Lamar Advertising (LAMR) 8-K Lamar Advertising Company Announces Third Quarter 2010 Operating Results

Exhibit 99.1

5551 Corporate Boulevard
Baton Rouge, LA 70808

Lamar Advertising Company Announces
Third Quarter 2010 Operating Results

Baton Rouge, LA — November 3, 2010 — Lamar Advertising Company (Nasdaq: LAMR), a leading owner and operator of outdoor advertising and logo sign displays, announces the Company’s operating results for the third quarter ended September 30, 2010.

Three Months Results
Lamar reported net revenues of $286.1 million for the third quarter of 2010 versus $271.8 million for the third quarter of 2009, a 5.3% increase. Operating income for the third quarter of 2010 was $46.6 million as compared to $39.3 million for the same period in 2009. There was net income of $0.8 million for the third quarter of 2010 compared to a net loss of $4.8 million for the third quarter of 2009.

Adjusted EBITDA, which we refer to herein as EBITDA (defined as operating income before non-cash compensation, depreciation and amortization and gain on disposition of assets — see reconciliation to net income (loss) at the end of this release) for the third quarter of 2010 was $128.0 million versus $122.5 million for the third quarter of 2009, a 4.5% increase.

Free cash flow (defined as EBITDA less interest, net of interest income and amortization of financing costs, current taxes, preferred stock dividends and total capital expenditures — see reconciliation to cash flows provided by operating activities at the end of this release) for the third quarter of 2010 was $75.2 million as compared to $83.0 million for the same period in 2009, a 9.4% decrease.

Pro forma net revenue for the third quarter of 2010 increased 4.6% and pro forma EBITDA increased 4.2% as compared to the third quarter of 2009. Pro forma net revenue and EBITDA include adjustments to the 2009 period for acquisitions and divestitures for the same time frame as actually owned in the 2010 period. Tables that reconcile reported results to pro forma results and operating income to outdoor operating income are included at the end of this release.

Nine Months Results
Lamar reported net revenues of $816.6 million for the nine months ended September 30, 2010 versus $793.8 million for the same period in 2009, a 2.9% increase. Operating income for the nine months ended September 30, 2010 was $106.7 million as compared to $77.2 million for the same period in 2009. EBITDA increased to $349.8 million for the nine months ended September 30, 2010 versus $334.6 million for the same period in 2009. There was a net loss of $33.0 million for the nine months ended September 30, 2010 as compared to a net loss of $38.4 million for the same period in 2009.

Free cash flow for the nine months ended September 30, 2010 increased 0.8% to $192.3 million as compared to $190.7 million for the same period in 2009.

Liquidity
As of September 30, 2010 and currently, Lamar had approximately $276 million in total liquidity that consists of $238 million available for borrowing under its revolving senior credit facility and approximately $38 million in cash.

Guidance
For the fourth quarter of 2010 the Company expects net revenue to be approximately $275 million. On a pro forma basis this represents an increase of approximately 4%.

Forward Looking Statements
This press release contains forward-looking statements, including the statements regarding guidance for the fourth quarter of 2010. 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 length and severity of the current recession and the effect that it has on the demand for advertising; (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) the regulation of the outdoor advertising industry; (6) the integration of companies that we acquire and our ability to recognize cost savings or operating efficiencies as a result of these acquisitions; (7) the market for our Class A common stock and (8) other factors described in the reports on Forms 10-K and 10-Q and the registration statements that we file from time to time with the SEC. 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 Measures
EBITDA, free cash flow, pro forma results and outdoor operating income are not measures of performance under accounting principles generally accepted in the United States of America (“GAAP”) and should not be considered alternatives to operating income, net loss, cash flows from operating activities, or other GAAP figures as indicators of the Company’s financial performance or liquidity. The Company’s management believes that EBITDA, free cash flow, pro forma results and outdoor operating income are useful in evaluating the Company’s performance and provide investors and financial analysts a better understanding of the Company’s core operating results. The pro forma acquisition adjustments are intended to provide information that may be useful for investors when assessing period to period results. Our presentations of these measures may not be comparable to similarly titled measures used by other companies. Reconciliations of these measures to GAAP are included at the end of this release.

