LAMR - Earnings call transcript Q3 2018 | Lamar Advertising Company

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Excuse me, everyone. We now have Sean Reilly and Keith Istre in conference. [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 and objectives, including with respect to the amount of timing and any distributions to stockholders. All forward-looking statements involve risk, uncertainties and contingencies, many of which are beyond Lamar's control and which may cause actual results to differ materially from anticipated results. Lamar has identified important factors that could cause actual results to differ materially from those discussed in this call and the company's third quarter 2018 earnings release and its most recent annual report on Form 10-K as updated or supplemented by its quarterly reports on Form 10-Q and current reports on Form 8-K. those to you refers documents. Lamar a XXXX Lamar's the required furnished investors which morning on information section of www.lamar.com. release, Regulation third to is G on SEC was quarter by measures regarding contains financial this website, earnings certain available X-K Form Lamar's the and non-GAAP to the over to would Reilly. I turn now Sean like conference Mr. you Reilly, may begin.

Sean Reilly

welcome Thank you, XXXX Earnings QX Todd. Good to morning, Call. Lamar's all, and

significant we amount growth revenue political We are did we in to see QX, the a September happy from that although, of posted shift healthy with October.

minus will the Regarding in pro QX suggests same-store by pacing very guidance, part number spend political company's a our history. be the QX up helped strongest in plus or forma, strong X%

guidance XXXX few $X.XX by detail Assuming near of AFFO are pro come Keith of that cents. in share a confident but will QX expenses in in the expenses robust are middle the QX. the a in expected, growth. or comes per at expect forma in what a of as talk full to we we we be X% will usual Again, year about should minutes, more the few top-end exceed we

good closing and are strong into carrying XXXX Keith? XXXX. We momentum

Keith Istre

want I Sean. Good the expense X% consolidated in briefly Thanks, morning. the to address growth quarter. third

all, uptick. the surely to for X%. X% I you know, of quarterly It's growth. that X% most accounted of think First of typical A as expense is not organic our things couple

First, and going a little end tough year. of the was our of are organic comps growth our flat expense in QX so year QX into last the

the last exceeding are goals, They wants significantly management, than are rewarded the year. those commission they sales and field, Second, year. our bonus Lamar's for and exceeding this higher who profit be in goals will vastly for their centers expense

XXXX. to growth expense expect X for quarters X%, account QX we plus similar be QX, for taking into to all As

Sean? which run our As end expense normal growth Sean X%, consolidated rate. up should organic at is said, we annual with

Sean Reilly

Great. I'll we hit typically address. Thanks. metrics of that a few

pro our contribute what that moved speak half is growth. some would know to X.X% political to be to to X, me spend and what be a it X its contribution spend, about from again, the QX, question political forma expect to of point let I otherwise In expected would added because pro First, to In QX, we forma I'll growth about pro our X% get our be QX. for growth. to what forma, expected our

expect about contribution of the what For growth full into that be pro around X%. would forma translate what will now we to X.X% political be to our year, otherwise

better. tad So great a a Digital company. continues to story be the for

Our end same-board of up shine, new had digital digital added units. performance additional the By in X.X% an QX. XXX we QX, to continues

We expect that be number by roughly year-end. XXX to

on contributed about be expect same call. national and to So that our forma Local in us our talking you equally expect to and QX the QX. we pro can next growth

we letter have Regarding year-to-date, acquisitions, we stages expect XXXX. in close agreements about and acquisitions we to in that various million under worth roughly acquisitions, have $XXX of of early $XX million closed

XX%. up heavy, in came averages the verticals, Regarding

in in As the and fact, the up of lowlight largest a our was education, automotive, one XX%; now or is was XX%; were minus highlights, up customer QX. matter which MillerCoors X% retail, - X%. came our up Financials, at

questions. with it that, for up to open Todd, So happy

Operator

David Miller [Operator of Instructions] Imperial our Capital. first We'll you. Thank take from question

David Miller

current you great. resurrecting into color see or the in color be maybe XXXX? lot. underperforming could that Sean, that as that category the to then kind your outlook on solid of maybe results. you the going country your talk on And any Any minus current current growth in or rate? would some rate Congratulations about or the any just and of in the quarter, be guys. itself how - growth Thanks quarter auto outperforming Hey, might regions X% a

Sean Reilly

Sure.

I'll auto, little year. Well, but I for disappointing bit are they of bit model think a little a a us. was shifting all in category the think. little of are their number first. one experiencing experiencing And particular, that difficult Regarding is, a what dealerships, That bit auto I is take media outlets business

And pick we'll as plan, spend still and that up. just so believe into that to model that that, continue -- will recover, their I figure they we monitor and

beta we a typical strong. that more think because bit larger regions, I came West, little the lot, in middle spend I'm Northeast national touches Regarding is that to markets the strongest this And the happy in a of was and what haven't little than real and say, seen seeing markets. you're a

strong for the So was particularly X% the on other too coming little X% still good, York, bit, or And got not regions, growth sort plus in the perhaps that bad we example, of some X%, for struggling Midwest then us, revenue you QX. of but in and a forma of pro hitting are before. certainly regions some not on even X% the expect, on other New

answer, You an got David?

