First Annual Shareholders Meeting

Omaha Nebraska

September 30, 2016


Boston Omaha is looking to acquire great businesses with a holding period of forever.



“I very frequently get the question: ‘What’s going to change in the next 10 years?’ And that is a very interesting question; it’s a very common one. I almost never get the question: ‘What’s not going to change in the next 10 years?’ And I submit to you that that second question is actually the more important of the two — because you can build a business strategy around the things that are stable in time.”

-Jeff Bezos

Wholly owned operating subs

Operating Subs


568 Static faces

(13 managed statics)

27 Digital Faces

(2 managed digitals)

boards map

Out of Home History / Technological Evolution

  • 1450– Gutenberg invented movable type printing and the handbill was launched as a form of advertising

  • 1796 – Lithographic process was perfected, giving rise to the illustrated poster

  • 1870 – Estimated that nearly 30% of media spend was on outdoor advertising

  • 1900 – Standardized billboard structure established in America, leading to national campaigns

  • 1934 – Traffic Audit Bureau established to provide third party data about outdoor advertising audiences

  • 1965 – Highway Beautification Act was signed by President Johnson

  • 1970’s – Group of billboard companies commissioned studies at MIT for painting of bulletins by computer, which ultimately led to computerized painting on vinyl substrates. (Process perfected in the late 1980’s.)

  • 2005 – First digital billboards installed

Sources:, Soap, Sex, and Cigarettes: A Cultural History of American Advertising by Juliann Sivulka,The invention of lithography, by Alois Senefelder, Taylor and Weih Chang, 1995, The History of Outdoor Advertising Regulations in the United States,Journal of MacroMarketing


Mkt share

ad spend w/o digital

Sources: OAAA, MagnaGlobal, Bureau of Labor Statistics, National Bureau of Economic Research

ad spend w digital

Sources: OAAA, MagnaGlobal, Bureau of Labor Statistics, National Bureau of Economic Research

What they are made of:

Modern billboard structures are constructed of steel while older structures are made of wood or angle iron frames.

  • Wood structures have a 20-25 year useful life

  • Modern monopole steel structures have a 40-50 year useful life.

What is on them:

  • Static typically have a vinyl wrapped face, wood painted, or tri-vision faces typically with one advertisement (tri-vision capable of three)

    • Installation requires a boom truck and/or multiple experienced people to change signs
  • Digital LED faces display 1 to 8 advertisements per minute and are more flexible on sales duration with the ability to change the ad from a remote location with a current lifespan for digital faces of 10 to 15 years, although competitive life may be shorter

    • Advertisements can be changed from a computer and/or tablet in less than 30 seconds

Barriers to entry:

  • Regulation by state department of transportation, municipal sign ordinance, city, and Highway Beautification Act of 1965
  • Permits are arranged with the state department of transportation and the municipality they reside and must be renewed yearly
  • Significant number of non-permitted, “grandfathered boards,” that could not be erected today or replaced if damaged


  • Leased: Sites are predominantly leased from unrelated third party who owns the land or the structure which the billboard is attached

    • Leases are highly variable in duration and terms
  • Owned:

    • Sites owned outright or through a perpetual easement with land area large enough for the structure, foundation, and maintenance work


  • Sales contract with advertiser ranging from one day to multi-year
  • Sales contracts can be for one face or for a package of faces in the area

Other expenses

  • Power, lighting, insurance, internet for digital faces, general upkeep/maintenance for clear line of sight to structure

Billboard economics slide

Acquisition Criteria

(1) Annual Plant Revenues of $1-8mm (smaller if in market)

(2) Long-term land leases, meaningful land ownership preferred

(3) Favorable local regulatory environment

(4) Prefer a team desiring to stay with the plant

(5) Interested in local/regional plants with large market shares or highly fragmented urban markets with potential for consolidation


Distribution & Underwriting

  • Low average premium per policy<-
  • High policy count<-
  • Low exposure to loss/low loss limit<-
  • Short ‘tailed’ business<-


Massachusetts Realtor Bond- $5,000 for $50 premium,

Damage Waiver policy for 3 day vacation rental for $35

Our target business is characterized by:

Expected loss ratios between 5% and 35%

Renewing/recurring policy classes

Combined ratios (loss plus expense ratio) of 70% or less

Surety historical


Countrywide License Bond Loss Ratio (category of Realtor License Bonds) <10%, yielding combined ratios ~ 60%.

Bond is required for realtor to maintain license, so lapse is rare, renewal rate very high.

Warnock logo

Warnock Agency offers 6,500 commercial surety, contract surety and fidelity bonds currently.

OK turtle bond

WV pisto toting bond

UC&S logo

United Casualty and Surety Insurance Company

(close pending regulatory approval)

  • Specializes in providing surety bonds
  • Primarily provides bid, performance and payment bonds for small and medium sized contracting and service firms
  • Provides miscellaneous surety bonds such as license and permit bonds, lost instrument bonds and other miscellaneous bonds necessary for surety bond principals to satisfy various statutory and contractual requirements

Current states image

  • Authorized for the lines of Surety and Fidelity in
    • Massachusetts,
    • Rhode Island,
    • New Hampshire,
    • Maine,
    • New York,
    • New Jersey,
    • Connecticut,
    • Pennsylvania and
    • Florida.

Current % image

  • 95% of premium written in Massachusetts


  • The company has a reinsurance treaty with Transatlantic Reinsurance Company (TRC) and TRC will continue as reinsurer for the company post transaction.


  • The company is rated A- (Excellent) by AM Best Company


  • Holds a Certificate of Authority from the United States Department of the Treasury (Circular 570) allowing it to act as Surety on Federal projects.
  • The company’s surety bond underwriting expertise and discipline is reflected in its pure loss ratio over its 27 year history of approximately 1%.

Insurance economics slide

Acquisition Criteria

(1) Retail Agencies (distribution) specializing in high policy count/low average premium, writing anywhere from $2 to $50 million in premium annually of commercial business, or

(2) Insurers (risk bearing) specializing in high policy count/low average premium with high percentage of “minimum” premium business.  Insurance rate per exposure well above expected loss cost. Prefer commercial lines with insurer surplus of $100 million or less, or

(3) Managing General Agencies (underwriting/distribution) with established profitable niche books of business, from $2 to $50 million in premium annually.

Minority ownership stake in real estate services company


Logic is a full service commercial real estate company

  • Currently 35 team members with 12 employees and 23 independent contractors
  • Brokerage
  • Property Management - Manages a total of 1,417,717 SF with 325 individual tenants
  • Capital Markets
  • Development Services

example flyer

listings map

Other investments


Leyden map

Leyden house

Since present management took over


Thank you for joining us for the

First Annual

Boston Omaha Corporation

Meeting of Shareholders

See you next year in Boston


Balance sheet

Income statement

Cash flows