• Lamar revenues up 3% for 3rd quarter 2017.

    Here are the highlights from Lamar’s 3rd quarter 2017 earnings release and the Seeking Alpha earnings call transcript.

    • Revenues increased 3.1% to $399 million due to the impact of acquisitions.  Organic revenues grew 1%.  National revenues were up 4.5%.  Local revenues were flat.  CEO Sean Reilly pointed out on the call that the political cycle was contributed to slow local growth.  When adjusted for political, revenues would have been up 2% during the third quarter.  Sales are 76% local, 24% national.


    • Cashflow increased 3.1% to $183 million.  Steen (Philadelphia) was the large market acquisition.  The rest of the acquisitions were in smaller and rural markets.


    • Lamar closed 13 fill in acquisitions at a purchase price of $92 million during the third quarter.


    • The Lamar plant had $3-4 million in Puerto Rico hurricane damage.  This is a small figure compared to the firm’s $41 million an annual maintenance capexp.   The Puerto Rico plant, however, was generating $10 million/year in revenue.  Lamar will present 4th quarter financials financials with and without Puerto Rico because the company anticipates very little revenue from Puerto Rico during the fourth quarter.


    • CEO Sean Reilly was optimistic about 2018: “Political will no longer be a headwind. It will be a tailwind…I feel like we’re teed it up for a good year in 2018.”


    • Reilly had this to say on the firm’s best and worst markets.  “It’s a little wider gap than we’re used to seeing.  The best performing markets are the coasts…the Gulf Coast and the West Coast…where we’re seeing a little weakness is in large markets like New York and Chicago…”


    • Reilly says Lamar will probably remain a REIT if the pending tax plan passes: “We are being told…that as currently drafted REITs would be flow through entities for personal income.  If you look at it from that point of view there are terrific advantages to remaining a REIT”


    • The market was pleased with the report.  Lamar closed the day up 7.1% to $74.91.  At right you can see the trading pattern for Lamar for the past month.



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