Company Announcements

SBA Communications Corporation Reports Second Quarter 2022 Results; Updates Full Year 2022 Outlook; and Declares Quarterly Cash Dividend

BOCA RATON, Fla.--(BUSINESS WIRE)--Aug. 1, 2022-- SBA Communications Corporation (Nasdaq: SBAC) ("SBA" or the "Company") today reported results for the quarter ended June 30, 2022.

Highlights of the second quarter include:

  • Net income of $69.2 million or $0.64 per share
  • AFFO per share increased 16.3% over the prior year period
  • Total revenue of $652.0 million, representing a 13.3% growth over the prior year period
  • Entered into an agreement to purchase approximately 2,600 sites in Brazil

In addition, the Company announced today that its Board of Directors has declared a quarterly cash dividend of $0.71 per share of the Company’s Class A Common Stock. The distribution is payable September 20, 2022 to the shareholders of record at the close of business on August 25, 2022.

“Our second-quarter performance was very strong,” stated Jeffrey Stoops, President and CEO. “Wireless carrier activity was, and remains, robust across most of our markets. In both leasing and services, we are extremely busy fulfilling the needs and requests of our customers as they continue to pursue a high level of network investment. Against this demand, we continue to execute very well. We achieved another record for US services revenue in the quarter. We believe domestic and international activity will remain strong into 2023 and perhaps beyond, given the size and scope of our customers’ 5G deployment plans. With respect to capital allocation, we continue to be very disciplined around target leverage levels, and very opportunistic as to allocating capital to portfolio growth or stock repurchases. Consistent with that approach, we have entered into an agreement to acquire approximately 2,600 additional towers in Brazil on terms that we believe are very attractive and will upon closing be immediately accretive to AFFO per share. The acquired towers will be very complementary to our existing towers in Brazil and we expect to integrate these assets smoothly, quickly and with no ongoing material incremental SG&A expense. As a result of these positive results, prospects and investment, we are increasing our 2022 Outlook across all key financial metrics.”

Operating Results

The table below details select financial results for the three months ended June 30, 2022 and comparisons to the prior year period.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

excluding

 

 

Q2 2022

 

Q2 2021

 

$ Change

 

% Change

 

FX (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

($ in millions, except per share amounts)

Site leasing revenue

 

$

580.2

 

$

524.1

 

$

56.1

 

 

 

10.7

%

 

 

10.1

%

Site development revenue

 

 

71.8

 

 

51.4

 

 

20.4

 

 

 

39.5

%

 

 

39.5

%

Tower cash flow (1)

 

 

459.6

 

 

421.2

 

 

38.4

 

 

 

9.1

%

 

 

8.5

%

Net income

 

 

69.2

 

 

152.7

 

 

(83.5

)

 

 

(54.7

%)

 

 

42.2

%

Earnings per share - diluted

 

 

0.64

 

 

1.37

 

 

(0.73

)

 

 

(53.3

%)

 

 

43.7

%

Adjusted EBITDA (1)

 

 

437.8

 

 

400.2

 

 

37.6

 

 

 

9.4

%

 

 

8.8

%

AFFO (1)

 

 

335.3

 

 

293.5

 

 

41.8

 

 

 

14.2

%

 

 

13.3

%

AFFO per share (1)

 

 

3.07

 

 

2.64

 

 

0.43

 

 

 

16.3

%

 

 

15.2

%

(1) See the reconciliations and other disclosures under “Non-GAAP Financial Measures” later in this press release.

Total revenues in the second quarter of 2022 were $652.0 million compared to $575.5 million in the prior year period, an increase of 13.3%. Site leasing revenue in the second quarter of 2022 of $580.2 million was comprised of domestic site leasing revenue of $442.1 million and international site leasing revenue of $138.1 million. Domestic cash site leasing revenue in the second quarter of 2022 was $431.8 million compared to $408.3 million in the prior year period, an increase of 5.8%. International cash site leasing revenue in the second quarter of 2022 was $138.6 million compared to $106.3 million in the prior year period, an increase of 30.4%, or 27.1% on a constant currency basis. Site development revenues in the second quarter of 2022 were $71.8 million compared to $51.4 million in the prior year period, an increase of 39.5%.

Site leasing operating profit in the second quarter of 2022 was $468.7 million, an increase of 9.3% over the prior year period. Site leasing contributed 96.4% of the Company’s total operating profit in the second quarter of 2022. Domestic site leasing segment operating profit in the second quarter of 2022 was $376.3 million, an increase of 6.0% over the prior year period. International site leasing segment operating profit in the second quarter of 2022 was $92.4 million, an increase of 25.1% from the prior year period.

Tower Cash Flow in the second quarter of 2022 of $459.6 million was comprised of Domestic Tower Cash Flow of $366.5 million and International Tower Cash Flow of $93.1 million. Domestic Tower Cash Flow in the second quarter of 2022 increased 5.9% over the prior year period and International Tower Cash Flow increased 23.7% over the prior year period, or increased 20.4% on a constant currency basis. Tower Cash Flow Margin was 80.6% in the second quarter of 2022, as compared to 81.9% for the prior year period.

