Boston Omaha Corporation Announces Full Year 2023 Financial Results
- Boston Omaha (BOC) released its fiscal year 2023 financial results.
- Total revenue for 2023 was $96.25 million, reflecting growth from the previous year.
- The company reported a net loss of $7.00 million in 2023.
- Total assets increased to $768.21 million, while total equity rose to $600.81 million.
- Investments include U.S. treasury securities and marketable equity securities.
- Cash inflow from operations improved to $16.06 million in 2023.
- None.
Insights
The reported financial results from Boston Omaha Corporation reveal a mixed picture for investors, with total revenues seeing an appreciable year-over-year increase, driven by growth in billboard rentals and broadband services. This suggests a solid expansion in core business areas, which is a positive indicator of the company's operational performance. However, the reported net loss for the fiscal year 2023, in contrast to the net income in 2022, warrants a closer examination of the underlying factors contributing to this shift.
Particularly noteworthy is the net loss from operations which has widened compared to the previous year. This could be indicative of rising operational costs or inefficiencies that the company may need to address. The depreciation and amortization expense has also increased, which could be attributed to recent acquisitions and investments in long-term assets. Investors might be concerned about the immediate impact on profitability but should also consider the potential for these investments to generate future income.
Another aspect to consider is the 'Net Other (Loss) Income', which includes significant losses related to equity method investments, particularly in Sky Harbour. This highlights the volatility and risks associated with such investments. The company's decision to hold public securities for the long term, despite unrealized market price changes impacting reported earnings, suggests a strategic approach that may not align with short-term market movements.
The increase in book value per share, albeit marginal, is a positive sign of the company's intrinsic value growth over time. However, investors should also assess the liquidity position, as the unrestricted cash and investments have increased only slightly, which may not provide a substantial buffer for future uncertainties or investment opportunities.
From a market perspective, the performance of Boston Omaha Corporation in sectors such as billboard rentals and broadband services is indicative of broader industry trends. The growth in billboard rentals aligns with the recovery in outdoor advertising as businesses ramp up marketing efforts post-pandemic. The expansion in broadband services is reflective of the ongoing demand for high-speed internet, which has been a critical growth area for many telecommunications companies.
It's also important to consider the competitive landscape and how Boston Omaha's strategic acquisitions, such as InfoWest and Go Fiber, position the company against its peers. These acquisitions could provide a competitive edge in the broadband market, allowing for greater market penetration and potential economies of scale.
However, the company's diversification into different revenue streams, including insurance and investments, introduces complexity into the analysis. The mixed performance in these areas, particularly the fluctuating insurance commissions and investment income, point to the challenges of managing a varied portfolio in different economic climates. Stakeholders should be cognizant of the company's ability to manage these segments effectively, as they can have a significant impact on overall financial health.
Examining the insurance-related financials, there is a modest increase in premiums earned, which suggests growth in the insurance segment. However, insurance commissions have seen a slight decrease. This could be attributed to a variety of factors, including changes in policyholder behavior, competitive pressures, or shifts in the insurance products mix offered by the company.
Investors should consider the implications of the company's insurance operations within the broader context of the insurance market, which has been facing challenges such as increased claims due to natural disasters and regulatory changes. It's also worth noting the company's investment strategy within its insurance entities, as the minimal increase in unrestricted cash and investments held by these entities could imply a conservative approach to liquidity management or potential capital commitments elsewhere.
The nuanced understanding of these insurance operations is important for evaluating the company's resilience to potential future risks and its ability to capitalize on market opportunities within the insurance sector.
We show below summary financial data for fiscal 2023 and 2022. Our Annual Report on Form 10-K can be found at www.bostonomaha.com.
