• Lamar revenues and cashflow up 5% in 3Q 2018

    Lamar revenues and cashflow grew 5% each during the third quarter of 2018.  Here are the results of the 3Q 2018 earnings release and earnings call transcript.

    • Revenue increased 5% to $419 million.  Acquisition adjusted revenue increased by 3.1%.  Reilly was upbeat that growth will continue into the fourth quarter:” We are happy with the revenue growth that we did see in the third quarter.  Our pacings 4Q will be up 5% a number helped by political.”
    • Expenses grew 3% for the quarter which is higher than normal.  Lamar CFO Keith Istre said this: “3% is not our typical quarterly expense growth.  It’s typically 1-2%.  A couple things accounted for the uptick…organic expense growth was flat in Q3 last year so our comps are tough…our sales commission expense for Lamar’s management will be significantly higher than last year for management exceeding their goals…”
    • Cashflow increased 5% to $193 million.  Acquisition adjusted cashflow increased by 3%.
    • Capital expenditures totaled $30 million in the third quarter of 2018.  The company added an additional 129 digital billboards during the third quarter.
    • At September 31, 2018 Lamar had $2.5 billion of debt.  Debt/Cashflow was a moderate 3.29 which leaves plenty of debt capacity for acquisitions.

    Insider’s take: Lamar slightly missed revenue expectations and expenses were high for the quarter.  Lamar is usually able to keep expense growth to half of revenue growth. Lamar stock closed  down 6% to $74.54 for the day.

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