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Lamar Advertising Company Announces Third Quarter 2012 Operating Results

Lamar Advertising Company Announces Third Quarter 2012 Operating Results

BATON ROUGE, La., Nov. 7, 2012 (GLOBE NEWSWIRE) -- 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, 2012.

Three Months Results

Lamar reported net revenues of $306.3 million for the third quarter of 2012
versus $296.7 million for the third quarter of 2011, a 3.2% increase.
Operating income for the third quarter of 2012 was $63.5 million as compared
to $55.4 million for the same period in 2011. Lamar recognized $11.5 million
in net income for the third quarter of 2012 compared to net income of $4.0
million for the third quarter of 2011.

Adjusted EBITDA, (defined as operating income before non-cash compensation,
depreciation and amortization and gain on disposition of assets - see
reconciliation to net income at the end of this release) for the third quarter
of 2012 was $140.6 million versus $132.6 million for the third quarter of
2011, a 6.0% 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 third
quarter of 2012 was $77.7 million as compared to $66.0 million for the same
period in 2011, a 17.8% increase.

Pro forma net revenue for the third quarter of 2012 increased 2.0% and pro
forma Adjusted EBITDA increased 4.9% as compared to the third quarter of 2011.
Pro forma net revenue and Adjusted EBITDA include adjustments to the 2011
period for acquisitions and divestitures for the same time frame as actually
owned in the 2012 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.

Nine Months Results

Lamar reported net revenues of $877.4 million for the nine months ended
September 30, 2012 versus $845.2 million for the same period in 2011, a 3.8%
increase. Operating income for the nine months ended September 30, 2012 was
$153.8 million as compared to $140.5 million for the same period in 2011.
Adjusted EBITDA for the nine months ended September 30, 2012 was $378.6
million versus $361.3 million for the same period in 2011. There was net
income of $2.6 million for the nine months ended September 30, 2012 as
compared to net income of $2.2 million for the same period in 2011.

Free Cash Flow for the nine months ended September 30, 2012 increased 21.6% to
$195.6 million as compared to $160.8 million for the same period in 2011.

Liquidity

As of September 30, 2012, Lamar had $265.7 million in total liquidity that
consists of $227.3 million available for borrowing under its revolving senior
credit facility and approximately $38.4 million in cash and cash equivalents.

Recent Developments

On October 30, 2012 Lamar announced that its wholly owned subsidiary, Lamar
Media Corp., closed a private placement of $535 million in aggregate principal
amount of 5% Senior Subordinated Notes due 2023. The proceeds of the offering
to Lamar Media, after the payment of fees and expenses, were approximately
$527.1 million.

On October 31, 2012 Lamar Media Corp. closed its previously announced
acquisition of NextMedia Outdoor, Inc., which has outdoor operations in
Colorado, Kansas, Nebraska, North Carolina, South Carolina, Virginia, Wyoming
and Wisconsin.

Guidance

As noted above, Lamar Media Corp. acquired NextMedia Outdoor, Inc. effective
October 31, 2012. Due to the timing of the closing of the transaction,
guidance for Q4 2012 does not include expected revenue from the NextMedia
assets during November and December. Guidance for Q1 2013 will include revenue
from the NextMedia assets and will be pro forma comparative.

For the fourth quarter of 2012 the Company expects net revenue to be
approximately $298 to $301 million. On a pro forma basis this represents an
increase of approximately 2% to 3%.

Forward Looking Statements

This press release contains forward-looking statements, including the
statements regarding guidance for the fourth 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 included 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.

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, 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
Wednesday, November 7, 2012 at 10:30 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:       37477136
               Available through Monday, November 12, 2012 at 11:59 p.m.
                eastern time
               
Live Webcast:   www.lamar.com
               
Webcast Replay: www.lamar.com
               Available through Monday, November 12, 2012 at 11:59 p.m.
                eastern time

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 over 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      Nine months ended
                          September 30,           September 30,
                          2012        2011        2012          2011
                                                             
Net revenues               $306,286  $296,701  $877,396    $845,248
                                                             
Operating expenses                                            
(income)
Direct advertising         103,845    103,200    312,339      305,809
expenses
General and administrative 50,167     49,534     151,071      145,359
expenses
Corporate expenses        11,707     11,320     35,338       32,804
Non-cash compensation      3,869      2,660      10,902       7,338
Depreciation and           73,915     75,171     219,283      221,454
amortization
Gain on disposition of     (739)      (609)      (5,309)      (7,967)
assets
                          242,764    241,276    723,624      704,797
Operating income          63,522     55,425     153,772      140,451
                                                             
Other expense (income)                                        
Loss on extinguishment of  1,984      451        31,956       451
debt
Interest income            (147)      (428)      (270)        (511)
Interest expense           38,534     42,530     117,081      129,457
                          40,371     42,553     148,767      129,397
                                                             
Income before income tax  23,151     12,872     5,005        11,054
Income tax expense        11,655     8,880      2,403        8,876
                                                             
Net income                11,496     3,992      2,602        2,178
Preferred stock dividends  91         91         273          273
Net income applicable to   $11,405   $3,901    $2,329      $1,905
common stock
                                                             
Earnings per share:                                           
Basic income per share     $0.12     $0.04     $0.02       $0.02
                                                             
Diluted income per share   $0.12     $0.04     $0.02       $0.02
                                                             
Weighted average common                                       
shares outstanding:
- basic                    93,423,063 92,901,470 93,265,621   92,808,705
- diluted                  93,729,512 93,076,619 93,550,891   93,171,700
                                                             
