Summarized Financial Information of Subsidiaries | 2. Summarized Financial Information of Subsidiaries Separate condensed consolidating financial information for Lamar Media, subsidiary guarantors and non-guarantor subsidiaries are presented below. Lamar Media and its subsidiary guarantors have fully and unconditionally guaranteed Lamar Media’s obligations with respect to its publicly issued notes. All guarantees are joint and several. As a result of these guarantee arrangements, we are required to present the following condensed consolidating financial information. The following condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and notes. The condensed consolidating financial information is provided as an alternative to providing separate financial statements for guarantor subsidiaries. Separate financial statements of Lamar Media’s subsidiary guarantors are not included because the guarantees are full and unconditional and the subsidiary guarantors are 100% owned and jointly and severally liable for Lamar Media’s outstanding publicly issued notes. The accounts for all companies reflected herein are presented using the equity method of accounting for investments in subsidiaries. LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) (In Thousands, Except for Share Data) Condensed Consolidating Balance Sheet as of March 31, 2020 Lamar Media Corp. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Lamar Media Consolidated (unaudited) ASSETS Total current assets $ 487,176 $ 54,532 $ 242,377 $ — $ 784,085 Net property, plant and equipment — 1,334,725 8,947 — 1,343,672 Operating lease right of use assets — 1,304,978 23,187 — 1,328,165 Intangibles and goodwill, net — 2,854,750 17,894 — 2,872,644 Other assets 4,244,398 229,672 185,052 (4,611,422 ) 47,700 Total assets $ 4,731,574 $ 5,778,657 $ 477,457 $ (4,611,422 ) $ 6,376,266 LIABILITIES AND STOCKHOLDER'S EQUITY Current liabilities: Current maturities of long-term debt $ (5,418 ) $ 34 $ 175,000 $ — $ 169,616 Current operating lease liabilities — 165,770 6,409 — 172,179 Other current liabilities 24,927 155,846 10,189 — 190,962 Total current liabilities 19,509 321,650 191,598 — 532,757 Long-term debt 3,382,167 26 — — 3,382,193 Operating lease liabilities — 1,054,692 17,121 — 1,071,813 Other noncurrent liabilities 202,674 231,041 262,154 (433,590 ) 262,279 Total liabilities 3,604,350 1,607,409 470,873 (433,590 ) 5,249,042 Stockholders’ equity 1,127,224 4,171,248 6,584 (4,177,832 ) 1,127,224 Total liabilities and stockholders’ equity $ 4,731,574 $ 5,778,657 $ 477,457 $ (4,611,422 ) $ 6,376,266 LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) (In Thousands, Except for Share Data) Condensed Consolidating Balance Sheet as of December 31, 2019 Lamar Media Corp. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Lamar Media Consolidated ASSETS Total current assets $ 13,859 $ 53,756 $ 242,054 $ — $ 309,669 Net property, plant and equipment — 1,340,675 8,440 — 1,349,115 Operating lease right of use assets — 1,293,674 27,105 — 1,320,779 Intangibles and goodwill, net — 2,875,644 18,255 — 2,893,899 Other assets 4,193,629 229,905 184,805 (4,557,380 ) 50,959 Total assets $ 4,207,488 $ 5,793,654 $ 480,659 $ (4,557,380 ) $ 5,924,421 LIABILITIES AND STOCKHOLDER'S EQUITY Current liabilities: Current maturities of long-term debt $ 51,480 $ 34 $ 175,000 $ — $ 226,514 Current operating lease liabilities — 189,071 7,770 — 196,841 Other current liabilities 26,960 196,689 19,845 — 243,494 Total current liabilities 78,440 385,794 202,615 — 666,849 Long-term debt 2,753,570 34 — — 2,753,604 Operating