Thursday, May 30, 2024

Lamar Advertising Company reports revenues of $541.1 million, a 4.5% increase, in Q2, 2023

Thursday, August 3, 2023

Three Month Results:

  • Net revenue was $541.1 million
  • Net income was $130.9 million
  • Adjusted EBITDA was $253.9 million

Six Month Results: 

  • Net revenue was $1.01 billion
  • Net income was $207.1 million
  • Adjusted EBITDA was $451.9 million

BATON ROUGE, La., Aug. 03, 2023 — Lamar Advertising Company (the “Company” or “Lamar”) (Nasdaq: LAMR), is an owner and operator of outdoor advertising and logo sign displays. The Company has reported its operating results for the second quarter ended June 30, 2023.

“As we moved into the third quarter, we observed a slowdown in business activity,” Lamar chief executive Sean Reilly said. “Although we still feel positive about our efforts to control expenses, revenue for the second half of 2023 is not shaping up as we anticipated it would. As a result, we are revising our guidance for full-year diluted AFFO to a range of $7.13 to $7.28 per share.”

Second Quarter Highlights

  • Net revenue increased 4.5%
  • Adjusted EBITDA increased 4.3%
  • Diluted AFFO per share decreased 2.1%

Second Quarter Results

Lamar reported net revenues of $541.1 million for the second quarter of 2023 versus $517.9 million for the second quarter of 2022, a 4.5% increase. Operating income for the second quarter of 2023 increased $10.3 million to $176.8 million as compared to $166.5 million for the same period in 2022. Lamar recognized net income of $130.9 million for the second quarter of 2023 as compared to net income of $134.2 million for the same period in 2022, a decrease of $3.3 million, primarily related to an increase in interest expense of $14.2 million over the same period in 2022. Net income per diluted share was $1.28 and $1.32 for the three months ended June 30, 2023 and 2022, respectively.

Adjusted EBITDA for the second quarter of 2023 was $253.9 million versus $243.4 million for the second quarter of 2022, an increase of 4.3%.

Cash flow provided by operating activities was $198.2 million for the three months ended June 30, 2023 versus $210.6 million for the second quarter of 2022, a decrease of $12.4 million. Free cash flow for the second quarter of 2023 was $159.2 million as compared to $166.6 million for the same period in 2022, a 4.4% decrease.

For the second quarter of 2023, funds from operations, or FFO, was $200.6 million versus $197.6 million for the same period in 2022, an increase of 1.6%. Adjusted funds from operations, or AFFO, for the second quarter of 2023 was $194.4 million compared to $196.9 million for the same period in 2022, a decrease of 1.3%. Diluted AFFO per share decreased 2.1% to $1.90 for the three months ended June 30, 2023 as compared to $1.94 for the same period in 2022.

Acquisition-Adjusted Three Months Results

Acquisition-adjusted net revenue for the second quarter of 2023 increased 2.7% over acquisition-adjusted net revenue for the second quarter of 2022. Acquisition-adjusted EBITDA for the second quarter of 2023 increased 2.9% as compared to acquisition-adjusted EBITDA for the second quarter of 2022. Acquisition-adjusted net revenue and acquisition-adjusted EBITDA include adjustments to the 2022 period for acquisitions and divestitures for the same time frame as actually owned in the 2023 period. See “Reconciliation of Reported Basis to Acquisition-Adjusted Results”, which provides reconciliations to GAAP for acquisition-adjusted measures.

Six Month Results

Lamar reported net revenues of $1.01 billion for the six months ended June 30, 2023 versus $969.2 million for the six months ended June 30, 2022, a 4.5% increase. Operating income for the six months ended June 30, 2023 increased $8.6 million to $295.6 million as compared to $287.0 million for the same period in 2022. Lamar recognized net income of $207.1 million for the six months ended June 30, 2023 as compared to net income of $226.4 million for the same period in 2022, a decrease of $19.3 million, primarily related to an increase in interest expense of $28.8 million over the same period in 2022. Net income per diluted share was $2.02 and $2.23 for the six months ended June 30, 2023 and 2022, respectively.

Adjusted EBITDA for the six months ended June 30, 2023 was $451.9 million versus $434.6 million for the same period in 2022, an increase of 4.0%.

