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Boston Omaha: Big Opportunity As Shares Are Still Cheap
BOCBoston Omaha(BOC) Seeking Alpha·2024-07-31 16:36

Core Viewpoint - Boston Omaha Corporation presents a strong buying opportunity due to revenue growth across all business segments, significant insider buying, a new CEO focused on segment improvement, and a 20millionsharebuybackprogram[1][17][18]BusinessOverview−BostonOmahaoperatesinfoursegments:outdooradvertising,broadbandservices,insuranceoperations,andassetmanagement[2][3]RevenuePerformance−TotalrevenueforQ12024was20 million share buyback program [1][17][18] Business Overview - Boston Omaha operates in four segments: outdoor advertising, broadband services, insurance operations, and asset management [2][3] Revenue Performance - Total revenue for Q1 2024 was 25.55 million, a 12% year-over-year increase from 22.82million[5]−Revenuegrowthwasobservedinallbusinesssegments,withbillboardrentalsgenerating22.82 million [5] - Revenue growth was observed in all business segments, with billboard rentals generating 10.70 million and broadband services 9.68millioninQ12024[4][5]FinancialIndicators−Positiveoperatingcashflowof9.68 million in Q1 2024 [4][5] Financial Indicators - Positive operating cash flow of 2.42 million in Q1 2024, up 77% from 1.37millioninQ12023[6]−Totalassetsdecreasedslightlyto1.37 million in Q1 2023 [6] - Total assets decreased slightly to 757.34 million, a 1.4% decline from Q4 2023 [6] - Book value per share remained stable at 17.10comparedto17.10 compared to 17.19 at the end of December 2023 [6] Net Loss Analysis - Net loss attributable to common shareholders was 2.81millioninQ12024,animprovementfroma2.81 million in Q1 2024, an improvement from a 3.32 million loss in Q1 2023 [7] - Increased depreciation and amortization costs by 18% year-over-year, totaling 5.34million[7]−Employeeexpensesreached5.34 million [7] - Employee expenses reached 8.63 million, accounting for 33.8% of total revenues [7] Strategic Initiatives - Focus on expanding broadband services in Arizona, Nevada, Utah, and entering Florida [10] - Plans to enhance the insurance segment by servicing small contractors and businesses [10] - Exploration of digital display technologies in the outdoor advertising segment to improve margins [10] Insider Activity and Share Buyback - Insider buying activity totaled approximately 2.5millionbetweenMayandJune2023[14]−A2.5 million between May and June 2023 [14] - A 20 million share buyback program is set to commence around August 15, 2024, and run through September 30, 2025 [14][18] Conclusion - Boston Omaha is viewed as a compelling buying opportunity due to its diversified operations, revenue growth, and strategic initiatives under new leadership [17][18]