LAMR - Earnings call transcript Q3 2019 | Lamar Advertising Company

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Operator

Excuse me everyone. We now have Sean Reilly and Jay Johnson 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].

including this including may financial any statements goals, and of regarding forward-looking performance, distributions course the plans company, to the about objectives, to the stockholders. discussion, timing make Lamar statements strategic amount In and respect of with its future

All involve differ to materially and anticipated results. risks, contingencies, are of which results forward-looking Lamar’s cause control actual statements beyond and uncertainties many which may from

in differ important and identified cause that call Lamar materially third from company’s factors XX-Q, you discussed Annual its Report release, to those has Lamar on as actual quarter those X-K. a by refers to and Form on could supplemented quarterly this recent earnings Form the reports in current XXK-A Form documents. results XXXX or reports updated most on

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 third of on Lamar’s Lamar’s Regulation www.lamar.com. non-GAAP to SEC the information available

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

Sean Reilly

morning Chantal. everyone welcome Lamar’s QX, to Good XXXX Earnings you, Thank the Call. and

AFFO to and QX we share able Consequently all X% grow per X%. and was AFFO lines every over were over strong virtually across metric.

execute to digital and on platform expenses, well optimizing continues team on Our our and controlling on integrating acquisitions programmatic channel.

X.X%. at see Looking to for mind same in the around in last QX, are adjusted QX. as X.X% ahead, call comping coming growth acquisition X% Keep we QX against we let’s it growth the

our AFFO the anticipate, will guidance. of of at the year the we way Assuming share top-end in we QX comes per end

in one, this which XXXX programmatic believe and channel provide be I tailwind year, additional was two; next that looks XXXX. an will a on good. set the word acceleration Jay? headwind anticipate early up we an number tailwind. a our year; will slight for political, Number Finally,

Jay Johnson

morning, and everyone. Sean, good Thanks

to congratulate leading and join an look as during to I for First, of like would through privilege CFO. Lamar, it say his Keith to and I finance forward career organization company. what period time getting our transition year. with at end spending exceptional investors on like honor and to and the this the is Lamar more the to thank him cover would knowledge know personally the I an analysts

I was of excited for its its team, space, as the because as growth. advertising and to portfolio, scale should outstanding join the balance strength, size financial Lamar sheet continue company out-of-home high-quality position of to and which well all within

consolidated of primarily due revenue in with we As while Sean Consolidated year, holding in adjusted under to elevated expenses half activity. third slightly acquisition accelerated, of Acquisition the the indicated, expenses an control the first first particularly had quarter. growth a increase good only X.X%. were quarter,

and of year we We back moderate continue anticipated the moderation the experience in would half the that these should in quarter. to fourth expenses

mentioned As year the X% for growth previously, levels. expense full historical we around in to consolidated the are forecasting come

Acquisition-adjusted or EBITDA X.X%, X.X% share. quarter, while million grew the to $XXX increasing accelerated $X.XX AFFO also in per

$XX of the expenditure spend $XX $XX CapEx. of comprised million CapEx was maintenance front, the capital for of million approximately On million, total growth quarter and

full $XXX year, approximately the million. of $XX For a for growth CapEx total million million of $XX and maintenance we expect of

to touch over balance the would turning Before Sean, call to I back like sheet. on our

with net X.XXx equity to the markets. quarter in The total remains of capital, leverage debt-to-EBITDA Our as under defined senior company credit Lamar ended both debt excellent strong financial the access facility. position enjoys the as and

under $XXX of million million Furthermore, credit we and million had comprised of liquidity, available $XX revolving facility approximately of cash-on-hand. our $XXX

until laddered December In of addition, schedule, the with company maturities has a maturity debt XXXX. well no

working Board. of on the and the company. forward continued look be with I all, to Sean? to success to thrilled you to am I Again, contributing

Sean Reilly

Jay. Thanks, Great!

familiar you’re touch I’ll questions, metrics our that with where I’ll digital with. deployment, Before for I performance. same-board are open and up some digital start on with we those of

the QX XXX on ended end of up will acquisition. number be ones those a our put by XXX approximately and includes the XXX We’ll platform, with year we added by in air; new own that been X,XXX up about our added will digitals units acquisition. organically, to We have at approximately

to Same-board digital performance pleased up to we’re continues number. shine; X.X%, it’s that so see

book In our terms book. our XXXX was national, QX, local, of of total local XX%

that up all is national and we Our our of X.X%. Note as programmatic on because was was growth that up only for also programmatic book. national Local those are we was numbers, note for virtually is national X.X% together and now, billboard book total XX% space quoting and national/programmatic that speak.

we’ve acquisitions, acquisitions. so million about year million we’ll or that to year-to-date in queue the $XX got In terms $XX million by $XXX We’ve in of close closed another end.

the $XXX XXXX. we’ll end roughly $XXX year for million in million So acquisitions at to total

of The year. X%, this X% of In which up The QX XX% year, QX, at over XXXX. and strong terms gaming, financial service of XX%, last verticals, also soft came insurance on to for hospitals us. down insurance up was shine continues in one up QX was up in really spot X%,

with that questions. up we’re for Chantal, So it happy to open

Operator

[Operator question Thank come will much. Instructions].Our from Marci you Research. first Ryvicker, very Wolfe

Marci Ryvicker

a QX dig this there is forward XXXX? I going or want visibility into to for for to either try programmatic understand deeper was; little how of any and contribution a big if