Cash flow provided by operating activities was $306.9 million for the six months ended June 30, 2023, a decrease of $5.8 million as compared to the same period in 2022. Free cash flow for the six months ended June 30, 2023 was $272.5 million as compared to $301.1 million for the same period in 2022, a 9.5% decrease.

For the six months ended June 30, 2023, funds from operations, or FFO, was $344.1 million versus $353.9 million for the same period in 2022, a decrease of 2.8%. Adjusted funds from operations, or AFFO, for the six months ended June 30, 2023 was $338.5 million compared to $348.8 million for the same period in 2022, a decrease of 3.0%. Diluted AFFO per share decreased 3.2% to $3.32 for the six months ended June 30, 2023 as compared to $3.43 for the same period in 2022.

Liquidity

As of June 30, 2023, Lamar had $661.1 million in total liquidity that consisted of $608.3 million available for borrowing under its revolving senior credit facility, $5.0 million under its Accounts Receivable Securitization Program and $47.8 million in cash and cash equivalents. There were $133.0 million in borrowings outstanding under the Company’s revolving credit facility and $234.9 million outstanding under the Accounts Receivable Securitization Program as of the same date.

Revised Guidance

We are updating our 2023 guidance issued in February 2023. We now expect net income per diluted share for fiscal year 2023 to be between $4.72 and $4.80, with diluted AFFO per share between $7.13 and $7.28. 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, including inflationary pressures 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, 2022, 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.

Use of Non-GAAP Financial Measures

The Company has presented the following measures that are not measures of performance under accounting principles generally accepted in the United States of America (“GAAP”): adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), free cash flow, funds from operations (“FFO”), adjusted funds from operations (“AFFO”), diluted AFFO per share, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense. Our management reviews our performance by focusing on these key performance indicators not prepared in conformity with GAAP. We believe these non-GAAP performance indicators are meaningful supplemental measures of our operating performance and should not be considered in isolation of, or as a substitute for their most directly comparable GAAP financial measures.

Our Non-GAAP financial measures are determined as follows:

  • We define adjusted EBITDA as net income before income tax expense (benefit), interest expense (income), loss (gain) on extinguishment of debt and investments, equity in earnings (loss) of investees, stock-based compensation, depreciation and amortization, gain or loss on disposition of assets, transaction expenses and investments and capitalized contract fulfillment costs, net.
  • Adjusted EBITDA margin is defined as adjusted EBITDA divided by net revenues.
  • Free cash flow is defined as adjusted EBITDA less interest, net of interest income and amortization of deferred financing costs, current taxes, preferred stock dividends and total capital expenditures.
  • We use the National Association of Real Estate Investment Trusts definition of FFO, which is defined as net income before gains or losses from the sale or disposal of real estate assets and investments and real estate related depreciation and amortization and including adjustments to eliminate unconsolidated affiliates and non-controlling interest.
  • We define AFFO as FFO before (i) straight-line revenue and expense; (ii) capitalized contract fulfillment costs, net; (iii) stock-based compensation expense; (iv) non-cash portion of tax provision; (v) non-real estate related depreciation and amortization; (vi) amortization of deferred financing costs; (vii) loss on extinguishment of debt; (viii) transaction expenses; (ix) non-recurring infrequent or unusual losses (gains); (x) less maintenance capital expenditures; and (xi) an adjustment for unconsolidated affiliates and non-controlling interest.
  • Diluted AFFO per share is defined as AFFO divided by weighted average diluted common shares outstanding.
  • Outdoor operating income is defined as operating income before corporate expenses, stock-based compensation, capitalized contract fulfillment costs, net, transaction expenses, depreciation and amortization and loss (gain) on disposition of assets.
  • Acquisition-adjusted results adjusts our net revenue, direct and general and administrative expenses, outdoor operating income, corporate expense and EBITDA for the prior period by adding to, or subtracting from, the corresponding revenue or expense generated by the acquired or divested assets before our acquisition or divestiture of these assets for the same time frame that those assets were owned in the current period. In calculating acquisition-adjusted results, therefore, we include revenue and expenses generated by assets that we did not own in the prior period but acquired in the current period. We refer to the amount of pre-acquisition revenue and expense generated by or subtracted from the acquired assets during the prior period that corresponds with the current period in which we owned the assets (to the extent within the period to which this report relates) as “acquisition-adjusted results”.
  • Acquisition-adjusted consolidated expense adjusts our total operating expense to remove the impact of stock-based compensation, depreciation and amortization, transaction expenses, capitalized contract fulfillment costs, net, and loss (gain) on disposition of assets and investments. The prior period is also adjusted to include the expense generated by the acquired or divested assets before our acquisition or divestiture of such assets for the same time frame that those assets were owned in the current period.

