SBA Communications Corporation Reports Third Quarter 2024 Results; Updates Full Year 2024 Outlook; and Declares Quarterly Cash Dividend
SBA Communications reported strong Q3 2024 results with net income of $255.9 million ($2.40 per share) and AFFO per share of $3.32. The company announced a significant expansion by agreeing to purchase over 7,000 communication sites in Central America from Millicom for approximately $975.0 million. These sites are expected to generate $129.0 million in revenues and $89.0 million in tower cash flow in their first full year. The company also issued $2.07 billion of Tower Securities at a 4.778% blended rate and declared a quarterly dividend of $0.98 per share. Total Q3 revenues were $667.6 million, with site leasing revenue at $625.7 million.
SBA Communications ha riportato risultati solidi per il terzo trimestre del 2024, con un utile netto di 255,9 milioni di dollari (2,40 dollari per azione) e un AFFO per azione di 3,32 dollari. L'azienda ha annunciato un'importante espansione, concordando l'acquisto di oltre 7.000 siti di comunicazione in America Centrale da Millicom per circa 975,0 milioni di dollari. Si prevede che questi siti genereranno 129,0 milioni di dollari di entrate e 89,0 milioni di dollari di flusso di cassa dalle torri nel loro primo anno completo. L'azienda ha anche emesso 2,07 miliardi di dollari in Titoli per Torri a un tasso misto del 4,778% e ha dichiarato un dividendo trimestrale di 0,98 dollari per azione. Le entrate complessive del terzo trimestre sono state di 667,6 milioni di dollari, con entrate da leasing dei siti pari a 625,7 milioni di dollari.
SBA Communications reportó resultados sólidos para el tercer trimestre de 2024, con un ingreso neto de 255,9 millones de dólares (2,40 dólares por acción) y un AFFO por acción de 3,32 dólares. La compañía anunció una expansión significativa al acordar la compra de más de 7.000 sitios de comunicación en Centroamérica de Millicom por aproximadamente 975,0 millones de dólares. Se espera que estos sitios generen 129,0 millones de dólares en ingresos y 89,0 millones de dólares en flujo de caja de torres en su primer año completo. La compañía también emitió 2,07 mil millones de dólares en Valores de Torres a una tasa combinada del 4,778% y declaró un dividendo trimestral de 0,98 dólares por acción. Los ingresos totales del tercer trimestre fueron de 667,6 millones de dólares, con ingresos por arrendamiento de sitios de 625,7 millones de dólares.
SBA 커뮤니케이션즈는 2024년 3분기 실적을 발표했으며, 순이익 2억 5,590만 달러 (주당 2.40 달러)와 주당 3.32 달러의 AFFO를 기록했습니다. 이 회사는 밀리콤으로부터 중미에 있는 7,000개 이상의 통신 사이트를 구매하는 계약을 체결하여 대략 9억 7,500만 달러에 달하는 중요한 확장을 발표했습니다. 이 사이트들은 첫 번째 완전 연도에 1억 2,900만 달러의 수익과 8,900만 달러의 타워 현금 흐름을 생성할 것으로 예상됩니다. 또한, 회사는 20억 7천만 달러의 타워 증권을 4.778%의 복합 금리로 발행했으며, 주당 0.98 달러의 분기 배당금을 선언했습니다. 3분기 총 수익은 6억 6,760만 달러로, 사이트 임대 수익이 6억 2,570만 달러를 기록했습니다.
SBA Communications a annoncé de bons résultats pour le troisième trimestre 2024, avec un revenu net de 255,9 millions de dollars (2,40 dollars par action) et un AFFO par action de 3,32 dollars. L'entreprise a annoncé une expansion significative en acceptant d'acheter plus de 7 000 sites de communication en Amérique Centrale à Millicom pour environ 975,0 millions de dollars. Ces sites devraient générer 129,0 millions de dollars de revenus et 89,0 millions de dollars de flux de trésorerie des tours au cours de leur première année complète. L'entreprise a également émis des Titres de Tours d'une valeur de 2,07 milliards de dollars à un taux mixte de 4,778% et a déclaré un dividende trimestriel de 0,98 dollar par action. Les revenus totaux du 3e trimestre s'élevaient à 667,6 millions de dollars, dont des revenus issus de la location de sites de 625,7 millions de dollars.
SBA Communications berichtete über starke Ergebnisse im 3. Quartal 2024 mit einem Nettogewinn von 255,9 Millionen Dollar (2,40 Dollar pro Aktie) und einem AFFO pro Aktie von 3,32 Dollar. Das Unternehmen kündigte eine bedeutende Expansion an, indem es vereinbarte, über 7.000 Kommunikationsstandorte in Mittelamerika von Millicom für etwa 975,0 Millionen Dollar zu kaufen. Es wird erwartet, dass diese Standorte im ersten vollen Jahr 129,0 Millionen Dollar Umsatz und 89,0 Millionen Dollar Tower Cashflow generieren. Das Unternehmen hat zudem Tower Securities im Wert von 2,07 Milliarden Dollar zu einem gemischten Zinssatz von 4,778% ausgegeben und eine vierteljährliche Dividende von 0,98 Dollar pro Aktie erklärt. Die gesamten Einnahmen im 3. Quartal beliefen sich auf 667,6 Millionen Dollar, wobei die Einnahmen aus Standortvermietungen bei 625,7 Millionen Dollar lagen.