Net income in the second quarter of 2022 was $69.2 million, or $0.64 per share, and included a $43.1 million loss, net of taxes, on the currency-related remeasurement of U.S. dollar denominated intercompany loans with foreign subsidiaries. Net income in the second quarter of 2021 was $152.7 million, or $1.37 per share, and included a $73.6 million gain, net of taxes, on the currency-related remeasurement of U.S. dollar denominated intercompany loans with foreign subsidiaries.

Adjusted EBITDA in the second quarter of 2022 was $437.8 million, a 9.4% increase over the prior year period. Adjusted EBITDA Margin in the second quarter of 2022 was 68.2% compared to 70.7% in the prior year period.

Net Cash Interest Expense in the second quarter of 2022 was $82.8 million compared to $90.0 million in the prior year period, a decrease of 8.0%.

AFFO in the second quarter of 2022 was $335.3 million, a 14.2% increase over the prior year period. AFFO per share in the second quarter of 2022 was $3.07, a 16.3% increase over the prior year period.

Investing Activities

During the second quarter of 2022, SBA acquired 210 communication sites and one data center in Brazil, for total cash consideration of $127.3 million. SBA also built 100 towers during the second quarter of 2022. As of June 30, 2022, SBA owned or operated 36,297 communication sites, 17,395 of which are located in the United States and its territories and 18,902 of which are located internationally. In addition, the Company spent $9.9 million to purchase land and easements and to extend lease terms. Total cash capital expenditures for the second quarter of 2022 were $191.4 million, consisting of $11.7 million of non-discretionary cash capital expenditures (tower maintenance and general corporate) and $179.7 million of discretionary cash capital expenditures (new tower builds, tower augmentations, acquisitions, and purchasing land and easements).

Subsequent to the second quarter of 2022, the Company purchased or is under contract to purchase approximately 200 communication sites for an aggregate consideration of $85.0 million in cash. The Company anticipates that these acquisitions will be consummated by the end of the fourth quarter of 2022. Additionally, the Company is under contract to purchase approximately 2,600 sites from Grupo TorreSur (GTS) in Brazil for $725.0 million, which is expected to close during the fourth quarter of 2022. The sites to be acquired in this transaction are anticipated to produce approximately $68.0 million of Tower Cash Flow during their first full year of operations after closing based on current estimates of future foreign currency exchange rates.

Financing Activities and Liquidity

SBA ended the second quarter of 2022 with $12.6 billion of total debt, $9.6 billion of total secured debt, $288.4 million of cash and cash equivalents, short-term restricted cash, and short-term investments, and $12.3 billion of Net Debt. SBA’s Net Debt and Net Secured Debt to Annualized Adjusted EBITDA Leverage Ratios were 7.0x and 5.3x, respectively.

As of the date of this press release, the Company had $480.0 million outstanding under its $1.5 billion Revolving Credit Facility.

The Company did not repurchase any shares of its Class A common stock during the second quarter of 2022. As of the date of this filing, the Company has $504.7 million of authorization remaining under its approved repurchase plan.

In the second quarter of 2022, the Company declared and paid a cash dividend of $76.6 million.

Outlook

The Company is updating its full year 2022 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 2022 Outlook assumes the acquisitions of only those communication sites under contract and anticipated to close at the time of this press release. The acquisition from GTS in Brazil is assumed to close on November 1, 2022, for purposes of the Outlook ranges provided. The Company may spend additional capital in 2022 on acquiring revenue producing assets not yet identified or under contract, the impact of which is not reflected in the 2022 guidance. The Outlook also does not contemplate any additional repurchases of the Company’s stock during 2022, although the Company may ultimately spend capital to repurchase additional stock during the remainder of the year.

The Company’s Outlook assumes an average foreign currency exchange rate of 5.35 Brazilian Reais to 1.0 U.S. Dollar, 1.29 Canadian Dollars to 1.0 U.S. Dollar, 2,330 Tanzanian shillings to 1.0 U.S. Dollar, and 16.70 South African Rand to 1.0 U.S. Dollar throughout the last two quarters of 2022.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change from

 

 

 

 

 

 

 

 

 

 

 

Change from

 

April 25, 2022

 

 

 

 

 

 

 

 

 

 

 

April 25, 2022

 

Outlook

(in millions, except per share amounts)

 

 

 

 

Full Year 2022

 

Outlook (7)

 

Excluding FX

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Site leasing revenue (1)

 

 

 

 

$

2,297.0

to

$

2,317.0

 

$

24.0

 

 

$

36.0

 

Site development revenue

 

 

 

 

$

260.0

to

$

280.0

 

$

40.0

 

 

$

40.0

 

Total revenues

 

 

 

 

$

2,557.0

to

$

2,597.0

 

$

64.0

 

 

$

76.0

 

Tower Cash Flow (2)

 

 

 

 

$

1,821.0

to

$

1,841.0

 

$

19.0

 

 

$

26.0

 

Adjusted EBITDA (2)

 

 

 

 

$

1,731.0

to

$

1,751.0

 

$

27.0

 

 

$

33.0

 

Net cash interest expense (3)

 

 

 

 

$

335.0

to

$

340.0

 

$

10.0

 

 

$

10.0

 

Non-discretionary cash capital expenditures (4)

 

 

 

 

$

46.0

to

$

56.0

 

$

(1.0

)

 

$

(1.0

)

AFFO (2)

 

 

 

 

$

1,300.0

to

$

1,340.0

 

$

14.0

 

 

$

20.0

 

AFFO per share (2) (5)

 

 

 

 

$

11.87

to

$

12.24

 

$

0.15

 

 

$

0.20

 

Discretionary cash capital expenditures (6)

 

 

 

 

$

1,410.0

to

$

1,430.0

 

$

795.0

 

 

$

801.0

 

(1)

The Company’s Outlook for site leasing revenue includes revenue associated with pass through reimbursable expenses.

