Billboard Insider enjoys reading Boston Omaha’s annual letter.  It is refreshingly clear of the usual corporate non-speak jargon.  Here are 3 things we learned from the Boston Omaha 2021 Annual Letter.

Billboards, bonds and broadband.

Boston Omaha assets are concentrated in billboards, bonds (e.g. insurance) and broadband as you can see from the following chart.  The three sectors have a large up front capital costs but healthy cashflow margins.  Billboards (e.g. the company’s Link Media Outdoor subsidiary) accounts for 40% of the company’s net assets as you can see from the following chart.

Lots of cash.

Boston Omaha had $145 million of cash at December 2021 available for tuck-in acquisitions.  You can expect Link Media to use some of it for tuck-in acquisitions over the next year.

A focus on lease costs.

The shareholder letter says this about Link Media (italics ours): “2021 was another year of growth at Link.  Organic revenue grew 6.4%, our total number of advertising faces increased to over 7,400 and Scott LaFoy and his team continued to execute on tuck-in acquisitions, converting static faces to digital, and lowering costs.  The team is heavily incentivized to reduce one of our biggest costs, land expense, while growing revenue.”  This table from the letter shows lease costs have decreased from 25% of revenue in 2017 to 20.5% of revenue in 2021.

Link Media Outdoor financial performance 2015-2021

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