- Net income increased 199.6% YoY to $255.9 million
- Strategic acquisition of 7,000+ sites expected to generate $129M in revenues
- Successful refinancing of $1.8B debt at lower rates
- Strong tower cash flow margin of 81.3%
- Total revenues decreased 2.2% YoY to $667.6 million
- Site development revenue declined 7.1% YoY to $41.9 million
- International site leasing revenue decreased 5.1% YoY
- Adjusted EBITDA decreased 2.0% YoY to $472.6 million
Insights
The Q3 results and acquisition announcement reveal significant developments for SBAC. The
The strategic acquisition of 7,000+ sites in Central America for
The company's successful refinancing of
However, Q3 showed slight declines in key metrics: site leasing revenue down
The Central American expansion represents a strategic pivot that significantly enhances SBAC's international footprint. The 15-year Master Lease Agreements with Millicom provide stable, long-term USD-denominated cash flows, reducing currency risk. The additional right to build 2,500 build-to-suit sites creates substantial growth potential.
The increased carrier activity in the US market, combined with solid international performance, positions SBAC well for 2025. The company's ability to secure financing at favorable rates (
The Tower Cash Flow margin of
Highlights of the third quarter include:
-
Net income of
or$255.9 million per share$2.40 -
Industry-leading AFFO per share of
$3.32 - Increased full year 2024 outlook across all key metrics
-
Issued
of Tower Securities at a blended effective rate of$2.07 billion 4.778% , more than1% below the previously estimated rate -
Entered into an agreement to purchase over 7,000 sites in
Central America from Millicom
Subsequent to the third quarter of 2024, SBA entered into an agreement to purchase over 7,000 communication sites in
In addition, the Company announced today that its Board of Directors has declared a quarterly cash dividend of
“We continued to execute well during the third quarter, producing operational and financial results in line with our expectations,” commented Brendan Cavanagh, President and Chief Executive Officer. “Carrier activity in the US increased from levels during the first half of the year, indicating a positive upward trajectory that we anticipate will carry through the balance of 2024 and into 2025. Leasing results across our international markets also remained very solid during the quarter, and our services business had its strongest quarter of the year in terms of both revenue and gross profit. Our positive results and momentum have allowed us to increase our full year outlook for all key financial metrics. During the quarter, we also made significant progress with regard to our balance sheet, refinancing
Operating Results
The table below details select financial results for the three months ended September 30, 2024 and comparisons to the prior year period.
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% Change |
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excluding |
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Q3 2024 |
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Q3 2023 |
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$ 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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$ |
625.7 |
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$ |
637.4 |
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$ |
(11.7 |
) |
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(1.8 |
%) |
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0.3 |
% |
Site development revenue |
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41.9 |
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45.1 |
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(3.2 |
) |
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(7.1 |
%) |
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(7.1 |
%) |
Tower cash flow (1) |
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507.6 |
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511.7 |
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(4.1 |
) |
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(0.8 |
%) |
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1.1 |
% |
Net income |
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255.9 |
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85.4 |
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170.5 |
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199.6 |
% |
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106.9 |
% |
Earnings per share - diluted |
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2.40 |
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0.80 |
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1.59 |
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198.4 |
% |
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109.3 |
% |
Adjusted EBITDA (1) |
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472.6 |
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482.1 |
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(9.5 |
) |
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(2.0 |
%) |
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(0.2 |
%) |
AFFO (1) |
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358.3 |
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364.1 |
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(5.8 |
) |
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(1.6 |
%) |
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0.7 |
% |
AFFO per share (1) |
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3.32 |
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3.34 |
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(0.02 |
) |
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(0.6 |
%) |
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1.8 |
% |
(1) |
See the reconciliations and other disclosures under “Non-GAAP Financial Measures” later in this press release. |
Total revenues in the third quarter of 2024 were
Site leasing operating profit in the third quarter of 2024 was
Tower Cash Flow in the third quarter of 2024 of
Net income in the third quarter of 2024 was
Adjusted EBITDA in the third quarter of 2024 was
Net Cash Interest Expense in the third quarter of 2024 was
AFFO in the third quarter of 2024 was
Investing Activities
During the third quarter of 2024, SBA acquired 51 communication sites for total cash consideration of
Subsequent to the third quarter of 2024, in addition to the sites under contract with Millicom, the Company purchased or is under contract to purchase 45 communication sites for an aggregate consideration of
Financing Activities and Liquidity
SBA ended the third quarter of 2024 with
During the third quarter of 2024, the Company, through its wholly owned subsidiary, SBA Senior Finance II, executed and priced an amendment to its Senior Credit Agreement to (1) reduce the stated rate of interest of the Initial Term Loans from, at SBA Senior Finance II’s election, the Base Rate plus 100 basis points or Term SOFR plus 200 basis points to, at SBA Senior Finance II’s election, the Base Rate plus 75 basis points or Term SOFR plus 175 basis points, and (2) amend certain other terms and conditions under the Senior Credit Agreement. This transaction was closed on October 2, 2024.
