Q4 2024 Lamar Advertising Co Earnings Call
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Speaker Change: <unk> fourth quarter 2024 earnings release, which contains information required by regulation G regarding certain non-GAAP financial measures was furnished to the SEC on a form 8-K. This morning and is available on the investors section of the <unk> website Www Dot Lamar Dot Com I would now like to turn the conference over to Mr. Sean Reilly. Please.
Speaker Change: Go ahead Sir.
Sean Reilly: Thank you Bob Good morning, and welcome to Lamar's Q4, 2024 earnings call.
Sean Reilly: We ended 2024 and a positive net revenue growth accelerated from Q3 aided by political with local and programmatic again, leading the way.
Sean Reilly: For the quarter revenue was up four 1% on an acquisition adjusted basis compared to Q4 of 2023. These increases across all our lines of business outdoor logos transit and airport.
Sean Reilly: Dry grew three 9% on the same acquisition adjusted basis.
Sean Reilly: As a result, we delivered full year <unk> was $7.
Sean Reilly: And 99 cents per share four cents above the top end of the revised guidance range that we provided at the end of Q3 and 17 cents above the top end of our original guidance for 2024.
Sean Reilly: For the full year <unk> per share increased 7% bolstered by acquisition adjusted revenue growth of four 2% EBITDA growth of four 5% and a slight improvement in our EBITDA margin to 46, 8% all of which allowed us to increase our distribution by 13%.
Sean Reilly: As we think about 2025, we anticipate another year of growth local sales remained solid and it feels like national is firming up after a couple of tough years.
Sean Reilly: As you saw on the release, we are guiding to full year <unk> per share in the range of $8.13 to $8 28.
Sean Reilly: Embedded within that guidance is an expectation for acquisition adjusted revenue growth in the range of 3% with a similar percentage increase in operating expenses.
Sean Reilly: Year over year revenue growth will be more modest in the first quarter recall that we had an extra sales day last year due to the leap year, but our pacing show that growth is picking up as the year unfolds and last night, we announced another significant increase in our dividend for 2025 to a run rate of $6 20.
Sean Reilly: <unk> per share.
Sean Reilly: Back to Q4 in.
Sean Reilly: In addition to political categories of strength included service buildings in constructions and government and nonprofit while health care and insurance were weaker.
Sean Reilly: For the Billboard business, both local and National Slash programmatic grew three 5% for the quarter.
Sean Reilly: Digital of course led the way in Q4, increasing nearly 8% versus the year earlier quarter, including a three 7% same store growth with particular strength in programmatic, which was up nearly $3 million or 30%.
Sean Reilly: That same store growth the best of any quarter in 2024 gives us confidence that it's the right decision to Reaccelerate, our rollout of new units New digital units in 2025 with the goal of deploying at least 350 new displays organically.
Sean Reilly: We will of course also add digital displays through M&A as well in 2025 as you know the market was relatively quiet in 2024, and we tempered our own activity as we focused on further improving our already strong balance sheet.
Sean Reilly: We ultimately spent about $45 million and acquisitions in 2024, we anticipate a more active year in 2025, if I had to call. It now I would say count on about $150 million in deals, though it could be even more than that.
Sean Reilly: Now, we're more accustomed to being a buyer not a seller in the M&A world, but as noted in the release earlier. This year, we divested our 20% interest in Vista media, the leading programmatic platform for out of home, we sold the T mobile as part of their acquisition of all of this stock. It was a resoundingly successful investment for Lamar we paid 30.
Sean Reilly: Million in 2021 for our 20% stake and we received a $115 million from T. Mobile earlier. This month with 15 million more do once S. Grows are released I want to come in Ross Reilly, who led this this star investment for us.
Speaker Change: Jay will have more to say about our plans for the Vista, our proceeds but I wanted to note that the decision by T. Mobile one of the best known consumer brands and most sophisticated marketers around to acquire this star is a testament to their faith in out of home is a powerful communications medium with a promising future. We are confident that they can utilize their data.
Speaker Change: And market insights to take this star and programmatic out of home to New Heights.
Speaker Change: Finally, before I turn it over to Jay I want to thank everyone across Lamar land for their hard work and dedication in 2024, I can't say it enough. We have the best team in out of home and I can't wait to see what more we will be able to accomplish together in 2025 Jack thanks.
Speaker Change: Thanks, Shaun I couldn't agree with you more.
