Summarized Financial Information of Subsidiaries

9 Months Ended

Sep. 30, 2020

LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]

Summarized Financial Information of Subsidiaries

2. Summarized Financial Information of Subsidiaries

Separate condensed consolidating 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 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.

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Balance Sheet as of September 30, 2020


	Lamar Media Corp.		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Lamar Media Consolidated
	(unaudited)
ASSETS
Total current assets	$	60,374	$	27,270	$	231,639	$	—		$	319,283
Net property, plant and equipment		—		1,284,158		10,225		—			1,294,383
Operating lease right of use assets		—		1,240,402		24,679		—			1,265,081
Intangibles and goodwill, net		—		2,813,473		17,801		—			2,831,274
Other assets		3,950,549		224,809		132,337		(4,256,048	)		51,647
Total assets	$	4,010,923	$	5,590,112	$	416,681	$	(4,256,048	)	$	5,761,668
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt	$	—	$	9,124	$	121,944	$	—		$	131,068
Current operating lease liabilities		—		166,848		9,300		—			176,148
Other current liabilities		19,326		163,890		14,873		—			198,089
Total current liabilities		19,326		339,862		146,117		—			505,305
Long-term debt		2,830,649		2,471		—		—			2,833,120
Operating lease liabilities		—		1,018,197		14,338		—			1,032,535
Other noncurrent liabilities		32,031		227,552		250,930		(248,722	)		261,791
Total liabilities		2,882,006		1,588,082		411,385		(248,722	)		4,632,751
Stockholders’ equity		1,128,917		4,002,030		5,296		(4,007,326	)		1,128,917
Total liabilities and stockholders’ equity	$	4,010,923	$	5,590,112	$	416,681	$	(4,256,048	)	$	5,761,668

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Balance Sheet as of December 31, 2019


	Lamar Media Corp.		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Lamar Media Consolidated
ASSETS
Total current assets	$	13,859	$	53,756	$	242,054	$	—		$	309,669
Net property, plant and equipment		—		1,340,675		8,440		—			1,349,115
Operating lease right of use assets		—		1,293,674		27,105		—			1,320,779
Intangibles and goodwill, net		—		2,875,644		18,255		—			2,893,899
Other assets		4,193,629		229,905		184,805		(4,557,380	)		50,959
Total assets	$	4,207,488	$	5,793,654	$	480,659	$	(4,557,380	)	$	5,924,421
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt	$	51,480	$	34	$	175,000	$	—		$	226,514
Current operating lease liabilities		—		189,071		7,770		—			196,841
Other current liabilities		26,960		196,689		19,845		—			243,494
Total current liabilities		78,440		385,794		202,615		—			666,849
Long-term debt		2,753,570		34		—		—			2,753,604
Operating lease liabilities		—		1,049,220		18,961		—			1,068,181
Other noncurrent liabilities		205,947		231,416		250,859		(421,966	)		266,256
Total liabilities		3,037,957		1,666,464		472,435		(421,966	)		4,754,890
Stockholder’s equity		1,169,531		4,127,190		8,224		(4,135,414	)		1,169,531
Total liabilities and stockholder’s equity	$	4,207,488	$	5,793,654	$	480,659	$	(4,557,380	)	$	5,924,421

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Statements of Income and Comprehensive Income for the Three Months Ended September 30, 2020

	Lamar Media Corp.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income	(unaudited)
Net revenues	$	—		$	378,652		$	7,825		$	(367	)	$	386,110
Operating expenses
Direct advertising expenses ⁽¹⁾		—			130,496			6,180			(367	)		136,309
General and administrative expenses ⁽¹⁾		—			65,340			1,409			—			66,749
Corporate expenses ⁽¹⁾		—			16,918			211			—			17,129
Depreciation and amortization		—			60,751			486			—			61,237
Gain on disposition of assets		—			(1,304	)		—			—			(1,304	)
		—			272,201			8,286			(367	)		280,120
Operating income (loss)		—			106,451			(461	)		—			105,990
Equity in (earnings) loss of subsidiaries		(104,769	)		—			—			104,769			—
Loss on extinguishment of debt		7,051			—			—			—			7,051
Interest expense (income), net		34,823			(92	)		89			—			34,820
Income (loss) before income tax expense (benefit)		62,895			106,543			(550	)		(104,769	)		64,119
Income tax expense (benefit) ⁽²⁾		—			1,449			(225	)		—			1,224
Net income (loss)	$	62,895		$	105,094		$	(325	)	$	(104,769	)	$	62,895

Statement of Comprehensive Income
Net income (loss)	$	62,895		$	105,094		$	(325	)	$	(104,769	)	$	62,895
Total other comprehensive income, net of tax		—			—			330			—			330
Total comprehensive income (loss)	$	62,895		$	105,094		$	5		$	(104,769	)	$	63,225

(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.

