SBA Communications Corporation Reports Second Quarter 2024 Results; Updates Full Year 2024 Outlook; and Declares Quarterly Cash Dividend
SBA Communications (Nasdaq: SBAC) reported its Q2 2024 results with net income of $159.5 million, or $1.51 per share, down 21% from $202.0 million in Q2 2023. Total revenues fell 2.7% to $660.5 million. Adjusted EBITDA slightly decreased by 1% to $467.1 million. Site leasing revenue remained almost flat at $626.5 million, while site development revenue dropped 35% to $34.0 million. AFFO per share increased 1.5% to $3.29. The company declared a quarterly cash dividend of $0.98 per share, payable on September 18, 2024. SBA ended the quarter with $12.4 billion of total debt and net debt to EBITDA leverage ratio of 6.4x. The company spent $91.6 million on capital expenditures and acquired 117 communication sites for $26.5 million. The full year 2024 outlook has been updated, anticipating continued growth based on customer network needs.
SBA Communications (Nasdaq: SBAC) ha riportato i risultati del secondo trimestre del 2024, con un utile netto di 159,5 milioni di dollari, ovvero 1,51 dollari per azione, in calo del 21% rispetto ai 202,0 milioni di dollari del secondo trimestre del 2023. I ricavi totali sono diminuiti del 2,7% a 660,5 milioni di dollari. Il EBITDA rettificato è leggermente calato dell'1% a 467,1 milioni di dollari. I ricavi da locazione dei siti sono rimasti quasi invariati a 626,5 milioni di dollari, mentre I ricavi dallo sviluppo dei siti sono scesi del 35% a 34,0 milioni di dollari. L'AFFO per azione è aumentato dell'1,5% a 3,29 dollari. L'azienda ha dichiarato un dividendo in contante trimestrale di 0,98 dollari per azione, che sarà pagato il 18 settembre 2024. SBA ha chiuso il trimestre con 12,4 miliardi di dollari di debito totale e un rapporto di indebitamento netto sull'EBITDA di 6,4x. L'azienda ha speso 91,6 milioni di dollari in spese capitoli e ha acquisito 117 siti di comunicazione per 26,5 milioni di dollari. Le prospettive per l'intero anno 2024 sono state aggiornate, prevedendo una continuazione della crescita basata sulle esigenze della rete dei clienti.
SBA Communications (Nasdaq: SBAC) reportó sus resultados para el segundo trimestre de 2024, con un ingreso neto de 159,5 millones de dólares, o 1,51 dólares por acción, una disminución del 21% respecto a los 202,0 millones de dólares del segundo trimestre de 2023. Los ingresos totales cayeron un 2,7% a 660,5 millones de dólares. El EBITDA ajustado disminuyó ligeramente un 1% a 467,1 millones de dólares. Los ingresos por arrendamiento de sitios se mantuvieron casi iguales en 626,5 millones de dólares, mientras que los ingresos por desarrollo de sitios cayeron un 35% a 34,0 millones de dólares. El AFFO por acción aumentó un 1,5% a 3,29 dólares. La empresa declaró un dividendo en efectivo trimestral de 0,98 dólares por acción, que se pagará el 18 de septiembre de 2024. SBA terminó el trimestre con 12,4 mil millones de dólares en deuda total y una relación de deuda neta sobre EBITDA de 6,4x. La empresa gastó 91,6 millones de dólares en gastos de capital y adquirió 117 sitios de comunicación por 26,5 millones de dólares. Las perspectivas para todo el año 2024 se han actualizado, anticipando un crecimiento continuo basado en las necesidades de red de los clientes.
SBA 커뮤니케이션즈(Nasdaq: SBAC)는 2024년 2분기 실적을 발표했으며, 순이익은 1억 5,950만 달러, 즉 주당 1.51달러로, 2023년 2분기에 비해 21% 감소했습니다(202백만 달러). 총 수익은 2.7% 감소하여 6억 6,050만 달러에 달했습니다. 조정 EBITDA는 1% 감소하여 4억 6,710만 달러로 집계되었습니다. 사이트 임대 수익은 거의 변동 없이 6억 2,650만 달러에 머물렀고, 사이트 개발 수익은 35% 감소하여 3,400만 달러로 떨어졌습니다. 주당 AFFO는 1.5% 증가하여 3.29달러였습니다. 회사는 주당 0.98달러의 분기 현금 배당금을 선언하였으며, 이는 2024년 9월 18일 지급될 예정입니다. SBA는 이번 분기를 마치고 총 124억 달러의 부채와 6.4배의 EBITDA 대비 순부채 비율을 기록하였습니다. 회사는 9,160만 달러를 자본 지출에 사용하였고, 2,650만 달러에 117개의 통신 사이트를 인수했습니다. 2024년 전체 올해 전망은 고객 네트워크 요구에 기반하여 지속적인 성장을 예상하며 업데이트되었습니다.
