LAMR - Earnings call transcript Q4 2024 | 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 any distributions to stockholders and the impacts and effects of general economic conditions, including inflationary pressures on the company's business, financial condition and results of operations.

All forward-looking statements involve risks, uncertainties and [ contingencies ], many of which are beyond Lamar's control, which may cause actual results to differ materially from anticipated results. release factors those cause in XX-K. discussed fourth XXXX important differ results the identified recent quarter from most materially in earnings has that on actual could to company's annual Lamar report its Form and this call refers those documents. to you Lamar

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

now like Sean would sir. to I over turn to Reilly. the Mr. ahead, conference Please go

Sean Reilly

Thank local Good ended Lamar's XXXX [ programmatic way. the and aided growth and We QX positive a welcome QX, note. Revenue again, leading you, to Bo ]. on accelerated Call. with XXXX political Earnings from morning, by

revenue For all increases with X.X% transit and up of acquisition-adjusted airport. business, logos, on across QX to basis outdoor, was the quarter, compared XXXX, our of lines an

X.X% on grew EBITDA the acquisition-adjusted basis. same

AFFO share end of of delivered guidance $X.XX revised we original the we at result, end XXXX. the the top provided above guidance range $X.XX for the $X.XX of full QX a of top our above that As year end per and

bolstered full a us growth to per increased the all by allowed which our our XX.X%, X.X%, of improvement share For EBITDA of increase acquisition-adjusted by in of X% AFFO growth slight and revenue and XX%. year, EBITDA X.X% margin distribution to

growth. like tough another anticipate of up of [ a firming we Local is it remain ] after XXXX, about years. year think we National solid, sales As and feels couple

in $X.XX is expectation of expenses. revenue in share AFFO guiding are within for acquisition increase to a that in operating range guidance release, year an you As the Embedded saw the with the percentage of range $X.XX. in similar per adjusted X%, growth to we full

announced show had that for year, run that revenue sales quarter. pacing be picking up as our the but an growth due rate unfolds, to leap in and significant will we XXXX more the share. $X.XX year Year-over-year Recall night, increase our the growth a of year another last per in we extra to modest first is day last dividend

Back to QX.

In addition of and insurance Buildings health government care nonprofits, were while Constructions service, political, & and categories weaker. and included strength to

billboard best particular the decision XXX us of in local is X.X% units confidence our up the with new year business, gives digital for new nearly deploying X% of XXXX quarter. in nearly X.X% new organically. grew increasing led both rollout of displays at it strength least units or the XX%. That quarter any growth, the which For programmatic, course, earlier -- national/programmatic and in was a XXXX in growth $X quarter QX, the with goal that the same-store versus right same-store including to the Digital, reaccelerate way million of

We add will, as of displays in through digital well course, M&A also XXXX.

to acquisitions in relatively balance our As activity $XX be could in now, ultimately million focused a sheet. market own the our improving in We spent even we year in tempered it say and deals on We had million further you know, we I already anticipate XXXX. If that XXXX, was more more about I on that. active as strong about quiet than XXXX. it count would in $XXX call

are out-of-home. star. platform $XX million the for as our our not It the million $XXX accustomed million released. this divested we received T-Mobile the seller a in escrows earlier leading world. all this Now the in of to We to of of from we're interest in sold earlier for more buyer, investment I investment for noted But XX% in as acquisition was stake, want a release, to with come led paid us. this who once in programmatic T-Mobile M&A successful Vistar ], Ross being Riley part we We a Lamar. $XX XX% Media, and Vistar year, month for XXXX more [ due resoundingly their

more Vistar testament to proceeds the to say Vistar powerful have brands to communications X I the a marketers is our faith about sophisticated plans by with the that their in is will best note the promising medium of Jay most future. for want and known decision consumer T-Mobile, out-of-home acquire but a around to

they can out home to insights that Vistar We market are and to take of and data heights. utilize programmatic confident new their

Lamar say I it XXXX. across land Finally, Jay, want enough. for to turn work before thank to dedication hard it their everyone and in I over can't I

we We in in to together wait will best be accomplish see and team have more what to able XXXX. can't out-of-home, the I

Jay?

