0001193125-13-430534.txt : 20131107 0001193125-13-430534.hdr.sgml : 20131107 20131106180019 ACCESSION NUMBER: 0001193125-13-430534 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 12 CONFORMED PERIOD OF REPORT: 20130930 FILED AS OF DATE: 20131107 DATE AS OF CHANGE: 20131106 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LAMAR ADVERTISING CO/NEW CENTRAL INDEX KEY: 0001090425 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-ADVERTISING AGENCIES [7311] IRS NUMBER: 721449411 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-30242 FILM NUMBER: 131197718 BUSINESS ADDRESS: STREET 1: C/O LAMAR ADVERTISING COMPANY STREET 2: 5321 CORPORATE BOULEVARD CITY: BATON ROUGE STATE: LA ZIP: 70808 BUSINESS PHONE: 2259261000 MAIL ADDRESS: STREET 1: C/O LAMAR ADVERTISING COMPANY STREET 2: 5321 CORPORATE BOULEVARD CITY: BATON ROUGE STATE: LA ZIP: 70808 FORMER COMPANY: FORMER CONFORMED NAME: LAMAR NEW HOLDING CO DATE OF NAME CHANGE: 19990716 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LAMAR MEDIA CORP/DE CENTRAL INDEX KEY: 0000899045 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-ADVERTISING AGENCIES [7311] IRS NUMBER: 721205791 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-12407 FILM NUMBER: 131197719 BUSINESS ADDRESS: STREET 1: 5321 CORPORATE BOULEVARD CITY: BATON ROUGE STATE: LA ZIP: 70808 BUSINESS PHONE: 5049261000 MAIL ADDRESS: STREET 1: 5321 CORPORATE BOULEVARD CITY: BATON ROUGE STATE: LA ZIP: 70808 FORMER COMPANY: FORMER CONFORMED NAME: LAMAR ADVERTISING CO /DE/ DATE OF NAME CHANGE: 19990714 FORMER COMPANY: FORMER CONFORMED NAME: LAMAR MEDIA CORP DATE OF NAME CHANGE: 19990713 FORMER COMPANY: FORMER CONFORMED NAME: LAMAR ADVERTISING CO DATE OF NAME CHANGE: 19930319 10-Q 1 d599934d10q.htm FORM 10-Q Form 10-Q
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q

 

 

 

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2013

or

 

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                      to                     

Commission File Number 0-30242

 

 

Lamar Advertising Company

 

 

Commission File Number 1-12407

 

 

Lamar Media Corp.

(Exact name of registrants as specified in their charters)

 

 

 

Delaware   72-1449411
Delaware   72-1205791

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

5321 Corporate Blvd., Baton Rouge, LA   70808
(Address of principal executive offices)   (Zip Code)

Registrants’ telephone number, including area code: (225) 926-1000

 

 

Indicate by check mark whether each registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether each registrant has submitted electronically and posted on their corporate web sites, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether Lamar Advertising Company is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer   x    Accelerated filer   ¨
Non-accelerated filer   ¨  (Do not check if a smaller reporting company)    Smaller reporting company   ¨

Indicate by check mark whether Lamar Media Corp. is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer   ¨    Accelerated filer   ¨
Non-accelerated filer   x  (Do not check if a smaller reporting company)    Smaller reporting company   ¨

Indicate by check mark whether Lamar Advertising Company is a shell company (as defined in Rule 12b-2 of the Exchange Act):    Yes  ¨    No  x

Indicate by check mark whether Lamar Media Corp. is a shell company (as defined in Rule 12b-2 of the Exchange Act):    Yes  ¨    No  x

The number of shares of Lamar Advertising Company’s Class A common stock outstanding as of October 31, 2013: 80,028,599

The number of shares of the Lamar Advertising Company’s Class B common stock outstanding as of October 31, 2013: 14,610,365

The number of shares of Lamar Media Corp. common stock outstanding as of October 31, 2013: 100

This combined Form 10-Q is separately filed by (i) Lamar Advertising Company and (ii) Lamar Media Corp. (which is a wholly owned subsidiary of Lamar Advertising Company). Lamar Media Corp. meets the conditions set forth in general instruction H(1) (a) and (b) of Form 10-Q and is, therefore, filing this form with the reduced disclosure format permitted by such instruction.

 

 

 


Table of Contents

NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information included in this report is forward-looking in nature within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. This report uses terminology such as “anticipates,” “believes,” “plans,” “expects,” “future,” “intends,” “may,” “will,” “should,” “estimates,” “predicts,” “potential,” “continue” and similar expressions to identify forward-looking statements. Examples of forward-looking statements in this report include statements about:

 

    Lamar Advertising Company’s (the “Company” or “Lamar”) future financial performance and condition;

 

    the Company’s business plans, objectives, prospects, growth and operating strategies;

 

    the Company’s consideration of an election to real estate investment trust (REIT) status and its ability to complete the conversion effective for the taxable year beginning January 1, 2014;

 

    the Company’s ability to refinance outstanding indebtedness, including the planned redemption of Lamar Media Corp.’s 9 3/4% Senior Notes due 2014;

 

    the Company’s anticipated capital expenditures and level of acquisition activity;

 

    market opportunities and the Company’s competitive positions;

 

    the Company’s future cash flows and expected cash requirements; and

 

    the market price of the Company’s Class A common stock.

Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors, including but not limited to the following, any of which may cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements:

 

    current economic conditions and their effect on the markets in which the Company operates;

 

    the levels of expenditures on advertising in general and outdoor advertising in particular;

 

    risks and uncertainties relating to the Company’s significant indebtedness;

 

    the demand for outdoor advertising;

 

    the Company’s need for, and ability to obtain, additional funding for acquisitions and operations;

 

    the Company’s ability to qualify for REIT status;

 

    changes in tax laws applicable to REIT’s or in the interpretation of those laws;

 

    increased competition within the outdoor advertising industry;

 

    the regulation of the outdoor advertising industry by federal, state and local governments;

 

    the Company’s ability to renew expiring contracts at favorable rates;

 

    the Company’s ability to successfully implement its digital deployment strategy;

 

    the integration of any businesses that the Company may acquire and its ability to recognize cost savings and operating efficiencies as a result of these acquisitions; and

 

    changes in accounting principles, policies or guidelines.

The forward-looking statements in this report are based on the Company’s current good faith beliefs; however, actual results may differ due to inaccurate assumptions, the factors listed above or other foreseeable or unforeseeable factors. Consequently, the Company cannot guarantee that any of the forward-looking statements will prove to be accurate. The forward-looking statements in this report speak only as of the date of this report, and Lamar Advertising Company and Lamar Media Corp. (“Lamar Media”) expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained in this report, except as required by law.

For a further description of these and other risks and uncertainties, the Company encourages you to read carefully Item 1A to the combined Annual Report on Form 10-K for the year ended December 31, 2012 of the Company and Lamar Media (the “2012 Combined Form 10-K”), filed on February 28, 2013 as such risk factors as updated or supplemented, from time to time, in our combined Quarterly Reports on Form 10-Q.

 

2


Table of Contents

CONTENTS

 

     Page  

PART I — FINANCIAL INFORMATION

  

ITEM 1. FINANCIAL STATEMENTS

  

Lamar Advertising Company

  

Condensed Consolidated Balance Sheets as of September 30, 2013 and December 31, 2012

     4   

Condensed Consolidated Statements of Operations and Comprehensive Income for the three months and nine months ended September 30, 2013 and 2012

     5   

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2013 and 2012

     6   

Notes to Condensed Consolidated Financial Statements

     7-12   

Lamar Media Corp.

  

Condensed Consolidated Balance Sheets as of September 30, 2013 and December 31, 2012

     13   

Condensed Consolidated Statements of Operations and Comprehensive Income for the three months and nine months ended September 30, 2013 and 2012

     14   

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2013 and 2012

     15   

Note to Condensed Consolidated Financial Statements

     16   

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

     17-24   

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk

     24   

ITEM 4. Controls and Procedures

     24   

PART II — OTHER INFORMATION

  

ITEM 6. Exhibits

     25   

 

3


Table of Contents

PART I — FINANCIAL INFORMATION

ITEM 1. — FINANCIAL STATEMENTS

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

 

     September 30,
2013
    December 31,
2012
 
     (Unaudited)        

ASSETS

    

Cash and cash equivalents

   $ 182,665      $ 58,911   

Receivables, net of allowance for doubtful accounts of $9,000 and $7,615 in 2013 and 2012, respectively

     179,434        159,829   

Prepaid expenses

     60,133        41,132   

Deferred income tax assets

     11,060        10,817   

Other current assets

     28,390        30,546   
  

 

 

   

 

 

 

Total current assets

     461,682        301,235   
  

 

 

   

 

 

 

Property, plant and equipment

     3,009,498        2,940,449   

Less accumulated depreciation and amortization

     (1,866,423     (1,760,090
  

 

 

   

 

 

 

Net property, plant and equipment

     1,143,075        1,180,359   
  

 

 

   

 

 

 

Goodwill

     1,502,400        1,485,150   

Intangible assets

     441,767        468,312   

Deferred financing costs, net of accumulated amortization of $30,892 and $25,867 in 2013 and 2012, respectively

     32,850        37,787   

Other assets

     43,648        41,187   
  

 

 

   

 

 

 

Total assets

   $ 3,625,422      $ 3,514,030   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Trade accounts payable

   $ 16,111      $ 13,539   

Current maturities of long-term debt

     393,834        33,134   

Accrued expenses

     125,206        99,461   

Deferred income

     63,504        51,323   
  

 

 

   

 

 

 

Total current liabilities

     598,655        197,457   
  

 

 

   

 

 

 

Long-term debt

     1,748,980        2,127,720   

Deferred income tax liabilities

     126,253        107,973   

Asset retirement obligation

     197,934        189,659   

Other liabilities

     20,109        16,388   
  

 

 

   

 

 

 

Total liabilities

     2,691,931        2,639,197   
  

 

 

   

 

 

 

Stockholders’ equity:

    

Series AA preferred stock, par value $.001, $63.80 cumulative dividends, authorized 5,720 shares; 5,720 shares issued and outstanding at 2013 and 2012

     —         —    

Class A preferred stock, par value $638, $63.80 cumulative dividends, 10,000 shares authorized; 0 shares issued and outstanding at 2013 and 2012

     —         —    

Class A common stock, par value $.001, 175,000,000 shares authorized, 97,245,234 and 96,082,868 shares issued at 2013 and 2012, respectively; 80,028,599 and 78,963,663 issued and outstanding at 2013 and 2012, respectively

     97        96   

Class B common stock, par value $.001, 37,500,000 shares authorized, 14,610,365 and 14,910,365 shares issued and outstanding at 2013 and 2012, respectively

     15        15   

Additional paid-in capital

     2,463,129        2,432,518   

Accumulated comprehensive income

     4,973        5,978   

Accumulated deficit

     (640,891     (674,143

Cost of shares held in treasury, 17,216,635 and 17,119,205 shares in 2013 and 2012, respectively

     (893,832     (889,631
  

 

 

   

 

 

 

Stockholders’ equity

     933,491        874,833   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 3,625,422      $ 3,514,030   
  

 

 

   

 

 

 

See accompanying notes to condensed consolidated financial statements.

 

4


Table of Contents

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

(In thousands, except share and per share data)

 

     Three months ended
September 30,
    Nine months ended
September 30,
 
     2013     2012     2013     2012  

Net revenues

   $ 323,184      $ 306,286      $ 931,347      $ 877,396   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses (income)

        

Direct advertising expenses (exclusive of depreciation and amortization)

     109,640        103,845        326,882        312,339   

General and administrative expenses (exclusive of depreciation and amortization)

     57,033        52,153        176,158        157,275   

Corporate expenses (exclusive of depreciation and amortization)

     14,843        13,590        45,451        40,036   

Depreciation and amortization

     73,183        73,915        219,492        219,283   

Gain on disposition of assets

     (787     (739     (2,094     (5,309
  

 

 

   

 

 

   

 

 

   

 

 

 
     253,912        242,764        765,889        723,624   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     69,272        63,522        165,458        153,772   

Other expense (income)

        

Loss on extinguishment of debt

     —          1,984        —          31,956   

Interest income

     (42     (147     (121     (270

Interest expense

     37,677        38,534        112,264        117,081   
  

 

 

   

 

 

   

 

 

   

 

 

 
     37,635        40,371        112,143        148,767   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income tax expense

     31,637        23,151        53,315        5,005   

Income tax expense

     13,297        11,655        19,790        2,403   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     18,340        11,496        33,525        2,602   

Preferred stock dividends

     91        91        273        273   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income applicable to common stock

   $ 18,249      $ 11,405      $ 33,252      $ 2,329   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

        

Basic earnings per share

   $ 0.19      $ 0.12      $ 0.35      $ 0.02   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share

   $ 0.19      $ 0.12      $ 0.35      $ 0.02   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares used in computing earnings per share:

        

Weighted average common shares outstanding

     94,528,877        93,423,063        94,282,629        93,265,621   

Incremental common shares from dilutive stock options

     398,192        306,449        409,500        285,270   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares diluted

     94,927,069        93,729,512        94,692,129        93,550,891   
  

 

 

   

 

 

   

 

 

   

 

 

 

Statement of Comprehensive Income

        

Net income

   $ 18,340      $ 11,496      $ 33,525      $ 2,602   

Other comprehensive income (loss), net of tax

        

Foreign currency translation adjustments

     534        1,152        (1,005     1,048   
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

   $ 18,874      $ 12,648      $ 32,520      $ 3,650   
  

 

 

   

 

 

   

 

 

   

 

 

 

See accompanying notes to condensed consolidated financial statements.

 

5


Table of Contents

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

 

     Nine months ended
September 30,
 
     2013     2012  

Cash flows from operating activities:

    

Net income

   $ 33,525      $ 2,602   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     219,492        219,283   

Non-cash equity based compensation

     23,107        10,902   

Amortization included in interest expense

     11,354        13,101   

Gain on disposition of assets

     (2,094     (5,309

Loss on extinguishment of debt

     —          31,956   

Deferred tax expense

     17,037        1,099   

Provision for doubtful accounts

     4,949        4,308   

Changes in operating assets and liabilities:

    

(Increase) decrease in:

    

Receivables

     (22,485     (20,674

Prepaid expenses

     (17,852     (14,325

Other assets

     1,204        (1,048

Increase (decrease) in:

    

Trade accounts payable

     2,236        8   

Accrued expenses

     18,116        4,312   

Other liabilities

     6,095        7,134   
  

 

 

   

 

 

 

Net cash provided by operating activities

     294,684        253,349   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Acquisitions

     (83,776     (54,738

Capital expenditures

     (77,677     (77,747

Proceeds from disposition of assets

     4,771        5,023   

(Increase) decrease in notes receivable

     (361     118   
  

 

 

   

 

 

 

Net cash used in investing activities

     (157,043     (127,344
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Debt issuance costs

     (90     (14,328

Cash used for purchase of treasury stock

     (4,200     (1,113

Net proceeds from issuance of common stock

     15,711        9,809   

Net proceeds received under revolving credit facility

     —          15,000   

Principal payments on long term debt

     (24,441     (8,381

Proceeds received from note offering

     —          500,000   

Payment on senior subordinated notes

     —          (722,296

Proceeds received from senior credit facility term loan

     —          100,000   

Dividends

     (273     (273
  

 

 

   

 

 

 

Net cash used in financing activities

     (13,293     (121,582
  

 

 

   

 

 

 

Effect of exchange rate changes in cash and cash equivalents

     (594     522   

Net increase in cash and cash equivalents

     123,754        4,945   

Cash and cash equivalents at beginning of period

     58,911        33,503   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 182,665      $ 38,448   
  

 

 

   

 

 

 

Supplemental disclosures of cash flow information:

    

Cash paid for interest

   $ 85,170      $ 102,334   
  

 

 

   

 

 

 

Cash paid for foreign, state and federal income taxes

   $ 2,467      $ 1,906   
  

 

 

   

 

 

 

See accompanying notes to condensed consolidated financial statements.

 

6


Table of Contents

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In thousands, except share and per share data)

1. Significant Accounting Policies

The information included in the foregoing interim condensed consolidated financial statements is unaudited. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the Company’s financial position and results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the entire year. These interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and the notes thereto included in the 2012 Combined Form 10-K. Subsequent events, if any, are evaluated through the date on which the financial statements are issued.

2. Stock-Based Compensation

Equity Incentive Plan. Lamar Advertising’s 1996 Equity Incentive Plan, as amended, (the “Incentive Plan”) has reserved 15.5 million shares of Class A common stock for issuance to directors and employees, including shares underlying granted options and common stock reserved for issuance under its performance-based incentive program. Options granted under the plan expire ten years from the grant date with vesting terms ranging from three to five years and include 1) options that vest in one-fifth increments beginning on the grant date and continuing on each of the first four anniversaries of the grant date and 2) options that cliff-vest on the fifth anniversary of the grant date. All grants are made at fair market value based on the closing price of our Class A common stock as reported on the NASDAQ Global Select Market on the date of grant.

The number of shares of Class A common stock available under the Incentive Plan was increased by 2.5 million shares pursuant to an amendment to the Incentive Plan adopted by our board of directors on February 28, 2013 and approved by our stockholders at the Company’s 2013 Annual Meeting of Stockholders on May 23, 2013.

We use a Black-Scholes-Merton option pricing model to estimate the fair value of share-based awards. The Black-Scholes-Merton option pricing model incorporates various and highly subjective assumptions, including expected term and expected volatility. The Company granted options for an aggregate of 2,043,791 shares of its Class A common stock during the nine months ended September 30, 2013.

Stock Purchase Plan. In 2009 our board of directors adopted a new employee stock purchase plan, the 2009 Employee Stock Purchase Plan or 2009 ESPP, which was approved by our shareholders on May 28, 2009. The 2009 ESPP reserved 588,154 shares of Class A common stock for issuance to our employees, which included 88,154 shares of Class A common stock that had been available for issuance under our 2000 Employee Stock Purchase Plan or 2000 ESPP. The 2000 ESPP was terminated following the issuance of all shares that were subject to the offer that commenced under the 2000 ESPP on January 1, 2009 and ended June 30, 2009. The terms of the 2009 ESPP are substantially the same as the 2000 ESPP.

The number of shares of Class A common stock available under the 2009 ESPP was automatically increased by 78,963 shares on January 1, 2013 pursuant to the automatic increase provisions of the 2009 ESPP.

The following is a summary of the 2009 ESPP share activity for the nine months ended September 30, 2013:

 

     Shares  

Available for future purchases, January 1, 2013

     358,950   

Additional shares reserved under 2009 ESPP

     78,963   

Purchases

     (84,399
  

 

 

 

Available for future purchases, September 30, 2013

     353,514   
  

 

 

 

Performance-based compensation. Unrestricted shares of our Class A common stock may be awarded to key officers, employees and directors under our 1996 Equity Incentive Plan. The number of shares to be issued, if any, will be dependent on the level of achievement of performance measures for key officers and employees, as determined by the Company’s Compensation Committee based on our 2013 results. Any shares issued based on the achievement of performance goals will be issued in the first quarter of 2014. The shares subject to these awards can range from a minimum of 0% to a maximum of 100% of the target number of shares depending on the level at which the goals are attained. For the nine months ended September 30, 2013, the Company has recorded $7,757 as non-cash compensation expense related to performance-based awards. In addition, each of our non-employee directors automatically receive upon election or re-election a restricted stock award of our Class A common stock. These awards vest 50% on grant date and 50% on the last day of each director’s one year term. The Company recorded $332 non-cash compensation expense related to these awards for the nine months ended September 30, 2013.

 

7


Table of Contents

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In thousands, except share and per share data)

 

3. Acquisitions

During the nine months ended September 30, 2013, the Company completed several acquisitions of outdoor advertising assets for a total purchase price of approximately $83,776 in cash.

Each of these acquisitions was accounted for under the acquisition method of accounting, and, accordingly, the accompanying consolidated financial statements include the results of operations of each acquired entity from the date of acquisition. The acquisition costs have been allocated to assets acquired and liabilities assumed based on preliminary fair value estimates at the dates of acquisition. The allocations are pending final determination of the fair value of certain assets and liabilities. The following is a summary of the preliminary allocation of the acquisition costs in the above transactions.

 

     Total  

Property, plant and equipment

   $ 14,513   

Goodwill

     17,358   

Site locations

     43,493   

Non-competition agreements

     380   

Customer lists and contracts

     9,201   

Other asset

     961   

Current liabilities

     (2,130
  

 

 

 
   $ 83,776   
  

 

 

 

Summarized below are certain unaudited pro forma statements of operations data for the three and nine months ended September 30, 2013 and September 30, 2012 as if each of the above acquisitions and the acquisitions occurring in 2012, which were fully described in the 2012 Combined Form 10-K, had been consummated as of January 1, 2012. This pro forma information does not purport to represent what the Company’s results of operations actually would have been had such transactions occurred on the date specified or to project the Company’s results of operations for any future periods.

 

     Three months ended
September 30,
     Nine months ended
September 30,
 
     2013      2012      2013      2012  

Pro forma net revenues

   $ 324,941       $ 317,586       $ 939,747       $ 916,282   
  

 

 

    

 

 

    

 

 

    

 

 

 

Pro forma net income applicable to common stock

   $ 18,504       $ 12,142       $ 34,409       $ 3,878   
  

 

 

    

 

 

    

 

 

    

 

 

 

Pro forma net income per common share—basic

   $ 0.20       $ 0.13       $ 0.36       $ 0.04   
  

 

 

    

 

 

    

 

 

    

 

 

 

Pro forma net income per common share—diluted

   $ 0.20       $ 0.13       $ 0.36       $ 0.04   
  

 

 

    

 

 

    

 

 

    

 

 

 

4. Depreciation and Amortization

The Company includes all categories of depreciation and amortization on a separate line in its Statement of Operations. The amounts of depreciation and amortization expense excluded from the following operating expenses in its Statement of Operations are:

 

     Three months ended
September 30,
     Nine months ended
September 30,
 
     2013      2012      2013      2012  

Direct advertising expenses

   $ 69,040       $ 68,507       $ 207,265       $ 205,450   

General and administrative expenses

     1,151         985         2,921         3,007   

Corporate expenses

     2,992         4,423         9,306         10,826   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 73,183       $ 73,915       $ 219,492       $ 219,283   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

8


Table of Contents

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In thousands, except share and per share data)

 

5. Goodwill and Other Intangible Assets

The following is a summary of intangible assets at September 30, 2013 and December 31, 2012.

 

     Estimated
Life
(Years)
     September 30, 2013      December 31, 2012  
        Gross Carrying
Amount
     Accumulated
Amortization
     Gross Carrying
Amount
     Accumulated
Amortization
 

Customer lists and contracts

     7—10       $ 491,982       $ 461,406       $ 482,883       $ 455,549   

Non-competition agreements

     3—15         63,896         62,840         63,519         62,566   

Site locations

     15         1,492,023         1,082,466         1,449,181         1,009,631   

Other

     5—15         14,008         13,430         13,608         13,133   
     

 

 

    

 

 

    

 

 

    

 

 

 
      $ 2,061,909       $ 1,620,142       $ 2,009,191       $ 1,540,879   

Unamortizable intangible assets:

              

Goodwill

      $ 1,755,936       $ 253,536       $ 1,738,686       $ 253,536   

6. Asset Retirement Obligations

The Company’s asset retirement obligations include the costs associated with the removal of its structures, resurfacing of the land and retirement cost, if applicable, related to the Company’s outdoor advertising portfolio. The following table reflects information related to our asset retirement obligations:

 

Balance at December 31, 2012

   $  189,659   

Additions to asset retirement obligations

     2,392   

Accretion expense

     8,408   

Liabilities settled

     (2,525
  

 

 

 

Balance at September 30, 2013

   $ 197,934   
  

 

 

 

7. Summarized Financial Information of Subsidiaries

Separate financial statements of each of the Company’s direct or indirect wholly owned subsidiaries that have guaranteed Lamar Media’s obligations with respect to its publicly issued notes (collectively, the “Guarantors”) are not included herein because the Company has no independent assets or operations, the guarantees are full and unconditional and joint and several, and the only subsidiaries that are not guarantors are in the aggregate minor.

