10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended March 31, 2018

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 1-36756

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  ☒    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  ☒    No  ☐

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

Large accelerated filer	☒		Accelerated filer	☐
Non-accelerated filer	☐	(Do not check if a smaller reporting company)	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if Lamar Advertising Company has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

Large accelerated filer	☐		Accelerated filer	☐
Non-accelerated filer	☒	(Do not check if a smaller reporting company)	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if Lamar Media Corp. has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

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

The number of shares of Lamar Advertising Company’s Class A common stock outstanding as of April 25, 2018: 84,024,468

The number of shares of the Lamar Advertising Company’s Class B common stock outstanding as of April 25, 2018: 14,420,085

The number of shares of Lamar Media Corp. common stock outstanding as of April 25, 2018: 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.

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:

• our future financial performance and condition;

• our business plans, objectives, prospects, growth and operating strategies;

• our future capital expenditures and level of acquisition activity;

• market opportunities and competitive positions;

• our future cash flows and expected cash requirements;

• estimated risks;

• our ability to maintain compliance with applicable covenants and restrictions included in Lamar Media’s senior credit facility and the indentures relating to its outstanding notes;

• stock price;

• estimated future dividend distributions; and

• our ability to remain qualified as a Real Estate Investment Trust (“REIT”).

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 actual results, performance or achievements of Lamar Advertising Company (referred to herein as the “Company” or “Lamar Advertising”) or Lamar Media Corp. (referred to herein as “Lamar Media”) to differ materially from those expressed or implied by the forward-looking statements:

• the state of the economy and financial markets generally and their effects on the markets in which we operate and the broader demand for advertising;

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

• risks and uncertainties relating to our significant indebtedness;

• the demand for outdoor advertising and its continued popularity as an advertising medium;

• our need for, and ability to obtain, additional funding for acquisitions, operations and debt refinancing;

• increased competition within the outdoor advertising industry;

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

• our ability to renew expiring contracts at favorable rates;

• the integration of businesses that we acquire and our ability to recognize cost savings and operating efficiencies as a result of these acquisitions;

• our ability to successfully implement our digital deployment strategy;

• the market for our Class A common stock;

• changes in accounting principles, policies or guidelines;

• our ability to effectively mitigate the threat of and damages caused by hurricanes and other kinds of severe weather;

• our ability to qualify as a REIT and maintain our status as a REIT; and

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

The forward-looking statements in this report are based on our current good faith beliefs, however, actual results may differ due to inaccurate assumptions, the factors listed above or other foreseeable or unforeseeable factors. Consequently, we 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 and 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.

2

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, 2017 of the Company and Lamar Media (the “2017 Combined Form 10-K”), filed on February 27, 2018 and as such risk factors may be updated or supplemented, from time to time, in our combined Quarterly Reports on Form 10-Q.

3

CONTENTS

	Page
PART I — FINANCIAL INFORMATION	5
ITEM 1. FINANCIAL STATEMENTS	5
Lamar Advertising Company
Condensed Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017	5
Condensed Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2018 and 2017	6
Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2017	7
Notes to Condensed Consolidated Financial Statements	8-15
Lamar Media Corp.
Condensed Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017	16
Condensed Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2018 and 2017	17
Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2017	18
Notes to Condensed Consolidated Financial Statements	19-25
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	26-37
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk	38
ITEM 4. Controls and Procedures	39
PART II — OTHER INFORMATION	39
ITEM 1A. Risk Factors	39
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds	39
ITEM 6. Exhibits	39

4

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)

	March 31, 2018			December 31, 2017
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	10,046		$	115,471
Receivables, net of allowance for doubtful accounts of $11,000 and $10,055 in 2018 and      2017, respectively		209,232			201,699
Prepaid lease expenses		77,429			51,074
Other current assets		59,292			52,275
Total current assets		355,999			420,519
Property, plant and equipment		3,372,406			3,384,723
Less accumulated depreciation and amortization		(2,179,506	)		(2,170,585	)
Net property, plant and equipment		1,192,900			1,214,138
Goodwill		1,737,402			1,740,454
Intangible assets		770,370			796,348
Other assets		57,856			42,886
Total assets	$	4,114,527		$	4,214,345
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable	$	19,176		$	17,961
Current maturities of long-term debt, net of deferred financing costs of $4,750 and $5,133      in 2018 and 2017, respectively		23,978			17,664
Accrued expenses		81,277			197,675
Deferred income		99,160			92,694
Total current liabilities		223,591			325,994
Long-term debt, net of deferred financing costs of $23,387 and $23,586 in 2018 and 2017,      respectively		2,603,982			2,539,026
Deferred income tax liabilities		845			884
Asset retirement obligation		215,055			215,089
Other liabilities		30,855			29,859
Total liabilities		3,074,328			3,110,852
Stockholders’ equity:
Series AA preferred stock, par value $.001, $63.80 cumulative dividends,      5,720 shares authorized; 5,720 shares issued and outstanding at 2018 and 2017		—			—
Class A common stock, par value $.001, 362,500,000 shares authorized; 84,413,371 and      84,169,118 shares issued at 2018 and 2017, respectively; 84,024,468 and 83,837,834      issued and outstanding at 2018 and 2017, respectively		84			84
Class B common stock, par value $.001, 37,500,000 shares authorized,      14,420,085 shares issued and outstanding at 2018 and 2017		14			14
Additional paid-in capital		1,778,441			1,762,499
Accumulated comprehensive income		759			1,302
Accumulated deficit		(713,687	)		(639,106	)
Cost of shares held in treasury, 388,903 and 331,284 shares at 2018 and 2017,      respectively		(25,412	)		(21,300	)
Stockholders’ equity		1,040,199			1,103,493
Total liabilities and stockholders’ equity	$	4,114,527		$	4,214,345

See accompanying notes to condensed consolidated financial statements.

5

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Condensed Consolidated Statements of Income and Comprehensive Income

(Unaudited)

(In thousands, except share and per share data)

	Three months ended March 31,
	2018			2017
Statements of Income
Net revenues	$	361,026		$	346,362
Operating expenses (income)
Direct advertising expenses (exclusive of depreciation and    amortization)		138,293			131,844
General and administrative expenses (exclusive of depreciation    and amortization)		70,208			72,031
Corporate expenses (exclusive of depreciation and    amortization)		21,104			16,633
Depreciation and amortization		56,840			51,425
Loss (gain) on disposition of assets		8,701			(1,036	)
		295,146			270,897
Operating income		65,880			75,465
Other expense (income)
Loss on extinguishment of debt		15,429			—
Interest income		(24	)		(4	)
Interest expense		33,579			31,483
		48,984			31,479
Income before income tax expense		16,896			43,986
Income tax expense		1,844			2,199
Net income		15,052			41,787
Cash dividends declared and paid on preferred stock		91			91
Net income applicable to common stock	$	14,961		$	41,696
Earnings per share:
Basic earnings per share	$	0.15		$	0.43
Diluted earnings per share	$	0.15		$	0.42
Cash dividends declared per share of common stock	$	0.91		$	0.83
Weighted average common shares used in computing earnings    per share:
Weighted average common shares outstanding basic		98,301,551			97,575,481
Weighted average common shares outstanding diluted		98,726,934			98,149,974
Statements of Comprehensive Income
Net income	$	15,052		$	41,787
Other comprehensive (loss) income
Foreign currency translation adjustments		(543	)		143
Comprehensive income	$	14,509		$	41,930

See accompanying notes to condensed consolidated financial statements.

6

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

	Three months ended March 31,
	2018			2017
Cash flows from operating activities:
Net income	$	15,052		$	41,787
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization		56,840			51,425
Stock-based compensation		7,514			2,478
Amortization included in interest expense		1,242			1,348
Loss (gain) on disposition of assets and investments		8,701			(1,036	)
Loss on extinguishment of debt		15,429			—
Deferred tax benefit		(87	)		(355	)
Provision for doubtful accounts		2,206			1,428
Changes in operating assets and liabilities
(Increase) decrease in:
Receivables		(9,876	)		(955	)
Prepaid lease expenses		(26,968	)		(27,097	)
Other assets		(7,542	)		(12,053	)
Increase (decrease) in:
Trade accounts payable		944			526
Accrued expenses		(27,682	)		(26,646	)
Other liabilities		4,999			3,646
Net cash provided by operating activities		40,772			34,496
Cash flows from investing activities:
Acquisitions		(6,637	)		(17,779	)
Capital expenditures		(23,252	)		(19,236	)
Proceeds received from insurance claims		790			—
Proceeds from disposition of assets and investments		244			1,592
Decrease in notes receivable		2			4
Net cash used in investing activities		(28,853	)		(35,419	)
Cash flows from financing activities:
Cash used for purchase of treasury stock		(4,112	)		(8,997	)
Net proceeds from issuance of common stock		3,974			12,934
Principal payments on long term debt		(5,703	)		(5,625	)
Payment on revolving credit facility		(135,000	)		(54,000	)
Proceeds received from revolving credit facility		112,000			134,000
Redemption of senior subordinated notes		(509,790	)		—
Proceeds received from senior credit facility Term B loan		599,250			—
Debt issuance costs		(6,290	)		—
Distributions to non-controlling interest		(118	)		(205	)
Dividends/distributions		(171,258	)		(81,279	)
Net cash used in financing activities		(117,047	)		(3,172	)
Effect of exchange rate changes in cash and cash equivalents		(297	)		187
Net decrease in cash and cash equivalents		(105,425	)		(3,908	)
Cash and cash equivalents at beginning of period		115,471			35,530
Cash and cash equivalents at end of period	$	10,046		$	31,622
Supplemental disclosures of cash flow information:
Cash paid for interest	$	49,600		$	43,446
Cash paid for foreign, state and federal income taxes	$	1,490		$	3,859

See accompanying notes to condensed consolidated financial statements.

7

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 2017 Combined Form 10-K. Subsequent events, if any, are evaluated through the date on which the financial statements are issued.

2. Revenues

On January 1, 2018, we adopted FASB Accounting Standards Update (“ASU”) No. 2014-09 (Codified as ASC 606), Revenue from Contracts with Customersusing the cumulative effect transition method applied to those contracts which were not completed as of January 1, 2018 and are not accounted for under ASC 840, Leases.  Results for reporting periods beginning after January 1, 2018 are presented under ASC 606 or 840, while comparative information has not been adjusted and continues to be reported under ASC 605.

A majority of our billboard, logo, and transit space contracts are accounted for under ASC 840 and will continue to be accounted for under the topic until January 1, 2019, our adoption date of FASB Accounting Standards Update (“ASU”) No. 2016-02 (Codified as ASC 842), Leases. Contracts which begin prior to January 1, 2019 and are accounted for under ASC 840 will continue to be accounted for as a lease until the contract ends or is modified. Contracts beginning or modified on or after January 1, 2019 which do not meet the criteria of a lease under ASC 842 will be accounted for under ASC 606 Revenue. The majority of our advertising space contracts will not meet the definition of a lease under ASC 842.

Revenue Recognition

Advertising Revenues:  The majority of our revenues are derived from contracts for advertising space on billboard, logo and transit displays and are currently accounted for under ASC 840 Leases.  Upon the Company’s adoption of ASC 842, Leases the majority of our contracts for advertising space will transition to being accounted for under ASC 606, Revenue. The contract revenues, under ASC 840, Leases and ASC 606, Revenue, are recognized ratably over their contract life.

Other revenues:  Our other component of revenue primarily consists of production services which includes creating and printing the advertising copy.  As of January 1, 2018 revenue for production contracts is recognized under ASC 606. Contract revenues for production services are recognized upon satisfaction of the contract which is typically less than one week.

Arrangements with multiple performance obligations:  Our contracts with customers may include multiple performance obligations.  For such arrangements, we allocate revenue to each performance obligation based on the relative standalone selling price.  We determine standalone selling prices based on the prices charged to customers using expected cost plus margin.

Deferred revenues:  We record deferred revenues when cash payments are received or due in advance of our performance obligation. The term between invoicing and when a payment is due is not significant.  For certain services we require payment before the product or services are delivered to the customer.  The balance of deferred income is considered short-term and will be recognized in revenue within twelve months.

Practical Expedients and Exemptions: Upon our transition to ASC 606 from ASC 840, the Company plans to utilize the following practical expedients and exemptions from ASC 606.  We generally expense sales commissions when incurred because the amortization period is one year or less. These costs are recorded within direct advertising expense (exclusive of depreciation and amortization).  We do not disclose the value of unsatisfied performance obligations as the majority of our contracts with customers have an original expected length of less than one year. For contracts with customers which exceed one year the future amount to be invoiced to the customer corresponds directly with the value to be received by the customer.

The following table presents our disaggregated revenue by source including both revenues accounted for under ASC 840 and ASC 606 for the three months ended March 31, 2018 and March 31, 2017.

8

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In thousands, except share and per share data)

	Three months ended March 31,
	2018		2017
Billboard Advertising	$	312,803	$	301,185
Logo Advertising		20,629		20,329
Transit Advertising		27,594		24,848
Net Revenues	$	361,026	$	346,362

3. 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.

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 9,000 shares of its Class A common stock during the three months ended March 31, 2018. At March 31, 2018 a total of 1,070,266 shares were available for future grant.

Stock Purchase Plan. Lamar Advertising’s 2009 Employee Stock Purchase Plan or 2009 ESPP  was approved by our shareholders on May 28, 2009.  The number of shares of Class A common stock available under the 2009 ESPP was automatically increased by 83,838 shares on January 1, 2018 pursuant to the automatic increase provisions of the 2009 ESPP.

The following is a summary of 2009 ESPP share activity for the three months ended March 31, 2018:

	Shares
Available for future purchases, January 1, 2018		225,418
Additional shares reserved under 2009 ESPP		83,838
Purchases		(39,515	)
Available for future purchases, March 31, 2018		269,741

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 2018 results. Any shares issued based on the achievement of performance goals will be issued in the first quarter of 2019. 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 three months ended March 31, 2018, the Company has recorded $6,517 as stock-based compensation expense related to performance-based awards. In addition, each non-employee director automatically receives upon election or re-election a restricted stock award of our Class A common stock. The awards vest 50% on grant date and 50% on the last day of the directors’ one year term. The Company recorded a $41 stock-based compensation expense related to these awards for the three months ended March 31, 2018.

9

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In thousands, except share and per share data)

4. Depreciation and Amortization

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

	Three months ended March 31,
	2018		2017
Direct advertising expenses	$	53,016	$	48,318
General and administrative expenses		995		930
Corporate expenses		2,829		2,177
	$	56,840	$	51,425

5. Goodwill and Other Intangible Assets

The following is a summary of intangible assets at March 31, 2018 and December 31, 2017:  

	Estimated		March 31, 2018				December 31, 2017
	Life (Years)		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizable intangible assets:
Customer lists and contracts	7—10		$	577,351	$	501,494	$	586,055	$	505,778
Non-competition agreements	3—15			65,482		63,941		65,477		63,924
Site locations		15		2,047,492		1,369,167		2,072,059		1,372,954
Other	2—15			45,805		31,158		45,741		30,328
			$	2,736,130	$	1,965,760	$	2,769,332	$	1,972,984
Unamortizable intangible assets:
Goodwill			$	1,990,938	$	253,536	$	1,993,990	$	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, 2017	$	215,089
Additions to asset retirement obligations		103
Accretion expense		1,193
Liabilities settled		(1,330	)
Balance at March 31, 2018	$	215,055

7. Distribution Restrictions

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 March 31, 2018 and December 31, 2017, Lamar Media was permitted under the terms of its outstanding senior subordinated and senior notes to make transfers to Lamar Advertising in the form of cash dividends, loans or advances in amounts up to $2,902,529 and $2,975,593, respectively.

As of March 31, 2018, Lamar Media’s senior credit facility allows it to make transfers to Lamar Advertising in any taxable year up to the amount of Lamar Advertising’s taxable income (without any deduction for dividends paid). In addition, as of March 31, 2018, transfers to Lamar Advertising are permitted under Lamar Media’s senior credit facility and as defined therein up to the available cumulative credit, as long as no default has occurred and is continuing and, after giving effect to such distributions, (i) the total debt

10

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In thousands, except share and per share data)

ratio is less than 6.5 to 1 and (ii) the secured debt ratio does not exceed 3.5 to 1. As of March 31, 2018, the total debt ratio was less than 6.5 to 1 and Lamar Media’s secured debt ratio was less than 3.5 to 1, and the available cumulative credit was $1,653,009.

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 stock options. There were no dilutive shares excluded from this calculation resulting from their anti-dilutive effect for the three months ended March 31, 2018 or 2017.

9. Long-term Debt

Long-term debt consists of the following at March 31, 2018 and December 31, 2017:

	March 31, 2018
	Debt			Deferred financing costs			Debt, net of deferred financing costs
Senior Credit Facility	$	1,207,384		$	13,462		$	1,193,922
5% Senior Subordinated Notes		535,000			4,725			530,275
5 3/8% Senior Notes		510,000			4,805			505,195
5 3/4% Senior Notes		400,000			5,145			394,855
Other notes with various rates and terms		3,713			—			3,713
		2,656,097			28,137			2,627,960
Less current maturities		(28,728	)		(4,750	)		(23,978	)
Long-term debt, excluding current maturities	$	2,627,369		$	23,387		$	2,603,982

	December 31, 2017
	Debt			Deferred financing costs			Debt, net of deferred financing costs
Senior Credit Facility	$	636,750		$	7,689		$	629,061
5 7/8% Senior Subordinated Notes		500,000			5,850			494,150
5% Senior Subordinated Notes		535,000			4,927			530,073
5 3/8% Senior Notes		510,000			4,982			505,018
5 3/4% Senior Notes		400,000			5,271			394,729
Other notes with various rates and terms		3,659			—			3,659
		2,585,409			28,719			2,556,690
Less current maturities		(22,797	)		(5,133	)		(17,664	)
Long-term debt, excluding current maturities	$	2,562,612		$	23,586		$	2,539,026

Senior Credit Facility

On March 16, 2018, Lamar Media Corp. entered into Amendment No. 1 (Amendment No. 1”) to the Third Amended and Restated Credit Agreement dated May 15, 2017, with Lamar Advertising, certain of Lamar Media’s subsidiaries as Guarantors, JPMorgan Chase Bank, N.A. as Administrative Agent and the lenders named therein, under which the parties agreed to amend the existing senior credit facility to establish a new $600,000 Term B Loan Facility (the “Term B loan”), which will mature on March 16, 2025.  The Term B loan will begin amortizing on June 30, 2018 in equal quarterly installments of $1,500 with the remainder payable at maturity.  Lamar borrowed the full amount of the Term B loan on March 16, 2018.  The proceeds from the Term B loan, together with available cash on hand were used to redeem in full Lamar Media’s 5 7/8% Senior Subordinated Notes due 2022 (the “5 7/8% Notes).

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LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In thousands, except share and per share data)

Lamar Media’s Third Amended and Restated Credit Agreement dated as of May 15, 2017 (as amended by Amendment No. 1, the “senior credit facility”) consists of (i) a $450,000 senior secured revolving credit facility which will mature on May 15, 2022, (ii) a $450,000 Term A loan facility (the “Term A loans” and together with the Term B loans, the “Term loans”)  which will mature on May 15, 2022, (iii) the Term B loans and (iv) an incremental facility pursuant to which Lamar Media may incur additional term loan tranches or increase its revolving credit facility subject to pro forma compliance with the secured debt ratio financial maintenance covenant.

Under the senior credit facility Lamar Media borrowed all $450,000 in Term A loans on May 15, 2017.  The net proceeds, together with borrowing under the revolving portion of senior credit facility and cash on hand, were used to repay all outstanding amounts under the existing senior credit facility, and all revolving commitments under that facility were terminated.

The Term A loans mature on February 2, 2019 and the Term B loans mature on March 16, 2025. The remaining quarterly installments are scheduled to be paid on each June 30, September 30, December 31, and March 31 as follows:

Principal Payment Date	Term A		Term B
June 30, 2018-June 30, 2019	$	5,625	$	1,500
September 30, 2019-June 30, 2020	$	8,438	$	1,500
September 30, 2020-March 31, 2022	$	16,875	$	1,500
Term A Loan Maturity Date	$	253,125	$	—
June 30, 2022-December 31, 2024	$	—	$	1,500
Term B Loan Maturity Date	$	—	$	559,500

The Term loans bear interest at rates based on the Adjusted LIBO Rate (“Eurodollar term loans”) or the Adjusted Base Rate (“Base Rate term loans”), at Lamar Media’s option. Eurodollar term loans bear interest at a rate per annum equal to the Adjusted LIBO Rate plus 1.75%; (or the Adjusted LIBO Rate plus 1.50% at any time the Total Debt Ratio is less than or equal to 3.25 to 1 for Term A loans only). Base Rate term loans bear interest at a rate per annum equal to the Adjusted Base Rate plus 0.75% (or the Adjusted Base Rate plus 0.50% at any time the Total Debt Ratio is less than or equal to 3.25 to 1 for Term A loans only). The revolving credit facility bears interest at rates based on the Adjusted LIBO Rate (“Eurodollar revolving loans”) or the Adjusted Base Rate (“Base Rate revolving loans”), at Lamar Media’s option. Eurodollar revolving loans bear interest at a rate per annum equal to the Adjusted LIBO Rate plus 2.25% (or the Adjusted LIBO Rate plus 2.00% at any time the Total Debt Ratio is less than or equal to 4.25 to 1; or the Adjusted LIBO Rate plus 1.75% at any time the Total Debt Ratio is less than or equal to 3.00 to 1). Base Rate revolving Loans bear interest at a rate per annum equal to the Adjusted Base Rate plus 1.25% (or the Adjusted Base Rate plus 1.0% at any time the total debt ratio is less than or equal to 4.25 to 1, or the Adjusted Base Rate plus 0.75% at any time the Total Debt Ratio is less than or equal to 3.00 to 1). The guarantees, covenants, events of default and other terms of the senior credit facility apply to the Term A and B loans and revolving credit facility.

As of March 31, 2018, there was $175,000 outstanding under the revolving credit facility. Availability under the revolving facility is reduced by the amount of any letters of credit outstanding. Lamar Media had $12,950 in letters of credit outstanding as of March 31, 2018 resulting in $262,050 of availability under its revolving facility. Revolving credit loans may be requested under the revolving credit facility at any time prior to its maturity on May 15, 2022.

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.

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LAMAR ADVERTISING COMPANY

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Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In thousands, except share and per share data)

The senior credit facility contains provisions that allow Lamar Media to conduct its affairs in a manner that allows Lamar Advertising to qualify and remain qualified as a REIT, including by allowing Lamar Media to make distributions to Lamar Advertising required for the Company to qualify and remain qualified for taxation as a REIT, subject to certain restrictions.

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 a specified senior debt ratio at all times and in addition, must satisfy a total debt ratio in order to incur debt, make distributions or make certain investments.

Lamar Advertising and Lamar Media were in compliance with all of the terms of their indentures and the senior credit facility provisions during the periods presented.

