What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2023-02-24 compared with 2022-02-25 · 45 added, 48 removed, 281 unchanged (25% of the section changed)

15 unchanged sentences

We are the largest provider of logo signs in the United States, operating 23 of the 26 privatized state logo sign contracts.

As of December 31, 2021, we operated over 137,800 logo sign advertising displays in 23 states and the province of Ontario, Canada.

As of December 31, 2022, we operated approximately 139,000 logo sign advertising displays in 23 states and the province of Ontario, Canada.

Transit advertising displays.

4 unchanged sentences

During 2014, we completed a reorganization in order to qualify as a real estate investment trust (a “REIT”) for federal income tax purposes.

During 2022, the Company completed a tax reorganization to a specific type of REIT known as an Umbrella Partnership Real Estate Investment Trust ("UPREIT").

The UPREIT structure allows property owners of appreciated properties to contribute property to the operating partnership of the REIT, on a tax-deferred basis, in exchange for a partnership interest in the form of operating partnership units.

In this Annual Report, unless the context otherwise requires, we refer to Lamar Advertising Company and its consolidated subsidiaries (and its predecessor and its consolidated subsidiaries), as applicable, as the “Company”, “Lamar Advertising” or “we”, and we refer to Lamar Advertising’s wholly owned subsidiary Lamar Media Corp.

16 unchanged sentences

In addition, we routinely invest in upgrading our existing displays and constructing new displays.

Since January 1, 2012, we have invested approximately $1.1 billion in capitalized expenditures, which include improvements to our existing real estate portfolio and the construction of new locations.

Since January 1, 2013, we have invested approximately $1.2 billion in capitalized expenditures, which include improvements to our existing real estate portfolio, improvements to recently acquired locations and the construction of new locations.

Our regular improvement and expansion of our advertising display inventory allows us to provide high quality service to our current tenants and to attract new tenants.

3 unchanged sentences

Furthermore, we plan to pursue additional tourist oriented directional sign programs in both the United States and Canada and also other motorist information signing programs as opportunities present themselves.

In addition, in an effort to maintain market share, we continue to pursue attractive transit advertising opportunities as they become available.

In addition, in an effort to maintain market share, we continue to pursue attractive transit and airport advertising opportunities as they become available.

Reinvesting in capital expenditures including digital technology.

6 unchanged sentences

After complying with our REIT distribution requirements, we plan to continue to allocate our available capital among investment alternatives that meet our return on investment criteria.

During 2021, we generated $734.4 million of cash from operating activities, which was used to fund capital expenditures, acquisitions, dividends to our stockholders, and a portion of the expenses incurred in connection with financing transactions.

During 2022, we generated $781.6 million of cash from operating activities, which was used to fund capital expenditures, acquisitions, and dividends to our stockholders.

• Capital expenditures program.

We will continue to reinvest in our existing assets and expand our outdoor advertising display portfolio through new construction.

This includes growth and maintenance capital expenditures associated with the construction of new and existing billboard displays, the entrance into and renewal of logo sign and transit contracts, and the purchase of real estate and operating equipment.

This includes growth and maintenance capital expenditures associated with the construction of new and existing billboard displays, the entrance into and renewal of logo sign and transit contracts, technology-related investments and the purchase of real estate and operating equipment.

• Acquisitions.

29 unchanged sentences

They display completely digital advertising copy from various advertisers in a slide show fashion, rotating each advertisement approximately every 6 to 8 seconds.

At December 31, 2021, our inventory included over 3,900 digital display billboards in various markets.

At December 31, 2022, our inventory included approximately 4,500 digital display billboards in various markets.

These 4,500 digital billboards generated approximately 30% of billboard advertising net revenue.

13 unchanged sentences

We erect logo signs, which generally advertise nearby gas, food, camping, lodging and other attractions, and directional signs, which direct vehicle traffic to nearby services and tourist attractions, near highway exits.

As of December 31, 2021, we operated approximately 42,100 logo sign structures containing over 137,800 logo advertising displays in the United States and Canada.