(2)

See the reconciliation of this non-GAAP financial measure presented below under “Non-GAAP Financial Measures.”

(3)

Net cash interest expense is defined as interest expense less interest income. Net cash interest expense does not include amortization of deferred financing fees or non-cash interest expense.

(4)

Consists of tower maintenance and general corporate capital expenditures.

(5)

Outlook for AFFO per share is calculated by dividing the Company’s outlook for AFFO by an assumed weighted average number of diluted common shares of 109.5 million. Outlook does not include the impact of any potential future repurchases of the Company’s stock during 2022.

(6)

Consists of new tower builds, tower augmentations, communication site acquisitions and ground lease purchases. Does not include expenditures for acquisitions of revenue producing assets not under contract at the date of this press release.

(7)

Changes from prior outlook are measured based on the midpoint of outlook ranges provided.

Conference Call Information

SBA Communications Corporation will host a conference call on Monday, August 1, 2022 at 5:00 PM (EDT) to discuss the quarterly results. The call may be accessed as follows:

When:

Monday, August 1, 2022 at 5:00 PM (EDT)

Dial-in Number:

(877) 692-8955

Access Code:

3362526

Conference Name:

SBA Second quarter 2022 results

Replay Available:

August 1, 2022 at 11:00 PM to August 15, 2022 at 12:00 AM (TZ: Eastern)

Replay Number:

(866) 207-1041 – Access Code: 3252031

Internet Access:

www.sbasite.com

 

 

Information Concerning Forward-Looking Statements

This press release and our earnings call include forward-looking statements, including statements regarding the Company’s expectations or beliefs regarding (i) customer activity and demand for the Company’s wireless communications infrastructure into 2023 and beyond, both domestically and internationally, and the impact of customer 5G buildout and deployment plans, on such demand, (ii) the Company’s future capital allocation, (iii) the Company’s financial and operational performance in 2022, the assumptions it made and the drivers contributing to its updated full year guidance, (iv) the timing of closing for currently pending acquisitions, including the GTS acquisition, (v) the impact of the GTS acquisition, including future financial results from the GTS towers, the timing and ease of integration of such towers and that there will be no ongoing material incremental SG&A expense arising from such acquisition, and (vi) foreign exchange rates and their impact on the Company’s financial and operational guidance.

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 ability and willingness of wireless service providers to maintain or increase their capital expenditures; (2) the Company’s ability to identify and acquire sites at prices and upon terms that will provide accretive portfolio growth; (3) the Company’s ability to accurately identify and manage any risks associated with its acquired sites, to effectively integrate such sites into its business and to achieve the anticipated financial results; (4) the Company’s ability to secure and retain as many site leasing tenants as planned at anticipated lease rates; (5) the impact of continued consolidation among wireless service providers in the U.S. and internationally, including the impact of the completed T-Mobile and Sprint merger, on the Company’s leasing revenue; (6) the Company’s ability to successfully manage the risks associated with international operations, including risks associated with foreign currency exchange rates; (7) the Company’s ability to secure and deliver anticipated services business at contemplated margins; (8) the Company’s ability to maintain expenses and cash capital expenditures at appropriate levels for its business while seeking to attain its investment goals; (9) the Company’s ability to acquire land underneath towers on terms that are accretive; (10) the economic climate for the wireless communications industry in general and the wireless communications infrastructure providers in particular in the United States, Brazil, South Africa, Tanzania, and in other international markets; (11) the ability of Dish to compete as a nationwide carrier; (12) the Company’s ability to obtain future financing at commercially reasonable rates or at all; (13) the ability of the Company to achieve its long-term stock repurchases strategy, which will depend, among other things, on the trading price of the Company’s common stock, which may be positively or negatively impacted by the repurchase program, market and business conditions; (14) the Company’s ability to achieve the new builds targets included in its anticipated annual portfolio growth goals, which will depend, among other things, on obtaining zoning and regulatory approvals, weather, availability of labor and supplies and other factors beyond the Company’s control that could affect the Company’s ability to build additional towers in 2022; (15) the extent and duration of the impact of the COVID-19 pandemic on the global economy, on the Company’s business and results of operations, and on foreign currency exchange rates; and (16) the Company’s ability to meet its total portfolio growth, which will depend, in addition to the new build risks, on the availability of sufficient towers for sale to meet our targets, competition from third parties for such acquisitions and our ability to negotiate the terms of, and acquire, these potential tower portfolios on terms that meet our internal return criteria. With respect to its expectations regarding the ability to close pending acquisitions and its expectations with respect to the GTS acquisition, 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 2022 outlook assumes that the Company continues to qualify for treatment as a REIT for U.S. federal income tax purposes and that the Company’s business is currently operated in a manner that complies with the REIT rules and that it will be able to continue to comply with and conduct its business in accordance with such rules. In addition, these forward-looking statements and the information in this press release is qualified in its entirety by cautionary statements and risk factor disclosures contained in the Company’s Securities and Exchange Commission filings, including the Company’s Annual Report on Form 10-K filed with the Commission on March 1, 2022.