5 7/8% Senior Subordinated Notes

On February 9, 2012, Lamar Media completed an institutional private placement of $500,000 aggregate principal amount of its 5 7/8% Notes. The institutional private placement resulted in net proceeds to Lamar Media of approximately $489,000. The Company used the proceeds from the Term B loans to redeem all of the 5 7/8% Notes on March 19, 2018 at a redemption price of 101.958% of the aggregate principal amount of the outstanding 5 7/8% Notes, plus accrued and unpaid interest up to but not including the redemption date. In conjunction with the redemption the Company recorded a loss on debt extinguishment of $15,429, of which $9,790 was cash, as of March 31, 2018.

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.

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.

5 3/8% Senior Notes

On January 10, 2014, Lamar Media completed an institutional private placement of $510,000 aggregate principal amount of 5 3/8% Senior Notes due 2024 (the “5 3/8% Notes”). The institutional private placement resulted in net proceeds to Lamar Media of approximately $502,300.

At any time prior to January 15, 2019, Lamar Media may redeem some or all of the 5 3/8% Notes at a price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest thereon plus a make-whole premium. On or after January 15, 2019, Lamar Media may redeem the 5 3/8% Notes, in whole or in part, in cash at redemption prices specified in the 5 3/8% 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 3/8% Notes at a price equal to 101% of the principal amount of the 5 3/8% Notes, plus accrued and unpaid interest, up to but not including the repurchase date.

5 3/4% Senior Notes

On January 28, 2016, Lamar Media completed an institutional private placement of $400,000 aggregate principal amount of 5 3/4% Senior Notes due 2026 (the “5 3/4 % Notes”). The institutional private placement resulted in net proceeds to Lamar Media of approximately $394,500.

Lamar Media may redeem up to 35% of the aggregate principal amount of the 5 3/4% Notes, at any time and from time to time, at a price equal to 105.750% 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, 2019, provided that following the redemption, at least 65% of

13

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In thousands, except share and per share data)

the 5 3/4% Notes that were originally issued remain outstanding and any such redemption occurs within 120 days following the closing of any such public equity offering. At any time prior to February 1, 2021, Lamar Media may redeem some or all of the 5 3/4% Notes at a price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest thereon plus a make-whole premium. On or after February 1, 2021, Lamar Media may redeem the 5 3/4% Notes, in whole or in part, in cash at redemption prices specified in the 5 3/4% 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 3/4% Notes at a price equal to 101% of the principal amount of the 5 3/4% Notes, plus accrued and unpaid interest, up to but not including the repurchase date.

10. Fair Value of Financial Instruments

At March 31, 2018 and December 31, 2017, 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. Investment contracts and assets held for sale 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 $2,689,914 which exceeded the carrying amount of $2,656,097 as of March 31, 2018. The majority of the fair value is determined using observed prices of publicly traded debt (level 1 in the fair value hierarchy) and the remaining is valued based on quoted prices for similar debt (level 2 in the fair value hierarchy).

11. New Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. Generally Accepted Accounting Principles (“GAAP”) when it becomes effective. In August 2015, the FASB issued ASU No. 2015-14 deferring the effective date from January 1, 2017 to January 1, 2018, while allowing for early adoption as of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company adopted the provisions of ASU No. 2014-09 on January 1, 2018 using the cumulative effect transition method. The Company did not have an adjustment to its opening balance of retained earnings for the adoption of this update.

In February 2016, the FASB issued ASU No. 2016-02, Leases.  The update is to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about lease arrangements.  The amendments in this update are effective beginning January 1, 2019 with retrospective application. The Company is in the process of assessing the impact ASU No. 2016-02 will have on our consolidated financial statements.  The Company expects the primary impact to our consolidated financial statements will be the recognition, on a discounted basis, of our minimum commitments under non-cancelable operating leases on our consolidated balance sheets, resulting in the recording of right of use assets and lease obligations.

In January 2018, the FASB issued ASU No. 2018-01, Leases (Topic 842) – Land Easement Practical Expedient for Transition to Topic 842. The update provides an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the current leases guidance in Topic 840. An entity that elects this practical expedient should evaluate new or modified land easements under Topic 842 upon adoption. An entity that does not elect this practical expedient should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease.  The Company plans to elect the provided practical expedients within this update upon our adoption of Topic 842.

12. Dividends/Distributions

During the three months ended March 31, 2018, the Company paid cash distributions of its REIT taxable income in the amount of $171,076 or $1.74 per share. The distributions paid during the three months ended March 31, 2018 include distributions declared on February 22, 2018 of $89,542 or $0.91 per share and distributions declared and accrued as of December 31, 2017 of $81,534 or $0.83 per share. During the three months ended March 31, 2017, the Company declared and paid cash distributions of its REIT taxable income in an aggregate amount of $81,188 or $0.83 per share. The amount, timing and frequency of future distributions will be at the

14

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In thousands, except share and per share data)

sole discretion of the Board of Directors and will be declared based upon various factors, a number of which may be beyond the Company’s control, including financial condition and operating cash flows, the amount required to maintain REIT status and reduce any income and excise taxes that the Company otherwise would be required to pay, limitations on distributions in our existing and future debt instruments, the Company’s ability to utilize net operating losses to offset, in whole or in part, the Company’s distribution requirements, limitations on its ability to fund distributions using cash generated through its taxable REIT subsidiaries (TRSs) and other factors that the Board of Directors may deem relevant. During the three months ended March 31, 2018, the Company paid cash dividend distributions to holders of its Series AA Preferred Stock in an aggregate amount of $182 or $31.90 per share, which included distributions declared during the period as well as those declared and accrued in the fourth quarter of 2017. During the three months ended March 31, 2017, the Company paid cash dividend distributions to holders of its Series AA Preferred Stock in an aggregate amount of $91 or $15.95 per share.

13. Information about Geographic Areas

Revenues from external customers attributable to foreign countries totaled $7,525 and $6,893 for the three months ended March 31, 2018 and 2017, respectively. Net carrying value of long lived assets located in foreign countries totaled $3,142 and $3,571 as of March 31, 2018 and December 31, 2017, respectively. All other revenues from external customers and long lived assets relate to domestic operations.

14. Divestiture of Assets

As of March 31, 2018, the Company had initiated a plan to sell its billboard assets in Puerto Rico and recorded them as held for sale. The Company recorded a loss for the disposal group of $8,666 within loss (gain) on disposition of assets in our Condensed Consolidated Statements of Income and Comprehensive Income at March 31, 2018. The fair value of the disposal group of $12,500 was recorded within other assets in our Condensed Consolidated Balance Sheet as of March 31, 2018. The transaction to sell the disposal group was completed on April 16, 2018.

15. Subsequent Events

On May 1, 2018, the Company entered into an equity distribution agreement (the “Sales Agreement”) with J.P. Morgan Securities LLC, Wells Fargo Securities LLC, and SunTrust Robinson Humphrey, Inc. as its sales agents (each a “Sales Agent”, and collectively, the “Sales Agents”).  Under the terms of the Sales Agreement, the Company may, from time to time, issue and sell shares of its Class A common stock, par value $0.001 per share (the “Class A Common Stock”), having an aggregate offering price of up to $400,000, through the Sales Agents as either agents or principals.

Sales of the Class A Common Stock, if any, may be made in negotiated transactions or transactions that are deemed to be “at-the-market offerings” as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made directly on or through the Nasdaq Global Select Market and any other existing trading market for the Class A Common Stock, or sales made to or through a market maker other than on an exchange.  The Company has no obligation to sell any of the Class A Common Stock under the Sales Agreement and may at any time suspend solicitations and offers under the Sales Agreement.

15

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share data)

	March 31, 2018			December 31, 2017
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	9,546		$	114,971
Receivables, net of allowance for doubtful accounts of $11,000 and $10,055 in 2018 and     2017, respectively		209,232			201,699
Prepaid lease expenses		77,429			51,074
Other current assets		59,292			52,275
Total current assets		355,499			420,019
Property, plant and equipment		3,372,406			3,384,723
Less accumulated depreciation and amortization		(2,179,506	)		(2,170,585	)
Net property, plant and equipment		1,192,900			1,214,138
Goodwill		1,727,251			1,730,303
Intangible assets		769,901			795,879
Other assets		52,572			37,603
Total assets	$	4,098,123		$	4,197,942
LIABILITIES AND STOCKHOLDER’S EQUITY
Current liabilities:
Trade accounts payable	$	19,176		$	17,961
Current maturities of long-term debt, net of deferred financing costs of $4,750 and    $5,133 in 2018 and 2017, respectively		23,978			17,664
Accrued expenses		77,072			193,667
Deferred income		99,160			92,694
Total current liabilities		219,386			321,986
Long-term debt, net of deferred financing costs of $23,387 and $23,586 in 2018 and    2017,  respectively		2,603,982			2,539,026
Deferred income tax liabilities		845			884
Asset retirement obligation		215,055			215,089
Other liabilities		30,855			29,859
Total liabilities		3,070,123			3,106,844
Stockholder’s equity:
Common stock, par value $.01, 3,000 shares authorized, 100 shares issued and    outstanding at 2018 and 2017		—			—
Additional paid-in-capital		2,848,881			2,832,940
Accumulated comprehensive income		759			1,302
Accumulated deficit		(1,821,640	)		(1,743,144	)
Stockholder’s equity		1,028,000			1,091,098
Total liabilities and stockholder’s equity	$	4,098,123		$	4,197,942

See accompanying notes to condensed consolidated financial statements.

16

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Condensed Consolidated Statements of Income and Comprehensive Income

(Unaudited)

(In thousands, except share and per share data)

	Three months ended March 31,
	2018			2017
Statements of Income
Net revenues	$	361,026		$	346,362
Operating expenses (income)
Direct advertising expenses (exclusive of depreciation and    amortization)		138,293			131,844
General and administrative expenses (exclusive of depreciation    and amortization)		70,208			72,031
Corporate expenses (exclusive of depreciation and    amortization)		20,998			16,527
Depreciation and amortization		56,840			51,425
Loss (gain) on disposition of assets		8,701			(1,036	)
		295,040			270,791
Operating income		65,986			75,571
Other expense (income)
Loss on extinguishment of debt		15,429			—
Interest income		(24	)		(4	)
Interest expense		33,579			31,483
		48,984			31,479
Income before income tax expense		17,002			44,092
Income tax expense		1,844			2,199
Net income	$	15,158		$	41,893
Statements of Comprehensive Income
Net income	$	15,158		$	41,893
Other comprehensive (loss) income
Foreign currency translation adjustments		(543	)		143
Comprehensive income	$	14,615		$	42,036

See accompanying notes to condensed consolidated financial statements.

17

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

	Three months ended March 31,
	2018			2017
Cash flows from operating activities:
Net income	$	15,158		$	41,893
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		56,840			51,425
Stock-based compensation		7,514			2,478
Amortization included in interest expense		1,242			1,348
Loss (gain) on disposition of assets and investments		8,701			(1,036	)
Loss on extinguishment of debt		15,429			—
Deferred tax benefit		(87	)		(355	)
Provision for doubtful accounts		2,206			1,428
Changes in operating assets and liabilities:
(Increase) decrease in:
Receivables		(9,876	)		(955	)
Prepaid lease expenses		(26,968	)		(27,097	)
Other assets		(7,542	)		(12,053	)
Increase (decrease) in:
Trade accounts payable		944			526
Accrued expenses		(27,682	)		(26,646	)
Other liabilities		(7,256	)		(16,163	)
Net cash provided by operating activities		28,623			14,793
Cash flows from investing activities:
Acquisitions		(6,637	)		(17,779	)
Capital expenditures		(23,252	)		(19,236	)
Proceeds received from insurance claims		790			—
Proceeds from disposition of assets and investments		244			1,592
Decrease in notes receivable		2			4
Net cash used in investing activities		(28,853	)		(35,419	)
Cash flows from financing activities:
Principal payments on long-term debt		(5,703	)		(5,625	)
Payment on revolving credit facility		(135,000	)		(54,000	)
Proceeds received from revolving credit facility		112,000			134,000
Redemption of senior subordinated notes		(509,790	)		—
Proceeds received from senior credit facility Term B loan		599,250			—
Debt issuance costs		(6,290	)		—
Distributions to non-controlling interest		(118	)		(205	)
Contributions from parent		15,941			32,546
Dividend to parent		(175,188	)		(90,185	)
Net cash (used in) provided by financing activities		(104,898	)		16,531
Effect of exchange rate changes in cash and cash equivalents		(297	)		187
Net decrease in cash and cash equivalents		(105,425	)		(3,908	)
Cash and cash equivalents at beginning of period		114,971			35,030
Cash and cash equivalents at end of period	$	9,546		$	31,122
Supplemental disclosures of cash flow information:
Cash paid for interest	$	49,600		$	43,446
Cash paid for foreign, state and federal income taxes	$	1,490		$	3,859

See accompanying notes to condensed consolidated financial statements.

18

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes 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 2017 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, 13 and 14 to the condensed consolidated financial statements of Lamar Advertising included elsewhere in this report is substantially equivalent to that required for the condensed consolidated financial statements of Lamar Media. Earnings per share data is not provided for Lamar Media, as it is a wholly owned subsidiary of the Company.

2. Summarized Financial Information of Subsidiaries

Separate condensed consolidating financial information for Lamar Media, subsidiary guarantors and non-guarantor subsidiaries are presented below. Lamar Media and its subsidiary guarantors have fully and unconditionally guaranteed Lamar Media’s obligations with respect to its publicly issued notes. All guarantees are joint and several. As a result of these guarantee arrangements, we are required to present the following condensed consolidating financial information. The following condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and notes. The condensed consolidating financial information is provided as an alternative to providing separate financial statements for guarantor subsidiaries. Separate financial statements of Lamar Media’s subsidiary guarantors are not included because the guarantees are full and unconditional and the subsidiary guarantors are 100% owned and jointly and severally liable for Lamar Media’s outstanding publicly issued notes. The accounts for all companies reflected herein are presented using the equity method of accounting for investments in subsidiaries.

19

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Balance Sheet as of March 31, 2018
	Lamar Media Corp.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
	(unaudited)
ASSETS
Total current assets	$	4,138	$	333,488	$	17,873		$	—		$	355,499
Net property, plant and equipment		—		1,187,143		5,757			—			1,192,900
Intangibles and goodwill, net		—		2,476,624		20,528			—			2,497,152
Other assets		3,701,355		11,203		13,376			(3,673,362	)		52,572
Total assets	$	3,705,493	$	4,008,458	$	57,534		$	(3,673,362	)	$	4,098,123
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt	$	23,944	$	34	$	—		$	—		$	23,978
Other current liabilities		21,704		157,552		16,152			—			195,408
Total current liabilities		45,648		157,586		16,152			—			219,386
Long-term debt		2,603,889		93		—			—			2,603,982
Other noncurrent liabilities		27,956		217,431		43,864			(42,496	)		246,755
Total liabilities		2,677,493		375,110		60,016			(42,496	)		3,070,123
Stockholders’ equity		1,028,000		3,633,348		(2,482	)		(3,630,866	)		1,028,000
Total liabilities and stockholders’ equity	$	3,705,493	$	4,008,458	$	57,534		$	(3,673,362	)	$	4,098,123

20

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Balance Sheet as of December 31, 2017
	Lamar Media Corp.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Lamar Media Consolidated
ASSETS
Total current assets	$	87,167	$	293,536	$	39,316	$	—		$	420,019
Net property, plant and equipment		—		1,193,705		20,433		—			1,214,138
Intangibles and goodwill, net		—		2,495,370		30,812		—			2,526,182
Other assets		3,707,352		10,571		7		(3,680,327	)		37,603
Total assets	$	3,794,519	$	3,993,182	$	90,568	$	(3,680,327	)	$	4,197,942
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Current maturities of long-term debt	$	17,664	$	—	$	—	$	—		$	17,664
Other current liabilities		120,500		164,393		19,429		—			304,322
Total current liabilities		138,164		164,393		19,429		—			321,986
Long-term debt		2,539,026		—		—		—			2,539,026
Other noncurrent liabilities		26,231		218,900		61,587		(60,886	)		245,832
Total liabilities		2,703,421		383,293		81,016		(60,886	)		3,106,844
Stockholders’ equity		1,091,098		3,609,889		9,552		(3,619,441	)		1,091,098
Total liabilities and stockholders’ equity	$	3,794,519	$	3,993,182	$	90,568	$	(3,680,327	)	$	4,197,942

21

LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) (In Thousands, Except for Share Data) Condensed Consolidating Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2018
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income	(unaudited)
Net revenues	$	—		$	349,862		$	12,102		$	(938	)	$	361,026
Operating expenses
Direct advertising expenses (1)		—			131,124			7,750			(581	)		138,293
General and administrative expenses (1)		—			67,561			2,647			—			70,208
Corporate expenses (1)		—			20,605			393			—			20,998
Depreciation and amortization		—			54,349			2,491			—			56,840
Loss on disposition of assets		—			35			8,666			—			8,701
		—			273,674			21,947			(581	)		295,040
Operating income (loss)		—			76,188			(9,845	)		(357	)		65,986
Equity in (earnings) loss of subsidiaries		(64,165	)		—			—			64,165			—
Interest expense (income), net		33,578			(2	)		336			(357	)		33,555
Loss on debt extinguishment		15,429			—			—			—			15,429
Income (loss) before income tax expense		15,158			76,190			(10,181	)		(64,165	)		17,002
Income tax expense (2)		—			712			1,132			—			1,844
Net income (loss)	$	15,158		$	75,478		$	(11,313	)	$	(64,165	)	$	15,158
Statement of Comprehensive Income
Net income (loss)	$	15,158		$	75,478		$	(11,313	)	$	(64,165	)	$	15,158
Total other comprehensive income, net of tax		—			—			(543	)		—			(543	)
Total comprehensive income (loss)	$	15,158		$	75,478		$	(11,856	)	$	(64,165	)	$	14,615
(1) Caption is exclusive of depreciation and amortization.
(2) The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries.

22

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2017
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income	(unaudited)
Net revenues	$	—		$	335,803		$	11,474		$	(915	)	$	346,362
Operating expenses
Direct advertising expenses (1)		—			125,104			7,287			(547	)		131,844
General and administrative expenses (1)		—			70,012			2,019			—			72,031
Corporate expenses (1)		—			16,257			270			—			16,527
Depreciation and amortization		—			49,248			2,177			—			51,425
(Gain) loss on disposition of assets		—			(1,037	)		1			—			(1,036	)
		—			259,584			11,754			(547	)		270,791
Operating income (loss)		—			76,219			(280	)		(368	)		75,571
Equity in (earnings) loss of subsidiaries		(73,374	)		—			—			73,374			—
Interest expense (income), net		31,481			(3	)		369			(368	)		31,479
Income (loss) before income tax expense		41,893			76,222			(649	)		(73,374	)		44,092
Income tax expense (2)		—			1,723			476			—			2,199
Net income (loss)	$	41,893		$	74,499		$	(1,125	)	$	(73,374	)	$	41,893
Statement of Comprehensive Income
Net income (loss)	$	41,893		$	74,499		$	(1,125	)	$	(73,374	)	$	41,893
Total other comprehensive income, net of tax		—			—			143			—			143
Total comprehensive income (loss)	$	41,893		$	74,499		$	(982	)	$	(73,374	)	$	42,036
(1) Caption is exclusive of depreciation and amortization.
(2) The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries.

23

LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) (In Thousands, Except for Share Data) Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2018
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
	(unaudited)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	9,747		$	79,785		$	(2,253	)	$	(58,656	)	$	28,623
Cash flows from investing activities:
Acquisitions		—			(6,637	)		—			—			(6,637	)
Capital expenditures		—			(21,939	)		(1,313	)		—			(23,252	)
Proceeds from disposition of assets and investments		—			244			—			—			244
Proceeds received from insurance claims		—			—			790			—			790
Investment in subsidiaries		(6,637	)		—			—			6,637			—
Decrease (increase) in intercompany notes receivable		18,633			—			—			(18,633	)		—
Decrease (increase) in notes receivable		3			(1	)		—			—			2
Net cash provided by (used in) investing activities		11,999			(28,333	)		(523	)		(11,996	)		(28,853	)
Cash flows from financing activities:
Proceeds received from revolving credit facility		112,000			—			—			—			112,000
Payment on revolving credit facility		(135,000	)		—			—			—			(135,000	)
Principal payments on long-term debt		(5,697	)		(6	)		—			—			(5,703	)
Redemption of senior subordinated notes		(509,790	)		—			—			—			(509,790	)
Proceeds received from senior credit facility Term B loan		599,250			—			—			—			599,250
Debt issuance costs		(6,290	)		—			—			—			(6,290	)
Intercompany loan payable		—			—			(18,633	)		18,633			—
Distributions to non-controlling interest		—			—			(118	)		—			(118	)
Dividends (to) from parent		(175,188	)		(58,656	)		—			58,656			(175,188	)
Contributions from (to) parent		15,941			6,637			—			(6,637	)		15,941
Net cash (used in) provided by financing activities		(104,774	)		(52,025	)		(18,751	)		70,652			(104,898	)
Effect of exchange rate changes in cash and cash equivalents		—			—			(297	)		—			(297	)
Net decrease in cash and cash equivalents		(83,028	)		(573	)		(21,824	)		—			(105,425	)
Cash and cash equivalents at beginning of period		86,546			1,625			26,800			—			114,971
Cash and cash equivalents at end of period	$	3,518		$	1,052		$	4,976		$	—		$	9,546

24

LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) (In Thousands, Except for Share Data) Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2017
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
	(unaudited)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	922		$	59,675		$	(1,351	)	$	(44,453	)	$	14,793
Cash flows from investing activities:
Acquisitions		—			(17,779	)		—			—			(17,779	)
Capital expenditures		—			(17,079	)		(2,157	)		—			(19,236	)
Proceeds from disposition of assets and investments		—			1,592			—			—			1,592
Investment in subsidiaries		(17,779	)		—			—			17,779			—
(Increase) decrease in intercompany notes receivable		(3,194	)		—			—			3,194			—
Decrease in notes receivable		4			—			—			—			4
Net cash (used in) provided by investing activities		(20,969	)		(33,266	)		(2,157	)		20,973			(35,419	)
Cash flows from financing activities:
Proceeds received from revolving credit facility		134,000			—			—			—			134,000
Payment on revolving credit facility		(54,000	)		—			—			—			(54,000	)
Principal payments on long-term debt		(5,625	)		—			—			—			(5,625	)
Intercompany loan proceeds		—			—			3,194			(3,194	)		—
Distributions to non-controlling interest		—			—			(205	)		—			(205	)
Dividends (to) from parent		(90,185	)		(44,453	)		—			44,453			(90,185	)
Contributions from (to) parent		32,546			17,779			—			(17,779	)		32,546
Net cash provided by (used in) financing activities		16,736			(26,674	)		2,989			23,480			16,531
Effect of exchange rate changes in cash and cash equivalents		—			—			187			—			187
Net decrease in cash and cash equivalents		(3,311	)		(265	)		(332	)		—			(3,908	)
Cash and cash equivalents at beginning of period		12,762			1,201			21,067			—			35,030
Cash and cash equivalents at end of period	$	9,451		$	936		$	20,735		$	—		$	31,122

25

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

This report 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 report on Form 10-Q entitled “Note Regarding Forward-Looking Statements” and in Item 1A to the 2017 Combined Form 10-K filed on February 27, 2018, 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 conditions 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 months ended March 31, 2018 and 2017. 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 that 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 has made strategic acquisitions of outdoor advertising assets to increase the number of outdoor advertising displays it operates in existing and new markets. The Company continues 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-Sources of Cash” for more information. During the three months ended March 31, 2018, the Company completed acquisitions for a total cash purchase price of approximately $6.6 million. See—“Uses of Cash – Acquisitions” for more information.

