Boston Omaha Corp. :BOMN-US: Earnings Analysis: Q2, 2017 By the Numbers : August 17, 2017

Boston Omaha Corp. reports financial results for the quarter ended June 30, 2017.

We analyze the earnings along side the following peers of Boston Omaha Corp. – JC Decaux SA Unsponsored ADR, Quotient Technology Incorporated and Inuvo, Inc. (JCDXY-US, QUOT-US and INUV-US) that have also reported for this period.


  • Summary numbers: Revenues of USD 1.99 million, Net Earnings of USD -1.37 million.
  • Gross margins narrowed from 26.01% to -13.93% compared to the same period last year, operating (EBITDA) margins now -24.19% from -22.63%.
  • Year-on-year change in operating cash flow of 3.13% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
  • Earnings declined although operating margins improved from -66.10% to -57.07%.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:

2017-06-30 2017-03-31 2016-12-31 2016-09-30 2016-06-30
Relevant Numbers (Quarterly)
Revenues (mil) 1.99 1.87 1.29 1.04 0.99
Revenue Growth (%YOY) 100.64 264.12 255.3 198.5 0
Earnings (mil) -1.37 -1.11 -0.9 -0.79 -0.64
Earnings Growth (%YOY) -113.83 -32.19 -156.88 -76.13 -256.27
Net Margin (%) -68.57 -59.37 -69.78 -75.93 -64.33
EPS -0.18 -0.16 -0.13 -0.11 -0.11
Return on Equity (%) -1.32 -1.8 -1.44 -1.25 -1.14
Return on Assets (%) -5.08 -6.83 -5.58 -4.95 -4.55

Access our Ratings and Scores for Boston Omaha Corp.

Market Share Versus Profits

Revenues History
Earnings History

BOMN-US‘s change in revenue this period compared to the same period last year of 100.64% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that BOMN-US is holding onto its market share. Also, for comparison purposes, revenues changed by 6.68% and earnings by -23.20% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Leader, Earnings Focus, Laggard, Revenues Focus

Earnings Growth Analysis

The company’s year-on-year decline in earnings was influenced by a weakening in gross margins from 26.01% to -13.93%, as well as issues with cost controls. As a result, operating margins (EBITDA margins) went from -22.63% to -24.19% in this time frame. For comparison, gross margins were -12.58% and EBITDA margins were -26.91% in the previous period.

Gross Margin Versus EBITDA Margin

Quadrant label definitions. Hover to know more

Differentiated; Low Cost, Commodity; Low Cost, Commodity; High Cost, Differentiated; High Cost

Gross Margin Trend

Companies sometimes sacrifice improvements in revenues and margins in order to extend friendlier terms to customers and vendors. Capital Cube probes for such activity by comparing the changes in gross margins with any changes in working capital. If the gross margins improved without a worsening of working capital, it is possible that the company’s performance is a result of truly delivering in the marketplace and not simply an accounting prop-up using the balance sheet.

Gross Margin History
Working Capital Days History

BOMN-US‘s decline in gross margins were offset by some improvements on the balance sheet. The management of working capital, for example, shows progress. The company’s working capital days have fallen to 2,870.75 days from 3,410.07 days for the same period last year. This leads Capital Cube to conclude that the gross margin decline is not altogether bad.

Gross Margin Versus Working Capital Days

Quadrant label definitions. Hover to know more

Customer Financed, Cash Starved, Supplier Financed, Cash Rich

Cash Versus Earnings – Sustainable Performance?

It is important to examine a company�s cash versus earnings numbers to gauge whether its performance is sustainable.

BOMN-US‘s change in operating cash flow of 3.13% compared to the same period last year is about the same as its change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that, all else being equal, the earnings number is sustainable.

Operating Cash Flow Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Cash Flow based Earnings, Likely Non-cash Earnings, Low Cash Flow Base, Likely Undeclared Earnings


Despite an overall improvement in operating (EBIT) margins, the company’s earnings fell. EBIT margins went from -66.10% to -57.07%. The decline in earnings appears to be largely because of one-time items. Pretax margins declined from -64.33% to -68.57%.

EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables
EBIT Margin History
PreTax Margin History

Access our Ratings and Scores for Boston Omaha Corp.

Company Profile

Boston Omaha Corp. provides real estate and business consulting services. It engages in the acquisition and development of real estate properties and assets. The firm’s properties and assets to be acquired will most likely include commercial, retail, residential and mixed-use properties located in Texas. Boston Omaha was founded on August 10, 2009 and is headquartered in Houston, TX.

CapitalCube does not own any shares in the stocks mentioned and focuses solely on providing unique fundamental research and analysis on approximately 50,000 stocks and ETFs globally. Try any of our analysis, screener or portfolio premium services free for 7 days. To get a quick preview of our services, check out our free quick summary analysis of BOMN-US.