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 third quarter ended
September 30, 2019.
“I am pleased to report that revenue growth
accelerated in the third quarter, as advertisers increasingly
recognize the power of out-of-home to reach their target audiences
in today’s fragmented media landscape,” Chief Executive Sean Reilly
said. “We anticipate continued strength in the fourth quarter and
are on track to reach the upper end of our previously provided
guidance for full-year AFFO per share.”
Third Quarter Highlights
- Local revenue increased 3.1%
- National/Programmatic revenue increased 6.9%
- Same unit digital revenue increased 6.9%
- AFFO increased 8.6%
- Diluted AFFO per share increased 7.3%
Third Quarter Results Lamar
reported net revenues of $457.8 million for the third quarter of
2019 versus $418.5 million for the third quarter of 2018, a 9.4%
increase. Operating income for the third quarter of 2019 increased
$13.1 million to $141.4 million as compared to $128.4 million for
the same period in 2018. Lamar recognized net income of $99.7
million for the third quarter of 2019 compared to net income of
$94.1 million for same period in 2018. Net income per diluted share
was $0.99 and $0.95 for the three months ended September 30, 2019
and 2018, respectively.
Adjusted EBITDA for the third quarter of 2019
was $215.2 million versus $192.5 million for the third quarter of
2018, an increase of 11.8%.
Cash flow provided by operating activities was
$170.9 million for the three months ended September 30, 2019, an
increase of $16.6 million as compared to the same period in 2018.
Free cash flow for the third quarter of 2019 was $138.2 million as
compared to $130.7 million for the same period in 2018, a 5.7%
increase.
For the third quarter of 2019, Funds From
Operations, or FFO, was $159.5 million versus $146.6 million for
the same period in 2018, an increase of 8.8%. Adjusted Funds From
Operations, or AFFO, for the third quarter of 2019 was $163.0
million compared to $150.1 million for the same period in 2018, an
increase of 8.6%. Diluted AFFO per share increased 7.3% to $1.62
for the three months ended September 30, 2019 as compared to $1.51
for the same period in 2018.
Acquisition-Adjusted Three Months
Results Acquisition-adjusted net revenue for the third
quarter of 2019 increased 3.4% over Acquisition-adjusted net
revenue for the third quarter of 2018. Acquisition-adjusted EBITDA
for the third quarter of 2019 increased 5.6% as compared to
Acquisition-adjusted EBITDA for the third quarter of 2018.
Acquisition-adjusted net revenue and Acquisition-adjusted EBITDA
include adjustments to the 2018 period for acquisitions and
divestitures for the same time frame as actually owned in the 2019
period. See “Reconciliation of Reported Basis to
Acquisition-Adjusted Results”, which provides reconciliations to
GAAP for Acquisition-adjusted measures.
Nine Months ResultsLamar
reported net revenues of $1.29 billion for the nine months ended
September 30, 2019 versus $1.20 billion for the same period in
2018, a 7.6% increase. Operating income for the nine months ended
September 30, 2019 was $376.3 million as compared to $329.9 million
for the same period in 2018. Lamar recognized net income of $269.4
million for the nine months ended September 30, 2019 as compared to
net income of $209.5 million for the same period in 2018. Net
income per diluted share increased to $2.69 for the nine months
ended September 30, 2019 as compared to $2.12 for the same period
in 2018. In addition, Adjusted EBITDA for the nine months ended
September 30, 2019 was $569.2 million versus $527.2 million for the
same period in 2018, an 8.0% increase.
Cash flow provided by operating activities
increased to $408.0 million for the nine months ended September 30,
2019, as compared to $370.1 million in the same period in 2018.
Free cash flow for the nine months ended September 30, 2019
increased 2.6% to $353.9 million as compared to $345.0 million for
the same period in 2018.
For the nine months ended September 30, 2019,
FFO was $423.8 million versus $376.2 million for the same period in
2018, a 12.6% increase. AFFO for the nine months ended September
30, 2019 was $416.0 million compared to $397.0 million for the same
period in 2018, a 4.8% increase. Diluted AFFO per share increased
to $4.15 for the nine months ended September 30, 2019, as compared
to $4.02 in the same period in 2018, an increase of 3.2%.
