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Lamar Advertising Company Announces First Quarter Ended March 31, 2025 Operating Results

1. LAMR's net revenue rose 1.5% to $505.4 million. 2. Net income jumped 77.4% to $139.2 million, aided by asset sale gains. 3. Adjusted EBITDA decreased slightly by 0.8% to $210.2 million. 4. Free cash flow declined 12.7% to $121.1 million due to tax expenses. 5. Stock repurchase program completed $150 million in buybacks with $100 million remaining.

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Why Bullish?

The significant increase in net income and revenue growth demonstrates solid operational performance. Historical context shows that strong earnings improvements often lead to upward price movement.

How important is it?

The article highlights key financial metrics and the stock repurchase strategy, indicating solid investor confidence and potential for short-term price gains.

Why Short Term?

The immediate surge in net income and revenue announcement could influence investor sentiment quickly. Yet, current economic challenges could temper long-term effects.

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Three Month Results - Net revenues were $505.4 million- Net income was $139.2 million- Adjusted EBITDA was $210.2 million BATON ROUGE, La., May 08, 2025 (GLOBE NEWSWIRE) -- 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, 2025. "We delivered our 16th consecutive quarter of acquisition-adjusted revenue growth, aided by increases in local and programmatic," Lamar chief executive Sean Reilly said. "Based on pacings, we remain on track to reach our previously provided guidance for full-year diluted AFFO per share." First Quarter Highlights - Net revenues increased 1.5%- Net income increased 77.4%- Adjusted EBITDA decreased 0.8%- AFFO increased 3.8%  First Quarter Results Lamar reported net revenues of $505.4 million for the first quarter of 2025 versus $498.2 million for the first quarter of 2024, a 1.5% increase. Operating income for the first quarter of 2025 increased $66.6 million to $191.2 million as compared to $124.6 million for the same period in 2024. Lamar recognized net income of $139.2 million for the first quarter of 2025 as compared to net income of $78.5 million for the same period in 2024, an increase of $60.7 million. The 77.4% increase in net income for the first quarter of 2025 as compared to the same period in 2024 was primarily related to the $67.7 million gain recorded for the sale of Lamar’s equity interest in Vistar Media, Inc. (“Vistar”) during the period. Net income per diluted share was $1.35 and $0.76 for the three months ended March 31, 2025 and 2024, respectively. Adjusted EBITDA for the first quarter of 2025 was $210.2 million versus $211.9 million for the first quarter of 2024, a decrease of 0.8%. Cash flow provided by operating activities was $127.7 million for the three months ended March 31, 2025 versus $110.6 million for the first quarter of 2024, an increase of $17.2 million. Free cash flow for the first quarter of 2025 was $121.1 million as compared to $138.7 million for the same period in 2024, a 12.7% decrease. The decrease in free cash flow was primarily related to current tax expense of $21.2 million associated with the sale of Lamar’s interest in Vistar during the first quarter of 2025. For the first quarter of 2025, funds from operations, or FFO, was $156.1 million versus $148.5 million for the same period in 2024, an increase of 5.1%. Adjusted funds from operations, or AFFO, for the first quarter of 2025 was $164.3 million compared to $158.2 million for the same period in 2024, an increase of 3.8%. Diluted AFFO per share increased 3.9% to $1.60 for the three months ended March 31, 2025 as compared to $1.54 for the same period in 2024. Acquisition-Adjusted Three Months Results Acquisition-adjusted net revenue for the first quarter of 2025 increased 1.1% over acquisition-adjusted net revenue for the first quarter of 2024. Acquisition-adjusted EBITDA for the first quarter of 2025 decreased 1.0% as compared to acquisition-adjusted EBITDA for the first quarter of 2024. Acquisition-adjusted net revenue and acquisition-adjusted EBITDA include adjustments to the 2024 period for acquisitions and divestitures for the same time frame as actually owned in the 2025 period. See “Reconciliation of Reported Basis to Acquisition-Adjusted Results”, which provides reconciliations to GAAP for acquisition-adjusted measures. Liquidity As of March 31, 2025, Lamar had $491.3 million in total liquidity that consisted of $455.2 million available for borrowing under its revolving senior credit facility and $36.1 million in cash and cash equivalents. There were $286.0 million in borrowings outstanding under the Company’s revolving credit facility and $223.5 million outstanding under the Accounts Receivable Securitization Program as of the same date. Recent Developments During the first quarter of 2025, the Company repurchased 164,529 shares of its Class A common stock outstanding for a total purchase price of $18.4 million under the Company’s Stock Repurchase Program, which provides for the repurchase of up to $250.0 million of Class A common stock in the aggregate. During April 2025, the Company repurchased 1,223,562 shares of its Class A common stock outstanding at a total purchase price of $131.6 million.  