Adjusted EBITDA, FFO, AFFO, diluted AFFO per share, free cash flow, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense are not intended to replace other performance measures determined in accordance with GAAP. Free cash flow, FFO and AFFO do not represent cash flows from operating activities in accordance with GAAP and, therefore, these measures should not be considered indicative of cash flows from operating activities as a measure of liquidity or of funds available to fund our cash needs, including our ability to make cash distributions. Adjusted EBITDA, free cash flow, FFO, AFFO, diluted AFFO per share, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense are presented as we believe each is a useful indicator of our current operating performance. Specifically, we believe that these metrics are useful to an investor in evaluating our operating performance because (1) each is a key measure used by our management team for purposes of decision making and for evaluating our core operating results; (2) adjusted EBITDA is widely used in the industry to measure operating performance as it excludes the impact of depreciation and amortization, which may vary significantly among companies, depending upon accounting methods and useful lives, particularly where acquisitions and non-operating factors are involved; (3) adjusted EBITDA, FFO, AFFO, diluted AFFO per share and acquisition-adjusted consolidated expense each provides investors with a meaningful measure for evaluating our period-over-period operating performance by eliminating items that are not operational in nature and reflect the impact on operations from trends in occupancy rates, operating costs, general and administrative expenses and interest costs; (4) acquisition-adjusted results is a supplement to enable investors to compare period-over-period results on a more consistent basis without the effects of acquisitions and divestitures, which reflects our core performance and organic growth (if any) during the period in which the assets were owned and managed by us; (5) free cash flow is an indicator of our ability to service debt and generate cash for acquisitions and other strategic investments; (6) outdoor operating income provides investors a measurement of our core results without the impact of fluctuations in stock-based compensation, depreciation and amortization and corporate expenses; and (7) each of our Non-GAAP measures provides investors with a measure for comparing our results of operations to those of other companies.

Our measurement of adjusted EBITDA, FFO, AFFO, diluted AFFO per share, free cash flow, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense may not, however, be fully comparable to similarly titled measures used by other companies. Reconciliations of adjusted EBITDA, FFO, AFFO, diluted AFFO per share, free cash flow, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense to the most directly comparable GAAP measures have been included herein.

Conference Call Information

A conference call will be held to discuss the Company’s operating results on Thursday, August 3, 2023 at 8:00 a.m. central time. Instructions for the conference call and Webcast are provided below:

Conference Call

 

All Callers: 1-800-420-1271 or 1-785-424-1634
Passcode: 63104
Live Webcast: www.lamar.com/About/Investors/Presentations
Webcast Replay: www.lamar.com/About/Investors/Presentations
Available through Thursday, August 10, 2023 at 11:59 p.m. eastern time
Company Contact: Buster Kantrow
Director of Investor Relations
(225) 926-1000
bkantrow@lamar.com

General Information

Founded in 1902, Lamar Advertising (Nasdaq: LAMR) is one of the largest outdoor advertising companies in North America, with approximately 361,000 displays across the United States and Canada. Lamar offers advertisers a variety of billboard, interstate logo, transit and airport advertising formats, helping both local businesses and national brands reach broad audiences every day. In addition to its more traditional out-of-home inventory, Lamar is proud to offer its customers the largest network of digital billboards in the United States with over 4,600 displays.

