SBA Communications Corporation Reports Second Quarter 2023 Results; Updates Full Year 2023 Outlook; Declares Quarterly Cash Dividend; and Announces Newly Signed Master Lease Agreement with AT&T
Highlights of the second quarter include:
-
Net income of
$202.0 million $1.87 -
AFFO per share of
$3.24 -
Site leasing revenue of
$626.1 million 7.9% growth over the prior year period - Increased full year 2023 outlook for Site Leasing Revenue, Tower Cash Flow, Adjusted EBITDA, and AFFO
In addition, the Company announced today that its Board of Directors has declared a quarterly cash dividend of
The Company also announced today that it has entered into a new long-term master lease agreement with AT&T, Inc. (the “MLA”). The comprehensive MLA will streamline AT&T’s deployment of 5G and other next generation technology across SBA’s extensive US tower portfolio, mutually benefitting both companies through securing a committed operating relationship for years into the future.
“We posted good financial results for the second quarter, exceeding estimates and our own expectations,” stated Jeffrey A. Stoops, President and Chief Executive Officer. “Customer activity varied by region, with US customers a little less active in the aggregate with their wireless networks than we expected, and international customers a little more active in the aggregate than we expected. Combined, we posted solid growth in site leasing revenue and Tower Cash Flow. We continue to execute very well, growing both our Tower Cash Flow and Adjusted EBITDA margins on a year-over-year basis. We generated solid AFFO in the quarter, providing ample cash for discretionary spending. During the quarter, we dedicated the majority of our discretionary spending to retire floating-rate indebtedness, resulting in quarter-end net debt to Adjusted EBITDA of 6.6x, our lowest leverage ratio in decades. We are also very pleased to announce our newly signed master lease agreement with AT&T. This agreement serves to expand upon our existing strong relationship with AT&T, providing for future leasing growth from AT&T at our tower sites and enhancing efficiencies in the day-to-day operations between our two companies. We are excited about this next phase in our relationship. Based on second quarter results, our current expectations for the remainder of 2023 and our new MLA with AT&T, we have adjusted our full year outlook in a number of areas, including increases to Site Leasing Revenue, Tower Cash Flow, Adjusted EBITDA, AFFO and AFFO per share.”
Operating Results
The table below details select financial results for the three months ended June 30, 2023 and comparisons to the prior year period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
excluding |
||||
|
|
Q2 2023 |
|
Q2 2022 |
|
$ Change |
|
% Change |
|
FX (1) |
||||||||
Consolidated |
|
($ in millions, except per share amounts) |
||||||||||||||||
Site leasing revenue |
|
$ |
626.1 |
|
$ |
580.2 |
|
$ |
45.9 |
|
|
|
7.9 |
% |
|
|
8.6 |
% |
Site development revenue |
|
|
52.4 |
|
|
71.8 |
|
|
(19.4 |
) |
|
|
(27.1 |
%) |
|
|
(27.1 |
%) |
Tower cash flow (1) |
|
|
503.5 |
|
|
459.6 |
|
|
43.9 |
|
|
|
9.6 |
% |
|
|
10.2 |
% |
Net income |
|
|
202.0 |
|
|
69.2 |
|
|
132.8 |
|
|
|
191.9 |
% |
|
|
57.1 |
% |
Earnings per share - diluted |
|
|
1.87 |
|
|
0.64 |
|
|
1.23 |
|
|
|
194.2 |
% |
|
|
58.3 |
% |
Adjusted EBITDA (1) |
|
|
471.7 |
|
|
437.8 |
|
|
33.9 |
|
|
|
7.8 |
% |
|
|
8.4 |
% |
AFFO (1) |
|
|
352.7 |
|
|
335.3 |
|
|
17.4 |
|
|
|
5.2 |
% |
|
|
6.0 |
% |
AFFO per share (1) |
|
|
3.24 |
|
|
3.07 |
|
|
0.17 |
|
|
|
5.5 |
% |
|
|
6.2 |
% |
(1) |
See the reconciliations and other disclosures under “Non-GAAP Financial Measures” later in this press release. |
Total revenues in the second quarter of 2023 were
Site leasing operating profit in the second quarter of 2023 was
Tower Cash Flow in the second quarter of 2023 of
Net income in the second quarter of 2023 was
Adjusted EBITDA in the second quarter of 2023 was
Net Cash Interest Expense in the second quarter of 2023 was
AFFO in the second quarter of 2023 was
Investing Activities
During the second quarter of 2023, SBA acquired 9 communication sites for total cash consideration of
Subsequent to the second quarter of 2023, the Company purchased or is under contract to purchase 134 communication sites for an aggregate consideration of
Financing Activities and Liquidity
SBA ended the second quarter of 2023 with
As of the date of this press release, the Company had
The Company did not repurchase any shares of its Class A common stock during the second quarter of 2023. As of the date of this filing, the Company has
In the second quarter of 2023, the Company declared and paid a cash dividend of
Outlook
The Company is updating its full year 2023 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 2023 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 2023 on acquiring revenue producing assets not yet identified or under contract, the impact of which is not reflected in the 2023 guidance. The Outlook also does not contemplate any additional repurchases of the Company’s stock or new debt financings during 2023, although the Company may ultimately spend capital to repurchase additional stock or issue new debt during the remainder of the year.
