LAMR - Earnings call transcript Q4 2019 | Lamar Advertising Company

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Operator

Excuse me, everyone. We now have Sean Reilly and Jay Johnson 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 and timing of distributions to stockholders. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond Lamar's control and which may cause actual results to differ materially from anticipated results. release factors those cause in XX-K/A discussed fourth reports XXXX XX important differ results the Form as identified recent on Form quarter from most XX-Q by materially in earnings reports updated has or that on X-K. its actual could to Company's annual supplemented Lamar report in quarterly Form on and -- this current call and to you documents. those refers Lamar

regarding certain information X-K Lamar's G fourth available required release, to section furnished www.lamar.com. contains XXXX this Investors Lamar's of is Form financial quarter by non-GAAP the earnings which and on on was the website, measures, Regulation SEC morning

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

Sean Reilly

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

few open tradition, then for through financial As I remarks, over Jay address a will it and I make will key to opening to our metrics up highlights. walk it turn is questions. Then

year we and to South nine footprint. Arkansas, XXXX the nationwide North new of for adding was Illinois and states Kansas, Lamar markets acquisitions, the a successfully Fairway, Carolina, Street Mid-America as our solid across and Ashby Wisconsin integrated Georgia,

growth year largely guidance finish came bottom expected for year as AFFO the full for Our and the top top and line to us our enabled in near of per share.

XXXX, stronger revenues. balance from say programmatic in We XXXX, acquisition-adjusted Looking even about our to whatever major for believe a did aided we start. have and incremental at by opportunities political are more refinancing Jay forward will low come fast that. will to we positioning sheet to a our tailwinds growth future historically rates, off have We way.

least for and on release. end share that our the modeling share pro again upper assumptions. X%, forma to for year. is end Those represents building year. per gets the simple we You the for finish once AFFO expense us in our $X that reasonable per blocks growth around EBITDA The based pro the X% through the the guide doable range. million. guidance saw Number an forma for political XXXX three, $XX grow incremental an million. programmatic. incremental million we formula Number guidance year, end to year, $X an point Number the core for million, The for range in sales also XXXX did X%, our us one, top growing of AFFO layer updating press X.X% approximately that to forma to resulting This top follows. of and and Combined, a the million you in in an AFFO pro $X from is in The and programmatic. on did This and incremental we contributions from we political. expect million year, million year, to do $XX X% revenues as two, derived political $XX XXXX Last least a million incremental revenues those $XX basis at before gets of at us the are the as XXXX in of goals move our plus we $XX Last growth expect forward around to revenue upper forecast, view. at look number progress programmatic. million toward end to do $XX from of we on anticipated

the a outlook getting our strong for start to off for we full year. anticipate Jay? the Regarding toward QX, targets

Jay Johnson

And fourth million increased year. AFFO Acquisition-adjusted had to We in to consolidated share. acquisition-adjusted quarter. fully per EBITDA as and Thanks XXXX. quarter X.X% everyone. a holding diluted its fourth the was lowest $X.XX level growth, in increased with for morning, quarter Adjusted solid compared million the while growth good X.X% EBITDA to Sean, XX.X% expense revenue $XXX.X the $XXX.X

X.X% an Adjusted AFFO ended year, EBITDA X.X% was and XXXX. which increased increase. And EBITDA per $X.XX, adjusted the our revenue an the AFFO full billion. at over of $X.XX to increase Both $XXX.X diluted X.X% the fully year For represented high was range. share of million, end

expense in the particularly year, in in these We the of the year, Expenses expenses which elevated during only we and quarter. On quarter, activity. the of first third primarily fourth half consolidated X% were increased would half anticipated quarters. moderate the side, due acquisition-related expenses the first the back to in experienced both

a expense X.X%, which line historical levels. growth result, year was is our full As in with

$XX for comprised and spend capex $XX approximately of Moving in $XX capex. the quarter over approximately million to growth million million, capex, maintenance total was of

of capex we at million. growth $XX of finished for million $XX of For roughly a total $XXX maintenance the XXXX, and year million full approximately

into we of million in approximately capex $XX growth capex total million; anticipate of maintenance. and million $XXX Looking XXXX, $XX

