LAMR - Earnings call transcript Q2 2018 | Lamar Advertising Company

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Operator

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

Sean Reilly

airports, Thank QX Lamar. you, earnings clicked, unit, XXXX and Katie. quarter all, on of for the all-around transit, and morning, logos And Lamar's business bottom. Everything top welcome QX to business exceeded good and was every all plan good lines a call. billboards,

right growth acquisitions X.X% the As overall the year's communicate integration same-board continues north shine stellar their reflected time the their accretive growth, successfully right digital right of to our continued with message audience confidence place. have forma pro last to of at in to platform in reflect customers out-of-home and X%, reported our to of at growth our contribution results the AFFO and

per all-around by guidance team. to same mentioned AFFO share raising and to consequently QX Lamar forma $X.XX we our As pro to be we release, neighborhood great share. in good the in the Keith? to an expect per performance Again, $X.XX are

Keith Istre

everyone. morning, Good

on is up those consolidated those up metrics ended acquisition X.X%, was couple a comments X.X%, months on EBITDA a that's the release metrics this adjusted acquisition basis. of but couple same-store adjusted basis. of was a The or Just QX one for results six again in your press the are a of on - revenue

line control So that two expenses you had see is that we've Sean the second is can really they quarters it the bottom us. in basically was on year growth six forma for the first the The positive recognized of first this have pro to impact good of the quarter, quarter the revenue that months. Back what measured line. double bottom topline as a for are the

Our EBITDA of at in margins came year's XX% QX XX%. last was

have revised to guidance share quarter. initially was - internal is the we to guidance, over the $X.XX. beginning respect managed projected revised So pick used year's of million be at same and $XX expectation. year to to our $X.XX point you now last $XX noticed we our at may extra up CapEx the With in Maintenance schedule of per share an that showing AFFO the million. We that a included

So that we Last XX. year's actual down $X at about came CapEx have in million. dropped maintenance

we think with CapEx. like a regard maintenance it'll XXXX to So lot look

And in Our range, the June for dividend last XXXX is dividends to year. flow pretty we for in just X.X which approximately we of pro and ratio reside. expect be $XXX of reiterate million end leverage $XXX cash where Sean? came million much come forma total the free to our at should as before the

Sean Reilly

by Rico units. We our not we ended it's has about with digital dropped and our we've Year-to-date digital's operating I'll couple with sold to metrics. exceeding digital new XX in Keith, activity. expectations. build the been and built - I'm units other the of as units those with count on stand and X,XXX where performance have a with new quarter digital XX we that Thank, Great. Puerto going touch the air, units new recall start to that

that the we've builds that So, air the year-to-date. number now put is with in new at XXXX

acquisition same-board take digital you new was the and mentioned, effect of As some to platform at our the actually if builds quite good And same-board. our teens year-to-date. activity, performance X.X% upper mid in digital grew

was up is up national/local, stronger X% than local In change. terms National some QX, in national and little approximately of X%.

I you CD X%. rates ads banks. last national a was if drive it around QX, equal - We up community financials when to that we little to some local right report around lingo expect Financial, up pick think up see through even on The from your QX. were contribution guys you and actually category. in me discussion a great surprise sports lot up And if services of entertainment not might bit national would you'll there for and was vertical and and an Amusements, read be see, some and thing tell for that's interesting I'll with XX months. were research a that have Education talk been and town, X%. X%, I about we XX%, an a had lot of a verticals that there's up was had start quite advertising education, the will XX to we've of story, or - in local

platforms, what selection when you've pleased verticals, was numbers. way real verticals. the impressive seeing more top bit, some take up and By was around, all with that cracked XX, QX. as down estate hearing that our in we're are been you of of struggled those But So, just mid-single, the X% in the from gaming media Auto down larger important a mid-singles. very very, little other and

questions. Katie, up that with open I'll it for So,

Operator

Wells first [Operator Stephan from question from Instructions] Our Bisson comes Fargo.

