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Dec 31, 2020

SBA Q4 2020 Earnings Report

Reported strong Q4 2020 results with material growth in AFFO per share and provided full year 2021 outlook.

Key Takeaways

SBA Communications Corporation reported a strong finish to 2020, with the fourth quarter being the strongest in terms of customer activity. The company produced material growth in AFFO per share and increased its quarterly cash dividend by approximately 25%.

Net income was $105.8 million, or $0.94 per share, and site leasing revenue was $493.0 million.

AFFO per share grew by 18.8% over the year earlier period on a constant currency basis.

The company repurchased 2.2 million shares cumulatively in the fourth quarter and subsequent to quarter end.

A new master lease agreement with Dish was signed subsequent to quarter end.

Total Revenue
$536M
Previous year: $514M
+4.3%
EPS
$0.94
Previous year: $0.59
+59.3%
Tower Cash Flow Margin
81.6%
Previous year: 81%
+0.7%
Adjusted EBITDA Margin
71%
Previous year: 71%
+0.0%
AFFO
$280M
Previous year: $249M
+12.6%
Gross Profit
$408M
Previous year: $392M
+4.0%
Cash and Equivalents
$309M
Previous year: $108M
+184.9%
Free Cash Flow
$210M
Previous year: $222M
-5.5%
Total Assets
$9.16B
Previous year: $9.76B
-6.2%

SBA

SBA

SBA Revenue by Segment

SBA Revenue by Geographic Location

Forward Guidance

The company provided its initial full year 2021 Outlook for anticipated results, which assumes acquisitions of only those communication sites under contract and anticipated to close. The Outlook also does not contemplate any additional repurchases of the Company’s stock during 2021.

Positive Outlook

  • Site leasing revenue is expected to be between $2,032.0 million and $2,052.0 million.
  • Site development revenue is projected to be between $140.0 million and $160.0 million.
  • Total revenues are anticipated to be between $2,172.0 million and $2,212.0 million.
  • Tower Cash Flow is forecasted to be between $1,664.0 million and $1,684.0 million.
  • Adjusted EBITDA is expected to be between $1,562.0 million and $1,582.0 million.

Challenges Ahead

  • Net cash interest expense is projected to be between $358.0 million and $368.0 million.
  • Non-discretionary cash capital expenditures are expected to be between $37.0 million and $47.0 million.
  • AFFO is forecasted to be between $1,117.0 million and $1,163.0 million.
  • AFFO per share is expected to be between $10.00 and $10.41.
  • Discretionary cash capital expenditures are projected to be between $1,200.0 million and $1,220.0 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income