How would you like to operate a non-cyclical, high-margin, monopoly with legal barriers to entry?  That’s Lamar Advertising’s highway logo business.  It goes by the name of Interstate Logos LLC.   Lamar entered the business in 1988 and is the largest provider of logo sign services in the US.

• Logos signs are standardized signs within the freeway right of way calling attention to restaurants, gas stations, hotels and tourist sites.
• Lamar operates 23 of the 26 privatized state logo plants as well as tourism oriented signs in the right of way for 14 states and Ontario.
• Lamar silkscreens the displays in Baton Rouge and has a display construction company in Atlanta.  A typical state contract runs for 5-10 years.

Here are the financial details of the logo and tourism sign business pulled from Lamar’s 10k.  Logo signs generated $83 million revenue in 2020 in line with Lamar’s transit business.   Lamar’s logo and tourism displays dropped 15% in 2020 due to the loss of the Virginia state logo and tourism contracts.  The logo business, however, only declined by a slight 1.5% despite covid.   Average monthly revenue per display was $45 during 2020.  Probably a rounding error for cash strapped businesses in the midst of covid which explains why revenues didn’t drop much.

Lamar Advertising Logo and Tourism Display Business

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