Lamar Promoting REIT: CO / NEW MANAGEMENT AND ANALYSIS OF FINANCIAL POSITION AND OPERATING RESULTS (Kind 10-Ok)

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This report accommodates forward-looking statements. These statements are topic to
dangers and uncertainties together with these described in Merchandise 1A underneath the heading
"Threat Components," and elsewhere on this Annual Report, that might trigger precise
outcomes to vary materially from these projected in these forward-looking
statements. The Firm cautions traders to not place undue reliance on the
forward-looking statements contained on this doc. These statements converse
solely as of the date of this doc, and the Firm undertakes no obligation
to replace or revise the statements, besides as could also be required by legislation.

LAMAR ADVERTISING COMPANY

The next is a dialogue of the consolidated monetary situation and
outcomes of operations of the Firm for the years ended December 31, 2020, 2019
and 2018. This dialogue needs to be learn together with the consolidated
monetary statements of the Firm and the associated notes.

PREVIEW

The Firm's web revenues are derived primarily from the rental of promoting
area on outside promoting shows owned and operated by the Firm. Income
progress relies on many components that embody the Firm's capacity to extend
occupancy of its present promoting shows; increase promoting charges; and
purchase new promoting shows and its working outcomes are due to this fact
affected by basic financial situations, in addition to developments within the promoting
trade. Promoting spending is especially delicate to modifications typically
financial situations, which have an effect on the charges the Firm is ready to cost for
promoting on its shows and its capacity to maximise promoting gross sales or
occupancy on its shows.

Impression of the COVID-19 pandemic

The unprecedented and speedy unfold of COVID-19 and the associated
government-imposed restrictions and social distancing measures carried out
all through the world have diminished demand for out-of-home promoting. Starting
in late March 2020, giant public occasions have been cancelled, and governments started
imposing restrictions on non-essential actions, which in flip led to
advertisers suspending, delaying or cancelling their promoting campaigns.

The

government-imposed restrictions have had an hostile influence on the quantity of
automobiles on roadways (notably in bigger markets), pedestrians in airports
and riders on public transit and quite a few promoting buyer segments
together with, however not restricted to, leisure, retail, restaurant and amusement
advertisers.

Consequently, demand for billboard, transit and airport promoting declined,
which has had an hostile influence on our revenues and monetary place. The
lower in outside promoting demand in the course of the twelve months ended December
31, 2020 resulted in a ten.5% lower in our consolidated web revenues as
in comparison with the identical interval in 2019. As revenues declined, the Firm responded
with quite a lot of value saving and liquidity measures as mentioned under. Whereas
we can not predict the size and severity of the discount in demand as a result of
pandemic, we noticed an enchancment in buyer exercise starting in June and
by means of December because the government-imposed restrictions on journey have been eased.
Nonetheless, the tempo of the restoration stays unsure given the continued influence
of the pandemic on the general U.S. and world financial system, and new or renewed
government-imposed restrictions on journey could also be enacted sooner or later. Our
liquidity measures and expense administration initiatives could also be modified as we
monitor the timing of financial restoration.

In response to the continued pandemic, we have now carried out measures to mitigate
the influence on our monetary place and operations. These measures embody, however
will not be restricted to, the next:

• preserve vital liquidity and strengthen the maturity of our debt

        schedule by finishing the next financing transactions


         o  issuing $400.0 million in 4 7/8% Senior Notes on Could 13, 2020, the
            proceeds of which, together with money readily available, have been used to

pay every little thing

            then excellent balances underneath our revolving credit score facility;


o purchase again our $ 535.0 million 5% senior subordinated notes maturing in 2023 in

            the third quarter of 2020, which we funded by means of a

mixture of

            money readily available, borrowings underneath our revolving credit score facility

and the

            Accounts Receivable Securitization Program and thru the

Present of

            an extra $150.0 million in 4% Senior Notes due 2030 on

August 19,

            2020;


o broadcast $ 550.0 million in 3 5/8% Senior Notes due 2031 on 22 january,

            2021, the proceeds of which, together with money readily available and

loans

            underneath our revolving credit score facility and Accounts Receivable
            Securitization Program, have been used to redeem our $650.0 million in
            combination excellent principal quantity 5 3/4% Senior Notes due 2026 on
            February 3, 2021;


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• scale back our consolidated working prices (excluding depreciation and

depreciation and acquire on disposal of belongings) by $ 76.6 million or 7.7%

for the previous twelve months December 31, 2020 over the identical interval in 2019

which included:

         o   reductions in our transit and airport franchise prices and billboard
             lease prices; and


         o   lowering our workforce by roughly 8% by means of attrition and
             chosen layoffs;

• considerably scale back spending on funding tasks, together with

        shows;


  • limiting acquisition exercise; and

• use elements of the CARES Act to postpone employer elements

social safety taxes till the top of 2020, with 50% of the carry-over

        due December 31, 2021 and the remaining 50% due December 31, 2022.



We are going to proceed to evaluate the influence of the COVID-19 pandemic on our enterprise and we will entry debt and / or fairness markets to acquire extra liquidity, if crucial.


The Firm's administration and Board of Administrators are persevering with to judge our
quarterly dividend plans for 2021. This analysis consists of guaranteeing the Firm
stays in compliance with its REIT dividend necessities for the 12 months. On
February 25, 2021, the Board of Administrators permitted a dividend of $0.75 per
frequent share to be paid on March 31, 2021. Topic to the approval of the Board
of Administrators, the Firm expects combination dividends for 2021 to be $3.00 per
frequent share, together with the dividend payable on March 31, 2021.



As of December 31, 2020, we didn't incur any impairment fees associated to
goodwill or long-lived belongings (together with working lease proper of use belongings).
We additionally didn't incur any vital credit score losses for the 12 months ended December
31, 2020.



Whereas a few of our company, entrance workplace and gross sales workforce continues to work
from residence, a big majority has returned to their workplaces whereas adhering to the
Facilities for Illness Management and Prevention and state and native governmental
tips and proposals. The impacts of working from residence have been
minimal on productiveness. Additionally, whereas working from residence has minimally impacted
our processes, there have been no materials impacts to our inside management
setting.



We proceed to actively monitor the state of affairs and should take different actions that modify our enterprise operations as required by federal, state or native authorities, or that we imagine to be in one of the best pursuits of our workers, prospects, companions and shareholders.

Acquisitions and capital expenditures

Traditionally, the Firm has made strategic acquisitions of out of doors promoting
belongings to extend the variety of outside promoting shows it operates in
present and new markets. The Firm continues to judge and pursue strategic
acquisition alternatives as they come up. The Firm has financed its historic
acquisitions and intends to finance any future acquisition exercise from
out there money, borrowings underneath the senior credit score facility or the issuance of
debt or fairness securities. See "Liquidity and Capital Sources-Sources of
Money," for extra data. Through the 12 months ended December 31, 2020, the
Firm accomplished acquisitions for a complete money buy worth of roughly
$45.6 million. See "Makes use of of Money-Acquisitions," for extra data.

The Firm's enterprise requires expenditures for upkeep and capitalized
prices related to the development of recent billboard shows, the doorway
into and renewal of emblem signal and transit contracts, and the acquisition of actual
property and working gear. The next desk presents a breakdown of
capitalized expenditures for the previous three years:



                               2020         2019          2018
                                        (In 1000's)
Billboard - Conventional      $ 11,131$  48,194$  37,905
Billboard - Digital            22,618        57,519        45,938
Logos                          13,108        10,762        11,438
Transit                         3,212         2,308         5,364
Land and buildings              6,303        13,453         8,420
PP&E                            5,900         8,720         8,573

Complete capital expenditure $ 62,272$ 140,956$ 117,638

We count on our capital spending for 2021 to be roughly $ 150.0 million.

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NON-GAAP FINANCIAL MEASURES

Our administration evaluations our efficiency by specializing in a number of key efficiency
indicators not ready in conformity with Typically Accepted Accounting
Rules in the US ("GAAP"). We imagine these non-GAAP efficiency
indicators are significant supplemental measures of our working efficiency and
shouldn't be thought-about in isolation of, or as an alternative to their most
instantly comparable GAAP monetary measures.

Included in our evaluation of our outcomes of operations are discussions concerning
earnings earlier than curiosity, taxes, depreciation and amortization ("adjusted
EBITDA"), Funds From Operations ("FFO"), as outlined by the Nationwide Affiliation
of Actual Property Funding Trusts, Adjusted Funds From Operations ("AFFO") and
acquisition-adjusted web income.

We outline adjusted EBITDA as web revenue earlier than revenue tax expense (profit),
curiosity expense (revenue), loss (acquire) on extinguishment of debt and
investments, stock-based compensation, depreciation and amortization, acquire or
loss on disposition of belongings and investments, capitalized contract success
prices, web and the influence of the adoption of ASU NO. 2016-2, "Leases (Codified
as ASC 842)."

FFO is outlined as web revenue earlier than beneficial properties or losses from the sale or disposal of
actual property belongings and investments and actual property associated depreciation and
amortization and together with changes to eradicate unconsolidated associates
and non-controlling curiosity.

We outline AFFO as FFO earlier than (i) straight-line revenue and expense; (ii) influence
of ASC 842 adoption; (iii) capitalized contract success prices, web, (iv)
stock-based compensation expense; (v) non-cash tax expense (profit);
(vi) non-real property associated depreciation and amortization; (vii) amortization
of deferred financing and debt issuance prices, (viii) loss on extinguishment of
debt; (ix) non-recurring rare or uncommon losses (beneficial properties); (x) much less
upkeep capital expenditures; and (xi) an adjustment for unconsolidated
associates and non-controlling curiosity.

Acquisition-adjusted web income adjusts our web income for the prior interval by
including to it the online income generated by the acquired belongings earlier than our
acquisition of those belongings for a similar timeframe that these belongings have been owned
within the present interval. In calculating acquisition-adjusted income, due to this fact,
we embody income generated by belongings that we didn't personal within the interval however
acquired within the present interval. We consult with the quantity of pre-acquisition
income generated by the acquired belongings in the course of the prior interval that
corresponds with the present interval during which we owned the belongings (to the extent
inside the interval to which this report relates) as "acquisition web income". In
addition, we additionally regulate the prior interval to subtract income generated by the
belongings which have been divested for the reason that prior interval and, due to this fact, no income
derived from these belongings is mirrored within the present interval.

