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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________________
FORM 10-Q
________________________________________________________
xQuarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended June 30, 2022
or
¨
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from                      to                     
Commission File Number 1-36756
__________________________________
Lamar Advertising Company
________________________________________________
Commission File Number 1-12407
________________________________________________
Lamar Media Corp.
(Exact name of registrants as specified in their charters)
__________________________________
Delaware47-0961620
Delaware72-1205791
(State or other jurisdiction of incorporation or organization)(I.R.S Employer Identification No.)
  
5321 Corporate Blvd., Baton Rouge, LA
70808
(Address of principal executive offices)(Zip Code)
Registrants’ telephone number, including area code: (225926-1000  
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A common stock, $0.001 par valueLAMR
The NASDAQ Stock Market, LLC
Indicate by check mark whether each registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨
Indicate by check mark whether each registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  ¨
Indicate by check mark whether Lamar Advertising Company is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerxAccelerated filer¨
Non-accelerated filer¨Smaller reporting company¨
Emerging growth company¨
If an emerging growth company, indicate by check mark if Lamar Advertising Company has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether Lamar Media Corp. is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. ☐
Large accelerated filer¨Accelerated filer¨
Non-accelerated filerxSmaller reporting company¨
Emerging growth company¨
If an emerging growth company, indicate by check mark if Lamar Media Corp. has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether Lamar Advertising Company is a shell company (as defined in Rule 12b-2 of the Exchange Act):    Yes  ¨    No  x
Indicate by check mark whether Lamar Media Corp. is a shell company (as defined in Rule 12b-2 of the Exchange Act):    Yes  ¨    No  x
The number of shares of Lamar Advertising Company’s Class A common stock outstanding as of July 31, 2022: 87,114,517 
The number of shares of the Lamar Advertising Company’s Class B common stock outstanding as of July 31, 2022: 14,420,085
The number of shares of Lamar Media Corp. common stock outstanding as of July 31, 2022: 100
This combined Form 10-Q is separately filed by (i) Lamar Advertising Company and (ii) Lamar Media Corp. (which is a wholly owned subsidiary of Lamar Advertising Company). Lamar Media Corp. meets the conditions set forth in general instruction H(1) (a) and (b) of Form 10-Q and is, therefore, filing this form with the reduced disclosure format permitted by such instruction.



NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information included in this report is forward-looking in nature within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. This report uses terminology such as “anticipates,” “believes,” “plans,” “expects,” “future,” “intends,” “may,” “will,” “should,” “estimates,” “predicts,” “potential,” “continue” and similar expressions to identify forward-looking statements. Examples of forward-looking statements in this report include statements about:
our future financial performance and condition;
our business plans, objectives, prospects, growth and operating strategies;
our future capital expenditures and level of acquisition activity;
our ability to integrate acquired assets and realize operating efficiency from acquisitions;
market opportunities and competitive positions;
our future cash flows and expected cash requirements;
estimated risks;
our ability to maintain compliance with applicable covenants and restrictions included in Lamar Media’s senior credit facility, Accounts Receivable Securitization Program and the indentures relating to its outstanding notes;
stock price;
estimated future dividend distributions; and
our ability to remain qualified as a Real Estate Investment Trust (“REIT”).
Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors, including but not limited to the following, any of which may cause the actual results, performance or achievements of Lamar Advertising Company (referred to herein as the “Company” or “Lamar Advertising”) or Lamar Media Corp. (referred to herein as “Lamar Media”) to differ materially from those expressed or implied by the forward-looking statements:
the state of the economy and financial markets generally and their effects on the markets in which we operate and the broader demand for advertising, including inflationary pressures;
the levels of expenditures on advertising in general and outdoor advertising in particular;
risks and uncertainties relating to our significant indebtedness;
the demand for outdoor advertising and its continued popularity as an advertising medium;
our need for, and ability to obtain, additional funding for acquisitions, operations and debt refinancing;
increased competition within the outdoor advertising industry;
the regulation of the outdoor advertising industry by federal, state and local governments;
our ability to renew expiring contracts at favorable rates;
the integration of businesses and assets that we acquire and our ability to recognize cost savings and operating efficiencies as a result of these acquisitions;
our ability to successfully implement our digital deployment strategy;
the market for our Class A common stock;
changes in accounting principles, policies or guidelines;
our ability to effectively mitigate the threat of and damages caused by hurricanes and other kinds of severe weather;
our ability to maintain our status as a REIT; and
changes in tax laws applicable to REITs or in the interpretation of those laws.
The forward-looking statements in this report are based on our current good faith beliefs, however, actual results may differ due to inaccurate assumptions, the factors listed above or other foreseeable or unforeseeable factors. Consequently, we cannot
2