The Company’s Outlook assumes an average foreign currency exchange rate of 4.90 Brazilian Reais to
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Change from |
|||
|
|
|
|
|
|
|
|
Change from |
|
May 1, 2023 |
||||
|
|
|
|
|
|
|
|
May 1, 2023 |
|
Outlook |
||||
(in millions, except per share amounts) |
|
Full Year 2023 |
|
Outlook (7) |
|
Excluding FX |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Site leasing revenue (1) |
|
$ |
2,502.0 |
to |
$ |
2,522.0 |
|
$ |
21.0 |
|
|
$ |
12.0 |
|
Site development revenue |
|
$ |
205.0 |
to |
$ |
225.0 |
|
$ |
— |
|
|
$ |
— |
|
Total revenues |
|
$ |
2,707.0 |
to |
$ |
2,747.0 |
|
$ |
21.0 |
|
|
$ |
12.0 |
|
Tower Cash Flow (2) |
|
$ |
2,004.0 |
to |
$ |
2,024.0 |
|
$ |
26.0 |
|
|
$ |
19.5 |
|
Adjusted EBITDA (2) |
|
$ |
1,878.0 |
to |
$ |
1,898.0 |
|
$ |
23.0 |
|
|
$ |
17.0 |
|
Net cash interest expense (3) |
|
$ |
380.0 |
to |
$ |
385.0 |
|
$ |
2.0 |
|
|
$ |
2.0 |
|
Non-discretionary cash capital expenditures (4) |
|
$ |
52.0 |
to |
$ |
62.0 |
|
$ |
(2.0 |
) |
|
$ |
(2.0 |
) |
AFFO (2) |
|
$ |
1,396.0 |
to |
$ |
1,436.0 |
|
$ |
22.0 |
|
|
$ |
17.5 |
|
AFFO per share (2) (5) |
|
$ |
12.80 |
to |
$ |
13.16 |
|
$ |
0.25 |
|
|
$ |
0.20 |
|
Discretionary cash capital expenditures (6) |
|
$ |
335.0 |
to |
$ |
355.0 |
|
$ |
5.0 |
|
|
$ |
4.0 |
|
(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 109.1 million. Outlook does not include the impact of any potential future repurchases of the Company’s stock during 2023. |
(6) |
Consists of new tower builds, tower augmentations, communication site acquisitions and ground lease purchases. Does not include expenditures for acquisitions of revenue producing assets not under contract at the date of this press release. |
(7) |
Changes from prior outlook are measured based on the midpoint of outlook ranges provided. |
Conference Call Information
SBA Communications Corporation will host a conference call on Monday, July 31, 2023 at 5:00 PM (EDT) to discuss the quarterly results. The call may be accessed as follows:
When: |
|
|
Monday, July 31, 2023 at 5:00 PM (EDT) |
Dial-in Number: |
|
|
(877) 692-8955 |
Access Code: |
|
|
7464269 |
Conference Name: |
|
|
SBA Second quarter 2023 results |
Replay Available: |
|
|
July 31, 2023 at 11:00 PM to August 14, 2023 at 12:00 AM (TZ: Eastern) |
Replay Number: |
|
|
(866) 207-1041 – Access Code: 3711070 |
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) future discretionary spending and the sufficiency of the Company’s cash position, (iii) the Company’s outlook for financial and operational performance in 2023, the assumptions it made and the drivers contributing to its updated full year guidance, (iv) the impact of the new MLA with AT&T on the Company’s financial and operational performance, (v) the timing of closing for currently pending acquisitions, (vi) the Company’s tower portfolio growth and positioning for future growth, (vii) foreign exchange rates and their impact on the Company’s financial and operational guidance and the Company’s updated 2023 Outlook.