During the third quarter of 2024, the Company, through an existing trust, executed and priced
During the third quarter of 2024, the Company, through its wholly owned subsidiary, SBA Senior Finance II, entered into a forward-starting interest rate swap agreement for a portion of its 2024 Term Loan to swap
As of the date of this press release, the Company had no amount outstanding under its
The Company did not repurchase any shares of its Class A common stock during the third quarter of 2024. As of the date of this filing, the Company has
In the third 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, 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 |
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July 29, 2024 |
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July 29, 2024 |
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Outlook |
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(in millions, except per share amounts) |
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Full Year 2024 |
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Outlook (7) |
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Excluding FX |
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Site leasing revenue (1) |
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$ |
2,520.0 |
to |
$ |
2,530.0 |
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$ |
8.0 |
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$ |
5.5 |
|
Site development revenue |
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|
$ |
140.0 |
to |
$ |
150.0 |
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$ |
5.0 |
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$ |
5.0 |
|
Total revenues |
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|
$ |
2,660.0 |
to |
$ |
2,680.0 |
|
$ |
13.0 |
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$ |
10.5 |
|
Tower Cash Flow (2) |
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|
$ |
2,040.0 |
to |
$ |
2,050.0 |
|
$ |
6.0 |
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$ |
4.0 |
|
Adjusted EBITDA (2) |
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|
$ |
1,890.0 |
to |
$ |
1,900.0 |
|
$ |
9.0 |
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$ |
7.5 |
|
Net cash interest expense (3) |
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|
$ |
355.0 |
to |
$ |
361.0 |
|
$ |
(2.0 |
) |
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$ |
(2.0 |
) |
Non-discretionary cash capital expenditures (4) |
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|
$ |
51.0 |
to |
$ |
57.0 |
|
$ |
(2.0 |
) |
|
$ |
(2.0 |
) |
AFFO (2) |
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|
$ |
1,427.0 |
to |
$ |
1,454.0 |
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$ |
10.5 |
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$ |
8.5 |
|
AFFO per share (2) (5) |
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$ |
13.20 |
to |
$ |
13.45 |
|
$ |
0.09 |
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$ |
0.07 |
|
Discretionary cash capital expenditures (6) |
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$ |
490.0 |
to |
$ |
500.0 |
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$ |
150.0 |
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$ |
149.0 |
|
(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 108.1 million. Outlook does not include the impact of any potential future repurchases of the Company’s stock during 2024. |
(6) |
Consists of new tower builds, tower augmentations, communication site acquisitions and ground lease purchases. Does not include easements or payments to extend lease terms and expenditures for acquisitions of revenue producing assets not under contract at the date of this press release. |
(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, October 28, 2024 at 5:00 PM (EDT) to discuss the quarterly results. The call may be accessed as follows:
When: |
Monday, October 28, 2024 at 5:00 PM (ET) |
Dial-in Number: |
(877) 692-8955 |
Access Code: |
3722027 |
Conference Name: |
SBA Third quarter 2024 results |
Replay Available: |
October 28, 2024 at 11:00 PM to November 11, 2024 at 12:00 AM (TZ: Eastern) |
Replay Number: |
(866) 207-1041 – Access Code: 8723461 |
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 |
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(unaudited) (in thousands, except per share amounts) |
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For the three months |
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For the nine months |
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ended September 30, |
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ended September 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 |
|
$ |
625,697 |
|
|
$ |
637,440 |
|
|
$ |
1,880,430 |
|
|
$ |
1,880,851 |
|
Site development |
|
|
41,898 |
|
|
|
45,104 |
|
|
|
105,504 |
|
|
|
155,709 |
|
Total revenues |
|
|
667,595 |
|
|
|
682,544 |
|
|
|
1,985,934 |
|
|
|
2,036,560 |
|
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 |
|
|
117,948 |
|
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|
