Lamar 4Q net revenue $595.9M, est $593.8M
TL;DR
Lamar Advertising reported Q4 2024 net revenue of $579.6M, slightly below estimates, with a net loss due to increased depreciation expenses. Adjusted EBITDA and free cash flow grew, and the company provided optimistic 2025 guidance.
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Lamar 4Q net revenue $595.9M, est $593.8M
Lamar Advertising Reports Fourth-Quarter Net Revenue of $579.6M, Below Estimate
Lamar Advertising Company (Nasdaq: LAMR) reported fourth-quarter 2024 net revenue of $579.6 million, slightly below the estimated $593.8 million. The 4.3% year-over-year increase in revenue was driven by growth in political, local, and programmatic advertising, according to CEO Sean Reilly. However, the company recorded a net loss of $1.0 million for the quarter, compared to net income of $149.3 million in the same period in 2023.
The decline in net income was primarily attributed to a $159.7 million increase in depreciation and amortization expenses due to a revised estimate of asset retirement obligations. Excluding this non-cash adjustment, net income rose 6.3% year-over-year. Adjusted EBITDA for the quarter reached $278.5 million, a 3.9% increase from $268.2 million in the prior-year period.
Free cash flow for the quarter grew 8.5% to $195.6 million, while funds from operations (FFO) and adjusted funds from operations (AFFO) rose 6.1% and 5.4%, respectively. Diluted AFFO per share increased 5.2% to $2.21. For the full year, Lamar reported net revenue of $2.21 billion, with adjusted EBITDA of $1.03 billion and net income of $362.9 million.
Liquidity remained stable, with $506.7 million in total liquidity as of December 31, 2024, including $457.2 million in available borrowing capacity. Recent developments included the sale of its 20% equity stake in Vistar Media to T-Mobile, generating $115.1 million in proceeds, with an additional $15.1 million potentially payable upon satisfaction of post-closing conditions.
Lamar provided 2025 guidance, projecting diluted AFFO per share between $8.13 and $8.28, exceeding its full-year 2024 result of $7.99. The company emphasized continued focus on organic growth and operational efficiency amid evolving market dynamics.
Lamar Advertising Company, "Fourth Quarter and Year-Ended December 31, 2024 Operating Results," February 20, 2025: Lamar Advertising Company, "Fourth Quarter and Year-Ended December 31, 2024 Operating Results," February 20, 2025.
