SBA Communications Corporation Reports Fourth Quarter 2023 Results; Provides Full Year 2024 Outlook; and Declares Quarterly Cash Dividend
- None.
- None.
Insights
The reported 8.0% growth in AFFO per share for SBA Communications Corporation indicates a robust financial performance, particularly in the context of a year characterized by higher interest rates. This growth is substantial given the broader economic environment and suggests efficient operational management. The company's strategy to reduce high-cost debt has resulted in a net debt to Adjusted EBITDA leverage ratio of 6.3x, which is significantly lower than historical levels. This deleveraging effort enhances the company's financial stability and may be viewed favorably by investors seeking resilient business models in uncertain economic times.
The 15% increase in the quarterly dividend signals confidence in the company's steady cash flow and is a tangible benefit to shareholders. However, it is important to note that the dividend payout represents less than 30% of the forecasted AFFO, which implies a conservative payout ratio and the retention of substantial capital for strategic initiatives such as portfolio growth and stock repurchases. This balance between rewarding shareholders and investing in the business could be indicative of a prudent capital allocation strategy.
The mention of 5G-related upgrades and products like Fixed Wireless Access underscores the ongoing technological evolution within the telecommunications industry. SBA Communications' focus on these areas suggests alignment with key growth drivers, such as the demand for higher speeds, lower latency and greater network capacity. The company's positioning to capitalize on organic leasing growth in the U.S. and strong international demand reflects a strategic approach to both domestic and global market opportunities.
Despite a year with lower-than-historical domestic carrier activity, the company's ability to exceed its outlook for Site Leasing Revenue, Tower Cash Flow and Adjusted EBITDA indicates a resilient business model. The emphasis on becoming a trusted partner to international carrier customers further highlights the company's commitment to expanding its global footprint and diversifying revenue streams, which can mitigate market-specific risks and contribute to long-term stability.
The backdrop of higher interest rates throughout 2023 presents a challenging environment for companies with significant debt levels. SBA Communications' proactive approach to reducing its highest cost debt demonstrates a strategic response to this macroeconomic factor. The lower leverage ratio not only improves the company's credit profile but also potentially reduces future interest expenses, enhancing its ability to navigate a period of monetary tightening.
Furthermore, the company's forward-looking statements regarding the potential for solid organic leasing growth and significant free cash flow generation reflect an optimistic outlook despite economic headwinds. This optimism must be tempered with caution, as the macroeconomic environment, including interest rate fluctuations and carrier spending patterns, will continue to influence the company's performance. Stakeholders should consider both the company's internal strengths and external economic trends when assessing its future prospects.
Highlights of the fourth quarter include:
-
Net income of
$109.5 million $1.01 -
AFFO per share of
$3.37 8.0% growth over the prior year period - Issued a new senior secured Term Loan B and increased and extended the maturity of the senior secured revolving credit facility subsequent to quarter end
In addition, the Company announced today that its Board of Directors has declared a quarterly cash dividend of
“We had a strong finish to 2023, exceeding our outlook for Site Leasing Revenue, Tower Cash Flow, Adjusted EBITDA and AFFO,” commented Brendan Cavanagh, President and Chief Executive Officer. “While domestic carrier activity was at a low level by historical standards during 2023, a significant percentage of our sites still require 5G related upgrades, and with the growing success of products such as Fixed Wireless Access, the demand for improved speeds, lower latency and greater network capacity continues to advance. This dynamic bodes well for solid organic leasing growth on our
Operating Results
The table below details select financial results for the three months ended December 31, 2023 and comparisons to the prior year period.
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% Change |
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excluding |
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|
Q4 2023 |
|
Q4 2022 |
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$ Change |
|
% Change |
|
FX (1) |
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Consolidated |
|
($ in millions, except per share amounts) |
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Site leasing revenue |
|
$ |
636.1 |
|
$ |
609.6 |
|
$ |
26.5 |
|
|
|
4.3 |
% |
|
|
Site development revenue |
|
|
39.0 |
|
|
76.5 |
|
|
(37.5 |
) |
|
|
(49.1 |
%) |
|
( |
Tower cash flow (1) |
|
|
512.2 |
|
|
485.9 |
|
|
26.3 |
|
|
|
5.4 |
% |
|
|
Net income |
|
|
109.5 |
|
|
102.6 |
|
|
6.9 |
|
|
|
6.7 |
% |
|
( |
Earnings per share - diluted |
|
|
1.01 |
|
|
0.94 |
|
|
0.06 |
|
|
|
6.7 |
% |
|
( |
Adjusted EBITDA (1) |
|
|
480.7 |
|
|
460.7 |
|
|
20.0 |
|
|
|
4.3 |
% |
|
|
AFFO (1) |
|
|
365.7 |
|
|
340.7 |
|
|
25.0 |
|
|
|
7.3 |
% |
|
|
AFFO per share (1) |
|
|
3.37 |
|
|
3.12 |
|
|
0.25 |
|
|
|
8.0 |
% |
|
|
(1) |
See the reconciliations and other disclosures under “Non-GAAP Financial Measures” later in this press release. |
Total revenues in the fourth quarter of 2023 were
Site leasing operating profit in the fourth quarter of 2023 was
Tower Cash Flow in the fourth quarter of 2023 of
Net income in the fourth quarter of 2023 was
Adjusted EBITDA in the fourth quarter of 2023 was
Net Cash Interest Expense in the fourth quarter of 2023 was
AFFO in the fourth quarter of 2023 was
Investing Activities
During the fourth quarter of 2023, SBA acquired 23 communication sites for total cash consideration of
Subsequent to the fourth quarter of 2023, the Company purchased or is under contract to purchase 281 communication sites for an aggregate consideration of
Financing Activities and Liquidity
SBA ended the fourth quarter of 2023 with
On January 25, 2024, the Company, through its wholly owned subsidiary, SBA Senior Finance II LLC, under its amended and restated Senior Credit Agreement, issued a new
The Company also amended its Revolving Credit Facility to (1) increase the total commitments under the Facility from
On February 23, 2024 the Company, through its wholly owned subsidiary, SBA Senior Finance II LLC, further increased the total commitments under the Revolving Credit Facility from
During the fourth quarter of 2023, the Company, through its wholly owned subsidiary, SBA Senior Finance II, entered into a forward-starting interest rate swap agreement which will swap
As of the date of this press release, the Company had
As reported in the Company’s third quarter earnings release, in October of 2023, the Company repurchased 0.1 million shares of its Class A common stock for
In the fourth quarter of 2023, the Company declared and paid a cash dividend of
Outlook
The Company is providing its initial full year 2024 Outlook for anticipated results. The Outlook provided is based on a number of assumptions that the Company believes are reasonable at the time of this press release. Information regarding potential risks that could cause the actual results to differ from these forward-looking statements is set forth below and in the Company’s filings with the Securities and Exchange Commission.