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 2023 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 in 16 markets throughout the
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share amounts) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
For the three months |
|
For the six months |
||||||||||||
|
|
ended June 30, |
|
ended June 30, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
Site leasing |
|
$ |
626,143 |
|
|
$ |
580,233 |
|
|
$ |
1,243,411 |
|
|
$ |
1,139,665 |
|
Site development |
|
|
52,357 |
|
|
|
71,773 |
|
|
|
110,605 |
|
|
|
132,111 |
|
Total revenues |
|
|
678,500 |
|
|
|
652,006 |
|
|
|
1,354,016 |
|
|
|
1,271,776 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenues (exclusive of depreciation, accretion, |
|
|
|
|
|
|
|
|
|
|
|
|
||||
and amortization shown below): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of site leasing |
|
|
115,014 |
|
|
|
111,515 |
|
|
|
235,133 |
|
|
|
218,670 |
|
Cost of site development |
|
|
39,236 |
|
|
|
54,497 |
|
|
|
83,421 |
|
|
|
100,269 |
|
Selling, general, and administrative expenses (1) |
|
|
63,383 |
|
|
|
63,274 |
|
|
|
135,592 |
|
|
|
125,398 |
|
Acquisition and new business initiatives related |
|
|
|
|
|
|
|
|
|
|
|
|
||||
adjustments and expenses |
|
|
4,953 |
|
|
|
6,829 |
|
|
|
11,010 |
|
|
|
11,933 |
|
Asset impairment and decommission costs |
|
|
32,867 |
|
|
|
8,521 |
|
|
|
59,257 |
|
|
|
17,033 |
|
Depreciation, accretion, and amortization |
|
|
181,820 |
|
|
|
176,392 |
|
|
|
364,235 |
|
|
|
350,716 |
|
Total operating expenses |
|
|
437,273 |
|
|
|
421,028 |
|
|
|
888,648 |
|
|
|
824,019 |
|
Operating income |
|
|
241,227 |
|
|
|
230,978 |
|
|
|
465,368 |
|
|
|
447,757 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income |
|
|
4,683 |
|
|
|
1,517 |
|
|
|
7,498 |
|
|
|
4,020 |
|
Interest expense |
|
|
(101,288 |
) |
|
|
(84,315 |
) |
|
|
(202,514 |
) |
|
|
(166,566 |
) |
Non-cash interest expense |
|
|
(7,518 |
) |
|
|
(11,529 |
) |
|
|
(21,757 |
) |
|
|
(23,054 |
) |
Amortization of deferred financing fees |
|
|
(5,044 |
) |
|
|
(4,922 |
) |
|
|
(10,032 |
) |
|
|
(9,804 |
) |
Other income (expense), net |
|
|
40,732 |
|
|
|
(66,141 |
) |
|
|
78,293 |
|
|
|
42,019 |
|
Total other expense, net |
|
|
(68,435 |
) |
|
|
(165,390 |
) |
|
|
(148,512 |
) |
|
|
(153,385 |
) |
Income before income taxes |
|
|
172,792 |
|
|
|
65,588 |
|
|
|
316,856 |
|
|
|
294,372 |
|
Benefit (provision) for income taxes |
|
|
29,178 |
|
|
|
3,563 |
|
|
|
(14,331 |
) |
|
|
(36,914 |
) |
Net income |
|
|
201,970 |
|
|
|
69,151 |
|
|
|
302,525 |
|
|
|
257,458 |
|
Net loss attributable to noncontrolling interests |
|
|
1,678 |
|
|
|
365 |
|
|
|
2,340 |
|
|
|
682 |
|
Net income attributable to SBA Communications |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporation |
|
$ |
203,648 |
|
|
$ |
69,516 |
|
|
$ |
304,865 |
|
|
$ |
258,140 |
|
Net income per common share attributable to SBA |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Communications Corporation: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
1.88 |
|
|
$ |
0.64 |
|
|
$ |
2.82 |
|
|
$ |
2.39 |
|
Diluted |
|
$ |
1.87 |
|
|
$ |
0.64 |
|
|
$ |
2.79 |
|
|
$ |
2.36 |
|
Weighted-average number of common shares |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
108,355 |
|
|
|
107,850 |
|
|
|
108,244 |
|
|
|
107,966 |
|
Diluted |
|
|
108,884 |
|
|
|
109,347 |
|
|
|
109,078 |
|
|
|
109,443 |
|
| (1) |
Includes non-cash compensation of |
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par values) |
||||||||
|
|
|
|
|||||
|
|
June 30, |
|
December 31, |
