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SBA Communications Corporation Reports Third Quarter 2023 Results; Updates Full Year 2023 Outlook; and Declares Quarterly Cash Dividend

SBA Communications Corporation (Nasdaq: SBAC) ("SBA" or the "Company") today reported results for the quarter ended September 30, 2023.

Highlights of the third quarter include:

  • Net income of $85.4 million or $0.80 per share
  • AFFO per share of $3.34
  • Site leasing revenue of $637.5 million, representing 8.5% growth over the prior year period
  • Repurchased 0.5 million shares cumulatively in the third quarter and subsequent to quarter end

In addition, the Company announced today that its Board of Directors has declared a quarterly cash dividend of $0.85 per share of the Company’s Class A Common Stock. The distribution is payable December 14, 2023 to the shareholders of record at the close of business on November 16, 2023.

“We posted strong financial results for the third quarter, exceeding estimates and our own expectations,” stated Jeffrey A. Stoops, President and Chief Executive Officer. “We continue to execute very well, making the most of varying demand. Customer activity varied by region, with US customers less active in the aggregate with their wireless networks year over year, and international customers more active than we expected. Combined, we posted solid growth in site leasing revenue, Tower Cash Flow and Adjusted EBITDA. Despite higher interest expense, we generated solid AFFO in the quarter, providing ample cash for discretionary spending and strong dividend coverage. We repurchased $100 million of our common stock. We dedicated the remainder of our discretionary spending to portfolio growth and to retire floating-rate indebtedness. We posted quarter-end net debt to Adjusted EBITDA of 6.4x, our lowest leverage ratio in decades. Based on third quarter results and our current expectations for the remainder of 2023, we have adjusted our full year outlook in a number of areas, including increases to Site Leasing Revenue, Tower Cash Flow, Adjusted EBITDA, AFFO and AFFO per share notwithstanding anticipated less favorable foreign currency exchange rates. Long-term, the quality of our assets and our operational execution position us well to capitalize on the continuing growth in wireless data consumption and the resulting necessary investment of our carrier customers into the development and expansion of their 5G networks.”

Operating Results

The table below details select financial results for the three months ended September 30, 2023 and comparisons to the prior year period.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

excluding

 

 

Q3 2023

 

Q3 2022

 

$ Change

 

% Change

 

FX (1)

Consolidated

 

($ in millions, except per share amounts)

Site leasing revenue

 

$

637.5

 

$

587.3

 

$

50.2

 

 

8.5%

 

 

7.7%

Site development revenue

 

 

45.1

 

 

88.3

 

 

(43.2)

 

 

(48.9%)

 

 

(48.9%)

Tower cash flow (1)

 

 

511.7

 

 

464.1

 

 

47.6

 

 

10.3%

 

 

9.5%

Net income

 

 

85.4

 

 

99.8

 

 

(14.4)

 

 

(14.4%)

 

 

(8.4%)

Earnings per share - diluted

 

 

0.80

 

 

0.91

 

 

(0.11)

 

 

(12.2%)

 

 

(7.8%)

Adjusted EBITDA (1)

 

 

482.1

 

 

446.8

 

 

35.3

 

 

7.9%

 

 

7.1%

AFFO (1)

 

 

364.1

 

 

339.4

 

 

24.7

 

 

7.3%

 

 

6.2%

AFFO per share (1)

 

 

3.34

 

 

3.10

 

 

0.24

 

 

7.7%

 

 

6.8%

(1)

See the reconciliations and other disclosures under “Non-GAAP Financial Measures” later in this press release.

