Baton Rouge-based Lamar Advertising Co. saw its net revenues rise 4.2% in the second quarter to $344.2 million, up from $330.4 million for the April-to-June period last year, according to its quarterly report released today.
And due to what Lamar CEO Sean Reilly refers to in a prepared statement accompanying the report as “continued discipline on operating expenses,” Lamar’s net income skyrocketed by 285% to $59.4 million in the second quarter. The company posted net income of $15.4 million during the quarter last year.
“This in turn contributed to a strong (Funds From Operations) and (Adjusted Funds From Operations) growth for the quarter,” says Reilly in the statement.
FFO and AFFO are measures that indicate a Real Estate Investment Trust’s financial ability to pay dividends to shareholders. Lamar converted to a REIT last year, allowing the billboard giant to return cash to shareholders, avoid some federal income taxes and boost the value of its stock. Lamar is required to distribute annually to its stockholders an amount equal to at least 90% of its REIT taxable income.
For the second quarter, Lamar’s FFO increased by 27.4% to $104.4 million, up from $82 million during the quarter last year. The company’s AFFO, meanwhile, rose by 14.7% to $118 million, up from $102.9 million last year.
Diluted AFFO per share was $1.22 during the second quarter. It was $1.08 per share during the quarter last year.
See the complete second quarter report from Lamar.
—Steve Sanoski
