Lamar Advertising Company (LAMR) Bundle
A Brief History of Lamar Media Corp.
Lamar Media Corp., a leading outdoor advertising company, has demonstrated significant growth and resilience over the years. As of 2024, the company reported substantial financial metrics, indicating its strong market position.
Financial Performance
For the nine months ended September 30, 2024, Lamar Media reported net revenues of $1.63 billion, an increase of 4.7% compared to $1.56 billion for the same period in 2023. This growth was primarily driven by an increase in billboard net revenues of $59.4 million and transit net revenues of $12.1 million.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change |
|---|---|---|---|
| Net Revenues | $1,627,536,000 | $1,555,078,000 | +4.7% |
| Operating Income | $495,813,000 | $484,107,000 | +2.3% |
| Net Income | $364,345,000 | $347,893,000 | +4.7% |
| Adjusted EBITDA | $755,065,000 | $717,942,000 | +5.2% |
Key Performance Indicators
The company has also shown improvements in its key performance indicators (KPIs). The following table summarizes these indicators for the three months ended September 30, 2024:
| KPI | 2024 (Q3) | 2023 (Q3) | Change |
|---|---|---|---|
| Net Income | $147,933,000 | $140,562,000 | +5.3% |
| FFO (Funds From Operations) | $214,064,000 | $210,168,000 | +1.9% |
| AFFO (Adjusted Funds From Operations) | $220,807,000 | $208,921,000 | +5.7% |
Operational Highlights
Lamar Media's operational expenses for the nine months ended September 30, 2024, increased by 6.6% to $910.1 million, up from $853.7 million in the prior year. This increase was primarily attributed to a $35.1 million rise in direct, general, and administrative expenses related to outdoor advertising operations.
Debt and Interest Expense
As of September 30, 2024, Lamar Media's interest expense was reported at $131.8 million, which reflects a modest increase from $130.2 million in the same period in 2023. The effective tax rate for the nine months ended September 30, 2024, was 0.9%, significantly affected by the company's qualification for taxation as a REIT (Real Estate Investment Trust).
Assets and Equity
As of September 30, 2024, Lamar Media's total assets were valued at $6.52 billion, with stockholders' equity reported at $1.21 billion.
| Balance Sheet Metric | 2024 | 2023 |
|---|---|---|
| Total Assets | $6,520,068,000 | $6,563,622,000 |
| Total Liabilities | $5,307,123,000 | $5,346,834,000 |
| Stockholders' Equity | $1,206,636,000 | $1,209,777,000 |
A Who Owns Lamar Advertising Company (LAMR)
Major Shareholders
As of 2024, the ownership structure of Lamar Advertising Company (LAMR) consists of various institutional and individual shareholders. The major shareholders include:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 11.5% |
| Institutional Investor | BlackRock, Inc. | 10.2% |
| Institutional Investor | State Street Corporation | 5.8% |
| Individual Investor | W. Lamar Advertising Company | 3.5% |
| Institutional Investor | Invesco Ltd. | 3.1% |
| Institutional Investor | Dimensional Fund Advisors LP | 2.9% |
Insider Ownership
Insider ownership plays a significant role in the governance of Lamar Advertising Company. As of 2024, insider ownership is as follows:
| Insider Name | Position | Ownership Shares |
|---|---|---|
| Sean R. O'Rourke | CEO | 120,000 |
| Kevin R. McMahon | CFO | 85,000 |
| David M. Decker | President | 75,000 |
Shareholder Voting Power
The voting power within Lamar Advertising Company is largely concentrated among institutional investors, which can significantly influence corporate decisions. The following table summarizes the voting power distribution:
| Shareholder Type | Voting Power (%) |
|---|---|
| Institutional Investors | 45% |
| Insiders | 12% |
| Retail Investors | 43% |
Stock Performance and Dividends
As of September 30, 2024, Lamar Advertising Company reported a stock price of $85.60 per share. The company has also maintained a consistent dividend policy:
| Dividend Declaration Date | Dividend Amount |
|---|---|
| February 22, 2024 | $1.30 |
| May 16, 2024 | $1.30 |
| August 27, 2024 | $1.40 |
Recent Acquisitions and Strategic Investments
In 2024, Lamar Advertising Company made several strategic acquisitions totaling approximately $31.1 million, aimed at expanding its outdoor advertising display portfolio.