As of December 31, 2022, we operated approximately 42,400 logo sign structures containing approximately 139,000 logo advertising displays in the United States and Canada.

We operate the logo sign contracts in the province of Ontario, Canada and in the following states:

Colorado Georgia Louisiana Mississippi Nebraska New Jersey South Carolina

Delaware Kansas Michigan Missouri (1)

Nevada New Mexico Tennessee

Florida Kentucky Minnesota Montana New Hampshire Ohio Utah

Oklahoma Wisconsin

Colorado Kansas Minnesota Montana New Hampshire Ohio Tennessee

Delaware Kentucky Mississippi Nebraska New Jersey Oklahoma Utah

Florida Louisiana Missouri (1)

Nevada New Mexico South Carolina Wisconsin

Georgia Michigan

(1) The logo sign contract in Missouri is operated by a 66 2/3% owned partnership.

10 unchanged sentences

Depending on the contract, we may or may not be entitled to compensation at that time.

Of our 24 logo sign contracts in place, in the United States and Canada, at December 31, 2021, five are subject to renewal or expiration in 2022.

Of our 24 logo sign contracts in place, in the United States and Canada, at December 31, 2022, 4 are subject to renewal or expiration in 2023.

States usually award new logo sign contracts and renew expiring logo sign contracts through an open proposal process.

7 unchanged sentences

We rent transit advertising displays in airport terminals and on bus shelters, benches and buses in over 80 transit markets, and our production staff provides a full range of creative and installation services to our transit advertising tenants.

As of December 31, 2021, we operated over 46,600 transit advertising displays in 23 states and Canada.

As of December 31, 2022, we operated approximately 47,500 transit advertising displays in 24 states and Canada.

Municipalities usually award new transit advertising contracts and renew expiring transit advertising contracts through an open bidding process.

6 unchanged sentences

Although we primarily focus on small to mid-size markets where we can attain a strong market share, in each of our markets we compete against other providers of outdoor advertising and other types of media, including:

• Larger outdoor advertising providers, such as (i) Clear Channel Outdoor Holdings, Inc., which operates billboards, street furniture displays, transit displays and other out-of-home advertising displays and (ii) Outfront Media, Inc.

(formerly CBS Outdoor), which operates traditional outdoor, street furniture and transit advertising properties.

• Broadcast and cable television, radio, print media, direct mail marketing, the internet, social media and applications used in conjunction with wireless devices.

