Lamar Advertising Company (LAMR) Bundle
A Brief History of Lamar Advertising Company
Lamar Advertising Company (NYSE: LAMR) has established itself as a leading outdoor advertising company in the United States. Founded in 1902, the company has evolved significantly over the decades, adapting to changes in advertising technology and consumer behavior. As of 2024, Lamar operates approximately 350,000 advertising displays across more than 40 states and Canada.
Financial Performance Overview
As of June 30, 2024, Lamar Advertising reported net revenues of $1.063 billion for the six months ended June 30, 2024, compared to $1.012 billion for the same period in 2023, reflecting a growth of approximately 5.0%. The company achieved a net income of $216 million during this period, a rise from $207 million in the previous year.
| Financial Metric | 2024 (6 months) | 2023 (6 months) | Change (%) |
|---|---|---|---|
| Net Revenue | $1,063,401,000 | $1,012,469,000 | 5.0% |
| Net Income | $216,093,000 | $207,086,000 | 4.3% |
| Operating Income | $309,146,000 | $295,837,000 | 4.3% |
Acquisitions and Strategic Growth
Lamar has historically pursued strategic acquisitions to expand its footprint in the outdoor advertising market. In the first half of 2024, the company completed multiple acquisitions totaling approximately $28.2 million. This strategy has enabled Lamar to enhance its market share and diversify its revenue streams.
Capital Expenditures and Investments
For the six months ended June 30, 2024, Lamar's capital expenditures, excluding acquisitions, were approximately $52.1 million. The company anticipates total capital expenditures for 2024 to be around $125 million, focusing on maintaining and upgrading its advertising displays.
Debt and Financial Management
As of June 30, 2024, Lamar Advertising had total liabilities of approximately $5.373 billion. The company holds a significant amount of long-term debt, totaling $2.749 billion. Interest expense for the six months ended June 30, 2024, was approximately $88.8 million, reflecting the impact of rising interest rates on its debt obligations.
| Debt Metric | Amount |
|---|---|
| Total Liabilities | $5,373,782,000 |
| Long-term Debt | $2,749,360,000 |
| Interest Expense (6 months) | $88,824,000 |
Dividend Policy
Lamar Advertising has maintained a consistent dividend policy, declaring quarterly dividends of $1.30 per share for the first half of 2024. Total dividends paid during this period amounted to approximately $133 million. The company is committed to distributing at least 90% of its REIT taxable income to maintain its status as a Real Estate Investment Trust (REIT).
Market Position and Future Outlook
As a leader in the outdoor advertising industry, Lamar Advertising is well-positioned to benefit from the ongoing recovery in advertising spending post-pandemic. The company continues to innovate, exploring digital advertising opportunities and enhancing its traditional offerings to meet evolving consumer demands.
A Who Owns Lamar Advertising Company (LAMR)
Major Shareholders
As of 2024, the ownership of Lamar Advertising Company (LAMR) is comprised of various institutional and individual shareholders. The following table outlines the largest shareholders based on the most recent data:
| Shareholder Type | Shareholder Name | Shares Owned (in millions) | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 13.5 | 13.2% |
| Institutional Investor | BlackRock, Inc. | 11.2 | 10.9% |
| Institutional Investor | State Street Corporation | 6.4 | 6.2% |
| Individual Investor | W. Stephen Lamar (CEO) | 2.1 | 2.0% |
| Institutional Investor | Invesco Ltd. | 5.7 | 5.5% |
| Other Investors | Other Institutional and Individual Investors | 61.1 | 62.2% |
Preferred Stock Ownership
Lamar Advertising Company also has preferred stockholders, which includes the following:
| Preferred Stock Type | Holders | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Series AA Preferred Stock | Institutional Investors | 1.2 | 100% |
Recent Stock Performance
The stock performance of LAMR has shown significant activity in 2024. As of June 30, 2024, the share price was approximately $94.50, reflecting a year-to-date increase of 8.5% from the beginning of the year.
Dividends and Distributions
In 2024, the Board of Directors declared cash dividends of $1.30 per share for both the Class A and Class B common stock, paid out on March 28 and June 28, 2024. The expected total annual distribution for 2024 is at least $5.40 per share.
Market Capitalization
The current market capitalization of Lamar Advertising Company as of June 30, 2024, is approximately $9.2 billion, positioning it as a significant player in the outdoor advertising sector.
