Summarized Financial Information of Subsidiaries | (9) 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. Condensed Consolidating Balance Sheet as of December 31, 2018 Lamar Media Corp. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Lamar Media Consolidated ASSETS Total current assets $ 4,653 $ 121,549 $ 236,967 $ — $ 363,169 Net property, plant and equipment — 1,289,348 5,700 — 1,295,048 Intangibles and goodwill, net — 2,804,915 19,304 — 2,824,219 Other assets 4,056,288 230,504 184,247 (4,425,589 ) 45,450 Total assets $ 4,060,941 $ 4,446,316 $ 446,218 $ (4,425,589 ) $ 4,527,886 LIABILITIES AND STOCKHOLDER'S EQUITY Current liabilities: Current maturities of long-term debt $ 29,086 $ 34 $ 175,000 $ — $ 204,120 Other current liabilities 27,067 204,103 14,578 — 245,748 Total current liabilities 56,153 204,137 189,578 — 449,868 Long-term debt 2,684,500 68 — — 2,684,568 Other noncurrent liabilities 200,092 246,312 251,835 (424,985 ) 273,254 Total liabilities 2,940,745 450,517 441,413 (424,985 ) 3,407,690 Stockholders’ equity 1,120,196 3,995,799 4,805 (4,000,604 ) 1,120,196 Total liabilities and stockholders’ equity $ 4,060,941 $ 4,446,316 $ 446,218 $ (4,425,589 ) $ 4,527,886 Condensed Consolidating Balance Sheet as of December 31, 2017 Lamar Media Corp. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Lamar Media Consolidated ASSETS Total current assets $ 87,167 $ 293,536 $ 39,316 $ — $ 420,019 Net property, plant and equipment — 1,193,705 20,433 — 1,214,138 Intangibles and goodwill, net — 2,495,370 30,812 — 2,526,182 Other assets 3,707,352 10,571 7 (3,680,327 ) 37,603 Total assets $ 3,794,519 $ 3,993,182 $ 90,568 $ (3,680,327 ) $ 4,197,942 LIABILITIES AND STOCKHOLDER'S EQUITY Current liabilities: Current maturities of long-term debt $ 17,664 $ — $ — $ — $ 17,664 Other current liabilities 120,500 164,393 19,429 — 304,322 Total current liabilities 138,164 164,393 19,429 — 321,986 Long-term debt 2,539,026 — — — 2,539,026 Other noncurrent liabilities 26,231 218,900 61,587 (60,886 ) 245,832 Total liabilities 2,703,421 383,293 81,016 (60,886 ) 3,106,844 Stockholders’ equity 1,091,098 3,609,889 9,552 (3,619,441 ) 1,091,098 Total liabilities and stockholders’ equity $ 3,794,519 $ 3,993,182 $ 90,568 $ (3,680,327 ) $ 4,197,942 Condensed Consolidating Statements of Income and Comprehensive Income for the Year Ended December 31, 2018 Lamar Media Corp. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Lamar Media Consolidated Statement of Income Net revenues $ — $ 1,579,619 $ 50,352 $ (2,749 ) $ 1,627,222 Operating expenses Direct advertising expenses (1) — 537,269 27,307 (2,728 ) 561,848 General and administrative expenses (1) — 280,874 8,554 — 289,428 Corporate expenses (1) — 80,861 1,636 — 82,497 Depreciation and amortization — 219,341 5,920 — 225,261 (Gain) loss on disposition of assets — (576 ) 7,809 — 7,233 — 1,117,769 51,226 (2,728 ) 1,166,267 Operating income (loss) — 461,850 (874 ) (21 ) 460,955 Equity in (earnings) loss of subsidiaries (450,791 ) — — 450,791 — Interest expense (income), net 129,731 (99 ) (413 ) (21 ) 129,198 Other expenses 15,429 — — — 15,429 Income (loss) before income tax expense 305,631 461,949 (461 ) (450,791 ) 316,328 Income tax expense (2) — 7,879 2,818 — 10,697 Net income (loss) $ 305,631 $ 454,070 $ (3,279 ) $ (450,791 ) $ 305,631 Statement of Comprehensive Income Net income (loss) $ 305,631 $ 454,070 $ (3,279 ) $ (450,791 ) $ 305,631 Total other comprehensive income, net of tax — — (1,290 ) — (1,290 ) Total comprehensive income (loss) $ 305,631 $ 454,070 $ (4,569 ) $ (450,791 ) $ 304,341 (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. Condensed Consolidating Statements of Income and Comprehensive Income for the Year Ended December 31, 2017 Lamar Media Corp. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Lamar Media Consolidated Statement of Income Net revenues $ — $ 1,494,275 $ 51,332 $ (4,347 ) $ 1,541,260 Operating expenses Direct advertising expenses (1) — 512,247 31,277 (2,644 ) 540,880 General and administrative expenses (1) — 266,798 9,431 — 276,229 Corporate expenses (1) — 60,830 1,132 — 61,962 Depreciation and amortization — 201,424 9,680 — 211,104 (Gain) loss on disposition of assets — (5,704 ) 1,040 — (4,664 ) — 1,035,595 52,560 (2,644 ) 1,085,511 Operating income (loss) — 458,680 (1,228 ) (1,703 ) 455,749 Equity in (earnings) loss of subsidiaries (446,520 ) — — 446,520 — Interest expense (income), net 128,391 (5 ) 1,707 (1,703 ) 128,390 Other expenses 71 — — — 71 Income (loss) before income tax expense 318,058 458,685 (2,935 ) (446,520 ) 327,288 Income tax expense (2) — 7,069 2,161 — 9,230 Net income (loss) $ 318,058 $ 451,616 $ (5,096 ) $ (446,520 ) $ 318,058 Statement of Comprehensive Income Net income (loss) $ 318,058 $ 451,616 $ (5,096 ) $ (446,520 ) $ 318,058 Total other comprehensive income, net of tax — — 1,926 — 1,926 Total comprehensive income (loss) $ 318,058 $ 451,616 $ (3,170 ) $ (446,520 ) $ 319,984 (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. Condensed Consolidating Statements of Income and Comprehensive Income for the Year Ended December 31, 2016 Lamar Media Corp. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Lamar Media Consolidated Statement of Income Net revenues $ — $ 1,450,997 $ 53,190 $ (3,893 ) $ 1,500,294 Operating expenses Direct advertising expenses (1) — 497,011 31,197 (2,611 ) 525,597 General and administrative expenses (1) — 259,152 10,271 — 269,423 Corporate expenses (1) — 74,587 1,407 — 75,994 Depreciation and amortization — 197,117 7,841 — 204,958 (Gain) loss on disposition of assets — (15,365 ) 270 — (15,095 ) — 1,012,502 50,986 (2,611 ) 1,060,877 Operating income (loss) — 438,495 2,204 (1,282 ) 439,417 Equity in (earnings) loss of subsidiaries (426,053 ) — — 426,053 — Interest expense (income), net 123,674 (6 ) 1,296 (1,282 ) 123,682 Other expenses 3,198 — — — 3,198 Income (loss) before income tax expense 299,181 438,501 908 (426,053 ) 312,537 Income tax expense (2) — 11,258 2,098 — 13,356 Net income (loss) $ 299,181 $ 427,243 $ (1,190 ) $ (426,053 ) $ 299,181 Statement of Comprehensive Income Net income (loss) $ 299,181 $ 427,243 $ (1,190 ) $ (426,053 ) $ 299,181 Total other comprehensive income, net of tax — — 554 — 554 Total comprehensive income (loss) $ 299,181 $ 427,243 $ (636 ) $ (426,053 ) $ 299,735 (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. Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2018 Lamar Media Corp. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Lamar Media Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 430,896 $ 689,718 $ (17,143 ) $ (566,386 ) $ 537,085 Cash flows from investing activities: Acquisitions — (477,389 ) — — (477,389 ) Capital expenditures — (113,259 ) (4,379 ) — (117,638 ) Proceeds from disposition of assets and investments — 3,839 2,809 — 6,648 Proceeds received from insurance claims — — 4,222 — 4,222 Investment in subsidiaries (498,226 ) — — 498,226 — Decrease in intercompany notes receivable 30,034 — — (30,034 ) — Decrease in notes receivable 9 — — — 9 Net cash (used in) provided by investing activities (468,183 ) (586,809 ) 2,652 468,192 (584,148 ) Cash flows from financing activities: Proceeds received from revolving credit facility 563,000 — — — 563,000 Payment on revolving credit facility (481,000 ) — — — (481,000 ) Principal payments on long-term debt (27,297 ) (31 ) — — (27,328 ) Proceeds received from senior credit facility term loans 599,250 — — — 599,250 Proceeds received from receivable financing agreement — — 175,000 — 175,000 Debt issuance costs (7,616 ) — — — (7,616 ) Redemption on senior subordinated notes (509,790 ) — — — (509,790 ) Intercompany loan proceeds (payments) 175,000 (24,688 ) (180,346 ) 30,034 — Distributions to non-controlling interest — — (541 ) — (541 ) Contributions from (to) parent 89,967 498,226 — (498,226 ) 89,967 Dividends (to) from parent (446,744 ) (566,386 ) — 566,386 (446,744 ) Net cash (used in) provided by financing activities (45,230 ) (92,879 ) (5,887 ) 98,194 (45,802 ) Effect of exchange rate changes in cash and cash equivalents — — (1,112 ) — (1,112 ) Net increase in cash and cash equivalents (82,517 ) 10,030 (21,490 ) — (93,977 ) Cash and cash equivalents at beginning of period 86,546 1,625 26,800 — 114,971 Cash and cash equivalents at end of period $ 4,029 $ 11,655 $ 5,310 $ — $ 20,994 Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2017 Lamar Media Corp. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Lamar Media Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 383,370 $ 602,504 $ 2,174 $ (503,808 ) $ 484,240 Cash flows from investing activities: Acquisitions 3,750 (298,901 ) (2,154 ) — (297,305 ) Capital expenditures — (104,325 ) (5,004 ) — (109,329 ) Proceeds from disposition of assets and investments — 6,053 — — 6,053 Investment in subsidiaries (301,055 ) — — 301,055 — (Increase) decrease in intercompany notes receivable (7,624 ) — — 7,624 — Decrease in notes receivable 515 — — — 515 Net cash (used in) provided by investing activities (304,414 ) (397,173 ) (7,158 ) 308,679 (400,066 ) Cash flows from financing activities: Principal payments on long-term debt (16,993 ) — — — (16,993 ) Payment on revolving credit facility (477,000 ) — — — (477,000 ) Proceeds received from revolving credit facility 495,000 — — — 495,000 Payment on senior credit facility (247,500 ) — — — (247,500 ) Proceeds received from senior credit facility 450,000 — — — 450,000 Debt issuance costs (4,941 ) — — — (4,941 ) Intercompany loan proceeds (payments) — — 7,624 (7,624 ) — Distributions to non-controlling interest — — (693 ) — (693 ) Contributions from (to) parent 49,187 298,901 2,154 (301,055 ) 49,187 Dividends (to) from parent (252,925 ) (503,808 ) — 503,808 (252,925 ) Net cash (used in) provided by financing activities (5,172 ) (204,907 ) 9,085 195,129 (5,865 ) Effect of exchange rate changes in cash and cash equivalents — — 1,632 — 1,632 Net increase in cash and cash equivalents 73,784 424 5,733 — 79,941 Cash and cash equivalents at beginning of period 12,762 1,201 21,067 — 35,030 Cash and cash equivalents at end of period $ 86,546 $ 1,625 $ 26,800 $ — $ 114,971 Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2016 Lamar Media Corp. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Lamar Media Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 394,215 $ 597,948 $ 7,526 $ (504,423 ) $ 495,266 Cash flows from investing activities: Acquisitions — (585,054 ) — — (585,054 ) Capital expenditures — (104,440 ) (3,172 ) — (107,612 ) Proceeds from disposition of assets and investments — 11,662 — — 11,662 Investment in subsidiaries (585,054 ) — — 585,054 — (Increase) decrease in intercompany notes receivable (260 ) — — 260 — Decrease in notes receivable 21 — — — 21 Net cash (used in) provided by investing activities (585,293 ) (677,832 ) (3,172 ) 585,314 (680,983 ) Cash flows from financing activities: Principal payments on long-term debt (21,118 ) — — — (21,118 ) Payment on revolving credit facility (403,000 ) — — — (403,000 ) Proceeds received from revolving credit facility 483,000 — — — 483,000 Proceeds received from note offering 400,000 — — — 400,000 Payment on senior credit facility (300,000 ) — — — (300,000 ) Proceeds received from senior credit facility 300,000 — — — 300,000 Debt issuance costs (9,467 ) — — — (9,467 ) Intercompany loan proceeds (payments) — — 260 (260 ) — Distributions to non-controlling interest — — (420 ) — (420 ) Contributions from (to) parent 49,274 585,054 — (585,054 ) 49,274 Dividends (to) from parent (299,804 ) (504,423 ) — 504,423 (299,804 ) Net cash provided by (used in) financing activities 198,885 80,631 (160 ) (80,891 ) 198,465 Effect of exchange rate changes in cash and cash equivalents — — 455 — 455 Net increase in cash and cash equivalents 7,807 747 4,649 — 13,203 Cash and cash equivalents at beginning of period 4,955 454 16,418 — 21,827 Cash and cash equivalents at end of period $ 12,762 $ 1,201 $ 21,067 $ — $ 35,030 |