Lamar Advertising Company (Nasdaq: LAMR) (“Lamar” or the
“Company”), a leading owner and operator of outdoor advertising and
logo sign displays, announces the Company’s operating results for
the fourth quarter and year ended December 31, 2020.
“We concluded 2020 with a strong fourth quarter,
aided by a recovery in national advertising and a surge in
political spending, as well as further good work on the expense
side," Chief Executive Sean Reilly said. "We have begun to invest
again in our platform, and, with the strongest balance sheet in the
industry, we are positioned well to benefit as the advertising
market recovers further in 2021.”
Fourth Quarter Highlights
- Total operating expenses decreased 10.6%
- Adjusted EBITDA margin of 48.5%
- Free cash flow increased 18.3%
- Diluted AFFO per share increased 4.3%
Fourth Quarter Results
Lamar reported net revenues of $428.5 million
for the fourth quarter of 2020 versus $462.7 million for the fourth
quarter of 2019, a 7.4% decrease. Operating income for the fourth
quarter of 2020 decreased $0.2 million to $141.2 million as
compared to $141.4 million for the same period in 2019. Lamar
recognized net income of $108.7 million for the fourth quarter of
2020 as compared to net income of $102.8 million for the same
period in 2019, an increase of $6.0 million. Net income per diluted
share was $1.08 and $1.02 for the three months ended December 31,
2020 and 2019, respectively.
Adjusted EBITDA for the fourth quarter of 2020
was $207.9 million versus $215.6 million for the fourth quarter of
2019, a decrease of 3.6%.
Cash flow provided by operating activities was
$208.4 million for the three months ended December 31, 2020, a
decrease of $14.5 million as compared to the same period in 2019.
Free cash flow for the fourth quarter of 2020 was $160.1 million as
compared to $135.3 million for the same period in 2019, an 18.3%
increase.
For the fourth quarter of 2020, funds from
operations, or FFO, was $167.6 million versus $161.1 million for
the same period in 2019, an increase of 4.0%. Adjusted funds from
operations, or AFFO, for the fourth quarter of 2020 was $172.1
million compared to $165.4 million for the same period in 2019, an
increase of 4.0%. Diluted AFFO per share increased 4.3% to $1.71
for the three months ended December 31, 2020 as compared to $1.64
for the same period in 2019.
Acquisition-Adjusted Three Months
Results
Acquisition-adjusted net revenue for the fourth
quarter of 2020 decreased 6.8% as compared to acquisition-adjusted
net revenue for the fourth quarter of 2019. Acquisition-adjusted
EBITDA for the fourth quarter of 2020 decreased 2.8% as compared to
acquisition-adjusted EBITDA for the fourth quarter of 2019.
Acquisition-adjusted net revenue and acquisition-adjusted EBITDA
include adjustments to the 2019 period for acquisitions and
divestitures for the same time frame as actually owned in the 2020
period. See “Reconciliation of Reported Basis to
Acquisition-Adjusted Results”, which provides reconciliations to
GAAP for acquisition-adjusted measures.
Twelve Months Results
Lamar reported net revenues of $1.57 billion for
the twelve months ended December 31, 2020 versus $1.75 billion for
the same period in 2019, a 10.5% decrease. Operating income for the
twelve months ended December 31, 2020 was $410.1 million as
compared to $517.7 million for the same period in 2019. Lamar
recognized net income of $243.4 million for the twelve months ended
December 31, 2020 as compared to net income of $372.1 million for
the same period in 2019. Net income per diluted share decreased to
$2.41 for the twelve months ended December 31, 2020 as compared to
$3.71 for the same period in 2019. In addition, adjusted EBITDA for
the twelve months ended December 31, 2020 was $671.5 million versus
$784.9 million for the same period in 2019, a 14.4% decrease.
Cash flow provided by operating activities
decreased to $569.9 million for the twelve months ended December
31, 2020, as compared to $630.9 million in the same period in 2019.
Free cash flow for the twelve months ended December 31, 2020
decreased 3.4% to $472.5 million as compared to $489.2 million for
the same period in 2019.
