Lamar Advertising Company Announces Fourth Quarter and Year Ended December 31, 2021 Operating Results
Three Month Results
- Net revenue was $494.6 million
- Net income was $123.3 million
- Adjusted EBITDA was $230.7 million
Twelve Month Results
- Net revenue was $1.79 billion
- Net income was $388.1 million
- Adjusted EBITDA was $827.3 million
Baton Rouge, LA – February 25, 2022 – 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 fourth quarter and year ended December 31, 2021.
“As our record financial results in 2021 demonstrate, businesses large and small today have a growing appreciation for the reach and impact of out-of-home advertising,” Lamar CEO Sean Reilly said. “We set new marks in 2021 for revenue, adjusted EBITDA and AFFO per share, and we’ve seen the sales momentum continue into 2022. Based on current pacing, we expect full-year AFFO to be between $7.03 and $7.18 per share.”
Fourth Quarter Highlights
- Net revenue increased 15.4%
- Adjusted EBITDA margin of 46.6%
- Diluted AFFO per share increased 4.1%
Fourth Quarter Results
Lamar reported net revenues of $494.6 million for the fourth quarter of 2021 versus $428.5 million for the fourth quarter of 2020, a 15.4% increase. Operating income for the fourth quarter of 2021 increased $8.7 million to $149.9 million as compared to $141.2 million for the same period in 2020. Lamar recognized net income of $123.3 million for the fourth quarter of 2021 as compared to net income of $108.7 million for the same period in 2020, an increase of $14.6 million. Net income per diluted share was $1.21 and $1.08 for the three months ended December 31, 2021 and 2020, respectively.
Adjusted EBITDA for the fourth quarter of 2021 was $230.7 million versus $207.9 million for the fourth quarter of 2020, an increase of 11.0%.
Cash flow provided by operating activities was $246.2 million for the three months ended December 31, 2021, an increase of $37.8 million as compared to the same period in 2020. Free cash flow for the fourth quarter of 2021 was $149.0 million as compared to $160.1 million for the same period in 2020, a 7.0% decrease.
For the fourth quarter of 2021, funds from operations, or FFO, was $183.6 million versus $167.6 million for the same period in 2020, an increase of 9.6%. Adjusted funds from operations, or AFFO, for the fourth quarter of 2021 was $180.7 million compared to $172.1 million for the same period in 2020, an increase of 5.0%. Diluted AFFO per share increased 4.1% to $1.78 for the three months ended December 31, 2021 as compared to $1.71 for the same period in 2020.
Acquisition-Adjusted Three Months Results
Acquisition-adjusted net revenue for the fourth quarter of 2021 increased 14.0% over acquisition-adjusted net revenue for the fourth quarter of 2020. Acquisition-adjusted EBITDA for the fourth quarter of 2021 increased 10.4% as compared to acquisition-adjusted EBITDA for the fourth 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.
Twelve Month Results
Lamar reported net revenues of $1.79 billion for the twelve months ended December 31, 2021 versus $1.57 billion for the twelve months ended December 31, 2020, a 13.9% increase. Operating income for the twelve months ended December 31, 2021 increased $111.1 million to $521.2 million as compared to $410.1 million for the same period in 2020. Lamar recognized net income of $388.1 million for the twelve months ended December 31, 2021 as compared to net income of $243.4 million for the same period in 2020, an increase of $144.7 million. Net income per diluted share was $3.83 and $2.41 for the twelve months ended December 31, 2021 and 2020, respectively.
Adjusted EBITDA for the twelve months ended December 31, 2021 was $827.3 million versus $671.5 million for the same period in 2020, an increase of 23.2%.
Cash flow provided by operating activities was $734.4 million for the twelve months ended December 31, 2021, an increase of $164.5 million as compared to the same period in 2020. Free cash flow for the twelve months ended December 31, 2021 was $593.4 million as compared to $472.5 million for the same period in 2020, a 25.6% increase.
For the twelve months ended December 31, 2021, FFO was $643.4 million versus $477.2 million for the same period in 2020, an increase of 34.8%. AFFO for the twelve months ended December 31, 2021 was $667.7 million compared to $514.8 million for the same period in 2020, an increase of 29.7%. Diluted AFFO per share increased 29.2% to $6.59 for the twelve months ended December 31, 2021 as compared to $5.10 for the same period in 2020.
Liquidity
As of December 31, 2021, Lamar had $662.4 million in total liquidity that consisted of $562.6 million available for borrowing under its revolving senior credit facility and $99.8 million in cash and cash equivalents. There was $175.0 million in borrowings outstanding under each of the revolving senior credit facility and accounts receivable program as of December 31, 2021.
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