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 ended March 31, 2018 and 2017:

	Three months ended March 31, (in thousands)
	2018		2017
Total capital expenditures:
Billboard — traditional	$	6,787	$	6,279
Billboard — digital		8,302		7,587
Logos		2,452		1,801
Transit		372		223
Land and buildings		3,431		1,382
Operating equipment		1,908		1,964
Total capital expenditures	$	23,252	$	19,236

Non-GAAP Financial Measures

Our management reviews our performance by focusing on several key performance indicators not prepared in conformity with Generally Accepted Accounting Principles in the United States (“GAAP”). We believe these non-GAAP performance indicators are meaningful supplemental measures of our operating performance and should not be considered in isolation of, or as a substitute for their most directly comparable GAAP financial measures.

26

Included in our analysis of our results of operations are discussions regarding earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), Funds From Operations (“FFO”), as defined by the National Association of Real Estate Investment Trusts, Adjusted Funds From Operations (“AFFO”) and acquisition-adjusted net revenue.

We define Adjusted EBITDA as net income before income tax expense (benefit), interest expense (income), gain (loss) on extinguishment of debt and investments, stock-based compensation, depreciation and amortization and gain or loss on disposition of assets and investments.

FFO is defined as net income before gains or losses from the sale or disposal of real estate assets and investments and real estate related depreciation and amortization and including adjustments to eliminate unconsolidated affiliates and non-controlling interest.

We define AFFO as FFO before (i) straight-line revenue and expense; (ii) stock-based compensation expense; (iii) non-cash portion of tax provision; (iv) non-real estate related depreciation and amortization; (v) amortization of deferred financing costs; (vi) loss on extinguishment of debt; (vii) non-recurring infrequent or unusual losses (gains); (viii) less maintenance capital expenditures; and (ix) an adjustment for unconsolidated affiliates and non-controlling interest.

Acquisition-adjusted net revenue adjusts our net revenue for the prior period by adding to it the net revenue generated by the acquired assets before our acquisition of these assets for the same time frame that those assets were owned in the current period. In calculating acquisition-adjusted revenue, therefore, we include revenue generated by assets that we did not own in the period but acquired in the current period. We refer to the amount of pre-acquisition revenue generated by the acquired assets during the prior period that corresponds with the current period in which we owned the assets (to the extent within the period to which this report relates) as “acquisition net revenue”. In addition, we also adjust the prior period to subtract revenue generated by the assets that have been divested since the prior period and, therefore, no revenue derived from those assets is reflected in the current period.

Adjusted EBITDA, FFO, AFFO and acquisition-adjusted net revenue are not intended to replace net income or any other performance measures determined in accordance with GAAP. Neither FFO nor AFFO represent cash flows from operating activities in accordance with GAAP and, therefore, these measures should not be considered indicative of cash flows from operating activities as a measure of liquidity or of funds available to fund our cash needs, including our ability to make cash distributions. Rather, Adjusted EBITDA, FFO, AFFO and acquisition-adjusted net revenue are presented as we believe each is a useful indicator of our current operating performance. We believe that these metrics are useful to an investor in evaluating our operating performance because (1) each is a key measure used by our management team for purposes of decision making and for evaluating our core operating results; (2) Adjusted EBITDA is widely used in the industry to measure operating performance as depreciation and amortization may vary significantly among companies depending upon accounting methods and useful lives, particularly where acquisitions and non-operating factors are involved; (3) acquisition-adjusted net revenue is a supplement to net revenue to enable investors to compare period over period results on a more consistent basis without the effects of acquisitions and divestures, which reflects our core performance and organic growth (if any) during the period in which the assets were owned and managed by us; (4) Adjusted EBITDA, FFO and AFFO each provides investors with a meaningful measure for evaluating our period-to-period operating performance by eliminating items that are not operational in nature; and (5) each provides investors with a measure for comparing our results of operations to those of other companies.

Our measurement of Adjusted EBITDA, FFO, AFFO and acquisition-adjusted net revenue may not, however, be fully comparable to similarly titled measures used by other companies. Reconciliations of Adjusted EBITDA, FFO, AFFO and acquisition-adjusted net revenue to net income, the most directly comparable GAAP measure, have been included herein.

RESULTS OF OPERATIONS

Three Months ended March 31, 2018 compared to Three Months ended March 31, 2017

Net revenues increased $14.7 million or 4.2% to $361.0 million for the three months ended March 31, 2018 from $346.4 million for the same period in 2017. This increase was attributable primarily to an increase in billboard net revenues of $11.6 million, which represents an increase of 3.9% over the same period in 2017.  In addition, transit revenue increased $2.7 million, which represents an increase of 11.1% over the prior period and there was a $0.3 million increase in logo revenue, which represents an increase of 1.5% over the same period in 2017.

For the three months ended March 31, 2018, there was a $4.0 million increase in net revenues as compared to acquisition-adjusted net revenue for the three months ended March 31, 2017, which represents an increase of 1.1%. See “Reconciliations” below. The 1.1% increase is primarily due to an increase in digital revenue, as compared to the same period in 2017. The $4.0 million increase in revenue primarily consists of a $2.5 million increase in billboard revenue, a $1.0 million increase in transit revenue and a $0.5 million increase in logo revenue over the acquisition-adjusted net revenue for the comparable period in 2017.

27

Total operating expenses, exclusive of depreciation and amortization, loss (gain) on sale of assets and stock-based compensation, increased $4.1 million, or 1.9% to $222.1 million for the three months ended March 31, 2018 from $218.0 million in the same period in 2017. The $4.1 million increase over the prior year is comprised of a $4.7 million increase in direct and general and administrative operating expenses related to the operations of our outdoor advertising assets, partially offset by a corporate expense decrease of $0.6 million.

Depreciation and amortization expense increased $5.4 million to $56.8 million for the three months ended March 31, 2018 as compared to same period in 2017, primarily related to approximately $297.3 million of assets acquired through acquisitions and $109.3 million in capitalized expenditures purchased in fiscal 2017.

For the three months ended March 31, 2018, loss (gain) on disposition of assets increased by $9.7 million as compared to the same period in 2017.  The Company recorded an $8.7 million loss for the three months ended March 31, 2018 as compared to a $1.0 million gain for the same period in 2017.  The $8.7 million loss in the first three months of 2018 primarily relates to a write down of the Puerto Rico assets held for sale as of March 31, 2018.

Due to the above factors, operating income decreased by $9.6 million to $65.9 million for the three months ended March 31, 2018 compared to $75.5 million for the same period in 2017.

During the three months ended March 31, 2018, the Company recorded a $15.4 million loss on debt extinguishment related to Lamar Media’s prepayment of its 5 7/8% Notes.  The $15.4 million loss is comprised of a cash redemption premium of $9.8 million and a non-cash write off of unamortized deferred financing costs of approximately $5.6 million.

Interest expense increased $2.1 million to $33.6 million for the three months ended March 31, 2018 as compared to $31.5 million for the comparable period in 2017, primarily due to the increase in debt outstanding as compared to the same period in 2017.

The decrease in operating income and increases in loss on debt extinguishment and interest expense resulted in a $27.1 million decrease in net income before income tax expense. The Company recorded income tax expense of $1.8 million for the three months ended March 31, 2018, which was an effective rate of 10.9%.  The effective rate is higher than the same period in 2017, primarily due to the tax effect of the loss on the write down of the Company’s Puerto Rico assets during the three months ended March 31, 2018.  The Company’s tax rate differs from the federal statutory rate primarily due to our qualification for taxation as a REIT and adjustments for foreign items and typically ranges from 3-5%.

As a result of the above factors, the Company recognized net income for the three months ended March 31, 2018 of $15.1 million, as compared to net income of $41.8 million for the same period in 2017.

Reconciliations:

Because acquisitions occurring after December 31, 2016 (the “acquired assets”) have contributed to our net revenue results for the periods presented, we provide 2017 acquisition-adjusted net revenue, which adjusts our 2017 net revenue for the three months ended March 31, 2017 by adding to or subtracting from it the net revenue generated by the acquired or divested assets prior to our acquisition or divestiture of these assets for the same time frame that those assets were owned in the three months ended March 31, 2018.

Reconciliations of 2017 reported net revenue to 2017 acquisition-adjusted net revenue for the three months ended March 31, as well as a comparison of 2017 acquisition-adjusted net revenue to 2018 reported net revenue for the three months ended March 31, are provided below:

Reconciliation and Comparison of Reported Net Revenue to Acquisition-Adjusted Net Revenue

	Three months ended March 31,
	2018		2017
	(in thousands)
Reported net revenue	$	361,026	$	346,362
Acquisition net revenue		—		10,646
Adjusted totals	$	361,026	$	357,008

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Key Performance Indicators

Net Income/Adjusted EBITDA

(in thousands)

	Three Months Ended March 31,					Amount of Increase			Percent Increase
	2018		2017			(Decrease)			(Decrease)
Net income	$	15,052	$	41,787		$	(26,735	)		(64.0	)%
Income tax expense		1,844		2,199			(355	)
Loss on debt extinguishment		15,429		—			15,429
Interest expense (income), net		33,555		31,479			2,076
Loss (gain) on disposition of assets		8,701		(1,036	)		9,737
Depreciation and amortization		56,840		51,425			5,415
Stock-based compensation expense		7,514		2,478			5,036
Adjusted EBITDA	$	138,935	$	128,332		$	10,603			8.3	%

Adjusted EBITDA for the three months ended March 31, 2018 increased 8.3% to $138.9 million. The increase in Adjusted EBITDA was primarily attributable to an increase in our gross margin (net revenue less direct advertising expense) of $8.2 million and a decrease in general administrative and corporate expenses of $2.4 million, excluding the impact of stock-based compensation expense.

Net Income/FFO/AFFO

(in thousands)

	Three Months Ended March 31,						Amount of Increase			Percent Increase
	2018			2017			(Decrease)			(Decrease)
Net income	$	15,052		$	41,787		$	(26,735	)		(64.0	)%
Depreciation and amortization related to real estate		53,725			48,521			5,204
Loss (gain) from sale or disposal of real estate, net of    tax of $935 and $0 in 2018 and 2017, respectively		9,693			(839	)		10,532
Adjustments for unconsolidated affiliates and    non-controlling interest		195			177			18
FFO	$	78,665		$	89,646		$	(10,981	)		(12.2	)%
Straight line income		(277	)		(37	)		(240	)
Stock-based compensation expense		7,514			2,478			5,036
Non-cash portion of tax provision		(1,022	)		(355	)		(667	)
Non-real estate related depreciation and amortization		3,115			2,904			211
Amortization of deferred financing costs		1,242			1,348			(106	)
Loss on extinguishment of debt		15,429			—			15,429
Capital expenditures – maintenance		(8,125	)		(9,378	)		1,253
Adjustments for unconsolidated affiliates and    non-controlling interest		(195	)		(177	)		(18	)
AFFO	$	96,346		$	86,429		$	9,917			11.5	%

FFO for the three months ended March 31, 2018 decreased 12.2% to $78.7 million as compared to FFO of $89.6 million for the same period in 2017. AFFO for the three months ended March 31, 2018 increased 11.5% to $96.3 million as compared to $86.4 million for the same period in 2017. The increase in AFFO was primarily attributable to the increase in our gross margin (net revenue less direct advertising expense), decreases in general and administrative and corporate expenses (excluding stock-based compensation) and decreases in maintenance capital expenditures, offset by an increase in interest expense.

29

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 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. As of March 31, 2018 we had approximately $272.1 million of total liquidity, which is comprised of approximately $10.0 million in cash and cash equivalents and approximately $262.1 million of availability under the revolving portion of Lamar Media’s senior credit facility. We are currently in compliance with the maintenance covenant included in 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 three months ended March 31, 2018 and 2017 our cash provided by operating activities was $40.8 million and $34.5 million, respectively. The increase in cash provided by operating activities for the three months ended March 31, 2018 over the same period in 2017 relates to an increase in revenues offset by an increase in operating expenses (excluding depreciation and amortization), and a net increase in operating assets and liabilities. We expect to generate cash flows from operations during 2018 in excess of our cash needs for operations, capital expenditures and dividends, as described herein.

“At-the-Market” Offering Program.  On May 1, 2018, the Company entered into an equity distribution agreement (the “Sales Agreement”) with J.P. Morgan Securities LLC, Wells Fargo Securities LLC and SunTrust Robinson Humphrey, Inc. as our sales agents (each a “Sales Agent”, and collectively, the “Sales Agent”).  Under the terms of the Sales Agreement, the Company may, from time to time, issue and sell shares of its Class A common stock, par value $.001 per share (the “Class A Common Stock”), having an aggregate offering price of up to $400.0 million through the Sales Agents as either agents or principals.  Sales of the Class A Common Stock, if any, may be made in negotiated transactions or transactions that are deemed to be “at-the-market offerings” as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made directly on or through the Nasdaq Global Select Market and any other existing trading market for the Class A Common Stock, or sales made to or through a market maker other than on an exchange.  The Company has no obligation to sell any of the Class A Common Stock under the Sales Agreement and may at any time suspend solicitations and offers under the Sales Agreement.  The Company intends to use the net proceeds, if any, from the sale of the Class A Common Stock pursuant to the Sales Agreement for general corporate purposes, which may include the repayment, refinancing, redemption or repurchase of existing indebtedness, working capital, capital expenditures, acquisition of outdoor advertising assets and businesses and other related investments.

Sale of Puerto Rico Operations.  As of March 31, 2018, the Company had a definitive agreement to sell substantially all of its assets in Puerto Rico and as such, considered those assets as held for sale.  Accordingly, the Company recorded a loss related to the write down of the Puerto Rico assets for the three months ended March 31, 2018 of approximately $8.7 million. On April 16, 2018, the transaction to sell the assets to B–Billboard BB LLC and B-Billboard BG LLC was completed.

Credit Facilities.  On March 16, 2018, Lamar Media Corp. entered into Amendment No. 1 to the Third Amended and Restated Credit Agreement dated May 15, 2017, with Lamar Advertising, certain of Lamar Media’s subsidiaries as Guarantors, JPMorgan Chase Bank, N.A. as Administrative Agent and the lenders named therein, under which the parties agreed to amend the existing senior credit facility to establish a new $600.0 million Term B Loan Facility, which will mature on March 16, 2025.  The Term B loan will begin amortizing on June 30, 2018 in equal quarterly installments of $1.5 million with the remainder payable at maturity.  Lamar borrowed the full amount of the Term B loan on March 16, 2018.  The proceeds from the Term B loan, together with available cash on hand were used to redeem in full Lamar Media’s 5 7/8% Senior Subordinated Notes due 2022.  See Uses of Cash for more information.

On May 15, 2017, Lamar Media entered into a Third Restatement Agreement (“Restatement Agreement”) with the Company, certain of Lamar Media’s subsidiaries as guarantors, JPMorgan Chase Bank, N.A. as administrative agent and the lenders party thereto, under which the parties agreed to amend and restate Lamar Media’s existing senior credit facility.  The Restatement Agreement amended and restated the Second Amended and Restated Credit Agreement dated as of February 3, 2014, as amended, which consisted of a $400.0 million revolving credit facility and a $300.0 million Term A loan facility.  

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Lamar Media’s Third Amended and Restated Credit Agreement dated as of May 15, 2017 (as amended by Amendment No. 1, the “senior credit facility”) consists of (i) a new $450.0 million senior secured revolving credit facility which will mature on May 15, 2022, (ii) a new $450.0 million Term A loan facility (the “Term A loans”)  which will mature on May 15, 2022, and (iii) the Term B loans, and (iv) an incremental facility pursuant to which Lamar Media may incur additional term loan tranches or increase its revolving credit facility subject to pro forma compliance with the secured debt ratio financial maintenance covenant described under “Restrictions under Senior Credit Facility.”

Under the senior credit facility Lamar Media borrowed all $450.0 million in Term A loans on May 15, 2017.  The net proceeds, together with borrowing under the revolving portion of senior credit facility and cash on hand, were used to repay all outstanding amounts under the existing senior credit facility, and all revolving commitments under that facility were terminated.

As of March 31, 2018 the aggregate balance outstanding under the senior credit facility was approximately $1.207 billion, consisting of $433.1 million outstanding in Term A loans, $599.3 million in Term B loans (net of $0.7 million of original issue discount) and $175.0 million of revolving credit loans.  In addition, Lamar Media had approximately $272.1 million of unused capacity under the revolving credit facility included in the senior credit facility.

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.  The Company and Lamar Media must comply with certain covenants and restrictions related to the senior credit facility and its outstanding debt securities.

Restrictions Under Debt Securities. The Company and Lamar Media must comply with certain covenants and restrictions related to its outstanding debt securities. Currently Lamar Media has outstanding $535 million 5% Senior Subordinated Notes issued in October 2012 (the “5% Senior Subordinated Notes”), $510 million 5 3/8% Senior Notes issued in January 2014 (the “5 3/8% Senior Notes”) and the $400 million 5 3/4% Senior Notes issued in January 2016 (the “5 3/4%  Senior 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 the sum of (x) total consolidated debt plus (y) the aggregate liquidation preference of any preferred stock of Lamar Media’s restricted subsidiaries to trailing four fiscal quarter EBITDA (as defined in the indentures)) would be less than 7.0 to 1. 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 provision.

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 $1.5 billion of indebtedness under the senior credit facility;

• indebtedness outstanding on the date of the indentures or debt incurred to refinance outstanding debt;

• inter-company debt between Lamar Media and its restricted subsidiaries or between restricted 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 $75 million.

Restrictions under Senior Credit Facility.Lamar Media is required to comply with certain covenants and restrictions under the senior credit facility. If the Company or Lamar Media fails to comply with these tests, the lenders under the senior credit facility will be entitled to exercise certain remedies, including the termination of the lending commitments and the acceleration of the debt payments under the senior credit facility. At March 31, 2018 and currently, we were in compliance with all such tests under the senior credit facility.

Lamar Media must maintain a secured debt ratio, defined as total consolidated secured debt of Lamar Advertising, Lamar Media and its restricted subsidiaries, minus the lesser of (x) $150 million and (y) the aggregate amount of unrestricted cash and cash equivalents of Lamar Advertising, Lamar Media and its restricted subsidiaries to EBITDA, as defined below, for the period of four consecutive fiscal quarters then ended, of less than or equal to 3.5 to 1.0.

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Lamar Media is restricted from incurring additional indebtedness subject to exceptions, one of which is that it may incur additional indebtedness not exceeding the greater of $250.0 million and 6% of its total assets.

Lamar Media is also restricted from incurring additional unsecured senior indebtedness under certain circumstances unless, after giving effect to the incurrence of such indebtedness, it is in compliance with the secured debt ratio covenant and its senior debt ratio, defined as (a) total consolidated debt (excluding subordinated debt) of Lamar Advertising, Lamar Media and its restricted subsidiaries as of any date minus the lesser of (i) $150 million and (ii) the aggregate amount of unrestricted cash and cash equivalents of Lamar Advertising, Lamar Media and its restricted subsidiaries to (b) EBITDA, as defined below, for the most recent four fiscal quarters then ended is less than 4.5 to 1.0.

Lamar Media is also restricted from incurring additional subordinated indebtedness under certain circumstances unless, after giving effect to the incurrence of such indebtedness, it is in compliance with the secured debt ratio covenant and its total debt ratio, defined as (a) total consolidated debt (including subordinated debt) of Lamar Advertising, Lamar Media and its restricted subsidiaries as of any date minus the lesser of (i) $150 million and (ii) the aggregate amount of unrestricted cash and cash equivalents of Lamar Advertising, Lamar Media and its restricted subsidiaries to (b) EBITDA, as defined below, for the most recent four fiscal quarters then ended, is less than 6.5 to 1.0.

Under the senior credit facility, “EBITDA” means, for any period, operating income for Lamar Advertising, Lamar Media and its restricted subsidiaries (determined on a consolidated basis without duplication in accordance with GAAP) for such period (calculated (A) before (i) taxes, (ii) interest expense, (iii) depreciation, (iv) amortization, (v) any other non-cash income or charges accrued for such period, (vi) charges and expenses in connection with the senior credit facility, any actual or proposed acquisition, disposition or investment (excluding, in each case, purchases and sales of advertising space and operating assets in the ordinary course of business) and any actual or proposed offering of securities, incurrence or repayment of indebtedness (or amendment to any agreement relating to indebtedness), including any refinancing thereof, or recapitalization and (vii) any loss or gain relating to amounts paid or earned in cash prior to the stated settlement date of any swap agreement that has been reflected in operating income for such period) and (B) after giving effect to the amount of cost savings, operating expense reductions and other operating improvements or synergies projected by Lamar Media in good faith to be realized as a result of any acquisition, investment, merger, amalgamation or disposition within 18 months of any such acquisition, investment, merger, amalgamation or disposition, net of the amount of actual benefits realized during such period from such action; provided, (a) the aggregate amount for all such cost savings, operating expense reductions and other operating improvements or synergies will not exceed an amount equal to 15% of EBITDA for the applicable four quarter period and (b) any such adjustment to EBITDA may only take into account cost savings, operating expense reductions and other operating improvements or synergies that are (I) directly attributable to such acquisition, investment, merger, amalgamation or disposition, (II) expected to have a continuing impact on Lamar Media and its restricted subsidiaries and (III) factually supportable, in each case all as certified by the chief financial officer of Lamar Media) on behalf of Lamar Media, and excluding (except to the extent received or paid in cash by Lamar Advertising, Lamar Media or any of its 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 and dispositions. For purposes hereof, the effect thereon of any adjustments required under Statement of Financial Accounting Standards No. 141R shall be excluded.  If during any period for which EBITDA is being determined, Lamar Media has consummated any acquisition or disposition, EBITDA will be determined on a pro forma basis as if such acquisition or disposition had been made or consummated on the first day of such period.

The Company believes that its current level of cash on hand, availability under the senior credit facility and future cash flows from operations are sufficient to meet its operating needs through fiscal 2018. All debt obligations are reflected on the Company’s balance sheet.

Uses of Cash

Capital Expenditures. Capital expenditures, excluding acquisitions were approximately $23.3 million for the three months ended March 31, 2018. We anticipate our 2018 total capital expenditures will be approximately $110 million.