Adjusted EBITDA, FFO, AFFO and acquisition-adjusted web income will not be supposed
to exchange web revenue or another efficiency measures decided in accordance
with GAAP. Neither FFO nor AFFO symbolize money flows from working actions
in accordance with GAAP and, due to this fact, these measures shouldn't be thought-about
indicative of money flows from working actions as a measure of liquidity or
of funds out there to fund our money wants, together with our capacity to make money
distributions. Reasonably, adjusted EBITDA, FFO, AFFO and acquisition-adjusted web
income are offered as we imagine every is a helpful indicator of our present
working efficiency. We imagine that these metrics are helpful to an investor
in evaluating our working efficiency as a result of (1) every is a key measure used
by our administration group for functions of resolution making and for evaluating our
core working outcomes; (2) adjusted EBITDA is extensively used within the trade to
measure working efficiency as depreciation and amortization might differ
considerably amongst corporations relying upon accounting strategies and helpful
lives, notably the place acquisitions and non-operating components are concerned;
(3) acquisition-adjusted web income is a complement to web income to allow
traders to check interval over interval outcomes on a extra constant foundation
with out the consequences of acquisitions and divestures, which displays our core
efficiency and natural progress (if any) in the course of the interval during which the belongings
have been owned and managed by us; (4) adjusted EBITDA, FFO and AFFO every offers
traders with a significant measure for evaluating our period-to-period
working efficiency by eliminating gadgets that aren't operational in nature;
and (5) every offers traders with a measure for evaluating our outcomes of
operations to these of different corporations.

Our measurement of adjusted EBITDA, FFO, AFFO and acquisition-adjusted web
income might not, nevertheless, be absolutely corresponding to equally titled measures used
by different corporations. Reconciliations of adjusted EBITDA, FFO, AFFO and
acquisition-adjusted web income to web revenue, probably the most instantly comparable
GAAP measure, have been included herein.

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RESULTS OF OPERATIONS

The next desk presents sure gadgets within the Consolidated Statements of
Revenue as a proportion of web revenues for the years ended December 31, 2020,
2019 and 2018:



                                          Yr Ended December 31,
                                       2020        2019         2018
Internet revenues                            100.0 %     100.0 %      100.0 %
Working bills:
Direct promoting bills              35.5 %      33.6 %       34.5 %

Common and administrative bills 18.3% 18.2% 17.8% Company bills

                        4.5 %       4.8 %        5.1 %
Depreciation and amortization            16.0 %      14.3 %       13.8 %
Working revenue                         26.1 %      29.5 %       28.3 %
Loss on extinguishment of debt            1.6 %         -          0.9 %
Curiosity expense                          8.8 %       8.6 %        8.0 %
Revenue tax expense (profit)              0.3 %      (0.2 )%       0.7 %
Internet revenue                               15.5 %      21.2 %       18.8 %



Yr ended December 31, 2020 in comparison with the 12 months ended December 31, 2019

Internet revenues decreased $184.8 million or 10.5% to $1.57 billion for the 12 months
ended December 31, 2020 from $1.75 billion for a similar interval in 2019. This
lower was attributable primarily to a lower in billboard and transit web
revenues of $134.3 million and $49.2 million, respectively, over the prior
interval, which is primarily associated to the consequences of the continued COVID-19
pandemic.

Internet revenues for the 12 months ended December 31, 2020, as in comparison with
acquisition-adjusted web revenues for the comparable interval in 2019, decreased
$191.2 million, or 10.9%. The $191.2 million lower in web revenues is
primarily because of a $146.9 million and $46.9 million lower in billboard and
transit web revenues, respectively, that are as a result of results of the continued
pandemic. The lower in billboard and transit web revenues was barely offset
by a rise of $2.6 million in emblem web revenues. See "Reconciliations"
under.

Complete working bills, unique of depreciation and amortization and (acquire)
loss on disposition of belongings, decreased $76.6 million, or 7.7% to $916.5
million for the 12 months ended December 31, 2020 from $993.1 million in the identical
interval in 2019. The $76.6 million lower over the prior 12 months is primarily
comprised of a lower in complete direct, basic and administrative and
company bills (excluding stock-based compensation) of $65.8 million
primarily associated to reductions in our billboard lease prices, transit and
airport franchise prices, in addition to reductions in our workforce.

Depreciation and amortization expense elevated $1.3 million to $251.3 million
for the 12 months ended December 31, 2020 as in comparison with $250.0 million for a similar
interval in 2019.

For the 12 months ended December 31, 2020, the Firm acknowledged a acquire on
disposition of belongings of $9.0 million as in comparison with a acquire on disposition of
belongings of $7.2 million for a similar interval in 2019. The acquire on disposition of
belongings for the 12 months ended December 31, 2020 was primarily from beneficial properties on the sale
of billboard belongings of $4.5 million and a $3.2 million acquire from the sale of the
Firm plane in December 2020.

Due primarily to the above components, working revenue decreased $107.6 million to
$410.1 million for the 12 months ended December 31, 2020 in comparison with $517.7 million
for a similar interval in 2019.

Through the 12 months ended December 31, 2020, the Firm recorded a $25.2 million
loss on debt extinguishment associated to Lamar Media's early reimbursement of its 5
3/8% Senior Notes and 5% Senior Subordinated Notes and refinancing of the senior
credit score facility. The $25.2 million loss is comprised of a money redemption
premium and costs of $14.3 million and a non-cash write off of unamortized
deferred financing prices of roughly $10.9 million.

Curiosity expense decreased $13.0 million for the 12 months ended December 31, 2020 to
$137.6 million as in comparison with $150.6 million for the 12 months ended December 31,
2019. The lower in curiosity expense is primarily associated to the Firm's
debt transactions accomplished in 2020, in addition to a discount in our senior credit score
facility rates of interest.

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The lower in working revenue and enhance in loss on extinguishment of debt,
offset by the lower in curiosity expense over the comparable interval in 2019,
resulted in a $119.8 million lower in web revenue earlier than revenue taxes.

The Firm recorded revenue tax expense of $4.7 million for the 12 months ended
December 31, 2020 as in comparison with an revenue tax good thing about $4.2 million for the
similar interval in 2019. The $4.7 million tax expense equates to an efficient tax
fee for the 12 months ended December 31, 2020 of roughly 1.9%, which differs
from the federal statutory fee primarily because of our qualification for taxation
as a REIT and changes for international gadgets.

On account of the above components, the Firm acknowledged web revenue for the 12 months
ended December 31, 2020 of $243.4 million, as in comparison with web revenue of $372.1
million for a similar interval in 2019.

Reconciliations:

As a result of acquisitions occurring after December 31, 2018 have contributed to our
web income outcomes for the durations offered, we offer 2019
acquisition-adjusted web income, which adjusts our 2019 web income for the
12 months ended December 31, 2019 by including to or subtracting from it the online income
generated by the acquired or divested belongings previous to our acquisition or
divestiture of those belongings for a similar timeframe that these belongings have been owned
within the 12 months ended December 31, 2020.

Reconciliations of 2019 reported web income to 2019 acquisition-adjusted web
income for the 12 months ended December 31, 2019 in addition to a comparability of 2019
acquisition-adjusted web income to 2020 reported web income for the 12 months ended
December 31, 2020, are supplied under:

Reconciliation and Comparability of Reported Internet Income to Acquisition-Adjusted
Internet Income



                                  Yr ended
                                 December 31,
                             2020            2019
                                (in 1000's)
Reported web income      $ 1,568,856$ 1,753,644
Acquisition web income             -           6,438
Adjusted totals           $ 1,568,856$ 1,760,082

Key efficiency indicators

Adjusted web revenue / EBITDA

(in 1000's)



                                                                                Quantity of        %
                                                Yr Ended December 31,         Enhance        Enhance
                                                  2020             2019        (Lower)      (Lower)
Internet revenue                                    $    243,386$ 372,111$  (128,725 )         (34.6 )%
Revenue tax expense (profit)                         4,660          (4,222 )         8,882
Loss on extinguishment of debt                      25,235               -

25 235

Curiosity expense (revenue), web                     136,826         149,852         (13,026 )
Acquire on disposition of belongings                       (9,026 )        (7,241 )        (1,785 )
Depreciation and amortization                      251,296         250,028

1,268

Impression of ASC 842 adoption                               -           3,894          (3,894 )
Capitalized contract success prices, web            387          (9,186 )         9,573
Inventory-based compensation expense                    18,772          29,647         (10,875 )
Adjusted EBITDA                               $    671,536$ 784,883$  (113,347 )         (14.4 )%




Adjusted EBITDA for the 12 months ended December 31, 2020 decreased 14.4% to $671.5
million. The lower in adjusted EBITDA was primarily attributable to the
lower in our gross margin (web income much less direct promoting expense,
unique of depreciation and amortization, capitalized contract success
prices, web and the influence of ASC 842 adoption) of $146.5 million, and was
partially offset by a lower typically and administrative and company
bills of $33.2 million, excluding the influence of stock-based compensation
expense.

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Internet Revenue/FFO/AFFO

(in 1000's)



                                                                             Quantity of        %
                                             Yr Ended December 31,         Enhance        Enhance
                                               2020             2019        (Lower)      (Lower)
Internet revenue                                 $    243,386$ 372,111$  (128,725 )         (34.6 )%
Depreciation and amortization associated to
actual property                                     238,932         235,802

3 130

Acquire from disposition of actual property
belongings and
  investments                                    (5,790 )        (6,775 )

985

Non-cash tax profit for REIT transformed
belongings                                                -         (17,031 )

17,031

Changes for unconsolidated
associates and
  non-controlling curiosity                          629             771            (142 )
FFO                                        $    477,157$ 584,878$  (107,721 )         (18.4 )%
Straight-line expense (revenue)                    3,597            (361 )

3 958

Impression of ASC 842 adoption                            -           3,894          (3,894 )
Capitalized contract success prices,
web                                                 387          (9,186 )

9,573

Inventory-based compensation expense                 18,772          29,647         (10,875 )
Non-cash portion of tax provision                  (797 )         2,901          (3,698 )
Acquire from one-time sale of non-real
property belongings                                    (3,197 )             -          (3,197 )
Non-real property associated depreciation and
amortization                                     12,364          14,226          (1,862 )
Amortization of deferred financing prices          5,909           5,365

544

Loss on extinguishment of debt                   25,235               -

25 235

Capital expenditures - upkeep              (24,028 )       (49,155 )

25,127

Changes for unconsolidated
associates and
  non-controlling curiosity                         (629 )          (771 )           142
AFFO                                       $    514,770$ 581,438$   (66,668 )         (11.5 )%




FFO for the 12 months ended December 31, 2020 was $477.2 million as in comparison with FFO
of $584.9 million for a similar interval in 2019. AFFO for the 12 months ended
December 31, 2020 decreased 11.5% to $514.8 million as in comparison with $581.4
million for a similar interval in 2019. The lower in AFFO was primarily
attributable to the lower in our gross margin (web income much less direct
promoting expense, unique of depreciation and amortization, capitalized
contract success prices, web and the influence of ASC 842 adoption), offset by
decreases typically and administrative and company bills (excluding the
impact of inventory primarily based compensation expense).

Yr ended December 31, 2019 in comparison with the 12 months ended December 31, 2018

Internet revenues elevated $126.4 million or 7.8% to $1.75 billion for the 12 months
ended December 31, 2019 from $1.63 billion for a similar interval in 2018. This
enhance was attributable primarily to a rise in billboard web revenues of
$124.6 million or 8.8% over the prior interval, which is primarily associated to the
integration of out of doors belongings acquired throughout 2018 and 2019, and the addition of
roughly 330 digital shows in the course of the 12 months ended December 31, 2019. In
addition, transit income elevated $2.1 million, which represents a rise
of 1.6% over the prior interval.

