Lamar Advertising Company (NASDAQ:LAMR) Q4 2022 Earnings Conference Call February 24, 2023 9:00 AM ET

Company Participants

Sean E. Reilly - CEO

Jay L. Johnson - EVP and CFO

Conference Call Participants

Benjamin Swinburne - Morgan Stanley

Jason Bazinet - Citigroup

Richard Choe - J.P. Morgan

Operator

Please standby, your program is about to begin. [Operator Instructions]. Excuse me everyone, we now have Sean Reilly and Jay Johnson in conference. Please be aware that each of your lines is in a listen-only mode. At the conclusion of the company’s presentation we will open the floor for questions. [Operator Instructions].

In the course of this discussion, Lamar may make forward-looking statements regarding the company, including statements about its future financial performance, strategic goals, plans and objectives, including with respect to the amount and timing of any distributions to stockholders and the impacts and effects of general economic conditions, including inflationary pressures on the company's business, financial condition, and results of operations. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond Lamar's control, and which may cause actual results to differ materially from anticipated results. Lamar has identified important factors that could cause actual results to differ materially from those discussed in this call in the company's fourth quarter 2022 earnings release, and its most recent annual report on Form 10-K. Lamar refers you to those documents.

Lamar's fourth quarter 2022 earnings release, which contains information required by Regulation G regarding certain non-GAAP financial measures, was furnished to the SEC on a Form 8-K this morning and is available on the Investors section of Lamar's website, www.lamar.com. I would now like to turn the conference over to Sean Reilly. Mr. Reilly, you may begin.

Sean E. Reilly

Thank you Shelby and good morning all and welcome to Lamar’s Q4 2022 earnings call. 2022 was the most successful year in the company's history. On an acquisition adjusted basis revenues grew nearly 10% topping 2 billion for the first time and we reached record levels of EBITDA and AFFO. Perhaps what I'm most proud of, our team delivered consolidated EBITDA margins north of 46% in the face of last year's inflationary pressures. This strong performance amidst the broader uncertainty in the media space demonstrated the continued confidence that businesses have in out of home in advertising's ability to deliver powerful messages to their customers in the right places at the right times. For the fourth quarter, revenue grew 8.3% over 2021 or 4.6% on an acquisition adjusted basis, while expenses continued to moderate increasing 3.2% on an acquisition adjusted basis. That combination translated into nice operating leverage, allowing us to exceed the top end of our guidance range for full year AFFO at $7.38 per share.