Sean Reilly

Marci. So, hey

nice was year quarter. at know you to programmatic – contribution sorry, $X.X growth. number million, that So a this which organic was our I’m QX This for

arrears. change. a number and exactly that every QX to be should We going predict four programmatic is harder It’s weeks it where some to bill land. little For two in

of the XXth don’t we every month. So until and XXth it see

We’re mind of but and out-of-home. inning getting this keep programmatic it, at first little in the predicting is better a

growth, to used into and of it. We’ve seen hope be getting so momentum quarter-over-quarter So good all to we’re XXXX. that kind able we to carry

Marci Ryvicker

completely And incremental? consider would this you

Sean Reilly

we digital now would It’s relatively highly and we new are confident Right have are inning captured. again, that a numbers not otherwise dollar it’s first the small.

numbers the and are as when XXX% small that confident that feel incremental. it’s we So

dollars right now but platform. from, are where digital get these bigger, As dollars the our to are coming be not would numbers otherwise we’ll coming have that see the to

Marci Ryvicker

just across acceleration from sort follow-on, wondering the And fits digital. it’s QX that If last from? non-healthy of as you is basically to Got if broad-based, on we comment night? it! Outfront same strength where so like coming did where between some then and the healthy comment in seeing it’s a category, And QX everything, Any categories; heard not you categories. then general including Thanks. from nice on unit auto in are

Sean Reilly

was would board. I so say the across Yes, broad-based strength the

was They in. nice a to so it and the very XX came sophisticated the category are insurance DMAs, for and below was know healthy They You sign top they buyers, the see good that buy deep. buy way us. also

It’s touch X% our a it the auto, on didn’t book absolutely was wasn’t I quarter. it flat way; for either of because standout and flat.

Marci Ryvicker

you. Thank

Sean Reilly

Yes.

Operator

Thank you.

Our next will come question Ben Swinburne, from Stanley. Morgan

Ben Swinburne

Hey, good morning guys.

Sean Reilly

Hey, Ben.

Ben Swinburne

business, Sean, bit of bigger the in could a regional of the of little to give to and the sense of patch, your is markets the us around just of business country how sense of sort coastal footprint? much you performance give middle oil us how sort a trending compared markets the

Sean Reilly

describe States. Seaboard of but the year; small the coastal. general, central say and part it. the I the pronounced Sure. I’d there, and United that’s The than would Pacific was how big the in Seaboard that between marginally than say, divergence performed first still Atlantic half less it’s stronger I of would the

Ben Swinburne

sellers’ XX months, months out to to of that’s look the six on of pipeline, just the are then QX? heads wondering, have rough the side. I’m point And the OpEx just describe just continuing active of on for how been couple Okay, sort of this acquisitions? you on trends a next where over in financial And helpful. guys Any drive you sort then front. accretive at if quite sort you would terms guidance acquisition and

Sean Reilly

Sure.

my we QX on take the like holds side, On the That was would around a in what the the strong this pipeline a little I of would of would up. if looking be said, give year, tuck-in OpEx next it acquisition traditional front, sort year look anticipation QX. out you million should And pretty activity. for $XXX or our that mark sort come bit consider know

I think at come as X%. year Jay for mentioned, in right around we’ll that familiar the

Ben Swinburne

Okay.

you. thank Okay,

Sean Reilly

Yes.

Operator

David Our you. come [Operator from Capital. Thank Imperial Instructions] next Miller, will question

David Miller

Yes, hey guys.

pretty questions guys can wanted on next ask, move to analyst. you the I last that so So analyst to the the all asked much

Sorry, you. Thank about that.

Sean Reilly

David. Thanks an That was easy one.

Operator

[Operator Instructions] Our JPMorgan. come next Alexia from Quadrani, question will

Anna Lizzul

for Anna on is much for Thank this you question. the Alexia. Hi, so

do of you can terms acquisition think wondering few Just revenue where penetration and in digital much years? of your of billboard digital from billboards, that digital the your and Thanks. now, percent next in go is conversions the how

Sean Reilly

Anna, question. Hey, good thanks

billion to our So or million is book it this at year $XXX around be going come of going total of somewhere book north let’s call to $X.XXX in business, and in so. the digital is

try give as So can. is going digital as fast take to and that XX%, or we’re grow today we XX% to

ways lots that. where In terms we of to there’s of can think think about it go,

For digital total example, in is the over XX% U.K., out-of-home. of

a tends that’s by digital But have that out the you building being that the room the goes larger fact be to that lot it out-of-home we footprint. Now case, digital. to transit a show on our driven of percentage running of a probably lot just of

of folks, traditional mentioned, to X,XXX say I’ll that we’ve indicates digital them the That of I anyway. got got somewhere spaces lot I XXX,XXX We’ve also they do of are in it, and it only to because hesitate running sort as misinterpret sometimes today. of this or but billboard a neighborhood X% room. about

going as So can. we absolutely we fast grow platform are to that

Anna Robinson

thank you. Great,

Sean Reilly

Yes.

Operator

very At in the have much. Thank queue. questions further we you no this time

conference back like So to to closing turn I Sean remarks. for would the over

Sean Reilly

forward for look everyone and to listening, in thanks Well, visiting you we with XXXX.

Operator

much. gentlemen, concludes conference. Thank today's time you, Ladies this very now this at and

lines week. great You the may your of a phone have rest and disconnect

you. Thank

Lamar Advertising (LAMR) 5 Nov 192019 Q3 Earnings call transcript