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Lamar Advertising Company Announces Second Quarter Ended June 30, 2022 Operating Results

·23-min read
Lamar Advertising Company
Lamar Advertising Company

Three Month Results

  • Net revenue was $517.9 million

  • Net income was $134.2 million

  • Adjusted EBITDA was $243.4 million

Six Month Results

  • Net revenue was $969.2 million

  • Net income was $226.4 million

  • Adjusted EBITDA was $434.6 million

BATON ROUGE, La., Aug. 03, 2022 (GLOBE NEWSWIRE) -- Lamar Advertising Company (the “Company” or “Lamar”) (Nasdaq: LAMR), a leading owner and operator of outdoor advertising and logo sign displays, announces the Company’s operating results for the second quarter ended June 30, 2022.

"We are pleased by our second-quarter results, which demonstrated continued sales momentum across our billboard, transit and airport and logos businesses," chief executive Sean Reilly said. "We have continued to book business at a healthy clip, and as a result, we are tracking to the top end of our previously provided range for full-year diluted AFFO per share."

Second Quarter Highlights

  • Net revenue increased 16.4%

  • Operating income increased 11.8%

  • Adjusted EBITDA increased 14.0%

  • Diluted AFFO per share increased 10.9%

Second Quarter Results

Lamar reported net revenues of $517.9 million for the second quarter of 2022 versus $445.1 million for the second quarter of 2021, a 16.4% increase. Operating income for the second quarter of 2022 increased $17.5 million to $166.5 million as compared to $149.0 million for the same period in 2021. Lamar recognized net income of $134.2 million for the second quarter of 2022 as compared to net income of $119.6 million for same period in 2021, an increase of $14.6 million. Net income per diluted share was $1.32 and $1.18 for the three months ended June 30, 2022 and 2021, respectively.

Adjusted EBITDA for the second quarter of 2022 was $243.4 million versus $213.5 million for the second quarter of 2021, an increase of 14.0%.

Cash flow provided by operating activities was $210.6 million for the three months ended June 30, 2022 versus $201.9 million for the second quarter of 2021, an increase of $8.7 million. Free cash flow for the second quarter of 2022 was $166.6 million as compared to $163.3 million for the same period in 2021, a 2.0% increase.

For the second quarter of 2022, funds from operations, or FFO, was $197.6 million versus $176.2 million for the same period in 2021, an increase of 12.1%. Adjusted funds from operations, or AFFO, for the second quarter of 2022 was $196.9 million compared to $177.8 million for the same period in 2021, an increase of 10.7%. Diluted AFFO per share increased 10.9% to $1.94 for the three months ended June 30, 2022 as compared to $1.75 for the same period in 2021.

Acquisition-Adjusted Three Months Results

Acquisition-adjusted net revenue for the second quarter of 2022 increased 12.2% over acquisition-adjusted net revenue for the second quarter of 2021. Acquisition-adjusted EBITDA for the second quarter of 2022 increased 11.1% as compared to acquisition-adjusted EBITDA for the second quarter of 2021. Acquisition-adjusted net revenue and acquisition-adjusted EBITDA include adjustments to the 2021 period for acquisitions and divestitures for the same time frame as actually owned in the 2022 period. See “Reconciliation of Reported Basis to Acquisition-Adjusted Results”, which provides reconciliations to GAAP for acquisition-adjusted measures.

Six Month Results

Lamar reported net revenues of $969.2 million for the six months ended June 30, 2022 versus $815.9 million for the six months ended June 30, 2021, an 18.8% increase. Operating income for the six months ended June 30, 2022 increased $49.1 million to $287.0 million as compared to $237.9 million for the same period in 2021. Lamar recognized net income of $226.4 million for the six months ended June 30, 2022 as compared to net income of $157.9 million for the same period in 2021, an increase of $68.4 million. Net income per diluted share was $2.23 and $1.56 for the six months ended June 30, 2022 and 2021, respectively.

Adjusted EBITDA for the six months ended June 30, 2022 was $434.6 million versus $365.9 million for the same period in 2021, an increase of 18.8%.

Cash flow provided by operating activities was $312.6 million for the six months ended June 30, 2022, an increase of $27.4 million as compared to the same period in 2021. Free cash flow for the six months ended June 30, 2022 was $301.1 million as compared to $270.7 million for the same period in 2021, an 11.2% increase.