SBA Communications (Nasdaq: SBAC) a annoncé ses résultats pour le deuxième trimestre 2024, avec un résultat net de 159,5 millions de dollars, soit 1,51 dollar par action, en baisse de 21 % par rapport à 202,0 millions de dollars au deuxième trimestre 2023. Les revenus totaux ont chuté de 2,7 % pour atteindre 660,5 millions de dollars. L'EBITDA ajusté a légèrement diminué de 1 % pour atteindre 467,1 millions de dollars. Les revenus de location de sites sont restés presque stables à 626,5 millions de dollars, tandis que les revenus du développement de sites ont chuté de 35 % à 34,0 millions de dollars. L'AFFO par action a augmenté de 1,5 % pour atteindre 3,29 dollars. La société a déclaré un dividende trimestriel en espèces de 0,98 dollar par action, payable le 18 septembre 2024. SBA a terminé le trimestre avec une dette totale de 12,4 milliards de dollars et un ratio de dette nette à l'EBITDA de 6,4x. L'entreprise a dépensé 91,6 millions de dollars en dépenses d'investissement et a acquis 117 sites de communication pour 26,5 millions de dollars. Les prévisions pour l'année 2024 ont été mises à jour, anticipant une croissance continue basée sur les besoins des clients en matière de réseau.
SBA Communications (Nasdaq: SBAC) hat die Ergebnisse für das zweite Quartal 2024 veröffentlicht, mit einem Nettoergebnis von 159,5 Millionen US-Dollar bzw. 1,51 US-Dollar pro Aktie, was einem Rückgang von 21% im Vergleich zu 202,0 Millionen US-Dollar im zweiten Quartal 2023 entspricht. Die Gesamterlöse fielen um 2,7% auf 660,5 Millionen US-Dollar. Das bereinigte EBITDA ging leicht um 1% auf 467,1 Millionen US-Dollar zurück. Die Einnahmen aus Standortverpachtungen blieben nahezu konstant bei 626,5 Millionen US-Dollar, während die Einnahmen aus der Standortentwicklung um 35% auf 34,0 Millionen US-Dollar gesenkt wurden. Das AFFO pro Aktie stieg um 1,5% auf 3,29 US-Dollar. Das Unternehmen erklärte eine quartalsweise Bardividende von 0,98 US-Dollar pro Aktie, die am 18. September 2024 ausgezahlt wird. SBA endete das Quartal mit 12,4 Milliarden US-Dollar Gesamtverschuldung und einem Verhältnis von Nettoverschuldung zu EBITDA von 6,4x. Das Unternehmen investierte 91,6 Millionen US-Dollar in Investitionsausgaben und erwarb 117 Kommunikationsstandorte für 26,5 Millionen US-Dollar. Die Prognose für das gesamte Jahr 2024 wurde aktualisiert und es wird mit einem anhaltenden Wachstum auf Grundlage der Netzbedürfnisse der Kunden gerechnet.
- AFFO per share increased by 1.5% to $3.29.
- Declared a quarterly cash dividend of $0.98 per share.
- Repurchased 0.4 million shares for $93.9 million.
- Net Cash Interest Expense decreased by 6.3%.
- Net income decreased by 21% to $159.5 million.
- Total revenues fell by 2.7% to $660.5 million.
- Site development revenue dropped by 35% to $34.0 million.
- Adjusted EBITDA decreased by 1% to $467.1 million.
Insights
SBA Communications' Q2 2024 results present a mixed picture. While the company reported solid financial performance with net income of
The company's site leasing revenue remained relatively flat at
The significant drop in site development revenue (
On a positive note, SBA maintained strong margins with Tower Cash Flow Margin at
The reduction in Net Cash Interest Expense by
Overall, while SBA Communications maintains a strong market position, the flat revenue growth and declining site development business warrant close monitoring by investors.
SBA Communications' Q2 results reflect the current state of the telecommunications infrastructure market. The company's performance indicates a maturing domestic market with slowing growth, offset by potential opportunities in international markets.
The slight increase in domestic cash site leasing revenue (
The dramatic decline in site development revenue (
SBA's continued portfolio expansion, with 117 new sites acquired and 100 towers built in Q2, demonstrates a commitment to growth. The company's balanced approach to capital allocation, including stock repurchases and dividends, suggests confidence in its financial position despite market challenges.
The increase in AFFO per share (
Looking ahead, SBA's success will likely depend on its ability to capitalize on international opportunities, optimize its existing portfolio and adapt to changing carrier needs in an increasingly saturated market.
Highlights of the second quarter include:
-
Net income of
$159.5 million $1.51 -
Industry-leading AFFO per share of
$3.29 - Industry-leading Tower Cash Flow and Adjusted EBITDA margins
- Quarter-ending Net Debt to Annualized Adjusted EBITDA leverage ratio of 6.4x
In addition, the Company announced today that its Board of Directors has declared a quarterly cash dividend of
“We posted solid financial results for the second quarter in line with our expectations,” commented Brendan Cavanagh, President and Chief Executive Officer. “New business execution in the US continued at a similar pace to the levels we have experienced the last few quarters, and internationally we saw a pick-up in new leasing activity that will increase the full year revenue contribution from new leases and amendments. Across our markets mobile network operators continue to have meaningful network needs that we are confident will support continued investment for years to come. During the second quarter, we also continued a balanced approach to capital allocation with a mix of portfolio expansion, stock repurchases, dividends and debt reduction. We ended the quarter with a net debt to annualized Adjusted EBITDA leverage ratio of 6.4x and today have an outstanding balance of only
Operating Results
The table below details select financial results for the three months ended June 30, 2024 and comparisons to the prior year period.