LiquidityAs of September 30,
2019, Lamar had $345.4 million in total liquidity that consisted of
$322.1 million available for borrowing under its revolving senior
credit facility and approximately $23.3 million in cash and cash
equivalents.
Forward Looking StatementsThis
press release contains forward-looking statements, including
statements regarding sales trends. 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) our ability to continue to qualify
as a Real Estate Investment Trust (“REIT”) and maintain our status
as a REIT; (6) the regulation of the outdoor advertising industry
by federal, state and local governments; (7) the integration of
companies and assets that we acquire and our ability to recognize
cost savings or operating efficiencies as a result of these
acquisitions; (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. 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/A for the year ended December 31, 2018, as supplemented by any
risk factors contained in our Quarterly Reports on Form 10-Q and
our Current Reports on Form 8-K. 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 Financial
MeasuresThe 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 (earnings before interest, taxes, depreciation and
amortization), Free Cash Flow, Funds From Operations (“FFO”),
Adjusted Funds From Operations (“AFFO”), Diluted AFFO per share,
Outdoor Operating Income, Acquisition-Adjusted Results and
Acquisition-Adjusted Consolidated Expense. Our management reviews
our performance by focusing on these key performance indicators not
prepared in conformity with GAAP. We believe these non-GAAP
performance indicators are meaningful supplemental measures of our
operating performance and should not be considered in isolation of,
or as a substitute for their most directly comparable GAAP
financial measures. Our Non-GAAP financial measures are determined
as follows:
- We define Adjusted EBITDA as net income before income tax
expense (benefit), interest expense (income), loss (gain) on
extinguishment of debt and investments, stock-based compensation,
depreciation and amortization, gain or loss on disposition of
assets and investments and the impact of adopting FASB Accounting
Standard Update No. 2016-02 Codified as ASC 842, Leases.
- Free Cash Flow is defined as Adjusted EBITDA less interest, net
of interest income and amortization of deferred financing costs,
current taxes, preferred stock dividends and total capital
expenditures.
- We use the National Association of Real Estate Investment
Trusts definition of FFO, which is defined as net income before
gains or losses from the sale or disposal of real estate assets and
investments and real estate related depreciation and amortization
and including adjustments to eliminate unconsolidated affiliates
and non-controlling interest.
- We define AFFO as FFO before (i) straight-line revenue and
expense; (ii) impact of ASC 842 adoption; (iii) stock-based
compensation expense; (iv) non-cash portion of tax provision;
(v) non-real estate related depreciation and amortization;
(vi) amortization of deferred financing costs; (vii) loss
on extinguishment of debt; (viii) non-recurring infrequent or
unusual losses (gains); (ix) less maintenance capital
expenditures; and (x) an adjustment for unconsolidated
affiliates and non-controlling interest.
- Diluted AFFO per share is defined as AFFO divided by weighted
average diluted common shares outstanding.
- Outdoor Operating Income is defined as Operating Income before
corporate expenses, stock-based compensation, depreciation and
amortization and loss (gain) on disposition of assets.
- Acquisition-Adjusted Results adjusts our net revenue, direct
and general and administrative expenses, outdoor operating income,
corporate expense and EBITDA for the prior period by adding to, or
subtracting from, the corresponding revenue or expense generated by
the acquired or divested assets before our acquisition or
divestiture of these assets for the same time frame that those
assets were owned in the current period. In calculating
Acquisition-Adjusted Results, therefore, we include revenue and
expenses generated by assets that we did not own in the prior
period but acquired in the current period. We refer to the amount
of pre-acquisition revenue and expense generated by or subtracted
from the acquired assets during the prior period that corresponds
with the current period in which we owned the assets (to the extent
within the period to which this report relates) as
“Acquisition-Adjusted Results”.
- Acquisition-Adjusted Consolidated Expense adjusts our total
operating expense first to remove the impact of stock-based
compensation, depreciation and amortization, gain or loss on
disposition of assets and investments and the impact of adopting
FASB Accounting Standard Update No. 2016-02 Codified as ASC 842,
Leases. The prior period is further adjusted to include the expense
generated by the acquired or divested assets before our acquisition
or divestiture of such assets for the same time frame that those
assets were owned in the current period.
