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SBA Communications Corporation Reports First Quarter 2024 Results; Updates Full Year 2024 Outlook; and Declares Quarterly Cash Dividend

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SBA Communications reported solid first quarter 2024 results with net income of $154.5 million and AFFO per share of $3.29, a 5.1% growth year-over-year. The company repurchased 0.9 million shares, declared a quarterly cash dividend of $0.98 per share, and updated its full year 2024 outlook. SBA remains well-positioned to benefit shareholders with a strong financial position and anticipated solid organic leasing growth.

SBA Communications ha riportato ottimi risultati per il primo trimestre del 2024, con un utile netto di 154,5 milioni di dollari e un AFFO per azione di 3,29 dollari, registrando una crescita del 5,1% su base annua. L'azienda ha riacquistato 0,9 milioni di azioni, dichiarato un dividendo trimestrale in contanti di 0,98 dollari per azione e aggiornato le sue previsioni per l'intero anno 2024. SBA si mantiene in una posizione finanziaria forte, pronta a beneficiare gli azionisti con una solida crescita organica degli affitti.
SBA Communications reportó resultados sólidos para el primer trimestre de 2024, con un ingreso neto de $154.5 millones y un AFFO por acción de $3.29, lo que representa un crecimiento del 5.1% respecto al año anterior. La compañía recompró 0.9 millones de acciones, declaró un dividendo trimestral en efectivo de $0.98 por acción y actualizó su pronóstico para el año completo 2024. SBA sigue bien posicionada para beneficiar a los accionistas con una posición financiera sólida y un crecimiento orgánico de arrendamiento anticipado.
SBA 커뮤니케이션즈는 2024년 1분기에 1억 5,450만 달러의 순이익과 주당 3.29달러의 AFFO를 기록하며 전년 대비 5.1% 성장했습니다. 회사는 90만 주를 매입하고 주당 0.98달러의 분기 배당금을 선언하며 2024년 전체 연도 전망을 업데이트했습니다. SBA는 강력한 재무 상태와 기대되는 견고한 유기적 임대 성장으로 주주들에게 이익을 제공할 준비가 되어 있습니다.
SBA Communications a rapporté d'excellents résultats pour le premier trimestre de 2024, avec un bénéfice net de 154,5 millions de dollars et un AFFO par action de 3,29 dollars, en croissance de 5,1% par rapport à l'année précédente. La société a racheté 0,9 million d'actions, déclaré un dividende trimestriel en espèces de 0,98 dollars par action et mis à jour ses prévisions pour l'ensemble de l'année 2024. SBA reste bien positionnée pour bénéficier aux actionnaires avec une solide position financière et une croissance locative organique solide anticipée.
SBA Communications meldete solide Ergebnisse für das erste Quartal 2024 mit einem Nettogewinn von 154,5 Millionen Dollar und einem AFFO pro Aktie von 3,29 Dollar, was einem Wachstum von 5,1% im Vergleich zum Vorjahr entspricht. Das Unternehmen hat 0,9 Millionen Aktien zurückgekauft, eine vierteljährliche Dividende von 0,98 Dollar pro Aktie erklärt und seine Prognose für das gesamte Jahr 2024 aktualisiert. SBA ist weiterhin gut positioniert, um die Aktionäre mit einer starken finanziellen Position und erwartetem soliden organischem Leasingwachstum zu begünstigen.
Positive
  • Net income of $154.5 million and AFFO per share of $3.29, showing a 5.1% growth year-over-year.

  • Repurchased 0.9 million shares and declared a quarterly cash dividend of $0.98 per share.

  • Increased and extended the maturity of the senior secured revolving credit facility.

  • Announced a quarterly dividend 15% higher than the prior year and remains well below 30% of guided 2024 AFFO.

  • Expects continued solid organic leasing growth due to ongoing network investments.

Negative
  • Total revenues in the first quarter of 2024 decreased by 2.6% compared to the prior year period.

