Lamar Advertising Company (LAMR, Financial) filed Quarterly Report for the period ended 2010-09-30.
Lamar Advertising Company has a market cap of $3.11 billion; its shares were traded at around $34.09 with and P/S ratio of 3. Lamar Advertising Company had an annual average earning growth of 6.3% over the past 10 years. GuruFocus rated Lamar Advertising Company the business predictability rank of 4.5-star.LAMR is in the portfolios of Chuck Akre of Akre Capital Management, LLC, Ron Baron of Baron Funds, George Soros of Soros Fund Management LLC, Bruce Kovner of Caxton Associates, Jim Simons of Renaissance Technologies LLC, Tom Russo of Gardner Russo & Gardner, Steven Cohen of SAC Capital Advisors, Mario Gabelli of GAMCO Investors, Chuck Royce of Royce& Associates, Jeremy Grantham of GMO LLC.
On April 8, 2010, Lamar Media commenced a tender offer to purchase for cash any and all of its outstanding 7 1/4% Notes. In conjunction with the tender offer, Lamar Media also solicited consents from the holders of the 7 1/4% Notes to amend the 7 1/4% Notes to eliminate certain covenants and amend certain provisions of the indenture governing the 7 1/4% Notes. On April 22, 2010 Lamar Media accepted tenders for approximately $365.4 million in aggregate principal amount of the 7 1/4% Notes in connection with the early settlement date of the tender offer. The holders of accepted notes received a total consideration of $1,012.08 per $1,000 principal amount of the notes tendered. The total cash payment to purchase the tendered 7 1/4% Notes, including accrued and unpaid interest up to but excluding April 22, 2010 was approximately $378 million. Tendering holders also delivered the requisite consents authorizing Lamar Media to remove certain covenants in the 7 1/4% Notes. These consents authorized entry into a Supplemental Indenture, which reflects the amendments to the 7 1/4% Notes discussed above. On May 6, 2010, Lamar Media accepted tenders for an additional $169 thousand in aggregate principal amount of 7 1/4% Notes in connection with the final settlement of the tender offer. On June 7, 2010, Lamar Media redeemed the remaining $19.4 million in outstanding 7 1/4% Notes.
Restrictions Under Debt Securities. Lamar must comply with certain covenants and restrictions related to its outstanding debt securities. Currently Lamar Media has outstanding approximately $400.0 million 6 5/8% Senior Subordinated Notes due 2015 issued August 2005, $216.0 million 6 5/8% Senior Subordinated Notes due 2015 Series B issued in August 2006 and $275.0 million 6 5/8% Senior Subordinated Notes due 2015 Series C issued in October 2007 (collectively, the 6 5/8% Notes), $350 million 9 3/4% Senior Notes due 2014 issued in March 2009 (the 9 3/4% Notes) and $400 million 7 7/8% Senior Subordinated Notes due 2018 (the 7 7/8% Notes). The indentures relating to Lamar Medias outstanding notes restrict its ability to incur additional indebtedness but permit the incurrence of indebtedness (including indebtedness under its senior credit facility), (i) if no default or event of default would result from such incurrence and (ii) if after giving effect to any such incurrence, the leverage ratio (defined as total consolidated debt to trailing four fiscal quarter EBITDA (as defined in the indentures)) would be less than (a) 6.5 to 1, pursuant 9 3/4% Notes indenture, and (b) 7.0 to 1, pursuant to the 6 5/8% Notes and the 7 7/8% Notes indentures.
Convertible Note Prepayment. In March 2010, the Company accepted for payment $1.0 million in principle amount of 2 7/8% Convertible Notes due 2010 at a purchase price of 100% of the original amount of the notes, through a privately negotiated transaction. As of September 30, 2010, the Company had $2.4 million in aggregate principle amount of 2 7/8% Convertible Notes due 2010 outstanding.
Net revenues increased $22.8 million or 2.9% to $816.6 million for the nine months ended September 30, 2010 from $793.8 million for the same period in 2009. This increase was attributable primarily to an increase in billboard net revenues of $14.9 million or 2.1% over the prior period, an increase in logo sign revenue of $2.8 million, which represents an increase of 8.0% over the prior period, and a $5.1 million increase in transit revenue, which represents an increase of 13.7% over the prior period.
Operating expenses, exclusive of depreciation and amortization and gain on sale of assets, increased $10.9 million or 7.2% to $163.1 million for the three months ended September 30, 2010 from $152.2 million for the same period in 2009. Direct advertising expenses increased $2.0 million or 2.0% over the same period in 2009 and corporate and general and administrative expenses increased by $8.9 million or 16.3% over the same period in 2009. The increase in corporate expenses and general and administrative expenses is primarily a result of increases in non-cash compensation expense related to performance based stock awards as compared to the same period in 2009 as well as the reinstatement of the companys 401K match effective July 1, 2010.
