Sean Reilly was bullish at this week’s Morgan Stanley Technology, Media and Telecom Conference.  Here’s a selection of his comments.

The outlook

It feels great…Looking at Q4 we set records with every financial metric…we’re seeing the same momentum carrying forward…as of right now everything is flashing green.

Political

It breaks late…it’s harder to predict…the prognosticators say we’re going to break records this year.

Out of Home is a GDP-plus business.

You have to start with GDP…Then you think about US domestic ad spend…usually ad spend is going to beat GDP by a smidge and traditionally we’ve beaten US ad spend by a smidge…

On increasing Lamar’s industry leading 44% cashflow margin.

My goal is to hit 47% in 2022.

Gas price increases shouldn’t impact Lamar’s core markets

My gut tells me…there is a certain amount of your commute, especially in middle markets, which is inelastic…You have to drive the kids to school…you have to get to work…the most elastic is the summertime driving…There’s probably no doubt that that is going to be hit…

What’s up and what’s not

Q4 gaming…the whole category was up 35%…Another category that was a little bit explosive…was healthcare…that will probably settle…9 of our top 10 verticals are happy, healthy and up.  The only one that’s not yet is amusement, entertainment and sports, and that’s coming back fast…Auto is good…historically it’s been about 6% of our book and it’s right about there.

Lamar does lots of small acquisitions

Last year we deployed a little more than $300 million.  A lot of little transactions.  The average transaction size was $6 million…I think this year is going to shape up like last year…We’ve already closed a little north of $50 million and we have another $110 under letter of intent…

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