Internet revenues for the 12 months ended December 31, 2019, as in comparison with
acquisition-adjusted web revenues for the comparable interval in 2018, elevated
$45.7 million, or 2.7%. The $45.7 million enhance in income primarily
consisted of a $41.7 million enhance in billboard income primarily because of
will increase in digital income and a $4.1 million enhance in transit income over
the acquisition-adjusted web income for the comparable interval in 2018. See
"Reconciliations" under.

Complete working bills, unique of depreciation and amortization and (acquire)
loss on disposition of belongings, elevated $58.9 million, or 6.3% to $993.1
million for the 12 months ended December 31, 2019 from $934.2 million in the identical
interval in 2018. The $58.9 million enhance over the prior 12 months is primarily
comprised of a rise in complete direct, basic and administrative and
company bills (excluding stock-based compensation) of $58.7 million
primarily associated to the operations of our outside promoting belongings.

Depreciation and amortization expense elevated $24.8 million to $250.0 million
for the 12 months ended December 31, 2019 as in comparison with $225.3 million for a similar
interval in 2018, primarily associated to the addition of roughly $516.2
million of depreciable belongings acquired by means of acquisitions and $258.6 million
in capitalized expenditures throughout fiscal years 2018 and 2019.

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For the 12 months ended December 31, 2019, the Firm acknowledged a acquire on
disposition of belongings of $7.2 million primarily ensuing from an modification of a
transit contract within the first quarter of 2019. The acquire in 2019 represents an
enhance of $14.5 million over the identical interval in 2018, largely as a result of acquire
in 2019 coupled with the Firm's loss acknowledged in 2018 on the sale of its
Puerto Rico belongings in April 2018 of $7.8 million.

Due primarily to the above components, working revenue elevated $57.2 million to
$517.7 million for the 12 months ended December 31, 2019 in comparison with $460.6 million
for a similar interval in 2018.

Through the 12 months ended December 31, 2018, the Firm recorded a $15.4 million
loss on debt extinguishment associated to Lamar Media's prepayment of its 5 7/8%
Senior Subordinated Notes due 2022. The $15.4 million loss is comprised of a
money redemption premium of $9.8 million and a non-cash write off of unamortized
deferred financing prices of roughly $5.6 million. See "Makes use of of Money" for
extra data. There have been no transactions leading to a loss on debt
extinguishment in fiscal 12 months 2019.

Curiosity expense elevated $20.9 million for the 12 months ended December 31, 2019 to
$150.6 million as in comparison with $129.7 million for the 12 months ended December 31,
2018. The rise in curiosity expense is primarily associated to the elevated
debt excellent as in comparison with the identical interval in 2018.

The rise in working revenue and reduce in loss on extinguishment of debt,
offset by the rise in curiosity expense over the comparable interval in 2018,
resulted in a $52.0 million enhance in web revenue earlier than revenue taxes.

The Firm recorded an revenue tax good thing about $4.2 million for the 12 months ended
December 31, 2019 as in comparison with revenue tax expense of $10.7 million for the
similar interval in 2018. The $4.2 million revenue tax profit is comprised of a $17.0
million non-cash tax profit ensuing from REIT transformed belongings offset by
revenue tax expense of $12.8 million. The $12.8 million tax expense equates to an
efficient tax fee for the 12 months ended December 31, 2019 of roughly 3.5%,
which differs from the federal statutory fee primarily because of our qualification
for taxation as a REIT and changes for international gadgets.

On account of the above components, the Firm acknowledged web revenue for the 12 months
ended December 31, 2019 of $372.1 million, as in comparison with web revenue of $305.2
million for a similar interval in 2018.

Reconciliations:

As a result of acquisitions occurring after December 31, 2017 have contributed to our
web income outcomes for the durations offered, we offer 2018
acquisition-adjusted web income, which adjusts our 2018 web income for the
12 months ended December 31, 2018 by including to or subtracting from it the online income
generated by the acquired or divested belongings previous to our acquisition or
divestiture of those belongings for a similar timeframe that these belongings have been owned
within the 12 months ended December 31, 2019.

Reconciliations of 2018 reported web income to 2018 acquisition-adjusted web
income for the 12 months ended December 31, 2018 in addition to a comparability of 2018
acquisition-adjusted web income to 2019 reported web income for the 12 months ended
December 31, 2019, are supplied under:

Reconciliation and Comparability of Reported Internet Income to Acquisition-Adjusted
Internet Income



                                  Yr ended
                                 December 31,
                             2019            2018
                                (in 1000's)
Reported web income      $ 1,753,644$ 1,627,222
Acquisition web income             -          80,745
Adjusted totals           $ 1,753,644$ 1,707,967




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Key Efficiency Indicators

Internet Revenue/Adjusted EBITDA

(in 1000's)



                                                                                 Quantity of         %
                                                Yr Ended December 31,          Enhance         Enhance
                                                  2019             2018         (Lower)       (Lower)
Internet revenue                                    $    372,111$ 305,232$      66,879            21.9 %
Revenue tax (profit) expense                        (4,222 )        10,697           (14,919 )
Loss on extinguishment of debt                           -          15,429           (15,429 )
Curiosity expense (revenue), web                     149,852         129,198

20 654

(Acquire) loss on disposition of belongings                (7,241 )         7,233           (14,474 )
Depreciation and amortization                      250,028         225,261

24 767

Impression of ASC 842 adoption                           3,894               -             3,894
Capitalized contract success prices, web         (9,186 )             -            (9,186 )
Inventory-based compensation expense                    29,647          29,443               204
Adjusted EBITDA                               $    784,883$ 722,493$      62,390             8.6 %




Adjusted EBITDA for the 12 months ended December 31, 2019 elevated 8.6% to $784.9
million. The rise in adjusted EBITDA was primarily attributable to the
enhance in our gross margin (web income much less direct promoting expense,
unique of depreciation and amortization, capitalized contract success
prices, web and the influence of ASC 842 adoption) of $92.7 million, and was
partially offset by a rise typically and administrative and company
bills of $30.3 million, excluding the influence of stock-based compensation
expense and the influence of ASC 842 adoption.

Internet Revenue/FFO/AFFO

(in 1000's)



                                                                              Quantity of         %
                                             Yr Ended December 31,          Enhance         Enhance
                                               2019             2018         (Lower)       (Lower)
Internet revenue                                 $    372,111$ 305,232$      66,879            21.9 %
Depreciation and amortization associated to
actual property                                     235,802         212,457

23 345

(Acquire) loss from disposition of actual
property belongings and
  investments                                    (6,775 )         8,689           (15,464 )
Non-cash tax profit for REIT transformed
belongings                                          (17,031 )             -           (17,031 )
Changes for unconsolidated
associates and
  non-controlling curiosity                          771             648               123
FFO                                        $    584,878$ 527,026$      57,852            11.0 %
Straight-line revenue                               (361 )        (2,036 )           1,675
Impression of ASC 842 adoption                        3,894               -

3 894

Capitalized contract success prices,
web                                              (9,186 )             -            (9,186 )
Inventory-based compensation expense                 29,647          29,443

204

Non-cash portion of tax provision                 2,901             660

2 241

Non-real property associated depreciation and
amortization                                     14,226          12,804

1422

Amortization of deferred financing prices          5,365           4,920

445

Loss on extinguishment of debt                        -          15,429           (15,429 )
Capital expenditures - upkeep              (49,155 )       (43,108 )          (6,047 )
Changes for unconsolidated
associates and
  non-controlling curiosity                         (771 )          (648 )            (123 )
AFFO                                       $    581,438$ 544,490$      36,948             6.8 %




FFO for the 12 months ended December 31, 2019 was $584.9 million as in comparison with FFO
of $527.0 million for a similar interval in 2018. AFFO for the 12 months ended
December 31, 2019 elevated 6.8% to $581.4 million as in comparison with $544.5 million
for a similar interval in 2018. AFFO progress was primarily attributable to the
enhance in our gross margin (web income much less direct promoting expense,
unique of depreciation and amortization, capitalized contract success
prices, web and the influence of ASC 842 adoption),

                                       34

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offset by will increase typically, administrative and company bills (excluding the impact of stock-based compensation expense and the influence of adopting ASC 842).

LIQUIDITY AND CAPITAL RESOURCES

Overview

The Firm has traditionally happy its working capital necessities with
money from operations and borrowings underneath its senior credit score facility. The
Firm's wholly owned subsidiary, Lamar Media Corp., is the principal borrower
underneath the senior credit score facility and maintains all company working money
balances. Any money necessities of the Firm, due to this fact, have to be funded by
distributions from Lamar Media.

Sources of money

Complete Liquidity at December 31, 2020. As of December 31, 2020 we had
roughly $910.1 million of complete liquidity, which is comprised of
roughly $121.6 million in money and money equivalents, roughly $736.0
million of availability underneath the revolving credit score facility and $52.5 million of
availability underneath our Accounts Receivable Securitization Program. We count on the
liquidity measures taken in 2020 (as mentioned above) and the remaining
availability underneath the revolving credit score facility and Accounts Receivable
Securitization Program to be enough for the Firm to satisfy its operational
necessities for the subsequent twelve months as we proceed to deal with the
impacts of the COVID-19 pandemic. We're presently in compliance with the
upkeep covenant included within the senior credit score facility, and we'd stay
in compliance after giving impact to borrowing the complete quantity out there to us
underneath the revolving credit score facility.

As of December 31, 2020 and 2019, the Firm had a working capital deficit of
$167.3 million and $362.6 million, respectively. The working capital deficit for
the 12 months ended December 31, 2020 is primarily associated to $195.4 million in
present working lease liabilities which has a corresponding proper of use asset
recorded in long run belongings. We count on to have sufficient money readily available and
availability underneath our revolving credit score facility to satisfy our working wants for
the subsequent twelve months.

Money Generated by Operations. For the years ended December 31, 2020, 2019 and
2018 our money supplied by working actions was $569.9 million, $630.9
million and $564.8 million, respectively. The lower in money supplied by
working actions for the 12 months ended December 31, 2020 over the identical interval
in 2019 pertains to a lower in revenues offset by a lower in working
bills (excluding depreciation and amortization). Because of the hostile financial
influence of the COVID-19 pandemic, we might not generate money flows from operations
throughout 2021 in extra of our money wants for operations, capital expenditures and
dividends, as described herein. Nonetheless, we do count on to have ample money on
hand and availability underneath our revolving credit score facility and Accounts
Receivable Securitization Program to satisfy our working money wants for the subsequent
twelve months. See - "Money Flows" for extra data.