Lamar Media’s ability to make distributions to Lamar Advertising is restricted under both the terms of the indentures relating to Lamar Media’s outstanding notes and by the terms of its senior credit facility. As of September 30, 2013 and December 31, 2012, Lamar Media was permitted under the terms of its outstanding senior subordinated notes to make transfers to Lamar Advertising in the form of cash dividends, loans or advances in amounts up to $1,973,528 and $1,706,875, respectively. Transfers to Lamar Advertising are subject to additional restrictions if, (i) under Lamar Media’s senior credit facility and as defined therein, (x) the total holdings debt ratio is greater than 5.75 to 1 or (y) the senior debt ratio is greater than 3.25 to 1.0, and (ii) if under the indenture for Lamar Media’s 9 3/4% senior notes and as defined therein, its senior leverage ratio is greater than or equal to 3.0 to 1. As of September 30, 2013, the total holdings debt ratio was less than 5.75 to 1 and Lamar Media’s senior debt ratio was less than 3.25 to 1 and its senior leverage ratio was less than 3.0 to 1; therefore, transfers to Lamar Advertising were not subject to any additional restrictions under the senior credit facility or pursuant to the indenture governing the 9 3/4% senior notes.

8. Earnings Per Share

The calculation of basic earnings per share excludes any dilutive effect of stock options, while diluted earnings per share includes the dilutive effect of options. For the nine months ended September 30, 2013 and 2012 there were no dilutive shares excluded from this calculation resulting from the antidilutive effect of options.

 

9


Table of Contents

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In thousands, except share and per share data)

 

9. Long-term Debt

Long-term debt consists of the following at September 30, 2013 and December 31, 2012:

 

     September 30,
2013
    December 31,
2012
 

Senior Credit Facility

   $ 360,289      $ 384,664   

7 7/8% Senior Subordinated Notes

     400,000        400,000   

5 7/8% Senior Subordinated Notes

     500,000        500,000   

5% Senior Subordinated Notes

     535,000        535,000   

9 3/4% Senior Notes

     345,445        339,121   

Other notes with various rates and terms

     2,080        2,069   
  

 

 

   

 

 

 
     2,142,814        2,160,854   

Less current maturities

     (393,834     (33,134
  

 

 

   

 

 

 

Long-term debt, excluding current maturities

   $ 1,748,980      $ 2,127,720   
  

 

 

   

 

 

 

9 3/4% Senior Notes

On March 27, 2009, Lamar Media issued $350,000 in aggregate principal amount ($314,927 gross proceeds) of 9 3/4% Senior Notes due 2014 (the “Senior Notes”). The institutional private placement resulted in net proceeds to Lamar Media of approximately $307,489. The Senior Notes mature on April 1, 2014 and have interest at a rate of 9 3/4% per annum, which is payable semi-annually on April 1 and October 1 of each year, beginning October 1, 2009. Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months. The terms of the Senior Notes will, among other things, limit Lamar Media’s and its restricted subsidiaries’ ability to (i) incur additional debt and issue preferred stock; (ii) make certain distributions, investments and other restricted payments; (iii) create certain liens; (iv) enter into transactions with affiliates; (v) have the restricted subsidiaries make payments to Lamar Media; (vi) merge, consolidate or sell substantially all of Lamar Media’s or the restricted subsidiaries’ assets; and (vii) sell assets. These covenants are subject to a number of exceptions and qualifications.

At any time prior to April 1, 2014, Lamar Media may redeem some or all of the Senior Notes at a price equal to 100% of the principal amount plus a make-whole premium. In addition, if the Company or Lamar Media undergoes a change of control, Lamar Media may be required to make an offer to purchase each holder’s Senior Notes at a price equal to 101% of the principal amount of the Senior Notes, plus accrued and unpaid interest (including additional interest, if any), up to but not including the repurchase date.

7 7/8% Senior Subordinated Notes

On April 22, 2010, Lamar Media issued $400,000 in aggregate principal amount of 7 7/8% Senior Subordinated Notes due 2018 (the “7 7/8% Notes”). The institutional private placement resulted in net proceeds to Lamar Media of approximately $392,000.

At any time prior to April 15, 2014, Lamar Media may redeem some or all of the 7 7/8% Notes at a price equal to 100% of the principal amount plus a make-whole premium. On or after April 15, 2014, Lamar Media may redeem the 7 7/8% Notes, in whole or part, in cash at redemption prices specified in the 7 7/8% Notes. In addition, if the Company or Lamar Media undergoes a change of control, Lamar Media may be required to make an offer to purchase each holder’s 7 7/8% Notes at a price equal to 101% of the principal amount of the 7 7/8% Notes, plus accrued and unpaid interest, up to but not including the repurchase date.

5 7/8% Senior Subordinated Notes

On February 9, 2012, Lamar Media completed an institutional private placement of $500,000 aggregate principal amount of 5 7/8% Senior Subordinated Notes, due 2022 (the “5 7/8% Notes”). The institutional private placement resulted in net proceeds to Lamar Media of approximately $489,000.

Lamar Media may redeem up to 35% of the aggregate principal amount of the 5 7/8% Notes, at any time and from time to time, at a price equal to 105.875% of the aggregate principal amount so redeemed, plus accrued and unpaid interest thereon, with the net cash proceeds of certain public equity offerings completed before February 1, 2015, provided that following the redemption, at least 65% of the 5 7/8% Notes that were originally issued remain outstanding. At any time prior to February 1, 2017, Lamar Media may redeem some or all of the 5 7/8% Notes at a price equal to 100% of the aggregate principal amount plus a make-whole premium. On or after February 1, 2017, Lamar Media may redeem the 5 7/8% Notes, in whole or in part, in cash at redemption prices specified in the 5 7/8%

 

10


Table of Contents

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In thousands, except share and per share data)

 

Notes. In addition, if the Company or Lamar Media undergoes a change of control, Lamar Media may be required to make an offer to purchase each holder’s 5 7/8% Notes at a price equal to 101% of the principal amount of the 5 7/8% Notes, plus accrued and unpaid interest, up to but not including the repurchase date.

5% Senior Subordinated Notes

On October 30, 2012, Lamar Media completed an institutional private placement of $535,000 aggregate principal amount of 5% Senior Subordinated Notes due 2023 (the “5% Notes”). The institutional private placement resulted in net proceeds to Lamar Media of approximately $527,100.

Lamar Media may redeem up to 35% of the aggregate principal amount of the 5% Notes, at any time and from time to time, at a price equal to 105% of the aggregate principal amount so redeemed, plus accrued and unpaid interest thereon, with the net cash proceeds of certain public equity offerings completed before November 1, 2015, provided that following the redemption, at least 65% of the 5% Notes that were originally issued remain outstanding. At any time prior to May 1, 2018, Lamar Media may redeem some or all of the 5% Notes at a price equal to 100% of the aggregate principal amount plus a make-whole premium. On or after May 1, 2018, Lamar Media may redeem the 5% Notes, in whole or in part, in cash at redemption prices specified in the 5% Notes. In addition, if the Company or Lamar Media undergoes a change of control, Lamar Media may be required to make an offer to purchase each holder’s 5% Notes at a price equal to 101% of the principal amount of the 5% Notes, plus accrued and unpaid interest, up to but not including the repurchase date.

2010 Senior Credit Facility

On February 9, 2012, Lamar Media entered into a restatement agreement with respect to its existing senior credit facility in order to fund a new $100,000 Term loan A facility and to make certain covenant changes to the senior credit facility, which was entered into on April 28, 2010, as amended on June 11, 2010, November 18, 2010 and February 9, 2012, and further amended on October 24, 2013 for which JPMorgan Chase Bank, N.A. serves as administrative agent (the “senior credit facility”). The senior credit facility consists of a $250,000 revolving credit facility, a $270,000 term loan A-1 facility, a $30,000 term loan A-2 facility, a $100,000 term loan A-3 facility, a $575,000 term loan B facility and a $300,000 incremental facility, which may be increased by up to an additional $200,000 based upon our satisfaction of a senior debt ratio test (defined as total consolidated senior debt of Lamar Media and its restricted subsidiaries to EBITDA, as defined in the senior credit facility, for the most recent four fiscal quarters then ended) of less than or equal to 3.25 to 1. Lamar Media is the borrower under the senior credit facility, except with respect to the $30,000 term loan A-2 facility for which Lamar Media’s wholly owned subsidiary, Lamar Advertising of Puerto Rico, Inc. is the borrower. We may also from time to time designate additional wholly owned subsidiaries as subsidiary borrowers under the incremental loan facility that can borrow up to $110,000 of the incremental facility. Incremental loans may be in the form of additional term loan tranches or increases in the revolving credit facility. Our lenders have no obligation to make additional loans to us, or any designated subsidiary borrower, under the incremental facility, but may enter into such commitments in their sole discretion.

The remaining quarterly amortizations of the Term loan facilities as of September 30, 2013 is as follows:

 

     Term A-1      Term A-2      Term A-3      Term B  

December 31, 2013 – March 31, 2014

   $ 6,750       $ 750       $ 625       $ 57.4   

June 30, 2014 — December 31, 2014

   $ 13,500       $ 1,500       $ 625       $ 57.4   

March 31, 2015

   $ 13,500       $ 1,500       $ 1,250       $ 57.4   

June 30, 2015 — September 30, 2015

   $ 37,125       $ 4,125       $ 1,250       $ 57.4   

December 31, 2015

   $ 74,250       $ 8,250       $ 1,250       $ 57.4   

March 31, 2016 — September 30, 2016

   $ —        $ —         $ 1,250       $ 57.4   

December 31, 2016

   $ —        $ —         $ 1,250       $ 21,474.7   

March 31, 2017— June 30, 2017

   $ —        $ —         $ 21,250       $ —    

August 9, 2017

   $ —        $ —         $ 42,500       $ —    

In addition to the required amortization payments with respect to our Term loan facilities, Lamar Media may be required to make certain mandatory prepayments on loans outstanding under the senior credit facility that would be applied first to any outstanding term loans. These payments, if any, will be calculated based on a percentage of Consolidated Excess Cash Flow (as defined in the senior credit facility) at the end of each fiscal year. For fiscal years ending or after December 31, 2012, this percentage is subject to reduction to 0% if the total holdings debt ratio (as defined in the senior credit facility) is less than or equal to 5.00 to 1.00 as of the last day of such fiscal year.

 

11


Table of Contents

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In thousands, except share and per share data)

 

As of September 30, 2013, there were no amounts outstanding under the revolving senior facility. The revolving facility terminates April 28, 2015. Availability under the revolving facility is reduced by the amount of any letters of credit outstanding. Lamar Media had $6,973 letters of credit outstanding as of September 30, 2013 resulting in $243,027 of availability under its revolving facility. Revolving credit loans may be requested under the revolving credit facility at any time prior to maturity. The loans bear interest, at Lamar Media’s option, at the LIBOR Rate or JPMorgan Chase Prime Rate plus applicable margins, such margins being set from time to time based on Lamar Media’s ratio of debt to trailing twelve month EBITDA, as defined in the senior credit facility.

The terms of Lamar Media’s senior credit facility and the indentures relating to Lamar Media’s outstanding notes restrict, among other things, the ability of Lamar Advertising and Lamar Media to:

 

    dispose of assets;

 

    incur or repay debt;

 

    create liens;

 

    make investments; and

 

    pay dividends.

Lamar Media’s ability to make distributions to Lamar Advertising is also restricted under the terms of these agreements. Under Lamar Media’s senior credit facility the Company must maintain specified financial ratios and levels including:

 

    a fixed charges ratio;

 

    a senior debt ratio; and

 

    a total holdings debt ratio.

Lamar Advertising and Lamar Media were in compliance with all applicable terms under the indentures governing Lamar Media’s outstanding notes and the applicable senior credit agreement provisions during the periods presented.

10. Fair Value of Financial Instruments

At September 30, 2013 and December 31, 2012, the Company’s financial instruments included cash and cash equivalents, marketable securities, accounts receivable, investments, accounts payable and borrowings. The fair values of cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings and current portion of long-term debt approximated carrying values because of the short-term nature of these instruments. Investments are reported at fair values. Fair values for investments held at cost are not readily available, but are estimated to approximate fair value. The estimated fair value of the Company’s long term debt (including current maturities) was $2,149,281, which exceeded both the gross and carrying amounts of $2,147,369 and $2,142,814, respectively, as of September 30, 2013.

11. Non-Cash Financing and Investing Activities

For the period ended September 30, 2012 the Company had non-cash investing activity of $3,098 related to acquisitions of outdoor advertising assets. There were no significant non-cash investing or financing activities for the nine months ended September 30, 2013.

12. Subsequent Events

On November 4, 2013, Lamar Media announced its intent to redeem in full all $350,000 in aggregate principal amount of its 9 3/4% Senior Notes due 2014 (the “Notes”). The redemption will be made in accordance with the terms of the indenture governing the Notes.

Lamar Media expects the Notes to be redeemed on December 4, 2013 (the “Redemption Date”), at a redemption price equal to 100% of the aggregate principal amount of outstanding Notes plus a make whole amount and accrued and unpaid interest to (but not including) the Redemption Date.

 

12


Table of Contents

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share data)

 

     September 30,
2013
    December 31,
2012
 
     (Unaudited)        

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 182,165      $ 58,411   

Receivables, net of allowance for doubtful accounts of $9,000 and $7,615 in 2013 and 2012, respectively

     179,434        159,829   

Prepaid expenses

     60,133        41,132   

Deferred income tax assets

     11,060        10,817   

Other current assets

     28,390        30,546   
  

 

 

   

 

 

 

Total current assets

     461,182        300,735   
  

 

 

   

 

 

 

Property, plant and equipment

     3,009,498        2,940,449   

Less accumulated depreciation and amortization

     (1,866,423     (1,760,090
  

 

 

   

 

 

 

Net property, plant and equipment

     1,143,075        1,180,359   
  

 

 

   

 

 

 

Goodwill

     1,492,248        1,474,998   

Intangible assets

     441,299        467,837   

Deferred financing costs net of accumulated amortization of $21,604 and $16,579 in 2013 and 2012, respectively

     30,897        35,834   

Other assets

     38,362        35,901   
  

 

 

   

 

 

 

Total assets

   $ 3,607,063      $ 3,495,664   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDER’S EQUITY

    

Current liabilities:

    

Trade accounts payable

   $ 16,111      $ 13,539   

Current maturities of long-term debt

     393,834        33,134   

Accrued expenses

     122,078        96,860   

Deferred income

     63,504        51,323   
  

 

 

   

 

 

 

Total current liabilities

     595,527        194,856   
  

 

 

   

 

 

 

Long-term debt

     1,748,980        2,127,720   

Deferred income tax liabilities

     159,611        141,228   

Asset retirement obligation

     197,934        189,659   

Other liabilities

     20,109        16,388   
  

 

 

   

 

 

 

Total liabilities

     2,722,161        2,669,851   
  

 

 

   

 

 

 

Stockholder’s equity:

    

Common stock, par value $.01, 3,000 shares authorized, 100 shares issued and outstanding at 2013 and 2012

     —         —     

Additional paid-in-capital

     2,636,769        2,606,157   

Accumulated comprehensive income

     4,973        5,978   

Accumulated deficit

     (1,756,840     (1,786,322
  

 

 

   

 

 

 

Stockholder’s equity

     884,902        825,813   
  

 

 

   

 

 

 

Total liabilities and stockholder’s equity

   $ 3,607,063      $ 3,495,664   
  

 

 

   

 

 

 

See accompanying note to condensed consolidated financial statements.

 

13


Table of Contents

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

(In thousands, except share and per share data)

 

     Three months ended
September 30,
    Nine months ended
September 30,
 
     2013     2012     2013     2012  

Net revenues

   $ 323,184      $ 306,286      $ 931,347      $ 877,396   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses (income)

        

Direct advertising expenses (exclusive of depreciation and amortization)

     109,640        103,845        326,882        312,339   

General and administrative expenses (exclusive of depreciation and amortization)

     57,033        52,153        176,158        157,275   

Corporate expenses (exclusive of depreciation and amortization)

     14,763        13,516        45,190        39,763   

Depreciation and amortization

     73,183        73,915        219,492        219,283   

Gain on disposition of assets

     (787     (739     (2,094     (5,309
  

 

 

   

 

 

   

 

 

   

 

 

 
     253,832        242,690        765,628        723,351   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     69,352        63,596        165,719        154,045   

Other expense (income)

        

Loss on extinguishment of debt

     —          1,984        —          31,956   

Interest income

     (42     (147     (121     (270

Interest expense

     37,677        38,534        112,264        117,081   
  

 

 

   

 

 

   

 

 

   

 

 

 
     37,635        40,371        112,143        148,767   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income tax expense

     31,717        23,225        53,576        5,278   

Income tax expense

     13,327        11,640        19,894        2,526   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 18,390      $ 11,585      $ 33,682      $ 2,752   
  

 

 

   

 

 

   

 

 

   

 

 

 

Statement of Comprehensive Income

        

Net income

   $ 18,390      $ 11,585      $ 33,682      $ 2,752   

Other comprehensive income (loss), net of tax

        

Foreign currency translation adjustments

     534        1,152        (1,005     1,048   
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

   $ 18,924      $ 12,737      $ 32,677      $ 3,800   
  

 

 

   

 

 

   

 

 

   

 

 

 

See accompanying note to condensed consolidated financial statements.

 

14


Table of Contents

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

 

     Nine months ended
September 30,
 
     2013     2012  

Cash flows from operating activities:

    

Net income

   $ 33,682      $ 2,752   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     219,492        219,283   

Non-cash equity based compensation

     23,107        10,902   

Amortization included in interest expense

     11,354        13,101   

Gain on disposition of assets

     (2,094     (5,309

Loss on extinguishment of debt

     —          31,956   

Deferred tax expense

     17,142        1,221   

Provision for doubtful accounts

     4,949        4,308   

Changes in operating assets and liabilities:

    

(Increase) decrease in:

    

Receivables

     (22,485     (20,674

Prepaid expenses

     (17,852     (14,325

Other assets

     1,204        (1,048

Increase (decrease) in:

    

Trade accounts payable

     2,236        8   

Accrued expenses

     18,116        4,312   

Other liabilities

     (9,341     (3,644
  

 

 

   

 

 

 

Net cash provided by operating activities

     279,510        242,843   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Acquisitions

     (83,776     (54,738

Capital expenditures

     (77,677     (77,747

Proceeds from disposition of assets

     4,771        5,023   

(Increase) decrease in notes receivable

     (361     118   
  

 

 

   

 

 

 

Net cash used in investing activities

     (157,043     (127,344
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Principal payments on long-term debt

     (24,441     (8,381

Payment on senior subordinated notes

     —          (722,296

Proceeds received from note offering

     —          500,000   

Proceeds received from senior credit agreement term loan

     —          100,000   

Net proceeds received under revolving credit facility

     —          15,000   

Debt issuance costs

     (90     (14,328

Contributions from parent

     30,612        19,668   

Dividend to parent

     (4,200     (1,113
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     1,881        (111,450
  

 

 

   

 

 

 

Effect of exchange rate changes in cash and cash equivalents

     (594     522   

Net increase in cash and cash equivalents

     123,754        4,571   

Cash and cash equivalents at beginning of period

     58,411        33,377   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 182,165      $ 37,948   
  

 

 

   

 

 

 

Supplemental disclosures of cash flow information:

    

Cash paid for interest

   $ 85,170      $ 102,334   
  

 

 

   

 

 

 

Cash paid for foreign, state and federal income taxes

   $ 2,467      $ 1,906   
  

 

 

   

 

 

 

See accompanying note to condensed consolidated financial statements.

 

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LAMAR MEDIA CORP.

AND SUBSIDIARIES

Note to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

1. Significant Accounting Policies

The information included in the foregoing interim condensed consolidated financial statements is unaudited. In the opinion of management all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of Lamar Media’s financial position and results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the entire year. These interim condensed consolidated financial statements should be read in conjunction with Lamar Media’s consolidated financial statements and the notes thereto included in the 2012 Combined Form 10-K.

Certain notes are not provided for the accompanying condensed consolidated financial statements as the information in notes 1, 2, 3, 4, 5, 6, 7, 9, 10, 11 and 12 to the condensed consolidated financial statements of Lamar Advertising Company included elsewhere in this report is substantially equivalent to that required for the condensed consolidated financial statements of Lamar Media Corp. Earnings per share data is not provided for Lamar Media Corp., as it is a wholly owned subsidiary of the Company.

 

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This discussion contains forward-looking statements. Actual results could differ materially from those anticipated by the forward-looking statements due to risks and uncertainties described in the section of this combined quarterly report on Form 10-Q entitled “Note Regarding Forward-Looking Statements” and in Item 1A to the 2012 Combined Form 10-K filed on February 28, 2013, as supplemented by any risk factors contained in our combined Quarterly Reports on Form 10-Q. You should carefully consider each of these risks and uncertainties in evaluating the Company’s and Lamar Media’s financial condition and results of operations. Investors are cautioned not to place undue reliance on the forward-looking statements contained in this document. These statements speak only as of the date of this document, and the Company undertakes no obligation to update or revise the statements, except as may be required by law.

Lamar Advertising Company

The following is a discussion of the consolidated financial condition and results of operations of the Company for the three and nine months ended September 30, 2013 and 2012. This discussion should be read in conjunction with the consolidated financial statements of the Company and the related notes thereto.

OVERVIEW

The Company’s net revenues are derived primarily from the rental of advertising space on outdoor advertising displays owned and operated by the Company. Revenue growth is based on many factors that include the Company’s ability to increase occupancy of its existing advertising displays; raise advertising rates; and acquire new advertising displays and its operating results are therefore, affected by general economic conditions, as well as trends in the advertising industry. Advertising spending is particularly sensitive to changes in general economic conditions which affect the rates the Company is able to charge for advertising on its displays and its ability to maximize advertising sales or occupancy on its displays.

Historically, the Company made strategic acquisitions of outdoor advertising assets to increase the number of outdoor advertising displays it operates in existing and new markets. While the Company has significantly reduced its acquisition activity over the last three years, it will continue to evaluate and pursue strategic acquisition opportunities as they arise. The Company has financed its historical acquisitions and intends to finance any future acquisition activity from available cash, borrowings under its senior credit facility or the issuance of debt or equity securities. See “Liquidity and Capital Resources” below. During the nine months ended September 30, 2013, the Company completed acquisitions for a total purchase price of approximately $83.8 million in cash.

The Company’s business requires expenditures for maintenance and capitalized costs associated with the construction of new billboard displays, the entrance into and renewal of logo sign and transit contracts, and the purchase of real estate and operating equipment. The following table presents a breakdown of capitalized expenditures for the three months and nine months ended September 30, 2013 and 2012:

 

     Three months ended
September 30,
(in thousands)
     Nine months ended
September 30,
(in thousands)
 
     2013      2012      2013      2012  

Billboard — traditional

   $ 6,795       $ 5,917       $ 19,271       $ 20,938   

Billboard — digital

     11,362         12,272         34,965         32,334   

Logos

     3,050         2,267         7,157         5,547   

Transit

     26         26         54         110   

Land and buildings

     428         4,486         6,036         9,401   

Operating equipment

     3,295         3,237         10,194         9,417   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total capital expenditures

   $ 24,956       $ 28,205       $ 77,677       $ 77,747   
  

 

 

    

 

 

    

 

 

    

 

 

 

Potential REIT Election

As previously announced, the Company is actively considering an election to real estate investment trust (REIT) status and is currently evaluating the steps necessary to implement conversion to a REIT. In conjunction with this review, the Company submitted a private letter ruling request to the U.S. Internal Revenue Service (the “IRS”) in November of 2012 regarding a potential REIT election. The Company has been advised by the IRS that its study of the current legal standards it uses to define “real estate” for purposes of the REIT provisions of the U.S. Internal Revenue Code is ongoing and that the Company’s private letter ruling request remains under review. The timing of any response to the Company’s ruling request is uncertain and may be delayed due to the ongoing IRS study. Based on current information, the Company has no reason to conclude that it will not be in a position to convert to a REIT effective for the taxable year beginning January 1, 2014. The Company intends to complete a corporate restructuring to be in compliance with REIT rules prior to December 31, 2013.

