Lamar's Q1 AFFO Beats Estimates, Revenues Increase Y/Y

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]