For the six months ended June 30, 2022, funds from operations, or FFO, was $353.9 million versus $272.2 million for the same period in 2021, an increase of 30.0%. Adjusted funds from operations, or AFFO, for the six months ended June 30, 2022 was $348.8 million compared to $294.5 million for the same period in 2021, an increase of 18.4%. Diluted AFFO per share increased 17.9% to $3.43 for the six months ended June 30, 2022 as compared to $2.91 for the same period in 2021.

Liquidity

As of June 30, 2022, Lamar had $496.3 million in total liquidity that consisted of $403.6 million available for borrowing under its revolving senior credit facility, $1.0 million under its Accounts Receivable Securitization Program and $91.7 million in cash and cash equivalents. There was $335.0 million and $240.0 million in borrowings outstanding under the Company’s revolving credit facility and Accounts Receivable Securitization Program, respectively, as of the same date.

Recent Developments

On July 29, 2022, Lamar Media entered into a new $350.0 million Senior Secured Term Loan A (the “Term A loans”) agreement. The Term A loans are an incremental tranche under the Fourth Amended and Restated Credit Agreement and will mature February 6, 2025. Proceeds from the Term A loans were used to repay all outstanding balances on the revolving credit facility and a portion of the outstanding balance on the Accounts Receivable Securitization Program. Subsequent to the repayment and currently Lamar Media has no amounts outstanding on the revolving credit facility and $170.0 million outstanding under the Accounts Receivable Securitization Program.

On July 1, 2022, the Company completed a tax reorganization as a specific type of REIT known as an Umbrella Partnership Real Estate Investment Trust (“UPREIT”). The UPREIT organizational structure offers the Company the ability to offer sellers with a low asset tax basis an attractive deferred tax exit strategy. Management believes that the UPREIT structure will give the Company an advantage in the execution of its mergers and acquisition strategy.

On June 24, 2022, Lamar Media entered into the Sixth Amendment to its $175.0 million Receivable Financing Agreement dated December 18, 2018. The amendment increases the Receivable Financing Agreement to $250.0 million, based on the availability of eligible accounts, and extends the maturity date to July 21, 2025. Additionally, the amendment provides for the replacement of LIBOR-based interest rate mechanics with Term Secured Overnight Financing Rate (“SOFR”) based interest rate mechanics.

During the six months ended June 30, 2022, Lamar completed over 40 acquisitions for a total purchase price of $234.3 million, adding approximately 3,900 advertising displays to its portfolio. The completed acquisitions include the acquisition of Burkhart Advertising Inc. acquired on May 4, 2022, which included more than 3,200 advertising displays in Northeast Indiana.

Forward-Looking Statements

This 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 severity and duration of the COVID-19 pandemic and its impact on our business, financial condition and results of operations; (3) the state of the economy and financial markets generally, including inflationary pressures and the effect of the broader economy on the demand for advertising; (4) the continued popularity of outdoor advertising as an advertising medium; (5) our need for and ability to obtain additional funding for operations, debt refinancing or acquisitions; (6) our ability to continue to qualify as a Real Estate Investment Trust (“REIT”) and maintain our status as a REIT; (7) the regulation of the outdoor advertising industry by federal, state and local governments; (8) 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; (9) changes in accounting principles, policies or guidelines; (10) changes in tax laws applicable to REITs or in the interpretation of those laws; (11) our ability to renew expiring contracts at favorable rates; (12) our ability to successfully implement our digital deployment strategy; and (13) 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 for the year ended December 31, 2021, 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 Measures

The 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 earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), 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, equity in earnings (loss) of investees, stock-based compensation, depreciation and amortization, gain or loss on disposition of assets, transactions expenses and investments and capitalized contract fulfillment costs, net.

  • Adjusted EBITDA margin is defined as adjusted EBITDA divided by net revenues.

  • 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) capitalized contract fulfillment costs, net; (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) transaction expenses; (ix) non-recurring infrequent or unusual losses (gains); (x) less maintenance capital expenditures; and (xi) 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, capitalized contract fulfillment costs, net, transaction expenses, 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 to remove the impact of stock-based compensation, depreciation and amortization, transaction expenses, capitalized contract fulfillment costs, net, and loss (gain) on disposition of assets and investments. The prior period is also 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, free cash flow, 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, free cash flow, 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, free cash flow, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense to the most directly comparable GAAP measures have been included herein.

