Lamar Advertising Q4 Profit Halves

(RTTNews) - Billboard firm Lamar Advertising Co. (LAMR) reported on Friday that profit for the fourth quarter nearly halved from last year, hurt by steeply higher depreciation and amortization expenses, despite an 8 percent revenue growth. The company also initiated financial guidance for the full-year 2023. "We delivered solid financial results for the fourth quarter, with strong local sales offsetting weakening demand from national customers," said Sean Reilly, Chief Executive.

For the fourth quarter, net income plunged to $66.01 million or $0.65 per share from $123.22 million or $1.21 per share in the prior-year quarter.

Funds from operations, or FFO, for the quarter were $195.20 million, compared to $183.56 million last year. Adjusted funds from operations, or AFFO, were $194.54 million or $1.91 per share, compared to $180.68 million or $1.78 per share in the year-ago quarter.

On average, three analysts polled by Thomson Reuters expected the company to report earnings of $1.29 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenues for the quarter increased 8.3 percent to $535.51 million from $494.57 million in the same quarter last year. Analysts expected revenues of $542 million for the quarter.

Acquisition-adjusted net revenue for the fourth quarter increased 4.6 percent.

During the quarter, Lamar completed 19 acquisitions for a total purchase price of approximately $192 million.

On Thursday, the Company's Board of Directors authorized Lamar's renewal to repurchase up to $250 million of the Company's Class A common stock through September 30, 2024. The Board of Directors also authorized the renewal of Lamar Media's ability to repurchase up to $250 million of outstanding senior notes and other indebtedness outstanding through September 30, 2024.

Looking ahead to fiscal 2023, the company now projects earnings in a range of $5.14 to $5.21 per share and AFFO in a range of $7.40 to $7.55 per share.

The Street is looking for earnings of $5.21 per share on revenues of $2.13 billion for the year.

"For 2023, we anticipate solid revenue growth and moderating expense growth," said Reilly.

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