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
Lamar Advertising Company Announces First Quarter 2013 Operating Results
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