UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 4, 2011
LAMAR ADVERTISING COMPANY
(Exact name of registrant as specified in its charter)
| Delaware (State or other jurisdiction of incorporation) |
0-30242 (Commission File Number) |
72-1449411 (IRS Employer Identification No.) |
5321 Corporate Boulevard, Baton Rouge, Louisiana 70808
(Address of principal executive offices and zip code)
(Address of principal executive offices and zip code)
(225) 926-1000
(Registrant’s telephone number, including area code)
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02 | Results of Operations and Financial Condition. |
On May 4, 2011, Lamar Advertising Company announced via press release its results for the quarter
ended March 31, 2011. A copy of Lamar’s press release is hereby furnished to the Commission and
incorporated by reference herein as Exhibit 99.1.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
| Exhibit | ||||
| No. | Description | |||
| 99.1 | Press Release of Lamar Advertising Company, dated May 4, 2011, reporting Lamar’s
financial results for the quarter ended March 31, 2011. |
|||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: May 4, 2011 | LAMAR ADVERTISING COMPANY |
|||
| By: | /s/ Keith A. Istre | |||
| Keith A. Istre | ||||
| Treasurer and Chief Financial Officer | ||||
EXHIBIT INDEX
| Exhibit | ||||
| No. | Description | |||
| 99.1 | Press Release of Lamar Advertising Company, dated May 4, 2011, reporting Lamar’s
financial results for the quarter ended March 31, 2011. |
|||
Exhibit 99.1
5321 Corporate Boulevard
Baton Rouge, LA 70808
Baton Rouge, LA 70808
Lamar Advertising Company Announces
First Quarter 2011 Operating Results
First Quarter 2011 Operating Results
Baton Rouge, LA — May 4, 2011 — Lamar Advertising Company (Nasdaq: LAMR), a leading owner and
operator of outdoor advertising and logo sign displays, announces the Company’s operating results
for the first quarter ended March 31, 2011.
First Quarter Results
Lamar reported net revenues of $255.2 million for the first quarter of 2011 versus $244.1 million for the first quarter of 2010, a 4.5% increase. Operating income for the first quarter of 2011 was $25.6 million as compared to $10.8 million for the same period in 2010. There was a net loss of $13.2 million for the first quarter of 2011 compared to a net loss of $24.8 million for the first quarter of 2010.
Lamar reported net revenues of $255.2 million for the first quarter of 2011 versus $244.1 million for the first quarter of 2010, a 4.5% increase. Operating income for the first quarter of 2011 was $25.6 million as compared to $10.8 million for the same period in 2010. There was a net loss of $13.2 million for the first quarter of 2011 compared to a net loss of $24.8 million for the first quarter of 2010.
Adjusted EBITDA, (defined as operating income before non-cash compensation, depreciation
and amortization and gain on disposition of assets — see reconciliation to net loss at the end of
this release) for the first quarter of 2011 was $95.2 million versus $90.8 million for the first
quarter of 2010, a 4.8% increase.
Free cash flow (defined as Adjusted EBITDA less interest, net of interest income and amortization
of financing costs, current taxes, preferred stock dividends and total capital expenditures — see
reconciliation to cash flows provided by operating activities at the end of this release) for the
first quarter of 2011 was $26.7 million as compared to $36.4 million for the same period in 2010, a
decrease of 26.8%. The decrease in free cash flow for the first quarter of 2011 is a result of the
Company’s $20.5 million increase in capital expenditures for the quarter over the comparable period
in 2010.
Pro forma net revenue for the first quarter of 2011 increased 4.2% and pro forma Adjusted EBITDA
increased 5.3% as compared to the first quarter of 2010. Pro forma net revenue and Adjusted EBITDA
include adjustments to the 2010 period for acquisitions and divestitures for the same time frame as
actually owned in the 2011 period. Tables that reconcile reported results to pro forma results and
operating income to outdoor operating income are included at the end of this release.
Liquidity
As of March 31, 2011, Lamar had $272.8 million in total liquidity that consists of $240.4 available for borrowing under its revolving credit facility and $32.4 million in cash on hand.
As of March 31, 2011, Lamar had $272.8 million in total liquidity that consists of $240.4 available for borrowing under its revolving credit facility and $32.4 million in cash on hand.