Conference Call Information
A conference call will be held to discuss the Company’s operating results on November 4, 2010 at 10:00 a.m. central time. Instructions for the conference call and Webcast are provided below:

Conference Call

All Callers:	1-334-323-0520 or 1-334-323-9871
Passcode:	Lamar
Replay:	1-334-323-7226
Passcode:	81735836
	Available through Monday, November 8, 2010 at 11:59 p.m. eastern time
Live Webcast:	www.lamar.com
Webcast Replay:	www.lamar.com
	Available through Monday, November 8, 2010 at 11:59 p.m. eastern time

General Information
Lamar Advertising Company is a leading outdoor advertising company currently operating over 150 outdoor advertising companies in 44 states, Canada and Puerto Rico, logo businesses in 22 states and the province of Ontario, Canada and over 60 transit advertising franchises in the United States, Canada and Puerto Rico.

Company Contact:	Keith A. Istre
	Chief Financial Officer
	(225) 926-1000
	KI@lamar.com

LAMAR ADVERTISING COMPANY AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

	Three months ended						Nine months ended
	September 30,						September 30,
	2010			2009			2010			2009
Net revenues	$	286,138		$	271,766		$	816,607		$	793,750
Operating expenses (income)
Direct advertising expenses		99,595			97,630			297,972			298,055
General and administrative expenses		48,551			42,223			138,919			131,883
Corporate expenses		10,024			9,401			29,950			29,261
Non-cash compensation		4,915			2,946			12,715			9,687
Depreciation and amortization		77,617			83,529			234,124			252,792
Gain on disposition of assets		(1,137	)		(3,222	)		(3,756	)		(5,095	)
		239,565			232,507			709,924			716,583
Operating income		46,573			39,259			106,683			77,167
Other expense (income)
Gain on disposition of investment		—			(1,445	)		—			(1,445	)
(Gain) loss on extinguishment of debt		—			(131	)		17,398			(3,670	)
Interest income		(14	)		(128	)		(190	)		(442	)
Interest expense		45,352			52,090			141,322			145,085
		45,338			50,386			158,530			139,528
Income (loss) before income tax		1,235			(11,127	)		(51,847	)		(62,361	)
Income tax expense (benefit)		454			(6,346	)		(18,864	)		(24,005	)
Net income (loss)		781			(4,781	)		(32,983	)		(38,356	)
Preferred stock dividends		91			91			273			273
Net income (loss) applicable to common stock	$	690			($4,872	)		($33,256	)		($38,629	)
Earnings per share:
Basic earnings (loss) per share	$	0.01			($0.05	)		($0.36	)		($0.42	)
Diluted earnings (loss) per share	$	0.01			($0.05	)		($0.36	)		($0.42	)
Weighted average common shares outstanding:
- basic		92,315,046			91,770,644			92,183,591			91,679,539
- diluted		92,728,863			91,994,981			92,649,166			91,710,406
OTHER DATA
Free Cash Flow Computation:
EBITDA	$	127,968		$	122,512		$	349,766		$	334,551
Interest, net		(40,801	)		(47,624	)		(128,553	)		(128,920	)
Current tax benefit (expense)		119			15,731			(969	)		14,354
Preferred stock dividends		(91	)		(91	)		(273	)		(273	)
Total capital expenditures(1)		(12,024	)		(7,539	)		(27,712	)		(29,010	)
Free cash flow	$	75,171		$	82,989		$	192,259		$	190,702

⁽¹⁾ See the capital expenditures detail included below for a breakdown by category.

