LAMAR ADVERTISING CO/NEW 10-K

ITEM 8. FINANCIAL STATEMENTS LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Management’s Report on Internal Control Over Financial Reporting 46 Report of Independent Registered Public Accounting Firm — Opinion on Internal Control Over Financial Reporting ( KPMG LLP , Baton Rouge, LA , Audit Firm ID: 185 ) 47 Report of Independent Registered Public Accounting Firm — Opinion on the Consolidated Financial Statements ( KPMG LLP , Baton Rouge, LA , Audit Firm ID: 185 ) 48 Consolidated Balance Sheets as of December 31, 202 4 and 20 23 50 Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 202 4 , 202 3 and 20 2 2 51 Consolidated Statements of Stockholders’ Equity for the years ended December 31, 202 4 , 202 3 and 20 2 2 52 Consolidated Statements of Cash Flows for the years ended December 31, 202 4 , 202 3 and 20 2 2 53 Notes to Consolidated Financial Statements 54 Schedule II — Valuation and Qualifying Accounts for the years ended December 31, 202 4 , 202 3 and 20 2 2 81 Schedule III — Schedule of Real Estate and Accumulated Depreciation as of December 31, 202 4 , 202 3 and 20 2 2 82 45 Table of Contents Management’s Report on Internal Control Over Financial Reporting The management of Lamar Advertising Company is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act. Lamar Advertising’s management assessed the effectiveness of Lamar Advertising’s internal control over financial reporting as of December 31, 2024. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (2013) . Based on this assessment, Lamar Advertising’s management has concluded that, as of December 31, 2024, Lamar Advertising’s internal control over financial reporting is effective based on those criteria. The effectiveness of Lamar Advertising’s internal control over financial reporting as of December 31, 2024 has been audited by KPMG LLP, an independent registered public accounting firm, as stated in their report, which is included in Item 8 to this Annual Report. 46 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors Lamar Advertising Company: Opinion on Internal Control Over Financial Reporting We have audited Lamar Advertising Company and subsidiaries' (the Company) internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2024 and 2023, the related consolidated statements of income and comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2024, and the related notes and financial statement schedules II to III (collectively, the consolidated financial statements), and our report dated February 20, 2025 expressed an unqualified opinion on those consolidated financial statements. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion . Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed 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. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements . Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ KPMG LLP KPMG LLP Baton Rouge, Louisiana February 20, 2025 47 Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors Lamar Advertising Company: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Lamar Advertising Company and subsidiaries (the Company) as of December 31, 2024 and 2023, the related consolidated statements of income and comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2024, and the related notes and financial statement schedules II to III (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 20, 2025 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Assessment of the accounting lease term for the portfolio of billboard land leases As discussed in Note 7 to the consolidated financial statements, a lessee determines the lease term at the commencement date by identifying the non-cancellable period of the lease and then adding any periods for which it is reasonably certain to exercise a renewal option (or not to exercise a termination option). The Company has approximately 71,500 billboard land leases for which they determined the lease term using a portfolio approach, in accordance with which the negotiated stated initial lease term for each billboard land lease was concluded to be the lease term under Accounting Standards Codification Topic 842, Leases (ASC 842). We identified the assessment of the lease term for the portfolio of billboard land leases, which affects the discount rate for the lease as well as the measurement of the lease liability and right of use asset, as a critical audit matter. In the Company’s billboard land leases, the Company typically has both unilateral renewal and termination options. Determining the lease term 48 involved a high degree of subjectivity as to whether the lease term should or should not include renewal periods (including periods after an optional termination date), the evaluation of which required subjective auditor judgment. The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s billboard land lease process, including controls related to the qualifications and experience of individuals negotiating the stated initial lease term, reconciliation of inputs into the system, approval of billboard land lease contracts, and annual evaluation of the renewals and terminations exercised by the Company during the year. We evaluated the competence, capabilities, and objectivity of the Company’s real estate team that negotiates the lease terms and conditions, and whether the team considers economic factors that are consistent with those enumerated in ASC 842 when negotiating the stated initial lease term and associated renewal and termination options. We inspected the Company’s assessment and conclusion about using the portfolio approach for its billboard land leases. We tested a sample of the Company’s billboard land lease population and obtained underlying documentation to evaluate whether the leases entered into are similar in terms of the lease agreement creation process, purpose for the lease (i.e. to host a Company billboard), and lease term considerations. We assessed the impact of billboard land leases with early terminations and renewals beyond the stated initial term to evaluate the Company’s assertion that use of the stated initial lease term as the lease term for its billboard land leases on a portfolio basis was appropriate. /s/ KPMG LLP KPMG LLP We have served as the Company’s auditor since 1999. Baton Rouge, Louisiana February 20, 2025 49 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Consolidated Balance Sheets December 31, 2024 and 2023 (In thousands, except share and per share data) 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 49,461 $ 44,605 Receivables, net of allowance for doubtful accounts of $ 12,404 and $ 12,477 as of 2024 and 2023, respectively 334,798 301,189 Other current assets 41,009 27,392 Total current assets 425,268 373,186 Property, plant and equipment (note 5) 4,574,894 4,274,831 Less accumulated depreciation and amortization ( 2,974,085 ) ( 2,708,361 ) Net property, plant and equipment 1,600,809 1,566,470 Operating lease right of use assets 1,355,231 1,315,433 Financing lease right of use assets 8,331 11,184 Goodwill (note 6) 2,035,082 2,035,271 Intangible assets, net (note 6) 1,062,601 1,171,434 Other assets 99,227 90,644 Total assets $ 6,586,549 $ 6,563,622 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Trade accounts payable $ 21,586 $ 18,238 Current maturities of long-term debt, net of deferred financing costs of $ 611 and $ 380 in 2024 and 2023, respectively (note 9) 249,806 250,018 Current operating lease liabilities (note 7) 218,108 210,568 Current financing lease liabilities (note 7) 1,331 1,331 Accrued expenses (note 8) 133,943 107,195 Deferred income 153,700 126,547 Total current liabilities 778,474 713,897 Long-term debt, net of deferred financing costs of $ 22,826 and $ 28,865 in 2024 and 2023, respectively (note 9) 2,961,058 3,091,109 Operating lease liabilities (note 7) 1,114,407 1,075,285 Financing lease liabilities (note 7) 13,283 14,614 Deferred income tax liabilities (note 12) 8,006 12,047 Asset retirement obligation (note 10) 614,713 397,991 Other liabilities 48,588 41,891 Total liabilities 5,538,529 5,346,834 Stockholders’ equity (note 14): Series AA preferred stock, par value $ 0.001 , $ 63.80 cumulative dividends, authorized 5,720 shares; 5,720 shares issued and outstanding at 2024 and 2023 — — Class A common stock, par value $ 0.001 , 362,500,000 shares authorized, 88,867,481 and 88,486,495 shares issued and 87,976,923 and 87,645,560 outstanding at 2024 and 2023, respectively 89 88 Class B common stock, par value $ 0.001 , 37,500,000 shares authorized, 14,420,085 shares issued and outstanding at 2024 and 2023 14 14 Additional paid-in-capital 2,159,292 2,103,282 Accumulated comprehensive loss ( 2,954 ) ( 428 ) Accumulated deficit ( 1,036,582 ) ( 819,235 ) Cost of shares held in treasury, 890,558 and 840,935 shares in 2024 and 2023, respectively ( 72,688 ) ( 67,347 ) Non-controlling interest 849 414 Stockholders’ equity 1,048,020 1,216,788 Total liabilities and stockholders’ equity $ 6,586,549 $ 6,563,622 See accompanying notes to consolidated financial statements. 50 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Consolidated Statements of Income and Comprehensive Income Years Ended December 31, 2024, 2023 and 2022 (In thousands, except share and per share data) 2024 2023 2022 Statements of Income Net revenues (note 2) $ 2,207,103 $ 2,110,987 $ 2,032,140 Operating expenses (income): Direct advertising expenses (exclusive of depreciation and amortization) 727,875 696,799 667,288 General and administrative expenses (exclusive of depreciation and amortization) 361,133 344,780 350,623 Corporate expenses (exclusive of depreciation and amortization) 129,145 106,025 102,500 Depreciation and amortization (note 11) 462,967 293,423 349,449 Gain on disposition of assets ( 6,057 ) ( 5,474 ) ( 15,721 ) 1,675,063 1,435,553 1,454,139 Operating income 532,040 675,434 578,001 Other expense (income): Loss on extinguishment of debt 270 115 — Interest income ( 2,315 ) ( 2,115 ) ( 1,293 ) Interest expense 171,709 174,512 127,510 Equity in earnings of investee ( 5,094 ) ( 3,696 ) ( 4,315 ) 164,570 168,816 121,902 Income before income tax expense 367,470 506,618 456,099 Income tax expense (note 12) 4,531 9,782 17,452 Net income 362,939 496,836 438,647 Earnings attributable to non-controlling interest 1,072 1,073 — Net income attributable to controlling interest 361,867 495,763 438,647 Preferred stock dividends 365 365 365 Net income applicable to common stock $ 361,502 $ 495,398 $ 438,282 Earnings per share: Basic earnings per share $ 3.54 $ 4.86 $ 4.32 Diluted earnings per share $ 3.52 $ 4.85 $ 4.31 Cash dividends declared per share of common stock $ 5.65 $ 5.00 $ 5.00 Weighted average common shares used in computing earnings per share: Weighted average common shares outstanding basic 102,258,760 101,920,268 101,527,778 Weighted average common shares outstanding diluted 102,561,151 102,106,647 101,634,543 Statements of Comprehensive Income Net income $ 362,939 $ 496,836 $ 438,647 Other comprehensive (loss) income, net of tax Foreign currency translation adjustments ( 2,526 ) 231 ( 1,514 ) Comprehensive income 360,413 497,067 437,133 Earnings attributable to non-controlling interest 1,072 1,073 — Comprehensive income attributable to controlling interest $ 359,341 $ 495,994 $ 437,133 See accompanying notes to consolidated financial statements. 51 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Consolidated Statements of Stockholders’ Equity Years Ended December 31, 2024, 2023 and 2022 (In thousands, except share and per share data) Series AA PREF Stock Class A CMN Stock Class B CMN Stock Treasury Stock Add’l Paid in Capital Accumulated Comprehensive Income (Loss) Accumulated Deficit Non-controlling Interest Total Balance, December 31, 2021 $ — 88 14 ( 50,852 ) 2,001,399 855 ( 734,415 ) — 1,217,089 Non-cash compensation — — — — 11,012 — — — 11,012 Issuance of 248,947 shares of common stock through stock awards — — — — 30,366 — — — 30,366 Exercise of 194,035 shares of stock options — — — — 8,671 — — — 8,671 Issuance of 127,108 shares of common stock through employee purchase plan — — — — 10,223 — — — 10,223 Purchase of 95,679 shares of treasury stock — — — ( 10,506 ) — — — — ( 10,506 ) Foreign currency translation — — — — — ( 1,514 ) — — ( 1,514 ) Net income — — — — — — 438,647 — 438,647 Dividends/distributions to common shareholders ($ 5.00 per common share) — — — — — — ( 508,249 ) — ( 508,249 ) Dividends ($ 63.80 per preferred share) — — — — — — ( 365 ) — ( 365 ) Balance, December 31, 2022 $ — 88 14 ( 61,358 ) 2,061,671 ( 659 ) ( 804,382 ) — 1,195,374 Non-cash compensation — — — — 10,323 — 10,323 Issuance of 168,176 shares of common stock through stock awards — — — — 16,615 — — — 16,615 Exercise of 60,385 shares of stock options — — — — 4,300 — — — 4,300 Issuance of 147,006 shares of common stock through employee purchase plan — — — — 11,389 — — — 11,389 Purchase of 57,239 shares of treasury stock — — — ( 5,989 ) — — — — ( 5,989 ) Foreign currency translation — — — — — 231 — — 231 Net income — — — — — — 495,763 1,073 496,836 Reallocation of capital — — — — ( 1,016 ) — — 397 ( 619 ) Dividends/distributions to common shareholders ($ 5.00 per common share) — — — — — — ( 510,251 ) ( 1,056 ) ( 511,307 ) Dividends ($ 63.80 per preferred share) — — — — — — ( 365 ) — ( 365 ) Balance, December 31, 2023 $ — 88 14 ( 67,347 ) 2,103,282 ( 428 ) ( 819,235 ) 414 1,216,788 Non-cash compensation — — — — 19,059 — 19,059 Issuance of 143,002 shares of common stock through stock awards — — — — 16,990 — — — 16,990 Exercise of 112,575 shares of stock options — 1 — — 9,089 — — — 9,090 Issuance of 125,409 shares of common stock through employee purchase plan — — — — 11,890 — — — 11,890 Purchase of 49,623 shares of treasury stock — — — ( 5,341 ) — — — — ( 5,341 ) Foreign currency translation — — — — — ( 2,526 ) — — ( 2,526 ) Net income — — — — — — 361,867 1,072 362,939 Reallocation of capital — — — — ( 1,018 ) — — 1,018 — Dividends/distributions to common shareholders ($ 5.65 per common share) — — — — — — ( 578,849 ) ( 1,655 ) ( 580,504 ) Dividends ($ 63.80 per preferred share) — — — — — — ( 365 ) — ( 365 ) Balance, December 31, 2024 $ — 89 14 ( 72,688 ) 2,159,292 ( 2,954 ) ( 1,036,582 ) 849 1,048,020 See accompanying notes to consolidated financial statements. 52 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Consolidated Statements of Cash Flows Years Ended December 31, 2024, 2023 and 2022 (In thousands) 2024 2023 2022 Cash flows from operating activities: Net income $ 362,939 $ 496,836 $ 438,647 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 462,967 293,423 349,449 Stock-based compensation 44,525 22,649 23,136 Amortization included in interest expense 6,332 6,538 6,158 Gain on disposition of assets ( 6,057 ) ( 5,474 ) ( 15,721 ) Loss on extinguishment of debt 270 115 — Equity in earnings of investee ( 5,094 ) ( 3,696 ) ( 4,315 ) Deferred income tax (benefit) expense ( 4,036 ) 2,384 3,212 Provision for doubtful accounts 8,770 12,737 9,013 Changes in operating assets and liabilities: (Increase) decrease in: Receivables ( 43,000 ) ( 28,744 ) ( 22,511 ) Prepaid expenses ( 2,656 ) 1,087 ( 906 ) Other assets ( 7,424 ) ( 3,363 ) 2,711 Increase (decrease) in: Trade accounts payable 3,262 ( 307 ) 1,176 Accrued expenses 18,902 ( 1,708 ) ( 10,773 ) Operating lease liabilities 7,498 2,490 7,198 Other liabilities 26,412 ( 11,354 ) ( 4,862 ) Cash flows provided by operating activities 873,610 783,613 781,612 Cash flows from investing activities: Capital expenditures ( 125,284 ) ( 178,271 ) ( 167,078 ) Acquisitions ( 45,393 ) ( 138,961 ) ( 479,766 ) Decrease in notes receivable 65 62 12,124 Proceeds from disposition of assets 5,706 7,051 15,649 Cash flows used in investing activities ( 164,906 ) ( 310,119 ) ( 619,071 ) Cash flows from financing activities: Net proceeds from issuance of common stock 20,980 15,689 18,894 Cash used for purchase of treasury shares ( 5,341 ) ( 5,989 ) ( 10,506 ) Proceeds received from revolving credit facility 783,000 403,000 445,000 Payments on revolving credit facility ( 569,000 ) ( 378,000 ) ( 575,000 ) Principal payments on long-term debt ( 400 ) ( 381 ) ( 365 ) Principal payments on financing leases ( 1,331 ) ( 1,331 ) ( 1,331 ) Proceeds received from senior credit facility term loans — — 350,000 Payments on senior credit facility term loans ( 350,000 ) — — Proceeds received from accounts receivable securitization program 86,400 114,900 265,000 Payments on accounts receivable securitization program ( 86,400 ) ( 114,900 ) ( 190,000 ) Debt issuance costs ( 464 ) ( 2,951 ) ( 1,583 ) Distributions to non-controlling interest ( 1,655 ) ( 1,056 ) ( 814 ) Dividends/distributions ( 579,214 ) ( 510,616 ) ( 508,614 ) Cash flows used in financing activities ( 703,425 ) ( 481,635 ) ( 209,319 ) Effect of exchange rate changes in cash and cash equivalents ( 423 ) 127 ( 391 ) Net increase (decrease) in cash and cash equivalents 4,856 ( 8,014 ) ( 47,169 ) Cash and cash equivalents at beginning of year 44,605 52,619 99,788 Cash and cash equivalents at end of year $ 49,461 $ 44,605 $ 52,619 Supplemental disclosures of cash flow information: Cash paid for interest $ 165,827 $ 168,011 $ 120,000 Cash paid for state and federal income taxes $ 8,505 $ 11,432 $ 16,325 See accompanying notes to consolidated financial statements. 