2. Summarized Financial Information of Subsidiaries

In the filing of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, which was originally filed with the SEC on May 5, 2016, we omitted certain required disclosures under SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered. Accordingly, we have revised our financial statement footnotes to correct this immaterial error of omission and include the information presented below. This revision was determined to be immaterial to the financial statements previously presented.

Separate condensed consolidating financial information for Lamar Media, subsidiary guarantors and non-guarantor subsidiaries are 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 condensed consolidating financial information. The following condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and notes. The condensed consolidating financial information is provided as an alternative to providing separate financial statements for guarantor subsidiaries. Separate financial statements of Lamar Media’s subsidiary guarantors are not included because the guarantees are full and unconditional and the subsidiary guarantors are 100% owned and jointly and severally liable for Lamar Media’s outstanding publicly issued notes. The accounts for all companies reflected herein are presented using the equity method of accounting for investments in subsidiaries.


Condensed Consolidating Balance Sheet as of March 31, 2016 (unaudited, in thousands)
	Lamar Media Corp.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Lamar Media Consolidated
ASSETS
Total current assets	$	11,213	$	284,991	$	30,553	$	—		$	326,757
Net property, plant and equipment		—		1,144,605		22,443		—			1,167,048
Intangibles and goodwill, net		—		2,316,372		34,465		—			2,350,837
Other assets		3,481,600		11,776		312		(3,460,224	)		33,464

Total assets	$	3,492,813	$	3,757,744	$	87,773	$	(3,460,224	)	$	3,878,106

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt	$	17,856	$	—	$	—	$	—		$	17,856
Other current liabilities		26,061		150,370		20,011		—			196,442

Total current liabilities		43,917		150,370		20,011		—			214,298

Long-term debt		2,420,294		—		—		—			2,420,294
Other noncurrent liabilities		21,314		214,285		56,645		(56,018	)		236,226

Total liabilities		2,485,525		364,655		76,656		(56,018	)		2,870,818

Stockholders’ equity		1,007,288		3,393,089		11,117		(3,404,206	)		1,007,288

Total liabilities and stockholders’ equity	$	3,492,813	$	3,757,744	$	87,773	$	(3,460,224	)	$	3,878,106

Condensed Consolidating Balance Sheet as of December 31, 2015 (in thousands)
	Lamar Media Corp.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Lamar Media Consolidated
ASSETS
Total current assets	$	6,086	$	245,685	$	29,461	$	—		$	281,232
Net property, plant and equipment		—		1,072,595		22,542		—			1,095,137
Intangibles and goodwill, net		—		1,904,096		34,765		—			1,938,861
Other assets		2,943,826		11,451		535		(2,923,702	)		32,110

Total assets	$	2,949,912	$	3,233,827	$	87,303	$	(2,923,702	)	$	3,347,340

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt	$	16,509	$	—	$	—	$	—		$	16,509
Other current liabilities		29,268		163,955		22,618		—			215,841

Total current liabilities		45,777		163,955		22,618		—			232,350

Long-term debt		1,876,895		—		—		—			1,876,895
Other noncurrent liabilities		20,059		210,233		53,659		(53,037	)		230,914

Total liabilities		1,942,731		374,188		76,277		(53,037	)		2,340,159

Stockholders’ equity		1,007,181		2,859,639		11,026		(2,870,665	)		1,007,181

Total liabilities and stockholders’ equity	$	2,949,912	$	3,233,827	$	87,303	$	(2,923,702	)	$	3,347,340

Condensed Consolidating Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2016

(unaudited, in thousands)


	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income
Net revenues	$	—		$	327,578		$	11,835		$	(880	)	$	338,533
Direct advertising expenses ⁽¹⁾		—			121,889			7,396			(560	)		128,725
General and administrative expenses ⁽¹⁾		—			63,999			2,791			—			66,790
Corporate expenses ⁽¹⁾		—			15,648			285			—			15,933
Depreciation and amortization		—			49,689			1,800			—			51,489
Gain on disposition of assets		—			(11,560	)		233			—			(11,327	)

Operating income (loss)		—			87,913			(670	)		(320	)		86,923

Equity in (earnings) loss of subsidiaries		(84,610	)		—			—			84,610			—
Interest expense (income), net		30,061			(1	)		327			(320	)		30,067
Other expenses		3,142			—			—			—			3,142

Income before income tax expense		51,407			87,914			(997	)		(84,610	)		53,714
Income tax expense ⁽²⁾		—			1,926			381			—			2,307

Net income (loss)	$	51,407		$	85,988		$	(1,378	)	$	(84,610	)	$	51,407

Statement of Comprehensive Income
Net income (loss)	$	51,407		$	85,988		$	(1,378	)	$	(84,610	)	$	51,407
Total other comprehensive income, net of tax		—			—			1,468			—			1,468

Total comprehensive income (loss)	$	51,407		$	85,988		$	90		$	(84,610	)	$	52,875

⁽¹⁾	Caption is exclusive of depreciation and amortization.

⁽²⁾	The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries.