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% Change |
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excluding |
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Q2 2024 |
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Q2 2023 |
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$ Change |
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% Change |
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FX (1) |
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Consolidated |
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($ in millions, except per share amounts) |
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Site leasing revenue |
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$ |
626.5 |
|
$ |
626.1 |
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$ |
0.4 |
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0.1 |
% |
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1.2 |
% |
||
Site development revenue |
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34.0 |
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52.4 |
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(18.4 |
) |
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(35.0 |
%) |
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(35.0 |
%) |
Tower cash flow (1) |
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503.9 |
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503.5 |
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0.4 |
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0.1 |
% |
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1.0 |
% |
Net income |
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159.5 |
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202.0 |
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(42.5 |
) |
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(21.0 |
%) |
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30.4 |
% |
Earnings per share - diluted |
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1.51 |
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1.87 |
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(0.36 |
) |
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(19.1 |
%) |
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32.3 |
% |
Adjusted EBITDA (1) |
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467.1 |
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471.7 |
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(4.6 |
) |
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(1.0 |
%) |
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(0.1 |
%) |
AFFO (1) |
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354.3 |
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352.7 |
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1.6 |
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0.4 |
% |
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1.5 |
% |
AFFO per share (1) |
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3.29 |
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3.24 |
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0.05 |
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1.5 |
% |
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2.8 |
% |
(1) |
See the reconciliations and other disclosures under “Non-GAAP Financial Measures” later in this press release. |
Total revenues in the second quarter of 2024 were
Site leasing operating profit in the second quarter of 2024 was
Tower Cash Flow in the second quarter of 2024 of
Net income in the second quarter of 2024 was
Adjusted EBITDA in the second quarter of 2024 was
Net Cash Interest Expense in the second quarter of 2024 was
AFFO in the second quarter of 2024 was
Investing Activities
During the second quarter of 2024, SBA acquired 117 communication sites for total cash consideration of
Subsequent to the second quarter of 2024, the Company purchased or is under contract to purchase 106 communication sites for an aggregate consideration of
Financing Activities and Liquidity
SBA ended the second quarter of 2024 with
As of the date of this press release, the Company had
As reported in the Company’s first quarter earnings release, in April of 2024, the Company repurchased 0.4 million shares of its Class A common stock for
In the second quarter of 2024, the Company declared and paid a cash dividend of
Outlook
The Company is updating its 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 which are expected to close prior to year-end 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 does not contemplate any additional repurchases of the Company’s stock or new debt financings during 2024 (other than the refinancing of the 2014-2C Tower Securities as discussed below), although the Company may ultimately spend capital to repurchase stock or issue new debt during the remainder of the year.
The Company’s Outlook assumes an average foreign currency exchange rate of 5.65 Brazilian Reais to
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Change from |
