Three Month Results
Lamar Advertising Company (Nasdaq:LAMR), a leading owner and
operator of outdoor advertising and logo sign displays, announces
the Company’s operating results for the second quarter ended June
30, 2017.
“Q2 came in largely as expected, and our team
did a good job managing expenses,” said CEO Sean Reilly.
“However, due to what we now see as a sluggish ad environment for
the rest of the year, we are reducing our full year 2017 AFFO per
share guidance accordingly.”
Second
Quarter Highlights
- Consolidated expense growth was held to 1.1%
- Same unit digital revenue increased 2.3%
- National revenue increased 4.5%
- Local revenue increased 1.5%
Second Quarter Results Lamar
reported net revenues of $397.1 million for the second quarter of
2017 versus $387.5 million for the second quarter of 2016, a 2.5%
increase. Operating income for the second quarter of 2017
increased $11.1 million to $128.2 million as compared to $117.1
million for the same period in 2016. Lamar recognized
net income of $92.4 million for the second quarter of 2017 compared
to net income of $81.9 million for same period in 2016. Net
income per diluted share increased 11.9% to $0.94 from $0.84 for
the three months ended June 30, 2017 and 2016, respectively.
Adjusted EBITDA for the second quarter of 2017
was $181.9 million versus $176.4 million for the second quarter of
2016, an increase of 3.1%.
Cash flow provided by operating activities was
$160.3 million for the three months ended June 30, 2017, an
increase of $0.8 million as compared to the same period in 2016.
Free cash flow for the second quarter of 2017 was $119.2
million as compared to $112.1 million for the same period in 2016,
a 6.3% increase.
For the second quarter of 2017, Funds From
Operations, or FFO, was $140.9 million versus $130.2 million for
the same period in 2016, an increase of 8.2%. Adjusted Funds From
Operations, or AFFO, for the second quarter of 2017 was $136.5
million compared to $133.7 million for the same period in 2016, an
increase of 2.1%. Diluted AFFO per share increased 1.5%
to $1.39 for the three months ended June 30, 2017 as compared to
$1.37 for the same period in 2016.
Acquisition-Adjusted Three Months
Results Acquisition-adjusted net revenue for the second
quarter of 2017 increased 1.7% over Acquisition-adjusted net
revenue for the second quarter of 2016. Acquisition-adjusted
EBITDA for the second quarter of 2017 increased 2.4% as compared to
Acquisition-adjusted EBITDA for the second quarter of 2016.
Acquisition-adjusted net revenue and Acquisition-adjusted EBITDA
include adjustments to the 2016 period for acquisitions and
divestitures for the same time frame as actually owned in the 2017
period. See “Reconciliation of Reported Basis to
Acquisition-Adjusted Results”, which provides reconciliations to
GAAP for Acquisition-adjusted measures.
Six Months ResultsLamar
reported net revenues of $743.4 million for the six months ended
June 30, 2017 versus $726.1 million for the same period in 2016, a
2.4% increase. Operating income for the six months ended June
30, 2017 was $203.6 million as compared to $203.9 million for the
same period in 2016. Lamar recognized net income of $134.2
million for the six months ended June 30, 2017 as compared to net
income of $133.2 million for the same period in 2016. Net
income per diluted share remained unchanged at $1.36 for the six
months ended June 30, 2017 and 2016. In addition, Adjusted
EBITDA for the six months ended June 30, 2017 was $310.2 million
versus $306.6 million for the same period in 2016, a 1.2%
increase.
LiquidityAs of June 30, 2017,
Lamar had $452.8 million in total liquidity that consisted of
$409.9 million available for borrowing under its revolving senior
credit facility and approximately $42.9 million in cash and cash
equivalents.
Revised GuidanceDue to current
market conditions, the Company is revising its 2017 full year
guidance for Earnings per share and AFFO per share. Net
income per diluted share is expected to be between $3.09 and
$3.19. Previous Diluted earnings per share guidance had been
$3.13 to $3.28 per share. In addition, Lamar expects Diluted
AFFO per share for 2017 to be between $4.90 and $5.00.
