Baton Rouge, LA - February 22, 2012 - 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 ended December 31, 2011.
Fourth Quarter Results
Lamar reported net revenues of $288.2 million for the fourth
quarter of 2011 versus $275.7 million for the fourth quarter
of
2010, a 4.6% increase. Operating income for the fourth
quarter of 2011 was $45.9 million as compared to $32.8
million for the same period in 2010. Lamar recognized $6.4
million in net income for the fourth quarter of 2011 compared
to a net loss of $7.1 million for the fourth quarter of
2010.
Adjusted EBITDA, (defined as operating income before non-cash
compensation, depreciation and amortization and gain on
disposition of assets - see reconciliation to net income
(loss) at the end of this release) for the fourth quarter of
2011 was
$125.8 million versus $115.4 million for the fourth quarter
of 2010, a 9.1% increase.
Free cash flow (defined as Adjusted EBITDA less interest, net
of interest income and amortization of financing costs,
current taxes, preferred stock dividends and total capital
expenditures - see reconciliation to cash flows provided by
operating activities at the end of this release) for the
fourth quarter of 2011 was $63.9 million as compared to $59.2
million for the same period in 2010, a 7.9% increase.
Pro forma net revenue for the fourth quarter of 2011
increased 4.0% and pro forma Adjusted EBITDA increased 8.5%
as compared to the fourth quarter of 2010. Pro forma net
revenue and Adjusted EBITDA include adjustments to the 2010
period for acquisitions and divestitures for the same time
frame as actually owned in the 2011 period. Tables that
reconcile reported results to pro forma results and operating
income to outdoor operating income are included at the end of
this release.
Lamar reported net revenues of $1,133.5 million for the
twelve months ended December 31, 2011 versus $1,092.3 million
for the same period in 2010, a 3.8% increase. Operating
income for the twelve months ended December 31, 2011 was
$186.4 million as compared to $139.5 million for the same
period in 2010. Adjusted EBITDA for the twelve months ended
December 31, 2011 was $487.1 million versus $465.2 million
for the same period in 2010. There was net income of $8.6
million for the twelve months ended December 31, 2011 as
compared to a net loss of $40.1 million for the same period
in
2010.
Free Cash Flow for the twelve months ended December 31, 2011
decreased 10.6% to $224.8 million as compared to $251.5
million for the same period in 2010, primarily due to the
increase in capital expenditures of $63.6 million over the
comparable period in 2010.
As of December 31, 2011, Lamar had $274.1 million in total liquidity that consists of $240.6 million available for borrowing under its revolving senior credit facility and approximately $33.5 million in cash and cash equivalents.
Recent Significant TransactionsNotes Offering. On February 9, 2012, Lamar's wholly owned subsidiary, Lamar Media Corp., closed a private placement of $500 million in aggregate principal amount of 5 7/8% Senior Subordinated Notes due 2022, which resulted in net
proceeds to Lamar Media of approximately $489 million.
Tender Offer. Also, on February 9, 2012, Lamar Media announced the results of the early settlement of its tender offer to purchase, for cash, up to $700 million of its outstanding 6 5/8% Senior Subordinated Notes due 2015, 6 5/8% Senior Subordinated Notes due 2015-Series B and 6 5/8% Senior Subordinated Notes due 2015-Series C (collectively, the "6 5/8% Notes"). As of February 8, 2012, the early settlement date of the tender offer, Lamar Media received tenders in respect of $582.9 million aggregate principal amount of 6 5/8% Notes, $483.7 million of which were accepted for purchase on February 9, 2012 by Lamar Media for a total cash payment (including accrued and unpaid interest up to but excluding February 9, 2012) of $511.6 million. The tender offer will expire at midnight, New York City time, on February 24, 2012, unless extended or earlier terminated.
GuidanceFor the first quarter of 2012 the Company expects net revenue to be approximately $264 million. On a pro forma basis this represents an increase of approximately 3%.
Forward Looking Statements
This press release contains forward-looking statements,
including the statements regarding guidance for the first
quarter of
2012. These statements are subject to risks and uncertainties
that could cause actual results to differ materially from
those projected in these forward-looking statements. These
risks and uncertainties include, among others; (1) our
significant indebtedness; (2) the state of the economy and
financial markets generally and the effect of the broader
economy on the demand for advertising; (3) the continued
popularity of outdoor advertising as an advertising medium;
(4) our need for and ability to obtain additional funding for
operations, debt refinancing or acquisitions; (5) the
regulation of the outdoor advertising industry; (6) the
integration of companies that we acquire and our ability to
recognize cost savings or operating efficiencies as a result
of these acquisitions; (7) the market for our Class A common
stock and (8) other factors described in our filings with the
Securities and Exchange Commission, including the risk
factors in item 1A of our 2011 Annual Report on Form 10-K, as
supplemented by any risk factors contained in our Quarterly
Reports on Form 10-Q. We caution investors not to place undue
reliance on the forward-looking statements contained in this
document. These statements speak only as of the date of this
document, and we undertake no obligation to update or revise
the statements, except as may be required by law.