lease liabilities — 1,049,220 18,961 — 1,068,181 Other noncurrent liabilities 205,947 231,416 250,859 (421,966 ) 266,256 Total liabilities 3,037,957 1,666,464 472,435 (421,966 ) 4,754,890 Stockholders’ equity 1,169,531 4,127,190 8,224 (4,135,414 ) 1,169,531 Total liabilities and stockholders’ equity $ 4,207,488 $ 5,793,654 $ 480,659 $ (4,557,380 ) $ 5,924,421 LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) (In Thousands, Except for Share Data) Condensed Consolidating Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2020 Lamar Media Corp. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Lamar Media Consolidated Statement of Income (unaudited) Net revenues $ — $ 396,631 $ 10,452 $ (514 ) $ 406,569 Operating expenses Direct advertising expenses (1) — 143,052 6,956 (514 ) 149,494 General and administrative expenses (1) — 80,528 1,676 — 82,204 Corporate expenses (1) — 18,087 280 — 18,367 Depreciation and amortization — 61,905 408 — 62,313 Gain on disposition of assets — (2,504 ) — — (2,504 ) — 301,068 9,320 (514 ) 309,874 Operating income — 95,563 1,132 — 96,695 Equity in (earnings) loss of subsidiaries (94,214 ) — — 94,214 — Loss on extinguishment of debt 18,179 — — — 18,179 Interest expense (income), net 35,418 (35 ) 980 — 36,363 Income (loss) before income tax expense 40,617 95,598 152 (94,214 ) 42,153 Income tax expense (2) — 1,342 194 — 1,536 Net income (loss) $ 40,617 $ 94,256 $ (42 ) $ (94,214 ) $ 40,617 Statement of Comprehensive Income Net income (loss) $ 40,617 $ 94,256 $ (42 ) $ (94,214 ) $ 40,617 Total other comprehensive loss, net of tax — — (1,598 ) — (1,598 ) Total comprehensive income (loss) $ 40,617 $ 94,256 $ (1,640 ) $ (94,214 ) $ 39,019 (1) Caption is exclusive of depreciation and amortization. (2) The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries. LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) (In Thousands, Except for Share Data) Condensed Consolidating Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2019 Lamar Media Corp. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Lamar Media Consolidated Statement of Income (unaudited) Net revenues $ — $ 374,581 $ 10,526 $ (650 ) $ 384,457 Operating expenses Direct advertising expenses (1) — 134,750 6,370 (650 ) 140,470 General and administrative expenses (1) — 77,657 1,636 — 79,293 Corporate expenses (1) — 16,623 297 — 16,920 Depreciation and amortization — 60,833 673 — 61,506 Gain on disposition of assets — (460 ) (4,164 ) — (4,624 ) — 289,403 4,812 (650 ) 293,565 Operating income — 85,178 5,714 — 90,892 Equity in (earnings) loss of subsidiaries (87,374 ) — — 87,374 — Interest expense (income), net 36,012 (5 ) 1,435 — 37,442 Income (loss) before income tax expense 51,362 85,183 4,279 (87,374 ) 53,450 Income tax expense (2) — 619 1,469 — 2,088 Net income (loss) $ 51,362 $ 84,564 $ 2,810 $ (87,374 ) $ 51,362 Statement of Comprehensive Income Net income (loss) $ 51,362 $ 84,564 $ 2,810 $ (87,374 ) $ 51,362 Total other comprehensive income, net of tax — — 259 — 259 Total comprehensive income (loss) $ 51,362 $ 84,564 $ 3,069 $ (87,374 ) $ 51,621 (1) Caption is exclusive of depreciation and amortization. (2) The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries. LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) (In Thousands, Except for Share Data) Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2020 Lamar Media Corp. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Lamar Media Consolidated (unaudited) Cash flows from operating activities: Net cash provided by (used in) operating activities $ 24,222 $ 82,135 $ (5,970 ) $ (63,763 ) $ 36,624 Cash flows from investing activities: Acquisitions — (13,565 ) — — (13,565 ) Capital expenditures — (24,531 ) (1,178 ) — (25,709 ) Proceeds from disposition of assets and investments — 3,686 — — 3,686 Investment in subsidiaries (13,565 ) — — 13,565 — (Increase) decrease in intercompany notes receivable (8,155 ) — — 8,155 — Net cash (used in) provided by investing activities (21,720 ) (34,410 ) (1,178 ) 21,720 (35,588 ) Cash flows from financing activities: Principal payments on long-term debt (81 ) (8 ) — — (89 ) Payment on revolving credit facility (180,000 ) — — — (180,000 ) Proceeds received from revolving credit facility 655,000 — — — 655,000 Proceeds received from note offering 1,000,000 — — — 1,000,000 Redemption of senior subordinated notes (519,139 ) — — — (519,139 ) Proceeds received from senior credit facility term loans 598,500 598,500 Payments on senior credit facility term loans (978,097 ) (978,097 ) Debt issuance costs (24,042 ) — — — (24,042 ) Intercompany loan (payments) proceeds — (3,436 ) 11,591 (8,155 ) — Distributions to non-controlling interest — — (860 ) — (860 ) Dividends (to) from parent (110,755 ) (63,763 ) — 63,763 (110,755 ) Contributions from (to) parent 29,429 13,565 — (13,565 ) 29,429 Net cash provided by (used in) financing activities 470,815 (53,642 ) 10,731 42,043 469,947 Effect of exchange rate changes in cash and cash equivalents — — (532 ) — (532 ) Net increase (decrease) in cash and cash equivalents 473,317 (5,917 ) 3,051 — 470,451 Cash and cash equivalents at beginning of period 13,185 8,278 4,225 — 25,688 Cash and cash equivalents at end of period $ 486,502 $ 2,361 $ 7,276 $ — $ 496,139 LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) (In Thousands, Except for Share Data) Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2019 Lamar Media Corp. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Lamar Media Consolidated (unaudited) Cash flows from operating activities: Net cash provided by (used in) operating activities $ 20,980 $ 53,074 $ 16,079 $ (50,594 ) $ 39,539 Cash flows from investing activities: Acquisitions — (66,423 ) — — (66,423 ) Capital expenditures — (25,413 ) (538 ) — (25,951 ) Proceeds from disposition of assets and investments — 1,297 — — 1,297 Investment in subsidiaries (66,423 ) — — 66,423 — (Increase) decrease in intercompany notes receivable (10,470 ) — — 10,470 — Decrease in notes receivable 2 — — — 2 Net cash (used in) provided by investing activities (76,891 ) (90,539 ) (538 ) 76,893 (91,075 ) Cash flows from financing activities: Proceeds received from revolving credit facility 155,000 — — — 155,000 Payment on revolving credit facility (255,000 ) — — — (255,000 ) Principal payments on long-term debt (7,210 ) — — — (7,210 ) Proceeds from note offering 255,000 — — — 255,000 Payments on accounts receivable securitization program — — (7,000 ) — (7,000 ) Debt issuance costs (4,256 ) — — — (4,256 ) Intercompany loan (payments) proceeds (7,000 ) 24,186 (6,716 ) (10,470 ) — Distributions to non-controlling interest — — (137 ) — (137 ) Dividends (to) from parent (104,597 ) (50,594 ) — 50,594 (104,597 ) Contributions from (to) parent 30,970 66,423 — (66,423 ) 30,970 Net cash provided by (used in) financing activities 62,907 40,015 (13,853 ) (26,299 ) 62,770 Effect of exchange rate changes in cash and cash equivalents — — 100 — 100 Net increase in cash and cash equivalents 6,996 2,550 1,788 — 11,334 Cash and cash equivalents at beginning of period 4,029 11,655 5,310 — 20,994 Cash and cash equivalents at end of period $ 11,025 $ 14,205 $ 7,098 $ — $ 32,328 |