The Company’s full year 2024 Outlook assumes the acquisitions of only those communication sites under contract and anticipated to close at the time of this press release. The Company may spend additional capital in 2024 on acquiring revenue producing assets not yet identified or under contract, the impact of which is not reflected in the 2024 guidance. The Outlook also assumes the refinancing of the
The Company’s Outlook assumes an average foreign currency exchange rate of 5.00 Brazilian Reais to
(in millions, except per share amounts) |
|
Full Year 2024 |
||||
Site leasing revenue (1) |
|
$ |
2,529.0 |
to |
$ |
2,549.0 |
Site development revenue |
|
$ |
140.0 |
to |
$ |
160.0 |
Total revenues |
|
$ |
2,669.0 |
to |
$ |
2,709.0 |
Tower Cash Flow (2) |
|
$ |
2,046.0 |
to |
$ |
2,066.0 |
Adjusted EBITDA (2) |
|
$ |
1,894.0 |
to |
$ |
1,914.0 |
Net cash interest expense (3) |
|
$ |
356.0 |
to |
$ |
361.0 |
Non-discretionary cash capital expenditures (4) |
|
$ |
51.0 |
to |
$ |
61.0 |
AFFO (2) |
|
$ |
1,433.0 |
to |
$ |
1,473.0 |
AFFO per share (2) (5) |
|
$ |
13.15 |
to |
$ |
13.51 |
Discretionary cash capital expenditures (6) |
|
$ |
320.0 |
to |
$ |
340.0 |
(1) |
The Company’s Outlook for site leasing revenue includes revenue associated with pass through reimbursable expenses. |
(2) |
See the reconciliation of this non-GAAP financial measure presented below under “Non-GAAP Financial Measures.” |
(3) |
Net cash interest expense is defined as interest expense less interest income. Net cash interest expense does not include amortization of deferred financing fees or non-cash interest expense. |
(4) |
Consists of tower maintenance and general corporate capital expenditures. |
(5) |
Outlook for AFFO per share is calculated by dividing the Company’s outlook for AFFO by an assumed weighted average number of diluted common shares of 109.0 million. Outlook does not include the impact of any potential future repurchases of the Company’s stock during 2024. |
(6) |
Consists of new tower builds, tower augmentations, communication site acquisitions and ground lease purchases. Does not include easements or payments to extend lease terms and expenditures for acquisitions of revenue producing assets not under contract at the date of this press release. |
Conference Call Information
SBA Communications Corporation will host a conference call on Monday, February 26, 2024 at 5:00 PM (EST) to discuss the quarterly results. The call may be accessed as follows:
When: |
Monday, February 26, 2024 at 5:00 PM (EST) |
Dial-in Number: |
(877) 692-8955 |
Access Code: |
1933372 |
Conference Name: |
SBA Fourth quarter 2023 results |
Replay Available: |
February 26, 2024 at 11:00 PM to March 11, 2024 at 12:00 AM (TZ: Eastern) |
Replay Number: |
(866) 207-1041 – Access Code: 6159044 |
Internet Access: |
Information Concerning Forward-Looking Statements
This press release and the Company’s earnings call include forward-looking statements, including statements regarding the Company’s expectations or beliefs regarding (i) execution of the Company’s growth strategies and the impacts to its financial performance, (ii) organic leasing growth in the
The Company wishes to caution readers that these forward-looking statements may be affected by the risks and uncertainties in the Company’s business as well as other important factors may have affected and could in the future affect the Company’s actual results and could cause the Company’s actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company. With respect to the Company’s expectations regarding all of these statements, including its financial and operational guidance, such risk factors include, but are not limited to: (1) the impact of recent macro-economic conditions, including increasing interest rates, inflation and financial market volatility on (a) the ability and willingness of wireless service providers to maintain or increase their capital expenditures, (b) the Company’s business and results of operations, and on foreign currency exchange rates and (c) consumer demand for wireless services, (2) the economic climate for the wireless communications industry in general and the wireless communications infrastructure providers in particular in
With respect to its expectations regarding the ability to close pending acquisitions, these factors also include satisfactorily completing due diligence, the amount and quality of due diligence that the Company is able to complete prior to closing of any acquisition, the ability to receive required regulatory approval, the ability and willingness of each party to fulfill their respective closing conditions and their contractual obligations and the availability of cash on hand or borrowing capacity under the Revolving Credit Facility to fund the consideration, its ability to accurately anticipate the future performance of the acquired towers and any challenges or costs associated with the integration of such towers. With respect to the repurchases under the Company’s stock repurchase program, the amount of shares repurchased, if any, and the timing of such repurchases will depend on, among other things, the trading price of the Company’s common stock, which may be positively or negatively impacted by the repurchase program, market and business conditions, the availability of stock, the Company’s financial performance or determinations following the date of this announcement in order to use the Company’s funds for other purposes. Furthermore, the Company’s forward-looking statements and its 2024 outlook assumes that the Company continues to qualify for treatment as a REIT for
This press release contains non-GAAP financial measures. Reconciliation of each of these non-GAAP financial measures and the other Regulation G information is presented below under “Non-GAAP Financial Measures.”
This press release will be available on our website at www.sbasite.com.