guarantee that any of the forward-looking statements will prove to be accurate. The forward-looking statements in this report speak only as of the date of this report, and Lamar Advertising and Lamar Media expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained in this report, except as required by law.
For a further description of these and other risks and uncertainties, the Company encourages you to read carefully Item 1A to the combined Annual Report on Form 10-K for the year ended December 31, 2021 of the Company and Lamar Media (the “2021 Combined Form 10-K”), filed on February 25, 2022, and as such risk factors may be further updated or supplemented, from time to time, in our future combined Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
3


CONTENTS
Page
Lamar Advertising Company
Lamar Media Corp.

4

PART I — FINANCIAL INFORMATION
ITEM 1. — FINANCIAL STATEMENTS
LAMAR ADVERTISING COMPANY
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)
June 30,
2022
December 31,
2021
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$91,686 $99,788 
Receivables, net of allowance for doubtful accounts of $13,519 and $11,195 in 2022 and 2021, respectively
303,323 269,917 
Other current assets45,077 18,902 
Total current assets440,086 388,607 
Property, plant and equipment3,868,507 3,782,288 
Less accumulated depreciation and amortization(2,491,060)(2,445,014)
Net property, plant and equipment1,377,447 1,337,274 
Operating lease right of use assets1,244,392 1,224,672 
Financing lease right of use assets15,464 16,890 
Goodwill2,004,145 1,936,426 
Intangible assets, net1,109,687 1,045,177 
Other assets90,816 98,448 
Total assets$6,282,037 $6,047,494 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable$15,920 $16,429 
Current maturities of long-term debt, net of deferred financing costs of $672 and $585 in 2022 and 2021, respectively
239,696 174,778 
Current operating lease liabilities179,691 198,286 
Current financing lease liabilities1,331 1,331 
Accrued expenses99,220 135,038 
Deferred income155,554 137,103 
Total current liabilities691,412 662,965 
Long-term debt, net of deferred financing costs of $33,603 and $36,274 in 2022 and 2021, respectively
3,001,467 2,838,817 
Operating lease liabilities1,012,429 995,356 
Financing lease liabilities16,611 17,277 
Deferred income tax liabilities7,635 6,416 
Asset retirement obligation277,491 269,367 
Other liabilities34,926 40,207 
Total liabilities5,041,971 4,830,405 
Stockholders’ equity:
Series AA preferred stock, par value $0.001, $63.80 cumulative dividends, 5,720 shares authorized; 5,720 shares issued and outstanding at 2022 and 2021
  
Class A common stock, par value $0.001, 362,500,000 shares authorized; 87,897,625 and 87,540,838 shares issued at 2022 and 2021, respectively; 87,114,517 and 86,852,821 outstanding at 2022 and 2021, respectively
88 88 
Class B common stock, par value $0.001, 37,500,000 shares authorized, 14,420,085 shares issued and outstanding at 2022 and 2021
14 14 
Additional paid-in capital2,042,427 2,001,399 
Accumulated comprehensive income486 855 
Accumulated deficit(741,651)(734,415)
Cost of shares held in treasury, 783,108 and 688,017 shares at 2022 and 2021, respectively
(61,298)(50,852)
Stockholders’ equity1,240,066 1,217,089 
Total liabilities and stockholders’ equity$6,282,037 $6,047,494 
See accompanying notes to condensed consolidated financial statements.
5

