Lamar Advertising Company (LAMR) Q3 2024 earnings summary

Executive summary

• Net revenues for Q3 2024 were $564.1 million, up 4.0% year-over-year; nine-month net revenues reached $1.63 billion, a 4.7% increase.

• Net income for Q3 2024 was $147.8 million, up 5.3% year-over-year; nine-month net income was $363.9 million, up 4.7%.

• Adjusted EBITDA for Q3 was $271.2 million, up 2.1% year-over-year; nine-month Adjusted EBITDA was $754.6 million, up 5.2%.

• Political advertising reached record levels, contributing nearly $15 million year-to-date through Q3.

• Quarterly cash dividends increased to $1.40 per share in Q3 2024, with aggregate 2024 distributions expected to be at least $5.40 per share.

Financial highlights

• Q3 2024 AFFO rose 5.7% to $220.7 million; nine-month AFFO was $592.5 million, up 8.3%.

• Q3 diluted AFFO per share increased 5.4% to $2.15; nine-month diluted AFFO per share was $5.78, up 7.8%.

• Q3 adjusted EBITDA margin was approximately 48%; full-year margin expected around 47%.

• Local/regional revenue grew 4.9%, while national revenue declined 2.9%.

• Digital revenue increased nearly 5%, with programmatic channel revenue up over 70% year-over-year.

Outlook and guidance

• Full-year diluted AFFO per share guidance raised to $7.85–$7.95, up nearly 6% over 2023 at the midpoint.

• Full-year 2024 net income per diluted share is now expected between $4.97 and $4.99.

• Q4 revenue is pacing ahead of Q3, driven by record political spend and strong local/programmatic sales.

• Management expects 2024 aggregate quarterly distributions to be at least $5.40 per share, with at least a 10% increase in quarterly distributions for 2025, subject to board approval.

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