Lamar Advertising (LAMR) 8-K Lamar Advertising Company Announces Fourth Quarter and Year End 2010 Operating Results

Exhibit 99.1

5321 Corporate Boulevard
Baton Rouge, LA 70808

Lamar Advertising Company Announces
Fourth Quarter and Year End 2010 Operating Results

Baton Rouge, LA — February 23, 2011 — 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 fourth quarter ended December 31, 2010.

Fourth Quarter Results

Lamar reported net revenues of $275.7 million for the fourth quarter of 2010 versus $262.3 million for the fourth quarter of 2009, a 5.1% increase. Operating income for the fourth quarter of 2010 was $32.8 million as compared to $20.4 million for the same period in 2009. There was a net loss of $7.1 million for the fourth quarter of 2010 compared to a net loss of $19.7 million for the fourth quarter of 2009.

Adjusted EBITDA (defined as operating income before non-cash compensation, depreciation and amortization and gain on disposition of assets — see reconciliation to net loss at the end of this release) for the fourth quarter of 2010 was $115.4 million versus $106.8 million for the fourth quarter of 2009, an 8.0% increase.

Free cash flow (defined as Adjusted 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 fourth quarter of 2010 was $59.2 million as compared to $50.4 million for the same period in 2009, a 17.5% increase.

Pro forma net revenue for the fourth quarter of 2010 increased 4.4% and pro forma Adjusted EBITDA increased 7.6% as compared to the fourth quarter of 2009. Pro forma net revenue and Adjusted 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.

Twelve Months Results

Lamar reported net revenues of $1.09 billion for the twelve months ended December 31, 2010 versus $1.06 billion for the same period in 2009, a 3.4% increase. Operating income for the twelve months ended December 31, 2010 was $139.5 million as compared to $97.6 million for the same period in 2009. Adjusted EBITDA increased to $465.2 million for the twelve months ended December 31, 2010 versus $441.4 million for the same period in 2009. There was a net loss of $40.1 million for the twelve months ended December 31, 2010 as compared to a net loss of $58.0 million for the same period in 2009.

Free cash flow for the twelve months ended December 31, 2010 increased 4.3% to $251.5 million as compared to $241.1 million for the same period in 2009.

Liquidity

As of December 31, 2010, Lamar had $331.6 million in total liquidity that consists of $239.9 million available for borrowing under its revolving senior credit facility and $91.7 million in cash.

Guidance

For the first quarter of 2011 the Company expects net revenue to be approximately $256 million. On a pro forma basis this represents an increase of approximately 4.5%.

Forward Looking Statements

This press release contains forward-looking statements, including the statements regarding guidance for the first quarter of 2011. 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

Adjusted 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 Adjusted 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 Wednesday, February 23, 2011 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:	45161860
	Available through Monday, February 28, 2011 at 11:59 p.m. eastern time.
Live Webcast:	www.lamar.com
Webcast Replay:	www.lamar.com
	Available through Monday, February 28, 2011 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						Twelve months ended
	December 31,						December 31,
	2010			2009			2010			2009
Net revenues	$	275,684		$	262,315		$	1,092,291		$	1,056,065
Operating expenses (income)
Direct advertising expenses		100,495			99,670			398,467			397,725
General and administrative expenses		49,283			46,064			188,202			177,947
Corporate expenses		10,522			9,753			40,472			39,014
Non-cash compensation		5,124			2,775			17,839			12,462
Depreciation and amortization		78,579			83,933			312,703			336,725
Gain on disposition of assets		(1,144	)		(329	)		(4,900	)		(5,424	)
		242,859			241,866			952,783			958,449
Operating income		32,825			20,449			139,508			97,616
Other expense (income)
Gain on disposition of investment		—			—			—			(1,445	)
Loss (gain) on extinguishment of debt, net		—			350			17,398			(3,320	)
Interest income		(177	)		(85	)		(367	)		(527	)
Interest expense		44,726			51,962			186,048			197,047
		44,549			52,227			203,079			191,755
Loss before income tax		(11,724	)		(31,778	)		(63,571	)		(94,139	)
Income tax benefit		(4,605	)		(12,096	)		(23,469	)		(36,101	)
Net loss		(7,119	)		(19,682	)		(40,102	)		(58,038	)
Preferred stock dividends		92			92			365			365
Net loss applicable to common stock	$	(7,211	)	$	(19,774	)	$	(40,467	)	$	( 58,403	)
Earnings per share:
Basic loss per share	$	(0.08	)	$	(0.22	)	$	(0.44	)	$	(0.64	)
Diluted loss per share	$	(0.08	)	$	(0.22	)	$	(0.44	)	$	(0.64	)
Weighted average common shares outstanding:
- basic		92,491,327			91,880,167			92,261,157			91,730,109
- diluted		92,959,871			92,394,975			92,673,650			91,836,094
OTHER DATA
Free Cash Flow Computation:
Adjusted EBITDA	$	115,384		$	106,828		$	465,150		$	441,379
Interest, net of interest income		(44,549	)		(51,877	)		(185,681	)		(196,520	)
Amortization included in interest expense		4,355			3,719			16,934			19,442
Current tax (expense) benefit		(150	)		1,627			(1,119	)		15,981
Preferred stock dividends		(92	)		(92	)		(365	)		(365	)
Total capital expenditures(1)		(15,740	)		(9,805	)		(43,452	)		(38,815	)
Free cash flow	$	59,208		$	50,400		$	251,467		$	241,102

