Lamar's 2Q results meet estimate

The advertising company reported a profit after posting a loss in the previous quarter.

By Aug 9, 2012 10:48AM

By Zacks Equity Research


Lamar Advertising Company (LAMR) reported its financial results for the second quarter 2012 on August 8. Earnings per share stood at 15 cents compared with 12 cents in the year-ago quarter and a loss of 25 cents in the previous quarter.

Second quarter results were in line with the Zacks consensus estimate of 15 cents per share.

Pro forma net revenue jumped 3.6% year over year to $304.9 million in the quarter and registered a reported growth of 3.9%. The result was slightly above management's revenue guidance of $303 million and pro forma growth forecast of 3.0%.

Direct advertising and G&A expenses in the quarter were $154.7 million, up 2.7% year over year on a pro forma basis. As reported, operating income modestly increased 8.5% year over year to $64.5 million.

Interest expense dipped 10.7% year over year to $38.6 million in the quarter due to a lower debt level. Adjusted EBITDA stood at $138.2 million, up roughly 3.6% year over year.

Balance Sheet

Exiting the second quarter, Lamar Advertising's cash and cash equivalents more than doubled to $98.9 million as compared to $35.9 million in the previous quarter. Total debt, including current maturities increased slightly to $2,189.7 million from $2,187.6 million in the previous quarter.

Cash Flow

In the second quarter 2012, cash flow from operating activities was approximately $97.3 million, up 15.0% year over year. Capital spending totaled $29.8 million, up 15.3% year over year, of which the company expended roughly 74.2% on upgrading its billboards business while the rest was spent for logo, transit, land and buildings, and operating equipment businesses.

Free cash flow was $73.7 million, up from $68.2 million in the year-ago quarter.

For the third quarter of 2012, management expects net revenue to be within the $303 million-$306 million range and up roughly 1% to 2% on a pro forma basis.

The company also communicated its intention of attaining a REIT status, during its second quarter conference call. It also expressed uncertainty as to the timing of a REIT election.

Lamar Advertising Company is one of the largest owners and operators of outdoor advertising structures in the U.S. It provides advertising services to restaurants, retailers, automotive, real estate, health care, gaming, service, hotel and motel, telecommunication, and amusement industries, including entertainments and sports. The company faces stiff competition from Clear Channel Outdoor Holdings Inc. (CCO) and CBS Outdoor.

The stock currently bears a Zacks #2 Rank, implying a short-term "buy rating.


More from

Tags: LAMR


Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.


StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

125 rated 1
264 rated 2
485 rated 3
679 rated 4
640 rated 5
617 rated 6
632 rated 7
493 rated 8
276 rated 9
153 rated 10

Top Picks

TAT&T Inc9



Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.