Speaker Change: Good morning, everyone and thank you for joining US we had a solid fourth quarter and are pleased with our results, which exceeded internal expectations across revenue adjusted EBITDA and <unk>.
Speaker Change: Growth in <unk> continued in the fourth quarter diluted <unk> per share increased five 2% to $2.21 versus $2.10 in the fourth quarter of 2023.
Speaker Change: In addition, the company ended the year above the high end of our revised outlook, which we increased following both the first and third quarters of last year.
Speaker Change: Despite growth in operating expenses adjusted EBITDA margin for the quarter held strong at 48, 1% and continues to exceed pre COVID-19 levels.
Speaker Change: Adjusted EBITDA for the quarter was $278 $5 million compared to $268 $2 million in 2023 which was an increase of three 9%.
Speaker Change: Free cash flow also improved in the quarter growing eight 5% over Q4 2023.
Speaker Change: In the quarter, depreciation and amortization expense increased $164 $9 million growing over 230%.
Speaker Change: This was primarily due to a revision in the cost estimate included in the calculation of the Companys asset retirement obligations.
Speaker Change: Oh.
Speaker Change: Aero accounts for Lamar has the obligation to dismantle every move over 71000 Billboard structures on leased land and restore the sites to original condition.
Speaker Change: We test our arrow estimate annually and the cost to retire these assets has risen substantially which led to an increase in our depreciation and amortization expense during the quarter.
Speaker Change: However, the expense is a noncash item and does not impact the company's adjusted EBITDA or <unk>.
Speaker Change: For the full year acquisition acquisition adjusted revenue increased four 2% to 2.21 billion compared to $2 $1 billion the prior year.
Speaker Change: Operating expenses grew approximately 4% against a difficult 2023 comparison, and which acquisition adjusted expenses increased only 1%.
Speaker Change: Adjusted EBITDA was $1.03 billion, which represents an increase of four 5% on an acquisition adjusted basis. Adjusted EBITDA margin was 46, 8% for the full year, expanding 10 basis points versus a year ago.
Speaker Change: We were pleased to see margins hold steady given upward pressure on the expense side.
Speaker Change: The company ended 2024 with full year diluted <unk> of $7 99 per share, which was above the top end of our revised guidance for the 12 months ended December 31 diluted <unk> per share increased 7% compared to full year 2023.
Speaker Change: The acceleration in <unk> growth was driven by a strong top line and we also benefited from the pause in short term interest rate hikes.
Speaker Change: Faced significant interest rate headwinds in both 2022, and 2023 that subsided last year with cash interest remaining relatively flat in 2024.
Speaker Change: Local and regional sales accounted for approximately 78% of Billboard revenue in Q4, similar to the same period in 2023 and growing for the 15th consecutive quarter.
Speaker Change: In fact, the first quarter of 2021 was the last quarter in which we saw a year over year decline in local and regional sales.
Speaker Change: A COVID-19 impacted quarter in comparison to the pre COVID-19 period, a year prior in 2020.
Speaker Change: This consistent performance exhibits the resilience of our core local advertising business and differentiates the company from our peer group.
Speaker Change: Moving to capital expenditures total spend for the quarter was approximately $43 million, including $16 $3 million of maintenance Capex and for the full year capex totaled $125 $3 million with maintenance capex comprising $52 million.
Speaker Change: As for our balance sheet, we have a well lettered debt maturity schedule with no maturities until the term loan b in 2027.
Speaker Change: Last year, we use a substantial amount of our cash flow after distributions to repay outstanding under the term loan a and reduced overall debt by $136 million.
Speaker Change: We currently have approximately $3 billion in total consolidated debt at a weighted average interest rate is four 6% with a weighted average debt maturity of three eight years.
Speaker Change: As defined under our credit facility, we ended the quarter with total leverage of 283 times net debt to EBITDA, which remains amongst the lowest level ever for the company.
Speaker Change: Our secured debt leverage with 082 times at quarter end and we are comfortably in compliance with both our total debt in currents and secured debt maintenance test against the covenant of seven times and four five times respectively.
Speaker Change: As a result of the focus on our balance sheet. The company is well positioned to resume more normal acquisition activity with an investment capacity well over $1 billion. In addition, we have the ability to deploy this capital while remaining at or below the high end of our total leverage range of three five to four times.
Speaker Change: Net debt to EBITDA.
Speaker Change: Our liquidity and access to capital remains strong as the company continues to enjoy access to both the debt and equity capital markets.
As of December 31.