53 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) (1) Description of the Business and Significant Accounting Policies (a) Nature of Business Lamar Advertising Company (the Company) is engaged in the outdoor advertising business, operating approximately 159,000 billboard advertising displays in 45 states and Canada. The Company’s operating strategy is to be the leading provider of outdoor advertising services in the markets it serves. In addition, the Company operates a logo sign business in 23 states throughout the United States and the province of Ontario, Canada and operates approximately 47,500 transit advertising displays in 23 states and Canada. Logo signs are erected pursuant to state-awarded service contracts on public rights-of-way near highway exits and deliver brand name information on available gas, food, lodging and camping services. Included in the Company’s logo sign business are tourism signing contracts. The Company provides transit advertising in airport terminals, on bus shelters, benches and buses in the markets it serves. The Company operates as a Real Estate Investment Trust (“REIT”) for U.S. federal income tax purposes and generally will not be subject to federal income taxes on its income and gains that the Company distributes to its stockholders, including the income derived from advertising rental revenue. However, even as a REIT, the Company will remain obligated to pay income taxes on earnings from the assets of its taxable REIT subsidiaries (“TRSs”). In addition, the Company’s foreign assets and operations continue to be subject to taxation in the foreign jurisdictions where those assets are held or those operations are conducted. On July 1, 2022, the Company's direct wholly owned subsidiary Lamar Media Corp. ("Lamar Media") entered into the Amended and Restated Limited Partnership Agreement (the "Partnership Agreement") of Lamar Advertising Limited Partnership (the "OP") as the initial limited partner, along with its wholly owned subsidiary, Lamar Advertising General Partner, LLC, as the general partner of the OP (the "General Partner"). Lamar Media formed the OP and contributed all of its assets to the OP in connection with the Company's reorganization (the "Reorganization") as a specific type of REIT known as an Umbrella Partnership Real Estate Investment Trust ("UPREIT"). The Company completed the Reorganization to facilitate tax-deferred contributions of properties to the OP in exchange for limited partnership interests in the OP. The Reorganization did not have a material impact on our consolidated financial statements. (b) Principles of Consolidation The accompanying consolidated financial statements include Lamar Advertising Company, its wholly owned subsidiary, Lamar Media, and its majority-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. An operating segment is a component of an enterprise: • that engages in business activities from which it may earn revenues and incur expenses; • whose operating results are regularly reviewed by the enterprise’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance; and • for which discrete financial information is available. We manage our business through three operating segments – billboard, logo and transit advertising. We rent advertising space on billboards, buses, shelters, benches, logo plates and in airport terminals. (c) Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. 54 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) (d) Goodwill and Intangible Assets Goodwill is subject to an annual impairment test. The Company designated December 31 as the date of its annual goodwill impairment test. The Company is required to identify its reporting units and determine the carrying value of each reporting unit. The Company has identified three reporting units, billboard operations, transit operations and logo operations, by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units. The Company is required to determine the fair value of each reporting unit and compare it to the carrying amount of the reporting unit. To the extent the carrying amount of a reporting unit exceeds the fair value of the reporting unit, the Company would be required to book an impairment loss. The Company conducts a qualitative assessment by examining relevant events and circumstances which could have a negative impact on the Company’s goodwill, which includes macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, reporting unit dispositions and acquisitions, the market capitalization of the Company and other relevant events specific to the Company. If, after assessing the totality of events or circumstances described above, the Company determines that it is more likely than not that the fair value of either of the Company's reporting units is less than its carrying amount, the Company will perform a quantitative impairment test. If industry and economic conditions deteriorate, the Company may be required to assess goodwill impairment before the next annual test, which could result in impairment charges. The Company performed its annual measurement for impairment of the goodwill of its reporting units and concluded the fair value of each reporting unit exceeded its carrying amount at its annual impairment test date on December 31, 2024 and 2023; therefore, the Company was not required to recognize an impairment loss. Intangible assets, consisting primarily of site locations, customer lists and contracts, and non-competition agreements are amortized using the straight-line method over the assets' estimated useful lives, generally from 2 to 15 years. (e) Impairment of Long-Lived Assets Long-lived assets, such as property, plant and equipment, lease right of use assets and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset or asset group before interest expense. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset or asset group. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. (f) Acquisitions The Company accounts for transactions that meet the definition of a business and group asset purchases as acquisitions. For transactions that meet the definition of a business combination, the Company allocates the purchase price, including any contingent consideration, to the assets acquired and the liabilities assumed at their estimated fair values as of the date of the acquisition with any excess of the purchase price paid over the estimated fair value of net assets acquired recorded as goodwill. The determination of the final purchase price and the acquisition-date fair value of identifiable assets acquired and liabilities assumed may extend over more than one period and result in adjustments to the preliminary estimate recognized in the prior period financial statements. For transactions that meet the definition of asset group purchases, the Company proportionally allocates the purchase price to the assets based on relative fair value acquired and the liabilities assumed at their estimated fair values as of the date of the acquisition. If a transaction is determined to be a group of assets, any direct acquisition costs are capitalized. Transaction costs for transactions determined to be a business combination are expensed as incurred. The fair value of the assets acquired and liabilities assumed is typically determined by using either estimates of replacement costs or discounted cash flow valuation methods. When determining the fair value of tangible assets acquired, the Company must estimate the cost to replace the asset with a new asset, adjusted for an estimated reduction in fair value due to 55 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) age of the asset, and the economic useful life. When determining the fair value of intangible assets acquired, the Company must estimate the applicable discount rate and the timing and amount of future cash flows. (g) Lease Liabilities The Company is party to various operating leases for production facilities, vehicles and sites upon which advertising structures are built, including our billboard land leases, leases of logo structures and leases of transit advertising space. The leases expire at various dates, have varying options to renew and cancel, and may contain escalation provisions. We expense our non-variable lease payments ratably over the lease term. Also, certain of our leases contain variable lease payments based on percentage of revenue or consumer price index or other inflation-based indices. The variable lease costs are expensed in the period incurred. Due to our election not to reassess conclusions about lease identification as part of the adoption of ASC 842, Leases , our transit agreements were accounted for as leases on January 1, 2019. As we enter into new or renew current transit agreements, those agreements will not likely meet the criteria of a lease under ASC 842, therefore they will no longer be accounted for as a lease. Financing lease right of use assets are amortized over the life of the lease which is recorded in depreciation and amortization on the consolidated statements of income and comprehensive income. Interest related to financing lease liabilities is recorded in interest expense on the consolidated statements of income and comprehensive income. The key estimates for our leases include (1) the discount rate used to discount the unpaid lease payment to present value and (2) lease term. Our leases generally do not include a readily determinable implicit rate, therefore, using a portfolio approach, we determine our collateralized incremental borrowing rate to discount the lease payment based on the information available at lease commencement. Our lease terms include the noncancellable period of the lease plus any additional periods covered by either a Company option to extend (or not to terminate) the lease that the Company is reasonably certain to exercise, or an option to extend the lease controlled by the lessor. The Company has determined we are not reasonably certain to exercise renewals or termination options, and as a result we use the lease’s initial stated term as the lease term for our lease population. (h) Deferred Income Deferred income consists principally of advertising revenue invoiced in advance. Deferred advertising revenue is recognized in income over the term of the contract. (i) Revenue Recognition The Company recognizes outdoor advertising revenue on an accrual basis ratably over the term of the contracts. Production revenue and the related expense for the advertising copy are recognized upon satisfaction of its performance obligation. The Company engages in barter transactions where the Company trades advertising space for goods and services. The Company recognizes revenues and expenses from barter transactions at fair value, which is determined based on the Company’s own historical practice of receiving cash for similar advertising space from buyers unrelated to the party in the barter transaction. The amount of revenue and expense recognized for advertising barter transactions is as follows: 2024 2023 2022 Net revenues $ 9,787 $ 9,599 $ 8,775 Direct advertising expenses $ 4,698 $ 4,832 $ 4,044 General and administrative expenses $ 4,525 $ 4,044 $ 3,904 (j) Income Taxes As a REIT, the Company is generally not subject to federal income taxes on income and gains distributed to the Company’s stockholders. However, the Company remains obligated to pay income taxes on earnings from domestic TRSs. In addition, the Company’s foreign assets and operations continue to be subject to taxation in the foreign jurisdictions where those assets are held or where those operations are conducted, including those designated as Qualified REIT Subsidiaries, or QRSs, for federal income tax purposes. Accordingly, the consolidated financial statements reflect provisions for federal, state, local and foreign income taxes. The Company recognizes deferred tax assets and liabilities for the future tax consequences 56 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, as well as operating loss and tax credit carryforwards. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carry forwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities as a result of a change in tax rates is recognized in income in the period that includes the enactment date. (k) Dividends/Distributions 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). During the years ended December 31, 2024, 2023 and 2022, the Company declared and paid distributions of its REIT taxable income of $ 578,849 or $ 5.65 per share, $ 510,251 or $ 5.00 per share and $ 508,249 or $ 5.00 per share, respectively. 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 the 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 its existing and future debt instruments, the Company’s ability to utilize net operating losses (“NOLs”) to offset, in whole or in part, the Company’s distribution requirements, limitations on its ability to fund distributions using cash generated through its TRSs, the impact of general economic conditions on the Company's operations and other factors that the Board of Directors may deem relevant. During each of the years ended December 31, 2024, 2023 and 2022, the Company paid dividend distributions to holders of its Series AA Preferred Stock of $ 365 or $ 63.80 per share. (l) 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. For the years ended December 31, 2024, 2023 and 2022 there were no dilutive shares excluded from the calculation. (m) Stock Based Compensation Compensation expense for share-based awards is recognized based on the grant date fair value of those awards. Stock based compensation expense includes an estimate for pre-vesting forfeitures and is recognized over the requisite service periods of the awards on a straight-line basis, which is generally commensurate with the vesting term. Non-cash compensation expense recognized during the years ended December 31, 2024, 2023, and 2022 was $ 44,525 , $ 22,649 and $ 23,136 , respectively. The $ 44,525 expensed during the year ended December 31, 2024 consists of (i) $ 5,072 related to stock options and the employee stock purchase plan, (ii) $ 24,711 related to stock grants made under the Company’s performance-based stock incentive program in 2024, (iii) $ 13,996 related to LTIP Units issued to the Company's executive officers, and (iv) $ 745 related to restricted stock awards to directors. See Note 15 for information on the assumptions used to calculate the fair value of stock-based compensation. (n) Cash and Cash Equivalents The Company considers all highly-liquid investments with original maturities of three months or less to be cash equivalents. (o) Credit Losses The Company estimates credit losses on financial instruments based on amounts expected to be collected. The allowance for doubtful accounts is estimated based on historical collections, accounts receivable aging, economic indicators, and expected future trends. (p) Foreign Currency Translation Local currencies generally are considered the functional currencies outside the United States. Assets and liabilities for operations in local-currency environments are translated at year-end exchange rates. Income and expense items are translated at average rates of exchange prevailing during the year. Foreign currency translation adjustments are recorded as a component of 57 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) other comprehensive income (loss) in the Consolidated Statements of Income and Comprehensive Income and as a component of accumulated comprehensive income (loss) in the Consolidated Statements of Stockholders’ Equity. (q) Asset Retirement Obligations The Company is required to record the fair value of obligations associated with the retirement of tangible long-lived assets in the period in which it is incurred. The liability is capitalized as part of the related long-lived asset’s carrying amount. Adjustments are made to the asset retirement obligation liability to reflect changes in the estimates of the retirement period and amount of expected cash flows, with an offsetting adjustment made to the related long-lived tangible asset. The significant assumptions used in estimating the Company's asset retirement obligations include the retirement period, cost of asset dismantlement, credit-adjusted risk-free interest rates, inflation and market risk. Over time, accretion of the liability is recognized as an operating expense and the capitalized cost is depreciated over the expected useful life of the related asset. The Company’s asset retirement obligations relate primarily to the dismantlement, removal, site reclamation and similar activities of its leased properties. (r) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (s) Comprehensive Income Total comprehensive income is presented in the Consolidated Statements of Income and Comprehensive Income and the components of accumulated comprehensive income (loss) are presented in the Consolidated Statements of Stockholders’ Equity. Comprehensive income is composed of foreign currency translation effects. (t) Fair Value Measurements The Company determines the fair value of its financial instruments using the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. (u) Investments On July 12, 2021, Lamar invested $ 30,000 to acquire a 20 % minority interest in Vistar Media, Inc. ("Vistar"), a leading global provider of programmatic technology for the digital out-of-home sector. This investment is accounted for as an equity method investment and is included in other assets on the Consolidated Balance Sheets. For the years ended December 31, 2024, 2023 and 2022, related to this investment, the Company recorded $ 5,298 , $ 4,107 and $ 4,284 , respectively, in equity in earnings of investee on the Consolidated Statements of Income and Comprehensive Income. See Note 23, "Subsequent Events" for additional information regarding the Company's interest in Vistar. (v) Subsequent Events The Company has performed an evaluation of subsequent events through the date on which the financial statements are issued. 