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Change from |
April 29, 2024 |
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April 29, 2024 |
Outlook |
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(in millions, except per share amounts) |
Full Year 2024 |
Outlook (8) |
Excluding FX |
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Site leasing revenue (1) |
$ |
2,507.0 |
to |
$ |
2,527.0 |
$ |
(10.0 |
) |
$ |
9.0 |
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||
Site development revenue |
$ |
135.0 |
to |
$ |
145.0 |
$ |
(10.0 |
) |
$ |
(10.0 |
) |
||
Total revenues |
$ |
2,642.0 |
to |
$ |
2,672.0 |
$ |
(20.0 |
) |
$ |
(1.0 |
) |
||
Tower Cash Flow (2) |
$ |
2,029.0 |
to |
$ |
2,049.0 |
$ |
(12.0 |
) |
$ |
2.0 |
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||
Adjusted EBITDA (2) |
$ |
1,876.0 |
to |
$ |
1,896.0 |
$ |
(13.0 |
) |
$ |
1.0 |
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||
Net cash interest expense (3)(4) |
$ |
357.5 |
to |
$ |
362.5 |
$ |
(5.5 |
) |
$ |
(5.0 |
) |
||
Non-discretionary cash capital expenditures (5) |
$ |
51.0 |
to |
$ |
61.0 |
$ |
— |
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$ |
— |
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AFFO (2) |
$ |
1,410.0 |
to |
$ |
1,450.0 |
$ |
(5.0 |
) |
$ |
8.5 |
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||
AFFO per share (2) (6) |
$ |
13.06 |
to |
$ |
13.43 |
$ |
(0.03 |
) |
$ |
0.09 |
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||
Discretionary cash capital expenditures (7) |
$ |
335.0 |
to |
$ |
355.0 |
$ |
— |
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$ |
6.5 |
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(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) |
For purposes of the Outlook, the Company has assumed that the |
(5) |
Consists of tower maintenance and general corporate capital expenditures. |
(6) |
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 108.0 million. Outlook does not include the impact of any potential future repurchases of the Company’s stock during 2024. |
(7) |
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. |
(8) |
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 29, 2024 at 5:00 PM (EDT) to discuss the quarterly results. The call may be accessed as follows:
When: |
Monday, July 29, 2024 at 5:00 PM (EDT) |
Dial-in Number: |
(877) 692-8955 |
Access Code: |
3722027 |
Conference Name: |
SBA Second quarter 2024 results |
Replay Available: |
July 29, 2024 at 11:00 PM to August 12, 2024 at 12:00 AM (TZ: Eastern) |
Replay Number: |
(866) 207-1041 – Access Code: 4132299 |
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 in 15 markets throughout the
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share amounts)
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For the three months |
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For the six months |
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ended June 30, |
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ended June 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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Revenues: |
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Site leasing |
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$ |
626,457 |
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$ |
626,143 |
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$ |
1,254,733 |
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$ |
1,243,411 |
|
Site development |
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34,020 |
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52,357 |
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63,606 |
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110,605 |
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Total revenues |
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660,477 |
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678,500 |
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1,318,339 |
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1,354,016 |
|
Operating expenses: |
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Cost of revenues (exclusive of depreciation, accretion, |
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and amortization shown below): |
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Cost of site leasing |
|
|
114,131 |
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|
115,014 |
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228,944 |
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235,133 |
|
Cost of site development |
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27,137 |
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|
39,236 |
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|
50,315 |
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|
83,421 |
|
Selling, general, and administrative expenses (1) |
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62,376 |
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|