I would our on sheet. touch balance now like to

Our remains and excellent sheet capital debt both to strong, in access Lamar and markets. the balance enjoys equity

EBITDA, The senior S&P. and credit carries net under $XXX Our to debt of ratings with had secured ended hand. both available million as total we And facility. our under of on investment-grade and liquidity, times defined $XX Company Moody's credit debt revolving leverage furthermore, our million facility approximately comprised of quarter million of X.X from $XXX the cash

with of our the sheet. our took risk Subsequent cash to our our debt, to and within and lower maturity a reduce priced potential covenant gain to exposure favorable objectives: liquidity In billion constructive interest; January, backdrop additional to floating enhance of Company mitigate revolver; any very and extend under during overall debt at profile advantage to an key rates; including finally, the flexibility and amortization increase to strengthening downturn; structure. terms interest refinancing refinancing debt cost our following debt further of our $X.XX we quarter-end, capital with the markets, balance launched

bank the group, revolving our XXX a from credit million XXX of through dedicated points. increasing amended points and bank support XXXX, commitments facility million basis and $XXX the spread extended from to LIBOR $XXX we over With basis to reducing

time, XX-year senior issued offering eight-year rate lowest high of in notes of for $X million million addition, basis at eight-year at at tied term $XXX of a the X.XX% prior record a that points, since consisting plus the to B in the global new XXX XX-year two the coupon while seven-year yield spread senior the $XXX lowest And the X%. crisis. and In bonds, the financial market. loan X.XX% last, The tranches: at market an originated of $XXX market offering we in loan notes billion represented institutional we million LIBOR

our prepay B accretive term Proceeds with $XX amortization A, used finally, offerings of basis, in in as million as which the of in loan to a of Altogether, $XXX term were million refinancings million XXXX, this term cash like and new billboards all from the redeem or amortization eliminating redeployed $XXX $XXX scheduled savings, loan to our due well senior $X million in digital. static existing XXXX, notes interest our million result eliminating refinance an will to loan B year. X.XXX% be converting to $XX acquisitions interest-only million over another and activities more can on amortization

growth. team, in of pleased faith balance have to are The this our million a debt and added the markets future and testament to an non-cash transactions incur related management for Lamar back position the $XX.X Company will the expects as loss income. refinancings, QX a that for are be on extremely expense execution. These Sean? in well capital totaling capital sheet, our which business adjustment best-in-class with markets extinguishment Overall, we net to the to

Sean Reilly

familiar open up a Thank on I'll few metrics, questions. the for you, and then we'll it of Jay. touch

our and continues incremental platform, digital good our provide growth. to On platform digital perform well

you built X.X%. You board same When the would growth up board saw was for additional same that I up platform X.X% the release, full digital greenfield, in was note or the even we units the layer substantial. acquired the performance more year. the either that in

ended of faces those were the the an increase by were the year. XXX X,XXX faces digital We air, new-builds with and year approximately full acquisition. of XXX for in XXX

goal approximately as XXXX. pace pick XXXX to Our activity XXX in units new-build shooting in up we bit for new-build for are is a the

local mix are purposes Regarding A X.X%. in is national programmatic X.X% and QX that in XX% the we in to local grew was virtually XX% local all this word our of and so and reporting. it numbers, lumping grew of and national/programmatic. with sales, for them together programmatic national fits type QX national, how mind, And national/programmatic on and

year, plus by the X% logos, is and number, That, plus a doesn't full billboard-only local the For X%. took way, include grew and you basically both national, they transit airports. if and

fourth Quickly the looking for hospitals, verticals, up amusement, entertainment quarter strong service, financial, insurance, included X%; up at up sports, up XX%; X%; verticals up X%; our and and XX%.

But us coming. great front, We that so surprised was that was not the saw the On one down automotive X%. vertical retail.

