Three Month Results
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 fourth quarter and year
ended December 31, 2015.
"We ended 2015 with momentum, with
fourth-quarter revenue growth of 5.7%. We also grew Diluted AFFO
per share 12.5% for the 2015 fiscal year," said Lamar chief
executive Sean Reilly. "As we begin 2016, we are encouraged by our
revenue pacings to date and the integration of five new markets we
recently acquired."
Fourth Quarter Highlights
- Pro forma consolidated expense growth held to 1.4%
- Corporate overhead declined 4.7%
Fourth Quarter Results
Lamar reported net revenues of $356.0 million
for the fourth quarter of 2015 versus $336.7 million for the fourth
quarter of 2014, a 5.7% increase. Operating income for the fourth
quarter of 2015 increased $16.3 million or 18.4% to $104.8 million
as compared to $88.5 million for the same period in 2014. Lamar
recognized net income of $76.5 million for the fourth quarter of
2015 compared to net income of $207.9 million for same period in
2014. The decrease in net income is primarily a result of a one
time income tax benefit in 2014 of $120.1 million related to the
write off of a substantial portion of the Company’s deferred tax
liabilities due to its conversion to real estate investment trust
status (REIT). Net income per basic and diluted share was $0.79 per
share and $2.18 per share for the three months ended December 31,
2015 and 2014, respectively.
Adjusted EBITDA for the fourth quarter of 2015
was $158.7 million versus $150.6 million for the fourth quarter of
2014, a 5.4% increase.
Free Cash Flow for the fourth quarter of 2015
was $103.4 million as compared to $100.2 million for the same
period in 2014, a 3.2% increase.
For the fourth quarter of 2015, Funds From
Operations, or FFO, decreased to $118.4 million as compared to
$136.8 million for the same period in 2014, which is due to a one
time non-cash tax benefit received in 2014 of $28.2 million for the
reversal of tax expenses incurred as a C corporation prior to our
fourth quarter 2014 REIT conversion. Adjusted Funds From
Operations, or AFFO, for the fourth quarter of 2015 was $122.5
million compared to $117.3 million for the same period in 2014, a
4.5% increase. Diluted AFFO per share was $1.27 per share and $1.23
per share for the three months ended December 31, 2015 and 2014,
respectively.
Q4 Pro Forma Results
Pro forma adjusted net revenue for the fourth
quarter of 2015 increased 2.5% over pro forma adjusted net revenue
for the fourth quarter of 2014. Pro forma adjusted EBITDA increased
3.9% as compared to pro forma adjusted EBITDA for the fourth
quarter of 2014. Pro forma adjusted net revenue and pro forma
adjusted EBITDA include adjustments to the 2014 period for
acquisitions and divestitures for the same time frame as actually
owned in the 2015 period. See “Reconciliation of Reported Basis to
Pro Forma Basis”, which provides reconciliations to GAAP for pro
forma adjusted measures.
Twelve Months Results Lamar
reported net revenues of $1.35 billion for the twelve months ended
December 31, 2015 versus $1.29 billion for the same period in 2014,
a 5.2% increase. Operating income for the twelve months ended
December 31, 2015 was $383.0 million as compared to $278.7 million
for the same period in 2014. Adjusted EBITDA for the twelve months
ended December 31, 2015 was $591.6 million versus $558.0 million
for the same period in 2014, a 6.0% increase. In addition, Lamar
recognized net income of $262.6 million for the twelve months ended
December 31, 2015 as compared to net income of $253.5 million for
the same period in 2014. Net income per basic and diluted share was
$2.72 per share and $2.66 per share for the twelve months ended
December 31, 2015 and 2014, respectively.
Free Cash Flow for the twelve months ended
December 31, 2015 increased 11.4% to $376.1 million as compared to
$337.7 million for the same period in 2014.
For the twelve months ended December 31, 2015,
FFO was $430.9 million versus $372.7 million for the same period of
2014, a 15.6% increase and AFFO for the twelve months ended
December 31, 2015 was $442.1 million compared to $388.5 million for
the same period in 2014, a 13.8% increase. Diluted AFFO per share
increased to $4.59 per share as compared to $4.08 per share in the
comparable period in 2014, an increase of 12.5%.
