2. Summarized Financial Information of Subsidiaries

Separate condensed consolidating financial information for Lamar Media, subsidiary guarantors and non-guarantor subsidiaries are presented below. Lamar Media and its subsidiary guarantors have fully and unconditionally guaranteed Lamar Media’s obligations with respect to its publicly issued notes. All guarantees are joint and several. As a result of these guarantee arrangements, we are required to present the following condensed consolidating financial information. The following condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and notes. The condensed consolidating financial information is provided as an alternative to providing separate financial statements for guarantor subsidiaries. Separate financial statements of Lamar Media’s subsidiary guarantors are not included because the guarantees are full and unconditional and the subsidiary guarantors are 100% owned and jointly and severally liable for Lamar Media’s outstanding publicly issued notes. The accounts for all companies reflected herein are presented using the equity method of accounting for investments in subsidiaries.

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Balance Sheet as of September 30, 2018


	Lamar Media Corp.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Lamar Media Consolidated
	(unaudited)
ASSETS
Total current assets	$	6,180	$	342,780	$	16,438	$	—		$	365,398
Net property, plant and equipment		—		1,187,773		5,540		—			1,193,313
Intangibles and goodwill, net		—		2,480,597		19,844		—			2,500,441
Other assets		3,674,150		11,407		9,498		(3,646,372	)		48,683
Total assets	$	3,680,330	$	4,022,557	$	51,320	$	(3,646,372	)	$	4,107,835
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt	$	26,694	$	34	$	—	$	—		$	26,728
Other current liabilities		22,050		183,809		18,812		—			224,671
Total current liabilities		48,744		183,843		18,812		—			251,399
Long-term debt		2,519,076		77		—		—			2,519,153
Other noncurrent liabilities		27,751		223,199		29,529		(27,955	)		252,524
Total liabilities		2,595,571		407,119		48,341		(27,955	)		3,023,076
Stockholders’ equity		1,084,759		3,615,438		2,979		(3,618,417	)		1,084,759
Total liabilities and stockholders’ equity	$	3,680,330	$	4,022,557	$	51,320	$	(3,646,372	)	$	4,107,835

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Balance Sheet as of December 31, 2017


	Lamar Media Corp.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Lamar Media Consolidated

ASSETS
Total current assets	$	87,167	$	293,536	$	39,316	$	—		$	420,019
Net property, plant and equipment		—		1,193,705		20,433		—			1,214,138
Intangibles and goodwill, net		—		2,495,370		30,812		—			2,526,182
Other assets		3,707,352		10,571		7		(3,680,327	)		37,603
Total assets	$	3,794,519	$	3,993,182	$	90,568	$	(3,680,327	)	$	4,197,942
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Current maturities of long-term debt	$	17,664	$	—	$	—	$	—		$	17,664
Other current liabilities		120,500		164,393		19,429		—			304,322
Total current liabilities		138,164		164,393		19,429		—			321,986
Long-term debt		2,539,026		—		—		—			2,539,026
Other noncurrent liabilities		26,231		218,900		61,587		(60,886	)		245,832
Total liabilities		2,703,421		383,293		81,016		(60,886	)		3,106,844
Stockholders’ equity		1,091,098		3,609,889		9,552		(3,619,441	)		1,091,098
Total liabilities and stockholders’ equity	$	3,794,519	$	3,993,182	$	90,568	$	(3,680,327	)	$	4,197,942

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Statements of Income and Comprehensive Income for the Three Months Ended September 30, 2018


	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income	(unaudited)
Net revenues	$	—		$	407,656		$	11,659		$	(817	)	$	418,498
Operating expenses
Direct advertising expenses ⁽¹⁾		—			134,863			6,522			(686	)		140,699
General and administrative expenses ⁽¹⁾		—			71,046			2,120			—			73,166
Corporate expenses ⁽¹⁾		—			20,252			415			—			20,667
Depreciation and amortization		—			53,956			1,133			—			55,089
Loss (gain) on disposition of assets		—			559			(152	)		—			407
		—			280,676			10,038			(686	)		290,028
Operating income (loss)		—			126,980			1,621			(131	)		128,470
Equity in (earnings) loss of subsidiaries		(126,015	)		—			—			126,015			—
Other expenses (income)		31,850			(8	)		(18	)		(131	)		31,693
Income (loss) before income tax expense		94,165			126,988			1,639			(126,015	)		96,777
Income tax expense ⁽²⁾		—			2,167			445			—			2,612
Net income (loss)	$	94,165		$	124,821		$	1,194		$	(126,015	)	$	94,165

Statement of Comprehensive Income
Net income (loss)	$	94,165		$	124,821		$	1,194		$	(126,015	)	$	94,165
Total other comprehensive income, net of tax		—			—			221			—			221
Total comprehensive income (loss)	$	94,165		$	124,821		$	1,415		$	(126,015	)	$	94,386

(1) Caption is exclusive of depreciation and amortization.
(2) The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries.