Speaker Change: We had just over $500 million in total liquidity comprised of $49 $5 million of cash on hand, and $457 million available under our revolver.
Sean Reilly: As Sean mentioned subsequent subsequent to quarter in T mobile acquired 100% of his star media a.
Speaker Change: A company in which we had a 20% investment.
Speaker Change: Lamar received $115 million as consideration for the sale and we may receive an additional $15 million from escrow following certain post closing conditions.
Speaker Change: Proceeds from the sale were used to repay outstandings under our revolving credit facility and the current balance on our revolver is $119 million.
Speaker Change: The $130 million in total consideration is return of over four times. Our initial investment in the company, we will recognize a taxable gain of approximately $100 million on the transaction.
Speaker Change: The <unk> investment was held within our taxable REIT subsidiary and the gain is subject to federal and state income taxes prior to distribution to the REIT.
Speaker Change: As part of distributing funds to the REIT, we plan to use a portion of the cash after taxes to repay intercompany loans from the REIT to the Trs.
Speaker Change: We also intend to utilize additional tax deductions at the REIT, which will further reduce our taxable income.
Speaker Change: As a result, we currently estimate our distribution requirements associated with the Vista sale to be in the $15 million to $20 million range and will likely be distributed in the form of a special dividend at year end.
Speaker Change: In this morning's press release, we provided full year <unk> guidance of $8.13 to $8 28 per share.
Speaker Change: Reflecting <unk> growth of 1.8 to three 6% over 'twenty 'twenty four.
Speaker Change: At the midpoint of guidance, we expect top line growth of about 3% and operating expenses should grow slower in 2024.
Speaker Change: As we did last year, we are assuming sofa remains flat for purposes of cash interest and have included $152 million in our guidance.
Speaker Change: Our maintenance Capex budget for the year is anticipated to be $60 million in 2025, which is $8 million more than last year.
Speaker Change: And finally cash taxes are projected to come in at approximately $10 million.
Speaker Change: Yesterday, our board of directors approved a first quarter dividend of $1 55 per share and we expect to distribute a regular dividend of at least $6 12 per share in 2025.
Speaker Change: This excludes any required distributions, resulting from the Vista sale.
Speaker Change: On an annualized basis, the Q1 dividend represents a yield of four 7% at yesterday's closing stock price as a reminder, the company's dividend is based on taxable income.
Speaker Change: Subject to board approval.
Speaker Change: Our dividend policy remains to distribute 100% of our taxable income.
Speaker Change: Again, we were pleased with our fourth quarter performance and the strong finish to 2024.
Speaker Change: Look forward to executing on our strategy in 2025.
Sean Reilly: Now I'll turn the call back over to Sean.
Sean Reilly: Thanks, Jay I'll go through some of the familiar stats I'll start with our relative regional strength and weakness.
Sean Reilly: Q4 was paced by our northeast region, which came in at up.
Six 7% on the revenue side.
Sean Reilly: Relative weakness a Gulf coast came in at up 3% Interestingly that is the complete inverse of what happened last year, when the golf coast pace the company and the northeast was.
Sean Reilly: Struggling a tad.
Sean Reilly: On to political.
Sean Reilly: Q4, political represented $14.5 million and our book for the for Q4 that compares to $2 $9 million in Q4.
Sean Reilly: Of 2023.
Sean Reilly: For the full year.
Sean Reilly: Political came in at $29 $2 million.
Sean Reilly: Compared to 2020 threes seven $5 million.
Sean Reilly: You know there is some.
Sean Reilly: <unk> as we think about replacing the impact of political particularly in Q4.
Sean Reilly: As I've said, many times political tends to break late.
Sean Reilly: So we don't know how much of that $14 five crowded out customers that otherwise would've bought the space.
Sean Reilly: We also don't know how strong political is going to be this year.
Sean Reilly: So that's that's a stay tuned in terms of all of our guidance.
Sean Reilly: Onto.
Number of digital units, we concluded the year with 4994 digital units in the air.
Sean Reilly: As compared to last year's year end number, which was 4759 or an increase of 235.
Sean Reilly: As I mentioned, we anticipate significantly ramping our digital deployment this year.
Sean Reilly: And.
Sean Reilly: Our stretch goal is something in the neighborhood of 375.
Sean Reilly: Let's let's say at least $3 50.
Sean Reilly: Same store revenue was a good story in Q4 up.
Sean Reilly: Three 7%.
Sean Reilly: Again paced by programmatic, which was up.