Accounts Receivable Securitization Program. On December 18, 2018, we entered
into the Accounts Receivable Securitization Program. The Accounts Receivable
Securitization Program offers as much as $175.0 million in borrowing capability, plus
an accordion function that will allow the borrowing capability to be elevated by
as much as $125.0 million. Borrowing capability underneath the Accounts Receivable
Securitization Program is proscribed to the provision of eligible accounts
receivable collateralizing the borrowings underneath the agreements governing the
Accounts Receivable Securitization Program. In reference to the Accounts
Receivable Securitization Program, Lamar Media and sure of its subsidiaries
(such subsidiaries, the "Subsidiary Originators") promote and/or contribute their
present and future accounts receivable and sure associated belongings to one in all two
particular objective subsidiaries, Lamar QRS Receivables, LLC (the "QRS SPV") and
Lamar TRS Receivables, LLC (the "TRS SPV" and along with the QRS SPV the
"Particular Goal Subsidiaries"), every of which is a wholly-owned subsidiary of
Lamar Media. Current and future accounts receivable referring to Lamar Media and
its certified REIT subsidiaries can be bought and/or contributed to the QRS SPV
and present and future accounts receivable referring to Lamar Media's TRSs will
be bought and/or contributed to the TRS SPV. Every of the Particular Goal
Subsidiaries has granted the lenders social gathering to the Accounts Receivable
Securitization Program a safety curiosity in all of its belongings, which consist
of the accounts receivable and associated belongings bought or contributed to them, as
described above, with a view to safe the obligations of the Particular Goal
Subsidiaries underneath the agreements governing the Accounts Receivable
Securitization Program. Pursuant to the Accounts Receivable Securitization
Program, Lamar Media has agreed to service the accounts receivable on behalf of
the 2 Particular Goal Subsidiaries for a charge. Lamar Media has additionally agreed to
warranty its efficiency in its capability as servicer and originator, in addition to
the efficiency of the Subsidiary Originators, of their obligations underneath the
agreements governing the Accounts Receivable Securitization Program. None of
Lamar Media, the Subsidiary Originators or the Particular Goal Subsidiaries
ensures the collectability of the receivables underneath the Accounts Receivable
Securitization Program. As well as, every of the Particular Goal Subsidiaries is
a separate authorized entity with its personal separate collectors who can be entitled to
entry the belongings of such Particular Goal Subsidiary earlier than the belongings turn into
out there to Lamar Media. Accordingly, the belongings of the Particular Goal
Subsidiaries will not be

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out there to pay collectors of Lamar Media or one in all its subsidiaries, though debt collections in extra of the quantities required to repay lenders and different collectors of particular objective subsidiaries could also be deferred to Lamar Media.


On June 30, 2020Lamar Media and the Particular Goal Subsidiaries entered into
the Third Modification (the "Third Modification") of the Accounts Receivable
Securitization Program which elevated the utmost three month common
Delinquency Ratio, Dilution Ratio, and Days' Gross sales Excellent to 11.00% (from
8.00%), 7.00% (from 4.00%) and 75 days (from 65 days), respectively.
Moreover, the Third Modification established a brand new Minimal Funding Threshold,
which requires the Particular Goal Subsidiaries to keep up borrowings underneath the
Accounts Receivable Securitization Program on any day equal to the lesser of (i)
50.00% of the mixture ?Dedication of all Lenders or (ii) the Borrowing Base,
although the Particular Goal Subsidiaries had the fitting to borrow lower than the
?Minimal Funding Threshold throughout sure durations previous to December 21, 2020, at
their election.



On October 23, 2020, Lamar Media and the Particular Goal Subsidiaries entered
into the Fourth Modification (the "Fourth ?Modification") to the Accounts Receivable
Securitization Program. The Fourth Modification elevated the ?most three month
common Delinquency Ratio typically to 13.00% (and as much as 16.00% for as much as two
extra durations upon ?written discover from Lamar Media), and elevated the
most three month common Dilution Ratio to five.00% for the remaining time period ?of
the Accounts Receivable Securitization Program. Moreover, the Fourth
Modification elevated the Minimal Funding ?Threshold which, as amended, requires
the Particular Goal Subsidiaries to keep up minimal borrowings underneath the
Accounts ?Receivable Securitization Program on any day equal to the lesser of
(i) 70.00% of the mixture Dedication of all Lenders or (ii) the ?Borrowing
Base, although the Particular Goal Subsidiaries had the fitting to borrow lower than
the Minimal Funding Threshold throughout ?sure durations previous to December 21,
2020, at their election.

From December 31, 2020, There was $ 122.5 million world borrowings underneath the accounts receivable securitization program at a borrowing fee of roughly 1.5%.

The Accounts Receivable Securitization Program will mature on December 17, 2021.
Lamar Media might amend the power to increase the maturity date, enter into a brand new
securitization facility with a special maturity date, or refinance the
indebtedness excellent underneath the Accounts Receivable Securitization Program
utilizing borrowings underneath its senior credit score facility or from different financing
sources.

"At-the-Market" Providing Program. On Could 1, 2018, the Firm entered into an
fairness distribution settlement (the "Gross sales Settlement") with J.P. Morgan
Securities LLC, Wells Fargo Securities LLC and SunTrust Robinson Humphrey, Inc.
as our gross sales brokers (every a "Gross sales Agent", and collectively, the "Gross sales
Brokers"). Underneath the phrases of the Gross sales Settlement, the Firm might, from time to
time, difficulty and promote shares of its Class A typical inventory, par worth $.001 per
share (the "Class A Frequent Inventory"), having an combination providing worth of as much as
$400.0 million by means of the Gross sales Brokers as both brokers or principals. Gross sales of
the Class A Frequent Inventory, if any, could also be made in negotiated transactions or
transactions which might be deemed to be "at-the-market choices" as outlined in Rule
415 underneath the Securities Act of 1933, as amended, together with gross sales made instantly
on or by means of the Nasdaq International Choose Market and another present buying and selling
marketplace for the Class A Frequent Inventory, or gross sales made to or by means of a market maker
apart from on an alternate. The Firm has no obligation to promote any of the
Class A Frequent Inventory underneath the Gross sales Settlement and should at any time droop
solicitations and gives underneath the Gross sales Settlement. The Firm intends to make use of
the online proceeds, if any, from the sale of the Class A Frequent Inventory pursuant to
the Gross sales Settlement for basic company functions, which can embody the
reimbursement, refinancing, redemption or repurchase of present indebtedness,
working capital, capital expenditures, acquisition of out of doors promoting belongings
and companies and different associated investments.  Through the 12 months ended December
31, 2019, the Firm acquired gross proceeds of roughly $21.4 million,
leading to web proceeds of roughly $21.2 million, in alternate for
?issuing 266,410 shares of its Class A typical inventory underneath this program. Throughout
the 12 months ended December 31, 2019, the mixture ?commissions paid to the gross sales
agent was roughly $0.2 million. ? The Firm didn't supply any shares of
its Class A typical inventory underneath this program in the course of the 12 months ended December 31,
2020.

Shelf Registration Assertion. On August 6, 2018, we filed an mechanically
efficient shelf registration assertion (No. 333-226614) that registered the
supply and sale of an indeterminate quantity of extra shares of our Class A
frequent inventory.  On August 23, 2018, we filed a prospectus complement to the shelf
registration assertion referring to the supply and resale of 163,137 shares of
Class A typical inventory beforehand issued in reference to an acquisition. Throughout
the years ended December 31, 2020 and 2019, the Firm didn't difficulty any shares
underneath this shelf registration, nevertheless, we might difficulty extra shares underneath the
shelf registration assertion sooner or later in reference to future
acquisitions or for different basic company functions.

Credit score Amenities. On February 6, 2020, Lamar Media entered right into a Fourth
Amended and Restated Credit score Settlement (the "Fourth Amended and Restated Credit score
Settlement") with sure of Lamar Media's subsidiaries as guarantors, JPMorgan
Chase Financial institution, N.A. as administrative agent and the lenders social gathering thereto, underneath
which the events agreed to amend and restate Lamar Media's

                                       36

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present senior credit score facility. The Fourth Amended and Restated Credit score
Settlement amended and restated the Third Amended and Restated Credit score Settlement
dated as of Could 15, 2017, as amended (the "Third Amended and Restated Credit score
Settlement").

The senior credit score facility, as established by the Fourth Amended and Restated
Credit score Settlement (the "senior credit score facility"), consists of (i) a brand new $750.0
million senior secured revolving credit score facility which is able to mature on February
6, 2025 (the "revolving credit score facility"), (ii) a brand new $600.0 million Time period B mortgage
facility (the "Time period B loans") which is able to mature on February 6, 2027, and (iii)
an incremental facility (the "Incremental Facility") pursuant to which Lamar
Media might incur extra time period mortgage tranches or enhance its revolving credit score
facility topic to a professional forma secured debt ratio calculated as described underneath
"Restrictions underneath Senior Credit score Facility" of 4.50 to 1.00, in addition to sure
different situations, together with lender approval. Lamar Media borrowed all $600.0
million in Time period B loans on February 6, 2020. The complete quantity of the Time period B
loans can be payable at maturity. The online proceeds from the Time period B loans,
along with borrowing underneath the revolving credit score facility and a portion of the
proceeds of the issuance of the three 3/4% Senior Notes due 2028 and 4% Senior Notes
due 2030 (each as described under), have been used to repay all excellent quantities
underneath the Third Amended and Restated Credit score Settlement, and all revolving
commitments underneath that facility have been terminated.

The Time period B loans bear curiosity at charges primarily based on the Adjusted LIBO Charge
("Eurodollar time period loans") or the Adjusted Base Charge ("Base Charge time period loans"), at
Lamar Media's possibility. Eurodollar Time period B loans bear curiosity at a fee each year
equal to the Adjusted LIBO Charge plus 1.50%. Base Charge Time period B loans bear curiosity
at a fee each year equal to the Adjusted Base Charge plus 0.50%. The revolving
credit score facility bears curiosity at charges primarily based on the Adjusted LIBO Charge
("Eurodollar revolving loans") or the Adjusted Base Charge ("Base Charge revolving
loans"), at Lamar Media's possibility. Eurodollar revolving loans bear curiosity at a
fee each year equal to the Adjusted LIBO Charge plus 1.50% (or the Adjusted LIBO
Charge plus 1.25% at any time the Complete Debt Ratio is lower than or equal to three.25
to 1). Base Charge revolving loans bear curiosity at a fee each year equal to the
Adjusted Base Charge plus 0.50% (or the Adjusted Base Charge plus 0.25% at any time
the overall debt ratio is lower than or equal to three.25 to 1). The ensures,
covenants, occasions of default and different phrases of the senior credit score facility apply
to the Time period B loans and revolving credit score facility.

As of December 31, 2020, the mixture steadiness excellent underneath the senior
credit score facility was $600.0 million, consisting of $600.0 million in Time period B loans
combination principal steadiness and no balances excellent underneath our revolving
credit score facility. Lamar Media had roughly $736.0 million of unused capability
underneath the revolving credit score facility. For the 12 months ended December 31, 2020, the
Firm recorded a loss on debt extinguishment of roughly $5.6 million
associated to the refinancing of the senior credit score facility.

