Financial Data and Key Metrics Changes - For Q3 2024, consolidated revenue grew by 4% or 3.6% on an acquisition-adjusted basis, marking the 14th consecutive quarter of growth for the company [6][11] - Adjusted EBITDA for the quarter was $271.2 million, an increase of 2.1% compared to $265.7 million in 2023, with an adjusted EBITDA margin of 48.1% [10][11] - Adjusted funds from operations (AFFO) totaled $220.7 million, up 5.7% from $208.8 million last year, with diluted AFFO per share increasing by 5.4% to $2.15 [11][19] - The company raised its full-year AFFO guidance to a range of $7.85 to $7.95 per share, representing a nearly 6% increase over 2023 [7][19] Business Line Data and Key Metrics Changes - Local/regional revenue increased by 4.9%, while national revenue decreased by 2.9% [8][12] - Digital revenue grew nearly 5% in the quarter, with programmatic sales channel revenue increasing over 70% year-over-year [8][9] - The company plans to accelerate the rollout of new digital units in 2025, targeting 375 to 400 new digital billboards [9] Market Data and Key Metrics Changes - Political advertising was a significant contributor, with nearly $15 million year-to-date through Q3, and expectations of approximately $30 million total by year-end [24][41] - Categories showing strength included Services (up 16%), Government nonprofit (up 17%), and Building & Construction (up 29%), while Insurance and Restaurants showed weakness [28] Company Strategy and Development Direction - The company anticipates increased M&A activity in 2025 after a quiet year in 2024, focusing on tuck-in transactions to enhance its footprint [10][49] - The strategy includes leveraging programmatic advertising growth and expanding into new customer categories such as consumer packaged goods and pharmaceuticals [29][31] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of local and regional sales, which accounted for approximately 79% of billboard revenue in Q3 [12] - The company is encouraged by the momentum seen in October's results and looks forward to executing its business plan for the remainder of the year [22] Other Important Information - Total capital expenditures for Q3 were $30.1 million, with a full-year CapEx estimate of $125 million [13][19] - The company extended its $250 million AR securitization for three years, maturing in October 2027, and maintains a well-laddered debt maturity schedule [14][16] Q&A Session Summary Question: Growth opportunities and potential drivers for 2025 - Management highlighted programmatic advertising and a rebound in national sales as key growth drivers, with new customers entering the programmatic space [29] Question: Current state of programmatic ad spending in out-of-home - Management noted that the programmatic channel is growing, with an increasing number of digital specialists entering the market, leading to higher CPMs [30][31] Question: Dichotomy between earnings and AFFO - Management explained that the increase in stock compensation due to stock price fluctuations impacted net income, while AFFO benefited from solid top-line growth [34][37] Question: Political contribution expectations for Q4 - Management projected political contributions for Q4 to be around $15 million, totaling close to $30 million for the year [41] Question: Revenue uplift from digital conversions - Management provided unit economics, indicating significant revenue increases from converting static units to digital, with a revenue lift of approximately 5 to 6 times [43][45] Question: M&A outlook for 2025 - Management indicated a pickup in M&A activity driven by internal decisions and improving market conditions, with a focus on fill-in acquisitions [49][56]

Lamar Advertising (LAMR) came out with quarterly funds from operations (FFO) of $2.15 per share, missing the Zacks Consensus Estimate of $2.21 per share. This compares to FFO of $2.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of -2.71%. A quarter ago, it was expected that this outdoor and transit advertising company would post FFO of $2.07 per share when it actually produced FFO of $2.08, delivering a surprise of 0.48%.Over the ...