Stephan Bisson

last maybe question, benefit second half? Quick did the you're on much and I provide in in seeing much know guys you political how how that the it QX? discussed call,

Sean Reilly

will back have QX, maybe to added it otherwise in that maybe our neighborhood the X.X% - pro It been be what more In would forma had in political growth. Sure. half.

the contribution. tracking that when we as for June, X.X% XXXX we I of the it'll midterm. be project, XX% think political in if XXXX in finished comes neighborhood it Through year, is over

Stephan Bisson

any digital trends, great on potentially thoughts of number the that digital this given And year? increase really then deployments

Sean Reilly

we as going We're fast as can.

Stephan Bisson

growth year getting just How are revenue guess faster. a guys balance on I higher growing clearly revenue? then we then expense you And about and think should of expenses for the lastly, the

Keith Istre

We should turn in the same neighborhood. them

as was quarter reflective is X.X% But little be in what of you back think to extraordinary. happened First X%. quarter - half, it should the I second recall,

Stephan Bisson

Auto, guess then has improved QX in or one just I not? Are signs And that more. auto of any or seeing QX? you

Keith Istre

horns QX I lot that It's group a in slice disappointing auto Auto north X%, the QX, a think of little we looking We other forward in just across QX early media board. tell. up felt of platforms. to a verticals, years. effect because little we fold don't their little of and dice It's the too in have to in and seemed was our do

little a of So vertical struggle other was will see. one verticals me up to stepped in What we and good to see thing several for the a bit was play.

Operator

Quadrani next comes JPMorgan. Alexia Our question from from

Alexia Quadrani

spending it the in of taking general What and quarter of driving you're national, beginning to is think strengthening better seeing couple your is or share the also advertisers? you're do media on are local or things. just or half? - you to the And another the you are by a sort growth going do in you you from national better back just taking third find in Just drive seeing

Sean Reilly

take written the on struggling other from story that level shift audience. their on share we with you'll did marginal that and the of some think some see when media traditional local with XXXX, I of at going media lot share a is There's the are

away more solid more linked time commute they Our and are is home more spending to a spending and audience ever they're without than for growing, people time before as now.

have So, I the was when XXXX, of share media. we other some think will on written see again, the take that story traditional from you'll

example, Pages. that And what's see one up X%. going as was the Yellow Yellow is For which the category we our all obvious are is to Pages. These folks you service know

similar customer that's of a I So, to think where other there's told. example that obvious be and sort categories will story an

Alexia Quadrani

on of you where national, think And better growth coming from? is the that

Sean Reilly

a notably big a half. those dollar the categories the show back little than to of tends bit we half local of is the up more coming back was most Qualcomm. in But the didn't it more first and the one National first year, little ebbs. and a There they're fickle that year as half of were some in flow ebb know,

that national been. add So, ebb it's the natural flow of just

Alexia Quadrani

M&A M&A? on question last anything of terms - or add just Then on the new in pipeline on you'd or anything priorities

Keith Istre

that we've glad you ATM the because brought am that bought. just we I that didn't mention shelf up the universal or

the intent In million of ATM is and stock universal take consideration contract have And of the seller worth that $XX tap So, also the reason for That acquisitions we've is closing. equity for part that, late we a so, give-or-take anticipation spring. got of letter year-to-date did about - about and was in our in of various - in $XXX in XX. that sale. million the wish of to about we stages

worth out $XX make that in $XXX of of and contracted funding Shell. on Does assets. sense? equity, So, ATM the about LOI home drawn $XX a revolver combining million with million the the and down million We're

Operator

comes question from from next Citi. Our Jason Bazinet

Jason Bazinet

Just had a quick question.

year the to EBITDA. own that year giving reported had and that wondering, And - and that you the assets that if of revenue reverse the asset you're I then quarter ago you period. of did be kind are You EBITDA think a this you sort number it same sort a same-store the in I see without give of trajectory? guys M&A, enough if sort revenue you when ago the on really just would assets you do and And and you and was same-store in pretending what year same

Sean Reilly

the It's same. Yes, good basically question.

way. You can either do it

thing in acquisition is real important to as a real clean clean adjusted. The have a reported

methodology. be clear We and terms the very, acquisition forma on our interchanged. pro can try and to be intermingled adjusted very Sometimes

do companies Some other the it way.

