Lamar Advertising Company recently released its 10-Q report, providing a detailed overview of its financial performance for the first three months of 2024. Lamar operates as an outdoor advertising company in the United States and Canada, owning and operating billboards, logo signs, and transit advertising displays, among other advertising spaces. The company's net revenues primarily come from the rental of advertising space on outdoor displays, with revenue growth influenced by factors such as increasing occupancy of existing displays, raising advertising rates, and acquiring new advertising displays.
During the first quarter of 2024, Lamar completed multiple acquisitions for a total cash purchase price of approximately $18.3 million. The company's capital expenditures for the same period totaled $29.5 million, with the majority allocated to digital billboards and traditional billboards. Lamar also evaluates and pursues strategic acquisition opportunities as they arise, intending to finance future acquisition activities from available cash, borrowings under its senior credit facility, or the issuance of debt or equity securities.
The 10-Q report also included discussions regarding non-GAAP financial measures, including adjusted EBITDA, Funds From Operations (FFO), Adjusted Funds From Operations (AFFO), and acquisition-adjusted net revenue. Lamar's management considers these measures to be meaningful supplemental indicators of the company's operating performance.
In terms of financial results, Lamar reported a 5.7% increase in net revenues to $498.2 million for the first quarter of 2024 compared to the same period in 2023. The company's operating income increased by $5.8 million to $124.6 million for the first quarter of 2024, primarily driven by an increase in billboard and transit net revenues. However, total operating expenses, excluding depreciation and amortization and gain on disposition of assets, increased by 6.5% to $300.5 million for the same period.
Lamar's adjusted EBITDA for the first quarter of 2024 increased by 7.1% to $211.9 million, primarily attributed to an increase in gross margin offset by an increase in general and administrative expenses. Additionally, the company's FFO and AFFO for the same period increased by 3.5% and 9.8% respectively, compared to the first quarter of 2023.
The report also addressed the company's liquidity and capital resources, highlighting its historical ability to satisfy working capital requirements with cash from operations and borrowings under the senior credit facility. Lamar Media Corp., the company's wholly-owned subsidiary, serves as the borrower under the senior credit facility and manages all corporate operating cash.
The market has reacted to these announcements by moving the company's shares 1.3% to a price of $119.03. For the full picture, make sure to review Lamar Advertising's 10-Q report.
