Exhibit 99.1
(LAMAR LOGO)
5551 CORPORATE BOULEVARD
BATON ROUGE, LA 70808
LAMAR ADVERTISING COMPANY ANNOUNCES
THIRD QUARTER 2003 OPERATING RESULTS
Baton Rouge, LA - Wednesday, November 5, 2003 - 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, 2003.
THIRD QUARTER RESULTS
Lamar reported net revenues of $211.7 million for the third quarter of 2003
versus $201.9 million for the third quarter of 2002, a 4.9% increase. Operating
income for the third quarter of 2003 was $23.8 million as compared to $17.7
million for the same period in 2002. There was a net loss of $6.5 million for
the third quarter of 2003 compared to a net loss of $6.0 million for the third
quarter of 2002. The net loss of $6.5 million includes a loss on extinguishment
of debt of $12.6 million which is described in detail below.
Adjusted EBITDA, which we refer to herein as EBITDA, (defined as operating
income before depreciation and amortization and loss (gain) on disposition of
assets - see reconciliation to net loss at the end of this release) for the
third quarter of 2003 was $94.4 million versus $87.9 million for the third
quarter of 2002, a 7.4% increase.
Free cash flow (defined as EBITDA less interest, 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 2003 was $52.4 million as compared to $39.4 million for the same
period in 2002, a 33.0% increase.
On a pro forma basis, net revenue for the third quarter of 2003 increased 1.7%
compared to the third quarter of 2002. Pro forma direct advertising and general
and administrative expenses before corporate expenses increased 1.3% compared to
the third quarter of 2002. Pro forma outdoor operating income increased 2.1% as
compared to the same period in 2002. Corporate expenses decreased approximately
$2.0 million compared to the third quarter of 2002. This decrease is primarily
due to a $2.3 million non-cash charge in the third quarter of 2002 related to a
jury verdict rendered against the Company that is now on appeal. Pro forma
EBITDA increased 4.5% compared to the third quarter of 2002 before adjusting for
the jury verdict mentioned above and had this charge not occurred pro forma
EBITDA would have increased 1.9%. Pro forma net revenue, direct advertising and
general and administrative expenses, outdoor operating income, corporate
expenses and EBITDA include adjustments to 2002 for acquisitions and
divestitures for the same time frame as actually owned in 2003.
A table that reconciles reported results to pro forma results is included below,
as well as a table that reconciles operating income to outdoor operating income.
NINE MONTHS RESULTS
Lamar reported net revenues of $604.1 million for the nine months ended
September 30, 2003 versus $581.0 million for the same period in 2002, a 4.0%
increase. Operating income for the nine months ended September 30, 2003 was
$51.6 million as compared to $45.9 million for the same period in 2002. EBITDA
increased 2.4% to $258.5 million for the nine months ended September 30, 2003
versus $252.5 million for the same period in 2002. There was a net loss of $41.0
million for the nine months ended September 30, 2003 as compared to a net loss
of $22.5 million for the same period in 2002. The net loss of $41.0 million
includes a loss on extinguishment of debt of $29.5 million and cumulative effect
of a change in accounting principle, net of tax of $11.7 million.
Free Cash Flow for the nine months ended September 30, 2003 was $129.6 million
as compared to $119.2 million for the same period in 2002, an 8.7% increase.
FINANCING HIGHLIGHTS
In July, the Company redeemed all of its outstanding 5 1/4% Convertible Notes
due 2006 in aggregate principal amount of approximately $287.5 million for a
redemption price equal to 103.0% of the principal amount of the notes. The
redemption was funded by the issuance on June 16, 2003 of $287.5 million of 2
7/8% Convertible Notes due 2010. As a result of this redemption, the Company
recorded a loss on extinguishment of debt of $12.6 million which consisted of a
prepayment penalty of $8.6 million and associated debt issuance costs of
approximately $4.0 million.
