Lamar Advertising Company

In the course of this discussion, Lamar may make forward-looking statements regarding the company, including statements about its future financial performance, strategic goals, plans and objectives, including with respect to the amount and timing of any distributions to stockholders and the impacts and effects of general economic conditions, including inflationary pressures on the company's business, financial condition, and results of operations. All forward-looking statements involve risks uncertainties, and contingencies, many of which are beyond Lamar's control and which may cause actual results to differ materially from anticipated results. Lamar has identified important factors that could cause actual results to differ materially from those discussed in this call in the company's third quarter 2025 earnings release and its most recent annual report on Form 10-K. Lamar refers you to those documents. Lamar's third quarter 2025 earnings release, which contains information regarding Regulation G regarding certain non-GAAP financial measures, was furnished to the SEC on a Form 8K this morning and is available on the Investors section of Lamar's website, www.lamar.com. I would now like to turn the conference over to Sean Riley. Mr. Riley, you may begin.

Thank you, Katie. Good morning, all, and welcome to Lamar's Q3 2025 earnings call. For the third quarter, we delivered solid operating results, with consolidated revenue growth improving to 2.9% on an acquisition-adjusted basis, led by national slash programmatic, which had its strongest period of growth since Q2 of 2022. On the local level, a cautious vibe still prevails, and as a result, Q3 looked a lot like the rest of 2025 has, with year-over-year growth in the low single digits. As we noted in the release, we are pacing to reach our previously provided guidance for full year AFFO per share. That is despite difficult political comps in October, which we knew would be a headwind. Our pacings for November and December are encouraging, as are our conversations thus far with customers about 2026, which for a variety of reasons we believe sets up to be a good year. So far, our pacings bear that optimism out. Back to Q3. Categories of strength included services, healthcare and financial, while beverages and real estate were weaker, as was our government slash nonprofit category, which has been hampered by some of the uncertainty emanating from Washington, D.C. National and programmatic led the way, with growth of 5.5%, while local was plus 1.6%. Insurance was very strong, and we benefited from our largest ever pharmaceutical buy, which launched towards the back end of Q3 and extends through most of Q4 and includes both analog and digital inventory. Our experience with that campaign has provided valuable insights into the data that we need to deliver to help pharma customers make their buying decisions, and we are hopeful that pharma will continue to be a growth vertical for us. As we have discussed before, national can be a bit lumpy, and we had a lot of political that came our way through national channels in Q4 of 2024. As a result, national is likely to be flattish in Q4 2025. Ex-political, however, national should be up nicely in Q4, and we do like what we're hearing about 2026 from national buyers. Our digital platform continues to be very popular with both local and national advertisers. For the quarter, digital billing grew 5%, including 3.4% on the same store basis, and represents today about 31% of our billboard billing. We now have more than 5,400 digital billboard faces across 155 Lamar markets. On the M&A front, the integration of the Verde assets, which we acquired in an up-brief transaction in early July, the first ever in the out-of-home space, is going very well. We closed another 18 purchases for nearly $47 million in Q3, bringing the year-to-date cash spend to nearly $134 million at the end of September. For the full year acquisition spend, excluding Verde, it's likely to be north of $175 million. Including Verde, we'll end the year spending plus or minus $300 million on accretive transactions. Overall, I'm pleased with how resilient the business is proving to be in a period of fairly significant macroeconomic uncertainty, and I am confident that we will finish 2025 successfully and carry momentum into 2026. With that, I will turn it over to Jay to walk you through more numbers, including our successful capital market transactions at the end of Q3. Jay?