||||
|
|
2023 |
|
2022 |
||||
ASSETS |
|
(unaudited) |
|
|
|
|||
Current assets: |
|
|||||||
Cash and cash equivalents |
|
$ |
179,169 |
|
|
$ |
143,708 |
|
Restricted cash |
|
|
72,077 |
|
|
|
41,959 |
|
Accounts receivable, net |
|
|
160,311 |
|
|
|
184,368 |
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
|
|
42,146 |
|
|
|
79,549 |
|
Prepaid expenses and other current assets |
|
|
64,914 |
|
|
|
33,149 |
|
Total current assets |
|
|
518,617 |
|
|
|
482,733 |
|
Property and equipment, net |
|
|
2,712,201 |
|
|
|
2,713,727 |
|
Intangible assets, net |
|
|
2,628,077 |
|
|
|
2,776,472 |
|
Operating lease right-of-use assets, net |
|
|
2,362,254 |
|
|
|
2,381,955 |
|
Acquired and other right-of-use assets, net |
|
|
1,528,070 |
|
|
|
1,507,781 |
|
Other assets |
|
|
855,251 |
|
|
|
722,373 |
|
Total assets |
|
$ |
10,604,470 |
|
|
$ |
10,585,041 |
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, |
|
|
|
|
|
|
||
AND SHAREHOLDERS' DEFICIT |
|
|
|
|
|
|
||
Current Liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
47,027 |
|
|
$ |
51,427 |
|
Accrued expenses |
|
|
84,121 |
|
|
|
101,484 |
|
Current maturities of long-term debt |
|
|
24,000 |
|
|
|
24,000 |
|
Deferred revenue |
|
|
230,072 |
|
|
|
154,553 |
|
Accrued interest |
|
|
55,104 |
|
|
|
54,173 |
|
Current lease liabilities |
|
|
274,828 |
|
|
|
262,365 |
|
Other current liabilities |
|
|
23,237 |
|
|
|
48,762 |
|
Total current liabilities |
|
|
738,389 |
|
|
|
696,764 |
|
Long-term liabilities: |
|
|
|
|
|
|
||
Long-term debt, net |
|
|
12,571,931 |
|
|
|
12,844,162 |
|
Long-term lease liabilities |
|
|
2,018,065 |
|
|
|
2,040,628 |
|
Other long-term liabilities |
|
|
330,842 |
|
|
|
248,067 |
|
Total long-term liabilities |
|
|
14,920,838 |
|
|
|
15,132,857 |
|
Redeemable noncontrolling interests |
|
|
37,573 |
|
|
|
31,735 |
|
Shareholders' deficit: |
|
|
|
|
|
|
||
Preferred stock - par value |
|
|
— |
|
|
|
— |
|
Common stock - Class A, par value |
|
|
|
|
|
|
||
107,997 shares issued and outstanding at June 30, 2023 and December 31, 2022, |
|
|
|
|
|
|
||
respectively |
|
|
1,084 |
|
|
|
1,080 |
|
Additional paid-in capital |
|
|
2,824,994 |
|
|
|
2,795,176 |
|
Accumulated deficit |
|
|
(7,362,838 |
) |
|
|
(7,482,061 |
) |
Accumulated other comprehensive loss, net |
|
|
(555,570 |
) |
|
|
(590,510 |
) |
Total shareholders' deficit |
|
|
(5,092,330 |
) |
|
|
(5,276,315 |
) |
Total liabilities, redeemable noncontrolling interests, and shareholders' deficit |
|
$ |
10,604,470 |
|
|
$ |
10,585,041 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) |
||||||||
|
|
|
|
|
|
|
||
|
|
For the three months |
||||||
|
|
ended June 30, |
||||||
|
|
2023 |
|
2022 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net income |
|
$ |
201,970 |
|
|
$ |
69,151 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation, accretion, and amortization |
|
|
181,820 |
|
|
|
176,392 |
|
(Gain) loss on remeasurement of |
|
|
(43,336 |
) |
|
|
63,716 |
|
Non-cash compensation expense |
|
|
18,252 |
|
|
|
23,900 |
|
Non-cash asset impairment and decommission costs |
|
|
25,367 |
|
|
|
8,598 |
|
Deferred and non-cash income tax benefit |
|
|
(36,578 |
) |
|
|
(11,250 |
) |
Other non-cash items reflected in the Statements of Operations |
|
|
20,206 |
|
|
|
19,067 |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
|
|
||
Accounts receivable and costs and estimated earnings in excess of |
|
|
|
|
|
|
||
billings on uncompleted contracts, net |
|
|
40,463 |
|
|
|
1,734 |
|
Prepaid expenses and other assets |
|
|
(13,753 |
) |
|
|
(12,604 |
) |