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 first choice provider and leading owner and operator of wireless communications infrastructure in North, Central, and South America, South Africa, the Philippines, and Tanzania. By “Building Better Wireless,” SBA generates revenue from two primary businesses – site leasing and site development services. The primary focus of the Company is the leasing of antenna space on its multi-tenant communication sites to a variety of wireless service providers under long-term lease contracts. For more information please visit: www.sbasite.com.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited) (in thousands, except per share amounts)

 

 

 

For the three months

 

For the six months

 

 

ended June 30,

 

ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenues:

 

 

 

 

 

 

 

 

Site leasing

 

$

580,233

 

 

$

524,095

 

 

$

1,139,665

 

 

$

1,029,197

 

Site development

 

 

71,773

 

 

 

51,433

 

 

 

132,111

 

 

 

95,069

 

Total revenues

 

 

652,006

 

 

 

575,528

 

 

 

1,271,776

 

 

 

1,124,266

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues (exclusive of depreciation, accretion,

 

 

 

 

 

 

 

 

 

 

 

 

and amortization shown below):

 

 

 

 

 

 

 

 

 

 

 

 

Cost of site leasing

 

 

111,515

 

 

 

95,350

 

 

 

218,670

 

 

 

190,718

 

Cost of site development

 

 

54,497

 

 

 

40,409

 

 

 

100,269

 

 

 

74,815

 

Selling, general, and administrative expenses (1)

 

 

63,274

 

 

 

53,945

 

 

 

125,398

 

 

 

105,546

 

Acquisition and new business initiatives related

 

 

 

 

 

 

 

 

 

 

 

 

adjustments and expenses

 

 

6,829

 

 

 

6,794

 

 

 

11,933

 

 

 

11,795

 

Asset impairment and decommission costs

 

 

8,521

 

 

 

3,797

 

 

 

17,033

 

 

 

8,700

 

Depreciation, accretion, and amortization

 

 

176,392

 

 

 

175,469

 

 

 

350,716

 

 

 

359,350

 

Total operating expenses

 

 

421,028

 

 

 

375,764

 

 

 

824,019

 

 

 

750,924

 

Operating income

 

 

230,978

 

 

 

199,764

 

 

 

447,757

 

 

 

373,342

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

1,517

 

 

 

547

 

 

 

4,020

 

 

 

1,179

 

Interest expense

 

 

(84,315

)

 

 

(90,544

)

 

 

(166,566

)

 

 

(180,639

)

Non-cash interest expense

 

 

(11,529

)

 

 

(11,812

)

 

 

(23,054

)

 

 

(23,615

)

Amortization of deferred financing fees

 

 

(4,922

)

 

 

(4,865

)

 

 

(9,804

)

 

 

(9,755

)

Loss from extinguishment of debt, net

 

 

 

 

 

(2,020

)

 

 

 

 

 

(13,672

)

Other (expense) income, net

 

 

(66,141

)

 

 

108,849

 

 

 

42,019

 

 

 

20,410

 

Total other (expense) income, net

 

 

(165,390

)

 

 

155

 

 

 

(153,385

)

 

 

(206,092

)

Income before income taxes

 

 

65,588

 

 

 

199,919

 

 

 

294,372

 

 

 

167,250

 

Benefit (provision) for income taxes

 

 

3,563

 

 

 

(47,250

)

 

 

(36,914

)

 

 

(26,328

)

Net income

 

 

69,151

 

 

 

152,669

 

 

 

257,458

 

 

 

140,922

 

Net loss attributable to noncontrolling interests

 

 

365

 

 

 

 

 

 

682

 

 

 

 

Net income attributable to SBA Communications

 

 

 

 

 

 

 

 

 

 

 

 

Corporation

 

$

69,516

 

 

$

152,669

 

 

$

258,140

 

 

$

140,922

 

Net income per common share attributable to SBA

 

 

 

 

 

 

 

 

 

 

 

 

Communications Corporation:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.64

 

 

$

1.40

 

 

$

2.39

 

 

$

1.29

 

Diluted

 

$

0.64

 

 

$

1.37

 

 

$

2.36

 

 

$

1.27

 

Weighted average number of common shares

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

107,850

 

 

 

109,412

 

 

 

107,966

 

 

 

109,441

 

Diluted

 

 

109,347

 

 

 

111,301

 

 

 

109,443

 

 

 

111,210

 

(1)

Includes non-cash compensation of $23,248 and $21,077 for the three months ended June 30, 2022 and 2021, respectively, and $47,364 and $40,661 for the six months ended June 30, 2022 and 2021, respectively.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par values)

