Lamar Advertising Company (LAMR, Financial) filed Quarterly Report for the period ended 2009-03-31.
Lamar Advertising Company is one of the largest and most experienced owners and operators of outdoor advertising structures in the United States. They also operate the largest logo sign business in the United States and transit advertising displays on bus shelters bus benches and buses in several markets. Logo signs are signs located near highway exits which deliver brand name information on available gas food lodging and camping services. Lamar Advertising Company has a market cap of $1.69 billion; its shares were traded at around $18.5 with a P/E ratio of 205.6 and P/S ratio of 1.4. Lamar Advertising Company had an annual average earning growth of 9.2% over the past 10 years. GuruFocus rated Lamar Advertising Company the business predictability rank of 5-star.
Operating expenses, exclusive of depreciation and amortization and gain on sale of assets, decreased $12.5 million or 7.4% to $157.5 million for the three months ended March 31, 2009 from $170.0 million for the same period in 2008. There was a $10.2 million decrease in operating expenses related to the operations of our outdoor advertising assets and a $2.3 million decrease in corporate expenses.
Cash Generated by Operations. For the three months ended March 31, 2009 and 2008 our cash provided by operating activities was $19.4 million and $19.6 million, respectively. While our net loss was approximately $21.3 million for the three months ended March 31, 2009, we generated cash from operating activities of $19.4 million during that same period, primarily due to non-cash adjustments needed to reconcile net loss to cash provided by operating activities of $79.4 million, which primarily consisted of depreciation and amortization of $85.8 million partially offset by the recognition of deferred tax benefits of $10.9 million. In addition, there was a decrease in working capital of $38.7 million. We expect to generate cash flows from operations during 2009 in excess of our cash needs for operations and capital expenditures as described herein. We expect to use the excess cash generated principally for reducing outstanding indebtedness. See Cash Flows for more information.
Credit Facilities. As of March 31, 2009, Lamar Media had approximately $387.2 million of unused capacity under the revolving credit facility included in its senior credit facility prior to the reduction in revolver credit commitments resulting from Amendment No. 4 to its senior credit facility as discussed below. The senior credit facility was refinanced on September 30, 2005 and was comprised of a $400.0 million revolving senior credit facility and a $400.0 million term facility. Lamar Media and certain of its subsidiaries also borrowed $789.0 million in term loans as a result of incremental borrowings (Series A through Series F) during 2006 and 2007 under the incremental facility included in our senior credit facility. In addition to those incremental borrowings, the incremental facility existing at March 31, 2009 permitted Lamar Media to request that its lenders enter into commitments to make additional term loans, up to a maximum aggregate amount of $500.0 million. The aggregate balance outstanding under our senior credit facility March 31, 2009 was $1.14 billion.
Net revenues decreased $35.6 million or 12.6% to $247.2 million for the three months ended March 31, 2009 from $282.8 million for the same period in 2008. This decrease was attributable primarily to a decrease in billboard net revenues of $32.5 million or 12.6% over the prior period, a decrease in logo sign revenue of $1.2 million, which represents a decrease of 9.8% over the prior period, and a $1.9 million decrease in transit revenue over the prior period, which represents a decrease of 14.4% over the prior period.
Operating expenses, exclusive of depreciation and amortization and gain on sale of assets, decreased $12.7 million or 7.5% to $157.1 million for the three months ended March 31, 2009 from $169.8 million for the same period in 2008. There was a $10.1 million decrease in operating expenses related to the operations of our outdoor advertising assets and a $2.6 million decrease in corporate expenses.
Read the The complete ReportLAMR is in the portfolios of Chuck Akre of Akre Capital Management, LLC, Ron Baron of Baron Funds, Lee Ainslie.
