• Sean Reilly: “The setup for 2020 looks good.”

    Sean Reilly, CEO, Lamar Advertising

    Lamar CEO Sean Reilly and CFO Jay Johnson had optimistic things to say on this week’s earnings call.

    Sean Reilly on the positive outlook for 2020

    I believe the set up for 2020 looks good. Number one, political, which was a slight headwind this year, will be a tailwind next year; and number two; we anticipate that acceleration in our programmatic channel will provide an additional tailwind.

    Reilly on new acquisitions

    In terms of acquisitions, year-to-date we’ve closed about $215 million in acquisitions. We’ve got another $20 million to $25 million or so in the queue that we’ll close by year end. So we’ll end the year at roughly $235 million to $240 million in total acquisitions for 2019.

    Jay Johnson, CFO, Lamar Advertising

    Reilly on Digital billboard growth

    We ended Q3 with 3,485 units in the air; that includes a number by acquisition. We’ll end up the year at approximately 350 new digitals added to our platform, 200 of those approximately will be ones we put up on our own organically, and about 125 will have been added by acquisition.  Same-board digital performance continues to shine; it’s up 6.9%, so we’re pleased to see that number.

    New Lamar CFO Jay Johnson on Lamar’s healthy balance sheet.

    Our financial position remains strong as Lamar enjoys excellent access to capital, in both the debt and equity markets. The company ended the quarter with total leverage of 3.66x net debt-to-EBITDA as defined under the senior credit facility.  Furthermore, we had approximately $345 million of liquidity, comprised of $322 million available under our revolving credit facility and $23 million of cash-on-hand. In addition, the company has a well laddered debt maturity schedule, with no maturities until December of 2021.

    Insider’s take:  Expect to see more acquisitions from Lamar which has moderate leverage $322 million in credit line availability and the ability to issue new equity to support acquisitions.

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