About SBA Communications Corporation
SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. With a portfolio of more than 39,000 communications sites throughout the
CONSOLIDATED STATEMENTS OF OPERATIONS |
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(unaudited) (in thousands, except per share amounts) |
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For the three months |
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For the year |
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|
|
ended December 31, |
|
ended December 31, |
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2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenues: |
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|
|
|
|
|
|
||||||||
Site leasing |
|
$ |
636,084 |
|
|
$ |
609,608 |
|
|
$ |
2,516,935 |
|
|
$ |
2,336,575 |
|
Site development |
|
|
38,940 |
|
|
|
76,486 |
|
|
|
194,649 |
|
|
|
296,879 |
|
Total revenues |
|
|
675,024 |
|
|
|
686,094 |
|
|
|
2,711,584 |
|
|
|
2,633,454 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenues (exclusive of depreciation, accretion, |
|
|
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|
|
|
|
|
|
|
||||
and amortization shown below): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of site leasing |
|
|
119,277 |
|
|
|
114,999 |
|
|
|
472,687 |
|
|
|
445,685 |
|
Cost of site development |
|
|
25,021 |
|
|
|
57,155 |
|
|
|
139,935 |
|
|
|
222,965 |
|
Selling, general, and administrative expenses (1) |
|
|
67,523 |
|
|
|
70,613 |
|
|
|
267,936 |
|
|
|
261,853 |
|
Acquisition and new business initiatives related |
|
|
|
|
|
|
|
|
|
|
|
|
||||
adjustments and expenses |
|
|
5,049 |
|
|
|
8,031 |
|
|
|
21,671 |
|
|
|
26,807 |
|
Asset impairment and decommission costs |
|
|
77,067 |
|
|
|
17,596 |
|
|
|
169,387 |
|
|
|
43,160 |
|
Depreciation, accretion, and amortization |
|
|
171,400 |
|
|
|
183,036 |
|
|
|
716,309 |
|
|
|
707,576 |
|
Total operating expenses |
|
|
465,337 |
|
|
|
451,430 |
|
|
|
1,787,925 |
|
|
|
1,708,046 |
|
Operating income |
|
|
209,687 |
|
|
|
234,664 |
|
|
|
923,659 |
|
|
|
925,408 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income |
|
|
5,541 |
|
|
|
3,255 |
|
|
|
18,305 |
|
|
|
10,133 |
|
Interest expense |
|
|
(98,537 |
) |
|
|
(100,256 |
) |
|
|
(400,373 |
) |
|
|
(353,784 |
) |
Non-cash interest expense |
|
|
(6,213 |
) |
|
|
(11,528 |
) |
|
|
(35,868 |
) |
|
|
(46,109 |
) |
Amortization of deferred financing fees |
|
|
(5,144 |
) |
|
|
(5,077 |
) |
|
|
(20,273 |
) |
|
|
(19,835 |
) |
Loss from extinguishment of debt, net |
|
|
— |
|
|
|
(437 |
) |
|
|
— |
|
|
|
(437 |
) |
Other income, net |
|
|
33,090 |
|
|
|
8,207 |
|
|
|
63,053 |
|
|
|
10,467 |
|
Total other expense, net |
|
|
(71,263 |
) |
|
|
(105,836 |
) |
|
|
(375,156 |
) |
|
|
(399,565 |
) |
Income before income taxes |
|
|
138,424 |
|
|
|
128,828 |
|
|
|
548,503 |
|
|
|
525,843 |
|
Provision for income taxes |
|
|
(28,896 |
) |
|
|
(26,248 |
) |
|
|
(51,088 |
) |
|
|
(66,044 |
) |
Net income |
|
|
109,528 |
|
|
|
102,580 |
|
|
|
497,415 |
|
|
|
459,799 |
|
Net loss attributable to noncontrolling interests |
|
|
— |
|
|
|
701 |
|
|
|
4,397 |
|
|
|
1,630 |
|
Net income attributable to SBA Communications |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporation |
|
$ |
109,528 |
|
|
$ |
103,281 |
|
|
$ |
501,812 |
|
|
$ |
461,429 |
|
Net income per common share attributable to SBA |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Communications Corporation: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
1.01 |
|
|
$ |
0.96 |
|
|
$ |
4.64 |
|
|
$ |
4.27 |
|
Diluted |
|
$ |
1.01 |
|
|
$ |
0.94 |
|
|
$ |
4.61 |
|
|
$ |
4.22 |
|
Weighted-average number of common shares |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
107,953 |
|
|
|
107,978 |
|
|
|
108,204 |
|
|
|
107,957 |
|
Diluted |
|
|
108,581 |
|
|
|
109,298 |
|
|
|
108,907 |
|
|
|
109,386 |
|
(1) |
Includes non-cash compensation of |
CONDENSED CONSOLIDATED BALANCE SHEETS |
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(in thousands, except par values) |
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|
|||||
|
|
December 31, |
|
December 31, |
||||
|
|
2023 |
|
2022 |
||||
ASSETS |
|
(unaudited) |
|
|
|
|||
Current assets: |
|
|||||||
Cash and cash equivalents |
|
$ |
208,547 |
|
|
$ |
143,708 |
|
Restricted cash |
|
|
38,129 |
|
|
|
41,959 |
|
Accounts receivable, net |
|
|
182,746 |
|
|
|
184,368 |
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
|
|
16,252 |
|
|
|
79,549 |
|
Prepaid expenses and other current assets |
|
|
38,593 |
|
|
|
33,149 |
|
Total current assets |
|
|
484,267 |
|
|
|
482,733 |
|
Property and equipment, net |
|
|
2,711,719 |
|
|
|
2,713,727 |
|
Intangible assets, net |
|
|
2,455,597 |
|
|
|
2,776,472 |
|
Operating lease right-of-use assets, net |
|
|
2,240,781 |
|
|
|
2,381,955 |
|
Acquired and other right-of-use assets, net |
|
|
1,473,601 |
|
|
|
1,507,781 |
|
Other assets |
|
|
812,476 |
|
|
|
722,373 |
|
Total assets |
|
$ |
10,178,441 |
|
|
$ |
10,585,041 |
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, |
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AND SHAREHOLDERS' DEFICIT |
||||||||
Current Liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
42,202 |
|
|
$ |
51,427 |
|
Accrued expenses |
|
|
92,622 |
|
|
|
101,484 |
|
Current maturities of long-term debt |
|
|
643,145 |
|
|
|
24,000 |
|
Deferred revenue |
|
|
235,668 |
|
|
|
154,553 |
|
Accrued interest |
|
|
57,496 |
|
|
|
54,173 |
|