58 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) (2) Revenue Revenue Recognition Advertising revenues: The majority of our revenues are derived from contracts for advertising space on billboard, logo and transit displays. Contracts which do not meet the criteria of a lease under ASC 842, Leases are accounted for under ASC 606, Revenue from Contracts with Customers . The majority of our advertising space contracts do not meet the definition of a lease under ASC 842 and are therefore accounted for under ASC 606. The contract revenues are recognized ratably over their contract life. Costs to fulfill a contract, which include our costs to install advertising copy onto billboards, are capitalized and amortized to direct advertising expenses (exclusive of depreciation and amortization) in the Consolidated Statements of Income and Comprehensive Income. During the years ended December 31, 2024 and 2023, we capitalized $ 28,003 and $ 26,349 , respectively, of costs to fulfill contracts, which is included in other current assets on the Consolidated Balance Sheets, net of expensed costs of $ 27,686 and $ 26,041 , respectively. Other revenues: Our other component of revenue primarily consists of production services which includes creating and printing the advertising copy. 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: The Company is utilizing 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 for the years ended December 31, 2024, 2023 and 2022. 2024 2023 2022 Billboard Advertising $ 1,956,176 $ 1,877,823 $ 1,813,995 Logo Advertising 84,028 82,324 80,145 Transit Advertising 166,899 150,840 138,000 Net Revenues $ 2,207,103 $ 2,110,987 $ 2,032,140 (3) Acquisitions Year Ended December 31, 2024 During the year ended December 31, 2024, the Company completed several acquisitions of outdoor advertising assets for a total purchase price of $ 45,393 . Each of these asset purchases was accounted for under the acquisition method of accounting, and, accordingly, the accompanying consolidated financial statements include the results of operations of each acquired entity from the date of acquisition. The acquisition purchase price has been allocated to assets acquired and liabilities assumed based on relative fair value estimates at the dates of acquisition. 59 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) The following is a summary of the allocation of the purchase price in the above transactions. Total Property, plant and equipment $ 10,600 Site locations 28,346 Non-competition agreements 380 Customer lists and contracts 1,302 Asset acquisition costs 182 Current assets 4,721 Current liabilities ( 409 ) Operating lease right of use assets 1,857 Operating lease liabilities ( 1,586 ) $ 45,393 Total acquired intangible assets for the year ended December 31, 2024 were $ 30,210 . The acquired intangible assets have a weighted average useful life of approximately 14 years. The intangible assets include customer lists and contracts of $ 1,302 ( 7 year weighted average useful life) and site locations of $ 28,346 ( 15 year weighted average useful life). The aggregate amortization expense related to the 2024 acquisitions for the year ended December 31, 2024 was $ 1,214 . Year Ended December 31, 2023 During the year ended December 31, 2023, the Company completed several acquisitions of outdoor advertising assets for a total purchase price of $ 138,961 . Each of these asset purchases was accounted for under the acquisition method of accounting, and, accordingly, the accompanying consolidated financial statements include the results of operations of each acquired entity from the date of acquisition. The acquisition purchase price has been allocated to assets acquired and liabilities assumed based on relative fair value estimates at the dates of acquisition. The following is a summary of the allocation of the purchase price in the above transactions. Total Property, plant and equipment $ 30,837 Goodwill ( 50 ) Site locations 90,152 Non-competition agreements 360 Customer lists and contracts 11,061 Asset acquisition costs 414 Current assets 8,410 Current liabilities ( 3,851 ) Operating lease right of use assets 11,016 Operating lease liabilities ( 9,388 ) $ 138,961 Total acquired intangible assets for the year ended December 31, 2023 were $ 101,937 , of which $( 50 ) was assigned to goodwill relating to the finalization of the fair value allocation of the assets acquired and liabilities assumed from Fairway Outdoor and Standard Outdoor in the business combination completed December 9, 2022. Goodwill is not amortized for financial statement purposes and no goodwill related to 2023 acquisitions is expected to be deductible for tax purposes. The acquired intangible assets have a weighted average useful life of approximately 14 years. The intangible assets include customer lists and contracts of $ 11,061 ( 7 year weighted average useful life) and site locations of $ 90,152 ( 15 year weighted 60 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) average useful life). The aggregate amortization expense related to the 2023 acquisitions for the year ended December 31, 2023 was approximately $ 3,330 . As of December 31, 2023, we finalized our fair value allocation of the assets acquired and liabilities assumed from Fairway Outdoor and Standard Outdoor in the business combination completed December 9, 2022. The changes to our updated fair value allocation of this business combination were considered immaterial and recorded during the year ended December 31, 2023. (4) Non-cash Financing and Investing Activities For the years ended December 31, 2024 and 2022, the Company had non-cash investing activities that resulted in an increase to the asset retirement obligation balance and the carrying value of the related property, plant and equipment in the amount of $ 215,899 and $ 110,321 , respectively, related to the revision in estimate of the Company's asset retirement obligation. For the years ended December 31, 2024, 2023 and 2022, there were non-cash investing and financing activities for the recognition of ROU assets and lease liabilities at lease commencement as disclosed in Note 7, "Leases". (5) Property, Plant and Equipment Major categories of property, plant and equipment at December 31, 2024 and 2023 are as follows: Estimated Life (Years) 2024 2023 Land — $ 490,367 $ 482,424 Building and improvements 10 — 39 247,231 235,861 Advertising structures 5 — 15 3,679,719 3,401,132 Automotive and other equipment 3 — 7 157,577 155,414 $ 4,574,894 $ 4,274,831 (6) Goodwill and Other Intangible Assets The following is a summary of intangible assets at December 31, 2024 and 2023: Estimated Life (Years) 2024 2023 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizable Intangible Assets: Customer lists and contracts 7 — 10 $ 732,098 $ 665,095 $ 731,156 $ 640,635 Non-competition agreements 3 — 15 71,960 66,894 71,960 66,455 Site locations 15 2,982,504 2,002,272 2,955,324 1,891,078 Other 2 — 15 52,761 42,461 52,578 41,416 $ 3,839,323 $ 2,776,722 $ 3,811,018 $ 2,639,584 Unamortizable Intangible Assets: Goodwill $ 2,288,618 $ 253,536 $ 2,288,807 $ 253,536 The changes in the gross carrying amount of goodwill for the years ended December 31, 2024 and 2023 are as follows: Balance as of December 31, 2022 $ 2,288,805 Purchase price adjustments and other 2 Balance as of December 31, 2023 $ 2,288,807 Purchase price adjustments and other ( 189 ) Balance as of December 31, 2024 $ 2,288,618 61 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) Amortization expense for the years ended December 31, 2024, 2023 and 2022 was $ 141,892 , $ 140,033 and $ 134,256 , respectively. The following is a summary of the estimated amortization expense for future years: 2025 $ 135,374 2026 127,362 2027 123,359 2028 116,832 2029 108,303 Thereafter 451,371 Total $ 1,062,601 (7) Leases The Company is party to various operating leases for production facilities, vehicles and sites upon which advertising structures are built, including our billboard land leases, leases of logo structures and leases of transit advertising space. The leases expire at various dates, have varying options to renew and cancel, and may contain escalation provisions. We expense our non-variable lease payments ratably over the lease term. Also, certain of our leases contain variable lease payments based on percentage of revenue or consumer price index or other inflation-based indices. The variable lease costs are expensed in the period incurred. Due to our election not to reassess conclusions about lease identification, as part of the adoption of ASC 842, our transit agreements were accounted for as leases on January 1, 2019. As we enter into new or renew current transit agreements, those agreements will not likely meet the criteria of a lease under ASC 842, therefore they will no longer be accounted for as a lease. Financing lease right of use assets are amortized over the life of the lease which is recorded in depreciation and amortization on the Consolidated Statements of Income and Comprehensive Income. Interest related to financing lease liabilities is recorded in interest expense on the Consolidated Statements of Income and Comprehensive Income. The key estimates for our leases include (1) the discount rate used to discount the unpaid lease payment to present value and (2) lease term. Our leases generally do not include a readily determinable implicit rate, therefore, using a portfolio approach, we determine our collateralized incremental borrowing rate to discount the lease payment based on the information available at lease commencement. Our lease terms include the noncancellable period of the lease plus any additional periods covered by either a Company option to extend (or not to terminate) the lease that the Company is reasonably certain to exercise, or an option to extend the lease controlled by the lessor. The Company has determined we are not reasonably certain to exercise renewals or termination options, and as a result we use the lease’s initial stated term as the lease term for our lease population. During the year ended December 31, 2024, we had base operating lease costs of $ 319,058 and variable operating lease costs of $ 64,682 , for a total operating lease cost of $ 383,740 . During the year ended December 31, 2023, we had base operating lease costs of $ 311,640 and variable operating lease costs of $ 60,147 , for a total operating lease cost of $ 371,787 . During the year ended December 31, 2022, we had base operating lease costs of $ 306,825 and variable operating lease costs of $ 59,651 , for a total operating lease cost of $ 366,476 . Our operating lease costs are recorded in direct advertising expenses (exclusive of depreciation and amortization). Also, for the years ended December 31, 2024, 2023 and 2022, we recorded a gain of $ 403 , $ 295 and $ 824 respectively, in gain on disposition of assets related to the amendment and termination of lease agreements. Cash payments of $ 320,053 , $ 310,863 and $ 298,831 were made reducing our operating lease liabilities for the years ended December 31, 2024, 2023 and 2022, respectively, and are included in cash flows provided by operating activities in the Consolidated Statements of Cash Flows. We elected the short-term lease exemption which applies to certain of our vehicle agreements. This election allows the Company to not recognize lease right of use assets or lease liabilities for agreements with a term of twelve months or less. We recorded $ 10,439 , $ 10,189 and $ 7,478 in direct advertising expenses (exclusive of depreciation and amortization) for these agreements during the years ended December 31, 2024, 2023 and 2022, respectively. Our operating leases have a weighted-average remaining lease term of 12.2 years. The weighted-average discount rate of our operating leases is 5.2 %. During the years ended December 31, 2024 and 2023, we obtained $ 24,627 and $ 24,999 , 62 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) respectively, of leased assets in exchange for new operating lease liabilities, which includes liabilities obtained through acquisitions. Lease terminations during the year resulted in a $ 5,068 and $ 10,635 reduction to operating lease liabilities for the years ended December 31, 2024 and 2023, respectively. The following is a summary of the maturities of our operating lease liabilities as of December 31, 2024: 2025 $ 257,371 2026 202,651 2027 178,355 2028 153,861 2029 131,753 Thereafter 915,090 Total undiscounted operating lease payments 1,839,081 Less: Imputed interest ( 506,566 ) Total operating lease liabilities $ 1,332,515 During the years ended December 31, 2024 and 2023, we obtained no new leased assets in exchange for new financing lease liabilities. Our financing leases have a weighted-average remaining lease term of 2.9 years and a weighted-average discount rate of 3.1 %. For the years ended December 31, 2024, 2023 and 2022, amortization expense of $ 2,853 was recorded within depreciation and amortization and interest expense of $ 463 , $ 504 and $ 544 , was recorded within interest expense, respectively, on the Consolidated Statements of Income and Comprehensive Income in relation to these financing lease liabilities. Cash payments of $ 1,331 were made reducing our financing lease liabilities for the years ended December 31, 2024, 2023 and 2022 and are included in cash flows used in financing activities in the Consolidated Statements of Cash Flows. Due to our election not to reassess conclusions about lease identification as part of the adoption of ASC 842, Leases , our transit agreements were accounted for as leases on January 1, 2019. As we enter into new or renew current transit agreements, those agreements do not meet the criteria of a lease under ASC 842, therefore they are no longer accounted for as a lease. For the years ended December 31, 2024, 2023 and 2022, non-lease variable transit expenses were $ 97,099 , $ 87,688 and $ 78,877 , respectively. These transit expenses are recorded in direct advertising expenses (exclusive of depreciation and amortization) on the Consolidated Statements of Income and Comprehensive Income. (8) Accrued Expenses The following is a summary of accrued expenses at December 31, 2024 and 2023: 2024 2023 Payroll $ 27,871 $ 21,903 Interest 22,837 23,322 Insurance benefits 10,972 10,801 Accrued variable lease and contract expense 34,416 30,375 Stock-based compensation 16,404 7,936 Other 21,443 12,858 $ 133,943 $ 107,195 63 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) (9) Long-term Debt Long-term debt consists of the following at December 31, 2024 and 2023: December 31, 2024 Debt Deferred financing costs Debt, net of deferred financing costs Senior Credit Facility $ 883,474 $ 5,623 $ 877,851 Accounts Receivable Securitization Program 250,000 611 249,389 3 3/4% Senior Notes 600,000 3,802 596,198 3 5/8% Senior Notes 550,000 5,440 544,560 4% Senior Notes 549,595 4,854 544,741 4 7/8% Senior Notes 400,000 3,107 396,893 Other notes with various rates and terms 1,232 — 1,232 3,234,301 23,437 3,210,864 Less current maturities ( 250,417 ) ( 611 ) ( 249,806 ) Long-term debt, excluding current maturities $ 2,983,884 $ 22,826 $ 2,961,058 December 31, 2023 Debt Deferred financing costs Debt, net of deferred financing costs Senior Credit Facility $ 1,019,222 $ 8,266 $ 1,010,956 Accounts Receivable Securitization Program 250,000 380 249,620 3 3/4% Senior Notes 600,000 4,923 595,077 3 5/8% Senior Notes 550,000 6,226 543,774 4% Senior Notes 549,516 5,675 543,841 4 7/8% Senior Notes 400,000 3,775 396,225 Other notes with various rates and terms 1,634 — 1,634 3,370,372 29,245 3,341,127 Less current maturities ( 250,398 ) ( 380 ) ( 250,018 ) Long-term debt, excluding current maturities $ 3,119,974 $ 28,865 $ 3,091,109 Long-term debt contractual maturities are as follows: Debt Deferred financing costs Debt, net of deferred financing costs 2025 $ 418 $ — $ 418 2026 $ 442 $ — $ 442 2027 $ 849,820 $ 3,044 $ 846,776 2028 $ 884,000 $ 6,993 $ 877,007 2029 $ 400,000 $ 3,107 $ 396,893 Thereafter $ 1,099,621 $ 10,293 $ 1,089,328 Senior Credit Facility On February 6, 2020, Lamar Media entered into a Fourth Amended and Restated Credit Agreement (the “Fourth Amended and Restated Credit Agreement”) with 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 64 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) existing senior credit facility. The Fourth Amended and Restated Credit Agreement amended and restated the Third Amended and Restated Credit Agreement dated as of May 15, 2017, as amended (the “Third Amended and Restated Credit Agreement”). The senior credit facility, as established by the Fourth Amended and Restated Credit Agreement (the “senior credit facility”), consists of (i) a $ 750,000 senior secured revolving credit facility which will mature on July 31, 2028, subject to certain conditions (see description of Amendment No. 4 below) (the “revolving credit facility”), (ii) a $ 600,000 senior secured Term B loan facility (the “Term B loans”) which will mature on February 6, 2027, (iii) an incremental facility (the “Incremental Facility”) pursuant to which Lamar Media may incur additional term loan tranches or increase its revolving credit facility subject to a pro forma secured debt ratio of 4.50 to 1.00, as well as certain other conditions including lender approval. Lamar Media borrowed all $ 600,000 in Term B loans on February 6, 2020. The entire amount of the Term B loans will be payable at maturity. The net proceeds from the Term B loans, together with borrowings under the revolving portion of the senior credit facility and a portion of the proceeds of the issuance of the 3 3/4% Senior Notes due 2028 and 4 % Senior Notes due 2030 (both as described below), were used to repay all outstanding amounts under the Third Amended and Restated Credit Agreement, and all revolving commitments under that facility were terminated. The Term B loans mature on February 6, 2027 with no required amortization payments. The Term B loans bear interest at rates based on