Be aware Choices. On February 6, 2020, Lamar Media issued, by means of an
institutional non-public placement, $1.0 billion in combination principal quantity of
new senior notes consisting of $600.0 million in combination principal quantity of three
3/4% Senior Notes due 2028 (the "3 3/4% Senior Notes") and $400.0 million in
combination principal quantity of 4% Senior Notes due 2030 (the "4% Senior
Notes"). Lamar Media used the proceeds of this providing to repay its present
Time period A loans, redeem in full all $510.0 million in combination principal quantity of
its excellent 5 3/8% Senior Notes due 2024 and partially repay borrowings
underneath its revolving credit score facility. The Firm recorded a loss on debt
extinguishment of roughly $12.6 million for these transactions, of which
$9.1 million was money associated to its redemption of the 5 3/8% Senior Notes. See
Makes use of of Money-Be aware Redemption for extra data.

On Could 13, 2020, Lamar Media issued, by means of an institutional non-public placement,
$400.0 million in combination principal quantity of 4 7/8% Senior Notes due 2029
(the "4 7/8% Senior Notes"). The issuance of the 4 7/8% Senior Notes resulted in
web proceeds to Lamar Media of roughly $395.0 million. Lamar Media used
the proceeds of this providing to repay excellent borrowings underneath its
revolving credit score facility and for basic company functions.

On August 19, 2020, Lamar Media issued, by means of an institutional non-public
placement, $150.0 million in combination principal quantity of 4% Senior Notes due
2030 (the "Extra 4% Notes"). The issuance was an add-on to the present 4%
Senior Notes due 2030 that Lamar Media issued on February 6, 2020. Aside from
with respect to the issuance date and difficulty worth, the Extra 4% Notes have
the identical phrases because the 4% Senior Notes and resulted in proceeds to Lamar Media of
roughly $146.9 million. Lamar Media used the proceeds of this providing to
redeem a portion of its 5% Senior Subordinated Notes due 2023. See Makes use of of
Money-Be aware Redemption for extra data.

On January 22, 2021, Lamar Media issued, by means of an institutional non-public
placement, $550.0 million in combination principal quantity of three 5/8% Senior Notes
due 2031 (the "3 5/8% Senior Notes"). The issuance of the three 5/8% Senior Notes
resulted in web proceeds to Lamar Media of roughly $542.5 million. Lamar
Media used the proceeds of this providing, along with money readily available and
borrowings underneath the revolving credit score facility and Accounts Receivable
Securitization Program, to redeem all of its excellent $650.0 million
combination principal quantity 5 3/4% Senior Notes due 2026. See Makes use of of Money-Be aware
Redemption for extra data.


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Components affecting sources of liquidity

Internally Generated Funds. The important thing components affecting internally generated money
movement are basic financial situations, particular financial situations within the
markets the place the Firm conducts its enterprise and total spending on
promoting by advertisers. On account of COVID-19, we incurred an hostile
impact on our internally generated money flows for the 12 months ended December 31,
2020, and whereas we're unsure of the timing and tempo of an financial rebound,
we skilled a rise in buyer spending within the six months ended December
31, 2020 in comparison with the six months ended June 30, 2020, which we count on to
proceed into 2021 as extra of the inhabitants turns into vaccinated and authorities
imposed restrictions are eased.

Credit score services and different debt securities. The corporate and Lamar Media should adjust to sure covenants and restrictions referring to the senior credit score facility, its excellent debt obligations and its accounts receivable securitization program.

Restrictions underneath Debt Securities. The Firm and Lamar Media should adjust to
sure covenants and restrictions associated to its excellent debt securities.
As of December 31, 2020, Lamar Media has excellent the $650.0 million 5 3/4%
Senior Notes issued in January 2016 and February 2019 (the "5 3/4% Senior
Notes"), the $600.0 million 3 3/4% Senior Notes issued February 2020, the $550.0
million 4% Senior Notes issued in February 2020 and August 2020, and the $400.0
million 4 7/8% Senior Notes issued in Could 2020.

The indentures referring to Lamar Media's excellent notes limit its capacity
to incur extra indebtedness however allow the incurrence of indebtedness
(together with indebtedness underneath the senior credit score facility), (i) if no default or
occasion of default would consequence from such incurrence and (ii) if after giving
impact to any such incurrence, the leverage ratio (outlined because the sum of
(x) complete consolidated debt plus (y) the mixture liquidation desire of any
most well-liked inventory of Lamar Media's restricted subsidiaries to trailing 4 fiscal
quarter EBITDA (as outlined within the indentures)) can be lower than 7.0 to 1.0.
Presently, Lamar Media isn't in default underneath the indentures of any of its
excellent notes and, due to this fact, can be permitted to incur extra
indebtedness topic to the foregoing provision.

Along with debt incurred underneath the provisions described within the previous
paragraph, the indentures referring to Lamar Media's excellent notes allow
Lamar Media to incur indebtedness pursuant to the next baskets:

• till $ 2.00 billion (or as much as $ 1.50 billion within the case of deeds

governing the 5 3/4% Senior Notes) of senior credit score debt

ease;

• unpaid debt on the date of the deed or of the debt contracted at

refinance excellent debt;

• intra-company debt between Lamar Media and its restricted subsidiaries or

between restricted subsidiaries;

• sure buy money owed and capitalized lease obligations

purchase or lease property within the bizarre course of enterprise which can not

exceed the best of $ 50.0 million or 5% of Lamar Media’s tangible web

        belongings;


  • extra debt to not exceed $75.0 million; and

• till $ 500.0 million licensed securitization financing, excluding

Deeds Governing 5 3/4% Senior Notes.

Restrictions underneath Senior Credit score Facility. Lamar Media is required to conform
with sure covenants and restrictions underneath the senior credit score facility. If the
Firm or Lamar Media fails to adjust to these checks, the lenders underneath the
senior credit score facility can be entitled to train sure treatments, together with
the termination of the lending commitments and the acceleration of the debt
funds underneath the senior credit score facility. At December 31, 2020, and presently,
we have been in compliance with all such checks underneath the senior credit score facility.

Lamar Media should preserve a secured debt ratio, outlined as complete consolidated
secured debt of Lamar Promoting, Lamar Media and its restricted subsidiaries,
minus the lesser of (x) $150.0 million and (y) the mixture quantity of
unrestricted money and money equivalents of Lamar Promoting, Lamar Media and its
restricted subsidiaries (apart from the Particular Goal Subsidiaries (as outlined
above underneath "Sources of Money-Accounts Receivable Securitization Program)) to
EBITDA, as outlined under, for the interval of 4 consecutive fiscal quarters
then ended, of lower than or equal to 4.5 to 1.0.

Lamar Media is prevented from incurring extra money owed topic to exceptions, one in all which is that she might incur extra indebtedness not exceeding the larger of the $ 250.0 million and 6% of its complete belongings.

Lamar Media can also be restricted from incurring extra unsecured senior
indebtedness underneath sure circumstances except, after giving impact to the
incurrence of such indebtedness, it's in compliance with the secured debt ratio
covenant and if, after giving impact to the incurrence of such indebtedness,
Lamar Media would have a complete debt ratio, outlined as (a) complete consolidated
debt (together with subordinated debt) of Lamar Promoting, Lamar Media and its
restricted subsidiaries as of any date minus the lesser of (i) $150.0

                                       38

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million and (ii) the mixture quantity of unrestricted money and money equivalents
of Lamar Promoting, Lamar Media and its restricted subsidiaries (apart from
the Particular Goal Subsidiaries) to (b) EBITDA, as outlined under, for probably the most
latest 4 fiscal quarters then ended, of lower than 7.0 to 1.0.

Lamar Media can also be precluded from incurring extra subordinated debt in sure circumstances, except, after giving impact to the incidence of such indebtedness, it complies with the assured debt ratio clause and its complete debt ratio is lower than 7.0 to 1.0.

Underneath the senior credit score facility, "EBITDA" means, for any interval, working
revenue for Lamar Promoting, Lamar Media and its restricted subsidiaries
(decided on a consolidated foundation with out duplication in accordance with GAAP)
for such interval (calculated (A) earlier than (i) taxes, (ii) curiosity expense,
(iii) depreciation, (iv) amortization, (v) another non-cash revenue or fees
accrued for such interval, (vi) fees and bills in reference to the senior
credit score facility, any precise or proposed acquisition, disposition or funding
(excluding, in every case, purchases and gross sales of promoting area and working
belongings within the bizarre course of enterprise) and any precise or proposed providing
of securities, incurrence or reimbursement of indebtedness (or modification to any
settlement referring to indebtedness), together with any refinancing thereof, or
recapitalization and (vii) any loss or acquire referring to quantities paid or earned
in money previous to the acknowledged settlement date of any swap settlement that has been
mirrored in working revenue for such interval) and for functions of calculating
EBITDA underneath the Fourth Amended and Restated Credit score Settlement, (viii) any loss
on gross sales of receivables and associated belongings to a Securitization Entity in
reference to a Permitted Securitization Financing) and (B) after giving
impact to the quantity of value financial savings, working expense reductions and different
working enhancements or synergies projected by Lamar Media in good religion to be
realized because of any acquisition, funding, merger, amalgamation or
disposition inside 18 months of any such acquisition, funding, merger,
amalgamation or disposition, web of the quantity of precise advantages realized
throughout such interval from such motion; supplied, (a) the mixture quantity for all
such value financial savings, working expense reductions and different working enhancements
or synergies is not going to exceed an quantity equal to fifteen% of EBITDA for the relevant
4 quarter interval and (b) any such adjustment to EBITDA might solely take into
account value financial savings, working expense reductions and different working
enhancements or synergies which might be (I) instantly attributable to such
acquisition, funding, merger, amalgamation or disposition, (II) anticipated to
have a seamless influence on Lamar Media and its restricted subsidiaries and
(III) factually supportable, in every case all as licensed by the chief
monetary officer of Lamar Media) on behalf of Lamar Media, and excluding
(besides to the extent acquired or paid in money by Lamar Promoting, Lamar Media
or any of its restricted subsidiaries revenue or loss attributable to fairness in
associates for such interval), excluding any extraordinary and strange beneficial properties or
losses throughout such interval, and excluding the proceeds of any casualty occasions and
tendencies. For functions hereof, the impact thereon of any changes
required underneath Assertion of Monetary Accounting Requirements No. 141R shall be
excluded. If throughout any interval for which EBITDA is being decided, Lamar Media
has consummated any acquisition or disposition, EBITDA can be decided on a
professional forma foundation as if such acquisition or disposition had been made or
consummated on the primary day of such interval.

The Firm believes that its present degree of money readily available, availability underneath
the senior credit score facility and future money flows from operations are ample
to satisfy its working wants for the subsequent twelve months. All debt obligations are
mirrored on the Firm's steadiness sheet.

Restrictions underneath Accounts Receivable Securitization Program. The agreements
governing the Accounts Receivable Securitization Program comprise customary
representations and warranties, affirmative and detrimental covenants, and
termination occasion provisions, together with however not restricted to these offering for
the acceleration of quantities owed underneath the Accounts Receivable Securitization
Program if, amongst different issues, the Particular Goal Subsidiaries fail to make
funds when due, Lamar Media, the Subsidiary Originators or the Particular
Goal Subsidiaries turn into bancrupt or topic to chapter proceedings or
sure judicial judgments, breach sure representations and warranties or
covenants or default underneath different materials indebtedness, a change of management
happens, or if Lamar Media fails to keep up the utmost secured debt ratio of
4.5 to 1.0 required underneath Lamar Media's senior credit score facility.