63,383 |
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|
131,074 |
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|
135,592 |
|
Acquisition and new business initiatives related |
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adjustments and expenses |
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6,574 |
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|
4,953 |
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|
13,991 |
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|
11,010 |
|
Asset impairment and decommission costs |
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|
31,610 |
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|
32,867 |
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|
75,258 |
|
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|
59,257 |
|
Depreciation, accretion, and amortization |
|
|
64,179 |
|
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|
181,820 |
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|
140,929 |
|
|
|
364,235 |
|
Total operating expenses |
|
|
306,007 |
|
|
|
437,273 |
|
|
|
640,511 |
|
|
|
888,648 |
|
Operating income |
|
|
354,470 |
|
|
|
241,227 |
|
|
|
677,828 |
|
|
|
465,368 |
|
Other income (expense): |
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Interest income |
|
|
7,046 |
|
|
|
4,683 |
|
|
|
14,360 |
|
|
|
7,498 |
|
Interest expense |
|
|
(97,530 |
) |
|
|
(101,288 |
) |
|
|
(193,921 |
) |
|
|
(202,514 |
) |
Non-cash interest expense |
|
|
(7,080 |
) |
|
|
(7,518 |
) |
|
|
(15,523 |
) |
|
|
(21,757 |
) |
Amortization of deferred financing fees |
|
|
(4,932 |
) |
|
|
(5,044 |
) |
|
|
(10,221 |
) |
|
|
(10,032 |
) |
Loss from extinguishment of debt, net |
|
|
— |
|
|
|
— |
|
|
|
(4,428 |
) |
|
|
— |
|
Other (expense) income, net |
|
|
(104,859 |
) |
|
|
40,732 |
|
|
|
(149,511 |
) |
|
|
78,293 |
|
Total other expense, net |
|
|
(207,355 |
) |
|
|
(68,435 |
) |
|
|
(359,244 |
) |
|
|
(148,512 |
) |
Income before income taxes |
|
|
147,115 |
|
|
|
172,792 |
|
|
|
318,584 |
|
|
|
316,856 |
|
Benefit (provision) for income taxes |
|
|
12,337 |
|
|
|
29,178 |
|
|
|
(4,590 |
) |
|
|
(14,331 |
) |
Net income |
|
|
159,452 |
|
|
|
201,970 |
|
|
|
313,994 |
|
|
|
302,525 |
|
Net loss attributable to noncontrolling interests |
|
|
3,378 |
|
|
|
1,678 |
|
|
|
3,378 |
|
|
|
2,340 |
|
Net income attributable to SBA Communications |
|
|
|
|
|
|
|
|
||||||||
Corporation |
|
$ |
162,830 |
|
|
$ |
203,648 |
|
|
$ |
317,372 |
|
|
$ |
304,865 |
|
Net income per common share attributable to SBA |
|
|
|
|
|
|
|
|
||||||||
Communications Corporation: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
1.52 |
|
|
$ |
1.88 |
|
|
$ |
2.94 |
|
|
$ |
2.82 |
|
Diluted |
|
$ |
1.51 |
|
|
$ |
1.87 |
|
|
$ |
2.93 |
|
|
$ |
2.79 |
|
Weighted-average number of common shares |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
107,462 |
|
|
|
108,355 |
|
|
|
107,782 |
|
|
|
108,244 |
|
Diluted |
|
|
107,679 |
|
|
|
108,884 |
|
|
|
108,148 |
|
|
|
109,078 |
|
(1) |
Includes non-cash compensation of |
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par values)
|
||||||||
|
|
|||||||
|
|
June 30, |
|
December 31, |
||||
|
|
|
2024 |
|
|
|
2023 |
|
ASSETS |
|
(unaudited) |
|
|
||||
Current assets: |
|
|||||||
Cash and cash equivalents |
|
$ |
220,508 |
|
|
$ |
208,547 |
|
Restricted cash |
|
|
58,474 |
|
|
|
38,129 |
|
Accounts receivable, net |
|
|
88,650 |
|
|
|
182,746 |
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
|
|
19,810 |
|
|
|
16,252 |
|
Prepaid expenses and other current assets |
|
|
72,564 |
|
|
|
38,593 |
|
Total current assets |
|
|
460,006 |
|
|
|
484,267 |
|
Property and equipment, net |
|
|
2,719,810 |
|
|
|
2,711,719 |
|
Intangible assets, net |
|
|
2,314,238 |
|
|
|
2,455,597 |
|
Operating lease right-of-use assets, net |
|
|
2,129,244 |
|
|
|
2,240,781 |
|
Acquired and other right-of-use assets, net |
|
|
1,376,941 |
|
|
|
1,473,601 |
|
Other assets |
|
|
785,939 |
|
|
|
812,476 |
|
Total assets |
|
$ |
9,786,178 |
|
|
$ |
10,178,441 |
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, |
|
|
|
|
||||
AND SHAREHOLDERS' DEFICIT |
|
|
|
|
||||
Current Liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
50,738 |
|
|
$ |
42,202 |
|
Accrued expenses |
|
|
76,319 |
|
|
|
92,622 |
|
Current maturities of long-term debt |
|
|
1,806,304 |
|
|
|
643,145 |
|
Deferred revenue |
|
|
191,325 |
|
|
|
235,668 |
|
Accrued interest |
|
|
57,928 |
|
|
|
57,496 |
|
Current lease liabilities |
|
|
262,781 |
|
|
|
273,464 |
|
Other current liabilities |
|
|
14,170 |
|
|
|
18,662 |
|
Total current liabilities |
|
|
2,459,565 |
|
|
|
1,363,259 |
|
Long-term liabilities: |
|
|
|
|
||||
Long-term debt, net |
|
|
10,473,739 |
|
|
|
11,681,170 |
|
Long-term lease liabilities |
|
|
1,755,101 |
|
|
|
1,865,686 |
|
Other long-term liabilities |
|
|
373,697 |
|
|
|
404,161 |
|
Total long-term liabilities |
|
|
12,602,537 |
|
|
|
13,951,017 |
|
Redeemable noncontrolling interests |
|
|
40,817 |
|
|
|
35,047 |
|
Shareholders' deficit: |
|
|
|
|
||||
Preferred stock - par value |
