Lamar Advertising Company (NASDAQ:LAMR) Q1 2024 Earnings Conference Call May 2, 2024 9:00 AM ET

Company Participants

Sean Reilly - Chief Executive Officer
Jay Johnson - Chief Financial Officer

Conference Call Participants

Cameron McVeigh - Morgan Stanley
Jason Bazinet - Citi

Operator

Excuse me, everyone. We now have Sean Reilly and Jay Johnson in conference. [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 conditions 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 company – in this call and the company’s first quarter 2024 earnings release and its most recent annual report on Form 10-K. Lamar refers you to those documents. Lamar’s first quarter 2024 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 Reilly

Thank you, Michael. Good morning and welcome to Lamar’s Q1 2024 earnings call. I am pleased to report we had a very successful first quarter, one that exceeded our internal expectations for both revenue and EBITDA growth, thanks to continued strength in local sales and a renewed growth on our digital platform, both helped offset weakness in national ad spend.

For the quarter, revenue grew 5.3% on an acquisition-adjusted basis, the largest increase since the two and the 12th consecutive quarter of pro forma revenue growth. EBITDA also increased 6.5% on the same acquisition-adjusted basis. This despite some tough expense comps as a result of COVID relief grants received a year ago in our airport business.

Overall, the year is shaping up nicely. Pacings for the rest of 2024 are materially stronger than this time last year. Therefore, we are raising our guidance for full year AFFO per share to the range of $7.75 to $7.90 per share. We are recommending that the Board approve another $1.30 per share distribution for Q2. But if the year plays out as it appears it will, you will see us raise the distribution in August and perhaps also pay a special dividend at year end.