Lamar Advertising Company (LAMR, Financial) filed Quarterly Report for the period ended 2009-06-30.
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 $1.87 billion; its shares were traded at around $20.42 with and P/S ratio of 1.6. 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.
Net revenues decreased $49.1 million or 15.2% to $274.7 million for the three months ended June 30, 2009 from $323.8 million for the same period in 2008. This decrease was attributable primarily to a decrease in billboard net revenues of $43.9 million or 14.9% over the prior period and a $5.1 million decrease in transit revenue over the prior period, which represents a decrease of 29.0% over the prior period.
Total Liquidity at June 30, 2009. As of June 30, 2009, Lamar Media had approximately $156.0 million in total liquidity that consists of approximately $12.8 million in cash and the ability to fully access its revolving senior credit facility in the amount of $143.2 million while remaining in compliance with covenant restrictions. In addition, Lamar Advertising (Lamar Medias parent) had approximately $144.8 million in cash on hand at June 30, 2009, of which $117.8 million was used to repurchase approximately $120.4 million in aggregate principal amount of its 2 7/8% Convertible Notes due 2010 Series B on July 17, 2009. See Use of Cash Tender Offers below.
Cash Generated by Operations. For the six months ended June 30, 2009 and 2008 our cash provided by operating activities was $116.4 million and $131.3 million, respectively. While our net loss was approximately $33.2 million for the six months ended June 30, 2009, we generated cash from operating activities of $116.4 million during that same period, primarily due to non-cash adjustments needed to reconcile net loss to cash provided by operating activities of $168.7 million, which primarily consisted of depreciation and amortization of $169.3 million partially offset by the recognition of deferred tax benefits of $18.8 million. In addition, there was an increase in working capital of $19.1 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.
Restrictions Under Debt Securities. Currently Lamar Media has outstanding $385.0 million 7 1/4% Senior Subordinated Notes due 2013 issued in December 2002 and June 2003, (the 7 1/4% Notes), $400.0 million 6 5/8% Senior Subordinated Notes due 2015 issued August 2005, $216 million 6 5/8% Senior Subordinated Notes due 2015 Series B issued in August 2006, $275 million 6 5/8% Senior Subordinated Notes due 2015 Series-C issued in October 2007 (collectively, the 6 5/8% Notes) and $350.0 million 9 3/4% Notes. The indentures relating to Lamar Medias outstanding notes restrict its ability to incur 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 to the 7 1/4% Notes and 9 3/4% Notes indenture, and (b) 7.0 to 1, pursuant to the 6 5/8% Notes indentures. In addition to debt incurred under the provisions described in the preceding sentence, the indentures relating to Lamar Medias outstanding notes permit Lamar Media to incur indebtedness pursuant to the following baskets:
Net revenues increased $84.6 million or 13.9% to $522.0 million for the six months ended June 30, 2009 from $606.6 million for the same period in 2008. This decrease was attributable primarily to a decrease in billboard net revenues of $76.4 million or 13.8% over the prior period, a decrease in logo sign revenue of $1.2 million, which represents a decrease of 5.3% over the prior period, and a $7.0 million increase in transit revenue over the prior period, which represents an increase of 22.8% over the prior period.
Read the The complete ReportLAMR is in the portfolios of Chuck Akre of Akre Capital Management, LLC, Ron Baron of Baron Funds.
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 $1.87 billion; its shares were traded at around $20.42 with and P/S ratio of 1.6. 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 $84.6 million or 13.9% to $522.0 million for the six months ended June 30, 2009 from $606.6 million for the same period in 2008. This decrease was attributable primarily to a decrease in billboard net revenues of $76.4 million or 13.8% over the prior period, a decrease in logo sign revenue of $1.2 million, which represents a decrease of 5.3% over the prior period, and a $7.0 million decrease in transit revenue, which represents a decrease of 22.8% over the prior period.Net revenues decreased $49.1 million or 15.2% to $274.7 million for the three months ended June 30, 2009 from $323.8 million for the same period in 2008. This decrease was attributable primarily to a decrease in billboard net revenues of $43.9 million or 14.9% over the prior period and a $5.1 million decrease in transit revenue over the prior period, which represents a decrease of 29.0% over the prior period.
Total Liquidity at June 30, 2009. As of June 30, 2009, Lamar Media had approximately $156.0 million in total liquidity that consists of approximately $12.8 million in cash and the ability to fully access its revolving senior credit facility in the amount of $143.2 million while remaining in compliance with covenant restrictions. In addition, Lamar Advertising (Lamar Medias parent) had approximately $144.8 million in cash on hand at June 30, 2009, of which $117.8 million was used to repurchase approximately $120.4 million in aggregate principal amount of its 2 7/8% Convertible Notes due 2010 Series B on July 17, 2009. See Use of Cash Tender Offers below.
Cash Generated by Operations. For the six months ended June 30, 2009 and 2008 our cash provided by operating activities was $116.4 million and $131.3 million, respectively. While our net loss was approximately $33.2 million for the six months ended June 30, 2009, we generated cash from operating activities of $116.4 million during that same period, primarily due to non-cash adjustments needed to reconcile net loss to cash provided by operating activities of $168.7 million, which primarily consisted of depreciation and amortization of $169.3 million partially offset by the recognition of deferred tax benefits of $18.8 million. In addition, there was an increase in working capital of $19.1 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.
Restrictions Under Debt Securities. Currently Lamar Media has outstanding $385.0 million 7 1/4% Senior Subordinated Notes due 2013 issued in December 2002 and June 2003, (the 7 1/4% Notes), $400.0 million 6 5/8% Senior Subordinated Notes due 2015 issued August 2005, $216 million 6 5/8% Senior Subordinated Notes due 2015 Series B issued in August 2006, $275 million 6 5/8% Senior Subordinated Notes due 2015 Series-C issued in October 2007 (collectively, the 6 5/8% Notes) and $350.0 million 9 3/4% Notes. The indentures relating to Lamar Medias outstanding notes restrict its ability to incur 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 to the 7 1/4% Notes and 9 3/4% Notes indenture, and (b) 7.0 to 1, pursuant to the 6 5/8% Notes indentures. In addition to debt incurred under the provisions described in the preceding sentence, the indentures relating to Lamar Medias outstanding notes permit Lamar Media to incur indebtedness pursuant to the following baskets:
Net revenues increased $84.6 million or 13.9% to $522.0 million for the six months ended June 30, 2009 from $606.6 million for the same period in 2008. This decrease was attributable primarily to a decrease in billboard net revenues of $76.4 million or 13.8% over the prior period, a decrease in logo sign revenue of $1.2 million, which represents a decrease of 5.3% over the prior period, and a $7.0 million increase in transit revenue over the prior period, which represents an increase of 22.8% over the prior period.
Read the The complete ReportLAMR is in the portfolios of Chuck Akre of Akre Capital Management, LLC, Ron Baron of Baron Funds.
