Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Lamar Advertising Co. (LAMR - Analyst Report) reported net income of $7.2 million or 8 cents per share in fourth quarter 2012 compared with $6.4 million or 7 cents per share in the year-earlier quarter. Although earnings in the reported quarter increased year over year, it missed the Zacks Consensus Estimate by 3 cents.

For full year 2012, the company reported net income of $9.8 million or 10 cents per share versus $8.6 million or 9 cents per share in the previous year. Earnings for 2012 fell short of the Zacks Consensus Estimate by 4 cents.

Net revenues for the reported quarter increased 6.0% year over year to $305.5 million. This resulted in a considerable rise in operating income (39.2%) in fourth quarter 2012 compared with the year-ago period, despite relatively high operating expenses. For full year 2012, net revenues were $1.2 billion vis-à-vis $1.1 billion in the prior year, while operating income climbed to $217.7 million from $186.4 million in 2011.

Adjusted EBITDA for fourth quarter 2012 were $135.8 million versus $125.8 million in the year-ago quarter. For full year 2012, adjusted EBITDA aggregated $514.4 million compared with $487.1 million in the preceding year.

During the reported quarter, Lamar Advertising acquired the outdoor advertising subsidiary of NextMedia Group Inc., a leading media company, for $145 million in cash. The company funded the acquisition through a debt offering of $535 million of 5% senior subordinated notes due 2023, which resulted in net proceeds of approximately $527 million.

At year-end 2012, Lamar Advertising had a liquidity of $301.2 million, which included $242.3 million availability under its revolving senior credit facility and $58.9 million in cash and cash equivalents. Total debt, including current maturities, was relatively stable at $2.2 billion.

Free cash flow in the reported quarter was $71.9 million compared with $63.9 million in the year-ago quarter. For full year 2012, free cash flow increased 19.0% year over year to $267.5 million.

For the first quarter of 2013, management expects net revenue within the $282-$285 million range. We remain bullish about the long-term prospects of the company.

However, Lamar Advertising should remain wary of stiff competition from other players in the industry such as Clear Channel Outdoor Holdings Inc. (CCO - Snapshot Report), Publicis Groupe SA (PUBGY), and AirMedia Group Inc. . Lamar Advertising currently has a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E HOUSECHINA EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%
INTERNATIONA ICAGY 33.30 +5.38%