Thanks, Sean. Good morning, everyone, and thank you for joining us. We continue to experience positive momentum in our portfolio during the third quarter. Acquisition adjusted revenue increased 2.9 percent from the same period last year, accelerating 100 basis points over the second quarter. Our billboard regions all grew in the low single-digit range led by the Atlantic and Northeast, which improved 3.8% and 3.3% respectively. Our airport and logos divisions also outpaced the broader portfolio, with airport growing 5.8%, followed by logos, which increased 5.2%. Acquisition adjusted operating expenses increased 3.7% in the third quarter, including one-time severance costs associated with termination of our Vancouver transit contract on July 31st, as well as increased costs from phase two of our technology implementation. These items accounted for approximately 125 basis points of expense growth over the comparable period in 2024, and were both included in our revised guidance in August. We still anticipate four-year acquisition adjusted operating expense growth in the 2.5 to 2.75 percent range. Adjusted EBITDA for the quarter is $280.8 million, compared to $271.2 million in 2024, which was an increase of 3.5%. On an acquisition-adjusted basis, adjusted EBITDA increased 2%. Despite the growth in operating expenses, adjusted EBITDA margin for the quarter remained strong at 48%, essentially flat year over year. Adjusted funds from operations totaled $226.5 million in the third quarter, compared to $220.7 million last year, an increase of 2.6%. Diluted AFFO per share increased 2.3% to $2.20 versus $2.15 in the third quarter of 2024. Local and regional sales accounted for approximately 78% of billboard revenue in Q3, growing for the 18th consecutive quarter. Q1 of 2021, a COVID-impacted quarter, was the last in which we saw a year-over-year decline in local and regional sales. This consistent performance exhibits the resilience of our core local advertising business and differentiates the company from our peer group. On the capital expenditure front, total spend for the quarter was approximately $50 million, including $13.9 million of maintenance CapEx. Through the first three quarters of the year, CapEx totaled $118 million, $37 million of which was maintenance. And for the full year, we anticipate total CapEx of $180 million, with maintenance comprising $60 million. We ended the quarter with total leverage of three times net debt to EBITDA, as defined under our credit facility, which remains amongst the lowest level ever for the company. Our secured debt leverage improved to 0.65 times, and we're comfortably in compliance with both our total debt incurrence and secured debt maintenance test against covenants of seven times and 4.5 times, respectively. For the full year, we expect total leverage to remain at three times, with secured leverage consistent as well below one times net debt to EBITDA. Lamar continues to enjoy access to both the debt and equity capital markets. During the quarter, we took significant steps to further improve our industry-leading balance sheet, raising a total of $1.1 billion. With the positive market backdrop, we opportunistically refinanced the company's $600 million term loan B due February of 2027, which was our nearest term maturity. The offering was well received, and given the demand, we upsized the transaction to $700 million. In addition, we were able to maintain a spread of 150 basis points over SOFR, which remains the lowest-priced term loan bid in the market. Following the successful launch of the term loan, we accessed the high-yield bond market with a new $400 million senior notes offering. The bond deal was oversubscribed, allowing us to achieve the lowest-ever spread to treasuries for an eight-year in the high-yield market with a coupon of 5.38%. We are extremely pleased with both capital markets' transactions, which extend our maturity profile and significantly enhance liquidity. Excess proceeds were used to repay outstandings under the company's revolving credit facility and AR securitization. As of September 30th, we had $834 million in total liquidity, comprised of approximately $22 million of cash on hand $742 million available under our revolving credit facility and $70 million available on the AR securitization. At quarter end, there were no borrowings outstanding on the revolver and $180 million outstanding under the AR securitization program. We had approximately $3.4 billion in total consolidated debt and our weighted average interest rate was 4.6% with a weighted average debt maturity of approximately five years. As a result of the focus on our balance sheet, the company is well positioned with an investment capacity well over $1 billion. In addition, we have the ability to deploy this capital while remaining at or below the high end of our target leverage range of 3.5 to 4 times net debt to EBITDA. This morning, we affirmed our four-year guidance and expect AFSO to finish the year between $8.10 and $8.20 per diluted share. Cash interest in our guidance totals $152 million and assumes SOFR remains flat for the balance of the year. As I touched on earlier, maintenance capex is budgeted for $60 million and cash taxes are projected to come in around $10 million, which excludes any taxes related to disposition of our interest in VISTAR media. And finally, our dividend. We paid a cash dividend of $1.55 per share in each of the first three quarters this year. Management's recommendation will be to declare a regular cash dividend of $1.55 per share for the fourth quarter as well. This recommendation is subject to Board approval, and we will communicate the Board's decision next month. The company's dividend policy remains to distribute 100% of our taxable income, and for the full year, we expect to distribute a regular dividend of $6.20 per share, excluding any required distribution resulting from the VSTAR sale. Again, we are pleased with our financial position and strong balance sheet, which we view as an asset and competitive advantage in the out-of-home industry. I will now turn the call back over to Sean.