For the twelve months ended December 31, 2020,
FFO was $477.2 million versus $584.9 million for the same period in
2019, an 18.4% decrease. AFFO for the twelve months ended December
31, 2020 was $514.8 million compared to $581.4 million for the same
period in 2019, an 11.5% decrease. Diluted AFFO per share decreased
to $5.10 for the twelve months ended December 31, 2020, as compared
to $5.80 in the same period in 2019, a decrease of 12.1%.
Liquidity
As of December 31, 2020, Lamar had $910.1
million in total liquidity that consisted of $736.0 million
available for borrowing under its revolving senior credit facility,
$52.5 million available under the Accounts Receivable
Securitization Program and approximately $121.6 million in cash and
cash equivalents. There were no borrowings outstanding under the
Company’s revolving credit facility and $122.5 million in
borrowings outstanding under our Accounts Receivable Securitization
Program as of December 31, 2020.
Recent Developments and COVID-19
Update
On January 22, 2021 Lamar Media Corp., the
Company’s wholly owned subsidiary, issued $550.0 million in
aggregate principal 3 5/8% Senior Notes due 2031 (the “3 5/8%
Senior Notes”). The 3 5/8% Senior Notes resulted in proceeds of
approximately $542.5 million which were used, together with cash on
hand and borrowings under the revolving credit facility and
Accounts Receivable Securitization Program to redeem in full all of
our $650.0 million in aggregate principal outstanding 5 3/4% Senior
Notes due 2026 on February 3, 2021.
On February 25, 2021 our Board of Directors
approved a quarterly dividend of $0.75 per common share to be paid
on March 31, 2021. Subject to approval by the Board of Directors we
expect our aggregate distributions to stockholders for 2021,
including the dividend payable on March 31, 2021, will total $3.00
per common share.
Lamar continues to actively monitor the effects
of the COVID-19 pandemic on our business, employees and the
business of our advertisers. In response to the virus’s effect on
the overall economy and decreased demand for outdoor advertising,
we have taken measures to reduce our operating costs and increase
our liquidity.
As we continue to actively monitor the
situation, we may take further actions to alter our business
operations as may be required by federal, state or local
authorities, or that we determine are in the best interest of our
employees, customers, partners and shareholders.
Guidance
We expect net income per diluted share for
fiscal year 2021 to be between $2.76 and $3.02, with diluted AFFO
per share between $5.20 and $5.50. See “Supplemental Schedules and
Unaudited Reconciliations of Non-GAAP Measures” for a
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 severity
and duration of the novel coronavirus (COVID-19) pandemic and its
impact on our business, financial condition and results of
operations; (3) the state of the economy and financial markets
generally, including the impact caused by the novel coronavirus
(COVID-19) pandemic and the effect of the broader economy on the
demand for advertising; (4) the continued popularity of outdoor
advertising as an advertising medium; (5) our need for and ability
to obtain additional funding for operations, debt refinancing or
acquisitions; (6) our ability to continue to qualify as a Real
Estate Investment Trust (“REIT”) and maintain our status as a REIT;
(7) the regulation of the outdoor advertising industry by federal,
state and local governments; (8) 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; (9)
changes in accounting principles, policies or guidelines; (10)
changes in tax laws applicable to REITs or in the interpretation of
those laws; (11) our ability to renew expiring contracts at
favorable rates; (12) our ability to successfully implement our
digital deployment strategy; and (13) 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, 2019, as supplemented by any risk factors
contained in our Quarterly Reports on Form 10-Q and our Current
Reports on Form 8-K and as updated in our Annual Form 10-K for the
year ended December 31, 2020 when filed. 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,
stock-based compensation, depreciation and amortization, gain or
loss on disposition of assets and investments, capitalized contract
fulfillment costs, net and the impact of adopting FASB Accounting
Standard Update No. 2016-02 Codified as ASC 842, Leases.
- 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 gains or losses from the sale or disposal of
real estate assets and investments 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) impact of ASC 842
adoption; (iii) capitalized contract fulfillment costs, net
(iv) stock-based compensation expense; (v) non-cash portion of
tax provision; (vi) non-real estate related depreciation and
amortization; (vii) amortization of deferred financing costs;
(viii) loss on extinguishment of debt; (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, depreciation and amortization and loss (gain) on
disposition of assets.