Guidance
For the second quarter of 2011 the Company expects net revenue to be approximately $296 million. On a pro forma basis this represents an increase of approximately 3%.
For the second quarter of 2011 the Company expects net revenue to be approximately $296 million. On a pro forma basis this represents an increase of approximately 3%.
Forward Looking Statements
This press release contains forward-looking statements, including the statements regarding guidance for the second quarter of 2011. 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 length and severity of the current recession and the effect that it has on the demand for advertising; (3) the continued popularity of outdoor advertising as an advertising medium; (4) our need for and ability to obtain additional funding for operations, debt refinancing or acquisitions; (5) the regulation of the outdoor advertising industry; (6) the integration of companies that we acquire and our ability to recognize cost savings or operating efficiencies as a result of these acquisitions; (7) the market for our Class A common stock and (8) other factors described in our filings with the Securities and Exchange Commission, including the risk factors in Item 1A of our 2010 Annual Report on Forms 10-K, as supplemented by any risk factors contained in our Quarterly Reports on Form 10-Q. 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.
This press release contains forward-looking statements, including the statements regarding guidance for the second quarter of 2011. 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 length and severity of the current recession and the effect that it has on the demand for advertising; (3) the continued popularity of outdoor advertising as an advertising medium; (4) our need for and ability to obtain additional funding for operations, debt refinancing or acquisitions; (5) the regulation of the outdoor advertising industry; (6) the integration of companies that we acquire and our ability to recognize cost savings or operating efficiencies as a result of these acquisitions; (7) the market for our Class A common stock and (8) other factors described in our filings with the Securities and Exchange Commission, including the risk factors in Item 1A of our 2010 Annual Report on Forms 10-K, as supplemented by any risk factors contained in our Quarterly Reports on Form 10-Q. 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 Measures
Adjusted EBITDA, free cash flow, pro forma results and outdoor operating income are not measures of performance under accounting principles generally accepted in the United States of America (“GAAP”) and should not be considered alternatives to operating income, net loss, cash flows from operating activities, or other GAAP figures as indicators of the Company’s financial performance or liquidity. The Company’s management believes that Adjusted EBITDA, free cash flow, pro forma results and outdoor operating income are useful in evaluating the Company’s performance and provide investors and financial analysts a better understanding of the Company’s core operating results. The pro forma acquisition adjustments are intended to provide information that may be useful for investors when assessing period to period results. Our presentations of these measures may not be comparable to similarly titled measures used by other companies. Reconciliations of these measures to GAAP are included at the end of this release.
Adjusted EBITDA, free cash flow, pro forma results and outdoor operating income are not measures of performance under accounting principles generally accepted in the United States of America (“GAAP”) and should not be considered alternatives to operating income, net loss, cash flows from operating activities, or other GAAP figures as indicators of the Company’s financial performance or liquidity. The Company’s management believes that Adjusted EBITDA, free cash flow, pro forma results and outdoor operating income are useful in evaluating the Company’s performance and provide investors and financial analysts a better understanding of the Company’s core operating results. The pro forma acquisition adjustments are intended to provide information that may be useful for investors when assessing period to period results. Our presentations of these measures may not be comparable to similarly titled measures used by other companies. Reconciliations of these measures to GAAP are included at the end of this release.
Conference Call Information
A conference call will be held to discuss the Company’s operating results on Wednesday, May 4, 2011 at 8:30 a.m. central time. Instructions for the conference call and Webcast are provided below:
A conference call will be held to discuss the Company’s operating results on Wednesday, May 4, 2011 at 8:30 a.m. central time. Instructions for the conference call and Webcast are provided below:
Conference Call
All Callers:
|
1-334-323-0520 or 1-334-323-9871 | |
Passcode:
|
Lamar | |
Replay:
|
1-334-323-7226 | |
Passcode:
|
68683765 | |
| Available through Monday, May 9, 2011 at 11:59 p.m. eastern time | ||
Live Webcast:
|
www.lamar.com | |
Webcast Replay:
|
www.lamar.com | |
| Available through Monday, May 9, 2011 at 11:59 p.m. eastern time |
General Information
Lamar Advertising Company is a leading outdoor advertising company currently operating over 150 outdoor advertising companies in 44 states, Canada and Puerto Rico, logo businesses in 22 states and the province of Ontario, Canada and over 60 transit advertising franchises in the United States, Canada and Puerto Rico.