Conference Call Information

A conference call will be held to discuss the Company’s operating results on Wednesday, August 3, 2022 at 8:00 a.m. central time. Instructions for the conference call and Webcast are provided below:

Conference Call

All Callers:

1-785-424-1634 or 1-800-420-1271

Passcode:

63104

 

 

Live Webcast:

www.lamar.com/About/Investors/Presentations

 

 

Webcast Replay:

www.lamar.com/About/Investors/Presentations

 

Available through Wednesday, August 10, 2022 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 4,100 displays.


LAMAR ADVERTISING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net revenues

$

517,852

 

 

$

445,052

 

 

$

969,240

 

 

$

815,933

 

Operating expenses (income)

 

 

 

 

 

 

 

Direct advertising expenses

 

167,360

 

 

 

140,848

 

 

 

324,186

 

 

 

272,563

 

General and administrative expenses

 

84,210

 

 

 

73,219

 

 

 

165,973

 

 

 

143,269

 

Corporate expenses

 

22,920

 

 

 

17,469

 

 

 

44,473

 

 

 

34,153

 

Stock-based compensation

 

7,443

 

 

 

5,789

 

 

 

9,223

 

 

 

9,464

 

Capitalized contract fulfillment costs, net

 

(637

)

 

 

(400

)

 

 

309

 

 

 

(900

)

Transaction expenses

 

3,676

 

 

 

 

 

 

3,676

 

 

 

 

Depreciation and amortization

 

67,750

 

 

 

60,622

 

 

 

136,377

 

 

 

121,371

 

Gain on disposition of assets

 

(1,374

)

 

 

(1,481

)

 

 

(1,937

)

 

 

(1,896

)

Total operating expense

 

351,348

 

 

 

296,066

 

 

 

682,280

 

 

 

578,024

 

Operating income

 

166,504

 

 

 

148,986

 

 

 

286,960

 

 

 

237,909

 

Other expense (income)

 

 

 

 

 

 

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

21,604

 

Interest income

 

(279

)

 

 

(182

)

 

 

(494

)

 

 

(356

)

Interest expense

 

29,493

 

 

 

26,359

 

 

 

56,279

 

 

 

54,513

 

Equity in earnings of investee

 

(355

)

 

 

 

 

 

(1,101

)

 

 

 

 

 

28,859

 

 

 

26,177

 

 

 

54,684

 

 

 

75,761

 

Income before income tax expense

 

137,645

 

 

 

122,809

 

 

 

232,276

 

 

 

162,148

 

Income tax expense

 

3,440

 

 

 

3,200

 

 

 

5,920

 

 

 

4,210

 

Net income

 

134,205

 

 

 

119,609

 

 

 

226,356

 

 

 

157,938

 

Preferred stock dividends

 

91

 

 

 

91

 

 

 

182

 

 

 

182

 

Net income applicable to common stock

$

134,114

 

 

$

119,518

 

 

$

226,174

 

 

$

157,756

 

Earnings per share:

 

 

 

 

 

 

 

Basic earnings per share

$

1.32

 

 

$

1.18

 

 

$

2.23

 

 

$

1.56

 

Diluted earnings per share

$

1.32

 

 

$

1.18

 

 

$

2.23

 

 

$

1.56

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic

 

101,486,547

 

 

 

101,125,855

 

 

 

101,413,458

 

 

 

101,047,295

 

Diluted

 

101,660,120

 

 

 

101,328,939

 

 

 

101,602,743

 

 

 

101,239,848

 

OTHER DATA

 

 

 

 

 

 

 

Free Cash Flow Computation:

 

 

 

 

 

 

 

Adjusted EBITDA

$

243,362

 

 

$

213,516

 

 

$

434,608

 

 

$

365,948

 

Interest, net

 

(27,735

)

 

 

(24,586

)

 

 

(52,835

)

 

 

(51,195

)

Current tax expense

 

(1,886

)

 

 

(437

)

 

 

(4,708

)

 

 

(2,467

)

Preferred stock dividends

 

(91

)

 

 

(91

)

 

 

(182

)

 

 

(182

)

Total capital expenditures

 

(47,043

)

 

 

(25,084

)

 

 

(75,802

)

 

 

(41,416

)

Free cash flow

$

166,607

 

 

$

163,318

 

 

$

301,081

 

 

$

270,688

 


SUPPLEMENTAL SCHEDULES
SELECTED BALANCE SHEET AND CASH FLOW DATA
(IN THOUSANDS)