|
|
— |
|
|
|
— |
|
Common stock - Class A, par value |
|
|
|
|
||||
108,050 shares issued and outstanding at June 30, 2024 and December 31, 2023, |
|
|
|
|
||||
respectively |
|
|
1,075 |
|
|
|
1,080 |
|
Additional paid-in capital |
|
|
2,930,332 |
|
|
|
2,894,060 |
|
Accumulated deficit |
|
|
(7,546,370 |
) |
|
|
(7,450,824 |
) |
Accumulated other comprehensive loss, net |
|
|
(701,778 |
) |
|
|
(615,198 |
) |
Total shareholders' deficit |
|
|
(5,316,741 |
) |
|
|
(5,170,882 |
) |
Total liabilities, redeemable noncontrolling interests, and shareholders' deficit |
|
$ |
9,786,178 |
|
|
$ |
10,178,441 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands)
|
||||||||
|
|
|
|
|
||||
|
|
For the three months |
||||||
|
|
ended June 30, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
||||
Net income |
|
$ |
159,452 |
|
|
$ |
201,970 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation, accretion, and amortization |
|
|
64,179 |
|
|
|
181,820 |
|
Loss (gain) on remeasurement of |
|
|
101,494 |
|
|
|
(43,336 |
) |
Non-cash compensation expense |
|
|
18,598 |
|
|
|
18,252 |
|
Non-cash asset impairment and decommission costs |
|
|
25,948 |
|
|
|
25,367 |
|
Deferred and non-cash income tax benefit |
|
|
(21,409 |
) |
|
|
(36,578 |
) |
Other non-cash items reflected in the Statements of Operations |
|
|
15,336 |
|
|
|
20,206 |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
||||
Accounts receivable and costs and estimated earnings in excess of |
|
|
|
|
||||
billings on uncompleted contracts, net |
|
|
29,266 |
|
|
|
40,463 |
|
Prepaid expenses and other assets |
|
|
(4,949 |
) |
|
|
(13,753 |
) |
Operating lease right-of-use assets, net |
|
|
35,351 |
|
|
|
37,774 |
|
Accounts payable and accrued expenses |
|
|
(2,980 |
) |
|
|
(15,600 |
) |
Accrued interest |
|
|
25,426 |
|
|
|
27,024 |
|
Long-term lease liabilities |
|
|
(35,968 |
) |
|
|
(34,492 |
) |
Other liabilities |
|
|
15,849 |
|
|
|
77,816 |
|
Net cash provided by operating activities |
|
|
425,593 |
|
|
|
486,933 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
||||
Acquisitions |
|
|
(41,617 |
) |
|
|
(19,808 |
) |
Capital expenditures |
|
|
(49,973 |
) |
|
|
(63,448 |
) |
Purchase investments, net |
|
|
(28,719 |
) |
|
|
(20,141 |
) |
Other investing activities |
|
|
(899 |
) |
|
|
(8,188 |
) |
Net cash used in investing activities |
|
|
(121,208 |
) |
|
|
(111,585 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
||||
Net repayments under Revolving Credit Facility |
|
|
(75,000 |
) |
|
|
(225,000 |
) |
Repurchase and retirement of common stock |
|
|
(93,862 |
) |
|
|
— |
|
Payment of dividends on common stock |
|
|
(105,329 |
) |
|
|
(92,137 |
) |
Other financing activities |
|
|
(2,332 |
) |
|
|
2,977 |
|
Net cash used in financing activities |
|
|
(276,523 |
) |
|
|
(314,160 |
) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
|
(9,050 |
) |
|
|
1,139 |
|
NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH |
|
|
18,812 |
|
|
|
62,327 |
|
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: |
|
|
|
|
||||
Beginning of period |
|
|
264,332 |
|
|
|
193,182 |
|
End of period |
|
$ |
283,144 |
|
|
$ |
255,509 |
|
|
||||||||
Selected Capital Expenditure Detail
|
|
For the three |
|
For the six |
||||
|
|
months ended |
|
months ended |
||||
|
|
June 30, 2024 |
|
June 30, 2024 |
||||
|
|
|
|
|
||||
|
|
(in thousands) |
||||||
Construction and related costs |
|
$ |
23,102 |
|
$ |
57,884 |
||
Augmentation and tower upgrades |
|
|
13,777 |
|
|
|
26,841 |
|
Non-discretionary capital expenditures: |
|
|
|
|
||||
Tower maintenance |
|
|
11,942 |
|
|
|
20,800 |
|
General corporate |
|
|
1,152 |
|
|
|
2,319 |
|
Total non-discretionary capital expenditures |
|
|
13,094 |
|
|
|
23,119 |
|
Total capital expenditures |
|
$ |
49,973 |
|
|
$ |
107,844 |
|
|
||||||||
Communication Site Portfolio Summary
|
|
Domestic |
|
International |
|
Total |
|||
|
|
|
|
|
|
|
|||
Sites owned at March 31, 2024 |
|
17,478 |
|
|
22,160 |
|
|
39,638 |
|
Sites acquired during the second quarter |
|
11 |
|
|
106 |
|
|
117 |
|
Sites built during the second quarter |
|
5 |
|
|
95 |
|
|
100 |
|
Sites decommissioned/reclassified/sold during the second quarter |
|
(33 |
) |
|
(78 |
) |
|
(111 |
) |
Sites owned at June 30, 2024 |
|
17,461 |
|
|
22,283 |
|
|
39,744 |
|
|
|||||||||
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, |
||||||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
(in thousands) |
||||||||||||||||||||||
Segment revenue |
|
$ |
463,204 |
|
|
$ |
456,754 |
|
|
$ |
163,253 |
|
|
$ |
169,389 |
|
|
$ |
34,020 |
|
|
$ |
52,357 |
|
Segment cost of revenues (excluding |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
depreciation, accretion, and amort.) |
|
|
(65,489 |
) |
|
|
(64,434 |
) |
|
|
(48,642 |
) |
|
|
(50,580 |
) |
|
|
(27,137 |
) |
|
|
(39,236 |
) |
Segment operating profit |
|
$ |
397,715 |
|
|
$ |
392,320 |
|
|
$ |
114,611 |
|
|
$ |
118,809 |
|
|
$ |
6,883 |
|
|
$ |
13,121 |
|
Segment operating profit margin |
|
|
85.9 |
% |
|
|
85.9 |
% |
|
|
70.2 |
% |
|
|
70.1 |
% |
|
|
