The following is a summary of the Lamar Advertising Company (LAMR) Q1 2024 Earnings Call Transcript:
Financial Performance:
Lamar Advertising reported Q1 revenue growth of 5.3% on an acquisition-adjusted basis.
EBITDA increase of 6.5% on the same acquisition-adjusted basis.
The company raised its guidance for full year AFFO per share to a range of $7.75 to $7.90 per share.
The bulk of the free cash flow will be used to pay off $350 million Term A loan.
By the end of the year, total leverage is expected to be below 3x net debt to EBITDA.
Diluted AFFO per share increased to $1.54 from $1.41 in Q1 2023.
Business Progress:
Local sales strength and digital platform growth helped offset national ad spend weakness.
Multiple industries exhibited significant growth, including services, restaurants, amusements, and building and construction.
The company's new ERP system has gone live as part of the technology transformation initiative. Phase 2 is planned to commence in late Q2 or early Q3.
The rate of political revenue growth was up nearly $3 million over Q1 2023 and is expected to remain a tailwind.
National sales continue to be a challenge, while regional sales accounted for approximately 82% of billboard revenue in Q1.
While M&A activity is expected to be quiet, the focus will be on balance sheet strengthening, with a more active period anticipated from 2025 onwards.
More details: Lamar Advertising Co IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.