Lamar Advertising Co.
) reported strong fourth quarter 2013 results with earnings of
$10.1 million or 11 cents per share coming in higher than the
$7.8 million or 8 cents per share in the year-earlier quarter.
The robust year-over-year increase in earnings was primarily
attributable to top-line improvement. The reported earnings,
however, missed the Zacks Consensus Estimate by 4 cents.
LAMAR ADVER CO (LAMR): Free Stock Analysis
MILLENNIAL MEDA (MM): Free Stock Analysis
MARIN SOFTWARE (MRIN): Free Stock Analysis
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For full year 2013, Lamar' net income improved significantly to
$39.8 million or 42 cents per share from $7.5 million or 8 cents
per share in the previous year. The superior yearly performance
was attributable to higher revenues for the reported year and
significant loss on extinguishment of debt in 2012.
Net revenues for the reported quarter were $320.4 million
compared with $306.6 million a year ago. The reported quarterly
revenues exceeded the Zacks Consensus Estimate of $317 million.
For full year 2013, Lamar reported revenues of $1,245.8 million
compared with $1,179.7 million in 2012.
Adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA) for the reported quarter were $145.0
million, up from $136.9 million in the comparable period last
year. For full year 2013, adjusted EBITDA increased 6.6% year
over year to $545.1 million.
Cash Flow & Balance Sheet
Lamar had liquidity of $126.2 million at year-end 2013, of which
$93.0 million was available under its $250 million revolving
senior credit facility and $33.2 million in cash and cash
equivalents. Subsequent to the quarter, Lamar amended its
revolving credit facility to increase the borrowing capacity from
$250 million to $400 million. The company also extended the
maturity date of the credit facility to Feb 2019. Lamar had a
long-term debt of approximately $1.9 billion exiting the fourth
quarter of 2013.
Free cash flow in the reported quarter improved 16.3% year over
year to $85.0 million. For full year 2013, free cash flow
increased 14.8% year over year to $303.6 million.
For the first quarter of 2014, management expects net revenue in
the range of $290 million to $293 million, rising 1% to 2% on a
Share prices of this outdoor advertising company increased 3.1%
to $51.62 following the earnings release. The gain came on the
back of a revenue beat and modest outlook for the ongoing
Lamar currently has a Zacks Rank #3 (Hold). Other players in the
industry worth considering include
Millennial Media Inc.
) with a Zacks Rank #1 (Strong Buy), and
Publicis Groupe SA
Marin Software Incorporated
), both holding a Zacks Rank #2 (Buy).