SBA Reports Steady and Expected 4Q Results for 2016

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SBA Communications (Nasdaq:SBAC) reported 4Q 2016 earnings yesterday that both the company and analysts found to be “solid.”

Highlights of SBA’s fourth quarter include:
-Repurchased 3.4 million shares
-Net income of $5.3 million or $0.04 per share
-AFFO per share growth of 14 percent over the year earlier period
-Grew the portfolio to over 26,000 communication sites

“We had a solid finish to 2016,” commented Jeffrey A. Stoops, President and CEO. “Domestic leasing activity was stable and very consistent with the first three quarters of 2016 in terms of new revenue contracted for per site. Internationally, we had a strong finish of leasing activity which was sequentially greater than the prior quarter. Against this solid leasing demand, we continued to execute very well, once again producing industry-leading tower cash flow and adjusted EBITDA margins. We were active investing capital in the quarter, increasing our portfolio to over 26,000 sites owned and repurchasing 3.4 million shares of our common stock. The combination of strong operational performance and sound capital allocation drove material gains in AFFO per share. We remain firmly on track to achieve our goal of $10 or more of AFFO per share in 2020.”

Market analyst Amir Rozwadowski of Barclays said the report showed “steady 4Q results which were broadly in-line with our forecasts.”  Leasing Revenues came in 0.3% above Barclays’ expectations while Site Development Revenues fell short.  “Adjusted EBITDA of $287M was ~0.8% above our estimate while AFFO per share of $1.63 came in $0.05 ahead of our estimate. The company noted steady organic leasing demand consistent with the level of demand experienced over the prior three quarters and commented that it remains ‘firmly on track’ to generate $10 or more in AFFO per share by 2020,” Rozwadowski said.

February 28, 2017

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