Excuse me, everyone. We now have Sean Reilly and Jay Johnson in conference. [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 and effects of general economic conditions, including inflationary pressures on the company's business, financial conditions 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 company -- in this call and the company's first quarter 2024 earnings release and its most recent annual report on Form 10-K. Lamar refers you to those documents. Lamar's first quarter 2024 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, you may begin.

Thank you, Michael. Good morning, and welcome to Lamar's Q1 2024 Earnings Call. I'm pleased to report we had a very successful first quarter, one that exceeded our internal expectations for both revenue and EBITDA growth, thanks to continued strength in local sales and a renewed growth on our digital platform, both helped offset weakness in national ad spend. For the quarter, revenue grew 5.3% on an acquisition-adjusted basis, the largest increase since the [ 2 ] and the 12th consecutive quarter of pro forma revenue growth. EBITDA also increased 6.5% on the same acquisition-adjusted basis. This despite some tough expense comps as a result of COVID relief grants received a year ago in our airport business. Overall, the year is shaping up nicely. Pacings for the rest of 2024 are materially stronger than this time last year. Therefore, we're raising our guidance for full year AFFO per share to the range of $7.75 to $7.90 per share. We are recommending that the Board approve another $1.30 per share distribution for Q2. But if the year plays out as it appears it will, you will see us raise the distribution in August and perhaps also pay a special dividend at year-end. Back to Q1, strong categories included service, amusements and attractions, and building and construction, while health care and insurance were relatively weaker. Revenue from political was $3.8 million, up nearly $3 million over the first quarter of 2023 and slightly ahead of the total for the first quarter of 2022. We expect political to continue to be a tailwind this year. As I mentioned, our local business was extremely strong, up 6.7% versus the year earlier quarter. Programmatic was also very strong, up 27%. But on the whole, National was down about 5.5% versus the first quarter of 2023.…

Thanks, Sean. Good morning, everyone, and thank you for joining us. We had a solid first quarter and are pleased with our results, not only surpassing budget on revenue and adjusted EBITDA, but for operating expenses and AFFO as well. Q1 marked the second consecutive quarter of near double-digit AFFO growth as short-term interest rates are more stable, and we have seen strong reacceleration on the top line. Our billboard regions experienced mid-single-digit top line growth with the exception of the Midwest, which was essentially flat year-over-year. While coming in below budget, acquisition-adjusted operating expenses increased 4.4%, primarily driven by minimum guarantees to our airport partners returning to normal. As you may recall, in 2023, we benefited from COVID-19 relief grants in our Airport business, especially in the first and third quarters, which will not repeat this year. Solid revenue growth in both Transit and Airport, which grew 11.6% and 20.4%, respectively, also contributed to expense growth with a heavier concentration of percentage rent contracts versus our core billboard portfolio. Acquisition-adjusted operating expenses increased on a consolidated basis. However, the Billboard division continued its focus on expense control, exceeding our expectations with expenses declining by approximately 70 basis points year-over-year. Consolidated operating expense growth for the full year, acquisition adjusted, should be in the 3% to 3.5% range. Adjusted EBITDA for the quarter was $211.9 million compared to $198 million in 2023, which was an increase of 7.1%. On an acquisition-adjusted basis, adjusted EBITDA expanded by 6.5%. Adjusted EBITDA margin for the quarter remained strong at 42.5%, one of the strongest first quarters in recent history and expanding 50 basis points over the first quarter of 2023. Adjusted funds from operations totaled $158.2 million in the first quarter compared to $144.1 million last year, an increase of 9.8% despite cash…

Thanks, Jay. As Jay mentioned, thinking about regions, we had relative strength across all but one of our regions. I'm particularly proud of New York and Seattle. They really raised their game on local sales in the face of national softness. Also, as Jay mentioned, to shout out to Transit, particularly in Canada, which has returned to strong growth, and Airports, which showed exceptional growth. Most of Q1's growth came from rate, but we also saw some gains in occupancy. On same-board digital, as I mentioned, we're proud to return to growth there at 2.7%. Recall that last year, for all -- for the full year, digital same-board revenue was down 1.8%. So good to see that positive number again. In terms of local regional versus national programmatic, roughly in Q1, 82% local, 18% national, a tick up in local, it shows up in that stat. In fact, if you look at our top 10 customers, their revenue with us in Q1 totaled $23.3 million, which is less than 5% of our book. That just goes to illustrate that the strength is really across tens of thousands of local customers touched by our approximately 1,000 account executives across the country. Again, on relative strength in verticals, services was up 14.5%, restaurants were up 6%, amusement and attractions up 11.4%, and building and construction, this is a great number here, up 33.2%. Relative weakness, of course, as we mentioned, health care and insurance continue to lag. With that, we'll open it up for questions.