 

 

 

June 30,

 

December 31,

 

 

2022

 

2021

ASSETS

 

(unaudited)

 

 

 

Current assets:

 

Cash and cash equivalents

 

$

183,067

 

 

$

367,278

 

Restricted cash

 

 

64,495

 

 

 

65,561

 

Accounts receivable, net

 

 

115,137

 

 

 

101,950

 

Costs and estimated earnings in excess of billings on uncompleted contracts

 

 

54,781

 

 

 

48,844

 

Prepaid expenses and other current assets

 

 

77,419

 

 

 

30,813

 

Total current assets

 

 

494,899

 

 

 

614,446

 

Property and equipment, net

 

 

2,677,983

 

 

 

2,575,487

 

Intangible assets, net

 

 

2,800,562

 

 

 

2,803,247

 

Operating lease right-of-use assets, net

 

 

2,355,881

 

 

 

2,268,470

 

Acquired and other right-of-use assets, net

 

 

1,002,785

 

 

 

964,405

 

Other assets

 

 

679,827

 

 

 

575,644

 

Total assets

 

$

10,011,937

 

 

$

9,801,699

 

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS,

 

 

 

 

 

 

AND SHAREHOLDERS' DEFICIT

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable

 

$

41,455

 

 

$

34,066

 

Accrued expenses

 

 

85,697

 

 

 

68,070

 

Current maturities of long-term debt

 

 

662,720

 

 

 

24,000

 

Deferred revenue

 

 

199,829

 

 

 

184,380

 

Accrued interest

 

 

50,841

 

 

 

49,096

 

Current lease liabilities

 

 

256,572

 

 

 

238,497

 

Other current liabilities

 

 

21,086

 

 

 

18,222

 

Total current liabilities

 

 

1,318,200

 

 

 

616,331

 

Long-term liabilities:

 

 

 

 

 

 

Long-term debt, net

 

 

11,817,504

 

 

 

12,278,694

 

Long-term lease liabilities

 

 

2,047,385

 

 

 

1,981,353

 

Other long-term liabilities

 

 

227,578

 

 

 

191,475

 

Total long-term liabilities

 

 

14,092,467

 

 

 

14,451,522

 

Redeemable noncontrolling interests

 

 

39,881

 

 

 

17,250

 

Shareholders' deficit:

 

 

 

 

 

 

Preferred stock - par value $0.01, 30,000 shares authorized, no shares issued or outstanding

 

 

 

 

 

 

Common stock - Class A, par value $0.01, 400,000 shares authorized, 107,872 shares and

 

 

 

 

 

 

108,956 shares issued and outstanding at June 30, 2022 and December 31, 2021,

 

 

 

 

 

 

respectively

 

 

1,079

 

 

 

1,089

 

Additional paid-in capital

 

 

2,717,963

 

 

 

2,681,347

 

Accumulated deficit

 

 

(7,531,180

)

 

 

(7,203,531

)

Accumulated other comprehensive loss, net

 

 

(626,473

)

 

 

(762,309

)

Total shareholders' deficit

 

 

(5,438,611

)

 

 

(5,283,404

)

Total liabilities, redeemable noncontrolling interests, and shareholders' deficit

 

$

10,011,937

 

 

$

9,801,699

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited) (in thousands)

 

 

 

For the three months

 

 

ended June 30,

 

 

2022

 

2021

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

$

69,151

 

 

$

152,669

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation, accretion, and amortization

 

 

176,392

 

 

 

175,469

 

Loss (gain) on remeasurement of U.S. denominated intercompany loans

 

 

63,716

 

 

 

(111,295

)

Non-cash compensation expense

 

 

23,900

 

 

 

21,643

 

Non-cash asset impairment and decommission costs

 

 

8,598

 

 

 

3,498

 

Loss from extinguishment of debt, net

 

 

 

 

 

2,020

 

Deferred income tax (benefit) provision

 

 

(11,250

)

 

 

40,996

 

Other non-cash items reflected in the Statements of Operations

 

 

19,067

 

 

 

20,416

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

 

 

Accounts receivable and costs and estimated earnings in excess of

 

 

 

 

 

 

billings on uncompleted contracts, net

 

 

1,734

 

 

 

11,105

 

Prepaid expenses and other assets

 

 

(12,604

)

 

 

(6,112

)

Operating lease right-of-use assets, net

 

 

35,498

 

 

 

27,130

 

Accounts payable and accrued expenses

 

 

3,938

 

 

 

7,766

 

Accrued interest

 

 

27,136

 

 

 

39,389

 

Long-term lease liabilities

 

 

(31,952

)

 

 

(28,379

)

Other liabilities

 

 

(1,209

)

 

 

(3,531

)

Net cash provided by operating activities

 

 

372,115

 

 

 

352,784

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Acquisitions

 

 

(138,397

)

 

 

(77,175

)

Capital expenditures

 

 

(52,963

)

 

 

(30,839

)

Purchase of investments, net

 

 

(38,823

)

 

 

 

Other investing activities

 

 

369

 

 

 

(156

)

Net cash used in investing activities

 

 

