SBA Communications Corporation (NASDAQ: SBAC) yesterday reported results for the quarter ended June 30, 2022. Total revenues in the second quarter of 2022 were $652.0 million compared to $575.5 million in the prior year period, an increase of 13.3 percent. Site leasing revenue in the second quarter of 2022 of $580.2 million consisted of domestic site leasing revenue of $442.1 million and international site leasing revenue of $138.1 million.
“Our second-quarter performance was very strong,” stated Jeffrey Stoops, President and CEO. “Wireless carrier activity was, and remains, robust across most of our markets. In both leasing and services, we are extremely busy fulfilling the needs and requests of our customers as they continue to pursue a high level of network investment. Against this demand, we continue to execute very well. We achieved another record for U.S. services revenue in the quarter.”
Domestic cash site leasing revenue in the second quarter of 2022 was $431.8 million compared to $408.3 million in the prior year period, an increase of 5.8 percent. International cash site leasing revenue in the second quarter of 2022 was $138.6 million compared to $106.3 million in the prior year period, an increase of 30.4 percent, or 27.1 percent on a constant currency basis. Site development revenues in the second quarter of 2022 were $71.8 million compared to $51.4 million in the prior year period, an increase of 39.5 percent.
Site leasing operating profit in the second quarter of 2022 was $468.7 million, an increase of 9.3 percent over the prior year period. Site leasing contributed 96.4 percent of the company’s total operating profit in the second quarter of 2022. Domestic site leasing segment operating profit in the second quarter of 2022 was $376.3 million, an increase of 6.0 percent over the prior year period. International site leasing segment operating profit in the second quarter of 2022 was $92.4 million, an increase of 25.1 percent from the prior year period.
Tower Cash Flow in the second quarter of 2022 of $459.6 million comprised Domestic Tower Cash Flow of $366.5 million and International Tower Cash Flow of $93.1 million. Domestic Tower Cash Flow in the second quarter of 2022 increased 5.9 percent over the prior year period and International Tower Cash Flow increased 23.7 percent over the prior year period, or increased 20.4 percent on a constant currency basis. Tower Cash Flow Margin was 80.6 percent in the second quarter of 2022, as compared to 81.9 percent for the prior year period.
Net income in the second quarter of 2022 was $69.2 million, or $0.64 per share, and included a $43.1 million loss, 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 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.
Adjusted EBITDA in the second quarter of 2022 was $437.8 million, a 9.4 percent increase over the prior year period. Adjusted EBITDA Margin in the second quarter of 2022 was 68.2 percent compared to 70.7 percent in the prior year period.
“We believe domestic and international activity will remain strong into 2023 and perhaps beyond,” Stoops said, “given the size and scope of our customers’ 5G deployment plans. With respect to capital allocation, we continue to be very disciplined around target leverage levels, and very opportunistic as to allocating capital to portfolio growth or stock repurchases. Consistent with that approach, we have entered into an agreement to acquire approximately 2,600 additional towers in Brazil on terms that we believe are very attractive and will upon closing be immediately accretive to AFFO per share. The acquired towers will be very complementary to our existing towers in Brazil and we expect to integrate these assets smoothly, quickly and with no ongoing material incremental SG&A expense. As a result of these positive results, prospects and investment, we are increasing our 2022 Outlook across all key financial metrics.”
Highlights of the second quarter include:
- Net income of $69.2 million or $0.64 per share
- AFFO per share increased 16.3 percent over the prior year period
- In addition, the company announced yesterday that its Board of Directors has declared a quarterly cash dividend of $0.71 per share of the company’s Class A Common Stock. The distribution is payable September 20, 2022 to the shareholders of record at the close of business on August 25, 2022.
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