 

LAMAR ADVERTISING COMPANY AND SUBSIDIARIES 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME 
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023 2022 2023 2022
Net revenues $ 541,137 $ 517,852 $ 1,012,469 $ 969,240
Operating expenses (income)
Direct advertising expenses 172,543 167,360 340,301 324,186
General and administrative expenses 88,309 84,210 169,191 165,973
Corporate expenses 26,366 22,920 51,106 44,473
Stock-based compensation 4,406 7,443 12,446 9,223
Capitalized contract fulfillment costs, net (760 ) (637 ) (86 ) 309
Transaction expenses 3,676 3,676
Depreciation and amortization 75,158 67,750 148,283 136,377
Gain on disposition of assets (1,676 ) (1,374 ) (4,364 ) (1,937 )
Total operating expense 364,346 351,348 716,877 682,280
Operating income 176,791 166,504 295,592 286,960
Other expense (income)
Interest income (477 ) (279 ) (938 ) (494 )
Interest expense 43,649 29,493 85,093 56,279
Equity in earnings of investee (449 ) (355 ) (627 ) (1,101 )
42,723 28,859 83,528 54,684
Income before income tax expense 134,068 137,645 212,064 232,276
Income tax expense 3,180 3,440 4,978 5,920
Net income 130,888 134,205 207,086 226,356
Earnings attributable to non-controlling interest 268 425
Net income attributable to controlling interest 130,620 134,205 206,661 226,356
Preferred stock dividends 91 91 182 182
Net income applicable to common stock $ 130,529 $ 134,114 $ 206,479 $ 226,174
Earnings per share:
Basic earnings per share $ 1.28 $ 1.32 $ 2.03 $ 2.23
Diluted earnings per share $ 1.28 $ 1.32 $ 2.02 $ 2.23
Weighted average common shares outstanding:
Basic 101,917,200 101,486,547 101,855,104 101,413,458
Diluted 102,104,429 101,660,120 102,047,875 101,602,743
OTHER DATA
Free Cash Flow Computation:
Adjusted EBITDA $ 253,919 $ 243,362 $ 451,871 $ 434,608
Interest, net (41,520 ) (27,735 ) (80,861 ) (52,835 )
Current tax expense (2,373 ) (1,886 ) (5,323 ) (4,708 )
Preferred stock dividends (91 ) (91 ) (182 ) (182 )
Total capital expenditures (50,722 ) (47,043 ) (93,007 ) (75,802 )
Free cash flow $ 159,213 $ 166,607 $ 272,498 $ 301,081

 

SUPPLEMENTAL SCHEDULES
SELECTED BALANCE SHEET AND CASH FLOW DATA
(IN THOUSANDS)
June 30,
2023
December 31,
2022
(Unaudited)
Selected Balance Sheet Data:
Cash and cash equivalents $ 47,779 $ 52,619
Working capital deficit $ (293,017 ) $ (361,485 )
Total assets $ 6,521,044 $ 6,475,214
Total debt, net of deferred financing costs (including current maturities) $ 3,388,786 $ 3,312,805
Total stockholders’ equity $ 1,170,494 $ 1,195,374

 

Three Months Ended
June 30,
Six Months Ended
June 30,
2023 2022 2023 2022
(Unaudited)
Selected Cash Flow Data:
Cash flows provided by operating activities $ 198,162 $ 210,592 $ 306,874 $ 312,630
Cash flows used in investing activities $ 77,345 $ 225,036 $ 130,009 $ 308,378
Cash flows used in financing activities $ 106,626 $ 9,570 $ 181,781 $ 12,283

 

