What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-02-20 compared with 2024-02-23 · 26 added, 25 removed, 303 unchanged (14% of the section changed)

Lamar Advertising Company is one of the largest outdoor advertising companies in the United States based on number of displays and has operated under the Lamar name since 1902.

We operate in a single operating and reporting segment, advertising.

We manage our business through three operating segments – billboard, logo and transit advertising.

We rent space for advertising on billboards, buses, shelters, benches, logo plates and in airport terminals.

12 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, 2023, we operated approximately 139,250 logo sign advertising displays in 23 states and the province of Ontario, Canada.

As of December 31, 2024, we operated over 138,200 logo sign advertising displays in 23 states and the province of Ontario, Canada.

Transit advertising displays.

38 unchanged sentences

Through these programmatic partners, advertisers can buy advertising space across multiple channels, allowing them to complement their existing campaigns by leasing our digital out-of-home offerings.

While the programmatic out-of-home channel is relatively new and a small portion of our existing business, we believe it represents a growth area for our industry and our business.

While the programmatic out-of-home channel is 2% of our existing outdoor business and relatively new, we believe it represents a growth area for our industry and our business.

CAPITAL ALLOCATION STRATEGY

2 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 2023, we generated $783.6 million of cash from operating activities, which was used to fund capital expenditures, acquisitions, and dividends to our stockholders.

During 2024, we generated $873.6 million of cash from operating activities, which was used to repay a portion of our long-term debt outstanding, as well as 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, technology-related investments and the purchase of real estate and operating equipment.

This includes growth, maintenance and other non-recurring 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.

8 unchanged sentences

In 2024, we derived approximately 76% of our billboard advertising net revenues from bulletin rentals and 24% from poster rentals.

Bulletins are large advertising structures (the most common size is 14 feet high by 48 feet wide, or 672 square feet) consisting of panels on which advertising copy is displayed.

Bulletins are large advertising structures consisting of panels (the most common size is 14 feet high by 48 feet wide, or 672 square feet) on which advertising copy is displayed.

We wrap advertising copy printed with computer-generated graphics on a single sheet of vinyl around the structure.

4 unchanged sentences

We also rent bulletins as part of a rotary plan under which we rotate the advertising copy from one bulletin location to another within a particular market at stated intervals (usually every sixty to ninety days) to achieve greater reach within that market.

Posters are smaller advertising structures (the most common size is 11 feet high by 23 feet wide, or 253 square feet;

Posters are smaller advertising structures (the most common panel size is 11 feet high by 23 feet wide, or 253 square feet;

we also operate junior posters, which are 5 feet high by 11 feet wide, or 55 square feet).

28 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, 2023, we operated approximately 42,200 logo sign structures containing approximately 139,250 logo advertising displays in the United States and Canada.

As of December 31, 2024, we operated approximately 41,700 logo sign structures containing over 138,200 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:

16 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, 2023, 4 are subject to renewal or expiration in 2024.

Of our 24 logo sign contracts in place, in the United States and Canada, at December 31, 2024, four are subject to renewal or expiration in 2025.

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

17 unchanged sentences

• 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., 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.

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

• An increasing variety of out-of-home advertising media, such as advertising displays in shopping centers, malls, airports, stadiums, movie theaters, supermarkets and advertising displays on taxis, trains and buses.