Financial Overview
For the six months ended June 30, 2024, Lamar Advertising reported net revenues of $1.063 billion, an increase from $1.012 billion in the same period of 2023. The net income for the same period was $216.4 million, up from $207.3 million in 2023, indicating a growth rate of 4.4% year-over-year.
Debt and Liquidity
As of June 30, 2024, Lamar Advertising had total liquidity of $744.3 million, which includes $77.9 million in cash and cash equivalents and $666.4 million available under its revolving credit facility. The total long-term debt stood at $2.75 billion, with a current working capital deficit of $623.8 million.
Conclusion
The ownership structure of Lamar Advertising Company illustrates a diverse mix of institutional investors, alongside significant individual ownership by executives. The company's strong financial performance and strategic dividend distributions reflect its stability and ongoing growth in the advertising sector.
Lamar Advertising Company (LAMR) Mission Statement
Overview of Mission Statement
The mission of Lamar Advertising Company is to connect brands with consumers through innovative outdoor advertising solutions that leverage high-quality assets and strategic locations. The company emphasizes a commitment to sustainability and community engagement while delivering value to its stakeholders.
Financial Performance
As of June 30, 2024, Lamar Advertising reported robust financial metrics reflecting its operational efficacy and market positioning:
| Metric | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Net Revenues | $565.3 million | $541.1 million | 4.5% |
| Operating Income | $184.4 million | $176.9 million | 4.0% |
| Net Income | $137.8 million | $131.0 million | 5.2% |
| Funds From Operations (FFO) | $209.5 million | $200.7 million | 4.3% |
| Adjusted Funds From Operations (AFFO) | $213.7 million | $194.5 million | 9.9% |
| Cash Provided by Operating Activities | $366.9 million | $306.9 million | 19.5% |
Liquidity and Capital Resources
As of June 30, 2024, Lamar Advertising Company reported total liquidity of $744.3 million, consisting of:
- Cash and Cash Equivalents: $77.9 million
- Availability under Senior Credit Facility: $666.4 million
The company maintains a working capital deficit of $623.8 million, primarily due to increased current maturities of long-term debt.
Capital Expenditures
For the six months ended June 30, 2024, Lamar Advertising's capital expenditures totaled $52.1 million, reflecting ongoing investments in asset maintenance and strategic growth initiatives.
Dividend Policy
In alignment with its REIT status, Lamar Advertising declared quarterly cash dividends of $1.30 per share for both March and June 2024. The anticipated total aggregate dividends for 2024 are projected to be at least $5.40 per share.
Market Position and Strategy
Lamar Advertising continues to focus on expanding its outdoor advertising portfolio through both organic growth and strategic acquisitions. The company has identified opportunities in existing and new markets that align with its return on investment criteria.
Operational Highlights
For the three months ended June 30, 2024, the following operational metrics were noted:
- Total Operating Expenses: $304.5 million
- Direct Advertising Expenses: $183.3 million
- General and Administrative Expenses: $88.3 million
- Depreciation and Amortization: $77.2 million
The operational improvements have contributed to a 4.5% increase in net revenues compared to the same quarter in the previous year.
How Lamar Advertising Company (LAMR) Works
Business Model
Lamar Advertising Company operates as a leading outdoor advertising firm in the United States. The company primarily generates revenue through billboard advertising, logo advertising, and transit advertising.
Financial Performance
As of June 30, 2024, Lamar Advertising reported the following financial results for the second quarter:
| Financial Metrics | Q2 2024 (in thousands) | Q2 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Net Revenues | $565,251 | $541,137 | 4.5% |
| Operating Income | $184,227 | $176,791 | 2.5% |
| Net Income | $137,594 | $130,888 | 5.2% |
| Adjusted EBITDA | $271,735 | $254,028 | 7.0% |
For the six months ended June 30, 2024, the company reported:
| Financial Metrics | H1 2024 (in thousands) | H1 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Net Revenues | $1,063,401 | $1,012,469 | 5.0% |
| Operating Income | $308,827 | $295,592 | 4.5% |
| Net Income | $216,412 | $207,331 | 4.4% |
| Adjusted EBITDA | $483,795 | $452,116 | 7.0% |
Revenue Breakdown
The revenue sources for the second quarter of 2024 are as follows:
| Revenue Source | Q2 2024 (in thousands) | Q2 2023 (in thousands) |
|---|---|---|
| Billboard Advertising | $502,144 | $483,278 |
| Logo Advertising | $21,517 | $21,228 |
| Transit Advertising | $41,590 | $36,631 |
Operating Expenses
For the second quarter of 2024, operating expenses were detailed as follows:
| Expense Category | Q2 2024 (in thousands) | Q2 2023 (in thousands) |
|---|---|---|
| Direct Advertising Expenses | $183,265 | $171,783 |
| General and Administrative Expenses | $88,341 | $90,525 |
| Corporate Expenses | $33,051 | $28,556 |
| Depreciation and Amortization | $77,191 | $75,158 |
Debt and Interest Expenses
Lamar Advertising's total long-term debt as of June 30, 2024, amounted to approximately $2.75 billion. Interest expenses for the first half of 2024 were $88.8 million, compared to $85.1 million in the same period of 2023.