Makes use of of money

Capital expenditure. Capital expenditures excluding acquisitions have been roughly $ 62.3 million for the 12 months ended December 31, 2020. We count on our complete capital spending in 2021 to be roughly $ 150.0 million.

Acquisitions. Through the 12 months ended December 31, 2020, the Firm accomplished 14
acquisitions for a complete money buy worth of roughly $45.6 million. The
acquisitions occurring in the course of the 12 months ended December 31, 2020 have been financed
utilizing out there money readily available and borrowings underneath the revolving credit score facility.

Be aware Redemption. On February 20, 2020, the Firm used a portion of the
proceeds from the three 3/4% Senior Notes and 4% Senior Notes to redeem in full all
$510.0 million in combination principal quantity of Lamar Media's 5 3/8% Senior
Notes. The notes have been redeemed at a redemption worth equal to 101.792% of the
combination principal quantity of the excellent notes, plus accrued and

                                       39

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unpaid curiosity till the reimbursement date. The corporate recorded a loss on extinction of debt of roughly $ 12.6 million linked to the redemption of the tickets.

Through the quarter ended September 30, 2020, the Firm redeemed in full all
$535.0 million in combination principal quantity of Lamar Media's excellent 5%
Senior Subordinated Notes due 2023 (the "5% Notes"), redeeming half of the 5%
Notes on August 31, 2020 and the rest on September 16, 2020. The full 5%
Notes redemption was funded with a mix of money readily available, borrowings underneath
the revolving credit score facility and Accounts Receivable Securitization Program
together with proceeds acquired from the Extra 4% Notes issuance accomplished on
August 19, 2020. The redemption resulted in a loss on debt extinguishment of
$7.1 million, of which $4.5 million was in money prepayment penalties.

On February 3, 2021, the Firm redeemed in full all $650.0 million combination
principal quantity 5 3/4% Senior Notes due 2026. The 5 3/4% Senior Notes
redemption was accomplished utilizing the proceeds acquired from the three 5/8% Senior
Notes providing accomplished on January 22, 2021, along with money readily available and
borrowings underneath the revolving credit score facility and Accounts Receivable
Securitization Program. See Sources of Money-Be aware Providing for extra data.

Dividends. Through the 12 months ended December 31, 2020, the Firm declared and
paid distributions of $251.9 million, or $2.50 per share, of frequent inventory.
Through the 12 months ended December 31, 2019, the Firm declared and paid
distributions of $384.8 million or $3.84 per share of frequent inventory. Through the
12 months ended December 31, 2018, the Firm declared distributions of $361.1
million or $3.65 per share of frequent inventory. On February 25, 2021, the Firm's
Board of Administrators permitted a dividend of $0.75 per frequent share to be paid on
March 31, 2021. Topic to the approval of the Firm's Board of Administrators, the
Firm expects combination quarterly distributions to stockholders in 2021 will
be $3.00 per frequent share, together with the dividend payable on March 31, 2021.

The Firm should yearly distribute to its stockholders an quantity equal to at
least 90% of its REIT taxable revenue (decided earlier than the deduction for
distributed earnings and excluding any web capital acquire). The quantity, timing and
frequency of future distributions can be on the sole discretion of the Board of
Administrators and can be declared primarily based upon varied components, a lot of which can
be past the Firm's management, together with monetary situation and working
money flows, the quantity required to keep up REIT standing and scale back any revenue
and excise taxes that the Firm in any other case can be required to pay,
limitations on distributions in our present and future debt devices, the
Firm's capacity to make the most of web working losses to offset, in complete or in
half, the Firm's distribution necessities, limitations on its capacity to
fund distributions utilizing money generated by means of its TRSs and different components that
the Board of Administrators might deem related.

Inventory and Debt Repurchasing Program. On March 16, 2020, the Firm's Board of
Administrators licensed the repurchase of as much as $250.0 million of the Firm's
Class A typical inventory. Moreover, the Board of Administrators has licensed Lamar
Media to repurchase as much as $250.0 million in excellent senior or senior
subordinated notes and different indebtedness excellent now and again underneath
the senior credit score facility. The repurchase program will expire on September 30,
2021 except prolonged by the Board of Administrators. There have been no repurchases underneath
this system as of December 31, 2020. The Firm's administration might choose to not
make any repurchases underneath this system, or might make combination purchases much less
than the overall quantity licensed.

Debt Service and Contractual Obligations. As of December 31, 2020, we had
excellent debt of roughly $2.89 billion. Sooner or later, Lamar Media has
principal discount obligations and revolver dedication reductions underneath the
senior credit score facility. As well as, it has fastened business commitments. These
commitments are detailed on a contractual foundation as follows:



                                                                       Funds Due by Interval
                                                     Much less Than                                            After
Contractual Obligations                 Complete         1 Yr         1 - 3 Years       3 - 5 Years       5 Years
                                                                     (In hundreds of thousands)
Lengthy-term debt                        $ 2,886.5$     122.5     $         0.7     $         0.8     $ 2,762.5
Curiosity obligations on long-term
debt(1)                                   770.0           113.2             222.6             222.5         211.7
Billboard web site, transit, and different
working and financing leases          1,731.6           260.8             394.1             300.6         776.1
Complete funds due                    $ 5,388.1$     496.5$       617.4$       523.9$ 3,750.3

(1) The rates of interest of our variable fee devices assume charges at

    December 2020 ranges.




                                       40
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Expiration quantity per interval

                                      Complete Quantity       Much less Than 1                                               After
Different Business Commitments            Dedicated           Yr

1 to three years 3 to five years 5 years

                                                                          (In hundreds of thousands)
Revolving Financial institution Facility(2)            $       750.0     $           -       $           -     $       750.0     $         -

Stand-by letters of credit score (3) $ 14.0$ 12.7 $ 0.5 $ 0.8 –

(2) Lamar Media had no excellent borrowings underneath the revolving credit score facility

at December 31, 2020.

(3) Standby letters of credit score are issued in Lamar Media’s revolving credit score

and scale back the provision of the power by the identical quantity.



Money Flows

The Firm's money flows supplied by working actions decreased by $61.0
million for the 12 months ended December 31, 2020, primarily ensuing from a
lower in revenues of roughly $184.8 million and offset by a lower in
working bills (excluding stock-based compensation and depreciation and
amortization) of roughly $65.8 million, as in comparison with the comparable
interval in 2019.

Money flows utilized in investing actions decreased $265.1 million from $362.0
million in 2019 to $96.9 million in 2020 primarily because of a web lower within the
quantity of belongings acquired by means of acquisitions and capital expenditures of
$259.4 million, as in comparison with the identical interval in 2019.

The Firm's money flows utilized in financing actions have been $377.9 million for
the 12 months ended December 31, 2020 as in comparison with $264.4 million in 2019. This
enhance in money utilized in financing actions of $113.6 million for the 12 months
ended December 31, 2020 is primarily because of financing transactions in the course of the
12 months and offset by a lower in money paid for dividends and distributions over
the comparable interval in 2019.

CRITICAL ACCOUNTING ESTIMATES

Our dialogue and evaluation of our outcomes of operations and liquidity and
capital assets are primarily based on our consolidated monetary statements, which have
been ready in accordance with GAAP. The preparation of those monetary
statements requires us to make estimates and judgments that have an effect on the reported
quantities of belongings, liabilities, revenues and bills. On an ongoing foundation, we
consider our estimates and judgments, together with these associated to intangible
belongings, goodwill impairment and asset retirement obligations. We base our
estimates on historic and anticipated outcomes and developments and on varied different
assumptions that we imagine are affordable underneath the circumstances, together with
assumptions as to future occasions and, the place relevant, established valuation
strategies. These estimates type the idea for making judgments about carrying
values of belongings and liabilities that aren't readily obvious from different
sources. By their nature, estimates are topic to an inherent diploma of
uncertainty. Precise outcomes might differ from our estimates. We imagine that the
following vital accounting insurance policies and assumptions might contain a better
diploma of judgment and complexity than others.

Goodwill Impairment. The Firm has a major quantity of goodwill on its
consolidated steadiness sheet and should carry out an impairment take a look at of goodwill
yearly or on a extra frequent foundation if occasions and circumstances point out that
the asset could be impaired. We now have recognized two reporting items (Brand
operations and Billboard operations) in accordance with Accounting Requirements
Codification ("ASC") 350 and no modifications have been made to our reporting items
from the prior interval.

In our annual or interim measurement for impairment of goodwill, the Firm
conducts a qualitative evaluation by analyzing related occasions and circumstances
that might have a detrimental influence on the Firm's goodwill, which embody
macroeconomic situations, trade and market situations, value components, total
monetary efficiency, reporting unit tendencies and acquisitions, the market
capitalization of the Firm and different related occasions particular to the Firm.
If, after assessing the totality of occasions or circumstances described above, the
Firm determines that it's extra possible than not that the truthful worth of both
of the Firm's reporting items is lower than its carrying quantity, the Firm
will carry out a quantitative impairment take a look at. If impairment is indicated as a
results of the quantitative impairment take a look at, a goodwill impairment cost would
be recorded to jot down the goodwill all the way down to its implied truthful worth.  Based mostly on the
goodwill impairment evaluation carried out on December 31, 2020, we decided that
the truthful worth of every reporting unit exceeded the carrying worth and no
impairment cost was recorded.

Asset Retirement Obligations. The Firm had an asset retirement obligation of
$222.9 million as of December 31, 2020. This legal responsibility pertains to the Firm's
obligation upon the termination or non-renewal of a lease to dismantle and
take away its billboard buildings from the leased land and to reclaim the positioning to
its authentic situation. The Firm data the current worth of obligations

                                       41

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related to the retirement of tangible long-lived belongings within the interval in
which they're incurred. The legal responsibility is capitalized as a part of the associated
long-lived asset's carrying quantity. Over time, accretion of the legal responsibility is
acknowledged as an working expense and the capitalized value is depreciated over
the anticipated helpful lifetime of the associated asset. In calculating the legal responsibility, the
Firm calculates the current worth of the estimated value to dismantle utilizing an
common value to dismantle, adjusted for inflation and market danger.

This calculation consists of 100% of the Firm's billboard buildings on leased
land (which presently consist of roughly 75,800 buildings). The Firm
makes use of a 15-year retirement interval primarily based on historic working expertise in its
core markets, together with the precise time that billboard buildings have been
situated on leased land in such markets and the precise size of the leases in
the core markets, which incorporates the preliminary time period of the lease, plus
consideration of any renewal interval. Historic third-party value data is
used to estimate the price of dismantling of the buildings and the reclamation
of the positioning. The rate of interest used to calculate the current worth of such prices
over the retirement interval relies on the Firm's historic credit-adjusted
danger free fee.

