Lamar Advertising Co (LAMR) Reports 2.9% Increase in Q3 Net Revenue
Net revenue for Q3 2023 was $542.6 million, a 2.9% increase from Q3 2022.
Net income for the same period was $140.4 million, a decrease from $146.2 million in Q3 2022.
Adjusted EBITDA increased by 5.8% to $265.7 million.
Net revenue for the first nine months of 2023 was $1.56 billion, a 3.9% increase from the same period in 2022.
On November 2, 2023, Lamar Advertising Co (NASDAQ:LAMR) announced its operating results for the third quarter ended September 30, 2023. The company reported a 2.9% increase in net revenue, reaching $542.6 million, compared to $527.4 million in Q3 2022. Despite this increase in revenue, net income decreased slightly to $140.4 million from $146.2 million in the same period last year. The decrease in net income was primarily due to an increase in interest expense of $11.5 million over the same period in 2022.
Financial Highlights
Adjusted EBITDA for Q3 2023 was $265.7 million, a 5.8% increase from $251.2 million in Q3 2022. Cash flow provided by operating activities was $222.5 million, a decrease of $1.9 million from Q3 2022. Free cash flow for Q3 2023 was $181.0 million, a 2.9% increase from the same period in 2022.
For the first nine months of 2023, Lamar reported net revenues of $1.56 billion, a 3.9% increase from the same period in 2022. However, net income for the nine months ended September 30, 2023 decreased by $25.0 million to $347.5 million, primarily due to an increase in interest expense of $40.3 million over the same period in 2022.
Company's Performance and Future Outlook
Lamar's CEO, Sean Reilly, commented on the company's performance, stating,
In the third quarter, we demonstrated impressive operating leverage, increasing revenue while decreasing expenses on a year-over-year, acquisition-adjusted basis. The broader advertising environment remains challenging. Nevertheless, based on current bookings, we are pacing to reach or even slightly exceed the upper end of our revised guidance for full-year diluted AFFO per share.
As of September 30, 2023, Lamar had $645.7 million in total liquidity, consisting of $606.3 million available for borrowing under its revolving senior credit facility and $39.4 million in cash and cash equivalents.
Important Financial Tables
The company's balance sheet as of September 30, 2023, showed total assets of $6.57 billion, total debt of $3.40 billion, and total stockholders equity of $1.19 billion. The cash flow statement for the nine months ended September 30, 2023, showed cash flows provided by operating activities of $529.4 million, cash flows used in investing activities of $245.9 million, and cash flows used in financing activities of $296.7 million.
These results reflect Lamar Advertising Co (NASDAQ:LAMR)'s resilience in a challenging advertising environment and its ability to maintain a strong financial position. The company's focus on improving operating leverage and managing expenses has contributed to its financial performance in Q3 2023.
Explore the complete 8-K earnings release (here) from Lamar Advertising Co for further details.
This article first appeared on GuruFocus.
