Lamar Advertising Company

I'm just curious your high level thoughts on how you see it. I think there is something secular going on in terms of what's happening to our competitors out there in other local media. For example, what's going on clearly with radio, what's going on with print, and what is increasingly going on with local network affiliate television. Some of that is coming our way as they experience a drop in their audience. Some of their spend is coming our way. What we're also increasingly hearing from advertisers, and I think you're hearing this from our peers at Outfront and Clear Channel as well, Digital ad spend, while it's still the gorilla in the room, there is some disaffection with what's going on in what many people believe is the vast wasteland of what's going on with the panoply of digital products out there. And so some advertisers are coming to us in the out-of-home world because they know exactly what they're getting. There's no bot fraud. There's no chance that they're going to show up in a place that they don't want to be. And they're increasingly getting comfortable with our ability to track results when they spend with us. So it's all good out there. For out of home, you heard this from out front. Yesterday, you saw it in the Clear Channel numbers. and a rising tide is lifting all boats because we're feeling it as well. Got it.

That's great. And then just secondly, Sean and Jay, I'd be curious what the latest is on your cost savings initiatives. And is this the year we might see the 48% margin?

We're going to be close. I don't know that we're going to get all the way to 48%, but we will set a record and we should be at least a point better than last year. So we've successfully gone through phase one of our enterprise software and upgrades, mostly back office and financial and with some savings accompanying those efforts. We're somewhat hitting the pause button on phase two. We've had some wins that are going to result in some cost savings in out years. But as you're hearing from other companies, the sands are shifting around software deployment and options for functionality. So we're evaluating those things and what we're seeing out there are some More elegant and more cost-effective ways to get the functionality we're looking for. So on some of those cost savings, it's a stay tuned. Maybe not a get to 48% this year, but quite possibly in 27 or 28. I would say probably. Great. Thanks, Sean.