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Mar 31, 2023

SBA Q1 2023 Earnings Report

SBA Communications reported solid first quarter results, exceeding expectations in site leasing revenue and AFFO per share, and updated full year outlook.

Key Takeaways

SBA Communications Corporation reported first quarter 2023 results, featuring a 10.3% growth in site leasing revenue and an AFFO per share of $3.13. The company has updated its full year outlook for site leasing revenue, adjusted EBITDA, and AFFO. A quarterly cash dividend of $0.85 per share was declared.

Net income was $100.6 million, or $0.92 per share.

AFFO per share reached $3.13.

Site leasing revenue totaled $617.3 million, a 10.3% increase year-over-year.

The company increased its full year outlook for site leasing revenue, adjusted EBITDA, and AFFO.

Total Revenue
$676M
Previous year: $620M
+9.0%
EPS
$0.92
Previous year: $1.72
-46.5%
Tower Cash Flow Margin
80.4%
Previous year: 80.8%
-0.5%
AFFO per Share
$3.13
Previous year: $2.96
+5.7%
Dividend per Share
$0.85
Previous year: $0.71
+19.7%
Gross Profit
$511M
Previous year: $467M
+9.5%
Cash and Equivalents
$153M
Previous year: $264M
-42.0%
Free Cash Flow
$262M
Previous year: $254M
+3.0%
Total Assets
$10.5B
Previous year: $10.1B
+3.9%

SBA

SBA

SBA Revenue by Segment

SBA Revenue by Geographic Location

Forward Guidance

The Company is updating its full year 2023 Outlook for anticipated results, assuming acquisitions under contract close and average foreign currency exchange rates.

Positive Outlook

  • Site leasing revenue is projected to be between $2,481.0 million and $2,501.0 million.
  • Total revenues are expected to range from $2,686.0 million to $2,726.0 million.
  • Tower Cash Flow is forecasted to be between $1,978.0 million and $1,998.0 million.
  • Adjusted EBITDA is anticipated to be between $1,855.0 million and $1,875.0 million.
  • AFFO per share is projected to be between $12.55 and $12.91.

Challenges Ahead

  • Net cash interest expense is expected to be between $378.0 million and $383.0 million.
  • Non-discretionary cash capital expenditures are projected to be between $54.0 million and $64.0 million.
  • Discretionary cash capital expenditures are anticipated to be between $330.0 million and $350.0 million.
  • The outlook assumes acquisitions of only those communication sites under contract.
  • The outlook does not contemplate additional repurchases of the Company’s stock or new debt financings.

Revenue & Expenses

Visualization of income flow from segment revenue to net income