Total revenues in the third quarter of 2023 were $682.6 million compared to $675.6 million in the prior year period, an increase of 1.0%. Site leasing revenue in the third quarter of 2023 of $637.5 million was comprised of domestic site leasing revenue of $468.4 million and international site leasing revenue of $169.1 million. Domestic cash site leasing revenue in the third quarter of 2023 was $461.0 million compared to $437.2 million in the prior year period, an increase of 5.4%. International cash site leasing revenue in the third quarter of 2023 was $169.4 million compared to $138.4 million in the prior year period, an increase of 22.4%, or 18.9% on a constant currency basis. Site development revenues in the third quarter of 2023 were $45.1 million compared to $88.3 million in the prior year period, a decrease of 48.9%.

Site leasing operating profit in the third quarter of 2023 was $519.2 million, an increase of 9.2% over the prior year period. Site leasing contributed 97.4% of the Company’s total operating profit in the third quarter of 2023. Domestic site leasing segment operating profit in the third quarter of 2023 was $401.6 million, an increase of 4.8% over the prior year period. International site leasing segment operating profit in the third quarter of 2023 was $117.6 million, an increase of 27.6% from the prior year period.

Tower Cash Flow in the third quarter of 2023 of $511.7 million was comprised of Domestic Tower Cash Flow of $393.2 million and International Tower Cash Flow of $118.5 million. Domestic Tower Cash Flow in the third quarter of 2023 increased 6.0% over the prior year period and International Tower Cash Flow increased 27.2% over the prior year period, or increased 23.3% on a constant currency basis. Tower Cash Flow Margin was 81.2% in the third quarter of 2023, as compared to 80.6% for the prior year period.

Net income in the third quarter of 2023 was $85.4 million, or $0.80 per share, and included a $31.2 million loss, net of taxes, on the currency-related remeasurement of intercompany loans with foreign subsidiaries which are denominated in a currency other than the subsidiaries’ functional currencies. Net income in the third quarter of 2022 was $99.8 million, or $0.91 per share, and included a $25.5 million loss, net of taxes, on the currency-related remeasurement of intercompany loans with foreign subsidiaries which are denominated in a currency other than the subsidiaries’ functional currencies.

Adjusted EBITDA in the third quarter of 2023 was $482.1 million, a 7.9% increase over the prior year period. Adjusted EBITDA Margin in the third quarter of 2023 was 71.4% compared to 67.3% in the prior year period.

Net Cash Interest Expense in the third quarter of 2023 was $94.1 million compared to $84.1 million in the prior year period, an increase of 11.9%.

AFFO in the third quarter of 2023 was $364.1 million, a 7.3% increase over the prior year period. AFFO per share in the third quarter of 2023 was $3.34, a 7.7% increase over the prior year period.

Investing Activities

During the third quarter of 2023, SBA acquired 45 communication sites for total cash consideration of $40.8 million. SBA also built 86 towers during the third quarter of 2023. As of September 30, 2023, SBA owned or operated 39,546 communication sites, 17,469 of which are located in the United States and its territories and 22,077 of which are located internationally. In addition, the Company spent $15.1 million to purchase land and easements and to extend lease terms. Total cash capital expenditures for the third quarter of 2023 were $114.5 million, consisting of $14.7 million of non-discretionary cash capital expenditures (tower maintenance and general corporate) and $99.8 million of discretionary cash capital expenditures (new tower builds, tower augmentations, acquisitions, and purchasing land and easements).

Subsequent to the third quarter of 2023, the Company purchased or is under contract to purchase 215 communication sites for an aggregate consideration of $74.0 million in cash. The Company anticipates that these acquisitions will be consummated by the end of the second quarter of 2024.

Financing Activities and Liquidity

SBA ended the third quarter of 2023 with $12.6 billion of total debt, $9.6 billion of total secured debt, $228.9 million of cash and cash equivalents, short-term restricted cash, and short-term investments, and $12.4 billion of Net Debt. SBA’s Net Debt and Net Secured Debt to Annualized Adjusted EBITDA Leverage Ratios were 6.4x and 4.9x, respectively.

As of the date of this press release, the Company had $285.0 million outstanding under its $1.5 billion Revolving Credit Facility.

