LAMR - Earnings call transcript Q2 2019 | Lamar Advertising Company

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Operator

Excuse me, everyone. We now have Mr. Sean Reilly and Mr. Keith Istre in conference. Please be aware each of your lines is in listen-only mode. the we of floor open conclusion questions. for the company's will presentation, the At Instructions] [Operator

timing from actual are involve control beyond strategic of course uncertainties of statements and stockholders. statements financial and including anticipated company, the results discussion, contingencies, the to and which regarding statements including and distributions amount performance, with future respect its In about forward-looking to this cause the forward-looking Lamar to Lamar's materially plans objectives, differ goals, may many results. any may All risks, of which make

you Lamar XX-K/A was Lamar Investors actual required and discussed release has contains documents. Form materially morning measures updated financial section G its by refers second on as second identified on in important available website Regulation to on those SEC earnings of and Form which factors XXXX its by to reports release, that or XX-Q supplemented most is XXXX company's could www.lamar.com. from and the information reports the X-K current quarter on Form quarter results quarterly furnished cause recent this the those annual this Form in call to on non-GAAP earnings certain Lamar's differ X-K. Lamar's report regarding

to Reilly, turn I you would like to Mr. over now may the Sean Reilly. conference begin.

Sean Reilly

call. Thank you, Stephanie. Lamar's earnings Good welcome XXXX and morning all QX to

than QX. pacings of guidance, indicate QX slightly acquisition terms stronger coming In growth adjusted in

guidance higher per for for AFFO QX of full if pacings we provided come at In up, range share. end addition, should in our previously hold the year

expected X% the the than year the at full year. will or first below half lower for growth Expense back in, in half, is and come the in to of be

and including active assets with on Finally, Wichita year-to-date. outdoor Springfield, year new over Smith Fort so front, far it's in million $XXX acquired Saint been in Louis, offices acquisition the an

Keith?

Keith Istre

everybody. morning, Good

growth caused to for expand There of couple had X% the for growth QX We the expense year. on things to guided upper on and the were Sean's expense us Let that - migrate me approximately end to consolidated X% just comment a expense guidance. growth. that of

renewed increased added had One the contracts lease in majority previous transit was the contracts over those revenue in contracts there first $X and increase was revenue in the on component the billboard billboards. sharing in million in The of our was that we our $X.X quarter and about quarter about digital expense. of that expense million sharing several that

we we year. or be out, pointed the Sean that full will think at As X% for below

expense that bonuses year-end half to two basis, those remind of up mainly QX growth consolidated based back revenue was in X%, Just that the on on year, we in was of X.X% experienced to growth the our commissions sales due apples-to-apples everybody last up and quarters. was QX an and

quarter's over So I our Last, times. growth. X.X June debt one alarmed wouldn't leverage was at be XX

Sean Reilly

Keith. Thanks, Great.

Let a few open metrics it of for and then, on me questions. up usual touch the we'll

a quarter the tracking of little XXXX growth the to full more digital of year. we in with the In up units XXX X,XXX ended We're for up terms put air. platform, units for digital than digital our

Our was same-board QX digital performance up X.X%. in

In local, XX% was QX terms mix, of national. sales sales national/local XX% our mix

was a I cadence call, our the that in national last was customer the up a That in we in local QX, was everybody, that for flat back-end national buy flat. noted release, performance. was as somewhat As on responsible loaded. X.X% essentially remind discussed largest relatively would had

year half back customer. do of part, We of loaded expect the better national the in back-end because large large buy from in to very

X%. X%, financial stabilized automotive was up X% was Hospitals estate and strength. and XX% in of actually terms was up categories of up and In business, real up care QX, showing was verticals health

X%, down verticals, looking we're as Sportsbook of terms hopefully was we get and disappointing. Gaming online of for a business. more In they the turnaround were there a tad

for Stephanie, open up it will with we So that, questions.

Operator

comes question with first Ryvicker Our Instructions] from Wolfe Marci [Operator Research.