Previous AFFO per share guidance had been $5.05 to $5.20 per
share. See “Supplemental Schedules Unaudited REIT Measures
and Reconciliations to GAAP Measures”, for a reconciliation to
GAAP.
Forward Looking StatementsThis
press release contains forward-looking statements, including
statements regarding sales trends. These statements are
subject to risks and uncertainties that could cause actual results
to differ materially from those projected in these forward-looking
statements. These risks and uncertainties include, among
others: (1) our significant indebtedness; (2) the state of the
economy and financial markets generally and the effect of the
broader economy on the demand for advertising; (3) the continued
popularity of outdoor advertising as an advertising medium; (4) our
need for and ability to obtain additional funding for operations,
debt refinancing or acquisitions; (5) our ability to continue to
qualify as a Real Estate Investment Trust (“REIT”) and maintain our
status as a REIT; (6) the regulation of the outdoor advertising
industry by federal, state and local governments; (7) the
integration of companies that we acquire and our ability to
recognize cost savings or operating efficiencies as a result of
these acquisitions; (8) changes in accounting principles, policies
or guidelines; (9) changes in tax laws applicable to REITs or in
the interpretation of those laws; (10) our ability to renew
expiring contracts at favorable rates; (11) our ability to
successfully implement our digital deployment strategy; and (12)
the market for our Class A common stock. For additional information
regarding factors that may cause actual results to differ
materially from those indicated in our forward-looking statements,
we refer you to the risk factors included in Item 1A of our Annual
Report on Form 10-K for the year ended December 31, 2016, as
supplemented by any risk factors contained in our Quarterly Reports
on Form 10-Q. We caution investors not to place undue
reliance on the forward-looking statements contained in this
document. These statements speak only as of the date of this
document, and we undertake no obligation to update or revise the
statements, except as may be required by law.
Use of Non-GAAP Financial
MeasuresThe Company has presented the following measures
that are not measures of performance under accounting principles
generally accepted in the United States of America (“GAAP”):
Adjusted EBITDA (earnings before interest, taxes, depreciation and
amortization), Free Cash Flow, Funds From Operations (“FFO”),
Adjusted Funds From Operations (“AFFO”), Diluted AFFO per share,
Outdoor Operating Income and Acquisition-Adjusted Results.
Our management reviews our performance by focusing on these key
performance indicators not prepared in conformity with GAAP. We
believe these non-GAAP performance indicators are meaningful
supplemental measures of our operating performance and should not
be considered in isolation of, or as a substitute for their most
directly comparable GAAP financial measures.
Our Non-GAAP financial measures are determined
as follows:
- We define Adjusted EBITDA as net income before income tax
expense (benefit), interest expense (income), gain (loss) on
extinguishment of debt and investments, stock-based compensation,
depreciation and amortization and gain or loss on disposition of
assets and investments.
- Free Cash Flow is defined as Adjusted EBITDA less interest, net
of interest income and amortization of deferred financing costs,
current taxes, preferred stock dividends and total capital
expenditures.
- We use the National Association of Real Estate Investment
Trusts definition of FFO, which is defined as net income before
gains or losses from the sale or disposal of real estate assets and
investments and real estate related depreciation and amortization
and including adjustments to eliminate unconsolidated affiliates
and non-controlling interest.
- We define AFFO as FFO before (i) straight-line revenue and
expense; (ii) stock-based compensation expense;
(iii) non-cash portion of tax provision; (iv) non-real
estate related depreciation and amortization; (v) amortization
of deferred financing costs; (vi) loss on extinguishment of
debt; (vii) non-recurring infrequent or unusual losses
(gains); (viii) less maintenance capital expenditures; and
(ix) an adjustment for unconsolidated affiliates and
non-controlling interest.
