Lamar Revenue Up 28% During 2nd Quarter 21

Lamar’s revenue grew 28% during the second quarter of 2021.  Here are the results from the Lamar’s 2Q 21 earnings release together with a selection of Sean Reilly’s comments during the conference call.

  • Revenues grew 28% to $445 million.  Lamar CEO Sean Reilly expects Lamar’s total 2021 billboard revenue to surpass 2019’s pre-covid level with transit and airport well on their way back.  The company’s strongest sectors were insurance, real estate, gaming and services.
  • Adjusted cashflow (ebidta) grew 60% to $215 million.
  • Capital expenditures totaled $25 million for the second quarter of 2021 with digital billboards accounting for half of all spending.  Digital billboard spending was below what the company wanted due to longer delivery times and difficulty getting labor for installs.
  • Lamar closed on $24 million of tuck-in acquisitions during the second quarter of 2021.
  • CFO Jay Johnson said management will recommend a third quarter dividend  increase from $0.75 to $1.00 to the company’s board.
Sean Reilly, CEO, Lamar Advertising

CEO Sean Reilly on a hot advertising market

The advertising market is red hot right now.  Advertisers are scrambling to get their brands their products and their services in front of customers so they don’t miss out on the economic recovery…

Reilly on supply chain issues and digital billboards

We have been slowed a bit by some supply chain issues…We set a goal of installing 300 units this year.  Given the delays in delivery times which are twice as long as usual and in arranging on site work such as electrical connections I don’t think we’ll get to 300 during 2021.  It’ll be more like 215…we have more than 100 units on order.

Reilly says acquisitions will pick up

The bid-ask spread that made it difficult for a while to reach agreement on prices has dissipated as buyers and sellers have gained more comfort with the shape of the recovery.  We didn’t get a lot of deals closed by June 30 but we have a number of deals under contract and by the time we close the book on 2021 I suspect we will be well north of $150 million in total deal value.

The Vistar Investment

We invested more than $30 million in one of our programmatic partners – Vistar Media.  We’ve been working with Vistar for about 8 years and we have been impressed with the technology and tools that they have built…We see our investment as a strategic move which should half Vistar grown which should in turn help programmatic out of home to the benefit of everyone involved, buyers and sellers.

Insider’s take:  Great numbers.  Lamar is over covid as evidenced by management’s recommendation that the dividend return to pre-covid levels.

Lamar finished the day up 4.5%.  OUTFRONT up 5.6%, Clear Channel Outdoor up 3.9%, the S&P 500 up 0.4%.

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