Lamar(US:LAMR)2022-02-25 17:09Financial Data and Key Metrics Changes - The company reported record EBITDA of over $827 million, achieving the highest operating margins in its history at 46.3% [5][12] - Full-year AFFO reached $6.59 per share, exceeding the upper end of the original guidance by more than 6% [5][12] - AFFO growth for Q4 2021 was 4.1% to $1.78 per share compared to Q4 2020 [10] Business Line Data and Key Metrics Changes - Digital revenue increased by 25% overall compared to Q4 2020, and 16% on a like-for-like basis [5] - Billboard revenue surpassed Q4 2019 levels by approximately 8% [10] - Acquisition adjusted revenue for the full year increased by 13.8% to $1.79 billion [12] Market Data and Key Metrics Changes - Local and regional revenue improved by 12.4%, while national business, including programmatic, increased by almost 15% [12] - The company experienced a 60% growth in the amusement and entertainment category compared to Q4 2020 [4] Company Strategy and Development Direction - The company plans to aggressively pursue digital roll-out, targeting 300 new units in 2022 after falling short in 2021 due to production delays [9] - The company anticipates another active year in M&A, having closed 45 deals in 2021 for a total purchase price of $312 million [9][13] - The focus remains on high-quality re-qualified assets that can be integrated into the existing footprint [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the business, with expectations for revenue growth in the mid-teens for Q1 2022 [6] - The company expects consolidated operating margins to remain at 46% for 2022, despite anticipated expense growth [9][25] - Management highlighted strong sales momentum and a robust acquisition pipeline for 2022 [9][32] Other Important Information - The company announced a first-quarter dividend of $1.10 per share and anticipates a full-year cash dividend of $4.40 per share in 2022, a 10% increase [17] - The balance sheet remains strong, with approximately $663 million in liquidity [15] Q&A Session Summary Question: Impact of transit business revenue from 2021 to 2022 - Management indicated that the U.S. Transit divisions are recovering well, with Canadian Transit being the biggest drag, but overall EBITDA contributions are expected to increase [25] Question: Acquisition impact on guidance - The guidance includes revenue growth of 8 to 10%, with no acquisitions baked into the guidance for 2022 [26][29] Question: Supply chain delays for digital billboards - Management acknowledged supply chain issues but remains optimistic about achieving the target of 300 digital units in 2022 [38] Question: Geographic focus for tuck-in acquisitions - The company does not have a targeted geography but focuses on high-quality assets that can integrate into the existing footprint [40]