Lamar Advertising Company (LAMR) reported impressive first-quarter 2024 results, outperforming market expectations. The company's strong performance was driven by robust local sales and digital growth, contributing to higher revenues and adjusted funds from operations (AFFO) per share.

Q1 2024 Performance Highlights Lamar Advertising's AFFO per share for the first quarter stood at $1.54, surpassing the Zacks Consensus Estimate of $1.52. This figure also represents a year-over-year improvement compared to the prior-year quarter's AFFO per share of $1.41. Despite facing higher interest expenses, the company's quarterly net revenues reached $498.2 million, marking a 5.7% increase compared to the same period last year and exceeding the consensus estimate of $488.8 million.

Strong Local Sales and Digital Growth According to Sean Reilly, Lamar Advertising's CEO, the first-quarter results exceeded internal expectations, driven by strong local sales and a return to same-store growth in the digital segment. The company expressed optimism about the rest of 2024 and has raised its guidance for full-year diluted AFFO to a range of $7.75 to $7.90 per share.

Financial Highlights Operating income for the quarter stood at $124.6 million, reflecting a 4.9% increase from the year-ago period's $118.8 million. Additionally, the adjusted EBITDA grew by 7.1% to $211.9 million. Acquisition-adjusted net revenues for the first quarter climbed 5.3% year over year, while acquisition-adjusted EBITDA rose by 6.5%. However, interest expenses increased by 7.3% year over year to $44.5 million during the reported quarter. The company's free cash flow of $138.7 million marked a 22.4% year-over-year increase in the quarter.

Balance Sheet and Liquidity As of March 31, 2024, Lamar Advertising had a total liquidity of $634.8 million, comprising $598.4 million available for borrowing under its revolving senior credit facility and $36.4 million in cash and cash equivalents. The outstanding balance under the company's revolving credit facility totaled $143 million, and $235.7 million under the Accounts Receivable Securitization Program.

Conclusion Lamar Advertising Company's strong first-quarter 2024 performance, driven by robust local sales and digital growth, positions it well for the remainder of the year. Despite facing higher interest expenses, the company managed to increase its net revenues and AFFO per share, outperforming market expectations. With a healthy balance sheet and liquidity position, Lamar Advertising is well-positioned to navigate future challenges and capitalize on growth opportunities in the advertising industry.