Lamar Advertising Company Announces First Quarter 2013 Operating Results

Lamar Advertising Company Announces First Quarter 2013 Operating Results

BATON ROUGE, La., May 8, 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 first quarter
ended March 31, 2013.

First Quarter Results

Lamar reported net revenues of $283.5 million for the first quarter of 2013
versus $266.2 million for the first quarter of 2012, a 6.5% increase.
Operating income for the first quarter of 2013 remained relatively constant
over the same period in 2012 at $25.9 million. During the quarter ended March
31, 2013, the Company recognized a net loss of $6.1 million as compared to a
net loss of $22.8 million for the first quarter of 2012.

Adjusted EBITDA, (defined as operating income before non-cash compensation,
depreciation and amortization and gain on disposition of assets - see
reconciliation to net loss at the end of this release) for the first quarter
of 2013 was $110.0 million versus $99.8 million for the first quarter of 2012,
a 10.2% 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 first
quarter of 2013 was $49.9 million as compared to $44.2 million for the same
period in 2012, an increase of 13.0%.

Pro forma net revenue for the first quarter of 2013 increased 2.4% and pro
forma Adjusted EBITDA increased 5.2% as compared to the first quarter of 2012.
Pro forma net revenue and Adjusted EBITDA include adjustments to the 2012
period for acquisitions and divestitures for the same time frame as actually
owned in the 2013 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.

Liquidity

As of March 31, 2013, Lamar had $318.5 million in total liquidity that
consists of $243.0 available for borrowing under its revolving senior credit
facility and $75.5 million in cash and cash equivalents.

Real Estate Investment Trust Update

As previously disclosed, we are actively considering an election to real
estate investment trust (REIT) status. We submitted a private letter ruling
request to the Internal Revenue Service on November 16, 2012 in conjunction
with our review regarding a potential REIT election. 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 second quarter of 2013 the Company expects net revenue to be
approximately $322 million to $325 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 second quarter of 2013 and consideration
of an election to 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; (7) the market for our Class A common stock and (8) our ability
to qualify as a REIT. For additional information regarding factors that may
cause actual results to differ materially from those indicated in our
forward-looking statements, we refer you the risk factors included in Item 1A
of our Annual Report on Form 10-K for the year ended December 31, 2012, 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 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
Wednesday, May 8, 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
Passcode:       Lamar
               
Replay:         1-334-323-7226
Passcode:       73357093
               Available through Monday, May 13, 2013 at 11:59 p.m. eastern
                time
               
Live Webcast:   www.lamar.com
               
Webcast Replay: www.lamar.com
               Available through Monday, May 13, 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
                                                    March 31,
                                                    2013        2012
                                                               
Net revenues                                         $ 283,479   $ 266,238
                                                               
Operating expenses (income)                                     
Direct advertising expenses                         106,519     103,423
General and administrative expenses                 54,262      51,314
Corporate expenses                                  12,701      11,659
Non-cash compensation                                10,773      2,612
Depreciation and amortization                        73,901      72,373
Gain on disposition of assets                        (606)       (936)
                                                    257,550     240,445
                                                               
Operating income                                    25,929      25,793
                                                               
Other expense (income)                                          
Loss on extinguishment of debt                       —           29,972
Interest income                                      (28)        (58)
Interest expense                                     36,700      39,914
                                                    36,672      69,828
Loss before income tax                              (10,743)    (44,035)
Income tax benefit                                  (4,673)     (21,219)
                                                               
Net loss                                             (6,070)     (22,816)
Preferred stock dividends                            91          91
Net loss applicable to common stock                  ($ 6,161)   ($ 22,907)
                                                               
Loss per share:                                                 
Basic and diluted loss per share                     ($ 0.07)    ($ 0.25)
                                                               
Weighted average common shares outstanding:                     
- basic                                              93,974,956  93,114,125
- diluted                                            94,350,240  93,457,603
                                                               
OTHER DATA                                                     
Free Cash Flow Computation:                                     
Adjusted EBITDA                                      $ 109,997   $ 99,842
Interest, net (excluding amortization of debt        (33,766)    (35,359)
issuance costs)
Current tax expense                                  (413)      (445)
Preferred stock dividends                            (91)       (91)
Total capital expenditures ^(1)                      (25,788)    (19,747)
Free cash flow                                       $ 49,939    $ 44,200
^(1)See the capital expenditures detail included                
below for a breakdown by category.                             
                                                               