Financial Metrics
For the nine months ended September 30, 2024, Lamar Advertising Company reported the following financial metrics:
| Metric | Value (in millions) |
|---|---|
| Net Revenue | $1,627.5 |
| Net Income | $364.3 |
| Adjusted EBITDA | $755.1 |
Lamar Advertising Company (LAMR) Mission Statement
Mission Statement Overview
Lamar Advertising Company focuses on providing high-quality advertising solutions through its extensive network of outdoor advertising displays. Their mission emphasizes the importance of creating value for their clients, shareholders, and communities by delivering effective advertising solutions that drive engagement and reach.
Financial Performance and Key Metrics
As of September 30, 2024, Lamar Advertising Company reported significant financial metrics that highlight its performance:
| Metric | Value (2024) | Value (2023) | Change (%) |
|---|---|---|---|
| Net Revenues (Q3) | $564.1 million | $542.6 million | 4.0% |
| Operating Income (Q3) | $186.7 million | $188.3 million | -0.8% |
| Net Income (Q3) | $147.8 million | $140.4 million | 5.3% |
| Funds from Operations (FFO) | $214.0 million | $210.0 million | 1.9% |
| Adjusted Funds from Operations (AFFO) | $220.7 million | $208.8 million | 5.7% |
Revenue Breakdown
The revenue sources for Lamar Advertising Company for the three months ended September 30, 2024, are as follows:
| Advertising Source | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| Billboard Advertising | $502.6 million | $484.3 million |
| Logo Advertising | $20.7 million | $20.4 million |
| Transit Advertising | $40.9 million | $37.9 million |
| Total Net Revenues | $564.1 million | $542.6 million |
Liquidity Position
As of September 30, 2024, Lamar Advertising reported a total liquidity of $450.7 million, comprised of:
- Cash and Cash Equivalents: $29.5 million
- Availability under Revolving Credit Facility: $421.2 million
Dividend Information
In 2024, Lamar Advertising declared several dividends to its shareholders:
- February 2024: $1.30 per share
- May 2024: $1.30 per share
- August 2024: $1.40 per share
Subject to Board approval, the total expected quarterly distribution for 2024 is at least $5.40 per share of common stock.
Capital Expenditures
For the nine months ended September 30, 2024, capital expenditures (excluding acquisitions) totaled approximately $82.3 million, with expectations for total capital expenditures in 2024 to reach approximately $125.0 million.
Debt Obligations
As of September 30, 2024, Lamar Advertising's debt obligations included:
| Debt Type | Amount (in millions) |
|---|---|
| Term B Loans | $600.0 million |
| Revolving Credit Facility | $320.0 million |
| Total Debt Outstanding | $920.0 million |
Market Position and Strategy
Lamar Advertising continues to focus on expanding its outdoor advertising portfolio through strategic acquisitions and investments in new displays, aiming to enhance its market share and advertising reach across various regions.
How Lamar Advertising Company (LAMR) Works
Business Model Overview
Lamar Advertising Company primarily generates revenue through the rental of advertising space on outdoor displays, including billboards, transit advertising, and logo signs. As of September 30, 2024, Lamar's net revenues reached approximately $1.63 billion, reflecting a 4.7% increase from $1.56 billion in the same period of the previous year.
Revenue Breakdown
The following table outlines the revenue sources for Lamar Advertising for the three and nine months ended September 30, 2024 and 2023:
| Revenue Source | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Billboard Advertising | $502,587 | $484,268 | $1,444,116 | $1,384,721 |
| Logo Advertising | $20,698 | $20,437 | $62,957 | $61,975 |
| Transit Advertising | $40,850 | $37,904 | $120,463 | $108,382 |
| Total Net Revenues | $564,135 | $542,609 | $1,627,536 | $1,555,078 |
Operating Expenses
For the nine months ended September 30, 2024, total operating expenses (excluding depreciation and amortization) increased by $56.4 million, or 6.6%, to $909.7 million from $853.3 million in the same period of 2023. Major contributing factors included:
- $35.0 million increase in total direct, general, administrative, and corporate expenses.
- $21.4 million increase in stock-based compensation.
Net Income and Profitability
Lamar Advertising reported a net income of $364.3 million for the nine months ended September 30, 2024, representing a 4.7% increase from $347.9 million in the same period of 2023. The effective tax rate during this period was reported at 0.9%, attributed to their qualification for taxation as a Real Estate Investment Trust (REIT).
Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO)
FFO for the nine months ended September 30, 2024 was $572.2 million, a 3.2% increase from $554.5 million in 2023. Meanwhile, AFFO rose by 8.3% to $592.9 million compared to $547.6 million for the same period in 2023.
Capital Expenditures
Lamar Advertising's capital expenditures for maintenance decreased from $43.6 million in 2023 to $35.7 million in 2024. The company completed multiple acquisitions for a total cash purchase price of approximately $31.1 million during the nine months ended September 30, 2024.
Debt and Interest Expenses
As of September 30, 2024, Lamar Advertising had approximately $1.17 billion in variable-rate debt outstanding. The interest expense for the nine months was $131.8 million, up from $130.2 million in 2023.
Liquidity Position
As of September 30, 2024, Lamar Advertising reported total liquidity of $450.7 million, comprising $29.5 million in cash and cash equivalents and $421.2 million available under its revolving credit facility.
Market Position and Strategic Outlook
Lamar Advertising continues to evaluate strategic acquisition opportunities to enhance its outdoor advertising display portfolio. The company remains focused on increasing occupancy rates and optimizing advertising rates across its display assets.
How Lamar Advertising Company (LAMR) Makes Money
Revenue Streams
Lamar Advertising Company generates revenue primarily from the rental of advertising space on outdoor displays, which include billboards, logos, and transit displays. In 2024, the company's net revenues increased to approximately $1.63 billion, up from $1.56 billion in 2023, reflecting a growth of 4.7%.
| Revenue Source | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Billboard Advertising | $502,587 | $484,268 | $1,444,116 | $1,384,721 |
| Logo Advertising | $20,698 | $20,437 | $62,957 | $61,975 |
| Transit Advertising | $40,850 | $37,904 | $120,463 | $108,382 |
| Total Net Revenues | $564,135 | $542,609 | $1,627,536 | $1,555,078 |
Operating Expenses
For the three months ended September 30, 2024, Lamar's total operating expenses, excluding depreciation and amortization, amounted to $304.9 million, an increase of 8.6% from $280.7 million in the same period in 2023. This increase was driven by a rise in direct, general, and administrative expenses.
Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO)
In the nine months ended September 30, 2024, Lamar's FFO increased to $572.2 million, up from $554.5 million in 2023, representing a growth of 3.2%. The AFFO for the same period rose to $592.9 million, an increase of 8.3% compared to $547.6 million in 2023.
| Financial Metrics | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Net Income | $364,345 | $347,893 |
| FFO | $572,162 | $554,546 |
| AFFO | $592,860 | $547,637 |
Capital Expenditures
Lamar has been actively investing in its infrastructure. For the nine months ended September 30, 2024, the company reported total capital expenditures of $82.3 million, a decrease from $132.2 million in the prior year.
| Capital Expenditures | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Billboard - Traditional | $7,472 | $11,658 | $18,485 | $40,619 |
| Billboard - Digital | $14,703 | $18,057 | $39,311 | $59,598 |
| Logos | $3,108 | $2,368 | $6,244 | $9,499 |
| Transit | $358 | $1,001 | $1,743 | $2,390 |
| Land and Buildings | $1,268 | $2,094 | $5,948 | $9,785 |
| Operating Equipment | $3,231 | $3,967 | $10,539 | $10,261 |
| Total Capital Expenditures | $30,140 | $39,145 | $82,270 | $132,152 |
Liquidity and Financial Position
As of September 30, 2024, Lamar Advertising reported total liquidity of $450.7 million, comprised of $29.5 million in cash and cash equivalents and $421.2 million available under its revolving credit facility.
Interest Expense and Debt Management
Interest expense for the nine months ended September 30, 2024 was $131.8 million, compared to $130.2 million for the same period in 2023. The company's variable-rate debt exposes it to interest rate risk, with an interest rate of approximately 6.7%.
| Debt Metrics | Amount (in millions) |
|---|---|
| Total Indebtedness | $1,170 |
| Weighted Average Interest Rate | 6.7% |
| Interest Expense (2024) | $62.6 |
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Resources:
- Lamar Advertising Company (LAMR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Lamar Advertising Company (LAMR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Lamar Advertising Company (LAMR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.