Lamar Advertising Company is a leading outdoor advertising company currently operating over 150 outdoor advertising companies in 44 states, Canada and Puerto Rico, logo businesses in 22 states and the province of Ontario, Canada and over 60 transit advertising franchises in the United States, Canada and Puerto Rico.
| Company Contact: | Keith A. Istre | |||
| Chief Financial Officer | ||||
| (225) 926-1000 | ||||
| KI@lamar.com |
LAMAR ADVERTISING COMPANY AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
| Three months ended | ||||||||
| March 31, | ||||||||
| 2011 | 2010 | |||||||
Net revenues |
$ | 255,202 | $ | 244,103 | ||||
Operating expenses (income) |
||||||||
Direct advertising expenses |
99,551 | 98,552 | ||||||
General and administrative expenses |
49,353 | 44,760 | ||||||
Corporate expenses |
11,133 | 10,022 | ||||||
Non-cash compensation |
2,132 | 2,761 | ||||||
Depreciation and amortization |
73,873 | 78,342 | ||||||
Gain on disposition of assets |
(6,447 | ) | (1,173 | ) | ||||
| 229,595 | 233,264 | |||||||
Operating income |
25,607 | 10,839 | ||||||
Other expense (income) |
||||||||
Loss on extinguishment of debt |
— | 261 | ||||||
Interest income |
(32 | ) | (89 | ) | ||||
Interest expense |
43,620 | 49,330 | ||||||
| 43,588 | 49,502 | |||||||
Loss before income tax |
(17,981 | ) | (38,663 | ) | ||||
Income tax benefit |
(4,741 | ) | (13,836 | ) | ||||
Net loss |
(13,240 | ) | (24,827 | ) | ||||
Preferred stock dividends |
91 | 91 | ||||||
Net loss applicable to common stock |
$ | (13,331 | ) | ($24,918 | ) | |||
Earnings per share: |
||||||||
Basic and diluted loss per share |
$ | (0.14 | ) | $ | (0.27 | ) | ||
Weighted average common shares outstanding: |
||||||||
- basic |
92,681,351 | 91,983,549 | ||||||
- diluted |
93,157,052 | 92,498,159 | ||||||
OTHER DATA
|
||||||||
Free Cash Flow Computation: |
||||||||
Adjusted EBITDA |
$ | 95,165 | $ | 90,769 | ||||
Interest, net |
(39,054 | (45,292 | ) | |||||
Current tax expense |
(534 | ) | (611 | ) | ||||
Preferred stock dividends |
(91 | ) | (91 | ) | ||||
Total capital expenditures (1) |
(28,813 | ) | (8,341 | ) | ||||
Free cash flow |
$ | 26,673 | $ | 36,434 | ||||
(1) See the capital expenditures detail included below for a breakdown by category.
