• Link Media Revenue up with Acquisitions

    Link Media President and CEO Jim McLaughlin

    Boston Omaha reported second quarter 2019 earnings.  Here are the results from the company’s Link Media Holdings out of home subsidiary.  Link Media CEO Jim McLaughlin tells Insider:

    Link is performing well on all inventory, but especially the Link legacy inventory (pre Tammy Lynn, Key and Waitt), where revenue increases are well above industry averages, due to our focus on the basics; rate and long term occupancy.”  

    Here are the details.

    • Revenues increased from $1.6 million during the 3 months ended June 30, 2018 to $7.1 million for the 3 months ended June 30, 2019 due to acquisitions which occurred in the latter half of last year.
    • Lease costs were $1.5 million or 21% of revenue for the 3 months ended June 30, 2019.  This is consistent with industry averages.  Lease costs have been falling as Link boosts occupancy and purchases land and easements.  Was 28% a year ago.
    • Sales commissions were$648,000 of 9% of revenue for the 3 months ended June 30, 2019.
    • Cashflow (EBIDTA) increased from a a negative $20,000 during the three months ended June 2018 to $2.1 million during the three months ended June 2019 due to increased revenues.
    • The cashflow margin (EBIDTA/revenues) was 29% for the three months ended June 2019.  The company’s billboard cashflow margin (adding back employee costs) was 75%.
    • Link had 2,900 billboard structures and 5,400 faces at June 30, 2019.  Assuming you break out digitals at 8 per, the face count is in the 5,900 area. Average monthly revenue per face was $441, reflecting the rural nature of Link’s markets, however, when taking occupancy into account the average is estimated at over $600 per face.
    • The 10-Q says Link plans more acquisitions: “In outdoor advertising, our plan is to continue to grow this business through acquisitions of billboard assets.”   Link’s parent Boston Omaha has $113 million in cash and marketable securities at June 30, 2019.  Boston Omaha also has access to the public equity markets to do larger transactions.

    Here’s the data.  $$$ in thousands except for monthly revenue per face.


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