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Boston Omaha(BOC) - 2021 Q1 - Quarterly Report
BOCBoston Omaha(BOC)2021-05-23 16:00

Business Operations - As of March 31, 2021, the company operates approximately 3,200 billboards with around 6,000 advertising faces, having increased its billboard count through acquisitions since 2015[173] - The broadband services business serves over 17,000 customers across Arizona and Utah, with continued expansion planned in these regions[175] - The company plans to continue acquiring billboard assets and expanding broadband services, as well as making additional investments in real estate management services[182] - Billboard revenues in the first quarter of fiscal 2021 were down only 0.9% from the same period in 2020, indicating a return to normal levels[187] - Billboard rentals decreased by 0.9% to 7,153,685inQ12021,accountingfor54.27,153,685 in Q1 2021, accounting for 54.2% of total revenues, while broadband services revenue surged to 3,795,037, up from 267,251inQ12020[202][203]FinancialPerformance−TotalrevenuesforQ12021were267,251 in Q1 2020[202][203] Financial Performance - Total revenues for Q1 2021 were 13,205,019, representing a 15.7% increase from 11,410,180inQ12020,largelydrivenbytheacquisitionofFibAire[201]−ThenetlossfromoperationsforQ12021was11,410,180 in Q1 2020, largely driven by the acquisition of FibAire[201] - The net loss from operations for Q1 2021 was 1,485,778, or 11.3% of total revenues, compared to a net loss of 1,179,972,or10.31,179,972, or 10.3% of total revenues in Q1 2020[214] - In Q1 fiscal 2021, the company reported net income attributable to common stockholders of 84,437,627, or 3.09pershare,comparedtoanetlossof3.09 per share, compared to a net loss of 24,734,238, or a loss of 1.05pershareinQ1fiscal2020[216]−Thecompanygeneratedpositivecashflowfromoperatingactivitiesofapproximately1.05 per share in Q1 fiscal 2020[216] - The company generated positive cash flow from operating activities of approximately 4.0 million in Q1 2021, compared to negative cash flow of approximately 0.1millioninQ12020[191]−Netincomeattributabletocommonstockholderswas0.1 million in Q1 2020[191] - Net income attributable to common stockholders was 637,060, or 16.8% of revenues, up from 58,869,or22.058,869, or 22.0% in the prior year[233] Insurance Segment - Surety insurance revenues decreased by 48.3%, approximately 1.7 million, in the first quarter of fiscal 2021 compared to the same period in fiscal 2020 due to the cessation of rental insurance bonds[188] - Premiums earned from the UCS insurance subsidiary fell by 48.3% to 1,786,564inQ12021,primarilyduetothesuspensionofnewbondsundertherentalguaranteebondprogram[203]−Thecompany’sinsurancesegmentreportedalossfromoperationsof1,786,564 in Q1 2021, primarily due to the suspension of new bonds under the rental guarantee bond program[203] - The company’s insurance segment reported a loss from operations of 787,487 in Q1 fiscal 2021, significantly impacted by increased losses and loss adjustment expenses[229] - Total operating revenues for the insurance segment declined by 42.5% in Q1 fiscal 2021 compared to Q1 fiscal 2020, attributed to the same suspension of the rental guarantee bond program[226] Investments and Acquisitions - The company invested 10millioninDreamFindersHomes,whichsuccessfullycompleteditsinitialpublicofferinginJanuary2021[177]−Thecompanyholdsapproximately2010 million in Dream Finders Homes, which successfully completed its initial public offering in January 2021[177] - The company holds approximately 20% of the issued and outstanding common stock of Yellowstone, a SPAC focused on acquiring businesses in various industries[180] - The company acquired 238 billboard structures and related assets for 6,108,508 during the first three months of fiscal 2021[237] - The company plans to continue acquiring billboard locations and insurance businesses, financing future acquisitions with cash, debt, and third-party financing[241] - The company may need to seek additional capital through long-term debt borrowings or the sale of securities if significant acquisition opportunities arise beyond current cash and U.S. Treasury securities[255] Cash and Liquidity - As of March 31, 2021, the company had approximately 84millioninunrestrictedcashand84 million in unrestricted cash and 54 million in U.S. Treasury trading securities[241] - The company raised 58.6millioningrossproceedsfromapublicofferingofClassAcommonstockinApril2021,ensuringadequatefinancialresourcesforfutureexpansionandacquisitionopportunities[192]−Netcashprovidedbyoperatingactivitieswas58.6 million in gross proceeds from a public offering of Class A common stock in April 2021, ensuring adequate financial resources for future expansion and acquisition opportunities[192] - Net cash provided by operating activities was 4,029,984 for the first three months of fiscal 2021, compared to a net cash outflow of 110,884inthesameperiodoffiscal2020[236]−Netcashprovidedbyinvestingactivitieswas110,884 in the same period of fiscal 2020[236] - Net cash provided by investing activities was 36,047,823, consistent with the previous year's figure of 36,047,823[237]CostManagement−Totalcostsandexpensesincreasedto36,047,823[237] Cost Management - Total costs and expenses increased to 14,690,797 in Q1 2021, up from 12,590,152inQ12020,withtotalcostsasapercentageoftotalrevenuesrisingfrom110.312,590,152 in Q1 2020, with total costs as a percentage of total revenues rising from 110.3% to 111.3%[206] - Employee costs rose by 1,109,002 to 4,242,147inQ12021,drivenbytheadditionofthebroadbandservicesbusiness[209]−Employeecostsinthebillboardsegmentdecreasedby2.64,242,147 in Q1 2021, driven by the addition of the broadband services business[209] - Employee costs in the billboard segment decreased by 2.6% in Q1 fiscal 2021 compared to Q1 fiscal 2020[222] - Total cost of revenues decreased to 756,213, representing 19.9% of operating revenues, compared to 28.2% in the first three months of fiscal 2020[233] Market Conditions and Risks - The company has taken steps to avoid being deemed an investment company under the Investment Company Act, including selling marketable securities and acquiring non-investment assets[257] - The company is in compliance with financial covenants under its Credit Agreement, including a consolidated leverage ratio of not greater than 3.50 to 1.00[245] - The company’s credit facility imposes restrictions that could limit its ability to incur additional indebtedness or make acquisitions[256] - As of March 31, 2021, the company held no significant derivative instruments that materially increased exposure to market risks[263]