Lamar Advertising reports net revenue of $471.3 million in Q1, 2023, an increase of 4.4%

Three Month Results: 

• Net revenue was $471.3 million
• Net income was $76.2 million
• Adjusted EBITDA was $198.0 million

BATON ROUGE, La., May 04, 2023 — 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 first quarter ended March 31, 2023.

“The first quarter unfolded largely as expected, with steady local sales offsetting weakness on the national front,” Lamar chief executive Sean Reilly said. “Looking ahead, while April saw some slight softening in business activity, we remain confident in the midpoint of our guidance because of the hard work our team has done managing expenses.”

First Quarter Highlights

• Net revenue increased 4.4%
• Adjusted EBITDA increased 3.5%
• Diluted AFFO per share decreased 6.0%

First Quarter Results

Lamar reported net revenues of $471.3 million for the first quarter of 2023 versus $451.4 million for the first quarter of 2022, a 4.4% increase. Operating income for the first quarter of 2023 decreased $1.7 million to $118.8 million as compared to $120.5 million for the same period in 2022. Lamar recognized net income of $76.2 million for the first quarter of 2023 as compared to net income of $92.2 million for same period in 2022, a decrease of $16.0 million, primarily related to an increase in interest expense of $14.7 million over the same period in 2022. Net income per diluted share was $0.74 and $0.91 for the three months ended March 31, 2023 and 2022, respectively.

Adjusted EBITDA for the first quarter of 2023 was $198.0 million versus $191.2 million for the first quarter of 2022, an increase of 3.5%.

Cash flow provided by operating activities was $108.7 million for the three months ended March 31, 2023 versus $102.0 million for the first quarter of 2022, an increase of $6.7 million. Free cash flow for the first quarter of 2023 was $113.3 million as compared to $134.5 million for the same period in 2022, a 15.8% decrease.

For the first quarter of 2023, funds from operations, or FFO, was $143.5 million versus $156.3 million for the same period in 2022, a decrease of 8.2%. Adjusted funds from operations, or AFFO, for the first quarter of 2023 was $144.1 million compared to $151.9 million for the same period in 2022, a decrease of 5.2%. Diluted AFFO per share decreased 6.0% to $1.41 for the three months ended March 31, 2023 as compared to $1.50 for the same period in 2022.

Acquisition-Adjusted Three Months Results

Acquisition-adjusted net revenue for the first quarter of 2023 increased 1.5% over acquisition-adjusted net revenue for the first quarter of 2022. Acquisition-adjusted EBITDA for the first quarter of 2023 increased 0.8% as compared to acquisition-adjusted EBITDA for the first 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.

Liquidity

As of March 31, 2023, Lamar had $663.0 million in total liquidity that consisted of $625.9 million available for borrowing under its revolving senior credit facility, $3.6 million under its Accounts Receivable Securitization Program and $33.5 million in cash and cash equivalents. There were $115.0 million in borrowings outstanding under the Company’s revolving credit facility and $234.8 million outstanding under the Accounts Receivable Securitization Program as of the same date.

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.