 

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The Company’s decision to proceed with a REIT election is subject to the approval of its board of directors. A favorable IRS ruling, if received, does not guarantee that the Company would succeed in qualifying as a REIT and there is no certainty as to the timing of a REIT election. The Company may not ultimately pursue a conversion to a REIT and it can provide no assurance that a REIT conversion, if completed, will be successfully implemented or achieve the intended benefits.

RESULTS OF OPERATIONS

Nine Months ended September 30, 2013 compared to Nine Months ended September 30, 2012

Net revenues increased $53.9 million or 6.1% to $931.3 million for the nine months ended September 30, 2013 from $877.4 million for the same period in 2012. This increase was attributable primarily to an increase in billboard net revenues of $43.3 million or 5.5% over the prior period, an increase in logo sign revenue of $4.3 million, which represents an increase of 9.3% over the prior period, and a $6.4 million increase in transit revenue, which represents an increase of 13.2% over the prior period.

For the nine months ended September 30, 2013, there was a $21.6 million increase in net revenues as compared to acquisition-adjusted net revenue for the nine months ended September 30, 2012. The $21.6 million increase in revenue primarily consists of a $16.3 million increase in billboard revenue, a $2.4 million increase in logo revenue and a $2.9 million increase in transit revenue over the acquisition-adjusted net revenue for the comparable period in 2012. This increase in revenue represents an increase of 2.4% over the comparable period in 2012. See “Reconciliations” below.

Operating expenses, exclusive of depreciation and amortization and gain on sale of assets, increased $38.8 million or 7.6% to $548.5 million for the nine months ended September 30, 2013 from $509.7 million for the same period in 2012. There was a $14.5 million increase in direct advertising expense related to the operations of our outdoor advertising assets, an $18.9 million increase in general and administrative expenses and a $5.4 million increase in corporate expenses. The increase in general and administrative and corporate expenses includes an increase in non-cash compensation expense of $12.2 million as compared to the comparable period in 2012. Also included is approximately $1.7 million of expenses related to the Company’s evaluation of an election to real estate investment trust status.

For the nine months ended September 30, 2013, gain on sale of assets decreased $3.2 million as compared to the nine months ended September 30, 2012, primarily due to an asset swap transaction which occurred in June 2012.

Due to the above factors, operating income increased $11.7 million to $165.5 million for the nine months ended September 30, 2013 compared to $153.8 million for the same period in 2012.

During the nine months ended September 30, 2012, the Company recognized a $32.0 million loss on debt extinguishment related to the settlement of the tender offer for Lamar Media’s then outstanding 6 5/8% Senior Subordinated Notes due 2015. Approximately $15.0 million of the loss was a non-cash expense attributable to the write off of unamortized debt issuance fees and unamortized discounts associated with the tendered notes.

Interest expense decreased approximately $4.8 million from $117.1 million for the nine months ended September 30, 2012 to $112.3 million for the nine months ended September 30, 2013, due to the reduction in total debt outstanding as well as a decrease in interest rates resulting from the Company’s refinancing transactions in 2012.

The increase in operating income, decrease in interest expense and decrease in loss on extinguishment of debt discussed above resulted in a $48.3 million increase in net income before income taxes. The Company recorded income tax expense of $19.8 million for the nine months ended September 30, 2013. The effective tax rate for the nine months ended September 30, 2013 was 37.1%. The effective tax rate is lower than the statutory rates primarily due to an increase in the corporate income tax rate in Puerto Rico from 30% to 39%, which resulted in a change to the carrying value of net operating loss carry forwards during the period.

As a result of the above factors, the Company recognized net income for the nine months ended September 30, 2013 of $33.5 million, as compared to net income of $2.6 million for the same period in 2012.

Three Months ended September 30, 2013 compared to Three Months ended September 30, 2012

Net revenues increased $16.9 million or 5.5% to $323.2 million for the three months ended September 30, 2013 from $306.3 million for the same period in 2012. This increase was attributable primarily to an increase in billboard net revenues of $14.1 million or 5.2% over the prior period, an increase in logo revenue of $1.2 million or a 7.6% increase over the prior period and a $1.6 million increase in transit revenue over the prior period, which represents an increase of 8.7% over the prior period.

For the three months ended September 30, 2013, there was a $6.7 million increase in net revenues as compared to acquisition-adjusted net revenue for the three months ended September 30, 2012. The $6.7 million increase in revenue primarily consists of a $5.4 million increase in billboard revenue, a $0.5 million increase in logo revenue and a $0.8 million increase in transit revenue over the acquisition-adjusted net revenue for the comparable periods in 2012. This increase in revenue represents an increase of 2.1% over the comparable period in 2012. See “Reconciliations” below.

 

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Operating expenses, exclusive of depreciation and amortization and gain on sale of assets, increased $11.9 million or 7.0% to $181.5 million for the three months ended September 30, 2013 from $169.6 million for the same period in 2012. There was a $5.8 million increase in direct operating expenses related to the operations of our outdoor advertising assets, a $4.9 million increase in general and administrative expenses and a $1.2 million increase in corporate expenses. The increase in each of corporate expenses and general and administrative expenses includes approximately $2.0 million in non-cash compensation and approximately $0.7 million related to the Company’s evaluation of an election to real estate investment trust status.

Depreciation and amortization expense decreased $0.7 million for three months ended September 30, 2013, as compared to the three months ended September 30, 2012.

Due to the above factors, operating income increased $5.8 million to $69.3 million for the three months ended September 30, 2013 compared to $63.5 million for the same period in 2012.

Interest expense decreased $0.8 million from $38.5 million for the three months ended September 30, 2012, to $37.7 million for the three months ended September 30, 2013.

The increase in operating income and decrease in interest expense described above resulted in a $8.5 million increase in net income before income taxes. This increase in net income resulted in an increase in income tax expense of $1.6 million for the three months ended September 30, 2013 over the same period in 2012. The effective tax rate for the three months ended September 30, 2013 was 42.0%.

As a result of the above factors, the Company recognized net income for the three months ended September 30, 2013 of $18.3 million, as compared to net income of $11.5 million for the same period in 2012.

Reconciliations:

Because acquisitions occurring after December 31, 2011 (the “acquired assets”) have contributed to our net revenue results for the periods presented, we provide 2012 acquisition-adjusted net revenue, which adjusts our 2012 net revenue for the three and nine months ended September 30, 2012 by adding to it the net revenue generated by the acquired assets prior to our acquisition of these assets for the same time frame that those assets were owned in the three and nine months ended September 30, 2013. We provide this information as a supplement to net revenues to enable investors to compare periods in 2013 and 2012 on a more consistent basis without the effects of acquisitions. Management uses this comparison to assess how well we are performing within our existing core assets.

Acquisition-adjusted net revenue is not determined in accordance with GAAP. For this adjustment, we measure the amount of pre-acquisition revenue generated by the acquired assets during the period in 2012 that corresponds with the actual period we have owned the assets in 2013 (to the extent within the period to which this report relates). We refer to this adjustment as “acquisition net revenue.”

Reconciliations of 2012 reported net revenue to 2012 acquisition-adjusted net revenue for each of the three and nine month periods ended September 30, as well as a comparison of 2012 acquisition-adjusted net revenue to 2013 reported net revenue for each of the three and nine month periods ended September 30, are provided below:

Reconciliation of Reported Net Revenue to Acquisition-Adjusted Net Revenue

 

     Three months ended
September 30, 2012
     Nine months ended
September 30, 2012
 
     (in thousands)      (in thousands)  

Reported net revenue

   $ 306,286       $ 877,396   

Acquisition net revenue

     10,190         32,329   
  

 

 

    

 

 

 

Acquisition-adjusted net revenue

   $ 316,476       $ 909,725   
  

 

 

    

 

 

 

Comparison of 2013 Reported Net Revenue to 2012 Acquisition-Adjusted Net Revenue

 

     Three months ended
September 30,
     Nine months ended
September 30,
 
     2013      2012      2013      2012  
     (in thousands)      (in thousands)  

Reported net revenue

   $ 323,184       $ 306,286       $ 931,347       $ 877,396   

Acquisition net revenue

     —           10,190         —           32,329   
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted totals

   $ 323,184       $ 316,476       $ 931,347       $ 909,725   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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LIQUIDITY AND CAPITAL RESOURCES

Overview

The Company has historically satisfied its working capital requirements with cash from operations and borrowings under the senior credit facility. The Company’s wholly owned subsidiary, Lamar Media Corp., is the principal borrower under the senior credit facility and maintains all corporate operating cash balances. Any cash requirements of the Company, therefore, must be funded by distributions from Lamar Media.

Sources of Cash

Total Liquidity at September 30, 2013. As of September 30, 2013 we had approximately $425.7 million of total liquidity, which is comprised of approximately $182.7 million in cash and cash equivalents and the ability to draw approximately $243.0 million under the revolving portion of Lamar Media’s senior credit facility. We are currently in compliance with all applicable restrictive covenants under the senior credit facility and we would remain in compliance after giving effect to borrowing the full amount available to us under the revolving portion of the senior credit facility.

Cash Generated by Operations. For the nine months ended September 30, 2013 and 2012 our cash provided by operating activities was $294.7 million and $253.3 million, respectively. While our net income was approximately $33.5 million for the nine months ended September 30, 2013, we generated cash from operating activities of $294.7 million during that same period, primarily due to non-cash items such as adjustments needed to reconcile net income to cash provided by operating activities of $273.8 million, which primarily consisted of depreciation and amortization of $219.5 million and equity based compensation of $23.1 million. In addition, there was an increase in working capital of $12.7 million. We expect to generate cash flows from operations during 2013 in excess of our cash needs for operations and capital expenditures as described herein. We expect to use this excess cash to reduce outstanding indebtedness or to fund future acquisitions.

Credit Facilities. On February 9, 2012, Lamar Media entered into a restatement agreement with respect to its existing senior credit facility in order to fund a new $100 million Term loan A facility and to make certain covenant changes to the senior credit facility, which was entered into on April 28, 2010, as amended on June 11, 2010, November 18, 2010 and February 9, 2012, and further amended on October 24, 2013, for which JPMorgan Chase Bank, N.A. serves as administrative agent (the “senior credit facility”). The senior credit facility consists of a $250 million revolving credit facility, a $270 million term loan A-1 facility, a $30 million term loan A-2 facility, a $100 million term loan A-3 facility, a $575 million term loan B facility and a $300 million incremental facility, which may be increased by up to an additional $200 million, based upon our satisfaction of a senior debt ratio test (as described below), of less than or equal to 3.25 to 1. Lamar Media is the borrower under the senior credit facility, except with respect to the $30 million term loan A-2 facility for which Lamar Media’s wholly owned subsidiary, Lamar Advertising of Puerto Rico, Inc. is the borrower. We may also from time to time designate additional wholly owned subsidiaries as subsidiary borrowers under the incremental loan facility that can borrow up to $110 million of the incremental facility. Incremental loans may be in the form of additional term loan tranches or increases in the revolving credit facility. Our lenders have no obligation to make additional loans to us, or any designated subsidiary borrower, under the incremental facility, but may enter into such commitments in their sole discretion.

As of September 30, 2013, Lamar Media had approximately $243.0 million of unused capacity under the revolving credit facility included in the senior credit facility and the aggregate balance outstanding under the senior credit facility was $360.3 million.

Factors Affecting Sources of Liquidity

Internally Generated Funds. The key factors affecting internally generated cash flow are general economic conditions, specific economic conditions in the markets where the Company conducts its business and overall spending on advertising by advertisers.

Credit Facilities and Other Debt Securities. Lamar must comply with certain covenants and restrictions related to the senior credit facility and its outstanding debt securities.

Restrictions Under Debt Securities. Lamar must comply with certain covenants and restrictions related to its outstanding debt securities. Currently Lamar Media has outstanding aggregate principal balances of approximately $350 million 9 3/4% Senior Notes due 2014 (the “9 3/4% Notes”), $400 million 7 7/8% Senior Subordinated Notes due 2018 (the “7 7/8% Notes”), $500 million 5 7/8% Senior Subordinated Notes due 2022 (the “5 7/8% Notes”) and $535 million 5% Senior Subordinated Notes due 2023 (the “5% Notes”). The indentures relating to Lamar Media’s outstanding notes restrict its ability to incur additional indebtedness but permit the incurrence of indebtedness (including indebtedness under the senior credit facility), (i) if no default or event of default would result from such incurrence and (ii) if after giving effect to any such incurrence, the leverage ratio (defined as total consolidated debt to trailing four fiscal quarter EBITDA (as defined in the indentures)) would be less than (a) 6.5 to 1, pursuant to the 9 3/4% Notes indenture, and (b) 7.0 to 1, pursuant to the respective indentures of the 7 7/8% Notes, 5 7/8% Notes and 5% Notes. Currently, Lamar Media is not in default under the indentures of any of its outstanding notes and, therefore, would be permitted to incur additional indebtedness subject to the foregoing provisions.

 

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In addition to debt incurred under the provisions described in the preceding paragraph, the indentures relating to Lamar Media’s outstanding notes permit Lamar Media to incur indebtedness pursuant to the following baskets:

 

    up to $1.4 billion of indebtedness under the senior credit facility allowable under the 9 3/4% Notes indenture (up to $1.5 billion of indebtedness under the senior credit facility allowable under indentures relating to the 7 7/8% Notes, 5 7/8% Notes and 5% Notes);

 

    currently outstanding indebtedness or debt incurred to refinance outstanding debt;

 

    inter-company debt between Lamar Media and its subsidiaries or between subsidiaries;

 

    certain purchase money indebtedness and capitalized lease obligations to acquire or lease property in the ordinary course of business that cannot exceed the greater of $50 million or 5% of Lamar Media’s net tangible assets; and

 

    additional debt not to exceed $50 million ($75 million under the respective indentures of the 7 7/8% Notes, 5 7/8% Notes and 5% Notes).

Restrictions under Senior Credit Facility. Lamar Media is required to comply with certain covenants and restrictions under the senior credit facility. If the Company fails to comply with these tests, the long term debt payments may be accelerated. At September 30, 2013 and currently, Lamar Media was in compliance with all such tests. We must be in compliance with the following financial ratios under our senior credit facility:

 

    a total holdings debt ratio, defined as total consolidated debt of Lamar Advertising Company and its restricted subsidiaries as of any date to EBITDA, as defined below, for the most recent four fiscal quarters then ended of 6.00 to 1.00;

 

    a senior debt ratio, defined as total consolidated senior debt of Lamar Media and its restricted subsidiaries to EBITDA, as defined below, for the most recent four fiscal quarters then ended of less than or equal to 3.25 to 1.00 and

 

    a fixed charges coverage ratio, defined as the ratio of EBITDA, as defined below, for the most recent four fiscal quarters to the sum of (1) the total payments of principal and interest on debt for such period, plus (2) capital expenditures made during such period, plus (3) income and franchise tax payments made during such period, plus (4) dividends, of greater than 1.05 to 1.

The definition of “EBITDA” under the senior credit facility is as follows: “EBITDA” means, for any period, operating income for the Company and its restricted subsidiaries (determined on a consolidated basis without duplication in accordance with GAAP) for such period (calculated before taxes, interest expense, depreciation, amortization and any other non-cash income or charges accrued for such period, one-time cash restructuring and cash severance changes in the fiscal year ending December 31, 2009 of up to $2.5 million aggregate amount, charges and expenses in connection with the credit facility transactions and the repurchase or redemption of our 7 1/4% Senior Subordinated Notes due 2013 and (except to the extent received or paid in cash by us or any of our restricted subsidiaries) income or loss attributable to equity in affiliates for such period) excluding any extraordinary and unusual gains or losses during such period and excluding the proceeds of any casualty events whereby insurance or other proceeds are received and certain dispositions not in the ordinary course. For purposes of calculating EBITDA, the effect on such calculation of any adjustments required under Statement of Accounting Standards No. 141R is excluded.

Excess Cash Flow Payments. Lamar Media may be required to make certain mandatory prepayments on loans outstanding under the senior credit facility that would be applied first to any outstanding term loans, commencing with the year ended December 31, 2010. These payments, if any, are determined annually and are calculated based on a percentage of Consolidated Excess Cash Flow (as defined in the senior credit facility) at the end of each fiscal year. This percentage is subject to reduction to 0% if the total holdings debt ratio, as described above, is less than or equal to 5.00 to 1.00 as of the last day of such fiscal year. The Company does not expect any required mandatory prepayment for fiscal 2013.

The Company believes that its current level of cash on hand, availability under its senior credit facility and future cash flows from operations are sufficient to meet its operating needs through fiscal 2013. All debt obligations are reflected on the Company’s balance sheet.

Uses of Cash

Outstanding Indebtedness. At September 30, 2013, the Company’s wholly owned subsidiary, Lamar Media, had approximately $345.4 million of outstanding 9 3/4% Notes with a stated maturity of April 1, 2014. Consequently these notes are reflected in current maturities of long-term debt. Under the terms of the senior credit facility, amounts outstanding under the facility would be subject to acceleration on December 31, 2013 if the 9 3/4% Notes have not yet been fully repaid. Lamar Media intends to redeem in full all of the 9 3/4% Notes in accordance with the terms of the indenture governing the Notes, using cash on hand and borrowings under its revolving credit facility.

 

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Capital Expenditures. Capital expenditures excluding acquisitions were approximately $77.7 million for the nine months ended September 30, 2013. We anticipate our 2013 total capital expenditures will be approximately $100 million.

Acquisitions. During the nine months ended September 30, 2013, the Company financed its acquisition activity of $83.8 million with cash on hand.

REIT Conversion

We will incur costs associated with our evaluation of a potential election to REIT status regardless of whether we ultimately succeed in converting to a REIT. For the nine months ended September 30, 2013, the Company has incurred approximately $1.7 million of REIT related expenses.

Lamar Media Corp.

The following is a discussion of the consolidated financial condition and results of operations of Lamar Media for the three and nine months ended September 30, 2013 and 2012. This discussion should be read in conjunction with the consolidated financial statements of Lamar Media and the related notes thereto.

RESULTS OF OPERATIONS

Nine Months ended September 30, 2013 compared to Nine Months ended September 30, 2012

Net revenues increased $53.9 million or 6.1% to $931.3 million for the nine months ended September 30, 2013 from $877.4 million for the same period in 2012. This increase was attributable primarily to an increase in billboard net revenues of $43.3 million or 5.5% over the prior period, an increase in logo sign revenue of $4.3 million, which represents an increase of 9.3% over the prior period, and a $6.4 million increase in transit revenue, which represents an increase of 13.2% over the prior period.

For the nine months ended September 30, 2013, there was a $21.6 million increase in net revenues as compared to acquisition-adjusted net revenue for the nine months ended September 30, 2012. The $21.6 million increase in revenue primarily consists of a $16.3 million increase in billboard revenue, a $2.4 million increase in logo revenue and a $2.9 million increase in transit revenue over the acquisition-adjusted net revenue for the comparable period in 2012. This increase in revenue represents an increase of 2.4% over the comparable period in 2012. See “Reconciliations” below.

Operating expenses, exclusive of depreciation and amortization and gain on sale of assets, increased $38.8 million or 7.6% to $548.2 million for the nine months ended September 30, 2013 from $509.4 million for the same period in 2012. There was a $14.5 million increase in direct advertising expense related to the operations of our outdoor advertising assets, an $18.9 million increase in general and administrative expenses and a $5.4 million increase in corporate expenses. The increase in general and administrative and corporate expenses includes an increase in non-cash compensation expense of $12.2 million as compared to the comparable period in 2012. Also included is approximately $1.7 million of expenses related to the Company’s evaluation of an election to real estate investment trust status.

For the nine months ended September 30, 2013, gain on sale of assets decreased $3.2 million as compared to the nine months ended September 30, 2012, primarily due to an asset swap transaction which occurred in June 2012.

Due to the above factors, operating income increased $11.7 million to $165.7 million for the nine months ended September 30, 2013 compared to $154.0 million for the same period in 2012.

During the nine months ended September 30, 2012, Lamar Media recognized a $32.0 million loss on debt extinguishment related to the settlement of the tender offer for Lamar Media’s then outstanding 6 5/8% Senior Subordinated Notes due 2015. Approximately $15.0 million of the loss was a non-cash expense attributable to the write off of unamortized debt issuance fees and unamortized discounts associated with the tendered notes.

Interest expense decreased approximately $4.8 million from $117.1 million for the nine months ended September 30, 2012 to $112.3 million for the nine months ended September 30, 2013, due to the reduction in total debt outstanding as well as a decrease in interest rates resulting from the Company’s refinancing transactions in 2012.

The increase in operating income, decrease in interest expense and decrease in loss on extinguishment of debt discussed above resulted in a $48.3 million increase in net income before income taxes. Lamar Media recorded income tax expense of $19.9 million for the nine months ended September 30, 2013. The effective tax rate for the nine months ended September 30, 2013 was 37.1%. The effective tax rate is lower than the statutory rates primarily due to an increase in the corporate income tax rate in Puerto Rico from 30% to 39%, which resulted in a change to the carrying value of net operating loss carry forwards during the period.

As a result of the above factors, Lamar Media recognized net income for the nine months ended September 30, 2013 of $33.7 million, as compared to net income of $2.8 million for the same period in 2012.

 

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Three Months ended September 30, 2013 compared to Three Months ended September 30, 2012

Net revenues increased $16.9 million or 5.5% to $323.2 million for the three months ended September 30, 2013 from $306.3 million for the same period in 2012. This increase was attributable primarily to an increase in billboard net revenues of $14.1 million or 5.2% over the prior period, an increase in logo revenue of $1.2 million or a 7.6% increase over the prior period and a $1.6 million increase in transit revenue over the prior period, which represents an increase of 8.7% over the prior period.

For the three months ended September 30, 2013, there was a $6.7 million increase in net revenues as compared to acquisition-adjusted net revenue for the three months ended September 30, 2012. The $6.7 million increase in revenue primarily consists of a $5.4 million increase in billboard revenue, a $0.5 million increase in logo revenue and a $0.8 million increase in transit revenue over the acquisition-adjusted net revenue for the comparable periods in 2012. This increase in revenue represents an increase of 2.1% over the comparable period in 2012. See “Reconciliations” below.

Operating expenses, exclusive of depreciation and amortization and gain on sale of assets, increased $11.9 million or 7.0% to $181.4 million for the three months ended September 30, 2013 from $169.5 million for the same period in 2012. There was a $5.8 million increase in direct operating expenses related to the operations of our outdoor advertising assets, a $4.9 million increase in general and administrative expenses and a $1.2 million increase in corporate expenses. The increase in each of corporate expenses and general and administrative expenses includes approximately $2.0 million in non-cash compensation and approximately $0.7 million related to the Company’s evaluation of an election to real estate investment trust status.

Depreciation and amortization expense decreased $0.7 million for three months ended September 30, 2013, as compared to the three months ended September 30, 2012.

Due to the above factors, operating income increased $5.8 million to $69.4 million for the three months ended September 30, 2013 compared to $63.6 million for the same period in 2012.

Interest expense decreased $0.8 million from $38.5 million for the three months ended September 30, 2012, to $37.7 million for the three months ended September 30, 2013.

The increase in operating income and decrease in interest expense described above resulted in an $8.5 million increase in net income before income taxes. This increase in net income resulted in an increase in income tax expense of $1.7 million for the three months ended September 30, 2013 over the same period in 2012. The effective tax rate for the three months ended September 30, 2013 was 42.0%.

As a result of the above factors, Lamar Media recognized net income for the three months ended September 30, 2013 of $18.4 million, as compared to net income of $11.6 million for the same period in 2012.

Reconciliations:

Because acquisitions occurring after December 31, 2011 (the “acquired assets”) have contributed to our net revenue results for the periods presented, we provide 2012 acquisition-adjusted net revenue, which adjusts our 2012 net revenue for the three and nine months ended September 30, 2012 by adding to it the net revenue generated by the acquired assets prior to our acquisition of these assets for the same time frame that those assets were owned in the three and nine months ended September 30, 2013. We provide this information as a supplement to net revenues to enable investors to compare periods in 2013 and 2012 on a more consistent basis without the effects of acquisitions. Management uses this comparison to assess how well we are performing within our existing core assets.

