Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38113 BOSTON OMAHA CORPORATION (Exact Name of Registrant as Specified in Its Charter) Delaware 27-0788438 (State o ...

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 $20 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 $22.82 million [5] - Revenue growth was observed in all business segments, with billboard rentals generating $10.70 million and broadband services $9.68 million in Q1 2024 [4][5] Financial Indicators - Positive operating cash flow of $2.42 million in Q1 2024, up 77% from $1.37 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 $17.10 compared to $17.19 at the end of December 2023 [6] Net Loss Analysis - Net loss attributable to common shareholders was $2.81 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 $5.34 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 $2.5 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]

Core Insights - Boston Omaha Corporation has been compared to an early-stage Berkshire Hathaway, but its performance has not matched the achievements of Warren Buffett's team after 10 years in business [2] Company Performance - The company has shown significant red flags in its business operations, raising concerns about its future prospects [1][2] - Recent developments have prompted discussions about whether the stock represents a good value or if the risks outweigh the potential benefits [2]

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it. Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. - ...

Image Source/DigitalVision via Getty Images Broadband services refers to "a rural broadband internet provider that serves over 8,000 customers in communities in southern Arizona with a high-speed fixed wireless internet service and is building an all fiber-to-the-home network in select Arizona markets". For 2023, it made up 36.7% of total sales and came in at $35 million. Investment Thesis Surety insurance refers to "an insurance subsidiary, GIG, designed to own and operate insurance businesses generally ha ...

Consolidated Statements of Cash Flows (Continued) Unaudited 10 For the Three Months Ended March 31, 2024 and 2023 On April 20, 2016, we completed an acquisition of a surety bond brokerage business. On December 7, 2016, we acquired a fidelity and surety bond insurance company. From 2017 through 2022, we completed four additional acquisitions of surety brokerage businesses. Table of Contents NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES We determine whether an entity is a VIE and, if so, whether it shoul ...

Half of the CEO tandem is stepping down.The "Boston" half of the CEO tandem that has run Boston Omaha (BOC -2.90%) for nearly a decade is stepping aside. Investors were taken by surprise, sending shares of Boston Omaha down as much as 9% at the open before recovering to be down 4% as of 11 a.m. ET.End of an eraBoston Omaha has always been a bit of an oddity. It is the holding company for four majority-owned businesses in the billboard, broadband, insurance, and asset management industries run by co-CEOs Ale ...

Stock and Equity - As of March 22, 2024, there were approximately 30,299,408 shares of Class A common stock outstanding[14] - The company sold all 4,801,099 shares of Dream Finders Homes Class A common stock for gross proceeds of approximately $81 million since its IPO[20] - From January through April 2023, the company raised gross proceeds of approximately $37.5 million by selling 1,532,065 shares of Class A common stock through its ATM Program[39] - The company has the potential to raise up to $500 million in equity securities through its 2022 Shelf Registration Statement[39] - As of December 31, 2023, Sky Harbour's Class A common stock closed at $9.66 per share, with the company holding 13,118,474 shares and warrants for 7,719,779 shares at an exercise price of $11.50 per share[48] - The company owns approximately 20% of Sky Harbour's common stock, which is recorded under the equity method, and any drop below this ownership percentage may lead to mark-to-market accounting, affecting reported earnings[49] - Total investment in Sky Harbour amounts to $107.8 million, with significant purchases including $55 million for Class B Preferred Units and $45 million for additional Class A common stock[53] Financial Performance and Capital Needs - The company may need significant additional capital in the future to continue planned acquisitions, which could lead to substantial dilution for existing shareholders[38] - The company has incurred losses from operations since inception and anticipates continuing to do so for the foreseeable future[103] - The net loss from operations for the fiscal years ended December 31, 2023 and 2022 was approximately $8.9 million and $5.2 million, respectively[210] - The company expects its current cash to be sufficient to fund existing operations for at least the next 12 months[203] - As of December 31, 2023, the company had approximately $22 million in unrestricted cash and $18 million in short-term treasury securities[203] - The company may need to rely on Link for funds necessary to meet financial obligations, which could be affected by Link's debt servicing requirements[68] Business Operations and Strategy - The company generated revenues primarily through billboard advertising, surety insurance, and broadband services[32] - The company plans to expand its broadband services in Arizona, Florida, Nevada, and Utah, and continue to grow its billboard advertising business through acquisitions[31] - The company has expanded the licensing of its surety insurance business to all 50 states and the District of Columbia[31] - The company has made significant investments, including $5,016,494 for 100% membership interests in 24th Street and $19 million in CB&T Holding Corporation, representing 15.6% of its outstanding common stock[97][99] - The company acquired substantially all business assets of multiple broadband providers, including FibAire and Utah Broadband, enhancing its service offerings in rural areas[95] - The company is exploring further acquisitions in sectors with potential for durable profitability, including broadband services and surety insurance[123] - The company has made six acquisitions in the surety insurance sector, paying a combined purchase price of approximately $21.7 million and contributing $16.3 million in statutory capital to UCS[124] Market Conditions and Competition - The billboard advertising market is characterized by high regulatory barriers and low maintenance costs, providing a favorable environment for growth[92] - The company operates in a competitive outdoor advertising market dominated by three major players, which account for over 50% of total industry revenues[160] - The broadband services aim to provide high-speed internet to underserved communities, facing potential competition from major cable operators and new technologies like 5G[161] - The surety market is estimated at $8.6 billion based on 2022 industry reports, indicating a significant opportunity for the company in this sector[153] Management and Operational Challenges - The executive management team has limited experience in day-to-day operations in certain industries, which may impact operational efficiency and overall business performance[55] - Increased operating expenses from business expansion may negatively impact operating income, particularly through acquisitions, geographic expansion, and capital expenditures[51] - The company’s acquisitions are subject to risks and uncertainties regarding the realization of anticipated benefits and cost savings[179] Future Outlook and Growth - The company anticipates continued growth in demand for broadband services, driven by the rising need for higher bandwidth and faster connections[132] - The company has a strategy focused on acquiring additional billboard assets when opportunities arise at attractive prices relative to other investments[108] - The company is focusing on expanding its rural broadband business, targeting underserved communities in Arizona, Nevada, and Utah, where demand for higher speed internet is increasing[184] - The company plans to wind down its asset management operations and focus on self-funding and bank debt for its fiber business due to high costs and risks associated with fund financing[111] Employee and Organizational Structure - As of March 1, 2024, the company employed 463 individuals, with 304 in broadband operations, 88 in billboard operations, and 56 in insurance services[187] - The company controls approximately 42% of the aggregate voting power through its major shareholders, which may influence corporate transactions and policies[120] Investment and Financing - The company has entered contracts with home builders to expand fiber-to-the-home services in large residential developments[184] - The Term Loan has a fixed interest rate of 4.00% per annum and is payable in full on December 6, 2028[200] - The company may prepay up to 10% of the loan principal in each of the first three years without penalty[200] - The company is open to leveraging attractive terms for future borrowings to acquire assets or for general corporate purposes[204]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the d ...

| --- | --- | --- | --- | --- | --- | --- | --- | |----------------------------------------------------------------------------------------|-------|----------------|---------------|-------|-------------|-------|--------------| | | 2023 | June 30, \n | \n2022 | | June \n2023 | 30, | 2022 | | | | | | | | | | | Revenues: | | | | | | | | | Billboard rentals, net | $ | 10,835,524 $ | 9,825,164 | $ | 21,137,747 | $ | 18,963,313 | | Broadband services | | 8,695,235 | 8,078,580 | | 17,235,141 | | 12,155,526 | | Pre ...