SBA Announces First $500M Quarter, Initiates Cash Dividend

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SBA Communications Corporation (Nasdaq: SBAC) late yesterday reported results for the quarter ended June 30, 2019.

Highlights of the second quarter include:

  • Strong operating results in both the leasing and site development businesses
  • Net income of $32.0 million or $0.28 per share
  • AFFO per share growth of 15.8% over the year earlier period on a constant currency basis
  • Will increase investment in and consolidate Atlas Tower South Africa, adding approximately 900 sites and a substantial backlog of new tower builds
  • Increased 2019 Outlook for Revenue, TCF, Adjusted EBITDA and AFFO per share
  • In addition, the Company’s Board of Directors declared its first cash dividend of $0.37 per share of Class A common stock, payable September 25, 2019, to shareholders of record on August 28, 2019

“The second quarter was a special one for SBA, as it was the first in our history where we earned $500 million in revenue,” said Jeffrey Stoops, President and CEO. “We continued to see strong activity in both our leasing and services segments. Second quarter results ahead of our projections and expectations of continued strength in customer activity in the second half of 2019 have allowed us to increase our full year outlook for 2019. In the U.S., wireless customer activity remains very strong, as it has all year and we believe that strength will continue into 2020 as our customers remain on a multi-year path to provide 5G service. Given the most recent regulatory news related to the T-Mobile acquisition of Sprint, including date-certain 5G coverage requirements, it appears that substantial 5G network development will continue in the U.S. for many years to come from four, nationwide, facilities-based wireless carriers.”

“Given the strength of our operating results, financial condition and future prospects, management and our Board of Directors decided it was time for another milestone, the initiation of a cash dividend,” Stoops said. “We are very pleased to add a dividend to the tools we have to generate increasing value for our shareholders, and excited to look to the future as to the additional value we believe we can create.” 

Total revenues in the second quarter of 2019 were $500.1 million compared to $456.3 million in the year earlier period, an increase of 9.6%. Site leasing revenue in the quarter of $459.0 million was comprised of domestic site leasing revenue of $369.2 million and international site leasing revenue of $89.8 million. Domestic cash site leasing revenue was $366.7 million in the second quarter of 2019 compared to $343.5 million in the year earlier period, an increase of 6.8%. International cash site leasing revenue was $89.4 million in the second quarter of 2019 compared to $81.3 million in the year earlier period, an increase of 10.1%, or 16.8% excluding the impact of changes in foreign currency exchange rates.

Site leasing operating profit was $365.5 million, an increase of 8.7% over the year earlier period. Site leasing contributed 97.3% of the Company’s total operating profit in the second quarter of 2019. Domestic site leasing segment operating profit was $303.6 million, an increase of 8.8% over the year earlier period. International site leasing segment operating profit was $61.9 million, an increase of 8.2% over the year earlier period.

Tower Cash Flow for the second quarter of 2019 of $367.9 million was comprised of Domestic Tower Cash Flow of $306.0 million and International Tower Cash Flow of $61.9 million. Domestic Tower Cash Flow for the quarter increased 8.5% over the prior year period and International Tower Cash Flow increased 11.1% over the prior year period. Tower Cash Flow Margin was 80.7% for the second quarter of 2019, as compared to 79.5% for the year earlier period. 

July 30, 2019

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