Lamar Advertising Co Liquidation Value

Lamar Advertising Co/New (LAMR) presents a deeply negative liquidation posture as of March 31, 2026, consistent with prior periods. MFFAIS reports a cash liquidation value of negative $5.21B and a liquid liquidation value of negative $4.89B. The structural driver is a liability stack that dwarfs recoverable tangible assets under liquidation haircuts, with intangibles and goodwill receiving zero recovery weight.

On the asset side, total assets are $6.91B. Cash of $39.3M recovers at par. Net AR of $323.6M (against a $12.4M allowance) recovers at approximately $290-305M at a 90-95% haircut. PP&E gross is $4.80B with $3.12B of accumulated depreciation, yielding net book value of $1.68B; at a 50-70% recovery rate on net book, liquidation proceeds are approximately $840M-$1.18B. However, the largest asset categories — goodwill ($2.11B), finite-lived intangibles net ($1.13B), and operating lease right-of-use assets ($1.50B) — receive zero or near-zero liquidation value. These three categories alone represent approximately $4.74B of balance sheet value with negligible forced-sale recovery.

On the liability side, total liabilities are $5.93B at face value. Key obligations include: long-term debt (current + noncurrent) of approximately $3.49B face value ($242M current, $3.25B noncurrent); operating lease liabilities of $1.45B (current $197M, noncurrent $1.25B) which do not extinguish on windup; asset retirement obligations of $627M; deferred revenue of $165M; accrued liabilities of $113M. The Accounts Receivable Securitization Program carries $242M outstanding and is structurally senior — the SPV assets are ring-fenced and not available to general creditors of Lamar Media.

Since the prior filing (10-K for year ended December 31, 2025), no material change in the liability structure has occurred. The $700M Term B loan tranche established via Amendment No. 5 in September 2025 was already reflected in the December 2025 balance sheet. The $400M 5 3/8% Senior Notes issued September 2025 similarly pre-dates this quarter. Q1 2026 activity added $58.6M in acquisition spend, financed via revolving credit, partially offset by $12.3M in PP&E sale proceeds. No new debt issuances occurred in the quarter. The working capital deficit narrowed modestly from $334.3M to $308.6M, primarily due to a decrease in current operating lease liabilities. Goodwill increased modestly from acquisitions. The operating lease ROU asset and corresponding liability are stable and large, both representing significant face-value claims under liquidation that have no asset-side offset. Filing discusses the $2.07B total undiscounted future operating lease obligation in the contractual obligations table but this is not separately tagged in XBRL at the total level — only annual tranches are tagged.