Excuse me, everyone, we now have Sean Reilly and Jay Johnson in conference. Please be aware that each of your lines is in a listen-only mode. At the conclusion of the company's presentation, we will open the floor for questions. [Operator Instructions]. In the course of this discussion, Lamar may make forward-looking statements regarding the company, including statements about its future financial performance, strategic goals, plans, and objectives, including with respect to the amount and timing of any distributions to stockholders and the impacts in effects of the COVID 19 pandemic on the Company's business, financial condition, and results of operations. All forward-looking statements involve risks, uncertainties, and contingencies, many of which are beyond Lamar’s control, and which may cause actual results to differ materially from anticipated results. Lamar has identified important factors that could cause actual results to differ materially from those discussed in this call in the company's Fourth Quarter 2021 earnings release. And its most recent annual report on Form 10-K. Lamar refers you to those documents. Lamar fourth-quarter 2021 earnings release, which contains information required by Regulation G regarding certain non-GAAP financial measures was furnished to the SEC on a Form 8-K this morning and is available on the Investors section of Lamar’s website www.lamar.com. I would now like to turn the conference over to Sean Reilly. Mr. Reilly, please go ahead.

Thank you, Katy. Good morning, all, and welcome to Lamar’s Q4, 2021 earnings call. As we close out 2021 and welcome 2022, I'm pleased to say that our industry in general and Lamar in particular are in the best shape ever. Tailwinds are as strong as I've ever seen. Our customers have emerged from COVID with a tremendous appreciation for the ability of out-of-home to reach their customers, with the right message at the right time, in the right place. You can see that in the way our business roared back to, and now well past the levels we were at before COVID came. Secular trends that are a threat to our traditional local media competitors are benefiting us, and our balance sheet was strongest in the industry, is allowing us to invest in our digital expansion and expand our footprint via accretive acquisitions. As greatest 2021 was our best days are yet to come. Q4 was a win all the way around with strength across all products, analog and digital, transit airports and logos, and all categories. Particular categories of strength included gaming, healthcare, finance, and education. Amusement and entertainment continued its rebound, growing 60% above Q4 2020 levels. Digital continued to lead the way with revenue up 25% overall versus Q4 2020, and up 16% on a like-for-like basis. Recall that when 2021 began, we hoped we could return to 2019 levels of revenue in 2 years. Instead, we did it in one. And that rapid rebound combined with the continued benefit of some expense cuts we implemented in 2020 translated into record EBITDA total of over $827 million and at 46.3%, the highest operating margins in the company's history. We also set a record for full-year AFFO at $6.59 per share, more than 6% above the upper…

Thanks, Sean. Good morning, everyone, and thank you for joining us. Continuing the momentum, we experienced throughout 2021, we are extremely pleased with our quarterly results, which once again, exceeded internal expectations, as well as consensus estimates for revenue, adjusted EBITDA, and AFFO. Not only did Lamar exceed internal expectations and consensus, we'd be 2019 on all three fronts as well. The company achieved AFFO growth for the fifth consecutive quarter, improving 4.1% to $1.78 per share on a fully diluted basis versus Q4 2020. In the fourth quarter, acquisition adjusted revenue increased 14% from the same period last year, demonstrating the benefits of our operating model with a portfolio heavily concentrated in billboards. Our billboard revenue came in ahead of Q4 2019 by approximately 8%. Q4 acquisition adjusted revenue and adjusted EBITDA both exceeded the fourth quarter of 2019 for the company. With the second half of 2021 returning to more normal business activity, acquisition adjusted operating expenses increased approximately 17% for the quarter, driven primarily by variable expenses tied to revenue. We reduced operating expenses by approximately $80 million in 2020 to mitigate the impact of the COVID-19 pandemic on our business. With revenue performance far exceeding our expectations from the beginning of the year, approximately $63 million of operating expenses returned in 2021, which was above our most recent revised forecast of $55 million. Despite this acceleration and expenses, the company's still achieved strong adjusted EBITDA margins in the fourth quarter and for the full year. Adjusted EBITDA for the quarter was $230.7 million compared to $207.9 million in 2020, which was. an increase of 11%. On an acquisition adjusted basis, the increase was 10.4%. For the full year, acquisition adjusted revenue increased 13.8% to $1.79 billion, compared to $1.57 billion in 2020. Adjusted EBITDA was $827.3…

Thanks. Thanks, Jay. I'm going to highlight a couple of things around rate increases that we're seeing in Q4. Just to highlight the pricing power in our platform, both digital and analog inventory. We ended the year of 2021 with 3,932 digital units in the air. That was an increase of 212 for the year. Interestingly, even in light of the added capacity, our same unit digital yield was up 16% in Q4 and 23% for the full year of 2021. So clearly, we have pricing power with our digital unit. But one of the best stats we saw coming out of Q4 2021 is our analog posters. Our rate was up 5% and our largest product, Bulletin's rate was up 6.6% in Q4. Again, that gives us tremendous confidence, number one, that in an inflationary environment, we have pricing power. And number two, that again, as our Transit and Airport divisions continue their recovery, we should see out sized growth across the whole platform in 2022. So with that, Kathy, you can open it up for questions.

