Lamar Advertising Posts Upbeat Q1 Earnings

reported better-than-expected earnings for the first quarter on Wednesday. The Baton Rouge, Louisiana-based company reported a quarterly profit of $40.7 million, or $0.42 per share, versus a year-ago loss of $4.8 million, or $0.05 per share. Funds from operations climbed to $84.6 million, versus $60.4 million in the year-ago period. Adjusted FFO rose to $0.82 per share from $0.62 per share, versus analysts' estimates of $0.75 per share. Its revenue climbed 6.2 percent to $302.5 million. However, analysts were expecting a profit of $0.29 per share on revenue of $294.6 million. Local billboard revenue gained 6.7 percent, while national billboard revenue rose 2.5 percent. Operating income surged to $67.3 million for the first quarter, from $31.1 million in the year-ago quarter. Adjusted EBITDA rose to $118.5 million from $104.4 million. "We are encouraged by our first quarter results, which have us tracking to the high end of our previously provided full-year goals for sales and AFFO," said Lamar chief executive, Sean Reilly. "We were able to build on the sales momentum we saw at the end of 2014 while limiting expense growth. In particular, I am pleased by the continued growth in our local billboard sales." Lamar Advertising shares closed at $57.41 yesterday.