- 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,
capitalized contract fulfillment costs, net and loss (gain) on
disposition of assets and investments. The prior period is also
adjusted for the impact of adopting FASB Accounting Standard Update
No. 2016-02 Codified as ASC 842, Leases and 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, 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, 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, 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 Friday, February 26, 2021 at 8:00
a.m. central time. Instructions for the conference call and Webcast
are provided below:
Conference Call
All Callers: |
1-334-777-6991 or 1-800-338-4880 |
Passcode: |
65248056 |
|
|
Replay: |
1-334-323-0140 or
1-877-919-4059 |
Passcode: |
31632466 |
|
Available through Friday, March
5, 2021 at 11:59 p.m. Eastern time |
|
|
Live
Webcast: |
www.lamar.com |
|
|
Webcast
Replay: |
www.lamar.com |
|
Available through Friday, March
5, 2021 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 354,500 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 over 3,600 displays.
LAMAR ADVERTISING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)(IN
THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
|
|
Three months endedDecember 31, |
|
|
Twelve months endedDecember 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net revenues |
|
$ |
428,525 |
|
|
$ |
462,659 |
|
|
$ |
1,568,856 |
|
|
$ |
1,753,644 |
|
Operating expenses (income) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct advertising expenses |
|
|
138,448 |
|
|
|
152,741 |
|
|
|
557,274 |
|
|
|
595,525 |
|
General and administrative expenses |
|
|
66,494 |
|
|
|
77,079 |
|
|
|
275,145 |
|
|
|
307,648 |
|
Corporate expenses |
|
|
15,730 |
|
|
|
17,200 |
|
|
|
64,901 |
|
|
|
65,588 |
|
Stock-based compensation |
|
|
7,726 |
|
|
|
11,569 |
|
|
|
18,772 |
|
|
|
29,647 |
|
Impact of ASC 842 adoption (lease accounting standard) |
|
|
— |
|
|
|
865 |
|
|
|
— |
|
|
|
3,894 |
|
Capitalized contract fulfillment costs, net |
|
|
(649 |
) |
|
|
798 |
|
|
|
387 |
|
|
|
(9,186 |
) |
Depreciation and amortization |
|
|
63,748 |
|
|
|
62,878 |
|
|
|
251,296 |
|
|
|
250,028 |
|
Gain on disposition of assets |
|
|
(4,203 |
) |
|
|
(1,881 |
) |
|
|
(9,026 |
) |
|
|
(7,241 |
) |
Total operating expense |
|
|
287,294 |
|
|
|
321,249 |
|
|
|
1,158,749 |
|
|
|
1,235,903 |
|
Operating income |
|
|
141,231 |
|
|
|
141,410 |
|
|
|
410,107 |
|
|
|
517,741 |
|
Other expense (income) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
25,235 |
|
|
|
— |
|
Interest income |
|
|
(180 |
) |
|
|
(211 |
) |
|
|
(797 |
) |
|
|
(764 |
) |
Interest expense |
|
|
30,565 |
|
|
|
36,376 |
|
|
|
137,623 |
|
|
|
150,616 |
|
|
|
|
30,385 |
|
|
|
36,165 |
|
|
|
162,061 |
|
|
|
149,852 |
|
Income before income tax expense
(benefit) |
|
|
110,846 |
|
|
|
105,245 |
|
|
|
248,046 |
|
|
|
367,889 |
|
Income tax expense (benefit) |
|
|
2,140 |
|
|
|
2,492 |
|
|
|
4,660 |
|
|
|
(4,222 |
) |
Net income |
|
|
108,706 |
|
|
|
102,753 |
|
|
|
243,386 |
|
|
|
372,111 |
|
Preferred stock dividends |