Adjusted EBITDA, FFO, AFFO, Diluted AFFO per
share, Outdoor Operating Income, Acquisition-Adjusted Results and
Acquisition-Adjusted Consolidated Expense are not intended to
replace other performance measures determined in accordance with
GAAP. Free Cash Flow, FFO and AFFO do not represent cash flows from
operating activities in accordance with GAAP and, therefore, these
measures should not be considered indicative of cash flows from
operating activities as a measure of liquidity or of funds
available to fund our cash needs, including our ability to make
cash distributions. Adjusted EBITDA, Free Cash Flow, FFO, AFFO,
Diluted AFFO per share, Outdoor Operating Income,
Acquisition-Adjusted Results and Acquisition-Adjusted Consolidated
Expense are presented as we believe each is a useful indicator of
our current operating performance. Specifically, we believe that
these metrics are useful to an investor in evaluating our operating
performance because (1) each is a key measure used by our
management team for purposes of decision making and for evaluating
our core operating results; (2) Adjusted EBITDA is widely used
in the industry to measure operating performance as it excludes the
impact of depreciation and amortization, which may vary
significantly among companies, depending upon accounting methods
and useful lives, particularly where acquisitions and non-operating
factors are involved; (3) Adjusted EBITDA, FFO, AFFO, Diluted AFFO
per share and Acquisition-Adjusted Consolidated Expense each
provides investors with a meaningful measure for evaluating our
period-over-period operating performance by eliminating items that
are not operational in nature and reflect the impact on operations
from trends in occupancy rates, operating costs, general and
administrative expenses and interest costs;
(4) Acquisition-Adjusted Results is a supplement to enable
investors to compare period-over-period results on a more
consistent basis without the effects of acquisitions and
divestitures, which reflects our core performance and organic
growth (if any) during the period in which the assets were owned
and managed by us; (5) Free Cash Flow is an indicator of our
ability to service debt and generate cash for acquisitions and
other strategic investments; (6) Outdoor Operating Income
provides investors a measurement of our core results without the
impact of fluctuations in stock-based compensation, depreciation
and amortization and corporate expenses; and (7) each of our
Non-GAAP measures provides investors with a measure for comparing
our results of operations to those of other companies.
Our measurement of Adjusted EBITDA, FFO, AFFO,
Diluted AFFO per share, Outdoor Operating Income,
Acquisition-Adjusted Results and Acquisition-Adjusted Consolidated
Expense may not, however, be fully comparable to similarly titled
measures used by other companies. Reconciliations of Adjusted
EBITDA, FFO, AFFO, Diluted AFFO per share, Outdoor Operating
Income, Acquisition-Adjusted Results and Acquisition-Adjusted
Consolidated Expense to the most directly comparable GAAP measures
have been included herein.
Conference Call InformationA
conference call will be held to discuss the Company’s operating
results on Tuesday, November 5, 2019 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 |
Passcode: |
Lamar |
|
|
Replay: |
1-334-323-0140 or 1-877-919-4059 |
Passcode: |
22861794 |
|
Available through Tuesday, November 12, 2019 at 11:59 p.m.
eastern time |
|
|
Live Webcast: |
www.lamar.com |
|
|
Webcast Replay: |
www.lamar.com |
|
Available through Tuesday, November 12, 2019 at 11:59 p.m.
eastern time |
|
|
Company Contact: |
Buster Kantrow |
|
Director of Investor Relations |
|
(225) 926-1000 |
|
bkantrow@lamar.com |
General Information
Founded in 1902, Lamar Advertising (Nasdaq:
LAMR) is one of the largest outdoor advertising companies in North
America, with over 360,000 displays across the United States and
Canada. Lamar offers advertisers a variety of billboard, interstate
logo, transit and airport 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 3,400 displays.