 

June 30,
2022

 

December 31,
2021

Selected Balance Sheet Data:

 

 

 

Cash and cash equivalents

$

91,686

 

 

$

99,788

 

Working capital deficit

$

(251,326

)

 

$

(274,358

)

Total assets

$

6,282,037

 

 

$

6,047,494

 

Total debt, net of deferred financing costs (including current maturities)

$

3,241,163

 

 

$

3,013,595

 

Total stockholders’ equity

$

1,240,066

 

 

$

1,217,089

 


 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2022

 

2021

 

2022

 

2021

Selected Cash Flow Data:

 

 

 

 

 

 

 

Cash flows provided by operating activities

$

210,592

 

$

201,939

 

$

312,630

 

$

285,257

Cash flows used in investing activities

$

225,036

 

$

46,847

 

$

308,378

 

$

64,670

Cash flows used in financing activities

$

9,570

 

$

129,555

 

$

12,283

 

$

273,643


SUPPLEMENTAL SCHEDULES
UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES
(IN THOUSANDS)

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Reconciliation of Cash Flows Provided by Operating Activities to Free Cash Flow:

 

 

 

 

 

 

 

Cash flows provided by operating activities

$

210,592

 

 

$

201,939

 

 

$

312,630

 

 

$

285,257

 

Changes in operating assets and liabilities

 

4,517

 

 

 

(11,429

)

 

 

64,818

 

 

 

29,175

 

Total capital expenditures

 

(47,043

)

 

 

(25,084

)

 

 

(75,802

)

 

 

(41,416

)

Preferred stock dividends

 

(91

)

 

 

(91

)

 

 

(182

)

 

 

(182

)

Capitalized contract fulfillment costs, net

 

(637

)

 

 

(400

)

 

 

309

 

 

 

(900

)

Transaction expenses

 

3,676

 

 

 

 

 

 

3,676

 

 

 

 

Other

 

(4,407

)

 

 

(1,617

)

 

 

(4,368

)

 

 

(1,246

)

Free cash flow

$

166,607

 

 

$

163,318

 

 

$

301,081

 

 

$

270,688

 

 

 

 

 

 

 

 

 

Reconciliation of Net Income to Adjusted EBITDA:

 

 

 

 

 

 

 

Net income

$

134,205

 

 

$

119,609

 

 

$

226,356

 

 

$

157,938

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

21,604

 

Interest income

 

(279

)

 

 

(182

)

 

 

(494

)

 

 

(356

)

Interest expense

 

29,493

 

 

 

26,359

 

 

 

56,279

 

 

 

54,513

 

Equity in earnings of investee

 

(355

)

 

 

 

 

 

(1,101

)

 

 

 

Income tax expense

 

3,440

 

 

 

3,200

 

 

 

5,920

 

 

 

4,210

 

Operating income

 

166,504

 

 

 

148,986

 

 

 

286,960

 

 

 

237,909

 

Stock-based compensation

 

7,443

 

 

 

5,789

 

 

 

9,223

 

 

 

9,464

 

Capitalized contract fulfillment costs, net

 

(637

)

 

 

(400

)

 

 

309

 

 

 

(900

)

Transaction expenses

 

3,676

 

 

 

 

 

 

3,676

 

 

 

 

Depreciation and amortization

 

67,750

 

 

 

60,622

 

 

 

136,377

 

 

 

121,371

 

Gain on disposition of assets

 

(1,374

)

 

 

(1,481

)

 

 

(1,937

)

 

 

(1,896

)

Adjusted EBITDA

$

243,362

 

 

$

213,516

 

 

$

434,608

 

 

$

365,948

 

 

 

 

 

 

 

 

 

Capital expenditure detail by category:

 

 

 

 

 

 

 

Billboards - traditional

$

10,091

 

 

$

4,604

 

 

$

18,223

 

 

$

7,371

 

Billboards - digital

 

28,618

 

 

 

13,627

 

 

 

41,954

 

 

 

22,701

 

Logo

 

3,595

 

 

 

2,644

 

 

 

6,003

 

 

 

4,567

 

Transit

 

1,714

 

 

 

757

 

 

 

2,204

 

 

 

1,210

 

Land and buildings

 

1,146

 

 

 

1,388

 

 

 

2,635

 

 

 

2,362

 

Operating equipment

 

