Lamar Advertising Company Announces Second Quarter Ended June 30, 2021 Operating Results
- Net revenue was $445.1 million
- Net income was $119.6 million
- Adjusted EBITDA was $213.5 million
Six Month Results
- Net revenue was $815.9 million
- Net income was $157.9 million
- Adjusted EBITDA was $365.9 million
Baton Rouge, LA – August 5, 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 second quarter ended June 30, 2021.
“We are very pleased with our second quarter results, which exceeded our internal expectations. Billboard revenue for the period surpassed revenue for the comparable quarter in 2019, while bookings in the transit and airport business continued to improve. Logos delivered its typical solid performance,” Lamar chief executive Sean Reilly said. “Given the momentum we see, we are raising our guidance for full year 2021 diluted AFFO per share to a range of $6.10 to $6.30. In addition, management is recommending to our Board of Directors an increase in the quarterly dividend distribution to $1.00 per share for the third quarter.”
Second Quarter Highlights
- Net revenue increased 28.0%
- Adjusted EBITDA increased 60.3%
- Free cash flow increased 85.3%
- Diluted AFFO per share increased 84.2%
Second Quarter Results
Lamar reported net revenues of $445.1 million for the second quarter of 2021 versus $347.7 million for the second quarter of 2020, a 28.0% increase. Operating income for the second quarter of 2021 increased $82.5 million to $149.0 million as compared to $66.5 million for the same period in 2020. Lamar recognized net income of $119.6 million for the second quarter of 2021 as compared to net income of $31.4 million for same period in 2020, an increase of $88.2 million. Net income per diluted share was $1.18 and $0.31 for the three months ended June 30, 2021 and 2020, respectively.
Adjusted EBITDA for the second quarter of 2021 was $213.5 million versus $133.2 million for the second quarter of 2020, an increase of 60.3%.
Cash flow provided by operating activities was $201.9 million for the three months ended June 30, 2021, an increase of $54.2 million as compared to the same period in 2020. Free cash flow for the second quarter of 2021 was $163.3 million as compared to $88.1 million for the same period in 2020, an 85.3% increase.
For the second quarter of 2021, funds from operations, or FFO, was $176.2 million versus $92.1 million for the same period in 2020, an increase of 91.3%. Adjusted funds from operations, or AFFO, for the second quarter of 2021 was $177.8 million compared to $96.1 million for the same period in 2020, an increase of 85.1%. Diluted AFFO per share increased 84.2% to $1.75 for the three months ended June 30, 2021 as compared to $0.95 for the same period in 2020.
Acquisition-Adjusted Three Months Results
Acquisition-adjusted net revenue for the second quarter of 2021 increased 28.9% over acquisition-adjusted net revenue for the second quarter of 2020. Acquisition-adjusted EBITDA for the second quarter of 2021 increased 59.9% as compared to acquisition-adjusted EBITDA for the second 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.
Six Month Results
Lamar reported net revenues of $815.9 million for the six months ended June 30, 2021 versus $754.2 million for the six months ended June 30, 2020, an 8.2% increase. Operating income for the six months ended June 30, 2021 increased $74.9 million to $237.9 million as compared to $163.0 million for the same period in 2020. Lamar recognized net income of $157.9 million for the six months ended June 30, 2021 as compared to net income of $71.9 million for the same period in 2020, an increase of $86.0 million. Net income per diluted share was $1.56 and $0.71 for the six months ended June 30, 2021 and 2020, respectively.
Adjusted EBITDA for the six months ended June 30, 2021 was $365.9 million versus $293.0 million for the same period in 2020, an increase of 24.9%.
Cash flow provided by operating activities was $285.3 million for the six months ended June 30, 2021, an increase of $74.6 million as compared to the same period in 2020. Free cash flow for the six months ended June 30, 2021 was $270.7 million as compared to $185.2 million for the same period in 2020, a 46.2% increase.
For the six months ended June 30, 2021, funds from operations, or FFO, was $272.2 million versus $189.7 million for the same period in 2020, an increase of 43.5%. Adjusted funds from operations, or AFFO, for the six months ended June 30, 2021 was $294.5 million compared to $209.3 million for the same period in 2020, an increase of 40.7%. Diluted AFFO per share increased 39.9% to $2.91 for the six months ended June 30, 2021 as compared to $2.08 for the same period in 2020.
Liquidity
As of June 30, 2021, Lamar had $856.8 million in total liquidity that consisted of $735.6 million available for borrowing under its revolving senior credit facility, $52.5 million available under the Accounts Receivable Securitization Program and $68.7 million in cash and cash equivalents. There were no amounts outstanding under the Company’s revolving credit facility and $122.5 million in borrowings outstanding under the Accounts Receivable Securitization Program as of June 30, 2021, respectively.
Recent Developments and COVID-19 Update
On July 12, 2021, Lamar acquired a minority stake in Vistar Media, a leading global provider of programmatic technology for the digital out-of-home sector. Lamar’s investment of $30.0 million will help Vistar strengthen its balance sheet, expand its research and development, and extend its reach into new markets. Lamar will receive a seat on Vistar’s Board of Directors and believes it will benefit from its investment in the next evolution in technology and innovation of our industry.
On July 2, 2021, Lamar Media entered into Amendment No. 1 (the “Amendment”), to the Fourth Amended and Restated Credit Agreement. The Amendment amends the definition of “Subsidiary” to exclude each of Lamar Partnering Sponsor LLC and Lamar Partnering Corporation and any of their subsidiaries (collectively, the “Lamar Partnering Entities”) such that, after the giving effect to the Amendment, none of the Lamar Partnering Entities are subject to the Fourth Amended and Restated Credit Agreement covenants and reporting requirements, but any investment by Lamar Media in any of the Lamar Partnering Entities would be subject to the Fourth Amended and Restated Credit Agreement covenants. The Amendment also amends the definition of “EBITDA” to replace the existing calculation with a net income-based calculation, which excludes the income of non-Subsidiary entities such as the Lamar Partnering Entities, except to the extent that income of such entities is received by Lamar Media in the form of dividends or distributions.
On June 21, 2021, Lamar entered into an equity distribution or At-the-Market Offering agreement (the “ATM agreement”). Under the terms of the ATM Agreement, Lamar may, from time to time, issue and sell shares of its Class A common stock having an aggregate offering price of up to $400.0 million through the sales agents party to the ATM Agreement. The ATM Agreement replaces a prior equity distribution agreement with substantially similar terms between the Company and certain sales agents, which expired by its terms.
On May 24, 2021, Lamar Media Corp entered into the Fifth Amendment to its $175.0 million Receivable Financing Agreement dated December 18, 2018. The amendment extends the maturity date of the Accounts Receivable Securitization Program to July 21, 2024. Additionally, the amendment decreases the minimum borrowing threshold under the agreement.
Lamar continues to actively monitor the effects of the COVID-19 pandemic on our business, employees and the business of our advertisers. We observed an improvement in our customer activity beginning in June 2020 and through June 2021.
Revised Guidance
We are updating our 2021 guidance issued in May 2021 to reflect our expected continued recovery from the COVID-19 pandemic during 2021. We now expect net income per diluted share for fiscal year 2021 to be between $3.67 and $3.83, with diluted AFFO per share between $6.10 and $6.30. See “Supplemental Schedules Unaudited REIT Measures and Reconciliations to GAAP Measures” for reconciliation to GAAP.