GUIDANCE Q4 2003
For the fourth quarter of 2003 the Company expects net revenue to be
approximately $202 million. On a pro forma basis this equates to an increase of
approximately 1% over the same period in 2002. On this level of net revenue,
EBITDA on a proforma basis should be even to slightly up.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements, including the statements
regarding our guidance for the fourth quarter of 2003. 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 continued popularity of outdoor advertising as an advertising medium; (3)
the regulation of the outdoor advertising industry; (4) our need for and ability
to obtain additional funding for acquisitions or operations; (5) the integration
of companies that we acquire and our ability to recognize cost savings or
operating efficiencies as a result of these acquisitions; (6) the extent and
length of the tightness in the economy generally and the demand for advertising
in particular; and (7) 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, however, 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 AND WEBCAST INFORMATION
A conference call will be held to discuss the Company's operating results
Wednesday, November 5, 2003 at 10:00 a.m. eastern time. Instructions for the
conference call and Webcast are provided below:
CONFERENCE CALL
ALL CALLERS: 1-706-643-3436
CONFERENCE ID # 3660090
REPLAY: 1-706-645-9291
CONFERENCE ID # 3660090
Will run through Tuesday, November 11, 2003 at 11:59 p.m.
eastern time
WEBCAST INFORMATION
LIVE WEBCAST: www.lamar.com
WEBCAST REPLAY: www.lamar.com
Available through Tuesday, November 11, 2003 at 11:59 p.m.
eastern time
GENERAL INFORMATION ON LAMAR
Lamar Advertising Company is a leading outdoor advertising company currently
operating 152 outdoor advertising companies in 43 states, logo businesses in 21
states and the province of Ontario, Canada and 39 transit advertising franchises
in 15 states.
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)
<Table>
<Caption>
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
------------- ------------- ------------- -------------
Net revenues $ 211,720 $ 201,918 $ 604,119 $ 580,985
------------- ------------- ------------- -------------
Operating expenses (income)
Direct advertising expenses 74,571 71,685 219,489 205,544
General and administrative expenses 36,098 33,721 107,615 101,853
Corporate expenses 6,631 8,604 18,541 21,095
Depreciation and amortization 70,410 70,268 207,483 206,769
Loss (gain) on disposition of assets 242 (33) (616) (203)
------------- ------------- ------------- -------------
187,952 184,245 552,512 535,058
------------- ------------- ------------- -------------
Operating income 23,768 17,673 51,607 45,927
Other expense (income)
Loss on extinguishment of debt 12,566 -- 29,493 --
Interest income (99) (387) (283) (774)
Interest expense 21,524 27,182 67,871 81,199
------------- ------------- ------------- -------------
33,991 26,795 97,081 80,425
------------- ------------- ------------- -------------
Loss before income tax benefit and
cumulative effect of a change in
accounting principle (10,223) (9,122) (45,474) (34,498)
Income tax benefit (3,715) (3,134) (16,172) (12,039)
------------- ------------- ------------- -------------
Loss before cumulative effect of a change
in accounting principle (6,508) (5,988) (29,302) (22,459)
Cumulative effect of a change in
accounting principle, net of tax -- -- (11,679) --
------------- ------------- ------------- -------------
Net loss (6,508) (5,988) (40,981) (22,459)
Preferred stock dividends 91 91 273 273
------------- ------------- ------------- -------------
Net loss applicable to common stock $ (6,599) $ (6,079) $ (41,254) $ (22,732)
============= ============= ============= =============
Per common share information:
Loss before cumulative effect of a
change in accounting principle $ (0.06) $ (0.06) $ (0.29) $ (0.23)
Cumulative effect of a change in
accounting principle -- -- (0.11) --
------------- ------------- ------------- -------------
Net loss $ (0.06) $ (0.06) $ (0.40) $ (0.23)
============= ============= ============= =============
Weighted average common shares
Outstanding - basic and diluted 103,251,834 101,377,147 102,472,830 100,965,349