LAMAR ADVERTISING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)(IN
THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
Net revenues |
$ |
457,786 |
|
|
$ |
418,498 |
|
|
$ |
1,290,985 |
|
|
$ |
1,199,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses (income) |
|
|
|
|
|
|
|
|
Direct advertising expenses |
|
149,550 |
|
|
|
140,699 |
|
|
|
442,784 |
|
|
|
419,776 |
|
|
General and administrative expenses |
|
77,370 |
|
|
|
70,214 |
|
|
|
230,569 |
|
|
|
205,734 |
|
|
Corporate expenses |
|
15,681 |
|
|
|
15,104 |
|
|
|
48,388 |
|
|
|
46,608 |
|
|
Stock-based compensation |
|
10,572 |
|
|
|
8,624 |
|
|
|
18,078 |
|
|
|
22,745 |
|
|
Impact of ASC 842 adoption (lease accounting standard) |
|
(581 |
) |
|
|
— |
|
|
|
(6,955 |
) |
|
|
— |
|
|
Depreciation and amortization |
|
63,951 |
|
|
|
55,089 |
|
|
|
187,150 |
|
|
|
167,251 |
|
|
(Gain) loss on disposition of assets |
|
(199 |
) |
|
|
407 |
|
|
|
(5,360 |
) |
|
|
7,265 |
|
Total operating
expense |
|
316,344 |
|
|
|
290,137 |
|
|
|
914,654 |
|
|
|
869,379 |
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
141,442 |
|
|
|
128,361 |
|
|
|
376,331 |
|
|
|
329,945 |
|
|
|
|
|
|
|
|
|
|
Other expense
(income) |
|
|
|
|
|
|
|
|
Loss on extinguishment of
debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,429 |
|
|
Interest income |
|
(168 |
) |
|
|
(157 |
) |
|
|
(553 |
) |
|
|
(313 |
) |
|
Interest expense |
|
38,323 |
|
|
|
31,850 |
|
|
|
114,240 |
|
|
|
97,321 |
|
|
|
|
38,155 |
|
|
|
31,693 |
|
|
|
113,687 |
|
|
|
112,437 |
|
Income before
income tax expense |
|
103,287 |
|
|
|
96,668 |
|
|
|
262,644 |
|
|
|
217,508 |
|
Income tax expense
(benefit) |
|
3,578 |
|
|
|
2,612 |
|
|
|
(6,714 |
) |
|
|
7,969 |
|
|
|
|
|
|
|
|
|
|
Net income |
|
99,709 |
|
|
|
94,056 |
|
|
|
269,358 |
|
|
|
209,539 |
|
Preferred stock
dividends |
|
91 |
|
|
|
91 |
|
|
|
273 |
|
|
|
273 |
|
Net income
applicable to common stock |
$ |
99,618 |
|
|
$ |
93,965 |
|
|
$ |
269,085 |
|
|
$ |
209,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
0.99 |
|
|
$ |
0.95 |
|
|
$ |
2.69 |
|
|
$ |
2.12 |
|
Diluted
earnings per share |
$ |
0.99 |
|
|
$ |
0.95 |
|
|
$ |
2.69 |
|
|
$ |
2.12 |
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
basic |
|
100,329,262 |
|
|
|
98,943,535 |
|
|
|
100,019,765 |
|
|
|
98,596,828 |
|
-
diluted |
|
100,522,177 |
|
|
|
99,253,008 |
|
|
|
100,210,143 |
|
|
|
98,870,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
Computation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
$ |
215,185 |
|
|
$ |
192,481 |
|
|
$ |
569,244 |
|
|
$ |
527,206 |
|
Interest, net |
|
(36,813 |
) |
|
|
(30,479 |
) |
|
|
(109,675 |
) |
|
|
(93,346 |
) |
Current tax
expense |
|
(2,916 |
) |
|
|
(1,474 |
) |
|
|
(7,745 |
) |
|
|
(6,394 |
) |
Preferred stock
dividends |
|
(91 |
) |
|
|
(91 |
) |
|
|
(273 |
) |
|
|
(273 |
) |
Total capital
expenditures |
|
(37,120 |
) |
|
|
(29,701 |
) |
|
|
(97,680 |
) |
|
|
(82,174 |
) |
Free Cash
Flow |
$ |
138,245 |
|
|
$ |
130,736 |
|
|
$ |
353,871 |
|
|
$ |
345,019 |
