OMAHA, Neb. - Boston Omaha Corporation (NYSE: BOC), a diversified holding company, has announced that Co-CEO and Co-Chair Alex Rozek has left the firm as of Thursday to pursue new entrepreneurial opportunities. Adam Peterson will now serve as the sole Chair and CEO of the company.
Rozek's departure comes after nine years of leadership during which Boston Omaha grew from a business plan to its current diversified holdings, which include outdoor advertising, surety insurance, and fiber to the home services, as well as significant minority interests in Sky Harbour Group Corporation (NYSE American: SKYH and SKYH WS). Rozek will continue to represent Boston Omaha on the board of Sky Harbour Group Corporation.
Peterson expressed his gratitude for the partnership with Rozek, acknowledging his contributions as a co-founder and his role in positioning the company for long-term success. He stressed that Boston Omaha will concentrate on enhancing efficiencies within its current business lines and reinvesting cash flows internally rather than seeking new significant lines of business in the near future.
Rozek reflected on his time at Boston Omaha, highlighting the company's growth and his commitment to a smooth transition. He expressed his intention to remain a supporter of Boston Omaha's future endeavors.
Boston Omaha is focused on expanding margins, reinvesting cash flows into profitable opportunities, and growing its investments in billboards, surety insurance, and broadband telecommunications services. The company aims to allocate capital to the most promising opportunities within its portfolio.
The company is preparing to release its 2023 Annual Letter to Shareholders, which will provide investors with a comprehensive update on operations. Additionally, an in-person annual meeting is scheduled for later this year, where shareholders can engage with company executives.
This news article is based on a press release statement from Boston Omaha Corporation.
InvestingPro Insights
In light of the recent management changes at Boston Omaha Corporation (NYSE: BOC), investors may be evaluating the company's financial health and future prospects. According to InvestingPro data, Boston Omaha holds more cash than debt on its balance sheet, which could provide some reassurance regarding the company's financial stability during this transition period. This aligns with an InvestingPro Tip highlighting the company's liquid assets exceeding short-term obligations, suggesting a comfortable liquidity position to manage near-term financial needs.
However, it's worth noting that analysts do not anticipate Boston Omaha will be profitable this year, and the company has not been profitable over the last twelve months. This is a crucial consideration for investors as they assess the impact of the leadership change on the company's ability to return to profitability. Additionally, Boston Omaha is trading at a high EBITDA valuation multiple, which could signal that the stock is priced optimistically relative to its earnings before interest, taxes, depreciation, and amortization.
While the company does not pay a dividend to shareholders, the focus on enhancing efficiencies and reinvesting cash flows could be pivotal for future growth. For investors interested in a deeper dive into Boston Omaha's financials and strategic position, there are additional InvestingPro Tips available, which could provide further insights into making informed investment decisions. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover the full range of expert analysis and tips.
InvestingPro currently lists a total of 6 additional tips for Boston Omaha, offering a comprehensive outlook on the company's financial metrics and operational strategies.
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