Acquisition-adjusted net revenue is not determined in accordance with GAAP. For this adjustment, we measure the amount of pre-acquisition revenue generated by the acquired assets during the period in 2012 that corresponds with the actual period we have owned the assets in 2013 (to the extent within the period to which this report relates). We refer to this adjustment as “acquisition net revenue.”

Reconciliations of 2012 reported net revenue to 2012 acquisition-adjusted net revenue for each of the three and nine month periods ended September 30, as well as a comparison of 2012 acquisition-adjusted net revenue to 2013 reported net revenue for each of the three and nine month periods ended September 30, are provided below:

Reconciliation of Reported Net Revenue to Acquisition-Adjusted Net Revenue

 

     Three months ended
September 30, 2012
     Nine months ended
September 30, 2012
 
     (in thousands)      (in thousands)  

Reported net revenue

   $ 306,286       $ 877,396   

Acquisition net revenue

     10,190         32,329   
  

 

 

    

 

 

 

Acquisition-adjusted net revenue

   $ 316,476       $ 909,725   
  

 

 

    

 

 

 

 

23


Table of Contents

Comparison of 2013 Reported Net Revenue to 2012 Acquisition-Adjusted Net Revenue

 

     Three months ended
September 30,
     Nine months ended
September 30,
 
     2013      2012      2013      2012  
     (in thousands)      (in thousands)  

Reported net revenue

   $ 323,184       $ 306,286       $ 931,347       $ 877,396   

Acquisition net revenue

     —           10,190         —           32,329   
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted totals

   $ 323,184       $ 316,476       $ 931,347       $ 909,725   
  

 

 

    

 

 

    

 

 

    

 

 

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Lamar Advertising Company and Lamar Media Corp.

The Company is exposed to interest rate risk in connection with variable rate debt instruments issued by its wholly owned subsidiary Lamar Media. The information below summarizes the Company’s interest rate risk associated with its principal variable rate debt instruments outstanding at September 30, 2013, and should be read in conjunction with Note 9 of the Notes to the Company’s Consolidated Financial Statements in the 2012 Combined Form 10-K.

Loans under Lamar Media’s senior credit facility bear interest at variable rates equal to the JPMorgan Chase Prime Rate or LIBOR plus the applicable margin. Because the JPMorgan Chase Prime Rate or LIBOR may increase or decrease at any time, the Company is exposed to market risk as a result of the impact that changes in these base rates may have on the interest rate applicable to borrowings under the senior credit facility. Increases in the interest rates applicable to borrowings under the senior credit facility would result in increased interest expense and a reduction in the Company’s net income.

At September 30, 2013, there was approximately $360.3 million of aggregate indebtedness outstanding under the senior credit facility, or approximately 16.8% of the Company’s outstanding long-term debt on that date, bearing interest at variable rates. The aggregate interest expense for the nine months ended September 30, 2013 with respect to borrowings under the senior credit facility was $9.2 million, and the weighted average interest rate applicable to borrowings under this credit facility during the nine months ended September 30, 2013 was 2.9%. Assuming that the weighted average interest rate was 200-basis points higher (that is 4.9% rather than 2.9%), then the Company’s nine months ended September 30, 2013 interest expense would have been approximately $5.6 million higher resulting in a $3.5 million decrease in the Company’s nine months ended September 30, 2013 net income.

The Company attempted to mitigate the interest rate risk resulting from its variable interest rate long-term debt instruments by issuing fixed rate, long-term debt instruments and maintaining a balance over time between the amount of the Company’s variable rate and fixed rate indebtedness. In addition, the Company has the capability under the senior credit facility to fix the interest rates applicable to its borrowings at an amount equal to LIBOR plus the applicable margin for periods of up to twelve months, (in certain cases, with the consent of the lenders), which would allow the Company to mitigate the impact of short-term fluctuations in market interest rates. In the event of an increase in interest rates, the Company may take further actions to mitigate its exposure. The Company cannot guarantee, however, that the actions that it may take to mitigate this risk will be feasible or if these actions are taken, that they will be effective.

ITEM 4. CONTROLS AND PROCEDURES

a) Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures.

The Company’s and Lamar Media’s management, with the participation of the principal executive officer and principal financial officer of the Company and Lamar Media, have evaluated the effectiveness of the design and operation of the Company’s and Lamar Media’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this quarterly report. Based on this evaluation, the principal executive officer and principal financial officer of the Company and Lamar Media concluded that these disclosure controls and procedures are effective and designed to ensure that the information required to be disclosed in the Company’s and Lamar Media’s reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the requisite time periods.

b) Changes in Internal Control Over Financial Reporting.

There was no change in the internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) of the Company and Lamar Media identified in connection with the evaluation of the Company’s and Lamar Media’s internal control performed during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s and Lamar Media’s internal control over financial reporting.

 

24


Table of Contents

PART II — OTHER INFORMATION

ITEM 6. EXHIBITS

The Exhibits filed as part of this report are listed on the Exhibit Index immediately following the signature page hereto, which Exhibit Index is incorporated herein by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

    LAMAR ADVERTISING COMPANY
DATED: November 6, 2013     BY:  

/S/ KEITH A. ISTRE

      Chief Financial and Accounting Officer and Treasurer
    LAMAR MEDIA CORP.
DATED: November 6, 2013     BY:  

/S/ KEITH A. ISTRE

      Chief Financial and Accounting Officer and Treasurer

 

25


Table of Contents

INDEX TO EXHIBITS

 

Exhibit Number

 

Description

  3.1   Restated Certificate of Incorporation of Lamar Advertising Company (the “Company”). Previously filed as Exhibit 3.1 to the Company’s Annual Report on Form 10-K (File No. 0-30242) filed on March 15, 2006 and incorporated herein by reference.
  3.2   Amended and Restated Certificate of Incorporation of Lamar Media Corp. (“Lamar Media”). Previously filed as Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2007 (File No. 0-30242) filed on May 10, 2007 and incorporated herein by reference.
  3.3   Amended and Restated Bylaws of the Company. Previously filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 0-30242) filed on August 27, 2007 and incorporated herein by reference.
  3.4   Amended and Restated Bylaws of Lamar Media. Previously filed as Exhibit 3.1 to Lamar Media’s Quarterly Report on Form 10-Q for the period ended September 30, 1999 (File No. 1-12407) filed on November 12, 1999 and incorporated herein by reference.
12(a)   Statement regarding computation of earnings to fixed charges for the Company. Filed herewith.
12(b)   Statement regarding computation of earnings to fixed charges for Lamar Media. Filed herewith.
31.1   Certification of the Chief Executive Officer of the Company and Lamar Media pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
31.2   Certification of the Chief Financial Officer of the Company and Lamar Media pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
32.1   Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.
101   The following materials from the combined Quarterly Report of the Company and Lamar Media on Form 10-Q for the quarter ended September 30, 2013, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of September 30, 2013 and December 31, 2012 of the Company and Lamar Media, (ii) Condensed Consolidated Statements of Operations for the three months and nine months ended September 30, 2013 and 2012 of the Company and Lamar Media, (iii) Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2013 and 2012 of the Company and Lamar Media, and (iv) Notes to Condensed Consolidated Financial Statements of the Company and Lamar Media.

 

26

EX-12.A 2 d599934dex12a.htm EX-12.A EX-12.A

Exhibit 12(a)

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES(1)

The following table sets forth Lamar Advertising’s ratio of earnings to fixed charges for the periods indicated.

 

     Years Ended December 31,      Nine Months Ended
September 30,
 

(dollars in thousands)

   2008      2009(2)     2010(2)     2011      2012      2013      2012  

Net income (loss)

   $ 2,162       $ (58,038   $ (40,102   $ 8,550       $ 9,821       $ 33,525       $ 2,602   

Income tax expense (benefit)

     9,349         (36,101     (23,469     6,623         9,476         19,790         2,403   

Fixed charges

     242,877         268,441        254,098        239,842         227,520         168,450         169,484   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Earnings

     254,388         174,302        190,527        255,015         246,817         221,765         174,489   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Interest expense, net

     169,150         196,520        185,681        170,524         156,762         112,143         116,811   

Rents under leases representative of an interest factor (1/3)

     73,362         71,556        68,052        68,953         70,393         56,034         52,400   

Preferred dividends

     365         365        365        365         365         273         273   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Fixed charges

     242,877         268,441        254,098        239,842         227,520         168,450         169,484   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Ratio of earnings to fixed charges

     1.0x         0.6x        0.7x        1.1x         1.1x         1.3x         1.0x   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  The ratio of earnings to fixed charges is defined as earnings divided by fixed charges. For purposes of this ratio, earnings is defined as net income (loss) before income taxes and cumulative effect of a change in accounting principle and fixed charges. Fixed charges is defined as the sum of interest expense, preferred stock dividends and the component of rental expense that we believe to be representative of the interest factor for those amounts.
(2)  For the years ended December 31, 2010 and 2009, earnings were insufficient to cover fixed charges by $63.6 million and $94.1 million, respectively.
EX-12.B 3 d599934dex12b.htm EX-12.B EX-12.B

Exhibit 12(b)

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES(1)

The following table sets forth Lamar Media’s ratio of earnings to fixed charges for the periods indicated.

 

     Years Ended December 31,      Nine Months Ended
September 30,
 

(dollars in thousands)

   2008      2009(2)     2010(2)     2011      2012      2013      2012  

Net income (loss)

   $ 10,360       $ (55,823   $ (40,198   $ 8,612       $ 10,046       $ 33,682       $ 2,752   

Income tax expense (benefit)

     14,487         (36,146     (23,213     6,919         9,587         19,894         2,526   

Fixed charges

     230,078         263,011        253,569        239,477         227,155         168,177         169,211   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Earnings

     254,925         171,042        190,158        255,008         246,788         221,753         174,489   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Interest expense, net

     156,716         191,455        185,517        170,524         156,762         112,143         116,811   

Rent under leases representative of an interest factor (1/3)

     73,362         71,556        68,052        68,953         70,393         56,034         52,400   

Preferred dividends

     0         0        0        0         0         0         0   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Fixed charges

     230,078         263,011        253,569        239,477         227,155         168,177         169,211   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Ratio of earnings to fixed charges

     1.1x         0.7x        0.7x        1.1x         1.1x         1.3x         1.0x   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  The ratio of earnings to fixed charges is defined as earnings divided by fixed charges. For purposes of this ratio, earnings is defined as net income (loss) before income taxes and cumulative effect of a change in accounting principle and fixed charges. Fixed charges is defined as the sum of interest expenses, preferred stock dividends and the component of rental expense that we believe to be representative of the interest factor for those amounts.
(2)  For the years ended December 31, 2010 and 2009, earnings were insufficient to cover fixed charges by $63.4 million $92.0 million, respectively.
EX-31.1 4 d599934dex311.htm EX-31.1 EX-31.1

Exhibit 31.1

CERTIFICATION

I, Sean E. Reilly, certify that:

 

1. I have reviewed this combined quarterly report on Form 10-Q of Lamar Advertising Company and Lamar Media Corp.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrants as of, and for, the periods presented in this report;

 

4. The registrants’ other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrants and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrants, including their consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c) Evaluated the effectiveness of the registrants’ disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

  (d) Disclosed in this report any change in the registrants’ internal control over financial reporting that occurred during the registrants’ most recent fiscal quarter (the registrants’ fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants’ internal control over financial reporting; and

 

5. The registrants’ other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants’ auditors and the audit committee of the registrants’ board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants’ abilities to record, process, summarize and report financial information; and

 

  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants’ internal control over financial reporting.

Date: November 6, 2013

 

/s/ Sean E. Reilly

Sean E. Reilly

Chief Executive Officer, Lamar Advertising Company

Chief Executive Officer, Lamar Media Corp.

EX-31.2 5 d599934dex312.htm EX-31.2 EX-31.2

Exhibit 31.2

CERTIFICATION

I, Keith A. Istre, certify that:

 

1. I have reviewed this combined quarterly report on Form 10-Q of Lamar Advertising Company and Lamar Media Corp.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrants as of, and for, the periods presented in this report;

 

4. The registrants’ other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrants and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrants, including their consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c) Evaluated the effectiveness of the registrants’ disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

  (d) Disclosed in this report any change in the registrants’ internal control over financial reporting that occurred during the registrants’ most recent fiscal quarter (the registrants’ fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants’ internal control over financial reporting; and

 

5. The registrants’ other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants’ auditors and the audit committee of the registrants’ board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants’ abilities to record, process, summarize and report financial information; and

 

  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants’ internal control over financial reporting.

Date: November 6, 2013

 

/s/ Keith A. Istre

Keith A. Istre

Chief Financial Officer, Lamar Advertising Company

Chief Financial Officer, Lamar Media Corp.

EX-32.1 6 d599934dex321.htm EX-32.1 EX-32.1

Exhibit 32.1

LAMAR ADVERTISING COMPANY

LAMAR MEDIA CORP.

Certification of Periodic Financial Report

Pursuant to 18 U.S.C. Section 1350

as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Each of the undersigned officers of Lamar Advertising Company (“Lamar”) and Lamar Media Corp. (“Media”) certifies, to his knowledge and solely for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the combined Quarterly Report on Form 10-Q of Lamar and Media for the nine months ended September 30, 2013 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in the combined Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Lamar and Media.

 

Dated: November 6, 2013     By:  

/s/ Sean E. Reilly

      Sean E. Reilly
      Chief Executive Officer, Lamar Advertising Company
      Chief Executive Officer, Lamar Media Corp.
Dated: November 6, 2013     By:  