|
OTHER DATA
(continued): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
Selected Balance Sheet
Data: |
|
|
|
|
|
2019 |
|
|
|
2018 |
|
Cash and cash equivalents |
|
|
|
|
$ |
23,287 |
|
|
$ |
21,494 |
|
Working capital deficit |
|
|
|
|
$ |
(303,620 |
) |
|
$ |
(91,366 |
) |
Total assets |
|
|
|
|
$ |
5,931,736 |
|
|
$ |
4,544,641 |
|
Total debt, net of deferred
financing costs (including current maturities) |
|
|
|
|
$ |
3,053,801 |
|
|
$ |
2,888,688 |
|
Total stockholders’
equity |
|
|
|
|
$ |
1,167,821 |
|
|
$ |
1,131,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
2019 |
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Selected Cash Flow Data: |
|
|
|
|
|
|
|
Cash flows provided by
operating activities |
$ |
170,921 |
|
$ |
154,305 |
|
|
$ |
407,970 |
|
|
$ |
370,089 |
|
Cash flows used in investing
activities |
$ |
172,674 |
|
$ |
58,904 |
|
|
$ |
309,819 |
|
|
$ |
120,326 |
|
Cash flows provided by (used
in) financing activities |
$ |
7,845 |
|
$ |
(104,381 |
) |
|
$ |
(96,502 |
) |
|
$ |
(353,943 |
) |
SUPPLEMENTAL SCHEDULES UNAUDITED RECONCILIATIONS
OF NON-GAAP MEASURES (IN THOUSANDS)
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Reconciliation of Cash Flows
Provided by Operating Activities |
|
|
|
|
|
|
|
to Free Cash
Flow: |
|
|
|
|
|
|
|
Cash flows provided by
operating activities |
$ |
170,921 |
|
|
$ |
154,305 |
|
|
$ |
407,970 |
|
|
$ |
370,089 |
|
Changes in operating assets
and liabilities |
|
8,066 |
|
|
|
7,830 |
|
|
|
58,416 |
|
|
|
62,924 |
|
Total capital
expenditures |
|
(37,120 |
) |
|
|
(29,701 |
) |
|
|
(97,680 |
) |
|
|
(82,174 |
) |
Preferred stock dividends |
|
(91 |
) |
|
|
(91 |
) |
|
|
(273 |
) |
|
|
(273 |
) |
Impact of ASC 842 adoption
(lease accounting standard) |
|
(581 |
) |
|
|
— |
|
|
|
(6,955 |
) |
|
|
— |
|
Other |
|
(2,950 |
) |
|
|
(1,607 |
) |
|
|
(7,607 |
) |
|
|
(5,547 |
) |
Free cash flow |
$ |
138,245 |
|
|
$ |
130,736 |
|
|
$ |
353,871 |
|
|
$ |
345,019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to Adjusted EBITDA: |
|
|
|
|
|
|
|
Net Income |
$ |
99,709 |
|
|
$ |
94,056 |
|
|
$ |
269,358 |
|
|
$ |
209,539 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,429 |
|
Interest income |
|
(168 |
) |
|
|
(157 |
) |
|
|
(553 |
) |
|
|
(313 |
) |
Interest expense |
|
38,323 |
|
|
|
31,850 |
|
|
|
114,240 |
|
|
|
97,321 |
|
Income tax expense (benefit) |
|
3,578 |
|
|
|
2,612 |
|
|
|
(6,714 |
) |
|
|
7,969 |
|
Operating Income |
|
141,442 |
|
|
|
128,361 |
|
|
|
376,331 |
|
|
|
329,945 |
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
10,572 |
|
|
|
8,624 |
|
|
|
18,078 |
|
|
|
22,745 |
|
Impact of ASC 842 adoption (lease accounting standard) |
|
(581 |
) |
|
|
— |
|
|
|
(6,955 |
) |
|
|
— |
|
Depreciation and amortization |
|
63,951 |
|
|
|
55,089 |
|
|
|
187,150 |
|
|
|
167,251 |
|
(Gain) loss on disposition of assets |
|
(199 |
) |
|
|
407 |
|
|
|
(5,360 |
) |
|
|
7,265 |
|
Adjusted EBITDA |
$ |
215,185 |
|
|
$ |
192,481 |
|
|
$ |
569,244 |
|
|
$ |
