Boston Omaha released first quarter 2023 financials last week. Here are the segment results for the company’s Link Media Outdoor subsidiary.
- Revenues increased 13% to $10.3 million in the first quarter of 2023 due to organic revenue growth and the purchase of billboards from Elevation Outdoor in November 2023.
- Sales commissions increased slightly from 8% of revenue ion the first quarter of 2022 to 8.3% of revenue in the first quarter of 2023.
- Leases costs declined from 21.5% of revenue in the first quarter of 2022 to 19.5% of revenue in the first quarter of 2023. Billboard Insider considers anything under 20% as good for a roadside billboard plant.
- Employee costs as a % of revenue declined from 19.1% in the first quarter of 2022 to 17.9% of revenue in the firs
- G&A expense increased slightly from 8.8% of revenue in the first quarter of 2022 to 9% of revenue in the first quarter of 2023.
- Cashflow (EBIDTA) increased by 18% to $3.5 million during the first quarter of 2023. The Cashflow margin was 34%.
- Capital expenditures were $0.6 million in the first quarter of 2023 becauseLink Media did not close any material acquisitions. The company’s last acquisition was a $14 million purchase of Elevation Outdoor in November 2022.
- Link Media Outdoor has $30 million borrowed on a term loan with First National Bank of Omaha with a 15 year amortization rate.
Billboard Insider’s take: Link Media keeps growing and benefiting from scale economies. Link’s parent Boston Omaha has approximately $100 million in cash and marketable securities to put into growth or acquisitions in an addition on an unused $500 million shelf registration.
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