it last year it the did you would be If virtually same. our to activity

Jason Bazinet

think it, back you they sort the this off? if can M&A even operating in spec turned you So or business guys leverage of get dial

Sean Reilly

absolutely. Yes,

just reflect nature show acquisition. the platform the the reported if of The results as what forma results were happen accretive So would the we to pro steady-state. obviously

Jason Bazinet

lower one that assets multiple paying for some multiple that assets type like and you I overhead seems It acquisition you're buying the if acquired as costs read of headline just from your these the EBITDA adjusted about properties. presume you're these is than

Sean Reilly

leases multiple a we When we do permits we're and virtually footprint and these Yes, have sellers typically we national in pretty because don't done every structures, trailing has racy. trucks expensive we fill the of looks contract, ground advertising and billboard in a feel our people No, acquiring just need - really really buy absolutely. that and mean acquisitions I like.

absolutely. It's very exercise. traditional a yes, So,

Operator

from Our Ben Stanley. question from Swinburne Morgan comes next

Ben Swinburne

examples but perspective, you the realize if were I and across if know wanted this don't have could in that cost to gaming states that what are of this kind for move some early like where to sports, of you I guys. seems business mentioned just And the down back Sean, corporate is the I is might I the the half? think mean you and you to ask any the it quarter opportunity in I an be in anything and year-on-year was country from thinking trend expect unusual they had a gambling legislation know just you about soft starting then

Sean Reilly

short that. able year, of So, be waiting a add some we so a may the the bit sort cycling expense had were might When years Keith they to litigation like hit yes, a cost were little us first our DraftKings then down. ramping time like sports five corporate they that period got I'll are year, approval things up, and the and a but to within and other over that of started little gaming, of we very little do a spend the hardening and gotten four benefit. will last time been things amount on book few FanDuel are of reduce month ago bit to have through XXX,XXX a very first about color they then expect Keith But a a that's that and shut to gaming. heavy with

got They going our come that settle of out sort some that down expect all M&A will to expect on, to we when a that activity little comes more point of some way all clear. way. activity them when but So, we at come

Mississippi is The to Mississippi. if allow there fixing sports those us. we that already other are of casino in benefit see hope is book voted one states particularly activity to

shooting, big in impact Vegas. us. the in way that of that. deep as past. the some those about groups casino bit from message. year been all are has hopeful that has of We a hearing little see it's a of in to the What of Vegas that hone that is are their half been of Gaming we going that number talked a things The for had well. and recovering enigma win on we back So, come particularly back the an will the anecdotally things

Ben Swinburne

taking that's Pages, Just one more you're that intuitive you from Yellow folks. follow-up, to mentioned share Sean I'm sure

Another your GM's for the with media accelerated, with been would there to might maybe traditional But a you and whatever competing curious growing you traditional radio because past talked have all against be you have any bit than I you this soft asked share the years think numbers nicely. are see the for you've been I'm radio, shifts, year if guys which streaming, you for doing better radio in reason? is that

Sean Reilly

shift Pages. correlation is direct So, I from service to think share as pretty Yellow

And pull are thing. need ticket that radio to a platform. next nano our that amusements, juice quickly Sunday, Another traditionally digital there's digital promote if concert, and Friday, you is you're need sitting in at platform going, in very to and however we to respond spot, do particularly been right. sales can This a a if is kind radio if our tractor is a has Wednesday, a that sport. And produce category Because and tickets, a can that's with and very, us of can to Saturday, digital if ticket a a weekend, second. there's sell sweet you your sales in growing need entertainment do rapidly on for there's

to radio's pretty I be. there a would strength correlation that's So, to say direct used what

Operator

would like to it I turn further Reilly And the to Sean for questions queue. time, in I'm remarks. closing back over showing now at no this

Sean Reilly

for enjoy for what all finish talk But QX. about to We'll an talk Thank in and we'll now you was listening. and we're how the again November going outstanding QX year. let's out

Operator

you teleconference. concludes This Thank ladies and today's gentlemen.

now You disconnect. may

Lamar Advertising (LAMR) 8 Aug 182018 Q2 Earnings call transcript