Please refer to “Use of Non-GAAP Financial
Measures” for definitions of Adjusted EBITDA, Free Cash Flow, Funds
From Operations, Adjusted Funds From Operations, Diluted AFFO per
share and outdoor operating income. For additional information,
including reconciliations to GAAP measures, please refer to the
unaudited selected financial information and supplemental
schedules.
Liquidity
As of December 31, 2015, Lamar had $313.4
million in total liquidity that consisted of $291.1 million
available for borrowing under its revolving senior credit facility
and approximately $22.3 million in cash and cash
equivalents.
Recent Events
Distributions. On December 30, 2015, Lamar
made its fourth quarterly dividend distribution of $0.69 per share,
or a total cash distribution of approximately $66.7 million, to
common stockholders of record on December 21, 2015. For the year
ended December 31, 2015, Lamar’s distributions to common
stockholders were $2.75 per share, or $265.1 million in the
aggregate.
Acquisitions. On January 7, 2016, Lamar
acquired certain assets of Clear Channel Outdoor Holdings, Inc. in
five U.S. markets for an aggregate cash purchase price of $458.5
million. Lamar financed the acquisition using $160 million of
revolver borrowings and a $300 million term loan provided by
JPMorgan Chase Bank, N.A.
Senior Note Offering. On January 28, 2016,
Lamar Media Corp., Lamar’s wholly owned subsidiary, issued $400
million in aggregate principal amount of 5 3/4% Senior Notes due
2026 through an institutional private placement. The proceeds,
after payment of fees and expenses, were used to repay the $300
million term loan and a portion of borrowings outstanding under its
revolving credit facility that were used to finance the asset
acquisitions noted above.
Guidance
We expect Diluted AFFO per share for fiscal year
2016 will be between $4.85 and $5.00, representing growth of
approximately 6% to 9% over 2015, with net income per diluted share
expected to be between $2.97 and $3.06. See “Supplemental Schedules
Unaudited REIT Measures and Reconciliations to GAAP Measures”, for
a reconciliation to GAAP.
Forward Looking Statements
This press release contains forward-looking
statements, including statements regarding financial guidance for
the 2016 fiscal year. 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, capital expenditures, debt
refinancing or acquisitions; (5) our ability to continue to qualify
as a REIT and maintain our status as a REIT; (6) the regulation of
the outdoor advertising industry by federal, state and local
governments; (7) our ability to successfully integrate assets that
we acquire and our ability to recognize cost savings or operating
efficiencies as a result of these acquisitions; in particular, our
ability to successfully integrate the assets acquired in January
2016 which could have a material effect on our 2016 financial
results; (8) changes in accounting principles, policies or
guidelines; (9) changes in tax laws applicable to REITs or in the
interpretation of those laws; (10) our ability to renew expiring
contracts at favorable rates; (11) our ability to successfully
implement our digital deployment strategy; and (12) the market for
our Class A common stock.
More detailed information about these risk
factors can be found in Lamar’s filings with the Securities and
Exchange Commission (“the SEC”), including Item 1A (“Risk Factors”)
of our 2014 Annual Report on Form 10-K as supplemented by any Risk
Factors contained in our Quarterly Reports on Form 10-Q. Lamar
cautions investors not to place undue reliance on the
forward-looking statements contained in this document, which speak
only as of the date of this document. Lamar is under no obligation
to (and expressly disclaims any such obligation to) update or alter
its forward looking statements, whether as a result of new
information, future events or otherwise, except as required by law.
Lamar plans to file its Annual Report on Form 10-K for the year
ended December 31, 2015 with the SEC on or before February 29, 2016
and urges its stockholders to refer to that document for more
complete information concerning Lamar’s financial results.