the Term Secured Overnight Financing Rate ("Term SOFR") plus a credit spread adjustment of 0.10 % (Term SOFR plus such credit spread adjustment, the "Adjusted Term SOFR Rate") or the Adjusted Base Rate, at Lamar Media’s option. Term B loans bearing interest at a rate based on Term SOFR bear interest at a rate per annum equal to the Adjusted Term SOFR Rate plus 1.50 %. Term B loans bearing interest at a rate based on the Adjusted Base Rate bear interest at a rate per annum equal to the Adjusted Base Rate plus 0.50 %. The revolving credit facility bears interest at rates based on Term SOFR ("Term SOFR revolving loans”) or the Adjusted Base Rate (“Base Rate revolving loans”), at Lamar Media’s option. Term SOFR revolving loans bear interest at a rate per annum equal to the Adjusted Term SOFR Rate plus 1.50 % (or the Adjusted Term SOFR Rate plus 1.25 % at any time the Total Debt Ratio is less than or equal to 3.25 to 1). Base Rate revolving loans bear interest at a rate per annum equal to the Adjusted Base Rate plus 0.50 % (or the Adjusted Base Rate plus 0.25 % at any time the total debt ratio is less than or equal to 3.25 to 1). The guarantees, covenants, events of default and other terms of the senior credit facility apply to the Term B loans and revolving credit facility. On July 29, 2022, Lamar Media entered into Amendment No. 2 ("Amendment No. 2") to the Fourth Amended and Restated Credit Agreement with certain of Lamar Media's subsidiaries as guarantors, JPMorgan Chase Bank, N.A. as administrative agent and the lenders party thereto. Amendment No. 2 established the Term A loans as a new class of incremental term loans. The Term A loans were set to mature on February 6, 2025 with no required amortization payments prior to maturity and bore interest at rates based on the Term SOFR ("Term SOFR Term A loans") or the Adjusted Base Rate ("Base Rate Term A loans"), at Lamar Media's option. Term SOFR Term A loans bore interest at a rate per annum equal to the Adjusted Term SOFR Rate plus 1.50 % (or the Adjusted Term SOFR Rate plus 1.25 % at any time the Total Debt Ratio is less than or equal to 3.25 to 1). Base Rate Term A loans bore interest at a rate per annum equal to the Adjusted Base Rate plus 0.50 % (or the Adjusted Base Rate plus 0.25 % at any time the total debt ratio is less than or equal to 3.25 to 1). The covenants, events of default and other terms of the senior credit facility apply to the Term A loans. Lamar Media borrowed all $ 350,000 in Term A loans on July 29, 2022. Proceeds from the Term A loans were used to repay outstanding balances on the revolving credit facility and a portion of the outstanding balance on the Accounts Receivable Securitization Program. The Term A loans were subsequently repaid in full on July 31, 2024. On April 26, 2023, Lamar Media entered into Amendment No. 3 ("Amendment No. 3") to the Fourth Amended and Restated Credit Agreement with certain of Lamar Media's subsidiaries as guarantors, JPMorgan Chase Bank N.A. as administrative agent and the lenders party thereto. Amendment No. 3 replaced the London Interbank Offered Rates as administered by the ICE Benchmark Administration with Term SOFR as the successor rate, as set in the Fourth Amended and Restated Credit Agreement. All other material terms and conditions of the Fourth Amended and Restated Credit Agreement remain unchanged by Amendment No. 3. On July 31, 2023, Lamar Media entered into Amendment No. 4 ("Amendment No. 4"), to the Fourth Amended and Restated Credit Agreement with certain of Lamar Media's subsidiaries as guarantors, JPMorgan Chase Bank, N.A. as administrative agent and the lenders party thereto. Amendment No. 4 extends the maturity date of Lamar Media's $ 750,000 65 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) revolving credit facility such that the revolving credit facility matures July 31, 2028; provided, that, if on the date (a "Springing Maturity Test Date") that is 91 days prior to either the then scheduled maturity date of Lamar Media's Term B loans (which is currently February 6, 2027) or the February 15, 2028 maturity date of Lamar Media's 3 3/4% Notes, the Company and its restricted subsidiaries do not have sufficient liquidity (defined as unrestricted cash and cash equivalents of the Company and its restricted subsidiaries plus unused commitments under the revolving credit facility) to repay in full the aggregate outstanding amount (including all accrued and unpaid interest, premiums and make-whole amounts (if any)) of the Term B loans or the 3 3/4% Notes (as applicable), the revolving credit facility will mature on such Springing Maturity Test Date. On the maturity date of the revolving credit facility, the entire principal amount of revolving loans outstanding under the revolving credit facility, together with all accrued and unpaid interest on such revolving loans, will be due and payable. Amendment No. 4 also establishes a $ 75,000 swingline as a sublimit of the revolving credit facility, which allows Lamar Media to borrow revolving loans on a same-day basis, in an aggregate outstanding principal amount of up to $ 75,000 . In addition, Amendment No. 4 amends the provisions of the Fourth Amended and Restated Credit Agreement related to incremental facilities to allow Lamar Media to establish, from time to time, one or more new incremental revolving facilities on the terms, and subject to the conditions, set forth therein. As of December 31, 2024, there were $ 284,000 in outstanding borrowings under the revolving credit facility. Availability under the revolving credit facility is reduced by the amount of any letters of credit outstanding. Lamar Media had $ 8,789 in letters of credit outstanding as of December 31, 2024 resulting in $ 457,211 of availability under the revolving credit facility. Revolving credit loans may be requested under the revolving credit facility at any time prior to its maturity on July 31, 2028. 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 the senior credit facility, the Company must maintain a specified secured debt ratio as long as a revolving credit commitment, revolving loan or letter of credit remains outstanding, 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. Accounts Receivable Securitization Program On December 18, 2018, Lamar Media entered into a $ 175,000 Receivable Financing Agreement (the "Receivable Financing Agreement") with its wholly-owned special purpose entities, Lamar QRS Receivables, LLC and Lamar TRS Receivables, LLC (the “Special Purpose Subsidiaries”) (the "Accounts Receivable Securitization Program"). The Accounts Receivable Securitization Program is limited to the availability of eligible accounts receivable collateralizing the borrowings under the agreements governing the Accounts Receivable Securitization Program. 66 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) Pursuant to two separate Purchase and Sale Agreements dated December 18, 2018, each of which is among Lamar Media as initial Servicer, certain of Lamar Media’s subsidiaries and a Special Purpose Subsidiary, the subsidiaries sold substantially all of their existing and future accounts receivable balances to the Special Purpose Subsidiaries. The Special Purpose Subsidiaries use the accounts receivable balances to collateralize loans pursuant to the Accounts Receivable Securitization Program. Lamar Media retains the responsibility of servicing the accounts receivable balances pledged as collateral under the Accounts Receivable Securitization Program and provides a performance guaranty. On June 24, 2022, Lamar Media and the Special Purpose Subsidiaries entered into the Sixth Amendment (the "Sixth Amendment") to the Receivables Financing Agreement. The Sixth Amendment increased the Accounts Receivable Securitization Program from $ 175,000 to $ 250,000 and extended the maturity date of the Accounts Receivable Securitization Program to July 21, 2025. Additionally, the Sixth Amendment provides for the replacement of LIBOR-based interest rate mechanics with Term SOFR based interest rate mechanics for the Accounts Receivable Securitization Program. The Accounts Receivable Securitization Program was set to mature on July 21, 2025, but was subsequently extended to October 15, 2027 by the Seventh Amendment to the Receivables Financing Agreement dated October 15, 2024; provided, that, if on the date (a “Securitization Springing Maturity Test Date”) that is 91 days prior to the then scheduled maturity date of Lamar Media’s Term Loan B loans (which is currently February 6, 2027), (a) any of the outstanding Term B loans has a scheduled maturity date prior to the date that is 91 days prior to the then scheduled maturity date of Lamar Media’s revolving credit facility (which is currently July 31, 2028) and (b) the Company and its restricted subsidiaries do not have sufficient liquidity (defined as (i) unused commitments under the revolving credit facility plus (ii) unrestricted cash and cash equivalents of the Company and its restricted subsidiaries plus (iii) borrowing availability under the Accounts Receivable Securitization Program) to repay in full the aggregate outstanding amount (including all accrued and unpaid interest, premiums and make-whole amounts (if any)) of the Term Loan B loans, then the Accounts Receivable Securitization Program will mature on such Securitization Springing Maturity Test Date. Lamar Media may amend the facility to further extend the maturity date, enter into a new securitization facility with a different maturity date, or refinance the indebtedness outstanding under the Accounts Receivable Securitization Program using borrowings under its senior credit facility or from other financing sources. As of December 31, 2024, there was $ 250,000 outstanding aggregate borrowings under the Accounts Receivable Securitization Program. Lamar Media had no additional availability for borrowing under the Accounts Receivable Securitization Program as of December 31, 2024. The commitment fees based on the amount of unused commitments under the Accounts Receivable Securitization Program were immaterial during the year ended December 31, 2024. The Accounts Receivable Securitization Program is accounted for as a collateralized financing activity, rather than a sale of assets, and therefore: (i) accounts receivable balances pledged as collateral are presented as assets and the borrowings are presented as liabilities on our Consolidated Balance Sheets, (ii) our Consolidated Statements of Income and Comprehensive Income reflect the associated charges for bad debt expense (a component of general and administrative expenses) related to the pledged accounts receivable and interest expense associated with the collateralized borrowings and (iii) receipts from customers related to the underlying accounts receivable are reflected as operating cash flows and borrowings and repayments under the collateralized loans are reflected as financing cash flows within our Consolidated Statements of Cash Flows. 4 % Senior Notes On February 6, 2020, Lamar Media completed an institutional private placement of $ 400,000 aggregate principal amount of 4 % Senior Notes due 2030 (the “Original 4 % Notes”). The institutional private placement on February 6, 2020 resulted in net proceeds to Lamar Media of approximately $ 395,000 . On August 19, 2020, Lamar Media completed an institutional private placement of an additional $ 150,000 aggregate principal amount of its 4 % Notes (the “Additional 4 % Notes”, and together with the "Original 4 % Notes, the " 4 % Notes"). Other than with respect to the date of issuance and issue price, the Additional 4 % Notes have the same terms as the Original 4 % Notes. The institutional private placement on August 19, 2020 resulted in net proceeds to Lamar Media of approximately $ 146,900 . At any time prior to February 15, 2025, Lamar Media may redeem some or all of the 4 % Notes at a price equal to 100 % of the aggregate principal amount, plus accrued and unpaid interest thereon and a make-whole premium. On or after 67 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) February 15, 2025, Lamar Media may redeem the 4 % Notes, in whole or in part, in cash at redemption prices specified in the 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 4 % Notes at a price equal to 101 % of the principal amount of the 4 % Notes, plus accrued and unpaid interest, up to but not including the repurchase date. 3 3/4% Senior Notes On February 6, 2020, Lamar Media completed an institutional private placement of $ 600,000 aggregate principal amount of 3 3/4% Senior Notes due 2028 (the “3 3/4% Notes”). The institutional private placement on February 6, 2020 resulted in net proceeds to Lamar Media of approximately $ 592,500 . On or after February 15, 2023, Lamar Media may redeem the 3 3/4% Notes, in whole or in part, in cash at redemption prices specified in the 3 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 3 3/4% Notes at a price equal to 101 % of the principal amount of the 3 3/4% Notes, plus accrued and unpaid interest, up to but not including the repurchase date. 4 7/8% Senior Notes On May 13, 2020, Lamar Media completed an institutional private placement of $ 400,000 aggregate principal amount of 4 7/8% Senior Notes due 2029 (the “4 7/8% Notes”). The institutional private placement on May 13, 2020 resulted in net proceeds to Lamar Media of approximately $ 395,000 . On or after January 15, 2024, Lamar Media may redeem the 4 7/8% Notes, in whole or in part, in cash at redemption prices specified in the 4 7/8% Notes. In addition, if the Company or Lamar Media undergoes a change of control, Lamar Media may be required to make an offer to purchase each holder’s 4 7/8% Notes at a price equal to 101 % of the principal amount of the 4 7/8% Notes, plus accrued and unpaid interest, up to but not including the repurchase date. 3 5/8% Senior Notes On January 22, 2021, Lamar Media completed an institutional private placement of $ 550,000 aggregate principal amount of 3 5/8% Senior Notes due 2031 (the "3 5/8% Notes"). The institutional private placement on January 22, 2021 resulted in net proceeds to Lamar Media of approximately $ 542,500 . At any time prior to January 15, 2026, Lamar Media may redeem some or all of the 3 5/8% Notes at a price equal to 100 % of the aggregate principal amount, plus accrued and unpaid interest thereon and a make-whole premium. On or after January 15, 2026, Lamar Media may redeem the 3 5/8% Notes, in whole or in part, in cash at redemption prices specified in the 3 5/8% 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 3 5/8% Notes at a price equal to 101 % of the principal amount of the 3 5/8% Notes, plus accrued and unpaid interest, up to but not including the repurchase date. Exchange Offers In October 2020, the Company completed a subsequent exchange offer with respect to each of the 4 % Notes, 3 3/4% Notes, and 4 7/8% Notes, in each case, for substantially identical notes registered under the Securities Act of 1933, as amended. In September 2021, the Company completed a subsequent exchange offer with respect to the 3 5/8% Notes for substantially identical notes registered under the Securities Act of 1933, as amended. Debt Repurchase Program The Company’s Board of Directors has authorized Lamar Media to repurchase up to $ 250,000 outstanding senior or senior subordinated notes and other indebtedness outstanding from time to time under its Fourth Amended and Restated Credit Agreement. On September 24, 2024, the Board of Directors authorized the extension of the repurchase program through March 31, 2026. There were no repurchases under the program as of December 31, 2024. 68 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) (10) Asset Retirement Obligation The Company’s asset retirement obligation includes 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, 2022 $ 390,442 Additions to asset retirement obligations 4,548 Revision in estimates 1,230 Accretion expense 7,210 Liabilities settled ( 5,439 ) Balance at December 31, 2023 $ 397,991 Additions to asset retirement obligations 289 Revision in estimates 215,899 Accretion expense 7,843 Liabilities settled ( 7,309 ) Balance at December 31, 2024 $ 614,713 Revision in estimates in December 31, 2024 of $ 215,899 reflects changes in cost estimates to remove structures and resurface land for structures that reside on leased land in the Company's outdoor advertising portfolio. (11) Depreciation and Amortization The Company includes all categories of depreciation and amortization on a separate line in its Consolidated Statements of Income and Comprehensive Income. The amounts of depreciation and amortization expense excluded from the following operating expenses in its Consolidated Statements of Income and Comprehensive Income are as follows: Year Ended December 31, 2024 2023 2022 Direct advertising expenses $ 439,933 $ 273,297 $ 330,357 General and administrative expenses 5,334 5,691 5,242 Corporate expenses 17,700 14,435 13,850 $ 462,967 $ 293,423 $ 349,449 The increase in the amount of depreciation and amortization expense excluded from direct advertising expense for the year ended December 31, 2024 is due to the revision in the removal cost estimate included in the calculation of asset retirement obligations during the period. (12) Income Taxes Commencing January 1, 2014, the Company began operating as a REIT for U.S. income tax purposes. Since operating as a REIT, the Company filed, and intends to continue to file, as a REIT, and its TRSs filed, and intend to continue to file, as C corporations. The Company also files tax returns in various states and countries. The Company’s state tax returns reflect different combinations of the Company’s subsidiaries and are dependent on the connection each subsidiary has with a particular state. The following information pertains to the Company’s income taxes on a consolidated basis. 