|
|
92 |
|
|
|
92 |
|
|
|
365 |
|
|
|
365 |
|
Net income applicable to common
stock |
|
$ |
108,614 |
|
|
$ |
102,661 |
|
|
$ |
243,021 |
|
|
$ |
371,746 |
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
1.08 |
|
|
$ |
1.02 |
|
|
$ |
2.41 |
|
|
$ |
3.71 |
|
Diluted earnings per share |
|
$ |
1.08 |
|
|
$ |
1.02 |
|
|
$ |
2.41 |
|
|
$ |
3.71 |
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- basic |
|
|
100,856,139 |
|
|
|
100,459,969 |
|
|
|
100,756,361 |
|
|
|
100,130,721 |
|
- diluted |
|
|
100,884,464 |
|
|
|
100,672,782 |
|
|
|
100,902,700 |
|
|
|
100,320,574 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow Computation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
207,853 |
|
|
$ |
215,639 |
|
|
$ |
671,536 |
|
|
$ |
784,883 |
|
Interest, net |
|
|
(28,943 |
) |
|
|
(34,812 |
) |
|
|
(130,917 |
) |
|
|
(144,487 |
) |
Current tax expense |
|
|
(1,067 |
) |
|
|
(2,163 |
) |
|
|
(5,457 |
) |
|
|
(9,908 |
) |
Preferred stock dividends |
|
|
(92 |
) |
|
|
(92 |
) |
|
|
(365 |
) |
|
|
(365 |
) |
Total capital expenditures |
|
|
(17,639 |
) |
|
|
(43,276 |
) |
|
|
(62,272 |
) |
|
|
(140,956 |
) |
Free cash flow |
|
$ |
160,112 |
|
|
$ |
135,296 |
|
|
$ |
472,525 |
|
|
$ |
489,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
December 31, |
|
Selected Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
2020 |
|
|
2019 |
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
$ |
121,569 |
|
|
$ |
26,188 |
|
Working capital deficit |
|
|
|
|
|
|
|
|
|
$ |
(167,302 |
) |
|
$ |
(362,639 |
) |
Total assets |
|
|
|
|
|
|
|
|
|
$ |
5,791,441 |
|
|
$ |
5,941,155 |
|
Total debt, net of deferred
financing costs (including current maturities) |
|
|
|
|
|
|
|
|
|
$ |
2,886,516 |
|
|
$ |
2,980,118 |
|
Total stockholders’ equity |
|
|
|
|
|
|
|
|
|
$ |
1,202,768 |
|
|
$ |
1,180,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months endedDecember 31, |
|
|
Twelve months endedDecember 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Selected Cash Flow Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows provided by operating
activities |
|
$ |
208,416 |
|
|
$ |
222,895 |
|
|
$ |
569,873 |
|
|
$ |
630,865 |
|
Cash flows used in investing
activities |
|
$ |
29,207 |
|
|
$ |
52,215 |
|
|
$ |
96,888 |
|
|
$ |
362,034 |
|
Cash flows used in financing
activities |
|
$ |
126,653 |
|
|
$ |
167,855 |
|
|
$ |
377,917 |
|
|
$ |
264,357 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL SCHEDULESUNAUDITED RECONCILIATIONS
OF NON-GAAP MEASURES (IN THOUSANDS)
|
|
Three months endedDecember 31, |
|
|
Twelve months endedDecember 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Reconciliation of Cash Flows Provided by Operating Activities to
Free Cash Flow: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows provided by operating
activities |
|
$ |
208,416 |
|
|
$ |
222,895 |
|
|
$ |
569,873 |
|
|
$ |
630,865 |
|
Changes in operating assets and
liabilities |
|
|
(26,637 |
) |
|
|
(42,893 |
) |
|
|
(22,369 |
) |
|
|
15,523 |
|
Total capital expenditures |
|
|
(17,639 |
) |
|
|
(43,276 |
) |
|
|
(62,272 |
) |
|
|
(140,956 |