22 unchanged sentences

Displays Percentage

Las Vegas, NV 1.7 % 2.2 % 17.6 % — 2.8 % 748 83 1,504 — 2,335 0.6 %

New York, NY 2.6 % 2.5 % — — 2.3 % 917 70 — — 987 0.3 %

Chicago, IL 2.0 % 2.7 % — — 1.9 % 2,094 156 — — 2,250 0.6 %

Pittsburgh, PA 1.9 % 2.5 % 0.5 % — 1.9 % 2,884 62 339 — 3,285 0.9 %

Las Vegas, NV 1.5 % 2.0 % 7.6 % — 1.9 % 786 77 1,504 — 2,367 0.7 %

Seattle, WA 2.1 % 1.1 % 2.5 % — 1.7 % 1,621 19 2,012 — 3,652 1.0 %

Gary, IN 1.7 % 2.4 % — — 1.7 % 2,118 143 — — 2,261 0.6 %

Cleveland, OH 1.7 % 1.9 % 1.8 % — 1.7 % 2,275 58 2,528 — 4,861 1.3 %

San Bernardino, CA 1.5 % 2.2 % 1.8 % — 1.6 % 643 50 1,102 — 1,795 0.5 %

Nashville, TN 1.6 % 2.3 % — — 1.6 % 2,131 83 — — 2,214 0.6 %

San Bernardino, CA 1.4 % 2.2 % 1.3 % — 1.6 % 638 51 1,145 — 1,834 0.5 %

Seattle, WA 1.9 % 0.8 % 2.0 % — 1.5 % 1,600 19 1,745 — 3,364 0.9 %

Dallas, TX 1.8 % 1.0 % 1.7 % — 1.5 % 1,307 27 459 — 1,793 0.5 %

Atlanta, GA 1.1 % 2.7 % — — 1.4 % 772 87 — — 859 0.2 %

Knoxville, TN 1.7 % 0.9 % — — 1.3 % 2,407 60 — — 2,467 0.7 %

Phoenix, AZ 0.3 % 2.5 % 6.6 % — 1.3 % 146 56 4,062 — 4,264 1.2 %

Indianapolis, IN 1.4 % 1.0 % 1.3 % — 1.2 % 2,555 32 123 — 2,710 0.8 %

Reading, PA 1.1 % 1.9 % — — 1.2 % 1,373 107 — — 1,480 0.4 %

Raleigh, NC 1.5 % 0.8 % — — 1.1 % 2,564 45 — — 2,609 0.7 %

Atlanta, GA 1.1 % 2.4 % — — 1.3 % 765 75 — — 840 0.2 %

Richmond, VA 1.1 % 1.7 % — — 1.1 % 1,267 47 — — 1,314 0.4 %

Reading, PA 1.1 % 2.2 % — — 1.3 % 1,220 103 — — 1,323 0.4 %

Oklahoma City, OK 1.3 % 1.2 % — — 1.2 % 2,094 37 — — 2,131 0.6 %

Hartford, CT 1.0 % 2.0 % — — 1.2 % 849 49 38 — 936 0.3 %

Phoenix, AZ 0.3 % 2.4 % 7.1 % — 1.2 % 146 48 3,018 — 3,212 0.9 %

Greenville-Spartanburg, SC 1.2 % 1.2 % — — 1.1 % 1,854 51 — — 1,905 0.5 %

Indianapolis, IN 1.3 % 1.0 % — — 1.1 % 2,227 22 — — 2,249 0.6 %

Hartford, CT 1.0 % 1.8 % — — 1.1 % 839 50 — — 889 0.2 %

Birmingham, AL 1.1 % 1.3 % 0.5 % — 1.1 % 1,507 47 273 — 1,827 0.5 %

Baton Rouge, LA 1.1 % 1.1 % — — 1.0 % 1,399 42 — — 1,441 0.4 %

Austin, TX 1.4 % 0.3 % — — 1.0 % 914 7 — — 921 0.3 %

Providence, RI 1.0 % 1.6 % — — 1.0 % 534 31 — — 565 0.2 %

Oklahoma City, OK 1.2 % 1.1 % — — 1.1 % 2,053 39 — — 2,092 0.6 %

Denver, CO 0.7 % 0.5 % 5.9 % — 1.0 % 215 10 3,374 — 3,599 1.0 %

Cincinnati, OH 0.9 % 1.5 % — — 1.0 % 1,135 39 — — 1,174 0.3 %

Providence, RI 0.9 % 1.5 % — — 1.0 % 533 32 — — 565 0.2 %

Austin, TX 1.4 % 0.4 % — — 1.0 % 895 9 — — 904 0.3 %

All US Logo Programs* — — — 92.3 % 3.6 % — — — 144,623 144,623 39.8 %

25 unchanged sentences

Automotive 5 %

Insurance 5 %

Amusement — Entertainment/Sports 4 %

1 unchanged sentence

Education 4 %

Insurance 3 %

Real Estate 3 %

15 unchanged sentences

Although we have generally been able to obtain satisfactory compensation for those of our billboards purchased or removed as a result of governmental action, there is no assurance that this will continue to be the case in the future.

We have also introduced and intend to continue to expand the deployment of digital billboards that display static digital advertising copy from various advertisers that change every 6 to 8 seconds.

We have continued to expand the deployment of digital billboards, which display static digital advertising copy from various advertisers that change every 6 to 8 seconds.

We have encountered some existing regulations that restrict or prohibit these types of digital displays, but it has not yet materially impacted our digital deployment.

Since digital billboards have been developed and introduced relatively recently into the market on a large scale, existing regulations that currently do not apply to them by their terms could be revised or new regulations could be enacted to impose greater restrictions.

These regulations may impose greater restrictions on digital billboards due to alleged concerns over aesthetics or driver safety.