(229,814

)

 

 

(108,170

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Net repayments under Revolving Credit Facility

 

 

(150,000

)

 

 

(505,000

)

Proceeds from issuance of Tower Securities, net of fees

 

 

 

 

 

1,152,631

 

Repayment of Tower Securities

 

 

 

 

 

(760,000

)

Payment of dividends on common stock

 

 

(76,565

)

 

 

(63,481

)

Proceeds from employee stock purchase/stock option plans, net of taxes

 

 

9,011

 

 

 

25,125

 

Other financing activities

 

 

(6,700

)

 

 

(5,224

)

Net cash used in financing activities

 

 

(224,254

)

 

 

(155,949

)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

 

(3,507

)

 

 

7,960

 

NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

 

 

(85,460

)

 

 

96,625

 

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH:

 

 

 

 

 

 

Beginning of period

 

 

336,438

 

 

 

242,185

 

End of period

 

$

250,978

 

 

$

338,810

 

 

 

Selected Capital Expenditure Detail

 

 

For the three

 

For the six

 

 

months ended

 

months ended

 

 

June 30, 2022

 

June 30, 2022

 

 

 

 

 

 

 

 

 

(in thousands)

Construction and related costs

 

$

26,968

 

$

43,445

Augmentation and tower upgrades

 

 

14,258

 

 

23,532

Non-discretionary capital expenditures:

 

 

 

 

 

 

Tower maintenance

 

 

10,069

 

 

19,396

General corporate

 

 

1,668

 

 

4,598

Total non-discretionary capital expenditures

 

 

11,737

 

 

23,994

Total capital expenditures

 

$

52,963

 

$

90,971

Communication Site Portfolio Summary

 

 

 

 

 

 

 

 

 

Domestic

 

International

 

Total

 

 

 

 

 

 

 

Sites owned at March 31, 2022

 

17,363

 

 

18,654

 

 

36,017

 

Sites acquired during the second quarter

 

31

 

 

179

 

 

210

 

Sites built during the second quarter

 

2

 

 

98

 

 

100

 

Sites decommissioned/reclassified during the second quarter

 

(1

)

 

(29

)

 

(30

)

Sites owned at June 30, 2022

 

17,395

 

 

18,902

 

 

36,297

 

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,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

Segment revenue

 

$

442,084

 

 

$

418,829

 

 

$

138,149

 

 

$

105,266

 

 

$

71,773

 

 

$

51,433

 

Segment cost of revenues (excluding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

depreciation, accretion, and amort.)

 

 

(65,768

)

 

 

(63,948

)

 

 

(45,747

)

 

 

(31,402

)

 

 

(54,497

)

 

 

(40,409

)

Segment operating profit

 

$

376,316

 

 

$

354,881

 

 

$

92,402

 

 

$

73,864

 

 

$

17,276

 

 

$

11,024

 

Segment operating profit margin

 

 

85.1

%

 

 

84.7

%

 

 

66.9

%

 

 

70.2

%

 

 

24.1

%

 

 

21.4

%

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

 

 

 

 

 

 

2022 year

 

Foreign

 

Growth excluding

 

 

over year

 

currency

 

foreign

 

 

growth rate

 

impact

 

currency impact

 

 

 

 

 

 

 

Total site leasing revenue

 

10.7%

 

0.6%

 

10.1%

Total cash site leasing revenue

 

10.8%

 

0.6%

 

10.2%

Int'l cash site leasing revenue

 

30.4%

 

3.3%

 

27.1%

Total site leasing segment operating profit

 

9.3%

 

0.5%

 

8.8%

Int'l site leasing segment operating profit

 

25.1%

 

3.2%

 

21.9%

Total site leasing tower cash flow

 

9.1%

 

0.6%

 

8.5%

Int'l site leasing tower cash flow

 

23.7%

 

3.3%

 

20.4%

Net income

 

(54.7%)

 

(96.9%)

 

42.2%

Earnings per share - diluted

 

(53.3%)

 

(97.0%)

 

43.7%

Adjusted EBITDA

 

9.4%

 

0.6%

 

8.8%

AFFO

 

14.2%

 

0.9%

 

13.3%

AFFO per share

 

16.3%

 

1.1%

 

15.2%

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,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

Site leasing revenue

 

$

442,084

 

 

$

418,829

 

 

$

138,149

 

 

$

105,266

 

 

$

580,233

 

 

$

524,095

 

Non-cash straight-line leasing revenue

 

 

(10,267

)

 

 

(10,547

)

 

 

421

 

 

 

1,032

 

 

 

(9,846

)

 

 

(9,515

)

Cash site leasing revenue

 

 

431,817

 

 

 

408,282

 

 

 

138,570

 

 

 

106,298

 

 

 

570,387

 

 

 

514,580

 

Site leasing cost of revenues (excluding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

depreciation, accretion, and amortization)

 

 

(65,768

)

 

 

(63,948

)

 

 

(45,747

)

 

 

(31,402

)

 

 

(111,515

)

 

 

(95,350

)

Non-cash straight-line ground lease expense

 

 

413

 

 

 

1,594

 

 

 

308

 

 

 

413

 

 

 

