Lamar(US:LAMR)2020-02-20 17:02Financial Data and Key Metrics Changes - For Q4 2019, acquisition-adjusted revenue growth was 2.7%, with adjusted EBITDA increasing by 4.7% to $215.6 million compared to $195.3 million in Q4 2018 [9][10] - Full year revenue increased by 7.8% to $1.75 billion, adjusted EBITDA rose by 8.6% to $784.9 million, and fully diluted AFFO per share increased by 5.5% to $5.80 [10][11] - Consolidated expenses grew by only 1% in Q4, with full year expense growth at 2.1%, aligning with historical levels [11] Business Line Data and Key Metrics Changes - The digital platform showed strong performance with same board growth of 4.6% for the full year, and 5.2% for the digital platform specifically [18] - The company ended the year with 3,542 digital faces, an increase of approximately 335 faces, with a goal of adding around 250 new-build units in 2020 [19] Market Data and Key Metrics Changes - In Q4, local sales grew by 1.8% while national/programmatic sales increased by 7.7% [20] - Strong verticals included service (up 7%), hospitals (up 8%), amusement/entertainment/sports (up 7%), insurance (up 42%), and financial (up 20%), while automotive was down 4% and retail saw a negative swing of 5% in November and December [21][22] Company Strategy and Development Direction - The company successfully integrated several acquisitions in 2019, expanding into nine new markets [5] - For 2020, the company anticipates stronger acquisition-adjusted growth driven by political and programmatic revenues, with a guidance of 3.5% to 4% pro forma sales growth [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for Q1 2020, expecting a strong start towards annual targets [9] - The company noted that retail performance in January 2020 showed improvement, indicating a potential recovery from the holiday season's negative impact [22][34] Other Important Information - The company completed a major refinancing of $2.35 billion in January 2020, aimed at lowering overall debt costs and enhancing liquidity [14][15] - The refinancing is expected to result in over $60 million in amortization and cash interest savings, which can be redirected towards acquisitions or digital conversions [16] Q&A Session Summary Question: Impact of retail performance on growth - Management acknowledged that retail's negative contribution could be attributed to a holiday hiccup, but early indicators for 2020 are positive with January showing a 2.6% increase [24][34] Question: Expectations for D&A in 2020 - Management projected depreciation and amortization to be approximately $249 million to $250 million [26] Question: Q1 revenue expectations and M&A pipeline - Management indicated confidence in Q1 performance but will not provide specific pacing estimates, and confirmed that the guidance does not include M&A activity, which has slowed compared to the previous 15 months [29][30]