) |
Preferred stock dividends |
|
|
(92 |
) |
|
|
(92 |
) |
|
|
(365 |
) |
|
|
(365 |
) |
Impact of ASC 842 adoption (lease
accounting standard) |
|
|
— |
|
|
|
865 |
|
|
|
— |
|
|
|
3,894 |
|
Capitalized contract fulfillment
costs, net |
|
|
(649 |
) |
|
|
798 |
|
|
|
387 |
|
|
|
(9,186 |
) |
Other |
|
|
(3,287 |
) |
|
|
(3,001 |
) |
|
|
(12,729 |
) |
|
|
(10,608 |
) |
Free cash flow |
|
$ |
160,112 |
|
|
$ |
135,296 |
|
|
$ |
472,525 |
|
|
$ |
489,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
108,706 |
|
|
$ |
102,753 |
|
|
$ |
243,386 |
|
|
$ |
372,111 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
25,235 |
|
|
|
— |
|
Interest income |
|
|
(180 |
) |
|
|
(211 |
) |
|
|
(797 |
) |
|
|
(764 |
) |
Interest expense |
|
|
30,565 |
|
|
|
36,376 |
|
|
|
137,623 |
|
|
|
150,616 |
|
Income tax expense (benefit) |
|
|
2,140 |
|
|
|
2,492 |
|
|
|
4,660 |
|
|
|
(4,222 |
) |
Operating income |
|
|
141,231 |
|
|
|
141,410 |
|
|
|
410,107 |
|
|
|
517,741 |
|
Stock-based compensation |
|
|
7,726 |
|
|
|
11,569 |
|
|
|
18,772 |
|
|
|
29,647 |
|
Impact of ASC 842 adoption (lease accounting standard) |
|
|
— |
|
|
|
865 |
|
|
|
— |
|
|
|
3,894 |
|
Capitalized contract fulfillment costs, net |
|
|
(649 |
) |
|
|
798 |
|
|
|
387 |
|
|
|
(9,186 |
) |
Depreciation and amortization |
|
|
63,748 |
|
|
|
62,878 |
|
|
|
251,296 |
|
|
|
250,028 |
|
Gain on disposition of assets |
|
|
(4,203 |
) |
|
|
(1,881 |
) |
|
|
(9,026 |
) |
|
|
(7,241 |
) |
Adjusted EBITDA |
|
$ |
207,853 |
|
|
$ |
215,639 |
|
|
$ |
671,536 |
|
|
$ |
784,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure detail by
category: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Billboards - traditional |
|
$ |
2,430 |
|
|
$ |
13,607 |
|
|
$ |
11,131 |
|
|
$ |
48,194 |
|
Billboards - digital |
|
|
3,196 |
|
|
|
17,021 |
|
|
|
22,618 |
|
|
|
57,519 |
|
Logo |
|
|
7,710 |
|
|
|
3,609 |
|
|
|
13,108 |
|
|
|
10,762 |
|
Transit |
|
|
540 |
|
|
|
15 |
|
|
|
3,212 |
|
|
|
2,308 |
|
Land and buildings |
|
|
2,835 |
|
|
|
6,939 |
|
|
|
6,303 |
|
|
|
13,453 |
|
Operating equipment |
|
|
928 |
|
|
|
2,085 |
|
|
|
5,900 |
|
|
|
8,720 |
|
Total capital expenditures |
|
$ |
17,639 |
|
|
$ |
43,276 |
|
|
$ |
62,272 |
|
|
$ |
140,956 |
|
|
|
SUPPLEMENTAL SCHEDULESUNAUDITED RECONCILIATIONS
OF NON-GAAP MEASURES (IN THOUSANDS)
|
|
Three months endedDecember 31, |
|
|
Twelve months endedDecember 31, |
|
|
|
2020 |
|
2019 |
|
|
% Change |
|
|
2020 |
|
2019 |
|
|
% Change |
|
Reconciliation of Reported Basis to Acquisition-Adjusted Results
(a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
428,525 |
|
$ |
462,659 |
|
|
(7.4 |
)% |
|
$ |
1,568,856 |
|
$ |
1,753,644 |
|
|
(10.5 |
)% |
Acquisitions and
divestitures |
|
|
— |
|
|
(3,077 |
) |
|
|
|
|
|
— |
|
|
6,438 |
|
|
|
|
Acquisition-adjusted net
revenue |
|
$ |
428,525 |
|
$ |
459,582 |
|
|
(6.8 |
)% |
|
$ |
1,568,856 |
|
$ |
1,760,082 |
|
|
(10.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported direct advertising and
G&A expenses (b) |
|
$ |
204,942 |
|
$ |
229,820 |
|
|
(10.8 |
)% |
|
$ |
832,419 |
|
$ |
903,173 |
|
|
(7.8 |