Sean Reilly: Little north of 30%.
Sean Reilly: For the year same board digital revenue was up two 8%.
Sean Reilly: Programmatic was up.
Sean Reilly: A little over 48%.
Sean Reilly: For 2025, we're budgeting programmatic to be up.
Sean Reilly: Give or take mid teens.
Sean Reilly: And we're off to a very good start with programmatic.
Sean Reilly: Local national Q4 National represented 22, 1% of our book.
Sean Reilly: Local regional was at 77, 9%, that's 1% up for local over Q4 of 2023, 1% down for National.
Sean Reilly: Yeah.
Sean Reilly: Q4, though was a different story national rebound at local regional and was up three 5% and national Slash programmatic was up three 5% as we move into Q1.
Sean Reilly: As I mentioned Q1's got a difficult comp for us.
Sean Reilly: It's not going to be up to the same degree as we anticipate the full year.
Sean Reilly: And national is.
Sean Reilly: Give or take flattish with sequential improvement modest sequential improvement as we move through the year.
Categories of relative strength.
Sean Reilly: As I mentioned service.
Sean Reilly: Q4 up.
Sean Reilly: 10, 7%.
Sean Reilly: Public service Slash government.
Sean Reilly: 13, 7% Bill.
Sean Reilly: Building and construction up 17, 9%.
Sean Reilly: And <unk>.
Sean Reilly: Categories relative mentioned.
Sean Reilly: Relative weakness health care down six 6% and insurance down 5%.
Sean Reilly: That's it for our comments, we are happy to open it up for questions certainly.
Speaker Change: Certainly Mr. Riley. Thank you, ladies and gentlemen at this time, if you would like to ask a question. Please press star one if you find your questions had been addressed you can remove yourself from the queue by pressing star to once again star one for questions and we'll go first this morning to Cameron Mcveigh of Morgan Stanley. Please go ahead.
Sean Reilly: Okay.
Cameron McVeigh: Hey, good morning, guys.
Hey, Kevin.
Speaker Change: It's good to hear the National AD spend it's firming up a bit curious if that's driven by any specific vertical or if it's more broad based and you're in your view what may be driving the turnaround there.
Cameron McVeigh: And then secondly, the <unk>.
Cameron McVeigh: 25, <unk> guidance was a bit below street estimates estimates it seems to be a function of lower expected net income.
Cameron McVeigh: And I believe you said you expect 3% acquisition adjusted revenue growth of 25 is that driving most of this or are you expecting higher costs anywhere maybe ERP or corporate expenses any color there would be helpful. Thank you.
Cameron McVeigh: Okay.
Cameron McVeigh: Sure.
Cameron McVeigh: So let's start with the <unk> question. So there were a couple of things that contributed last year that will not contribute this year I would note.
Cameron McVeigh: We won't we won't have the benefit of the visit our net income.
Cameron McVeigh: This year that we had last year that contributed to <unk> growth.
Cameron McVeigh: And we also have.
Cameron McVeigh: As Jay mentioned slightly higher maintenance capex going to be us.
Cameron McVeigh: <unk> headwind when it comes to <unk> growth.
Cameron McVeigh: The elevated expenses.
Cameron McVeigh: Recall that we are in peak spend for our ERP conversion.
Cameron McVeigh: So you're going to see again continued corporate growth.
Cameron McVeigh: Growth in expenditures until we get through our conversion, which we anticipate.
Cameron McVeigh: Around Q1 of next year.
Cameron McVeigh: And as we move into <unk>.
Cameron McVeigh: 26% 27, you're going to see corporate expenses decline.
Cameron McVeigh: Pretty significantly.
Cameron McVeigh: So yes, I think those are the those are the primary ingredients in what's going on with the <unk> growth and of course, the the revenue guide Q.
Cameron McVeigh: Q1 is going to be.
Cameron McVeigh: A little softer for US and then we're going to accelerate as we move through the year and then you know as I mentioned Q4, right now the pacings look quite nice.
Cameron McVeigh: But we do have to work diligently to replace those political dollars Cameron just to add a little bit of color there between capex and the loss of this starts about a 13 cent headwind.
Cameron McVeigh: And then also as you recall, we had some muted acquisition activity last year. So if you look at it.
Cameron McVeigh: On a pro forma as actual basis.
Cameron McVeigh: Acquisitions are only adding about 20 basis points this year.
Cameron McVeigh: Typically you would add a little more to ASO.