/s/ Keith A. Istre

      Keith A. Istre
      Chief Financial Officer, Lamar Advertising Company
      Chief Financial Officer, Lamar Media Corp.
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The total holdings debt ratio was less than 5.75 to 1 and Lamar Media's senior debt ratio was less than 3.25 to 1 and its senior leverage ratio was less than 3.0 to 1; therefore, transfers to Lamar Advertising were not subject to any additional restrictions under the senior credit facility or pursuant to the indenture governing the 9 3/4% senior notes. 5.75 3.0 253536000 5.75 17358000 100 100 3000 0.01 122078000 1748980000 1866423000 2636769000 16111000 595527000 4973000 20109000 884902000 9000000 21604000 -1756840000 63504000 3607063000 159611000 2722161000 197934000 393834000 461182000 1492248000 38362000 60133000 3607063000 182165000 179434000 3009498000 441299000 30897000 28390000 11060000 1143075000 0.05 535000000 2080000 0.05875 500000000 0.0975 345445000 0.07875 400000000 360289000 6973000 0 3.25 3.25 15500000 353514 461406000 491982000 1082466000 1492023000 62840000 63896000 13430000 14008000 14610365 14610365 37500000 0.001 15000 80028599 97245234 175000000 0.001 97000 0 10000 638 0 63.80 5720 5720 0.001 5720 63.80 33503000 33377000 17119205 99461000 2127720000 1760090000 2432518000 13539000 197457000 5978000 16388000 874833000 7615000 25867000 -674143000 51323000 1540879000 3514030000 107973000 2160854000 2639197000 189659000 33134000 301235000 1485150000 41187000 41132000 3514030000 58911000 159829000 2940449000 468312000 2009191000 37787000 30546000 1738686000 10817000 889631000 1180359000 1706875000 253536000 100 100 3000 0.01 96860000 2127720000 1760090000 2606157000 13539000 194856000 5978000 16388000 825813000 7615000 16579000 -1786322000 51323000 3495664000 141228000 2669851000 189659000 33134000 300735000 1474998000 35901000 41132000 3495664000 58411000 159829000 2940449000 467837000 35834000 30546000 10817000 1180359000 535000000 2069000 500000000 0.0975 339121000 400000000 384664000 358950 455549000 482883000 1009631000 1449181000 62566000 63519000 13133000 13608000 14910365 14910365 37500000 0.001 15000 78963663 96082868 175000000 0.001 96000 0 10000 638 0 63.80 5720 5720 0.001 5720 63.80 0.65 1.00 489000000 1.05875 1.01 0.35 LAMR LAMAR ADVERTISING CO/NEW false Large Accelerated Filer 2013 10-Q 2013-09-30 0001090425 --12-31 Q3 <div> <p style="MARGIN-TOP: 18pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> 2. <u>Stock-Based Compensation</u></p> <p style="MARGIN-TOP: 6pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> <i>Equity Incentive Plan.</i> Lamar Advertising&#x2019;s 1996 Equity Incentive Plan, as amended, (the &#x201C;Incentive Plan&#x201D;) has reserved 15.5&#xA0;million shares of Class&#xA0;A common stock for issuance to directors and employees, including shares underlying granted options and common stock reserved for issuance under its performance-based incentive program. Options granted under the plan expire ten years from the grant date with vesting terms ranging from three to five years and include 1) options that vest in one-fifth increments beginning on the grant date and continuing on each of the first four anniversaries of the grant date and 2) options that cliff-vest on the fifth anniversary of the grant date. All grants are made at fair market value based on the closing price of our Class&#xA0;A common stock as reported on the NASDAQ Global Select Market on the date of grant.</p> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> The number of shares of Class&#xA0;A common stock available under the Incentive Plan was increased by 2.5&#xA0;million shares pursuant to an amendment to the Incentive Plan adopted by our board of directors on February&#xA0;28, 2013 and approved by our stockholders at the Company&#x2019;s 2013 Annual Meeting of Stockholders on May&#xA0;23, 2013.</p> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> We use a Black-Scholes-Merton option pricing model to estimate the fair value of share-based awards. The Black-Scholes-Merton option pricing model incorporates various and highly subjective assumptions, including expected term and expected volatility. The Company granted options for an aggregate of 2,043,791 shares of its Class&#xA0;A common stock during the nine months ended September&#xA0;30, 2013.</p> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> <i>Stock Purchase Plan.</i> In 2009 our board of directors adopted a new employee stock purchase plan, the 2009 Employee Stock Purchase Plan or 2009 ESPP, which was approved by our shareholders on May&#xA0;28, 2009. The 2009 ESPP reserved 588,154 shares of Class&#xA0;A common stock for issuance to our employees, which included 88,154 shares of Class&#xA0;A common stock that had been available for issuance under our 2000 Employee Stock Purchase Plan or 2000 ESPP. The 2000 ESPP was terminated following the issuance of all shares that were subject to the offer that commenced under the 2000 ESPP on January&#xA0;1, 2009 and ended June&#xA0;30, 2009. The terms of the 2009 ESPP are substantially the same as the 2000 ESPP.</p> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> The number of shares of Class&#xA0;A common stock available under the 2009 ESPP was automatically increased by 78,963 shares on January&#xA0;1, 2013 pursuant to the automatic increase provisions of the 2009 ESPP.</p> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> The following is a summary of the 2009 ESPP share activity for the nine months ended September&#xA0;30, 2013:</p> <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" border="0" cellspacing="0" cellpadding="0" width="68%" align="center"> <tr> <td width="88%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" align="center"><b>Shares</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Available for future purchases, January&#xA0;1, 2013</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">358,950</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Additional shares reserved under 2009 ESPP</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">78,963</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Purchases</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(84,399</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Available for future purchases, September&#xA0;30, 2013</p> </td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">353,514</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> <i>Performance-based compensation.</i> Unrestricted shares of our Class&#xA0;A common stock may be awarded to key officers, employees and directors under our 1996 Equity Incentive Plan. The number of shares to be issued, if any, will be dependent on the level of achievement of performance measures for key officers and employees, as determined by the Company&#x2019;s Compensation Committee based on our 2013 results. Any shares issued based on the achievement of performance goals will be issued in the first quarter of 2014. The shares subject to these awards can range from a minimum of 0% to a maximum of 100% of the target number of shares depending on the level at which the goals are attained. For the nine months ended September&#xA0;30, 2013, the Company has recorded $7,757 as non-cash compensation expense related to performance-based awards. In addition, each of our non-employee directors automatically receive upon election or re-election a restricted stock award of our Class&#xA0;A common stock. These awards vest 50% on grant date and 50% on the last day of each director&#x2019;s one year term. The Company recorded $332 non-cash compensation expense related to these awards for the nine months ended September&#xA0;30, 2013.</p> </div> <div> <p style="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> 5. <u>Goodwill and Other Intangible Assets</u></p> <p style="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> The following is a summary of intangible assets at September&#xA0;30, 2013 and December&#xA0;31, 2012.</p> <p style="font-size:12pt;margin-top:0pt;margin-bottom:0pt"> &#xA0;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" align="center"> <tr> <td width="53%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr style="font-family:Times New Roman; font-size:8pt"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" rowspan="2" align="center" style="border-bottom:1.00pt solid #000000"><b>Estimated</b><br /> <b>Life<br /> (Years)</b></td> <td valign="bottom" rowspan="2">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="6" align="center" style="border-bottom:1.00pt solid #000000"><b>September&#xA0;30, 2013</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="6" align="center" style="border-bottom:1.00pt solid #000000"><b>December&#xA0;31, 2012</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="font-family:Times New Roman; font-size:8pt"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1.00pt solid #000000"><b>Gross&#xA0;Carrying<br /> Amount</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1.00pt solid #000000"><b>Accumulated<br /> Amortization</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1.00pt solid #000000"><b>Gross&#xA0;Carrying<br /> Amount</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1.00pt solid #000000"><b>Accumulated<br /> Amortization</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr bgcolor="#CCEEFF" style="font-family:Times New Roman; font-size:10pt"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"> Customer lists and contracts</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">7&#x2014;10</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">491,982</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">461,406</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">482,883</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">455,549</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> </tr> <tr style="font-family:Times New Roman; font-size:10pt"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"> Non-competition agreements</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">3&#x2014;15</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">63,896</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">62,840</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">63,519</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">62,566</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> </tr> <tr bgcolor="#CCEEFF" style="font-family:Times New Roman; font-size:10pt"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"> Site locations</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">15</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">1,492,023</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">1,082,466</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">1,449,181</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">1,009,631</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> </tr> <tr style="font-family:Times New Roman; font-size:10pt"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"> Other</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">5&#x2014;15</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">14,008</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">13,430</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">13,608</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">13,133</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> </tr> <tr style="font-size:1px;"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1.00px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1.00px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1.00px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1.00px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1.00px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1.00px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1.00px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1.00px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF" style="font-family:Times New Roman; font-size:10pt"> <td valign="top"></td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,061,909</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,620,142</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,009,191</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,540,879</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> </tr> <tr style="font-family:Times New Roman; font-size:10pt"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"> Unamortizable intangible assets:</p> </td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF" style="font-family:Times New Roman; font-size:10pt"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"> Goodwill</p> </td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,755,936</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">253,536</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,738,686</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">253,536</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> </tr> </table> </div> 0.35 Vesting terms ranging from three to five years and include 1) options that vest in one-fifth increments beginning on the grant date and continuing on each of the first four anniversaries of the grant date and 2) options that cliff-vest on the fifth anniversary of the grant date. 94692129000 409500000 0.35 0.36 <div> <p style="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> 10. <u>Fair Value of Financial Instruments</u></p> <p style="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> At September&#xA0;30, 2013 and December&#xA0;31, 2012, the Company&#x2019;s financial instruments included cash and cash equivalents, marketable securities, accounts receivable, investments, accounts payable and borrowings. The fair values of cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings and current portion of long-term debt approximated carrying values because of the short-term nature of these instruments. Investments are reported at fair values. Fair values for investments held at cost are not readily available, but are estimated to approximate fair value. The estimated fair value of the Company&#x2019;s long term debt (including current maturities) was $2,149,281, which exceeded both the gross and carrying amounts of $2,147,369 and $2,142,814, respectively, as of September&#xA0;30, 2013.</p> </div> <div> <p style="MARGIN-TOP: 18pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> 6. <u>Asset Retirement Obligations</u></p> <p style="MARGIN-TOP: 6pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> The Company&#x2019;s asset retirement obligations include the costs associated with the removal of its structures, resurfacing of the land and retirement cost, if applicable, related to the Company&#x2019;s outdoor advertising portfolio. The following table reflects information related to our asset retirement obligations:</p> <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" border="0" cellspacing="0" cellpadding="0" width="68%" align="center"> <tr> <td width="86%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Balance at December&#xA0;31, 2012</p> </td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#xA0;189,659</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Additions to asset retirement obligations</p> </td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2,392</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Accretion expense</p> </td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">8,408</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Liabilities settled</p> </td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(2,525</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Balance at September&#xA0;30, 2013</p> </td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">197,934</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> 1. <u>Significant Accounting Policies</u></p> <p style="MARGIN-TOP: 6pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> The information included in the foregoing interim condensed consolidated financial statements is unaudited. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the Company&#x2019;s financial position and results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the entire year. These interim condensed consolidated financial statements should be read in conjunction with the Company&#x2019;s consolidated financial statements and the notes thereto included in the 2012 Combined Form 10-K. Subsequent events, if any, are evaluated through the date on which the financial statements are issued.</p> </div> <div> <p style="MARGIN-TOP: 18pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> 11. <u>Non-Cash Financing and Investing Activities</u></p> <p style="MARGIN-TOP: 6pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> For the period ended September&#xA0;30, 2012 the Company had non-cash investing activity of $3,098 related to acquisitions of outdoor advertising assets. There were no significant non-cash investing or financing activities for the nine months ended September&#xA0;30, 2013.</p> </div> <div> <p style="MARGIN-TOP: 0pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> 9. <u>Long-term Debt</u></p> <p style="MARGIN-TOP: 6pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> Long-term debt consists of the following at September&#xA0;30, 2013 and December&#xA0;31, 2012:</p> <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" border="0" cellspacing="0" cellpadding="0" width="76%" align="center"> <tr> <td width="72%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" align="center"><b>September&#xA0;30,</b><br /> <b>2013</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" align="center"><b>December&#xA0;31,</b><br /> <b>2012</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Senior Credit Facility</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">360,289</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">384,664</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> 7 7/8% Senior Subordinated Notes</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">400,000</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">400,000</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> 5 7/8% Senior Subordinated Notes</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">500,000</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">500,000</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> 5% Senior Subordinated Notes</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">535,000</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">535,000</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> 9 3/4% Senior Notes</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">345,445</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">339,121</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Other notes with various rates and terms</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2,080</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2,069</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2,142,814</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;</font></td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2,160,854</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Less current maturities</p> </td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(393,834</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;</font></td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(33,134</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Long-term debt, excluding current maturities</p> </td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,748,980</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,127,720</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-TOP: 18pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> <i><u>9 3/4% Senior Notes</u></i></p> <p style="MARGIN-TOP: 6pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> On March&#xA0;27, 2009, Lamar Media issued $350,000 in aggregate principal amount ($314,927 gross proceeds) of 9 3/4% Senior Notes due 2014 (the &#x201C;Senior Notes&#x201D;). The institutional private placement resulted in net proceeds to Lamar Media of approximately $307,489. The Senior Notes mature on April&#xA0;1, 2014 and have interest at a rate of 9 3/4%&#xA0;per annum, which is payable semi-annually on April&#xA0;1 and October&#xA0;1 of each year, beginning October&#xA0;1, 2009. Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months. The terms of the Senior Notes will, among other things, limit Lamar Media&#x2019;s and its restricted subsidiaries&#x2019; ability to (i)&#xA0;incur additional debt and issue preferred stock; (ii)&#xA0;make certain distributions, investments and other restricted payments; (iii)&#xA0;create certain liens; (iv)&#xA0;enter into transactions with affiliates; (v)&#xA0;have the restricted subsidiaries make payments to Lamar Media; (vi)&#xA0;merge, consolidate or sell substantially all of Lamar Media&#x2019;s or the restricted subsidiaries&#x2019; assets; and (vii)&#xA0;sell assets. These covenants are subject to a number of exceptions and qualifications.</p> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> At any time prior to April&#xA0;1, 2014, Lamar Media may redeem some or all of the Senior Notes at a price equal to 100% of the principal amount plus a make-whole premium. In addition, if the Company or Lamar Media undergoes a change of control, Lamar Media may be required to make an offer to purchase each holder&#x2019;s Senior Notes at a price equal to 101% of the principal amount of the Senior Notes, plus accrued and unpaid interest (including additional interest, if any), up to but not including the repurchase date.</p> <p style="MARGIN-TOP: 18pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> <i><u>7 7/8% Senior Subordinated Notes</u></i></p> <p style="MARGIN-TOP: 6pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> On April&#xA0;22, 2010, Lamar Media issued $400,000 in aggregate principal amount of 7 7/8% Senior Subordinated Notes due 2018 (the &#x201C;7 7/8% Notes&#x201D;). The institutional private placement resulted in net proceeds to Lamar Media of approximately $392,000.</p> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> At any time prior to April&#xA0;15, 2014, Lamar Media may redeem some or all of the 7&#xA0;7/8% Notes at a price equal to 100% of the principal amount plus a make-whole premium. On or after April&#xA0;15, 2014, Lamar Media may redeem the 7&#xA0;7/8% Notes, in whole or part, in cash at redemption prices specified in the 7&#xA0;7/8% Notes. In addition, if the Company or Lamar Media undergoes a change of control, Lamar Media may be required to make an offer to purchase each holder&#x2019;s 7&#xA0;7/8% Notes at a price equal to 101% of the principal amount of the 7&#xA0;7/8% Notes, plus accrued and unpaid interest, up to but not including the repurchase date.</p> <p style="MARGIN-TOP: 18pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> <i><u>5 7/8% Senior Subordinated Notes</u></i></p> <p style="MARGIN-TOP: 6pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> On February&#xA0;9, 2012, Lamar Media completed an institutional private placement of $500,000 aggregate principal amount of 5 7/8% Senior Subordinated Notes, due 2022 (the &#x201C;5 7/8% Notes&#x201D;). The institutional private placement resulted in net proceeds to Lamar Media of approximately $489,000.</p> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> Lamar Media may redeem up to 35% of the aggregate principal amount of the 5 7/8% Notes, at any time and from time to time, at a price equal to 105.875% of the aggregate principal amount so redeemed, plus accrued and unpaid interest thereon, with the net cash proceeds of certain public equity offerings completed before February&#xA0;1, 2015, provided that following the redemption, at least 65% of the 5 7/8% Notes that were originally issued remain outstanding. At any time prior to February&#xA0;1, 2017, Lamar Media may redeem some or all of the 5 7/8% Notes at a price equal to 100% of the aggregate principal amount plus a make-whole premium. On or after February&#xA0;1, 2017, Lamar Media may redeem the 5 7/8% Notes, in whole or in part, in cash at redemption prices specified in the 5 7/8%</p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; FONT-SIZE: 1px"> &#xA0;</p> <p style="MARGIN-TOP: 0pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> Notes. In addition, if the Company or Lamar Media undergoes a change of control, Lamar Media may be required to make an offer to purchase each holder&#x2019;s 5 7/8% Notes at a price equal to 101% of the principal amount of the 5 7/8% Notes, plus accrued and unpaid interest, up to but not including the repurchase date.</p> <p style="MARGIN-TOP: 18pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> <i><u>5% Senior Subordinated Notes</u></i></p> <p style="MARGIN-TOP: 6pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> On October&#xA0;30, 2012, Lamar Media completed an institutional private placement of $535,000 aggregate principal amount of 5% Senior Subordinated Notes due 2023 (the &#x201C;5% Notes&#x201D;). The institutional private placement resulted in net proceeds to Lamar Media of approximately $527,100.</p> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> Lamar Media may redeem up to 35% of the aggregate principal amount of the 5% Notes, at any time and from time to time, at a price equal to 105% of the aggregate principal amount so redeemed, plus accrued and unpaid interest thereon, with the net cash proceeds of certain public equity offerings completed before November&#xA0;1, 2015, provided that following the redemption, at least 65% of the 5% Notes that were originally issued remain outstanding. At any time prior to May&#xA0;1, 2018, Lamar Media may redeem some or all of the 5% Notes at a price equal to 100% of the aggregate principal amount plus a make-whole premium. On or after May&#xA0;1, 2018, Lamar Media may redeem the 5% Notes, in whole or in part, in cash at redemption prices specified in the 5% Notes. In addition, if the Company or Lamar Media undergoes a change of control, Lamar Media may be required to make an offer to purchase each holder&#x2019;s 5% Notes at a price equal to 101% of the principal amount of the 5% Notes, plus accrued and unpaid interest, up to but not including the repurchase date.</p> <p style="MARGIN-TOP: 18pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> <i><u>2010 Senior Credit Facility</u></i></p> <p style="MARGIN-TOP: 6pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> On February&#xA0;9, 2012, Lamar Media entered into a restatement agreement with respect to its existing senior credit facility in order to fund a new $100,000 Term loan A facility and to make certain covenant changes to the senior credit facility, which was entered into on April&#xA0;28, 2010, as amended on June&#xA0;11, 2010,&#xA0;November&#xA0;18, 2010 and February&#xA0;9, 2012, and further amended on October&#xA0;24, 2013 for which JPMorgan Chase Bank, N.A. serves as administrative agent (the &#x201C;senior credit facility&#x201D;). The senior credit facility consists of a $250,000 revolving credit facility, a $270,000 term loan A-1 facility, a $30,000 term loan A-2 facility, a $100,000 term loan A-3 facility, a $575,000 term loan B facility and a $300,000 incremental facility, which may be increased by up to an additional $200,000 based upon our satisfaction of a senior debt ratio test (defined as total consolidated senior debt of Lamar Media and its restricted subsidiaries to EBITDA, as defined in the senior credit facility, for the most recent four fiscal quarters then ended) of less than or equal to 3.25 to 1. Lamar Media is the borrower under the senior credit facility, except with respect to the $30,000 term loan A-2 facility for which Lamar Media&#x2019;s wholly owned subsidiary, Lamar Advertising of Puerto Rico, Inc. is the borrower. We may also from time to time designate additional wholly owned subsidiaries as subsidiary borrowers under the incremental loan facility that can borrow up to $110,000 of the incremental facility. Incremental loans may be in the form of additional term loan tranches or increases in the revolving credit facility. Our lenders have no obligation to make additional loans to us, or any designated subsidiary borrower, under the incremental facility, but may enter into such commitments in their sole discretion.</p> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> The remaining quarterly amortizations of the Term loan facilities as of September&#xA0;30, 2013 is as follows:</p> <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" border="0" cellspacing="0" cellpadding="0" width="92%" align="center"> <tr> <td width="63%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"> <b>Term&#xA0;A-1</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"> <b>Term&#xA0;A-2</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"> <b>Term&#xA0;A-3</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Term B</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> December&#xA0;31, 2013 &#x2013; March&#xA0;31, 2014</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">6,750</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">750</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">625</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">57.4</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> June&#xA0;30, 2014 &#x2014; December&#xA0;31, 2014</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">13,500</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,500</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">625</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">57.4</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> March&#xA0;31, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">13,500</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,500</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,250</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">57.4</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> June&#xA0;30, 2015 &#x2014; September&#xA0;30, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">37,125</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">4,125</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,250</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">57.4</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> December&#xA0;31, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">74,250</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">8,250</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,250</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">57.4</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> March&#xA0;31, 2016 &#x2014; September&#xA0;30, 2016</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,250</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">57.4</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> December&#xA0;31, 2016</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,250</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">21,474.7</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> March&#xA0;31, 2017&#x2014;&#xA0;June&#xA0;30, 2017</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">21,250</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> August&#xA0;9, 2017</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">42,500</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> </tr> </table> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> In addition to the required amortization payments with respect to our Term loan facilities, Lamar Media may be required to make certain mandatory prepayments on loans outstanding under the senior credit facility that would be applied first to any outstanding term loans. These payments, if any, will be calculated based on a percentage of Consolidated Excess Cash Flow (as defined in the senior credit facility) at the end of each fiscal year. For fiscal years ending or after December&#xA0;31, 2012, this percentage is subject to reduction to 0% if the total holdings debt ratio (as defined in the senior credit facility) is less than or equal to 5.00 to 1.00 as of the last day of such fiscal year.</p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; FONT-SIZE: 1px"> &#xA0;</p> <p style="MARGIN-TOP: 0pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> As of September&#xA0;30, 2013, there were no amounts outstanding under the revolving senior facility. The revolving facility terminates April&#xA0;28, 2015. Availability under the revolving facility is reduced by the amount of any letters of credit outstanding. Lamar Media had $6,973 letters of credit outstanding as of September&#xA0;30, 2013 resulting in $243,027 of availability under its revolving facility. Revolving credit loans may be requested under the revolving credit facility at any time prior to maturity. The loans bear interest, at Lamar Media&#x2019;s option, at the LIBOR Rate or JPMorgan Chase Prime Rate plus applicable margins, such margins being set from time to time based on Lamar Media&#x2019;s ratio of debt to trailing twelve month EBITDA, as defined in the senior credit facility.</p> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> The terms of Lamar Media&#x2019;s senior credit facility and the indentures relating to Lamar Media&#x2019;s outstanding notes restrict, among other things, the ability of Lamar Advertising and Lamar Media to:</p> <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; FONT-SIZE: 6pt"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%">&#xA0;</td> <td valign="top" width="2%" align="left">&#x2022;</td> <td valign="top" width="1%">&#xA0;</td> <td valign="top" align="left">dispose of assets;</td> </tr> </table> <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; FONT-SIZE: 6pt"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%">&#xA0;</td> <td valign="top" width="2%" align="left">&#x2022;</td> <td valign="top" width="1%">&#xA0;</td> <td valign="top" align="left">incur or repay debt;</td> </tr> </table> <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; FONT-SIZE: 6pt"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%">&#xA0;</td> <td valign="top" width="2%" align="left">&#x2022;</td> <td valign="top" width="1%">&#xA0;</td> <td valign="top" align="left">create liens;</td> </tr> </table> <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; FONT-SIZE: 6pt"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%">&#xA0;</td> <td valign="top" width="2%" align="left">&#x2022;</td> <td valign="top" width="1%">&#xA0;</td> <td valign="top" align="left">make investments; and</td> </tr> </table> <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; FONT-SIZE: 6pt"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%">&#xA0;</td> <td valign="top" width="2%" align="left">&#x2022;</td> <td valign="top" width="1%">&#xA0;</td> <td valign="top" align="left">pay dividends.</td> </tr> </table> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> Lamar Media&#x2019;s ability to make distributions to Lamar Advertising is also restricted under the terms of these agreements. Under Lamar Media&#x2019;s senior credit facility the Company must maintain specified financial ratios and levels including:</p> <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; FONT-SIZE: 6pt"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%">&#xA0;</td> <td valign="top" width="2%" align="left">&#x2022;</td> <td valign="top" width="1%">&#xA0;</td> <td valign="top" align="left">a fixed charges ratio;</td> </tr> </table> <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; FONT-SIZE: 6pt"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%">&#xA0;</td> <td valign="top" width="2%" align="left">&#x2022;</td> <td valign="top" width="1%">&#xA0;</td> <td valign="top" align="left">a senior debt ratio; and</td> </tr> </table> <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; FONT-SIZE: 6pt"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%">&#xA0;</td> <td valign="top" width="2%" align="left">&#x2022;</td> <td valign="top" width="1%">&#xA0;</td> <td valign="top" align="left">a total holdings debt ratio.</td> </tr> </table> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> Lamar Advertising and Lamar Media were in compliance with all applicable terms under the indentures governing Lamar Media&#x2019;s outstanding notes and the applicable senior credit agreement provisions during the periods presented.</p> </div> 0.36 <div> <p style="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> The following is a summary of intangible assets at September&#xA0;30, 2013 and December&#xA0;31, 2012.</p> <p style="font-size:12pt;margin-top:0pt;margin-bottom:0pt"> &#xA0;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" align="center"> <tr> <td width="53%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr style="font-family:Times New Roman; font-size:8pt"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" rowspan="2" align="center" style="border-bottom:1.00pt solid #000000"><b>Estimated</b><br /> <b>Life<br /> (Years)</b></td> <td valign="bottom" rowspan="2">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="6" align="center" style="border-bottom:1.00pt solid #000000"><b>September&#xA0;30, 2013</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="6" align="center" style="border-bottom:1.00pt solid #000000"><b>December&#xA0;31, 2012</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="font-family:Times New Roman; font-size:8pt"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1.00pt solid #000000"><b>Gross&#xA0;Carrying<br /> Amount</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1.00pt solid #000000"><b>Accumulated<br /> Amortization</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1.00pt solid #000000"><b>Gross&#xA0;Carrying<br /> Amount</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1.00pt solid #000000"><b>Accumulated<br /> Amortization</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr bgcolor="#CCEEFF" style="font-family:Times New Roman; font-size:10pt"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"> Customer lists and contracts</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">7&#x2014;10</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">491,982</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">461,406</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">482,883</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">455,549</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> </tr> <tr style="font-family:Times New Roman; font-size:10pt"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"> Non-competition agreements</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">3&#x2014;15</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">63,896</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">62,840</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">63,519</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">62,566</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> </tr> <tr bgcolor="#CCEEFF" style="font-family:Times New Roman; font-size:10pt"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"> Site locations</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">15</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">1,492,023</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">1,082,466</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">1,449,181</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">1,009,631</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> </tr> <tr style="font-family:Times New Roman; font-size:10pt"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"> Other</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">5&#x2014;15</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">14,008</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">13,430</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">13,608</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">13,133</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> </tr> <tr style="font-size:1px;"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1.00px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1.00px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1.00px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1.00px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1.00px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1.00px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1.00px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1.00px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF" style="font-family:Times New Roman; font-size:10pt"> <td valign="top"></td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,061,909</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,620,142</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,009,191</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,540,879</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> </tr> <tr style="font-family:Times New Roman; font-size:10pt"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"> Unamortizable intangible assets:</p> </td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF" style="font-family:Times New Roman; font-size:10pt"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"> Goodwill</p> </td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,755,936</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">253,536</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,738,686</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">253,536</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> The following is a summary of the preliminary allocation of the acquisition costs in the above transactions.</p> <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" border="0" cellspacing="0" cellpadding="0" width="68%" align="center"> <tr> <td width="88%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" align="center"><b>Total</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Property, plant and equipment</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">14,513</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Goodwill</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">17,358</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Site locations</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">43,493</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Non-competition agreements</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">380</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Customer lists and contracts</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">9,201</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Other asset</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">961</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Current liabilities</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(2,130</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"></td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">83,776</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-TOP: 0pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> 3. <u>Acquisitions</u></p> <p style="MARGIN-TOP: 6pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> During the nine months ended September&#xA0;30, 2013, the Company completed several acquisitions of outdoor advertising assets for a total purchase price of approximately $83,776 in cash.</p> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> Each of these acquisitions was accounted for under the acquisition method of accounting, and, accordingly, the accompanying consolidated financial statements include the results of operations of each acquired entity from the date of acquisition. The acquisition costs have been allocated to assets acquired and liabilities assumed based on preliminary fair value estimates at the dates of acquisition. The allocations are pending final determination of the fair value of certain assets and liabilities. The following is a summary of the preliminary allocation of the acquisition costs in the above transactions.</p> <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" border="0" cellspacing="0" cellpadding="0" width="68%" align="center"> <tr> <td width="88%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" align="center"><b>Total</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Property, plant and equipment</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">14,513</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Goodwill</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">17,358</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Site locations</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">43,493</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Non-competition agreements</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">380</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Customer lists and contracts</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">9,201</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Other asset</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">961</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Current liabilities</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(2,130</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"></td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">83,776</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> Summarized below are certain unaudited pro forma statements of operations data for the three and nine months ended September&#xA0;30, 2013 and September&#xA0;30, 2012 as if each of the above acquisitions and the acquisitions occurring in 2012, which were fully described in the 2012 Combined Form 10-K, had been consummated as of January&#xA0;1, 2012. This pro forma information does not purport to represent what the Company&#x2019;s results of operations actually would have been had such transactions occurred on the date specified or to project the Company&#x2019;s results of operations for any future periods.</p> <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" border="0" cellspacing="0" cellpadding="0" width="92%" align="center"> <tr> <td width="64%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="6" align="center"><b>Three months ended<br /> September 30,</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="6" align="center"><b>Nine months ended<br /> September 30,</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" align="center"><b>2013</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" align="center"><b>2012</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" align="center"><b>2013</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" align="center"><b>2012</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Pro forma net revenues</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">324,941</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">317,586</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">939,747</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">916,282</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Pro forma net income applicable to common stock</p> </td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">18,504</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">12,142</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">34,409</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">3,878</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Pro forma net income per common share&#x2014;basic</p> </td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.20</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.13</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.36</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.04</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Pro forma net income per common share&#x2014;diluted</p> </td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.20</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.13</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.36</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.04</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> 294684000 <div> <p style="MARGIN-TOP: 18pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> 12. <u>Subsequent Events</u></p> <p style="MARGIN-TOP: 6pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> On November&#xA0;4, 2013, Lamar Media announced its intent to redeem in full all $350,000 in aggregate principal amount of its 9 3/4% Senior Notes due 2014 (the &#x201C;Notes&#x201D;). 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FONT-SIZE: 8pt"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" align="center"><b>September&#xA0;30,</b><br /> <b>2013</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" align="center"><b>December&#xA0;31,</b><br /> <b>2012</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Senior Credit Facility</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">360,289</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">384,664</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> 7 7/8% Senior Subordinated Notes</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">400,000</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">400,000</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> 5 7/8% Senior Subordinated Notes</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">500,000</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">500,000</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> 5% Senior Subordinated Notes</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">535,000</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">535,000</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> 9 3/4% Senior Notes</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">345,445</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">339,121</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Other notes with various rates and terms</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2,080</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2,069</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2,142,814</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;</font></td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2,160,854</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Less current maturities</p> </td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(393,834</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;</font></td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(33,134</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Long-term debt, excluding current maturities</p> </td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,748,980</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,127,720</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Summarized below are certain unaudited pro forma statements of operations data for the three and nine months ended September&#xA0;30, 2013 and September&#xA0;30, 2012 as if each of the above acquisitions and the acquisitions occurring in 2012, which were fully described in the 2012 Combined Form 10-K, had been consummated as of January&#xA0;1, 2012. This pro forma information does not purport to represent what the Company&#x2019;s results of operations actually would have been had such transactions occurred on the date specified or to project the Company&#x2019;s results of operations for any future periods.</p> <p style="font-size:12pt;margin-top:0pt;margin-bottom:0pt"> &#xA0;</p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" align="center"> <tr> <td width="64%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr style="font-family:Times New Roman; font-size:8pt"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="6" align="center"><b>Three months ended<br /> September 30,</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="6" align="center"><b>Nine months ended<br /> September 30,</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="font-family:Times New Roman; font-size:8pt"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1.00pt solid #000000"><b>2013</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1.00pt solid #000000"><b>2012</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1.00pt solid #000000"><b>2013</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1.00pt solid #000000"><b>2012</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr bgcolor="#CCEEFF" style="font-family:Times New Roman; font-size:10pt"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"> Pro forma net revenues</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">324,941</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">317,586</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">939,747</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">916,282</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> </tr> <tr style="font-size:1px;"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="font-family:Times New Roman; font-size:10pt"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"> Pro forma net income applicable to common stock</p> </td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">18,504</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">12,142</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">34,409</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">3,878</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> </tr> <tr style="font-size:1px;"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF" style="font-family:Times New Roman; font-size:10pt"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"> Pro forma net income per common share&#x2014;basic</p> </td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.20</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.13</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.36</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.04</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> </tr> <tr style="font-size:1px;"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="font-family:Times New Roman; font-size:10pt"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"> Pro forma net income per common share&#x2014;diluted</p> </td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.20</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.13</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.36</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"><font style="font-size:8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.04</td> <td nowrap="nowrap" valign="bottom">&#xA0;&#xA0;</td> </tr> <tr style="font-size:1px;"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3.00px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> 8. <u>Earnings Per Share</u></p> <p style="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> The calculation of basic earnings per share excludes any dilutive effect of stock options, while diluted earnings per share includes the dilutive effect of options. For the nine months ended September&#xA0;30, 2013 and 2012 there were no dilutive shares excluded from this calculation resulting from the antidilutive effect of options.</p> </div> <div> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> The following is a summary of the 2009 ESPP share activity for the nine months ended September&#xA0;30, 2013:</p> <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" border="0" cellspacing="0" cellpadding="0" width="68%" align="center"> <tr> <td width="88%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" align="center"><b>Shares</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Available for future purchases, January&#xA0;1, 2013</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">358,950</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Additional shares reserved under 2009 ESPP</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">78,963</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Purchases</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(84,399</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Available for future purchases, September&#xA0;30, 2013</p> </td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">353,514</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> 0 <div> <p style="MARGIN-TOP: 6pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> The following table reflects information related to our asset retirement obligations:</p> <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" border="0" cellspacing="0" cellpadding="0" width="68%" align="center"> <tr> <td width="86%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Balance at December&#xA0;31, 2012</p> </td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#xA0;189,659</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Additions to asset retirement obligations</p> </td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2,392</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Accretion expense</p> </td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">8,408</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Liabilities settled</p> </td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(2,525</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Balance at September&#xA0;30, 2013</p> </td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">197,934</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> 32520000 83776000 33252000 2392000 83776000 361000 24441000 2467000 90000 121000 -1204000 165458000 34409000 17852000 939747000 2094000 85170000 53315000 -1005000 22485000 -112143000 33525000 273000 4200000 931347000 77677000 2525000 765889000 176158000 -13293000 273000 326882000 219492000 17037000 45451000 23107000 4949000 123754000 18116000 112264000 15711000 4771000 -157043000 6095000 11354000 8408000 2236000 19790000 -594000 0.00 <div> <p style="MARGIN-TOP: 18pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> 4. <u>Depreciation and Amortization</u></p> <p style="MARGIN-TOP: 6pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> The Company includes all categories of depreciation and amortization on a separate line in its Statement of Operations. The amounts of depreciation and amortization expense excluded from the following operating expenses in its Statement of Operations are:</p> <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" border="0" cellspacing="0" cellpadding="0" width="92%" align="center"> <tr> <td width="66%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="6" align="center"> <b>Three&#xA0;months&#xA0;ended<br /> September&#xA0;30,</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="6" align="center"> <b>Nine&#xA0;months&#xA0;ended<br /> September&#xA0;30,</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" align="center"><b>2013</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" align="center"><b>2012</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" align="center"><b>2013</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" align="center"><b>2012</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Direct advertising expenses</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">69,040</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">68,507</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">207,265</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">205,450</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> General and administrative expenses</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">1,151</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">985</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2,921</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">3,007</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> Corporate expenses</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2,992</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4,423</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">9,306</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">10,826</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"></td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">73,183</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">73,915</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">219,492</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom"><font style="FONT-SIZE: 8pt">&#xA0;&#xA0;</font></td> <td valign="bottom">$</td> <td valign="bottom" align="right">219,283</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-TOP: 18pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> 7. <u>Summarized Financial Information of Subsidiaries</u></p> <p style="MARGIN-TOP: 6pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> Separate financial statements of each of the Company&#x2019;s direct or indirect wholly owned subsidiaries that have guaranteed Lamar Media&#x2019;s obligations with respect to its publicly issued notes (collectively, the &#x201C;Guarantors&#x201D;) are not included herein because the Company has no independent assets or operations, the guarantees are full and unconditional and joint and several, and the only subsidiaries that are not guarantors are in the aggregate minor.</p> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> Lamar Media&#x2019;s ability to make distributions to Lamar Advertising is restricted under both the terms of the indentures relating to Lamar Media&#x2019;s outstanding notes and by the terms of its senior credit facility. As of September&#xA0;30, 2013 and December&#xA0;31, 2012, Lamar Media was permitted under the terms of its outstanding senior subordinated notes to make transfers to Lamar Advertising in the form of cash dividends, loans or advances in amounts up to $1,973,528 and $1,706,875, respectively. Transfers to Lamar Advertising are subject to additional restrictions if, (i)&#xA0;under Lamar Media&#x2019;s senior credit facility and as defined therein, (x)&#xA0;the total holdings debt ratio is greater than 5.75 to 1 or (y)&#xA0;the senior debt ratio is greater than 3.25 to 1.0, and (ii)&#xA0;if under the indenture for Lamar Media&#x2019;s 9 3/4% senior notes and as defined therein, its senior leverage ratio is greater than or equal to 3.0 to 1. As of September&#xA0;30, 2013, the total holdings debt ratio was less than 5.75 to 1 and Lamar Media&#x2019;s senior debt ratio was less than 3.25 to 1 and its senior leverage ratio was less than 3.0 to 1; therefore, transfers to Lamar Advertising were not subject to any additional restrictions under the senior credit facility or pursuant to the indenture governing the 9 3/4% senior notes.</p> </div> 360-day year comprised of twelve 30-day months 200000000 <div> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> The remaining quarterly amortizations of the Term loan facilities as of September&#xA0;30, 2013 is as follows:</p> <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" border="0" cellspacing="0" cellpadding="0" width="92%" align="center"> <tr> <td width="63%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"> <b>Term&#xA0;A-1</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"> <b>Term&#xA0;A-2</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"> <b>Term&#xA0;A-3</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Term B</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> December&#xA0;31, 2013 &#x2013; March&#xA0;31, 2014</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">6,750</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">750</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">625</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">57.4</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> June&#xA0;30, 2014 &#x2014; December&#xA0;31, 2014</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">13,500</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,500</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">625</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">57.4</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> March&#xA0;31, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">13,500</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,500</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,250</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">57.4</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> June&#xA0;30, 2015 &#x2014; September&#xA0;30, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">37,125</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">4,125</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,250</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">57.4</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> December&#xA0;31, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">74,250</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">8,250</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,250</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">57.4</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> March&#xA0;31, 2016 &#x2014; September&#xA0;30, 2016</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,250</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">57.4</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> December&#xA0;31, 2016</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,250</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">21,474.7</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> March&#xA0;31, 2017&#x2014;&#xA0;June&#xA0;30, 2017</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">21,250</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> </tr> <tr style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt" bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; FONT-SIZE: 10pt"> August&#xA0;9, 2017</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">42,500</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">&#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-TOP: 6pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> The amounts of depreciation and amortization expense excluded from the following operating expenses in its Statement of Operations are:</p> <p style="MARGIN-TOP: 0pt; 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Subsequent Events
9 Months Ended
Sep. 30, 2013
Subsequent Events [Abstract]  
Subsequent Events

