SBA Communications Corporation (SBAC) yesterday reported results for the quarter ended December 31, 2021. The company reported net income of $48.9 million or $0.44 per share for the fourth quarter with an AFFO per share increase of 13.3 percent over the prior year period on a constant currency basis. Total revenue of $595.3 million was an 11.1 percent growth over the prior year period. The company repurchased 1.8 million shares cumulatively in the fourth quarter and subsequent to quarter end.
“We had a very solid finish to 2021, producing record results on a number of metrics and positioning us for a strong 2022,” said Jeffrey Stoops, President and Chief Executive Officer. “The US market was and remains particularly strong, with our largest US customers all disclosing robust capital expenditure plans for 2022. Domestic activity so far in 2022 has been strong, and leasing and services backlogs are at or near all-time highs.”
Stoops said he believes domestic activity will remain strong into 2023 and perhaps beyond, given the size and scope of their customers’ 5G deployment plans. International results were strong as well in the fourth quarter, according to Stoops, and he said he expects gross leasing demand to remain strong internationally, particularly in light of the recent 5G spectrum auction in Brazil and the upcoming 5G spectrum auction in South Africa.
“In addition, since our last earnings release,” Stoops said, “we have commenced operations in Tanzania, through the acquisition of sites from Airtel, and in the Philippines, where we have commenced greenfield build operations. Both new markets are expected to grow favorably in the years to come. In the last 12 months we have executed material portfolio growth, stock repurchases and favorable refinancings. Since February 1, 2021, we have grown our site portfolio by over 8 percent.”
The CEO said all of these favorable conditions and results allowed SBA to increase AFFO per share by double-digit percentages in the fourth quarter and for the full 2021 fiscal year over comparable prior periods.
“Our balance sheet remains in great shape,” he said, “ending the year with the lowest average weighted cost of debt and the highest cash interest coverage ratio ever. We are extremely confident and excited about our future, so much so that we have just approved an increase to our quarterly dividend of approximately 22 percent. While a substantial increase, this dividend on an annual basis represents less than 25 percent of our AFFO in our 2022 Outlook, leaving us substantial capital for additional investment in portfolio growth and stock repurchases. We believe we will produce material growth in AFFO per share and, including the dividend, offer our shareholders very favorable prospects for additional value creation.”
Tower Cash Flow in the fourth quarter of 2021 of $434.1 million was comprised of Domestic Tower Cash Flow of $358.4 million and International Tower Cash Flow of $75.7 million. Domestic Tower Cash Flow in the fourth quarter of 2021 increased 8.6 percent over the prior year period and International Tower Cash Flow increased 5.0 percent over the prior year period, or increased 7.0 percent on a constant currency basis. Tower Cash Flow Margin was 81.9 percent in the fourth quarter of 2021, as compared to 81.6 percent for the prior year period.
Reader Interactions