Boston Omaha Corporation Announces Adoption of $20 Million Class A Common Stock Repurchase Program
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) ha annunciato un programma di riacquisto di azioni da $20 milioni per le sue azioni ordinarie di Classe A, in vigore dal 15 agosto 2024 fino al 30 settembre 2025. Il programma consente all'azienda di riacquistare azioni tramite acquisti sul mercato aperto o transazioni negoziate privatamente, in conformità con la Regola 10b-18. Adam Peterson, Presidente e CEO, ha dichiarato che il programma integra le loro opzioni di allocazione del capitale, permettendo riacquisti opportunistici delle azioni insieme a continue investimenti nell'attività. Il Consiglio ha inoltre autorizzato l'istituzione di piani di trading ai sensi della Regola 10b5-1 per questi riacquisti. Il momento effettivo, il numero e il valore delle azioni riacquistate dipenderanno da vari fattori, tra cui prezzo, condizioni di mercato e opportunità di investimento alternative.
Boston Omaha (NYSE: BOC) ha anunciado un programa de recompra de acciones de $20 millones para sus acciones ordinarias Clase A, que entrará en vigor desde el 15 de agosto de 2024 hasta el 30 de septiembre de 2025. El programa permite a la empresa recomprar acciones a través de compras en el mercado abierto o transacciones negociadas de forma privada, cumpliendo con la Regla 10b-18. Adam Peterson, Presidente y CEO, afirmó que el programa añade opciones a su asignación de capital, permitiendo recompras oportunistas de acciones junto con inversiones empresariales continuas. La Junta también ha autorizado el establecimiento de planes de comercio bajo la Regla 10b5-1 para estas recompras. El momento real, número y valor de las acciones recompradas dependerán de varios factores, incluyendo precio, condiciones del mercado y oportunidades de inversión alternativas.
Boston Omaha (NYSE: BOC)는 2024년 8월 15일부터 2025년 9월 30일까지 유효한 2천만 달러 규모의 클래스 A 보통주 자사주 매입 프로그램을 발표했습니다. 이 프로그램은 회사가 열린 시장에서의 매입 또는 비공식 협상 거래를 통해 주식을 재매입할 수 있도록 하며, 이는 규칙 10b-18을 준수합니다. 아담 피터슨 회장 겸 CEO는 이 프로그램이 자본 배분 옵션을 확장하여 기회에 따라 주식을 재매입하고 계속해서 사업에 투자할 수 있게 해준다고 밝혔습니다. 이사회는 또한 이러한 재매입을 위한 규칙 10b5-1 거래 계획의 수립을 승인했습니다. 실제 주식 재매입의 시기, 수량 및 가치는 가격, 시장 조건, 대체 투자 기회 등 다양한 요인에 따라 달라질 것입니다.
Boston Omaha (NYSE: BOC) a annoncé un programme de rachat d'actions de 20 millions de dollars pour ses actions ordinaires de classe A, en vigueur du 15 août 2024 au 30 septembre 2025. Le programme permet à l'entreprise de racheter des actions par le biais d'achats sur le marché ouvert ou de transactions privées négociées, conformément à la règle 10b-18. Adam Peterson, Président et CEO, a déclaré que ce programme ajoute à leurs options d'allocation de capital, permettant des rachats opportunistes d'actions tout en continuant à investir dans les affaires. Le conseil d'administration a également autorisé l'établissement de plans de négociation conformes à la règle 10b5-1 pour ces rachats. Le moment effectif, le nombre et la valeur des actions rachetées dépendront de divers facteurs, y compris le prix, les conditions du marché et les opportunités d'investissement alternatives.
Boston Omaha (NYSE: BOC) hat ein Aktienrückkaufprogramm über 20 Millionen Dollar für seine Class A Stammaktien angekündigt, das vom 15. August 2024 bis zum 30. September 2025 gilt. Das Programm erlaubt es dem Unternehmen, Aktien über Käufe am offenen Markt oder privat verhandelte Transaktionen in Übereinstimmung mit Regel 10b-18 zurückzukaufen. Adam Peterson, Vorsitzender und CEO, erklärte, dass das Programm ihre Möglichkeiten zur Kapitalallokation erweitert und opportunistische Aktienrückkäufe neben fortlaufenden Geschäftsinvestitionen ermöglicht. Der Vorstand hat auch die Einrichtung von Handelsplänen gemäß Regel 10b5-1 für diese Rückkäufe genehmigt. Der tatsächliche Zeitpunkt, die Anzahl und der Wert der zurückgekauften Aktien hängen von verschiedenen Faktoren ab, einschließlich Preis, Marktbedingungen und alternativen Anlagemöglichkeiten.