12. Subsequent Events

On November 4, 2013, Lamar Media announced its intent to redeem in full all $350,000 in aggregate principal amount of its 9 3/4% Senior Notes due 2014 (the “Notes”). The redemption will be made in accordance with the terms of the indenture governing the Notes.

Lamar Media expects the Notes to be redeemed on December 4, 2013 (the “Redemption Date”), at a redemption price equal to 100% of the aggregate principal amount of outstanding Notes plus a make whole amount and accrued and unpaid interest to (but not including) the Redemption Date.

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Condensed Consolidated Statements of Operations and Comprehensive Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Net revenues $ 323,184 $ 306,286 $ 931,347 $ 877,396
Operating expenses (income)        
Direct advertising expenses (exclusive of depreciation and amortization) 109,640 103,845 326,882 312,339
General and administrative expenses (exclusive of depreciation and amortization) 57,033 52,153 176,158 157,275
Corporate expenses (exclusive of depreciation and amortization) 14,843 13,590 45,451 40,036
Depreciation and amortization 73,183 73,915 219,492 219,283
Gain on disposition of assets (787) (739) (2,094) (5,309)
Total Operating Expenses 253,912 242,764 765,889 723,624
Operating income 69,272 63,522 165,458 153,772
Other expense (income)        
Loss on extinguishment of debt   1,984   31,956
Interest income (42) (147) (121) (270)
Interest expense 37,677 38,534 112,264 117,081
Non-operating (Income) Expenses 37,635 40,371 112,143 148,767
Income before income tax expense 31,637 23,151 53,315 5,005
Income tax expense 13,297 11,655 19,790 2,403
Net income 18,340 11,496 33,525 2,602
Preferred stock dividends 91 91 273 273
Net income applicable to common stock 18,249 11,405 33,252 2,329
Earnings per share:        
Basic earnings per share $ 0.19 $ 0.12 $ 0.35 $ 0.02
Diluted earnings per share $ 0.19 $ 0.12 $ 0.35 $ 0.02
Weighted average common shares outstanding 94,528,877 93,423,063 94,282,629 93,265,621
Incremental common shares from dilutive stock options 398,192 306,449 409,500 285,270
Weighted average common shares diluted 94,927,069 93,729,512 94,692,129 93,550,891
Statement of Comprehensive Income        
Net income 18,340 11,496 33,525 2,602
Other comprehensive income (loss), net of tax        
Foreign currency translation adjustments 534 1,152 (1,005) 1,048
Comprehensive income 18,874 12,648 32,520 3,650
LAMAR MEDIA CORP [Member]
       
Net revenues 323,184 306,286 931,347 877,396
Operating expenses (income)        
Direct advertising expenses (exclusive of depreciation and amortization) 109,640 103,845 326,882 312,339
General and administrative expenses (exclusive of depreciation and amortization) 57,033 52,153 176,158 157,275
Corporate expenses (exclusive of depreciation and amortization) 14,763 13,516 45,190 39,763
Depreciation and amortization 73,183 73,915 219,492 219,283
Gain on disposition of assets (787) (739) (2,094) (5,309)
Total Operating Expenses 253,832 242,690 765,628 723,351
Operating income 69,352 63,596 165,719 154,045
Other expense (income)        
Loss on extinguishment of debt   1,984   31,956
Interest income (42) (147) (121) (270)
Interest expense 37,677 38,534 112,264 117,081
Non-operating (Income) Expenses 37,635 40,371 112,143 148,767
Income before income tax expense 31,717 23,225 53,576 5,278
Income tax expense 13,327 11,640 19,894 2,526
Net income 18,390 11,585 33,682 2,752
Statement of Comprehensive Income        
Net income 18,390 11,585 33,682 2,752
Other comprehensive income (loss), net of tax        
Foreign currency translation adjustments 534 1,152 (1,005) 1,048
Comprehensive income $ 18,924 $ 12,737 $ 32,677 $ 3,800

XML 16 R10.htm IDEA: XBRL DOCUMENT v2.4.0.8
Goodwill and Other Intangible Assets
9 Months Ended
Sep. 30, 2013
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

5. Goodwill and Other Intangible Assets

The following is a summary of intangible assets at September 30, 2013 and December 31, 2012.

 

     Estimated
Life
(Years)
     September 30, 2013      December 31, 2012  
        Gross Carrying
Amount
     Accumulated
Amortization
     Gross Carrying
Amount
     Accumulated
Amortization
 

Customer lists and contracts

     7—10       $ 491,982       $ 461,406       $ 482,883       $ 455,549   

Non-competition agreements

     3—15         63,896         62,840         63,519         62,566   

Site locations

     15         1,492,023         1,082,466         1,449,181         1,009,631   

Other

     5—15         14,008         13,430         13,608         13,133   
     

 

 

    

 

 

    

 

 

    

 

 

 
      $ 2,061,909       $ 1,620,142       $ 2,009,191       $ 1,540,879   

Unamortizable intangible assets:

              

Goodwill

      $ 1,755,936       $ 253,536       $ 1,738,686       $ 253,536   
XML 17 Show.js IDEA: XBRL DOCUMENT /** * Rivet Software Inc. * * @copyright Copyright (c) 2006-2011 Rivet Software, Inc. All rights reserved. * Version 2.4.0.3 * */ var Show = {}; Show.LastAR = null, Show.hideAR = function(){ Show.LastAR.style.display = 'none'; }; Show.showAR = function ( link, id, win ){ if( Show.LastAR ){ Show.hideAR(); } var ref = link; do { ref = ref.nextSibling; } while (ref && ref.nodeName != 'TABLE'); if (!ref || ref.nodeName != 'TABLE') { var tmp = win ? win.document.getElementById(id) : document.getElementById(id); if( tmp ){ ref = tmp.cloneNode(true); ref.id = ''; link.parentNode.appendChild(ref); } } if( ref ){ ref.style.display = 'block'; Show.LastAR = ref; } }; Show.toggleNext = function( link ){ var ref = link; do{ ref = ref.nextSibling; }while( ref.nodeName != 'DIV' ); if( ref.style && ref.style.display && ref.style.display == 'none' ){ ref.style.display = 'block'; if( link.textContent ){ link.textContent = link.textContent.replace( '+', '-' ); }else{ link.innerText = link.innerText.replace( '+', '-' ); } }else{ ref.style.display = 'none'; if( link.textContent ){ link.textContent = link.textContent.replace( '-', '+' ); }else{ link.innerText = link.innerText.replace( '-', '+' ); } } }; XML 18 R24.htm IDEA: XBRL DOCUMENT v2.4.0.8
Stock-Based Compensation - Additional Information (Detail) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Award vesting terms Vesting terms ranging from three to five years and include 1) options that vest in one-fifth increments beginning on the grant date and continuing on each of the first four anniversaries of the grant date and 2) options that cliff-vest on the fifth anniversary of the grant date.  
Non cash compensation expense $ 23,107 $ 10,902
Restricted Stock Award [Member]
   
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Expiration date of options granted under equity incentive plan 10 years  
Percentage of awards vesting on grant date 50.00%  
Percentage of awards vesting on the last day of directors term 50.00%  
Term of director 1 year  
2009 Employee Stock Purchase Plan [Member]
   
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Additional shares reserved under 2009 ESPP 78,963  
Performance Based Compensation [Member]
   
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Non cash compensation expense 7,757  
Common Class A [Member]
   
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Increase in number of shares of common stock available under Incentive Plan 2,500,000  
The Company granted options for an aggregate shares of its Class A common stock 2,043,791  
Common Class A [Member] | 1996 Equity Incentive Plan [Member]
   
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares reserved for issuance to directors and employees 15,500,000  
Common Class A [Member] | Restricted Stock Award [Member]
   
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Non cash compensation expense $ 332  
Common Class A [Member] | 2009 Employee Stock Purchase Plan [Member]
   
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
New employee stock purchase plan, which reserved additional shares of common stock 588,154  
Employee stock purchase plan, which available for issuance of common stock 88,154  
Additional shares reserved under 2009 ESPP 78,963  
Minimum [Member]
   
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Award vesting period 3 years  
Range of awards of target number of share 0.00%  
Maximum [Member]
   
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Award vesting period 5 years  
Range of awards of target number of share 100.00%  
XML 19 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
Stock-Based Compensation (Tables)
9 Months Ended
Sep. 30, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Summary of ESPP Share Activity

The following is a summary of the 2009 ESPP share activity for the nine months ended September 30, 2013:

 

     Shares  

Available for future purchases, January 1, 2013

     358,950   

Additional shares reserved under 2009 ESPP

     78,963   

Purchases

     (84,399
  

 

 

 

Available for future purchases, September 30, 2013

     353,514   
  

 

 

 
XML 20 R38.htm IDEA: XBRL DOCUMENT v2.4.0.8
Long-term Debt - Remaining Quarterly Amortizations of Term Loan Facilities (Parenthetical) (Detail)
9 Months Ended
Sep. 30, 2013
December 31, 2013 - March 31, 2014 [Member]
 
Debt Instrument [Line Items]  
Principal payment date 2013-12-31 - 2014-03-31
June 30, 2014 - December 31, 2014 [Member]
 
Debt Instrument [Line Items]  
Principal payment date 2014-06-30 - 2014-12-31
March 31, 2015 [Member]
 
Debt Instrument [Line Items]  
Principal payment date 2015-03-31
June 30, 2015 - September 30, 2015 [Member]
 
Debt Instrument [Line Items]  
Principal payment date 2015-06-30 - 2015-09-30
December 31, 2015 [Member]
 
Debt Instrument [Line Items]  
Principal payment date 2015-12-31
March 31, 2016 - September 30, 2016 [Member]
 
Debt Instrument [Line Items]  
Principal payment date 2016-03-31 - 2016-09-30
December 31, 2016 [Member]
 
Debt Instrument [Line Items]  
Principal payment date 2016-12-31
March 31, 2017 - June 30, 2017 [Member]
 
Debt Instrument [Line Items]  
Principal payment date 2017-03-31 - 2017-06-30
August 9, 2017 [Member]
 
Debt Instrument [Line Items]  
Principal payment date 2017-08-09
XML 21 R27.htm IDEA: XBRL DOCUMENT v2.4.0.8
Acquisitions - Summary of Preliminary Allocation of Acquisition Costs (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items]  
Property, plant and equipment $ 14,513
Goodwill 17,358
Other asset 961
Current liabilities (2,130)
Total 83,776
Site locations [Member]
 
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items]  
Finite lived intangible assets 43,493
Noncompetition Agreements [Member]
 
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items]  
Finite lived intangible assets 380
Customer lists and contracts [Member]
 
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items]  
Finite lived intangible assets $ 9,201
XML 22 R26.htm IDEA: XBRL DOCUMENT v2.4.0.8
Acquisitions - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Business Combinations [Abstract]  
Total purchase price of outdoor advertising assets paid in cash $ 83,776
XML 23 R34.htm IDEA: XBRL DOCUMENT v2.4.0.8
Long-term Debt - Long-Term Debt (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Debt Instrument [Line Items]    
Long Term Debt $ 2,142,814 $ 2,160,854
Less current maturities (393,834) (33,134)
Long-term debt, excluding current maturities 1,748,980 2,127,720
Senior Credit Facility [Member]
   
Debt Instrument [Line Items]    
Long Term Debt 360,289 384,664
7 7/8% Senior Subordinated Notes [Member]
   
Debt Instrument [Line Items]    
Long Term Debt 400,000 400,000
5 7/8% Senior Subordinated Notes [Member]
   
Debt Instrument [Line Items]    
Long Term Debt 500,000 500,000
5% Senior Subordinated Notes [Member]
   
Debt Instrument [Line Items]    
Long Term Debt 535,000 535,000
9 3/4% Senior Notes [Member]
   
Debt Instrument [Line Items]    
Long Term Debt 345,445 339,121
Other notes with various rates and terms [Member]
   
Debt Instrument [Line Items]    
Long Term Debt $ 2,080 $ 2,069
XML 24 R40.htm IDEA: XBRL DOCUMENT v2.4.0.8
Non-Cash Financing and Investing Activities - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Supplemental Cash Flow Elements [Abstract]  
Non-cash acquisition of outdoor advertising assets $ 3,098
XML 25 R31.htm IDEA: XBRL DOCUMENT v2.4.0.8
Asset Retirement Obligation - Information Related to Asset Retirement Obligation (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Asset Retirement Obligation Disclosure [Abstract]  
Beginning Balance $ 189,659
Additions to asset retirement obligations 2,392
Accretion expense 8,408
Liabilities settled (2,525)
Ending Balance $ 197,934
XML 26 R25.htm IDEA: XBRL DOCUMENT v2.4.0.8
Stock-Based Compensation - Summary of Espp Share Activity (Detail) (2009 Employee Stock Purchase Plan [Member])
9 Months Ended
Sep. 30, 2013
2009 Employee Stock Purchase Plan [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Available for future purchases, January 1, 2013 358,950
Additional shares reserved under 2009 ESPP 78,963
Purchases (84,399)
Available for future purchases, September 30, 2013 353,514
XML 27 R6.htm IDEA: XBRL DOCUMENT v2.4.0.8
Significant Accounting Policies
9 Months Ended
Sep. 30, 2013
Significant Accounting Policies

1. Significant Accounting Policies

The information included in the foregoing interim condensed consolidated financial statements is unaudited. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the Company’s financial position and results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the entire year. These interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and the notes thereto included in the 2012 Combined Form 10-K. Subsequent events, if any, are evaluated through the date on which the financial statements are issued.

LAMAR MEDIA CORP [Member]
 
Significant Accounting Policies

1. Significant Accounting Policies

The information included in the foregoing interim condensed consolidated financial statements is unaudited. In the opinion of management all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of Lamar Media’s financial position and results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the entire year. These interim condensed consolidated financial statements should be read in conjunction with Lamar Media’s consolidated financial statements and the notes thereto included in the 2012 Combined Form 10-K.

Certain notes are not provided for the accompanying condensed consolidated financial statements as the information in notes 1, 2, 3, 4, 5, 6, 7, 9, 10, 11 and 12 to the condensed consolidated financial statements of Lamar Advertising Company included elsewhere in this report is substantially equivalent to that required for the condensed consolidated financial statements of Lamar Media Corp. Earnings per share data is not provided for Lamar Media Corp., as it is a wholly owned subsidiary of the Company.

XML 28 R8.htm IDEA: XBRL DOCUMENT v2.4.0.8
Acquisitions
9 Months Ended
Sep. 30, 2013
Business Combinations [Abstract]  
Acquisitions

3. Acquisitions

During the nine months ended September 30, 2013, the Company completed several acquisitions of outdoor advertising assets for a total purchase price of approximately $83,776 in cash.

Each of these acquisitions was accounted for under the acquisition method of accounting, and, accordingly, the accompanying consolidated financial statements include the results of operations of each acquired entity from the date of acquisition. The acquisition costs have been allocated to assets acquired and liabilities assumed based on preliminary fair value estimates at the dates of acquisition. The allocations are pending final determination of the fair value of certain assets and liabilities. The following is a summary of the preliminary allocation of the acquisition costs in the above transactions.

 

     Total  

Property, plant and equipment

   $ 14,513   

Goodwill

     17,358   

Site locations

     43,493   

Non-competition agreements

     380   

Customer lists and contracts

     9,201   

Other asset

     961   

Current liabilities

     (2,130
  

 

 

 
   $ 83,776   
  

 

 

 

Summarized below are certain unaudited pro forma statements of operations data for the three and nine months ended September 30, 2013 and September 30, 2012 as if each of the above acquisitions and the acquisitions occurring in 2012, which were fully described in the 2012 Combined Form 10-K, had been consummated as of January 1, 2012. This pro forma information does not purport to represent what the Company’s results of operations actually would have been had such transactions occurred on the date specified or to project the Company’s results of operations for any future periods.

