Boston Omaha (BOC) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 11.9% year-over-year to $27.1M, driven by growth in billboard, broadband, and insurance segments, with insurance premiums up 37% year-over-year.

• Net loss attributable to common stockholders was $2.2M for Q2 2024, compared to net income of $1.5M in Q2 2023, mainly due to $4.1M in one-time executive separation and stock repurchase costs.

• All major business lines—billboards, broadband, and insurance—reported revenue growth, with significant expansion in fiber passings and subscribers.

• Asset management segment is being wound down, with $10.8M distributed and cost-cutting measures underway.

• Equity method income of $3M from Sky Harbour, offset by a $4M unrealized loss on warrants and a $2M non-cash gain on share transfer.

Financial highlights

• Q2 2024 revenue: $27.1M (+11.9% YoY); net loss: $2.2M (EPS: -$0.07); six-month revenue: $52.6M; six-month net loss: $5.0M.

• Link Media Outdoor Q2 revenue: $11.4M (+5.6% YoY), net income: $2.1M (+53.2% YoY), Adjusted EBITDA: $4.6M (+18% YoY), gross margin: 66.1%.

• Boston Omaha Broadband Q2 revenue: $9.4M (+10.1% YoY), Adjusted EBITDA: $2.8M (+49.5% YoY), capital expenditures: $5.7M.

• General Indemnity Group Q2 gross written premium: $8.0M (+76.2% YoY), revenue: $5.8M (+28.2% YoY), net income: $0.7M (+95.7% YoY), loss ratio: 14.2%.

• Unrestricted cash and investments totaled $40.6M at June 30, 2024; unrestricted cash and U.S. treasury securities: $25.6M.

Outlook and guidance

• Board authorized a $20M share repurchase program effective August 2024 through September 2025.

• Management expects burn rate in Fiber Fast Homes to decrease as subscriber base grows and cost integration continues.

• Focus remains on expanding billboard, broadband, and insurance businesses, with continued evaluation of acquisition opportunities and cost efficiencies.