118,277 |
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|
|
346,893 |
|
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|
353,411 |
|
Cost of site development |
|
|
32,391 |
|
|
|
31,493 |
|
|
|
82,705 |
|
|
|
114,914 |
|
Selling, general, and administrative expenses (1) |
|
|
60,087 |
|
|
|
64,821 |
|
|
|
191,161 |
|
|
|
200,412 |
|
Acquisition and new business initiatives related |
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adjustments and expenses |
|
|
5,388 |
|
|
|
5,612 |
|
|
|
19,379 |
|
|
|
16,622 |
|
Asset impairment and decommission costs |
|
|
12,670 |
|
|
|
33,063 |
|
|
|
87,928 |
|
|
|
92,320 |
|
Depreciation, accretion, and amortization |
|
|
63,515 |
|
|
|
180,674 |
|
|
|
204,444 |
|
|
|
544,909 |
|
Total operating expenses |
|
|
291,999 |
|
|
|
433,940 |
|
|
|
932,510 |
|
|
|
1,322,588 |
|
Operating income |
|
|
375,596 |
|
|
|
248,604 |
|
|
|
1,053,424 |
|
|
|
713,972 |
|
Other income (expense): |
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Interest income |
|
|
6,999 |
|
|
|
5,266 |
|
|
|
21,359 |
|
|
|
12,765 |
|
Interest expense |
|
|
(95,711 |
) |
|
|
(99,322 |
) |
|
|
(289,632 |
) |
|
|
(301,835 |
) |
Non-cash interest expense |
|
|
(7,192 |
) |
|
|
(7,898 |
) |
|
|
(22,715 |
) |
|
|
(29,655 |
) |
Amortization of deferred financing fees |
|
|
(5,185 |
) |
|
|
(5,097 |
) |
|
|
(15,405 |
) |
|
|
(15,129 |
) |
Loss from extinguishment of debt, net |
|
|
— |
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|
— |
|
|
|
(4,428 |
) |
|
|
— |
|
Other income (expense), net |
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|
23,700 |
|
|
|
(48,330 |
) |
|
|
(125,811 |
) |
|
|
29,961 |
|
Total other expense, net |
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|
(77,389 |
) |
|
|
(155,381 |
) |
|
|
(436,632 |
) |
|
|
(303,893 |
) |
Income before income taxes |
|
|
298,207 |
|
|
|
93,223 |
|
|
|
616,792 |
|
|
|
410,079 |
|
Provision for income taxes |
|
|
(42,316 |
) |
|
|
(7,861 |
) |
|
|
(46,906 |
) |
|
|
(22,192 |
) |
Net income |
|
|
255,891 |
|
|
|
85,362 |
|
|
|
569,886 |
|
|
|
387,887 |
|
Net loss attributable to noncontrolling interests |
|
|
2,643 |
|
|
|
2,057 |
|
|
|
6,020 |
|
|
|
4,397 |
|
Net income attributable to SBA Communications |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporation |
|
$ |
258,534 |
|
|
$ |
87,419 |
|
|
$ |
575,906 |
|
|
$ |
392,284 |
|
Net income per common share attributable to SBA |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Communications Corporation: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
2.41 |
|
|
$ |
0.81 |
|
|
$ |
5.35 |
|
|
$ |
3.62 |
|
Diluted |
|
$ |
2.40 |
|
|
$ |
0.80 |
|
|
$ |
5.33 |
|
|
$ |
3.60 |
|
Weighted-average number of common shares |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
107,486 |
|
|
|
108,373 |
|
|
|
107,683 |
|
|
|
108,288 |
|
Diluted |
|
|
107,922 |
|
|
|
108,891 |
|
|
|
108,072 |
|
|
|
109,017 |
|
(1) |
Includes non-cash compensation of |
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(in thousands, except par values) |
||||||||
|
|
|
|
|
|
|
||
|
|
September 30, |
|
December 31, |
||||
|
|
2024 |
|
2023 |
||||
ASSETS |
|
(unaudited) |
|
|
|
|||
Current assets: |
|
|||||||
Cash and cash equivalents |
|
$ |
186,339 |
|
|
$ |
208,547 |
|
Restricted cash |
|
|
61,019 |
|
|
|
38,129 |
|
Accounts receivable, net |
|
|
111,018 |
|
|
|
182,746 |
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
|
|
24,742 |
|
|
|
16,252 |
|
Prepaid expenses and other current assets |
|
|
67,149 |
|
|
|
38,593 |
|
Total current assets |
|
|
450,267 |
|
|
|
484,267 |
|
Property and equipment, net |
|
|
2,783,921 |
|
|
|
2,711,719 |
|
Intangible assets, net |
|
|
2,492,360 |
|
|
|
2,455,597 |
|
Operating lease right-of-use assets, net |
|
|
2,322,890 |
|
|
|
2,240,781 |
|
Acquired and other right-of-use assets, net |
|
|
1,379,281 |
|
|
|
1,473,601 |
|
Other assets |
|
|
772,944 |
|
|
|
812,476 |
|
Total assets |
|
$ |
10,201,663 |
|
|
$ |
10,178,441 |
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, |
|
|
|
|
|
|
||
AND SHAREHOLDERS' DEFICIT |
|
|
|
|
|
|
||
Current Liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
54,438 |
|
|
$ |
42,202 |
|
Accrued expenses |
|
|
89,312 |
|
|
|
92,622 |
|
Current maturities of long-term debt |
|
|
23,000 |
|
|
|
643,145 |
|
Deferred revenue |
|
|
183,978 |
|
|
|
235,668 |
|
Accrued interest |
|
|
32,088 |
|
|
|
57,496 |
|
Current lease liabilities |
|
|
270,922 |
|
|
|
273,464 |
|
Other current liabilities |
|
|
14,105 |
|
|
|
18,662 |
|
Total current liabilities |
|
|
667,843 |
|
|
|
1,363,259 |
|
Long-term liabilities: |
|
|
|
|
|
|
||
Long-term debt, net |
|
|
12,296,479 |
|
|
|
11,681,170 |
|
Long-term lease liabilities |
|
|
1,930,943 |
|
|
|
1,865,686 |
|
Other long-term liabilities |
|
|
432,158 |
|
|
|
404,161 |
|
Total long-term liabilities |
|
|
14,659,580 |
|
|
|
13,951,017 |
|
Redeemable noncontrolling interests |
|
|
49,092 |
|
|
|
35,047 |
|
Shareholders' deficit: |
|
|
|
|
|
|
||
Preferred stock - par value |
|
|
— |
|
|
|
— |
|
Common stock - Class A, par value |
|
|
|
|
|
|
||
108,050 shares issued and outstanding at September 30, 2024 and December 31, 2023, |
