LAMR - Earnings call transcript Q4 2017 | Lamar Advertising Company

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Operator

This is a recording of the Tiffany Wall Conference with Lamar Advertising on February 27, 2018 at 8 AM Central Time. Excuse me, everyone, we now have Mr. Sean Reilly and Mr. Keith Istre at conference. Please be aware that each of your lines is in a listen-only mode. the we of floor open conclusion questions. for the company's will presentation, the At of Lamar and including this – course respect goals, the In discussion, including objectives, any forward-looking future performance, with regarding distribution plans its stockholders. and I'm the may statements the of about company, amount statements to financial strategic timing sorry, future make to materially Lamar's actual uncertainties statements contingencies, many differ beyond involve results are cause may risks, and anticipated control forward-looking which All which and results. from to of Lamar important to that call XX-Q. cause differ quarterly XX-K, quarter its could materially company's Form updated this on and XXXX as the its has reports in most or factors on identified report by actual recent earnings release, Form from results those in annual fourth discussed supplemented to you refers those Lamar documents. earnings the section XXXX furnished measures, financial which X-K this is release, certain required morning, on Form contains website, was regarding G by a Investors quarter and fourth of on Lamar's Lamar's Regulation at non-GAAP www.lamar.com. to SEC the information available now would conference over turn like the to Mr. to I Sean Reilly. Mr. begin, may you sir. Reilly,

Sean Eugene Reilly

to Thank earnings XXXX morning Good and Lamar's you, welcome QX call. and David. year-end

As growth, say, close it's on to underachieved say fair the top-line expenses. it's XXXX, outstanding book we think we I to job an we fair did also managing but on

So, and net-net, share beat we QX. per exceeded year, our guidance on the for for on AFFO most metrics

still leakage better. guidance about drag few in X% all will expect $X.XX but to come as that to Rico political forma it Puerto Keith components expense, our and for AFFO, unadjusted, year a a expected. in pro X% interest This approximately bps of would tax cover CapEx for be maintenance as detail. which spend per come $X.XX calls of implies revenue will in pro more should on Rico forma Keith? we in. at Looking a ad Other share forward growth, growth. AFFO slight Puerto stronger QX XXXX, to share. range The is be our kicks the per back-half

Keith Istre

morning, good Well, everyone.

were the achieved going of with this Puerto press the front full said mentioned revenue see Puerto of on the and and EBITDA Puerto bullet one and one After we and of calculations, release, you year Sean metrics metrics you the As Rico set of there give versus X Rico, standard to quarter, they expenses without had were. those they to last – you calculations, second we two On the show amount basically where for year, is Rico fourth storm, and in adjusted business revenue EBITDA the points the of the what without, last press the extent call the release, of have including out for quarter. organic on that they that the page we were the our quarter. the and

the B the full growth. fact expense highlighted growth year, organic Puerto of on it EBITDA the fourth amount establishment fund somewhat fiscal organic organic waiting X% that Rico, we X% of X% by Loan expenses and borrowings Recent For called the facility Under period section, the high in X% place take of intend $XXX those total decreased redemption $XXX X.XXX% redeem will about actually credit to Events $XXX to XXXX, is amount will million, intend to our be the XX $XXX We've – $XXX due surprise. the Notes, outstanding facility, XX a Notes, Term currently very of down million. see redeem was a so Notes, there's including year; approximately on was other million growth days; consolidated the was you that in pleasant top, quarter The million. X.X%, a the we year. yield March The used redemption million. the at new to the pay go $XXX revolving million this Of call a through of will our from which

couple Just a other in to touch on metrics of XXXX.

we Our dividends total $XX was were had million, during CapEx that for CapEx guided million, CapEx. was on which To XXXX, where maintenance touch metrics flow of million and those XXXX dividends total is is maintenance some The the $XXX is million; $XX year. $XXX $XXX after million free for for CapEx, cash $XXX million. projected same of was our

taxes Our is projected $XX at cash million. the TRS

XX% became million. then, XXXX. XX% company $XXX since a was has dividends, That's for that payout year XXXX, it has projected the will for recall, as of since dividends as in in same Our XXXX. dividend the its REIT we shareholders. Board the increase increased Free due the XXXX approved is to basically cash flow, And Directors after as every by promised, the to be you'll

bring that to so addition, repatriating from been we U.S. this that week there the into to the been In also. Canada. up due million the back Reform to will Tax and we've Act, U.S.; new back are $XX locked happen unable That's

Lastly, to our debt of total XX/XX debt I'm times. was sorry, – X.X as EBITDA,

band X live EBITDA. So times the X times promised in same that Sean? we we to to still debt

Sean Eugene Reilly

XXX. with last our on existing Thanks, then air; acquired operating this were our those X,XXX a XXX stats, digitals and and Great. net touch On or year, either questions. a of we'll deployment, were ended digital up for XXX conversion add we few the greenfield was in static inventory. I'll open of Keith. it year the of

revenue our the in of Our same XX% of the our all was as was digital sales XXXX, rest QX local, Local/national basically QX mix XX% platform. unit same national.