Lamar Advertising Company is one of the largest and most experienced owners and operators of outdoor advertising structures in the United States. They also operate the largest logo sign business in the United States and transit advertising displays on bus shelters bus benches and buses in several markets. Logo signs are signs located near highway exits which deliver brand name information on available gas food lodging and camping services. Lamar Advertising Company has a market cap of $1.69 billion; its shares were traded at around $18.5 with a P/E ratio of 205.6 and P/S ratio of 1.4. Lamar Advertising Company had an annual average earning growth of 9.2% over the past 10 years. GuruFocus rated Lamar Advertising Company the business predictability rank of 5-star.
Highlight of Business Operations:
Net revenues decreased $35.6 million or 12.6% to $247.2 million for the three months ended March 31, 2009 from $282.8 million for the same period in 2008. This decrease was attributable primarily to a decrease in billboard net revenues of $32.5 million or 12.6% over the prior period, a decrease in logo sign revenue of $1.2 million, which represents a decrease of 9.8% over the prior period, and a $1.9 million decrease in transit revenue over the prior period, which represents a decrease of 14.4% over the prior period.Operating expenses, exclusive of depreciation and amortization and gain on sale of assets, decreased $12.5 million or 7.4% to $157.5 million for the three months ended March 31, 2009 from $170.0 million for the same period in 2008. There was a $10.2 million decrease in operating expenses related to the operations of our outdoor advertising assets and a $2.3 million decrease in corporate expenses.
Cash Generated by Operations. For the three months ended March 31, 2009 and 2008 our cash provided by operating activities was $19.4 million and $19.6 million, respectively. While our net loss was approximately $21.3 million for the three months ended March 31, 2009, we generated cash from operating activities of $19.4 million during that same period, primarily due to non-cash adjustments needed to reconcile net loss to cash provided by operating activities of $79.4 million, which primarily consisted of depreciation and amortization of $85.8 million partially offset by the recognition of deferred tax benefits of $10.9 million. In addition, there was a decrease in working capital of $38.7 million. We expect to generate cash flows from operations during 2009 in excess of our cash needs for operations and capital expenditures as described herein. We expect to use the excess cash generated principally for reducing outstanding indebtedness. See Cash Flows for more information.
Credit Facilities. As of March 31, 2009, Lamar Media had approximately $387.2 million of unused capacity under the revolving credit facility included in its senior credit facility prior to the reduction in revolver credit commitments resulting from Amendment No. 4 to its senior credit facility as discussed below. The senior credit facility was refinanced on September 30, 2005 and was comprised of a $400.0 million revolving senior credit facility and a $400.0 million term facility. Lamar Media and certain of its subsidiaries also borrowed $789.0 million in term loans as a result of incremental borrowings (Series A through Series F) during 2006 and 2007 under the incremental facility included in our senior credit facility. In addition to those incremental borrowings, the incremental facility existing at March 31, 2009 permitted Lamar Media to request that its lenders enter into commitments to make additional term loans, up to a maximum aggregate amount of $500.0 million. The aggregate balance outstanding under our senior credit facility March 31, 2009 was $1.14 billion.
Net revenues decreased $35.6 million or 12.6% to $247.2 million for the three months ended March 31, 2009 from $282.8 million for the same period in 2008. This decrease was attributable primarily to a decrease in billboard net revenues of $32.5 million or 12.6% over the prior period, a decrease in logo sign revenue of $1.2 million, which represents a decrease of 9.8% over the prior period, and a $1.9 million decrease in transit revenue over the prior period, which represents a decrease of 14.4% over the prior period.
Operating expenses, exclusive of depreciation and amortization and gain on sale of assets, decreased $12.7 million or 7.5% to $157.1 million for the three months ended March 31, 2009 from $169.8 million for the same period in 2008. There was a $10.1 million decrease in operating expenses related to the operations of our outdoor advertising assets and a $2.6 million decrease in corporate expenses.
Read the The complete ReportLAMR is in the portfolios of Chuck Akre of Akre Capital Management, LLC, Ron Baron of Baron Funds, Lee Ainslie.