|
|
|
|
|
|
||
respectively |
|
|
1,075 |
|
|
|
1,080 |
|
Additional paid-in capital |
|
|
2,941,520 |
|
|
|
2,894,060 |
|
Accumulated deficit |
|
|
(7,393,799 |
) |
|
|
(7,450,824 |
) |
Accumulated other comprehensive loss, net |
|
|
(723,648 |
) |
|
|
(615,198 |
) |
Total shareholders' deficit |
|
|
(5,174,852 |
) |
|
|
(5,170,882 |
) |
Total liabilities, redeemable noncontrolling interests, and shareholders' deficit |
|
$ |
10,201,663 |
|
|
$ |
10,178,441 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(unaudited) (in thousands) |
||||||||
|
|
|
|
|
|
|
||
|
|
For the three months |
||||||
|
|
ended September 30, |
||||||
|
|
2024 |
|
2023 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net income |
|
$ |
255,891 |
|
|
$ |
85,362 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation, accretion, and amortization |
|
|
63,515 |
|
|
|
180,674 |
|
Loss (gain) on remeasurement of |
|
|
(24,948 |
) |
|
|
46,516 |
|
Non-cash compensation expense |
|
|
16,373 |
|
|
|
21,374 |
|
Non-cash asset impairment and decommission costs |
|
|
9,063 |
|
|
|
29,284 |
|
Deferred and non-cash income tax provision (benefit) |
|
|
30,179 |
|
|
|
(1,204 |
) |
Other non-cash items reflected in the Statements of Operations |
|
|
16,878 |
|
|
|
17,242 |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
|
|
||
Accounts receivable and costs and estimated earnings in excess of |
|
|
|
|
|
|
||
billings on uncompleted contracts, net |
|
|
(27,079 |
) |
|
|
9,107 |
|
Prepaid expenses and other assets |
|
|
(11,327 |
) |
|
|
(5,513 |
) |
Operating lease right-of-use assets, net |
|
|
31,025 |
|
|
|
36,084 |
|
Accounts payable and accrued expenses |
|
|
16,799 |
|
|
|
6,247 |
|
Accrued interest |
|
|
(25,481 |
) |
|
|
(24,833 |
) |
Long-term lease liabilities |
|
|
(36,051 |
) |
|
|
(34,848 |
) |
Other liabilities |
|
|
(10,186 |
) |
|
|
(51,811 |
) |
Net cash provided by operating activities |
|
|
304,651 |
|
|
|
313,681 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Acquisitions |
|
|
(207,387 |
) |
|
|
(53,114 |
) |
Capital expenditures |
|
|
(64,756 |
) |
|
|
(61,393 |
) |
Proceeds from sale of investments, net |
|
|
4,180 |
|
|
|
20,369 |
|
Other investing activities |
|
|
(5,939 |
) |
|
|
(9,392 |
) |
Net cash used in investing activities |
|
|
(273,902 |
) |
|
|
(103,530 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Net borrowings (repayments) under Revolving Credit Facility |
|
|
40,000 |
|
|
|
(80,000 |
) |
Repurchase and retirement of common stock |
|
|
— |
|
|
|
(53,652 |
) |
Payment of dividends on common stock |
|
|
(105,344 |
) |
|
|
(92,131 |
) |
Other financing activities |
|
|
(569 |
) |
|
|
(4,993 |
) |
Net cash used in financing activities |
|
|
(65,913 |
) |
|
|
(230,776 |
) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
|
3,512 |
|
|
|
(2,800 |
) |
NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH |
|
|
(31,652 |
) |
|
|
(23,425 |
) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: |
|
|
|
|
|
|
||
Beginning of period |
|
|
283,144 |
|
|
|
255,509 |
|
End of period |
|
$ |
251,492 |
|
|
$ |
232,084 |
|
Selected Capital Expenditure Detail
|
|
|
|
|
|
|
|
|
For the three |
|
For the nine |
||
|
|
months ended |
|
months ended |
||
|
|
September 30, 2024 |
|
September 30, 2024 |
||
|
|
|
|
|
|
|
|
|
(in thousands) |
||||
Construction and related costs |
|
$ |
38,799 |
|
$ |
96,683 |
Augmentation and tower upgrades |
|
|
11,644 |
|
|
38,485 |
Non-discretionary capital expenditures: |
|
|
|
|
|
|
Tower maintenance |
|
|
12,992 |
|
|
33,792 |
General corporate |
|
|
1,321 |
|
|
3,640 |
Total non-discretionary capital expenditures |
|
|
14,313 |
|
|
37,432 |
Total capital expenditures |
|
$ |
64,756 |
|
$ |
172,600 |
Communication Site Portfolio Summary
|
|
|
|
|
|
|
|||
|
|
Domestic |
|
International |
|
Total |
|||
|
|
|
|
|
|
|
|||
Sites owned at June 30, 2024 |
|
17,461 |
|
|
22,283 |
|
|
39,744 |
|
Sites acquired during the third quarter |
|
38 |
|
|
13 |
|
|
51 |
|
Sites built during the third quarter |
|
9 |
|
|
138 |
|
|
147 |
|
Sites decommissioned/reclassified/sold during the third quarter |
|
(31 |
) |
|
(149 |
) |
|
(180 |
) |
Sites owned at September 30, 2024 |
|
17,477 |
|
|
22,285 |
|
|
39,762 |
|
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 September 30, |
|
ended September 30, |
|
ended September 30, |
||||||||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
(in thousands) |
||||||||||||||||||||||
Segment revenue |
|
$ |
464,860 |
|
|
$ |
468,371 |
|
|
$ |
160,837 |
|
|
$ |
169,069 |
|
|
$ |
41,898 |
|
|
$ |
45,104 |
|
Segment cost of revenues (excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
depreciation, accretion, and amort.) |
|
|
(68,908 |
) |
|
|
(66,768 |
) |
|
|
(49,040 |
) |
|
|
(51,509 |
) |
|
|
(32,391 |
) |
|
|
(31,493 |
) |
Segment operating profit |
|
$ |
395,952 |
|
|
$ |
401,603 |
|
|
$ |
111,797 |
|
|
$ |
117,560 |
|
|
$ |
9,507 |
|
|
$ |
13,611 |
|
Segment operating profit margin |
|
|
85.2 |
% |
|
|
85.7 |
% |
|
|
69.5 |
% |
|
|
69.5 |
% |
|
|
22.7 |
% |
|
|
30.2 |
% |
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.