LAMAR ADVERTISING COMPANY
AND SUBSIDIARIES
Condensed Consolidated Statements of Income and Comprehensive Income
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2022202120222021
Statements of Income
Net revenues$517,852 $445,052 $969,240 $815,933 
Operating expenses (income)
Direct advertising expenses (exclusive of depreciation and amortization)166,723 140,448 324,495 271,663 
General and administrative expenses (exclusive of depreciation and amortization)90,658 75,834 173,742 148,483 
Corporate expenses (exclusive of depreciation and amortization)27,591 20,643 49,603 38,403 
Depreciation and amortization67,750 60,622 136,377 121,371 
Gain on disposition of assets(1,374)(1,481)(1,937)(1,896)
351,348 296,066 682,280 578,024 
Operating income166,504 148,986 286,960 237,909 
Other expense (income)
Loss on extinguishment of debt   21,604 
Interest income(279)(182)(494)(356)
Interest expense29,493 26,359 56,279 54,513 
Equity in earnings of investee(355) (1,101) 
28,859 26,177 54,684 75,761 
Income before income tax expense137,645 122,809 232,276 162,148 
Income tax expense3,440 3,200 5,920 4,210 
Net income134,205 119,609 226,356 157,938 
Cash dividends declared and paid on preferred stock91 91 182 182 
Net income applicable to common stock$134,114 $119,518 $226,174 $157,756 
Earnings per share:
Basic earnings per share$1.32 $1.18 $2.23 $1.56 
Diluted earnings per share$1.32 $1.18 $2.23 $1.56 
Cash dividends declared per share of common stock$1.20 $0.75 $2.30 $1.50 
Weighted average common shares used in computing earnings per share:
Weighted average common shares outstanding basic101,486,547 101,125,855 101,413,458 101,047,295 
Weighted average common shares outstanding diluted101,660,120 101,328,939 101,602,743 101,239,848 
Statements of Comprehensive Income
Net income$134,205 $119,609 $226,356 $157,938 
Other comprehensive (loss) income
Foreign currency translation adjustments(683)300 (369)504 
Comprehensive income$133,522 $119,909 $225,987 $158,442 
See accompanying notes to condensed consolidated financial statements.
6

LAMAR ADVERTISING COMPANY
AND SUBSIDIARIES
Condensed Consolidated Statements of Stockholders’ Equity
(Unaudited)
(In thousands, except share and per share data)
Series AA
PREF
Stock
Class A
CMN
Stock
Class B
CMN
Stock
Treasury
Stock
Add’l
Paid in
Capital
Accumulated Comprehensive
Income
Accumulated
Deficit
Total
Balance, December 31, 2021$ $88 $14 $(50,852)$2,001,399 $855 $(734,415)$1,217,089 
Non-cash compensation— — — — 1,405 — — 1,405 
Issuance of 241,750 shares of common stock through stock awards
— — — — 30,145 — — 30,145 
Exercise of 26,190 shares of stock options
— — — — 1,307 — — 1,307 
Issuance of 36,347 shares of common stock through employee purchase plan
— — — — 3,589 — — 3,589 
Purchase of 95,091 shares of treasury stock
— — — (10,446)— — — (10,446)
Foreign currency translation— — — — — 314 — 314 
Net income— — — — — — 92,151 92,151 
Dividends/distributions to common shareholders ($1.10 per common share)
— — — — — — (111,602)(111,602)
Dividends ($15.95 per preferred share)
— — — — — — (91)(91)
Balance, March 31, 2022$ $88 $14 $(61,298)$2,037,845 $1,169 $(753,957)$1,223,861 
Non-cash compensation— — — — 1,356 — — 1,356 
Issuance of 7,197 shares of common stock through stock awards
— — — — 221 — — 221 
Exercise of 13,131 shares of stock options
— — — — 599 — — 599 
Issuance of 32,172 shares of common stock through employee purchase plan
— — — — 2,406 — — 2,406 
Foreign currency translation— — — — — (683)— (683)
Net income— — — — — — 134,205 134,205 
Dividends/distributions to common shareholders ($1.20 per common share)
— — — — — — (121,808)(121,808)
Dividends ($15.95 per preferred share)
— — — — — — (91)(91)
Balance, June 30, 2022$ $88 $14 $(61,298)$2,042,427 $486 $(741,651)$1,240,066 
See accompanying notes to condensed consolidated financial statements.
7

LAMAR ADVERTISING COMPANY
AND SUBSIDIARIES
Condensed Consolidated Statements of Stockholders’ Equity
(Unaudited)
(In thousands, except share and per share data)