  • Site development revenues decreased by 49.2% in the first quarter of 2024.

  • Site leasing revenue was down slightly, while tower cash flow increased by 3.0% year-over-year.

  • Net income included a loss on the currency-related remeasurement of intercompany loans and a non-cash benefit related to the revision of estimated useful lives of assets.

  • Company's Net Debt and Net Secured Debt to Annualized Adjusted EBITDA Leverage Ratios were 6.5x and 4.9x, respectively.

Noteworthy is the 5.1% growth in AFFO per share, indicating an improvement in the company's efficiency and profitability, a metric often scrutinized by investors. Equally important is the 53.6% surge in net income, suggesting enhanced financial health. However, a 49.2% plunge in site development revenue may raise concerns over the company's diversification strategy. While the dividend increase signals confidence in ongoing cash flow, it remains below 30% of the AFFO, underscoring a conservative payout approach amidst a high-interest rate environment. The share repurchase reflects a strategic capital allocation, aiming to bolster shareholder value against a backdrop of suppressed market valuations. These factors collectively provide investors with insights into the company’s strategic maneuvers in a challenging economic landscape.

The report highlights a capital expenditure of $77.3 million, focused on non-discretionary maintenance and expansion through new builds and land acquisitions, which suggests a strategic investment in future growth. The report also indicates moderate leasing revenue growth in both domestic and international markets, which could be seen as a stable demand for the company's core services in a competitive telecom infrastructure space. This growth, coupled with the company's solid site leasing contribution to operating profit, reaffirms the robustness of its leasing business model. However, the sharp decrease in site development revenue could indicate a shift in market dynamics or a strategic pivot, which investors should monitor closely for future trends.

The reported increase in site leasing revenue, both domestically and internationally, reflects ongoing demand for telecommunications infrastructure, driven by growing mobile broadband needs and ongoing 4G and 5G network deployments. Despite macro-economic pressures, carrier activities suggest a continued investment in network infrastructure, which bodes well for companies like SBA Communications that support these expansions. Nonetheless, investors should consider the potential impact of continued high capital costs and elevated interest rates on the company's future growth and financing activities, as these factors could influence the company's ability to fund its strategic initiatives and affect its stock performance.

BOCA RATON, Fla.--(BUSINESS WIRE)-- SBA Communications Corporation (Nasdaq: SBAC) ("SBA" or the "Company") today reported results for the quarter ended March 31, 2024.

Highlights of the first quarter include:

  • Net income of $154.5 million or $1.42 per share
  • AFFO per share of $3.29, representing a 5.1% growth over the prior year period
  • Issued a new senior secured Term Loan B and increased and extended the maturity of the senior secured revolving credit facility
  • Repurchased 0.9 million shares cumulatively in the first quarter and subsequent to quarter end

In addition, the Company announced today that its Board of Directors has declared a quarterly cash dividend of $0.98 per share of the Company’s Class A Common Stock. The distribution is payable June 19, 2024 to the shareholders of record at the close of business on May 23, 2024.

“We had a solid start to 2024, producing operating and financial results in line with our expectations,” commented Brendan Cavanagh, President and Chief Executive Officer. “Carrier activity throughout our markets remained measured in response to continued macro-economic financial pressures and the high cost of capital, but nonetheless, we continued to see steady network investment across our portfolio. The consumer and competitive pressures to provide high performing mobile broadband services persists both domestically and internationally, and our customers still have significant 4G and 5G deployment needs. As a result, we anticipate continued solid organic leasing growth for many years. During the first part of the year, we saw an increase in expectations for continued elevated interest rates. This environment has weighed on the valuations of public tower companies. Given our historically low leverage levels, we took advantage of these valuations to opportunistically buy back approximately 935,000 shares of our stock for approximately $200 million. In addition, today we announced a quarterly dividend 15% higher than the dividend in the prior year period, but still less than 30% of our guided 2024 AFFO. I believe the quality of our underlying business, the strength of our financial position and the long-term market demands on our customers to invest in their networks positions SBA very well to continue allocating capital for the benefit of our shareholders.”