SUPPLEMENTAL SCHEDULES
UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES
(IN THOUSANDS)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023 2022 2023 2022
Reconciliation of Cash Flows Provided by Operating
Activities to Free Cash Flow:
Cash flows provided by operating activities $ 198,162 $ 210,592 $ 306,874 $ 312,630
Changes in operating assets and liabilities 16,785 4,517 64,457 64,818
Total capital expenditures (50,722 ) (47,043 ) (93,007 ) (75,802 )
Preferred stock dividends (91 ) (91 ) (182 ) (182 )
Capitalized contract fulfillment costs, net (760 ) (637 ) (86 ) 309
Transaction expenses 3,676 3,676
Other (4,161 ) (4,407 ) (5,558 ) (4,368 )
Free cash flow $ 159,213 $ 166,607 $ 272,498 $ 301,081
Reconciliation of Net Income to Adjusted EBITDA:
Net income $ 130,888 $ 134,205 $ 207,086 $ 226,356
Interest income (477 ) (279 ) (938 ) (494 )
Interest expense 43,649 29,493 85,093 56,279
Equity in earnings of investee (449 ) (355 ) (627 ) (1,101 )
Income tax expense 3,180 3,440 4,978 5,920
Operating income 176,791 166,504 295,592 286,960
Stock-based compensation 4,406 7,443 12,446 9,223
Capitalized contract fulfillment costs, net (760 ) (637 ) (86 ) 309
Transaction expenses 3,676 3,676
Depreciation and amortization 75,158 67,750 148,283 136,377
Gain on disposition of assets (1,676 ) (1,374 ) (4,364 ) (1,937 )
Adjusted EBITDA $ 253,919 $ 243,362 $ 451,871 $ 434,608
Capital expenditure detail by category:
Billboards – traditional $ 15,423 $ 10,091 $ 28,961 $ 18,223
Billboards – digital 24,109 28,618 41,541 41,954
Logo 3,991 3,595 7,131 6,003
Transit 670 1,714 1,389 2,204
Land and buildings 3,517 1,146 7,691 2,635
Operating equipment 3,012 1,879 6,294 4,783
Total capital expenditures $ 50,722 $ 47,043 $ 93,007 $ 75,802

 

SUPPLEMENTAL SCHEDULES
UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES
(IN THOUSANDS)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023 2022 % Change 2023 2022 % Change
Reconciliation of Reported Basis to
Acquisition-Adjusted Results(a):
Net revenue $ 541,137 $ 517,852 4.5 % $ 1,012,469 $ 969,240 4.5 %
Acquisitions and divestitures 9,024 21,973
Acquisition-adjusted net revenue 541,137 526,876 2.7 % 1,012,469 991,213 2.1 %
Reported direct advertising and G&A expenses 260,852 251,570 3.7 % 509,492 490,159 3.9 %
Acquisitions and divestitures 5,634 13,534
Acquisition-adjusted direct advertising and
G&A expenses 260,852 257,204 1.4 % 509,492 503,693 1.2 %
Outdoor operating income 280,285 266,282 5.3 % 502,977 479,081 5.0 %
Acquisition and divestitures 3,390 8,439
Acquisition-adjusted outdoor operating income 280,285 269,672 3.9 % 502,977 487,520 3.2 %
Reported corporate expense 26,366 22,920 15.0 % 51,106 44,473 14.9 %
Acquisitions and divestitures
Acquisition-adjusted corporate expenses 26,366 22,920 15.0 % 51,106 44,473 14.9 %
Adjusted EBITDA 253,919 243,362 4.3 % 451,871 434,608 4.0 %
Acquisitions and divestitures 3,390 8,439
Acquisition-adjusted EBITDA $ 253,919 $ 246,752 2.9 % $ 451,871 $ 443,047 2.0 %

 

(a) Acquisition-adjusted net revenue, direct advertising and general and administrative expenses, outdoor operating income, corporate expenses and EBITDA include adjustments to 2022 for acquisitions and divestitures for the same time frame as actually owned in 2023.

 

SUPPLEMENTAL SCHEDULES
UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES
(IN THOUSANDS)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023 2022 % Change 2023 2022 % Change
Reconciliation of Net Income to Outdoor
Operating Income:
Net income $ 130,888 $ 134,205 (2.5) % $ 207,086 $ 226,356 (8.5) %
Interest expense, net 43,172 29,214 84,155 55,785
Equity in earnings of investee (449 ) (355 ) (627 ) (1,101 )
Income tax expense 3,180 3,440 4,978 5,920
Operating income 176,791 166,504 6.2 % 295,592 286,960 3.0 %
Corporate expenses 26,366 22,920 51,106 44,473
Stock-based compensation 4,406 7,443 12,446 9,223
Capitalized contract fulfillment costs, net (760 ) (637 ) (86 ) 309
Transaction expenses 3,676 3,676
Depreciation and amortization 75,158 67,750 148,283 136,377
Gain on disposition of assets (1,676 ) (1,374 ) (4,364 ) (1,937 )
Outdoor operating income $ 280,285 $ 266,282 5.3 % $ 502,977 $ 479,081 5.0 %

 

