LAMAR ADVERTISING CO/NEW Q4 FY2024 earnings call

• Revenue growth accelerated in Q4 2024 aided by political, local, and programmatic. Full year AFFO per share was $7.99, above guidance.
• Guiding to 2025 AFFO per share in the range of $8.13 to $8.28 with acquisition-adjusted revenue growth ~3% and similar operating expense increase. Dividend increased to $6.20 per share run rate for 2025.
• Digital growth strong in Q4; plan to deploy at least 350 new digital units organically in 2025, also adding via M&A. Sold 20% stake in Vistar Media, received $115M with potential $15M more from escrow.
• Balance sheet well-laddered debt maturity, reduced debt by $136M in 2024, liquidity strong with over $500M total liquidity.

For the quarter, revenue was up 4.1% on an acquisition-adjusted basis compared to Q4 of 2023 across all lines of business. EBITDA grew 3.9% on acquisition-adjusted basis. Full year AFFO per share was $7.99, $0.04 above revised guidance range and $0.17 above original guidance. Billboard business: local and national/programmatic grew 3.5% in Q4; digital increased nearly 8% in Q4, with same-store growth of 3.7% including 30% growth in programmatic. Local and regional sales accounted for approximately 78% of billboard revenue in Q4 and have grown for 15 consecutive quarters.

• 2025 AFFO per share guidance: $8.13 to $8.28.
• Anticipate acquisition-adjusted revenue growth ~3% in 2025 with similar operating expense increase.
• Q1 2025 revenue growth modest due to leap year comp in 2024; growth picks up later in the year.
• Dividend increased to $6.20 per share run rate for 2025.

• Uncertainty in political spending replacing lost revenue in Q4 and beyond.
• Regulatory permitting and construction issues may limit pace of digital unit deployment.
• Interest rate risks, though current rates are manageable with well-laddered debt maturity.

Q: Curious if national ad spend is driven by specific vertical or broad-based, and driver of turnaround?

A: Sean mentioned national ad spend recovery, noting ERP conversion impact and vertical differences like entertainment category affecting OUTFRONT's share. Jay added about CapEx and Vistar sale headwinds.

Q: Talk about M&A pipeline and T-Mobile acquisition of Vistar?

A: Sean discussed M&A pipeline with potential $150M deals, and excitement about T-Mobile acquiring Vistar, seeing it as positive for the industry due to T-Mobile's insights and marketing understanding.