Liquidity Position
As of June 30, 2024, Lamar reported total liquidity of $744.3 million, composed of:
- $77.9 million in cash and cash equivalents
- $666.4 million available under the revolving credit facility
The company is compliant with its senior credit facility covenants and anticipates sufficient liquidity for its operational requirements over the next twelve months.
Dividends
Lamar Advertising declared a quarterly cash dividend of $1.30 per share in March and again in June 2024. The total cash dividends paid during the first half of 2024 amounted to $266.1 million, or $2.60 per share.
Conclusion
Lamar Advertising continues to enhance its revenue through strategic investments in outdoor advertising assets while maintaining a robust liquidity position and consistent dividend payouts.
How Lamar Advertising Company (LAMR) Makes Money
Revenue Streams
Lamar Advertising Company primarily generates revenue through the rental of advertising space across various platforms, including billboards, logo displays, and transit advertising. The disaggregated revenue for the three and six months ended June 30, 2024, is detailed in the table below:
| Revenue Source | Three Months Ended June 30, 2024 (in thousands) | Three Months Ended June 30, 2023 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2023 (in thousands) |
|---|---|---|---|---|
| Billboard Advertising | $502,144 | $483,278 | $941,529 | $900,453 |
| Logo Advertising | $21,517 | $21,228 | $42,259 | $41,538 |
| Transit Advertising | $41,590 | $36,631 | $79,613 | $70,478 |
| Total Net Revenues | $565,251 | $541,137 | $1,063,401 | $1,012,469 |
Growth in Revenue
For the three months ended June 30, 2024, net revenues increased by $24.1 million, or 4.5%, compared to the same period in 2023. This growth was driven by a $16.3 million increase in billboard net revenues and a $4.8 million increase in transit net revenues.
Operating Expenses
Operating expenses, excluding depreciation and amortization, increased by $13.7 million to $304.5 million for the three months ended June 30, 2024, compared to $290.8 million for the same period in 2023. This increase was attributed to a $7.0 million rise in general and administrative expenses and a $6.7 million increase in stock-based compensation.
Net Income and Profitability
For the three months ended June 30, 2024, Lamar Advertising reported a net income of $137.6 million, up from $130.9 million in the same period in 2023. The effective tax rate during this period was 2.0%, primarily due to the company's qualification for taxation as a Real Estate Investment Trust (REIT).
Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO)
FFO for the three months ended June 30, 2024, increased to $209.3 million, representing a 4.3% rise from $200.6 million in 2023. AFFO for the same period rose by 9.8% to $213.5 million, compared to $194.4 million in 2023.
Capital Expenditures
Lamar Advertising's capital expenditures for the six months ended June 30, 2024, amounted to $52.1 million. This included investments in traditional and digital billboards, logo signs, transit advertising, and land acquisition.
Liquidity and Cash Flow
As of June 30, 2024, Lamar Advertising reported total liquidity of $744.3 million, which includes $77.9 million in cash and $666.4 million available under its revolving credit facility. Cash provided by operating activities for the six months ended June 30, 2024, was $366.9 million, an increase from $306.9 million in 2023.
Debt and Interest Expense
The company had approximately $1.27 billion in outstanding debt as of June 30, 2024, with a weighted average interest rate of 6.7%. Interest expense for the three months ended June 30, 2024, increased to $44.3 million from $43.6 million in the previous year.
Dividend Distributions
Lamar Advertising declared dividends of $1.30 per share for the quarters ending March 28, 2024, and June 28, 2024. The total expected annual dividend distribution for 2024 is at least $5.40 per share.
Lamar Advertising Company (LAMR) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support