                                                    March 31, December 31,
                                                    2013        2012
Selected Balance Sheet Data:                                    
Cash and cash equivalents                            $ 75,474    $ 58,911
Working capital                                     136,709     103,778
Total assets                                         3,510,658   3,514,030
Total debt (including current maturities)            2,154,872   2,160,854
Total stockholders' equity                           880,741     874,833

                                                         
                                                         Three months ended
                                                         March 31,
                                                         2013      2012
                                                                  
Other Data:                                                        
Cash flows provided by operating activities               $ 51,721  $ 36,702
Cash flows used in investing activities                   29,355    24,040
Cash flows used in financing activities                   5,451     10,595
                                                                  
                                                                  
Reconciliation of Free Cash Flow to Cash Flows Provided            
by Operating Activities:
Cash flows provided by operating activities               $ 51,721  $ 36,702
Changes in operating assets and liabilities               25,374    28,299
Total capital expenditures                                (25,788)  (19,747)
Preferred stock dividends                                 (91)      (91)
Other                                                     (1,277)   (963)
Free cash flow                                            $ 49,939  $ 44,200
                                                                  
                                                                  
Reconciliation of Adjusted EBITDA to Net loss:                     
Adjusted EBITDA                                           $ 109,997 $ 99,842
Less:                                                              
Non-cash compensation                                     10,773    2,612
Depreciation and amortization                             73,901    72,373
Gain on disposition of assets                             (606)     (936)
Operating Income                                          25,929    25,793
                                                                  
Less:                                                              
Loss on extinguishment of debt                            —         29,972
Interest income                                           (28)      (58)
Interest expense                                          36,700    39,914
Income tax benefit                                        (4,673)   (21,219)
Net loss                                                  ($ 6,070) ($ 22,816)
                                                                  

                                                                    
                                                 Three months ended  
                                                 March 31,           
                                                 2013      2012      % Change
Reconciliation of Reported GAAP results to Pro                      
Forma (a) results:
Net revenue                                       $ 283,479 $ 266,238 6.5%
Acquisitions and divestitures                     —         10,722    
Pro forma net revenue                             $ 283,479 $ 276,960 2.4%
                                                                   
Direct advertising and G&A expenses               $ 160,781 $ 154,737 3.9%
Acquisitions and divestitures                     —         6,046     
Pro forma direct advertising and G&A expenses     $ 160,781 $ 160,783 0.0%
                                                                   
Outdoor operating income                          $ 122,698 $ 111,501 10.0%
Acquisitions and divestitures                     —         4,676     
Pro forma outdoor operating income                $ 122,698 $ 116,177 5.6%
                                                                   
Corporate expenses                                $ 12,701  $ 11,659  8.9%
Acquisitions and divestitures                     —         —         
Pro forma corporate expenses                      $ 12,701  $ 11,659  8.9%
                                                                   
Adjusted EBITDA                                   $ 109,997 $ 99,842  10.2%
Acquisitions and divestitures                     —         4,676     
Pro forma Adjusted EBITDA                         $ 109,997 $ 104,518 5.2%

(a)Pro forma net revenues, direct advertising and general and administrative
expenses, outdoor operating income, corporate expenses and Adjusted EBITDA
include adjustments to 2012 for acquisitions and divestitures for the same
time frame as actually owned in 2013.

                                                          Three months ended
                                                          March 31,
                                                          2013      2012
Reconciliation of Outdoor Operating Income to Operating             
Income:
Outdoor operating income                                   $ 122,698 $ 111,501
Less:Corporate expenses                                   12,701    11,659
Non-cash compensation                                      10,773    2,612
Depreciation and amortization                              73,901    72,373
Plus:Gain on disposition of assets                        606       936
Operating income                                           $ 25,929  $ 25,793

                                      
                                      Three months ended
                                      March 31,
                                      2013      2012
Capital expenditure detail by category          
Billboards - traditional               $ 6,218   $ 5,066
Billboards - digital                   11,623    7,910
Logo                                   1,863     1,319
Transit                                20        21
Land and buildings                     2,784     1,685
Operating equipment                    3,280     3,746
Total capital expenditures             $ 25,788  $ 19,747

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