EXHIBIT 99.1
ASSET RETIREMENT OBLIGATION (UNAUDITED)
In 2001, the FASB issued Statement 143. Statement 143 requires entities
to record the fair value of a liability for an asset retirement obligation in
the period in which it is incurred, a corresponding increase in the carrying
amount of the related long-lived asset and is effective for fiscal years
beginning after June 15, 2002. Lamar Advertising Company adopted Statement 143
effective January 1, 2003, using the cumulative effect approach to recognize
transition amounts for asset retirement obligations, asset retirement costs and
accumulated depreciation. The effect of adopting Statement 143 on January 1,
2003 on Lamar Advertising's results of operations and financial condition,
included a net increase in long-term liabilities of $26.0 million; an increase
in net property, plant and equipment of $14.3 million; a cumulative effect of
adoption expense of $11.7 million, net of deferred income taxes of $7.5 million.
The following pro forma data summarizes Lamar Advertising's net loss
and net loss per share as if Lamar Advertising had adopted the provisions of
Statement 143 on December 31, 1999, including an associated pro forma asset
retirement obligation of $33.5 million, $30.9 million and $25.7 million as of
December 31, 2002, 2001 and 2000, respectively.
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<Caption>
DECEMBER 31, DECEMBER 31, DECEMBER 31,
2002 2001 2000
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Net loss applicable to common stock, as
reported...................................... $(36,693) $(108,999) $ (94,470)
Pro forma adjustments to reflect retroactive
adoption of Statement 143..................... (2,306) (2,216) (1,962)
-------- --------- ---------
Pro forma net loss.............................. $(38,999) $(111,215) $ (96,432)
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Net loss per share:
Basic and diluted -- as reported.............. $ (0.36) $ (1.11) $ (1.04)
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Basic and diluted -- pro forma................ $ (0.39) $ (1.13) $ (1.06)
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