721

 

 

 

2,007

 

Tower Cash Flow

 

$

366,462

 

 

$

345,928

 

 

$

93,131

 

 

$

75,309

 

 

$

459,593

 

 

$

421,237

 

Tower Cash Flow Margin

 

 

84.9

%

 

 

84.7

%

 

 

67.2

%

 

 

70.8

%

 

 

80.6

%

 

 

81.9

%

Forecasted Tower Cash Flow for Full Year 2022

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 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full Year 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

Site leasing revenue

 

 

 

 

$

2,297.0

 

to

$

2,317.0

 

Non-cash straight-line leasing revenue

 

 

 

 

 

(37.5

)

to

 

(32.5

)

Cash site leasing revenue

 

 

 

 

 

2,259.5

 

to

 

2,284.5

 

Site leasing cost of revenues (excluding

 

 

 

 

 

 

 

 

 

depreciation, accretion, and amortization)

 

 

 

 

 

(438.5

)

to

 

(448.5

)

Non-cash straight-line ground lease expense

 

 

 

 

 

 

to

 

5.0

 

Tower Cash Flow

 

 

 

 

$

1,821.0

 

to

$

1,841.0

 

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,

 

 

 

 

 

     

2022

 

2021

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

 

     

(in thousands)

Net income

 

     

$

69,151

 

 

$

152,669

 

Non-cash straight-line leasing revenue

 

     

 

(9,846

)

 

 

(9,515

)

Non-cash straight-line ground lease expense

 

     

 

721

 

 

 

2,007

 

Non-cash compensation

 

     

 

23,900

 

 

 

21,643

 

Loss from extinguishment of debt, net

 

     

 

 

 

 

2,020

 

Other expense (income), net

 

     

 

66,141

 

 

 

(108,849

)

Acquisition and new business initiatives related adjustments and expenses

 

     

 

6,829

 

 

 

6,794

 

Asset impairment and decommission costs

 

     

 

8,521

 

 

 

3,797

 

Interest income

 

     

 

(1,517

)

 

 

(547

)

Total interest expense (1)

 

     

 

100,766

 

 

 

107,221

 

Depreciation, accretion, and amortization

 

     

 

176,392

 

 

 

175,469

 

(Benefit) provision for taxes (2)

 

     

 

(3,302

)

 

 

47,485

 

Adjusted EBITDA

 

     

$

437,756

 

 

$

400,194

 

Annualized Adjusted EBITDA (3)

 

     

$

1,751,024

 

 

$

1,600,776

 

(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, 2022 and 2021, these amounts included $261 and $235, respectively, of franchise and gross receipts taxes reflected in the Statements of Operations in selling, general and administrative expenses.

(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,

 

 

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

Total revenues

 

 

 

 

$

652,006

 

 

$

575,528

 

Non-cash straight-line leasing revenue

 

 

 

 

 

(9,846

)

 

 

(9,515

)

Total revenues minus non-cash straight-line leasing revenue

 

 

 

 

$

642,160

 

 

$

566,013

 

Adjusted EBITDA

 

 

 

 

$

437,756

 

 

$

400,194

 

Adjusted EBITDA Margin

 

 

 

 

 

68.2

%

 

 

70.7

%

Forecasted Adjusted EBITDA for Full Year 2022

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 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full Year 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

Net income

 

 

 

 

$

439.5

 

to

$

484.5

 

Non-cash straight-line leasing revenue

 

 

 

 

 

(37.5

)

to

 

(32.5

)

Non-cash straight-line ground lease expense

 

 

 

 

 

 

to

 

5.0

 

Non-cash compensation

 

 

 

 

 

106.5

 

to

 

101.5

 

Other income, net

 

 

 

 

 

(14.0

)

to

 

(14.0

)

Acquisition and new business initiatives related adjustments and expenses

 

 

29.5

 

to

 

24.5

 

Asset impairment and decommission costs

 

 

 

 

 

36.5

 

to

 

31.5

 

Interest income

 

 

 

 

 

(9.5

)

to

 

(6.5

)

Total interest expense (1)

 

 

 

 

 

414.5

 

to

 

406.5

 

Depreciation, accretion, and amortization

 

 

 

 

 

707.5

 

to

 

697.5

 

Provision for taxes (2)

 

 

 

 

 

58.0

 

to

 

53.0

 

Adjusted EBITDA

 

 

 

 

$

1,731.0

 

to

$

1,751.0

 

(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 table below sets forth the reconciliations of FFO and AFFO to their most comparable GAAP measurement.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months

 

 

 

 

 

ended June 30,

(in thousands, except per share amounts)

 

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

$

69,151

 

 

$

152,669

 

Real estate related depreciation, amortization, and accretion

 

 

 

 

 

175,190

 

 

 

176,340

 

Asset impairment and decommission costs

 

 

 

 

 

8,521

 

 

 

3,797

 

FFO

 

 

 

 

$

252,862

 

 

$

332,806

 

Adjustments to FFO:

 

 

 

 

 

 

 

 

 

Non-cash straight-line leasing revenue

 

 

 

 

 

(9,846

)

 

 

(9,515

)

Non-cash straight-line ground lease expense

 