| For the Years Ended | ||||||||
| December 31, | ||||||||
2023 |
2022 |
|||||||
| Billboard Rentals, Net | $ |
42,940,369 |
|
$ |
39,244,726 |
|
||
| Broadband Services (1) |
|
35,340,502 |
|
|
28,627,271 |
|
||
| Premiums Earned |
|
13,932,659 |
|
|
10,649,089 |
|
||
| Insurance Commissions |
|
1,884,007 |
|
|
2,050,838 |
|
||
| Investment and Other Income |
|
2,156,199 |
|
|
662,270 |
|
||
| Total Revenues |
|
96,253,736 |
|
|
81,234,194 |
|
||
| Depreciation and Amortization Expense |
|
19,565,035 |
|
|
15,123,857 |
|
||
| Net Loss from Operations |
|
(8,852,403 |
) |
|
(5,229,895 |
) |
||
| Net Other (Loss) Income |
|
(294,060 |
) |
|
13,104,078 |
|
||
| Net (Loss) Income Attributable to Common Stockholders | $ |
(7,004,009 |
) |
$ |
10,233,400 |
|
||
| Basic and Diluted Net (Loss) Income per Share | $ |
(0.23 |
) |
$ |
0.34 |
|
||
| December 31, | December 31, | |||||||
2023 |
2022 |
|||||||
| Total Unrestricted Cash & Investments (2) | $ |
71,269,580 |
|
$ |
67,782,480 |
|
||
| Total Assets |
|
768,207,092 |
|
|
687,802,899 |
|
||
| Total Liabilities |
|
151,754,831 |
|
|
158,059,668 |
|
||
| Redeemable Noncontrolling Interest |
|
15,638,013 |
|
|
15,713,021 |
|
||
| Total Boston Omaha Stockholders' Equity |
|
538,207,426 |
|
|
506,621,142 |
|
||
| Noncontrolling Interests (3) |
|
62,606,822 |
|
|
7,409,068 |
|
||
| Total Equity | $ |
600,814,248 |
|
$ |
514,030,210 |
|
||
(1) |
Includes the InfoWest and Go Fiber acquisitions completed on April 1, 2022. |
(2) |
Investments consist of |
(3) |
Noncontrolling interests are related to third party capital raised within our build for rent fund as well as within our 24th Street commercial real estate funds. |
(4) |
Excludes Sky Harbour Class A common stock as we account for our investment under the equity method. |
During fiscal 2023, “Net Other (Loss) Income” included a loss of
During fiscal 2022, “Net Other (Loss) Income” included a gain of
As a reminder, generally accepted accounting principles (“GAAP”) require us to include the unrealized changes in market prices of investments in public securities in our reported earnings(4). While we intend to hold securities for the longer term, we may in the future choose to sell them for a variety of reasons resulting in realized losses or gains.
Cash inflow from operations for the year ended December 31, 2023 was
Our book value per share was
As of December 31, 2023, we had 30,255,739 shares of Class A common stock and 1,055,560 shares of Class B common stock issued and outstanding.
As of March 22, 2024, we had 30,299,408 shares of Class A common stock and 1,055,560 shares of Class B common stock issued and outstanding.
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.
Forward-Looking Statements
Any statements in this press release about the Company’s future expectations, plans and prospects, including statements about our financing strategy, future operations, future financial position and results, market growth, total revenue, as well as other statements containing the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” and similar expressions, constitute forward-looking statements within the meaning of the safe harbor provisions of The Private Securities Litigation Reform Any statements in this press release about the Company’s future expectations, plans and prospects, including statements about our financing strategy, future operations, future financial position and results, market growth, total revenue, as well as other statements containing the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” and similar expressions, constitute forward-looking statements within the meaning of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. The Company may not actually achieve the plans, intentions or expectations disclosed in the Company’s forward-looking statements, and you should not place undue reliance on the Company’s forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements the Company make as a result of a variety of risks and uncertainties, including risks related to the Company’s estimates regarding the potential market opportunity for the Company’s current and future products and services, the impact of the COVID-19 pandemic, the competitive nature of the industries in which we conduct our business, general business and economic conditions, our ability to acquire suitable businesses, our ability to successfully integrate acquired businesses, the effect of a loss of, or financial distress of, any reinsurance company which reinsures the Company’s insurance operations, the risks associated with our investments in both publicly traded securities and privately held businesses, our history of losses and ability to maintain profitability in the future, the Company’s expectations regarding the Company’s sales, expenses, gross margins and other results of operations, and the other risks and uncertainties described in the “Risk Factors” sections of the Company’s public filings with the Securities and Exchange Commission (the “SEC”) on Form 10-K for the year ended December 31, 2023, as well as other risks and uncertainties which may be described in any subsequent quarterly report on Form 10-Q filed by the Company and the other reports the Company files with the SEC. Copies of our SEC filings are available on our website at www.bostonomaha.com. In addition, the forward-looking statements included in this press release represent the Company’s views as of the date hereof. The Company anticipates that general economic conditions and subsequent events and developments may cause the Company’s views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date hereof.
Our investor relations website is https://investor.bostonomaha.com/ and we encourage investors to use it as a way of easily finding information about us. We promptly make available on this website, free of charge, the reports that we file or furnish with the SEC, corporate governance information, and select press releases, which may contain material information about us, and you may subscribe to be notified of new information posted to this site.
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Boston Omaha Corporation
Catherine Vaughan, 857-256-0079
contact@bostonomaha.com
Source: Boston Omaha Corporation
FAQ
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