Lamar(LAMR) - 2025 Q2 - Quarterly Report

PART I — FINANCIAL INFORMATION Item 1. Financial Statements This section presents the unaudited condensed consolidated financial statements for Lamar Advertising Company and its subsidiary for the quarter ended June 30, 2025 Lamar Advertising Company Financial Statements Lamar Advertising Company reported total assets of $6.67 billion and net income of $294.2 million for the six months ended June 30, 2025 Condensed Consolidated Balance Sheet Highlights (in thousands of USD) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $457,538 | $425,268 | | Net property, plant and equipment | $1,606,639 | $1,600,809 | | Total assets | $6,673,968 | $6,586,549 | | Total current liabilities | $782,662 | $778,474 | | Long-term debt, net | $3,113,788 | $2,961,058 | | Total liabilities | $5,767,085 | $5,538,529 | | Total stockholders' equity | $906,883 | $1,048,020 | Condensed Consolidated Statements of Income Highlights (in thousands of USD) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net revenues | $579,311 | $565,251 | $1,084,741 | $1,063,401 | | Operating income | $197,681 | $184,227 | $388,914 | $308,827 | | Net income | $155,016 | $137,594 | $294,245 | $216,093 | | Diluted EPS | $1.52 | $1.34 | $2.87 | $2.10 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands of USD) | Cash Flow Category | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $357,232 | $366,904 | | Net cash used in investing activities | ($33,776) | ($76,661) | | Net cash used in financing activities | ($317,469) | ($256,744) | | Net increase in cash and cash equivalents | $6,265 | $33,327 | Notes to Condensed Consolidated Financial Statements (Lamar Advertising Company) Notes detail key accounting policies, the $115.1 million Vistar Media sale, and $150.0 million in stock repurchases Disaggregated Revenue by Source (in thousands of USD) | Revenue Source | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Billboard advertising | $512,317 | $502,144 | $957,214 | $941,529 | | Logo advertising | $23,251 | $21,517 | $44,889 | $42,259 | | Transit advertising | $43,743 | $41,590 | $82,638 | $79,613 | | Total Net revenues | $579,311 | $565,251 | $1,084,741 | $1,063,401 | - On February 3, 2025, the company sold its 20% minority interest in Vistar Media, Inc. for $115.1 million in cash, recognizing a gain of $67.8 million; an additional $15.1 million may be received from escrow[97] - During the six months ended June 30, 2025, the company repurchased 1,388,091 shares of Class A common stock for $150.0 million, increasing the total authorized amount under the repurchase program to $400.0 million[108] - Subsequent to the quarter end, on July 2, 2025, the company acquired the assets of Verde Outdoor, including over 1,500 billboard faces, in exchange for 1,187,500 Common Units of Lamar LP[116] Lamar Media Corp. Financial Statements Lamar Media Corp. reported total assets of $6.66 billion and net income of $294.5 million for the six months ended June 30, 2025 Lamar Media Corp. Condensed Consolidated Balance Sheet Highlights (in thousands of USD) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total assets | $6,657,224 | $6,569,807 | | Total liabilities | $5,755,980 | $5,527,868 | | Total stockholder's equity | $901,244 | $1,041,939 | Lamar Media Corp. Condensed Consolidated Statements of Income Highlights (in thousands of USD) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net revenues | $1,084,741 | $1,063,401 | | Operating income | $389,173 | $309,146 | | Net income | $294,504 | $216,412 | Notes to Condensed Consolidated Financial Statements (Lamar Media Corp.) Lamar Media Corp. notes are consistent with the parent company, providing summarized financial information for debt agreement compliance - Most notes to the financial statements are omitted as they are substantially equivalent to those provided for the parent company, Lamar Advertising Company[130] - Summarized financial information for Lamar Media, its subsidiary guarantors, and non-guarantor subsidiaries is presented as required by its publicly issued notes, for which the subsidiaries provide full and unconditional guarantees[131] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial condition and results of operations for Lamar Advertising and Lamar Media, focusing on Q2 2025 performance and liquidity Lamar Advertising Company MD&A Lamar Advertising's MD&A highlights 2.0% revenue growth, strong operating income from asset dispositions, and $363.0 million in liquidity Six-Month Performance Comparison (YTD 2025 vs YTD 2024) (in millions of USD) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | $1,080 | $1,060 | +2.0% | | Operating Income | $388.9 | $308.8 | +26.0% | | Net Income | $294.2 | $216.1 | +36.2% | | Adjusted EBITDA | $488.6 | $483.5 | +1.1% | | AFFO | $389.6 | $371.8 | +4.8% | Three-Month Performance Comparison (Q2 2025 vs Q2 2024) (in millions of USD) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | $579.3 | $565.3 | +2.5% | | Operating Income | $197.7 | $184.2 | +7.3% | | Net Income | $155.0 | $137.6 | +12.7% | | Adjusted EBITDA | $278.4 | $271.6 | +2.5% | | AFFO | $225.3 | $213.5 | +5.5% | - The company maintains total liquidity of $363.0 million as of June 30, 2025, comprising $55.7 million in cash and $307.3 million available under its revolving credit facility[194] - Key uses of cash in the first six months of 2025 included $68.1 million in capital expenditures, $87.1 million for acquisitions, and $150.0 million for stock repurchases[228][231] Lamar Media Corp. MD&A Lamar Media's MD&A mirrors the parent, showing 2.0% revenue growth and 1.0% Adjusted EBITDA increase for the six-month period Lamar Media Six-Month Performance (YTD 2025 vs YTD 2024) (in millions of USD) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | $1,080 | $1,060 | +2.0% | | Operating Income | $389.2 | $309.1 | +25.9% | | Net Income | $294.5 | $216.4 | +36.1% | | Adjusted EBITDA | $488.9 | $483.8 | +1.0% | | AFFO | $389.8 | $372.1 | +4.8% | Lamar Media Three-Month Performance (Q2 2025 vs Q2 2024) (in millions of USD) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | $579.3 | $565.3 | +2.5% | | Operating Income | $197.8 | $184.4 | +7.3% | | Net Income | $155.2 | $137.8 | +12.6% | | Adjusted EBITDA | $278.5 | $271.7 | +2.5% | | AFFO | $225.4 | $213.7 | +5.5% | Item 3. Quantitative and Qualitative Disclosures About Market Risk The company faces interest rate risk from $1.28 billion in variable-rate debt, with a 200 basis point increase raising interest expense by $11.3 million - As of June 30, 2025, the company had approximately $1.28 billion in variable-rate debt, representing 37.9% of its total outstanding long-term debt[275] - A hypothetical 200 basis point (2.0%) increase in interest rates would have increased interest expense by an estimated $11.3 million for the six months ended June 30, 2025[275] Item 4. Controls and Procedures Management concluded disclosure controls and procedures were effective, 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[277] - No material changes to internal control over financial reporting were identified during the last fiscal quarter[278] PART II — OTHER INFORMATION Item 1A. Risk Factors No material changes to the company's risk factors have occurred 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 Form 10-K[279] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The company repurchased 1,223,562 shares in Q2 2025, increasing the repurchase program authorization to $400 million Share Repurchases for Q2 2025 (in USD) | Period | Total Shares Purchased | Average Price Paid Per Share | Dollar Value Remaining for Repurchase | | :--- | :--- | :--- | :--- | | April 2025 | 1,223,562 | $107.52 | $100,000,000 | | May 2025 | — | — | $250,000,000 | | June 2025 | — | — | $250,000,000 | | Total Q2 | 1,223,562 | $107.52 | $250,000,000 | - On May 15, 2025, the Board of Directors increased the stock repurchase program authorization by $150.0 million, bringing the total to $400.0 million[280] Item 5. Other Information No information is reported under this item for the current period - None[281] Item 6. Exhibits This section lists exhibits filed with the Form 10-Q, including corporate governance documents, CEO/CFO certifications, and XBRL data - Lists exhibits filed with the report, including CEO/CFO certifications (Sections 302 and 906) and XBRL data files[282]