Lamar Advertising Company
) reported its financial results for the first quarter 2012 on May
3. Results were weak as the company reported a loss per share of 25
cents in the quarter as compared to a loss of 14 cents in the
year-ago quarter. Results plummeted due to losses incurred on debt
First quarter loss also surpassed the Zacks Consensus Estimate
of a loss of 14 cents.
Pro forma net revenue jumped 4.1% year over year to $266.2
million in the quarter and registered a reported growth of 4.3%.
The results were above management's revenue guidance of $264
million and pro forma growth forecast of 3.0%.
Direct advertising and G&A expenses in the quarter were
$154.7 million, up 3.5% year over year on a pro forma basis. As
reported, operating income modestly increased year over year to
Interest expense dipped 8.5% year over year to $39.9 million in
the quarter due to a lower debt level. Adjusted EBITDA in the
quarter stood at $99.8 million, up roughly 4.9% year over year.
Exiting the first quarter, Lamar Advertising had cash and cash
equivalents of approximately $35.9 million as compared with $33.5
million in the previous quarter. Total debt, including current
maturities increased to $2,187.6 million from $2,158.5 million in
the previous quarter.
In the first quarter 2012, cash flow from operating activities
was approximately $36.7 million, up 42.1% year over year. Capital
spending dipped 31.5% in the quarter to $19.7 million, of which the
company expended roughly 65.7% on upgrading its billboards business
while the rest was spent for logo, transit, land and buildings, and
operating equipment businesses.
Free cash flow was $44.2 million, up from $26.7 million in the
For the second quarter of 2012, management expects net revenue
to be approximately $303.0 million and up roughly 3.0% on a pro
Lamar Advertising Company is one of the largest owners and
operators of outdoor advertising structures in the U.S. It provides
advertising services to restaurants, retailers, automotive, real
estate, health care, gaming, service, hotel and motel,
telecommunication, and amusement industries, including
entertainments and sports. The company faces stiff competition from
Clear Channel Outdoor Holdings Inc.
) and CBS Outdoor.
The stock currently bears a Zacks #3Rank (Hold).
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LAMAR ADVER CO (LAMR): Free Stock Analysis
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