Stephan Bisson

on Stefan It's for Marci.

your You target. guys comfortable - AFFO your kind Are kind guide of upper of with in level you end the of that you're being indicated what's that? still of the comfort

Sean Reilly

That's question. good a

So - upper you it's The at are really have the based when in pacings we're pacings Right a be QX to on snapshot, looking now, range. reports, at guarantee. moment a end not you're this QX of they are at looking time, cautious the that for they and have patient. always little pacing

we breaking that this that political us have QX. won't had late year, some Last We year. helped out in

caution. of little note So that's a

However, that front, we with programmatic doing on what we have think the we're replaced.

strong So looks guidance. end get as us our to us we QX upper sit to of the enough today, to

Stephan Bisson

actually was next much impact was half? programmatic how QX in impacting of What the programmatic then the second And my see you question. and

Sean Reilly

Sure.

XXX,XXX million a bit we be So at that our QX, XXX give we're In run month; rate a QX, building year. running the it a programmatic a a seems little course book rate of around maybe through take rate run between of, looking month, be is QX, run as million go the to month; X the more. a at would or was and

are So the way I think as guys this bit as hearing from an look little and that's to other and programmatic back where the step building you're industry is book a well. the we and

We're regards have enhancing direct it, as go an While well. and time our ability into programmatic, Channel tapping as we're reference exciting otherwise Clear innings gotten. for us. to to customers early that to we're that the $X seeing made in wouldn't it's

we're excited about So direction. that

Stephan Bisson

- and And and included figures are your for those pacings for revenue in expectation guidance the QX QX? your

Sean Reilly

They are expectation. an

year. collect this dollars calls, help in headwind expectation arrears. will in pacing report, we way on programmatic replace a having and result the because we've in is but expect other of that It's of and in particular that the hits is that we not the actually about will programmatic not us billing where slight As certainly the mentioned come political

Operator

Alexia comes JPMorgan. from question next Quadrani with Our

Alexia Quadrani

the or large of have would that Do ballpark if national for you run rough sense a back? pulled of have hadn't just sort rate what customer been sense the

Sean Reilly

we're the I little would X%, story, flow Channel, moment at book say DMAs. below Clear DMAs we're top That's positive of below XX, ebb stepping Again, where looking bit the of below book. and in of the of of kind a back that top arithmetic. the do and the numbers not posted were you XX% at course, XX tune the time was DMAs Outfront by our are is whole about XX a the predominantly to that in and top and the maybe outperforming there the you know XX top national if are

their and on going on book. of and in bit our what's what's going national divergence book little a is that So in national the

Alexia Quadrani

So a a I - seeing where guess in cities, you big you performance are seeing do you better much have in in performance, larger your are divergence the DMAs? seeing that also presence

Sean Reilly

as the are than Yes. or larger better. because better. some In more tend a little expense particular, thought, that's And and shares, half, Keith in in referenced this of DMAs doing we to resulted growth slightly bit doing our which be DMAs in revenue the those first larger DMAs larger

Alexia Quadrani

in a I that was And already something this going or June? understand June, on national is larger bit bounce July in there softening customers slight that, else back in which

Sean Reilly

$X of just mean, would a book. about bit million I a softening. across I a there sort to million say board, on talking $X.X was just little you're a $XXX of the million

material the a between we be result huge up. wasn't So where we up being difference and where but around would thing, it we in did being thought ended it

Operator

next Our Partners. with Eric Handler question comes from MKM

Eric Handler

relative the you that about talk impacting environment, of economic M&A multiples Good morning the Wonder, a some to if you're anything this this seems Wondered little at more question. is bit it be of above if years. seeing be Yes. might at average deals all and deals. could the many $XXX in to causing prior million thanks occurring in cycle, point seems particular time for it deal the have to

be any you Just could would provide color great?

Sean Reilly

Sure.

the mentioned to Kansas. in transaction run a $XXX halfway than seen past, be some bit through stronger brought rate the and already million and Wichita, yes, I Fort like new Smith, pace was belt that a you've of have transaction Fairway. the markets, half year our one Arkansas, There large was and us little over is under absent that So

used bit tuck-in in pricing has the have to. being though we're that That seeing on the one that What a and multiples was little out, virtually same and front, of to there's that year the relatively just we was that it's an activity about anomaly a been a you're is big. probably the same forward of lot talk year

Operator

with Our next Bazinet comes from Citi. Jason question

Jason Bazinet

such I know there but I that quarters, all for programmatic programmatic cannibalizing part or customer? business? just if you you about of And talking a a a could couple sort citing you're Thanks. month have thing, rate million it run a that's the is typical of describe was of is these wondering, some are $X been improving, revenues of is other of sort incremental guys

Sean Reilly

Yes. Great question, Jason.