Acquisitions.  During the three months ended March 31, 2018, the Company completed acquisitions for an aggregate cash purchase price of approximately $6.6 million, which were financed using available cash on hand or borrowings under its revolving credit facility. 

5 7/8% Senior Subordinated Note Redemption.  On March 19, 2018, the Company used proceeds from the Term B loan, together with cash on hand, to redeem in full all $500.0 million in aggregate principal amount of Lamar Media’s 5 7/8% Senior Subordinated Notes due 2022 and repay a portion of the borrowings outstanding under Lamar Media’s revolving credit facility.  The Notes were redeemed at a redemption price equal to 101.958% of the aggregate principal amount of the outstanding Notes, plus accrued and unpaid interest

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up to the redemption date.  The Company recorded a loss on debt extinguishment of $15.4 million related to this redemption which is comprised of a $9.8 million prepayment penalty and a $5.6 million non-cash write off of unamortized deferred financing costs.

Term Loans. The Term A loans mature on February 2, 2019 and the Term B loans mature on March 16, 2025.  The remaining quarterly installments scheduled to be paid on each June 30, September 30, December 31 and March 31 are as follows:

	Term A		Term B
Principal Payment Date	( in thousands)
June 30, 2018-June 30, 2019	$	5,625.0	$	1,500.0
September 30, 2019-June 30, 2020	$	8,437.5	$	1,500.0
September 30, 2020-March 31, 2022	$	16,875.0	$	1,500.0
Term A Loan Maturity Date	$	253,125.0	$	—
June 30, 2022-December 31, 2024	$	—	$	1,500.0
Term B Loan Maturity Date	$	—	$	559,500.0

The Term Loans bear interest at rates based on the Adjusted LIBO Rate (“Eurodollar term loans”) or the Adjusted Base Rate (“Base Rate term loans”), at Lamar Media’s option. Eurodollar term loans bear interest at a rate per annum equal to the Adjusted LIBO Rate plus 1.75%; (or the Adjusted LIBO Rate plus 1.50% at any time the Total Debt Ratio is less than or equal to 3.25 to 1 for Term A loans only). Base Rate term loans bear interest at a rate per annum equal to the Adjusted Base Rate plus 0.75% (or the Adjusted Base Rate plus 0.50% at any time the Total Debt Ratio is less than or equal to 3.25 to 1 for Term A loans only). The revolving credit facility bears interest at rates based on the Adjusted LIBO Rate (“Eurodollar revolving loans”) or the Adjusted Base Rate (“Base Rate revolving loans”), at Lamar Media’s option. Eurodollar revolving loans bear interest at a rate per annum equal to the Adjusted LIBO Rate plus 2.25% (or the Adjusted LIBO Rate plus 2.00% at any time the Total Debt Ratio is less than or equal to 4.25 to 1; or the Adjusted LIBO Rate plus 1.75% at any time the Total Debt Ratio is less than or equal to 3.00 to 1). Base Rate revolving loans bear interest at a rate per annum equal to the Adjusted Base Rate plus 1.25% (or the Adjusted Base Rate plus 1.0% at any time the total debt ratio is less than or equal to 4.25 to 1, or the Adjusted Base Rate plus 0.75% at any time the Total Debt Ratio is less than or equal to 3.00 to 1). The guarantees, covenants, events of default and other terms of the senior credit facility apply to the Term A and B loans and revolving credit facility.

Dividends.  On January 2, 2018, the Company paid a quarterly cash dividend of $0.83 per share to its shareholders of record of its Class A and Class B common stock on December 18, 2017.  In addition, on February 22, 2018, Lamar Advertising’s Board of Directors declared a quarterly cash dividend of $0.91 per share paid on March 29, 2018 to its stockholders of record of its Class A common stock and Class B common stock on March 19, 2018. The Company expects aggregate quarterly distributions to stockholders in 2018, excluding the dividend paid on January 2, 2018 but including the dividend paid on March 29, 2018, will total $3.65 per common share.

As a REIT, the Company must annually distribute to its stockholders an amount equal to at least 90% of its REIT taxable income (determined before the deduction for distributed earnings and excluding any net capital gain). The amount, timing and frequency of future distributions will be at the sole discretion of the Board of Directors and will be declared based upon various factors, a number of which may be beyond the Company’s control, including financial condition and operating cash flows, the amount required to maintain REIT status and reduce any income and excise taxes that the Company otherwise would be required to pay, limitations on distributions in our existing and future debt instruments, the Company’s ability to utilize net operating losses to offset, in whole or in part, the Company’s distribution requirements, limitations on its ability to fund distributions using cash generated through its Taxable REIT Subsidiaries (“TRSs”) and other factors that the Board of Directors may deem relevant.

Off Balance Sheet Arrangements

The Company has no off-balance sheet arrangements with the exception of operating leases.

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Commitments and Contingencies

Debt Service and Contractual Obligations.  As of March 31, 2018, we had outstanding debt of approximately $2.63 billion.  In the future, Lamar Media has principal reduction obligations and revolver commitment reductions under its senior credit facility.  In addition it has fixed commercial commitments.  These commitments are detailed as follows:

			Payments Due by Period
Contractual Obligations	Total		Less Than 1 Year		1 - 3 Years		3 - 5 Years		After 5 Years
	(in millions)
Long-Term Debt	$	2,628.0	$	24.0	$	92.6	$	499.4	$	2,012.0
Interest obligations on long term debt(1)	$	726.3		127.2		251.7		229.5		117.9
Billboard site and other operating leases	$	1,504.2		170.0		299.7		231.3		803.2
Total payments due	$	4,858.5	$	321.2	$	644.0	$	960.2	$	2,933.1

⁽¹⁾ Interest rates on our variable rate instruments are assuming rates at the March 2018 levels.

			Amount of Expiration Per Period
Other Commercial Commitments	Total Amount Committed		Less Than 1 Year		1 - 3 Years		3 - 5 Years		After 5 Years
	(in millions)
Revolving Bank Facility(2)	$	450.0	$	—	$	—	$	450.0	$	—
Standby Letters of Credit(3)	$	12.9	$	12.5	$	0.4	$	—	$	—

⁽²⁾ Lamar Media had $175.0 million outstanding under the revolving facility at March 31, 2018.

⁽³⁾ The standby letters of credit are issued under Lamar Media’s revolving credit facility and reduce the availability of the facility by the same amount.

Accounting Standards Update

In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. Generally Accepted Accounting Principles (“GAAP”) when it becomes effective. In August 2015, the FASB issued ASU No. 2015-14 deferring the effective date from January 1, 2017 to January 1, 2018, while allowing for early adoption as of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company adopted the provisions of ASU No. 2014-09 on January 1, 2018 using the cumulative effect transition method. The Company did not have an adjustment to its opening balance of retained earnings for the adoption of this update.

In February 2016, the FASB issued ASU No. 2016-02, Leases.  The update is to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about lease arrangements.  The amendments in this update are effective beginning January 1, 2019 with retrospective application. The Company is in the process of assessing the impact ASU No. 2016-02 will have on our consolidated financial statements.  The Company expects the primary impact to our consolidated financial statements will be the recognition, on a discounted basis, of our minimum commitments under non-cancelable operating leases on our consolidated balance sheets, resulting in the recording of right of use assets and lease obligations.

In January 2018, the FASB issued ASU No. 2018-01, Leases (Topic 842) – Land Easement Practical Expedient for Transition to Topic 842. The update provides an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the current leases guidance in Topic 840. An entity that elects this practical expedient should evaluate new or modified land easements under Topic 842 upon adoption. An entity that does not elect this practical expedient should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease.  The Company plans to elect the provided practical expedients within this update upon our adoption of Topic 842.

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LAMAR MEDIA CORP.

The following is a discussion of the consolidated financial condition and results of operations of Lamar Media for the three months ended March 31, 2018 and 2017. This discussion should be read in conjunction with the consolidated financial statements of Lamar Media and the related notes thereto.

RESULTS OF OPERATIONS

Three Months ended March 31, 2018 compared to Three Months ended March 31, 2017

Net revenues increased $14.7 million or 4.2% to $361.0 million for the three months ended March 31, 2018 from $346.4 million for the same period in 2017. This increase was attributable primarily to an increase in billboard net revenues of $11.6 million, which represents an increase of 3.9% over the same period in 2017.  In addition, transit revenue increased $2.7 million, which represents an increase of 11.1% over the prior period and there was a $0.3 million increase in logo revenue, which represents an increase of 1.5% over the same period in 2017.

For the three months ended March 31, 2018, there was a $4.0 million increase in net revenues as compared to acquisition-adjusted net revenue for the three months ended March 31, 2017, which represents an increase of 1.1%. See “Reconciliations” below. The 1.1% increase is primarily due to an increase in digital revenue for three months ended March 31, 2018, as compared to the same period in 2017. The $4.0 million increase in revenue primarily consists of a $2.5 million increase in billboard revenue, a $1.0 million increase in transit revenue and a $0.5 million increase in logo revenue over the acquisition-adjusted net revenue for the comparable period in 2017.

Total operating expenses, exclusive of depreciation and amortization, loss (gain) on sale of assets and stock-based compensation, increased $4.1 million, or 1.9% to $222.0 million for the three months ended March 31, 2018 from $217.9 million in the same period in 2017. The $4.1 million increase over the prior year is comprised of a $4.7 million increase in direct and general and administrative operating expenses related to the operations of our outdoor advertising assets partially offset by a corporate expense decrease of $0.6 million.

Depreciation and amortization expense increased $5.4 million to $56.8 million for the three months ended March 31, 2018 as compared to same period in 2017, primarily related approximately $297.3 million of assets acquired through acquisitions and $109.3 million in capitalized expenditures purchased in fiscal 2017.

For the three months ended March 31, 2018, loss (gain) on disposition of assets increased by $9.7 million as compared to the same period in 2017.  Lamar Media recorded an $8.7 million loss for the three months ended March 31, 2018 as compared to a $1.0 million gain for the same period in 2017.  The $8.7 million loss in the first three months of 2018 primarily relates to a write down of the Puerto Rico assets held for sale as of March 31, 2018.

Due to the above factors, operating income decreased by $9.6 million to $66.0 million for the three months ended March 31, 2018 compared to $75.6 million for the same period in 2017.

During the three months ended March 31, 2018, Lamar Media recorded a $15.4 million loss on debt extinguishment related to Lamar Media’s prepayment of its 5 7/8% Notes.  The $15.4 million loss is comprised of a cash redemption premium of $9.8 million and a non-cash write off of unamortized deferred financing costs of approximately $5.6 million.

Interest expense increased $2.1 million to $33.6 million for the three months ended March 31, 2018 as compared to $31.5 million for the comparable period in 2017, primarily due to the increase in debt outstanding as compared to the same period in 2017.

The decrease in operating income and increases in loss on debt extinguishment and interest expense resulted in a $27.1 million decrease in net income before income tax expense. Lamar Media recorded income tax expense of $1.8 million for the three months ended March 31, 2018, which was an effective rate of 10.8%.  The effective rate is higher than the same period in 2017 primarily due to the tax effect of the loss on the write down of the Company’s Puerto Rico assets during the three months ended March 31, 2018.  Lamar Media’s tax rate differs from the federal statutory rate primarily due to our qualification for taxation as a REIT and adjustments for foreign items and typically ranges from 3-5%.

As a result of the above factors, Lamar Media recognized net income for the three months ended March 31, 2018 of $15.2 million, as compared to net income of $41.9 million for the same period in 2017.

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Reconciliations:

Because acquisitions occurring after December 31, 2016 (the “acquired assets”) have contributed to our net revenue results for the periods presented, we provide 2017 acquisition-adjusted net revenue, which adjusts our 2017 net revenue for the three months ended March 31, 2017 by adding to or subtracting from it the net revenue generated by the acquired or divested assets prior to our acquisition or divestiture of these assets for the same time frame that those assets were owned in the three months ended March 31, 2018.

Reconciliations of 2017 reported net revenue to 2017 acquisition-adjusted net revenue for the three months ended March 31, as well as a comparison of 2017 acquisition-adjusted net revenue to 2018 reported net revenue for the three months ended March 31, are provided below:

Reconciliation and Comparison of Reported Net Revenue to Acquisition-Adjusted Net Revenue

	Three months ended March 31,
	2018		2017
	(in thousands)
Reported net revenue	$	361,026	$	346,362
Acquisition net revenue		—		10,646
Adjusted totals	$	361,026	$	357,008

Key Performance Indicators

Net Income/Adjusted EBITDA

(in thousands)

	Three Months Ended March 31,					Amount of Increase			Percent Increase
	2018		2017			(Decrease)			(Decrease)
Net income	$	15,158	$	41,893		$	(26,735	)		(63.8	)%
Income tax expense		1,844		2,199			(355	)
Loss on debt extinguishment		15,429		—			15,429
Interest expense (income), net		33,555		31,479			2,076
Loss (gain) on disposition of assets		8,701		(1,036	)		9,737
Depreciation and amortization		56,840		51,425			5,415
Stock-based compensation expense		7,514		2,478			5,036
Adjusted EBITDA	$	139,041	$	128,438		$	10,603			8.3	%

Adjusted EBITDA for the three months ended March 31, 2018 increased 8.3% to $139.0 million. The increase in Adjusted EBITDA was primarily attributable to an increase in our gross margin (net revenue less direct advertising expense) of $8.2 million and a decrease in general administrative and corporate expenses of $2.4 million, excluding the impact of stock-based compensation expense.

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Net Income/FFO/AFFO

(in thousands)

	Three Months Ended March 31,						Amount of Increase			Percent Increase
	2018			2017			(Decrease)			(Decrease)
Net income	$	15,158		$	41,893		$	(26,735	)		(63.8	)%
Depreciation and amortization related to real estate		53,725			48,521			5,204
Loss (gain) from sale or disposal of real estate, net of     tax of $935 and $0 in 2018 and 2017, respectively		9,693			(839	)		10,532
Adjustments for unconsolidated affiliates and    non-controlling interest		195			177			18
FFO	$	78,771		$	89,752		$	(10,981	)		(12.2	)%
Straight line income		(277	)		(37	)		(240	)
Stock-based compensation expense		7,514			2,478			5,036
Non-cash portion of tax provision		(1,022	)		(355	)		(667	)
Non-real estate related depreciation and amortization		3,115			2,904			211
Amortization of deferred financing costs		1,242			1,348			(106	)
Loss on extinguishment of debt		15,429			—			15,429
Capital expenditures – maintenance		(8,125	)		(9,378	)		1,253
Adjustments for unconsolidated affiliates and    non-controlling interest		(195	)		(177	)		(18	)
AFFO	$	96,452		$	86,535		$	9,917			11.5	%

FFO for the three months ended March 31, 2018 decreased 12.2% to $78.8 million as compared to FFO of $89.8 million for the same period in 2017. AFFO for the three months ended March 31, 2018 increased 11.5% to $96.5 million as compared to $86.5 million for the same period in 2017. The increase in AFFO was primarily attributable to the increase in our gross margin (net revenue less direct advertising expense), decreases in general and administrative and corporate expenses (excluding stock-based compensation) and decreases in maintenance capital expenditures, offset by an increase in interest expense.

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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 March 31, 2018, and should be read in conjunction with Note 9 of the Notes to the Company’s Consolidated Financial Statements in this Quarterly Report on Form 10-Q.

Loans under Lamar Media’s senior credit facility bear interest at variable rates equal to the Adjusted LIBO Rate or Adjusted Base Rate plus the applicable margin. Because the Adjusted LIBO Rate or Adjusted Base Rate 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 March 31, 2018, there was approximately $1.207 billion of aggregate indebtedness outstanding under the senior credit facility, or approximately 45.9% of the Company’s outstanding long-term debt on that date, bearing interest at variable rates. The aggregate interest expense for the three months ended March 31, 2018 with respect to borrowings under the senior credit facility was $6.6 million, and the weighted average interest rate applicable to borrowings under this credit facility during the three months ended March 31, 2018 was 3.4%. Assuming that the weighted average interest rate was 200-basis points higher (that is 5.4% rather than 3.4%), then the Company’s three months ended March 31, 2018 interest expense would have increased by $3.7 million.

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.

38

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.

PART II — OTHER INFORMATION

ITEM 1A. RISK FACTORS

Our operations and financial results are subject to various risks and uncertainties, including those described in Part I, Item 1A, “Risk Factors” in our combined Annual Report on Form 10-K for the year ended December 31, 2017, which could adversely affect our business, financial condition, results of operations, cash flows, and the trading price of our Class A common stock. There have been no material changes to our risk factors since our combined Annual Report on Form 10-K for the year ended December 31, 2017.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 6. EXHIBITS

Exhibit Number	Description
3.1	Amended and Restated Certificate of Incorporation of Lamar Advertising Company (the “Company”), as filed with the Secretary of the State of Delaware effective as of November 18, 2014.  Previously filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on November 19, 2014 and incorporated herein by reference.
3.2	Certificate of Merger, effective as of November 18, 2014. Previously filed as Exhibit 3.2 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on November 19, 2014 and incorporated herein by reference.
3.3	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.
3.4	Amended and Restated Bylaws of the Company, adopted as of November 18, 2014.  Previously filed as Exhibit 3.3 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on November 19, 2014 and incorporated herein by reference.
3.5	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.
10.1	Joinder Agreement, dated as of January 30, 2018, to the Third Amended and Restated Credit Agreement dated as of May 15, 2017, as amended, among Lamar Media, the subsidiary borrower party thereto, the subsidiary guarantors party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, by Interstate Logos TRS, LLC.  Filed herewith.

39

Exhibit Number	Description
10.2	Amendment No. 1 dated as of March  16, 2018 to the Third Restatement Agreement, by and among Lamar Media Corp., Lamar Advertising Company, the Subsidiary Guarantors named therein, the Lenders named therein, and JPMorgan Chase Bank, N.A., as Administrative Agent (including the Third Amended and Restated Credit Agreement, as amended for Amendment No. 1, as Exhibit A thereto).  Previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on March 21, 2018 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 three months ended March 31, 2018, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017 of the Company and Lamar Media, (ii) Condensed Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2018 and 2017 of the Company and Lamar Media, (iii) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2017 of the Company and Lamar Media, and (iv) Notes to Condensed Consolidated Financial Statements of the Company and Lamar Media

40

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: May 2, 2018	BY:	/s/ Keith A. Istre
		Chief Financial and Accounting Officer and Treasurer
	LAMAR MEDIA CORP.
DATED: May 2, 2018	BY:	/s/ Keith A. Istre
		Chief Financial and Accounting Officer and Treasurer

41

42

EX-10.1

Exhibit 10.1

JOINDER AGREEMENT

JOINDER AGREEMENT dated as of January 30, 2018 by the undersigned, Interstate Logos TRS, LLC, a Delaware limited liability company (the “Additional Subsidiary Guarantor”), in favor of JPMorgan Chase Bank, N.A., as administrative agent for the Lenders party to the Credit Agreement referred to below (in such capacity, together with its successors in such capacity, the “Administrative Agent”).

Lamar Media Corp., a Delaware corporation (the “Company”), the Subsidiary Borrower that may be or may become a party thereto (the “Subsidiary Borrower” and together with the Company, the “Borrowers”) and certain of its subsidiaries (collectively, the “Existing Subsidiary Guarantors” and, together with the Borrowers, the “Securing Parties”) are parties to the Third Amended and Restated Credit Agreement dated as of May 15, 2017, by and among Lamar Media Corp., the Subsidiary Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, (as further amended prior to the date hereof and as the same may be further amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), providing, subject to the terms and conditions thereof, for extensions of credit (by means of loans and letters of credit) to be made by the Lenders therein (collectively, together with any entity that becomes a “Lender” party to the Credit Agreement after the date hereof as provided therein, the “Lenders” and, together with Administrative Agent and any successors or assigns of any of the foregoing, the “Secured Parties”) to the Borrowers.  In addition, the Borrowers may from time to time be obligated to one or more of the Lenders under the Credit Agreement in respect of Swap Agreements under and as defined in the Credit Agreement (collectively, the “Swap Agreements”).

In connection with the Credit Agreement, the Borrowers, the Existing Subsidiary Guarantors and the Administrative Agent are parties to the Amended and Restated Pledge Agreement dated February 3, 2014 (the “Pledge Agreement”) pursuant to which the Securing Parties have, inter alia, granted a security interest in the Collateral (as defined in the Pledge Agreement) as collateral security for the Secured Obligations (as so defined).  Terms defined in the Pledge Agreement are used herein as defined therein.

To induce the Secured Parties to enter into the Credit Agreement, and to extend credit thereunder and to extend credit to the Borrower under Swap Agreements, and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the Additional Subsidiary Guarantor has agreed to become a party to the Credit Agreement and the Pledge Agreement as a “Subsidiary Guarantor” thereunder, and to pledge and grant a security interest in the Collateral (as defined in the Pledge Agreement).

Accordingly, the parties hereto agree as follows:

Section 1.  Definitions.  Terms defined in the Credit Agreement are used herein as defined therein.

Section 2.  Joinder to Agreements.  Effective upon the execution and delivery hereof, the Additional Subsidiary Guarantor hereby agrees that it shall become a “Subsidiary Guarantor” under and for all purposes of the Credit Agreement and a “Securing Party” under and for all purposes of the Pledge Agreement with all the rights and obligations of a Subsidiary Guarantor and Securing Party thereunder, as applicable.  Without limiting the generality of the foregoing, the Additional Subsidiary Guarantor hereby:

(i)jointly and severally with the other Subsidiary Guarantors party to the Credit Agreement guarantees to each Secured Party and their respective successors and assigns the prompt payment in full when due (whether at stated maturity, by acceleration or otherwise) of all Guaranteed Obligations in the same manner and to the same extent as is provided in Article III of the Credit Agreement;

(ii)pledges and grants the security interests in all right, title and interest of the Additional Subsidiary Guarantor in all Collateral (as defined in the Pledge Agreement) that it now owns or hereafter acquires and whether now existing or hereafter coming into existence provided for by Article III of the Pledge

Agreement as collateral security for the Secured Obligations and agrees that the Schedules thereof shall be supplemented as provided in Appendices A, B and C hereto;

(iii) makes the representations and warranties set forth in Article IV of the Credit Agreement and in Article II of the  Pledge Agreement, to the extent relating to the Additional Subsidiary Guarantor or to the Pledged Equity evidenced by the certificates, if any, identified in Appendices A and B hereto; and

(iv)submits to the jurisdiction of the courts, and waives jury trial, as provided in Sections 10.09 and 10.10 of the Credit Agreement.

The Additional Subsidiary Guarantor hereby instructs its counsel to deliver the

opinions referred to in Section 6.10(a)(iii) of the Credit Agreement to the Secured Parties.

[Signature Page Follows]

2

IN WITNESS WHEREOF, the Additional Subsidiary Guarantor has caused this Joinder Agreement to be duly executed and delivered as of the day and year first above written.

