BOSTON OMAHA Corp (NYSE: BOC)

Boston Omaha Corporation is a diversified holding company that operates four distinct lines of business: outdoor billboard advertising, broadband services, surety insurance and related brokerage activities, and an asset management business. The company was incorporated in 2009 and reincorporated as a Delaware corporation in 2015, with its headquarters located in Omaha Nebraska. Through a series of acquisitions and organic growth it has built a platform that generates cash flow from tangible assets and fee based services. Boston Omaha Corporation seeks to invest in businesses that demonstrate durable earnings power and attractive returns on capital while maintaining a disciplined approach to capital allocation. The firm also holds minority interests in a range of complementary industries including commercial real estate, automotive lending and aviation infrastructure.

Revenue is derived from leasing advertising space on its billboard portfolio, providing broadband internet subscriptions to residential and commercial customers, collecting underwriting profits and fees from its surety insurance operations, and earning management fees and carried interest from its asset management activities. Billboard revenue comes from short to medium term contracts with local and national advertisers who pay for the display of their messages on static or digital faces. Broadband revenue is generated through monthly service fees charged to households and businesses that receive high speed fiber or fixed wireless connections. Surety insurance revenue consists of premiums collected on bonds issued to contractors and other obligors, supplemented by brokerage commissions earned through its BOSS Bonds platform. Asset management revenue includes fees earned on third party capital invested alongside the company’s own capital in real estate and other investment vehicles, as well as income from the performance of funds under management.

The company operates through the following segments: Outdoor Billboard Advertising, Broadband Services, Surety Insurance, and Asset Management.

• Outdoor Billboard Advertising leases advertising space on approximately 3,900 billboard structures with about 7,500 faces generating revenue from short to medium term contracts with local and national advertisers.

• Broadband Services provides high speed internet access to roughly 49,500 subscribers across Arizona, Nevada, Utah and other markets earning revenue from monthly subscription fees for fiber and fixed wireless connections.

• Surety Insurance issues bonds through its licensed carrier United Casualty and Surety Insurance Company and distributes them via its BOSS Bonds brokerage network collecting premiums and commissions from contractors and other obligees.

• Asset Management raises third party capital and invests alongside the company in real estate and other opportunities earning management fees and performance based income from the funds it oversees.

In the outdoor billboard sector Boston Omaha Corporation holds a niche position as a regional aggregator of structures primarily in the Midwest and Southeast United States, competing against a few large national players such as Clear Channel Outdoor Outfront Media and Lamar Advertising Company while benefiting from fragmented market dynamics that allow it to acquire smaller operators at attractive valuations. Its broadband business focuses on underserved rural and suburban communities where it faces competition from larger cable and wireless providers but enjoys first mover advantages in areas lacking fiber infrastructure. The surety insurance operation operates in a highly regulated yet fragmented field where it differentiates through its specialized focus on commercial surety bonds and its ability to offer quick digital quoting via the BOSS Bonds platform. The asset management segment competes with traditional private equity and real estate funds by offering a flexible structure that aligns its own capital with outside investors targeting risk adjusted returns in collateralized loans and property investments.

The company serves a diverse set of customers across its segments. Billboard advertisers include local businesses regional agencies and national brands seeking to reach motorists along highways and major arterials. Broadband customers consist of households and small to medium sized businesses that rely on the service for work education telehealth and entertainment. Surety insurance clients are contractors developers and other entities that require bonds to satisfy licensing permitting or contractual obligations. Asset management investors are institutional and accredited individuals looking for exposure to real estate debt and equity strategies alongside the company’s own capital.