1,879

 

 

 

2,064

 

 

 

4,783

 

 

 

3,205

 

Total capital expenditures

$

47,043

 

 

$

25,084

 

 

$

75,802

 

 

$

41,416

 


SUPPLEMENTAL SCHEDULES
UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES
(IN THOUSANDS)

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

2022

 

 

2021

 

%
Change

 

 

2022

 

 

2021

 

%
Change

Reconciliation of Reported Basis to Acquisition-Adjusted Results(a):

 

 

 

 

 

 

 

 

 

 

 

Net revenue

$

517,852

 

$

445,052

 

16.4

%

 

$

969,240

 

$

815,933

 

18.8

%

Acquisitions and divestitures

 

 

 

16,461

 

 

 

 

 

 

26,262

 

 

Acquisition-adjusted net revenue

$

517,852

 

$

461,513

 

12.2

%

 

$

969,240

 

$

842,195

 

15.1

%

Reported direct advertising and G&A expenses

$

251,570

 

$

214,067

 

17.5

%

 

$

490,159

 

$

415,832

 

17.9

%

Acquisitions and divestitures

 

 

 

10,974

 

 

 

 

 

 

19,116

 

 

Acquisition-adjusted direct advertising and G&A expenses

$

251,570

 

$

225,041

 

11.8

%

 

$

490,159

 

$

434,948

 

12.7

%

Outdoor operating income

$

266,282

 

$

230,985

 

15.3

%

 

$

479,081

 

$

400,101

 

19.7

%

Acquisition and divestitures

 

 

 

5,487

 

 

 

 

 

 

7,146

 

 

Acquisition-adjusted outdoor operating income

$

266,282

 

$

236,472

 

12.6

%

 

$

479,081

 

$

407,247

 

17.6

%

Reported corporate expense

$

22,920

 

$

17,469

 

31.2

%

 

$

44,473

 

$

34,153

 

30.2

%

Acquisitions and divestitures

 

 

 

 

 

 

 

 

 

 

 

Acquisition-adjusted corporate expenses

$

22,920

 

$

17,469

 

31.2

%

 

$

44,473

 

$

34,153

 

30.2

%

Adjusted EBITDA

$

243,362

 

$

213,516

 

14.0

%

 

$

434,608

 

$

365,948

 

18.8

%

Acquisitions and divestitures

 

 

 

5,487

 

 

 

 

 

 

7,146

 

 

Acquisition-adjusted EBITDA

$

243,362

 

$

219,003

 

11.1

%

 

$

434,608

 

$

373,094

 

16.5

%


(a)

Acquisition-adjusted net revenue, direct advertising and general and administrative expenses, outdoor operating income, corporate expenses and EBITDA include adjustments to 2021 for acquisitions and divestitures for the same time frame as actually owned in 2022.

SUPPLEMENTAL SCHEDULES
UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES
(IN THOUSANDS)

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

2022

 

 

 

2021

 

 

%
Change

 

 

2022

 

 

 

2021

 

 

%
Change

Reconciliation of Net Income to Outdoor Operating Income:

 

 

 

 

 

 

 

 

 

 

 

Net income

$

134,205

 

 

$

119,609

 

 

12.2

%

 

$

226,356

 

 

$

157,938

 

 

43.3

%

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

21,604

 

 

 

Interest expense, net

 

29,214

 

 

 

26,177

 

 

 

 

 

55,785

 

 

 

54,157

 

 

 

Equity in earnings of investee

 

(355

)

 

 

 

 

 

 

 

(1,101

)

 

 

 

 

 

Income tax expense

 

3,440

 

 

 

3,200

 

 

 

 

 

5,920

 

 

 

4,210

 

 

 

Operating income

 

166,504

 

 

 

148,986

 

 

11.8

%

 

 

286,960

 

 

 

237,909

 

 

20.6

%

Corporate expenses

 

22,920

 

 

 

17,469

 

 

 

 

 

44,473

 

 

 

34,153

 

 

 

Stock-based compensation

 

7,443

 

 

 

5,789

 

 

 

 

 

9,223

 

 

 

9,464

 

 

 

Capitalized contract fulfillment costs, net

 

(637

)

 

 

(400

)

 

 

 

 

309

 

 

 

(900

)

 

 

Transaction expenses

 

3,676

 

 

 

 

 

 

 

 

3,676

 

 

 

 

 

 

Depreciation and amortization

 