INTERSTATE LOGOS TRS, LLC, a Delaware limited liability company

By: Lamar TRS Holdings, LLC, its sole managing member

By: Lamar Media Corp., its sole managing member

By:/s/ Keith A. Istre________________________

Keith A. Istre, Executive Vice President and

Chief Financial Officer

Attest:

By: /s/ James R. McIlwain _______________

       James R. McIlwain, Secretary

Accepted and agreed:

JPMORGAN CHASE BANK, N.A.

as Administrative Agent

By : /s/ Nicolas Girton-Beer

Name: Nicolas Girton-Beer

Title: Vice President

3

The undersigned hereby respectively pledges and grants a security interest in the Pledged Equity that it owns as described in Appendix A hereto and agrees that Schedule 1, Part 2 – Pledged Equity of the Pledge Agreement is hereby supplemented by adding thereto the information listed on Appendix A.

Lamar TRS Holdings, LLC, Issuee

By:Lamar Media Corp., its sole managing member

By:/s/ Keith A. Istre _______________________

Keith A. Istre, Executive Vice President and

Chief Financial Officer

4

Supplement to Schedule 1, Part 2 – Pledged Equity

Appendix A to Joinder Agreement

Pledgor Ownership	Issuer	Certificate No.	No. of Units	%
Lamar TRS Holdings, LLC	Interstate Logos TRS, LLC	Uncertificated	100	100

5

The undersigned hereby respectively pledges and grants a security interest in the Pledged Equity that it owns as described in Appendix B hereto and agrees that Schedule 1, Part 2 – Pledged Equity of the Pledge Agreement is hereby supplemented by adding thereto the information listed on Appendix B.

Interstate Logos TRS, LLC, Issuee

By: Lamar TRS Holdings, LLC

Its: Sole and Managing Member

By: Lamar Media Corp.

Its: Sole and Managing Member

By: /s/ Keith A. Istre _______________________

       Keith A. Istre, Executive Vice President/

       Chief Financial Officer

6

APPENDIX B

Pledgor Ownership	Issuer	Certificate No.	No. of Units	%
Interstate Logos TRS, LLC	Florida Logos, LLC	Uncertificated	100	100

7

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,											Three Months Ended March 31,
(dollars in thousands)	2013		2014			2015		2016		2017		2018		2017
Net income	$	40,139	$	253,518		$	262,570	$	298,809	$	317,676	$	15,052	$	41,787
Income tax expense (benefit)		22,841		(110,092	)		22,058		13,356		9,230		1,844		2,199
Fixed charges		221,584		182,472			179,881		213,820		221,434		57,110		54,120
Earnings		284,564		325,898			464,509		525,985		548,340		74,006		98,106
Interest expense, net		146,112		105,152			98,399		123,682		128,390		33,555		31,479
Rents under leases representative of an interest    factor (1/3)		75,107		76,955			81,117		89,773		92,679		23,464		22,550
Preferred dividends		365		365			365		365		365		91		91
Fixed charges		221,584		182,472			179,881		213,820		221,434		57,110		54,120
Ratio of earnings to fixed charges	1.3x		1.8x			2.6x		2.5x		2.5x		1.3x		1.8x

⁽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 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.

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,											Three Months Ended March 31,
(dollars in thousands)	2013		2014			2015		2016		2017		2018		2017
Net income	$	40,338	$	287,035		$	262,903	$	299,181	$	318,058	$	15,158	$	41,893
Income tax expense (benefit)		22,977		(143,264	)		22,058		13,356		9,230		1,844		2,199
Fixed charges		221,219		182,107			179,516		213,455		221,069		57,019		54,029
Earnings		284,534		325,878			464,477		525,992		548,357		74,021		98,121
Interest expense, net		146,112		105,152			98,399		123,682		128,390		33,555		31,479
Rent under leases representative of an interest    factor (1/3)		75,107		76,955			81,117		89,773		92,679		23,464		22,550
Preferred dividends		—		—			—		—		—		—		—
Fixed charges		221,219		182,107			179,516		213,455		221,069		57,019		54,029
Ratio of earnings to fixed charges	1.3x		1.8x			2.6x		2.5x		2.5x		1.3x		1.8x

(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 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.

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: May 2, 2018

/s/ Sean E. Reilly

Sean E. Reilly

Chief Executive Officer, Lamar Advertising Company

Chief Executive Officer, Lamar Media Corp.

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: May 2, 2018

/s/ Keith A. Istre

Keith A. Istre

Chief Financial Officer, Lamar Advertising Company

Chief Financial Officer, Lamar Media Corp.

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 Advertising”) and Lamar Media Corp. (“Lamar 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 Advertising and Lamar Media for the period ended March 31, 2018 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 Advertising and Lamar Media.

Dated: May 2, 2018	By:	/s/ Sean E. Reilly
		Sean E. Reilly
		Chief Executive Officer, Lamar Advertising Company
		Chief Executive Officer, Lamar Media Corp.
Dated: May 2, 2018	By:	/s/ Keith A. Istre
		Keith A. Istre
		Chief Financial Officer, Lamar Advertising Company
		Chief Financial Officer, Lamar Media Corp.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 25, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Trading Symbol	LAMR
Entity Registrant Name	LAMAR ADVERTISING CO/NEW
Entity Central Index Key	0001090425
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		84,024,468
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		14,420,085
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Entity Registrant Name	LAMAR MEDIA CORP/DE
Entity Central Index Key	0000899045
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Class Units [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		100

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 10,046	$ 115,471
Receivables, net of allowance for doubtful accounts	209,232	201,699
Prepaid lease expenses	77,429	51,074
Other current assets	59,292	52,275
Total current assets	355,999	420,519
Property, plant and equipment	3,372,406	3,384,723
Less accumulated depreciation and amortization	(2,179,506)	(2,170,585)
Net property, plant and equipment	1,192,900	1,214,138
Goodwill	1,737,402	1,740,454
Intangible assets	770,370	796,348
Other assets	57,856	42,886
Total assets	4,114,527	4,214,345
Current liabilities:
Trade accounts payable	19,176	17,961
Current maturities of long-term debt, net of deferred financing costs	23,978	17,664
Accrued expenses	81,277	197,675
Deferred income	99,160	92,694
Total current liabilities	223,591	325,994
Long-term debt, net of deferred financing costs	2,603,982	2,539,026
Deferred income tax liabilities	845	884
Asset retirement obligation	215,055	215,089
Other liabilities	30,855	29,859
Total liabilities	3,074,328	3,110,852
Stockholders’ equity:
Additional paid-in capital	1,778,441	1,762,499
Accumulated comprehensive income	759	1,302
Accumulated deficit	(713,687)	(639,106)
Cost of shares held in treasury, 388,903 and 331,284 shares at 2018 and 2017, respectively	(25,412)	(21,300)
Stockholders’ equity	1,040,199	1,103,493
Total liabilities and stockholders’ equity	4,114,527	4,214,345
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Current assets:
Cash and cash equivalents	9,546	114,971
Receivables, net of allowance for doubtful accounts	209,232	201,699
Prepaid lease expenses	77,429	51,074
Other current assets	59,292	52,275
Total current assets	355,499	420,019
Property, plant and equipment	3,372,406	3,384,723
Less accumulated depreciation and amortization	(2,179,506)	(2,170,585)
Net property, plant and equipment	1,192,900	1,214,138
Goodwill	1,727,251	1,730,303
Intangible assets	769,901	795,879
Other assets	52,572	37,603
Total assets	4,098,123	4,197,942
Current liabilities:
Trade accounts payable	19,176	17,961
Current maturities of long-term debt, net of deferred financing costs	23,978	17,664
Accrued expenses	77,072	193,667
Deferred income	99,160	92,694
Total current liabilities	219,386	321,986
Long-term debt, net of deferred financing costs	2,603,982	2,539,026
Deferred income tax liabilities	845	884
Asset retirement obligation	215,055	215,089
Other liabilities	30,855	29,859
Total liabilities	3,070,123	3,106,844
Stockholders’ equity:
Additional paid-in capital	2,848,881	2,832,940
Accumulated comprehensive income	759	1,302
Accumulated deficit	(1,821,640)	(1,743,144)
Stockholders’ equity	1,028,000	1,091,098
Total liabilities and stockholders’ equity	4,098,123	4,197,942
Series AA Preferred Stock [Member]
Stockholders’ equity:
Preferred stock, value
Common Class A [Member]
Stockholders’ equity:
Common stock, value	84	84
Common Class B [Member]
Stockholders’ equity:
Common stock, value	$ 14	$ 14

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Allowance for doubtful accounts	$ 11,000	$ 10,055
Current deferred financing costs	4,750	5,133
Noncurrent deferred financing costs	$ 23,387	$ 23,586
Shares held in treasury	388,903	331,284
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Allowance for doubtful accounts	$ 11,000	$ 10,055
Current deferred financing costs	4,750	5,133
Noncurrent deferred financing costs	$ 23,387	$ 23,586
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
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
Common Class A [Member]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	362,500,000	362,500,000
Common stock, shares issued	84,413,371	84,169,118
Common stock, shares outstanding	84,024,468	83,837,834
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	14,420,085	14,420,085
Common stock, shares outstanding	14,420,085	14,420,085

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Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net revenues	$ 361,026	$ 346,362
Operating expenses (income)
Direct advertising expenses (exclusive of depreciation and amortization)	138,293	131,844
General and administrative expenses (exclusive of depreciation and amortization)	70,208	72,031
Corporate expenses (exclusive of depreciation and amortization)	21,104	16,633
Depreciation and amortization	56,840	51,425
Loss (gain) on disposition of assets	8,701	(1,036)
Total Operating Expenses	295,146	270,897
Operating Income (Loss)	65,880	75,465
Other expense (income)
Loss on extinguishment of debt	15,429
Interest income	(24)	(4)
Interest expense	33,579	31,483
Non-operating (Income) Expenses	48,984	31,479
Income before income tax expense	16,896	43,986
Income tax expense	1,844	2,199
Net Income (Loss)	15,052	41,787
Cash dividends declared and paid on preferred stock	91	91
Net income applicable to common stock	$ 14,961	$ 41,696
Earnings per share:
Basic earnings per share	$ 0.15	$ 0.43
Diluted earnings per share	0.15	0.42
Cash dividends declared per share of common stock	$ 0.91	$ 0.83
Weighted average common shares used in computing earnings per share:
Weighted average common shares outstanding basic	98,301,551	97,575,481
Weighted average common shares outstanding diluted	98,726,934	98,149,974
Statements of Comprehensive Income
Net Income (Loss)	$ 15,052	$ 41,787
Other comprehensive (loss) income
Foreign currency translation adjustments	(543)	143
Other Comprehensive Income (Loss)	14,509	41,930
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Net revenues	361,026	346,362
Operating expenses (income)
Direct advertising expenses (exclusive of depreciation and amortization)	138,293	131,844
General and administrative expenses (exclusive of depreciation and amortization)	70,208	72,031
Corporate expenses (exclusive of depreciation and amortization)	20,998	16,527
Depreciation and amortization	56,840	51,425
Loss (gain) on disposition of assets	8,701	(1,036)
Total Operating Expenses	295,040	270,791
Operating Income (Loss)	65,986	75,571
Other expense (income)
Loss on extinguishment of debt	15,429
Interest income	(24)	(4)
Interest expense	33,579	31,483
Non-operating (Income) Expenses	48,984	31,479
Income before income tax expense	17,002	44,092
Income tax expense	1,844	2,199
Net Income (Loss)	15,158	41,893
Statements of Comprehensive Income
Net Income (Loss)	15,158	41,893
Other comprehensive (loss) income
Foreign currency translation adjustments	(543)	143
Other Comprehensive Income (Loss)	$ 14,615	$ 42,036

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net Income (Loss)	$ 15,052	$ 41,787
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	56,840	51,425
Stock-based compensation	7,514	2,478
Amortization included in interest expense	1,242	1,348
Loss (gain) on disposition of assets and investments	8,701	(1,036)
Loss on extinguishment of debt	15,429
Deferred tax benefit	(87)	(355)
Provision for doubtful accounts	2,206	1,428
(Increase) decrease in:
Receivables	(9,876)	(955)
Prepaid lease expenses	(26,968)	(27,097)
Other assets	(7,542)	(12,053)
Increase (decrease) in:
Trade accounts payable	944	526
Accrued expenses	(27,682)	(26,646)
Other liabilities	4,999	3,646
Net cash provided by operating activities	40,772	34,496
Cash flows from investing activities:
Acquisitions	(6,637)	(17,779)
Capital expenditures	(23,252)	(19,236)
Proceeds received from insurance claims	790
Proceeds from disposition of assets and investments	244	1,592
Decrease in notes receivable	2	4
Net cash used in investing activities	(28,853)	(35,419)
Cash flows from financing activities:
Cash used for purchase of treasury stock	(4,112)	(8,997)
Net proceeds from issuance of common stock	3,974	12,934
Principal payments on long term debt	(5,703)	(5,625)
Payment on revolving credit facility	(135,000)	(54,000)
Proceeds received from revolving credit facility	112,000	134,000
Redemption of senior subordinated notes	(509,790)
Proceeds received from senior credit facility Term B loan	599,250
Debt issuance costs	(6,290)
Distributions to non-controlling interest	(118)	(205)
Dividends/distributions	(171,258)	(81,279)
Net cash used in financing activities	(117,047)	(3,172)
Principal payments on long-term debt	(5,703)	(5,625)
Effect of exchange rate changes in cash and cash equivalents	(297)	187
Net decrease in cash and cash equivalents	(105,425)	(3,908)
Cash and cash equivalents at beginning of period	115,471	35,530
Cash and cash equivalents at end of period	10,046	31,622
Supplemental disclosures of cash flow information:
Cash paid for interest	49,600	43,446
Cash paid for foreign, state and federal income taxes	1,490	3,859
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Cash flows from operating activities:
Net Income (Loss)	15,158	41,893
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	56,840	51,425
Stock-based compensation	7,514	2,478
Amortization included in interest expense	1,242	1,348
Loss (gain) on disposition of assets and investments	8,701	(1,036)
Loss on extinguishment of debt	15,429
Deferred tax benefit	(87)	(355)
Provision for doubtful accounts	2,206	1,428
(Increase) decrease in:
Receivables	(9,876)	(955)
Prepaid lease expenses	(26,968)	(27,097)
Other assets	(7,542)	(12,053)
Increase (decrease) in:
Trade accounts payable	944	526
Accrued expenses	(27,682)	(26,646)
Other liabilities	(7,256)	(16,163)
Net cash provided by operating activities	28,623	14,793
Cash flows from investing activities:
Acquisitions	(6,637)	(17,779)
Capital expenditures	(23,252)	(19,236)
Proceeds received from insurance claims	790
Proceeds from disposition of assets and investments	244	1,592
Decrease in notes receivable	2	4
Net cash used in investing activities	(28,853)	(35,419)
Cash flows from financing activities:
Principal payments on long term debt	(5,703)	(5,625)
Payment on revolving credit facility	(135,000)	(54,000)
Proceeds received from revolving credit facility	112,000	134,000
Redemption of senior subordinated notes	(509,790)
Proceeds received from senior credit facility Term B loan	599,250
Debt issuance costs	(6,290)
Distributions to non-controlling interest	(118)	(205)
Contributions from parent	15,941	32,546
Dividend to parent	(175,188)	(90,185)
Net cash used in financing activities	(104,898)	16,531
Principal payments on long-term debt	(5,703)	(5,625)
Effect of exchange rate changes in cash and cash equivalents	(297)	187
Net decrease in cash and cash equivalents	(105,425)	(3,908)
Cash and cash equivalents at beginning of period	114,971	35,030
Cash and cash equivalents at end of period	9,546	31,122
Supplemental disclosures of cash flow information:
Cash paid for interest	49,600	43,446
Cash paid for foreign, state and federal income taxes	$ 1,490	$ 3,859

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Significant Accounting Policies

3 Months Ended

Mar. 31, 2018

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 2017 Combined Form 10-K. Subsequent events, if any, are evaluated through the date on which the financial statements are issued.

LAMAR MEDIA CORP. AND SUBSIDIARIES [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 2017 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, 13 and 14 to the condensed consolidated financial statements of Lamar Advertising included elsewhere in this report is substantially equivalent to that required for the condensed consolidated financial statements of Lamar Media. Earnings per share data is not provided for Lamar Media, as it is a wholly owned subsidiary of the Company.

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Revenues

3 Months Ended

Mar. 31, 2018

Revenue From Contract With Customer [Abstract]

Revenues

2. Revenues

On January 1, 2018, we adopted FASB Accounting Standards Update (“ASU”) No. 2014-09 (Codified as ASC 606), Revenue from Contracts with Customersusing the cumulative effect transition method applied to those contracts which were not completed as of January 1, 2018 and are not accounted for under ASC 840, Leases.  Results for reporting periods beginning after January 1, 2018 are presented under ASC 606 or 840, while comparative information has not been adjusted and continues to be reported under ASC 605.

A majority of our billboard, logo, and transit space contracts are accounted for under ASC 840 and will continue to be accounted for under the topic until January 1, 2019, our adoption date of FASB Accounting Standards Update (“ASU”) No. 2016-02 (Codified as ASC 842), Leases. Contracts which begin prior to January 1, 2019 and are accounted for under ASC 840 will continue to be accounted for as a lease until the contract ends or is modified. Contracts beginning or modified on or after January 1, 2019 which do not meet the criteria of a lease under ASC 842 will be accounted for under ASC 606 Revenue. The majority of our advertising space contracts will not meet the definition of a lease under ASC 842.

Revenue Recognition

Advertising Revenues:  The majority of our revenues are derived from contracts for advertising space on billboard, logo and transit displays and are currently accounted for under ASC 840 Leases.  Upon the Company’s adoption of ASC 842, Leases the majority of our contracts for advertising space will transition to being accounted for under ASC 606, Revenue. The contract revenues, under ASC 840, Leases and ASC 606, Revenue, are recognized ratably over their contract life.

Other revenues:  Our other component of revenue primarily consists of production services which includes creating and printing the advertising copy.  As of January 1, 2018 revenue for production contracts is recognized under ASC 606. Contract revenues for production services are recognized upon satisfaction of the contract which is typically less than one week.

Arrangements with multiple performance obligations:  Our contracts with customers may include multiple performance obligations.  For such arrangements, we allocate revenue to each performance obligation based on the relative standalone selling price.  We determine standalone selling prices based on the prices charged to customers using expected cost plus margin.

Deferred revenues:  We record deferred revenues when cash payments are received or due in advance of our performance obligation. The term between invoicing and when a payment is due is not significant.  For certain services we require payment before the product or services are delivered to the customer.  The balance of deferred income is considered short-term and will be recognized in revenue within twelve months.

Practical Expedients and Exemptions: Upon our transition to ASC 606 from ASC 840, the Company plans to utilize the following practical expedients and exemptions from ASC 606.  We generally expense sales commissions when incurred because the amortization period is one year or less. These costs are recorded within direct advertising expense (exclusive of depreciation and amortization).  We do not disclose the value of unsatisfied performance obligations as the majority of our contracts with customers have an original expected length of less than one year. For contracts with customers which exceed one year the future amount to be invoiced to the customer corresponds directly with the value to be received by the customer.

The following table presents our disaggregated revenue by source including both revenues accounted for under ASC 840 and ASC 606 for the three months ended March 31, 2018 and March 31, 2017.

	Three months ended March 31,
	2018		2017
Billboard Advertising	$	312,803	$	301,185
Logo Advertising		20,629		20,329
Transit Advertising		27,594		24,848
Net Revenues	$	361,026	$	346,362

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

3. 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.

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 9,000 shares of its Class A common stock during the three months ended March 31, 2018. At March 31, 2018 a total of 1,070,266 shares were available for future grant.

Stock Purchase Plan. Lamar Advertising’s 2009 Employee Stock Purchase Plan or 2009 ESPP  was approved by our shareholders on May 28, 2009.  The number of shares of Class A common stock available under the 2009 ESPP was automatically increased by 83,838 shares on January 1, 2018 pursuant to the automatic increase provisions of the 2009 ESPP.

The following is a summary of 2009 ESPP share activity for the three months ended March 31, 2018:

	Shares
Available for future purchases, January 1, 2018		225,418
Additional shares reserved under 2009 ESPP		83,838
Purchases		(39,515	)
Available for future purchases, March 31, 2018		269,741

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 2018 results. Any shares issued based on the achievement of performance goals will be issued in the first quarter of 2019. 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 three months ended March 31, 2018, the Company has recorded $6,517 as stock-based compensation expense related to performance-based awards. In addition, each non-employee director automatically receives upon election or re-election a restricted stock award of our Class A common stock. The awards vest 50% on grant date and 50% on the last day of the directors’ one year term. The Company recorded a $41 stock-based compensation expense related to these awards for the three months ended March 31, 2018.

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Depreciation and Amortization

3 Months Ended

Mar. 31, 2018

Depreciation And Amortization [Abstract]

Depreciation and Amortization

4. Depreciation and Amortization

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

	Three months ended March 31,
	2018		2017
Direct advertising expenses	$	53,016	$	48,318
General and administrative expenses		995		930
Corporate expenses		2,829		2,177
	$	56,840	$	51,425

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Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2018

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 March 31, 2018 and December 31, 2017:  

	Estimated		March 31, 2018				December 31, 2017
	Life (Years)		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizable intangible assets:
Customer lists and contracts	7—10		$	577,351	$	501,494	$	586,055	$	505,778
Non-competition agreements	3—15			65,482		63,941		65,477		63,924
Site locations		15		2,047,492		1,369,167		2,072,059		1,372,954
Other	2—15			45,805		31,158		45,741		30,328
			$	2,736,130	$	1,965,760	$	2,769,332	$	1,972,984
Unamortizable intangible assets:
Goodwill			$	1,990,938	$	253,536	$	1,993,990	$	253,536

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Asset Retirement Obligations

3 Months Ended

Mar. 31, 2018

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, 2017	$	215,089
Additions to asset retirement obligations		103
Accretion expense		1,193
Liabilities settled		(1,330	)
Balance at March 31, 2018	$	215,055

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Distribution Restrictions

3 Months Ended

Mar. 31, 2018

Distribution Restrictions [Abstract]

Distribution Restrictions

7. Distribution Restrictions

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 March 31, 2018 and December 31, 2017, Lamar Media was permitted under the terms of its outstanding senior subordinated and senior notes to make transfers to Lamar Advertising in the form of cash dividends, loans or advances in amounts up to $2,902,529 and $2,975,593, respectively.

As of March 31, 2018, Lamar Media’s senior credit facility allows it to make transfers to Lamar Advertising in any taxable year up to the amount of Lamar Advertising’s taxable income (without any deduction for dividends paid). In addition, as of March 31, 2018, transfers to Lamar Advertising are permitted under Lamar Media’s senior credit facility and as defined therein up to the available cumulative credit, as long as no default has occurred and is continuing and, after giving effect to such distributions, (i) the total debt ratio is less than 6.5 to 1 and (ii) the secured debt ratio does not exceed 3.5 to 1. As of March 31, 2018, the total debt ratio was less than 6.5 to 1 and Lamar Media’s secured debt ratio was less than 3.5 to 1, and the available cumulative credit was $1,653,009.