</Table>
OTHER DATA
Free Cash Flow Computation:
<Table>
EBITDA $ 94,420 $ 87,908 $ 258,474 $ 252,493
Interest, net (21,425) (26,795) (67,588) (80,425)
Current tax (expense) benefit 50 (764) 310 4,378
Preferred stock dividends (91) (91) (273) (273)
Total capital expenditures (20,532) (20,858) (61,299) (56,938)
------------- ------------- ------------- -------------
Free cash flow $ 52,422 $ 39,400 $ 129,624 $ 119,235
============= ============= ============= =============
</Table>
<Table>
<Caption>
September 30, December 31,
2003 2002
------------- ------------
Selected Balance Sheet Data:
Cash and cash equivalents $ 6,492 $ 15,610
Working capital 91,040 95,922
Total assets 3,701,153 3,888,106
Total debt (including current maturities) 1,765,429 1,994,433
Total stockholders' equity 1,724,950 1,709,173
============= ============
</Table>
<Table>
<Caption>
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
------------ ------------ ------------ ------------
Other Data:
Cash flows provided by operating activities $ 72,816 $ 73,010 $ 171,130 $ 153,496
Cash flows used in investing activities 42,230 39,006 183,353 128,931
Cash flows provided by (used in) financing activities (34,786) (15,959) 3,105 21,196
Reconciliation of Free Cash Flow to Cash Flows Provided by
Operating Activities:
Cash flows provided by operating activities $ 72,816 $ 73,010 $ 171,130 $ 153,496
Changes in operating assets and liabilities 2,415 (10,961) 26,520 29,328
Total capital expenditures (20,532) (20,858) (61,299) (56,938)
Preferred stock dividends (91) (91) (273) (273)
Other (2,186) (1,700) (6,454) (6,378)
------------ ------------ ------------ ------------
Free cash flow $ 52,422 $ 39,400 $ 129,624 $ 119,235
============ ============ ============ ============
</Table>
Reconciliation of EBITDA to Net loss:
<Table>
EBITDA $ 94,420 $ 87,908 $ 258,474 $ 252,493
Less:
Depreciation and amortization 70,410 70,268 207,483 206,769
Loss (Gain) on disposition of assets 242 (33) (616) (203)
----------- ----------- ----------- -----------
Operating Income 23,768 17,673 51,607 45,927
Less:
Loss on extinguishment of debt 12,566 -- 29,493 --
Interest income (99) (387) (283) (774)
Interest expense 21,524 27,182 67,871 81,199
Income tax benefit (3,715) (3,134) (16,172) (12,039)
Cumulative effect of a change in accounting principle, net of
tax -- -- 11,679 --
----------- ----------- ----------- -----------
Net loss $ (6,508) $ (5,988) $ (40,981) $ (22,459)
=========== =========== =========== ===========
</Table>
<Table>
<Caption>
Three Months Ended
September 30,
2003 2002 % Change
------------ ------------ ------------
Reconciliation of Reported Basis to Pro Forma (a) Basis:
Reported Net Revenue $ 211,720 $ 201,918 4.9%
Acquisitions and Divestitures -- 6,255
------------ ------------
Pro forma Net Revenue $ 211,720 $ 208,173 1.7%
Reported Direct advertising and G&A expenses $ 110,669 $ 105,406 5.0%
Acquisitions and Divestitures -- 3,791
------------ ------------
Pro forma Direct advertising and G&A expenses $ 110,669 $ 109,197 1.3%
Reported Outdoor Operating Income $ 101,051 $ 96,512 4.7%
Acquisitions and Divestitures -- 2,464
------------ ------------
Pro forma Outdoor Operating Income $ 101,051 $ 98,976 2.1%
Reported Corporate expenses $ 6,631 $ 8,604 (22.9)%
Acquisitions and Divestitures -- --
------------ ------------
Pro forma Corporate expenses $ 6,631 $ 8,604 (22.9)%
Reported EBITDA $ 94,420 $ 87,908 7.4%
Acquisitions and Divestitures -- 2,464
------------ ------------
Pro forma EBITDA $ 94,420 $ 90,372 4.5%
============ ============
(a) Pro forma net revenues, direct advertising and general and
administrative expenses, outdoor operating income, corporate expenses,
and EBITDA include adjustments to 2002 for acquisitions and
divestitures for the same time frame as actually owned in 2003.
</Table>
<Table>
<Caption>
Three Months Ended
September 30,
2003 2002
------------ ------------
Reconciliation of Outdoor Operating Income to Operating
Income:
Outdoor Operating Income $ 101,051 $ 96,512
Less: Corporate expenses (6,631) (8,604)
Depreciation and amortization (70,410) (70,268)
Gain (loss) on disposition of assets (242) 33
------------ ------------
Operating income $ 23,768 $ 17,673
============ ============
</Table>