Core Insights - Lamar Advertising Company reported strong financial results for the third quarter of 2024, with net revenues of $564.1 million, a 4.0% increase from $542.6 million in the same quarter of 2023 [3][21] - The company also recognized a net income of $147.8 million for Q3 2024, up from $140.4 million in Q3 2023, reflecting a 5.3% increase [3][21] - Adjusted EBITDA for the third quarter was $271.2 million, representing a 2.1% increase from $265.7 million in Q3 2023 [4][21] Three Month Results - Net revenues for Q3 2024 were $564.1 million, compared to $542.6 million in Q3 2023, marking a 4.0% increase [3][21] - Net income for Q3 2024 was $147.8 million, up from $140.4 million in Q3 2023, an increase of $7.4 million [3][21] - Adjusted EBITDA for Q3 2024 was $271.2 million, compared to $265.7 million in Q3 2023, a 2.1% increase [4][21] Nine Month Results - For the nine months ended September 30, 2024, net revenues were $1.63 billion, up from $1.56 billion in the same period of 2023, a 4.7% increase [7][21] - Net income for the nine months ended September 30, 2024, was $363.9 million, compared to $347.5 million for the same period in 2023, an increase of $16.4 million [7][21] - Adjusted EBITDA for the nine months ended September 30, 2024, was $754.6 million, compared to $717.6 million in 2023, a 5.2% increase [8][21] Financial Metrics - Funds from operations (FFO) for Q3 2024 were $214.0 million, compared to $210.0 million in Q3 2023, a 1.9% increase [5][21] - Adjusted funds from operations (AFFO) for Q3 2024 were $220.7 million, up from $208.8 million in Q3 2023, a 5.7% increase [5][21] - Diluted AFFO per share increased 5.4% to $2.15 for Q3 2024, compared to $2.04 for Q3 2023 [5][21] Liquidity and Guidance - As of September 30, 2024, Lamar had total liquidity of $450.7 million, consisting of $421.2 million available for borrowing and $29.5 million in cash [10][21] - The company raised its full-year guidance for diluted AFFO to a range of $7.85 to $7.95 per share [2][12]

Lamar Advertising's (LAMR) impressive footprint of outdoor advertising assets across the United States and Canada positions it well to ride the growth curve. An unmatched logo signs business, a diversified tenant base across various sectors and a focus on local businesses assure stable revenues. Efforts to expand the digital platform and technological advancements in the low-cost, out-of-home (OOH) advertising platform also bode well for long-term growth. Strategic expansions are expected to provide it an e ...

Shares of Lamar Advertising (LAMR) have rallied 22.2% year to date against its industry's growth of 11%. Its impressive footprint of outdoor advertising assets across the United States and Canada positions it well to ride the growth curve. An unmatched logo signs business, a diversified tenant base across various sectors and a focus on local businesses assure stable revenues. Efforts to expand the digital platform and technological advancements in the low-cost, out-of-home (OOH) advertising platform also bo ...

Lamar Advertising Company (LAMR) recently announced a 7.7% sequential hike in its quarterly cash dividend. The company will now pay a dividend of $1.40 per share, up from the $1.30 paid out earlier. Moreover, subject to the board of directors' nod, Lamar expects that its quarterly distributions to stockholders in 2024 will aggregate to at least $5.40. Based on the increased rate, the annualized yield comes at 4.6%, considering Lamar's closing price of $122.63 on Aug. 28. The increased dividend will be paid ...