| March 31, | December 31, | |||||||
| 2011 | 2010 | |||||||
Selected Balance Sheet Data: |
||||||||
Cash and cash equivalents |
32,441 | 91,679 | ||||||
Working capital |
125,603 | 155,829 | ||||||
Total assets |
3,577,463 | 3,648,961 | ||||||
Total debt (including current maturities) |
2,356,580 | 2,409,140 | ||||||
Total stockholders’ equity |
$ | 806,097 | $ | 818,523 | ||||
| Three months ended | ||||||||
| March 31, | ||||||||
| 2011 | 2010 | |||||||
Other Data: |
||||||||
Cash flows provided by operating activities |
$ | 25,826 | $ | 7,651 | ||||
Cash flows used in investing activities |
28,335 | 8,042 | ||||||
Cash flows used in financing activities |
57,005 | 79,131 | ||||||
Reconciliation of Free Cash Flow to Cash Flows Provided by
Operating Activities: |
||||||||
Cash flows provided by operating activities |
$ | 25,826 | $ | 7,651 | ||||
Changes in operating assets and liabilities |
30,926 | 39,226 | ||||||
Total capital expenditures |
(28,813 | ) | (8,341 | ) | ||||
Preferred stock dividends |
(91 | ) | (91 | ) | ||||
Other |
(1,175 | ) | (2,011 | ) | ||||
Free cash flow |
$ | 26,673 | $ | 36,434 | ||||
Reconciliation of Adjusted EBITDA to Net loss: |
||||||||
Adjusted EBITDA |
$ | 95,165 | $ | 90,769 | ||||
Less: |
||||||||
Non-cash compensation |
2,132 | 2,761 | ||||||
Depreciation and amortization |
73,873 | 78,342 | ||||||
Gain on disposition of assets |
(6,447 | ) | (1,173 | ) | ||||
Operating Income |
25,607 | 10,839 | ||||||
Less: |
||||||||
Loss on extinguishment of debt |
— | 261 | ||||||
Interest income |
(32 | ) | (89 | ) | ||||
Interest expense |
43,620 | 49,330 | ||||||
Income tax benefit |
(4,741 | ) | (13,836 | ) | ||||
Net loss |
$ | (13,240 | ) | $ | (24,827 | ) | ||
| Three months ended | ||||||||||||
| March 31, | ||||||||||||
| 2011 | 2010 | % Change | ||||||||||
Reconciliation of Reported Basis to Pro Forma (a) Basis: |
||||||||||||
Net revenue |
$ | 255,202 | $ | 244,103 | 4.5 | % | ||||||
Acquisitions and divestitures |
— | 910 | ||||||||||
Pro forma net revenue |
$ | 255,202 | $ | 245,013 | 4.2 | % | ||||||
Direct advertising and G&A expenses |
$ | 148,904 | $ | 143,312 | 3.9 | % | ||||||
Acquisitions and divestitures |
— | 1,299 | ||||||||||
Pro forma direct advertising and G&A expenses |
$ | 148,904 | $ | 144,611 | 3.0 | % | ||||||
Outdoor operating income |
$ | 106,298 | $ | 100,791 | 5.5 | % | ||||||
Acquisitions and divestitures |
— | (389 | ) | |||||||||
Pro forma outdoor operating income |
$ | 106,298 | $ | 100,402 | 5.9 | % | ||||||
Corporate expenses |
$ | 11,133 | $ | 10,022 | 11.1 | % | ||||||
Acquisitions and divestitures |
— | — | ||||||||||
Pro forma corporate expenses |
$ | 11,133 | $ | 10,022 | 11.1 | % | ||||||
Adjusted EBITDA |
$ | 95,165 | $ | 90,769 | 4.8 | % | ||||||
Acquisitions and divestitures |
— | (389 | ) | |||||||||
Pro forma Adjusted EBITDA |
$ | 95,165 | $ | 90,380 | 5.3 | % | ||||||
(a) Pro forma net revenues, direct advertising and general and administrative expenses,
outdoor operating income, corporate expenses and Adjusted EBITDA include adjustments to 2010 for
acquisitions and divestitures for the same time frame as actually owned in 2011.
| Three months ended | ||||||||
| March 31, | ||||||||
| 2011 | 2010 | |||||||
Reconciliation of Outdoor Operating
Income to Operating Income: |
||||||||
Outdoor operating income |
$ | 106,298 | $ | 100,791 | ||||
Less: Corporate expenses |
11,133 | 10,022 | ||||||
Non-cash compensation |
2,132 | 2,761 | ||||||
Depreciation and amortization |
73,873 | 78,342 | ||||||
Plus: Gain on disposition of assets |
6,447 | 1,173 | ||||||
Operating income |
$ | 25,607 | $ | 10,839 | ||||
| Three months ended | ||||||||
| March 31, | ||||||||
| 2011 | 2010 | |||||||
Capital expenditure detail
by category |
||||||||
Billboards — traditional |
$ | 8,681 | $ | 1,636 | ||||
Billboards — digital |
8,433 | 1,733 | ||||||
Logo |
2,158 | 2,087 | ||||||
Transit |
208 | 636 | ||||||
Land and buildings |
599 | 579 | ||||||
Operating equipment |
8,734 | 1,670 | ||||||
Total capital expenditures |
$ | 28,813 | $ | 8,341 | ||||