SBA Announces First Quarter Earnings For 2018

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“We are off to a very solid start to 2018,” commented Jeffrey A. Stoops, President and Chief Executive Officer. “Our first quarter financial results were strong across the board, and our operating margins continue to lead our industry. In the U.S., organic leasing activity was at the highest level it has been in years, and backlogs are also the highest they have been in several years. These activity levels should bode well for future financial results. Our international markets are also performing very well. In addition, we are actively allocating capital to both stock repurchases and portfolio growth. To fund that capital allocation, we intend to maintain our target net debt leverage range of 7.0x to 7.5x annualized adjusted EBITDA and we have already this year completed two successful debt financings to support that target range. We expect to again achieve our annual portfolio growth goal of 5% to 10% in 2018, with year-to-date activity giving us confidence that we will exceed the low end of the range.”

Barclays analyst Amir Rozwadowski found the results to be “better-than-expected.” However, Rozwadowski found 2018 guidance was largely left unchanged. “For 1Q18, leasing revenues of $430.5M exceeded our $417.6M estimate by 3.1%,” he said “while site development revenues of $27.8M were above our $25.8M expectation. Adjusted EBITDA of $318.8M was 4.8% above our $304.1M estimate, while AFFO per share of $1.85 was $0.10 above our $1.75 estimate. The company repurchased $38.5M of common stock during the quarter at an average price per share of $161.60 (equating to 0.2 million shares being retired during the quarter). As of today, the company had $700M of authorization under its new stock repurchase plan,” he said.

SBA Communications Corporation (Nasdaq: SBAC) yesterday reported results for the quarter ended March 31, 2018.

Highlights of the first quarter include:

  • Net income of $31.5 million or $0.27 per share
  • AFFO per share of $1.85
  • Added 400 sites to our portfolio during the quarter
  • Repurchased 1.8 million shares from January 1 through April 30, 2018
  • Completed expansion and refinancing of $3.65 billion Senior Credit Facility

May 1, 2018

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