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Statements of Income and Comprehensive Income for the Three Months Ended September 30, 2019

	Lamar Media Corp.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income	(unaudited)
Net revenues	$	—		$	446,838		$	11,539		$	(591	)	$	457,786
Operating expenses
Direct advertising expenses ⁽¹⁾		—			142,412			7,025			(591	)		148,846
General and administrative expenses ⁽¹⁾		—			78,470			2,091			—			80,561
Corporate expenses ⁽¹⁾		—			22,645			417			—			23,062
Depreciation and amortization		—			63,033			918			—			63,951
Gain on disposition of assets		—			(185	)		(14	)		—			(199	)
		—			306,375			10,437			(591	)		316,221
Operating income		—			140,463			1,102			—			141,565
Equity in (earnings) loss of subsidiaries		(136,714	)		—			—			136,714			—
Interest expense (income), net		36,882			(7	)		1,280			—			38,155
Income (loss) before income tax expense		99,832			140,470			(178	)		(136,714	)		103,410
Income tax expense ⁽²⁾		—			3,255			323			—			3,578
Net income (loss)	$	99,832		$	137,215		$	(501	)	$	(136,714	)	$	99,832

Statement of Comprehensive Income
Net income (loss)	$	99,832		$	137,215		$	(501	)	$	(136,714	)	$	99,832
Total other comprehensive loss, net of tax		—			—			(174	)		—			(174	)
Total comprehensive income (loss)	$	99,832		$	137,215		$	(675	)	$	(136,714	)	$	99,658

(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.

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Statements of Income and Comprehensive Income for the Nine Months Ended September 30, 2020

	Lamar Media Corp.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income	(unaudited)
Net revenues	$	—		$	1,116,947		$	24,514		$	(1,130	)	$	1,140,331
Operating expenses
Direct advertising expenses ⁽¹⁾		—			402,033			18,959			(1,130	)		419,862
General and administrative expenses ⁽¹⁾		—			211,090			5,271			—			216,361
Corporate expenses ⁽¹⁾		—			51,526			615			—			52,141
Depreciation and amortization		—			186,201			1,347			—			187,548
(Gain) loss on disposition of assets		—			(4,878	)		55			—			(4,823	)
		—			845,972			26,247			(1,130	)		871,089
Operating income (loss)		—			270,975			(1,733	)		—			269,242
Equity in (earnings) loss of subsidiaries		(265,353	)		—			—			265,353			—
Loss on extinguishment of debt		25,235			—			—			—			25,235
Interest expense (income), net		105,072			(151	)		1,520			—			106,441
Income (loss) before income tax expense (benefit)		135,046			271,126			(3,253	)		(265,353	)		137,566
Income tax expense (benefit) ⁽²⁾		—			3,373			(853	)		—			2,520
Net income (loss)	$	135,046		$	267,753		$	(2,400	)	$	(265,353	)	$	135,046

Statement of Comprehensive Income
Net income (loss)	$	135,046		$	267,753		$	(2,400	)	$	(265,353	)	$	135,046
Total other comprehensive loss, net of tax		—			—			(528	)		—			(528	)
Total comprehensive income (loss)	$	135,046		$	267,753		$	(2,928	)	$	(265,353	)	$	134,518

(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.

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Statements of Income and Comprehensive Income for the Nine Months Ended September 30, 2019

	Lamar Media Corp.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income	(unaudited)
Net revenues	$	—		$	1,258,493		$	34,563		$	(2,071	)	$	1,290,985
Operating expenses
Direct advertising expenses ⁽¹⁾		—			417,271			20,506			(2,071	)		435,706
General and administrative expenses ⁽¹⁾		—			232,602			5,668			—			238,270
Corporate expenses ⁽¹⁾		—			57,542			1,025			—			58,567
Depreciation and amortization		—			184,897			2,253			—			187,150
Gain on disposition of assets		—			(1,195	)		(4,165	)		—			(5,360	)
		—			891,117			25,287			(2,071	)		914,333
Operating income		—			367,376			9,276			—			376,652
Equity in (earnings) loss of subsidiaries		(379,424	)		—			—			379,424			—
Interest expense (income), net		109,745			(94	)		4,036			—			113,687
Income (loss) before income tax (benefit) expense		269,679			367,470			5,240			(379,424	)		262,965
Income tax (benefit) expense ⁽²⁾		—			(9,357	)		2,643			—			(6,714	)
Net income (loss)	$	269,679		$	376,827		$	2,597		$	(379,424	)	$	269,679

Statement of Comprehensive Income
Net income (loss)	$	269,679		$	376,827		$	2,597		$	(379,424	)	$	269,679
Total other comprehensive income, net of tax		—			—			372			—			372
Total comprehensive income (loss)	$	269,679		$	376,827		$	2,969		$	(379,424	)	$	270,051

(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.