Operating lease right-of-use assets, net |
|
|
37,774 |
|
|
|
35,498 |
|
Accounts payable and accrued expenses |
|
|
(15,600 |
) |
|
|
3,938 |
|
Accrued interest |
|
|
27,024 |
|
|
|
27,136 |
|
Long-term lease liabilities |
|
|
(34,492 |
) |
|
|
(31,952 |
) |
Other liabilities |
|
|
77,816 |
|
|
|
(1,209 |
) |
Net cash provided by operating activities |
|
|
486,933 |
|
|
|
372,115 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Acquisitions |
|
|
(19,808 |
) |
|
|
(138,397 |
) |
Capital expenditures |
|
|
(63,448 |
) |
|
|
(52,963 |
) |
Purchase of investments, net |
|
|
(20,141 |
) |
|
|
(38,823 |
) |
Other investing activities |
|
|
(8,188 |
) |
|
|
369 |
|
Net cash used in investing activities |
|
|
(111,585 |
) |
|
|
(229,814 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Net repayments under Revolving Credit Facility |
|
|
(225,000 |
) |
|
|
(150,000 |
) |
Payment of dividends on common stock |
|
|
(92,137 |
) |
|
|
(76,565 |
) |
Proceeds from employee stock purchase/stock option plans |
|
|
7,366 |
|
|
|
9,405 |
|
Payments related to taxes on net settlement of stock options and restricted stock units |
|
|
(719 |
) |
|
|
(394 |
) |
Other financing activities |
|
|
(3,670 |
) |
|
|
(6,700 |
) |
Net cash used in financing activities |
|
|
(314,160 |
) |
|
|
(224,254 |
) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
|
1,139 |
|
|
|
(3,507 |
) |
NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH |
|
|
62,327 |
|
|
|
(85,460 |
) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: |
|
|
|
|
|
|
||
Beginning of period |
|
|
193,182 |
|
|
|
336,438 |
|
End of period |
|
$ |
255,509 |
|
|
$ |
250,978 |
|
Selected Capital Expenditure Detail
|
|
|
|
|
|
|
|
|
For the three |
|
For the six |
||
|
|
months ended |
|
months ended |
||
|
|
June 30, 2023 |
|
June 30, 2023 |
||
|
|
(in thousands) |
||||
Construction and related costs |
|
$ |
25,013 |
|
$ |
46,579 |
Augmentation and tower upgrades |
|
|
23,701 |
|
|
39,492 |
Non-discretionary capital expenditures: |
|
|
|
|
|
|
Tower maintenance |
|
|
13,396 |
|
|
24,139 |
General corporate |
|
|
1,338 |
|
|
2,373 |
Total non-discretionary capital expenditures |
|
|
14,734 |
|
|
26,512 |
Total capital expenditures |
|
$ |
63,448 |
|
$ |
112,583 |
Communication Site Portfolio Summary
|
|
Domestic |
|
International |
|
Total |
|||
|
|
|
|
|
|
|
|||
Sites owned at March 31, 2023 |
|
17,418 |
|
|
21,944 |
|
|
39,362 |
|
Sites acquired during the second quarter |
|
9 |
|
|
— |
|
|
9 |
|
Sites built during the second quarter |
|
2 |
|
|
62 |
|
|
64 |
|
Sites decommissioned/reclassified during the second quarter |
|
(3 |
) |
|
(6 |
) |
|
(9 |
) |
Sites owned at June 30, 2023 |
|
17,426 |
|
|
22,000 |
|
|
39,426 |
|
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 June 30, |
|
ended June 30, |
|
ended June 30, |
||||||||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||||
|
|
(in thousands) |
||||||||||||||||||||||
Segment revenue |
|
$ |
456,754 |
|
|
$ |
442,084 |
|
|
$ |
169,389 |
|
|
$ |
138,149 |
|
|
$ |
52,357 |
|
|
$ |
71,773 |
|
Segment cost of revenues (excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
depreciation, accretion, and amort.) |
|
|
(64,434 |
) |
|
|
(65,768 |
) |
|
|
(50,580 |
) |
|
|
(45,747 |
) |
|
|
(39,236 |
) |
|
|
(54,497 |
) |
Segment operating profit |
|
$ |
392,320 |
|
|
$ |
376,316 |
|
|
$ |
118,809 |
|
|
$ |
92,402 |
|
|
$ |
13,121 |
|
|
$ |
17,276 |
|
Segment operating profit margin |
|
|
85.9 |
% |
|
|
85.1 |
% |
|
|
70.1 |
% |
|
|
66.9 |
% |
|
|
25.1 |
% |
|
|
24.1 |
% |
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.
