheduled to participate in a question-and-answer session at the 53rd Annual J.P. Morgan Global Technology, Media and Communications Conference on May 13, 2025, at approximately 4:30 pm EST [1] - The session will be available via live audio webcast on the company's website and will be archived for 30 days [1]