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Statement of Cash Flows for the Nine Months Ended September 30, 2020


	Lamar Media Corp.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
	(unaudited)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	310,395		$	436,270		$	4,949		$	(419,181	)	$	332,433
Cash flows from investing activities:
Acquisitions		577			(29,324	)		—			—			(28,747	)
Capital expenditures		—			(42,792	)		(1,841	)		—			(44,633	)
Proceeds from disposition of assets		—			5,699			—			—			5,699
Investment in subsidiaries		(29,324	)		—			—			29,324			—
Increase in intercompany notes receivable		(57,807	)		—			—			57,807			—
Net cash (used in) provided by investing activities		(86,554	)		(66,417	)		(1,841	)		87,131			(67,681	)
Cash flows from financing activities:
Proceeds received from revolving credit facility		725,000			—			—			—			725,000
Payment on revolving credit facility		(805,000	)		—			—			—			(805,000	)
Principal payments on long term debt		—			(273	)		—			—			(273	)
Borrowings on long term debt		—			8,750			—			—			8,750
Proceeds received from note offering		1,549,250			—			—			—			1,549,250
Redemption of senior notes and senior subordinated notes		(1,058,596	)		—			—			—			(1,058,596	)
Proceeds received from senior credit facility term loans		598,500			—			—			—			598,500
Payments on senior credit facility term loans		(978,097	)		—			—			—			(978,097	)
Payment on accounts receivable securitization program		—			—			(175,000	)		—			(175,000	)
Proceeds received from accounts receivable securitization program		—			—			122,500			—			122,500
Debt issuance costs		(32,667	)		—			—			—			(32,667	)
Intercompany loan proceeds		—			4,111			53,696			(57,807	)		—
Distributions to non-controlling interest		—			—			(1,475	)		—			(1,475	)
Dividends (to) from parent		(211,624	)		(419,181	)		—			419,181			(211,624	)
Contributions from (to) parent		36,492			29,324			—			(29,324	)		36,492
Net cash (used in) provided by financing activities		(176,742	)		(377,269	)		(279	)		332,050			(222,240	)
Effect of exchange rate changes in cash and cash equivalents		—			—			(72	)		—			(72	)
Net increase (decrease) in cash and cash equivalents		47,099			(7,416	)		2,757			—			42,440
Cash and cash equivalents at beginning of period		13,185			8,278			4,225			—			25,688
Cash and cash equivalents at end of period	$	60,284		$	862		$	6,982		$	—		$	68,128

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Statement of Cash Flows for the Nine Months Ended September 30, 2019


	Lamar Media Corp.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
	(unaudited)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	289,262		$	510,514		$	(11,358	)	$	(404,210	)	$	384,208
Cash flows from investing activities:
Acquisitions		—			(214,559	)		—			—			(214,559	)
Capital expenditures		—			(94,820	)		(2,860	)		—			(97,680	)
Proceeds from disposition of assets		—			2,658			—			—			2,658
Proceeds received from insurance claims		—			210			—			—			210
Investment in subsidiaries		(214,559	)		—			—			214,559			—
Decrease in intercompany notes receivable		7,236			—			—			(7,236	)		—
Increase in notes receivable		(448	)		—			—			—			(448	)
Net cash (used in) provided by investing activities		(207,771	)		(306,511	)		(2,860	)		207,323			(309,819	)
Cash flows from financing activities:
Proceeds received from revolving credit facility		430,000			—			—			—			430,000
Payment on revolving credit facility		(495,000	)		—			—			—			(495,000	)
Principal payments on long-term debt		(24,421	)		(25	)		—			—			(24,446	)
Proceeds received from note offering		255,000			—			—			—			255,000
Payment on accounts receivable securitization program		—			—			(9,000	)		—			(9,000	)
Proceeds received from accounts receivable securitization program		—			—			9,000			—			9,000
Debt issuance costs		(4,454	)		—			—			—			(4,454	)
Intercompany loan proceeds		—			(19,641	)		12,405			7,236			—
Distributions to non-controlling interest		—			—			(439	)		—			(439	)
Dividends (to) from parent		(297,027	)		(404,210	)		—			404,210			(297,027	)
Contributions from (to) parent		63,626			214,559			—			(214,559	)		63,626
Net cash (used in) provided by financing activities		(72,276	)		(209,317	)		11,966			196,887			(72,740	)
Effect of exchange rate changes in cash and cash equivalents		—			—			144			—			144
Net increase (decrease) in cash and cash equivalents		9,215			(5,314	)		(2,108	)		—			1,793
Cash and cash equivalents at beginning of period		4,029			11,655			5,310			—			20,994
Cash and cash equivalents at end of period	$	13,244		$	6,341		$	3,202		$	—		$	22,787