Current lease liabilities |
|
|
273,464 |
|
|
|
262,365 |
|
Other current liabilities |
|
|
18,662 |
|
|
|
48,762 |
|
Total current liabilities |
|
|
1,363,259 |
|
|
|
696,764 |
|
Long-term liabilities: |
|
|
|
|
|
|
||
Long-term debt, net |
|
|
11,681,170 |
|
|
|
12,844,162 |
|
Long-term lease liabilities |
|
|
1,865,686 |
|
|
|
2,040,628 |
|
Other long-term liabilities |
|
|
404,161 |
|
|
|
248,067 |
|
Total long-term liabilities |
|
|
13,951,017 |
|
|
|
15,132,857 |
|
Redeemable noncontrolling interests |
|
|
35,047 |
|
|
|
31,735 |
|
Shareholders' deficit: |
|
|
|
|
|
|
||
Preferred stock - par value |
|
|
— |
|
|
|
— |
|
Common stock - Class A, par value |
|
|
|
|
|
|
||
107,997 shares issued and outstanding at December 31, 2023 and December 31, 2022, |
|
|
|
|
|
|
||
respectively |
|
|
1,080 |
|
|
|
1,080 |
|
Additional paid-in capital |
|
|
2,894,060 |
|
|
|
2,795,176 |
|
Accumulated deficit |
|
|
(7,450,824 |
) |
|
|
(7,482,061 |
) |
Accumulated other comprehensive loss, net |
|
|
(615,198 |
) |
|
|
(590,510 |
) |
Total shareholders' deficit |
|
|
(5,170,882 |
) |
|
|
(5,276,315 |
) |
Total liabilities, redeemable noncontrolling interests, and shareholders' deficit |
|
$ |
10,178,441 |
|
|
$ |
10,585,041 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(unaudited) (in thousands) |
||||||||
|
|
|
|
|
|
|
||
|
|
For the three months |
||||||
|
|
ended December 31, |
||||||
|
|
2023 |
|
2022 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net income |
|
$ |
109,528 |
|
|
$ |
102,580 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation, accretion, and amortization |
|
|
171,400 |
|
|
|
183,036 |
|
Gain on remeasurement of |
|
|
(42,470 |
) |
|
|
(11,794 |
) |
Non-cash compensation expense |
|
|
22,089 |
|
|
|
25,769 |
|
Non-cash asset impairment and decommission costs |
|
|
73,878 |
|
|
|
17,605 |
|
Deferred and non-cash income tax provision |
|
|
21,121 |
|
|
|
17,369 |
|
Other non-cash items reflected in the Statements of Operations |
|
|
23,565 |
|
|
|
21,111 |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
|
|
||
Accounts receivable and costs and estimated earnings in excess of |
|
|
|
|
|
|
||
billings on uncompleted contracts, net |
|
|
(14,287 |
) |
|
|
(47,456 |
) |
Prepaid expenses and other assets |
|
|
(11,997 |
) |
|
|
1,700 |
|
Operating lease right-of-use assets, net |
|
|
29,804 |
|
|
|
30,702 |
|
Accounts payable and accrued expenses |
|
|
(51,691 |
) |
|
|
6,971 |
|
Accrued interest |
|
|
27,391 |
|
|
|
29,067 |
|
Long-term lease liabilities |
|
|
(34,884 |
) |
|
|
(33,379 |
) |
Other liabilities |
|
|
109,164 |
|
|
|
(54,647 |
) |
Net cash provided by operating activities |
|
|
432,611 |
|
|
|
288,634 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Acquisitions |
|
|
(37,110 |
) |
|
|
(757,371 |
) |
Capital expenditures |
|
|
(62,722 |
) |
|
|
(66,095 |
) |
(Purchase) sale of investments, net |
|
|
(532 |
) |
|
|
20,103 |
|
Other investing activities |
|
|
(6,006 |
) |
|
|
1,020 |
|
Net cash used in investing activities |
|
|
(106,370 |
) |
|
|
(802,343 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Net (repayments) borrowings under Revolving Credit Facility |
|
|
(190,000 |
) |
|
|
310,000 |
|
Proceeds from issuance of Tower Securities, net of fees |
|
|
— |
|
|
|
839,885 |
|
Repayment of Tower Securities |
|
|
— |
|
|
|
(640,000 |
) |
Repurchase and retirement of common stock |
|
|
(46,358 |
) |
|
|
— |
|
Payment of dividends on common stock |
|
|
(91,759 |
) |
|
|
(76,664 |
) |
Proceeds from employee stock purchase/stock option plans |
|
|
23,138 |
|
|
|
4,558 |
|
Other financing activities |
|
|
(6,575 |
) |
|
|
(7,185 |
) |
Net cash (used in) provided by financing activities |
|
|
(311,554 |
) |
|
|
430,594 |
|
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
|
4,175 |
|
|
|
(7,476 |
) |
NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH |
|
|
18,862 |
|
|
|
(90,591 |
) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: |
|
|
|
|
|
|
||
Beginning of period |
|
|
232,084 |
|
|
|
279,874 |
|
End of period |
|
$ |
250,946 |
|
|
$ |
189,283 |
|
Selected Capital Expenditure Detail
|
|
For the three |
|
For the year |
||
|
|
months ended |
|
ended |
||
|
|
December 31, 2023 |
|
December 31, 2023 |
||
|
|
(in thousands) |
||||
Construction and related costs |
|
$ |
27,643 |
|
$ |
98,128 |
Augmentation and tower upgrades |
|
|
20,192 |
|
|
82,493 |
Non-discretionary capital expenditures: |
|
|
|
|
|
|
Tower maintenance |
|
|
13,362 |
|
|
50,463 |
General corporate |
|
|
1,525 |
|
|
5,614 |
Total non-discretionary capital expenditures |
|
|
14,887 |
|
|
56,077 |
Total capital expenditures |
|
$ |
62,722 |
|
$ |
236,698 |
Communication Site Portfolio Summary
|
|
Domestic |
|
International |
|
Total |
|||
Sites owned at September 30, 2023 |
|
17,469 |
|
|
22,077 |
|
|
39,546 |
|
Sites acquired during the fourth quarter |
|
19 |
|
|
4 |
|
|
23 |
|
Sites built during the fourth quarter |
|
3 |
|
|
135 |
|
|
138 |
|
Sites decommissioned/reclassified/sold during the fourth quarter |
|
(4 |
) |
|
(85 |
) |
|
(89 |
) |
Sites owned at December 31, 2023 |
|
17,487 |
|
|
22,131 |
|
|
39,618 |
|
Segment Operating Profit and Segment Operating Profit Margin
Domestic site leasing and International site leasing are the two segments within our site leasing business. Segment operating profit is a key business metric and one of our two measures of segment profitability. The calculation of Segment operating profit for each of our segments is set forth below.