- Diluted AFFO per share is defined as AFFO divided by Weighted
average diluted common shares outstanding.
- Outdoor Operating Income is defined as Operating Income before
corporate expenses, stock-based compensation, depreciation and
amortization and gain (loss) on disposition of assets.
- Acquisition-Adjusted Results adjusts our net revenue, direct
and general and administrative expenses, outdoor operating income,
corporate expense and EBITDA for the prior period by adding to, or
subtracting from, the corresponding revenue or expense generated by
the acquired assets or divested before our acquisition or
divestiture of these assets for the same time frame that those
assets were owned in the current period. In calculating
Acquisition-Adjusted Results, therefore, we include revenue and
expenses generated by assets that we did not own in the prior
period but acquired in the current period. We refer to the amount
of pre-acquisition revenue and expense generated by or subtracted
from the acquired assets during the prior period that
corresponds with the current period in which we owned the assets
(to the extent within the period to which this report relates) as
“Acquisition-Adjusted Results”.
Adjusted EBITDA, FFO, AFFO, Outdoor Operating
Income and Acquisition-Adjusted Results are not intended to replace
other performance measures determined in accordance with
GAAP. Free Cash Flow, FFO nor AFFO represent cash flows from
operating activities in accordance with GAAP and, therefore, these
measures should not be considered indicative of cash flows from
operating activities as a measure of liquidity or of funds
available to fund our cash needs, including our ability to make
cash distributions. Rather, Adjusted EBITDA, Free Cash Flow, FFO,
AFFO, Diluted AFFO per share, Outdoor Operating Income and
Acquisition-Adjusted Results are presented as we believe each is a
useful indicator of our current operating performance.
Specifically, we believe that these metrics are useful to an
investor in evaluating our operating performance because
(1) each is a key measure used by our management team for
purposes of decision making and for evaluating our core operating
results; (2) Adjusted EBITDA is widely used in the industry to
measure operating performance as it excludes the impact of
depreciation and amortization, which may vary significantly among
companies, depending upon accounting methods and useful lives,
particularly where acquisitions and non-operating factors are
involved; (3) Adjusted EBITDA, FFO, AFFO and Diluted AFFO per share
each provides investors with a meaningful measure for evaluating
our period-over-period operating performance by eliminating items
that are not operational in nature and reflect the impact on
operations from trends in occupancy rates, operating costs, general
and administrative expenses and interest costs;
(4) Acquisition-Adjusted Results is a supplement to enable
investors to compare period-over-period results on a more
consistent basis without the effects of acquisitions and
divestures, which reflects our core performance and organic growth
(if any) during the period in which the assets were owned and
managed by us; (5) Free Cash Flow is an indicator of our ability to
service debt and generate cash for acquisitions and other strategic
investments; (6) Outdoor Operating Income provides investors a
measurement of our core results without the impact of fluctuations
in stock-based compensation, depreciation and amortization and
corporate expenses; and (7) each of our Non-GAAP measures provides
investors with a measure for comparing our results of operations to
those of other companies.
Our measurement of Adjusted EBITDA, FFO, AFFO,
Outdoor Operating Income and Acquisition-Adjusted Results may not,
however, be fully comparable to similarly titled measures used by
other companies. Reconciliations of Adjusted EBITDA, FFO, AFFO,
Outdoor Operating Income and Acquisition-Adjusted Results to the
most directly comparable GAAP measures have been included
herein.
Conference Call InformationA
conference call will be held to discuss the Company’s operating
results on Tuesday, August 8, 2017 at 8:00 a.m. central time.
