BATON ROUGE, La. -- Baton Rouge-based Lamar Advertising Co. lowered its first-quarter losses to $4.8 million, or 5 cents per share, compared to $10.3 million, or 11 cents per share, a year ago.
The outdoor advertising giant increased revenue to $284.9 million, compared to $276.6 million a year ago.
The Advocate reports (http://bit.ly/1irAMAs ) the company's results fell short of Wall Street's forecasts.
However, Lamar said Wednesday its loss reflects the company's status as regular domestic C Corporation for federal income tax purposes. If the company converts to a Real Estate Investment Trust, the company said its tax expenses would be lower. The trusts don't have to pay corporate income taxes on profits if at least 90 percent of profits go to shareholders.
Lamar is expected to convert to a REIT in 2014. Although shareholders must still approve the switch, the company said the Internal Revenue Service has signed off on the conversion. The company completed the internal restructuring needed to comply with REIT rules in 2013.
The company reported Funds From Operations of $60.4 million, compared to $59.3 million a year ago. The company's Adjusted Funds From Operations was $58.8 million, up from $50.2 million a year ago. Those numbers have not been adjusted to reflect the lower tax expenses Lamar would have as a REIT.
Lamar said it expects second-quarter revenue to fall in the range of $331 million to $334 million, an increase of 1 percent to 2 percent.
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