Use of Non-GAAP Financial
Measures
The Company has presented the following measures
that are not measures of performance under accounting principles
generally accepted in the United States of America (GAAP): Adjusted
EBITDA, Free Cash Flow, Funds From Operations, Adjusted Funds From
Operations, Diluted AFFO per share, adjusted pro forma results and
outdoor operating income. Adjusted EBITDA is defined as net income
before income tax expense (benefit), interest expense (income),
gain (loss) on extinguishment of debt and investments, stock-based
compensation, depreciation and amortization and gain on disposition
of assets and investments. Free Cash Flow is defined as Adjusted
EBITDA less interest, net of interest income and amortization of
financing costs, current taxes, preferred stock dividends and total
capital expenditures. Funds From Operations is defined as net
income before real estate depreciation and amortization, gains or
loss from disposition of real estate assets and investments and an
adjustment to eliminate non‑controlling interest, which is the
definition used by the National Association of Real Estate
Investment Trusts (NAREIT). Adjusted Funds From Operations is
defined as Funds From Operations adjusted for straight‑line
(revenue) expense, stock‑based compensation expense, non‑cash tax
expense (benefit), non‑real estate related depreciation and
amortization, amortization of deferred financing and debt issuance
costs, loss on extinguishment of debt, non-recurring, infrequent or
unusual losses (gains), less maintenance capital expenditures and
an adjustment for non‑controlling interest. Diluted AFFO per share
is defined as AFFO divided by the weighted average diluted common
shares outstanding. Outdoor operating income is defined as
operating income before corporate expenses, stock-based
compensation, depreciation and amortization and gain on disposition
of assets. These measures are not intended to replace financial
performance measures determined in accordance with GAAP and should
not be considered alternatives to operating income, net income,
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,
Funds From Operations, Adjusted Funds From Operations, Diluted AFFO
per share, adjusted 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
presentation of these non-GAAP measures, including AFFO and FFO,
may not be comparable to similarly titled measures used by
similarly situated companies. See “Supplemental Schedules—Unaudited
Reconciliation of Non-GAAP Measures” and “Supplemental
Schedules—Unaudited REIT Measures and Reconciliations to GAAP
Measures”, which provides a reconciliation of each of these
measures to the most directly comparable GAAP measure.
Conference Call Information
A conference call will be held to discuss the
Company’s operating results on Tuesday, February 23, 2016 at 8:00
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: |
1-334-323-0140 or
1-877-919-4059 |
Pass
Code: |
40003957 |
|
Available through Tuesday,
March 1, 2016 at 11:59 p.m. eastern time |
|
|
Live
Webcast: |
www.lamar.com |
|
|
Webcast
Replay: |
www.lamar.com |
|
Available through Tuesday,
March 1, 2016 at 11:59 p.m. eastern time |
|
|
General Information
Founded in 1902, Lamar Advertising Company is one of the largest
outdoor advertising companies in North America, with more than
325,000 displays across the United States, Canada and Puerto Rico.
Lamar offers advertisers a variety of billboard, interstate logo
and transit advertising formats, helping both local businesses and
