SBA Communications Corporation (Nasdaq: SBAC) yesterday reported results for the quarter ended June 30, 2021. In addition, the company announced that its Board of Directors has declared a quarterly cash dividend of $0.58 per share of the company’s Class A Common Stock. The distribution is payable September 23, 2021 to the shareholders of record at the close of business on August 26, 2021.
“Our second-quarter performance was our best in quite some time,” said Jeffrey Stoops, President and CEO. “U.S. wireless carrier activity increased substantially in the quarter. Domestically, we produced record services revenue, we had the highest revenue added per tower based on signed leases and amendments since 2014, and our leasing and services backlogs were at multi-year highs at quarter end.”
Stoops said while this increased leasing activity will benefit SBA’s reported 2021 revenue, the majority of the incremental revenue will begin to be recognized in 2022. Based on its backlogs and conversations with customers, they expect elevated leasing activities to continue through 2022 and perhaps beyond.
“All of our U.S. wireless carrier customers are actively engaged in building out their 5G networks and we are committed and have the resources to help them achieve their goals,” Stoops said.
Total revenues in the second quarter of 2021 were $575.5 million compared to $507.2 million in the prior year period, an increase of 13.5 percent. Site leasing revenue in the second quarter of 2021 of $524.1 million consisted of domestic site leasing revenue of $418.8 million and international site leasing revenue of $105.3 million.
Domestic cash site leasing revenue in the second quarter of 2021 was $408.3 million compared to $387.1 million in the prior year period, an increase of 5.5 percent. International cash site leasing revenue in the second quarter of 2021 was $106.3 million compared to $95.0 million in the prior year period, an increase of 11.9 percent. Site development revenues in the second quarter of 2021 were $51.4 million compared to $24.8 million in the prior year period, an increase of 107.2 percent.
Site leasing operating profit in the second quarter of 2021 was $428.8 million, an increase of 9.7 percent over the prior year period. Site leasing contributed 97.5 percent of the Company’s total operating profit in the second quarter of 2021. Domestic site leasing segment operating profit in the second quarter of 2021 was $354.9 million, an increase of 9.6 percent over the prior year period. International site leasing segment operating profit in the second quarter of 2021 was $73.9 million, an increase of 10.4 percent from the prior year period.
Tower Cash Flow in the second quarter of 2021 of $421.2 million consisted of Domestic Tower Cash Flow of $345.9 million and International Tower Cash Flow of $75.3 million. Domestic Tower Cash Flow in the second quarter of 2021 increased 6.0 percent over the prior year period and International Tower Cash Flow increased 10.9 percent over the prior year period, or increased 7.4 percent on a constant currency basis. Tower Cash Flow Margin was 81.9 percent in the second quarter of 2021, as compared to 81.8 percent for the prior year period.
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. Net income in the second quarter of 2020 was $22.8 million, or $0.20 per share, and included a $20.4 million loss, net of taxes, on the currency-related remeasurement of U.S. dollar denominated intercompany loans with foreign subsidiaries.
“Internationally, our second quarter leasing results improved over the first quarter, even though a number of our international markets have not yet returned to pre-pandemic levels of activity,” Stoops said. “The highlight of our second quarter international activities was the announcement of our entry into Tanzania with a proven partner and a very favorable price of entry. We are confident that our Tanzania investment will create additional shareholder value.”
Adjusted EBITDA in the second quarter of 2021 was $400.2 million, an 8.5 percent increase over the prior year period. Adjusted EBITDA Margin in the second quarter of 2021 was 70.7 percent compared to 72.8 percent in the prior year period.
Subsequent to the second quarter of 2021, the company purchased or agreed to purchase approximately 1,800 communication sites for an aggregate consideration of approximately $270.0 million in cash, including approximately 1,400 sites and approximately $175.0 million in cash relating to the previously announced deal to acquire towers from Airtel Tanzania. The company anticipates that the majority of these acquisitions will be consummated by the end of the first quarter of 2022.
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