Brief Overview on Company’s Performance: Lamar Advertising Company (REIT) (NASDAQ: LAMR)

On 07 March 2019, Lamar Advertising Company (REIT) (NASDAQ: LAMR) has shown upward/downward move of -1.04% and ended the last trade at $77.99. The shares recorded a trading volume 343,189 shares as compared to its average volume of 452,775 shares. The company has 85.16M shares outstanding and market value of 7.766B.

Lamar Advertising Company (LAMR) reported the Company’s operating results for the fourth quarter and year ended December 31, 2018.

Fourth Quarter Results 
Lamar stated net revenues of $427.9M for the fourth quarter of 2018 versus $398.5M for the fourth quarter of 2017, a 7.4% raise.  Operating income for the fourth quarter of 2018 raised $10.6M to $130.6M as contrast to $120.0M for the same period in 2017.  Lamar recognized net income of $95.7M for the fourth quarter of 2018 contrast to net income of $87.2M for same period in 2017.  Net income per diluted share was $0.96 and $0.88 for the three months ended December 31, 2018 and 2017, respectively.

Adjusted EBITDA for the fourth quarter of 2018 was $195.3M versus $178.4M for the fourth quarter of 2017, an raise of 9.5%.

Cash flow provided by operating activities was $194.8M for the three months ended December 31, 2018, an raise of $8.4M as contrast to the same period in 2017.  Free cash flow for the fourth quarter of 2018 was $126.0M as contrast to $112.3M for the same period in 2017, a 12.2% raise.

For the fourth quarter of 2018, Funds From Operations, or FFO, was $150.8M versus $140.0M for the same period in 2017, an raise of 7.7%.   Adjusted Funds From Operations, or AFFO, for the fourth quarter of 2018 was $147.5M contrast to $135.8M for the same period in 2017, an raise of 8.6%.   Diluted AFFO per share raised 7.2% to $1.48 for the three months ended December 31, 2018 as contrast to $1.38 for the same period in 2017.

Twelve Months Results
Lamar stated net revenues of $1.63B for the twelve months ended December 31, 2018 versus $1.54B for the same period in 2017, a 5.6% raise. Because of non-cash operating expense growth in depreciation, amortization and stock-based compensation for the year ended December 31, 2018 of $34.0M over the same period in 2017, operating income for the year ended December 31, 2018 raised only 1.1% to $460.6M. Because of the above factors and a $15.4M loss on debt extinguishment related to the prepayment of Lamar Media’s 5 7/8% Senior Subordinated Notes due 2022 in the first quarter of 2018, Lamar’s net income for the year ended December 31, 2018 reduced $12.4M to $305.2M as contrast to $317.7M for the same period in 2017.  Net income per diluted share for the year ended December 31, 2018 was $3.08 contrast to $3.23 for the year ended December 31, 2017.  In addition, Adjusted EBITDA for the year ended December 31, 2018 was $722.5M versus $671.4M for the same period in 2017, a 7.6% raise.

Liquidity
As of December 31, 2018, Lamar had $178.3M in total liquidity that consisted of $156.8M accessible for borrowing under its revolving senior credit facility and about $21.5M in cash and cash equivalents. On January 17, 2019, Lamar raised its borrowing capacity under the revolving portion of Lamar Media’s credit facility by an additional $100M in aggregate principal amount.

Guidance
We expect Diluted AFFO per share for fiscal year 2019 will be between $5.67 and $5.83, representing growth of about 3.0% to 6.0% over 2018, with net income per diluted share predictable to be between $3.69 and $3.86.  See “Supplemental Schedules and Unaudited Reconciliations of Non-GAAP Measures” for a reconciliation of GAAP.

The short ratio in the company’s stock is documented at 10.30 and the short float is around of 5.53%. The average true range of the stock is observed at 1.56 and the relative strength index of the stock is recorded at 59.26. Analyst recommendation for this stock stands at 3.30.

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