national brands reach broad audiences every day. In addition to its
more traditional out-of-home inventory, Lamar is proud to offer its
customers the largest network of digital billboards in the United
States with over 2,400 displays.
LAMAR ADVERTISING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)(IN
THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
|
|
Three months ended December 31, |
|
Twelve months ended December 31, |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
Net revenues |
$ |
355,969 |
|
|
$ |
336,696 |
|
|
$ |
1,353,396 |
|
|
$ |
1,287,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses (income) |
|
|
|
|
|
|
|
Direct advertising
expenses |
|
122,901 |
|
|
|
115,096 |
|
|
|
473,760 |
|
|
|
453,269 |
|
General and
administrative expenses |
|
59,685 |
|
|
|
55,575 |
|
|
|
230,924 |
|
|
|
219,792 |
|
Corporate
expenses |
|
14,716 |
|
|
|
15,434 |
|
|
|
57,127 |
|
|
|
55,966 |
|
Stock-based
compensation |
|
8,382 |
|
|
|
8,133 |
|
|
|
25,890 |
|
|
|
24,120 |
|
Depreciation and
amortization |
|
47,037 |
|
|
|
55,185 |
|
|
|
191,433 |
|
|
|
258,435 |
|
Gain on disposition of
assets |
|
(1,535 |
) |
|
|
(1,191 |
) |
|
|
(8,765 |
) |
|
|
(3,192 |
) |
|
|
|
251,186 |
|
|
|
248,232 |
|
|
|
970,369 |
|
|
|
1,008,390 |
|
Operating income |
|
104,783 |
|
|
|
88,464 |
|
|
|
383,027 |
|
|
|
278,670 |
|
|
|
|
|
|
|
|
|
|
Other
(income) expense |
|
|
|
|
|
|
|
Interest income |
|
(6 |
) |
|
|
(3 |
) |
|
|
(34 |
) |
|
|
(102 |
) |
Loss on extinguishment
of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26,023 |
|
Other-than-temporary
impairment of investment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,069 |
|
Interest expense |
|
24,480 |
|
|
|
24,482 |
|
|
|
98,433 |
|
|
|
105,254 |
|
|
|
|
24,474 |
|
|
|
24,479 |
|
|
|
98,399 |
|
|
|
135,244 |
|
|
|
|
|
|
|
|
|
|
Income
before income tax expense |
|
80,309 |
|
|
|
63,985 |
|
|
|
284,628 |
|
|
|
143,426 |
|
Income tax
expense (benefit) |
|
3,780 |
|
|
|
(143,898 |
) |
|
|
22,058 |
|
|
|
(110,092 |
) |
|
|
|
|
|
|
|
|
|
Net
income |
|
76,529 |
|
|
|
207,883 |
|
|
|
262,570 |
|
|
|
253,518 |
|
Preferred
stock dividends |
|
92 |
|
|
|
92 |
|
|
|
365 |
|
|
|
365 |
|
Net income
applicable to common stock |
$ |
76,437 |
|
|
$ |
207,791 |
|
|
$ |
262,205 |
|
|
$ |
253,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share: |
|
|
|
|
|
|
|
Basic earnings per
share |
$ |
0.79 |
|
|
$ |
2.18 |
|
|
$ |
2.72 |
|
|
$ |
2.66 |
|
Diluted earnings per
share |
$ |
0.79 |
|
|
$ |
2.18 |
|
|
$ |
2.72 |
|
|
$ |
2.66 |
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- basic |
|
96,622,092 |
|
|
|
95,454,224 |
|
|
|
96,321,578 |
|
|
|
95,218,083 |
|
- diluted |
|
96,675,737 |
|
|
|
95,522,205 |
|
|
|
96,375,130 |
|
|
|
95,284,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER DATA |
|
|
|
|
|
|
|
Free Cash
Flow Computation: |
|
|
|
|
|
|
|
Adjusted
EBITDA |
$ |
158,667 |
|
|
$ |
150,591 |
|
|
$ |
591,585 |
|
|
$ |
558,033 |
|
Interest,
net |
|
(23,290 |
) |
|
|
(23,325 |
) |
|
|
(93,717 |
) |
|
|
(100,375 |
) |
Current tax
expense |
|
(2,253 |
) |
|
|
(3,281 |
) |
|
|
(10,959 |
) |
|
|
(12,045 |
) |
Preferred
stock dividends |
|
(92 |
) |
|
|
(92 |
) |
|
|
(365 |
) |
|
|
(365 |
) |
Total
capital expenditures |
|
(29,661 |
) |
|
|
(23,697 |
) |
|
|
(110,425 |
) |
|
|
(107,573 |
) |
Free cash flow |
$ |
103,371 |
|
|
$ |
100,196 |
|
|
$ |
376,119 |
|
|
$ |
337,675 |
|
OTHER DATA (continued): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
December 31, |
|
Selected Balance Sheet