These repurchases bring the total value purchased under the Stock Repurchase Program to $150.0 million at an average price of $108.06 per share. The Company has $100.0 million remaining under its current share repurchase authorization. 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, including economic changes that may result from new or increased tariffs, trade restrictions or geopolitical tensions; (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, 2024, 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 investee, stock-based compensation, depreciation and amortization, loss (gain) on disposition of assets and investments, 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 (gain) loss from the sale or disposal of real estate assets and investments, net of tax, 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 income and expense; (ii) capitalized contract fulfillment costs, net; (iii) stock-based compensation expense; (iv) non-cash portion of tax expense (benefit); (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 and investments.   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, May 8, 2025 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 1-785-424-1634Passcode:63104  Live Webcast:ir.lamar.com  Webcast Replay:ir.lamar.com Available through Thursday, May 15, 2025 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 over 363,000 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 approximately 5,100 displays. LAMAR ADVERTISING COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME(UNAUDITED)(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)  Three Months EndedMarch 31,      2025   2024 Net revenues$       505,430  $       498,150 Operating expenses (income)   Direct advertising expenses          179,622            175,829 General and administrative expenses            89,201              83,095 Corporate expenses            26,386              27,304 Stock-based compensation            10,577              14,466 Capitalized contract fulfillment costs, net                  375                  (184)Depreciation and amortization            77,821              75,228 Gain on disposition of assets and investments           (69,785)              (2,188)Total operating expense          314,197            373,550 Operating income          191,233            124,600 Other expense (income)   Interest income                (492)                 (467)Interest expense            38,332              44,487 Equity in (earnings) loss of investee                (380)                   559              37,460              44,579 Income before income tax expense          153,773              80,021 Income tax expense            14,544                 1,522 Net income          139,229              78,499 Net income attributable to non-controlling interest                  474                    275 Net income attributable to controlling interest          138,755              78,224 Preferred stock dividends                    91                      91 Net income applicable to common stock$       138,664  $         78,133 Earnings per share:   Basic earnings per share$              1.35  $              0.77 Diluted earnings per share$              1.35  $              0.76 Weighted average common shares outstanding:   Basic 102,437,911   102,115,159 Diluted 102,797,307   102,447,333 OTHER DATA   Free Cash Flow Computation:   Adjusted EBITDA$       210,221  $       211,922 Interest, net           (36,317)            (42,389)Current tax expense           (22,812)              (1,276)Preferred stock dividends                  (91)                   (91)Total capital expenditures           (29,887)            (29,482)Free cash flow$       121,114  $       138,684  SUPPLEMENTAL SCHEDULESSELECTED BALANCE SHEET AND CASH FLOW DATA(IN THOUSANDS)  March 31,2025 December 31,2024 (Unaudited)  Selected Balance Sheet Data:   Cash and cash equivalents$         36,117  $         49,461 Working capital deficit$     (311,976) $     (353,206)Total assets$    6,547,175  $    6,586,549 Total debt, net of deferred financing costs (including current maturities)$    3,187,785  $    3,210,864 Total stockholders’ equity$    1,031,570  $    1,048,020   Three Months EndedMarch 31,  2025  2024  (Unaudited)Selected Cash Flow Data:   Cash flows provided by operating activities$       127,745 $       110,562 Cash flows provided by (used in) investing activities$         65,426 $       (45,016)Cash flows used in financing activities$       206,522 $         73,626  SUPPLEMENTAL SCHEDULESUNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES(IN THOUSANDS)  Three Months EndedMarch 31,  2025   2024 Reconciliation of Cash Flows Provided By Operating Activities to Free Cash Flow:   Cash flows provided by operating activities$       127,745  $       110,562 Changes in operating assets and liabilities            24,167              58,191 Total capital expenditures           (29,887)            (29,482)Preferred stock dividends                  (91)                   (91)Capitalized contract fulfillment costs, net                  375                  (184)Other             (1,195)                 (312)Free cash flow$       121,114  $       138,684     Reconciliation of Net Income to Adjusted EBITDA:   Net income$       139,229  $         78,499 Interest income                (492)                 (467)Interest expense            38,332              44,487 Equity in (earnings) loss of investee                (380)                   559 Income tax expense            14,544                 1,522 Operating