Boosted by a strong fourth-quarter—during which the company received a one-time $120.1 million tax benefit as a result of its 2014 conversion to a real estate investment trust, or REIT—Baton Rouge-based Lamar Advertising Co. saw its net income for 2014 skyrocket by 532% to $253.5 million, up from of $40.1 million in 2013.
The conversion to a REIT allows the billboard giant to return cash to shareholders, avoid some federal income taxes and boost the value of its stock. Lamar will be required to distribute annually to its stockholders an amount equal to at least 90% of its REIT taxable income.
Lamar says in its fourth-quarter earnings report, released today, that its net income for the three months that ended Dec. 31, 2014, rose to $207.9 million on the REIT tax benefit. The company reported a net income of $10.2 million for the fourth quarter in 2013.
Lamar says its fourth quarter highlights include 4.4% growth in its digital billing business, as well as 4.2% growth in local billboard sales. Its quarterly dividend is 84 cents per share. See the complete fourth-quarter report.
According to Business Report’s 2015 listing of top 20 public companies (based on 2013 revenue) Lamar ranked No. 8 with revenue of roughly $1.25 billion.
—Steve Sanoski