527,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure detail by
category: |
|
|
|
|
|
|
|
Billboards - traditional |
$ |
11,894 |
|
|
$ |
8,715 |
|
|
$ |
34,587 |
|
|
$ |
23,922 |
|
Billboards - digital |
|
14,461 |
|
|
|
13,093 |
|
|
|
40,498 |
|
|
|
33,210 |
|
Logo |
|
3,249 |
|
|
|
1,895 |
|
|
|
7,153 |
|
|
|
7,000 |
|
Transit |
|
497 |
|
|
|
3,637 |
|
|
|
2,293 |
|
|
|
4,377 |
|
Land and buildings |
|
4,818 |
|
|
|
593 |
|
|
|
6,514 |
|
|
|
6,622 |
|
Operating equipment |
|
2,201 |
|
|
|
1,768 |
|
|
|
6,635 |
|
|
|
7,043 |
|
Total capital expenditures |
$ |
37,120 |
|
|
$ |
29,701 |
|
|
$ |
97,680 |
|
|
$ |
82,174 |
|
SUPPLEMENTAL SCHEDULES UNAUDITED RECONCILIATIONS
OF NON-GAAP MEASURES (IN THOUSANDS)
|
Three months ended September 30, |
|
|
|
2019 |
|
|
2018 |
|
% Change |
Reconciliation of Reported
Basis to Acquisition-Adjusted Results (a): |
|
|
|
|
|
Net revenue |
$ |
457,786 |
|
$ |
418,498 |
|
9.4% |
Acquisitions and
divestitures |
|
— |
|
|
24,439 |
|
|
Acquisition-adjusted net
revenue |
$ |
457,786 |
|
$ |
442,937 |
|
3.4% |
|
|
|
|
|
|
Reported direct advertising
and G&A expenses (b) |
$ |
226,920 |
|
$ |
210,913 |
|
7.6% |
Acquisitions and
divestitures |
|
— |
|
|
13,192 |
|
|
Acquisition-adjusted direct
advertising and G&A expenses |
$ |
226,920 |
|
$ |
224,105 |
|
1.3% |
|
|
|
|
|
|
Outdoor operating income |
$ |
230,866 |
|
$ |
207,585 |
|
11.2% |
Acquisitions and
divestitures |
|
— |
|
|
11,247 |
|
|
Acquisition-adjusted outdoor
operating income |
$ |
230,866 |
|
$ |
218,832 |
|
5.5% |
|
|
|
|
|
|
Reported corporate
expenses |
$ |
15,681 |
|
$ |
15,104 |
|
3.8% |
Acquisitions and
divestitures |
|
— |
|
|
— |
|
|
Acquisition-adjusted corporate
expenses |
$ |
15,681 |
|
$ |
15,104 |
|
3.8% |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
215,185 |
|
$ |
192,481 |
|
11.8% |
Acquisitions and
divestitures |
|
— |
|
|
11,247 |
|
|
Acquisition-adjusted
EBITDA |
$ |
215,185 |
|
$ |
203,728 |
|
5.6% |
|
|
|
|
|
|
(a) Acquisition-adjusted net revenue, direct advertising
and general and administrative expenses, outdoor operating income,
corporate expenses and EBITDA include adjustments to 2018 for
acquisitions and divestitures for the same time frame as actually
owned in 2019.
(b) Does not include a $581 reduction of
expense due to impact of ASC 842 for lease accounting.
|
|
Three months ended September 30, |
|
|
|
|
|
|
2019 |
|
|
|
2018 |
|
|
% Change |
Reconciliation of Net Income
to Outdoor Operating Income: |
|
|
|
|
|
|
|
Net Income |
|
$ |
99,709 |
|
|
$ |
94,056 |
|
|
6.0% |
Interest expense, net |
|
|
38,155 |
|
|
|
31,693 |
|
|
|
Income tax expense |
|
|
3,578 |
|
|
|
2,612 |
|
|
|
Operating Income |
|
|
141,442 |
|
|
|
128,361 |
|
|
10.2% |
|
|
|
|
|
|
|
|
Corporate expenses |
|
|
15,681 |
|
|
|
15,104 |
|
|
|
Stock-based compensation |
|
|
10,572 |
|
|
|
8,624 |
|
|
|
Impact of ASC 842 adoption (lease accounting standard) |
|
|
(581 |
) |
|
|
— |
|
|
|
Depreciation and amortization |
|
|
63,951 |
|
|
|
55,089 |
|
|
|
(Gain) loss on disposition of assets |