)% |
Acquisitions and
divestitures |
|
|
— |
|
|
(1,330 |
) |
|
|
|
|
|
— |
|
|
7,210 |
|
|
|
|
Acquisition-adjusted direct
advertising and G&A expenses |
|
$ |
204,942 |
|
$ |
228,490 |
|
|
(10.3 |
)% |
|
$ |
832,419 |
|
$ |
910,383 |
|
|
(8.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outdoor operating income |
|
$ |
223,583 |
|
$ |
232,839 |
|
|
(4.0 |
)% |
|
$ |
736,437 |
|
$ |
850,471 |
|
|
(13.4 |
)% |
Acquisitions and
divestitures |
|
|
— |
|
|
(1,747 |
) |
|
|
|
|
|
— |
|
|
(772 |
) |
|
|
|
Acquisition-adjusted outdoor
operating income |
|
$ |
223,583 |
|
$ |
231,092 |
|
|
(3.2 |
)% |
|
$ |
736,437 |
|
$ |
849,699 |
|
|
(13.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported corporate
expenses(b) |
|
$ |
15,730 |
|
$ |
17,200 |
|
|
(8.5 |
)% |
|
$ |
64,901 |
|
$ |
65,588 |
|
|
(1.0 |
)% |
Acquisitions and
divestitures |
|
|
— |
|
|
— |
|
|
|
|
|
|
— |
|
|
— |
|
|
|
|
Acquisition-adjusted corporate
expenses |
|
$ |
15,730 |
|
$ |
17,200 |
|
|
(8.5 |
)% |
|
$ |
64,901 |
|
$ |
65,588 |
|
|
(1.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
207,853 |
|
$ |
215,639 |
|
|
(3.6 |
)% |
|
$ |
671,536 |
|
$ |
784,883 |
|
|
(14.4 |
)% |
Acquisitions and
divestitures |
|
|
— |
|
|
(1,747 |
) |
|
|
|
|
|
— |
|
|
(772 |
) |
|
|
|
Acquisition-adjusted EBITDA |
|
$ |
207,853 |
|
$ |
213,892 |
|
|
(2.8 |
)% |
|
$ |
671,536 |
|
$ |
784,111 |
|
|
(14.4 |
)% |
(a) Acquisition-adjusted net revenue, direct
advertising and general and administrative expenses, outdoor
operating income, corporate expenses and EBITDA include adjustments
to 2019 for acquisitions and divestitures for the same time frame
as actually owned in 2020.
(b) Does not include (income) expense of $(649)
and $387 for the three and twelve months ended December 31, 2020
and $1,663 and $(5,292) for the three and twelve months ended
December 31, 2019, respectively, related to the impact of ASC 842
for lease accounting and capitalization contract fulfillment costs,
net.
|
|
|
|
Three months endedDecember 31, |
|
|
Twelve months endedDecember 31, |
|
|
|
2020 |
|
|
2019 |
|
|
% Change |
|
|
2020 |
|
|
2019 |
|
|
% Change |
|
Reconciliation of Net Income to Outdoor Operating Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
108,706 |
|
|
$ |
102,753 |
|
|
5.8 |
% |
|
$ |
243,386 |
|
|
$ |
372,111 |
|
|
(34.6 |
)% |
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
25,235 |
|
|
|
— |
|
|
|
|
Interest expense, net |
|
|
30,385 |
|
|
|
36,165 |
|
|
|
|
|
|
136,826 |
|
|
|
149,852 |
|
|
|
|
Income tax expense (benefit) |
|
|
2,140 |
|
|
|
2,492 |
|
|
|
|
|
|
4,660 |
|
|
|
(4,222 |
) |
|
|
|
Operating income |
|
|
141,231 |
|
|
|
141,410 |
|
|
(0.1 |
)% |
|
|
410,107 |
|
|
|
517,741 |
|
|
(20.8 |
)% |
Corporate expenses |
|
|
15,730 |
|
|
|
17,200 |
|
|
|
|
|
|
64,901 |
|
|
|
65,588 |
|
|
|
|
Stock-based compensation |
|
|
7,726 |
|
|
|
11,569 |
|
|
|
|
|
|
18,772 |
|
|
|
29,647 |
|
|
|
|
Impact of ASC 842 adoption (lease accounting standard) |
|
|
— |
|
|
|
865 |
|
|
|
|
|
|
— |
|
|
|
3,894 |
|
|
|
|
Capitalized contract fulfillment costs, net |
|
|
(649 |
) |
|
|
798 |