|
|
|
|
|
|
|
|
|
Second quarter |
|
|
|
|
|
|
2023 year |
|
Foreign |
|
Growth excluding |
|
|
over year |
|
currency |
|
foreign |
|
|
growth rate |
|
impact |
|
currency impact |
|
|
|
|
|
|
|
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 June 30, |
|
ended June 30, |
|
ended June 30, |
||||||||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||||
|
|
(in thousands) |
||||||||||||||||||||||
Site leasing revenue |
|
$ |
456,754 |
|
|
$ |
442,084 |
|
|
$ |
169,389 |
|
|
$ |
138,149 |
|
|
$ |
626,143 |
|
|
$ |
580,233 |
|
Non-cash straight-line leasing revenue |
|
|
(6,475 |
) |
|
|
(10,267 |
) |
|
|
(1,005 |
) |
|
|
421 |
|
|
|
(7,480 |
) |
|
|
(9,846 |
) |
Cash site leasing revenue |
|
|
450,279 |
|
|
|
431,817 |
|
|
|
168,384 |
|
|
|
138,570 |
|
|
|
618,663 |
|
|
|
570,387 |
|
Site leasing cost of revenues (excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
depreciation, accretion, and amortization) |
|
|
(64,434 |
) |
|
|
(65,768 |
) |
|
|
(50,580 |
) |
|
|
(45,747 |
) |
|
|
(115,014 |
) |
|
|
(111,515 |
) |
Non-cash straight-line ground lease expense |
|
|
(814 |
) |
|
|
413 |
|
|
|
654 |
|
|
|
308 |
|
|
|
(160 |
) |
|
|
721 |
|
Tower Cash Flow |
|
$ |
385,031 |
|
|
$ |
366,462 |
|
|
$ |
118,458 |
|
|
$ |
93,131 |
|
|
$ |
503,489 |
|
|
$ |
459,593 |
|
Tower Cash Flow Margin |
|
|
85.5 |
% |
|
|
84.9 |
% |
|
|
70.3 |
% |
|
|
67.2 |
% |
|
|
81.4 |
% |
|
|
80.6 |
% |
Forecasted Tower Cash Flow for Full Year 2023
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 2023:
|
|
|
|
|
|
|
||
|
|
Full Year 2023 |
||||||
|
|
(in millions) |
||||||
Site leasing revenue |
|
$ |
2,502.0 |
|
to |
$ |
2,522.0 |
|
Non-cash straight-line leasing revenue |
|
|
(26.0 |
) |
to |
|
(21.0 |
) |
Cash site leasing revenue |
|
|
2,476.0 |
|
to |
|
2,501.0 |
|
Site leasing cost of revenues (excluding |
|
|
|
|
|
|
||
depreciation, accretion, and amortization) |
|
|
(468.5 |
) |
to |
|
(478.5 |
) |
Non-cash straight-line ground lease expense |
|
|
(3.5 |
) |
to |
|
1.5 |
|
Tower Cash Flow |
|
$ |
2,004.0 |
|
to |
$ |
2,024.0 |
|
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 June 30, |
||||||
|
|
2023 |
|
2022 |
||||
|
|
(in thousands) |
||||||
Net income |
|
$ |
201,970 |
|
|
$ |
69,151 |
|
Non-cash straight-line leasing revenue |
|
|
(7,480 |
) |
|
|
(9,846 |
) |
Non-cash straight-line ground lease expense |
|
|
(160 |
) |
|
|
721 |
|
Non-cash compensation |
|
|
18,252 |
|
|
|
23,900 |
|
Other (income) expense, net |
|
|
(40,732 |
) |
|
|
66,141 |
|
Acquisition and new business initiatives related adjustments and expenses |
|
|
4,953 |
|
|
|
6,829 |
|
Asset impairment and decommission costs |
|
|
32,867 |
|
|
|
8,521 |
|
Interest income |
|
|
(4,683 |
) |
|
|
(1,517 |
) |
Total interest expense (1) |
|
|
113,850 |
|
|
|
100,766 |
|
Depreciation, accretion, and amortization |
|
|
181,820 |
|
|
|
176,392 |
|
Benefit for taxes (2) |
|
|
(28,937 |
) |
|
|
(3,302 |
) |
Adjusted EBITDA |
|
$ |
471,720 |
|
|
$ |
437,756 |
|
Annualized Adjusted EBITDA (3) |
|
$ |
1,886,880 |
|
|
$ |
1,751,024 |
|
(1) |
Total interest expense includes interest expense, non-cash interest expense, and amortization of deferred financing fees. |
(2) |
For the three months ended June 30, 2023 and 2022, these amounts included |
(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 June 30, |
||||||
|
|
2023 |
|
2022 |
||||
|
|
(in thousands) |
||||||
Total revenues |
|
$ |
678,500 |
|
|
$ |
652,006 |
|
Non-cash straight-line leasing revenue |
|
|
(7,480 |
) |
|
|
(9,846 |
) |
