May 05, 2020

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Mar 31, 2020

SBA Q1 2020 Earnings Report

SBA Communications Corporation reported results for the quarter ended March 31, 2020.

Key Takeaways

SBA Communications Corporation reported a solid start to 2020 with a net loss of $127.1 million, which included a $152.8 million loss from currency-related inter-company loan remeasurement. Despite the loss, AFFO per share grew by 13.5% over the prior year period on a constant currency basis. The company remains focused on health and safety, maintaining wireless service, and deploying 5G.

Declared quarterly cash dividend of $0.465 per share subsequent to quarter end.

Repurchased 0.8 million shares at an average price of $243 per share.

Committed to providing global COVID-19 relief through charitable contributions.

Experienced AFFO per share growth of 13.5% over the year earlier period on a constant currency basis.

Total Revenue

$517M

Previous year: $493M

+4.8%

EPS

$0.38

Previous year: $0.23

+65.2%

Tower Cash Flow Margin

81.2%

Adjusted EBITDA Margin

71.9%

AFFO

$260M

Gross Profit

$402M

Previous year: $369M

+8.7%

Cash and Equivalents

$228M

Previous year: $118M

+93.9%

Free Cash Flow

$238M

Previous year: $186M

+28.0%

Total Assets

$9.36B

Previous year: $9.31B

+0.5%

SBA

SBA Revenue by Segment

SBA Revenue by Geographic Location

Forward Guidance

The Company is updating its full year 2020 Outlook for anticipated results, assuming acquisitions of communication sites under contract and average foreign currency exchange rates of 5.45 Brazilian Reais, 1.42 Canadian Dollars, and 18.65 South African Rand to 1.0 U.S. Dollar for the last three quarters of 2020.

Positive Outlook

Site leasing revenue is expected to be between $1,930.0 million and $1,950.0 million.
Site development revenue is projected to be between $110.0 million and $130.0 million.
Tower Cash Flow is anticipated to be between $1,570.0 million and $1,590.0 million.
Adjusted EBITDA is forecasted to be between $1,464.0 million and $1,484.0 million.
AFFO per share is expected to be between $8.89 and $9.29.

Challenges Ahead

Changes in foreign currency exchange rates negatively impacted the 2020 full year Outlook.
Site leasing revenue outlook was negatively impacted by $47.0 million due to FX.
Total revenues outlook was negatively impacted by $47.0 million due to FX.
Tower Cash Flow outlook was negatively impacted by $32.0 million due to FX.
Adjusted EBITDA outlook was negatively impacted by $30.0 million due to FX.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View SBA