Operating Results

The table below details select financial results for the three months ended March 31, 2024 and comparisons to the prior year period.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

excluding

 

 

Q1 2024

 

Q1 2023

 

$ Change

 

% Change

 

FX (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

($ in millions, except per share amounts)

Site leasing revenue

 

$

628.3

 

$

617.3

 

$

11.0

 

 

 

1.8

%

 

 

1.5

%

Site development revenue

 

 

29.6

 

 

58.2

 

 

(28.6

)

 

 

(49.2

%)

 

 

(49.2

%)

Tower cash flow (1)

 

 

506.0

 

 

491.0

 

 

15.0

 

 

 

3.0

%

 

 

2.6

%

Net income

 

 

154.5

 

 

100.6

 

 

53.9

 

 

 

53.6

%

 

 

146.2

%

Earnings per share - diluted

 

 

1.42

 

 

0.93

 

 

0.50

 

 

 

53.6

%

 

 

145.6

%

Adjusted EBITDA (1)

 

 

465.4

 

 

459.3

 

 

6.1

 

 

 

1.3

%

 

 

0.9

%

AFFO (1)

 

 

357.4

 

 

341.7

 

 

15.7

 

 

 

4.6

%

 

 

4.0

%

AFFO per share (1)

 

 

3.29

 

 

3.13

 

 

0.16

 

 

 

5.1

%

 

 

4.5

%

(1)

 

See the reconciliations and other disclosures under “Non-GAAP Financial Measures” later in this press release.

Total revenues in the first quarter of 2024 were $657.9 million compared to $675.5 million in the prior year period, a decrease of 2.6%. Site leasing revenue in the first quarter of 2024 of $628.3 million was comprised of domestic site leasing revenue of $461.5 million and international site leasing revenue of $166.8 million. Domestic cash site leasing revenue in the first quarter of 2024 was $456.6 million compared to $447.4 million in the prior year period, an increase of 2.1%. International cash site leasing revenue in the first quarter of 2024 was $167.6 million compared to $163.0 million in the prior year period, an increase of 2.8%, or 1.5% on a constant currency basis. Site development revenues in the first quarter of 2024 were $29.6 million compared to $58.2 million in the prior year period, a decrease of 49.2%.

Site leasing operating profit in the first quarter of 2024 was $513.4 million, an increase of 3.3% over the prior year period. Site leasing contributed 98.8% of the Company’s total operating profit in the first quarter of 2024. Domestic site leasing segment operating profit in the first quarter of 2024 was $395.5 million, an increase of 2.7% over the prior year period. International site leasing segment operating profit in the first quarter of 2024 was $117.9 million, an increase of 5.2% from the prior year period.

Tower Cash Flow in the first quarter of 2024 of $506.0 million was comprised of Domestic Tower Cash Flow of $387.2 million and International Tower Cash Flow of $118.8 million. Domestic Tower Cash Flow in the first quarter of 2024 increased 2.7% over the prior year period and International Tower Cash Flow increased 4.3% over the prior year period, or 2.5% on a constant currency basis. Tower Cash Flow Margin was 81.1% in the first quarter of 2024, as compared to 80.4% for the prior year period.

Net income in the first quarter of 2024 was $154.5 million, or $1.42 per share, and included a $28.5 million loss, net of taxes, on the currency-related remeasurement of intercompany loans with foreign subsidiaries which are denominated in a currency other than the subsidiaries’ functional currencies and also included a $93.0 million non-cash benefit, net of taxes, related to the Company’s revision of the estimated useful lives of its towers and certain intangible assets. Net income in the first quarter of 2023 was $100.6 million, or $0.93 per share, and included a $27.4 million gain, net of taxes, on the currency-related remeasurement of intercompany loans with foreign subsidiaries which are denominated in a currency other than the subsidiaries’ functional currencies.

