Lamar’s announced second quarter 2016 financials which slightly beat expectations.  You can read the company’s press release here and the Seeking Alpha earnings call transcript here.

• Net revenue increased by 13% to $387 million in second quarter due to the Clear Channel Outdoor asset acquisitions.  Acquisition-adjusted net revenue increased by 3.5% which puts Lamar behind acquisition adjusted revenue increases of 4.6% for Clear Channel and 4.3% for Outfront during the second quarter of 2016.   Lamar’s acquisition adjusted digital revenue increased 5% in the second quarter of 2016 versus 3% for the first quarter of 2016.  Insider infers from this that Lamar’s static revenues have been weak.

• Cashflow (EBIDTA) increased 14% to $176 million in the second quarter of 2016.  Acquisition adjusted cashflow increased by 6%.  This suggests Lamar has doing a good job managing expenses because all of the impact of increased revenues is making it through to cashflow.

• Lamar had 2,510 digital units at June 30, 2016.  The company added 239 new digital units during the first 6 months of 2016 via the Clear Channel Outdoor acquisition (171 units) and new builds (68 units).

• The West Coast was Lamar’s strongest market, followed (in order of strength) by the Gulf Coast, the Mid-Atlantic, the Midwest and the Southwest.  The southwest was essentially flat due to oil patch weakness.

• Debt totaled $2.4 billion at June 30, 2016.  Lamar’s Debt/Cashflow was a reasonable 3.39 compared to Debt/Cashflow of 4.47 for Outfront and 7.60 for Clear Channel.

Insider’s take:  Not sure why Lamar’s acquisition adjusted revenues are growing slower than Outfront and Clear Channel.  Maybe Lamar has more oil patch billboards.  Lamar’s Southwest division which includes oil dependent areas had revenue growth of only 0.1% during the second quarter of 2016.

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