Lamar Advertising Company Announces Fourth Quarter and Year End 2012 Operating Results

Lamar Advertising Company Announces Fourth Quarter and Year End 2012 Operating
Results

BATON ROUGE, La., Feb. 27, 2013 (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 fourth
quarter ended December 31, 2012.

Fourth Quarter Results

Lamar reported net revenues of $305.5 million for the fourth quarter of 2012
versus $288.2 million for the fourth quarter of 2011, a 6.0% increase.
Operating income for the fourth quarter of 2012 was $63.9 million as compared
to $45.9 million for the same period in 2011. Lamar recognized $7.2 million in
net income for the fourth quarter of 2012 compared to net income of $6.4
million for the fourth 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 fourth
quarter of 2012 was $135.8 million versus $125.8 million for the fourth
quarter of 2011, a 7.9% 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 fourth
quarter of 2012 was $71.9 million as compared to $63.9 million for the same
period in 2011, a 12.6% increase.

Pro forma net revenue for the fourth quarter of 2012 increased 2.6% and pro
forma Adjusted EBITDA increased 3.6% as compared to the fourth 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, excluding new markets acquired as a result
of the acquisition of NextMedia Outdoor, Inc., (the "Next markets"), which
closed on October 31, 2012. As a result, our pro forma results for the 2012
period exclude the operating results from the Next markets and no adjustment
has been made to the 2011 period with respect to the acquisition of the Next
markets. Tables that reconcile reported results to pro forma results and
operating income to outdoor operating income are included at the end of this
release.

Twelve Months Results

Lamar reported net revenues of $1.2 billion for the twelve months ended
December 31, 2012 versus $1.1 billion for the same period in 2011, a 4.4%
increase. Operating income for the twelve months ended December 31, 2012 was
$217.7 million as compared to $186.4 million for the same period in 2011.
Adjusted EBITDA for the twelve months ended December 31, 2012 was $514.4
million versus $487.1 million for the same period in 2011. There was net
income of $9.8 million for the twelve months ended December 31, 2012 as
compared to net income of $8.6 million for the same period in 2011.

Free Cash Flow for the twelve months ended December 31, 2012 increased 19.0%
to $267.5 million as compared to $224.8 million for the same period in 2011.

Liquidity

As of December 31, 2012, Lamar had $301.2 million in total liquidity that
consists of $242.3 million available for borrowing under its revolving senior
credit facility and approximately $58.9 million in cash and cash equivalents.

Recent Significant Transactions

Notes Offering. On October 30, 2012, Lamar's wholly owned subsidiary, Lamar
Media Corp., closed a private placement of $535 million in aggregate principal
amount of 5% Senior Subordinated Notes due 2023, which resulted in net
proceeds to Lamar Media of approximately $527 million.

NextMedia Acquisition. On October 31, 2012, the Company used a portion of the
proceeds from the 5% Senior Subordinated Notes offering to purchase all of the
outstanding common stock of NextMedia Outdoor, Inc. for $145 million in cash.

Early Extinguishment of Debt. During November 2012, Lamar Media used a portion
of the proceeds from the 5% Senior Subordinated Notes offering to redeem in
full all its outstanding 6 5/8% Senior Subordinated Notes due 2015
(approximately $137.2 million in aggregate principal amount) at a redemption
price of 101.104% plus accrued and unpaid interest up to but not including the
applicable redemption date for an aggregate redemption price of approximately
$141.1 million. In addition, on December 14, 2012, Lamar Media repaid $295
million of the Term B loan outstanding under its senior credit facility.
Approximately $22 million remains outstanding under the Term B loan as of
December 31, 2012.

In connection with the prepayments described above, the Company recorded a
loss on early extinguishment of debt of $9.7 million for the fourth quarter of
2012, of which $4.3 million related to the write off of previously capitalized
and unamortized debt issuance fees.

Real Estate Investment Trust Update

As previously disclosed, we are actively considering an election to real
estate investment trust (REIT) status. On November 16, 2012, in conjunction
with our review regarding a potential REIT election, we submitted a private
letter ruling request to the Internal Revenue Service. If we receive a
favorable response and decide to proceed with a REIT election, we intend to
make the election for the taxable year beginning January 1, 2014, subject to
the approval of our board of directors. A favorable IRS ruling, if received,
does not guarantee that we would succeed in qualifying as a REIT and there is
no certainty as to the timing of a REIT election or whether we will ultimately
decide to make a REIT election.