 

 

 

 

721

 

 

 

2,007

 

Non-cash compensation

 

 

 

 

 

23,900

 

 

 

21,643

 

Adjustment for non-cash portion of tax (benefit) provision

 

 

 

 

 

(11,250

)

 

 

40,991

 

Non-real estate related depreciation, amortization, and accretion

 

 

 

 

 

1,202

 

 

 

(871

)

Amortization of deferred financing costs and debt discounts

 

 

 

 

 

 

 

 

 

and non-cash interest expense

 

 

 

 

 

16,451

 

 

 

16,677

 

Loss from extinguishment of debt, net

 

 

 

 

 

 

 

 

2,020

 

Other expense (income), net

 

 

 

 

 

66,141

 

 

 

(108,849

)

Acquisition and new business initiatives related adjustments and expenses

 

 

6,829

 

 

 

6,794

 

Non-discretionary cash capital expenditures

 

 

 

 

 

(11,737

)

 

 

(10,198

)

AFFO

 

 

 

 

$

335,273

 

 

$

293,505

 

Adjustments for joint venture partner interest

 

 

 

 

 

(971

)

 

 

 

AFFO attributable to SBA Communications Corporation

 

 

 

 

$

334,302

 

 

$

293,505

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares (1)

 

 

 

 

 

109,347

 

 

 

111,301

 

 

 

 

 

 

 

 

 

 

 

AFFO per share

 

 

 

 

$

3.07

 

 

$

2.64

 

AFFO per share attributable to SBA Communications Corporation

 

 

 

 

$

3.06

 

 

$

2.64

 

(1)

For purposes of the AFFO per share calculation, the basic weighted average number of common shares has been adjusted to include the dilutive effect of stock options and restricted stock units.

Forecasted AFFO for the Full Year 2022

The table below sets forth the reconciliation of the forecasted AFFO and AFFO per share set forth in the Outlook section to its most comparable GAAP measurement for the full year 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions, except per share amounts)

 

 

 

 

Full Year 2022

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

$

439.5

 

to

$

484.5

 

Real estate related depreciation, amortization, and accretion

 

 

 

 

 

698.5

 

to

 

693.5

 

Asset impairment and decommission costs

 

 

 

 

 

36.5

 

to

 

31.5

 

FFO

 

 

 

 

$

1,174.5

 

to

$

1,209.5

 

Adjustments to FFO:

 

 

 

 

 

 

 

 

 

Non-cash straight-line leasing revenue

 

 

 

 

 

(37.5

)

to

 

(32.5

)

Non-cash straight-line ground lease expense

 

 

 

 

 

 

to

 

5.0

 

Non-cash compensation

 

 

 

 

 

106.5

 

to

 

101.5

 

Adjustment for non-cash portion of tax provision

 

 

 

 

 

23.0

 

to

 

23.0

 

Non-real estate related depreciation, amortization, and accretion

 

 

 

 

 

9.0

 

to

 

4.0

 

Amortization of deferred financing costs and debt discounts

 

 

 

 

 

 

 

 

 

and non-cash interest expense

 

 

 

 

 

65.0

 

to

 

65.0

 

Other income, net

 

 

 

 

 

(14.0

)

to

 

(14.0

)

Acquisition and new business initiatives related adjustments and expenses

 

 

29.5

 

to

 

24.5

 

Non-discretionary cash capital expenditures

 

 

 

 

 

(56.0

)

to

 

(46.0

)

AFFO

 

 

 

 

$

1,300.0

 

to

$

1,340.0

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares (1)

 

 

 

 

 

109.5

 

to

 

109.5

 

 

 

 

 

 

 

 

 

 

 

AFFO per share

 

 

 

 

$

11.87

 

to

$

12.24

 

(1)

Our assumption for weighted average number of common shares does not contemplate any additional repurchases of the Company’s stock during 2022.

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,

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

2014-2C Tower Securities

 

$

620,000

2018-1C Tower Securities

 

 

640,000

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

Revolving Credit Facility

 

 

530,000

2018 Term Loan

 

 

2,304,000

Total secured debt

 

 

9,564,000

2020 Senior Notes

 

 

1,500,000

2021 Senior Notes

 

 

1,500,000

Total unsecured debt

 

 

3,000,000

Total debt

 

$

12,564,000

Leverage Ratio

 

 

 

Total debt

 

$

12,564,000

Less: Cash and cash equivalents, short-term restricted cash and short-term investments

 

 

(288,360)

Net debt

 

$

12,275,640

Divided by: Annualized Adjusted EBITDA

 

$

1,751,024

Leverage Ratio

 

 

7.0x

Secured Leverage Ratio

 

 

 

Total secured debt

 

$

9,564,000

Less: Cash and cash equivalents, short-term restricted cash and short-term investments

 

 

(288,360)

Net Secured Debt

 

$

9,275,640

Divided by: Annualized Adjusted EBITDA

 

$

1,751,024

Secured Leverage Ratio

 

 

5.3x

 

Mark DeRussy, CFA
Capital Markets
561-226-9531

Lynne Hopkins
Media Relations
561-226-9431

Source: SBA Communications Corporation