69 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) Income tax expense consists of the following: Current Deferred Total Year ended December 31, 2024 U.S. federal $ 5,942 $ 945 $ 6,887 State and local 2,277 366 2,643 Foreign 348 ( 5,347 ) ( 4,999 ) $ 8,567 $ ( 4,036 ) $ 4,531 Year ended December 31, 2023 U.S. federal $ 6,223 $ 1,280 $ 7,503 State and local 2,035 ( 26 ) 2,009 Foreign ( 860 ) 1,130 270 $ 7,398 $ 2,384 $ 9,782 Year ended December 31, 2022 U.S. federal $ 5,663 $ 2,073 $ 7,736 State and local 3,376 ( 136 ) 3,240 Foreign 5,201 1,275 6,476 $ 14,240 $ 3,212 $ 17,452 As of December 31, 2024, the Company had income taxes receivable of $ 2,104 which was recorded within other current assets on the Consolidated Balance Sheets. As of December 31, 2024 and 2023, the Company had income taxes payable of $ 199 and $ 36 , respectively, which was recorded within accrued expenses on the Consolidated Balance Sheets. The U.S. and foreign components of earnings before income taxes are as follows: 2024 2023 2022 U.S. $ 368,924 $ 509,040 $ 446,395 Foreign ( 1,454 ) ( 2,422 ) 9,704 Total $ 367,470 $ 506,618 $ 456,099 A reconciliation of significant differences between the reported amount of income tax expense and the expected amount of income tax expense that would result from applying the U.S. federal statutory income tax rate of 21 percent to income before taxes for the 2024, 2023 and 2022 tax years is as follows: 2024 2023 2022 Income tax expense at U.S. federal statutory rate $ 77,166 $ 106,390 $ 95,781 Tax adjustment related to REIT (a) ( 76,410 ) ( 101,486 ) ( 86,793 ) State and local income taxes, net of federal income tax benefit 2,522 2,732 2,850 Book expenses not deductible for tax purposes 2,401 2,574 3,042 Stock-based compensation 4,814 513 ( 3,336 ) Valuation allowance (b) 548 875 ( 14,984 ) Undistributed earnings of foreign subsidiaries (c) ( 55 ) ( 95 ) ( 84 ) Jurisdictional tax rate change ( 5,417 ) — — Other differences, net (d) ( 1,038 ) ( 1,721 ) 20,976 Income tax expense $ 4,531 $ 9,782 $ 17,452 (a) Includes dividend paid deduction of $ 121,466 , $ 107,137 and $ 106,129 for the tax years ended December 31, 2024, 2023 and 2022, respectively. 70 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) (b) For the years ended December 31, 2024, 2023 and 2022, a non-cash valuation allowance of $ 548 , $ 875 and ($ 14,984 ), respectively, was recorded to income tax expense (benefit) due to our limited ability to utilize Puerto Rico and Canada deferred tax assets in future years. (c) Management does not assert that the undistributed earnings of our Canadian subsidiaries will be permanently reinvested. For the years ended December 31, 2024, 2023 and 2022, we recognized a deferred tax benefit of $ 55 , $ 95 and $ 84 , respectively, for future foreign withholding taxes related to undistributed earnings. (d) Under Section 1031.01(b)(10) of the 2011 Puerto Rico Code, net operating losses and the tax basis of any other assets shall be reduced for forgiveness of debt to the extent by which the taxpayer is insolvent. As a result, a non-cash expense of $ 15,201 was recorded to income tax expense for the reduction of Puerto Rico deferred tax assets for the year ended December 31, 2022. The Puerto Rico income tax withholding rate applicable on the accrued interest of the debt is 29 % . As a result, for the year ended December 31, 2022, a cash expense of $ 5,068 was recorded to income tax expense. The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: 2024 2023 Deferred tax assets: Allowance for doubtful accounts $ 222 $ 211 Net operating loss carry forwards 3,637 5,261 Tax credit carry forwards 514 1,202 Charitable contributions carry forward — 2 Intangibles 785 — Gross deferred tax assets 5,158 6,676 Less: valuation allowance ( 3,402 ) ( 5,333 ) Net deferred tax assets 1,756 1,343 Deferred tax liabilities: Intangibles — ( 4,926 ) Accrued liabilities not deducted for tax purposes ( 2,214 ) ( 2,133 ) Investment in partnerships ( 3,940 ) ( 2,611 ) Property, plant and equipment ( 2,900 ) ( 2,956 ) Undistributed earnings of foreign subsidiaries ( 708 ) ( 764 ) Gross deferred tax liabilities ( 9,762 ) ( 13,390 ) Net deferred tax liabilities $ ( 8,006 ) $ ( 12,047 ) As of December 31, 2024, we have approximately $ 8,627 of U.S. net operating loss carry forwards to offset future taxable income all of which is subject to Internal Revenue Code §382 limitation but will be available to be fully utilized by no later than 2027. These carry forwards expire between 2032 through 2037. As of December 31, 2024, we have approximately $ 1,427,833 of state net operating loss carry forwards before valuation allowances. These state net operating losses are available to reduce future taxable income and expire at various times and amounts. In addition, we have $ 47 of various credits available to offset future state income tax. As of December 31, 2024, we had approximately $ 11,867 of Canadian net operating loss carry forwards before valuation allowances. These Canadian net operating losses are available to offset future taxable income. These carry forwards expire between 2026 and 2044. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those jurisdictions during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carry back and carry forward periods), projected future taxable income, and tax-planning strategies in making this assessment. In order to fully realize the deferred tax assets, the Company will need to generate future taxable income before the expiration of the carry 71 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) forwards governed by the tax code. Based on the current level of pretax earnings, the Company will not generate the minimum amount of future taxable income to support the realization of the deferred tax assets. As a result, management has determined that a valuation allowance related to Canada net operating loss carry forwards and other deferred tax assets is necessary. The valuation allowance for Canada deferred tax assets as of December 31, 2024 and 2023 was $ 3,402 and $ 1,235 , respectively. For this same reason, there was also a valuation allowance for Puerto Rico deferred tax assets as of December 31, 2023 of $ 4,098 . Our Puerto Rico subsidiaries were dissolved during the year ended December 31, 2024. The net change in the total valuation allowance for the years ended December 31, 2024 and 2023 was a (decrease) increase of $( 1,931 ) and $ 898 , respectively. The amount of the deferred tax asset considered realizable, however, could be adjusted in the near term if estimates of future taxable income during the carry forward period increase. As of December 31, 2024, the Company has accumulated undistributed earnings generated by our foreign subsidiaries of approximately $ 14,162 . Management does not designate these earnings as permanently reinvested and has recognized a deferred tax liability of approximately $ 708 related to foreign withholding taxes on these earnings. We have recognized a current year tax benefit of $ 55 related to 2024 earnings. Under ASC 740, Income Taxes , we provide for uncertain tax positions, and the related interest, and adjust recognized tax benefits and accrued interest accordingly. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Balance as of December 31, 2021 $ 5,125 Additions for tax positions related to current year 718 Additions for tax positions related to prior years 1,142 Lapse of statute of limitations ( 1,441 ) Balance as of December 31, 2022 5,544 Additions for tax positions related to prior years 703 Lapse of statute of limitations ( 1,815 ) Balance as of December 31, 2023 $ 4,432 Additions for tax positions related to current year 71 Additions for tax positions related to prior years 317 Reductions for tax positions related to prior years ( 1,396 ) Lapse of statute of limitations ( 798 ) Balance as of December 31, 2024 $ 2,626 As of December 31, 2024, 2023, and 2022, there are $ 2,626 , $ 4,432 , and $ 5,544 of unrecognized tax benefits that, if recognized would impact our effective tax rate. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. During the year ended December 31, 2024, we recognized a benefit to interest and penalties of $ 71 . During the years ended December 31, 2023, and 2022, we recognized $ 76 and $ 212 of expense in interest and penalties, respectively. The Company had $ 1,325 and $ 1,396 of interest and penalties accrued at December 31, 2024 and 2023, respectively. Within the next twelve months, we expect to decrease our unrecognized tax benefits by approximately $ 1,560 as a result of the expiration of statute of limitations. We are subject to income taxes in the U.S. and nearly all states. In addition, the Company is subject to income taxes in Canada and the Commonwealth of Puerto Rico. We are no longer subject to U.S federal income tax examinations by tax authorities for years prior to 2021, or for any U.S. state income tax audit prior to 2021. With respect to Canada and Puerto Rico, we are no longer subject to income tax audits for years before 2021 and 2020, respectively. As of January 1, 2024, we and our subsidiaries are subject to the OECD Pillar Two Rules. The Pillar Two Rules can potentially lead to additional taxes when the effective tax rate (as defined by the Pillar Two Rules) in a jurisdiction is below 15%. While it is uncertain whether the U.S. will enact Pillar Two legislation, Canada where the Company operates has enacted 72 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) Pillar Two legislation. The Pillar Two Rules, however, do not apply to “Excluded Entities” considered “Real Estate Investment Vehicles” and certain subsidiaries of Excluded Entities. The majority of our entities qualify as excluded entities. For those entities not considered Excluded Entities, Pillar Two did not have a material impact on the Company’s effective tax rate or the Company’s Consolidated Statements of Operations and Comprehensive Loss. (13) Related Party Transactions Affiliates, as used within these statements, are persons or entities that are affiliated with Lamar Advertising Company or its subsidiaries through common ownership and directorate control. RTC Holdings, LLC (“RTC”), a telecommunications company, is 100 % owned by entities owned by members of the Reilly family. Entities owned by Sean E. Reilly, President and Chief Executive Officer of the Company; Kevin P. Reilly, Jr., Executive Chairman of the Board of Directors; and members of their respective immediate families hold a majority stake in RTC of approximately 89 %. The Reilly Family, LLC, which is owned by Sean E. Reilly, Kevin P. Reilly, Jr., members of our Board of Directors Anna Reilly and Wendell Reilly, and entities owned by each of them and members of their respective immediate families, holds the remaining minority stake in RTC of approximately 11 %. On May 31, 2019, RTC acquired EATELCORP, LLC (“EATEL”) and its subsidiaries. EATEL provides phone and internet services to consumers and businesses in Louisiana. EATEL also provides data back-up and recovery services to businesses. During the years ended December 31, 2024 and 2023, the Company was a customer of EATEL for data back-up and recovery services. The aggregate amount paid by the Company to EATEL for such services was $ 23 and $ 84 for the years ended December 31, 2024 and 2023, respectively. The Company was also contracted by EATEL to provide advertising services in the aggregate amount of $ 230 and $ 206 for the years ended December 31, 2024 and 2023, respectively. The Company had $ 162 and $ 274 receivables from employees or executive officers at December 31, 2024 and 2023, respectively. On July 12, 2021, Lamar invested $ 30,000 to acquire a 20 % minority interest in Vistar, a leading global developer of programmatic technology for the digital out-of-home sector. For the years ended December 31, 2024, 2023 and 2022, the Company recognized revenue of $ 25,333 , $ 12,050 and $ 13,074 , respectively, from advertisements generated through Vistar's programmatic technology platform. We also incurred expenses of $ 2,499 , $ 1,134 and $ 1,167 related to these advertisements and other digital technology agreements with Vistar for the years ended December 31, 2024, 2023 and 2022, respectively. See Note 23, "Subsequent Events" for additional information regarding the Company's interest in Vistar. (14) Stockholders’ Equity On July 16, 1999, the Board of Directors designated 5,720 shares of the 1,000,000 shares of previously undesignated preferred stock, par value $ .001 , as Series AA preferred stock, which shares were subsequently exchanged on a one for one basis in the REIT conversion. The Series AA preferred stock ranks senior to the Class A common stock and Class B common stock with respect to dividends and upon liquidation. Holders of Series AA preferred stock are entitled to receive, on a pari passu basis, dividends at the rate of $ 15.95 per share per quarter when, as and if declared by the Board of Directors. The Series AA preferred stock is entitled to receive, on a pari passu basis, $ 638 plus a further amount equal to any dividend accrued and unpaid to the date of distribution before any payments are made or assets distributed to the Class A common stock or Class B stock upon voluntary or involuntary liquidation, dissolution or winding up of the Company. The liquidation value of the outstanding Series AA preferred stock at December 31, 2024 was $ 3,649 . The Series AA preferred stock is entitled to one vote per share. All of the outstanding shares of common stock are fully paid and nonassessable. In the event of the liquidation or dissolution of the Company, following any required distribution to the holders of outstanding shares of preferred stock, the holders of common stock are entitled to share pro rata in any balance of the corporate assets available for distribution to them. The Company may pay dividends if, when and as declared by the Board of Directors from funds legally available therefore, subject to the restrictions set forth in the Company’s existing indentures and the senior credit facility. Subject to the preferential rights of the holders of any class of preferred stock, holders of shares of common stock are entitled to receive such dividends as may be declared by the Company’s Board of Directors out of funds legally available for such purpose. No dividend may be 73 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) declared or paid in cash or property on any share of either class of common stock unless simultaneously the same dividend is declared or paid on each share of the other class of common stock, provided that, in the event of stock dividends, holders of a specific class of common stock shall be entitled to receive only additional shares of such class. The rights of the Class A and Class B common stock are equal in all respects, except holders of Class B common stock have ten votes per share on all matters in which the holders of common stock are entitled to vote and holders of Class A common stock have one vote per share on such matters. The Class B common stock will convert automatically into Class A common stock upon the sale or transfer to persons other than permitted transferees (as defined in the Company’s certificate of incorporation, as amended). On July 24, 2024, the Company entered into an equity distribution agreement, or At-the-Market Offering agreement, (the "2024 Sales Agreement") with J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Truist Securities, Inc., SMBC Nikko Securities America, Inc. and Scotia Capital (USA) Inc. as our sales agents (each a "Sales Agent", and collectively, the "Sales Agents"), which replaced the prior Sales Agreement with substantially similar terms which expired by its terms on June 21, 2024. Under the terms of the 2024 Sales Agreement, the Company may, from time to time, issue and sell shares of its 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 2024 Sales Agreement and may at any time suspend solicitations and offers under the 2024 Sales Agreement. As of December 31, 2024, no shares of our Class A common stock have been sold under the 2024 Sales Agreement or were sold under the prior Sales Agreement and accordingly $ 400,000 remained available to be sold under the 2024 Sales Agreement as of December 31, 2024. On July 24, 2024, the Company filed an automatically effective shelf registration statement that allows Lamar Advertising to offer and sell an indeterminate amount of additional shares of its Class A common stock. The shelf registration statement replaced a prior shelf registration statement which expired. As of December 31, 2024, the Company did not issue any shares under its shelf registration statements. The Company’s Board of Directors has authorized the repurchase of up to $ 250,000 of the Company’s Class A common stock. On September 24, 2024, the Board of Directors authorized the extension of the repurchase program through March 31, 2026. There were no repurchases under the program as of December 31, 2024. (15) Stock Compensation Plans Equity Incentive Plan. Lamar’s 1996 Equity Incentive Plan, as amended, (the “1996 Plan”) has reserved 17.5 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 and LTIP Unit programs. Options granted under the 1996 Plan expire ten years from the grant date with vesting terms ranging from three to five years which primarily includes 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. In February 2013, the 1996 Plan was amended to eliminate the provision that limited the amount of Class A common stock, including shares retained from an award, that could be withheld to satisfy tax withholding obligations to the minimum tax obligations required by law (except with respect to option awards). In accordance with ASC 718, Compensation – Stock Compensation , the Company is required to classify the awards affected by the amendment as liability-classified awards at fair value each period prior to their settlement. As of December 31, 2024 and 2023, the Company recorded a liability, in accrued expenses, of $ 16,404 and $ 7,936 , respectively, related to its equity incentive awards affected by this amendment. 