|
|
|
|
|
|
387 |
|
|
|
(9,186 |
) |
|
|
|
Depreciation and amortization |
|
|
63,748 |
|
|
|
62,878 |
|
|
|
|
|
|
251,296 |
|
|
|
250,028 |
|
|
|
|
Gain on disposition of assets |
|
|
(4,203 |
) |
|
|
(1,881 |
) |
|
|
|
|
|
(9,026 |
) |
|
|
(7,241 |
) |
|
|
|
Outdoor operating income |
|
$ |
223,583 |
|
|
$ |
232,839 |
|
|
(4.0 |
)% |
|
$ |
736,437 |
|
|
$ |
850,471 |
|
|
(13.4 |
)% |
|
|
SUPPLEMENTAL SCHEDULESUNAUDITED RECONCILIATIONS
OF NON-GAAP MEASURES (IN THOUSANDS)
|
|
Three months endedDecember 31, |
|
|
Twelve months endedDecember 31, |
|
|
|
2020 |
|
|
2019 |
|
|
% Change |
|
|
2020 |
|
|
2019 |
|
|
% Change |
|
Reconciliation of Total Operating Expense to Acquisition-Adjusted
Consolidated Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expense |
|
$ |
287,294 |
|
|
$ |
321,249 |
|
|
(10.6 |
)% |
|
$ |
1,158,749 |
|
|
$ |
1,235,903 |
|
|
(6.2 |
)% |
Gain on disposition of assets |
|
|
4,203 |
|
|
|
1,881 |
|
|
|
|
|
|
9,026 |
|
|
|
7,241 |
|
|
|
|
Depreciation and amortization |
|
|
(63,748 |
) |
|
|
(62,878 |
) |
|
|
|
|
|
(251,296 |
) |
|
|
(250,028 |
) |
|
|
|
Impact of ASC 842 adoption (lease accounting standard) |
|
|
— |
|
|
|
(865 |
) |
|
|
|
|
|
— |
|
|
|
(3,894 |
) |
|
|
|
Capitalized contract fulfillment costs, net |
|
|
649 |
|
|
|
(798 |
) |
|
|
|
|
|
(387 |
) |
|
|
9,186 |
|
|
|
|
Stock-based compensation |
|
|
(7,726 |
) |
|
|
(11,569 |
) |
|
|
|
|
|
(18,772 |
) |
|
|
(29,647 |
) |
|
|
|
Acquisitions and divestitures |
|
|
— |
|
|
|
(1,330 |
) |
|
|
|
|
|
— |
|
|
|
7,210 |
|
|
|
|
Acquisition-adjusted consolidated
expense |
|
$ |
220,672 |
|
|
$ |
245,690 |
|
|
(10.2 |
)% |
|
$ |
897,320 |
|
|
$ |
975,971 |
|
|
(8.1 |
)% |
|
|
SUPPLEMENTAL SCHEDULESUNAUDITED REIT MEASURESAND
RECONCILIATIONS TO GAAP MEASURES(IN THOUSANDS, EXCEPT SHARE AND PER
SHARE DATA)
|
|
Three months ended |
|
|
Twelve months ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Adjusted Funds From Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
108,706 |
|
|
$ |
102,753 |
|
|
$ |
243,386 |
|
|
$ |
372,111 |
|
Depreciation and amortization related to real estate |
|
|
60,048 |
|
|
|
59,882 |
|
|
|
238,932 |
|
|
|
235,802 |
|
Gain from disposition of real estate assets |
|
|
(1,368 |
) |
|
|
(1,727 |
) |
|
|
(5,790 |
) |
|
|
(6,775 |
) |
Non-cash tax benefit for REIT converted assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(17,031 |
) |
Adjustment for unconsolidated affiliates and non-controlling
interest |
|
|
173 |
|
|
|
210 |
|
|
|
629 |
|
|
|
771 |
|
Funds from operations |
|
$ |
167,559 |
|
|
$ |
161,118 |
|
|
$ |
477,157 |
|
|
$ |
584,878 |
|
Straight-line expense (income) |
|
|
982 |
|
|
|
(144 |
) |
|
|
3,597 |
|
|
|
(361 |
) |
Impact of ASC 842 adoption (lease accounting standard) |
|
|
— |
|
|
|
865 |
|
|
|
— |
|
|
|
3,894 |
|
Capitalized contract fulfillment costs, net |
|
|
(649 |
) |
|
|
798 |
|
|
|
387 |
|
|
|
(9,186 |
) |
Stock-based compensation expense |
|
|
7,726 |
|
|
|
11,569 |
|
|
|
18,772 |
|
|
|
29,647 |
|
Non-cash portion of tax provision |
|
|
1,073 |
|
|
|
329 |
|
|
|
(797 |
) |
|
|
2,901 |
|