Relatively few large scale studies have been conducted to date regarding driver safety issues, if any, related to digital billboards.

The results of future studies may result in regulations at the federal or state level that impose greater restrictions on digital billboards.

However, new regulations could be enacted to impose greater restrictions on digital billboards due to alleged concerns over aesthetics or driver safety.

The findings of future studies related to the impact of digital billboards on driver safety issues, if any, may result in regulations at the federal or state level that impose greater restrictions on digital billboards.

Any new restrictions on digital billboards could have a material adverse effect on both our existing inventory of digital billboards and our plans to expand our digital deployment, which could have a material adverse effect on our business, results of operations and financial condition.

7 unchanged sentences

In addition, we lease an additional 149 operating facilities at an aggregate lease expense for 2022 of approximately $9.2 million.

We own over 9,800 parcels of property beneath our advertising displays.

As of December 31, 2021, we leased over 69,900 outdoor sites, accounting for an annualized lease expense of approximately $291.8 million.

We own approximately 10,500 parcels of property beneath our advertising displays.

As of December 31, 2022, we leased approximately 72,500 outdoor sites, accounting for an annualized lease expense of approximately $319.3 million.

This amount represented approximately 18% of billboard advertising net revenues for that period.

12 unchanged sentences

North Carolina 3,897 5.4 % 279 2.7 %

Georgia 3,365 4.6 % 309 2.9 %

Indiana 3,122 4.3 % 627 6.0 %

Alabama 3,112 4.3 % 513 4.9 %

Tennessee 2,994 4.1 % 471 4.5 %

Louisiana 2,978 4.1 % 534 5.1 %

Alabama 2,944 4.2 % 501 5.1 %

Georgia 2,600 3.7 % 262 2.7 %

Wisconsin 2,572 3.5 % 341 3.3 %

3 unchanged sentences

Missouri 2,046 2.8 % 297 2.8 %

Indiana 1,932 2.8 % 311 3.2 %

Michigan 1,931 2.7 % 285 2.7 %

26 unchanged sentences

As such, we are committed to cultivating a culture where all employees see the opportunity to show up to work as their most authentic selves.

As of December 31, 2021, approximately 36% of our work force was female and 16% of our employees identified themselves as minorities, while 33% of our Board of Directors was female and one of our nine directors was a member of a minority group.

As of December 31, 2022, approximately 36% of our work force was female, 17% of our employees and 33% of our named executive offices identified themselves as minorities, while 33% of our Board of Directors was female and one of our nine directors was a member of a minority group.

We have established several initiatives aimed at further diversifying our work force, including establishing an alliance with a hiring network that helps bring us a more diverse pool of candidates and creating an internal women’s leadership network that provides our female leaders with tools and a supportive community to help them develop into senior-level managers.

Our Executive Vice President of Human Resources, who also serves as our Chief Diversity Officer, is charged with providing training that reinforces our commitment to treat all of our employees with dignity and respect.

Health and wellness.

Due to the continuing effects of the ongoing COVID-19 pandemic, we have maintained a number of health and safety precautions for our employees.

These precautions include maintaining proper social distancing, mask requirements due to possible exposure, additional office cleaning and contact tracing in the event of a positive COVID-19 case.

We also monitor updates from the Centers for Disease Control and Prevention and state and local government guidelines to ensure our health and safety precautions stay up to date.

In the last three years, inflation has not had a significant impact on our business.

While we have recently seen and expect continued wage pressure and increased costs for capital expenditures, we cannot determine the exact impact inflation will have on our business.

However, we believe any increases in costs will be mitigated by increases in advertising rates on our advertising displays.

During 2020 and 2021 inflation did not have a significant impact on our business.

During 2022, as a result of the inflationary environment in the U.S., we experienced increases in our direct and general and administrative costs, including increases in labor costs and utilities.

Increases in expenses were largely offset by increases in our advertising rates.

We also experienced increased interest expenses related to rising interest rates.

We expect the inflationary environment and these pressures to continue into 2023.

Our revenues and operating results are subject to seasonality.

6 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business