Lamar Advertising reported second-quarter earnings Thursday of $31.4 million, or 31 cents per share, compared to $118.4 million, or $1.18 per share, a year ago.
Baton Rouge-based Lamar has been hurt by the coronavirus pandemic, which has reduced the demand for advertising and the number of drivers who can see the company’s digital billboards. In response to the pandemic, the company negotiated lower franchise fees from transit and airport customers, a move that led to a $6.5 million drop in revenue during the quarter. Lamar also reduced its workforce by about 5% through attrition and layoffs.
The company said net revenue dropped by 22.5% to $347.7 million from $448.7 million in second-quarter 2019. Operating expenses fell by 7.7% from $304.6 million to $281.2 million.
In order to improve cash on hand, Lamar issued $400 million in senior notes during the quarter, a move that increased the company’s total liquidity to $1.1 billion.
The company is now forecasting that net income per share will be between $1.55 and $1.93 for 2020.
Lamar’s earnings fell short of what analysts were forecasting. They were predicting earnings of 38 cents per share on revenue of $370.3 million.
Shares of Lamar were up 6 cents, or 0.1%, in midmorning trading at $65.52.