Lamar Advertising Company Announces Second Quarter 2013 Operating Results

Lamar Advertising Company Announces Second Quarter 2013 Operating Results

BATON ROUGE, La., Aug. 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 second
quarter ended June 30, 2013.

Three Months Results

Lamar reported net revenues of $324.7 million for the second quarter of 2013
versus $304.9 million for the second quarter of 2012, a 6.5% increase.
Operating income for the second quarter of 2013 was $70.3 million as compared
to $64.5 million for the same period in 2012. Lamar recognized $21.3 million
in net income for the second quarter of 2013 compared to a net income of $13.9
million for the second 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 income (loss) at the end of this release) for the second
quarter of 2013 was $148.4 million versus $138.2 million for the second
quarter of 2012, a 7.3% 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 2013 was $86.7 million as compared to $73.7 million for the same
period in 2012, a 17.7% increase.

Pro forma net revenue for the second quarter of 2013 increased 2.7% and pro
forma Adjusted EBITDA increased 3.5% as compared to the second 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.

Six Months Results

Lamar reported net revenues of $608.2 million for the six months ended June
30, 2013 versus $571.1 million for the same period in 2012, a 6.5% increase.
Operating income for the six months ended June 30, 2013 was $96.2 million as
compared to $90.3 million for the same period in 2012. Adjusted EBITDA for the
six months ended June 30, 2013 was $258.4 million versus $238.1 million for
the same period in 2012. In addition, Lamar recognized net income of $15.2
million for the six months ended June 30, 2013 as compared to a net loss of
$8.9 million for the same period in 2012.

Free Cash Flow for the six months ended June 30, 2013 increased 15.9% to
$136.7 million as compared to $117.9 million for the same period in 2012.

Liquidity

As of June 30, 2013, Lamar had $361.9 million in total liquidity that consists
of $243.0 million available for borrowing under its revolving senior credit
facility and approximately $118.9 million in cash and cash equivalents.

Real Estate Investment Trust Update

As previously announced, we are actively considering an election to real
estate investment trust (REIT) status and are currently evaluating the steps
necessary to implement conversion to a REIT. In conjunction with this review,
we submitted a private letter ruling request to the U.S. Internal Revenue
Service (the "IRS") in November of 2012 regarding a potential REIT election.
As disclosed in June 2013, we have been advised by the IRS that it has decided
to study the current legal standards it uses to define "real estate" for
purposes of the REIT provisions of the U.S. Internal Revenue Code. We have
received no additional information from the IRS to date with respect to the
status of our private letter ruling request and the duration of the IRS's
study could delay the issuance of the private letter ruling. Based on current
information, we have no reason to conclude that we will not be in a position
to convert to a REIT effective for the taxable year beginning January 1, 2014.

Our decision to proceed with a REIT election is 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. We may not ultimately pursue a conversion to a
REIT, and we can provide no assurance that a REIT conversion, if completed,
will be successfully implemented or achieve the intended benefits.

Guidance

For the third quarter of 2013 the Company expects net revenue to be
approximately $320 million to $323 million.On a pro forma basis this
represents an increase of approximately 1% to 2%.

Forward Looking Statements

This press release contains forward-looking statements, including the
statements regarding guidance for the third quarter of 2013 and our
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
toqualify 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 to 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 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 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
Pass Code:      Lamar
               
Replay:         1-334-323-7226
Pass Code:      36185060
               Available through Tuesday, August 13, 2013 at 11:59 p.m.
                eastern time
               
Live Webcast:   www.lamar.com
               
Webcast Replay: www.lamar.com
               Available through Tuesday, August 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 approximately 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    Six months ended
                               June 30,              June 30,
                               2013       2012       2013       2012
                                                             
Net revenues                    $ 324,684  $ 304,872  $ 608,163  $ 571,110
                                                             
Operating expenses (income)                                   
Direct advertising expenses
(exclusive ofdepreciation and  110,723    105,071    217,242    208,494
amortization)
General and administrative
expenses(exclusive of          52,131     49,590     106,393    100,904
depreciation andamortization
and non-cash compensation)
Corporate expenses(exclusive
ofdepreciation and             13,444     11,972     26,145     23,631
amortization and non-cash
compensation)
Non-cash compensation           6,422      4,421      17,195     7,033
Depreciation and amortization   72,408     72,995     146,309    145,368
Gain on disposition of assets   (701)      (3,634)    (1,307)    (4,570)
                               254,427    240,415    511,977    480,860
Operating income               70,257     64,457     96,186     90,250
                                                             
Other expense (income)                                        
Loss on extinguishment of debt  —          —          —          29,972
Interest income                 (51)       (65)       (79)       (123)
Interest expense                37,887     38,633     74,587     78,547
                               37,836     38,568     74,508     108,396
                                                             
Income (loss) before income     32,421     25,889     21,678     (18,146)
tax
Income tax expense (benefit)   11,166     11,967     6,493      (9,252)
                                                             
                                                             
Net income (loss)               21,255     13,922     15,185     (8,894)
Preferred stock dividends       91         91         182        182
Net income (loss) applicable to $ 21,164   $ 13,831   $ 15,003   ($ 9,076)
common stock
                                                             
Earnings per share:                                           
Basic income (loss) per share   $ 0.22     $ 0.15     $ 0.16     ($ 0.10)
Diluted income (loss) per share $ 0.22     $ 0.15     $ 0.16     ($ 0.10)
                                                             