Condensed Consolidating Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2015

(unaudited, in thousands)


	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income
Net revenues	$	—		$	292,582		$	10,541		$	(646	)	$	302,477
Direct advertising expenses ⁽¹⁾		—			107,282			6,343			(393	)		113,232
General and administrative expenses ⁽¹⁾		—			57,162			2,044			—			59,206
Corporate expenses ⁽¹⁾		—			15,038			265			—			15,303
Depreciation and amortization		—			47,274			1,956			—			49,230
Gain on disposition of assets		—			(1,836	)		—			—			(1,836	)

Operating income (loss)		—			67,662			(67	)		(253	)		67,342

Equity in (earnings) loss of subsidiaries		(65,334	)		—			—			65,334			—
Interest expense (income), net		24,530			(2	)		255			(253	)		24,530

Income before income tax expense		40,804			67,664			(322	)		(65,334	)		42,812
Income tax expense (benefit) ⁽²⁾		—			2,019			(11	)		—			2,008

Net income (loss)	$	40,804		$	65,645		$	(311	)	$	(65,334	)	$	40,804

Statement of Comprehensive Income
Net income (loss)	$	40,804		$	65,645		$	(311	)	$	(65,334	)	$	40,804
Total other comprehensive loss, net of tax		—			—			(1,610	)		—			(1,610	)

Total comprehensive income (loss)	$	40,804		$	65,645		$	(1,921	)	$	(65,334	)	$	39,194

⁽¹⁾	Caption is exclusive of depreciation and amortization.

⁽²⁾	The income tax expense (benefit) reflected in each column does not include any tax effect of the equity in earnings from subsidiaries.

Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2016

(unaudited, in thousands)


	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	20,748		$	69,183		$	(2,771	)	$	(53,975	)	$	33,185

Cash flows from investing activities:
Acquisitions		—			(502,138	)		—			—			(502,138	)
Capital expenditures		—			(20,123	)		(496	)		—			(20,619	)
Proceeds from disposition of assets and investments		—			5,196			—			—			5,196
Investment in subsidiaries		(502,138	)		—			—			502,138			—
(Increase) decrease in intercompany notes receivable		(2,946	)		—			—			2,946			—
Decrease in notes receivable		8			—			—			—			8

Net cash used in investing activities		(505,076	)		(517,065	)		(496	)		505,084			(517,553	)

Cash flows from financing activities:
Proceeds received from revolving credit facility		280,000			—			—			—			280,000
Payment on revolving credit facility		(125,000	)		—			—			—			(125,000	)
Principal payments on long-term debt		(3,755	)		—			—			—			(3,755	)
Proceeds received from senior credit facility		300,000			—			—			—			300,000
Debt issuance costs		(9,017	)		—			—			—			(9,017	)
Proceeds received from note offering		400,000			—			—			—			400,000
Payment on senior credit facility		(300,000	)		—			—			—			(300,000	)
Intercompany loan proceeds		—			—			2,946			(2,946	)		—
Distributions to non-controlling interest		—			—			(105	)		—			(105	)
Dividends to parent		(78,938	)		(53,975	)		—			53,975			(78,938	)
Contributions from (to) parent		26,170			502,138			—			(502,138	)		26,170

Net cash provided by financing activities		489,460			448,163			2,841			(451,109	)		489,355

Effect of exchange rate changes in cash and cash equivalents		—			—			1,106			—			1,106

Net increase (decrease) in cash and cash equivalents		5,132			281			680			—			6,093
Cash and cash equivalents at beginning of period		4,955			454			16,418			—			21,827

Cash and cash equivalents at end of period	$	10,087		$	735		$	17,098		$	—		$	27,920

Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2015 (unaudited, in thousands)
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	14,745		$	68,783		$	(481	)	$	(44,906	)	$	38,141

Cash flows from investing activities:
Acquisitions		—			(19,647	)		—			—			(19,647	)
Capital expenditures		—			(28,066	)		(975	)		—			(29,041	)
Proceeds from disposition of assets and investments		—			4,414			—			—			4,414
Investment in subsidiaries		(19,647	)		—			—			19,647			—
(Increase) decrease in intercompany notes receivable		(970	)		—			—			970			—
(Increase) decrease in notes receivable		(7	)		11			—			—			4

Net cash used in investing activities		(20,624	)		(43,288	)		(975	)		20,617			(44,270	)

Cash flows from financing activities:
Proceeds received from revolving credit facility		92,000			—			—			—			92,000
Payment on revolving credit facility		(35,000	)		—			—			—			(35,000	)
Principal payments on long-term debt		(3,755	)		—			—			—			(3,755	)
Intercompany loan proceeds		—			—			970			(970	)		—
Distributions to non-controlling interest		—			—			(180	)		—			(180	)
Dividends to parent		(71,322	)		(44,906	)		—			44,906			(71,322	)
Contributions from (to) parent		32,028			19,647			—			(19,647	)		32,028

Net cash provided by (used in) financing activities		13,951			(25,259	)		790			24,289			13,771

Effect of exchange rate changes in cash and cash equivalents		—			—			(1,131	)		—			(1,131	)

Net increase (decrease) in cash and cash equivalents		8,072			236			(1,797	)		—			6,511
Cash and cash equivalents at beginning of period		10,689			480			14,366			—			25,535

Cash and cash equivalents at end of period	$	18,761		$	716		$	12,569		$	—		$	32,046