Acquisitions. The Firm accounts for transactions that meet the definition of
a enterprise and group asset purchases as acquisitions. For transactions that meet
the definition of a enterprise mixture, the Firm allocates the acquisition
worth, together with any contingent consideration, to the belongings acquired and the
liabilities assumed at their estimated truthful values as of the date of the
acquisition with any extra of the acquisition worth paid over the estimated truthful
worth of web belongings acquired recorded as goodwill. For transactions that meet
the definition of a enterprise, the willpower of the ultimate buy worth and
the acquisition-date truthful worth of identifiable belongings acquired and liabilities
assumed might prolong over multiple interval and lead to changes to the
preliminary estimate acknowledged within the prior interval monetary statements. For
transactions that meet the definition of asset group purchases, the Firm
allocates the acquisition worth to the belongings acquired and the liabilities assumed
at their estimated relative truthful values as of the date of the acquisition. If a
transaction is set to be a gaggle of belongings, any direct acquisition prices
are capitalized. Transaction prices for transactions decided to be a enterprise
mixture are expensed as incurred.

The truthful worth of the belongings acquired and liabilities assumed is usually
decided through the use of both estimates of substitute prices or discounted money
movement valuation strategies. When figuring out the truthful worth of tangible belongings
acquired, the Firm should estimate the associated fee to exchange the asset with a brand new
asset, adjusted for an estimated discount in truthful worth because of age of the
asset, and the financial helpful life. When figuring out the truthful worth of
intangible belongings acquired, the Firm should estimate the relevant low cost
fee and the timing and quantity of future money flows.

Lease Liabilities and Proper of Use Property: On January 1, 2019, the Firm
adopted ASU No. 2016-02, "Leases (Codified as ASC 842)," which resulted in
recording working lease liabilities and proper of use belongings on our
consolidated steadiness sheet. Our working lease liabilities (together with
short-term liabilities) and proper of use asset balances have been $1.18 billion and
$1.22 billion as of December 31, 2020, respectively. The steadiness is recorded
primarily based on the current worth of the remaining minimal rental funds underneath the
leasing commonplace for our present working leases. The important thing estimates for our
leases embody (1) the low cost fee used to low cost the unpaid lease funds
to current worth and (2) lease time period. Our leases typically don't embody a
readily determinable implicit fee, due to this fact, utilizing a portfolio method, we
decide our collateralized incremental borrowing fee to low cost the lease
funds primarily based on the knowledge out there at lease graduation. Our lease
phrases embody the noncancellable interval of the lease plus any extra durations
lined by both a Firm possibility to increase (or to not terminate) the lease
that the Firm is cheap sure to train, or an possibility to increase the
lease managed by the lessor. The Firm has decided we aren't moderately
sure to train renewals or termination choices, and because of this we use the
lease's preliminary acknowledged time period because the lease time period for our lease inhabitants.

ACCOUNTING STANDARDS AND REGULATORY UPDATES

In June 2016, the FASB issued ASU 2016-13, Monetary Devices - Credit score Losses
(Matter 326) - Measurement of Credit score Losses on Monetary Devices, and
extra modifications modifications, clarifications, or interpretations associated to
this steering thereafter, which require a reporting entity to estimate credit score
losses on sure forms of monetary devices, and current belongings held at
amortized value and available-for-sale debt securities on the quantity anticipated to
be collected. The brand new steering is efficient for annual and interim durations
starting after December 15, 2019. The Firm adopted this steering on January
1, 2020 and the influence of the adoption was not materials to the Firm's
consolidated monetary statements. As of December 31, 2020, the Firm's
allowance for credit score losses thought-about the present and future impacts attributable to
the COVID-19 pandemic, primarily based on out there data so far. The Firm will
proceed to actively monitor the influence of COVID-19 on anticipated credit score losses.


                                       42
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LAMAR MEDIA CORP.

The next is a dialogue of the consolidated monetary situation and
outcomes of operations of Lamar Media for the years ended December 31, 2020, 2019
and 2018. This dialogue needs to be learn together with the consolidated
monetary statements of Lamar Media and the associated notes.

RESULTS OF OPERATIONS

The next desk presents sure gadgets within the Consolidated Statements of
Revenue as a proportion of web revenues for the years ended December 31, 2020,
2019 and 2018:



                                          Yr Ended December 31,
                                       2020        2019         2018
Internet revenues                            100.0 %     100.0 %      100.0 %
Working bills:
Direct promoting bills              35.5 %      33.6 %       34.5 %

Common and administrative bills 18.3% 18.2% 17.8% Company bills

                        4.5 %       4.8 %        5.1 %
Depreciation and amortization            16.0 %      14.3 %       13.8 %
Working revenue                         26.2 %      29.5 %       28.3 %
Loss on extinguishment of debt            1.6 %         -          0.9 %
Curiosity expense                          8.8 %       8.6 %        8.0 %
Revenue tax expense (profit)              0.3 %      (0.2 )%       0.7 %
Internet revenue                               15.5 %      21.2 %       18.8 %



Yr ended December 31, 2020 in comparison with the 12 months ended December 31, 2019

Internet revenues decreased $184.8 million or 10.5% to $1.57 billion for the 12 months
ended December 31, 2020 from $1.75 billion for a similar interval in 2019. This
lower was attributable primarily to a lower in billboard and transit web
revenues of $134.3 million and $49.2 million, respectively, over the prior
interval, which is primarily associated to the consequences of the continued COVID-19
pandemic.

Internet revenues for the 12 months ended December 31, 2020, as in comparison with
acquisition-adjusted web revenues for the comparable interval in 2019, decreased
$191.2 million, or 10.9%. The $191.2 million lower in web revenues is
primarily because of a $146.9 million and $46.9 million lower in billboard and
transit web revenues, respectively, that are as a result of results of the continued
pandemic. The lower in billboard and transit web revenues was barely offset
by a rise of $2.6 million in emblem web revenues. See "Reconciliations"
under.

Complete working bills, unique of depreciation and amortization and (acquire)
loss on disposition of belongings, decreased $76.7 million, or 7.7% to $916.0
million for the 12 months ended December 31, 2020 from $992.7 million in the identical
interval in 2019. The $76.7 million lower over the prior 12 months is primarily
comprised of a lower in complete direct, basic and administrative and
company bills (excluding stock-based compensation) of $65.8 million
primarily associated to reductions in our billboard lease prices, transit and
airport franchise prices, in addition to reductions in our workforce.

Depreciation and amortization expense elevated $1.3 million to $251.3 million
for the 12 months ended December 31, 2020 as in comparison with $250.0 million for a similar
interval in 2019.

For the 12 months ended December 31, 2020, Lamar Media acknowledged a acquire on
disposition of belongings of $9.0 million as in comparison with a acquire on disposition of
belongings of $7.2 million for a similar interval in 2019. The acquire on disposition of
belongings for the 12 months ended December 31, 2020 was primarily from beneficial properties on the sale
of billboard belongings of $4.5 million and a $3.2 million acquire from the sale of the
Firm plane in December 2020.

Due primarily to the above components, working revenue decreased $107.6 million to
$410.6 million for the 12 months ended December 31, 2020 in comparison with $518.2 million
for a similar interval in 2019.

Through the 12 months ended December 31, 2020, Lamar Media recorded a $25.2 million
loss on debt extinguishment associated to Lamar Media's early reimbursement of its 5
3/8% Senior Notes and 5% Senior Subordinated Notes and refinancing of the senior
credit score facility. The $25.2 million loss is comprised of a money redemption
premium and costs of $14.3 million and a non-cash write off of unamortized
deferred financing prices of roughly $10.9 million. See "Makes use of of Money" for
extra data.

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Curiosity expense decreased $13.0 million for the 12 months ended December 31, 2020 to
$137.6 million as in comparison with $150.6 million for the 12 months ended December 31,
2019. The lower in curiosity expense is primarily associated Lamar Media's debt
transactions accomplished in 2020, in addition to a discount in our senior credit score
facility rates of interest.

The lower in working revenue and enhance in loss on extinguishment of debt,
offset by the lower in curiosity expense over the comparable interval in 2019,
resulted in a $119.8 million lower in web revenue earlier than revenue taxes.

Lamar Media recorded revenue tax expense of $4.7 million for the 12 months ended
December 31, 2020 as in comparison with an revenue tax good thing about $4.2 million for the
similar interval in 2019. The $4.7 million tax expense equates to an efficient tax
fee for the 12 months ended December 31, 2020 of roughly 1.9%, which differs
from the federal statutory fee primarily because of our qualification for taxation
as a REIT and changes for international gadgets.

On account of the above components, Lamar Media acknowledged web revenue for the 12 months
ended December 31, 2020 of $243.9 million, as in comparison with web revenue of $372.5
million for a similar interval in 2019.

Reconciliations:

As a result of acquisitions occurring after December 31, 2018 have contributed to our
web income outcomes for the durations offered, we offer 2019
acquisition-adjusted web income, which adjusts our 2019 web income for the
12 months ended December 31, 2019 by including to or subtracting from it the online income
generated by the acquired or divested belongings previous to our acquisition or
divestiture of those belongings for a similar timeframe that these belongings have been owned
within the 12 months ended December 31, 2020.

Reconciliations of 2019 reported web income to 2019 acquisition-adjusted web
income for the 12 months ended December 31, 2019 in addition to a comparability of 2019
acquisition-adjusted web income to 2020 reported web income for the 12 months ended
December 31, 2020, are supplied under:

Reconciliation and Comparability of Reported Internet Income to Acquisition-Adjusted
Internet Income



                            Yr ended December 31,
                              2020            2019
                                 (in 1000's)
Reported web income      $  1,568,856$ 1,753,644
Acquisition web income              -           6,438
Adjusted totals           $  1,568,856$ 1,760,082

Key efficiency indicators

Adjusted web revenue / EBITDA

(in 1000's)



                                                                                Quantity of        %
                                                Yr Ended December 31,         Enhance        Enhance
                                                  2020             2019        (Lower)      (Lower)
Internet revenue                                    $    243,873$ 372,540$  (128,667 )         (34.5 )%
Revenue tax expense (profit)                         4,660          (4,222 )         8,882
Loss on extinguishment of debt                      25,235               -

25 235

Curiosity expense, web                              136,826         149,852         (13,026 )
Acquire on disposition of belongings                       (9,026 )        (7,241 )        (1,785 )
Depreciation and amortization                      251,296         250,028

1,268

Impression of ASC 842 adoption                               -           3,894          (3,894 )
Capitalized contract success prices, web            387          (9,186 )         9,573
Inventory-based compensation expense                    18,772          29,647         (10,875 )
Adjusted EBITDA                               $    672,023$ 785,312$  (113,289 )         (14.4 )%




Adjusted EBITDA for the 12 months ended December 31, 2020 decreased 14.4% to $672.0
million. The lower in adjusted EBITDA was primarily attributable to the
lower in our gross margin (web income much less direct promoting expense,
unique of depreciation and amortization, capitalized contract success
prices, web and the influence of ASC 842 adoption) of $146.5 million, and

                                       44

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was partially offset by a lower typically and administrative and company
bills of $33.2 million, excluding the influence of stock-based compensation
expense.

