Boston Omaha: Big Opportunity As Shares Are Still Cheap

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]