Instructions for the conference call and Webcast are provided
below:
Conference Call
All
Callers:Pass Code: |
1-334-323-0520
or 1-334-323-9871Lamar |
|
|
Replay: Pass Code: |
1-334-323-0140
or 1-877-919-405996124574 |
|
|
Live
Webcast: |
Available through
Tuesday, August 15, 2017 at 11:59 p.m. eastern time
www.lamar.com |
|
|
Webcast
Replay: |
www.lamar.com
Available through Tuesday, August 15, 2017 at 11:59
p.m. eastern time |
|
|
Company
Contact: |
Buster KantrowDirector
of Investor Relations(225) 926-1000bkantrow@lamar.com |
General InformationFounded in 1902, Lamar
Advertising (Nasdaq:LAMR) is one of the largest outdoor advertising
companies in North America, with more than 330,000 displays across
the United States, Canada and Puerto Rico. Lamar offers advertisers
a variety of billboard, interstate logo and transit advertising
formats, helping both local businesses and national brands reach
broad audiences every day. In addition to its more traditional
out-of-home inventory, Lamar is proud to offer its customers the
largest network of digital billboards in the United States with
over 2,600 displays.
LAMAR ADVERTISING COMPANY AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
(UNAUDITED) |
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) |
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
Net
revenues |
$ |
397,078 |
|
|
$ |
387,528 |
|
|
$ |
743,440 |
|
|
$ |
726,061 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses (income) |
|
|
|
|
|
|
|
|
Direct advertising
expenses |
|
135,075 |
|
|
|
132,725 |
|
|
|
266,919 |
|
|
|
261,450 |
|
|
General and
administrative expenses |
|
63,723 |
|
|
|
63,287 |
|
|
|
133,572 |
|
|
|
127,717 |
|
|
Corporate expenses |
|
16,363 |
|
|
|
15,124 |
|
|
|
32,700 |
|
|
|
30,311 |
|
|
Stock-based
compensation |
|
2,565 |
|
|
|
8,093 |
|
|
|
5,043 |
|
|
|
11,292 |
|
|
Depreciation and
amortization |
|
51,782 |
|
|
|
51,933 |
|
|
|
103,207 |
|
|
|
103,422 |
|
|
Gain on disposition of
assets |
|
(607 |
) |
|
|
(705 |
) |
|
|
(1,643 |
) |
|
|
(12,032 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
268,901 |
|
|
|
270,457 |
|
|
|
539,798 |
|
|
|
522,160 |
|
|
Operating income |
|
128,177 |
|
|
|
117,071 |
|
|
|
203,642 |
|
|
|
203,901 |
|
|
|
|
|
|
|
|
|
|
Other
(income) expense |
|
|
|
|
|
|
|
|
Interest income |
|
— |
|
|
|
(3 |
) |
|
|
(4 |
) |
|
|
(4 |
) |
|
Loss on extinguishment
of debt |
|
71 |
|
|
|
56 |
|
|
|
71 |
|
|
|
3,198 |
|
|
Interest expense |
|
31,979 |
|
|
|
31,299 |
|
|
|
63,462 |
|
|
|
61,367 |
|
|
|
|
32,050 |
|
|
|
31,352 |
|
|
|
63,529 |
|
|
|
64,561 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income tax expense |
|
96,127 |
|
|
|
85,719 |
|
|
|
140,113 |
|
|
|
139,340 |
|
Income tax
expense |
|
3,733 |
|
|
|
3,810 |
|
|
|
5,932 |
|
|
|
6,117 |
|
|
|
|
|
|
|
|
|
|
Net
income |
|
92,394 |
|
|
|
81,909 |
|
|
|
134,181 |
|
|
|
133,223 |
|
Preferred
stock dividends |
|
91 |
|
|
|
91 |
|
|
|
182 |
|
|
|
182 |
|
Net income
applicable to common stock |
$ |
92,303 |
|
|
$ |
81,818 |
|
|
$ |
133,999 |
|
|
$ |