Total revenues minus non-cash straight-line leasing revenue |
|
$ |
671,020 |
|
|
$ |
642,160 |
|
Adjusted EBITDA |
|
$ |
471,720 |
|
|
$ |
437,756 |
|
Adjusted EBITDA Margin |
|
|
70.3 |
% |
|
|
68.2 |
% |
Forecasted Adjusted EBITDA for Full Year 2023
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 2023:
|
|
|
|
|
|
|
||
|
|
Full Year 2023 |
||||||
|
|
(in millions) |
||||||
Net income |
|
$ |
549.5 |
|
to |
$ |
594.5 |
|
Non-cash straight-line leasing revenue |
|
|
(26.0 |
) |
to |
|
(21.0 |
) |
Non-cash straight-line ground lease expense |
|
|
(3.5 |
) |
to |
|
1.5 |
|
Non-cash compensation |
|
|
85.0 |
|
to |
|
80.0 |
|
Other income, net |
|
|
(58.0 |
) |
to |
|
(58.0 |
) |
Acquisition and new business initiatives related adjustments and expenses |
|
|
25.5 |
|
to |
|
20.5 |
|
Asset impairment and decommission costs |
|
|
112.0 |
|
to |
|
107.0 |
|
Interest income |
|
|
(17.5 |
) |
to |
|
(12.5 |
) |
Total interest expense (1) |
|
|
459.5 |
|
to |
|
449.5 |
|
Depreciation, accretion, and amortization |
|
|
716.5 |
|
to |
|
706.5 |
|
Provision for taxes (2) |
|
|
35.0 |
|
to |
|
30.0 |
|
Adjusted EBITDA |
|
$ |
1,878.0 |
|
to |
$ |
1,898.0 |
|
(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 June 30, |
||||||||||||||
|
|
2023 |
|
2022 |
||||||||||||
|
|
(in thousands) |
|
($ per share) |
|
(in thousands) |
|
($ per share) |
||||||||
Net income |
|
$ |
201,970 |
|
|
$ |
1.85 |
|
|
$ |
69,151 |
|
|
$ |
0.63 |
|
Real estate related depreciation, amortization, and accretion |
|
|
180,118 |
|
|
|
1.65 |
|
|
|
175,190 |
|
|
|
1.60 |
|
Asset impairment and decommission costs |
|
|
32,867 |
|
|
|
0.30 |
|
|
|
8,521 |
|
|
|
0.08 |
|
FFO |
|
$ |
414,955 |
|
|
$ |
3.80 |
|
|
$ |
252,862 |
|
|
$ |
2.31 |
|
Adjustments to FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-cash straight-line leasing revenue |
|
|
(7,480 |
) |
|
|
(0.07 |
) |
|
|
(9,846 |
) |
|
|
(0.09 |
) |
Non-cash straight-line ground lease expense |
|
|
(160 |
) |
|
|
— |
|
|
|
721 |
|
|
|
0.01 |
|
Non-cash compensation |
|
|
18,252 |
|
|
|
0.17 |
|
|
|
23,900 |
|
|
|
0.22 |
|
Adjustment for non-cash portion of tax benefit |
|
|
(36,578 |
) |
|
|
(0.34 |
) |
|
|
(11,250 |
) |
|
|
(0.10 |
) |
Non-real estate related depreciation, |
|
|
|
|
|
|
|
|
|
|
|
|
||||
amortization, and accretion |
|
|
1,702 |
|
|
|
0.02 |
|
|
|
1,202 |
|
|
|
0.01 |
|
Amortization of deferred financing costs and |
|
|
|
|
|
|
|
|
|
|
|
|
||||
debt discounts and non-cash interest expense |
|
|
12,562 |
|
|
|
0.12 |
|
|
|
16,451 |
|
|
|
0.15 |
|
Other (income) expense, net |
|
|
(40,732 |
) |
|
|
(0.37 |
) |
|
|
66,141 |
|
|
|
0.61 |
|
Acquisition and new business initiatives related adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
and expenses |
|
|
4,953 |
|
|
|
0.05 |
|
|
|
6,829 |
|
|
|
0.06 |
|
Non-discretionary cash capital expenditures |
|
|
(14,734 |
) |
|
|
(0.14 |
) |
|
|
(11,737 |
) |
|
|
(0.11 |
) |
AFFO |
|
$ |
352,740 |
|
|
$ |
3.24 |
|
|
$ |
335,273 |
|
|
$ |
3.07 |
|
Adjustments for joint venture partner interest |
|
|
(1,829 |
) |
|
|
(0.02 |
) |
|
|
(971 |
) |
|
|
(0.01 |
) |
AFFO attributable to SBA Communications |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporation |
|
$ |
350,911 |
|
|
$ |
3.22 |
|
|
$ |
334,302 |
|
|
$ |
3.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted weighted average number of common shares |
|
|
|
|
|
108,884 |
|
|
|
|
|
|
109,347 |
|
||
Forecasted AFFO for the Full Year 2023