[Operator Instructions] And our first question will come from Cameron McVeigh with Morgan Stanley.

Just a couple of questions here. To start, as you look to the remainder of the year, how do you expect the cadence of organic growth to shape up, especially with consideration to the election in the back half of the year?

Sure. So we have April in-house already and its growth was roughly the same as Q1. In terms of cadence playing out quarterly, Q2 might be a tad lower in its pro forma growth than Q1, but we see the back half being materially better. Again, we're going to get that lift from political, as you mentioned. So -- but I wouldn't look to too much quarterly variation actually. They're all going to be relatively in the same ballpark.

Got it. And then secondly, I noticed the expected stock-based comp increased by about $15 million for the year. Is that tied to performance versus what was originally budgeted or maybe just more grants than you had expected?

That, you nailed it right there. Last year, we didn't hit our internal goals, and we had less performance stock awards. This year, we are going to exceed our internal goals. And so that's the difference.

Got it. And then -- okay. Finally, do you have any further color on the expected timing of the NOL usage and how that might impact the distribution going forward?

I'll kick that one over to Jay with the comment that we're basically running out of it as we speak. And that is the reason that we will -- you'll see a jump in the distribution in the back half.

That's right, Cameron. If you recall, I think we converted to a REIT in 2014, and we've been using NOLs since that time to moderate our taxable income. If this year plays out as we anticipate, this will be the last year that we will be able to use NOLs. Going forward, what you'll see is an upper pressure on our distribution as we seek to distribute 100% of our taxable income in compliance with our policy.

And we have our next question, David Karnovsky with JPMorgan.

This is [ Ken ] on for David. I just wanted to ask about cost guidance for 2024. You guys added it to between 3% to 3.5%. I just wanted to ask about the puts and takes that will push you either to the high or low end of that range. I assume that it contemplates 2% to 2.5% of normalized expense growth plus the roll-off of COVID relief grants and peak ERP spending. So -- any color that you could shed on that would be helpful.

Sure. Yes. Yes. If I understand the question, you all's model -- or you're modeling a little more than 3% growth on the comp...

Top 3 to 5, what would take you to...

Okay. I got it. I got it. Okay. Got it. Got it. What takes it to the upper end of what you just said to the 5% growth. Look, if we have really steady performance in local sales like we demonstrated in Q1 and a modest, modest recovery in national. We'll get there. We'll get to the top end of that range. And then on the expense side, I think your model is spot on.

I think you're right. It's the return of COVID-19 relief grants as well as peak ERP spend are the major drivers.

[Operator Instructions] And our next question comes from Jason Bazinet with Citi.

This may be sort of a strange question, but when I read the press, it feels like consumers are sort of more upset at the health of the economy. They don't like the inflation that's going on and the wages aren't keeping up. But the ad numbers have been pretty strong. Are there any sort of areas that you're looking at that are showing signs of stress? Or is sort of the aggregate numbers that you put up and the commentary you're getting from your sales force, all as constructive as the aggregate top line that you guys are talking about?

Jason, one of the data points I mentioned was the relative strength in quick-service restaurants. And of course, they've been all over the news talking about the strength of the consumer. But in our book, they were up 6%, right? So I would say that at least in terms of Lamar's book of business, we're not seeing that.

And that does conclude today's Q&A session. I will now turn the call back over to Sean Reilly for closing remarks.

Well, thanks, Michael, and thanks all for your interest in Lamar. We look forward to chatting again in August.

Thank you. This does conclude today's teleconference. Thank you for your participation. You may now disconnect.