|
|
Domestic Site Leasing |
|
Int'l Site Leasing |
|
Site Development |
||||||||||||||||||
|
|
For the three months |
|
For the three months |
|
For the three months |
||||||||||||||||||
|
|
ended December 31, |
|
ended December 31, |
|
ended December 31, |
||||||||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||||
|
|
(in thousands) |
||||||||||||||||||||||
Segment revenue |
|
$ |
466,595 |
|
|
$ |
452,928 |
|
|
$ |
169,489 |
|
|
$ |
156,680 |
|
|
$ |
38,940 |
|
|
$ |
76,486 |
|
Segment cost of revenues (excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
depreciation, accretion, and amort.) |
|
|
(67,621 |
) |
|
|
(66,151 |
) |
|
|
(51,656 |
) |
|
|
(48,848 |
) |
|
|
(25,021 |
) |
|
|
(57,155 |
) |
Segment operating profit |
|
$ |
398,974 |
|
|
$ |
386,777 |
|
|
$ |
117,833 |
|
|
$ |
107,832 |
|
|
$ |
13,919 |
|
|
$ |
19,331 |
|
Segment operating profit margin |
|
|
85.5 |
% |
|
|
85.4 |
% |
|
|
69.5 |
% |
|
|
68.8 |
% |
|
|
35.7 |
% |
|
|
25.3 |
% |
Non-GAAP Financial Measures
The press release contains non-GAAP financial measures including (i) Cash Site Leasing Revenue, Tower Cash Flow, and Tower Cash Flow Margin; (ii) Adjusted EBITDA, Annualized Adjusted EBITDA, and Adjusted EBITDA Margin; (iii) Funds from Operations (“FFO”), Adjusted Funds from Operations (“AFFO”), and AFFO per share; (iv) Net Debt, Net Secured Debt, Leverage Ratio, and Secured Leverage Ratio (collectively, our “Non-GAAP Debt Measures”); and (v) certain financial metrics after eliminating the impact of changes in foreign currency exchange rates (collectively, our “Constant Currency Measures”).
We have included these non-GAAP financial measures because we believe that they provide investors additional tools in understanding our financial performance and condition.
Specifically, we believe that:
(1) Cash Site Leasing Revenue and Tower Cash Flow are useful indicators of the performance of our site leasing operations;
(2) Adjusted EBITDA is useful to investors or other interested parties in evaluating our financial performance. Adjusted EBITDA is the primary measure used by management (1) to evaluate the economic productivity of our operations and (2) for purposes of making decisions about allocating resources to, and assessing the performance of, our operations. Management believes that Adjusted EBITDA helps investors or other interested parties meaningfully evaluate and compare the results of our operations (1) from period to period and (2) to our competitors, by excluding the impact of our capital structure (primarily interest charges from our outstanding debt) and asset base (primarily depreciation, amortization and accretion) from our financial results. Management also believes Adjusted EBITDA is frequently used by investors or other interested parties in the evaluation of REITs. In addition, Adjusted EBITDA is similar to the measure of current financial performance generally used in our debt covenant calculations. Adjusted EBITDA should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance;
(3) FFO, AFFO and AFFO per share, which are metrics used by our public company peers in the communication site industry, provide investors useful indicators of the financial performance of our business and permit investors an additional tool to evaluate the performance of our business against those of our two principal competitors. FFO, AFFO, and AFFO per share are also used to address questions we receive from analysts and investors who routinely assess our operating performance on the basis of these performance measures, which are considered industry standards. We believe that FFO helps investors or other interested parties meaningfully evaluate financial performance by excluding the impact of our asset base (primarily depreciation, amortization and accretion and asset impairment and decommission costs). We believe that AFFO and AFFO per share help investors or other interested parties meaningfully evaluate our financial performance as they include (1) the impact of our capital structure (primarily interest expense on our outstanding debt) and (2) sustaining capital expenditures and exclude the impact of (1) our asset base (primarily depreciation, amortization and accretion and asset impairment and decommission costs) and (2) certain non-cash items, including straight-lined revenues and expenses related to fixed escalations and rent free periods and the non-cash portion of our reported tax provision. GAAP requires rental revenues and expenses related to leases that contain specified rental increases over the life of the lease to be recognized evenly over the life of the lease. In accordance with GAAP, if payment terms call for fixed escalations, or rent free periods, the revenue or expense is recognized on a straight-lined basis over the fixed, non-cancelable term of the contract. We only use AFFO as a performance measure. AFFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance and should not be considered as an alternative to cash flows from operations or as residual cash flow available for discretionary investment. We believe our definition of FFO is consistent with how that term is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) and that our definition and use of AFFO and AFFO per share is consistent with those reported by the other communication site companies;
(4) Our Non-GAAP Debt Measures provide investors a more complete understanding of our net debt and leverage position as they include the full principal amount of our debt which will be due at maturity and, to the extent that such measures are calculated on Net Debt are net of our cash and cash equivalents, short-term restricted cash, and short-term investments; and
(5) Our Constant Currency Measures provide management and investors the ability to evaluate the performance of the business without the impact of foreign currency exchange rate fluctuations.
In addition, Tower Cash Flow, Adjusted EBITDA, and our Non-GAAP Debt Measures are components of the calculations used by our lenders to determine compliance with certain covenants under our Senior Credit Agreement and indentures relating to our 2020 Senior Notes and 2021 Senior Notes. These non-GAAP financial measures are not intended to be an alternative to any of the financial measures provided in our results of operations or our balance sheet as determined in accordance with GAAP.