adverse will bit, as local this down was up local, and X.X% we Verticals; national strong coded gambling, included political up was service strong. related all which was affected mind up in down publicity verticals vertical got you shooting, for coded strong, trend to telecom local. it around the of by was David, was up again, Again, X% once we when shooting. again gaming that kicks back-half and was very very for QX. around think XX%. The verticals, reverse is and entertainment and amusements, that, because X%, open that that, the X%; With terms questions. the Weaker was up skews several In it growth, little Vegas Las in can political this mid-single-digits, down year, in XX%; the a was is sports political itself keeping cancellations auto, political

Operator

gentlemen, the for floor is Ladies this and at questions. time, now your open

question comes Our Ryvicker Fargo. first from with Wells Marci

Marci L. Ryvicker

I couple. have a Thanks.

want your The commentary. to first, clarify I just QX

but You higher; couple be are being pace you QX unadjusted, then Puerto up exclude that basis suggesting X%? a Rico, up would points talked of the about if it's QX X% you

Sean Eugene Reilly

no, no, no, no. No,

Marci L. Ryvicker

Okay.

Sean Eugene Reilly

of couple A points, points. points, decimal percentage

Marci L. Ryvicker

sense. more makes that Okay,

Sean Eugene Reilly

You know, X.X-ish, X.X-ish.

Marci L. Ryvicker

Okay.

Sean Eugene Reilly

isn't have some the project we there, can't we're still that fire as we as The but electricity on It's there everywhere, we Marci. recovery getting to can. fast digitals hard up,

Marci L. Ryvicker

lighter Meaning, X% revenue comes hope that, XXXX in is again that but this plus year, if revenue you for sustainable Okay. have not it that type does, if in do we leverage And then as more expenses? environment? how in this much anemic on of

Sean Eugene Reilly

management a home as rise that feel There doesn't with hit sales goals, don't top we the lesser as the in good fall bonuses. our then the about the end also revenues, business The less implies expenses guidance, much bonuses. mentioned, about. on little little If shares to on X%, range, and take range. and degree, commissions of we like I management in are our lease bottom more some the a Our pretty revenue model of things range, a team end

those are on they up kind go down, the top. where drivers we do variable in key and depending So, of the of expenses on and come

Marci L. Ryvicker

noise there's to of terms then my comment can been some on of question, for tuck-in M&A, noise they for in last you And a going what being appetite another in more Okay. iHeart year the on Regency about your be this possibly is and lot do, Lamar? there's assets, market; of

Sean Eugene Reilly

if good be they're high-quality assets, Marci, see, there. we'll We'll really

us, have us So, year and very of last stay-tuned, assets think with XXXX. tuck-in good that up sort year aggressive was a those a set for I a for

So XX it lot the is to you that there. activity be to just going XX suspect see of right, months we'll months a there to how next develops in XX months. that are I

Marci L. Ryvicker

much. very you Thank

Operator

with comes Alexia question next Quadrani from Our JPMorgan.

Unknown Speaker

(XX:XX:XX) is on questions a here of for got Alexia I here. This Hi. Quadrani. couple

political becoming seems but here. a First, years couple hasn't over past the I really contributor, of historically been it's especially it we know meaningful, that mean, like more much of

you thoughts Just much to on your on, how revenue expect benefit guys from political curious this year.

Sean Eugene Reilly

Sure.

XXXX; spread the that which in matter revenues changed PAC political in a didn't was part and was life decision I an throughout after year, So, in ratable that year. Traditionally, of largely Again, had the and campaigns. an into or money XXXX, it more there even even of of Citizens United think like, lot flooded XXXX, political our odd whether presidential. changed became larger a a sort Lamar whole the was it

$X come back comes XXXX, even or $X XXXX like of million, and in behaves that most neighborhood half. to expect XXXX maybe of the million in the that Assuming we something in, in

Unknown Speaker

the mean, And more the Thanks. demand, dollars digital scale? in guys think digital then advertisers given you in confident some in increase your guess, mean, you it. to been stronger billboard for outlook billboards and allocating I have I digital the for Got you year? outdoor, conversion general, I do are also, of are seeing how the

Sean Eugene Reilly

notwithstanding, at grows then, added than faster capacity, year overall it revenues the general, course, look the and with conversions we have that in if expect platform. platform terms build-out. by Yeah. faster this And to slightly you year, growing new it'll like tend Last look year, platform. of digital overall organic development in last incremental same-board terms of our Lamar, XXX than in organic would something of I range, in the much substantially

Unknown Speaker

Great. Thanks, guys.

Operator

in at And questions the have no time, other queue. this we

back closing turn for it Mr. So, I'll to Reilly comments.

Sean Eugene Reilly

everybody, look talking again to Great. and May. Thanks, we in forward

Operator

that concludes presentation. gentlemen, and Ladies morning's this

thank your disconnect phone and may us lines, this joining for morning. you You

Lamar Advertising (LAMR) 27 Feb 182017 Q4 Earnings call transcript