Jay Johnson

Thanks, in in are continued EBITDA Sean. and in everyone, of quarter more. Growth quarter. you Diluted $X.XX and X.X% for joining adjusted AFFO. fourth you XXXX. across versus per with results, increased AFFO solid I with quarter AFFO and pleased had couldn't the Good We fourth $X.XX expectations the thank which share exceeded us. internal revenue, agree a fourth morning, to our

In the company third high we last first AFFO addition, which the the year. following increased ended our quarters revised outlook, and end the of both above year

in estimate in company's obligations, asset XXXX. growing In ARO. expense X.X% the due for the retirement flow over over also $XXX.X [ quarter This margin growing in Adjusted $XXX.X EBITDA million to amortization QX was in to expenses, $XXX.X million, in depreciation compared X.X%. quarter, increase cost which growth the and a ] million, Despite primarily quarter operating levels. cash XX.X% included of increased exceed adjusted quarter, and was Free XXXX, XXX%. calculation was of held improved the the to continues at pre-COVID an revision the for EBITDA strong

to and billboard during restore an led on which the annually ARO quarter. our expense remove the these condition. accounts and retire has risen cost our in the and test sites increase for We depreciation ARO and dismantle Lamar's obligation to over XX,XXX to plan lease assets to substantially, original structures estimate amortization

noncash and the expense not item EBITDA does AFFO. company's a impact or However, is the adjusted

X% basis. prior For expenses Operating expenses was an ago. an pleased was were acquisition-adjusted EBITDA pressure Adjusted year. only increase revenue $X.XX the steady the year, grew which acquisition-adjusted year, points XX.X% difficult billion increased for We year acquisition-adjusted EBITDA X%. expense of billion full $X.XX see expanding hold $X.XX X.X% margin comparison compared X.X% margin represents on against full side. a which approximately the billion, XXXX the Adjusted a on given upward in XX to increased basis versus to to

our per AFFO company The full $X.XX of share, top revised above was XXXX guidance. ended diluted the year which end with of

short-term XX, AFFO per increased The XXXX. driven a X% December in was ended and months to full also pause and interest with flat cash interest remaining faced XXXX. share rate by acceleration hikes. both compared the relatively from top interest that XX we diluted headwinds significant in the We line, rate For growth XXXX and benefited in in year year AFFO last subsided XXXX strong

and XX% approximately in to and regional similar in Local billboard and for the XXth XXXX period of accounted sales growing same QX consecutive the revenue quarter. for

and pre-COVID This which the in local from group. last COVID-impacted first exhibits in core year-over-year A quarter the in regional performance consistent decline we and local quarter prior peer a the differentiates to In our XXXX. saw quarter period our of sales. company resilience the was comparison in XXXX advertising the year business of a fact,

$XX $XXX.X was the maintenance Total Moving And full to totaled comprising year, $XX.X million capital for expenditures. including million. quarter spend maintenance with approximately for CapEx. CapEx of the million, CapEx million $XX

maturities until with no balance have well-laddered debt a our the sheet, we B schedule loan maturity for As in XXXX. term

years. approximately flow distribution interest A billion of and total year, Last maturity substantial consolidated have to overall weighted and after $XXX of is Term we We cash in debt under million. our used a the debt currently outstandings debt average repay a our X.X%, weighted amount by with average rate reduced $X Loan X.X

quarter defined of in total ended leverage our which lowest EBITDA we the credit As company. level the the for debt to net remains facility, ever amongst X.XXx with

with debt Our against ] Xx maintenance in end, our X.XXx respectively. quarter X.Xx, of [ debts was are fillet covenants and at secured comfortably we current leverage secured and debt and compliance and both

the an acquisition more As result our over $X billion. company the well on to a with well balance normal sheet, capacity, resume is of investment activity focus positioned

deploy we remaining while ] debt Xx addition, or of end have EBITDA. net our high ability the this capital X.X total below to at In the of [ to to range [indiscernible]