Data: |
|
|
|
|
|
|
2015 |
|
|
|
2014 |
|
Cash and cash
equivalents |
|
|
|
|
|
$ |
22,327 |
|
|
$ |
26,035 |
|
Working capital |
|
|
|
|
|
$ |
40,079 |
|
|
$ |
47,803 |
|
Total assets |
|
|
|
|
|
$ |
3,391,778 |
|
|
$ |
3,318,818 |
|
Total debt (including
current maturities) |
|
|
|
|
|
$ |
1,919,484 |
|
|
$ |
1,899,895 |
|
Total stockholders’
equity |
|
|
|
|
|
$ |
1,021,059 |
|
|
$ |
981,466 |
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December, 31 |
|
Twelve Months ended December 31, |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
Selected Cash Flow
Data: |
|
|
|
|
|
|
|
|
Cash flows provided by
operating activities |
|
$ |
164,180 |
|
|
$ |
149,325 |
|
|
$ |
477,650 |
|
|
$ |
452,529 |
|
Cash flows used in
investing activities |
|
$ |
(58,166 |
) |
|
$ |
(33,061 |
) |
|
$ |
(253,880 |
) |
|
$ |
(163,997 |
) |
Cash flows used in
financing activities |
|
$ |
(112,131 |
) |
|
$ |
(117,529 |
) |
|
$ |
(224,808 |
) |
|
$ |
(294,315 |
) |
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL SCHEDULES UNAUDITED RECONCILIATIONS
OF NON-GAAP MEASURES (IN THOUSANDS)
|
Three months ended |
|
Twelve months ended |
|
December 31, |
|
December 31, |
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
Reconciliation of Free
Cash Flow to Cash Flows Provided by |
|
|
|
|
|
|
|
Operating Activities: |
|
|
|
|
|
|
|
Cash flows provided by
operating activities |
$ |
164,180 |
|
|
$ |
149,325 |
|
|
$ |
477,650 |
|
|
$ |
452,529 |
|
Changes in operating
assets and liabilities |
|
(29,395 |
) |
|
|
(23,850 |
) |
|
|
15,765 |
|
|
|
(969 |
) |
Total capital
expenditures |
|
(29,661 |
) |
|
|
(23,697 |
) |
|
|
(110,425 |
) |
|
|
(107,573 |
) |
Preferred stock
dividends |
|
(92 |
) |
|
|
(92 |
) |
|
|
(365 |
) |
|
|
(365 |
) |
Other |
|
(1,661 |
) |
|
|
(1,490 |
) |
|
|
(6,506 |
) |
|
|
(5,947 |
) |
Free cash flow |
$ |
103,371 |
|
|
$ |
100,196 |
|
|
$ |
376,119 |
|
|
$ |
337,675 |
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA to Net
Income: |
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
158,667 |
|
|
$ |
150,591 |
|
|
$ |
591,585 |
|
|
$ |
558,033 |
|
Less: |
|
|
|
|
|
|
|
Stock-based compensation |
|
8,382 |
|
|
|
8,133 |
|
|
|
25,890 |
|
|
|
24,120 |
|
Depreciation and amortization |
|
47,037 |
|
|
|
55,185 |
|
|
|
191,433 |
|
|
|
258,435 |
|
Gain on disposition of assets |
|
(1,535 |
) |
|
|
(1,191 |
) |
|
|
(8,765 |
) |
|
|
(3,192 |
) |
Operating Income |
|
104,783 |
|
|
|
88,464 |
|
|
|
383,027 |
|
|
|
278,670 |
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
Interest income |
|
(6 |
) |
|
|
(3 |
) |
|
|
(34 |
) |
|
|
(102 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26,023 |
|
Other-than-temporary impairment of
investment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,069 |
|
Interest expense |
|
24,480 |
|
|
|
24,482 |
|
|
|
98,433 |
|
|
|
105,254 |
|
Income tax expense (benefit) |
|
3,780 |
|
|
|
(143,898 |
) |
|
|
22,058 |
|
|
|
(110,092 |
) |
Net income |
$ |
76,529 |
|
|
$ |
207,883 |
|
|
$ |
262,570 |
|
|
$ |
253,518 |
|
|
|
|
|
|
|
|
|
Capital expenditure
detail by category: |
|
|
|
|
|
|
|
Billboards - traditional |
$ |
10,655 |
|
|
$ |
6,765 |
|
|
$ |
32,283 |
|
|
$ |
25,829 |
|
Billboards - digital |
|
9,529 |
|
|
|
11,726 |
|
|
|
49,531 |
|
|
|
53,536 |
|
Logo |
|
2,261 |
|
|
|
2,202 |
|
|
|
9,420 |
|
|
|
9,747 |
|
Transit |
|
264 |
|
|
|
116 |
|
|
|
510 |
|
|
|
425 |
|
Land and buildings |
|
4,784 |
|
|
|
1,166 |
|
|
|
10,629 |
|
|
|
8,668 |
|
Operating equipment |
|
2,168 |
|
|
|
1,722 |
|
|
|
8,052 |
|
|
|
9,368 |