133,041 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share: |
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.94 |
|
|
$ |
0.84 |
|
|
$ |
1.37 |
|
|
$ |
1.37 |
|
Diluted earnings per share |
$ |
0.94 |
|
|
$ |
0.84 |
|
|
$ |
1.36 |
|
|
$ |
1.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding: - basic -
diluted |
|
97,941,766 98,442,860 |
|
|
|
97,121,619 97,731,467 |
|
|
|
97,759,636 98,276,283 |
|
|
|
96,956,535 97,523,379 |
|
OTHER DATA |
|
|
|
|
|
|
|
Free Cash
Flow Computation: |
|
|
|
|
|
|
|
Adjusted
EBITDA |
$ |
181,917 |
|
|
$ |
176,392 |
|
|
$ |
310,249 |
|
|
$ |
306,583 |
|
Interest,
net |
|
(30,704 |
) |
|
|
(30,017 |
) |
|
|
(60,835 |
) |
|
|
(58,702 |
) |
Current tax
expense |
|
(3,348 |
) |
|
|
(3,269 |
) |
|
|
(5,902 |
) |
|
|
(5,758 |
) |
Preferred
stock dividend |
|
(91 |
) |
|
|
(91 |
) |
|
|
(182 |
) |
|
|
(182 |
) |
Total
capital expenditures |
|
(28,600 |
) |
|
|
(30,894 |
) |
|
|
(47,836 |
) |
|
|
(51,513 |
) |
Free Cash
Flow |
$ |
119,174 |
|
|
$ |
112,121 |
|
|
$ |
195,494 |
|
|
$ |
190,428 |
|
OTHER DATA (continued): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Balance Sheet Data: |
|
|
|
|
|
June 30, 2017 |
|
|
|
December 31,2016 |
|
Cash and
cash equivalents |
|
|
|
|
$ |
42,884 |
|
|
$ |
35,530 |
|
Working
capital |
|
|
|
|
$ |
124,769 |
|
|
$ |
36,929 |
|
Total
assets |
|
|
|
|
$ |
3,946,077 |
|
|
$ |
3,898,884 |
|
Total
debt, net of deferred financing costs (including current
maturities) |
|
|
|
|
$ |
2,391,854 |
|
|
$ |
2,349,183 |
|
Total
stockholders’ equity |
|
|
|
|
$ |
1,071,105 |
|
|
$ |
1,069,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Selected
Cash Flow Data: |
|
|
|
|
|
|
|
Cash
flows provided by operating activities |
$ |
160,257 |
|
|
$ |
159,488 |
|
|
$ |
194,753 |
|
|
$ |
211,025 |
|
Cash
flows used in investing activities |
$ |
(37,941 |
) |
|
$ |
(33,360 |
) |
|
$ |
(73,360 |
) |
|
$ |
(550,913 |
) |
Cash
flows (used in) provided by financing activities |
$ |
(111,665 |
) |
|
$ |
(112,888 |
) |
|
$ |
(114,837 |
) |
|
$ |
358,115 |
|
SUPPLEMENTAL SCHEDULES |
UNAUDITED RECONCILIATIONS OF NON-GAAP
MEASURES |
(IN THOUSANDS) |
|
|
Three months ended |
|
Six months ended |
|
June 30, |
|
June 30, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Reconciliation of Free
Cash Flow to Cash Flows Provided by |
|
|
|
|
|
|
|
Operating
Activities: |
|
|
|
|
|
|
|
Cash flows provided by
operating activities |
$ |
160,257 |
|
|
$ |
159,488 |
|
|
$ |
194,753 |
|
|
$ |
211,025 |
|
Changes in operating
assets and liabilities |
|
(10,424 |
) |
|
|
(14,551 |
) |
|
|
52,155 |
|
|
|
34,638 |
|
Total capital
expenditures |
|
(28,600 |
) |
|
|
(30,894 |
) |
|
|
(47,836 |
) |
|
|
(51,513 |
) |
Preferred stock
dividends |
|
(91 |
) |
|
|
(91 |
) |
|
|
(182 |
) |
|
|
(182 |
) |
Other |
|
(1,968 |
) |
|
|
(1,831 |
) |
|
|
(3,396 |
) |
|
|
(3,540 |
) |
Free cash
flow |
$ |
119,174 |
|
|
$ |
112,121 |
|
|
$ |
195,494 |
|
|
$ |
190,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Income to Adjusted EBITDA: |
|
|
|
|
|
|
|
Net Income |
$ |
92,394 |
|
|
$ |
81,909 |
|
|
$ |
