Boston Omaha(US:BOC)2025-11-13 21:09Business Operations - As of September 30, 2025, the company operates approximately 3,950 billboards with about 7,570 advertising faces, having increased its billboard count from approximately 2,900 since 2015[188] - The broadband services segment has approximately 48,900 customers, including 18,700 fiber subscribers, and 44,500 fiber passings completed as of September 30, 2025[190] - The company has expanded its surety insurance business to all 50 states and the District of Columbia, enhancing its market reach significantly[189] - The company plans to continue expanding its broadband services in Arizona, Florida, Nevada, Utah, and other locations, focusing on fiber-to-the-home infrastructure[190] - The company aims to grow its outdoor billboard advertising business through acquisitions of existing billboard assets at attractive prices[188] Financial Performance - In the third quarter of fiscal 2025, total revenues increased by 3.7% to $28,734,355 compared to $27,700,936 in the third quarter of fiscal 2024[203] - Billboard rentals generated $11,788,400, accounting for 41.1% of total revenues, while broadband services contributed $10,150,921, representing 35.3% of total revenues[203] - Premiums earned from the insurance subsidiary increased by 3.9% to $5,636,732, maintaining a consistent 19.6% of total revenues[203] - The company reported a net loss attributable to common stockholders of $5,577,273 in the first nine months of fiscal 2025, translating to a loss per share of $0.18, compared to a net loss of $6,638,436 or $0.21 per share in the same period of fiscal 2024[220] - Total revenues for the first nine months of fiscal 2025 were $84,668,519, representing a 5.4% increase from $80,341,450 in the first nine months of fiscal 2024[213] Costs and Expenses - Employee costs were $8,434,406, or 29.3% of total revenues, slightly down from 30.0% in the previous year[205][206] - Total costs and expenses decreased to $87,338,564 in the first nine months of fiscal 2025 from $87,536,368 in the same period of fiscal 2024, with the percentage of total revenues dropping from 109.0% to 103.2%[214] - Professional fees increased to $1,318,570, or 4.6% of total revenues, in Q3 fiscal 2025, up from $1,052,542, or 3.8% of total revenues, in Q3 fiscal 2024[212] - Employee costs decreased to $25,898,396, or 30.6% of total revenues, in the first nine months of fiscal 2025, down from $28,764,730, or 35.8% of total revenues, in the same period of fiscal 2024[214] Investments and Acquisitions - The acquisition of 24th Street Asset Management LLC was completed for a total consideration of $5,016,494, which included $2,759,072 in cash at closing and additional cash subject to holdback[192] - The company has invested approximately $19 million in CB&T Holding Corporation, representing 15.6% of its outstanding common stock[194] - The company invested approximately $3 million in MyBundle.TV Inc. in July 2023, focusing on the broadband industry[198] - The company plans to continue acquiring billboard locations, insurance businesses, and broadband service providers to generate positive cash flows[246] Cash Flow and Financing - Net cash provided by operating activities was $12,050,193 for the first nine months of fiscal 2025, slightly down from $12,117,191 in the same period of fiscal 2024[242] - Net cash used in investing activities was $2,277,900 for the first nine months of fiscal 2025, a significant decrease from $29,893,384 in the same period of fiscal 2024[243] - Net cash provided by financing activities was $5,259,282 during the first nine months of fiscal 2025, compared to net cash used of $48,879,743 in the same period of fiscal 2024[244] - The company has raised funds through various means, including public offerings and term loan financing, to support its operations and growth initiatives[249] Debt and Financial Covenants - As of September 30, 2025, Link's long-term debt includes approximately $25,900,000 in Term Loan borrowings, with $880,000 classified as current[256] - Link is required to maintain a consolidated leverage ratio of not greater than 3.50 to 1.00 starting from the fiscal quarter ended June 30, 2024, reducing to 3.00 to 1.00 by December 31, 2027[257] - Future acquisitions may require additional capital through long-term debt borrowings or the sale of securities if current cash and securities are insufficient[269] - The company is subject to financial covenants that limit its ability to incur additional indebtedness and make acquisitions[269] Market and Operational Risks - The company may need to take steps to avoid being deemed an investment company under the Investment Company Act, which could impact its operations and financial condition[271] - The company's operations are conducted entirely within the U.S., resulting in no significant exposure to foreign currency exchange rate risk[277] - The preparation of financial statements requires estimates affecting reported amounts of assets, liabilities, revenue, and expenses, based on historical results and reasonable assumptions[279] - There have been no material changes to the critical accounting policies and estimates as previously disclosed in the 2024 Form 10-K[279] Shareholder Actions - The company repurchased 111,323 shares of its Class A common stock for a total cost of approximately $1.6 million under the Share Repurchase Program[247]