Boston, MA 08/07/2014 (wallstreetpr) – Outdoor advertising company, Lamar Advertising Co (NASDAQ:LAMR) disclosed that it could witness volatility in its transition to revenue generation during the second quarter. The company had also provided pro-forma revenue outlook for the third quarter while announcing the financial results for the second quarter.
Transition Phase
Lamar Advertising Co (NASDAQ:LAMR)’s CEO Sean Reilly disclosed that its transition to daily revenue recognition from a monthly basis was creating some volatility in its reported revenue results for the second quarter. However, he added that the difference between the recognition of revenue on a daily basis and monthly basis was irrelevant when it came to annual revenue.
The CEO said that its local sales advanced in the second quarter amidst overall sluggish ad environment, and it could show an impressive control over the expenses. He indicated that Lamar Advertising Co (NASDAQ:LAMR) was encouraged by its growth and continues to move towards the higher end of its AFFO guidance.
Outlook
Lamar Advertising had guided adjusted net revenue in the range of $330 – $334 million for the third quarter. Lamar Advertising Co (NASDAQ:LAMR) indicated that on a pro forma basis, it represented 1.5% – 2.5% uptick. It would also continue its practice of providing adjusted net revenue outlook based on monthly revenue recognition for the current year 2014.
2Q Results
Lamar Advertising Co (NASDAQ:LAMR) had reported net income of $15.33 million, down from $23.03 million and the earnings dropped to 16 cents a share from 24 cents a share in the same quarter last year. Its funds from operations also dipped 9.8% to $82 million from $90.9 million in the year-ago quarter. However, its adjusted funds flow from operations or AFFO rose modestly to $102.9 million from $99.7 million and AFFO per share advanced to $1.08 from $1.05 in the 2013-second quarter.
Lamar Advertising’s adjusted net revenue grew 2.1% to $334.9 million during the second quarter, which was slightly above its guidance of $331 – $334 million. Net revenues were $330.43 million compared to $327.74 million in the previous year quarter.