Gain from the one-time sale of non-real estate assets |
|
|
(3,197 |
) |
|
|
— |
|
|
|
(3,197 |
) |
|
|
— |
|
Non-real estate related depreciation and amortization |
|
|
3,700 |
|
|
|
2,996 |
|
|
|
12,364 |
|
|
|
14,226 |
|
Amortization of deferred financing costs |
|
|
1,442 |
|
|
|
1,353 |
|
|
|
5,909 |
|
|
|
5,365 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
25,235 |
|
|
|
— |
|
Capitalized expenditures—maintenance |
|
|
(6,412 |
) |
|
|
(13,267 |
) |
|
|
(24,028 |
) |
|
|
(49,155 |
) |
Adjustment for unconsolidated affiliates and non-controlling
interest |
|
|
(173 |
) |
|
|
(210 |
) |
|
|
(629 |
) |
|
|
(771 |
) |
Adjusted funds from
operations |
|
$ |
172,051 |
|
|
$ |
165,407 |
|
|
$ |
514,770 |
|
|
$ |
581,438 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Divided by weighted average
diluted common shares outstanding |
|
|
100,884,464 |
|
|
|
100,672,782 |
|
|
|
100,902,700 |
|
|
|
100,320,574 |
|
Diluted AFFO per share |
|
$ |
1.71 |
|
|
$ |
1.64 |
|
|
$ |
5.10 |
|
|
$ |
5.80 |
|
|
|
SUPPLEMENTAL SCHEDULESAND UNAUDITED
RECONCILIATIONS OF NON-GAAP MEASURES(IN THOUSANDS, EXCEPT SHARE AND
PER SHARE DATA)
Projected 2021 Adjusted Funds From Operations:
|
|
Year ended December 31, 2021 |
|
|
|
Low |
|
|
High |
|
Net income |
|
$ |
280,900 |
|
|
$ |
307,400 |
|
Depreciation and amortization related to real estate |
|
|
236,000 |
|
|
|
236,000 |
|
Gain from disposition of real estate assets and investments |
|
|
(6,000 |
) |
|
|
(6,000 |
) |
Adjustment for unconsolidated affiliates and non-controlling
interest |
|
|
700 |
|
|
|
700 |
|
Funds From Operations |
|
$ |
511,600 |
|
|
$ |
538,100 |
|
Straight-line expense |
|
|
3,500 |
|
|
|
3,500 |
|
Capitalized contract fulfillment costs, net |
|
|
— |
|
|
|
(500 |
) |
Stock-based compensation expense |
|
|
30,000 |
|
|
|
35,000 |
|
Non-cash portion of tax provision |
|
|
750 |
|
|
|
750 |
|
Non-real estate related depreciation and amortization |
|
|
12,000 |
|
|
|
12,000 |
|
Amortization of deferred financing costs |
|
|
6,000 |
|
|
|
6,000 |
|
Loss on extinguishment of debt |
|
|
21,600 |
|
|
|
21,600 |
|
Capitalized expenditures—maintenance |
|
|
(55,000 |
) |
|
|
(55,000 |
) |
Adjustment for unconsolidated affiliates and non-controlling
interest |
|
|
(700 |
) |
|
|
(700 |
) |
Adjusted Funds From
Operations |
|
$ |
529,750 |
|
|
$ |
560,750 |
|
Weighted average diluted shares outstanding |
|
|
101,900,000 |
|
|
|
101,900,000 |
|
Diluted earnings per share |
|
$ |
2.76 |
|
|
$ |
3.02 |
|
Diluted AFFO per share |
|
$ |
5.20 |
|
|
$ |
5.50 |
|
The guidance provided above is based on a number
of assumptions that management believes to be reasonable and
reflects our expectations as of February 2021. Actual results may
differ materially from these estimates as a result of various
factors, and we refer to the cautionary language regarding
“forward-looking statements” included in the press release when
considering this information.
Lamar Advertising (NASDAQ:LAMR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Lamar Advertising (NASDAQ:LAMR)
Historical Stock Chart
From Apr 2023 to Apr 2024