That off January X.X%. last to contributor major quick good retail, approximately and a cost on about for to negative bit November us little through retail positive start was X.X%. clicking quarter. is, in year, it negative of miss A Then, December, a as to X%. October $X.X at is color the along to it a news turned up up of was The and million better slight swing our retail was

is feel we that in So to going not like us be letting category XXXX. down

So open questions? please for it would up Olivia, with that, you

Operator

coming go ahead. Our with Please Instructions] is first question Stanley. [Operator Swinburne Ben from Morgan

Grace Menk

on this Hi, is for Grace Ben. Menk

-- being this contributor. impacted retail growth the to season? week less Is a mentioned at by You that major a quarter all in negative one the -- holiday having or contributor the to

Sean Reilly

could it. That have been

thousands retail have customers. local and We thousands of literally

you a where but we a as And will. to bit for can one we're seems it forward don't XXXX, of last so, if factor, that And was that year. know into I I again, it point back hiccup, be to was to know retail most of looking holiday do

along was it X.X%. at retail I going and As up up clicking mentioned, October, X.X%, was January into roughly

that the that described, hopeful as hiccup. we're So was, I holiday

Grace Menk

if Okay, XXXX. one wondering got in quick on just for And touch Thanks. I'm your could D&A you. expectations follow-up. then, you

Jay Johnson

Sure.

amortization at side $XXX million depreciation a on we're million. of the what $XXX So, and approximately and total looking is

Operator

to there Thank before that we you. remarks proceed? any Were additional question

Grace Menk

No, thank you.

Operator

Thank you.

Stephan Research. go move Wolfe now from Bisson question our coming will with ahead. to We next Please

Stephan Bisson

on revenue Good put for all wondering, QX point you much so on XXXX Thanks the was a I guidance. color of the the could finer a expectation? bit Sean, morning.

Sean Reilly

Stephen. thanks, So

we're to One really longer specific QX notice be or feel in estimates. we're good you're we giving how to acquisition-adjusted do no about So thing pacings to going QX. going is, going

So we progressing the is year. the a REITs on strong said, is you AFFO hitting that QX of beginning goal. what that the of start at as get range tell do us share the we're We're guide I how what to we year, to off With per with to we're in then, to going going we're most as do think to through move And toward the mentioned, goals going we terms front. going to outlined. guidance that a

Stephan Bisson

then, this at point? pipeline like you that And does what includes look I And guidance M&A thanks. that? the don't M&A. confirm Could think Great, the

Sean Reilly

doesn't No, question. Good guidance the include M&A.

look backwards our You'll see release pipeline acquisition-adjusted do our The familiar we growth, not XX months. numbers. as over quarter a plus call very certainly M&A last that is what include at first happened a the will as-reported

and awful Over XX had just fold-ins. $XXX activity variety the a last on an lot months, of million upwards spent of new we markets and of

the activity. it of I as categorize back So pace would to that prior was it sort all what to falling

Stephan Bisson

much. so Thanks Great.

Operator

Thank you.

to will go Anna our Lizzul We J.P. go next next Please with ahead. Morgan. caller,

Anna Lizzul

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

the terms wondering, Just digital of much is from and digital acquisition of billboards, revenue in your percent your digital of now? how billboard conversions

Sean Reilly

base on, believe billion. year, total digital in that the was revenue a $X.XX $XXX I you we million know, as platform. revenues did Last approximately And across of

what approximately, XX%? is that, So

Anna Lizzul

during retail question believe being you on quarters? in next thank the will quick XXXX around holiday one a just season. the follow-up of Do then, so you turn that And in the in of couple Great, color contributor much. negative terms

Sean Reilly

going early Our indications is that fine. be to are retail

that and As the have book, I X.X%. in it was mentioned, we January, up

of of USA would street retailers. be retail us was couple to that and a they'll again, our be retailers, stable. it's spend what thousands their that thousands -- describe our that as of seems not It's big And and and hope it you month sort just healthy it's So aberration. is will national main

Anna Lizzul

thanks Great, so much.

Operator

Ladies today's for Thank may joining, gentlemen thank you, now and conference. this disconnect. you you conclude will further and with questions no

Sean Reilly

Thank to you in forward look we visiting all and May.

Operator

day. great a Thank you, have

Lamar Advertising (LAMR) 20 Feb 202019 Q4 Earnings call transcript