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Statements of Income and Comprehensive Income for the Three Months Ended September 30, 2017


	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Lamar Media Consolidated
Statement of Income	(unaudited)
Net revenues	$	—		$	387,095		$	13,303	$	(1,053	)	$	399,345
Operating expenses
Direct advertising expenses ⁽¹⁾		—			128,175			7,408		(606	)		134,977
General and administrative expenses ⁽¹⁾		—			66,467			2,033		—			68,500
Corporate expenses ⁽¹⁾		—			14,705			277		—			14,982
Depreciation and amortization		—			49,475			2,321		—			51,796
(Gain) loss on disposition of assets		—			(2,737	)		3		—			(2,734	)
		—			256,085			12,042		(606	)		267,521
Operating income (loss)		—			131,010			1,261		(447	)		131,824
Equity in (earnings) loss of subsidiaries		(128,500	)		—			—		128,500			—
Other expenses (income)		32,063			(2	)		448		(447	)		32,062
Income (loss) before income tax expense		96,437			131,012			813		(128,500	)		99,762
Income tax expense ⁽²⁾		—			2,659			666		—			3,325
Net income (loss)	$	96,437		$	128,353		$	147	$	(128,500	)	$	96,437

Statement of Comprehensive Income
Net income (loss)	$	96,437		$	128,353		$	147	$	(128,500	)	$	96,437
Total other comprehensive income, net of tax		—			—			1,216		—			1,216
Total comprehensive income (loss)	$	96,437		$	128,353		$	1,363	$	(128,500	)	$	97,653

(1) Caption is exclusive of depreciation and amortization.
(2) The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries.

LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) (In Thousands, Except for Share Data) Condensed Consolidating Statements of Income and Comprehensive Income for the Nine Months Ended September 30, 2018


	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income	(unaudited)
Net revenues	$	—		$	1,164,039		$	37,880		$	(2,595	)	$	1,199,324
Operating expenses
Direct advertising expenses ⁽¹⁾		—			400,703			21,042			(1,969	)		419,776
General and administrative expenses ⁽¹⁾		—			206,522			6,538			—			213,060
Corporate expenses ⁽¹⁾		—			60,468			1,255			—			61,723
Depreciation and amortization		—			162,536			4,715			—			167,251
(Gain) loss on disposition of assets		—			(268	)		7,533			—			7,265
		—			829,961			41,083			(1,969	)		869,075
Operating income (loss)		—			334,078			(3,203	)		(626	)		330,249
Equity in (earnings) loss of subsidiaries		(322,592	)		—			—			322,592			—
Interest expense (income), net		97,320			(18	)		332			(626	)		97,008
Other expenses (income)		15,429			—			—			—			15,429
Income (loss) before income tax expense		209,843			334,096			(3,535	)		(322,592	)		217,812
Income tax expense ⁽²⁾		—			5,708			2,261			—			7,969
Net income (loss)	$	209,843		$	328,388		$	(5,796	)	$	(322,592	)	$	209,843

Statement of Comprehensive Income
Net income (loss)	$	209,843		$	328,388		$	(5,796	)	$	(322,592	)	$	209,843
Total other comprehensive loss, net of tax		—			—			(599	)		—			(599	)
Total comprehensive income (loss)	$	209,843		$	328,388		$	(6,395	)	$	(322,592	)	$	209,244

(1) Caption is exclusive of depreciation and amortization.
(2) The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries.

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In Thousands, Except for Share Data)

Condensed Consolidating Statements of Income and Comprehensive Income for the Nine Months Ended September 30, 2017


	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income	(unaudited)
Net revenues	$	—		$	1,107,583		$	38,191		$	(2,989	)	$	1,142,785
Operating expenses
Direct advertising expenses ⁽¹⁾		—			381,317			22,330			(1,751	)		401,896
General and administrative expenses ⁽¹⁾		—			199,979			6,473			—			206,452
Corporate expenses ⁽¹⁾		—			47,320			834			—			48,154
Depreciation and amortization		—			148,357			6,646			—			155,003
(Gain) loss on disposition of assets		—			(4,377	)		—			—			(4,377	)
		—			772,596			36,283			(1,751	)		807,128
Operating income (loss)		—			334,987			1,908			(1,238	)		335,657
Equity in (earnings) loss of subsidiaries		(326,401	)		—			—			326,401			—
Interest expense (income), net		95,521			(5	)		1,242			(1,238	)		95,520
Other expenses (income)		71			—			—			—			71
Income (loss) before income tax expense		230,809			334,992			666			(326,401	)		240,066
Income tax expense ⁽²⁾		—			7,528			1,729			—			9,257
Net income (loss)	$	230,809		$	327,464		$	(1,063	)	$	(326,401	)	$	230,809

Statement of Comprehensive Income
Net income (loss)	$	230,809		$	327,464		$	(1,063	)	$	(326,401	)	$	230,809
Total other comprehensive income, net of tax		—			—			2,104			—			2,104
Total comprehensive income (loss)	$	230,809		$	327,464		$	1,041		$	(326,401	)	$	232,913

(1) Caption is exclusive of depreciation and amortization.
(2) The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries.

LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) (In Thousands, Except for Share Data) Condensed Consolidating Statement of Cash Flows for the Nine Months Ended September 30, 2018


	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
	(unaudited)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	273,307		$	445,984		$	7,259		$	(383,263	)	$	343,287
Cash flows from investing activities:
Acquisitions		—			(48,141	)		—			—			(48,141	)
Capital expenditures		—			(78,944	)		(3,230	)		—			(82,174	)
Proceeds from disposition of assets and investments		—			2,952			2,808			—			5,760
Proceeds received from insurance claims		—			—			4,222			—			4,222
Investment in subsidiaries		(60,424	)		—			—			60,424			—
Decrease (increase) in intercompany notes receivable		32,849			—			—			(32,849	)		—
Decrease in notes receivable		7			—			—			—			7
Net cash (used in) provided by investing activities		(27,568	)		(124,133	)		3,800			27,575			(120,326	)
Cash flows from financing activities:
Principal payments on long-term debt		(20,097	)		(22	)		—			—			(20,119	)
Payment on revolving credit facility		(368,000	)		—			—			—			(368,000	)
Proceeds received from revolving credit facility		275,000			—			—			—			275,000
Redemption of senior subordinated notes		(509,790	)		—			—			—			(509,790	)
Proceeds received from senior credit facility term loans		599,250			—			—			—			599,250
Debt issuance costs		(6,374	)		—			—			—			(6,374	)
Intercompany loan (payments) proceeds		—			—			(32,849	)		32,849			—
Distributions to non-controlling interest		—			—			(388	)		—			(388	)
Contributions from (to) parent		58,427			60,424			—			(60,424	)		58,427
Dividends (to) from parent		(355,147	)		(383,263	)		—			383,263			(355,147	)
Net cash (used in) provided by financing activities		(326,731	)		(322,861	)		(33,237	)		355,688			(327,141	)
Effect of exchange rate changes in cash and cash equivalents		—			—			(682	)		—			(682	)
Net (decrease) increase in cash and cash equivalents		(80,992	)		(1,010	)		(22,860	)		—			(104,862	)
Cash and cash equivalents at beginning of period		86,546			1,625			26,800			—			114,971
Cash and cash equivalents at end of period	$	5,554		$	615		$	3,940		$	—		$	10,109

LAMAR MEDIA CORP. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) (In Thousands, Except for Share Data) Condensed Consolidating Statement of Cash Flows for the Nine Months Ended September 30, 2017


	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
	(unaudited)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	227,195		$	398,200		$	5,472		$	(332,265	)	$	298,602
Cash flows from investing activities:
Acquisitions		—			(119,936	)		—			—			(119,936	)
Capital expenditures		—			(69,665	)		(4,781	)		—			(74,446	)
Proceeds from disposition of assets and investments		—			3,340			—			—			3,340
Investment in subsidiaries		(119,936	)		—			—			119,936			—
(Increase) decrease in intercompany notes receivable		(2,713	)		—			—			2,713			—
Decrease in notes receivable		13			—			—			—			13
Net cash (used in) provided by investing activities		(122,636	)		(186,261	)		(4,781	)		122,649			(191,029	)
Cash flows from financing activities:
Principal payments on long-term debt		(11,250	)		—			—			—			(11,250	)
Payment on revolving credit facility		(407,000	)		—			—			—			(407,000	)
Proceeds received from revolving credit facility		317,000			—			—			—			317,000
Payment on senior credit facility		(247,500	)		—			—			—			(247,500	)
Proceeds received from senior credit facility		450,000			—			—			—			450,000
Debt issuance costs		(4,941	)		—			—			—			(4,941	)
Intercompany loan proceeds (payments)		—			—			2,713			(2,713	)		—
Distributions to non-controlling interest		—			—			(415	)		—			(415	)
Contributions from (to) parent		41,580			119,936			—			(119,936	)		41,580
Dividends (to) from parent		(252,925	)		(332,265	)		—			332,265			(252,925	)
Net cash (used in) provided by financing activities		(115,036	)		(212,329	)		2,298			209,616			(115,451	)
Effect of exchange rate changes in cash and cash equivalents		—			—			1,767			—			1,767
Net (decrease) increase in cash and cash equivalents		(10,477	)		(390	)		4,756			—			(6,111	)
Cash and cash equivalents at beginning of period		12,762			1,201			21,067			—			35,030
Cash and cash equivalents at end of period	$	2,285		$	811		$	25,823		$	—		$	28,919