|
|
|
|
|
|
|
|
|
Third 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 September 30, |
|
ended September 30, |
|
ended September 30, |
||||||||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
(in thousands) |
||||||||||||||||||||||
Site leasing revenue |
|
$ |
464,860 |
|
|
$ |
468,371 |
|
|
$ |
160,837 |
|
|
$ |
169,069 |
|
|
$ |
625,697 |
|
|
$ |
637,440 |
|
Non-cash straight-line leasing revenue |
|
|
(1,004 |
) |
|
|
(7,371 |
) |
|
|
(61 |
) |
|
|
323 |
|
|
|
(1,065 |
) |
|
|
(7,048 |
) |
Cash site leasing revenue |
|
|
463,856 |
|
|
|
461,000 |
|
|
|
160,776 |
|
|
|
169,392 |
|
|
|
624,632 |
|
|
|
630,392 |
|
Site leasing cost of revenues (excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
depreciation, accretion, and amortization) |
|
|
(68,908 |
) |
|
|
(66,768 |
) |
|
|
(49,040 |
) |
|
|
(51,509 |
) |
|
|
(117,948 |
) |
|
|
(118,277 |
) |
Non-cash straight-line ground lease expense |
|
|
(873 |
) |
|
|
(1,062 |
) |
|
|
1,818 |
|
|
|
634 |
|
|
|
945 |
|
|
|
(428 |
) |
Tower Cash Flow |
|
$ |
394,075 |
|
|
$ |
393,170 |
|
|
$ |
113,554 |
|
|
$ |
118,517 |
|
|
$ |
507,629 |
|
|
$ |
511,687 |
|
Tower Cash Flow Margin |
|
|
85.0 |
% |
|
|
85.3 |
% |
|
|
70.6 |
% |
|
|
70.0 |
% |
|
|
81.3 |
% |
|
|
81.2 |
% |
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 |
|
|
|
|
$ |
2,520.0 |
|
to |
$ |
2,530.0 |
|
Non-cash straight-line leasing revenue |
|
|
|
|
|
(11.5 |
) |
to |
|
(6.5 |
) |
Cash site leasing revenue |
|
|
|
|
|
2,508.5 |
|
to |
|
2,523.5 |
|
Site leasing cost of revenues (excluding |
|
|
|
|
|
|
|
|
|
||
depreciation, accretion, and amortization) |
|
|
|
|
|
(457.0 |
) |
to |
|
(467.0 |
) |
Non-cash straight-line ground lease expense |
|
|
|
|
|
(11.5 |
) |
to |
|
(6.5 |
) |
Tower Cash Flow |
|
|
|
|
$ |
2,040.0 |
|
to |
$ |
2,050.0 |
|
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 September 30, |
||||||
|
|
2024 |
|
2023 |
||||
|
|
|
|
|
|
|
||
|
|
(in thousands) |
||||||
Net income |
|
$ |
255,891 |
|
|
$ |
85,362 |
|
Non-cash straight-line leasing revenue |
|
|
(1,065 |
) |
|
|
(7,048 |
) |
Non-cash straight-line ground lease expense |
|
|
945 |
|
|
|
(428 |
) |
Non-cash compensation |
|
|
16,373 |
|
|
|
21,374 |
|
Other (income) expense, net |
|
|
(23,700 |
) |
|
|
48,330 |
|
Acquisition and new business initiatives related adjustments and expenses |
|
|
5,388 |
|
|
|
5,612 |
|
Asset impairment and decommission costs |
|
|
12,670 |
|
|
|
33,063 |
|
Interest income |
|
|
(6,999 |
) |
|
|
(5,266 |
) |
Total interest expense (1) |
|
|
108,088 |
|
|
|
112,317 |
|
Depreciation, accretion, and amortization |
|
|
63,515 |
|
|
|
180,674 |
|
Provision for taxes (2) |
|
|
41,514 |
|
|
|
8,141 |
|
Adjusted EBITDA |
|
$ |
472,620 |
|
|
$ |
482,131 |
|
Annualized Adjusted EBITDA (3) |
|
$ |
1,890,480 |
|
|
$ |
1,928,524 |
|
(1) |
Total interest expense includes interest expense, non-cash interest expense, and amortization of deferred financing fees. |
(2) |
For the three months ended September 30, 2024 this amount includes |
(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 September 30, |
||||||
|
|
2024 |
|
|
2023 |
|
||
|
|
|
|
|
|
|
||
|
|
(in thousands) |
||||||
Total revenues |
|
$ |
667,595 |
|
|
$ |
682,544 |
|
Non-cash straight-line leasing revenue |
|
|
(1,065 |
) |
|
|
(7,048 |
) |
Total revenues minus non-cash straight-line leasing revenue |
|
$ |
666,530 |
|
|
$ |
