Lamar(US:LAMR)2025-05-08 15:12PART I — FINANCIAL INFORMATION Financial Statements 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 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 202593 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 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 data5121 - 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 parent115 Management's Discussion and Analysis of Financial Condition and Results of Operations 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, Inc152 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 facility164 - 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)198139 - 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 share199 - 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 program201 Quantitative and Qualitative Disclosures About Market Risk 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 months231 Controls and Procedures 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 effective232 - No material changes in internal control over financial reporting were identified during the last fiscal quarter233 PART II — OTHER INFORMATION Risk Factors 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-K234 Unregistered Sales of Equity Securities and Use of Proceeds 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, 2026235 Other Information No information was reported for this item - None236 Exhibits 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 Act237