Series AA
PREF
Stock
Class A
CMN
Stock
Class B
CMN
Stock
Treasury
Stock
Add’l
Paid in
Capital
Accumulated
Comprehensive
Income
Accumulated
Deficit
Total
Balance, December 31, 2020$ $87 $14 $(44,786)$1,963,850 $934 $(717,331)$1,202,768 
Non-cash compensation— — — — 1,060 — — 1,060 
Issuance of 149,000 shares of common stock through stock awards
— — — — 13,376 — — 13,376 
Exercise of 82,101 shares of stock options
— — — — 5,224 — — 5,224 
Issuance of 31,824 shares of common stock through employee purchase plan
— — — — 2,172 — — 2,172 
Purchase of 65,290 shares of treasury stock
— — (5,717)— — — (5,717)
Foreign currency translation— — — — — 204 — 204 
Net income— — — — — — 38,329 38,329 
Dividends/distributions to common shareholders ($0.75 per common share)
— — — — — — (75,818)(75,818)
Dividends ($15.95 per preferred share)
— — — — — — (91)(91)
Balance, March 31, 2021$ $87 $14 $(50,503)$1,985,682 $1,138 $(754,911)$1,181,507 
Non-cash compensation— — — — 917 — — 917 
Issuance of 4,685 shares of common stock through stock awards
— — — — 594 — — 594 
Exercise of 38,265 shares of stock options
— — — — 2,575 — — 2,575 
Issuance of 30,302 shares of common stock through employee purchase plan
— — — — 2,068 — — 2,068 
Foreign currency translation— — — — — 300 — 300 
Net income— — — — — — 119,609 119,609 
Dividends/distributions to common shareholders ($0.75 per common share)
— — — — — — (75,874)(75,874)
Dividends ($15.95 per preferred share)
— — — — — — (91)(91)
Balance, June 30, 2021$ $87 $14 $(50,503)$1,991,836 $1,438 $(711,267)$1,231,605 
See accompanying notes to condensed consolidated financial statements.
8

LAMAR ADVERTISING COMPANY
AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Six Months Ended
June 30,
20222021
Cash flows from operating activities:
Net income$226,356 $157,938 
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization136,377 121,371 
Stock-based compensation9,223 9,464 
Amortization included in interest expense2,950 2,962 
Gain on disposition of assets and investments(1,937)(1,896)
Loss on extinguishment of debt 21,604 
Equity in earnings of investee(1,101) 
Deferred tax expense1,212 1,743 
Provision for doubtful accounts4,368 1,246 
Changes in operating assets and liabilities
Increase in:
Receivables(36,153)(17,626)
Prepaid expenses(5,513)(3,222)
Other assets(2,581)(569)
(Decrease) increase in:
Trade accounts payable(995)(1,212)
Accrued expenses(15,086)(9,182)
Operating lease liabilities(21,780)(29,039)
Other liabilities17,290 31,675 
Net cash provided by operating activities312,630 285,257 
Cash flows from investing activities:
Acquisitions(234,292)(27,236)
Capital expenditures(75,802)(41,416)
Proceeds from disposition of assets and investments1,716 3,982 
Net cash used in investing activities(308,378)(64,670)
Cash flows from financing activities:
Cash used for purchase of treasury stock(10,446)(5,717)
Net proceeds from issuance of common stock7,901 12,039 
Principal payments on long-term debt(182)(190)
Principal payments on financing leases(666)(666)
Payments on revolving credit facility(240,000)(25,000)
Proceeds received from revolving credit facility400,000 25,000 
Redemption of senior notes and senior subordinated notes (668,688)
Proceeds received from note offering 550,000 
Proceeds received from accounts receivable securitization program65,000 32,500 
Payments on accounts receivable securitization program (32,500)
Debt issuance costs(200)(8,498)
Distributions to non-controlling interest(98)(49)
Dividends/distributions(233,592)(151,874)
Net cash used in financing activities(12,283)(273,643)
Effect of exchange rate changes in cash and cash equivalents(71)213 
Net decrease in cash and cash equivalents(8,102)(52,843)
Cash and cash equivalents at beginning of period99,788 121,569 
Cash and cash equivalents at end of period$91,686 $68,726 
Supplemental disclosures of cash flow information:
Cash paid for interest$53,149 $62,966 
Cash paid for foreign, state and federal income taxes$6,201 $4,886 
See accompanying notes to condensed consolidated financial statements.
9

LAMAR ADVERTISING COMPANY
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(In thousands, except share and per share data)

