Baton Rouge-based Lamar Advertising Co. posted strong earnings in the first three months of 2016, reporting net income of $51.3 million, or 53 cents per diluted share, compared to the $40.7 million, or 42 cents per diluted share, for the same period in 2015.
According to its first quarter report, the outdoor billboard company’s net revenues increased 11.9% to $338.5 million, up from $302.5 million for the same period last year.
Adjusted funds from operations, a measure of a real estate company’s cash flow related to operations, shot up 17.1% to $92.3 million compared to $78.9 million for the same period in 2015.
Diluted AFFO per share increased 15.9% to 95 cents per share for the three months of this year, the earnings report says. Lamar beat analysts’ forecasts that it would post earnings of 87 cents per share.
“We are pleased with the strength of our core business, particularly on the local sales side, and our continued discipline on expenses,” says Lamar CEO Sean Reilly in a preapred statement. “Consequently, we continue to track toward the upper end of our full year AFFO guidance. Meanwhile, our integration of the assets we acquired from Clear Channel is proceeding to plan.”
In January, Lamar acquired assets from Clear Channel Outdoor Holdings Inc. in five U.S. markets for $485.5 million. The deal included 132 digital billboards in Cleveland, Des Moines, Iowa; Reno, Nevada; Seattle and Memphis. Reilly says the markets have proven to be a good fit for the company.
—Alexandria Burris