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Lamar Advertising Company has a market cap of $3.11 billion; its shares were traded at around $34.09 with and P/S ratio of 3. Lamar Advertising Company had an annual average earning growth of 6.3% over the past 10 years. GuruFocus rated Lamar Advertising Company the business predictability rank of 4.5-star.LAMR is in the portfolios of Chuck Akre of Akre Capital Management, LLC, Ron Baron of Baron Funds, George Soros of Soros Fund Management LLC, Bruce Kovner of Caxton Associates, Jim Simons of Renaissance Technologies LLC, Tom Russo of Gardner Russo & Gardner, Steven Cohen of SAC Capital Advisors, Mario Gabelli of GAMCO Investors, Chuck Royce of Royce& Associates, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
Net revenues increased $22.8 million or 2.9% to $816.6 million for the nine months ended September 30, 2010 from $793.8 million for the same period in 2009. This increase was attributable primarily to an increase in billboard net revenues of $14.9 million or 2.1% over the prior period, an increase in logo sign revenue of $2.8 million, which represents an increase of 8.0% over the prior period, and a $5.1 million increase in transit revenue, which represents an increase of 13.7% over the prior period.On April 8, 2010, Lamar Media commenced a tender offer to purchase for cash any and all of its outstanding 7 1/4% Notes. In conjunction with the tender offer, Lamar Media also solicited consents from the holders of the 7 1/4% Notes to amend the 7 1/4% Notes to eliminate certain covenants and amend certain provisions of the indenture governing the 7 1/4% Notes. On April 22, 2010 Lamar Media accepted tenders for approximately $365.4 million in aggregate principal amount of the 7 1/4% Notes in connection with the early settlement date of the tender offer. The holders of accepted notes received a total consideration of $1,012.08 per $1,000 principal amount of the notes tendered. The total cash payment to purchase the tendered 7 1/4% Notes, including accrued and unpaid interest up to but excluding April 22, 2010 was approximately $378 million. Tendering holders also delivered the requisite consents authorizing Lamar Media to remove certain covenants in the 7 1/4% Notes. These consents authorized entry into a Supplemental Indenture, which reflects the amendments to the 7 1/4% Notes discussed above. On May 6, 2010, Lamar Media accepted tenders for an additional $169 thousand in aggregate principal amount of 7 1/4% Notes in connection with the final settlement of the tender offer. On June 7, 2010, Lamar Media redeemed the remaining $19.4 million in outstanding 7 1/4% Notes.
Restrictions Under Debt Securities. Lamar must comply with certain covenants and restrictions related to its outstanding debt securities. Currently Lamar Media has outstanding approximately $400.0 million 6 5/8% Senior Subordinated Notes due 2015 issued August 2005, $216.0 million 6 5/8% Senior Subordinated Notes due 2015 Series B issued in August 2006 and $275.0 million 6 5/8% Senior Subordinated Notes due 2015 Series C issued in October 2007 (collectively, the 6 5/8% Notes), $350 million 9 3/4% Senior Notes due 2014 issued in March 2009 (the 9 3/4% Notes) and $400 million 7 7/8% Senior Subordinated Notes due 2018 (the 7 7/8% Notes). The indentures relating to Lamar Medias outstanding notes restrict its ability to incur additional indebtedness but permit the incurrence of indebtedness (including indebtedness under its senior credit facility), (i) if no default or event of default would result from such incurrence and (ii) if after giving effect to any such incurrence, the leverage ratio (defined as total consolidated debt to trailing four fiscal quarter EBITDA (as defined in the indentures)) would be less than (a) 6.5 to 1, pursuant 9 3/4% Notes indenture, and (b) 7.0 to 1, pursuant to the 6 5/8% Notes and the 7 7/8% Notes indentures.
Convertible Note Prepayment. In March 2010, the Company accepted for payment $1.0 million in principle amount of 2 7/8% Convertible Notes due 2010 at a purchase price of 100% of the original amount of the notes, through a privately negotiated transaction. As of September 30, 2010, the Company had $2.4 million in aggregate principle amount of 2 7/8% Convertible Notes due 2010 outstanding.
Net revenues increased $22.8 million or 2.9% to $816.6 million for the nine months ended September 30, 2010 from $793.8 million for the same period in 2009. This increase was attributable primarily to an increase in billboard net revenues of $14.9 million or 2.1% over the prior period, an increase in logo sign revenue of $2.8 million, which represents an increase of 8.0% over the prior period, and a $5.1 million increase in transit revenue, which represents an increase of 13.7% over the prior period.
Operating expenses, exclusive of depreciation and amortization and gain on sale of assets, increased $10.9 million or 7.2% to $163.1 million for the three months ended September 30, 2010 from $152.2 million for the same period in 2009. Direct advertising expenses increased $2.0 million or 2.0% over the same period in 2009 and corporate and general and administrative expenses increased by $8.9 million or 16.3% over the same period in 2009. The increase in corporate expenses and general and administrative expenses is primarily a result of increases in non-cash compensation expense related to performance based stock awards as compared to the same period in 2009 as well as the reinstatement of the companys 401K match effective July 1, 2010.
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