20.2 |
% |
|
|
25.1 |
% |
|
||||||||||||||||||||||||
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 |
|
|
|
|
|
|
2024 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, |
||||||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
(in thousands) |
||||||||||||||||||||||
Site leasing revenue |
|
$ |
463,204 |
|
|
$ |
456,754 |
|
|
$ |
163,253 |
|
|
$ |
169,389 |
|
|
$ |
626,457 |
|
|
$ |
626,143 |
|
Non-cash straight-line leasing revenue |
|
|
(5,774 |
) |
|
|
(6,475 |
) |
|
|
308 |
|
|
|
(1,005 |
) |
|
|
(5,466 |
) |
|
|
(7,480 |
) |
Cash site leasing revenue |
|
|
457,430 |
|
|
|
450,279 |
|
|
|
163,561 |
|
|
|
168,384 |
|
|
|
620,991 |
|
|
|
618,663 |
|
Site leasing cost of revenues (excluding |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
depreciation, accretion, and amortization) |
|
|
(65,489 |
) |
|
|
(64,434 |
) |
|
|
(48,642 |
) |
|
|
(50,580 |
) |
|
|
(114,131 |
) |
|
|
(115,014 |
) |
Non-cash straight-line ground lease expense |
|
|
(3,701 |
) |
|
|
(814 |
) |
|
|
713 |
|
|
|
654 |
|
|
|
(2,988 |
) |
|
|
(160 |
) |
Tower Cash Flow |
|
$ |
388,240 |
|
|
$ |
385,031 |
|
|
$ |
115,632 |
|
|
$ |
118,458 |
|
|
$ |
503,872 |
|
|
$ |
503,489 |
|
Tower Cash Flow Margin |
|
|
84.9 |
% |
|
|
85.5 |
% |
|
|
70.7 |
% |
|
|
70.3 |
% |
|
|
81.1 |
% |
|
|
81.4 |
% |
|
||||||||||||||||||||||||
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 |
$ |
2,507.0 |
|
to |
$ |
2,527.0 |
|
Non-cash straight-line leasing revenue |
|
(8.5 |
) |
to |
|
(3.5 |
) |
Cash site leasing revenue |
|
2,498.5 |
|
to |
|
2,523.5 |
|
Site leasing cost of revenues (excluding |
|
|
|
||||
depreciation, accretion, and amortization) |
|
(455.0 |
) |
to |
|
(465.0 |
) |
Non-cash straight-line ground lease expense |
|
(14.5 |
) |
to |
|
(9.5 |
) |
Tower Cash Flow |
$ |
2,029.0 |
|
to |
$ |
2,049.0 |
|
|
|||||||
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, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
||||
|
|
(in thousands) |
||||||
Net income |
|
$ |
159,452 |
|
|
$ |
201,970 |
|
Non-cash straight-line leasing revenue |
|
|
(5,466 |
) |
|
|
(7,480 |
) |
Non-cash straight-line ground lease expense |
|
|
(2,988 |
) |
|
|
(160 |
) |
Non-cash compensation |
|
|
18,598 |
|
|
|
18,252 |
|
Other expense (income), net |
|
|
104,859 |
|
|
|
(40,732 |
) |
Acquisition and new business initiatives related adjustments and expenses |
|
|
6,574 |
|
|
|
4,953 |
|
Asset impairment and decommission costs |
|
|
31,610 |
|
|
|
32,867 |
|
Interest income |
|
|
(7,046 |
) |
|
|
(4,683 |
) |
Total interest expense (1) |
|
|
109,542 |
|
|
|
113,850 |
|
Depreciation, accretion, and amortization |
|
|
64,179 |
|
|
|
181,820 |
|
Benefit for taxes (2) |
|
|
(12,250 |
) |
|
|
(28,937 |
) |
Adjusted EBITDA |
|
$ |
467,064 |
|
|
$ |
471,720 |
|
Annualized Adjusted EBITDA (3) |
|
$ |
1,868,256 |
|
|
$ |
1,886,880 |
|
(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, 2024 and 2023, 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, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
||||
|
|
(in thousands) |
||||||
Total revenues |
|
$ |
660,477 |
|
|
$ |
678,500 |
|
Non-cash straight-line leasing revenue |
|
|
(5,466 |
) |
|
|
(7,480 |
) |
Total revenues minus non-cash straight-line leasing revenue |
|
$ |
655,011 |
|
|
$ |
671,020 |
|
Adjusted EBITDA |
|
$ |
467,064 |
|
|
$ |
471,720 |
|
Adjusted EBITDA Margin |
|
|
71.3 |
% |
|
|
70.3 |
% |
|
||||||||
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 |
$ |
768.5 |
|
to |
$ |
813.5 |
|
Non-cash straight-line leasing revenue |
|
(8.5 |
) |
to |
|
(3.5 |
) |
Non-cash straight-line ground lease expense |
|
(14.5 |
) |
to |
|
(9.5 |
) |
Non-cash compensation |
|
76.5 |
|
to |
|
71.5 |
|
Loss from extinguishment of debt, net |
|
4.5 |
|
to |
|
4.5 |
|
Other expense, net |
|
166.5 |
|
to |
|
166.5 |
|
Acquisition and new business initiatives related adjustments and |
|
|
|
||||
expenses |
|
27.5 |
|
to |
|
22.5 |
|
Asset impairment and decommission costs |
|
138.0 |
|
to |
|
133.0 |
|
Interest income |
|
(30.5 |
) |
to |
|
(25.5 |
) |
Total interest expense (1) |
|
446.5 |
|
to |
|
436.5 |
|
Depreciation, accretion, and amortization |
|
271.0 |
|
to |
|
261.0 |
|
Provision for taxes (2) |
|
30.5 |
|
to |
|
25.5 |
|
Adjusted EBITDA |
$ |
1,876.0 |
|
to |
$ |
1,896.0 |
|
(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, |
||||||||||||||
|
|
2024 |
|
2023 |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
(in thousands) |
|
($ per share) |
|
(in thousands) |
|
($ per share) |
||||||||
Net income |
|
$ |
159,452 |
|
|
$ |
1.48 |
|
|
$ |
201,970 |
|
|
$ |
1.85 |
|
Real estate related depreciation, amortization, and accretion |
|
|
62,213 |
|
|
|
0.58 |
|
|
|
180,118 |
|
|
|
1.65 |
|
Asset impairment and decommission costs |
|
|
31,610 |
|
|
|
0.29 |
|
|
|
32,867 |
|
|
|
0.30 |
|
FFO |
|
$ |
253,275 |
|
|
$ |
2.35 |
|
|
$ |
414,955 |
|
|
$ |
3.80 |
|
Adjustments to FFO: |
|
|
|
|
|
|
|
|
||||||||
Non-cash straight-line leasing revenue |
|
|
(5,466 |
) |
|
|
(0.05 |
) |
|
|
(7,480 |
) |
|
|
(0.07 |
) |
Non-cash straight-line ground lease expense |