So went programmatic this that sure when digital to was in in dollars. about We down of road how a to make setting. make thinking available business inventory it some our rules we set incremental

participating we're first The not in auctions. business was rules

We when an algorithm. digital that are has controlling a our CPM, so dollar into dropped

got We've with the loaded demographics. along pricing our

CPM the a we'll wants, it business. buyer doesn't, the get hits that it we if won't. So If

protect number pricing, caught one, don't an in So that's your environment. auction rule get

is two traditional channels. off from this our number channel to Rule wall

ad allowed services, dollars to and you are buying using if So plug not agency traditional play. a traditional and you're traditional

to digital available shops increasingly customers to that buying digital going this our capabilities. only and So made have is direct internal

up digital it Heretofore, an algorithm, dollar phone. show dropped mobile on if would they into the your

I our you as growing their more where the that to allocation think and we're is internal and look make Now as on agency screen it's digital showing believe own to the I go also internal if buying It's an customers going screens, big more small at going back the they have shops. well trend, up going, direct be stepping Jason screen. model - again, assuming to a to

Operator

Morgan question next Ben Stanley. with Swinburne from comes Our

Ben Swinburne

for to would year-on-year. are lease G&A is those but I G&A were Keith color. called growth. since the - Sean out you ask, billboard the on up, step color indirect, decent Thank you on driving to transit you Are if items maybe any assume a up - the just G&A, on I expense, the those was wanted Just expenses. amount had

Keith Istre

that indirect. is Right,

legal that G&A, fees we and was As worth, million at this, of end into $X mention didn't that professional lot and a I out Fairway of slipped year. last acquisition that far There of the about came a acquired QX. as

have It and a done be required, QX associated G&A. was in was with of acquisition dropped fees statements. E&Y by their that were to that that would fees had financial audit that that lot legal professional of We an in, in other

Ben Swinburne

the half a back slow will growth it bit That in like. sounds

Keith Istre

That's Yes, right. that's correct.

Ben Swinburne

just of I economist for a ability something a any your armchair out playing about market inventory? to the you lastly to Street" "Main use One programmatic cycle. two today digital? there are all is platform. love you've have of I good you you if got the there. questions. out you build all talk close doing or or probably as to the look then, the back the pretty is, this you're guess Sean. And you pipeline for think in today think if the of half, over about And in market GMs static is get and Can that's sort smart your or continuing If softening the just country product it out we're phenomena? at U.S. is, then who times it's And because sense whether either economic consumer digital-only accelerate as this a sense do you to

Sean Reilly

first. Yes. in X.X% that regard, we're chinks up that I'll for seeing Local us Ben. so the in QX in one really and armor was hit not

red today is here. in So through yeah, programmatic selling static is we're pretty not channels. we programmatic, to it a traditional good. digital only. still look as We're inventory With flashing or there sit around product Things regards no - not - now

allow on However, might talk would I working is through a off, to of couple But platforms they they on customers algorithm call partners, inventory. to would there smart it - and may whole wouldn't that our work. are maybe you programmatic, to purchase direct ways - the that for of make call automated trying years. you it working or if on that's a our lot are go but people say working an you be static automated, a

Operator

time. Sean to closing additional Mr. to questions at now the I'd There this conference remarks. turn like back Reilly for are no

Sean Reilly

Thank you listening. all for

replace out-of-home. ushering out an have XX of are off, to retiring who to Before I sign outstanding do years shout her world out leadership I And Anna a OAAA, is of to in the in exciting Fletcher era. of give CEO additional the who at going these shout as to times a Bager, OAAA Nancy is indeed after and new

So with talk next and we'll thank for listening quarter. you that, all

Operator

and Ladies today's Thank presentation. you. concludes gentlemen, this

may You now disconnect.

Lamar Advertising (LAMR) 7 Aug 192019 Q2 Earnings call transcript