|
Total capital expenditures |
$ |
29,661 |
|
|
$ |
23,697 |
|
|
$ |
110,425 |
|
|
$ |
107,573 |
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL SCHEDULES UNAUDITED RECONCILIATIONS
OF NON-GAAP MEASURES (IN THOUSANDS)
|
Three months ended December 31, |
|
|
|
2015 |
|
|
|
2014 |
|
|
% Change |
Reconciliation of
Reported Basis to Pro Forma(a) Basis: |
|
|
|
|
|
Net revenue |
$ |
355,969 |
|
|
$ |
336,696 |
|
|
|
5.7 |
% |
Acquisitions and
divestitures |
|
— |
|
|
|
10,597 |
|
|
|
Pro forma adjusted net
revenue |
$ |
355,969 |
|
|
$ |
347,293 |
|
|
|
2.5 |
% |
|
|
|
|
|
|
Reported direct
advertising and G&A expenses |
$ |
182,586 |
|
|
$ |
170,671 |
|
|
|
7.0 |
% |
Acquisitions and
divestitures |
|
— |
|
|
|
8,406 |
|
|
|
Pro forma direct
advertising and G&A expenses |
$ |
182,586 |
|
|
$ |
179,077 |
|
|
|
2.0 |
% |
|
|
|
|
|
|
Outdoor operating
income |
$ |
173,383 |
|
|
$ |
166,025 |
|
|
|
4.4 |
% |
Acquisitions and
divestitures |
|
— |
|
|
|
2,191 |
|
|
|
Pro forma adjusted
outdoor operating income |
$ |
173,383 |
|
|
$ |
168,216 |
|
|
|
3.1 |
% |
|
|
|
|
|
|
Reported corporate
expenses |
$ |
14,716 |
|
|
$ |
15,434 |
|
|
|
(4.7 |
)% |
Acquisitions and
divestitures |
|
— |
|
|
|
— |
|
|
|
Pro forma corporate
expenses |
$ |
14,716 |
|
|
$ |
15,434 |
|
|
|
(4.7 |
)% |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
158,667 |
|
|
$ |
150,591 |
|
|
|
5.4 |
% |
Acquisitions and
divestitures |
|
— |
|
|
|
2,191 |
|
|
|
Pro forma adjusted
EBITDA |
$ |
158,667 |
|
|
$ |
152,782 |
|
|
|
3.9 |
% |
|
|
|
|
|
|
- Pro forma adjusted net revenue, direct advertising and general
and administrative expenses, outdoor operating income, corporate
expenses and Adjusted EBITDA include adjustments to 2014 for
acquisitions and divestitures for the same time frame as actually
owned in 2015.
|
|
Three months ended December 31, |
|
|
|
2015 |
|
|
|
2014 |
|
Reconciliation of
Outdoor Operating Income to Operating Income: |
|
|
|
|
Outdoor operating
income |
|
$ |
173,383 |
|
|
$ |
166,025 |
|
Less: Corporate
expenses |
|
|
14,716 |
|
|
|
15,434 |
|
Stock-based compensation |
|
|
8,382 |
|
|
|
8,133 |
|
Depreciation and amortization |
|
|
47,037 |
|
|
|
55,185 |
|
Plus: Gain on
disposition of assets |
|
|
1,535 |
|
|
|
1,191 |
|
Operating income |
|
$ |
104,783 |
|
|
$ |
88,464 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL SCHEDULESUNAUDITED REIT MEASURESAND
RECONCILIATIONS TO GAAP MEASURES(IN THOUSANDS, EXCEPT SHARE AND PER
SHARE DATA)
Adjusted Funds From Operations
|
Three months ended |
|
Twelve months ended |
|
December 31, |
|
December 31, |
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
76,529 |
|
|
$ |
207,883 |
|
|
$ |
262,570 |
|
|
$ |
253,518 |
|
Depreciation and amortization
related to advertising structures |
|
43,201 |
|
|
|
50,533 |
|
|
|
176,132 |
|
|
|
241,294 |
|
Gain from disposition of real
estate assets |
|
(1,543 |
) |
|
|
(1,762 |
) |
|
|
(8,467 |
) |
|
|
(2,681 |
) |
One time adjustment to taxes
related to REIT conversion |
|
— |
|
|
|
(120,081 |
) |
|
|
— |
|
|
|
(120,081 |
) |
Adjustment for non-controlling
interest |
|
185 |
|
|
|
264 |
|
|
|
631 |
|
|
|
695 |
|
Funds From
Operations |
$ |
118,372 |
|
|
$ |
136,837 |
|
|
$ |
430,866 |
|
|
$ |
372,745 |
|
|
|
|
|
|
|
|
|
Straight-line expense (income) |
|
282 |
|
|
|
(472 |
) |
|
|
463 |
|
|
|
(841 |
) |
Stock-based compensation
expense |
|
8,382 |
|
|
|
8,133 |
|
|
|
25,890 |
|
|
|
24,120 |
|
Non-cash tax expense (benefit) |
|
1,527 |
|
|
|
(27,098 |
) |
|
|
11,099 |
|
|
|
(2,056 |
) |
