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Dec 31, 2023

SBA Q4 2023 Earnings Report

SBA Communications reported strong Q4 2023 results, exceeding expectations for Site Leasing Revenue, Tower Cash Flow, Adjusted EBITDA, and AFFO, and increased its quarterly cash dividend by 15%.

Key Takeaways

SBA Communications Corporation reported Q4 2023 results with a net income of $109.5 million, or $1.01 per share, and AFFO per share of $3.37, representing an 8.0% growth over the prior year period. The company's Board of Directors declared a quarterly cash dividend of $0.98 per share, a 15% increase. The company ended the quarter with $247.7 million in cash and cash equivalents.

Net income was $109.5 million, or $1.01 per share.

AFFO per share reached $3.37, an 8.0% increase year-over-year.

A quarterly cash dividend of $0.98 per share was declared, marking a 15% increase.

Site leasing revenue totaled $636.1 million, comprised of $466.6 million domestically and $169.5 million internationally.

Total Revenue
$636M
Previous year: $686M
-7.3%
EPS
$1.01
Previous year: $0.94
+7.4%
Tower Cash Flow Margin
81%
Previous year: 80.9%
+0.1%
Adjusted EBITDA Margin
71.6%
Previous year: 68.1%
+5.1%
AFFO
$366M
Previous year: $341M
+7.3%
Gross Profit
$135M
Previous year: $514M
-73.8%
Cash and Equivalents
$248M
Previous year: $144M
+72.4%
Free Cash Flow
$370M
Previous year: $223M
+66.2%
Total Assets
$10.2B
Previous year: $10.6B
-3.8%

SBA

SBA

SBA Revenue by Segment

SBA Revenue by Geographic Location

Forward Guidance

SBA Communications provided its initial full year 2024 Outlook, which assumes the acquisitions of only those communication sites under contract and anticipated to close at the time of this press release and the refinancing of the $620.0 million 2014-2C Tower Securities on July 1, 2024, at a fixed rate of 6.000%.

Positive Outlook

  • Site leasing revenue is projected to be between $2,529.0 million and $2,549.0 million.
  • Site development revenue is expected to range from $140.0 million to $160.0 million.
  • Total revenues are anticipated to be between $2,669.0 million and $2,709.0 million.
  • Tower Cash Flow is forecasted to be in the range of $2,046.0 million to $2,066.0 million.
  • Adjusted EBITDA is projected to be between $1,894.0 million and $1,914.0 million.

Challenges Ahead

  • Net cash interest expense is projected to be between $356.0 million and $361.0 million.
  • Non-discretionary cash capital expenditures are expected to be between $51.0 million and $61.0 million.
  • AFFO is forecasted to be between $1,433.0 million and $1,473.0 million.
  • AFFO per share is projected to be between $13.15 and $13.51.
  • Discretionary cash capital expenditures are expected to be between $320.0 million and $340.0 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income