“Tailwinds are as strong as I’ve ever seen” was how Sean Reilly opened Lamar Advertising’s 4Q 21 earnings release and conference call.  Here are the highlights.

• Revenues increased by 15% to $495 million.  Reilly projects first quarter 2o22 revenue growth to be in the mid-teens and full year 2022 revenue growth to be 7%.
• Operating expense increase by 18% to $264 million.
• Adjusted cashflow (EBIDTA) increased 11% to $231 million.
• Lamar has accelerated the pace of acquisitions.  The company closed 23 acquisitions consisting of 1,200 displays for a total price of $205 million during the fourth quarter.  The company acquired 45 companies and 2,700 displays for a total price of $312 million during the full year 2021.

CEO Sean Reilly on Lamar’s covid rebound 

Recall that when 2021 began, we hoped we could return to 2019 levels of revenue in 2 years. Instead, we did it in one.

Supply chain issues are impacting digital billboards

In a typical year with no supply-chain issues, it takes 2 to 3 weeks to get a digital unit. What we’re seeing now is about double that. But we’re managing it.

But digital billboard conversions will increase

We were hampered last year by production and permitting delays, so we fell short of our target of 300 new units in 2021. We have again set a target of 300 organic developments in 2022, and we’re off to a faster start this year. I’m confident we’ll get there, to the 300 level in 2022

Lamar will make more acquisitions in 2022

…we see a pretty full pipeline this year. It wouldn’t surprise me if we rose to last year’s level of dollar value of acquisition in this year. And last year, we did $312 million.

Billboard Insider’s take:  Lamar recovered faster from covid than OUTFRONT or Clear Channel so the current quarter revenue increase is less.  One worrisome trend in the fourth quarter was that expenses increased faster than revenue, although year end compensation is in that figure.  Lamar closed down 1% on a day when OUTFRONT rose 1%, the S&P 500 rose 2% and Clear Channel Outdoor declined by 6%.

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