Three Month Results
Net revenue was $542.6 million
Net income was $140.4 million
Adjusted EBITDA was $265.7 million

Nine Month Results
Net revenue was $1.56 billion
Net income was $347.5 million
Adjusted EBITDA was $717.6 million

BATON ROUGE, La., —  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 third quarter ended September 30, 2023.

“In the third quarter, we demonstrated impressive operating leverage, increasing revenue while decreasing expenses on a year-over-year, acquisition-adjusted basis,” Lamar chief executive Sean Reilly said.

“The broader advertising environment remains challenging. Nevertheless, based on current bookings,
we are pacing to reach or even slightly exceed the upper end of our revised guidance for full-year diluted AFFO per share.”

Third Quarter Highlights

• Net revenue increased 2.9%
• Adjusted EBITDA increased 5.8%
• Diluted AFFO per share increased 0.5%

Third Quarter Results

Lamar reported net revenues of $542.6 million for the third quarter of 2023 versus $527.4 million for the third quarter of 2022, a 2.9% increase. Operating income for the third quarter of 2023 increased $7.1 million to $188.1 million as compared to $181.0 million for the same period in 2022. Lamar recognized net income of $140.4 million for the third quarter of 2023 as compared to net income of $146.2 million for the same period in 2022, a decrease of $5.8 million, primarily related to an increase in interest expense of $11.5 million over the same period in 2022. Net income per diluted share was $1.37 and $1.44 for the three months ended September 30, 2023 and 2022, respectively.

Adjusted EBITDA for the third quarter of 2023 was $265.7 million versus $251.2 million for the third quarter of 2022, an increase of 5.8%.

Cash flow provided by operating activities was $222.5 million for the three months ended September 30, 2023 versus $224.5 million for the third quarter of 2022, a decrease of $1.9 million. Free cash flow for the third quarter of 2023 was $181.0 million as compared to $176.0 million for the same period in 2022, a 2.9% increase.

For the third quarter of 2023, funds from operations, or FFO, was $210.0 million versus $207.9 million for the same period in 2022, an increase of 1.0%. Adjusted funds from operations, or AFFO, for the third quarter of 2023 was $208.8 million compared to $206.4 million for the same period in 2022, an increase of 1.2%. Diluted AFFO per share increased 0.5% to $2.04 for the three months ended September 30, 2023 as compared to $2.03 for the same period in 2022.

Acquisition-Adjusted Three Months Results

Acquisition-adjusted net revenue for the third quarter of 2023 increased 1.6% over acquisition-adjusted net revenue for the third quarter of 2022. Acquisition-adjusted EBITDA for the third quarter of 2023 increased 4.5% as compared to acquisition-adjusted EBITDA for the third quarter of 2022. Acquisition-adjusted net revenue and acquisition-adjusted EBITDA include adjustments to the 2022 period for acquisitions and divestitures for the same time frame as actually owned in the 2023 period. See “Reconciliation of Reported Basis to Acquisition-Adjusted Results”, which provides reconciliations to GAAP for acquisition-adjusted measures.

Nine Month Results

Lamar reported net revenues of $1.56 billion for the nine months ended September 30, 2023 versus $1.50 billion for the nine months ended September 30, 2022, a 3.9% increase. Operating income for the nine months ended September 30, 2023 increased $15.8 million to $483.7 million as compared to $467.9 million for the same period in 2022. Lamar recognized net income of $347.5 million for the nine months ended September 30, 2023 as compared to net income of $372.5 million for the same period in 2022, a decrease of $25.0 million, primarily related to an increase in interest expense of $40.3 million over the same period in 2022. Net income per diluted share was $3.39 and $3.66 for the nine months ended September 30, 2023 and 2022, respectively.

Adjusted EBITDA for the nine months ended September 30, 2023 was $717.6 million versus $685.8 million for the same period in 2022, an increase of 4.6%.

Cash flow provided by operating activities was $529.4 million for the nine months ended September 30, 2023, a decrease of $7.7 million as compared to the same period in 2022. Free cash flow for the nine months ended September 30, 2023 was $453.5 million as compared to $477.0 million for the same period in 2022, a 4.9% decrease.

For the nine months ended September 30, 2023, funds from operations, or FFO, was $554.2 million versus $561.8 million for the same period in 2022, a decrease of 1.4%. Adjusted funds from operations, or AFFO, for the nine months ended September 30, 2023 was $547.3 million compared to $555.2 million for the same period in 2022, a decrease of 1.4%. Diluted AFFO per share decreased 1.8% to $5.36 for the nine months ended September 30, 2023 as compared to $5.46 for the same period in 2022.

Liquidity

As of September 30, 2023, Lamar had $645.7 million in total liquidity that consisted of $606.3 million available for borrowing under its revolving senior credit facility and $39.4 million in cash and cash equivalents. There were $135.0 million in borrowings outstanding under the Company’s revolving credit facility and $247.1 million outstanding under the Accounts Receivable Securitization Program as of the same date.

Recent Developments

Subsequent to September 30, 2023, Lamar paid down $70.0 million of its outstanding borrowings under the Company’s revolving credit facility. Currently, there is $65.0 million in outstanding balances under the revolving credit facility.