Thank you, sir. At this time, we will open the floor for questions. [Operator Instructions] Thank you. Our first question will come from Ben Swinburne with Morgan Stanley.

Hey, Ben.

Thanks. Good morning. Hey, Sean. Hey, Jay. Hope you guys are doing well.

Good morning.

I had two questions. We don't often talk transit on our call, but feels like we should today. And I also want to ask about the acquisition impact in '22. So Sean, I think, if I go back to '19, that business did, I'm sure you know the numbers better than me, but maybe a $130 million of revenue all-in. Can you just size the revenue from '21 to ' 22 in transit, and then the expense piece so we can understand how much of that's hitting margins, and then I'll follow up on the acquisition [Indiscernible]

Sure. Yeah, that's pretty close then the 130 when you add up airports, Canadian Transit, and our U.S. Transit division. In terms of their relative recoveries, we're pretty much there with our U.S. Transit divisions. We're not quite there with airports, although they're coming on pretty strong. And then the biggest drag here is Canadian Transit division and our Vancouver operations. The good news is; those businesses will contribute significantly more in EBITDA to the overall company than they did last year. So you're going to see, even in light of the return of the minimum annual guarantees, you're going to see margin expansion in those businesses. In terms of our overall margins, again, as I mentioned, we anticipate that it will be at that 46% level that you saw last year. So 2022 should come in at the same margins for the overall platform.

And then, I don't know if you guys are able to do this for us, but can you help us think about the impact from the acquisition accretion for deals that were completed last year into your guidance? And is there anything contemplated for acquisitions in '22 that's staked into the guidance or would that be potential upside if you guys were able to have an active year in '22?

So for last year, you're going to see those predominantly fall in the Fourth Quarter. So we're going to get a good bump for the full year. As reported, revenue increased for this year should be in 9 to 8 - ish, or 9%.

Eight to ten.

Baked into the guidance is revenue growth of 8 to 10, so that's the as-reported with the impact of the acquisitions. Then again, a 46% operating margin. And no, the guidance does not bake in acquisition activity for 2022.

Are you guys [Indiscernible]

We see a full pipeline.

Yeah, sorry. Go ahead.

Yeah. I was just going to say we see a pretty full pipeline this year. It wouldn't surprise me if we rose to last year's level of dollar value of acquisition in this year. And last year, we did $312 million.

Right. So that would give you another -- I mean, I guess if last year's given you a couple 100 basis points, then you can maybe get another couple 100 out of this year in theory.

We're working hard on several as we speak.

Got it. Great. Thank you.

Yes. See you in a week.

Thank you. [Operator Instructions] Our next question will come from Anna Lou San (ph) from JP Morgan.

Hi, thank you for the question. You mentioned that you had added a little over 200 digital billboards during the year in 2021. And with all the supply chain experience right now, what are you seeing in terms of delays to get the screens? And are you planning to target maybe acquiring more digital boards this year versus organic conversions?

Hey, Anna. So we do still have supply chain issues, but we're managing through them, I think better this year than last. We have a pretty good queue of digital deployments lined up. We think we're going to get to 300 this year. In a typical year with no supply-chain issues, it takes 2 to 3 weeks to get a digital unit. What we're seeing now is about double that. But we're managing it. And yes, we quite often end up purchasing digital units when we do our M&A activity and you'll see a lot of that as well this year.

Okay. Great. And just a follow-up on the tuck-in acquisitions. Are there any particular areas you view as the most interesting geographically in terms of your exposure?

When you look at our overall platform and I would encourage anyone to go on our website and hit the Find Inventory button on our website. And basically what you'll see, Anna, is that we're everywhere, and that virtually any billboard in the lower 48 is a fill in for us. We really don't have targeted geography, our focus is going to be on high-quality re-qualified assets, and in particular ones that we can fold into our existing footprint, which as I said, if you go to the browse inventory section of our website, you'll see that that's pretty much everywhere.

Great. Thanks.

Thank you. At this time. I am showing no further questions. I would now like to turn the call back over to Mr. Reilly for closing remarks.

Well, thank you, Katie. Thank you all for listening. We're looking forward to another record-breaking year for Lamar in 2022, and we will talk to you again in about three months.

Thank you, ladies and gentlemen. This concludes today's teleconference. You may now disconnect.