Adjusted EBITDA, free cash flow, pro forma results and
outdoor operating income are not measures of performance
under accounting principles generally accepted in the United
States of America ("GAAP") and should not be considered
alternatives to operating income, net income (loss), cash
flows from operating activities, or other GAAP figures as
indicators of the Company's financial performance or
liquidity. The Company's management believes that Adjusted
EBITDA, free cash flow, pro forma results and outdoor
operating income are useful in evaluating the Company's
performance and provide investors and financial analysts a
better understanding of the Company's core operating results.
The pro forma acquisition adjustments are intended to provide
information that may be useful for investors when assessing
period to period results. Our presentations of these measures
may not be comparable to similarly titled measures used by
other companies. Reconciliations of these measures to GAAP
are included at the end of this release.
A conference call will be held to discuss the Company's operating results on Wednesday, February 22, 2012 at 9:00 a.m. central time. Instructions for the conference call and Webcast are provided below:
Conference Call All Callers: 1-334-323-0520 or 1-334-323-9871 Passcode: Lamar Replay: 1-334-323-7226 Passcode: 25176810Available through Monday, February 27, 2012 at 11:59 p.m. eastern time
Live Webcast: www.lamar.com Webcast Replay: www.lamar.comAvailable through Monday, February 27, 2012 at 11:59 p.m. eastern time
Company Contact: Keith A. Istre
Chief Financial Officer
(225) 926-1000
KI@lamar.com
General Information
Lamar Advertising Company is a leading outdoor advertising company currently operating over 150 outdoor advertising companies in 44 states, Canada and Puerto Rico, logo businesses in 22 states and the province of Ontario, Canada and approximately 60 transit advertising franchises in the United States, Canada and Puerto Rico.
LAMAR ADVERTISING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
Three months ended Twelve months ended
December 31, December 31,
2011 2010 2011 2010
Net revenues $ 288,239 $ 275,684 $ 1,133,487 $ 1,092,291
Operating expenses (income)
Direct advertising expenses 103,243 100,495 409,052 398,467
General and administrative expenses 48,495 49,283 193,854 188,202
Corporate expenses 10,662 10,522 43,466 40,472
Non-cash compensation 4,312 5,124 11,650 17,839
Depreciation and amortization 78,185 78,579 299,639 312,703
Gain on disposition of assets ( 2,581 ) ( 1,144 ) ( 10,548 ) ( 4,900 )
242,316 242,859 947,113 952,783
Operating income 45,923 32,825 186,374 139,508
Other expense (income)
Loss on extinguishment of debt 226 - 677 17,398
Interest income ( 58 ) ( 177 ) ( 569 ) ( 367 ) Interest expense 41,636 44,726 171,093 186,048
41,804 44,549 171,201 203,079
Income (loss) before income tax 4,119 ( 11,724 ) 15,173 ( 63,571 ) Income tax (benefit) expense ( 2,253 ) ( 4,605 ) 6,623 ( 23,469 )
Net income (loss) 6,372 ( 7,119 ) 8,550 ( 40,102 ) Preferred stock dividends 92 92 365 365
Net income (loss) applicable to common stock $ 6,280 ($ 7,211 ) $ 8,185 ($ 40,467 )
Earnings per share:
Basic income (loss) per share $ 0.07 ($ 0.08 ) $ 0.09 ($ 0.44 )
Diluted income (loss) per share $ 0.07 ($ 0.08 ) $ 0.09 ($ 0.44 )
Weighted average common shares outstanding:
- basic
- diluted
92,976,771
93,171,888
92,491,327
92,959,871
92,851,067
93,173,785
92,261,157
92,673,650
OTHER DATAFree Cash Flow Computation:
Adjusted EBITDA Interest, net
Current tax expense
Preferred stock dividends
$ 125,839 $ ( 36,881 ) (
( 1,072 ) ( ( 92 ) (
115,384 $
40,194 ) (
150 ) (
92 ) (
487,115 $
152,007 ) (
2,921 ) (
365 ) (
465,150
168,747 )
1,119 )
365 )
Total capital expenditures (1) (
23,888 ) (
15,740
) ( 107,070
) ( 43,452 )
Free cash flow $ 63,906 $ 59,208 $
(1)See the capital expenditures detail included below for a breakdown by category.
