Here are 5 things about Lamar which SignValue noticed from reading Lamar’s 2024 10k and comparing it to prior years.
More statics, more digitals.
Static displays grew 2% during 2024 due primarily to acquisitions. Digital displays grew 5% due to digital conversions and acquisitions. Logo and directional signs declined 1%. Transit declined 1%.
Shed the weak performing sites
Lamar isn’t shy about pruning locations during a downturn. Static locations declined 3% during the covid downturn in 2020. Good real estate management means you need to be willing to prune weak locations.
Lamar loves land
Lamar purchased another 150 easements under billboards during 2024. Lamar owns the land under 1 out of 8 billboards. Easements reduce financial risk by creating a permanent reduction in expenses. Easements allow Lamar’s margins to increase as revenues increase. Sean Reilly is on record as saying that Lamar wants whenever possible to own the land under a billboard before it is converted to digital.
Revenues grow, employees don’t.
Revenues grew by 5% in 2024 while employees dropped 1%. Lamar has fewer employees than it did 5 years ago while revenues have grown 25%. What other out of home company can say that? A tuck-in acquisition strategy means you add the ad contracts, billboards and leases but not people.
Capexp down in 2024 but will grow in 2025
Lamar cut capital spending and acquisitions in 2024 in order to pay down a term loan. Capital spending and acquisitions declined from $317 million in 2023 to $170 million in 2024 – a level not seen since the covid year of 2020. Lamar has turned on the spending spigot in 2025. The company expects to spend $345 million on capexp and acquisitions in 2025 in line with the $336 million average capital spend for the past five years.
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