Lamar Advertising Company Announces First Quarter 2009 Operating Results

Lamar Advertising Company (Nasdaq: LAMR), a leading owner and operator of outdoor advertising and logo sign displays, announces the Company’s operating results for the first quarter ended March 31, 2009.

First Quarter Results

Lamar reported net revenues of $247.2 million for the first quarter of 2009 versus $282.8 million for the first quarter of 2008, a 12.6% decrease. Operating income for the first quarter of 2009 was $4.6 million as compared to $36.1 million for the same period in 2008. There was a net loss of $21.3 million for the first quarter of 2009 compared to a net loss of $3.2 million for the first quarter of 2008.

Adjusted EBITDA, which we refer to herein as EBITDA (defined as operating income before non-cash compensation, depreciation and amortization and gain on disposition of assets - see reconciliation to net loss at the end of this release) for the first quarter of 2009 was $91.2 million versus $114.2 million for the first quarter of 2008, a 20.1% decrease.

Free cash flow (defined as EBITDA less interest, net of interest income and amortization of financing costs, current taxes, preferred stock dividends and total capital expenditures - see reconciliation to cash flows provided by operating activities at the end of this release) for the first quarter of 2009 was $45.5 million as compared to $21.5 million for the same period in 2008, a 112.2% increase.

Pro forma net revenue for the first quarter of 2009 decreased 15.3% and pro forma EBITDA decreased 19.9% as compared to the first quarter of 2008. Pro forma net revenue and EBITDA include adjustments to the 2008 period for acquisitions and divestitures for the same time frame as actually owned in the 2009 period. Tables that reconcile reported results to pro forma results and operating income to outdoor operating income are included at the end of this release.

Recent Transactions

During the quarter ended March 31, 2009, Lamar Media Corp. ("Lamar Media”), a wholly owned subsidiary of Lamar Advertising Company, completed an institutional private placement of $350 million aggregate principal amount ($314.9 million gross proceeds) of 9 3/4% Senior Notes due 2014. In addition, Lamar Media initiated an amendment to its existing senior credit facility that was effective on April 6, 2009. The amendment to its existing credit agreement included among other things: (i) a reduction in the amount of the revolving credit commitments available thereunder from $400 million to $200 million, (ii) an increase in the interest rate margins for the revolving credit facility and term loans under the credit agreement, (iii) changes to certain provisions regarding mandatory prepayments of loans, (iv) amendments to certain financial covenants and (v) a pledge of additional collateral by Lamar Media and its subsidiaries, including certain owned real estate properties, to secure the loans made under the credit agreement.

In addition, Lamar commenced a tender offer to purchase for cash any and all of its outstanding 2 7/8% Convertible Notes due 2010-Series B (the "Convertible Notes”) during the quarter ended March 31, 2009. Lamar accepted for payment approximately $153 million principal amount of the Convertible Notes, or 53.5% of the outstanding Convertible Notes, at a purchase price of $920 per $1,000 principal amount of Convertible Notes, plus accrued and unpaid interest on April 20, 2009.

Guidance

For the second quarter of 2009 the Company expects net revenue to be approximately $275.0 million. On a pro forma basis this represents a decrease of approximately 16%.

Forward Looking Statements

This press release contains forward-looking statements, including the statements regarding guidance for the second quarter of 2009. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. These risks and uncertainties include, among others, (1) our significant indebtedness; (2) the length and severity of the current recession and the effect that it has on the demand for advertising; (3) the continued popularity of outdoor advertising as an advertising medium; (4) our need for and ability to obtain additional funding for operations, debt refinancing or acquisitions; (5) the regulation of the outdoor advertising industry; (6) the integration of companies that we acquire and our ability to recognize cost savings or operating efficiencies as a result of these acquisitions; (7) the market for our Class A common stock and (8) other factors described in the reports on Forms 10-K and 10-Q and the registration statements that we file from time to time with the SEC. We caution investors not to place undue reliance on the forward-looking statements contained in this document. These statements speak only as of the date of this document, and we undertake no obligation to update or revise the statements, except as may be required by law.

Use of Non-GAAP Measures

EBITDA, free cash flow, pro forma results and outdoor operating income are not measures of performance under accounting principles generally accepted in the United States of America ("GAAP”) and should not be considered alternatives to operating income, net loss, cash flows from operating activities, or other GAAP figures as indicators of the Company’s financial performance or liquidity. The Company’s management believes that EBITDA, free cash flow, pro forma results and outdoor operating income are useful in evaluating the Company’s performance and provide investors and financial analysts a better understanding of the Company’s core operating results. The pro forma acquisition adjustments are intended to provide information that may be useful for investors when assessing period to period results. Our presentations of these measures may not be comparable to similarly titled measures used by other companies. Reconciliations of these measures to GAAP are included at the end of this release.

Conference Call Information

A conference call will be held to discuss the Company’s operating results on Thursday, May 7, 2009 at 10:00 a.m. central time. Instructions for the conference call and Webcast are provided below:

General Information on Lamar

Lamar Advertising Company is a leading outdoor advertising company currently operating over 150 outdoor advertising companies in 44 states, Canada and Puerto Rico, logo businesses in 19 states and the province of Ontario, Canada and approximately 63 transit advertising franchises in the United States, Canada and Puerto Rico.