Lamar Advertising Co.
) reported net income of $7.2 million or 8 cents per share in
fourth quarter 2012 compared with $6.4 million or 7 cents per
share in the year-earlier quarter. Although earnings in the
reported quarter increased year over year, it missed the Zacks
Consensus Estimate by 3 cents.
For full year 2012, the company reported net income of $9.8
million or 10 cents per share versus $8.6 million or 9 cents per
share in the previous year. Earnings for 2012 fell short of the
Zacks Consensus Estimate by 4 cents.
Net revenues for the reported quarter increased 6.0% year over
year to $305.5 million. This resulted in a considerable rise in
operating income (39.2%) in fourth quarter 2012 compared with the
year-ago period, despite relatively high operating expenses. For
full year 2012, net revenues were $1.2 billion vis-à-vis $1.1
billion in the prior year, while operating income climbed to
$217.7 million from $186.4 million in 2011.
Adjusted EBITDA for fourth quarter 2012 were $135.8 million
versus $125.8 million in the year-ago quarter. For full year
2012, adjusted EBITDA aggregated $514.4 million compared with
$487.1 million in the preceding year.
During the reported quarter, Lamar Advertising acquired the
outdoor advertising subsidiary of NextMedia Group Inc., a leading
media company, for $145 million in cash. The company funded the
acquisition through a debt offering of $535 million of 5% senior
subordinated notes due 2023, which resulted in net proceeds of
approximately $527 million.
At year-end 2012, Lamar Advertising had a liquidity of $301.2
million, which included $242.3 million availability under its
revolving senior credit facility and $58.9 million in cash and
cash equivalents. Total debt, including current maturities, was
relatively stable at $2.2 billion.
Free cash flow in the reported quarter was $71.9 million compared
with $63.9 million in the year-ago quarter. For full year 2012,
free cash flow increased 19.0% year over year to $267.5 million.
For the first quarter of 2013, management expects net revenue
within the $282-$285 million range. We remain bullish about the
long-term prospects of the company.
However, Lamar Advertising should remain wary of stiff
competition from other players in the industry such as
Clear Channel Outdoor Holdings Inc.
Publicis Groupe SA
AirMedia Group Inc.
). Lamar Advertising currently has a Zacks Rank #3 (Hold).
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