- Adoption of a $20 million share repurchase program
- Potential to increase shareholder value through stock buybacks
- Flexibility in capital allocation strategy
- Confidence in the company's intrinsic value and prospects
- Reduction in cash reserves available for other investments or operations
- No guarantee of actual share repurchases or their impact on stock price
Insights
Boston Omaha 's announcement of a
- The program's size (
$20 million ) is substantial relative to Boston Omaha's market capitalization, indicating a meaningful commitment to shareholder value. - The extended timeframe (until September 2025) provides flexibility for strategic execution.
- Management's belief that the stock trades at a 'meaningful discount' to intrinsic value implies potential upside for investors.
- The program adds another tool for capital allocation, potentially signaling a mature approach to balancing growth investments and shareholder returns.
However, investors should note that the program doesn't guarantee actual repurchases and its impact will depend on execution. The delayed start date (August 15, 2024) also suggests that immediate effects on stock price may be Overall, this move could be seen as a positive signal for long-term value creation, but its effectiveness will depend on the company's financial performance and market conditions over the next few years.
The adoption of this share repurchase program by Boston Omaha reveals several important aspects of corporate governance and strategy:
- Board alignment with shareholder interests: By approving this program, the Board demonstrates its commitment to enhancing shareholder value.
- Flexible capital allocation: The program provides management with an additional tool for optimizing capital deployment, potentially improving overall returns.
- Transparency and compliance: The company's decision to potentially establish Rule 10b5-1 trading plans shows a commitment to regulatory compliance and transparent operations.
- Long-term focus: The extended timeframe of the program (until September 2025) suggests a strategic, rather than reactive, approach to share repurchases.
However, it's important to note that the effectiveness of such programs in creating long-term value is debated among governance experts. Some argue that resources used for buybacks could be better invested in growth initiatives. Investors should monitor how this program is balanced with other capital allocation priorities to assess its impact on Boston Omaha's long-term value creation strategy.
“We believe our Class A common stock to be an attractive investment when, as we believe is currently the case, it trades at a meaningful discount to our view of the Company's intrinsic value and prospects. With the adoption of a repurchase program, we add to our capital allocation options the ability to opportunistically repurchase shares alongside our ability to continue investing in our businesses. We will continue to allocate capital to what we believe is its best and highest use in order to grow long-term value on a per share basis,” said Adam Peterson, Chairman and Chief Executive Officer.
The Board also authorized the Company, in its discretion, to establish “Rule 10b5-1 trading plans” for these share repurchases. Rule 10b5-1 trading plans allow companies to repurchase shares at times when they might otherwise be prevented from doing so by securities laws or because of self-imposed trading blackout periods.
The actual timing, number and value of shares repurchased under the stock repurchase program will depend on a number of factors, including constraints specified in applicable SEC regulations, price, general business and market conditions, and alternative investment opportunities. The share buyback program does not obligate the Company to acquire any specific number of shares in any period, and may be expanded, extended, modified or discontinued at any time.
About Boston Omaha Corporation
Boston Omaha Corporation is a public holding company with four majority owned businesses engaged in outdoor advertising, broadband telecommunications services, surety insurance and asset management. For more information, please visit www.bostonomaha.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are “forward-looking statements” for purposes of this press release on Form 8-K, including statements concerning the Company’s plans to consummate the share repurchase program; the timing and ability of the Company to repurchase additional shares of Class A common stock, if any, under the share repurchase program; fluctuations in the trading volume and market price of shares of the Company’s Class A common stock, our expectations regarding future growth, general business and market conditions and management’s determination of alternative needs and uses of the Company’s cash resources, all of which may affect the Company’s long-term performance and repurchases under the share repurchase program; and any statements or assumptions underlying any of the foregoing. In some cases, forward-looking statements can be identified by the use of terminology such as “may,” “will,” “expects,” “plans,” “anticipates,” “estimates,” or the negative thereof or other comparable terminology. Although the Company believes that the expectations reflected in the forward-looking statements contained herein are reasonable, such expectations or any of the forward-looking statements may prove to be incorrect and actual results could differ materially from those projected or assumed in the forward-looking statements. Important factors discussed under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and its other filings with the Securities and Exchange Commission could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While the Company may elect to update such forward-looking statements at some point in the future, it disclaims any obligation to do so, except as required by law, even if subsequent events cause its views to change.
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Boston Omaha Corporation
Josh Weisenburger, 402-210-2633
contact@bostonomaha.com
Source: Boston Omaha Corporation
FAQ
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