Three Month Results:
- Net revenue was $498.2 million;
- Net income was $78.5 million;
- Adjusted EBITDA was $211.9 million;
BATON ROUGE, La., May 02, 2024 — Lamar Advertising Company (the “Company” or “Lamar”) (Nasdaq: LAMR), a leading owner and operator of outdoor advertising and logo sign displays, has reported Company’s operating results for the first quarter ended March 31, 2024.
“Our first-quarter results exceeded our internal expectations, with particular strength in local sales. In addition, we returned to same-store growth in digital, and the rest of 2024 is shaping up well,” Lamar chief executive Sean Reilly said. “As a result, we are raising our guidance for full-year diluted AFFO to a range of $7.75 to $7.90 per share.”
First Quarter Highlights
- Net revenue increased 5.7%
- Adjusted EBITDA increased 7.1%
- Diluted AFFO per share increased 9.2%
First Quarter Results
Lamar reported net revenues of $498.2 million for the first quarter of 2024 versus $471.3 million for the first quarter of 2023, a 5.7% increase. Operating income for the first quarter of 2024 increased $5.8 million to $124.6 million as compared to $118.8 million for the same period in 2023. Lamar recognized net income of $78.5 million for the first quarter of 2024 as compared to net income of $76.2 million for the same period in 2023, an increase of $2.3 million. Net income per diluted share was $0.76 and $0.74 for the three months ended March 31, 2024 and 2023, respectively.
Adjusted EBITDA for the first quarter of 2024 was $211.9 million versus $198.0 million for the first quarter of 2023, an increase of 7.1%.
Cash flow provided by operating activities was $110.6 million for the three months ended March 31, 2024 versus $108.7 million for the first quarter of 2023, an increase of $1.9 million. Free cash flow for the first quarter of 2024 was $138.7 million as compared to $113.3 million for the same period in 2023, a 22.4% increase.
For the first quarter of 2024, funds from operations, or FFO, was $148.5 million versus $143.5 million for the same period in 2023, an increase of 3.5%. Adjusted funds from operations, or AFFO, for the first quarter of 2024 was $158.2 million compared to $144.1 million for the same period in 2023, an increase of 9.8%. Diluted AFFO per share increased 9.2% to $1.54 for the three months ended March 31, 2024 as compared to $1.41 for the same period in 2023.
Acquisition-Adjusted Three Months Results
Acquisition-adjusted net revenue for the first quarter of 2024 increased 5.3% over acquisition-adjusted net revenue for the first quarter of 2023. Acquisition-adjusted EBITDA for the first quarter of 2024 increased 6.5% as compared to acquisition-adjusted EBITDA for the first 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.
Liquidity
As of March 31, 2024, Lamar had $634.8 million in total liquidity that consisted of $598.4 million available for borrowing under its revolving senior credit facility and $36.4 million in cash and cash equivalents. There were $143.0 million in borrowings outstanding under the Company’s revolving credit facility and $235.7 million outstanding under the Accounts Receivable Securitization Program as of the same date.
Revised Guidance
We are updating our 2024 guidance issued in February 2024. We now expect net income per diluted share for fiscal year 2024 to be between $4.95 and $5.01, with diluted AFFO per share between $7.75 and $7.90. 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.