Adjusted EBITDA in the first quarter of 2024 was $465.4 million, a 1.3% increase over the prior year period. Adjusted EBITDA Margin in the first quarter of 2024 was 71.2% compared to 68.7% in the prior year period.

Net Cash Interest Expense in the first quarter of 2024 was $89.1 million compared to $98.4 million in the prior year period, a decrease of 9.5%.

AFFO in the first quarter of 2024 was $357.4 million, a 4.6% increase over the prior year period. AFFO per share in the first quarter of 2024 was $3.29, a 5.1% increase over the prior year period.

Investing Activities

During the first quarter of 2024, SBA acquired 11 communication sites for total cash consideration of $9.2 million. SBA also built 76 towers during the first quarter of 2024. As of March 31, 2024, SBA owned or operated 39,638 communication sites, 17,478 of which are located in the United States and its territories and 22,160 of which are located internationally. In addition, the Company spent $13.5 million to purchase land and easements and to extend lease terms. Total cash capital expenditures for the first quarter of 2024 were $77.3 million, consisting of $10.0 million of non-discretionary cash capital expenditures (tower maintenance and general corporate) and $67.3 million of discretionary cash capital expenditures (new tower builds, tower augmentations, acquisitions, and purchasing land and easements).

Subsequent to the first quarter of 2024, the Company purchased or is under contract to purchase 271 communication sites for an aggregate consideration of $84.5 million in cash. The Company anticipates that these acquisitions will be consummated by the end of the third quarter of 2024.

Financing Activities and Liquidity

SBA ended the first quarter of 2024 with $12.4 billion of total debt, $9.4 billion of total secured debt, $261.8 million of cash and cash equivalents, short-term restricted cash, and short-term investments, and $12.2 billion of Net Debt. SBA’s Net Debt and Net Secured Debt to Annualized Adjusted EBITDA Leverage Ratios were 6.5x and 4.9x, respectively.

On January 25, 2024, the Company, through its wholly owned subsidiary, SBA Senior Finance II LLC, under its amended and restated Senior Credit Agreement, issued a new $2.3 billion senior secured Term Loan B (the “2024 Term Loan”) maturing January 25, 2031. The 2024 Term Loan accrues interest, at SBA Senior Finance II’s election, at either the Base Rate plus 100 basis points or at Term SOFR plus 200 basis points. The interest rate swap on a portion of the 2018 Term Loan B will remain in effect until expiration on March 31, 2025. Inclusive of the interest rate swap, the current average blended rate on the new Term Loan B is 2.85%. The 2024 Term Loan was issued at 99.75% of par value. The proceeds from the 2024 Term Loan were used to retire the Company’s 2018 Term Loan and to pay related fees and expenses.

The Company also amended its Revolving Credit Facility to (1) increase the total commitments under the Facility from $1.5 billion to $1.75 billion, (2) extend the maturity date of the Facility to January 25, 2029, and (3) amend certain other terms and conditions under the Senior Credit Agreement. Amounts borrowed under the Revolving Credit Facility accrue interest, at SBA Senior Finance II’s election, at either (1) the Eurodollar Rate or Term SOFR plus a margin that ranges from 112.5 basis points to 150.0 basis points or (2) the Base Rate plus a margin that ranges from 12.5 basis points to 50.0 basis points, in each case based on the ratio of Consolidated Net Debt to Annualized Borrower EBITDA, calculated in accordance with the Senior Credit Agreement. In addition, SBA Senior Finance II is required to pay a commitment fee of between 0.15% and 0.25% per annum on the amount of unused commitment.

On February 23, 2024, the Company, through its wholly owned subsidiary, SBA Senior Finance II LLC, further increased the total commitments under the Revolving Credit Facility from $1.75 billion to $2.0 billion.