Speaker Change: Got it that's helpful. Thank you.
Thank you we'll go next now to David Karnofsky at Jpmorgan.
David Karnofsky: Okay. Thank you Sean you noted $150 million of potential M&A. This year I don't know if you could speak a bit to the pipeline right now.
David Karnofsky: Should we assume that figure comprises mostly small deals or is there anything kind of more sizeable assumed in there and then I.
David Karnofsky: I guess you touched upon it in your prepared remarks, but the star T mobile, but you can talk to what that means for programmatic.
David Karnofsky: Thanks.
David Karnofsky: Sure.
So yes, the M&A pipeline.
David Karnofsky: You know we put out the word last year that we wanted to focus on retiring the term a and when that word gets out from Lamar.
David Karnofsky: Folks that are thinking about selling you know they say, okay I'll wait.
David Karnofsky: No.
David Karnofsky: That is happening folks that they now know that where we're active again.
David Karnofsky: We're coming to market.
David Karnofsky: It runs the gamut of deal sizes. There as you know some that are 2 million. There's many that are in the five to 10 and then we've got a couple of that are you know in that sort of 40 or 50 range that.
David Karnofsky: That we hope to pry loose.
David Karnofsky: It's in that sense, it's a typical year.
David Karnofsky: Uh huh.
David Karnofsky: Good Lamar tuck in activity, where we're we're being active and aggressive.
And then vis star and T mobile.
David Karnofsky: I'm really excited about it.
David Karnofsky: T mobile is a very entrepreneurial company they have an incredible brand.
David Karnofsky: They understand marketing they love out of home.
David Karnofsky: They actually have a small position in.
David Karnofsky: And out of home business that actually has screens.
David Karnofsky: And I think as they.
David Karnofsky: Looked at the landscape of whats going on with digital out of home and solve this starz the clear global leader.
David Karnofsky: Do they jumped in and.
David Karnofsky: They were aggressive.
Speaker Change: And I think that only bodes well they have unique insights into consumer behavior based on the data that they have access to by being one of the nation's premier cellular providers.
David Karnofsky: And they also understand marketing you know.
David Karnofsky: So I think it can only be good for the industry, which bodes well for us as the.
David Karnofsky: The owner of the largest large format digital network in the country.
David Karnofsky: Thank you.
Speaker Change: Thank you. We'll go next now to Daniel Osley of Wells Fargo.
Speaker Change: Thank you.
Speaker Change: When comparing your national growth to some of your peers. It looks like your recovery has lagged behind a bit can you help us unpack why that may be and do you think there are any structural drivers behind the national weakness there.
Speaker Change: Yes, Daniel.
Speaker Change: I think theres some truth to that part of it is the natural consequence of our footprint.
Speaker Change: National AD spend tends to be focused in the top three DMA, particularly New York and L. A.
Speaker Change: Where our footprint is not as robust as say upfront or clear channel so that.
Speaker Change: A little bit to do with it.
Speaker Change: It is also driven by categories and how they recover.
Speaker Change: In particular, when you look at the recovery of the entertainment.
Speaker Change: <unk> movie category coming out of.
Speaker Change: The strike in the prior year.
Speaker Change: They tend to get much more of that business and we do the entertainment category in particular focuses on.
Speaker Change: L a.
Speaker Change: And when you look, particularly at out front, they probably have the best.
Speaker Change: Distribution and outdoor footprint in L. A and they tend to get more of those dollars.
Speaker Change: That's helpful and if I can sneak in a follow up.
Speaker Change: On Billboard yields you've been running at a pretty high occupancy rates across your boards of the year. So I just wanted to hear how you view the pricing environment today, and how you think about your ability to continue to drive price. Thank you.
Speaker Change: Sure Yes.
Speaker Change: That's the case Daniel.
Speaker Change: Virtually all of the gains last year were driven by rate and we anticipate that that's going to be the case this year.
Speaker Change: I would.
Speaker Change: I would say basically we are at peak occupancy.
Speaker Change: And given that we have to drive rate, if we're going to hit our goals.
Speaker Change: Thank you.
Speaker Change: Thank you and just a quick reminder, ladies and gentlemen star one for questions. Today. We go next now to Lance did Todd at TD Cowen.
Speaker Change: Thanks, guys for taking the questions I have two the first is on Capex hi, Thanks can you hear me.
Yes, yes.
Speaker Change: Great.
Speaker Change: First question on Capex I think you mentioned 350 to 375 digital conversions. This year did I hear that right and in any case could you give us a sense for the expected cadence of.