74 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) 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 highly subjective assumptions, including expected term and expected volatility. We have reviewed our historical pattern of option exercises and have determined that meaningful differences in option exercise activity existed among vesting schedules. Therefore, for all stock options granted after January 1, 2006, we have categorized these awards into two groups of vesting 1) 5 -year cliff vest and 2) 4 -year graded vest, for valuation purposes. We have determined there were no meaningful differences in employee activity under our ESPP due to the nature of the plan. We estimate the expected term of options granted using an implied life derived from the results of a hypothetical mid-point settlement scenario, which incorporates our historical exercise, expiration and post-vesting employment termination patterns, while accommodating for partial life cycle effects. We believe these estimates will approximate future behavior. We estimate the expected volatility of our Class A common stock at the grant date using a blend of 90 % historical volatility of our Class A common stock and 10 % implied volatility of publicly traded options with maturities greater than six months on our Class A common stock as of the option grant date. Our decision to use a blend of historical and implied volatility was based upon the volume of actively traded options on our common stock and our belief that historical volatility alone may not be completely representative of future stock price trends. Our risk-free interest rate assumption is determined using the Federal Reserve nominal rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. We assumed an expected dividend yield of 5 %. We estimate option forfeitures at the time of grant and periodically revise those estimates in subsequent periods if actual forfeitures differ from those estimates. We record stock based compensation expense only for those awards expected to vest using an estimated forfeiture rate based on our historical forfeiture data. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used: Grant Year Dividend Yield Expected Volatility Risk Free Interest Rate Expected Lives 2024 5 % 45 % 4 % 6 2023 5 % 45 % 4 % 6 2022 5 % 45 % 2 % 6 Information regarding stock options under the 1996 Plan for the year ended December 31, 2024 is as follows: Shares Weighted Average Exercise Price Weighted Average Contractual Life Outstanding, beginning of year 391,015 $ 85.81 Granted 45,000 122.37 Exercised ( 112,575 ) 80.74 Forfeited — — Expired — — Outstanding, end of year 323,440 $ 92.67 6.32 Exercisable at end of year 211,640 $ 85.35 5.31 At December 31, 2024 there was $ 2,682 of unrecognized compensation cost related to stock options granted which is expected to be recognized over a weighted-average period of 1.70 years. Shares available for future stock option, LTIP Units and restricted share grants to employees and directors under existing plans were 1,463,374 at December 31, 2024. The aggregate intrinsic value of options outstanding as of December 31, 75 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) 2024 was $ 9,586 and the aggregate intrinsic value of options exercisable was $ 7,738 . Total intrinsic value of options exercised was $ 4,627 for the year ended December 31, 2024. Information regarding LTIP Units under the 1996 Plan for the year ended December 31, 2024 is as follows: Shares Weighted Average Grant Date Fair Value Outstanding, beginning of year 176,000 $ 95.50 Granted 120,000 117.29 Exercised — — Forfeited ( 35,200 ) 102.03 Outstanding, end of year 260,800 $ 104.64 Vested at end of year 140,800 $ 93.87 At December 31, 2024 there was $ 2,346 of unrecognized compensation cost related to LITP Units granted which is expected to be recognized in the first quarter of 2025. The fair value of LTIP Units granted and vested as of December 31, 2024 was $ 27,291 and $ 13,216 , respectively, based on the weighted average grant date fair value per unit. Stock Purchase Plan. On May 30, 2019, our shareholders approved Lamar Advertising’s 2019 Employee Stock Purchase Plan (the “2019 ESPP”). The number of shares of Class A common stock available for issuance under the 2019 ESPP was automatically increased by 87,645 shares on January 1, 2024 pursuant to the automatic increase provisions of the 2019 ESPP. The following is a summary of 2019 ESPP share activity for the year ended December 31, 2024: Shares Available for future purchases, January 1, 2024 242,292 Additional shares reserved under 2019 ESPP 87,645 Purchases ( 125,409 ) Available for future purchases, December 31, 2024 204,528 Performance-based compensation. Unrestricted shares of our Class A common stock may be awarded to key officers, employees and directors under our 1996 Plan based on certain Company performance measures for fiscal year 2024. The number of shares to be issued, if any, are generally dependent on the level of achievement of these performance measures as determined by the Company’s Compensation Committee based on our 2024 results and are issued in the first quarter of 2025. The shares subject to these awards generally can range from a minimum of 0 % to a maximum of 120 % of the target number of shares depending on the level at which the goals are attained. Under the 1996 Plan, the Company's Compensation Committee may also award additional shares in its discretion based on other factors, which awards, if any, for 2025, will also be issued in the first quarter of 2025. Based on the Company’s performance measures achieved through December 31, 2024, the Company recorded $ 24,711 , $ 11,677 and $ 11,545 as stock-based compensation expense related to these agreements for the years ended December 31, 2024, 2023 and 2022, respectively. LTIP Units. In addition to stock compensation, the Company may issue LTIP Units of the OP, a subsidiary of the Company, to certain officers, employees and directors under the 1996 Plan. Such LTIP Units are subject to vesting and forfeiture conditions based on performance criteria approved by the Compensation Committee, which generally mirrors the performance criteria applicable to the Company's performance-based compensation, as described above. The Compensation Committee may also make discretionary grants of LTIP Units based on other factors. LTIP Units are a class of units intended to qualify as "profits interests" of the OP. The LTIP Units convert into Common Units of the OP upon the occurrence of certain events. Common Units are redeemable by the holder for shares of the Company's Class A common stock after a holding period 76 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) of twelve months, or may be paid out in cash at the option of the general partner of the OP. As of December 31, 2024, the OP issued a total of 260,800 LTIP Units to the Company's executive officers, of which 140,800 LTIP units have vested. For the years ended December 31, 2024 and 2023, the Company recorded $ 13,996 and $ 5,347 , respectively, as stock-based compensation expense related to these LTIP Units. Restricted stock compensation . Annually, each non-employee director automatically receives a restricted stock award of our Class A common stock upon election or re-election. The awards vest 50 % on grant date and 50 % on the last day of the directors' one year term. For the years ended December 31, 2024 and 2023, the Company recorded $ 746 and $ 715 , respectively, in stock-based compensation expense related to these awards. (16) Benefit Plans The Company sponsors a partially self-insured group health insurance program. The Company is obligated to pay all claims under the program, which are in excess of premiums, up to program limits. The Company is also self-insured with respect to its income disability benefits and against casualty losses on advertising structures. Amounts for expected losses, including a provision for losses incurred but not reported, is included in accrued expenses in the accompanying consolidated financial statements. As of December 31, 2024 and 2023, the Company maintained $ 5,537 for both years in letters of credit with a bank to meet requirements of the Company’s worker’s compensation and general liability insurance carrier. Savings and Profit Sharing Plan The Company sponsors The Lamar Corporation Savings and Profit Sharing Plan covering eligible employees who have completed one year of service and are at least 21 years of age. The Company has the option to match 50 % of employees’ contributions up to 5 % of eligible compensation. Employees can contribute up to 100 % of compensation. Full vesting on the Company’s matched contributions occurs after three years for contributions made after January 1, 2002. Annually, at the Company’s discretion, an additional profit sharing contribution may be made on behalf of each eligible employee. The Company matched contributions of $ 8,130 , $ 7,265 and $ 6,780 for the years ended December 31, 2024, 2023 and 2022, respectively. Deferred Compensation Plan The Company sponsors a Deferred Compensation Plan for the benefit of certain of its board-elected officers who meet specific age and years of service and other criteria. Officers that have attained the age of 30 and have a minimum of 10 years of service to the Company and satisfy additional eligibility guidelines are eligible for annual contributions to the plan generally ranging from $ 3 to $ 8 , depending on the employee’s length of service. The Company’s contributions to the plan are maintained in a rabbi trust and, accordingly, the assets and liabilities of the plan are reflected in the balance sheet of the Company in other assets and other liabilities. Upon termination, death or disability, participating employees are eligible to receive an amount equal to the fair market value of the assets in the employee’s deferred compensation account. For the years ended December 31, 2024, 2023 and 2022, the Company contributed $ 2,223 , $ 1,880 and $ 1,637 , respectively. On December 8, 2005, the Company’s Board of Directors approved an amendment to the Lamar Deferred Compensation Plan in order to (1) to comply with the requirements of Section 409A of the Internal Revenue Code (“Section 409A”) applicable to deferred compensation and (2) to reflect changes in the administration of the plan. The Company’s Board of Directors also approved the adoption of a grantor trust pursuant to which amounts may be set aside, but remain subject to claims of the Company’s creditors, for payments of liabilities under the new plan, including amounts contributed under the old plan. The plan was further amended in August 2007 to make certain amendments to reflect Section 409A regulations issued on April 10, 2007. An additional clarifying amendment was made to the plan in December 2013. (17) Commitment and Contingencies Off balance sheet arrangements Our off balance sheet commitments consist of guaranteed minimum payments to local transit municipalities and airport authorities for agreements which entitle us to rent advertising space to customers, in airports and on buses, benches or shelters. Also included are other contractual agreements that occur in the ordinary course of business which do not meet the criteria of a lease under ASC 842. The following is a summary of the minimum payments related to these agreements. 77 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) 2025 $ 50,092 2026 $ 36,680 2027 $ 24,729 2028 $ 20,921 2029 $ 15,058 Thereafter $ 39,837 Legal matters The Company is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations, or liquidity. (18) 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 the senior credit facility. As of December 31, 2024 and 2023, 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 $ 4,677,837 and $ 4,438,406 , respectively. As of December 31, 2024, the senior credit facility allows Lamar Media 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 December 31, 2024, transfers to Lamar Advertising are permitted under the 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 7.0 to 1 and (ii) the secured debt ratio does not exceed 4.5 to 1. As of December 31, 2024 and 2023, the total debt ratio was less than 7.0 to 1 and Lamar Media’s secured debt ratio was less than 4.5 to 1, and the available cumulative credit was $ 3,428,317 and $ 3,188,886 , respectively. (19) Fair Value of Financial Instruments At December 31, 2024 and 2023, the Company’s financial instruments included cash and cash equivalents, marketable securities, accounts receivable, investments, accounts payable and borrowings. The fair values of cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings and current portion of long-term debt approximated carrying values because of the short-term nature of these instruments. Investments and initial recognition of asset retirement obligations 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 $ 3,057,776 , which is less than both the gross and carrying amount of $ 3,234,301 as of December 31, 2024. 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). (20) Information about Geographic Areas Revenues from external customers attributable to foreign countries totaled $ 36,465 , $ 30,568 and $ 29,465 for the years ended December 31, 2024, 2023 and 2022, respectively. Net carrying value of long-lived assets located in foreign countries totaled $ 13,972 and $ 13,930 as of December 31, 2024 and 2023, respectively. All other revenues from external customers and long-lived assets relate to domestic operations. (21) Segment Reporting The Company revised its segment information to reflect the adoption of ASU 2023-07 and certain changes resulting from our periodic review of factors relevant to how the chief operating decision maker (CODM) assesses performance and allocates resources in accordance with FASB ASC 280, Segment Reporting. As described in Note 1, we currently manage our 78 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) operations through three operating segments - billboard, logo, and transit advertising. Logo and transit advertising do not meet the criteria to be reportable segments, and accordingly, are included in Other. We define the term CODM to be our executive management group, which consists of our Executive Chairman, President and Chief Executive Officer, and Chief Financial Officer. Net revenues, advertising expenses and segmented adjusted EBITDA are used to monitor expected versus actual results. Total advertising expenses is the expense category regularly provided to the CODM. There are no other expenses regularly provided to the CODM that are used to manage the segment's operations. Total advertising expenses is defined as direct advertising expenses and general and administrative expenses excluding stock-based compensation expense and capitalized contract fulfillment costs. Segment Adjusted EBITDA is the profitability metric reported to the Company's CODM for purposes of assessing the performance of each operating segment as well as to make decisions related to invested capital, personnel, operational improvement or training, or to allocate other company resources. We define adjusted EBITDA as net income before income tax (expense) benefit, interest (expense) income, equity in (loss) earnings of investee, (loss) gain on extinguishment of debt and investments, stock-based compensation, depreciation and amortization, (loss) gain on disposition of assets and investments, transaction expenses and capitalized contract fulfillment costs, net. Segment information for total assets is not presented as this information is not used by the Company’s CODM in measuring segment performance or allocating resources between segments. The following table presents our financial performance by segment: 2024 2023 2022 Net revenues: Billboard $ 1,956,176 $ 1,877,823 $ 1,813,995 Other 250,927 233,164 218,145 Total net revenues $ 2,207,103 $ 2,110,987 $ 2,032,140 Advertising expenses: Billboard $ 870,629 $ 852,912 $ 829,287 Other 200,790 176,985 174,702 Total advertising expenses $ 1,071,419 $ 1,029,897 $ 1,003,989 Segmented adjusted EBITDA: Billboard adjusted EBITDA $ 1,085,547 $ 1,024,911 $ 984,708 Other adjusted EBITDA 50,137 56,179 43,443 Corporate expenses (a) ( 102,526 ) ( 95,366 ) ( 90,072 ) Adjusted EBITDA $ 1,033,158 $ 985,724 $ 938,079 (a) Corporate operations are not an operating segment. Corporate expenses include expenses related to infrastructure and support, including information technology, human resources, legal, finance and administrative functions of the Company, as well as overall executive, administrative and support functions. 79 Table of Contents LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) Reconciliation of adjusted EBITDA to income before income tax expense: 2024 2023 2022 Adjusted EBITDA $ 1,033,158 $ 985,724 $ 938,079 Stock-based compensation expense ( 44,525 ) ( 22,649 ) ( 23,136 ) Capitalized contract fulfillment costs, net 317 308 555 Depreciation and amortization ( 462,967 ) ( 293,423 ) ( 349,449 ) Gain on disposition of assets 6,057 5,474 15,721 Equity in earnings of investee 5,094 3,696 4,315 Interest expense, net ( 169,394 ) ( 172,397 ) ( 126,217 ) Loss on debt extinguishment ( 270 ) ( 115 ) — Transaction expenses — — ( 3,769 ) Income before income tax expense $ 367,470 $ 506,618 $ 456,099 (22) New Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures , which requires companies to disclose significant segment expenses and other segment items that impact each reported measure of segment income or loss. This guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company has adopted this guidance effective for the year ended December 31, 2024. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires companies to disclose disaggregated information related to the effective tax rate reconciliation and income taxes paid. This guidance is effective for public entities for fiscal years beginning after December 15, 2024. We do not anticipate the adoption of this guidance will have a material impact on the Company's consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses , which requires disclosures about specific types of expenses included in expense captions presented on the face of the Consolidated Statement of Income and Comprehensive Income. This guidance is effective for public entities for fiscal years beginning after December 15, 2026. The Company is currently reviewing this guidance and its impact on the Company's consolidated financial statements. (23) Subsequent Event On February 3, 2025 T-Mobile USA, Inc. acquired 100 % of Vistar (the "Sale"). In connection with the closing of the Sale, the Company received $ 115,112 in cash as consideration for the sale of its 20 % equity interest in Vistar. Up to an additional $ 15,086 of consideration for the Sale may be received by the Company in the future, upon release of the remaining purchase price for the Sale from escrow in connection with satisfaction of certain post-closing conditions. The Company expects to recognize an initial gain of approximately $ 68,000 related to the transaction, and will account for any amounts to be received in the future as contingent gains, to be recognized upon receipt of such cash amounts. 80 Table of Contents SCHEDULE II LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Valuation and Qualifying Accounts Years Ended December 31, 2024, 2023 and 2022 (In thousands) Balance at Beginning of Year Charged to Costs and Expenses Deductions Balance at End of Year Year ended December 31, 2024 Deducted in balance sheet from trade accounts receivable: Allowance for doubtful accounts $ 12,477 8,770 8,843 $ 12,404 Deducted in balance sheet from deferred tax assets: Valuation allowance $ 5,333 — 1,931 $ 3,402 Year ended December 31, 2023 Deducted in balance sheet from trade accounts receivable: Allowance for doubtful accounts $ 11,418 12,737 11,678 $ 12,477 Deducted in balance sheet from deferred tax assets: Valuation allowance $ 4,435 898 — $ 5,333 Year ended December 31, 2022 Deducted in balance sheet from trade accounts receivable: Allowance for doubtful accounts $ 11,195 9,013 8,790 $ 11,418 Deducted in balance sheet from deferred tax assets: Valuation allowance $ 19,433 — 14,998 $ 4,435 81 Table of Contents SCHEDULE III LAMAR ADVERTISING COMPANY AND SUBSIDIARIES Schedule of Real Estate and Accumulated Depreciation December 31, 2024, 2023 and 2022 (In thousands) Description (1) Encumbrances Initial Cost (2) Gross Carrying Amount (3) Accumulated Depreciation Construction Date Acquisition Date Useful Lives 360,487 Displays — — $ 4,170,086 $ ( 2,797,682 ) Various Various 5 to 20 years (1) No single asset exceeded 5 % of the total gross carrying amount at December 31, 2024 (2) This information is omitted, as it would be impracticable to compile such information on a site-by-site basis (3) Includes sites under construction The following table summarizes activity for the Company’s real estate assets, which consists of advertising displays and the related accumulated depreciation. December 31, 2024 December 31, 2023 December 31, 2022 Gross real estate assets: Balance at the beginning of the year $ 3,883,556 $ 3,745,006 $ 3,439,618 Capital expenditures on new advertising displays (4) 34,030 80,241 85,972 Capital expenditures on improvements/redevelopments of new/existing advertising displays 24,762 26,127 23,850 Capital expenditures other recurring (5) 253,950 42,703 141,030 Land acquisitions (6) 8,719 24,064 31,061 Acquisition of advertising displays (7) 3,153 9,285 64,223 Assets sold or written-off ( 35,777 ) ( 44,442 ) ( 39,149 ) Foreign exchange ( 2,307 ) 572 ( 1,599 ) Balance at the end of the year $ 4,170,086 $ 3,883,556 $ 3,745,006 Accumulated depreciation: Balance at the beginning of the year $ 2,529,560 $ 2,440,956 $ 2,287,590 Depreciation 300,855 124,072 185,820 Assets sold or written-off ( 31,469 ) ( 35,791 ) ( 31,514 ) Foreign exchange ( 1,264 ) 323 ( 940 ) Balance at the end of the year $ 2,797,682 $ 2,529,560 $ 2,440,956 (4) Includes non-cash amounts of $ 377 , $ 1,138 and $ 2,367 at December 31, 2024, 2023 and 2022, respectively (5) Includes non-cash amounts of $ 211,246 , $ 1,186 and $ 103,019 at December 31, 2024, 2023 and 2022, respectively, related to the revision in cost estimate included in the calculation of asset retirement obligations (6) Includes preliminary allocation of assets acquired during 2022 (7) Includes non-cash amounts of $ 72 , $ 3,052 and $ 11,132 at December 31, 2024, 2023 and 2022, respectively 82 Table of Contents LAMAR MEDIA CORP. AND SUBSIDIARIES Management’s Report on Internal Control Over Financial Reporting 84 Report of Independent Registered Public Accounting Firm — Opinion on Internal Control Over Financial Reporting ( KPMG LLP , Baton Rouge, LA , Audit Firm ID: 185 ) 85 Report of Independent Registered Public Accounting Firm — Opinion on the Consolidated Financial Statements ( KPMG LLP , Baton Rouge, LA , Audit Firm ID: 185 ) 86 Consolidated Balance Sheets as of December 31, 2023 and 2022 88 Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 202 4 , 202 3 and 20 2 2 89 Consolidated Statements of Stockholder’s Equity for the years ended December 31, 202 4 , 202 3 and 20 2 2 90 Consolidated Statements of Cash Flows for the years ended December 31, 202 4 , 202 3 and 20 2 2 91 Notes to Consolidated Financial Statements 92 Schedule II — Valuation and Qualifying Accounts for the years ended December 31, 202 4 , 202 3 and 20 2 2 99 Schedule III — Schedule of Real Estate and Accumulated Depreciation as of December 31, 202 4 , 202 3 and 20 2 2 100 83 Table of Contents Management’s Report on Internal Control Over Financial Reporting The management of Lamar Media Corp. is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act. Lamar Media Corp.’s management assessed the effectiveness of Lamar Media Corp.’s internal control over financial reporting as of December 31, 2024. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (2013) . Based on this assessment, Lamar Media Corp.’s management has concluded that, as of December 31, 2024, Lamar Media Corp.’s internal control over financial reporting is effective based on those criteria. The effectiveness of Lamar Media Corp.’s internal control over financial reporting as of December 31, 2024 has been audited by KPMG LLP, an independent registered public accounting firm, as stated in their report, which is included in Item 8 to this Annual Report. 84 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholder and Board of Directors Lamar Media Corp.: Opinion on Internal Control Over Financial Reporting We have audited Lamar Media Corp. and subsidiaries' (the Company) internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2024 and 2023, the related consolidated statements of income and comprehensive income, stockholder’s equity, and cash flows for each of the years in the three-year period ended December 31, 2024, and the related notes and financial statement schedules II to III (collectively, the consolidated financial statements), and our report dated February 20, 2025 expressed an unqualified opinion on those consolidated financial statements. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed 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. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ KPMG LLP KPMG LLP Baton Rouge, Louisiana February 20, 2025 85 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholder and Board of Directors Lamar Media Corp.: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Lamar Media Corp. and subsidiaries (the Company) as of December 31, 2024 and 2023, the related consolidated statements of income and comprehensive income, stockholder’s equity, and cash flows for each of the years in the three-year period ended December 31, 2024, and the related notes and financial statement schedules II to III (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 20, 2025 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Assessment of the accounting lease term for the portfolio of billboard land leases As discussed in Note 1 to the consolidated financial statements, which refers to Note 7 to the consolidated financial statements of Lamar Advertising Company, a lessee determines the lease term at the commencement date by identifying the non-cancellable period of the lease and then adding any periods for which it is reasonably certain to exercise a renewal option (or not to exercise a termination option). The Company has approximately 71,500 billboard land leases for which they determined the lease term using a portfolio approach, in accordance with which the negotiated stated initial lease term for each billboard land lease was concluded to be the lease term under Accounting Standards Codification Topic 842, Leases (ASC 842). We identified the assessment of the lease term for the portfolio of billboard land leases, which affects the discount rate for the lease as well as the measurement of the lease liability and right of use asset, as a critical audit matter. In the Company’s billboard land leases, the Company typically has both unilateral renewal and termination options. Determining the lease term involved a high degree of subjectivity as to whether the lease term should or should not include renewal periods (including periods after an optional termination date), the evaluation of which required subjective auditor judgment. The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s billboard land lease process, including controls 86 Table of Contents related to the qualifications and experience of individuals negotiating the stated initial lease term, reconciliation of inputs into the system, approval of billboard land lease contracts, and annual evaluation of the renewals and terminations exercised by the Company during the year. We evaluated the competence, capabilities, and objectivity of the Company’s real estate team that negotiates the lease terms and conditions, and whether the team considers economic factors that are consistent with those enumerated in ASC 842 when negotiating the stated initial lease term and associated renewal and termination options. We inspected the Company’s assessment and conclusion about using the portfolio approach for its billboard land leases. We tested a sample of the Company’s billboard land lease population and obtained underlying documentation to evaluate whether the leases entered into are similar in terms of the lease agreement creation process, purpose for the lease (i.e. to host a Company billboard), and lease term considerations. We assessed the impact of billboard land leases with early terminations and renewals beyond the stated initial term to evaluate the Company’s assertion that use of the stated initial lease term as the lease term for its billboard land leases on a portfolio basis was appropriate. /s/ KPMG LLP KPMG LLP We have served as the Company’s auditor since 1992. Baton Rouge, Louisiana February 20, 2025 87 Table of Contents LAMAR MEDIA CORP. AND SUBSIDIARIES Consolidated Balance Sheets December 31, 2024 and 2023 (In thousands, except share and per share data) 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 48,961 $ 44,105 Receivables, net of allowance for doubtful accounts of $ 12,404 and $ 12,477 as of 2024 and 2023, respectively 334,798 301,189 Other current assets 41,009 27,392 Total current assets 424,768 372,686 Property, plant and equipment 4,574,894 4,274,831 Less accumulated depreciation and amortization ( 2,974,085 ) ( 2,708,361 ) Net property, plant and equipment 1,600,809 1,566,470 Operating lease right of use assets 1,355,231 1,315,433 Financing lease right of use assets 8,331 11,184 Goodwill (note 3) 2,024,931 2,025,119 Intangible assets, net (note 3) 1,062,133 1,170,967 Other assets 93,604 85,021 Total assets $ 6,569,807 $ 6,546,880 LIABILITIES AND STOCKHOLDER’S EQUITY Current liabilities: Trade accounts payable $ 21,586 $ 18,238 Current maturities of long-term debt, net of deferred financing costs of $ 611 and $ 380 in 2024 and 2023, respectively (note 5) 249,806 250,018 Current operating lease liabilities 218,108 210,568 Current financing lease liabilities 1,331 1,331 Accrued expenses (note 4) 123,282 97,464 Deferred income 153,700 126,547 Total current liabilities 767,813 704,166 Long-term debt, net of deferred financing costs of $ 22,826 and $ 28,865 in 2024 and 2023, respectively (note 5) 2,961,058 3,091,109 Operating lease liabilities 1,114,407 1,075,285 Financing lease liabilities 13,283 14,614 Deferred income tax liabilities 8,006 12,047 Asset retirement obligation 614,713 397,991 Other liabilities 48,588 41,891 Total liabilities 5,527,868 5,337,103 Stockholder’s equity: Common stock, $ 0.01 par value, authorized 3,000 shares; 100 shares issued and outstanding at 2024 and 2023 — — Additional paid-in-capital 3,229,799 3,173,789 Accumulated comprehensive loss ( 2,954 ) ( 428 ) Accumulated deficit ( 2,185,755 ) ( 1,963,998 ) Non-controlling interest 849 414 Stockholder’s equity 1,041,939 1,209,777 Total liabilities and stockholder’s equity $ 6,569,807 $ 6,546,880 See accompanying notes to consolidated financial statements. 88 Table of Contents LAMAR MEDIA CORP. AND SUBSIDIARIES Consolidated Statements of Income and Comprehensive Income Years Ended December 31, 2024, 2023 and 2022 (In thousands) 2024 2023 2022 Statements of Income Net revenues $ 2,207,103 $ 2,110,987 $ 2,032,140 Operating expenses (income): Direct advertising expenses (exclusive of depreciation and amortization) 727,875 696,799 667,288 General and administrative expenses (exclusive of depreciation and amortization) 361,133 344,780 350,623 Corporate expenses (exclusive of depreciation and amortization) 128,577 105,528 101,998 Depreciation and amortization 462,967 293,423 349,449 Gain on disposition of assets ( 6,057 ) ( 5,474 ) ( 15,721 ) 1,674,495 1,435,056 1,453,637 Operating income 532,608 675,931 578,503 Other expense (income): Loss on extinguishment of debt 270 115 — Interest income ( 2,315 ) ( 2,115 ) ( 1,293 ) Interest expense 171,709 174,512 127,510 Equity in earnings of investee ( 5,094 ) ( 3,696 ) ( 4,315 ) 164,570 168,816 121,902 Income before income tax expense 368,038 507,115 456,601 Income tax expense 4,531 9,782 17,452 Net income 363,507 497,333 439,149 Earnings attributable to non-controlling interest 1,072 1,073 — Net income attributable to controlling interest $ 362,435 $ 496,260 $ 439,149 Statements of Comprehensive Income Net income $ 363,507 $ 497,333 $ 439,149 Other comprehensive (loss) income, net of tax Foreign currency translation adjustments ( 2,526 ) 231 ( 1,514 ) Comprehensive income 360,981 497,564 437,635 Earnings attributable to non-controlling interest 1,072 1,073 — Comprehensive income attributable to controlling interest $ 359,909 $ 496,491 $ 437,635 See accompanying notes to consolidated financial statements. 89 Table of Contents LAMAR MEDIA CORP. AND SUBSIDIARIES Consolidated Statements of Stockholder’s Equity Years Ended December 31, 2024, 2023 and 2022 (In thousands, except share and per share data) Common Stock Additional Paid-In Capital Accumulated Comprehensive Income (Loss) Accumulated Deficit Non-controlling Interest Total Balance, December 31, 2021 $ — 3,071,905 855 ( 1,864,414 ) — 1,208,346 Contribution from parent — 60,273 — — — 60,273 Foreign currency translations — — ( 1,514 ) — — ( 1,514 ) Net income — — — 439,149 — 439,149 Dividend to parent — — — ( 518,753 ) — ( 518,753 ) Balance, December 31, 2022 $ — 3,132,178 ( 659 ) ( 1,944,018 ) — 1,187,501 Contribution from parent — 42,627 — — — 42,627 Reallocation of capital — ( 1,016 ) — — 397 ( 619 ) Foreign currency translations — — 231 — — 231 Net income — — — 496,260 1,073 497,333 Dividend to parent — — — ( 516,240 ) ( 1,056 ) ( 517,296 ) Balance, December 31, 2023 $ — 3,173,789 ( 428 ) ( 1,963,998 ) 414 1,209,777 Contribution from parent — 57,028 — — — 57,028 Reallocation of capital — ( 1,018 ) — — 1,018 — Foreign currency translations — — ( 2,526 ) — — ( 2,526 ) Net income — — — 362,435 1,072 363,507 Dividend to parent — — — ( 584,192 ) ( 1,655 ) ( 585,847 ) Balance, December 31, 2024 $ — 3,229,799 ( 2,954 ) ( 2,185,755 ) 849 1,041,939 See accompanying notes to consolidated financial statements. 