Financial Metrics after Eliminating the Impact of Changes In Foreign Currency Exchange Rates
We eliminate the impact of changes in foreign currency exchange rates for each of the financial metrics listed in the table below by dividing the current period’s financial results by the average monthly exchange rates of the prior year period, and by eliminating the impact of the remeasurement of our intercompany loans. The table below provides the reconciliation of the reported growth rate year-over-year of each of such measures to the growth rate after eliminating the impact of changes in foreign currency exchange rates to such measure.
|
|
Fourth quarter
|
|
Foreign
|
|
Growth excluding
|
Total site leasing revenue |
|
|
|
|
|
|
Total cash site leasing revenue |
|
|
|
|
|
|
Int'l cash site leasing revenue |
|
|
|
|
|
|
Total site leasing segment operating profit |
|
|
|
|
|
|
Int'l site leasing segment operating profit |
|
|
|
|
|
|
Total site leasing tower cash flow |
|
|
|
|
|
|
Int'l site leasing tower cash flow |
|
|
|
|
|
|
Net income |
|
|
|
|
|
( |
Earnings per share - diluted |
|
|
|
|
|
( |
Adjusted EBITDA |
|
|
|
|
|
|
AFFO |
|
|
|
|
|
|
AFFO per share |
|
|
|
|
|
|
Cash Site Leasing Revenue, Tower Cash Flow, and Tower Cash Flow Margin
The table below sets forth the reconciliation of Cash Site Leasing Revenue and Tower Cash Flow to their most comparable GAAP measurement and Tower Cash Flow Margin, which is calculated by dividing Tower Cash Flow by Cash Site Leasing Revenue.
|
|
Domestic Site Leasing |
|
Int'l Site Leasing |
|
Total Site Leasing |
||||||||||||||||||
|
|
For the three months |
|
For the three months |
|
For the three months |
||||||||||||||||||
|
|
ended December 31, |
|
ended December 31, |
|
ended December 31, |
||||||||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||||
|
|
(in thousands) |
||||||||||||||||||||||
Site leasing revenue |
|
$ |
466,595 |
|
|
$ |
452,928 |
|
|
$ |
169,489 |
|
|
$ |
156,680 |
|
|
$ |
636,084 |
|
|
$ |
609,608 |
|
Non-cash straight-line leasing revenue |
|
|
(5,720 |
) |
|
|
(9,949 |
) |
|
|
1,892 |
|
|
|
816 |
|
|
|
(3,828 |
) |
|
|
(9,133 |
) |
Cash site leasing revenue |
|
|
460,875 |
|
|
|
442,979 |
|
|
|
171,381 |
|
|
|
157,496 |
|
|
|
632,256 |
|
|
|
600,475 |
|
Site leasing cost of revenues (excluding depreciation, accretion, and amortization) |
|
|
(67,621 |
) |
|
|
(66,151 |
) |
|
|
(51,656 |
) |
|
|
(48,848 |
) |
|
|
(119,277 |
) |
|
|
(114,999 |
) |
Non-cash straight-line ground lease expense |
|
|
(1,272 |
) |
|
|
(242 |
) |
|
|
451 |
|
|
|
643 |
|
|
|
(821 |
) |
|
|
401 |
|
Tower Cash Flow |
|
$ |
391,982 |
|
|
$ |
376,586 |
|
|
$ |
120,176 |
|
|
$ |
109,291 |
|
|
$ |
512,158 |
|
|
$ |
485,877 |
|
Tower Cash Flow Margin |
|
|
85.1 |
% |
|
|
85.0 |
% |
|
|
70.1 |
% |
|
|
69.4 |
% |
|
|
81.0 |
% |
|
|
80.9 |
% |
Forecasted Tower Cash Flow for Full Year 2024
The table below sets forth the reconciliation of forecasted Tower Cash Flow set forth in the Outlook section to its most comparable GAAP measurement for the full year 2024:
|
|
Full Year 2024 |
||||||
|
|
(in millions) |
||||||
Site leasing revenue |
|
$ |
2,529.0 |
|
to |
$ |
2,549.0 |
|
Non-cash straight-line leasing revenue |
|
|
(5.0 |
) |
to |
|
— |
|
Cash site leasing revenue |
|
|
2,524.0 |
|
to |
|
2,549.0 |
|
Site leasing cost of revenues (excluding |
|
|
|
|
|
|
||
depreciation, accretion, and amortization) |
|
|
(468.5 |
) |
to |
|
(478.5 |
) |
Non-cash straight-line ground lease expense |
|
|
(9.5 |
) |
to |
|
(4.5 |
) |
Tower Cash Flow |
|
$ |
2,046.0 |
|
to |
$ |
2,066.0 |
|
Adjusted EBITDA, Annualized Adjusted EBITDA, and Adjusted EBITDA Margin
The table below sets forth the reconciliation of Adjusted EBITDA to its most comparable GAAP measurement.
|
|
For the three months |
||||||
|
|
ended December 31, |
||||||
|
|
2023 |
|
2022 |
||||
|
|
(in thousands) |
||||||
Net income |
|
$ |
109,528 |
|
|
$ |
102,580 |
|
Non-cash straight-line leasing revenue |
|
|
(3,828 |
) |
|
|
(9,133 |
) |
Non-cash straight-line ground lease expense |
|
|
(821 |
) |
|
|
401 |
|
Non-cash compensation |
|
|
22,089 |
|
|
|
25,769 |
|
Loss from extinguishment of debt, net |
|
|
— |
|
|
|
437 |
|
Other income, net |
|
|
(33,090 |
) |
|
|
(8,207 |
) |
Acquisition and new business initiatives related adjustments and expenses |
|
|
5,049 |
|
|
|
8,031 |
|
Asset impairment and decommission costs |
|
|
77,067 |
|
|
|
17,596 |
|
Interest income |
|
|
(5,541 |
) |
|
|
(3,255 |
) |
Total interest expense (1) |
|
|
109,894 |
|
|
|
116,861 |
|
Depreciation, accretion, and amortization |
|
|
171,400 |
|
|
|
183,036 |
|
Provision for taxes (2) |
|
|
28,914 |
|
|
|
26,604 |
|
Adjusted EBITDA |
|
$ |
480,661 |
|
|
$ |
460,720 |
|
Annualized Adjusted EBITDA (3) |
|
$ |
1,922,644 |
|
|
$ |
1,842,880 |
|
(1) |
Total interest expense includes interest expense, non-cash interest expense, and amortization of deferred financing fees. |
(2) |
For the three months ended December 31, 2023 and 2022, these amounts included an immaterial amount and |