SUPPLEMENTAL SCHEDULES
UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES
(IN THOUSANDS)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023 2022 % Change 2023 2022 % Change
Reconciliation of Total Operating Expense to
Acquisition-Adjusted Consolidated Expense:
Total operating expense $ 364,346 $ 351,348 3.7 % $ 716,877 $ 682,280 5.1 %
Gain on disposition of assets 1,676 1,374 4,364 1,937
Depreciation and amortization (75,158 ) (67,750 ) (148,283 ) (136,377 )
Transaction expenses (3,676 ) (3,676 )
Capitalized contract fulfillment costs, net 760 637 86 (309 )
Stock-based compensation (4,406 ) (7,443 ) (12,446 ) (9,223 )
Acquisitions and divestitures 5,634 13,534
Acquisition-adjusted consolidated expense $ 287,218 $ 280,124 2.5 % $ 560,598 $ 548,166 2.3 %

 

SUPPLEMENTAL SCHEDULES
UNAUDITED REIT MEASURES
AND RECONCILIATIONS TO GAAP MEASURES
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023 2022 2023 2022
Adjusted Funds from Operations:
Net income $ 130,888 $ 134,205 $ 207,086 $ 226,356
Depreciation and amortization related to real estate 72,056 64,549 142,406 130,075
Gain from sale or disposal of real estate, net of tax (1,587 ) (1,319 ) (4,307 ) (1,773 )
Adjustments for unconsolidated affiliates and non-controlling interest (717 ) 124 (1,052 ) (771 )
Funds from operations $ 200,640 $ 197,559 $ 344,133 $ 353,887
Straight-line expense 1,383 1,228 2,340 2,143
Capitalized contract fulfillment costs, net (760 ) (637 ) (86 ) 309
Stock-based compensation expense 4,406 7,443 12,446 9,223
Non-cash portion of tax provision 807 1,554 (345 ) 1,212
Non-real estate related depreciation and amortization 3,102 3,202 5,877 6,303
Amortization of deferred financing costs 1,652 1,479 3,294 2,950
Transaction expenses 3,676 3,676
Capitalized expenditures-maintenance (17,548 ) (18,488 ) (30,240 ) (31,673 )
Adjustments for unconsolidated affiliates and non-controlling interest 717 (124 ) 1,052 771
Adjusted funds from operations $ 194,399 $ 196,892 $ 338,471 $ 348,801
Divided by weighted average diluted common shares outstanding 102,104,429 101,660,120 102,047,875 101,602,743
Diluted AFFO per share $ 1.90 $ 1.94 $ 3.32 $ 3.43

 

SUPPLEMENTAL SCHEDULES
UNAUDITED REIT MEASURES
AND RECONCILIATIONS TO GAAP MEASURES
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
Revised projected 2023 Adjusted Funds From Operations:
Year ended December 31, 2023
Low High
Net income $ 482,400 $ 490,000
Depreciation and amortization related to real estate 278,000 278,000
Gain from sale or disposal of real estate, net of tax (7,000 ) (7,000 )
Adjustments for unconsolidated affiliates and non-controlling interest (1,700 ) (1,700 )
Funds from operations $ 751,700 $ 759,300
Straight-line expense 4,200 4,200
Capitalized contract fulfillment costs, net 500 500
Stock-based compensation expense 12,000 20,000
Non-cash portion of tax provision 2,400 2,400
Non-real estate related depreciation and amortization 12,000 12,000
Amortization of deferred financing costs 6,600 6,600
Capitalized expenditures-maintenance (63,000 ) (63,000 )
Adjustments for unconsolidated affiliates and non-controlling interest 1,700 1,700
Adjusted funds from operations $ 728,100 $ 743,700
Weighted average diluted common shares outstanding 102,150,000 102,150,000
Diluted earnings per share $ 4.72 $ 4.80
Diluted AFFO per share $ 7.13 $ 7.28

The guidance provided above is based on a number of assumptions that management believes to be reasonable and reflects our expectations as of August 3, 2023. Actual results may differ materially from these estimates as a result of various factors, and we refer to the cautionary language regarding “forward-looking statements” included in the press release when considering this information.

Published on Thursday, August 3, 2023 at 11:51 PM

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