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Overview of Boston Omaha Corporation (BOC)
Boston Omaha Corporation (BOC) is a diversified holding company headquartered in the United States, engaged in a range of business activities spanning outdoor advertising, real estate, insurance, and asset management. Guided by a disciplined capital allocation strategy, the company’s primary focus is on growing its book value per share by acquiring and managing high-quality businesses across multiple industries. BOC’s business model is rooted in creating long-term value through strategic investments and operational excellence, making it a unique player in the holding company landscape.
Core Business Segments
1. Outdoor Advertising
BOC operates a significant portfolio of outdoor billboards across states such as Florida, Georgia, Wisconsin, and Alabama. The company generates revenue by leasing advertising space to businesses, providing a stable and recurring income stream. Outdoor advertising remains a resilient market segment, offering BOC a reliable foundation for cash flow generation. Its focus on strategic locations ensures high visibility and maximizes advertiser value.
2. Real Estate Investments
Real estate is a cornerstone of BOC’s diversified portfolio. The company holds equity investments in various real estate ventures, leveraging its expertise to identify opportunities with strong growth potential. These investments provide both capital appreciation and income through property leasing and development activities, contributing to BOC’s long-term financial stability.
3. Insurance Operations
BOC’s insurance segment specializes in surety bonds, generating revenue through commissions on bond sales. This niche market is characterized by consistent demand, driven by regulatory requirements in industries such as construction and real estate. By focusing on this specialized area, BOC has carved out a competitive advantage, offering tailored solutions to its clients while maintaining steady revenue streams.
4. Broadband Services
In the broadband sector, BOC is actively involved in providing internet services through its subsidiaries. Revenue is recognized on a straight-line basis over the term of service contracts, ensuring predictable income. This segment represents a growth area for BOC, as demand for high-speed internet continues to rise in both urban and rural markets. The company’s strategic investments in this space align with broader trends in digital transformation and connectivity.
Strategic Approach to Capital Allocation
BOC’s management, led by Alex B. Rozek and Adam K. Peterson, employs a disciplined approach to capital deployment, inspired by the investment philosophy of Berkshire Hathaway. The company prioritizes long-term value creation over short-term gains, carefully evaluating potential acquisitions and investments to ensure alignment with its overarching goal of growing book value per share. This strategy allows BOC to remain agile and opportunistic, capitalizing on market inefficiencies and emerging opportunities.
Competitive Positioning and Market Significance
Boston Omaha Corporation operates in competitive yet niche markets, where its diversified business model provides a significant edge. In outdoor advertising, its strategic billboard locations offer high visibility and attract a broad range of advertisers. In insurance, its specialization in surety bonds differentiates it from general insurers, while its broadband investments position it to benefit from increasing digital connectivity demands. By balancing stable cash-flow-generating businesses with high-growth opportunities, BOC has established itself as a resilient and forward-thinking company.
Challenges and Opportunities
Like any diversified holding company, BOC faces challenges such as managing the complexities of its varied business segments and navigating competitive pressures in each industry. However, its disciplined capital allocation strategy and focus on long-term value creation mitigate these risks. Opportunities for growth lie in expanding its broadband services, scaling its real estate investments, and leveraging its expertise in outdoor advertising to capture a larger market share.
Conclusion
Boston Omaha Corporation exemplifies a modern holding company with a strategic focus on diversification, capital efficiency, and long-term value creation. Its operations across outdoor advertising, real estate, insurance, and broadband services underscore its ability to balance stability with growth. By maintaining a disciplined approach to capital allocation and leveraging its expertise in niche markets, BOC continues to position itself as a significant player in its industries.
Boston Omaha (NYSE: BOC) has appointed David S. Graff to its Board of Directors, effective immediately. Graff will serve as Chair of the Audit Committee and member of the Compensation Committee. He is notably the founder of Hudl, a sports technology company providing video analysis and coaching tools used by over 300,000 teams across 40 sports in 180 countries, including major leagues like NHL, NFL, NBA, and English Premier League. Hudl employs more than 3,500 people across 18 countries.
Graff brings significant board experience, having served on Nelnet's (NYSE:NNI) board since 2014 where he participates in both Audit and Risk and Finance Committees. He also serves on the boards of Assurity and Teammates, and previously served on Sportsmap Tech Acquisition Corp's board from 2021 to 2023. He holds a BS in accounting and computer science and an MBA from the University of Nebraska-Lincoln.
Boston Omaha (NYSE: BOC) announced that Bradford B. Briner will resign from the Company's Board of Directors, effective December 31, 2024, following his election as Treasurer of the State of North Carolina. Briner will assume his new role on January 1, 2025, after winning the November 2024 general election. Adam K. Peterson, the Company's President and CEO, praised Briner's contributions to the board, highlighting his business acumen and analytical skills. Briner expressed enthusiasm for his new role while affirming his intention to remain a long-term BOC stockholder.