|
|
(2,988 |
) |
|
|
(0.03 |
) |
|
|
(160 |
) |
|
|
— |
|
Non-cash compensation |
|
|
18,598 |
|
|
|
0.17 |
|
|
|
18,252 |
|
|
|
0.17 |
|
Adjustment for non-cash portion of tax benefit |
|
|
(21,409 |
) |
|
|
(0.20 |
) |
|
|
(36,578 |
) |
|
|
(0.34 |
) |
Non-real estate related depreciation, |
|
|
|
|
|
|
|
|
||||||||
amortization, and accretion |
|
|
1,966 |
|
|
|
0.02 |
|
|
|
1,702 |
|
|
|
0.02 |
|
Amortization of deferred financing costs and |
|
|
|
|
|
|
|
|
||||||||
debt discounts and non-cash interest expense |
|
|
12,012 |
|
|
|
0.11 |
|
|
|
12,562 |
|
|
|
0.12 |
|
Other expense (income), net |
|
|
104,859 |
|
|
|
0.98 |
|
|
|
(40,732 |
) |
|
|
(0.37 |
) |
Acquisition and new business initiatives related adjustments |
|
|
|
|
|
|
|
|
||||||||
and expenses |
|
|
6,574 |
|
|
|
0.06 |
|
|
|
4,953 |
|
|
|
0.05 |
|
Non-discretionary cash capital expenditures |
|
|
(13,094 |
) |
|
|
(0.12 |
) |
|
|
(14,734 |
) |
|
|
(0.14 |
) |
AFFO |
|
$ |
354,327 |
|
|
$ |
3.29 |
|
|
$ |
352,740 |
|
|
$ |
3.24 |
|
Adjustments for joint venture partner interest |
|
|
(1,251 |
) |
|
|
(0.01 |
) |
|
|
(1,829 |
) |
|
|
(0.02 |
) |
AFFO attributable to SBA Communications |
|
|
|
|
|
|
|
|
||||||||
Corporation |
|
$ |
353,076 |
|
|
$ |
3.28 |
|
|
$ |
350,911 |
|
|
$ |
3.22 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted weighted average number of common shares |
|
|
|
|
107,679 |
|
|
|
|
|
108,884 |
|
||||
|
||||||||||||||||
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 |
$ |
768.5 |
|
to |
$ |
813.5 |
|
$ |
7.12 |
|
to |
$ |
7.53 |
|
|
Real estate related depreciation, amortization, |
|
|
|
|
|
|
|||||||||
and accretion |
|
258.5 |
|
to |
|
253.5 |
|
|
2.39 |
|
to |
|
2.35 |
|
|
Asset impairment and decommission costs |
|
138.0 |
|
to |
|
133.0 |
|
|
1.28 |
|
to |
|
1.23 |
|
|
FFO |
$ |
1,165.0 |
|
to |
$ |
1,200.0 |
|
$ |
10.79 |
|
to |
$ |
11.11 |
|
|
Adjustments to FFO: |
|
|
|
|
|
|
|||||||||
Non-cash straight-line leasing revenue |
|
(8.5 |
) |
to |
|
(3.5 |
) |
|
(0.08 |
) |
to |
|
(0.03 |
) |
|
Non-cash straight-line ground lease expense |
|
(14.5 |
) |
to |
|
(9.5 |
) |
|
(0.13 |
) |
to |
|
(0.09 |
) |
|
Non-cash compensation |
|
76.5 |
|
to |
|
71.5 |
|
|
0.71 |
|
to |
|
0.66 |
|
|
Adjustment for non-cash portion of tax benefit |
|
(12.0 |
) |
to |
|
(12.0 |
) |
|
(0.11 |
) |
to |
|
(0.11 |
) |
|
Non-real estate related depreciation, |
|
|
|
|
|
|
|||||||||
amortization, and accretion |
|
12.5 |
|
to |
|
7.5 |
|
|
0.12 |
|
to |
|
0.07 |
|
|
Amortization of deferred financing costs and |
|
|
|
|
|
|
|||||||||
debt discounts and non-cash interest expense |
|
53.5 |
|
to |
|
53.5 |
|
|
0.50 |
|
to |
|
0.50 |
|
|
Loss from extinguishment of debt, net |
|
4.5 |
|
to |
|
4.5 |
|
|
0.04 |
|
to |
|
0.04 |
|
|
Other expense, net |
|
166.5 |
|
to |
|
166.5 |
|
|
1.54 |
|
to |
|
1.54 |
|
|
Acquisition and new business initiatives related |
|
|
|
|
|
|
|||||||||
adjustments and expenses |
|
27.5 |
|
to |
|
22.5 |
|
|
0.25 |
|
to |
|
0.21 |
|
|
Non-discretionary cash capital expenditures |
|
(61.0 |
) |
to |
|
(51.0 |
) |
|
(0.57 |
) |
to |
|
(0.47 |
) |
|
AFFO |
$ |
1,410.0 |
|
to |
$ |
1,450.0 |
|
$ |
13.06 |
|
to |
$ |
13.43 |
|
|
Adjustments for joint venture partner interest |
|
(5.0 |
) |
to |
|
(5.0 |
) |
|
(0.05 |
) |
to |
|
(0.05 |
) |
|
AFFO attributable to SBA Communications |
|
|
|
|
|
|
|||||||||
Corporation |
$ |
1,405.0 |
|
to |
$ |
1,445.0 |
|
$ |
13.01 |
|
to |
$ |
13.38 |
|
|
|
|
|
|
|
|
|
|||||||||
Diluted weighted average number of common shares (1) |
|
|
|
|
108.0 |
|
to |
|
108.0 |
|
|||||
(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:
|
June 30, |
||
|
2024 |
||
|
|
||
|
(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 |
|
120,000 |
|
2024 Term Loan |
|
2,294,250 |
|
Total secured debt |
|
9,354,250 |
|
2020 Senior Notes |
|
1,500,000 |
|
2021 Senior Notes |
|
1,500,000 |
|
Total unsecured debt |
|
3,000,000 |
|
Total debt |
$ |
12,354,250 |
|
Leverage Ratio |
|
||
Total debt |
$ |
12,354,250 |
|
Less: Cash and cash equivalents, short-term restricted cash and short-term investments |
|
(309,382 |
) |
Net debt |
$ |
12,044,868 |
|
Divided by: Annualized Adjusted EBITDA |
$ |
1,868,256 |
|
Leverage Ratio |
|
6.4x |
|
Secured Leverage Ratio |
|
||
Total secured debt |
$ |
9,354,250 |
|
Less: Cash and cash equivalents, short-term restricted cash and short-term investments |
|
(309,382 |
) |
Net Secured Debt |
$ |
9,044,868 |
|
Divided by: Annualized Adjusted EBITDA |
$ |
1,868,256 |
|
Secured Leverage Ratio |
|
4.8x |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240729410080/en/
Mark DeRussy, CFA
Capital Markets
561-226-9531
Lynne Hopkins
Media Relations
561-226-9431
Source: SBA Communications
FAQ
What were SBA Communications' earnings for Q2 2024?
What is SBA Communications' AFFO per share for Q2 2024?
How much did SBA Communications declare for its quarterly cash dividend?
What is SBA Communications' net debt to EBITDA leverage ratio as of June 30, 2024?
How much did SBA Communications spend on capital expenditures in Q2 2024?