Our and equity to access as enjoy company debt the continues to liquidity capital the both remained access capital markets. strong and to

of $XXX in under million we of comprised hand liquidity on million total million December available and As of $XX.X $XXX our cash just revolver. had over XX,

and we post-closing Lamar million subsequent XXX% the Media, had receive Sean end, million additional we conditions. an as a sale for following As in which company certain a to from Vistar mentioned, acquired consideration escrow investment. T-Mobile received $XXX of XX% $XX may quarter

federal taxes approximately investment facility, revolving company balance used REIT initial was a Proceeds sale ] gain income our a [ total the from state credit prior the $XXX and Vistar is is recognize taxable return revolver is and of our to the the held outstandings taxable were REIT. and investment, to gain Xx current in The will of on on our the distribution million $XXX million. repay million The within $XXX consideration to our to subject subsidiary, transaction. the over under and

taxes to to use [ a distributing intercompany loans ]. repay of [ REIT, to from part after portion of REIT As funds the to cash ] the TRS the the plan

further additional REIT, We at the tax income. will to taxable reduce also which intend deductions utilize our

our we AFFO range AFFO in and X.X% sale of this special per with of As $XX estimate In to morning's over to a we in year-end. year be result, Vistar be at a guidance the distribution XXXX. share, million will $XX X.X% associated provided full million the of $X.XX currently reflecting $X.XX release, to press form growth likely requirement to distributed dividend

we line should slower X%, At the XXXX. and operating about expect guidance, of grow growth expenses midpoint in of top

included [ guidance. did of in we have are As ] cash assuming purposes year, remains flat interest and our last million SOFR we $XXX for

for taxes more $X than to projected come are $XX million. is at Our finally, which maintenance the last CapEx XXXX, anticipated year in in $XX be to approximately cash budget And is year. million million

resulting XXXX. at Directors and the dividend QX distribute On regular represents distribution a at Yesterday, $X.XX to yield of closing sale. of from an excludes in X.X% Vistar we yesterday's price. dividend share any per share stock our a Board per annualized quarter expect $X.XX least of required the basis, of a first dividend This approved

of the based we performance strong look approval, the our taxable finish on forward quarter is fourth XXX% a are subject As reminder, Board to dividend XXXX. dividend distribute in policy with our to income. taxable and our strategy and executing pleased XXXX, our company's to remains income we to Again, and on

Sean. to I'll over And the turn now call back

Sean Reilly

some start revenue through came go I'll the of was Jay. Coast inverse by ]. I'll relative in at pad our the . Coast paced Northeast at side. familiar complete strength QX Gulf that regional paced on relative what came is the Gulf and Thanks, [ weakness. Northeast was up which stats. with the happened region, up when X%. Interestingly, struggling the in last a weakness. company and year the of X.X%

million in our million $X.X to XXXX. represented On $XX.X to QX. QX book in political. for QX political of That compares

of For as the times, the million. in to about to $XX.X late. political tends QX, million, $X.X year, many full unknowns said I've in came as political, some we impact There's political at think XXXX's break compared replacing particularly

have know that bought how much would otherwise don't out $XX.X customers of we So the space. crowded that

how know be is year. strong We don't going also political this to

that's terms in So stay our of guidance. a tuned

of units. units digital the in We air. X,XXX with year digital number concluded to on [indiscernible] the

increase XXX. last an or number, As compared was which year's of X,XXX to year-end

deployment XXX. XXX, year As I we ramping goal our at neighborhood the of is our stretch say, something digital mentioned, least this and in anticipate significantly let's

a was XX%. Same-store of paced story by up up which little was X.X%, QX, revenue in good again, programmatic, north a

the same up X.X%. was board And digital programmatic year, XX%. up a revenue little over was For

XX.X%, good QX down For that's with national, X% X% give of national for QX our to budgeting XXXX, XX.X% up off was XXXX, mid-teens regional over for programmatic. Local, take, up, local book, represented local programmatic to or start we're very at of be a national. and we're

QX though regional Local a was X.X% story. and was up national/programmatic different was X.X%. rebounded. National up

as improvement degree national we and the up move I got QX, improvement, As year comp difficult full us. same year. flattish we be the into we It's or take, not through with give to has a QX sequential for going sequential modest as is to mentioned, anticipate the move as

X.X% -- service/government, relative of care, strength, and mention I up service, Categories insurance QX relative as Building XX.X%, of categories and & relative mentioned, XX.X% down up and up health public down weakness, Construction XX.X% X%.