 

     Three months ended
September 30,
     Nine months ended
September 30,
 
     2013      2012      2013      2012  

Pro forma net revenues

   $ 324,941       $ 317,586       $ 939,747       $ 916,282   
  

 

 

    

 

 

    

 

 

    

 

 

 

Pro forma net income applicable to common stock

   $ 18,504       $ 12,142       $ 34,409       $ 3,878   
  

 

 

    

 

 

    

 

 

    

 

 

 

Pro forma net income per common share—basic

   $ 0.20       $ 0.13       $ 0.36       $ 0.04   
  

 

 

    

 

 

    

 

 

    

 

 

 

Pro forma net income per common share—diluted

   $ 0.20       $ 0.13       $ 0.36       $ 0.04   
  

 

 

    

 

 

    

 

 

    

 

 

 
XML 29 R11.htm IDEA: XBRL DOCUMENT v2.4.0.8
Asset Retirement Obligations
9 Months Ended
Sep. 30, 2013
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

6. Asset Retirement Obligations

The Company’s asset retirement obligations include the costs associated with the removal of its structures, resurfacing of the land and retirement cost, if applicable, related to the Company’s outdoor advertising portfolio. The following table reflects information related to our asset retirement obligations:

 

Balance at December 31, 2012

   $  189,659   

Additions to asset retirement obligations

     2,392   

Accretion expense

     8,408   

Liabilities settled

     (2,525
  

 

 

 

Balance at September 30, 2013

   $ 197,934   
  

 

 

 
XML 30 R9.htm IDEA: XBRL DOCUMENT v2.4.0.8
Depreciation and Amortization
9 Months Ended
Sep. 30, 2013
Text Block [Abstract]  
Depreciation and Amortization

4. Depreciation and Amortization

The Company includes all categories of depreciation and amortization on a separate line in its Statement of Operations. The amounts of depreciation and amortization expense excluded from the following operating expenses in its Statement of Operations are:

 

     Three months ended
September 30,
     Nine months ended
September 30,
 
     2013      2012      2013      2012  

Direct advertising expenses

   $ 69,040       $ 68,507       $ 207,265       $ 205,450   

General and administrative expenses

     1,151         985         2,921         3,007   

Corporate expenses

     2,992         4,423         9,306         10,826   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 73,183       $ 73,915       $ 219,492       $ 219,283   
  

 

 

    

 

 

    

 

 

    

 

 

 
XML 31 R41.htm IDEA: XBRL DOCUMENT v2.4.0.8
Subsequent Events - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 1 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Nov. 04, 2013
Subsequent Event [Member]
Sep. 30, 2013
9 3/4% Senior Notes [Member]
Dec. 31, 2012
9 3/4% Senior Notes [Member]
Mar. 27, 2009
9 3/4% Senior Notes [Member]
Dec. 04, 2013
9 3/4% Senior Notes [Member]
Subsequent Event [Member]
Nov. 04, 2013
9 3/4% Senior Notes [Member]
Subsequent Event [Member]
Debt Instrument [Line Items]                
Interest rate on redemption of senior notes       9.75% 9.75% 9.75%   9.75%
Aggregate principal amount of redemption of debt $ 2,142,814 $ 2,160,854 $ 350,000 $ 345,445 $ 339,121      
Redemption percentage equal to principal amount include aggregate premium       100.00%     100.00%  
XML 32 R28.htm IDEA: XBRL DOCUMENT v2.4.0.8
Acquisitions - Summary of Unaudited Pro Forma Financial Information (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Business Combinations [Abstract]        
Pro forma net revenues $ 324,941 $ 317,586 $ 939,747 $ 916,282
Pro forma net income applicable to common stock $ 18,504 $ 12,142 $ 34,409 $ 3,878
Pro forma net income per common share-basic $ 0.20 $ 0.13 $ 0.36 $ 0.04
Pro forma net income per common share-diluted $ 0.20 $ 0.13 $ 0.36 $ 0.04
XML 33 R32.htm IDEA: XBRL DOCUMENT v2.4.0.8
Summarized Financial Information of Subsidiaries - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Mar. 27, 2009
Debt Instrument [Line Items]      
Balance of permitted transfers to parent company $ 1,973,528 $ 1,706,875  
Description of provisions on senior credit facility transfers to Lamar Advertising subject to additional restrictions The total holdings debt ratio is greater than 5.75 to 1 or (y) the senior debt ratio is greater than 3.25 to 1.0, and (ii) if under the indenture for Lamar Media's 9 3/4% senior notes and as defined therein, its senior leverage ratio is greater than or equal to 3.0 to 1.    
Description of actual position on senior credit facility transfers to Lamar Advertising not subject to additional restrictions The total holdings debt ratio was less than 5.75 to 1 and Lamar Media's senior debt ratio was less than 3.25 to 1 and its senior leverage ratio was less than 3.0 to 1; therefore, transfers to Lamar Advertising were not subject to any additional restrictions under the senior credit facility or pursuant to the indenture governing the 9 3/4% senior notes.    
Holdings debt ratio 5.75    
Senior debt ratio 3.25    
Senior leverage ratio 3.0    
Holdings debt ratio related to actual position on senior credit facility 5.75    
Senior leverage ratio related to actual position on senior credit facility 3.0    
9 3/4% Senior Notes [Member]
     
Debt Instrument [Line Items]      
Interest rate stated on notes 9.75% 9.75% 9.75%
Minimum [Member]
     
Debt Instrument [Line Items]      
Senior debt ratio 3.25    
Maximum [Member]
     
Debt Instrument [Line Items]      
Senior debt ratio 3.25    
XML 34 R37.htm IDEA: XBRL DOCUMENT v2.4.0.8
Long-term Debt - Remaining Quarterly Amortizations of Term Loan Facilities (Detail) (USD $)
9 Months Ended
Sep. 30, 2013
December 31, 2013 - March 31, 2014 [Member] | Term Loan A-1 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount $ 6,750.0
December 31, 2013 - March 31, 2014 [Member] | Term Loan A-2 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 750.0
December 31, 2013 - March 31, 2014 [Member] | Term Loan A-3 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 625.0
December 31, 2013 - March 31, 2014 [Member] | Term Loan B Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 57.4
June 30, 2014 - December 31, 2014 [Member] | Term Loan A-1 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 13,500.0
June 30, 2014 - December 31, 2014 [Member] | Term Loan A-2 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 1,500.0
June 30, 2014 - December 31, 2014 [Member] | Term Loan A-3 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 625.0
June 30, 2014 - December 31, 2014 [Member] | Term Loan B Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 57.4
March 31, 2015 [Member] | Term Loan A-1 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 13,500.0
March 31, 2015 [Member] | Term Loan A-2 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 1,500.0
March 31, 2015 [Member] | Term Loan A-3 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 1,250.0
March 31, 2015 [Member] | Term Loan B Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 57.4
June 30, 2015 - September 30, 2015 [Member] | Term Loan A-1 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 37,125.0
June 30, 2015 - September 30, 2015 [Member] | Term Loan A-2 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 4,125.0
June 30, 2015 - September 30, 2015 [Member] | Term Loan A-3 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 1,250.0
June 30, 2015 - September 30, 2015 [Member] | Term Loan B Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 57.4
December 31, 2015 [Member] | Term Loan A-1 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 74,250.0
December 31, 2015 [Member] | Term Loan A-2 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 8,250.0
December 31, 2015 [Member] | Term Loan A-3 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 1,250.0
December 31, 2015 [Member] | Term Loan B Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 57.4
March 31, 2016 - September 30, 2016 [Member] | Term Loan A-1 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount   
March 31, 2016 - September 30, 2016 [Member] | Term Loan A-2 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount   
March 31, 2016 - September 30, 2016 [Member] | Term Loan A-3 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 1,250.0
March 31, 2016 - September 30, 2016 [Member] | Term Loan B Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 57.4
December 31, 2016 [Member] | Term Loan A-1 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount   
December 31, 2016 [Member] | Term Loan A-2 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount   
December 31, 2016 [Member] | Term Loan A-3 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 1,250.0
December 31, 2016 [Member] | Term Loan B Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 21,474.7
March 31, 2017 - June 30, 2017 [Member] | Term Loan A-1 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount   
March 31, 2017 - June 30, 2017 [Member] | Term Loan A-2 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount   
March 31, 2017 - June 30, 2017 [Member] | Term Loan A-3 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 21,250.0
March 31, 2017 - June 30, 2017 [Member] | Term Loan B Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount   
August 9, 2017 [Member] | Term Loan A-1 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount   
August 9, 2017 [Member] | Term Loan A-2 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount   
August 9, 2017 [Member] | Term Loan A-3 Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount 42,500.0
August 9, 2017 [Member] | Term Loan B Facility [Member]
 
Debt Instrument [Line Items]  
Principal amount   
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Disclosure - Subsequent Events - Additional Information (Detail) Sheet http://www.lamar.com/taxonomy/role/DisclosureSubsequentEventsAdditionalInformation Subsequent Events - Additional Information (Detail) false false All Reports Book All Reports Element us-gaap_RatioOfIndebtednessToNetCapital1 had a mix of decimals attribute values: 0 2. Process Flow-Through: 103 - Statement - Condensed Consolidated Balance Sheets Process Flow-Through: Removing column 'Sep. 30, 2012' Process Flow-Through: Removing column 'Dec. 31, 2011' Process Flow-Through: 104 - Statement - Condensed Consolidated Balance Sheets (Parenthetical) Process Flow-Through: 105 - Statement - Condensed Consolidated Statements of Operations and Comprehensive Income Process Flow-Through: 106 - Statement - Condensed Consolidated Statements of Cash Flows lamr-20130930.xml lamr-20130930.xsd lamr-20130930_cal.xml lamr-20130930_def.xml lamr-20130930_lab.xml lamr-20130930_pre.xml true true XML 37 R3.htm IDEA: XBRL DOCUMENT v2.4.0.8
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Allowance for doubtful accounts $ 9,000 $ 7,615
Accumulated amortization 30,892 25,867
Shares held in treasury 17,216,635 17,119,205
Series AA Preferred Stock [Member]
   
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, cumulative dividends $ 63.80 $ 63.80
Preferred stock, shares authorized 5,720 5,720
Preferred stock, shares issued 5,720 5,720
Preferred stock, shares outstanding 5,720 5,720
Preferred Class A [Member]
   
Preferred stock, par value $ 638 $ 638
Preferred stock, cumulative dividends $ 63.80 $ 63.80
Preferred stock, shares authorized 10,000 10,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common Class A [Member]
   
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 175,000,000 175,000,000
Common stock, shares issued 97,245,234 96,082,868
Common stock, shares outstanding 80,028,599 78,963,663
Common Class B [Member]
   
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 37,500,000 37,500,000
Common stock, shares issued 14,610,365 14,910,365
Common stock, shares outstanding 14,610,365 14,910,365
LAMAR MEDIA CORP [Member]
   
Allowance for doubtful accounts 9,000 7,615
Accumulated amortization $ 21,604 $ 16,579
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 3,000 3,000
Common stock, shares issued 100 100
Common stock, shares outstanding 100 100
XML 38 R14.htm IDEA: XBRL DOCUMENT v2.4.0.8
Long-term Debt
9 Months Ended
Sep. 30, 2013
Debt Disclosure [Abstract]  
Long-term Debt

9. Long-term Debt

Long-term debt consists of the following at September 30, 2013 and December 31, 2012:

 

     September 30,
2013
    December 31,
2012
 

Senior Credit Facility

   $ 360,289      $ 384,664   

7 7/8% Senior Subordinated Notes

     400,000        400,000   

5 7/8% Senior Subordinated Notes

     500,000        500,000   

5% Senior Subordinated Notes

     535,000        535,000   

9 3/4% Senior Notes

     345,445        339,121   

Other notes with various rates and terms

     2,080        2,069   
  

 

 

   

 

 

 
     2,142,814        2,160,854   

Less current maturities

     (393,834     (33,134
  

 

 

   

 

 

 

Long-term debt, excluding current maturities

   $ 1,748,980      $ 2,127,720   
  

 

 

   

 

 

 

9 3/4% Senior Notes

On March 27, 2009, Lamar Media issued $350,000 in aggregate principal amount ($314,927 gross proceeds) of 9 3/4% Senior Notes due 2014 (the “Senior Notes”). The institutional private placement resulted in net proceeds to Lamar Media of approximately $307,489. The Senior Notes mature on April 1, 2014 and have interest at a rate of 9 3/4% per annum, which is payable semi-annually on April 1 and October 1 of each year, beginning October 1, 2009. Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months. The terms of the Senior Notes will, among other things, limit Lamar Media’s and its restricted subsidiaries’ ability to (i) incur additional debt and issue preferred stock; (ii) make certain distributions, investments and other restricted payments; (iii) create certain liens; (iv) enter into transactions with affiliates; (v) have the restricted subsidiaries make payments to Lamar Media; (vi) merge, consolidate or sell substantially all of Lamar Media’s or the restricted subsidiaries’ assets; and (vii) sell assets. These covenants are subject to a number of exceptions and qualifications.

At any time prior to April 1, 2014, Lamar Media may redeem some or all of the Senior Notes at a price equal to 100% of the principal amount plus a make-whole premium. In addition, if the Company or Lamar Media undergoes a change of control, Lamar Media may be required to make an offer to purchase each holder’s Senior Notes at a price equal to 101% of the principal amount of the Senior Notes, plus accrued and unpaid interest (including additional interest, if any), up to but not including the repurchase date.

7 7/8% Senior Subordinated Notes

On April 22, 2010, Lamar Media issued $400,000 in aggregate principal amount of 7 7/8% Senior Subordinated Notes due 2018 (the “7 7/8% Notes”). The institutional private placement resulted in net proceeds to Lamar Media of approximately $392,000.

At any time prior to April 15, 2014, Lamar Media may redeem some or all of the 7 7/8% Notes at a price equal to 100% of the principal amount plus a make-whole premium. On or after April 15, 2014, Lamar Media may redeem the 7 7/8% Notes, in whole or part, in cash at redemption prices specified in the 7 7/8% Notes. In addition, if the Company or Lamar Media undergoes a change of control, Lamar Media may be required to make an offer to purchase each holder’s 7 7/8% Notes at a price equal to 101% of the principal amount of the 7 7/8% Notes, plus accrued and unpaid interest, up to but not including the repurchase date.

5 7/8% Senior Subordinated Notes

On February 9, 2012, Lamar Media completed an institutional private placement of $500,000 aggregate principal amount of 5 7/8% Senior Subordinated Notes, due 2022 (the “5 7/8% Notes”). The institutional private placement resulted in net proceeds to Lamar Media of approximately $489,000.

Lamar Media may redeem up to 35% of the aggregate principal amount of the 5 7/8% Notes, at any time and from time to time, at a price equal to 105.875% of the aggregate principal amount so redeemed, plus accrued and unpaid interest thereon, with the net cash proceeds of certain public equity offerings completed before February 1, 2015, provided that following the redemption, at least 65% of the 5 7/8% Notes that were originally issued remain outstanding. At any time prior to February 1, 2017, Lamar Media may redeem some or all of the 5 7/8% Notes at a price equal to 100% of the aggregate principal amount plus a make-whole premium. On or after February 1, 2017, Lamar Media may redeem the 5 7/8% Notes, in whole or in part, in cash at redemption prices specified in the 5 7/8%

 

Notes. In addition, if the Company or Lamar Media undergoes a change of control, Lamar Media may be required to make an offer to purchase each holder’s 5 7/8% Notes at a price equal to 101% of the principal amount of the 5 7/8% Notes, plus accrued and unpaid interest, up to but not including the repurchase date.

5% Senior Subordinated Notes

On October 30, 2012, Lamar Media completed an institutional private placement of $535,000 aggregate principal amount of 5% Senior Subordinated Notes due 2023 (the “5% Notes”). The institutional private placement resulted in net proceeds to Lamar Media of approximately $527,100.

Lamar Media may redeem up to 35% of the aggregate principal amount of the 5% Notes, at any time and from time to time, at a price equal to 105% of the aggregate principal amount so redeemed, plus accrued and unpaid interest thereon, with the net cash proceeds of certain public equity offerings completed before November 1, 2015, provided that following the redemption, at least 65% of the 5% Notes that were originally issued remain outstanding. At any time prior to May 1, 2018, Lamar Media may redeem some or all of the 5% Notes at a price equal to 100% of the aggregate principal amount plus a make-whole premium. On or after May 1, 2018, Lamar Media may redeem the 5% Notes, in whole or in part, in cash at redemption prices specified in the 5% Notes. In addition, if the Company or Lamar Media undergoes a change of control, Lamar Media may be required to make an offer to purchase each holder’s 5% Notes at a price equal to 101% of the principal amount of the 5% Notes, plus accrued and unpaid interest, up to but not including the repurchase date.

2010 Senior Credit Facility

On February 9, 2012, Lamar Media entered into a restatement agreement with respect to its existing senior credit facility in order to fund a new $100,000 Term loan A facility and to make certain covenant changes to the senior credit facility, which was entered into on April 28, 2010, as amended on June 11, 2010, November 18, 2010 and February 9, 2012, and further amended on October 24, 2013 for which JPMorgan Chase Bank, N.A. serves as administrative agent (the “senior credit facility”). The senior credit facility consists of a $250,000 revolving credit facility, a $270,000 term loan A-1 facility, a $30,000 term loan A-2 facility, a $100,000 term loan A-3 facility, a $575,000 term loan B facility and a $300,000 incremental facility, which may be increased by up to an additional $200,000 based upon our satisfaction of a senior debt ratio test (defined as total consolidated senior debt of Lamar Media and its restricted subsidiaries to EBITDA, as defined in the senior credit facility, for the most recent four fiscal quarters then ended) of less than or equal to 3.25 to 1. Lamar Media is the borrower under the senior credit facility, except with respect to the $30,000 term loan A-2 facility for which Lamar Media’s wholly owned subsidiary, Lamar Advertising of Puerto Rico, Inc. is the borrower. We may also from time to time designate additional wholly owned subsidiaries as subsidiary borrowers under the incremental loan facility that can borrow up to $110,000 of the incremental facility. Incremental loans may be in the form of additional term loan tranches or increases in the revolving credit facility. Our lenders have no obligation to make additional loans to us, or any designated subsidiary borrower, under the incremental facility, but may enter into such commitments in their sole discretion.

The remaining quarterly amortizations of the Term loan facilities as of September 30, 2013 is as follows:

 

     Term A-1      Term A-2      Term A-3      Term B  

December 31, 2013 – March 31, 2014

   $ 6,750       $ 750       $ 625       $ 57.4   

June 30, 2014 — December 31, 2014

   $ 13,500       $ 1,500       $ 625       $ 57.4   

March 31, 2015

   $ 13,500       $ 1,500       $ 1,250       $ 57.4   

June 30, 2015 — September 30, 2015

   $ 37,125       $ 4,125       $ 1,250       $ 57.4   

December 31, 2015

   $ 74,250       $ 8,250       $ 1,250       $ 57.4   

March 31, 2016 — September 30, 2016

   $ —        $ —         $ 1,250       $ 57.4   

December 31, 2016

   $ —        $ —         $ 1,250       $ 21,474.7   

March 31, 2017— June 30, 2017

   $ —        $ —         $ 21,250       $ —    

August 9, 2017

   $ —        $ —         $ 42,500       $ —    

In addition to the required amortization payments with respect to our Term loan facilities, Lamar Media may be required to make certain mandatory prepayments on loans outstanding under the senior credit facility that would be applied first to any outstanding term loans. These payments, if any, will be calculated based on a percentage of Consolidated Excess Cash Flow (as defined in the senior credit facility) at the end of each fiscal year. For fiscal years ending or after December 31, 2012, this percentage is subject to reduction to 0% if the total holdings debt ratio (as defined in the senior credit facility) is less than or equal to 5.00 to 1.00 as of the last day of such fiscal year.

 

As of September 30, 2013, there were no amounts outstanding under the revolving senior facility. The revolving facility terminates April 28, 2015. Availability under the revolving facility is reduced by the amount of any letters of credit outstanding. Lamar Media had $6,973 letters of credit outstanding as of September 30, 2013 resulting in $243,027 of availability under its revolving facility. Revolving credit loans may be requested under the revolving credit facility at any time prior to maturity. The loans bear interest, at Lamar Media’s option, at the LIBOR Rate or JPMorgan Chase Prime Rate plus applicable margins, such margins being set from time to time based on Lamar Media’s ratio of debt to trailing twelve month EBITDA, as defined in the senior credit facility.

The terms of Lamar Media’s senior credit facility and the indentures relating to Lamar Media’s outstanding notes restrict, among other things, the ability of Lamar Advertising and Lamar Media to:

 

    dispose of assets;

 

    incur or repay debt;

 

    create liens;

 

    make investments; and

 

    pay dividends.

Lamar Media’s ability to make distributions to Lamar Advertising is also restricted under the terms of these agreements. Under Lamar Media’s senior credit facility the Company must maintain specified financial ratios and levels including:

 

    a fixed charges ratio;

 

    a senior debt ratio; and

 

    a total holdings debt ratio.

Lamar Advertising and Lamar Media were in compliance with all applicable terms under the indentures governing Lamar Media’s outstanding notes and the applicable senior credit agreement provisions during the periods presented.

XML 39 R5.htm IDEA: XBRL DOCUMENT v2.4.0.8
Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Cash flows from operating activities:    
Net income $ 33,525 $ 2,602
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 219,492 219,283
Non-cash equity based compensation 23,107 10,902
Amortization included in interest expense 11,354 13,101
Gain on disposition of assets (2,094) (5,309)
Loss on extinguishment of debt   31,956
Deferred tax expense 17,037 1,099
Provision for doubtful accounts 4,949 4,308
(Increase) decrease in:    
Receivables (22,485) (20,674)
Prepaid expenses (17,852) (14,325)
Other assets 1,204 (1,048)
Increase (decrease) in:    
Trade accounts payable 2,236 8
Accrued expenses 18,116 4,312
Other liabilities 6,095 7,134
Net cash provided by operating activities 294,684 253,349
Cash flows from investing activities:    
Acquisitions (83,776) (54,738)
Capital expenditures (77,677) (77,747)
Proceeds from disposition of assets 4,771 5,023
(Increase) decrease in notes receivable (361) 118
Net cash used in investing activities (157,043) (127,344)
Cash flows from financing activities:    
Debt issuance costs (90) (14,328)
Cash used for purchase of treasury stock (4,200) (1,113)
Net proceeds from issuance of common stock 15,711 9,809
Net proceeds received under revolving credit facility   15,000
Principal payments on long term debt (24,441) (8,381)
Proceeds received from note offering   500,000
Payment on senior subordinated notes   (722,296)
Proceeds received from senior credit agreement term loan   100,000
Dividends (273) (273)
Net cash used in financing activities (13,293) (121,582)
Effect of exchange rate changes in cash and cash equivalents (594) 522
Net increase in cash and cash equivalents 123,754 4,945
Cash and cash equivalents at beginning of period 58,911 33,503
Cash and cash equivalents at end of period 182,665 38,448
Supplemental disclosures of cash flow information:    
Cash paid for interest 85,170 102,334
Cash paid for foreign, state and federal income taxes 2,467 1,906
LAMAR MEDIA CORP [Member]
   
Cash flows from operating activities:    
Net income 33,682 2,752
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 219,492 219,283
Non-cash equity based compensation 23,107 10,902
Amortization included in interest expense 11,354 13,101
Gain on disposition of assets (2,094) (5,309)
Loss on extinguishment of debt   31,956
Deferred tax expense 17,142 1,221
Provision for doubtful accounts 4,949 4,308
(Increase) decrease in:    
Receivables (22,485) (20,674)
Prepaid expenses (17,852) (14,325)
Other assets 1,204 (1,048)
Increase (decrease) in:    
Trade accounts payable 2,236 8
Accrued expenses 18,116 4,312
Other liabilities (9,341) (3,644)
Net cash provided by operating activities 279,510 242,843
Cash flows from investing activities:    
Acquisitions (83,776) (54,738)
Capital expenditures (77,677) (77,747)
Proceeds from disposition of assets 4,771 5,023
(Increase) decrease in notes receivable (361) 118
Net cash used in investing activities (157,043) (127,344)
Cash flows from financing activities:    
Debt issuance costs (90) (14,328)
Net proceeds received under revolving credit facility   15,000
Principal payments on long term debt (24,441) (8,381)
Proceeds received from note offering   500,000
Payment on senior subordinated notes   (722,296)
Proceeds received from senior credit agreement term loan   100,000
Contributions from parent 30,612 19,668
Dividend to parent (4,200) (1,113)
Net cash used in financing activities 1,881 (111,450)
Effect of exchange rate changes in cash and cash equivalents (594) 522
Net increase in cash and cash equivalents 123,754 4,571
Cash and cash equivalents at beginning of period 58,411 33,377
Cash and cash equivalents at end of period 182,165 37,948
Supplemental disclosures of cash flow information:    
Cash paid for interest 85,170 102,334
Cash paid for foreign, state and federal income taxes $ 2,467 $ 1,906
XML 40 R2.htm IDEA: XBRL DOCUMENT v2.4.0.8
Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Current assets:    
Cash and cash equivalents $ 182,665 $ 58,911
Receivables, net of allowance for doubtful accounts 179,434 159,829
Prepaid expenses 60,133 41,132
Deferred income tax assets 11,060 10,817
Other current assets 28,390 30,546
Total current assets 461,682 301,235
Property, plant and equipment 3,009,498 2,940,449
Less accumulated depreciation and amortization (1,866,423) (1,760,090)
Net property, plant and equipment 1,143,075 1,180,359
Goodwill 1,502,400 1,485,150
Intangible assets 441,767 468,312
Deferred financing costs, net of accumulated amortization 32,850 37,787
Other assets 43,648 41,187
Total assets 3,625,422 3,514,030
Current liabilities:    
Trade accounts payable 16,111 13,539
Current maturities of long-term debt 393,834 33,134
Accrued expenses 125,206 99,461
Deferred income 63,504 51,323
Total current liabilities 598,655 197,457
Long-term debt 1,748,980 2,127,720
Deferred income tax liabilities 126,253 107,973
Asset retirement obligation 197,934 189,659
Other liabilities 20,109 16,388
Total liabilities 2,691,931 2,639,197
Stockholder's equity:    
Additional paid-in capital 2,463,129 2,432,518
Accumulated comprehensive income 4,973 5,978
Accumulated deficit (640,891) (674,143)
Cost of shares held in treasury, 17,216,635 and 17,119,205 shares in 2013 and 2012, respectively (893,832) (889,631)
Stockholder's equity 933,491 874,833
Total liabilities and stockholder's equity 3,625,422 3,514,030
LAMAR MEDIA CORP [Member]
   
