First Union Securities’ Nantucket Conference
On June 28, 2001 Mr. Sean Reilly, Vice President of Mergers and Acquisitions with Lamar Outdoor Advertising, spoke to the First Union Securities’ Nantucket Conference about his company’s market share and recent acquisition activity.
Mr. Reilly reported that Lamar’s national market share of traditional billboards is approximately 25%, Clear Channel Outdoor’s share is approximately 26% and Infinity Outdoor’s share is approximately 32%. He emphasized the fact that Lamar’s market share is primarily concentrated in smaller markets than their competitors.
He confirmed that in 2000 the company was involved in 94 transactions at an estimated cost of $540 million dollars. These acquisitions were reportedly completed at an average EBITDA multiple of 10.5X (or a 9.5% capitalization rate). In the first two quarters of 2001, the company was involved in 55 transactions at an estimated cost of $237 million dollars. Transactions in 2001 were reportedly completed at an EBITDA multiple above 10.5X (or a capitalization rate lower than 9.5%) due partly to a bidding war in Las Vegas with Clear Channel Outdoor. He anticipated spending $50 to $100 million per quarter for the next eight quarters on acquisitions, with typical sale prices ranging between $2 million and $50 million.