Lamar Advertising Co. (LAMR) reported strong second quarter 2013 results with net income of $21.3 million or 22 cents per share compared with $13.9 million or 15 cents per share in the year-earlier quarter. The healthy year-over-year increase in earnings is primarily attributable to a decent top-line improvement. The reported earnings marginally beat the Zacks Consensus Estimate by a penny.
Net revenue for the reported quarter increased 6.5% year over year to $324.7 million. Operating income improved to $70.3 million from $64.5 million in the year-ago quarter despite a significant year-over-year increase in operating expenses from $240.4 million to $254.4 million in the reported quarter.
Adjusted EBITDA for second quarter 2013 was $148.4 million versus $138.2 million in the year-ago quarter.
At quarter-end, Lamar Advertising had 1785 digital advertisements in the air, of which 992 were bulletins and 793 were posters. During the quarter, the company added 42 digital advertisements that included 20 posters and 22 bulletins, and expects to bring the tally for new additions to about 130 to 140 by the end of 2013.
Lamar Advertising had a liquidity of $361.9 million, of which $243.0 million was available under its revolving senior credit facility and $118.9 million in cash and cash equivalents. Total debt, including current maturities, was relatively stable at $2.1 billion.
Free cash flow in the reported quarter was $86.7 million compared with $73.7 million in the year-ago quarter.
For the third quarter of 2013, management expects net revenue within the range of $320 million to $323 million.
Lamar Advertising has a Zacks Rank #3 (Hold). Other players in the industry worth mentioning include MDC Partners Inc. (MDCA), Publicis Groupe SA (PUBGY) and ABM Industries Incorporated (ABM), each carrying a Zacks Rank #2 (Buy).
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