67,750

 

 

 

60,622

 

 

 

 

 

136,377

 

 

 

121,371

 

 

 

Gain on disposition of assets

 

(1,374

)

 

 

(1,481

)

 

 

 

 

(1,937

)

 

 

(1,896

)

 

 

Outdoor operating income

$

266,282

 

 

$

230,985

 

 

15.3

%

 

$

479,081

 

 

$

400,101

 

 

19.7

%


SUPPLEMENTAL SCHEDULES
UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES
(IN THOUSANDS)

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

2022

 

 

 

2021

 

 

%
Change

 

 

2022

 

 

 

2021

 

 

%
Change

Reconciliation of Total Operating Expense to Acquisition-Adjusted Consolidated Expense:

 

 

 

 

 

 

 

 

 

 

 

Total operating expense

$

351,348

 

 

$

296,066

 

 

18.7

%

 

$

682,280

 

 

$

578,024

 

 

18.0

%

Gain on disposition of assets

 

1,374

 

 

 

1,481

 

 

 

 

 

1,937

 

 

 

1,896

 

 

 

Depreciation and amortization

 

(67,750

)

 

 

(60,622

)

 

 

 

 

(136,377

)

 

 

(121,371

)

 

 

Transaction expenses

 

(3,676

)

 

 

 

 

 

 

 

(3,676

)

 

 

 

 

 

Capitalized contract fulfillment costs, net

 

637

 

 

 

400

 

 

 

 

 

(309

)

 

 

900

 

 

 

Stock-based compensation

 

(7,443

)

 

 

(5,789

)

 

 

 

 

(9,223

)

 

 

(9,464

)

 

 

Acquisitions and divestitures

 

 

 

 

10,974

 

 

 

 

 

 

 

 

19,116

 

 

 

Acquisition-adjusted consolidated expense

$

274,490

 

 

$

242,510

 

 

13.2

%

 

$

534,632

 

 

$

469,101

 

 

14.0

%


SUPPLEMENTAL SCHEDULES
UNAUDITED REIT MEASURES
AND RECONCILIATIONS TO GAAP MEASURES
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Adjusted Funds from Operations:

 

 

 

 

 

 

 

Net income

$

134,205

 

 

$

119,609

 

 

$

226,356

 

 

$

157,938

 

Depreciation and amortization related to real estate

 

64,549

 

 

 

57,852

 

 

 

130,075

 

 

 

115,815

 

Gain from disposition of real estate assets

 

(1,319

)

 

 

(1,412

)

 

 

(1,773

)

 

 

(1,795

)

Adjustment for unconsolidated affiliates and non-controlling interest

 

124

 

 

 

132

 

 

 

(771

)

 

 

285

 

Funds from operations

$

197,559

 

 

$

176,181

 

 

$

353,887

 

 

$

272,243

 

Straight-line expense

 

1,228

 

 

 

954

 

 

 

2,143

 

 

 

1,729

 

Capitalized contract fulfillment costs, net

 

(637

)

 

 

(400

)

 

 

309

 

 

 

(900

)

Stock-based compensation expense

 

7,443

 

 

 

5,789

 

 

 

9,223

 

 

 

9,464

 

Non-cash portion of tax provision

 

1,554

 

 

 

2,763

 

 

 

1,212

 

 

 

1,743

 

Non-real estate related depreciation and amortization

 

3,202

 

 

 

2,770

 

 

 

6,303

 

 

 

5,556

 

Amortization of deferred financing costs

 

1,479

 

 

 

1,591

 

 

 

2,950

 

 

 

2,962

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

21,604

 

Transaction expenses

 

3,676

 

 

 

 

 

 

3,676

 

 

 

 

Capitalized expenditures-maintenance

 

(18,488

)

 

 

(11,699

)

 

 

(31,673

)

 

 

(19,603

)

Adjustment for unconsolidated affiliates and non-controlling interest

 

(124

)

 

 

(132

)

 

 

771

 

 

 

(285

)

Adjusted funds from operations

$

196,892

 

 

$

177,817

 

 

$

348,801

 

 

$

294,513

 

Divided by weighted average diluted common shares outstanding

 

101,660,120

 

 

 

101,328,939

 

 

 

101,602,743

 

 

 

101,239,848

 

Diluted AFFO per share

$

1.94

 

 

$

1.75

 

 

$

3.43

 

 

$

2.91