Lamar Advertising Company (LAMR) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenue was $565.3 million, up 4.5% year-over-year; six-month net revenue reached $1.06 billion, up 5.0% year-over-year, driven by growth in billboard, transit, logos, and especially airports.

• Net income for Q2 2024 was $137.6 million, up from $130.9 million in Q2 2023; six-month net income was $216.1 million, up from $207.1 million.

• Adjusted EBITDA for Q2 2024 grew 6.9% to $271.6 million; six-month adjusted EBITDA rose 7.0% to $483.5 million, with margin expanding to 48%.

• AFFO for Q2 2024 was $213.5 million, up 9.8% year-over-year; diluted AFFO per share increased 9.5% to $2.08 in Q2 and 9.3% to $3.63 for six months.

• Free cash flow for Q2 2024 was $203.5 million, up 27.8% year-over-year; six-month free cash flow was $342.2 million, up 25.6%.

Financial highlights

• Q2 2024 operating income was $184.2 million, up $7.4 million from Q2 2023; six-month operating income was $308.8 million, up $13.2 million.

• Q2 adjusted EBITDA was $271.6 million, up 6.9% from $253.9 million in 2023; adjusted EBITDA margin was 48.1%.

• Q2 2024 AFFO was $213.5 million, up 9.8% year-over-year; six-month AFFO was $371.8 million, up 9.8%.

• Q2 2024 net income per diluted share was $1.34, up from $1.28 in Q2 2023; six-month net income per diluted share was $2.10, up from $2.02.

• Cash flow from operating activities for Q2 2024 was $256.3 million, up $58.2 million; six-month cash flow from operations was $366.9 million, up $60.0 million.

Outlook and guidance

• Full-year diluted AFFO per share is expected at the top end of the $7.75–$7.90 guidance range.

• Management recommends increasing Q3 distribution to $1.40 per share; aggregate 2024 distributions expected to be at least $5.40 per share, subject to board approval.

• Revenues are pacing up mid-single digits for H2, with Q4 expected to be slightly stronger than Q3.

• 2024 capital expenditures are anticipated to be approximately $125 million.

• Total liquidity as of June 30, 2024 was $744.3 million, including $666.4 million available under the revolving credit facility and $77.9 million in cash.