Exhibit 99.1
5321 Corporate Boulevard
Baton Rouge, LA 70808
Lamar Advertising Company Withdraws Financial Guidance for 2020 & Announces Board Is Evaluating Dividend Plans
Baton Rouge, LA – April 2, 2020 - Lamar Advertising Company (“Lamar”) (Nasdaq: LAMR), a leading operator of outdoor advertising and logo sign displays, today announced that it has withdrawn its full-year financial guidance for 2020 in light of the significant macroeconomic uncertainty resulting from the coronavirus pandemic.
“We began the year with tremendous momentum, but the measures undertaken to slow the spread of the coronavirus are taking their toll on us as they are on the broader economy. With their customers confined to their homes and unable to shop, dine or play, many businesses have temporarily curtailed their advertising campaigns, “ Lamar chief executive Sean Reilly said. “As a result, our previously provided guidance for full-year AFFO per share is no longer applicable.”
Lamar had previously communicated that it expects to make regular quarterly distributions to stockholders in 2020 in an aggregate amount of $4.00 per share, subject to the approval of its board of directors. On March 31, 2020, Lamar paid a previously announced distribution of $1.00 per share to stockholders of record as of March 16, 2020. Today, Lamar also announced its board of directors is evaluating Lamar’s dividend plans for the balance of the year.
“Our board willre-evaluate our dividend policy for 2020 as we get a better sense for the depth and duration of the economic slowdown and theknock-on effects on advertising,” Reilly said. “As we think about that policy, our priority will always be the long-term health of the enterprise.”
In addition, Lamar said it has undertaken several steps to align its business with the new operating environment, including:
| | • | | Sharply curtailing its spending on capital projects, including new digital displays. Lamar now expects total capital expenditures for 2020 to be approximately $58 million, down from its prior estimate of $130 million, with maintenance capital expenditures comprising approximately $26 million of total capital expenditures. |
| | • | | Suspending its acquisition activity. |
| | • | | Instituting a hiring freeze. |
| | • | | Initiating discussions with many billboard ground lessors about amending their agreements to reduce future fixed site lease expenses. |
| | • | | Having constructive conversations with its airport and transit franchise partners about temporary relief from current and future annual contractual guarantees. |
Lamar also provided the following information on its liquidity and balance sheet:
| | • | | In March, the company proactively drew down $535 million on its $750 million revolving credit facility to provide additional liquidity and financial flexibility. As of today, Lamar has $625 million outstanding and approximately $112 million available under the facility (after accounting for outstanding letters of credit). After the drawdown in March and payment of the first quarter dividend, Lamar had approximately $490 million in cash on hand. |