Guidance

For the first quarter of 2013 the Company expects net revenue to be
approximately $282 million to $285 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 first quarter of 2013 and our
consideration to elect real estate investment trust status. 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; and (7) the market for our Class A common stock. For additional
information regarding factors that may cause actual results to differ
materially from those indicated in our forward-looking statements, we refer
you to the information contained in Item 1A of our Form 10-K for the year
ended December 31, 2011. 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 management believes that excluding the operating results related
to the Next markets from our pro forma results is useful to investors during
the initial integration. 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, February 27, 2013 at 10:00 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
Pass Code:      Lamar
                 
Replay:         1-334-323-7226
Pass Code:      20435467
                Available through Monday, March 4, 2013 at 11:59 p.m. eastern
                time
                 
Live Webcast:   www.lamar.com
                 
Webcast Replay: www.lamar.com
                Available through Monday, March 4, 2013 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    Twelve months ended
                               December 31,          December 31,
                              2012       2011       2012         2011
                                                                  
Net revenues                  $ 305,505  $ 288,239  $ 1,182,901  $ 1,133,487
                                                                  
Operating expenses (income)                                       
Direct advertising expenses   106,199    103,243    418,538      409,052
General and administrative    51,994     48,495     203,065      193,854
expenses 
Corporate expenses            11,537     10,662     46,875       43,466
Non-cash compensation         3,564      4,312      14,466       11,650
Depreciation and amortization 76,800     78,185     296,083      299,639
Gain on disposition of assets (8,508)    (2,581)    (13,817)     (10,548)
                              241,586    242,316    965,210      947,113
Operating income              63,919     45,923     217,691      186,374
                                                                  
Other expense (income)                                            
Loss on extinguishment of     9,676      226        41,632       677
debt
Interest income               (61)       (58)       (331)        (569)
Interest expense              40,012     41,636     157,093      171,093
                              49,627     41,804     198,394      171,201
                                                                  
Income before income tax      14,292     4,119      19,297       15,173
Income tax expense (benefit)  7,073      (2,253)    9,476        6,623
                                                                  
Net income                    7,219      6,372      9,821        8,550
Preferred stock dividends     92         92         365          365
Net income applicable to      $ 7,127    $ 6,280    $ 9,456      $ 8,185
common stock
                                                                  
Earnings per share:                                               
 Basic income per share       $ 0.08     $ 0.07     $ 0.10       $ 0.09
 Diluted income per share     $ 0.08     $ 0.07     $ 0.10       $ 0.09
                                                                  
                                                                  
Weighted average common       93,717,650 92,976,771  93,379,246  92,851,067
shares outstanding:
 - basic                      94,075,642 93,171,888 93,666,641   93,173,785
 - diluted                                                        
                                                                  
OTHER DATA                                                        
Free Cash Flow Computation:                                       
Adjusted EBITDA               $ 135,775  $ 125,839  $ 514,423    $ 487,115
Interest, net                 (35,311)   (36,881)   (139,021)    (152,007)
Current tax expense           (622)      (1,072)    (1,926)      (2,921)
Preferred stock dividends     (92)       (92)       (365)        (365)
Total capital expenditures    (27,823)   (23,888)   (105,570)    (107,070)
^(1)
Free cash flow                $ 71,927   $ 63,906   $ 267,541    $ 224,752
^(1)See the capital
expenditures detail                                               
included  
below for a breakdown by                                          
category.
                                                    December 31,  December 31,
                                                    2012         2011
Selected Balance Sheet Data:                                      
Cash and cash equivalents                           $ 58,911     $ 33,503
Working capital                                     103,778      95,281
Total assets                                        3,514,030    3,427,353
Total debt (including current                       2,160,854    2,158,528
maturities)
Total stockholders' equity                          874,833      838,998

                                                            
                                                            
                                       Three months ended  Twelve months ended
                                        December 31,           December 31,
                                       2012       2011     2012       2011
                                                                      
Other Data:                                                           
Cash flows provided by operating       $ 122,560 $ 96,116  $ 375,909 $ 318,821
activities
Cash flows used in investing           176,055   29,263    303,399   117,255
activities
Cash flows provided by (used in)       74,165    (75,015)  (47,417)  (259,442)
financing activities
                                                                      
