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Subsequent Events

6 Months Ended

Jun. 30, 2012

Subsequent Events [Abstract]

Subsequent Events

11. Subsequent Events

On July 2, 2012, the company completed an acquisition of outdoor advertising assets for a total purchase price of $38,512 in cash.

On July 30, 2012, the Company provided notice of its intent to redeem in full all $122,760 of its 6 5/8% Senior Subordinated Notes due 2015 at a redemption price equal to 101.104% of the principal amount outstanding, plus accrued and unpaid interest to, but not including, the redemption date of August 29, 2012. The redemption price will be due and payable on the redemption date upon surrender of the 6 5/8% Senior Subordinated Notes due 2015 in accordance with the terms of the indenture governing the notes. Following the redemption, Lamar Media will have approximately $137,217 in aggregate principle amount of its 6 5/8% Senior Subordinated Notes due 2015 – Series B and 6 5/8% Senior Subordinated Notes due 2015 – Series C outstanding.

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share data)

		June 30, 2012				December 31, 2011
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	98,422			$	33,377
Receivables, net of allowance for doubtful accounts of $7,600 and $7,500 in 2012 and 2011, respectively.			159,538				147,436
Prepaid expenses			59,068				39,514
Deferred income tax assets			9,267				9,812
Other current assets			34,006				26,578
Total current assets			360,301				256,717
Property, plant and equipment			2,885,659				2,860,592
Less accumulated depreciation and amortization			(1,728,949	)			(1,666,975	)
Net property, plant and equipment			1,156,710				1,193,617
Goodwill			1,418,018				1,416,696
Intangible assets			435,244				476,376
Deferred financing costs net of accumulated amortization of $17,409 and $18,899 in 2012 and 2011, respectively			37,735				32,455
Other assets			34,379				33,689
Total assets		$	3,442,387			$	3,409,550
LIABILITIES AND STOCKHOLDER’S EQUITY
Current liabilities:
Trade accounts payable		$	11,949			$	12,663
Current maturities of long-term debt			157,972				17,310
Accrued expenses			86,442				93,315
Deferred income			50,596				36,717
Total current liabilities			306,959				160,005
Long-term debt			2,031,742				2,141,218
Deferred income tax liabilities			115,304				125,462
Asset retirement obligation			183,336				180,662
Other liabilities			14,779				12,814
Total liabilities			2,652,120				2,620,161
Stockholder’s equity:
Common stock, par value $.01, 3,000 shares authorized, 100 shares issued and outstanding at 2012 and 2011			—				—
Additional paid-in-capital			2,590,246				2,579,318
Accumulated comprehensive income			5,222				5,326
Accumulated deficit			(1,805,201	)			(1,795,255	)
Stockholder’s equity			790,267				789,389
Total liabilities and stockholder’s equity		$	3,442,387			$	3,409,550

See accompanying note to condensed consolidated financial statements.

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(Unaudited)

(In thousands, except share and per share data)

		Three months ended June 30,								Six months ended June 30,
		2012				2011				2012				2011
Net revenues		$	304,872			$	293,345			$	571,110			$	548,547
Operating expenses (income)
Direct advertising expenses (exclusive of depreciation and amortization)			105,071				103,058				208,494				202,609
General and administrative expenses (exclusive of depreciation and amortization)			52,027				48,572				105,122				99,639
Corporate expenses (exclusive of depreciation and amortization)			13,850				10,671				26,247				22,150
Depreciation and amortization			72,995				72,410				145,368				146,283
Gain on disposition of assets			(3,634	)			(911	)			(4,570	)			(7,358	)
			240,309				233,800				480,661				463,323
Operating income			64,563				59,545				90,449				85,224
Other expense (income)
Loss on extinguishment of debt			—				—				29,972				—
Interest income			(65	)			(51	)			(123	)			(83	)
Interest expense			38,633				43,307				78,547				86,927
			38,568				43,256				108,396				86,844
Income (loss) before income tax expense			25,995				16,289				(17,947	)			(1,620	)
Income tax expense (benefit)			12,003				4,853				(9,114	)			108
Net income (loss)		$	13,992			$	11,436			$	(8,833	)		$	(1,728	)
Statement of Comprehensive Income (Loss)
Net income (loss)		$	13,992			$	11,436			$	(8,833	)		$	(1,728	)
Other comprehensive income
Foreign currency translation adjustments			(785	)			(334	)			(104	)			401
Comprehensive income (loss)		$	13,207			$	11,102			$	(8,937	)		$	(1,327	)

See accompanying note to condensed consolidated financial statements.

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

		Six months ended June 30,
		2012				2011
Cash flows from operating activities:
Net loss		$	(8,833	)		$	(1,728	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			145,368				146,283
Non-cash equity based compensation			7,033				4,678
Amortization included in interest expense			8,771				9,141
Gain on disposition of assets			(4,570	)			(7,358	)
Loss on extinguishment of debt			29,972				—
Deferred tax benefit			(9,897	)			(1,106	)
Provision for doubtful accounts			2,740				2,716
Changes in operating assets and liabilities:
(Increase) decrease in:
Receivables			(14,828	)			(17,008	)
Prepaid expenses			(18,275	)			(18,535	)
Other assets			(5,538	)			317
Increase (decrease) in:
Trade accounts payable			(1,211	)			(523	)
Accrued expenses			(8,310	)			(7,771	)
Other liabilities			4,291				(721	)
Net cash provided by operating activities			126,713				108,385
Cash flows from investing activities:
Acquisitions			(14,305	)			(9,181	)
Capital expenditures			(49,542	)			(54,653	)
Proceeds from disposition of assets			4,640				9,293
Payment received on notes receivable			113				180
Net cash used in investing activities			(59,094	)			(54,361	)
Cash flows from financing activities:
Principal payments on long-term debt			(46	)			(128,441	)
Payment on senior subordinated notes			(598,181	)			—
Proceeds received from note offering			500,000				—
Proceeds received from senior credit agreement term loan			100,000				—
Debt issuance costs			(14,104	)			—
Contributions from parent			10,928				7,463
Dividend to parent			(1,113	)			(3,481	)
Net cash used in financing activities			(2,516	)			(124,459	)
Effect of exchange rate changes in cash and cash equivalents			(58	)			224
Net decrease in cash and cash equivalents			65,045				(70,211	)
Cash and cash equivalents at beginning of period			33,377				88,565
Cash and cash equivalents at end of period		$	98,422			$	18,354
Supplemental disclosures of cash flow information:
Cash paid for interest		$	72,779			$	77,812
Cash paid for foreign, state and federal income taxes		$	1,533			$	1,069

See accompanying note to condensed consolidated financial statements.

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Note to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

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The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.

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