comments, it that's for for happy open questions. Well, we're it our to up

Operator

McVeigh go of this morning Instructions] . Cameron to Morgan Stanley.. first [Operator We'll

Cameron McVeigh

seems of up Curious was are it's color a And ad driving if secondly, the driving acquisition-adjusted expected any it's you revenue good It Is estimates. . And lower higher helpful. turnaround by view, most be to of expecting guidance then that's a perking you Amex expect a hear driven believe more may if vertical this? be spend, 'XX. said national there? your X% broad-based? bit expenses? anywhere, ERP maybe you that And income. net to what corporate the Street be AFFO function Or growth in below cost or Any the specific or bit. XXXX there in would I

Sean Reilly

Sure.

with So the let's AFFO question. start

net we that the also have [ [indiscernible] recall year there note contribute in expenses, are this mentioned, couple conversion. year won't we our peak of we I will this -- Jay not have headwind CapEx, So a year. remaining a of that ERP for to slight would that income -- The our as growth. benefit and contributed last things are

a and corporate we around at been you next as move declined pretty see our [indiscernible] conversion QX continued we've And expenses expenditures get we significantly. into So through year. until

. primary the So for do those mentioned little right as the we're work we yes, are as dollars. to QX, ingredients in going is growth, to softer I [indiscernible] us, going year. to then guide. through the move accelerate then replace think And QX and of be quite to I and course, nice. a political diligently the look We have now, those in

Jay Johnson

-- Cameron, to about year. recall, as a the then it's and have color and between muted you last And CapEx just little activity And also, Vistar had we [ $X.XX of there ], loss headwind. a acquisition

basis, and look you year basis a acquisitions actual adding a -- at [indiscernible]. typically about forma on if usual points as little XX So are pro this

Operator

JPMorgan. Thank go you. to next We now Karnovsky David at

David Karnovsky

comprises I [indiscernible] you assumed then you the but don't you thematic there? to of million figure a Should that pipeline remarks, M&A. anything of assume could kind . ], service potential $XXX we pin [ I in if sizable you guess bit can the Sean, I prepared know means right don't more for T-Mobile now. speak And that if know

Sean Reilly

Sure.

sizes. from ad. focus so say, So yes, retiring And $X selling. or in to gets are an pry the deal are -- XX we on There's and $X coming is that put last Folks wanted many Lamar, we we about out there's the And know got They gamut it that pipeline some of the that a million. that [indiscernible] okay, that happening. M&A XX when that to to that to we've $XX year are then lose. million, work that runs term out couple are million the hope that that of range wait again [indiscernible] thinking now in we're sort at

we're where Lamar year activity tuck-in active So typical it's, good it's a that being aggressive. sense, in of and

is an an that small marketing. very And were has they And as T-Mobile. They I only think really entrepreneurial out-of-home They is they think out-of-home understand love global what's I'm they out-of-home actually going landscape incredible It's in aggressive. brand. Vistar at in, it. T-Mobile screens. -- have position well. jumped company. of the They on and looked -- excited a and and leader. then business have actually about a saw And with the Vistar I that They clear digital bodes

by have the And insights providers. of that understand unique they marketing. premier behavior nation's also they on based X consumer into the access to have being They data cellular

be the country. owner the industry, digital of large-format for well in good us only can which network the bodes it for largest as think I the So

Operator

of We to go Wells Osley Fargo. next now Daniel

Daniel Osley

some the the you When there? national your like are of Can think lagged recovery national comparing has that behind peers, growth weakness do why unpack be? may drivers behind to us structural your it there And bit. . looks you any help a

Sean Reilly

DMAs, there's Yes, in I National it York spend OUTFRONT the New and of consequence natural particularly our say, as, is or of tends Channel. think footprint. Clear top that. focused to to footprint X not L.A., some Part as Daniel, robust is the our be truth where ad

it. of little In they to with the the entertainment So is do of category, movie bit also when at that categories recover. particular, how the has you in out coming look driven and It a strike by recovery prior year. category the

of category, you L.A. They particularly in tend particular, And footprint best to to The that more get get entertainment have do. they on and in of much business when tend than look L.A., OUTFRONT, at the distribution they those outdoor probably and we focuses dollars. more

Daniel Osley

if I yields, at billboard board On you've occupancy high been That's And year. in the through helpful. your follow-up. a pretty across sneak can running rates

So view just you environment price. continue today I the think about how and pricing your drive to you how to wanted ability hear to .

