SBA Reports Q2 Earnings

SBA Communications Corporation (Nasdaq:SBAC) yesterday reported results for the quarter ended June 30, 2017.

Highlights of the second quarter include:

  • Increased Full Year Outlook
  • Net income of $9.2 million or $0.08 per share
  • AFFO per share growth of 17 percent over the year earlier period, excluding the impact of the 2016 Oil reserve
  • Repurchased 1.9 million shares through July 31, 2017

“The second quarter was another steady one for SBA,” commented President/CEO Jeffrey Stoops. “U.S. leasing activity was up over the second quarter of last year as well as sequentially from the first quarter, while international leasing activity remained steady. Portfolio growth was also up in the second quarter over first quarter levels, reflecting timing of opportunities.”

“Supplementing increased portfolio growth was a resumption of a healthy amount of stock repurchases, consistent with our long-stated goal of keeping our balance sheet fully invested to target levels,” continued Stoops. “With substantial spectrum and 5G deployments on the horizon in both the U.S. and internationally, we expect customer demand to remain solid for years to come. Against that demand, we intend to continue to execute well and we expect to continue to favor allocating capital to portfolio growth and stock repurchases. We continue to remain on track to achieve our long term goal of $10 or more of AFFO per share in 2020.” 

Operating Results

The table below details select financial results for the three months ended June 30, 2017 and the quarter over quarter comparisons.

Total revenues in the second quarter of 2017 were $427.3 million compared to $405.5 million in the year earlier period, an increase of 5.4 percent. Site leasing revenue in the second quarter of $403 million was comprised of domestic site leasing revenue of $325.3 million and international site leasing revenue of $77.7 million. Domestic cash site leasing revenue was $325 million in Q2 of 2017 compared to $312.8 million in the year earlier period, an increase of 3.9 percent. International cash site leasing revenue was $73.8 million in the second quarter of 2017 compared to $60.3 million in the year earlier period, an increase of 22.5 percent.

Site leasing operating profit was $313.7 million, an increase of 6.2 percent over the year earlier period. Site leasing contributed 98.7 percent of the company’s total operating profit in the second quarter of 2017. Domestic site leasing segment operating profit was $260.1 million, an increase of 3.8 percent over the year earlier period. International site leasing segment operating profit was $53.6 million, an increase of 19.9 percent over the year earlier period.

Tower cash flow for the second quarter of 2017 of $317.2 million was comprised of domestic tower cash flow of $266.5 million and international tower cash flow of $50.7 million. Domestic tower cash flow for the quarter increased 4.3 percent over the prior year period and international tower cash flow increased 23.9 percent over the prior year period. Tower cash flow margin was 79.5 percent and 79.4 percent for the second quarter of 2017 and 2016, respectively.

August 1, 2017       

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