Q2 2024 Lamar Advertising Co Earnings Call Transcript
Key Points
- Lamar Advertising Co (LAMR) reported a 3.9% increase in revenues on an acquisition-adjusted basis, driven by strong demand from local and regional advertisers.
- The company achieved a 6.3% increase in EBITDA and expanded its adjusted EBITDA margin to 48%, a 100 basis points improvement over the previous year.
- AFFO per share grew by 9.5%, leading management to recommend a Q3 distribution increase to $1.40 per share.
- Programmatic sales were particularly strong, growing 73% compared to Q2 2023, with new customers in the pharma and CPG sectors.
- Lamar Advertising Co (LAMR) successfully paid off a $350 million term loan, further strengthening its balance sheet, which is already considered the best in the industry.
- National sales continue to be a headwind, with a reported decline of 2.5% in Q2, and expectations of another low single-digit decline in Q3.
- The healthcare and financial sectors showed relative weakness, with declines of 5.8% and 3.7% respectively.
- Despite strong local and regional sales, the national sales softness remains a challenge for overall revenue growth.
- The M&A market was quiet, with only $10 million spent on acquisitions in the quarter, and full-year acquisition spending expected to be lower than anticipated.
- The company anticipates the end of its NOLs (Net Operating Losses) this year, which may lead to upward pressure on dividends and potential special dividends to distribute 100% of taxable income.
Excuse me, everyone, we now have Sean Reilly and Jay Johnson in conference. (Operator Instructions) In the course of this discussion, Lamar may make forward-looking statements regarding the company, including statements about its future financial performance, strategic goals, plans and objectives, including with respect in the amount of timing of any distributions to stockholders and the impacts and effects of general economic conditions of the company's business financial condition and results of operations.
All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond Lamar's control and which may cause actual results to differ materially from anticipated results.
Lamar has identified important factors that can cause actual results to differ materially from those discussed in this call in the company's second quarter 2024 earnings release and in this most recent annual report on Form 10-K. Lamar refers you to those documents.
Lamar our second quarter 2024 earnings release, which contains information required by regulation G regarding
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