David Miller

market one board place, We're great. up with a coming of And our We if are of than per CapEx into track of much number you in that Or it's some board? Thanks realize much. Do just steady sort there because lower then all entrants digital just some maybe over the I $XXX,XXX larger are I CapEx models. time? see holding final overall others. international may. Yes, board. around one kind that's the very the per from per digital think new that players might over boards

Sean Reilly

sized different you Sure. boards. Yes, as mentioned, there's

was the XX or largest to moving isn't example, X. be of range somewhere Our is life, a you brighter, and years. X to They All Performance X, $XX,XXX lighter, the what terms seen performances they around the going use going sorts good. up. happening last are is those life is in it dramatically put XX, that is X, not certainly dramatically things of years more from increasing. neighborhood But as ‘ of the where which less over we quoted, the are energy. iterations as in basically is are digital for X not X,XXX useful and poster, come you've useful dropping the Costs -- in -- is earlier

So entrants categorize so it the come in of more I as sort in performance dramatic cost enhanced more greatly new than would decreases.

David Miller

Wonderful. Thank you much. very

Operator

Thank Bisson you. We'll take our next from of Research. Wolfe question Stephan

Stephan Bisson

I know really into morning. shorter, Good core insights growth get but seems your early pacing QX continues based strong. XXXX? that visibility on Any to in quite revenue

Sean Reilly

early 'XX. little a talking be I to It's guess about

in that think the we'll last earlier, we addition we this longer. in they're than first. year seeing are we're customers that carry do As this, you what commit until in and can to know, X We're say we we Contracts into are coming there. seeing momentum reluctant that committing have I to But year. get earlier the

seeing a customers year. large good whole we're sign. the That's And So in. again, come contracting very for always contracting for earlier and 'XX

Stephan Bisson

digital, performance a been from then there it has on a campaigns for this And drivers. the sales of Is better Or Great. more higher trying has immense and against is price a handle while. just demand? of strong get to on Just function really geo-fencing?

Sean Reilly

And that in my sales, things good break when our driving -- total digital. been right strong has that's a occupancy. picking gut demand But out we for The We our rate. it yield, drive shorter-cycle tells industry, sign we are when quote a very don't that rate me up. by so real we're on

Stephan Bisson

for so the Thanks much Great. color.

Operator

our JPMorgan. from take We'll you. Alexia Thank question next Quadrani of

Anna Lizzul

share really This been Alexia. that the in wondering high. this We just has much for you've cycle of year And benefit on you've question, Anna from And Lizzul you benefit so, Hi. of -- is the for past? why? if the political were why think greater Thanks a a how had seen

Sean Reilly

Sure.

were when better than was to do calls, the the the into came In million. midterm we in As you earlier did XXXX cycle, know, marginally earnings last we cycle. year $X.X 'XX, expecting we which

little already north political. today, book of on $XX of the we're -- in As million we've a got

control spend. So candidates, XX% our ad almost really up a of that agencies that political -- one, we we cycle. calling that's on focused have I we calling lot Two folks on things. it. packs, Number on had calling mean on over

it ad more tat that. have that in our digital for So you than typical want any and message down up they whatever to medium responsive X is other our demands so can we our one. it's a on becoming the two, use in out tit more usually and responsive number you it off, spend medium is product, you it be get a -- to the political can that priority, made minutes, get execute paid then Number way things there. If stretch, medium

that's So it.

Anna Lizzul

in in the Thank of expectation a Great. positive any terms this be And that there is auto, you. contributor XXXX? in can verticals

Sean Reilly

We from slipped the would number from X to has to our to and X% auto hope traditional number up It see. it next book X% back X, slipped, slipped so. We'll to that hope would of it I of book. X% - - number year. basically our has normalize

Anna Lizzul

Great. forward? final pipeline for is M&A How And one going looking question. potential a the

Sean Reilly

Very robust.

good I've As ever as seen it.

have in mentioned, we expect of I letter yet As various $XX we $XXX we under million. But early about about million close year-to-date, stages agreement closed XXXX. to

Anna Lizzul

Great. Thanks for the answers.

Operator

questions. Thank Mr. to you. turn our it concludes That Reilly. back I'll

Sean Reilly

for finishing that carrying Thank Again, you into forward look a momentum for listening. XXXX we very all to you listening. and Thank strong all great. year Well, XXXX. with

Operator

gentlemen. Thank today. conference concludes the This and you, ladies

disconnect.+++ You may now

Lamar Advertising (LAMR) 9 Nov 182018 Q3 Earnings call transcript