Boston Omaha (NYSE: BOC) reported Q3 2024 financial results with total revenues of $27.7 million, up from $24.5 million in Q3 2023. The company posted a net loss of $1.6 million ($0.05 per share). Revenue growth was seen across all segments: Billboard rentals reached $11.5 million, Broadband services $9.7 million, and Premiums earned $5.4 million. The company's book value per share decreased to $16.82 from $17.19 at year-end 2023. Cash flow from operations was $12.1 million for the nine months ended September 30, 2024. During Q3, BOC repurchased 97,262 shares for $1.38 million.
Boston Omaha (NYSE: BOC) reported its Q2 2024 financial results. Total revenues increased to $27,087,783, up from $24,216,394 in Q2 2023. However, the company reported a net loss from operations of $4,396,615, compared to a loss of $1,642,904 in the same period last year. The net loss attributable to common stockholders was $2,235,219, or $0.07 per share, compared to a net income of $1,541,612, or $0.05 per share, in Q2 2023.
The company's billboard rentals and broadband services showed growth, while premiums earned also increased. Total assets stood at $723,064,123 as of June 30, 2024. The company's book value per share decreased to $16.86 from $17.19 at the end of 2023. Cash inflow from operations for the first half of 2024 improved to $6.9 million, compared to $4.4 million in the same period of 2023.
Fiber Fast Homes, a subsidiary of Boston Omaha (NYSE: BOC), has appointed Randy Cosby as its new CEO. Cosby, co-founder of InfoWest, brings 30 years of experience in the Internet service provider industry. He will lead Fiber Fast Homes' efforts to collaborate with developers and builders for fiber-to-the-home Internet installations in new developments.
Cosby replaces Scott Sampson and will maintain his role as Executive VP at InfoWest. His background includes launching InfoWest in 1994 and overseeing various aspects of the company's growth. The appointment aims to leverage Cosby's expertise in growing ISPs and providing exceptional customer experiences to further Fiber Fast Homes' expansion and market leadership.
Boston Omaha (NYSE: BOC) has announced leadership changes in its broadband division, Boston Omaha Broadband (BOB). J. Max Meisinger, previously CFO of BOB, has been promoted to President and CEO, replacing Steve McGhie, who is stepping down to focus on personal interests but will remain as a consultant. BOB serves over 44,000 subscribers in Arizona and Utah, and provides broadband services to large-scale new home developments in Florida and other states.
Meisinger, who joined Boston Omaha in 2019, brings extensive financial and leadership experience to his new role. The company believes his skills will help BOB achieve significant growth and improved operating profitability. Key team members Mark Burgers and Frank DeJoy will support Meisinger in business development and network deployment, respectively.
Boston Omaha (NYSE: BOC) has announced a $20 million share repurchase program for its Class A common stock, effective from August 15, 2024, through September 30, 2025. The program allows the company to repurchase shares through open market purchases or privately-negotiated transactions, in compliance with Rule 10b-18. Adam Peterson, Chairman and CEO, stated that the program adds to their capital allocation options, allowing opportunistic share repurchases alongside continued business investments. The Board has also authorized the establishment of Rule 10b5-1 trading plans for these repurchases. The actual timing, number, and value of shares repurchased will depend on various factors, including price, market conditions, and alternative investment opportunities.
Boston Omaha (NYSE: BOC) has scheduled its 2024 Annual Meeting of Stockholders for September 20, 2024.
The meeting will take place at The Salvation Army Omaha Kroc Center – Joyce Mammel Assembly Hall, Omaha, NE, beginning at 10:00 a.m. Central Time.
This year’s meeting will be held in-person without remote streaming.
The new deadline for stockholder proposals and director nominations is June 14, 2024, superseding previous deadlines set in their March 27, 2023 proxy statement.
Proposals must comply with SEC's Rule 14a-8 and the company’s bylaws.
Stockholders should send their submissions to Boston Omaha 's office at 1601 Dodge Street, Suite 3300, Omaha, NE.
Boston Omaha (NYSE: BOC) announced its financial results for Q1 2024, ending March 31. Key highlights include:
Total revenues of $25.55M, up from $22.82M in Q1 2023.
Billboard Rentals and Broadband Services contributed $10.70M and $9.68M, respectively.
Net loss from operations was $2.06M, down from $2.98M in Q1 2023.
Net loss attributable to common stockholders was $2.81M, or $0.09 per share, compared to $3.32M or $0.11 per share in Q1 2023.
Total assets decreased to $757.34M from $768.21M at the end of 2023.
Total unrestricted cash and investments decreased to $33.63M from $71.27M.
Depreciation and amortization expenses increased to $5.34M from $4.51M.
Cash inflow from operations was $2.42M, compared to $1.37M in Q1 2023.
Boston Omaha announced the departure of Co-CEO Alex Rozek to pursue new entrepreneurial opportunities, leaving Adam Peterson as the sole CEO. The company has evolved into a diversified holding company with interests in outdoor advertising, surety insurance, fiber to the home, and minority interests in other corporations. Boston Omaha plans to focus on growing existing business lines before considering new opportunities, aiming to increase value per share for shareholders.
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