• Link Media Grows Via Acquisitions

    Boston Omaha, the parent company of Link Media reported financials for the 3 months ended September 2018.  Here’s a summary of financial performance for Link Media Outdoor for the 3 months ended 2018. 000’s

    • Link Media spent $136 million on acquisitions during the third quarter of 2018, including Waitt Outdoor ($82 million), Key Outdoor ($38 million) and Tammy Lynn Outdoor ($17 million).  Expect to see more.  Page 37 of the company’s September 2018 10Q says this: “One of our principal business objectives is to continue to acquire additional billboard assets through acquisitions of existing billboard businesses in the United States.”
    • Revenues increased by 158% to $3.8 million in the third quarter of 2018 due to the acquisitions, a decrease in vacancy and an increase in yields.
    • Cashflow (EBITDA) increased from $96,000 during the third quarter of 2017 to $792,000 during the third quarter of 2018 due to increased revenue from acquisitions.
    • Ground lease expense declined from 32% of revenue during the 3rd quarter of 2017 to 20% of revenue during the 3rd quarter of 2018 due to increased revenues and the fact that the company’s billboard purchases included a large number of easements.  Insider considers 20% lease expense/revenues normal for the out of home industry.
    • Link Media’s cashflow margin was a respectable 21% for the quarter when you take into account that the company spent $303,000 on professional fees to support acquisitions.  In the absence of these fees the cashflow margin would have been 29%.
    • Boston Omaha (Link’s parent) is in strong financial condition with $117 million in cash and marketable securities, no debt and a shelf registration which will allow it to tap public debt and equity markets to support acquisitions.

    Insider’s take:  No debt.  $117 million of cash in the bank.  A shelf registration poised to issue more equity in support of acquisitions.  Expect more announcements before the end of the year.

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