Lamar Advertising Company (NASDAQ:LAMR) Q2 2024 Earnings Conference Call August 8, 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 - Citigroup Inc.
David Karnovsky - JPMorgan Chase & Co.
Lance Vitanza - TD Cowen

Operator

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 and the amount of timing of any distributions to stockholders and the impacts and effects of general economic conditions of 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 can cause actual results and differ materially from those discussed in this call in the Company's Second Quarter 2024 earnings release and in its most recent annual report on Form 10-K.

Lamar refers you to those documents. Lamar's Second Quarter 2024 earnings release, which contains information required by Regulation G regarding certain non-GAAP financial measures was furnished on the SEC on a form of 8-K this morning and is available on the Investors section of Lamar's website, www.lamar.com.

I'd like to turn the conference over to Sean Reilly. Mr. Reilly, you may begin.

Sean Reilly

Thank you, Natalie. Good morning all, and welcome to Lamar's Q2 2024 earnings call. The trends that we observed in Q1 held in Q2, strong demand from local and regional advertisers more than offset softness in some national customers, allowing us to deliver solid consolidated revenue growth. For the quarter, revenues increased 3.9% on an acquisition-adjusted basis with growth across billboards, transit logos and particularly airports. Meanwhile, we managed expenses well, allowing us to increase EBITDA by 6.3% on an acquisition-adjusted basis and to expand our adjusted EBITDA margin to 48%, a 100 basis point improvement over Q2 of [2024].

Both the EBITDA growth and margin expansion led to AFFO per share growth of 9.5%. Because of that strong performance, management will be recommending to the Board that our Q3 distribution be increased to $1.40 a share. As we look forward, we see more of the same, solid local and regional demand with national still a bit of a drag. As we sit today, revenues are pacing up mid-single digits for the second half with Q4 pacing slightly stronger than Q3. Also, if political comes in for Q4 as it has in the past, there should be some upside that is not yet reflected in our pacing. As it is, we continue to track to reach the top-end of our previously provided guidance for full-year AFFO per share.