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

	December 31,		December 31,
	2010		2009
Selected Balance Sheet Data:
Cash and cash equivalents	$	91,679	$	112,253
Working capital		155,829		104,229
Total assets		3,648,961		3,943,541
Total debt (including current maturities)		2,409,140		2,674,912
Total stockholders’ equity		818,523		831,798

	Three months ended						Twelve months ended
	December 31,						December 31,
	2010			2009			2010			2009
Other Data:
Cash flows provided by operating activities	$	132,641		$	102,321		$	322,820		$	293,743
Cash flows used in investing activities		16,553			10,212			41,480			29,039
Cash flows used in financing activities		63,036			28,972			302,429			168,349
Reconciliation of Free Cash Flow to Cash Flows Provided by Operating Activities:
Cash flows provided by operating activities	$	132,641		$	102,321		$	322,820		$	293,743
Changes in operating assets and liabilities		(54,222	)		(37,799	)		(18,800	)		(798	)
Total capital expenditures		(15,740	)		(9,805	)		(43,452	)		(38,815	)
Preferred stock dividends		(92	)		(92	)		(365	)		(365	)
Other		(3,379	)		(4,225	)		(8,736	)		(12,663	)
Free cash flow	$	59,208		$	50,400		$	251,467		$	241,102
Reconciliation of Adjusted EBITDA to Net loss:
Adjusted EBITDA	$	115,384		$	106,828		$	465,150		$	441,379
Less:
Non-cash compensation		5,124			2,775			17,839			12,462
Depreciation and amortization		78,579			83,933			312,703			336,725
Gain on disposition of assets		(1,144	)		(329	)		(4,900	)		(5,424	)
Operating Income		32,825			20,449			139,508			97,616
Less:
Interest income		(177	)		(85	)		(367	)		(527	)
Gain on disposition of investment		—			—			—			(1,445	)
Loss (gain) extinguishment of debt		—			350			17,398			(3,320	)
Interest expense		44,726			51,962			186,048			197,047
Income tax benefit		(4,605	)		(12,096	)		(23,469	)		(36,101	)
Net loss	$	(7,119	)	$	(19,682	)	$	(40,102	)	$	(58,038	)

	Three months ended
	December 31,
	2010		2009		% Change
Reconciliation of Reported Basis to Pro Forma (a) Basis:
Net revenue	$	275,684	$	262,315		5.1	%
Acquisitions and divestitures		—		1,841
Pro forma net revenue	$	275,684	$	264,156		4.4	%
Direct advertising and G&A expenses	$	149,778	$	145,734		2.8	%
Acquisitions and divestitures		—		1,432
Pro forma direct advertising and G&A expenses	$	149,778	$	147,166		1.8	%
Outdoor operating income	$	125,906	$	116,581		8.0	%
Acquisitions and divestitures		—		409
Pro forma outdoor operating income	$	125,906	$	116,990		7.6	%
Corporate expenses	$	10,522	$	9,753		7.9	%
Acquisitions and divestitures		—		—
Pro forma corporate expenses	$	10,522	$	9,753		7.9	%
Adjusted EBITDA	$	115,384	$	106,828		8.0	%
Acquisitions and divestitures		—		409
Pro forma Adjusted EBITDA	$	115,384	$	107,237		7.6	%

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

	Three months ended
	December 31,
	2010		2009
Reconciliation of Outdoor Operating Income to Operating Income:
Outdoor operating income	$	125,906	$	116,581
Less: Corporate expenses		10,522		9,753
Non-cash compensation		5,124		2,775
Depreciation and amortization		78,579		83,933
Plus: Gain on disposition of assets		1,144		329
Operating income	$	32,825	$	20,449

	Three months ended				Twelve months ended
	December 31,				December 31,
	2010		2009		2010		2009
Capital expenditure detail by category
Billboards — traditional	$	4,165	$	954	$	9,506	$	7,401
Billboards — digital		4,639		3,586		13,214		15,178
Logo		2,296		1,999		8,483		5,275
Transit		150		2,365		876		5,488
Land and buildings		1,810		29		2,531		578
Operating equipment		2,680		872		8,842		4,895
Total capital expenditures	$	15,740	$	9,805	$	43,452	$	38,815