Internet Revenue/FFO/AFFO

(in 1000's)



                                                                             Quantity of        %
                                             Yr Ended December 31,         Enhance        Enhance
                                               2020             2019        (Lower)      (Lower)
Internet revenue                                 $    243,873$ 372,540$  (128,667 )         (34.5 )%
Depreciation and amortization associated to
actual property                                     238,932         235,802

3 130

Acquire from disposition of actual property
belongings and
  investments                                    (5,790 )        (6,775 )

985

Non-cash tax profit for REIT transformed
belongings                                                -         (17,031 )

17,031

Changes for unconsolidated
associates and
  non-controlling curiosity                          629             771            (142 )
FFO                                        $    477,644$ 585,307$  (107,663 )         (18.4 )%
Straight-line expense (revenue)                    3,597            (361 )

3 958

Impression of ASC 842 adoption                            -           3,894          (3,894 )
Capitalized contract success prices,
web                                                 387          (9,186 )

9,573

Inventory-based compensation expense                 18,772          29,647         (10,875 )
Non-cash portion of tax provision                  (797 )         2,901          (3,698 )
Acquire from one-time sale of non-real
property belongings                                    (3,197 )             -          (3,197 )
Non-real property associated depreciation and
amortization                                     12,364          14,226          (1,862 )
Amortization of deferred financing prices          5,909           5,365

544

Loss on extinguishment of debt                   25,235               -

25 235

Capital expenditures - upkeep              (24,028 )       (49,155 )

25,127

Changes for unconsolidated
associates and
  non-controlling curiosity                         (629 )          (771 )           142
AFFO                                       $    515,257$ 581,867$   (66,610 )         (11.4 )%




FFO for the 12 months ended December 31, 2020 was $477.6 million as in comparison with FFO
of $585.3 million for a similar interval in 2019. AFFO for the 12 months ended
December 31, 2020 decreased 11.4% to $515.3 million as in comparison with $581.9
million for a similar interval in 2019. The lower in AFFO was primarily
attributable to the lower in our gross margin (web income much less direct
promoting expense, unique of depreciation and amortization, capitalized
contract success prices, web and the influence of ASC 842 adoption), offset by
decreases typically and administrative and company bills (excluding the
impact of inventory primarily based compensation expense).

Yr ended December 31, 2019 in comparison with the 12 months ended December 31, 2018

Internet revenues elevated $126.4 million or 7.8% to $1.75 billion for the 12 months
ended December 31, 2019 from $1.63 billion for a similar interval in 2018. This
enhance was attributable primarily to a rise in billboard web revenues of
$124.6 million or 8.8% over the prior interval, which is primarily associated to the
integration of out of doors belongings acquired throughout 2018 and 2019, and the addition of
roughly 330 digital shows in the course of the 12 months ended December 31, 2019. In
addition, transit income elevated $2.1 million, which represents a rise
of 1.6% over the prior interval.

Internet revenues for the 12 months ended December 31, 2019, as in comparison with
acquisition-adjusted web revenues for the comparable interval in 2018, elevated
$45.7 million, or 2.7%. The $45.7 million enhance in income primarily
consisted of a $41.7 million enhance in billboard income primarily because of
will increase in digital income and a $4.1 million enhance in transit income over
the acquisition-adjusted web income for the comparable interval in 2018. See
"Reconciliations" under.

Complete working bills, unique of depreciation and amortization and (acquire)
loss on disposition of belongings, elevated $58.9 million, or 6.3% to $992.7
million for the 12 months ended December 31, 2019 from $933.8 million in the identical
interval in 2018. The $58.9 million enhance over the prior 12 months is primarily
comprised of a rise in complete direct, basic and administrative and
company bills (excluding stock-based compensation) of $58.7 million
primarily associated to the operations of our outside promoting belongings.

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Depreciation and amortization expense elevated $24.8 million to $250.0 million
for the 12 months ended December 31, 2019 as in comparison with $225.3 million for a similar
interval in 2018, primarily associated to the addition of roughly $516.2
million of depreciable belongings acquired by means of acquisitions and $258.6 million
in capitalized expenditures throughout fiscal years 2018 and 2019.

For the 12 months ended December 31, 2019, Lamar Media acknowledged a acquire on
disposition of belongings of $7.2 million primarily ensuing from an modification of a
transit contract within the first quarter of 2019. The acquire in 2019 represents an
enhance of $14.5 million over the identical interval in 2018, largely as a result of acquire
in 2019 coupled with Media's loss acknowledged in 2018 on the sale of its Puerto
Rico belongings in April of 2018 of $7.8 million.

Due primarily to the above components, working revenue elevated $57.2 million to
$518.2 million for the 12 months ended December 31, 2019 in comparison with $461.0 million
for a similar interval in 2018.

Through the 12 months ended December 31, 2018, Lamar Media recorded a $15.4 million
loss on debt extinguishment associated to Lamar Media's prepayment of its 5 7/8%
Senior Subordinated Notes due 2022. The $15.4 million loss is comprised of a
money redemption premium of $9.8 million and a non-cash write off of unamortized
deferred financing prices of roughly $5.6 million. See "Makes use of of Money" for
extra data. There have been no transactions leading to a loss on debt
extinguishment in fiscal 12 months 2019.

Curiosity expense elevated $20.9 million for the 12 months ended December 31, 2019 to
$150.6 million as in comparison with $129.7 million for the 12 months ended December 31,
2018. The rise in curiosity expense is primarily associated to the elevated
debt excellent as in comparison with the identical interval in 2018.

The rise in working revenue and reduce in loss on extinguishment of debt,
offset by the rise in curiosity expense over the comparable interval in 2018,
resulted in a $52.0 million enhance in web revenue earlier than revenue taxes.

Lamar Media recorded an revenue tax good thing about $4.2 million for the 12 months ended
December 31, 2019 as in comparison with revenue tax expense of $10.7 million for the
similar interval in 2018. The $4.2 million profit is comprised of a $17.0 million
non-cash tax profit ensuing from REIT transformed belongings offset by revenue tax
expense of $12.8 million. The $12.8 million tax expense equates to an efficient
tax fee for the 12 months ended December 31, 2019 of roughly 3.5%, which
differs from the federal statutory fee primarily because of our qualification for
taxation as a REIT and changes for international gadgets.

On account of the above components, Lamar Media acknowledged web revenue for the 12 months
ended December 31, 2019 of $372.5 million, as in comparison with web revenue of $305.6
million for a similar interval in 2018.

Reconciliations:

As a result of acquisitions occurring after December 31, 2017 have contributed to our
web income outcomes for the durations offered, we offer 2018
acquisition-adjusted web income, which adjusts our 2018 web income for the
12 months ended December 31, 2018 by including to or subtracting from it the online income
generated by the acquired or divested belongings previous to our acquisition or
divestiture of those belongings for a similar timeframe that these belongings have been owned
within the 12 months ended December 31, 2019.

Reconciliations of 2018 reported web income to 2018 acquisition-adjusted web
income for the 12 months ended December 31, 2018 in addition to a comparability of 2018
acquisition-adjusted web income to 2019 reported web income for the 12 months ended
December 31, 2019, are supplied under:

Reconciliation and Comparability of Reported Internet Income to Acquisition-Adjusted
Internet Income



                            Yr ended December 31,
                              2019            2018
                                 (in 1000's)
Reported web income      $  1,753,644$ 1,627,222
Acquisition web income              -          80,745
Adjusted totals           $  1,753,644$ 1,707,967




                                       46
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Key Efficiency Indicators

Internet Revenue/Adjusted EBITDA

(in 1000's)



                                                                                 Quantity of         %
                                                Yr Ended December 31,          Enhance         Enhance
                                                  2019             2018         (Lower)       (Lower)
Internet revenue                                    $    372,540$ 305,631$      66,909            21.9 %
Revenue tax (profit) expense                        (4,222 )        10,697           (14,919 )
Loss on extinguishment of debt                           -          15,429           (15,429 )
Curiosity expense (revenue), web                     149,852         129,198

20 654

(Acquire) loss on disposition of belongings                (7,241 )         7,233           (14,474 )
Depreciation and amortization                      250,028         225,261

24 767

Impression of ASC 842 adoption                           3,894               -             3,894
Capitalized contract success prices, web         (9,186 )             -            (9,186 )
Inventory-based compensation expense                    29,647          29,443               204
Adjusted EBITDA                               $    785,312$ 722,892$      62,420             8.6 %




Adjusted EBITDA for the 12 months ended December 31, 2019 elevated 8.6% to $785.3
million. The rise in adjusted EBITDA was primarily attributable to the
enhance in our gross margin (web income much less direct promoting expense,
unique of depreciation and amortization, capitalized contract success
prices, web and the influence of ASC 842 adoption) of $92.7 million, and was
partially offset by a rise typically and administrative and company
bills of $30.3 million, excluding the influence of stock-based compensation
expense and the influence of ASC 842 adoption.

Internet Revenue/FFO/AFFO

(in 1000's)

                                                                              Quantity of         %
                                             Yr Ended December 31,          Enhance         Enhance
                                               2019             2018         (Lower)       (Lower)
Internet revenue                                 $    372,540$ 305,631$      66,909            21.9 %
Depreciation and amortization associated to
actual property                                     235,802         212,457

23 345

(Acquire) loss from disposition of actual
property belongings and
  investments                                    (6,775 )         8,689           (15,464 )
Non-cash tax profit for REIT transformed
belongings                                          (17,031 )             -           (17,031 )
Changes for unconsolidated
associates and
  non-controlling curiosity                          771             648               123
FFO                                        $    585,307$ 527,425$      57,882            11.0 %
Straight-line revenue                               (361 )        (2,036 )           1,675
Impression of ASC 842 adoption                        3,894               -

3 894

Capitalized contract success prices,
web                                              (9,186 )             -            (9,186 )
Inventory-based compensation expense                 29,647          29,443

204

Non-cash portion of tax provision                 2,901             660

2 241

Non-real property associated depreciation and
amortization                                     14,226          12,804

1422

Amortization of deferred financing prices          5,365           4,920

445

Loss on extinguishment of debt                        -          15,429           (15,429 )
Capital expenditures - upkeep              (49,155 )       (43,108 )          (6,047 )
Changes for unconsolidated
associates and
  non-controlling curiosity                         (771 )          (648 )            (123 )
AFFO                                       $    581,867$ 544,889$      36,978             6.8 %


FFO for the 12 months ended December 31, 2019 was $585.3 million as in comparison with FFO
of $527.4 million for a similar interval in 2018. AFFO for the 12 months ended
December 31, 2019 elevated 6.8% to $581.9 million as in comparison with $544.9 million
for a similar interval in 2018. AFFO progress was primarily attributable to the
enhance in our gross margin (web income much less direct promoting expense,
unique of depreciation and amortization, capitalized contract success
prices, web and the influence of ASC 842 adoption), offset by will increase typically
and administrative and company bills (excluding the impact of inventory primarily based
compensation expense and the influence of ASC 842 adoption).

                                       47

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