675,496 |
|
Adjusted EBITDA |
|
$ |
472,620 |
|
|
$ |
482,131 |
|
Adjusted EBITDA Margin |
|
|
70.9 |
% |
|
|
71.4 |
% |
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 |
|
$ |
765.5 |
|
to |
$ |
800.5 |
|
Non-cash straight-line leasing revenue |
|
|
(11.5 |
) |
to |
|
(6.5 |
) |
Non-cash straight-line ground lease expense |
|
|
(11.5 |
) |
to |
|
(6.5 |
) |
Non-cash compensation |
|
|
76.0 |
|
to |
|
71.0 |
|
Loss from extinguishment of debt, net |
|
|
4.5 |
|
to |
|
4.5 |
|
Other expense, net |
|
|
166.0 |
|
to |
|
166.0 |
|
Acquisition and new business initiatives related adjustments and |
|
|
|
|
|
|
||
expenses |
|
|
27.5 |
|
to |
|
22.5 |
|
Asset impairment and decommission costs |
|
|
120.5 |
|
to |
|
115.5 |
|
Interest income |
|
|
(43.5 |
) |
to |
|
(38.5 |
) |
Total interest expense (1) |
|
|
457.5 |
|
to |
|
447.5 |
|
Depreciation, accretion, and amortization |
|
|
277.0 |
|
to |
|
267.0 |
|
Provision for taxes (2) |
|
|
62.0 |
|
to |
|
57.0 |
|
Adjusted EBITDA |
|
$ |
1,890.0 |
|
to |
$ |
1,900.0 |
|
(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 September 30, |
||||||||||||||
|
|
2024 |
|
2023 |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
(in thousands) |
|
($ per share) |
|
(in thousands) |
|
($ per share) |
||||||||
Net income |
|
$ |
255,891 |
|
|
$ |
2.37 |
|
|
$ |
85,362 |
|
|
$ |
0.78 |
|
Real estate related depreciation, amortization, and accretion |
|
|
61,993 |
|
|
|
0.57 |
|
|
|
179,076 |
|
|
|
1.64 |
|
Asset impairment and decommission costs |
|
|
12,670 |
|
|
|
0.12 |
|
|
|
33,063 |
|
|
|
0.30 |
|
FFO |
|
$ |
330,554 |
|
|
$ |
3.06 |
|
|
$ |
297,501 |
|
|
$ |
2.72 |
|
Adjustments to FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-cash straight-line leasing revenue |
|
|
(1,065 |
) |
|
|
(0.01 |
) |
|
|
(7,048 |
) |
|
|
(0.06 |
) |
Non-cash straight-line ground lease expense |
|
|
945 |
|
|
|
0.01 |
|
|
|
(428 |
) |
|
|
— |
|
Non-cash compensation |
|
|
16,373 |
|
|
|
0.15 |
|
|
|
21,374 |
|
|
|
0.20 |
|
Adjustment for non-cash portion of tax provision (benefit) |
|
|
30,179 |
|
|
|
0.28 |
|
|
|
(1,205 |
) |
|
|
(0.01 |
) |
Non-real estate related depreciation, |
|
|
|
|
|
|
|
|
|
|
|
|
||||
amortization, and accretion |
|
|
1,522 |
|
|
|
0.01 |
|
|
|
1,598 |
|
|
|
0.01 |
|
Amortization of deferred financing costs and |
|
|
|
|
|
|
|
|
|
|
|
|
||||
debt discounts and non-cash interest expense |
|
|
12,377 |
|
|
|
0.11 |
|
|
|
12,995 |
|
|
|
0.12 |
|
Other (income) expense, net |
|
|
(23,700 |
) |
|
|
(0.21 |
) |
|
|
48,330 |
|
|
|
0.44 |
|
Acquisition and new business initiatives related adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
and expenses |
|
|
5,388 |
|
|
|
0.05 |
|
|
|
5,612 |
|
|
|
0.05 |
|
Non-discretionary cash capital expenditures |
|
|
(14,313 |
) |
|
|
(0.13 |
) |
|
|
(14,678 |
) |
|
|
(0.13 |
) |
AFFO |
|
$ |
358,260 |
|
|
$ |
3.32 |
|
|
$ |
364,051 |
|
|
$ |
3.34 |
|
Adjustments for joint venture partner interest |
|
|
(1,553 |
) |
|
|
(0.01 |
) |
|
|
(1,217 |
) |
|
|
(0.01 |
) |
AFFO attributable to SBA Communications |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporation |
|
$ |
356,707 |
|
|
$ |
3.31 |
|
|
$ |
362,834 |
|
|
$ |
3.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted weighted average number of common shares |
|
|
|
|
|
107,922 |
|
|
|
|
|
|
108,891 |
|
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 |
