Baton Rouge, LA – August 4, 2011 - 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, 2011.
Three Months Results
Lamar reported net revenues of $293.3 million for the second quarter of 2011 versus $286.4 million for the second quarter of 2010, a 2.4% increase. Operating income for the second quarter of 2011 was $59.4 million as compared to $49.3 million for the same period in 2010. Lamar recognized $11.4 million in net income for the second quarter of 2011 compared to a net loss of $8.9 million for the second 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 second quarter of 2011 was $133.5 million versus $131.0 million for the second quarter of 2010, a 1.9% 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 second quarter of 2011 was $68.2 million as compared to $80.7 million for the same period in 2010, a 15.4% decrease. The decrease in free cash flow is a result of the Company’s $18.5 million increase in capitalized expenditures over the comparable period in 2010.
Pro forma net revenue for the second quarter of 2011 increased 2.1% and pro forma Adjusted EBITDA increased 1.9% as compared to the second 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.
Six Months Results
Lamar reported net revenues of $548.5 million for the six months ended June 30, 2011 versus $530.5 million for the same period in 2010, a 3.4% increase. Operating income for the six months ended June 30, 2011 was $85.0 million as compared to $60.1 million for the same period in 2010. Adjusted EBITDA for the six months ended June 30, 2011 was $228.6 million versus $221.8 million for the same period in 2010. There was a net loss of $1.8 million for the six months ended June 30, 2011 as compared to a net loss of $33.8 million for the same period in 2010.
Free Cash Flow for the six months ended June 30, 2011 decreased 19.0% to $94.9 million as compared to $117.1 million for the same period in 2010.
As of June 30, 2011, Lamar had $259.1 million in total liquidity that consists of $240.4 million available for borrowing under its revolving senior credit facility and approximately $18.7 million in cash and cash equivalents.
For the third quarter of 2011 the Company expects net revenue to be approximately $293 million. On a pro forma basis this represents an increase of approximately 2%.
Forward Looking Statements
This press release contains forward-looking statements, including the statements regarding guidance for the third quarter of 2011. 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 economic recovery and the effect of the recent recession 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 2010 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.
Use of Non-GAAP Measures
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.
Conference Call Information
A conference call will be held to discuss the Company’s operating results on Thursday, August 4, 2011 at 9:00 a.m. central time. Instructions for the conference call and Webcast are provided below:
All Callers: 1-334-323-0520 or 1-334-323-9871
Available through Monday, August 8, 2011 at 11:59 p.m. EST
Live Webcast: www.lamar.com
Webcast Replay: www.lamar.com
Available through Monday, August 8, 2011 at 11:59 p.m. EST
Keith A. Istre
Chief Financial Officer
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 over 60 transit advertising franchises in the United States, Canada and Puerto Rico.