Lamar integrating Clear Channel Plant

lamar logoLamar announced First quarter 2016 financials.  You can also read a copy of the Seeking Alpha conference call transcript here.  Here are the highlights from the earnings release and conference call.

  • Total Revenue increased by 12% to $338 million during the first quarter of 2016.  Lamar CEO Sean Reilly said on the conference call that the integration of the Clear Channel outdoor markets is ahead of plan and performance is exceeding expectation.
  • Proforma revenue (adjusting for the Clear Channel Outdoor acquisitions) was up 2.6%.
  • Same unit digital revenue was up 3.4%.
  • Adjusted Cashflow increased by 10% to $130 million.
  • Capital expenditures totaled $21 million for the quarter, including outlays for static billboards ($7 million) and digital signs ($6.5 million).  Lamar ended the year with 2,488 digital signs.  During the quarter it added 171 Clear Channel units as well as 33 new builds.  Insider’s computes Lamar’s cost per digital billboard at $196,969 if you take $6.5 million divided against 33 new digital signs.
  • Lamar expect to add 150 new digital signs during the rest of 2016.
  • Lamar had $80,000 in buys through its automated buying platform during the quarter.

Insider’s take: The Clear Channel integration is going well.  $80,000 in programmatic buys is tiny compared to $338 million in quarterly revenue.  Programmatic buying has a ways to go.

 

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