Lamar Media (LAMR)

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.