Non-real estate related
depreciation and amortization |
|
3,836 |
|
|
|
4,652 |
|
|
|
15,301 |
|
|
|
17,141 |
|
Amortization of deferred financing
and debt issuance costs |
|
1,184 |
|
|
|
1,154 |
|
|
|
4,682 |
|
|
|
4,777 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26,023 |
|
Loss from other-than-temporary
impairment of investment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,069 |
|
Capitalized
expenditures—maintenance |
|
(10,859 |
) |
|
|
(5,658 |
) |
|
|
(45,605 |
) |
|
|
(56,820 |
) |
Adjustment for non-controlling
interest |
|
(185 |
) |
|
|
(264 |
) |
|
|
(631 |
) |
|
|
(695 |
) |
|
|
|
|
|
|
|
|
Adjusted Funds From
Operations |
$ |
122,539 |
|
|
$ |
117,284 |
|
|
$ |
442,065 |
|
|
$ |
388,463 |
|
|
|
|
|
|
|
|
|
Divided by weighted average diluted
shares outstanding |
|
96,675,737 |
|
|
|
95,522,205 |
|
|
|
96,375,130 |
|
|
|
95,284,126 |
|
Diluted AFFO per share |
$ |
1.27 |
|
|
$ |
1.23 |
|
|
$ |
4.59 |
|
|
$ |
4.08 |
|
SUPPLEMENTAL SCHEDULESUNAUDITED REIT MEASURESAND
RECONCILIATIONS TO GAAP MEASURES(IN THOUSANDS, EXCEPT SHARE AND PER
SHARE DATA)
|
|
|
Year ended December 31, 2016 |
|
|
|
|
Low |
|
High |
|
|
|
|
|
|
|
|
Net income |
|
|
$ |
289,000 |
|
|
$ |
298,000 |
|
|
Depreciation and amortization
related to advertising structures |
|
|
|
188,700 |
|
|
|
192,500 |
|
|
Gain from disposal of real estate
assets |
|
|
|
(8,000 |
) |
|
|
(12,000 |
) |
|
Adjustment for minority interest -
consolidated affiliates |
|
|
|
650 |
|
|
|
700 |
|
|
Funds From
Operations |
|
|
$ |
470,350 |
|
|
$ |
479,200 |
|
|
|
|
|
|
|
|
|
Straight-line expense |
|
|
|
(300 |
) |
|
|
(800 |
) |
|
Stock-based compensation
expense |
|
|
|
25,000 |
|
|
|
30,000 |
|
|
Non-cash tax (benefit) expense |
|
|
|
(1,000 |
) |
|
|
(1,000 |
) |
|
Non-real estate related
depreciation and amortization |
|
|
|
15,000 |
|
|
|
16,000 |
|
|
Amortization of debt issuance
fees |
|
|
|
5,000 |
|
|
|
5,000 |
|
|
Loss on extinguishment of debt |
|
|
|
3,300 |
|
|
|
3,500 |
|
|
Capitalized
expenditures—maintenance |
|
|
|
(45,000 |
) |
|
|
(45,000 |
) |
|
Adjustment for minority interest -
consolidated affiliates |
|
|
|
(650 |
) |
|
|
(700 |
) |
|
|
|
|
|
|
|
|
Adjusted Funds From
Operations |
|
|
$ |
471,700 |
|
|
$ |
486,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares
outstanding (1) |
|
|
|
97,300,000 |
|
|
|
97,300,000 |
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
|
$ |
2.97 |
|
|
$ |
3.06 |
|
|
|
|
|
|
|
|
|
Diluted AFFO per share |
|
|
$ |
4.85 |
|
|
$ |
5.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Projected Adjusted Funds From Operations
(1) The weighted average diluted shares
outstanding does not assume the repurchase of shares under the
Company’s previously announced stock repurchase program, which may
be made from time to time by the Company’s management based on its
evaluation of market conditions and other factors.
The guidance provided above is based on a number
of assumptions that management believes to be reasonable and
reflect our expectations as of February 2016, including assumptions
regarding our ability to successfully integrate the assets acquired
in January 2016. Actual results may differ materially from these
estimates as a result of various factors, and we refer to the
cautionary language regarding “forward looking” statements included
in the press release when considering this information.
Company Contact:
Buster Kantrow
Director of Investor Relations
(225) 926-1000
bkantrow@lamar.com
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