Lamar Q4 AFFO Meets Estimates, Revenues Miss, Stock Down 7.3%
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Lamar Advertising Company LAMR reported fourth-quarter 2024 adjusted funds from operations (AFFO) per share of $2.21, which met the Zacks Consensus Estimate. The figure also compared favorably with the prior-year quarter's tally of $2.10.
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Results reflect year-over-year growth in the top line. However, higher direct advertising and general and administrative expenses during the quarter acted as a dampener. Shares of the company were 7.3% down on Feb. 20 at the close of the trading session.
Quarterly net revenues of $579.6 million increased 4.3% on a year-over-year basis. However, it missed the consensus mark of $581.3 million.
Per the company’s chief executive, Sean Reilly, “Our revenue growth accelerated in the fourth quarter, aided by strength in political, local and programmatic. This allowed us to deliver full-year AFFO of $7.99 per share, above the top end of our revised guidance range.”
For full-year 2024, AFFO per share came in at $7.99, up 7% year over year. The figure beat the Zacks Consensus Estimate by a penny. Net revenues grew 4.6% to $2.21 billion.
LAMR’s Fourth Quarter in Detail
Operating income of $36.7 million fell 80.9% from the year-ago period’s $191.7 million, while the adjusted EBITDA increased 3.9% to $278.5 million.
Acquisition-adjusted net revenues for the fourth quarter climbed 4.1% year over year to $579.6 million from the year-ago period’s $556.6 million. Also, acquisition-adjusted EBITDA rose 3.9% to $278.5 million from the year-ago period’s $268 million.
Direct advertising expenses increased 2.6% year over year to $186.2 million during the reported quarter. General and administrative expenses jumped 6.3% year over year to $89.7 million in the reported quarter.
The company’s free cash flow of $195.6 million increased 8.5% year over year in the quarter.
LAMR’s Balance Sheet Position
The cash flow provided by operating activities in the three months ended Dec. 31, 2024 was $279.3 million compared with $227.4 million recorded in the previous quarter.
As of Dec. 31, 2024, Lamar Advertising had a total liquidity of $506.7 million. This comprised $457.2 million available for borrowing under its revolving senior credit facility and $49.5 million in cash and cash equivalents. As of the same date, the outstanding balance under the company’s revolving credit facility totaled $284 million and $250 million under the Accounts Receivable Securitization Program.
LAMR’s 2025 Outlook
For the full year, LAMR expects AFFO per share between $8.13 and $8.28. The Zacks Consensus Estimate presently stands at $8.39, above the projected range.