Lamar Q4 2022 Earnings Report
Key Takeaways
Lamar Advertising Company reported net revenues of $535.5 million for the fourth quarter of 2022, an 8.3% increase compared to the fourth quarter of 2021. Net income for the quarter was $66.1 million. The company anticipates full-year diluted AFFO per share of $7.40 to $7.55 for 2023.
Net revenue increased by 8.3% in the fourth quarter.
Adjusted EBITDA increased 9.4% in the fourth quarter.
Diluted AFFO per share increased 7.3% in the fourth quarter.
Lamar completed 19 acquisitions for a total purchase price of approximately $192 million during the quarter.
Lamar
Lamar
Forward Guidance
Lamar anticipates solid revenue growth and moderating expense growth in 2023, but expects interest expense to be a meaningful headwind. Full-year diluted AFFO per share is anticipated to be between $7.40 and $7.55.
Positive Outlook
- Anticipates solid revenue growth
- Expects moderating expense growth
- Net income between $525 million and $532.5 million
- Funds From Operations between $770 million and $777.5 million
- Capitalized contract fulfillment costs, net $500
Challenges Ahead
- Interest expense is expected to be a meaningful headwind
- Stock-based compensation expense $20 million to $28 million
- Capitalized expenditures—maintenance ($63 million)
- Gain from disposition of real estate assets and investments($5 million)
- Non-real estate related depreciation and amortization $12 million