Sean Reilly

Virtually Sure. Daniel. peak this last would drive Yes, of we at by I to be we're and going say, we driven . rate case all were if occupancy. going case, to basically, year. that, the that that's the the gains hit anticipate rate, to given that's year have goals. our And we're

Operator

to Cowen. [Operator TD Vitanza go now next Instructions] Lance We at

Lance Vitanza

I have two.

Can is first me? on CapEx. hear The you .

Sean Reilly

Yes.

Lance Vitanza

CapEx. on question First

expected mentioned that in line you Would on you in cadence the expect uptick And this I any that this spend. XQ. a case, to total of saw that repeat digital pattern Did hear we XXXX, give think I could XXX sense right? in conversions year. us in CapEx to And XXX for I you noticed the XXXX? big

Sean Reilly

spiked in say going cadence any is year. don't to terms digital sort logo extraordinary probably We that in deployment the division, We've through of year. ratable sort that this [ on us hitting spend to going of the come to our of a be our this I'm see of going to got which year. CapEx are also There increase few is CapEx things are total that ]. some

was XXX And we little the QX -- we and hurricanes building old be it. might some anything have something maybe little bit year. a was also to in that sort I If are highlight own of out had We the new explain elevated neighborhood of that of to some -- of and would there, extraordinary, a to that CapEx refurbishing ones. in QX buildings in buildings so CapEx last related extraordinary

Lance Vitanza

tend to like trying industry And the [indiscernible], revenue others I are that out and are yet, helpful. about the growth too some talk this square conservative. ad and then to And that out-of-home seems domestic what think in you agree. that to X% I is circle. . on And trade more 'XX are compare just -- just spend And estimate Magna That's the relative growth wondering having of if projected talking back sources, just with I'm guidance, which saying, how square it Do Global about you Magna we and home, your high? very I'm best year. just team

Sean Reilly

they'll look number. could a have You to others, and different

that You that television screens I at retail are also that broadly very defined. for out-of-home that popping very everywhere. quickly. highlight seemingly they're the need up are our deployed keep And out-of-home digital aren't portfolio in there in some, looking example, would mind to being are networks

which, that's is numbers, not also cinema the in So recovery in that's advertising their again, their our portfolio. in of number,

around on some at. smaller looking So say I've between And sort differences again, well. number also different explains been as portfolios. X.X% some up of and recover, as of depends in sort transit then total is the out-of-home it space would who it. there's And again, The screens that that, you're particularly, I circling portfolio again, X%. it's of that

Operator

Wolfe next We'll [indiscernible] go Research. now at to

Unknown Analyst

follow-up of another the just new digital on deployment It's signs.

conversions? signs factor you the kind [indiscernible] would the digital you think limiting of pace could a your stretch number of kind XXX, gave do the out about what guys XXX. as largest . of What in you static And of goal rolling you So to see of digital year? consider for

Sean Reilly

the year. [indiscernible], this We're pedal to metal good question.

given lot permitting. hit number issues we It of in we a we The if than time. deployed year regulatory That So think, ever. have takes I effort. one, essentially XXX, are, more have a takes will gating

city with get We make fully we're with have leadership construction to that comfortable project. down they're and are these sit doing and then what permitted. sure And

to and have way. retrofit structure that sure make hold it the We extra the can

crews chain All have from issues then to get there our the have make We that time, supply power be units construction has sure to a holding vendors. up. is there's engaged hooked on up, digital to no in getting stuff And that project. the

add you it have hit we a all And we so if had up year. good will when XXX,

Operator

further no time. there's questions And at this

for I'd closing So like comments. . to to things Mr. you, back turn any sir, Reilly,

Sean Reilly

for Well, quarter. great. interest Lamar, we in Thank talk your you next will all and again

Operator

wish Again, to all Goodbye. does Riley. ladies Mr. for We'd you like all call. today's conclude you, a that us conference so and you gentlemen, Thank much thank joining great day. and

Lamar Advertising (LAMR) 20 Feb 252024 Q4 Earnings call transcript