134,181 |
|
|
$ |
133,223 |
|
Interest income |
|
— |
|
|
|
(3 |
) |
|
|
(4 |
) |
|
|
(4 |
) |
Loss on extinguishment of debt |
|
71 |
|
|
|
56 |
|
|
|
71 |
|
|
|
3,198 |
|
Interest expense |
|
31,979 |
|
|
|
31,299 |
|
|
|
63,462 |
|
|
|
61,367 |
|
Income tax expense |
|
3,733 |
|
|
|
3,810 |
|
|
|
5,932 |
|
|
|
6,117 |
|
Operating Income |
|
128,177 |
|
|
|
117,071 |
|
|
|
203,642 |
|
|
|
203,901 |
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
2,565 |
|
|
|
8,093 |
|
|
|
5,043 |
|
|
|
11,292 |
|
Depreciation and amortization |
|
51,782 |
|
|
|
51,933 |
|
|
|
103,207 |
|
|
|
103,422 |
|
Gain on disposition of assets |
|
(607 |
) |
|
|
(705 |
) |
|
|
(1,643 |
) |
|
|
(12,032 |
) |
Adjusted EBITDA |
$ |
181,917 |
|
|
$ |
176,392 |
|
|
$ |
310,249 |
|
|
$ |
306,583 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure
detail by category: |
|
|
|
|
|
|
|
Billboards -
traditional |
$ |
7,260 |
|
|
$ |
16,498 |
|
|
$ |
13,539 |
|
|
$ |
23,372 |
|
Billboards -
digital |
|
13,376 |
|
|
|
8,926 |
|
|
|
20,963 |
|
|
|
15,474 |
|
Logo |
|
2,110 |
|
|
|
1,830 |
|
|
|
3,911 |
|
|
|
3,261 |
|
Transit |
|
65 |
|
|
|
86 |
|
|
|
288 |
|
|
|
216 |
|
Land and
buildings |
|
3,132 |
|
|
|
1,655 |
|
|
|
4,514 |
|
|
|
5,548 |
|
Operating
equipment |
|
2,657 |
|
|
|
1,899 |
|
|
|
4,621 |
|
|
|
3,642 |
|
Total capital
expenditures |
$ |
28,600 |
|
|
$ |
30,894 |
|
|
$ |
47,836 |
|
|
$ |
51,513 |
|
SUPPLEMENTAL SCHEDULES |
UNAUDITED RECONCILIATIONS OF NON-GAAP
MEASURES |
(IN THOUSANDS) |
|
|
Three months ended June 30, |
|
|
|
2017 |
|
|
2016 |
|
% Change |
Reconciliation of
Reported Basis to Acquisition-Adjusted Results (a): |
|
|
|
|
|
Net revenue |
$ |
397,078 |
|
$ |
387,528 |
|
2.5 |
% |
Acquisitions and
divestitures |
|
— |
|
|
2,904 |
|
|
Acquisition-adjusted
results-net revenue |
$ |
397,078 |
|
$ |
390,432 |
|
1.7 |
% |
|
|
|
|
|
|
Reported direct
advertising and G&A expenses |
$ |
198,798 |
|
$ |
196,012 |
|
1.4 |
% |
Acquisitions and
divestitures |
|
— |
|
|
1,600 |
|
|
Acquisition-adjusted
results-direct advertising and G&A expenses |
$ |
198,798 |
|
$ |
197,612 |
|
0.6 |
% |
|
|
|
|
|
|
Outdoor operating
income |
$ |
198,280 |
|
$ |
191,516 |
|
3.5 |
% |
Acquisitions and
divestitures |
|
— |
|
|
1,304 |
|
|
Acquisition-adjusted
results-outdoor operating income |
$ |
198,280 |
|
$ |
192,820 |
|
2.8 |
% |
|
|
|
|
|
|
Reported corporate
expenses |
$ |
16,363 |
|
$ |
15,124 |
|
8.2 |
% |
Acquisitions and
divestitures |
|
— |
|
|
— |
|
|
Acquisition-adjusted
results-corporate expenses |
$ |
16,363 |
|
$ |
15,124 |
|
8.2 |
% |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
181,917 |
|
$ |
176,392 |
|
3.1 |
% |
Acquisitions and
divestitures |
|
— |
|
|
1,304 |
|
|
Acquisition-adjusted
EBITDA |
$ |
181,917 |
|
$ |
177,696 |
|
2.4 |
% |
|
|
|
|
|
|
(a) Acquisition-adjusted net
revenue, direct advertising and general and administrative
expenses, outdoor operating income, corporate expenses and EBITDA
include adjustments to 2016 for acquisitions and divestitures for
the same time frame as actually owned in 2017.