income          191,233            124,600 Stock-based compensation            10,577              14,466 Capitalized contract fulfillment costs, net                  375                  (184)Depreciation and amortization            77,821              75,228 Gain on disposition of assets and investments           (69,785)              (2,188)Adjusted EBITDA$       210,221  $       211,922     Capital expenditure detail by category:   Billboards - traditional$           6,046  $           7,148 Billboards - digital            16,076              13,413 Logo               2,606                 1,336 Transit                  588                    351 Land and buildings                  310                 2,316 Operating equipment               4,261                 4,918 Total capital expenditures$         29,887  $         29,482  SUPPLEMENTAL SCHEDULESUNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES(IN THOUSANDS)  Three Months EndedMarch 31,  2025  2024 % ChangeReconciliation of Reported Basis to Acquisition-Adjusted Results(a):     Net revenue$     505,430 $     498,150 1.5%Acquisitions and divestitures                  —             1,890  Acquisition-adjusted net revenue        505,430         500,040 1.1%Reported direct advertising and G&A expenses        268,823         258,924 3.8%Acquisitions and divestitures                  —             1,572  Acquisition-adjusted direct advertising and G&A expenses        268,823         260,496 3.2%Outdoor operating income        236,607         239,226 (1.1) %Acquisition and divestitures                  —                 318  Acquisition-adjusted outdoor operating income        236,607         239,544 (1.2) %Reported corporate expense          26,386           27,304 (3.4) %Acquisitions and divestitures                  —                   —  Acquisition-adjusted corporate expenses          26,386           27,304 (3.4) %Adjusted EBITDA        210,221         211,922 (0.8) %Acquisitions and divestitures                  —                 318  Acquisition-adjusted EBITDA$     210,221 $     212,240 (1.0) % (a)Acquisition-adjusted net revenue, direct advertising and general and administrative expenses, outdoor operating income, corporate expenses and EBITDA include adjustments to 2024 for acquisitions and divestitures for the same time frame as actually owned in 2025.           Three Months EndedMarch 31,  2025   2024  % ChangeReconciliation of Net Income to Outdoor Operating Income:     Net income$     139,229  $       78,499  77.4%Interest expense, net          37,840            44,020   Equity in (earnings) loss of investee              (380)                 559   Income tax expense          14,544              1,522   Operating income        191,233          124,600  53.5%Corporate expenses          26,386            27,304   Stock-based compensation          10,577            14,466   Capitalized contract fulfillment costs, net                375                (184)  Depreciation and amortization          77,821            75,228   Gain on disposition of assets and investments        (69,785)           (2,188)  Outdoor operating income$     236,607  $     239,226  (1.1) % SUPPLEMENTAL SCHEDULESUNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES(IN THOUSANDS)  Three Months EndedMarch 31,  2025   2024  % ChangeReconciliation of Total Operating Expenses to Acquisition-Adjusted Consolidated Expense:     Total operating expenses$     314,197  $     373,550  (15.9)%Gain on disposition of assets and investments          69,785              2,188   Depreciation and amortization        (77,821)         (75,228)  Capitalized contract fulfillment costs, net              (375)                 184   Stock-based compensation        (10,577)         (14,466)  Acquisitions and divestitures                  —              1,572   Acquisition-adjusted consolidated expense$     295,209  $     287,800  2.6% SUPPLEMENTAL SCHEDULESUNAUDITED REIT MEASURESAND RECONCILIATIONS TO GAAP MEASURES(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)  Three Months EndedMarch 31,  2025   2024 Adjusted Funds from Operations:   Net income$       139,229  $         78,499 Depreciation and amortization related to real estate            73,636              71,729 Gain from sale or disposal of real estate and investments, net of tax           (56,597)              (2,094)Adjustments for unconsolidated affiliates and non-controlling interest                (126)                   372 Funds from operations$       156,142  $       148,506 Straight-line expense               1,009                 1,273 Capitalized contract fulfillment costs, net                  375                  (184)Stock-based compensation expense            10,577              14,466 Non-cash portion of tax provision                (244)                   246 Non-real estate related depreciation and amortization               4,185                 3,498 Amortization of deferred financing costs               1,523                 1,631 Capitalized expenditures-maintenance             (9,385)            (10,827)Adjustments for unconsolidated affiliates and non-controlling interest                  126                  (372)Adjusted funds from operations$       164,308  $       158,237 Divided by weighted average diluted common shares outstanding 102,797,307   102,447,333 Diluted AFFO per share$              1.60  $              1.54 

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