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

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 1-785-424-1634
Passcode:	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
	[email protected]

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 Ended March 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 SCHEDULES SELECTED 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 Ended March 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 SCHEDULES UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES (IN THOUSANDS)
	Three Months Ended March 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 SCHEDULES UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES (IN THOUSANDS)
	Three Months Ended March 31,
		2025			2024		% Change
Reconciliation 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 Ended March 31,
		2025				2024			% Change
Reconciliation 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 SCHEDULES UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES (IN THOUSANDS)
	Three Months Ended March 31,
		2025				2024			% Change
Reconciliation 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 SCHEDULES UNAUDITED REIT MEASURES AND RECONCILIATIONS TO GAAP MEASURES (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
	Three Months Ended March 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