Lamar Advertising Company Announces Third Quarter Ended September 30, 2021 Operating Results
Three Month Results
- Net revenue was $476.9 million
- Net income was $106.8 million
- Adjusted EBITDA was $230.7 million
Nine Month Results
- Net revenue was $1.29 billion
- Net income was $264.8 million
- Adjusted EBITDA was $596.6 million
Baton Rouge, LA – November 3, 2021 – Lamar Advertising Company (Nasdaq: LAMR), a leading owner and operator of outdoor advertising and logo sign displays, announces the Company’s operating results for the third quarter ended September 30, 2021.
“We are very pleased with our third-quarter results and the sustained, robust recovery in the US advertising market,” Lamar chief executive Sean Reilly said. “Our 2021 billboard revenue is expected to exceed our 2019 total, while transit is well on its way back to pre-pandemic levels and our logos business continues steady. Our pacings indicate the sales momentum should continue through the end of 2021, so we are raising our guidance for full-year diluted AFFO to $6.35 to $6.50 per share.”
Third Quarter Highlights
- Net revenue increased 23.5%
- Adjusted EBITDA margin of 48.4%
- Free cash flow increased 36.6%
- Diluted AFFO per share increased 43.9%
Third Quarter Results
Lamar reported net revenues of $476.9 million for the third quarter of 2021 versus $386.1 million for the third quarter of 2020, a 23.5% increase. Operating income for the third quarter of 2021 increased $27.5 million to $133.3 million as compared to $105.9 million for the same period in 2020. Lamar recognized net income of $106.8 million for the third quarter of 2021 as compared to net income of $62.8 million for same period in 2020, an increase of $44.1 million. Net income per diluted share was $1.05 and $0.62 for the three months ended September 30, 2021 and 2020, respectively.
Adjusted EBITDA for the third quarter of 2021 was $230.7 million versus $170.7 million for the third quarter of 2020, an increase of 35.2%.
Cash flow provided by operating activities was $203.0 million for the three months ended September 30, 2021, an increase of $52.2 million as compared to the same period in 2020. Free cash flow for the third quarter of 2021 was $173.7 million as compared to $127.2 million for the same period in 2020, a 36.6% increase.
For the third quarter of 2021, funds from operations, or FFO, was $187.6 million versus $119.9 million for the same period in 2020, an increase of 56.4%. Adjusted funds from operations, or AFFO, for the third quarter of 2021 was $192.5 million compared to $133.4 million for the same period in 2020, an increase of 44.3%. Diluted AFFO per share increased 43.9% to $1.90 for the three months ended September 30, 2021 as compared to $1.32 for the same period in 2020.
Acquisition-Adjusted Three Months Results
Acquisition-adjusted net revenue for the third quarter of 2021 increased 23.3% over acquisition-adjusted net revenue for the third quarter of 2020. Acquisition-adjusted EBITDA for the third quarter of 2021 increased 33.8% as compared to acquisition-adjusted EBITDA for the third quarter of 2020. Acquisition-adjusted net revenue and acquisition-adjusted EBITDA include adjustments to the 2020 period for acquisitions and divestitures for the same time frame as actually owned in the 2021 period. See “Reconciliation of Reported Basis to Acquisition-Adjusted Results”, which provides reconciliations to GAAP for acquisition-adjusted measures.
Nine Month Results
Lamar reported net revenues of $1.29 billion for the nine months ended September 30, 2021 versus $1.14 billion for the nine months ended September 30, 2020, a 13.4% increase. Operating income for the nine months ended September 30, 2021 increased $102.4 million to $371.2 million as compared to $268.9 million for the same period in 2020. Lamar recognized net income of $264.8 million for the nine months ended September 30, 2021 as compared to net income of $134.7 million for the same period in 2020, an increase of $130.1 million. Net income per diluted share was $2.61 and $1.33 for the nine months ended September 30, 2021 and 2020, respectively.
Adjusted EBITDA for the nine months ended September 30, 2021 was $596.6 million versus $463.7 million for the same period in 2020, an increase of 28.7%.
Cash flow provided by operating activities was $488.2 million for the nine months ended September 30, 2021, an increase of $126.8 million as compared to the same period in 2020. Free cash flow for the nine months ended September 30, 2021 was $444.4 million as compared to $312.4 million for the same period in 2020, a 42.3% increase.
For the nine months ended September 30, 2021, FFO was $459.8 million versus $309.6 million for the same period in 2020, an increase of 48.5%. AFFO for the nine months ended September 30, 2021 was $487.1 million compared to $342.7 million for the same period in 2020, an increase of 42.1%. Diluted AFFO per share increased 41.5% to $4.81 for the nine months ended September 30, 2021 as compared to $3.40 for the same period in 2020.
Liquidity
As of September 30, 2021, Lamar had $823.2 million in total liquidity that consisted of $735.7 million available for borrowing under its revolving senior credit facility and $87.6 million in cash and cash equivalents. There were no amounts outstanding under the Company’s revolving credit facility.
Recent Developments
On September 20, 2021, Lamar’s Board of Directors authorized the extension of the Company’s existing (i) stock repurchase program, which provides for the repurchase of up to $250 million of its Class A common stock and (ii) debt repurchase program, which provides for the repurchase by Lamar Media of up to $250 million in outstanding senior or senior subordinated notes and other indebtedness outstanding from time to time under its senior credit agreement. The repurchase programs, which were previously set to expire on September 30, 2021, have been extended through March 31, 2023. The Company’s management may opt not to make any repurchases under the programs or may make aggregate purchases less than the total amount authorized.
On September 30, 2021, Lamar paid a quarterly cash dividend of $1.00 per common share to its Class A and Class B stockholders, an increase of $0.25 per share over the quarterly cash dividend paid on June 30, 2021.
During the three months ended September 30, 2021, Lamar closed eight acquisitions for a total cash purchase price of $80.4 million, adding over 800 advertising displays. During the nine months ended September 30, 2021, the Company closed 22 acquisitions for a total cash purchase price of $107.6 million, adding approximately 1,500 advertising displays.
On October 20, 2021, Lamar repaid $60.0 million of its outstanding balance under its Accounts Receivable Securitization Program. Currently, the Company has $115.0 million outstanding under the Accounts Receivable Securitization Program. There was $175.0 million in borrowings outstanding under the Accounts Receivable Securitization Program as of September 30, 2021.
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