Lamar Advertising Company: Fourth Quarter and Year Ended December 31, 2024 Operating Results

Three Month Results:

• Net revenue was $579.6 million
• Net loss was $(1.0) million
• Adjusted EBITDA was $278.5 million

Twelve Month Results:

• Net revenue was $2.21 billion
• Net income was $362.9 million
• Adjusted EBITDA was $1.03 billion

BATON ROUGE, La., Feb. 20, 2025 — Lamar Advertising Company (the “Company” or “Lamar”) (Nasdaq: LAMR), a leading owner and operator of outdoor advertising and logo sign displays, announces the Company’s operating results for the fourth quarter and year ended December 31, 2024.

“Our revenue growth accelerated in the fourth quarter, aided by strength in political, local and programmatic. This allowed us to deliver full-year AFFO of $7.99 per share, above the top end of our revised guidance range,” Lamar chief executive Sean Reilly said. “For 2025, we anticipate further growth in diluted AFFO, to a range of $8.13 to $8.28 per share.”

Fourth Quarter Highlights:

• Net revenue increased 4.3%
• Depreciation and amortization increased 233.9%
• Net income decreased 100.7%
• Adjusted EBITDA increased 3.9%
• AFFO increased 5.4%

Lamar reported net revenues of $579.6 million for the fourth quarter of 2024 versus $555.9 million for the fourth quarter of 2023, a 4.3% increase. Operating income for the fourth quarter of 2024 decreased $155.1 million to $36.7 million as compared to $191.7 million for the same period in 2023. Lamar recognized a net loss of $1.0 million for the fourth quarter of 2024 as compared to net income of $149.3 million for same period in 2023, a decrease of $150.3 million. The 100.7% decrease in net income for the fourth quarter of 2024 as compared to the same period in 2023 was primarily related to a revision in the estimate of our asset retirement obligation which resulted in an additional $159.7 million recorded to depreciation and amortization expense in the period. Excluding the effects of this additional expense, net income for the fourth quarter of 2024 increased 6.3% from the same period in 2023. Net (loss) income per diluted share was $(0.01) and $1.46 for the three months ended December 31, 2024 and 2023, respectively.

Adjusted EBITDA for the fourth quarter of 2024 was $278.5 million versus $268.2 million for the fourth quarter of 2023, an increase of 3.9%.

Cash flow provided by operating activities was $279.3 million for the three months ended December 31, 2024 versus $254.2 million for the fourth quarter of 2023, an increase of $25.1 million. Free cash flow for the fourth quarter of 2024 was $195.6 million as compared to $180.3 million for the same period in 2023, an 8.5% increase.

For the fourth quarter of 2024, funds from operations, or FFO, was $226.7 million versus $213.7 million for the same period in 2023, an increase of 6.1%. Adjusted funds from operations, or AFFO, for the fourth quarter of 2024 was $226.5 million compared to $215.0 million for the same period in 2023, an increase of 5.4%. Diluted AFFO per share increased 5.2% to $2.21 for the three months ended December 31, 2024 as compared to $2.10 for the same period in 2023.

Acquisition-Adjusted Three Months Results

Acquisition-adjusted net revenue for the fourth quarter of 2024 increased 4.1% over acquisition-adjusted net revenue for the fourth quarter of 2023. Acquisition-adjusted EBITDA for the fourth quarter of 2024 increased 3.9% as compared to acquisition-adjusted EBITDA for the fourth quarter of 2023. Acquisition-adjusted net revenue and acquisition-adjusted EBITDA include adjustments to the 2023 period for acquisitions and divestitures for the same time frame as actually owned in the 2024 period. See “Reconciliation of Reported Basis to Acquisition-Adjusted Results”, which provides reconciliations to GAAP for acquisition-adjusted measures.