(3) |
Annualized Adjusted EBITDA is calculated as Adjusted EBITDA for the most recent quarter multiplied by four. |
The calculation of Adjusted EBITDA Margin is as follows:
|
|
For the three months |
||||||
|
|
ended December 31, |
||||||
|
|
2023 |
|
2022 |
||||
|
|
(in thousands) |
||||||
Total revenues |
|
$ |
675,024 |
|
|
$ |
686,094 |
|
Non-cash straight-line leasing revenue |
|
|
(3,828 |
) |
|
|
(9,133 |
) |
Total revenues minus non-cash straight-line leasing revenue |
|
$ |
671,196 |
|
|
$ |
676,961 |
|
Adjusted EBITDA |
|
$ |
480,661 |
|
|
$ |
460,720 |
|
Adjusted EBITDA Margin |
|
|
71.6 |
% |
|
|
68.1 |
% |
Forecasted Adjusted EBITDA for Full Year 2024
The table below sets forth the reconciliation of the forecasted Adjusted EBITDA set forth in the Outlook section to its most comparable GAAP measurement for the full year 2024:
|
|
Full Year 2024 |
||||||
|
|
(in millions) |
||||||
Net income |
|
$ |
520.0 |
|
to |
$ |
565.0 |
|
Non-cash straight-line leasing revenue |
|
|
(5.0 |
) |
to |
|
— |
|
Non-cash straight-line ground lease expense |
|
|
(9.5 |
) |
to |
|
(4.5 |
) |
Non-cash compensation |
|
|
73.5 |
|
to |
|
68.5 |
|
Loss from extinguishment of debt, net |
|
|
4.5 |
|
to |
|
4.5 |
|
Other expense, net |
|
|
35.5 |
|
to |
|
35.5 |
|
Acquisition and new business initiatives related adjustments and |
|
|
|
|
|
|
||
expenses |
|
|
27.0 |
|
to |
|
22.0 |
|
Asset impairment and decommission costs |
|
|
123.0 |
|
to |
|
118.0 |
|
Interest income |
|
|
(31.5 |
) |
to |
|
(26.5 |
) |
Total interest expense (1) |
|
|
442.5 |
|
to |
|
432.5 |
|
Depreciation, accretion, and amortization |
|
|
675.0 |
|
to |
|
665.0 |
|
Provision for taxes (2) |
|
|
39.0 |
|
to |
|
34.0 |
|
Adjusted EBITDA |
|
$ |
1,894.0 |
|
to |
$ |
1,914.0 |
|
(1) |
Total interest expense includes interest expense, non-cash interest expense, and amortization of deferred financing fees. |
| (2) | Includes projections for franchise taxes and gross receipts taxes, which will be reflected in the Statement of Operations in Selling, general, and administrative expenses. |
Funds from Operations (“FFO”), Adjusted Funds from Operations (“AFFO”), and AFFO per share
The tables below set forth the reconciliations of FFO, AFFO, and AFFO per share to their most comparable GAAP measurement.
|
|
For the three months |
||||||||||||||
|
|
ended December 31, |
||||||||||||||
|
|
2023 |
|
2022 |
||||||||||||
|
|
(in thousands) |
|
($ per share) |
|
(in thousands) |
|
($ per share) |
||||||||
Net income |
|
$ |
109,528 |
|
|
$ |
1.01 |
|
|
$ |
102,580 |
|
|
$ |
0.94 |
|
Real estate related depreciation, amortization, and accretion |
|
|
169,665 |
|
|
|
1.56 |
|
|
|
181,962 |
|
|
|
1.66 |
|
Asset impairment and decommission costs |
|
|
77,067 |
|
|
|
0.71 |
|
|
|
17,596 |
|
|
|
0.16 |
|
FFO |
|
$ |
356,260 |
|
|
$ |
3.28 |
|
|
$ |
302,138 |
|
|
$ |
2.76 |
|
Adjustments to FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-cash straight-line leasing revenue |
|
|
(3,828 |
) |
|
|
(0.04 |
) |
|
|
(9,133 |
) |
|
|
(0.08 |
) |
Non-cash straight-line ground lease expense |
|
|
(821 |
) |
|
|
(0.01 |
) |
|
|
401 |
|
|
|
— |
|
Non-cash compensation |
|
|
22,089 |
|
|
|
0.20 |
|
|
|
25,769 |
|
|
|
0.24 |
|
Adjustment for non-cash portion of tax provision |
|
|
21,816 |
|
|
|
0.20 |
|
|
|
17,368 |
|
|
|
0.16 |
|
Non-real estate related depreciation, |
|
|
|
|
|
|
|
|
|
|
|
|
||||
amortization, and accretion |
|
|
1,735 |
|
|
|
0.02 |
|
|
|
1,074 |
|
|
|
0.01 |
|
Amortization of deferred financing costs and |
|
|
|
|
|
|
|
|
|
|
|
|
||||
debt discounts and non-cash interest expense |
|
|
11,357 |
|
|
|
0.10 |
|
|
|
16,605 |
|
|
|
0.15 |
|
Loss from extinguishment of debt, net |
|
|
— |
|
|
|
— |
|
|
|
437 |
|
|
|
— |
|
Other income, net |
|
|
(33,090 |
) |
|
|
(0.29 |
) |
|
|
(8,207 |
) |
|
|
(0.06 |
) |
Acquisition and new business initiatives related adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
and expenses |
|
|
5,049 |
|
|
|
0.05 |
|
|
|
8,031 |
|
|
|
0.07 |
|
Non-discretionary cash capital expenditures |
|
|
(14,887 |
) |
|
|
(0.14 |
) |
|
|
(13,767 |
) |
|
|
(0.13 |
) |
AFFO |
|
$ |
365,680 |
|
|
$ |
3.37 |
|
|
$ |
340,716 |
|
|
$ |
3.12 |
|
Adjustments for joint venture partner interest |
|
|
(1,248 |
) |
|
|
(0.01 |
) |
|
|
(790 |
) |
|
|
(0.01 |
) |
AFFO attributable to SBA Communications |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporation |
|
$ |
364,432 |
|
|
$ |
3.36 |
|
|
$ |
339,926 |
|
|
$ |
3.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted weighted average number of common shares |
|
|
|
|
|
108,581 |
|
|
|
|
|
|
109,298 |
|
||
Forecasted AFFO for the Full Year 2024
The tables below set forth the reconciliations of the forecasted AFFO and AFFO per share set forth in the Outlook section to their most comparable GAAP measurements for the full year 2024:
(in millions, except per share amounts) |
|
|
|
|
Full Year 2024 |
||||||||||||||
|
|
|
|
|
(in millions) |
|
($ per share) |
||||||||||||
Net income |
|
|
|
|
$ |
520.0 |
|
to |
$ |