|
|
(199 |
) |
|
|
407 |
|
|
|
Outdoor Operating Income |
|
$ |
230,866 |
|
|
$ |
207,585 |
|
|
11.2% |
|
|
Three months ended September 30, |
|
|
Reconciliation of Total
Operating Expense to Acquisition-Adjusted |
|
|
2019 |
|
|
|
2018 |
|
|
% Change |
Consolidated Expense: |
|
|
|
|
|
|
|
|
|
|
Total Operating Expense |
|
$ |
316,344 |
|
|
$ |
290,137 |
|
|
9.0% |
Gain (loss) on disposition of assets |
|
|
199 |
|
|
|
(407 |
) |
|
|
Depreciation and amortization |
|
|
(63,951 |
) |
|
|
(55,089 |
) |
|
|
Impact of ASC 842 adoption (lease accounting standard) |
|
|
581 |
|
|
|
— |
|
|
|
Stock-based compensation |
|
|
(10,572 |
) |
|
|
(8,624 |
) |
|
|
Acquisitions and divestitures |
|
|
— |
|
|
|
13,192 |
|
|
|
Acquisition-Adjusted
Consolidated Expense |
|
$ |
242,601 |
|
|
$ |
239,209 |
|
|
1.4% |
|
|
|
|
|
|
|
SUPPLEMENTAL SCHEDULESUNAUDITED REIT MEASURESAND
RECONCILIATIONS TO GAAP MEASURES(IN THOUSANDS, EXCEPT SHARE AND PER
SHARE DATA)
Adjusted Funds From Operations:
|
Three months ended |
|
Nine months ended |
|
September 30, |
|
September 30, |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
99,709 |
|
|
$ |
94,056 |
|
|
$ |
269,358 |
|
|
$ |
209,539 |
|
Depreciation and amortization related to real estate |
|
59,742 |
|
|
|
52,032 |
|
|
|
175,920 |
|
|
|
157,941 |
|
(Gain) loss from disposition of real estate assets |
|
(164 |
) |
|
|
505 |
|
|
|
(5,048 |
) |
|
|
8,350 |
|
Non-cash tax benefit for REIT converted assets |
|
— |
|
|
|
— |
|
|
|
(17,031 |
) |
|
|
— |
|
Adjustment for unconsolidated affiliates and non-controlling
interest |
|
207 |
|
|
|
43 |
|
|
|
561 |
|
|
|
385 |
|
Funds From Operations |
$ |
159,494 |
|
|
$ |
146,636 |
|
|
$ |
423,760 |
|
|
$ |
376,215 |
|
|
|
|
|
|
|
|
|
Straight-line (income) expense |
|
(1 |
) |
|
|
737 |
|
|
|
(217 |
) |
|
|
(220 |
) |
Impact of ASC 842 adoption (lease accounting standard) |
|
(581 |
) |
|
|
— |
|
|
|
(6,955 |
) |
|
|
— |
|
Stock-based compensation expense |
|
10,572 |
|
|
|
8,624 |
|
|
|
18,078 |
|
|
|
22,745 |
|
Non-cash portion of tax provision expense |
|
662 |
|
|
|
1,138 |
|
|
|
2,572 |
|
|
|
697 |
|
Non-real estate related depreciation and
amortization |
|
4,209 |
|
|
|
3,057 |
|
|
|
11,230 |
|
|
|
9,310 |
|
Amortization of deferred financing costs |
|
1,342 |
|
|
|
1,214 |
|
|
|
4,012 |
|
|
|
3,662 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized expenditures—maintenance |
|
(12,492 |
) |
|
|
(11,248 |
) |
|
|
(35,888 |
) |
|
|
(30,453 |
) |
Adjustment for unconsolidated affiliates and non-controlling
interest |
|
(207 |
) |
|
|
(43 |
) |
|
|
(561 |
) |
|
|
(385 |
) |
|
|
|
|
|
|
|
|
Adjusted Funds From
Operations |
$ |
162,998 |
|
|
$ |
150,115 |
|
|
$ |
416,031 |
|
|
$ |
397,000 |
|
|
|
|
|
|
|
|
|
Divided by weighted average
diluted common shares outstanding |
|
100,522,177 |
|
|
|
99,253,008 |
|
|
|
100,210,143 |
|
|
|
98,870,116 |
|
Diluted AFFO per share |
$ |
1.62 |
|
|
$ |
1.51 |
|
|
$ |
4.15 |
|
|
$ |
4.02 |
|
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