|
$ |
765.5 |
|
to |
$ |
800.5 |
|
|
$ |
7.08 |
|
to |
$ |
7.41 |
|
Real estate related depreciation, amortization, |
|
|
|
|
|
|
|
|
|
|
|
|
||||
and accretion |
|
|
263.0 |
|
to |
|
258.0 |
|
|
|
2.43 |
|
to |
|
2.39 |
|
Asset impairment and decommission costs |
|
|
120.5 |
|
to |
|
115.5 |
|
|
|
1.11 |
|
to |
|
1.07 |
|
FFO |
|
$ |
1,149.0 |
|
to |
$ |
1,174.0 |
|
|
$ |
10.62 |
|
to |
$ |
10.87 |
|
Adjustments to FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-cash straight-line leasing revenue |
|
|
(11.5 |
) |
to |
|
(6.5 |
) |
|
|
(0.11 |
) |
to |
|
(0.06 |
) |
Non-cash straight-line ground lease expense |
|
|
(11.5 |
) |
to |
|
(6.5 |
) |
|
|
(0.11 |
) |
to |
|
(0.06 |
) |
Non-cash compensation |
|
|
76.0 |
|
to |
|
71.0 |
|
|
|
0.70 |
|
to |
|
0.66 |
|
Adjustment for non-cash portion of tax provision |
|
|
17.0 |
|
to |
|
17.0 |
|
|
|
0.16 |
|
to |
|
0.16 |
|
Non-real estate related depreciation, |
|
|
|
|
|
|
|
|
|
|
|
|
||||
amortization, and accretion |
|
|
14.0 |
|
to |
|
9.0 |
|
|
|
0.13 |
|
to |
|
0.08 |
|
Amortization of deferred financing costs and |
|
|
|
|
|
|
|
|
|
|
|
|
||||
debt discounts and non-cash interest expense |
|
|
53.0 |
|
to |
|
54.0 |
|
|
|
0.49 |
|
to |
|
0.50 |
|
Loss from extinguishment of debt, net |
|
|
4.5 |
|
to |
|
4.5 |
|
|
|
0.04 |
|
to |
|
0.04 |
|
Other expense, net |
|
|
166.0 |
|
to |
|
166.0 |
|
|
|
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 |
|
|
(57.0 |
) |
to |
|
(51.0 |
) |
|
|
(0.51 |
) |
to |
|
(0.49 |
) |
AFFO |
|
$ |
1,427.0 |
|
to |
$ |
1,454.0 |
|
|
$ |
13.20 |
|
to |
$ |
13.45 |
|
Adjustments for joint venture partner interest |
|
|
(6.0 |
) |
to |
|
(6.0 |
) |
|
|
(0.06 |
) |
to |
|
(0.06 |
) |
AFFO attributable to SBA Communications |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporation |
|
$ |
1,421.0 |
|
to |
$ |
1,448.0 |
|
|
$ |
13.14 |
|
to |
$ |
13.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted weighted average number of common shares (1) |
|
|
|
|
|
|
|
|
108.1 |
|
to |
|
108.1 |
|
(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:
|
|
|
|
|
|
|
September 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 |
|
|
160,000 |
|
2024 Term Loan |
|
|
2,288,500 |
|
Total secured debt |
|
|
9,388,500 |
|
2020 Senior Notes |
|
|
1,500,000 |
|
2021 Senior Notes |
|
|
1,500,000 |
|
Total unsecured debt |
|
|
3,000,000 |
|
Total debt |
|
$ |
12,388,500 |
|
Leverage Ratio |
|
|
|
|
Total debt |
|
$ |
12,388,500 |
|
Less: Cash and cash equivalents, short-term restricted cash and short-term investments |
|
|
(263,603 |
) |
Net debt |
|
$ |
12,124,897 |
|
Divided by: Annualized Adjusted EBITDA |
|
$ |
1,890,480 |
|
Leverage Ratio |
|
|
6.4x |
|
Secured Leverage Ratio |
|
|
|
|
Total secured debt |
|
$ |
9,388,500 |
|
Less: Cash and cash equivalents, short-term restricted cash and short-term investments |
|
|
(263,603 |
) |
Net Secured Debt |
|
$ |
9,124,897 |
|
Divided by: Annualized Adjusted EBITDA |
|
$ |
1,890,480 |
|
Secured Leverage Ratio |
|
|
4.8x |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241028810261/en/
Mark DeRussy, CFA
Capital Markets
561-226-9531
Lynne Hopkins
Media Relations
561-226-9431
Source: SBA Communications
FAQ
What was SBA Communications (SBAC) net income for Q3 2024?
How many sites is SBAC acquiring from Millicom and for what price?
What was SBAC's tower cash flow margin in Q3 2024?