Weighted average common shares                                
outstanding:
- basic                         94,337,967 93,257,798 94,157,464 93,186,036
- diluted                       94,813,138 93,543,471 94,593,760 93,498,748
                                                             
OTHER DATA                                                   
Free Cash Flow Computation:                                   
Adjusted EBITDA                 $ 148,386  $ 138,239  $ 258,383  $ 238,081
Interest, net                   (33,650)   (34,294)   (67,416)   (69,653)
Current tax expense             (972)      (338)      (1,385)    (783)
Preferred stock dividends       (91)       (91)       (182)      (182)
Total capital expenditures ^(1) (26,933)   (29,795)   (52,721)   (49,542)
Free cash flow                  $86,740   $ 73,721   $ 136,679  $ 117,921
^(1)See the capital                                           
expenditures detail included
below for a breakdown by                                     
category.
                                                   June 30,  December 31,
                                                   2013       2012
Selected Balance Sheet Data:                                  
Cash and cash equivalents                           $ 118,880  $ 58,911
Working capital (deficit)                           (157,999)  103,778
Total assets                                        3,558,521  3,514,030
Total debt (including current                       2,148,918  2,160,854
maturities)
Total stockholders' equity                          909,197    874,833

                                                         
                                                         
                                      Three months ended  Six months ended
                                      June 30,            June 30,
                                      2013      2012      2013      2012
                                                                 
Other Data:                                                       
Cash flows provided by operating       $ 100,233 $ 97,321  $ 151,954 $ 134,023
activities
Cash flows used in investing           (52,897)  (35,054)  (82,252)  (59,094)
activities
Cash flows (used in) provided by       (3,360)   1,143     (8,811)   (9,452)
financing activities
                                                                 
                                                                 
Reconciliation of Free Cash Flow to
Cash Flows Provided by Operating                                  
Activities:
Cash flows provided by operating       $ 100,233 $ 97,321  $ 151,954 $ 134,023
activities
Changes in operating assets and        15,355    8,063     40,729    36,362
liabilities
Total capital expenditures             (26,933)  (29,795)  (52,721)  (49,542)
Preferred stock dividends              (91)      (91)      (182)     (182)
Other                                  (1,824)   (1,777)   (3,101)   (2,740)
Free cash flow                         $ 86,740  $ 73,721  $ 136,679 $ 117,921
                                                                 
                                                                 
Reconciliation ofAdjusted EBITDA to                              
Net income (loss):
Adjusted EBITDA                        $ 148,386 $ 138,239 $ 258,383 $ 238,081
Less:                                                             
Non-cash compensation                  6,422     4,421     17,195    7,033
Depreciation and amortization          72,408    72,995    146,309   145,368
Gain on disposition of assets          (701)     (3,634)   (1,307)   (4,570)
Operating Income                       70,257    64,457    96,186    90,250
                                                                 
Less:                                                             
Interest income                        (51)      (65)      (79)      (123)
Loss on extinguishment of debt         —         —         —         29,972
Interest expense                       37,887    38,633    74,587    78,547
Income tax expense (benefit)           11,166    11,967    6,493     (9,252)
Net income (loss)                      $ 21,255  $ 13,922  $ 15,185  ($ 8,894)
                                                                 

                                                               
                                                               
                                  Three months ended            
                                  June 30,                      
                                  2013           2012           % Change
Reconciliation of Reported Basis                               
to Pro Forma (a) Basis:
Reported net revenue               $ 324,684      $ 304,872      6.5%
Acquisitions and divestitures      —              11,417         
Pro forma net revenue              $ 324,684      $ 316,289      2.7%
                                                              
Reported direct advertising and    $ 162,854      $ 154,661      5.3%
G&A expenses
Acquisitions and divestitures      —              6,225          
Pro forma direct advertising and   $ 162,854      $ 160,886      1.2%
G&A expenses
                                                              
Reported outdoor operating income  $ 161,830      $ 150,211      7.7%
Acquisitions and divestitures      —              5,192          
Pro forma outdoor operating income $ 161,830      $ 155,403      4.1%
                                                              
Reported corporate expenses        $ 13,444       $ 11,972       12.3%
Acquisitions and divestitures      —              —              
Pro forma corporate expenses       $ 13,444       $ 11,972       12.3%
                                                              
Reported Adjusted EBITDA           $ 148,386      $ 138,239      7.3%
Acquisitions and divestitures      —              5,192          
Pro forma Adjusted EBITDA          $ 148,386      $ 143,431      3.5%

(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
                                                          June 30,
                                                          2013      2012
Reconciliation of Outdoor Operating Income to Operating             
Income:
Outdoor operating income                                  $ 161,830 $ 150,211
Less:Corporate expenses                                  13,444    11,972
Non-cash compensation                                      6,422     4,421
Depreciation and amortization                              72,408    72,995
Plus:Gain on disposition of assets                       701       3,634
Operating income                                           $ 70,257  $ 64,457

                                                         
                                                         
                                      Three months ended Six months ended
                                      June 30,            June 30,
                                      2013      2012      2013     2012
Capital expenditure detail by category                           
Billboards - traditional               $ 6,258   $ 9,955   $ 12,476 $ 15,021
Billboards - digital                   11,980    12,152    23,603   20,062
Logo                                   2,244     1,961     4,107    3,280
Transit                                8         63        28       84
Land and buildings                     2,824     3,230     5,608    4,915
Operating equipment                    3,619     2,434     6,899    6,180
Total capital expenditures             $ 26,933  $ 29,795  $ 52,721 $ 49,542

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