565.0 |
|
|
$ |
4.77 |
|
to |
$ |
5.18 |
|
Real estate related depreciation, amortization, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
and accretion |
|
|
|
|
|
663.5 |
|
to |
|
658.5 |
|
|
|
6.09 |
|
to |
|
6.04 |
|
Asset impairment and decommission costs |
|
|
|
|
|
123.0 |
|
to |
|
118.0 |
|
|
|
1.13 |
|
to |
|
1.08 |
|
FFO |
|
|
|
|
$ |
1,306.5 |
|
to |
$ |
1,341.5 |
|
|
$ |
11.99 |
|
to |
$ |
12.30 |
|
Adjustments to FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-cash straight-line leasing revenue |
|
|
|
|
|
(5.0 |
) |
to |
|
— |
|
|
|
(0.05 |
) |
to |
|
— |
|
Non-cash straight-line ground lease expense |
|
|
|
|
|
(9.5 |
) |
to |
|
(4.5 |
) |
|
|
(0.09 |
) |
to |
|
(0.04 |
) |
Non-cash compensation |
|
|
|
|
|
73.5 |
|
to |
|
68.5 |
|
|
|
0.67 |
|
to |
|
0.63 |
|
Non-real estate related depreciation, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
amortization, and accretion |
|
|
|
|
|
11.5 |
|
to |
|
6.5 |
|
|
|
0.11 |
|
to |
|
0.06 |
|
Amortization of deferred financing costs and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
debt discounts and non-cash interest expense |
|
|
|
|
|
50.0 |
|
to |
|
50.0 |
|
|
|
0.46 |
|
to |
|
0.46 |
|
Loss from extinguishment of debt, net |
|
|
|
|
|
4.5 |
|
to |
|
4.5 |
|
|
|
0.04 |
|
to |
|
0.04 |
|
Other expense, net |
|
|
|
|
|
35.5 |
|
to |
|
35.5 |
|
|
|
0.33 |
|
to |
|
0.33 |
|
Acquisition and new business initiatives related |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
adjustments and expenses |
|
|
|
|
|
27.0 |
|
to |
|
22.0 |
|
|
|
0.25 |
|
to |
|
0.20 |
|
Non-discretionary cash capital expenditures |
|
|
|
|
|
(61.0 |
) |
to |
|
(51.0 |
) |
|
|
(0.56 |
) |
to |
|
(0.47 |
) |
AFFO |
|
|
|
|
$ |
1,433.0 |
|
to |
$ |
1,473.0 |
|
|
$ |
13.15 |
|
to |
$ |
13.51 |
|
Adjustments for joint venture partner interest |
|
|
|
|
|
(6.5 |
) |
to |
|
(6.5 |
) |
|
|
(0.06 |
) |
to |
|
(0.06 |
) |
AFFO attributable to SBA Communications |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporation |
|
|
|
|
$ |
1,426.5 |
|
to |
$ |
1,466.5 |
|
|
$ |
13.09 |
|
to |
$ |
13.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted weighted average number of common shares (1) |
|
|
|
|
|
|
|
|
|
|
|
109.0 |
|
to |
|
109.0 |
|
||
(1) |
Our assumption for weighted average number of common shares does not contemplate any additional repurchases of the Company’s stock during 2024. |
Net Debt, Net Secured Debt, Leverage Ratio, and Secured Leverage Ratio
Net Debt is calculated using the notional principal amount of outstanding debt. Under GAAP policies, the notional principal amount of the Company's outstanding debt is not necessarily reflected on the face of the Company's financial statements.
The Net Debt and Leverage calculations are as follows:
|
|
December 31, |
|||||||||||
|
|
2023 |
|||||||||||
|
|
(in thousands) |
|||||||||||
2014-2C Tower Securities |
|
$ |
620,000 |
|
|||||||||
2019-1C Tower Securities |
|
|
1,165,000 |
|
|||||||||
2020-1C Tower Securities |
|
|
750,000 |
|
|||||||||
2020-2C Tower Securities |
|
|
600,000 |
|
|||||||||
2021-1C Tower Securities |
|
|
1,165,000 |
|
|||||||||
2021-2C Tower Securities |
|
|
895,000 |
|
|||||||||
2021-3C Tower Securities |
|
|
895,000 |
|
|||||||||
2022-1C Tower Securities |
|
|
850,000 |
|
|||||||||
Revolving Credit Facility |
|
|
180,000 |
|
|||||||||
2018 Term Loan |
|
|
2,268,000 |
|
|||||||||
Total secured debt |
|
|
9,388,000 |
|
|||||||||
2020 Senior Notes |
|
|
1,500,000 |
|
|||||||||
2021 Senior Notes |
|
|
1,500,000 |
|
|||||||||
Total unsecured debt |
|
|
3,000,000 |
|
|||||||||
Total debt |
|
$ |
12,388,000 |
|
|||||||||
Leverage Ratio |
|
|
|
||||||||||
Total debt |
|
$ |
12,388,000 |
|
|||||||||
Less: Cash and cash equivalents, short-term restricted cash and short-term investments |
|
|
(247,722 |
) |
|||||||||
Net debt |
|
$ |
12,140,278 |
|
|||||||||
Divided by: Annualized Adjusted EBITDA |
|
$ |
1,922,644 |
|
|||||||||
Leverage Ratio |
|
|
6.3x |
||||||||||
Secured Leverage Ratio |
|
|
|
||||||||||
Total secured debt |
|
$ |
9,388,000 |
|
|||||||||
Less: Cash and cash equivalents, short-term restricted cash and short-term investments |
|
|
(247,722 |
) |
|||||||||
Net Secured Debt |
|
$ |
9,140,278 |
|
|||||||||
Divided by: Annualized Adjusted EBITDA |
|
$ |
1,922,644 |
|
|||||||||
Secured Leverage Ratio |
|
|
4.8x |
||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240226771493/en/
Mark DeRussy, CFA
Capital Markets
561-226-9531
Lynne Hopkins
Media Relations
561-226-9431
Source: SBA Communications
FAQ
What were SBA Communications Corporation's (SBAC) net income and AFFO per share for Q4 2023?
What financial highlights were mentioned in the PR for SBA Communications Corporation (SBAC)?
How did SBA Communications Corporation (SBAC) address the higher interest rates in 2023?
What percentage increase was announced in the quarterly dividend for SBA Communications Corporation (SBAC)?
What was the distribution date for the quarterly cash dividend declared by SBA Communications Corporation (SBAC)?