1. Significant Accounting Policies
The information included in the foregoing interim condensed consolidated financial statements is unaudited. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the Company’s financial position and results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the entire year. These interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and the notes thereto included in the 2021 Combined Form 10-K. Subsequent events, if any, are evaluated through the date on which the financial statements are issued.
2. Revenues
Advertising revenues: The majority of our revenues are derived from contracts for advertising space on billboard, logo and transit displays. Contracts which do not meet the criteria of a lease under ASC 842, Leases are accounted for under ASC 606, Revenue from Contracts with Customers. The majority of our advertising space contracts do not meet the definition of a lease under ASC 842 and are therefore accounted for under ASC 606. The contract revenues are recognized ratably over their contract life. Costs to fulfill a contract, which include our costs to install advertising copy onto billboards, are capitalized and amortized to direct advertising expenses (exclusive of depreciation and amortization) in the Condensed Consolidated Statements of Income and Comprehensive Income.
Other revenues: Our other component of revenue primarily consists of production services which includes creating and printing the advertising copy. Revenue for production contracts is recognized under ASC 606. Contract revenues for production services are recognized upon satisfaction of the contract which is typically less than one week.
Arrangements with multiple performance obligations: Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenue to each performance obligation based on the relative standalone selling price. We determine standalone selling prices based on the prices charged to customers using expected cost plus margin.
Deferred revenues: We record deferred revenues when cash payments are received or due in advance of our performance obligation. The term between invoicing and when a payment is due is not significant. For certain services we require payment before the product or services are delivered to the customer. The balance of deferred income is considered short-term and will be recognized in revenue within twelve months.
Practical expedients and exemptions: The Company is utilizing the following practical expedients and exemptions from ASC 606. We generally expense sales commissions when incurred because the amortization period is one year or less. These costs are recorded within direct advertising expenses (exclusive of depreciation and amortization). We do not disclose the value of unsatisfied performance obligations as the majority of our contracts with customers have an original expected length of less than one year. For contracts with customers which exceed one year, the future amount to be invoiced to the customer corresponds directly with the value to be received by the customer.
The following table presents our disaggregated revenue by source for the three and six months ended June 30, 2022 and 2021.
Three Months Ended
June 30,
Six Months Ended
June 30,
2022202120222021
Billboard advertising$463,826 $405,284 $865,565 $739,323 
Logo advertising20,760 19,694 40,505 39,100 
Transit advertising33,266 20,074 63,170 37,510 
Net revenues$517,852 $445,052 $969,240 $815,933 

10

LAMAR ADVERTISING COMPANY
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(In thousands, except share and per share data)
3. Leases
During the three months ended June 30, 2022 and 2021, we had operating lease costs of $76,382 and $72,880, respectively, and variable lease costs of $15,671 and $18,749, respectively. During the six months ended June 30, 2022 and 2021, we had operating lease costs of $152,201 and $145,350, respectively, and variable lease costs of $27,875 and $33,993, respectively. These operating lease costs are recorded in direct advertising expenses (exclusive of depreciation and amortization). For the three months ended June 30, 2022 and 2021, we recorded a gain of $429 and $48, respectively, in gain on disposition of assets related to the amendment and termination of lease agreements. For the six months ended June 30, 2022 and 2021, we recorded a gain of $469 and $54, respectively, in gain on disposition of assets related to the amendment and termination of lease agreements. Cash payments of $180,151 and $170,619 were made reducing our operating lease liabilities for the six months ended June 30, 2022 and 2021, respectively, and are included in cash flows provided by operating activities in the Condensed Consolidated Statements of Cash Flows.
We elected the short-term lease exemption which applies to certain of our vehicle agreements. This election allows the Company to not recognize lease right of use assets ("ROU assets") or lease liabilities for agreements with a term of twelve months or less. We recorded $1,814 and $1,511 in direct advertising expenses (exclusive of depreciation and amortization) for these agreements during the three months ended June 30, 2022 and 2021, respectively. We recorded $3,551 and $2,891 in direct advertising expenses (exclusive of depreciation and amortization) for these agreements during the six months ended June 30, 2022 and 2021, respectively.
Our operating leases have a weighted-average remaining lease term of 12.3 years. The weighted-average discount rate of our operating leases is 4.4%. Also, during the periods ended June 30, 2022 and 2021, we obtained $32,492 and $9,871, respectively, of leased assets in exchange for new operating lease liabilities, which includes liabilities obtained through acquisitions.
The following is a summary of the maturities of our operating lease liabilities as of June 30, 2022:
2022$95,653 
2023202,515 
2024174,615 
2025148,283 
2026124,156 
Thereafter822,238 
Total undiscounted operating lease payments1,567,460 
Less: Imputed interest(375,340)
Total operating lease liabilities$1,192,120 
During the three months ended June 30, 2022 and 2021, $713 of amortization expense for each period and $137 and $148 of interest expense relating to our financing lease liabilities were recorded in depreciation and amortization and interest expense, respectively, in the Condensed Consolidated Statements of Income and Comprehensive Income. During the six months ended June 30, 2022 and 2021, $1,427 of amortization expense for each period and $277 and $298 of interest expense relating to our financing lease liabilities were recorded in depreciation and amortization and interest expense, respectively, in the Condensed Consolidated Statements of Income and Comprehensive Income. Cash payments of $666 were made reducing our financing lease liabilities for each of the six months ended June 30, 2022 and 2021 and are included in cash flows used in financing activities in the Condensed Consolidated Statements of Cash Flows. Our financing leases have a weighted-average remaining lease term of 5.4 years and a weighted-average discount rate of 3.1%.
Due to our election not to reassess conclusions about lease identification as part of the adoption of ASC 842, Leases, our transit agreements were accounted for as leases on January 1, 2019. As we enter into new or renew current transit agreements, those agreements do not meet the criteria of a lease under ASC 842, therefore they are no longer accounted for as a lease. For the three months ended June 30, 2022 and 2021, non-lease variable transit payments were $24,241 and $6,212, respectively. For the six months ended June 30, 2022 and 2021, non-lease variable transit payments were $41,519 and $10,588, respectively. These
11