                                                                      
Reconciliation of Free Cash Flow to
Cash Flows Provided by Operating                                      
Activities:
Cash flows provided by operating       $ 122,560 $ 96,116  $ 375,909 $ 318,821
activities
Changes in operating assets and        (21,542)  (5,185)   3,051     20,957
liabilities
Total capital expenditures             (27,823)  (23,888)  (105,570) (107,070)
Preferred stock dividends              (92)      (92)      (365)     (365)
Other                                  (1,176)   (3,045)   (5,484)   (7,591)
Free cash flow                         $ 71,927  $ 63,906  $ 267,541 $ 224,752
                                                                      
                                                                      
Reconciliation of Adjusted EBITDA to                                  
Net income (loss):
Adjusted EBITDA                        $ 135,775 $ 125,839 $ 514,423 $ 487,115
Less:                                                                 
Non-cash compensation                  3,564     4,312     14,466    11,650
Depreciation and amortization          76,800    78,185    296,083   299,639
Gain on disposition of assets          (8,508)   (2,581)   (13,817)  (10,548)
Operating Income                       63,919    45,923    217,691   186,374
                                                                      
Less:                                                                 
Interest income                        (61)      (58)      (331)     (569)
Loss on extinguishment of debt         9,676     226       41,632    677
Interest expense                       40,012    41,636    157,093   171,093
Income tax expense (benefit)           7,073     (2,253)   9,476     6,623
Net income                             $ 7,219   $ 6,372   $ 9,821   $ 8,550
                                                                      

                                                                              
                                   Three months ended                         
                                   December 31,                               
                                   2012           2011          % Change
Reconciliation of Reported Basis                                 
to Pro Forma (a) Basis:
Reported net revenue               $ 305,505      $ 288,239     6.0%
Acquisitions and divestitures,     —              4,517          
excluding the Next markets
Less net revenue – Next markets    5,156          —              
Pro forma net revenue, excluding   $ 300,349      $ 292,756      2.6%
the Next markets
                                                                 
Reported direct advertising and    $ 158,193      $ 151,738     4.3%
G&A expenses
Acquisitions and divestitures,     —              2,734          
excluding the Next markets
Less direct advertising and G&A    1,546          —              
expenses – Next markets
Pro forma direct advertising and
G&A expenses, excluding the Next   $ 156,647      $ 154,472     1.4%
markets
                                                                 
Reported outdoor operating income  $ 147,312      $ 136,501     7.9%
Acquisitions and divestitures,     —              1,783          
excluding the Next markets
Less outdoor operating income –    3,610          —              
Next markets
Pro forma outdoor operating        $ 143,702      $ 138,284     3.9%
income, excluding the Next markets
                                                                 
Reported corporate expenses        $ 11,537       $ 10,662      8.2%
Acquisitions and divestitures,     —              —              
excluding the Next markets
Pro forma corporate expenses,      $ 11,537       $ 10,662      8.2%
excluding the Next markets
                                                                 
Reported Adjusted EBITDA           $ 135,775      $ 125,839     7.9%
Acquisitions and divestitures,     —              1,783          
excluding the Next markets
Less EBITDA – Next markets         3,610          —              
Pro forma Adjusted EBITDA,         $ 132,165      $ 127,622     3.6%
excluding the Next markets
                                                                 
(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, excluding
the operating results of the Next markets. As a result, our pro forma
results for the 2012 period  excludes the operating results from the Next
markets and no adjustment has been made to the 2011 period with respect to
the acquisition of the Next markets.

                                                         
                                                            Three months ended
                                                           December 31, 
                                                           2012     2011
Reconciliation of Outdoor Operating Income to Operating              
Income:
Outdoor operating income                                $ 147,312   $ 136,501
Less: Corporate expenses                                11,537      10,662
Non-cash compensation                                   3,564       4,312
Depreciation and amortization                           76,800      78,185
Plus: Gain on disposition of assets                     8,508       2,581
Operating income                                        $ 63,919    $ 45,923

                                                           
                                    Three months ended    Twelve months ended
                                        December 31,      December 31, 
                                    2012       2011       2012      2011
Capital expenditure detail by                                        
category
Billboards - traditional            $ 8,123    $ 9,514    $ 29,061   $  34,425
Billboards - digital                9,800      9,169      42,134     41,250
Logo                                3,157      2,684      8,704     10,141
Transit                             149        177        259       817
Land and buildings                  3,396      663        12,797    4,501
Operating equipment                 3,198      1,681      12,615    15,936
Total capital expenditures          $ 27,823   $ 23,888   $ 105,570  $ 107,070

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