As of the date of this press release, the Company had $195.0 million outstanding under its $2.0 billion Revolving Credit Facility.

During and subsequent to the first quarter of 2024, the Company repurchased 0.9 million shares of its Class A common stock for $200.0 million at an average price per share of $213.85 under its $1.0 billion stock repurchase plan. After these repurchases, the Company had $204.7 million of authorization remaining under the plan. Shares repurchased were retired.

In the first quarter of 2024, the Company declared and paid a cash dividend of $108.1 million.

Outlook

The Company is updating its full year 2024 Outlook for anticipated results. The Outlook provided is based on a number of assumptions that the Company believes are reasonable at the time of this press release. Information regarding potential risks that could cause the actual results to differ from these forward-looking statements is set forth below and in the Company’s filings with the Securities and Exchange Commission.

The Company’s full year 2024 Outlook assumes the acquisitions of only those communication sites under contract and anticipated to close at the time of this press release. The Company may spend additional capital in 2024 on acquiring revenue producing assets not yet identified or under contract, the impact of which is not reflected in the 2024 guidance. The Outlook also does not contemplate any additional repurchases of the Company’s stock or new debt financings during 2024 (other than the refinancing of the 2014-2C Tower Securities as discussed below), although the Company may ultimately spend capital to repurchase stock or issue new debt during the remainder of the year.

The Company’s Outlook assumes an average foreign currency exchange rate of 5.15 Brazilian Reais to 1.0 U.S. Dollar, 1.38 Canadian Dollars to 1.0 U.S. Dollar, 2,585 Tanzanian shillings to 1.0 U.S. Dollar, and 19.00 South African Rand to 1.0 U.S. Dollar throughout the last three quarters of 2024.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change from

 

 

 

 

 

 

 

 

Change from

 

February 26, 2024

 

 

 

 

 

 

 

 

February 26, 2024

 

Outlook

(in millions, except per share amounts)

 

Full Year 2024

 

Outlook (8)

 

Excluding FX

 

 

 

 

 

 

 

 

 

 

 

 

 

Site leasing revenue (1)

 

$

2,517.0

to

$

2,537.0

 

$

(12.0

)

 

$

(2.0

)

Site development revenue

 

$

140.0

to

$

160.0

 

$

 

 

$

 

Total revenues

 

$

2,657.0

to

$

2,697.0

 

$

(12.0

)

 

$

(2.0

)

Tower Cash Flow (2)

 

$

2,041.0

to

$

2,061.0

 

$

(5.0

)

 

$

2.0

 

Adjusted EBITDA (2)

 

$

1,889.0

to

$

1,909.0

 

$

(5.0

)

 

$

2.0

 

Net cash interest expense (3)(4)

 

$

363.0

to

$

368.0

 

$

7.0

 

 

$

7.0

 

Non-discretionary cash capital expenditures (5)

 

$

51.0

to

$

61.0

 

$

 

 

$

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FAQ

What was SBA Communications 's net income for the first quarter of 2024?

SBA Communications reported a net income of $154.5 million for the first quarter of 2024.

What was the AFFO per share for SBA Communications in the first quarter of 2024?

SBA Communications 's AFFO per share was $3.29 in the first quarter of 2024, representing a 5.1% growth over the prior year period.

Did SBA Communications declare a cash dividend in the first quarter of 2024?

Yes, SBA Communications declared a quarterly cash dividend of $0.98 per share of the Company's Class A Common Stock in the first quarter of 2024.

What was the total revenue change for SBA Communications in the first quarter of 2024 compared to the prior year period?

SBA Communications 's total revenues in the first quarter of 2024 decreased by 2.6% compared to the prior year period.

How many shares did SBA Communications repurchase in the first quarter of 2024?

SBA Communications repurchased 0.9 million shares in the first quarter of 2024.

SBA Communications Corporation

NASDAQ:SBAC

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