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 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(in millions, except per share amounts) |
|
Full Year 2023 |
||||||||||||||
|
|
(in millions) |
|
($ per share) |
||||||||||||
Net income |
|
$ |
549.5 |
|
to |
$ |
594.5 |
|
|
$ |
5.04 |
|
to |
$ |
5.45 |
|
Real estate related depreciation, amortization, |
|
|
|
|
|
|
|
|
|
|
|
|
||||
and accretion |
|
|
706.5 |
|
to |
|
701.5 |
|
|
|
6.48 |
|
to |
|
6.43 |
|
Asset impairment and decommission costs |
|
|
112.0 |
|
to |
|
107.0 |
|
|
|
1.03 |
|
to |
|
0.98 |
|
FFO |
|
$ |
1,368.0 |
|
to |
$ |
1,403.0 |
|
|
$ |
12.55 |
|
to |
$ |
12.86 |
|
Adjustments to FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-cash straight-line leasing revenue |
|
|
(26.0 |
) |
to |
|
(21.0 |
) |
|
|
(0.24 |
) |
to |
|
(0.19 |
) |
Non-cash straight-line ground lease expense |
|
|
(3.5 |
) |
to |
|
1.5 |
|
|
|
(0.03 |
) |
to |
|
0.01 |
|
Non-cash compensation |
|
|
85.0 |
|
to |
|
80.0 |
|
|
|
0.78 |
|
to |
|
0.73 |
|
Non-real estate related depreciation, |
|
|
|
|
|
|
|
|
|
|
|
|
||||
amortization, and accretion |
|
|
10.0 |
|
to |
|
5.0 |
|
|
|
0.09 |
|
to |
|
0.05 |
|
Amortization of deferred financing costs and |
|
|
|
|
|
|
|
|
|
|
|
|
||||
debt discounts and non-cash interest expense |
|
|
57.0 |
|
to |
|
57.0 |
|
|
|
0.52 |
|
to |
|
0.52 |
|
Other income, net |
|
|
(58.0 |
) |
to |
|
(58.0 |
) |
|
|
(0.53 |
) |
to |
|
(0.53 |
) |
Acquisition and new business initiatives related |
|
|
|
|
|
|
|
|
|
|
|
|
||||
adjustments and expenses |
|
|
25.5 |
|
to |
|
20.5 |
|
|
|
0.23 |
|
to |
|
0.19 |
|
Non-discretionary cash capital expenditures |
|
|
(62.0 |
) |
to |
|
(52.0 |
) |
|
|
(0.57 |
) |
to |
|
(0.48 |
) |
AFFO |
|
$ |
1,396.0 |
|
to |
$ |
1,436.0 |
|
|
$ |
12.80 |
|
to |
$ |
13.16 |
|
Adjustments for joint venture partner interest |
|
|
(5.0 |
) |
to |
|
(5.0 |
) |
|
|
(0.05 |
) |
to |
|
(0.05 |
) |
AFFO attributable to SBA Communications |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporation |
|
$ |
1,391.0 |
|
to |
$ |
1,431.0 |
|
|
$ |
12.75 |
|
to |
$ |
13.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted weighted average number of common shares (1) |
|
|
|
|
|
|
|
|
109.1 |
|
to |
|
109.1 |
|
||
(1) |
Our assumption for weighted average number of common shares does not contemplate any additional repurchases of the Company’s stock during 2023. |
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:
|
|
|
|
|
|
|
June 30, |
||
|
|
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 |
|
|
450,000 |
|
2018 Term Loan |
|
|
2,280,000 |
|
Total secured debt |
|
|
9,670,000 |
|
2020 Senior Notes |
|
|
1,500,000 |
|
2021 Senior Notes |
|
|
1,500,000 |
|
Total unsecured debt |
|
|
3,000,000 |
|
Total debt |
|
$ |
12,670,000 |
|
Leverage Ratio |
|
|
|
|
Total debt |
|
$ |
12,670,000 |
|
Less: Cash and cash equivalents, short-term restricted cash and short-term investments |
|
|
(273,625 |
) |
Net debt |
|
$ |
12,396,375 |
|
Divided by: Annualized Adjusted EBITDA |
|
$ |
1,886,880 |
|
Leverage Ratio |
|
|
6.6 |
x |
Secured Leverage Ratio |
|
|
|
|
Total secured debt |
|
$ |
9,670,000 |
|
Less: Cash and cash equivalents, short-term restricted cash and short-term investments |
|
|
(273,625 |
) |
Net Secured Debt |
|
$ |
9,396,375 |
|
Divided by: Annualized Adjusted EBITDA |
|
$ |
1,886,880 |
|
Secured Leverage Ratio |
|
|
5.0 |
x |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230731795337/en/
Mark DeRussy, CFA
Capital Markets
561-226-9531
Lynne Hopkins
Media Relations
561-226-9431
Source: SBA Communications