OTHER DATA                                                   
Free Cash Flow                                                
Computation:
Adjusted EBITDA            $140,567  $132,647  $378,648    $361,276
Interest, net              (34,057)   (37,423)   (103,710)    (115,126)
Current tax expense       (521)      (646)      (1,304)      (1,849)
Preferred stock dividends  (91)       (91)       (273)        (273)
Total capital expenditures (28,205)   (28,529)   (77,747)     (83,182)
^(1)
Free cash flow             $77,693   $65,958   $195,614    $160,846
^(1)See the capital
expenditures detail                                           
included below for a
breakdown by category.
                                                             
                                                September 30, December 31,
                                                2012          2011
Selected Balance Sheet                                        
Data:
Cash and cash equivalents                        $38,448     $33,503
Working capital                                  100,836      95,281
Total assets                                     3,393,194    3,427,353
Total debt (including                            2,075,608    2,158,528
current maturities)
Total stockholders' equity                       860,931      838,998
                                                             

                                  Three months ended    Nine months ended
                                  September 30,         September 30,
                                  2012       2011       2012       2011
                                                                
Other Data:                                                      
Cash flows provided by operating   $119,326 $112,266 $253,349 $222,705
activities
Cash flows used in investing       68,250    33,631    127,344   87,992
activities
Cash flows used in financing       112,130   55,109    121,582   184,427
activities
                                                                
                                                                
Reconciliation of Free Cash Flow
to Cash Flows Provided by                                        
Operating Activities:
Cash flows provided by operating   $119,326 $112,266 $253,349 $222,705
activities
Changes in operating assets and    (11,769)  (15,858)  24,593    26,142
liabilities
Total capital expenditures         (28,205)  (28,529)  (77,747)  (83,182)
Preferred stock dividends          (91)      (91)      (273)     (273)
Other                              (1,568)   (1,830)   (4,308)   (4,546)
Free cash flow                     $77,693  $65,958  $195,614 $160,846
                                                                
                                                                
Reconciliation ofAdjusted EBITDA                                
to Net income:
Adjusted EBITDA                    $140,567 $132,647 $378,648 $361,276
Less:                                                            
Non-cash compensation              3,869     2,660     10,902    7,338
Depreciation and amortization      73,915    75,171    219,283   221,454
Gain on disposition of assets      (739)     (609)     (5,309)   (7,967)
Operating Income                   63,522    55,425    153,772   140,451
                                                                
Less:                                                            
Interest income                    (147)     (428)     (270)     (511)
Loss on extinguishment of debt     1,984     451       31,956    451
Interest expense                   38,534    42,530    117,081   129,457
Income tax expense                11,655    8,880     2,403     8,876
Net income                        $11,496  $3,992   $2,602   $2,178
                                                                

                                Three months ended             
                                September 30,                  
                                2012            2011            % Change
Reconciliation of Reported Basis                               
to Pro Forma (a) Basis:
Reported net revenue             $306,286      $296,701      3.2%
Acquisitions and divestitures    —             3,633          
Pro forma net revenue            $306,286      $300,334      2.0%
                                                              
Reported direct advertising and  $154,012      $152,734      0.8%
G&A expenses
Acquisitions and divestitures    —             2,314          
Pro forma direct advertising and $154,012      $155,048      (0.7%)
G&A expenses
                                                              
Reported outdoor operating       $152,274      $143,967      5.8%
income
Acquisitions and divestitures    —             1,319          
Pro forma outdoor operating      $152,274      $145,286      4.8%
income
                                                              
Reported corporate expenses      $11,707       $11,320       3.4%
Acquisitions and divestitures    —             —             
Pro forma corporate expenses     $11,707       $11,320       3.4%
                                                              
Reported Adjusted EBITDA         $140,567      $132,647      6.0%
Acquisitions and divestitures    —             1,319          
Pro forma Adjusted EBITDA        $140,567      $133,966      4.9%
                                                              
(a)Pro forma net revenues, direct advertising and general and administrative
expenses, outdoor operating income, corporate expenses and Adjusted EBITDA
include adjustments to 2011 for acquisitions and divestitures for the same
time frame as actually owned in 2012.
                                                              

                                                        Three months ended
                                                        September 30,
                                                        2012       2011
Reconciliation of Outdoor Operating Income to Operating            
Income:
Outdoor operating income                                 $152,274 $143,967
Less:Corporate expenses                                 11,707    11,320
Non-cash compensation                                    3,869     2,660
Depreciation and amortization                            73,915    75,171
Plus:Gain on disposition of assets                      739       609
Operating income                                         $63,522  $55,425
                                                                  

                                      Three months ended  Nine months ended
                                      September 30,       September 30,
                                      2012      2011      2012      2011
Capital expenditure detail by category                            
Billboards - traditional               $5,917  $7,609  $20,938 $24,911
Billboards - digital                   12,272   11,983   32,334   32,081
Logo                                   2,267    2,777    5,547    7,457
Transit                                26       168      110      640
Land and buildings                     4,486    3,026    9,401    3,838
Operating equipment                    3,237    2,966    9,417    14,255
Total capital expenditures             $28,205 $28,529 $77,747 $83,182

CONTACT: Company Contact:
         Keith A. Istre
         Chief Financial Officer
         (225) 926-1000
         KI@lamar.com