LAMAR ADVERTISING COMPANY
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(In thousands, except share and per share data)
transit expenses are recorded in direct advertising expenses (exclusive of depreciation and amortization) on the Condensed Consolidated Statements of Income and Comprehensive Income.
4. Acquisitions
During the six months ended June 30, 2022, the Company completed over 40 acquisitions of outdoor advertising assets for a total purchase price of $234,292.
Each of these acquisitions was accounted for under the acquisition method of accounting, and, accordingly, the accompanying condensed consolidated financial statements include the results of operations of each acquired entity from the date of acquisition. The acquisition purchase price has been allocated to assets acquired and liabilities assumed based on preliminary fair market value estimates at the dates of acquisition.
The following is a summary of the allocation of the purchase price in the above transactions, which includes the preliminary values for the acquisition of Burkhart Advertising Inc., which was completed on May 4, 2022 for an aggregate purchase price of $130,000.
Total
Property, plant and equipment$37,342 
Goodwill67,757 
Site locations110,798 
Non-competition agreements1,730 
Customer lists and contracts15,615 
Asset acquisition costs468 
Current assets1,793 
Current liabilities(4,284)
Operating lease right of use assets27,070 
Operating lease liabilities(23,997)
$234,292 
Total acquired intangible assets for the six months ended June 30, 2022 were $196,368, of which $67,757 was assigned to goodwill. Goodwill is not amortized for financial statement purposes and $456 of goodwill related to 2022 acquisitions is expected to be deductible for tax purposes. The acquired intangible assets have a weighted average useful life of approximately 14 years. The intangible assets include customer lists and contracts of $15,615 (7 year weighted average useful life) and site locations of $110,798 (15 year weighted average useful life). The aggregate amortization expense related to the 2022 acquisitions for the six months ended June 30, 2022 was $2,677.
The following unaudited pro forma financial information for the Company gives effect to the 2022 and 2021 acquisitions as if they had occurred on January 1, 2021. These pro forma results do not purport to be indicative of the results of operations which actually would have resulted had the acquisitions occurred on such date or to project the Company's results of operations for any future period.
12

LAMAR ADVERTISING COMPANY
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2022202120222021
(unaudited)
Net revenues$523,030 $459,492 $975,807 $847,569 
Net income applicable to common stock$135,464 $120,683 $224,792 $159,485 
Net income per common share- basic$1.33 $1.19 $2.22 $1.58 
Net income per common share- diluted$1.33 $1.19 $2.21 $1.58 
5. Stock-Based Compensation
Equity Incentive Plan. Lamar Advertising’s 1996 Equity Incentive Plan, as amended, (the “Incentive Plan”) has reserved 17.5 million shares of Class A common stock for issuance to directors and employees, including shares underlying granted options and common stock reserved for issuance under its performance-based incentive program. Options granted under the plan expire ten years from the grant date with vesting terms ranging from three to