	September 30,		December 31,
Selected Balance Sheet Data:	2010		2009
Cash and cash equivalents	$	38,415	$	112,253
Working capital		153,180		104,229
Total assets		3,718,944		3,943,541
Total debt (including current maturities)		2,472,806		2,674,912
Total stockholders’ equity		816,401		831,798

	Three months ended						Nine months ended
	September 30,						September 30,
	2010			2009			2010			2009
Other Data:
Cash flows provided by operating activities	$	97,009		$	75,011		$	190,179		$	191,422
Cash flows used in investing activities		11,808			5,042			24,927			18,827
Cash flows used in financing activities		73,794			180,018			239,393			139,377
Reconciliation of Free Cash Flow to Cash Flows Provided by Operating Activities:
Cash flows provided by operating activities	$	97,009		$	75,011		$	190,179		$	191,422
Changes in operating assets and liabilities		(8,145	)		18,551			35,422			37,001
Total capital expenditures		(12,024	)		(7,539	)		(27,712	)		(29,010	)
Preferred stock dividends		(91	)		(91	)		(273	)		(273	)
Other		(1,578	)		(2,943	)		(5,357	)		(8,438	)
Free cash flow	$	75,171		$	82,989		$	192,259		$	190,702
Reconciliation of EBITDA to Net income (loss):
EBITDA	$	127,968		$	122,512		$	349,766		$	334,551
Less:
Non-cash compensation		4,915			2,946			12,715			9,687
Depreciation and amortization		77,617			83,529			234,124			252,792
Gain on disposition of assets		(1,137	)		(3,222	)		(3,756	)		(5,095	)
Operating Income		46,573			39,259			106,683			77,167
Less:
Interest income		(14	)		(128	)		(190	)		(442	)
Gain on disposition of investment		—			(1,445	)		—			(1,445	)
(Gain) loss on extinguishment of debt		—			(131	)		17,398			(3,670	)
Interest expense		45,352			52,090			141,322			145,085
Income tax expense (benefit)		454			(6,346	)		(18,864	)		(24,005	)
Net income (loss)	$	781			($4,781	)		($32,983	)		($38,356	)

	Three months ended
	September 30,
	2010		2009		% Change
Reconciliation of Reported Basis to Pro Forma (a) Basis:
Reported net revenue	$	286,138	$	271,766		5.3	%
Acquisitions and divestitures		—		1,678
Pro forma net revenue	$	286,138	$	273,444		4.6	%
Reported direct advertising and G&A expenses	$	148,146	$	139,853		5.9	%
Acquisitions and divestitures		—		1,361
Pro forma direct advertising and G&A expenses	$	148,146	$	141,214		4.9	%
Reported outdoor operating income	$	137,992	$	131,913		4.6	%
Acquisitions and divestitures		—		317
Pro forma outdoor operating income	$	137,992	$	132,230		4.4	%
Reported corporate expenses	$	10,024	$	9,401		6.6	%
Acquisitions and divestitures		—		—
Pro forma corporate expenses	$	10,024	$	9,401		6.6	%
Reported EBITDA	$	127,968	$	122,512		4.5	%
Acquisitions and divestitures		—		317
Pro forma EBITDA	$	127,968	$	122,829		4.2	%

(a) Pro forma net revenues, direct advertising and general and administrative expenses, outdoor operating income, corporate expenses and EBITDA include adjustments to 2009 for acquisitions and divestitures for the same time frame as actually owned in 2010.

			Three months ended
			September 30,
			2010		2009
Reconciliation of Outdoor Operating Income to Operating Income:
	Outdoor operating income		$	137,992	$	131,913
	Less:	Corporate expenses		10,024		9,401
		Non-cash compensation		4,915		2,946
		Depreciation and amortization		77,617		83,529
	Plus:	Gain on disposition of assets		1,137		3,222
	Operating income		$	46,573	$	39,259

	Three months ended				Nine months ended
	September 30,				September 30,
	2010		2009		2010		2009
Capital expenditure detail by category
Billboards — traditional	$	2,832	$	1,386	$	5,341	$	6,447
Billboards — digital		3,905		3,345		8,575		11,592
Logo		2,119		1,205		6,187		3,276
Transit		52		113		726		3,123
Land and buildings		142		165		721		549
Operating equipment		2,974		1,325		6,162		4,023
Total capital expenditures	$	12,024	$	7,539	$	27,712	$	29,010