25 unchanged sentences

Pittsburgh, PA 1.9 % 2.0 % 0.4 % — 1.7 % 2,853 68 327 — 3,248 0.9 %

Cleveland, OH 1.6 % 1.7 % 1.6 % — 1.6 % 2,250 58 2,535 — 4,843 1.3 %

Nashville, TN 1.5 % 2.0 % — — 1.5 % 2,089 93 — — 2,182 0.6 %

1 unchanged sentence

Dallas, TX 1.7 % 1.0 % 1.8 % — 1.4 % 1,253 32 459 — 1,744 0.5 %

Cleveland, OH 1.6 % 1.6 % — — 1.4 % 2,223 57 — — 2,280 0.6 %

Phoenix, AZ 0.3 % 2.4 % 7.4 % — 1.4 % 148 73 4,242 — 4,463 1.2 %

Atlanta, GA 1.1 % 2.6 % — — 1.4 % 830 92 — — 922 0.3 %

Knoxville, TN 1.8 % 1.0 % — — 1.4 % 2,357 67 — — 2,424 0.7 %

Phoenix, AZ 0.3 % 2.4 % 7.0 % — 1.3 % 149 69 4,048 — 4,266 1.2 %

Birmingham, AL 1.4 % 1.3 % 0.3 % — 1.3 % 2,096 51 273 — 2,420 0.7 %

Seattle, WA 1.6 % 0.7 % 1.5 % — 1.3 % 1,534 19 1,602 — 3,155 0.9 %

Birmingham, AL 1.4 % 1.3 % 0.4 % — 1.2 % 2,080 51 231 — 2,362 0.7 %

Reading, PA 1.2 % 1.8 % — — 1.2 % 1,355 104 — — 1,459 0.4 %

Indianapolis, IN 1.3 % 1.1 % 1.7 % — 1.2 % 2,467 36 123 — 2,626 0.7 %

Raleigh, NC 1.5 % 0.8 % — — 1.1 % 2,521 49 — — 2,570 0.7 %

Oklahoma City, OK 1.2 % 1.3 % 0.3 % — 1.1 % 2,008 43 35 — 2,086 0.6 %

Richmond, VA 1.1 % 1.5 % — — 1.1 % 1,260 51 — — 1,311 0.4 %

Greenville-Spartanburg, SC 1.3 % 1.2 % — — 1.1 % 1,808 51 — — 1,859 0.5 %

Reading, PA 1.1 % 1.6 % — — 1.1 % 1,373 104 — — 1,477 0.4 %

Oklahoma City, OK 1.2 % 1.3 % 0.4 % — 1.1 % 1,970 46 35 — 2,051 0.6 %

Hartford, CT 1.0 % 1.7 % — — 1.1 % 827 53 — — 880 0.2 %

Richmond, VA 1.1 % 1.5 % — — 1.1 % 1,237 53 — — 1,290 0.4 %

Cincinnati, OH 0.9 % 1.8 % — — 1.0 % 1,110 48 — — 1,158 0.3 %

Baton Rouge, LA 1.1 % 1.1 % — — 1.0 % 1,356 56 — — 1,412 0.4 %

Pensacola, FL 1.0 % 1.2 % — — 1.0 % 2,239 85 — — 2,324 0.6 %

All US Logo Programs* — — — 92.7 % 3.5 % — — — 143,299 143,299 39.8 %

13 unchanged sentences

Net income from our TRSs will either be retained by our TRSs and used to fund their operations, or distributed to us, where it will be reinvested in our business or be available for distribution to Lamar Advertising’s stockholders.

As of December 31, 2023, the annual taxable revenue generated by our TRSs in the aggregate was approximately $350.8 million.

As of December 31, 2024, and 2023, the annual taxable income generated by our TRSs in the aggregate was approximately $29.8 million and $30.4 million, respectively.

ADVERTISING TENANTS

9 unchanged sentences

Automotive 5 %

Amusement — Entertainment/Sports 5 %

Amusement/Attractions 5 %

Financial — Banks, Credit Unions 4 %

69 unchanged sentences

HUMAN CAPITAL RESOURCES

We employed approximately 3,550 people as of December 31, 2023.

Approximately 300 employees were engaged in overall management and general administration at our corporate headquarters in Baton Rouge, Louisiana, and the remainder, including approximately 985 local account executives, were employed in our operating offices.

We employed over 3,500 people as of December 31, 2024.

Over 325 employees were engaged in overall management and general administration at our corporate headquarters in Baton Rouge, Louisiana, and the remainder, including approximately 975 local account executives, were employed in our operating offices.

Fifteen of our local offices employ billposters and construction personnel who are covered by collective bargaining agreements.

12 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, 2023, approximately 36% of our work force was female, 18% 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.

During 2022 and 2023, 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.

As of December 31, 2024, approximately 37% of our work force was female, 18% of our employees and 33% of our named executive officers 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 several hiring networks that helps bring us a more diverse pool of candidates.

Our Executive Vice President of Human Resources and the HR department are charged with providing training that grows and develops our teams and reinforces our commitment to treat all of our employees with dignity and respect.

As a result of the inflationary environment in the U.S., we have experienced increases in our direct and general and administrative costs, including increases in labor costs, utilities and equipment rentals.

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

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

We will continue to monitor the inflationary environment and these pressures in 2024 and any resulting impacts on our financial position and results of operations.

We will continue to monitor the inflationary environment and these pressures and any resulting impacts on our financial position and results of operations.

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