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Earnings Per Share

3 Months Ended

Mar. 31, 2018

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 stock options. There were no dilutive shares excluded from this calculation resulting from their anti-dilutive effect for the three months ended March 31, 2018 or 2017.

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Long-term Debt

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Long-term Debt

9. Long-term Debt

Long-term debt consists of the following at March 31, 2018 and December 31, 2017:

	March 31, 2018
	Debt			Deferred financing costs			Debt, net of deferred financing costs
Senior Credit Facility	$	1,207,384		$	13,462		$	1,193,922
5% Senior Subordinated Notes		535,000			4,725			530,275
5 3/8% Senior Notes		510,000			4,805			505,195
5 3/4% Senior Notes		400,000			5,145			394,855
Other notes with various rates and terms		3,713			—			3,713
		2,656,097			28,137			2,627,960
Less current maturities		(28,728	)		(4,750	)		(23,978	)
Long-term debt, excluding current maturities	$	2,627,369		$	23,387		$	2,603,982

	December 31, 2017
	Debt			Deferred financing costs			Debt, net of deferred financing costs
Senior Credit Facility	$	636,750		$	7,689		$	629,061
5 7/8% Senior Subordinated Notes		500,000			5,850			494,150
5% Senior Subordinated Notes		535,000			4,927			530,073
5 3/8% Senior Notes		510,000			4,982			505,018
5 3/4% Senior Notes		400,000			5,271			394,729
Other notes with various rates and terms		3,659			—			3,659
		2,585,409			28,719			2,556,690
Less current maturities		(22,797	)		(5,133	)		(17,664	)
Long-term debt, excluding current maturities	$	2,562,612		$	23,586		$	2,539,026

Senior Credit Facility

On March 16, 2018, Lamar Media Corp. entered into Amendment No. 1 (Amendment No. 1”) to the Third Amended and Restated Credit Agreement dated May 15, 2017, with Lamar Advertising, certain of Lamar Media’s subsidiaries as Guarantors, JPMorgan Chase Bank, N.A. as Administrative Agent and the lenders named therein, under which the parties agreed to amend the existing senior credit facility to establish a new $600,000 Term B Loan Facility (the “Term B loan”), which will mature on March 16, 2025.  The Term B loan will begin amortizing on June 30, 2018 in equal quarterly installments of $1,500 with the remainder payable at maturity.  Lamar borrowed the full amount of the Term B loan on March 16, 2018.  The proceeds from the Term B loan, together with available cash on hand were used to redeem in full Lamar Media’s 5 7/8% Senior Subordinated Notes due 2022 (the “5 7/8% Notes).

Lamar Media’s Third Amended and Restated Credit Agreement dated as of May 15, 2017 (as amended by Amendment No. 1, the “senior credit facility”) consists of (i) a $450,000 senior secured revolving credit facility which will mature on May 15, 2022, (ii) a $450,000 Term A loan facility (the “Term A loans” and together with the Term B loans, the “Term loans”)  which will mature on May 15, 2022, (iii) the Term B loans and (iv) an incremental facility pursuant to which Lamar Media may incur additional term loan tranches or increase its revolving credit facility subject to pro forma compliance with the secured debt ratio financial maintenance covenant.

Under the senior credit facility Lamar Media borrowed all $450,000 in Term A loans on May 15, 2017.  The net proceeds, together with borrowing under the revolving portion of senior credit facility and cash on hand, were used to repay all outstanding amounts under the existing senior credit facility, and all revolving commitments under that facility were terminated.

The Term A loans mature on February 2, 2019 and the Term B loans mature on March 16, 2025.  The remaining quarterly installments are scheduled to be paid on each June 30, September 30, December 31, and March 31 as follows:

Principal Payment Date	Term A		Term B
June 30, 2018-June 30, 2019	$	5,625	$	1,500
September 30, 2019-June 30, 2020	$	8,438	$	1,500
September 30, 2020-March 31, 2022	$	16,875	$	1,500
Term A Loan Maturity Date	$	253,125	$	—
June 30, 2022-December 31, 2024	$	—	$	1,500
Term B Loan Maturity Date	$	—	$	559,500

The Term loans bear interest at rates based on the Adjusted LIBO Rate (“Eurodollar term loans”) or the Adjusted Base Rate (“Base Rate term loans”), at Lamar Media’s option. Eurodollar term loans bear interest at a rate per annum equal to the Adjusted LIBO Rate plus 1.75%; (or the Adjusted LIBO Rate plus 1.50% at any time the Total Debt Ratio is less than or equal to 3.25 to 1 for Term A loans only). Base Rate term loans bear interest at a rate per annum equal to the Adjusted Base Rate plus 0.75% (or the Adjusted Base Rate plus 0.50% at any time the Total Debt Ratio is less than or equal to 3.25 to 1 for Term A loans only). The revolving credit facility bears interest at rates based on the Adjusted LIBO Rate (“Eurodollar revolving loans”) or the Adjusted Base Rate (“Base Rate revolving loans”), at Lamar Media’s option. Eurodollar revolving loans bear interest at a rate per annum equal to the Adjusted LIBO Rate plus 2.25% (or the Adjusted LIBO Rate plus 2.00% at any time the Total Debt Ratio is less than or equal to 4.25 to 1; or the Adjusted LIBO Rate plus 1.75% at any time the Total Debt Ratio is less than or equal to 3.00 to 1). Base Rate revolving Loans bear interest at a rate per annum equal to the Adjusted Base Rate plus 1.25% (or the Adjusted Base Rate plus 1.0% at any time the total debt ratio is less than or equal to 4.25 to 1, or the Adjusted Base Rate plus 0.75% at any time the Total Debt Ratio is less than or equal to 3.00 to 1). The guarantees, covenants, events of default and other terms of the senior credit facility apply to the Term A and B loans and revolving credit facility.

As of March 31, 2018, there was $175,000 outstanding under the revolving credit facility. Availability under the revolving facility is reduced by the amount of any letters of credit outstanding. Lamar Media had $12,950 in letters of credit outstanding as of March 31, 2018 resulting in $262,050 of availability under its revolving facility. Revolving credit loans may be requested under the revolving credit facility at any time prior to its maturity on May 15, 2022.

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.

The senior credit facility contains provisions that allow Lamar Media to conduct its affairs in a manner that allows Lamar Advertising to qualify and remain qualified as a REIT, including by allowing Lamar Media to make distributions to Lamar Advertising required for the Company to qualify and remain qualified for taxation as a REIT, subject to certain restrictions.

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 a specified senior debt ratio at all times and in addition, must satisfy a total debt ratio in order to incur debt, make distributions or make certain investments.

Lamar Advertising and Lamar Media were in compliance with all of the terms of their indentures and the senior credit facility provisions during the periods presented.

5 7/8% Senior Subordinated Notes

On February 9, 2012, Lamar Media completed an institutional private placement of $500,000 aggregate principal amount of its 5 7/8% Notes. The institutional private placement resulted in net proceeds to Lamar Media of approximately $489,000. The Company used the proceeds from the Term B loans to redeem all of the 5 7/8% Notes on March 19, 2018 at a redemption price of 101.958% of the aggregate principal amount of the outstanding 5 7/8% Notes, plus accrued and unpaid interest up to but not including the redemption date. In conjunction with the redemption the Company recorded a loss on debt extinguishment of $15,429, of which $9,790 was cash, as of March 31, 2018.

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.

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.

5 3/8% Senior Notes

On January 10, 2014, Lamar Media completed an institutional private placement of $510,000 aggregate principal amount of 5 3/8% Senior Notes due 2024 (the “5 3/8% Notes”). The institutional private placement resulted in net proceeds to Lamar Media of approximately $502,300.

At any time prior to January 15, 2019, Lamar Media may redeem some or all of the 5 3/8% Notes at a price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest thereon plus a make-whole premium. On or after January 15, 2019, Lamar Media may redeem the 5 3/8% Notes, in whole or in part, in cash at redemption prices specified in the 5 3/8% 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 3/8% Notes at a price equal to 101% of the principal amount of the 5 3/8% Notes, plus accrued and unpaid interest, up to but not including the repurchase date.

5 3/4% Senior Notes

On January 28, 2016, Lamar Media completed an institutional private placement of $400,000 aggregate principal amount of 5 3/4% Senior Notes due 2026 (the “5 3/4 % Notes”). The institutional private placement resulted in net proceeds to Lamar Media of approximately $394,500.

Lamar Media may redeem up to 35% of the aggregate principal amount of the 5 3/4% Notes, at any time and from time to time, at a price equal to 105.750% 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, 2019, provided that following the redemption, at least 65% of the 5 3/4% Notes that were originally issued remain outstanding and any such redemption occurs within 120 days following the closing of any such public equity offering. At any time prior to February 1, 2021, Lamar Media may redeem some or all of the 5 3/4% Notes at a price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest thereon plus a make-whole premium. On or after February 1, 2021, Lamar Media may redeem the 5 3/4% Notes, in whole or in part, in cash at redemption prices specified in the 5 3/4% 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 3/4% Notes at a price equal to 101% of the principal amount of the 5 3/4% Notes, plus accrued and unpaid interest, up to but not including the repurchase date.

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Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

10. Fair Value of Financial Instruments

At March 31, 2018 and December 31, 2017, 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. Investment contracts and assets held for sale 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 $2,689,914 which exceeded the carrying amount of $2,656,097 as of March 31, 2018. The majority of the fair value is determined using observed prices of publicly traded debt (level 1 in the fair value hierarchy) and the remaining is valued based on quoted prices for similar debt (level 2 in the fair value hierarchy).

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New Accounting Pronouncements

3 Months Ended

Mar. 31, 2018

New Accounting Pronouncements And Changes In Accounting Principles [Abstract]

New Accounting Pronouncements

11. New Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. Generally Accepted Accounting Principles (“GAAP”) when it becomes effective. In August 2015, the FASB issued ASU No. 2015-14 deferring the effective date from January 1, 2017 to January 1, 2018, while allowing for early adoption as of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company adopted the provisions of ASU No. 2014-09 on January 1, 2018 using the cumulative effect transition method. The Company did not have an adjustment to its opening balance of retained earnings for the adoption of this update.

In February 2016, the FASB issued ASU No. 2016-02, Leases.  The update is to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about lease arrangements.  The amendments in this update are effective beginning January 1, 2019 with retrospective application. The Company is in the process of assessing the impact ASU No. 2016-02 will have on our consolidated financial statements.  The Company expects the primary impact to our consolidated financial statements will be the recognition, on a discounted basis, of our minimum commitments under non-cancelable operating leases on our consolidated balance sheets, resulting in the recording of right of use assets and lease obligations.

In January 2018, the FASB issued ASU No. 2018-01, Leases (Topic 842) – Land Easement Practical Expedient for Transition to Topic 842. The update provides an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the current leases guidance in Topic 840. An entity that elects this practical expedient should evaluate new or modified land easements under Topic 842 upon adoption. An entity that does not elect this practical expedient should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease.  The Company plans to elect the provided practical expedients within this update upon our adoption of Topic 842.

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Dividends/Distributions

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Dividends/Distributions

12. Dividends/Distributions

During the three months ended March 31, 2018, the Company paid cash distributions of its REIT taxable income in the amount of $171,076 or $1.74 per share. The distributions paid during the three months ended March 31, 2018 include distributions declared on February 22, 2018 of $89,542 or $0.91 per share and distributions declared and accrued as of December 31, 2017 of $81,534 or $0.83 per share. During the three months ended March 31, 2017, the Company declared and paid cash distributions of its REIT taxable income in an aggregate amount of $81,188 or $0.83 per share. The amount, timing and frequency of future distributions will be at the sole discretion of the Board of Directors and will be declared based upon various factors, a number of which may be beyond the Company’s control, including financial condition and operating cash flows, the amount required to maintain REIT status and reduce any income and excise taxes that the Company otherwise would be required to pay, limitations on distributions in our existing and future debt instruments, the Company’s ability to utilize net operating losses to offset, in whole or in part, the Company’s distribution requirements, limitations on its ability to fund distributions using cash generated through its taxable REIT subsidiaries (TRSs) and other factors that the Board of Directors may deem relevant. During the three months ended March 31, 2018, the Company paid cash dividend distributions to holders of its Series AA Preferred Stock in an aggregate amount of $182 or $31.90 per share, which included distributions declared during the period as well as those declared and accrued in the fourth quarter of 2017. During the three months ended March 31, 2017, the Company paid cash dividend distributions to holders of its Series AA Preferred Stock in an aggregate amount of $91 or $15.95 per share.

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Information about Geographic Areas

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Information about Geographic Areas

13. Information about Geographic Areas

Revenues from external customers attributable to foreign countries totaled $7,525 and $6,893 for the three months ended March 31, 2018 and 2017, respectively. Net carrying value of long lived assets located in foreign countries totaled $3,142 and $3,571 as of March 31, 2018 and December 31, 2017, respectively. All other revenues from external customers and long lived assets relate to domestic operations.

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Divestiture of Assets

3 Months Ended

Mar. 31, 2018

Assets Of Disposal Group Including Discontinued Operation [Abstract]

Divestiture of Assets

14. Divestiture of Assets

As of March 31, 2018, the Company had initiated a plan to sell its billboard assets in Puerto Rico and recorded them as held for sale. The Company recorded a loss for the disposal group of $8,666 within loss (gain) on disposition of assets in our Condensed Consolidated Statements of Income and Comprehensive Income at March 31, 2018. The fair value of the disposal group of $12,500 was recorded within other assets in our Condensed Consolidated Balance Sheet as of March 31, 2018. The transaction to sell the disposal group was completed on April 16, 2018.

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Subsequent Events

3 Months Ended

Mar. 31, 2018

Subsequent Events [Abstract]

Subsequent Events

15. Subsequent Events

On May 1, 2018, the Company entered into an equity distribution agreement (the “Sales Agreement”) with J.P. Morgan Securities LLC, Wells Fargo Securities LLC, and SunTrust Robinson Humphrey, Inc. as its sales agents (each a “Sales Agent”, and collectively, the “Sales Agents”).  Under the terms of the Sales Agreement, the Company may, from time to time, issue and sell shares of its Class A common stock, par value $0.001 per share (the “Class A Common Stock”), having an aggregate offering price of up to $400,000, through the Sales Agents as either agents or principals.

Sales of the Class A Common Stock, if any, may be made in negotiated transactions or transactions that are deemed to be “at-the-market offerings” as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made directly on or through the Nasdaq Global Select Market and any other existing trading market for the Class A Common Stock, or sales made to or through a market maker other than on an exchange.  The Company has no obligation to sell any of the Class A Common Stock under the Sales Agreement and may at any time suspend solicitations and offers under the Sales Agreement.

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Summarized Financial Information of Subsidiaries

3 Months Ended

Mar. 31, 2018

LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]

Summarized Financial Information of Subsidiaries

2. Summarized Financial Information of Subsidiaries

Separate condensed consolidating financial information for Lamar Media, subsidiary guarantors and non-guarantor subsidiaries are presented below. Lamar Media and its subsidiary guarantors have fully and unconditionally guaranteed Lamar Media’s obligations with respect to its publicly issued notes. All guarantees are joint and several. As a result of these guarantee arrangements, we are required to present the following condensed consolidating financial information. The following condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and notes. The condensed consolidating financial information is provided as an alternative to providing separate financial statements for guarantor subsidiaries. Separate financial statements of Lamar Media’s subsidiary guarantors are not included because the guarantees are full and unconditional and the subsidiary guarantors are 100% owned and jointly and severally liable for Lamar Media’s outstanding publicly issued notes. The accounts for all companies reflected herein are presented using the equity method of accounting for investments in subsidiaries.

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Balance Sheet as of March 31, 2018
	Lamar Media Corp.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
	(unaudited)
ASSETS
Total current assets	$	4,138	$	333,488	$	17,873		$	—		$	355,499
Net property, plant and equipment		—		1,187,143		5,757			—			1,192,900
Intangibles and goodwill, net		—		2,476,624		20,528			—			2,497,152
Other assets		3,701,355		11,203		13,376			(3,673,362	)		52,572
Total assets	$	3,705,493	$	4,008,458	$	57,534		$	(3,673,362	)	$	4,098,123
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt	$	23,944	$	34	$	—		$	—		$	23,978
Other current liabilities		21,704		157,552		16,152			—			195,408
Total current liabilities		45,648		157,586		16,152			—			219,386
Long-term debt		2,603,889		93		—			—			2,603,982
Other noncurrent liabilities		27,956		217,431		43,864			(42,496	)		246,755
Total liabilities		2,677,493		375,110		60,016			(42,496	)		3,070,123
Stockholders’ equity		1,028,000		3,633,348		(2,482	)		(3,630,866	)		1,028,000
Total liabilities and stockholders’ equity	$	3,705,493	$	4,008,458	$	57,534		$	(3,673,362	)	$	4,098,123

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Balance Sheet as of December 31, 2017
	Lamar Media Corp.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Lamar Media Consolidated
ASSETS
Total current assets	$	87,167	$	293,536	$	39,316	$	—		$	420,019
Net property, plant and equipment		—		1,193,705		20,433		—			1,214,138
Intangibles and goodwill, net		—		2,495,370		30,812		—			2,526,182
Other assets		3,707,352		10,571		7		(3,680,327	)		37,603
Total assets	$	3,794,519	$	3,993,182	$	90,568	$	(3,680,327	)	$	4,197,942
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Current maturities of long-term debt	$	17,664	$	—	$	—	$	—		$	17,664
Other current liabilities		120,500		164,393		19,429		—			304,322
Total current liabilities		138,164		164,393		19,429		—			321,986
Long-term debt		2,539,026		—		—		—			2,539,026
Other noncurrent liabilities		26,231		218,900		61,587		(60,886	)		245,832
Total liabilities		2,703,421		383,293		81,016		(60,886	)		3,106,844
Stockholders’ equity		1,091,098		3,609,889		9,552		(3,619,441	)		1,091,098
Total liabilities and stockholders’ equity	$	3,794,519	$	3,993,182	$	90,568	$	(3,680,327	)	$	4,197,942

LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) (In Thousands, Except for Share Data) Condensed Consolidating Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2018
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income	(unaudited)
Net revenues	$	—		$	349,862		$	12,102		$	(938	)	$	361,026
Operating expenses
Direct advertising expenses (1)		—			131,124			7,750			(581	)		138,293
General and administrative expenses (1)		—			67,561			2,647			—			70,208
Corporate expenses (1)		—			20,605			393			—			20,998
Depreciation and amortization		—			54,349			2,491			—			56,840
Loss on disposition of assets		—			35			8,666			—			8,701
		—			273,674			21,947			(581	)		295,040
Operating income (loss)		—			76,188			(9,845	)		(357	)		65,986
Equity in (earnings) loss of subsidiaries		(64,165	)		—			—			64,165			—
Interest expense (income), net		33,578			(2	)		336			(357	)		33,555
Loss on debt extinguishment		15,429			—			—			—			15,429
Income (loss) before income tax expense		15,158			76,190			(10,181	)		(64,165	)		17,002
Income tax expense (2)		—			712			1,132			—			1,844
Net income (loss)	$	15,158		$	75,478		$	(11,313	)	$	(64,165	)	$	15,158
Statement of Comprehensive Income
Net income (loss)	$	15,158		$	75,478		$	(11,313	)	$	(64,165	)	$	15,158
Total other comprehensive income, net of tax		—			—			(543	)		—			(543	)
Total comprehensive income (loss)	$	15,158		$	75,478		$	(11,856	)	$	(64,165	)	$	14,615
(1) Caption is exclusive of depreciation and amortization.
(2) The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries.

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2017
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income	(unaudited)
Net revenues	$	—		$	335,803		$	11,474		$	(915	)	$	346,362
Operating expenses
Direct advertising expenses (1)		—			125,104			7,287			(547	)		131,844
General and administrative expenses (1)		—			70,012			2,019			—			72,031
Corporate expenses (1)		—			16,257			270			—			16,527
Depreciation and amortization		—			49,248			2,177			—			51,425
(Gain) loss on disposition of assets		—			(1,037	)		1			—			(1,036	)
		—			259,584			11,754			(547	)		270,791
Operating income (loss)		—			76,219			(280	)		(368	)		75,571
Equity in (earnings) loss of subsidiaries		(73,374	)		—			—			73,374			—
Interest expense (income), net		31,481			(3	)		369			(368	)		31,479
Income (loss) before income tax expense		41,893			76,222			(649	)		(73,374	)		44,092
Income tax expense (2)		—			1,723			476			—			2,199
Net income (loss)	$	41,893		$	74,499		$	(1,125	)	$	(73,374	)	$	41,893
Statement of Comprehensive Income
Net income (loss)	$	41,893		$	74,499		$	(1,125	)	$	(73,374	)	$	41,893
Total other comprehensive income, net of tax		—			—			143			—			143
Total comprehensive income (loss)	$	41,893		$	74,499		$	(982	)	$	(73,374	)	$	42,036
(1) Caption is exclusive of depreciation and amortization.
(2) The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries.

LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) (In Thousands, Except for Share Data) Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2018
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
	(unaudited)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	9,747		$	79,785		$	(2,253	)	$	(58,656	)	$	28,623
Cash flows from investing activities:
Acquisitions		—			(6,637	)		—			—			(6,637	)
Capital expenditures		—			(21,939	)		(1,313	)		—			(23,252	)
Proceeds from disposition of assets and investments		—			244			—			—			244
Proceeds received from insurance claims		—			—			790			—			790
Investment in subsidiaries		(6,637	)		—			—			6,637			—
Decrease (increase) in intercompany notes receivable		18,633			—			—			(18,633	)		—
Decrease (increase) in notes receivable		3			(1	)		—			—			2
Net cash provided by (used in) investing activities		11,999			(28,333	)		(523	)		(11,996	)		(28,853	)
Cash flows from financing activities:
Proceeds received from revolving credit facility		112,000			—			—			—			112,000
Payment on revolving credit facility		(135,000	)		—			—			—			(135,000	)
Principal payments on long-term debt		(5,697	)		(6	)		—			—			(5,703	)
Redemption of senior subordinated notes		(509,790	)		—			—			—			(509,790	)
Proceeds received from senior credit facility Term B loan		599,250			—			—			—			599,250
Debt issuance costs		(6,290	)		—			—			—			(6,290	)
Intercompany loan payable		—			—			(18,633	)		18,633			—
Distributions to non-controlling interest		—			—			(118	)		—			(118	)
Dividends (to) from parent		(175,188	)		(58,656	)		—			58,656			(175,188	)
Contributions from (to) parent		15,941			6,637			—			(6,637	)		15,941
Net cash (used in) provided by financing activities		(104,774	)		(52,025	)		(18,751	)		70,652			(104,898	)
Effect of exchange rate changes in cash and cash equivalents		—			—			(297	)		—			(297	)
Net decrease in cash and cash equivalents		(83,028	)		(573	)		(21,824	)		—			(105,425	)
Cash and cash equivalents at beginning of period		86,546			1,625			26,800			—			114,971
Cash and cash equivalents at end of period	$	3,518		$	1,052		$	4,976		$	—		$	9,546

LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) (In Thousands, Except for Share Data) Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2017
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
	(unaudited)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	922		$	59,675		$	(1,351	)	$	(44,453	)	$	14,793
Cash flows from investing activities:
Acquisitions		—			(17,779	)		—			—			(17,779	)
Capital expenditures		—			(17,079	)		(2,157	)		—			(19,236	)
Proceeds from disposition of assets and investments		—			1,592			—			—			1,592
Investment in subsidiaries		(17,779	)		—			—			17,779			—
(Increase) decrease in intercompany notes receivable		(3,194	)		—			—			3,194			—
Decrease in notes receivable		4			—			—			—			4
Net cash (used in) provided by investing activities		(20,969	)		(33,266	)		(2,157	)		20,973			(35,419	)
Cash flows from financing activities:
Proceeds received from revolving credit facility		134,000			—			—			—			134,000
Payment on revolving credit facility		(54,000	)		—			—			—			(54,000	)
Principal payments on long-term debt		(5,625	)		—			—			—			(5,625	)
Intercompany loan proceeds		—			—			3,194			(3,194	)		—
Distributions to non-controlling interest		—			—			(205	)		—			(205	)
Dividends (to) from parent		(90,185	)		(44,453	)		—			44,453			(90,185	)
Contributions from (to) parent		32,546			17,779			—			(17,779	)		32,546
Net cash provided by (used in) financing activities		16,736			(26,674	)		2,989			23,480			16,531
Effect of exchange rate changes in cash and cash equivalents		—			—			187			—			187
Net decrease in cash and cash equivalents		(3,311	)		(265	)		(332	)		—			(3,908	)
Cash and cash equivalents at beginning of period		12,762			1,201			21,067			—			35,030
Cash and cash equivalents at end of period	$	9,451		$	936		$	20,735		$	—		$	31,122

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Revenues (Tables)

3 Months Ended

Mar. 31, 2018

Revenue From Contract With Customer [Abstract]

Disaggregation Revenue

The following table presents our disaggregated revenue by source including both revenues accounted for under ASC 840 and ASC 606 for the three months ended March 31, 2018 and March 31, 2017.

	Three months ended March 31,
	2018		2017
Billboard Advertising	$	312,803	$	301,185
Logo Advertising		20,629		20,329
Transit Advertising		27,594		24,848
Net Revenues	$	361,026	$	346,362

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Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of ESPP Share Activity

The following is a summary of 2009 ESPP share activity for the three months ended March 31, 2018:

	Shares
Available for future purchases, January 1, 2018		225,418
Additional shares reserved under 2009 ESPP		83,838
Purchases		(39,515	)
Available for future purchases, March 31, 2018		269,741

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Depreciation and Amortization (Tables)

3 Months Ended

Mar. 31, 2018

Depreciation And Amortization [Abstract]

Depreciation and Amortization Expense Excluded from Operating Expenses in its Statements of Income and Comprehensive Income

The amounts of depreciation and amortization expense excluded from the following operating expenses in its Statements of Income and Comprehensive Income are: 

	Three months ended March 31,
	2018		2017
Direct advertising expenses	$	53,016	$	48,318
General and administrative expenses		995		930
Corporate expenses		2,829		2,177
	$	56,840	$	51,425

XML

Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Intangible Assets

The following is a summary of intangible assets at March 31, 2018 and December 31, 2017:  

	Estimated		March 31, 2018				December 31, 2017
	Life (Years)		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizable intangible assets:
Customer lists and contracts	7—10		$	577,351	$	501,494	$	586,055	$	505,778
Non-competition agreements	3—15			65,482		63,941		65,477		63,924
Site locations		15		2,047,492		1,369,167		2,072,059		1,372,954
Other	2—15			45,805		31,158		45,741		30,328
			$	2,736,130	$	1,965,760	$	2,769,332	$	1,972,984
Unamortizable intangible assets:
Goodwill			$	1,990,938	$	253,536	$	1,993,990	$	253,536

XML

Asset Retirement Obligations (Tables)

3 Months Ended

Mar. 31, 2018

Asset Retirement Obligation Disclosure [Abstract]

Information Related to Asset Retirement Obligations

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

Balance at December 31, 2017	$	215,089
Additions to asset retirement obligations		103
Accretion expense		1,193
Liabilities settled		(1,330	)
Balance at March 31, 2018	$	215,055

XML

Long-term Debt (Tables)

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Long-Term Debt

Long-term debt consists of the following at March 31, 2018 and December 31, 2017:

	March 31, 2018
	Debt			Deferred financing costs			Debt, net of deferred financing costs
Senior Credit Facility	$	1,207,384		$	13,462		$	1,193,922
5% Senior Subordinated Notes		535,000			4,725			530,275
5 3/8% Senior Notes		510,000			4,805			505,195
5 3/4% Senior Notes		400,000			5,145			394,855
Other notes with various rates and terms		3,713			—			3,713
		2,656,097			28,137			2,627,960
Less current maturities		(28,728	)		(4,750	)		(23,978	)
Long-term debt, excluding current maturities	$	2,627,369		$	23,387		$	2,603,982

	December 31, 2017
	Debt			Deferred financing costs			Debt, net of deferred financing costs
Senior Credit Facility	$	636,750		$	7,689		$	629,061
5 7/8% Senior Subordinated Notes		500,000			5,850			494,150
5% Senior Subordinated Notes		535,000			4,927			530,073
5 3/8% Senior Notes		510,000			4,982			505,018
5 3/4% Senior Notes		400,000			5,271			394,729
Other notes with various rates and terms		3,659			—			3,659
		2,585,409			28,719			2,556,690
Less current maturities		(22,797	)		(5,133	)		(17,664	)
Long-term debt, excluding current maturities	$	2,562,612		$	23,586		$	2,539,026

Schedule of Maturities of Long Term Debt

The Term A loans mature on February 2, 2019 and the Term B loans mature on March 16, 2025.  The remaining quarterly installments are scheduled to be paid on each June 30, September 30, December 31, and March 31 as follows:

Principal Payment Date	Term A		Term B
June 30, 2018-June 30, 2019	$	5,625	$	1,500
September 30, 2019-June 30, 2020	$	8,438	$	1,500
September 30, 2020-March 31, 2022	$	16,875	$	1,500
Term A Loan Maturity Date	$	253,125	$	—
June 30, 2022-December 31, 2024	$	—	$	1,500
Term B Loan Maturity Date	$	—	$	559,500

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Summarized Financial Information of Subsidiaries (Tables) - LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]

3 Months Ended

Mar. 31, 2018

Condensed Consolidating Balance Sheet

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Balance Sheet as of March 31, 2018
	Lamar Media Corp.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
	(unaudited)
ASSETS
Total current assets	$	4,138	$	333,488	$	17,873		$	—		$	355,499
Net property, plant and equipment		—		1,187,143		5,757			—			1,192,900
Intangibles and goodwill, net		—		2,476,624		20,528			—			2,497,152
Other assets		3,701,355		11,203		13,376			(3,673,362	)		52,572
Total assets	$	3,705,493	$	4,008,458	$	57,534		$	(3,673,362	)	$	4,098,123
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt	$	23,944	$	34	$	—		$	—		$	23,978
Other current liabilities		21,704		157,552		16,152			—			195,408
Total current liabilities		45,648		157,586		16,152			—			219,386
Long-term debt		2,603,889		93		—			—			2,603,982
Other noncurrent liabilities		27,956		217,431		43,864			(42,496	)		246,755
Total liabilities		2,677,493		375,110		60,016			(42,496	)		3,070,123
Stockholders’ equity		1,028,000		3,633,348		(2,482	)		(3,630,866	)		1,028,000
Total liabilities and stockholders’ equity	$	3,705,493	$	4,008,458	$	57,534		$	(3,673,362	)	$	4,098,123

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Balance Sheet as of December 31, 2017
	Lamar Media Corp.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Lamar Media Consolidated
ASSETS
Total current assets	$	87,167	$	293,536	$	39,316	$	—		$	420,019
Net property, plant and equipment		—		1,193,705		20,433		—			1,214,138
Intangibles and goodwill, net		—		2,495,370		30,812		—			2,526,182
Other assets		3,707,352		10,571		7		(3,680,327	)		37,603
Total assets	$	3,794,519	$	3,993,182	$	90,568	$	(3,680,327	)	$	4,197,942
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Current maturities of long-term debt	$	17,664	$	—	$	—	$	—		$	17,664
Other current liabilities		120,500		164,393		19,429		—			304,322
Total current liabilities		138,164		164,393		19,429		—			321,986
Long-term debt		2,539,026		—		—		—			2,539,026
Other noncurrent liabilities		26,231		218,900		61,587		(60,886	)		245,832
Total liabilities		2,703,421		383,293		81,016		(60,886	)		3,106,844
Stockholders’ equity		1,091,098		3,609,889		9,552		(3,619,441	)		1,091,098
Total liabilities and stockholders’ equity	$	3,794,519	$	3,993,182	$	90,568	$	(3,680,327	)	$	4,197,942

Condensed Consolidating Statements of Income and Comprehensive Income

LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) (In Thousands, Except for Share Data) Condensed Consolidating Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2018
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income	(unaudited)
Net revenues	$	—		$	349,862		$	12,102		$	(938	)	$	361,026
Operating expenses
Direct advertising expenses (1)		—			131,124			7,750			(581	)		138,293
General and administrative expenses (1)		—			67,561			2,647			—			70,208
Corporate expenses (1)		—			20,605			393			—			20,998
Depreciation and amortization		—			54,349			2,491			—			56,840
Loss on disposition of assets		—			35			8,666			—			8,701
		—			273,674			21,947			(581	)		295,040
Operating income (loss)		—			76,188			(9,845	)		(357	)		65,986
Equity in (earnings) loss of subsidiaries		(64,165	)		—			—			64,165			—
Interest expense (income), net		33,578			(2	)		336			(357	)		33,555
Loss on debt extinguishment		15,429			—			—			—			15,429
Income (loss) before income tax expense		15,158			76,190			(10,181	)		(64,165	)		17,002
Income tax expense (2)		—			712			1,132			—			1,844
Net income (loss)	$	15,158		$	75,478		$	(11,313	)	$	(64,165	)	$	15,158
Statement of Comprehensive Income
Net income (loss)	$	15,158		$	75,478		$	(11,313	)	$	(64,165	)	$	15,158
Total other comprehensive income, net of tax		—			—			(543	)		—			(543	)
Total comprehensive income (loss)	$	15,158		$	75,478		$	(11,856	)	$	(64,165	)	$	14,615
(1) Caption is exclusive of depreciation and amortization.
(2) The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries.

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2017
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income	(unaudited)
Net revenues	$	—		$	335,803		$	11,474		$	(915	)	$	346,362
Operating expenses
Direct advertising expenses (1)		—			125,104			7,287			(547	)		131,844
General and administrative expenses (1)		—			70,012			2,019			—			72,031
Corporate expenses (1)		—			16,257			270			—			16,527
Depreciation and amortization		—			49,248			2,177			—			51,425
(Gain) loss on disposition of assets		—			(1,037	)		1			—			(1,036	)
		—			259,584			11,754			(547	)		270,791
Operating income (loss)		—			76,219			(280	)		(368	)		75,571
Equity in (earnings) loss of subsidiaries		(73,374	)		—			—			73,374			—
Interest expense (income), net		31,481			(3	)		369			(368	)		31,479
Income (loss) before income tax expense		41,893			76,222			(649	)		(73,374	)		44,092
Income tax expense (2)		—			1,723			476			—			2,199
Net income (loss)	$	41,893		$	74,499		$	(1,125	)	$	(73,374	)	$	41,893
Statement of Comprehensive Income
Net income (loss)	$	41,893		$	74,499		$	(1,125	)	$	(73,374	)	$	41,893
Total other comprehensive income, net of tax		—			—			143			—			143
Total comprehensive income (loss)	$	41,893		$	74,499		$	(982	)	$	(73,374	)	$	42,036
(1) Caption is exclusive of depreciation and amortization.
(2) The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries.

Condensed Consolidating Statements of Cash Flows

LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) (In Thousands, Except for Share Data) Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2018
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
	(unaudited)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	9,747		$	79,785		$	(2,253	)	$	(58,656	)	$	28,623
Cash flows from investing activities:
Acquisitions		—			(6,637	)		—			—			(6,637	)
Capital expenditures		—			(21,939	)		(1,313	)		—			(23,252	)
Proceeds from disposition of assets and investments		—			244			—			—			244
Proceeds received from insurance claims		—			—			790			—			790
Investment in subsidiaries		(6,637	)		—			—			6,637			—
Decrease (increase) in intercompany notes receivable		18,633			—			—			(18,633	)		—
Decrease (increase) in notes receivable		3			(1	)		—			—			2
Net cash provided by (used in) investing activities		11,999			(28,333	)		(523	)		(11,996	)		(28,853	)
Cash flows from financing activities:
Proceeds received from revolving credit facility		112,000			—			—			—			112,000
Payment on revolving credit facility		(135,000	)		—			—			—			(135,000	)
Principal payments on long-term debt		(5,697	)		(6	)		—			—			(5,703	)
Redemption of senior subordinated notes		(509,790	)		—			—			—			(509,790	)
Proceeds received from senior credit facility Term B loan		599,250			—			—			—			599,250
Debt issuance costs		(6,290	)		—			—			—			(6,290	)
Intercompany loan payable		—			—			(18,633	)		18,633			—
Distributions to non-controlling interest		—			—			(118	)		—			(118	)
Dividends (to) from parent		(175,188	)		(58,656	)		—			58,656			(175,188	)
Contributions from (to) parent		15,941			6,637			—			(6,637	)		15,941
Net cash (used in) provided by financing activities		(104,774	)		(52,025	)		(18,751	)		70,652			(104,898	)
Effect of exchange rate changes in cash and cash equivalents		—			—			(297	)		—			(297	)
Net decrease in cash and cash equivalents		(83,028	)		(573	)		(21,824	)		—			(105,425	)
Cash and cash equivalents at beginning of period		86,546			1,625			26,800			—			114,971
Cash and cash equivalents at end of period	$	3,518		$	1,052		$	4,976		$	—		$	9,546

LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) (In Thousands, Except for Share Data) Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2017
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
	(unaudited)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	922		$	59,675		$	(1,351	)	$	(44,453	)	$	14,793
Cash flows from investing activities:
Acquisitions		—			(17,779	)		—			—			(17,779	)
Capital expenditures		—			(17,079	)		(2,157	)		—			(19,236	)
Proceeds from disposition of assets and investments		—			1,592			—			—			1,592
Investment in subsidiaries		(17,779	)		—			—			17,779			—
(Increase) decrease in intercompany notes receivable		(3,194	)		—			—			3,194			—
Decrease in notes receivable		4			—			—			—			4
Net cash (used in) provided by investing activities		(20,969	)		(33,266	)		(2,157	)		20,973			(35,419	)
Cash flows from financing activities:
Proceeds received from revolving credit facility		134,000			—			—			—			134,000
Payment on revolving credit facility		(54,000	)		—			—			—			(54,000	)
Principal payments on long-term debt		(5,625	)		—			—			—			(5,625	)
Intercompany loan proceeds		—			—			3,194			(3,194	)		—
Distributions to non-controlling interest		—			—			(205	)		—			(205	)
Dividends (to) from parent		(90,185	)		(44,453	)		—			44,453			(90,185	)
Contributions from (to) parent		32,546			17,779			—			(17,779	)		32,546
Net cash provided by (used in) financing activities		16,736			(26,674	)		2,989			23,480			16,531
Effect of exchange rate changes in cash and cash equivalents		—			—			187			—			187
Net decrease in cash and cash equivalents		(3,311	)		(265	)		(332	)		—			(3,908	)
Cash and cash equivalents at beginning of period		12,762			1,201			21,067			—			35,030
Cash and cash equivalents at end of period	$	9,451		$	936		$	20,735		$	—		$	31,122

XML

Revenues - Disaggregation Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation Of Revenue [Line Items]
Net Revenues	$ 361,026	$ 346,362
Billboard Advertising [Member]
Disaggregation Of Revenue [Line Items]
Net Revenues	312,803	301,185
Logo Advertising [Member]
Disaggregation Of Revenue [Line Items]
Net Revenues	20,629	20,329
Transit Advertising [Member]
Disaggregation Of Revenue [Line Items]
Net Revenues	$ 27,594	$ 24,848

XML

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
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.
Common Class A [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options granted	9,000
Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period	3 years
Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period	5 years
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
Number of shares available for grant under Incentive Plan	1,070,266
1996 Equity Incentive Plan [Member] | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Range of awards of target number of share	0.00%
1996 Equity Incentive Plan [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Range of awards of target number of share	100.00%
Performance Based Compensation [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Compensation expense related to performance based compensation agreements	$ 6,517
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expiration date of options granted under equity incentive plan	10 years
Restricted Stock [Member] | 1996 Equity Incentive Plan [Member] | Percentage of awards vesting on grant date [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of awards vesting on grant date	50.00%
Restricted Stock [Member] | 1996 Equity Incentive Plan [Member] | Percentage of Awards Vesting On Last Day of Each Directors Term [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period	1 year
Percentage of awards vesting on grant date	50.00%
Restricted Stock [Member] | 1996 Equity Incentive Plan [Member] | Common Class A [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Compensation expense related to performance based compensation agreements	$ 41
2009 Employee Stock Purchase Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares available for grant under Incentive Plan	269,741	225,418
Additional shares reserved under 2009 ESPP	83,838
2009 Employee Stock Purchase Plan [Member] | Common Class A [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Additional shares reserved under 2009 ESPP	83,838

XML

Stock-Based Compensation - Summary of ESPP Share Activity (Detail) - 2009 Employee Stock Purchase Plan [Member]	3 Months Ended
	Mar. 31, 2018 shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Available for future purchases, January 1, 2018	225,418
Additional shares reserved under 2009 ESPP	83,838
Purchases	(39,515)
Available for future purchases, March 31, 2018	269,741

XML

Depreciation and Amortization - Depreciation and Amortization Expense Excluded from Operating Expenses in its Statements of Income and Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Depreciation and Amortization Expense [Line Items]
Depreciation and amortization	$ 56,840	$ 51,425
Direct Advertising Expenses [Member]
Depreciation and Amortization Expense [Line Items]
Depreciation and amortization	53,016	48,318
General and Administrative Expenses [Member]
Depreciation and Amortization Expense [Line Items]
Depreciation and amortization	995	930
Corporate Expenses [Member]
Depreciation and Amortization Expense [Line Items]
Depreciation and amortization	$ 2,829	$ 2,177

XML

Goodwill and Other Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 2,736,130	$ 2,769,332
Accumulated Amortization	1,965,760	1,972,984
Goodwill gross carrying amount	1,990,938	1,993,990
Goodwill accumulated amortization	253,536	253,536
Customer Lists and Contracts [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	577,351	586,055
Accumulated Amortization	$ 501,494	505,778
Customer Lists and Contracts [Member] | Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	7 years
Customer Lists and Contracts [Member] | Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	10 years
Non-competition Agreements [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 65,482	65,477
Accumulated Amortization	$ 63,941	63,924
Non-competition Agreements [Member] | Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	3 years
Non-competition Agreements [Member] | Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	15 years
Site Locations [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 2,047,492	2,072,059
Accumulated Amortization	$ 1,369,167	1,372,954
Site Locations [Member] | Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	15 years
Other [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 45,805	45,741
Accumulated Amortization	$ 31,158	$ 30,328
Other [Member] | Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	2 years
Other [Member] | Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	15 years

XML

Asset Retirement Obligations - Information Related to Asset Retirement Obligations (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Asset Retirement Obligation Disclosure [Abstract]
Beginning Balance	$ 215,089
Additions to asset retirement obligations	103
Accretion expense	1,193
Liabilities settled	(1,330)
Ending Balance	$ 215,055

XML

Distribution Restrictions - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Debt Instrument [Line Items]
Balance of permitted transfers to parent company	$ 2,902,529	$ 2,975,593
Description of provisions on senior credit facility transfers to Lamar Advertising not subject to additional restrictions	(i) the total debt ratio is less than 6.5 to 1 and (ii) the secured debt ratio does not exceed 3.5 to 1.
Debt ratio	6.5
Debt ratio related to actual position on senior credit facility	6.5
Available cumulative credit	$ 1,653,009
Secured Debt [Member] | Maximum [Member]
Debt Instrument [Line Items]
Secured debt ratio	3.5
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Secured Debt [Member] | Maximum [Member]
Debt Instrument [Line Items]
Secured debt ratio	3.5

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Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
The number of dilutive shares excluded from calculation of basic earnings per share resulting from the anti-dilutive effect for stock options	0	0

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Long-term Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Debt	$ 2,656,097	$ 2,585,409
Debt, Less current maturities	(28,728)	(22,797)
Debt, excluding current maturities	2,627,369	2,562,612
Deferred financing costs	28,137	28,719
Deferred financing costs, Less current maturities	(4,750)	(5,133)
Deferred financing costs, excluding current maturities	23,387	23,586
Debt, net of deferred financing costs	2,627,960	2,556,690
Debt, net of deferred financing costs, Less current maturities	(23,978)	(17,664)
Debt, net of deferred financing costs, excluding current maturities	2,603,982	2,539,026
Senior Credit Facility [Member]
Debt Instrument [Line Items]
Debt	1,207,384	636,750
Deferred financing costs	13,462	7,689
Debt, net of deferred financing costs	1,193,922	629,061
5 7/8% Senior Subordinated Notes [Member]
Debt Instrument [Line Items]
Debt		500,000
Deferred financing costs		5,850
Debt, net of deferred financing costs		494,150
5% Senior Subordinated Notes [Member]
Debt Instrument [Line Items]
Debt	535,000	535,000
Deferred financing costs	4,725	4,927
Debt, net of deferred financing costs	530,275	530,073
5 3/8% Senior Notes [Member]
Debt Instrument [Line Items]
Debt	510,000	510,000
Deferred financing costs	4,805	4,982
Debt, net of deferred financing costs	505,195	505,018
5 3/4% Senior Notes [Member]
Debt Instrument [Line Items]
Debt	400,000	400,000
Deferred financing costs	5,145	5,271
Debt, net of deferred financing costs	394,855	394,729
Other Notes with Various Rates and Terms [Member]
Debt Instrument [Line Items]
Debt	3,713	3,659
Debt, net of deferred financing costs	$ 3,713	$ 3,659