Core Viewpoint - Lamar Advertising has demonstrated strong financial performance and growth potential, reflected in its stock price increase and solid operational metrics, driven by local advertising demand and strategic acquisitions [1][2][3]. Financial Performance - In Q2 2024, Lamar reported adjusted funds from operations (AFFO) per share of $2.08, exceeding the Zacks Consensus Estimate of $2.07 and up from $1.90 in the prior year [2]. - The company achieved nearly 7% growth in adjusted EBITDA and 9.5% growth in diluted AFFO per share, maintaining guidance for full-year diluted AFFO per share between $7.75 and $7.90 [3]. Revenue Sources - Local and regional sales accounted for 79% of billboard revenues in Q2 2024, with these sales growing for the 13th consecutive quarter, indicating a stable revenue base [5]. - The company has a diversified tenant base across various sectors, which contributes to reduced revenue volatility [4][5]. Strategic Initiatives - Lamar has focused on upgrading its advertising portfolio and enhancing digital capabilities, with digital revenues representing approximately 30% of billboard billings [6]. - The company completed 36 acquisitions for $139 million in 2023 and 73 acquisitions for $479.8 million in 2024, indicating aggressive expansion efforts [8]. Market Position - As one of the largest outdoor advertising operators in the U.S., Lamar holds a significant market share and benefits from a strong national footprint [4]. - The company has a historical cash flow growth rate of 8.25%, significantly higher than the industry average of 2.57%, and a return on equity (ROE) of 42.18%, compared to the industry average of 3.26% [9]. Dividend Policy - Lamar has consistently raised its dividend, with a five-year annualized growth rate of 16.50%, which enhances investor confidence [10].

Shares of Lamar Advertising Company (LAMR) gained more than 2% on the Aug 8 normal trading session on the Nasdaq after it reported second-quarter 2024 adjusted funds from operations (AFFO) per share of $2.08, which beat the Zacks Consensus Estimate of $2.07. The figure also compared favorably with the prior-year quarter's tally of $1.90. Results reflect year-over-year growth in the top line, which was partly offset by higher interest expenses. The company's solid revenue growth was driven by continued stron ...

Lamar Advertising Company (NASDAQ:LAMR) Q2 2024 Earnings Conference Call August 8, 2024 9:00 AM ET Company Participants Sean Reilly - Chief Executive Officer Jay Johnson - Chief Financial Officer Conference Call Participants Cameron McVeigh - Morgan Stanley Jason Bazinet - Citigroup Inc. David Karnovsky - JPMorgan Chase & Co. Lance Vitanza - TD Cowen 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 mode. At the c ...

