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Lamar Media (LAMR)

Lamar Advertising Company is one of the largest outdoor advertising companies in the United States based on number of displays and has operated under the Lamar name since 1902. We operate in a single operating and reporting segment, advertising. We lease space for advertising on billboards, buses, shelters, benches, logo plates and in airport terminals. We offer our customers a fully integrated service, satisfying all aspects of their billboard display requirements from ad copy production to placement and maintenance. We operate three types of outdoor advertising displays: billboards, logo signs and transit advertising displays.

Company profile

Ticker
LAMR
Exchange
Website
Employees
Incorporated
Location
Fiscal year end
Former names
LAMAR ADVERTISING CO, LAMAR ADVERTISING CO /DE/, LAMAR MEDIA CORP
SEC CIK
Subsidiaries
Arizona Logos, L.L.C. • Canadian TODS Limited • Colorado Logos, Inc. • Delaware Logos, L.L.C. • Fairway CCO Indiana, LLC • Fairway Media Group, LLC • Fairway Outdoor Advertising, LLC • Fairway Outdoor Funding, LLC • Fairway Outdoor Funding Holdings, LLC • Florida Logos, LLC ...

Analyst ratings and price targets

Last 3 months

Calendar

5 May 22
26 Jun 22
31 Dec 22
Quarter (USD) Jun 20 Mar 20 Sep 19 Jun 19
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Annual (USD) Dec 19 Dec 18 Dec 17 Dec 16
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Financial report summary

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Risks
  • The Company’s substantial debt may adversely affect its business, financial condition and financial results.
  • The Company may be unable to generate sufficient cash flow to satisfy its significant debt service obligations.
  • Restrictions in the Company’s and Lamar Media’s debt agreements reduce operating flexibility and contain covenants and restrictions that create the potential for defaults, which could adversely affect the Company’s business, financial condition and financial results.
  • The Company is controlled by significant stockholders who have the power to determine the outcome of all matters submitted to the stockholders for approval and whose interest in the Company may be different than yours.
  • The Company’s growth through acquisitions may be difficult, which could adversely affect our future financial performance. In addition, if we are unable to successfully integrate any completed acquisitions, our financial performance would also be adversely affected.
  • The Company could suffer losses due to asset impairment charges for goodwill and other intangible assets.
  • The Company’s logo sign contracts are subject to state award and renewal.
  • If the Company’s contingency plans relating to hurricanes and other natural disasters fail, the resulting losses could hurt the Company’s business.
  • Our cash distributions are not guaranteed and may fluctuate.
  • The Lamar Advertising charter, the Lamar Advertising bylaws and Delaware law may inhibit a takeover that stockholders consider favorable and could also limit the market price of Lamar Advertising stock.
  • The Company’s revenues are sensitive to the state of the economy and the financial markets generally and other external events beyond the Company’s control.
  • The Company faces competition from larger and more diversified outdoor advertisers and other forms of advertising that could hurt its performance.
  • Federal, state and local regulation impact the Company’s operations, financial condition and financial results.
  • Pandemics or disease outbreaks, such as COVID-19, have affected and may materially affect our business, results of operations and financial condition in the future.
  • If Lamar Advertising fails to remain qualified as a REIT, both Lamar Advertising and Lamar Media would be taxed as regular C corporations and would not be able to deduct distributions to the stockholders of Lamar Advertising when computing their taxable income.
  • Even if it qualifies as a REIT, certain of Lamar Advertising’s and its subsidiaries’ business activities will be subject to U.S. and foreign taxes which will continue to reduce its cash flows, and it will have potential deferred and contingent tax liabilities.
  • Covenants specified in our existing and future debt instruments may limit Lamar Advertising’s ability to make required REIT distributions.
  • Lamar Advertising and its subsidiaries may be required to borrow funds, sell assets, or raise equity to satisfy its REIT distribution requirements or maintain the asset tests.
  • Complying with REIT requirements may cause Lamar Advertising, its subsidiaries (other than TRSs) to forego otherwise attractive opportunities.
  • Ownership limitations contained in the Lamar Advertising charter may restrict stockholders from acquiring or transferring certain amounts of shares.
  • The Tax Cuts and Jobs Act and the CARES Act, as well as any future tax legislation, may impact the Company’s business and security holders.
  • Lamar Advertising may potentially be unable to deduct the full amount of its interest expense pursuant to the TCJA and the CARES Act.
  • Legislative changes or other actions affecting REITs could have a negative effect on Lamar Advertising and its subsidiaries.
  • The ability of the Board of Directors of Lamar Advertising to revoke its REIT election, without stockholder approval, may cause adverse consequences to its stockholders.
Management Discussion
  • Net revenues increased $80.5 million or 21.7% to $451.4 million for the three months ended March 31, 2022 from $370.9 million for the same period in 2021. This increase was primarily attributable to an increase in billboard net revenues of $67.7 million, an increase in transit net revenues of $12.5 million, and an increase in logo net revenues of $0.3 million over the same period in 2021.
  • For the three months ended March 31, 2022, there was a $70.7 million increase in net revenues as compared to acquisition-adjusted net revenue for the three months ended March 31, 2021, which represents an increase of 18.6%. See “Reconciliations” below. The $70.7 million increase in revenue is primarily due to an increase of $59.1 million in billboard net revenues as well as an increase in transit net revenues of $11.4 million over the same period in 2021.
  • Total operating expenses, exclusive of depreciation and amortization and gain on disposition of assets, increased $41.2 million, or 18.6%, to $262.9 million for the three months ended March 31, 2022 from $221.6 million for the same period in 2021. The $41.2 million increase over the prior year is comprised of a $43.1 million increase in total direct, general and administrative and corporate expenses (excluding stock-based compensation) primarily related to the operations of our outdoor advertising assets, offset by a $1.9 million decrease in stock-based compensation.

Content analysis

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