Twelve Month Results

Lamar reported net revenues of $2.21 billion for the year ended December 31, 2024 versus $2.11 billion for the year ended December 31, 2023, a 4.6% increase. Operating income for the year ended December 31, 2024 decreased $143.4 million to $532.0 million as compared to $675.4 million for the same period in 2023. Lamar recognized net income of $362.9 million for the year ended December 31, 2024 as compared to net income of $496.8 million for the same period in 2023, a decrease of $133.9 million. The 26.9% decrease in net income for the year ended December 31, 2024 as compared to 2023 was primarily related to a revision in the estimate of our asset retirement obligation which resulted in an additional $159.7 million recorded to depreciation and amortization expense in 2024. Excluding the effects of this additional expense, 2024 net income increased 5.2% from the year ended December 31, 2023. Net income per diluted share was $3.52 and $4.85 for the twelve months ended December 31, 2024 and 2023, respectively.

Adjusted EBITDA for the twelve months ended December 31, 2024 was $1.03 billion versus $985.7 million for the same period in 2023, an increase of 4.8%.

Cash flow provided by operating activities was $873.6 million for the twelve months ended December 31, 2024, an increase of $90.0 million as compared to the same period in 2023. Free cash flow for the twelve months ended December 31, 2024 was $735.9 million as compared to $633.8 million for the same period in 2023, a 16.1% increase.

For the twelve months ended December 31, 2024, funds from operations, or FFO, was $798.4 million versus $767.9 million for the same period in 2023, an increase of 4.0%. Adjusted funds from operations, or AFFO, for the twelve months ended December 31, 2024 was $819.0 million compared to $762.3 million for the same period in 2023, an increase of 7.4%. Diluted AFFO per share increased 7.0% to $7.99 for the twelve months ended December 31, 2024 as compared to $7.47 for the same period in 2023.

Liquidity

As of December 31, 2024, Lamar had $506.7 million in total liquidity that consisted of $457.2 million available for borrowing under its revolving senior credit facility and $49.5 million in cash and cash equivalents. There were $284.0 million in borrowings outstanding under the Company’s revolving credit facility and $250.0 million outstanding under the Accounts Receivable Securitization Program as of the same date.

Recent Developments

On February 3, 2025, T-Mobile USA, Inc. acquired 100% of Vistar Media Inc. (the “Sale”). In connection with the closing of the Sale, the Company received $115.1 million in cash as consideration for the sale of its 20% equity interest in Vistar Media. Up to an additional $15.1 million of cash consideration for the Sale may be received by the Company in the future, upon release from escrow following the satisfaction of certain post-closing conditions.

Proceeds received from the Sale were used to repay a portion of the outstanding balance under the Company’s revolving credit facility. Currently the Company has $119.0 million of outstanding balances under its revolving credit facility.

Guidance

We expect net income per diluted share for fiscal year 2025 to be between $6.01 and $6.07, with diluted AFFO per share between $8.13 and $8.28. See “Supplemental Schedules Unaudited REIT Measures and Reconciliations to GAAP Measures” for reconciliation to GAAP.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding sales trends. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. These risks and uncertainties include, among others: (1) our significant indebtedness; (2) the state of the economy and financial markets generally, and the effect of the broader economy on the demand for advertising; (3) the continued popularity of outdoor advertising as an advertising medium; (4) our need for and ability to obtain additional funding for operations, debt refinancing or acquisitions; (5) our ability to continue to qualify as a Real Estate Investment Trust (“REIT”) and maintain our status as a REIT; (6) the regulation of the outdoor advertising industry by federal, state and local governments; (7) the integration of companies and assets that we acquire and our ability to recognize cost savings or operating efficiencies as a result of these acquisitions; (8) changes in accounting principles, policies or guidelines; (9) changes in tax laws applicable to REITs or in the interpretation of those laws; (10) our ability to renew expiring contracts at favorable rates; (11) our ability to successfully implement our digital deployment strategy; and (12) the market for our Class A common stock. For additional information regarding factors that may cause actual results to differ materially from those indicated in our forward-looking statements, we refer you to the risk factors included in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, as supplemented by any risk factors contained in our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. We caution investors not to place undue reliance on the forward-looking statements contained in this document. These statements speak only as of the date of this document, and we undertake no obligation to update or revise the statements, except as may be required by law.