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Mar 31, 2024

SBA Q1 2024 Earnings Report

SBA Communications reported first quarter results, updated full year outlook, and declared quarterly cash dividend.

Key Takeaways

SBA Communications Corporation reported a decrease in total revenues of 2.6%, with site leasing revenue increasing by 1.8% and site development revenue decreasing by 49.2%. Net income increased to $154.5 million, or $1.42 per share, and AFFO per share grew by 5.1% to $3.29.

Net income was $154.5 million or $1.42 per share.

AFFO per share reached $3.29, a 5.1% increase year-over-year.

A new senior secured Term Loan B was issued, and the senior secured revolving credit facility was increased and extended.

The company repurchased 0.9 million shares in the first quarter and subsequent period.

Total Revenue
$658M
Previous year: $676M
-2.6%
EPS
$1.42
Previous year: $0.92
+54.3%
Tower Cash Flow Margin
81.1%
Previous year: 80.4%
+0.9%
Adjusted EBITDA Margin
71.2%
AFFO per Share
$3.29
Previous year: $3.13
+5.1%
Gross Profit
$438M
Previous year: $511M
-14.3%
Cash and Equivalents
$260M
Previous year: $153M
+70.3%
Free Cash Flow
$237M
Previous year: $262M
-9.7%
Total Assets
$10B
Previous year: $10.5B
-5.2%

SBA

SBA

SBA Revenue by Segment

SBA Revenue by Geographic Location

Forward Guidance

The Company is updating its full year 2024 Outlook for anticipated results.

Positive Outlook

  • Site leasing revenue is projected to be between $2,517.0 million and $2,537.0 million.
  • Site development revenue is expected to range from $140.0 million to $160.0 million.
  • Tower Cash Flow is anticipated to be between $2,041.0 million and $2,061.0 million.
  • Adjusted EBITDA is forecasted to be in the range of $1,889.0 million to $1,909.0 million.
  • AFFO per share is projected to be between $13.09 and $13.46.

Challenges Ahead

  • The outlook assumes acquisitions of only those communication sites under contract.
  • The outlook does not contemplate any additional repurchases of the Company’s stock or new debt financings during 2024.
  • The 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.
  • Net cash interest expense is projected to be between $363.0 million to $368.0 million
  • AFFO is projected to be between $1,415.0 million to $1,455.0 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income