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Long-term Debt - Long-Term Debt (Parenthetical) (Detail)	Mar. 31, 2018	Dec. 31, 2017	Jan. 28, 2016	Jan. 10, 2014	Oct. 30, 2012	Feb. 09, 2012
5 7/8% Senior Subordinated Notes [Member]
Debt Instrument [Line Items]
Interest rate on senior notes		5.875%				5.875%
5% Senior Subordinated Notes [Member]
Debt Instrument [Line Items]
Interest rate on senior notes	5.00%	5.00%			5.00%
5 3/8% Senior Notes [Member]
Debt Instrument [Line Items]
Interest rate on senior notes	5.375%	5.375%		5.375%
5 3/4% Senior Notes [Member]
Debt Instrument [Line Items]
Interest rate on senior notes	5.75%	5.75%	5.75%

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Long-term Debt - Additional Information (Detail)								3 Months Ended
	Mar. 19, 2018	Mar. 16, 2018 USD ($)	May 15, 2017 USD ($)	Jan. 28, 2016 USD ($)	Jan. 10, 2014 USD ($)	Oct. 30, 2012 USD ($)	Feb. 09, 2012 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017
Debt Instrument [Line Items]
Proceeds received from term A loans								$ 599,250,000
Outstanding revolving credit facility								175,000,000
Remaining borrowing capacity under revolving credit facility								262,050,000
Aggregate principal amount of debt issued								2,656,097,000
Loss on debt extinguishment								15,429,000
5 7/8% Senior Subordinated Notes [Member]
Debt Instrument [Line Items]
Redemption price, percentage of loan	101.958%
Interest rate on convertible notes							5.875%		5.875%
Aggregate principal amount of debt issued							$ 500,000,000
Net proceeds from the issuance of debt							$ 489,000,000
Loss on debt extinguishment								15,429,000
Loss on debt extinguishment on cash								$ 9,790,000
5% Senior Subordinated Notes [Member]
Debt Instrument [Line Items]
Interest rate on convertible notes						5.00%		5.00%	5.00%
Aggregate principal amount of debt issued						$ 535,000,000
Net proceeds from the issuance of debt						$ 527,100,000
Redemption price percentage of the principal amount to be purchased						101.00%
5 3/8% Senior Notes [Member]
Debt Instrument [Line Items]
Interest rate on convertible notes					5.375%			5.375%	5.375%
Aggregate principal amount of debt issued					$ 510,000,000
Net proceeds from the issuance of debt					$ 502,300,000
Redemption price percentage of the principal amount to be purchased					101.00%
5 3/8% Senior Notes [Member] | Prior to January 15, 2019 [Member]
Debt Instrument [Line Items]
Redemption percentage equal to principal amount include aggregate premium					100.00%
5 3/4% Senior Notes [Member]
Debt Instrument [Line Items]
Interest rate on convertible notes				5.75%				5.75%	5.75%
Aggregate principal amount of debt issued				$ 400,000,000
Net proceeds from the issuance of debt				$ 394,500,000
Redemption price percentage of the principal amount to be purchased				101.00%
5 3/4% Senior Notes [Member] | Prior to February 1, 2019 [Member]
Debt Instrument [Line Items]
Redemption price, percentage of loan				105.75%
Redemption percentage of aggregate principal amount of senior notes				35.00%
Redemption percentage of issued notes which remain outstanding				65.00%
5 3/4% Senior Notes [Member] | Prior to February 1, 2021 [Member]
Debt Instrument [Line Items]
Redemption price, percentage of loan				100.00%
Letter of Credit [Member]
Debt Instrument [Line Items]
Letter of credit outstanding balance								$ 12,950,000
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Debt Instrument [Line Items]
Proceeds received from term A loans								599,250,000
Loss on debt extinguishment								$ 15,429,000
Term B Loan Facility [Member]
Debt Instrument [Line Items]
Amended and restated date		Mar. 16, 2018
Maximum borrowing limit of incremental loan facility		$ 600,000,000
Debt instrument maturity date		Mar. 16, 2025
Credit agreement frequency of payment and payment terms		The Term B loan will begin amortizing on June 30, 2018 in equal quarterly installments of $1,500 with the remainder payable at maturity
Quarterly installments, amount		$ 1,500,000
Redemption price, percentage of loan		5.875%
Senior Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing limit of incremental loan facility			$ 450,000,000
Debt instrument maturity date			May 15, 2022
Term A Loan Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing limit of incremental loan facility			$ 450,000,000
Debt instrument maturity date			May 15, 2022
Proceeds received from term A loans			$ 450,000,000
Term A Loan Facility [Member] | LIBO Rate [Member]
Debt Instrument [Line Items]
Adjusted Rate		1.75%
Ratio of indebtedness to net capital one		3.25
Ratio of indebtedness to net capital minimum		1
Term A Loan Facility [Member] | LIBO Rate [Member] | Debt Ratio Less Than Three Point Two Five [Member]
Debt Instrument [Line Items]
Adjusted Rate		1.50%
Term A Loan Facility [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Adjusted Rate		0.75%
Ratio of indebtedness to net capital one		3.25
Ratio of indebtedness to net capital minimum		1
Term A Loan Facility [Member] | Base Rate [Member] | Debt Ratio Less Than Three Point Two Five [Member]
Debt Instrument [Line Items]
Adjusted Rate		0.50%
Term Loans
Debt Instrument [Line Items]
Debt instrument maturity date			May 15, 2022
Revolving Credit Facility | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Debt Instrument [Line Items]
Debt instrument maturity date								May 15, 2022
Revolving Credit Facility | LIBO Rate [Member]
Debt Instrument [Line Items]
Adjusted Rate		2.25%
Ratio of indebtedness to net capital one		4.25
Ratio of indebtedness to net capital minimum		1
Revolving Credit Facility | LIBO Rate [Member] | Debt Ratio Less Than Four Point Two Five [Member]
Debt Instrument [Line Items]
Adjusted Rate		2.00%
Revolving Credit Facility | LIBO Rate [Member] | Debt Ratio Less Than Three Point Zero Zero [Member]
Debt Instrument [Line Items]
Adjusted Rate		1.75%
Ratio of indebtedness to net capital one		3.00
Ratio of indebtedness to net capital minimum		1
Revolving Credit Facility | Base Rate [Member]
Debt Instrument [Line Items]
Adjusted Rate		1.25%
Ratio of indebtedness to net capital one		4.25
Ratio of indebtedness to net capital minimum		1
Revolving Credit Facility | Base Rate [Member] | Debt Ratio Less Than Four Point Two Five [Member]
Debt Instrument [Line Items]
Adjusted Rate		1.00%
Revolving Credit Facility | Base Rate [Member] | Debt Ratio Less Than Three Point Zero Zero [Member]
Debt Instrument [Line Items]
Adjusted Rate		0.75%
Ratio of indebtedness to net capital one		3.00
Ratio of indebtedness to net capital minimum		1

XML

Long-term Debt - Schedule of Maturities of Long Term Debt (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
June 30, 2018-June 30, 2019 [Member] | Term A
Debt Instrument [Line Items]
Principal payment amount	$ 5,625
June 30, 2018-June 30, 2019 [Member] | Term B
Debt Instrument [Line Items]
Principal payment amount	1,500
September 30, 2019-June 30, 2020 [Member] | Term A
Debt Instrument [Line Items]
Principal payment amount	8,438
September 30, 2019-June 30, 2020 [Member] | Term B
Debt Instrument [Line Items]
Principal payment amount	1,500
September 30, 2020-March 31, 2022 [Member] | Term A
Debt Instrument [Line Items]
Principal payment amount	16,875
September 30, 2020-March 31, 2022 [Member] | Term B
Debt Instrument [Line Items]
Principal payment amount	1,500
Term A Loan Maturity Date [Member] | Term A
Debt Instrument [Line Items]
Principal payment amount	253,125
June 30, 2022-December 31, 2024 [Member] | Term B
Debt Instrument [Line Items]
Principal payment amount	1,500
Term B Loan Maturity Date [Member] | Term B
Debt Instrument [Line Items]
Principal payment amount	$ 559,500

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Long-term Debt - Schedule of Maturities of Long Term Debt (Parenthetical) (Detail)	3 Months Ended
	Mar. 31, 2018
June 30, 2018-June 30, 2019 [Member]
Debt Instrument [Line Items]
Principal payment date	June 30, 2018-June 30, 2019
September 30, 2019-June 30, 2020 [Member]
Debt Instrument [Line Items]
Principal payment date	September 30, 2019-June 30, 2020
September 30, 2020-March 31, 2022 [Member]
Debt Instrument [Line Items]
Principal payment date	September 30, 2020-March 31, 2022
June 30, 2022-December 31, 2024 [Member]
Debt Instrument [Line Items]
Principal payment date	June 30, 2022-December 31, 2024

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Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Estimated fair value of Long-term debt (including current maturities)	$ 2,689,914
Gross amount of company's long term debt	2,656,097
Carrying amount of company's long term debt	$ 2,656,097	$ 2,585,409

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Dividends/Distributions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		12 Months Ended
	Feb. 22, 2018	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Dividends [Line Items]
Distributions paid, preferred stockholders		$ 182	$ 91
Distributions paid, preferred stockholders, per share		$ 31.90	$ 15.95
Distributions declared date	Feb. 22, 2018
Dividends declared	$ 89,542			$ 81,534
Dividends declared, per share	$ 0.91	$ 0.91	$ 0.83	$ 0.83
Taxable Income Distribution [Member]
Dividends [Line Items]
Distributions paid		$ 171,076	$ 81,188
Distributions paid, per share		$ 1.74	$ 0.83

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Information about Geographic Areas - Additional Information (Detail) - Foreign Countries [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Net carrying value of long lived assets	$ 3,142		$ 3,571
External Customers [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from external customers	$ 7,525	$ 6,893

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Divestiture of Assets - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended
	Mar. 31, 2018	Mar. 31, 2018	Mar. 31, 2017
Divestiture Of Assets [Line Items]
Loss on disposition of assets		$ (8,701)	$ 1,036
Puerto Rico [Member]
Divestiture Of Assets [Line Items]
Fair value of disposal group recorded within other assets	$ 12,500	$ 12,500
Loss on disposition of assets	$ 8,666

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Subsequent Events - Additional Information (Detail) - Common Class A [Member] - USD ($)	May 01, 2018	Mar. 31, 2018	Dec. 31, 2017
Subsequent Event [Line Items]
Common stock, par value		$ 0.001	$ 0.001
Subsequent Events [Member]
Subsequent Event [Line Items]
Common stock, par value	$ 0.001
Maximum [Member] | Subsequent Events [Member]
Subsequent Event [Line Items]
Aggregate offering price of common stock issuable	$ 400,000

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Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
ASSETS
Total current assets	$ 355,999	$ 420,519
Net property, plant and equipment	1,192,900	1,214,138
Other assets	57,856	42,886
Total assets	4,114,527	4,214,345
Current liabilities:
Current maturities of long-term debt	23,978	17,664
Total current liabilities	223,591	325,994
Long-term debt, net of deferred financing costs	2,603,982	2,539,026
Total liabilities	3,074,328	3,110,852
Stockholders’ equity	1,040,199	1,103,493
Total liabilities and stockholders’ equity	4,114,527	4,214,345
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
ASSETS
Total current assets	355,499	420,019
Net property, plant and equipment	1,192,900	1,214,138
Intangibles and goodwill, net	2,497,152	2,526,182
Other assets	52,572	37,603
Total assets	4,098,123	4,197,942
Current liabilities:
Current maturities of long-term debt	23,978	17,664
Other current liabilities	195,408	304,322
Total current liabilities	219,386	321,986
Long-term debt, net of deferred financing costs	2,603,982	2,539,026
Other noncurrent liabilities	246,755	245,832
Total liabilities	3,070,123	3,106,844
Stockholders’ equity	1,028,000	1,091,098
Total liabilities and stockholders’ equity	4,098,123	4,197,942
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Reportable Legal Entities [Member] | Lamar Media [Member]
ASSETS
Total current assets	4,138	87,167
Other assets	3,701,355	3,707,352
Total assets	3,705,493	3,794,519
Current liabilities:
Current maturities of long-term debt	23,944	17,664
Other current liabilities	21,704	120,500
Total current liabilities	45,648	138,164
Long-term debt, net of deferred financing costs	2,603,889	2,539,026
Other noncurrent liabilities	27,956	26,231
Total liabilities	2,677,493	2,703,421
Stockholders’ equity	1,028,000	1,091,098
Total liabilities and stockholders’ equity	3,705,493	3,794,519
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member]
ASSETS
Total current assets	333,488	293,536
Net property, plant and equipment	1,187,143	1,193,705
Intangibles and goodwill, net	2,476,624	2,495,370
Other assets	11,203	10,571
Total assets	4,008,458	3,993,182
Current liabilities:
Current maturities of long-term debt	34
Other current liabilities	157,552	164,393
Total current liabilities	157,586	164,393
Long-term debt, net of deferred financing costs	93
Other noncurrent liabilities	217,431	218,900
Total liabilities	375,110	383,293
Stockholders’ equity	3,633,348	3,609,889
Total liabilities and stockholders’ equity	4,008,458	3,993,182
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member]
ASSETS
Total current assets	17,873	39,316
Net property, plant and equipment	5,757	20,433
Intangibles and goodwill, net	20,528	30,812
Other assets	13,376	7
Total assets	57,534	90,568
Current liabilities:
Other current liabilities	16,152	19,429
Total current liabilities	16,152	19,429
Other noncurrent liabilities	43,864	61,587
Total liabilities	60,016	81,016
Stockholders’ equity	(2,482)	9,552
Total liabilities and stockholders’ equity	57,534	90,568
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Eliminations [Member]
ASSETS
Other assets	(3,673,362)	(3,680,327)
Total assets	(3,673,362)	(3,680,327)
Current liabilities:
Other noncurrent liabilities	(42,496)	(60,886)
Total liabilities	(42,496)	(60,886)
Stockholders’ equity	(3,630,866)	(3,619,441)
Total liabilities and stockholders’ equity	$ (3,673,362)	$ (3,680,327)

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Condensed Consolidating Statements of Income and Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net revenues	$ 361,026	$ 346,362
Operating expenses
Direct advertising expenses	138,293	131,844
General and administrative expenses	70,208	72,031
Corporate expenses	21,104	16,633
Depreciation and amortization	56,840	51,425
Loss (gain) on disposition of assets	8,701	(1,036)
Total Operating Expenses	295,146	270,897
Operating Income (Loss)	65,880	75,465
Loss on debt extinguishment	(15,429)
Income before income tax expense	16,896	43,986
Income tax expense	1,844	2,199
Net Income (Loss)	15,052	41,787
Statements of Comprehensive Income
Net Income (Loss)	15,052	41,787
Other Comprehensive Income (Loss)	14,509	41,930
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Net revenues	361,026	346,362
Operating expenses
Direct advertising expenses	138,293	131,844
General and administrative expenses	70,208	72,031
Corporate expenses	20,998	16,527
Depreciation and amortization	56,840	51,425
Loss (gain) on disposition of assets	8,701	(1,036)
Total Operating Expenses	295,040	270,791
Operating Income (Loss)	65,986	75,571
Interest expense (income), net	33,555	31,479
Loss on debt extinguishment	(15,429)
Income before income tax expense	17,002	44,092
Income tax expense	1,844	2,199
Net Income (Loss)	15,158	41,893
Statements of Comprehensive Income
Net Income (Loss)	15,158	41,893
Total other comprehensive income, net of tax	(543)	143
Other Comprehensive Income (Loss)	14,615	42,036
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Reportable Legal Entities [Member] | Lamar Media [Member]
Operating expenses
Equity in (earnings) loss of subsidiaries	(64,165)	(73,374)
Interest expense (income), net	33,578	31,481
Loss on debt extinguishment	(15,429)
Income before income tax expense	15,158	41,893
Net Income (Loss)	15,158	41,893
Statements of Comprehensive Income
Net Income (Loss)	15,158	41,893
Other Comprehensive Income (Loss)	15,158	41,893
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member]
Net revenues	349,862	335,803
Operating expenses
Direct advertising expenses	131,124	125,104
General and administrative expenses	67,561	70,012
Corporate expenses	20,605	16,257
Depreciation and amortization	54,349	49,248
Loss (gain) on disposition of assets	35	(1,037)
Total Operating Expenses	273,674	259,584
Operating Income (Loss)	76,188	76,219
Interest expense (income), net	(2)	(3)
Income before income tax expense	76,190	76,222
Income tax expense	712	1,723
Net Income (Loss)	75,478	74,499
Statements of Comprehensive Income
Net Income (Loss)	75,478	74,499
Other Comprehensive Income (Loss)	75,478	74,499
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member]
Net revenues	12,102	11,474
Operating expenses
Direct advertising expenses	7,750	7,287
General and administrative expenses	2,647	2,019
Corporate expenses	393	270
Depreciation and amortization	2,491	2,177
Loss (gain) on disposition of assets	8,666	1
Total Operating Expenses	21,947	11,754
Operating Income (Loss)	(9,845)	(280)
Interest expense (income), net	336	369
Income before income tax expense	(10,181)	(649)
Income tax expense	1,132	476
Net Income (Loss)	(11,313)	(1,125)
Statements of Comprehensive Income
Net Income (Loss)	(11,313)	(1,125)
Total other comprehensive income, net of tax	(543)	143
Other Comprehensive Income (Loss)	(11,856)	(982)
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Eliminations [Member]
Net revenues	(938)	(915)
Operating expenses
Direct advertising expenses	(581)	(547)
Total Operating Expenses	(581)	(547)
Operating Income (Loss)	(357)	(368)
Equity in (earnings) loss of subsidiaries	64,165	73,374
Interest expense (income), net	(357)	(368)
Income before income tax expense	(64,165)	(73,374)
Net Income (Loss)	(64,165)	(73,374)
Statements of Comprehensive Income
Net Income (Loss)	(64,165)	(73,374)
Other Comprehensive Income (Loss)	$ (64,165)	$ (73,374)

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Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$ 40,772	$ 34,496
Cash flows from investing activities:
Acquisitions	(6,637)	(17,779)
Capital expenditures	(23,252)	(19,236)
Proceeds from disposition of assets and investments	244	1,592
Proceeds received from insurance claims	790
Decrease (increase) in notes receivable	2	4
Net cash used in investing activities	(28,853)	(35,419)
Cash flows from financing activities:
Proceeds received from revolving credit facility	112,000	134,000
Payment on revolving credit facility	(135,000)	(54,000)
Principal payments on long-term debt	(5,703)	(5,625)
Redemption of senior subordinated notes	(509,790)
Proceeds received from senior credit facility Term B loan	599,250
Debt issuance costs	(6,290)
Distributions to non-controlling interest	(118)	(205)
Net cash used in financing activities	(117,047)	(3,172)
Effect of exchange rate changes in cash and cash equivalents	(297)	187
Net decrease in cash and cash equivalents	(105,425)	(3,908)
Cash and cash equivalents at beginning of period	115,471	35,530
Cash and cash equivalents at end of period	10,046	31,622
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Cash flows from operating activities:
Net cash provided by (used in) operating activities	28,623	14,793
Cash flows from investing activities:
Acquisitions	(6,637)	(17,779)
Capital expenditures	(23,252)	(19,236)
Proceeds from disposition of assets and investments	244	1,592
Proceeds received from insurance claims	790
Decrease (increase) in notes receivable	2	4
Net cash used in investing activities	(28,853)	(35,419)
Cash flows from financing activities:
Proceeds received from revolving credit facility	112,000	134,000
Payment on revolving credit facility	(135,000)	(54,000)
Principal payments on long-term debt	(5,703)	(5,625)
Redemption of senior subordinated notes	(509,790)
Proceeds received from senior credit facility Term B loan	599,250
Debt issuance costs	(6,290)
Distributions to non-controlling interest	(118)	(205)
Dividends (to) from parent	(175,188)	(90,185)
Contributions from (to) parent	15,941	32,546
Net cash used in financing activities	(104,898)	16,531
Effect of exchange rate changes in cash and cash equivalents	(297)	187
Net decrease in cash and cash equivalents	(105,425)	(3,908)
Cash and cash equivalents at beginning of period	114,971	35,030
Cash and cash equivalents at end of period	9,546	31,122
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Reportable Legal Entities [Member] | Lamar Media [Member]
Cash flows from operating activities:
Net cash provided by (used in) operating activities	9,747	922
Cash flows from investing activities:
Investment in subsidiaries	(6,637)	(17,779)
Decrease (increase) in intercompany notes receivable	18,633	(3,194)
Decrease (increase) in notes receivable	3	4
Net cash used in investing activities	11,999	(20,969)
Cash flows from financing activities:
Proceeds received from revolving credit facility	112,000	134,000
Payment on revolving credit facility	(135,000)	(54,000)
Principal payments on long-term debt	(5,697)	(5,625)
Redemption of senior subordinated notes	(509,790)
Proceeds received from senior credit facility Term B loan	599,250
Debt issuance costs	(6,290)
Dividends (to) from parent	(175,188)	(90,185)
Contributions from (to) parent	15,941	32,546
Net cash used in financing activities	(104,774)	16,736
Net decrease in cash and cash equivalents	(83,028)	(3,311)
Cash and cash equivalents at beginning of period	86,546	12,762
Cash and cash equivalents at end of period	3,518	9,451
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net cash provided by (used in) operating activities	79,785	59,675
Cash flows from investing activities:
Acquisitions	(6,637)	(17,779)
Capital expenditures	(21,939)	(17,079)
Proceeds from disposition of assets and investments	244	1,592
Decrease (increase) in notes receivable	(1)
Net cash used in investing activities	(28,333)	(33,266)
Cash flows from financing activities:
Principal payments on long-term debt	(6)
Dividends (to) from parent	(58,656)	(44,453)
Contributions from (to) parent	6,637	17,779
Net cash used in financing activities	(52,025)	(26,674)
Net decrease in cash and cash equivalents	(573)	(265)
Cash and cash equivalents at beginning of period	1,625	1,201
Cash and cash equivalents at end of period	1,052	936
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net cash provided by (used in) operating activities	(2,253)	(1,351)
Cash flows from investing activities:
Capital expenditures	(1,313)	(2,157)
Proceeds received from insurance claims	790
Net cash used in investing activities	(523)	(2,157)
Cash flows from financing activities:
Intercompany loan (payable) proceeds	(18,633)	3,194
Distributions to non-controlling interest	(118)	(205)
Net cash used in financing activities	(18,751)	2,989
Effect of exchange rate changes in cash and cash equivalents	(297)	187
Net decrease in cash and cash equivalents	(21,824)	(332)
Cash and cash equivalents at beginning of period	26,800	21,067
Cash and cash equivalents at end of period	4,976	20,735
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Eliminations [Member]
Cash flows from operating activities:
Net cash provided by (used in) operating activities	(58,656)	(44,453)
Cash flows from investing activities:
Investment in subsidiaries	6,637	17,779
Decrease (increase) in intercompany notes receivable	(18,633)	3,194
Net cash used in investing activities	(11,996)	20,973
Cash flows from financing activities:
Intercompany loan (payable) proceeds	18,633	(3,194)
Dividends (to) from parent	58,656	44,453
Contributions from (to) parent	(6,637)	(17,779)
Net cash used in financing activities	$ 70,652	$ 23,480