|
|
Three months ended June 30, |
|
|
|
2017 |
|
|
|
2016 |
|
Reconciliation of Net Income to Outdoor Operating
Income: |
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
92,394 |
|
|
$ |
81,909 |
|
Interest
income |
|
|
— |
|
|
|
(3 |
) |
Loss on
extinguishment of debt |
|
|
71 |
|
|
|
56 |
|
Interest
expense |
|
|
31,979 |
|
|
|
31,299 |
|
Income
tax expense |
|
|
3,733 |
|
|
|
3,810 |
|
Operating Income |
|
|
128,177 |
|
|
|
117,071 |
|
|
|
|
|
|
Corporate
expenses |
|
|
16,363 |
|
|
|
15,124 |
|
Stock-based compensation |
|
|
2,565 |
|
|
|
8,093 |
|
Depreciation and amortization |
|
|
51,782 |
|
|
|
51,933 |
|
Gain on
disposition of assets |
|
|
(607 |
) |
|
|
(705 |
) |
Outdoor Operating
Income |
|
$ |
198,280 |
|
|
$ |
191,516 |
|
SUPPLEMENTAL SCHEDULES |
UNAUDITED REIT MEASURES |
AND RECONCILIATIONS TO GAAP MEASURES |
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) |
|
Adjusted
Funds From Operations: |
|
|
Three months ended |
Six months ended |
|
June 30, |
June 30, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
92,394 |
|
|
$ |
81,909 |
|
|
$ |
134,181 |
|
|
$ |
133,223 |
|
Depreciation and amortization related to real estate |
|
48,865 |
|
|
|
48,300 |
|
|
|
97,386 |
|
|
|
96,067 |
|
Gain from disposition of real estate assets and
investments |
|
(568 |
) |
|
|
(207 |
) |
|
|
(1,407 |
) |
|
|
(11,474 |
) |
Adjustment for unconsolidated affiliates and non-controlling
interest |
|
213 |
|
|
|
170 |
|
|
|
390 |
|
|
|
266 |
|
Funds From
Operations |
$ |
140,904 |
|
|
$ |
130,172 |
|
|
$ |
230,550 |
|
|
$ |
218,082 |
|
|
|
|
|
|
|
|
|
Straight-line (income) expense |
|
(58 |
) |
|
|
327 |
|
|
|
(95 |
) |
|
|
277 |
|
Stock-based compensation expense |
|
2,565 |
|
|
|
8,093 |
|
|
|
5,043 |
|
|
|
11,292 |
|
Non-cash portion of tax provision |
|
385 |
|
|
|
541 |
|
|
|
30 |
|
|
|
359 |
|
Non-real estate related depreciation and
amortization |
|
2,917 |
|
|
|
3,633 |
|
|
|
5,821 |
|
|
|
7,355 |
|
Amortization of deferred financing costs |
|
1,275 |
|
|
|
1,279 |
|
|
|
2,623 |
|
|
|
2,661 |
|
Loss on extinguishment of debt |
|
71 |
|
|
|
56 |
|
|
|
71 |
|
|
|
3,198 |
|
Capitalized expenditures—maintenance |
|
(11,300 |
) |
|
|
(10,245 |
) |
|
|
(20,678 |
) |
|
|
(16,937 |
) |
Adjustment for unconsolidated affiliates and non-controlling
interest |
|
(213 |
) |
|
|
(170 |
) |
|
|
(390 |
) |
|
|
(266 |
) |
|
|
|
|
|
|
|
|
Adjusted Funds From
Operations |
$ |
136,546 |
|
|