Financial Performance - The company's net revenues increased by $50.9 million or 5.0% to $1.06 billion for the six months ended June 30, 2024, compared to $1.01 billion for the same period in 2023[119]. - Billboard net revenues contributed an increase of $41.1 million, while transit net revenues increased by $9.1 million over the same period in 2023[119]. - Operating income rose by $13.2 million to $308.8 million for the six months ended June 30, 2024, compared to $295.6 million for the same period in 2023[121]. - Net income for the six months ended June 30, 2024, was $216.1 million, an increase from $207.1 million for the same period in 2023[122]. - Adjusted EBITDA increased by 7.0% to $483.5 million for the six months ended June 30, 2024, primarily due to a gross margin increase of $31.9 million[125]. - Net income for the six months ended June 30, 2024, increased by 4.3% to $216.1 million compared to $207.1 million for the same period in 2023[127]. - FFO for the six months ended June 30, 2024, rose to $357.8 million, reflecting a 4.0% increase from $344.1 million in 2023[127]. - AFFO for the six months ended June 30, 2024, increased by 9.8% to $371.8 million compared to $338.5 million for the same period in 2023[127]. - Net revenues for the three months ended June 30, 2024, increased by 4.5% to $565.3 million from $541.1 million in 2023, driven by a $18.9 million increase in billboard net revenues[128]. - Operating income for the three months ended June 30, 2024, increased by $7.4 million to $184.2 million compared to $176.8 million in 2023[130]. - Net income for the three months ended June 30, 2024, was $137.6 million, up from $130.9 million in 2023, representing a 5.1% increase[131]. - Adjusted EBITDA for the three months ended June 30, 2024, increased by 6.9% to $271.6 million, attributed to a $13.2 million increase in gross margin[134]. Operating Expenses - Total operating expenses, excluding depreciation and amortization, increased by $32.2 million or 5.6% to $605.2 million for the six months ended June 30, 2024[120]. - Total operating expenses for the three months ended June 30, 2024, rose by 4.7% to $304.7 million, with a $7.0 million increase in direct, general, and administrative expenses[129]. - Operating expenses (excluding stock-based compensation, gain on disposition of assets, and depreciation and amortization) rose by $19.0 million, and interest expense increased by $3.7 million during the same period[138]. - Total operating expenses increased by $32.1 million or 5.6% to $604.8 million for the six months ended June 30, 2024, compared to $572.7 million for the same period in 2023[182]. Cash Flow and Liquidity - Cash provided by operating activities increased to $366.9 million for the six months ended June 30, 2024, up from $306.9 million in the same period of 2023, primarily due to a revenue increase of $50.9 million[138]. - Total liquidity as of June 30, 2024, was $744.3 million, consisting of $77.9 million in cash and $666.4 million available under the revolving credit facility[137]. - The working capital deficit increased to $623.8 million as of June 30, 2024, primarily due to an increase in current maturities of long-term debt[137]. - Cash flows provided by operating activities increased by $60.0 million to $366.9 million for the six months ended June 30, 2024[175]. - Cash flows used in financing activities were $256.7 million for the six months ended June 30, 2024, compared to $181.8 million for the same period in 2023, primarily due to cash paid for dividends[176]. Debt and Financing - The company completed multiple acquisitions for a total cash purchase price of approximately $28.2 million during the six months ended June 30, 2024[112]. - As of June 30, 2024, there was $250.0 million in outstanding borrowings under the Accounts Receivable Securitization Program, with no additional availability[141]. - The senior credit facility totaled $1.03 billion as of June 30, 2024, consisting of $600.0 million in Term B loans, $350.0 million in Term A loans, and $75.0 million in outstanding borrowings under the revolving credit facility[152]. - The company has approximately $666.4 million of unused capacity under the revolving credit facility as of June 30, 2024[153]. - The company has the ability to incur additional indebtedness up to $2.0 billion under the senior credit facility, subject to certain conditions[157]. - Total payments due for future debt maturities and contractual obligations as of June 30, 2024, amount to $4,923.9 million[171]. - Lamar Media's outstanding debt includes $600.0 million in 3 3/4% Senior Notes and $550.0 million in 4% Senior Notes, among others[155]. - The company completed the repayment of $350.0 million in Term A loans on July 31, 2024, using a combination of borrowings under its revolving credit facility and cash on hand[155]. Taxation - The effective tax rate for the six months ended June 30, 2024, was 2.0%, primarily due to the company's qualification for taxation as a REIT[122]. - The effective tax rate for the six months ended June 30, 2024, was 2.0%, differing from the federal statutory rate due to REIT qualification[184]. Future Outlook - The company expects to generate cash flows from operations during 2024 in excess of its cash needs for operations, capital expenditures, and dividends[138]. - Lamar Media expects to generate cash flows from operations during 2024 in excess of its cash needs for operations, capital expenditures, and dividends[154]. - The company plans to continue expanding its outdoor advertising display portfolio through new construction and strategic acquisitions[174]. Capital Expenditures - Capital expenditures totaled $52.1 million for the six months ended June 30, 2024, compared to $93.0 million for the same period in 2023[112]. - Capital expenditures, excluding acquisitions, were approximately $52.1 million for the six months ended June 30, 2024, with total capital expenditures for 2024 anticipated to be approximately $125.0 million[166]. Interest Rate Risk - The company had approximately $1.27 billion of variable-rate indebtedness outstanding, representing about 37.8% of its total long-term debt as of June 30, 2024[200]. - The aggregate interest expense for 2024 related to variable-rate borrowings was $42.8 million, with a weighted average interest rate of 6.7%[200]. - If the weighted average interest rate increased by 200 basis points to 8.7%, the company's interest expense would have increased by approximately $12.5 million for the first half of 2024[200]. - The company aims to mitigate interest rate risk by issuing fixed-rate long-term debt and maintaining a balance between variable and fixed-rate indebtedness[201]. - The company has the capability to fix interest rates on borrowings under its senior credit facility for periods of up to twelve months, subject to lender consent[201].