Selected Balance Sheet Data:
224,752
December 31,
2011
$ 251,467
December 31,
2010
Cash and cash equivalents
Working capital
Total assets
Total debt (including current maturities) Total stockholders' equity
$ 33,503
95,281
3,427,353
2,158,528
838,998
$ 91,679
155,829
3,648,961
2,409,140
818,523
Three months ended Twelve months ended
December 31, December 31,
2011 2010 2011 2010
Other Data: | ||||
Cash flows provided by operating activities | $ 96,116 | $ 132,641 | $ 318,821 | $ 322,820 |
Cash flows used in investing activities | 29,263 | 16,553 | 117,255 | 41,480 |
Cash flows used in financing activities | 75,015 | 63,036 | 259,442 | 302,429 |
Reconciliation of Free Cash Flow to Cash Flows Provided by
Operating Activities:
Cash flows provided by operating activities | $ 96,116 | $ 132,641 | $ 318,821 | $ 322,820 |
Changes in operating assets and liabilities | ( 5,185 ) | ( 54,222 ) | 20,957 | ( 18,800 ) |
Total capital expenditures | ( 23,888 ) | ( 15,740 ) | ( 107,070 ) | ( 43,452 ) |
Preferred stock dividends | ( 92 ) | ( 92 ) | ( 365 ) | ( 365 ) |
Other | ( 3,045 ) | ( 3,379 ) | ( 7,591 ) | ( 8,736 ) |
Free cash flow | $ 63,906 | $ 59,208 | $ 224,752 | $ 251,467 |
Reconciliation of Adjusted EBITDA to Net income (loss): | ||||
Adjusted EBITDA | $ 125,839 | $ 115,384 | $ 487,115 | $ 465,150 |
Less: | ||||
Non-cash compensation | 4,312 | 5,124 | 11,650 | 17,839 |
Depreciation and amortization | 78,185 | 78,579 | 299,639 | 312,703 |
Gain on disposition of assets | ( 2,581 ) | ( 1,144 ) | ( 10,548 ) | ( 4,900 ) |
Operating Income | 45,923 | 32,825 | 186,374 | 139,508 |
Less:
N
Reconciliation of Reported Basis to Pro Forma (a) Basis:
Three months ended
December 31,
2011 2010 % Change
Reported net revenue $ 288,239 $ 275,684 4.6% Acquisitions and divestitures - 1,555
Pro forma net revenue $ 288,239 $ 277,239 4.0%
Reported direct advertising and G&A expenses
Acquisitions and divestitures
Pro forma direct advertising and G&A expenses
Reported outdoor operating income
Acquisitions and divestitures
Pro forma outdoor operating income
Reported corporate expenses $ 10,662 $ 10,522 1.3% Acquisitions and divestitures - -
Pro forma corporate expenses $ 10,662 $ 10,522 1.3%
Reported Adjusted EBITDA Acquisitions and divestitures
Pro forma Adjusted EBITDA
(a) Pro forma net revenues, direct advertising and general and administrative expenses, outdoor operating income, corporate expenses and
Adjusted EBITDA include adjustments to 2010 for acquisitions and divestitures for the same time frame as actually owned in 2011.
Reconciliation of Outdoor Operating Income to Operating Income:
Three months ended
December 31,
2011 2010
Outdoor operating income | $ | 136,501 | $ | 125,906 | |
Less: Corporate expenses | 10,662 | 10,522 | |||
Non-cash compensation | 4,312 | 5,124 | |||
Depreciation and amortization | 78,185 |
Capital expenditure detail by category
Three months ended Twelve months ended
December 31, December 31,
2011 2010 2011 2010
Billboards - traditional | $ | 9,514 | $ | 4,165 | $ | 34,425 | $ | 9,506 | |||
Billboards - digital | 9,169 | 4,639 | 41,250 | 13,214 | |||||||
Logo | 2,684 | 2,296 | 10,141 | 8,483 | |||||||
Transit | 177 | 150 | 817 | 876 | |||||||
Land and buildings | 663 | 1,810 | 4,501 | 2,531 | |||||||
Operating equipment | 1,681 | 2,680 | 15,936 | 8,842 | |||||||
Total capital expenditures | $ | 23,888 | $ | 15,740 | $ | 107,070 | $ | 43,452 |