$ |
133,686 |
|
|
$ |
222,975 |
|
|
$ |
226,021 |
|
|
|
|
|
|
|
|
|
Divided by weighted
average diluted common shares outstanding |
|
98,442,860 |
|
|
|
97,731,467 |
|
|
|
98,276,283 |
|
|
|
97,523,379 |
|
Diluted AFFO per
share |
$ |
1.39 |
|
|
$ |
1.37 |
|
|
$ |
2.27 |
|
|
$ |
2.32 |
|
SUPPLEMENTAL SCHEDULES |
UNAUDITED REIT MEASURES |
AND RECONCILIATIONS TO GAAP MEASURES |
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) |
|
Projected
Adjusted Funds From Operations |
|
|
|
|
Year ended December 31, 2017 |
|
|
|
|
Low |
|
High |
|
|
|
|
|
|
|
|
Net income |
|
|
$ |
304,000 |
|
|
$ |
314,000 |
|
|
Depreciation and amortization related to real estate |
|
|
|
192,000 |
|
|
|
192,000 |
|
|
Gain from disposal of real estate assets and investments |
|
|
|
(3,000 |
) |
|
|
(3,000 |
) |
|
Adjustment for unconsolidated affiliates and non-controlling
interest |
|
|
|
700 |
|
|
|
700 |
|
|
Funds From
Operations |
|
|
$ |
493,700 |
|
|
$ |
503,700 |
|
|
|
|
|
|
|
|
|
Straight-line
income |
|
|
|
(500 |
) |
|
|
(500 |
) |
|
Stock-based compensation expense |
|
|
|
12,000 |
|
|
|
12,000 |
|
|
Non-cash portion of tax provision |
|
|
|
(600 |
) |
|
|
(600 |
) |
|
Non-real estate related depreciation and amortization |
|
|
|
14,000 |
|
|
|
14,000 |
|
|
Amortization of deferred financing costs |
|
|
|
5,500 |
|
|
|
5,500 |
|
|
Loss on
extinguishment of debt |
|
|
|
100 |
|
|
|
100 |
|
|
Capitalized expenditures—maintenance |
|
|
|
(41,000 |
) |
|
|
(41,000 |
) |
|
Adjustment for unconsolidated affiliates and non-controlling
interest |
|
|
|
(700 |
) |
|
|
(700 |
) |
|
|
|
|
|
|
|
|
Adjusted Funds
From Operations |
|
|
$ |
482,500 |
|
|
$ |
492,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average diluted shares outstanding |
|
|
|
98,500,000 |
|
|
|
98,500,000 |
|
|
|
|
|
|
|
|
|
Diluted
earnings per share |
|
|
$ |
3.09 |
|
|
$ |
3.19 |
|
|
|
|
|
|
|
|
|
Diluted
AFFO per share |
|
|
$ |
4.90 |
|
|
$ |
5.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
The guidance provided above is based on a number
of assumptions that management believes to be reasonable and
reflect our expectations as of August 2017. Actual results
may differ materially from these estimates as a result of various
factors, and we refer to the cautionary language regarding “forward
looking” statements included in the press release when considering
this information.
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