90 Table of Contents LAMAR MEDIA CORP. AND SUBSIDIARIES Consolidated Statements of Cash Flows Years Ended December 31, 2024, 2023 and 2022 (In thousands) 2024 2023 2022 Cash flows from operating activities: Net income $ 363,507 $ 497,333 $ 439,149 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 462,967 293,423 349,449 Non-cash compensation 44,525 22,649 23,136 Amortization included in interest expense 6,332 6,538 6,158 Gain on disposition of assets and investments ( 6,057 ) ( 5,474 ) ( 15,721 ) Loss on extinguishment of debt 270 115 — Equity in earnings of investee ( 5,094 ) ( 3,696 ) ( 4,315 ) Deferred income tax expense ( 4,036 ) 2,384 3,212 Provision for doubtful accounts 8,770 12,737 9,013 Changes in operating assets and liabilities: (Increase) decrease in: Receivables ( 43,000 ) ( 28,744 ) ( 22,511 ) Prepaid expenses ( 2,656 ) 1,087 ( 906 ) Other assets ( 7,424 ) ( 3,363 ) 2,711 Increase (decrease) in: Trade accounts payable 3,262 ( 307 ) 1,176 Accrued expenses 18,902 ( 1,708 ) ( 10,773 ) Operating lease liabilities 7,498 2,490 7,198 Other liabilities ( 10,567 ) ( 39,154 ) ( 47,110 ) Cash flows provided by operating activities 837,199 756,310 739,866 Cash flows from investing activities: Capital expenditures ( 125,284 ) ( 178,271 ) ( 167,078 ) Acquisitions ( 45,393 ) ( 138,961 ) ( 479,766 ) Decrease in notes receivable 65 62 12,124 Proceeds from disposition of assets 5,706 7,051 15,649 Cash flows used in investing activities ( 164,906 ) ( 310,119 ) ( 619,071 ) Cash flows from financing activities: Proceeds received from revolving credit facility 783,000 403,000 445,000 Payments on revolving credit facility ( 569,000 ) ( 378,000 ) ( 575,000 ) Principal payments on long-term debt ( 400 ) ( 381 ) ( 365 ) Principal payments on financing leases ( 1,331 ) ( 1,331 ) ( 1,331 ) Proceeds received from senior credit facility term loans — — 350,000 Proceeds received from accounts receivable securitization program 86,400 114,900 265,000 Payments on accounts receivable securitization program ( 86,400 ) ( 114,900 ) ( 190,000 ) Debt issuance costs ( 464 ) ( 2,951 ) ( 1,583 ) Payment on senior credit facility term loans ( 350,000 ) — — Distributions to non-controlling interest ( 1,655 ) ( 1,056 ) ( 814 ) Dividends to parent ( 584,192 ) ( 516,240 ) ( 518,753 ) Contributions from parent 57,028 42,627 60,273 Cash flows used in financing activities ( 667,014 ) ( 454,332 ) ( 167,573 ) Effect of exchange rate changes in cash and cash equivalents ( 423 ) 127 ( 391 ) Net increase (decrease) in cash and cash equivalents 4,856 ( 8,014 ) ( 47,169 ) Cash and cash equivalents at beginning of year 44,105 52,119 99,288 Cash and cash equivalents at end of year $ 48,961 $ 44,105 $ 52,119 Supplemental disclosures of cash flow information: Cash paid for interest $ 165,827 $ 168,011 $ 120,000 Cash paid for state and federal income taxes $ 8,505 $ 11,432 $ 16,325 See accompanying notes to consolidated financial statements. 91 Table of Contents LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) (1) Description of the Business and Significant Accounting Policies (a) Nature of Business Lamar Media Corp. (“Lamar Media”) is a wholly owned subsidiary of Lamar Advertising Company. Lamar Media is engaged in the outdoor advertising business operating approximately 159,000 outdoor advertising displays in 45 states and Canada. Lamar Media’s operating strategy is to be the leading provider of outdoor advertising services in the markets it serves. In addition, Lamar Media operates a logo sign business in 23 states throughout the United States as well as the province of Ontario, Canada. Logo signs are erected pursuant to state-awarded service contracts on public rights-of-way near highway exits and deliver brand name information on available gas, food, lodging and camping services. Included in the Company’s logo sign business are tourism signing contracts. The Company provides transit advertising in airport terminals, on bus shelters, benches and buses in the markets it serves. On July 1, 2022, Lamar Media entered into the Amended and Restated Limited Partnership Agreement (the "Partnership Agreement") of Lamar Advertising Limited Partnership (the "OP") as the initial limited partner, along with its wholly owned subsidiary, Lamar Advertising General Partner, LLC, as the general partner of the OP (the "General Partner"). Lamar Media formed the OP and contributed all of its assets to the OP in connection with the Company's reorganization (the "Reorganization") as a specific type of REIT known as an Umbrella Partnership Real Estate Investment Trust ("UPREIT"). The Company completed the Reorganization to facilitate tax-deferred contributions of properties to the OP in exchange for limited partnership interests in the OP. The Reorganization did not have a material impact on our consolidated financial statements. Certain footnotes are not provided for the accompanying financial statements as the information in notes 2, 3, 5, 7, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 22, and 23 and portions of note 1 to the consolidated financial statements of Lamar Advertising Company included elsewhere in this filing are substantially equivalent to that required for the consolidated financial statements of Lamar Media Corp. Earnings per share data is not provided for the operating results of Lamar Media Corp. as it is a wholly owned subsidiary of Lamar Advertising Company. (b) Principles of Consolidation The accompanying consolidated financial statements include Lamar Media, its subsidiary, Lamar Advertising Limited Partnership, and Lamar Advertising Limited Partnerships' wholly owned subsidiaries, The Lamar Company, L.L.C., Lamar Central Outdoor, LLC, Lamar TRS Holdings, LLC, Lamar Advertising Southwest, LLC, Interstate Logos, L.L.C., Lamar Obie Company, LLC, Lamar Canadian Outdoor Company, Lamar QRS Receivables, LLC, Fairway Media Group, LCC, Ashby Street Outdoor Holdings, LLC, SkyHigh Murals - Colossal Media, LLC and their majority-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. (2) Non-cash Financing and Investing Activities For the years ended December 31, 2024 and 2022, the Company had non-cash investing activities that resulted in an increase to the asset retirement obligation balance and the carrying value of the related property, plant and equipment in the amount of $ 215,899 and $ 110,321 , respectively, related to the revision in estimate of the Company's asset retirement obligation. For the years ended December 31, 2024, 2023 and 2022, there were non-cash investing and financing activities for the recognition of ROU assets and lease liabilities at lease commencement as disclosed in Note 7, "Leases". 92 Table of Contents LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) (3) Goodwill and Other Intangible Assets The following is a summary of intangible assets at December 31, 2024 and 2023: Estimated Life (Years) 2024 2023 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizable Intangible Assets: Customer lists and contracts 7 — 10 $ 732,098 $ 665,095 $ 731,156 $ 640,635 Non-competition agreement 3 — 15 71,960 66,894 71,960 66,455 Site locations 15 2,982,504 2,002,272 2,955,324 1,891,078 Other 2 — 15 52,215 42,383 52,033 41,338 $ 3,838,777 $ 2,776,644 $ 3,810,473 $ 2,639,506 Unamortizable Intangible Assets: Goodwill $ 2,277,597 $ 252,666 $ 2,277,786 $ 252,667 The changes in the gross carrying amount of goodwill for the years ended December 31, 2024 and 2023 are as follows: Balance as of December 31, 2022 $ 2,277,784 Purchase price adjustments and other 2 Balance as of December 31, 2023 2,277,786 Purchase price adjustments and other ( 189 ) Balance as of December 31, 2024 $ 2,277,597 (4) Accrued Expenses The following is a summary of accrued expenses at December 31, 2024 and 2023: 2024 2023 Payroll $ 27,871 $ 21,903 Interest 22,837 23,322 Insurance benefits 10,972 10,801 Accrued variable lease and contract expense 34,416 30,375 Non-cash compensation 16,404 7,936 Other 10,782 3,127 $ 123,282 $ 97,464 93 Table of Contents LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) (5) Long-term Debt Long-term debt consists of the following at December 31, 2024 and 2023: December 31, 2024 Debt Deferred financing costs Debt, net of deferred financing costs Senior Credit Facility $ 883,474 $ 5,623 $ 877,851 Accounts Receivable Securitization Program 250,000 611 249,389 3 3/4% Senior Notes 600,000 3,802 596,198 3 5/8% Senior Notes 550,000 5,440 544,560 4% Senior Notes 549,595 4,854 544,741 4 7/8% Senior Notes 400,000 3,107 396,893 Other notes with various rates and terms 1,232 — 1,232 3,234,301 23,437 3,210,864 Less current maturities ( 250,417 ) ( 611 ) ( 249,806 ) Long-term debt, excluding current maturities $ 2,983,884 $ 22,826 $ 2,961,058 December 31, 2023 Debt Deferred financing costs Debt, net of deferred financing costs Senior Credit Facility $ 1,019,222 $ 8,266 $ 1,010,956 Accounts Receivable Securitization Program 250,000 380 249,620 3 3/4% Senior Notes 600,000 4,923 595,077 3 5/8% Senior Notes 550,000 6,226 543,774 4% Senior Notes 549,516 5,675 543,841 4 7/8% Senior Notes 400,000 3,775 396,225 Other notes with various rates and terms 1,634 — 1,634 3,370,372 29,245 3,341,127 Less current maturities ( 250,398 ) ( 380 ) ( 250,018 ) Long-term debt, excluding current maturities $ 3,119,974 $ 28,865 $ 3,091,109 Long-term debt contractual maturities are as follows: Debt Deferred financing costs Debt, net of deferred financing costs 2025 $ 417 $ — $ 417 2026 $ 442 $ — $ 442 2027 $ 849,820 $ 3,044 $ 846,776 2028 $ 884,000 $ 6,993 $ 877,007 2029 $ 400,000 $ 3,107 $ 396,893 Later years $ 1,099,622 $ 10,293 $ 1,089,329 94 Table of Contents LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) (6) Related Party Transactions Affiliates, as used within these statements, are persons or entities that are affiliated with Lamar Media Corp. or its subsidiaries through common ownership and directorate control. As of December 31, 2024 and 2023, there was a payable to Lamar Advertising Company, its parent, in the amount of $ 77 and $ 1,009 , respectively. Effective December 31, 2024 and 2023, Lamar Advertising Company contributed $ 57,028 and $ 42,627 , respectively, to Lamar Media which resulted in an increase in Lamar Media’s additional paid-in capita l. 95 Table of Contents LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) (7) Summarized Financial Information of Subsidiaries Summarized financial information for Lamar Media, subsidiary guarantors and non-guarantor subsidiaries is 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 summarized financial information. The following summarized financial information should be read in conjunction with the accompanying consolidated financial statements and notes. Separate financial statements of Lamar Media’s subsidiary guarantors are not included because the guarantors are each a consolidated subsidiary of Lamar Media, Lamar Media’s consolidated financial statements have been filed, and the guaranteed securities are debt securities with Lamar Media as the issuer. The accounts for all companies reflected herein are presented using the equity method of accounting for investments in subsidiaries. Summarized Balance Sheet as of December 31, 2024 Lamar Media Corp. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Lamar Media Consolidated Current assets $ 38,950 $ 52,617 $ 333,201 $ — $ 424,768 Noncurrent assets 4,302,475 6,368,402 297,831 ( 4,823,669 ) 6,145,039 Current liabilities 50,707 444,841 272,265 — 767,813 Noncurrent liabilities 3,249,628 1,738,404 384,695 ( 612,672 ) 4,760,055 Non-controlling interest — 1,770 ( 921 ) — 849 Summarized Balance Sheet as of December 31, 2023 Lamar Media Corp. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Lamar Media Consolidated Current assets $ 33,875 $ 28,905 $ 309,906 $ — $ 372,686 Noncurrent assets 4,596,516 6,359,236 318,095 ( 5,099,653 ) 6,174,194 Current liabilities 45,225 387,408 271,533 — 704,166 Noncurrent liabilities 3,375,803 1,476,097 368,208 ( 587,171 ) 4,632,937 Non-controlling interest — 964 ( 550 ) — 414 96 Table of Contents LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) Summarized Statements of Income and Comprehensive Income for the Year Ended December 31, 2024 Lamar Media Corp. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Lamar Media Consolidated Net revenues $ — $ 2,159,755 $ 49,840 $ ( 2,492 ) $ 2,207,103 Operating expenses (income) — 1,626,780 50,207 ( 2,492 ) 1,674,495 Operating income (loss) — 532,975 ( 367 ) — 532,608 Net income (loss) 362,435 530,522 ( 10,804 ) ( 518,646 ) 363,507 Net income (loss) attributable to controlling interest $ 362,435 $ 529,937 $ ( 11,291 ) $ ( 518,646 ) $ 362,435 Summarized Statements of Income and Comprehensive Income for the Year Ended December 31, 2023 Lamar Media Corp. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Lamar Media Consolidated Net revenues $ — $ 2,069,600 $ 44,068 $ ( 2,681 ) $ 2,110,987 Operating expenses (income) — 1,392,389 45,348 ( 2,681 ) 1,435,056 Operating income (loss) — 677,211 ( 1,280 ) — 675,931 Net income (loss) 496,260 673,330 ( 16,393 ) ( 655,864 ) 497,333 Net income (loss) attributable to controlling interest $ 496,260 $ 672,943 $ ( 17,079 ) $ ( 655,864 ) $ 496,260 Summarized Statements of Income and Comprehensive Income for the Year Ended December 31, 2022 Lamar Media Corp. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Lamar Media Consolidated Net revenues $ — $ 1,992,900 $ 41,789 $ ( 2,549 ) $ 2,032,140 Operating expenses (income) — 1,425,150 31,036 ( 2,549 ) 1,453,637 Operating income (loss) — 567,750 10,753 — 578,503 Net income (loss) 439,149 561,626 ( 81 ) ( 561,545 ) 439,149 Net income (loss) attributable to controlling interest $ 439,149 $ 561,626 $ ( 81 ) $ ( 561,545 ) $ 439,149 97 Table of Contents LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share and per share data) (8) Segment Reporting The following table presents our financial performance by segment: 2024 2023 2022 Net revenues: Billboard $ 1,956,176 $ 1,877,823 $ 1,813,995 Other 250,927 233,164 218,145 Total net revenues $ 2,207,103 $ 2,110,987 $ 2,032,140 Advertising expenses: Billboard $ 870,629 $ 852,912 $ 829,287 Other 200,790 176,985 174,702 Total advertising expenses $ 1,071,419 $ 1,029,897 $ 1,003,989 Adjusted EBITDA: Billboard adjusted EBITDA $ 1,085,547 $ 1,024,911 $ 984,708 Other adjusted EBITDA 50,137 56,179 43,443 Corporate expenses (a) ( 101,958 ) ( 94,869 ) ( 89,570 ) Adjusted EBITDA $ 1,033,726 $ 986,221 $ 938,581 (a) Corporate operations are not an operating segment. Corporate expenses include expenses related to infrastructure and support, including information technology, human resources, legal, finance and administrative functions of the Company, as well as overall executive, administrative and support functions. Reconciliation of adjusted EBITDA to income before income tax expense: 2024 2023 2022 Adjusted EBITDA $ 1,033,726 $ 986,221 $ 938,581 Non-cash compensation expense ( 44,525 ) ( 22,649 ) ( 23,136 ) Capitalized contract fulfillment costs, net 317 308 555 Depreciation and amortization ( 462,967 ) ( 293,423 ) ( 349,449 ) Gain on disposition of assets 6,057 5,474 15,721 Equity in earnings of investee 5,094 3,696 4,315 Interest expense, net ( 169,394 ) ( 172,397 ) ( 126,217 ) Loss on debt extinguishment ( 270 ) ( 115 ) — Transaction expenses — — ( 3,769 ) Income before income tax expense $ 368,038 $ 507,115 $ 456,601 98 Table of Contents SCHEDULE II LAMAR MEDIA CORP. AND SUBSIDIARIES Valuation and Qualifying Accounts Years Ended December 31, 2024, 2023 and 2022 (In thousands) Balance at Beginning of Year Charged to Costs and Expenses Deductions Balance at End of Year Year ended December 31, 2024 Deducted in balance sheet from trade accounts receivable: Allowance for doubtful accounts $ 12,477 8,770 8,843 $ 12,404 Deducted in balance sheet from deferred tax assets: Valuation allowance $ 5,333 — 1,931 $ 3,402 Year ended December 31, 2023 Deducted in balance sheet from trade accounts receivable: Allowance for doubtful accounts $ 11,418 12,737 11,678 $ 12,477 Deducted in balance sheet from deferred tax assets: Valuation allowance $ 4,435 898 — $ 5,333 Year ended December 31, 2022 Deducted in balance sheet from trade accounts receivable: Allowance for doubtful accounts $ 11,195 9,013 8,790 $ 11,418 Deducted in balance sheet from deferred tax assets: Valuation allowance $ 19,433 — 14,998 $ 4,435 99 Table of Contents SCHEDULE III LAMAR MEDIA CORP. AND SUBSIDIARIES Schedule of Real Estate and Accumulated Depreciation December 31, 2024, 2023 and 2022 (In thousands) Description (1) Encumbrances Initial Cost (2) Gross Carrying Amount (3) Accumulated Depreciation Construction Date Acquisition Date Useful Lives 360,487 Displays — — $ 4,170,086 $ ( 2,797,682 ) Various Various 5 to 20 years (1) No single asset exceeded 5 % of the total gross carrying amount at December 31, 2024 (2) This information is omitted, as it would be impracticable to compile such information on a site-by-site basis (3) Includes sites under construction The following table summarizes activity for the Company’s real estate assets, which consists of advertising displays and the related accumulated depreciation. December 31, 2024 December 31, 2023 December 31, 2022 Gross real estate assets: Balance at the beginning of the year $ 3,883,556 $ 3,745,006 $ 3,439,618 Capital expenditures on new advertising displays (4) 34,030 80,241 85,972 Capital expenditures on improvements/redevelopments of new/existing advertising displays 24,762 26,127 23,850 Capital expenditures other recurring (5) 253,950 42,703 141,030 Land acquisitions (6) 8,719 24,064 31,061 Acquisition of advertising displays (7) 3,153 9,285 64,223 Assets sold or written-off ( 35,777 ) ( 44,442 ) ( 39,149 ) Foreign exchange ( 2,307 ) 572 ( 1,599 ) Balance at the end of the year $ 4,170,086 $ 3,883,556 $ 3,745,006 Accumulated depreciation: Balance at the beginning of the year $ 2,529,560 $ 2,440,956 $ 2,287,590 Depreciation 300,855 124,072 185,820 Assets sold or written-off ( 31,469 ) ( 35,791 ) ( 31,514 ) Foreign exchange ( 1,264 ) 323 ( 940 ) Balance at the end of the year $ 2,797,682 $ 2,529,560 $ 2,440,956 (4) Includes non-cash amounts of $ 377 , $ 1,138 and $ 2,367 at December 31, 2024, 2023 and 2022, respectively (5) Includes non-cash amounts of $ 211,246 , $ 1,186 and $ 103,019 at December 31, 2024, 2023 and 2022, respectively, related to the revision in cost estimate included in the calculation of asset retirement obligations (6) Includes preliminary allocation of assets acquired during 2022 (7) Includes non-cash amounts of $ 72 , $ 3,052 and $ 11,132 at December 31, 2024, 2023 and 2022, respectively 100 Table of Contents ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE Lamar Advertising Company None. Lamar Media Corp. None.