Speaker Change: That spend and I notice on the total Capex line in 2024, we saw this big uptick in <unk> would you expect that pattern to repeat in 2025.
I'm going to say that the cadence of spend on digital is probably youre going to be.
Speaker Change: Sort of ratable through the year.
Speaker Change: Don't see any any sort of.
Speaker Change: Spikes in terms of.
Speaker Change: That deployment.
Speaker Change: You know there there are a few things.
Speaker Change: That are going to cause our total capex to also increase this year we've got.
Speaker Change: Some extra ordinary capex in our logo division, which is hitting us this year.
Speaker Change: We are also.
Speaker Change: We own.
Speaker Change: Something in the neighborhood of 130 buildings out there.
Speaker Change: We have a little bit of extra ordinary capex and building some new buildings and refurbishing some old ones.
Speaker Change: If I had to highlight anything that was sort of extra ordinary that would be it.
Speaker Change: And maybe Q4 is elevated capex was related to hurricanes in Q3.
Speaker Change: So that might explain a little bit of the uptick in Q4 of.
Speaker Change: Last year.
Speaker Change: That's helpful. And then just back on the 25 guidance the revenue.
Speaker Change: 3% I'm trying to square that with some industry.
Speaker Change: And trade sources, which are talking about more like 5% domestic out of home AD revenue spend growth this year.
Speaker Change: And can you talk about having the best team in out of home and I tend to agree and yet if I compare your projected growth relative to what magna global and others are saying.
Speaker Change: It seems very conservative and I'm wondering how we square that circle do you think that just are the magna estimates just too high.
Speaker Change: You could look to others and they'll have a different number.
Speaker Change: <unk>.
Speaker Change: You also need to keep in mind that theyre looking at out of home very broadly defined and there are some.
Speaker Change: For example, digital out of home.
Speaker Change: Screens that are in our portfolio that are being deployed very quickly I would highlight the retail TV networks that are that are popping up seemingly everywhere. So.
That's in their numbers the recovery of of cinema.
Speaker Change: Advertising is also in there number which again that's not in our portfolio. So that explains some of it.
Speaker Change: It's sort of different portfolios and then I would say also that again it depends on who you are looking at.
Speaker Change: The number that that ive been circling around his total out of home up between three five and four.
Speaker Change: And again, there is some portfolio differences as smaller screens recover.
Speaker Change: Particularly again in sort of the transit space as well.
Speaker Change: Very good thank you for your help.
Speaker Change: Yes.
Speaker Change: Thank you. We'll go next now to Al <unk> at Wolfe Research.
Speaker Change: Alright, Thanks, a lot for taking my question. This is just another follow up on the deployment of new digital signs GB of Coca Cola <unk> 75.
Speaker Change: You guys think about as the largest number of digital signs you could see rolling out in a year and what do you kind of consider the limiting factor for the pace of static to digital conversions.
Speaker Change: Oh, Hey, Ali good question.
Speaker Change: We're pedal to the metal this year. So if we hit 375, we will have essentially deployed more in a given year than we have I think ever.
Speaker Change: The gating issues are number one regulatory permitting.
Speaker Change: That that takes time it takes a lot of effort.
Speaker Change: You know we have to sit down with with city leadership in May.
Speaker Change: Make sure that they're comfortable and comfortable with what we're doing and get fully permitted.
Speaker Change: And then these are these are.
Speaker Change: Construction projects, we have to retrofit the structure to make sure that it can hold the extra weight, we have to make sure. There's no supply chain issues holding up getting digital units from our vendors.
Speaker Change: And then the crews have to be there on time, the power has to get hooked up all of that stuff.
Speaker Change: He is engaged in a construction project and so you know when you when you add it all up.
Speaker Change: If we hit 375, we will have.
Speaker Change: We will have had a good year.
Speaker Change: Great. Thanks, that's helpful and that's all for me.
Speaker Change: Thank you and there is no further questions at this time so Mr Rally I'd like to turn things back to you Sir for any closing comments.
Mr. Rally: Well great. Thank you all for your interest in Lamar and we will we will talk again next quarter.
Speaker Change: Thank you Mr Rally again, ladies and gentlemen that does conclude today's conference call, we'd like to thank you all so much for joining us and wish you all a great day Goodbye.
Mr. Rally: Mhm.
Mr. Rally: Uh-huh.
Mr. Rally: Yes.
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