Current assets:    
Cash and cash equivalents 182,165 58,411
Receivables, net of allowance for doubtful accounts 179,434 159,829
Prepaid expenses 60,133 41,132
Deferred income tax assets 11,060 10,817
Other current assets 28,390 30,546
Total current assets 461,182 300,735
Property, plant and equipment 3,009,498 2,940,449
Less accumulated depreciation and amortization (1,866,423) (1,760,090)
Net property, plant and equipment 1,143,075 1,180,359
Goodwill 1,492,248 1,474,998
Intangible assets 441,299 467,837
Deferred financing costs, net of accumulated amortization 30,897 35,834
Other assets 38,362 35,901
Total assets 3,607,063 3,495,664
Current liabilities:    
Trade accounts payable 16,111 13,539
Current maturities of long-term debt 393,834 33,134
Accrued expenses 122,078 96,860
Deferred income 63,504 51,323
Total current liabilities 595,527 194,856
Long-term debt 1,748,980 2,127,720
Deferred income tax liabilities 159,611 141,228
Asset retirement obligation 197,934 189,659
Other liabilities 20,109 16,388
Total liabilities 2,722,161 2,669,851
Stockholder's equity:    
Common stock, value      
Additional paid-in capital 2,636,769 2,606,157
Accumulated comprehensive income 4,973 5,978
Accumulated deficit (1,756,840) (1,786,322)
Stockholder's equity 884,902 825,813
Total liabilities and stockholder's equity 3,607,063 3,495,664
Series AA Preferred Stock [Member]
   
Stockholder's equity:    
Preferred stock, value      
Preferred Class A [Member]
   
Stockholder's equity:    
Preferred stock, value      
Common Class A [Member]
   
Stockholder's equity:    
Common stock, value 97 96
Common Class B [Member]
   
Stockholder's equity:    
Common stock, value $ 15 $ 15
XML 41 R29.htm IDEA: XBRL DOCUMENT v2.4.0.8
Depreciation and Amortization - Depreciation and Amortization Expense Excluded from Operating Expenses (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Component of Operating Other Cost and Expense [Abstract]        
Depreciation and amortization $ 73,183 $ 73,915 $ 219,492 $ 219,283
Direct advertising expenses [Member]
       
Component of Operating Other Cost and Expense [Abstract]        
Depreciation and amortization 69,040 68,507 207,265 205,450
General and administrative expenses [Member]
       
Component of Operating Other Cost and Expense [Abstract]        
Depreciation and amortization 1,151 985 2,921 3,007
Corporate expenses [Member]
       
Component of Operating Other Cost and Expense [Abstract]        
Depreciation and amortization $ 2,992 $ 4,423 $ 9,306 $ 10,826
XML 42 R23.htm IDEA: XBRL DOCUMENT v2.4.0.8
Long-term Debt (Tables)
9 Months Ended
Sep. 30, 2013
Debt Disclosure [Abstract]  
Long-Term Debt

Long-term debt consists of the following at September 30, 2013 and December 31, 2012:

 

     September 30,
2013
    December 31,
2012
 

Senior Credit Facility

   $ 360,289      $ 384,664   

7 7/8% Senior Subordinated Notes

     400,000        400,000   

5 7/8% Senior Subordinated Notes

     500,000        500,000   

5% Senior Subordinated Notes

     535,000        535,000   

9 3/4% Senior Notes

     345,445        339,121   

Other notes with various rates and terms

     2,080        2,069   
  

 

 

   

 

 

 
     2,142,814        2,160,854   

Less current maturities

     (393,834     (33,134
  

 

 

   

 

 

 

Long-term debt, excluding current maturities

   $ 1,748,980      $ 2,127,720   
  

 

 

   

 

 

 
Remaining Quarterly Amortizations of Term Loan Facilities

The remaining quarterly amortizations of the Term loan facilities as of September 30, 2013 is as follows:

 

     Term A-1      Term A-2      Term A-3      Term B  

December 31, 2013 – March 31, 2014

   $ 6,750       $ 750       $ 625       $ 57.4   

June 30, 2014 — December 31, 2014

   $ 13,500       $ 1,500       $ 625       $ 57.4   

March 31, 2015

   $ 13,500       $ 1,500       $ 1,250       $ 57.4   

June 30, 2015 — September 30, 2015

   $ 37,125       $ 4,125       $ 1,250       $ 57.4   

December 31, 2015

   $ 74,250       $ 8,250       $ 1,250       $ 57.4   

March 31, 2016 — September 30, 2016

   $ —        $ —         $ 1,250       $ 57.4   

December 31, 2016

   $ —        $ —         $ 1,250       $ 21,474.7   

March 31, 2017— June 30, 2017

   $ —        $ —         $ 21,250       $ —    

August 9, 2017

   $ —        $ —         $ 42,500       $ —    
XML 43 R39.htm IDEA: XBRL DOCUMENT v2.4.0.8
Fair Value of Financial Instruments - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Fair Value Disclosures [Abstract]  
Estimated fair value of Long-term debt (including current maturities) $ 2,149,281
Gross amount of company long term debt 2,147,369
Carrying amount of company long term debt $ 2,142,814
XML 44 R35.htm IDEA: XBRL DOCUMENT v2.4.0.8
Long-term Debt - Long-Term Debt (Parenthetical) (Detail)
Sep. 30, 2013
7 7/8% Senior Subordinated Notes [Member]
Apr. 22, 2010
7 7/8% Senior Subordinated Notes [Member]
Sep. 30, 2013
5 7/8% Senior Subordinated Notes [Member]
Feb. 09, 2012
5 7/8% Senior Subordinated Notes [Member]
Sep. 30, 2013
5% Senior Subordinated Notes [Member]
Oct. 30, 2012
5% Senior Subordinated Notes [Member]
Sep. 30, 2013
9 3/4% Senior Notes [Member]
Dec. 31, 2012
9 3/4% Senior Notes [Member]
Mar. 27, 2009
9 3/4% Senior Notes [Member]
Debt Instrument [Line Items]                  
Interest rate on senior notes 7.875% 7.875% 5.875% 5.875% 5.00% 5.00% 9.75% 9.75% 9.75%
XML 45 R36.htm IDEA: XBRL DOCUMENT v2.4.0.8
Long-term Debt - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 1 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Apr. 30, 2010
7 7/8% Senior Subordinated Notes [Member]
Sep. 30, 2013
7 7/8% Senior Subordinated Notes [Member]
Apr. 22, 2010
7 7/8% Senior Subordinated Notes [Member]
Feb. 29, 2012
5 7/8% Senior Subordinated Notes [Member]
Sep. 30, 2013
5 7/8% Senior Subordinated Notes [Member]
Feb. 09, 2012
5 7/8% Senior Subordinated Notes [Member]
Sep. 30, 2013
Letter of Credit [Member]
Feb. 09, 2012
Letter of Credit [Member]
Sep. 30, 2013
Senior Credit Facility [Member]
Feb. 09, 2012
Senior Credit Facility [Member]
Mar. 31, 2009
9 3/4% Senior Notes [Member]
Sep. 30, 2013
9 3/4% Senior Notes [Member]
Dec. 31, 2012
9 3/4% Senior Notes [Member]
Mar. 27, 2009
9 3/4% Senior Notes [Member]
Oct. 31, 2012
5% Senior Subordinated Notes [Member]
Sep. 30, 2013
5% Senior Subordinated Notes [Member]
Oct. 30, 2012
5% Senior Subordinated Notes [Member]
Feb. 09, 2012
Term Loan A-1 Facility [Member]
Feb. 09, 2012
Term Loan A-2 Facility [Member]
Feb. 09, 2012
Term Loan A-3 Facility [Member]
Feb. 09, 2012
Term Loan B Facility [Member]
Feb. 09, 2012
Incremental Facility [Member]
Debt Instrument [Line Items]                                                
Interest rate on convertible notes       7.875% 7.875%   5.875% 5.875%           9.75% 9.75% 9.75%   5.00% 5.00%          
Aggregate principal amount of debt issued $ 2,147,369       $ 400,000     $ 500,000               $ 350,000                
Gross proceeds from the issuance of debt   500,000                     314,927       535,000              
Net proceeds from the issuance of debt     392,000     489,000             307,489       527,100              
Description of Interest computation 360-day year comprised of twelve 30-day months                                              
Redemption percentage equal to principal amount include aggregate premium     100.00%     100.00%               100.00%     100.00%              
Redemption price percentage of the principal amount to be purchased     101.00%     101.00%               101.00%     101.00%              
Redemption percentage of aggregate principal amount of senior notes           35.00%                     35.00%              
Additional redeemed percentage of aggregate principal amount           105.875%                     105.00%              
Redemption percentage of issued notes which remain outstanding           65.00%                     65.00%              
Maximum borrowing limit of incremental loan facility                   250,000   100,000               270,000 30,000 100,000 575,000 300,000
Additional Senior credit facility 200,000                                              
Senior debt ratio 3.25                                              
Line of credit facility maximum borrowing capacity available to subsidiaries                                               110,000
Reduced percentage of consolidated excess cash flow to repay outstanding loan two 0.00%                                              
Ratio of indebtedness to net capital minimum                     1.00                          
Ratio of indebtedness to net capital one                     5.00                          
Outstanding revolving credit facility                 0                              
Letter of credit outstanding                 6,973                              
Remaining borrowing capacity under revolving credit facility $ 243,027                                              
XML 46 R13.htm IDEA: XBRL DOCUMENT v2.4.0.8
Earnings Per Share
9 Months Ended
Sep. 30, 2013
Earnings Per Share [Abstract]  
Earnings Per Share

8. Earnings Per Share

The calculation of basic earnings per share excludes any dilutive effect of stock options, while diluted earnings per share includes the dilutive effect of options. For the nine months ended September 30, 2013 and 2012 there were no dilutive shares excluded from this calculation resulting from the antidilutive effect of options.

XML 47 R30.htm IDEA: XBRL DOCUMENT v2.4.0.8
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2013
Customer lists and contracts [Member]
Dec. 31, 2012
Customer lists and contracts [Member]
Sep. 30, 2013
Customer lists and contracts [Member]
Minimum [Member]
Sep. 30, 2013
Customer lists and contracts [Member]
Maximum [Member]
Sep. 30, 2013
Non-competition agreements [Member]
Dec. 31, 2012
Non-competition agreements [Member]
Sep. 30, 2013
Non-competition agreements [Member]
Minimum [Member]
Sep. 30, 2013
Non-competition agreements [Member]
Maximum [Member]
Sep. 30, 2013
Site locations [Member]
Dec. 31, 2012
Site locations [Member]
Sep. 30, 2013
Site locations [Member]
Maximum [Member]
Sep. 30, 2013
Other [Member]
Dec. 31, 2012
Other [Member]
Sep. 30, 2013
Other [Member]
Minimum [Member]
Sep. 30, 2013
Other [Member]
Maximum [Member]
Finite-Lived Intangible Assets [Line Items]                                  
Estimated Life (Years)         7 years 10 years     3 years 15 years     15 years     5 years 15 years
Gross Carrying Amount $ 2,061,909 $ 2,009,191 $ 491,982 $ 482,883     $ 63,896 $ 63,519     $ 1,492,023 $ 1,449,181   $ 14,008 $ 13,608    
Accumulated Amortization 1,620,142 1,540,879 461,406 455,549     62,840 62,566     1,082,466 1,009,631   13,430 13,133    
Goodwill gross carrying amount 1,755,936 1,738,686                              
Goodwill accumulated amortization $ 253,536 $ 253,536                              
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XML 50 R12.htm IDEA: XBRL DOCUMENT v2.4.0.8
Summarized Financial Information of Subsidiaries
9 Months Ended
Sep. 30, 2013
Text Block [Abstract]  
Summarized Financial Information of Subsidiaries

7. Summarized Financial Information of Subsidiaries

Separate financial statements of each of the Company’s direct or indirect wholly owned subsidiaries that have guaranteed Lamar Media’s obligations with respect to its publicly issued notes (collectively, the “Guarantors”) are not included herein because the Company has no independent assets or operations, the guarantees are full and unconditional and joint and several, and the only subsidiaries that are not guarantors are in the aggregate minor.

Lamar Media’s ability to make distributions to Lamar Advertising is restricted under both the terms of the indentures relating to Lamar Media’s outstanding notes and by the terms of its senior credit facility. As of September 30, 2013 and December 31, 2012, Lamar Media was permitted under the terms of its outstanding senior subordinated notes to make transfers to Lamar Advertising in the form of cash dividends, loans or advances in amounts up to $1,973,528 and $1,706,875, respectively. Transfers to Lamar Advertising are subject to additional restrictions if, (i) under Lamar Media’s senior credit facility and as defined therein, (x) the total holdings debt ratio is greater than 5.75 to 1 or (y) the senior debt ratio is greater than 3.25 to 1.0, and (ii) if under the indenture for Lamar Media’s 9 3/4% senior notes and as defined therein, its senior leverage ratio is greater than or equal to 3.0 to 1. As of September 30, 2013, the total holdings debt ratio was less than 5.75 to 1 and Lamar Media’s senior debt ratio was less than 3.25 to 1 and its senior leverage ratio was less than 3.0 to 1; therefore, transfers to Lamar Advertising were not subject to any additional restrictions under the senior credit facility or pursuant to the indenture governing the 9 3/4% senior notes.

XML 51 R7.htm IDEA: XBRL DOCUMENT v2.4.0.8
Stock-Based Compensation
9 Months Ended
Sep. 30, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

2. Stock-Based Compensation

Equity Incentive Plan. Lamar Advertising’s 1996 Equity Incentive Plan, as amended, (the “Incentive Plan”) has reserved 15.5 million shares of Class A common stock for issuance to directors and employees, including shares underlying granted options and common stock reserved for issuance under its performance-based incentive program. Options granted under the plan expire ten years from the grant date with vesting terms ranging from three to five years and include 1) options that vest in one-fifth increments beginning on the grant date and continuing on each of the first four anniversaries of the grant date and 2) options that cliff-vest on the fifth anniversary of the grant date. All grants are made at fair market value based on the closing price of our Class A common stock as reported on the NASDAQ Global Select Market on the date of grant.

The number of shares of Class A common stock available under the Incentive Plan was increased by 2.5 million shares pursuant to an amendment to the Incentive Plan adopted by our board of directors on February 28, 2013 and approved by our stockholders at the Company’s 2013 Annual Meeting of Stockholders on May 23, 2013.

We use a Black-Scholes-Merton option pricing model to estimate the fair value of share-based awards. The Black-Scholes-Merton option pricing model incorporates various and highly subjective assumptions, including expected term and expected volatility. The Company granted options for an aggregate of 2,043,791 shares of its Class A common stock during the nine months ended September 30, 2013.

Stock Purchase Plan. In 2009 our board of directors adopted a new employee stock purchase plan, the 2009 Employee Stock Purchase Plan or 2009 ESPP, which was approved by our shareholders on May 28, 2009. The 2009 ESPP reserved 588,154 shares of Class A common stock for issuance to our employees, which included 88,154 shares of Class A common stock that had been available for issuance under our 2000 Employee Stock Purchase Plan or 2000 ESPP. The 2000 ESPP was terminated following the issuance of all shares that were subject to the offer that commenced under the 2000 ESPP on January 1, 2009 and ended June 30, 2009. The terms of the 2009 ESPP are substantially the same as the 2000 ESPP.

The number of shares of Class A common stock available under the 2009 ESPP was automatically increased by 78,963 shares on January 1, 2013 pursuant to the automatic increase provisions of the 2009 ESPP.

The following is a summary of the 2009 ESPP share activity for the nine months ended September 30, 2013:

 

     Shares  

Available for future purchases, January 1, 2013

     358,950   

Additional shares reserved under 2009 ESPP

     78,963   

Purchases

     (84,399
  

 

 

 

Available for future purchases, September 30, 2013

     353,514   
  

 

 

 

Performance-based compensation. Unrestricted shares of our Class A common stock may be awarded to key officers, employees and directors under our 1996 Equity Incentive Plan. The number of shares to be issued, if any, will be dependent on the level of achievement of performance measures for key officers and employees, as determined by the Company’s Compensation Committee based on our 2013 results. Any shares issued based on the achievement of performance goals will be issued in the first quarter of 2014. The shares subject to these awards can range from a minimum of 0% to a maximum of 100% of the target number of shares depending on the level at which the goals are attained. For the nine months ended September 30, 2013, the Company has recorded $7,757 as non-cash compensation expense related to performance-based awards. In addition, each of our non-employee directors automatically receive upon election or re-election a restricted stock award of our Class A common stock. These awards vest 50% on grant date and 50% on the last day of each director’s one year term. The Company recorded $332 non-cash compensation expense related to these awards for the nine months ended September 30, 2013.

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Earnings Per Share - Additional Information (Detail)
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Earnings Per Share [Abstract]    
The number of dilutive shares excluded from calculation of Basic Earning per share resulting from the antidilutive effect of options 0 0
XML 54 R19.htm IDEA: XBRL DOCUMENT v2.4.0.8
Acquisitions (Tables)
9 Months Ended
Sep. 30, 2013
Business Combinations [Abstract]  
Summary of Preliminary Allocation of Acquisition Costs

The following is a summary of the preliminary allocation of the acquisition costs in the above transactions.

 

     Total  

Property, plant and equipment

   $ 14,513   

Goodwill

     17,358   

Site locations

     43,493   

Non-competition agreements

     380   

Customer lists and contracts

     9,201   

Other asset

     961   

Current liabilities

     (2,130
  

 

 

 
   $ 83,776   
  

 

 

 
Summary of Unaudited Pro Forma Financial Information

Summarized below are certain unaudited pro forma statements of operations data for the three and nine months ended September 30, 2013 and September 30, 2012 as if each of the above acquisitions and the acquisitions occurring in 2012, which were fully described in the 2012 Combined Form 10-K, had been consummated as of January 1, 2012. This pro forma information does not purport to represent what the Company’s results of operations actually would have been had such transactions occurred on the date specified or to project the Company’s results of operations for any future periods.

 

     Three months ended
September 30,
     Nine months ended
September 30,
 
     2013      2012      2013      2012  

Pro forma net revenues

   $ 324,941       $ 317,586       $ 939,747       $ 916,282   
  

 

 

    

 

 

    

 

 

    

 

 

 

Pro forma net income applicable to common stock

   $ 18,504       $ 12,142       $ 34,409       $ 3,878   
  

 

 

    

 

 

    

 

 

    

 

 

 

Pro forma net income per common share—basic

   $ 0.20       $ 0.13       $ 0.36       $ 0.04   
  

 

 

    

 

 

    

 

 

    

 

 

 

Pro forma net income per common share—diluted

   $ 0.20       $ 0.13       $ 0.36       $ 0.04   
  

 

 

    

 

 

    

 

 

    

 

 

 
XML 55 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
Fair Value of Financial Instruments
9 Months Ended
Sep. 30, 2013
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

10. Fair Value of Financial Instruments

At September 30, 2013 and December 31, 2012, the Company’s financial instruments included cash and cash equivalents, marketable securities, accounts receivable, investments, accounts payable and borrowings. The fair values of cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings and current portion of long-term debt approximated carrying values because of the short-term nature of these instruments. Investments are reported at fair values. Fair values for investments held at cost are not readily available, but are estimated to approximate fair value. The estimated fair value of the Company’s long term debt (including current maturities) was $2,149,281, which exceeded both the gross and carrying amounts of $2,147,369 and $2,142,814, respectively, as of September 30, 2013.

XML 56 R22.htm IDEA: XBRL DOCUMENT v2.4.0.8
Asset Retirement Obligations (Tables)
9 Months Ended
Sep. 30, 2013
Asset Retirement Obligation Disclosure [Abstract]  
Information Related to Asset Retirement Obligation

The following table reflects information related to our asset retirement obligations:

 

Balance at December 31, 2012

   $  189,659   

Additions to asset retirement obligations

     2,392   

Accretion expense

     8,408   

Liabilities settled

     (2,525
  

 

 

 

Balance at September 30, 2013

   $ 197,934   
  

 

 

 
XML 57 R20.htm IDEA: XBRL DOCUMENT v2.4.0.8
Depreciation and Amortization (Tables)
9 Months Ended
Sep. 30, 2013
Text Block [Abstract]  
Depreciation and Amortization Expense Excluded from Operating Expenses

The amounts of depreciation and amortization expense excluded from the following operating expenses in its Statement of Operations are:

 

     Three months ended
September 30,
     Nine months ended
September 30,
 
     2013      2012      2013      2012  

Direct advertising expenses

   $ 69,040       $ 68,507       $ 207,265       $ 205,450   

General and administrative expenses

     1,151         985         2,921         3,007   

Corporate expenses

     2,992         4,423         9,306         10,826   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 73,183       $ 73,915       $ 219,492       $ 219,283   
  

 

 

    

 

 

    

 

 

    

 

 

 
XML 58 R1.htm IDEA: XBRL DOCUMENT v2.4.0.8
Document and Entity Information
9 Months Ended 9 Months Ended
Sep. 30, 2013
Oct. 31, 2013
Common Class A [Member]
Oct. 31, 2013
Common Class B [Member]
Oct. 31, 2013
Class Units [Member]
Sep. 30, 2013
LAMAR MEDIA CORP [Member]
Document Information [Line Items]          
Document Type 10-Q       10-Q
Amendment Flag false       false
Document Period End Date Sep. 30, 2013       Sep. 30, 2013
Document Fiscal Year Focus 2013       2013
Document Fiscal Period Focus Q3       Q3
Trading Symbol LAMR        
Entity Registrant Name LAMAR ADVERTISING CO/NEW       LAMAR MEDIA CORP/DE
Entity Central Index Key 0001090425       0000899045
Current Fiscal Year End Date --12-31       --12-31
Entity Filer Category Large Accelerated Filer       Non-accelerated Filer
Entity Common Stock, Shares Outstanding   80,028,599 14,610,365 100  
XML 59 R21.htm IDEA: XBRL DOCUMENT v2.4.0.8
Goodwill and Other Intangible Assets (Tables)
9 Months Ended
Sep. 30, 2013
Goodwill And Intangible Assets Disclosure [Abstract]  
Summary of Intangible Assets

The following is a summary of intangible assets at September 30, 2013 and December 31, 2012.

 

     Estimated
Life
(Years)
     September 30, 2013      December 31, 2012  
        Gross Carrying
Amount
     Accumulated
Amortization
     Gross Carrying
Amount
     Accumulated
Amortization
 

Customer lists and contracts

     7—10       $ 491,982       $ 461,406       $ 482,883       $ 455,549   

Non-competition agreements

     3—15         63,896         62,840         63,519         62,566   

Site locations

     15         1,492,023         1,082,466         1,449,181         1,009,631   

Other

     5—15         14,008         13,430         13,608         13,133   
     

 

 

    

 

 

    

 

 

    

 

 

 
      $ 2,061,909       $ 1,620,142       $ 2,009,191       $ 1,540,879   

Unamortizable intangible assets:

              

Goodwill

      $ 1,755,936       $ 253,536       $ 1,738,686       $ 253,536   

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Non-Cash Financing and Investing Activities
9 Months Ended
Sep. 30, 2013
Supplemental Cash Flow Elements [Abstract]  
Non-Cash Financing and Investing Activities

11. Non-Cash Financing and Investing Activities

For the period ended September 30, 2012 the Company had non-cash investing activity of $3,098 related to acquisitions of outdoor advertising assets. There were no significant non-cash investing or financing activities for the nine months ended September 30, 2013.