During and subsequent to the third quarter of 2023, the Company repurchased 0.5 million shares of its Class A common stock for $100.0 million at an average price per share of $197.89 under its $1.0 billion stock repurchase plan. After these repurchases, the Company had $404.7 million of authorization remaining under the plan. Shares repurchased were retired.

In the third quarter of 2023, the Company declared and paid a cash dividend of $92.1 million.

Outlook

The Company is updating its full year 2023 Outlook for anticipated results. The Outlook provided is based on a number of assumptions that the Company believes are reasonable at the time of this press release. Information regarding potential risks that could cause the actual results to differ from these forward-looking statements is set forth below and in the Company’s filings with the Securities and Exchange Commission.

The Company’s full year 2023 Outlook assumes the acquisitions of only those communication sites under contract and anticipated to close at the time of this press release. The Company may spend additional capital in 2023 on acquiring revenue producing assets not yet identified or under contract, the impact of which is not reflected in the 2023 guidance. The Outlook also does not contemplate any additional repurchases of the Company’s stock or new debt financings during 2023, although the Company may ultimately spend capital to repurchase additional stock or issue new debt during the remainder of the year.

The Company’s Outlook assumes an average foreign currency exchange rate of 5.00 Brazilian Reais to 1.0 U.S. Dollar, 1.35 Canadian Dollars to 1.0 U.S. Dollar, 2,500 Tanzanian shillings to 1.0 U.S. Dollar, and 19.00 South African Rand to 1.0 U.S. Dollar throughout the last quarter of 2023.

 

 

 

 

 

 

 

 

 

 

 

Change from

 

 

 

 

 

 

 

 

Change from

 

July 31, 2023

 

 

 

 

 

 

 

 

July 31, 2023

 

Outlook

(in millions, except per share amounts)

 

Full Year 2023

 

Outlook (7)

 

Excluding FX

Site leasing revenue (1)

 

$

2,510.0

to

$

2,520.0

 

$

3.0

 

$

7.0

Site development revenue

 

$

195.0

to

$

205.0

 

$

(15.0)

 

$

(15.0)

Total revenues

 

$

2,705.0

to

$

2,725.0

 

$

(12.0)

 

$

(8.0)

Tower Cash Flow (2)

 

$

2,011.0

to

$

2,021.0

 

$

2.0

 

$

4.0

Adjusted EBITDA (2)

 

$

1,886.0

to

$

1,896.0

 

$

3.0

 

$

4.0

Net cash interest expense (3)

 

$

380.0

to

$

385.0

 

$

 

$

Non-discretionary cash capital expenditures (4)

 

$

54.0

to

$

59.0

 

$

(0.5)

 

$

(0.5)

AFFO (2)

 

$

1,406.0

to

$

1,430.0

 

$

2.0

 

$

3.0

AFFO per share (2) (5)

 

$

12.91

to

$

13.13

 

$

0.04

 

$

0.05

Discretionary cash capital expenditures (6)

 

$

335.0

to

$

345.0

 

$

(5.0)

 

$

(4.0)

(1)

The Company’s Outlook for site leasing revenue includes revenue associated with pass through reimbursable expenses.

(2)

See the reconciliation of this non-GAAP financial measure presented below under “Non-GAAP Financial Measures.”

(3)

Net cash interest expense is defined as interest expense less interest income. Net cash interest expense does not include amortization of deferred financing fees or non-cash interest expense.

(4)

Consists of tower maintenance and general corporate capital expenditures.

(5)

Outlook for AFFO per share is calculated by dividing the Company’s outlook for AFFO by an assumed weighted average number of diluted common shares of 108.9 million. Outlook does not include the impact of any potential future repurchases of the Company’s stock during 2023.

(6)

Consists of new tower builds, tower augmentations, communication site acquisitions and ground lease purchases. Does not include expenditures for acquisitions of revenue producing assets not under contract at the date of this press release.

(7)

Changes from prior outlook are measured based on the midpoint of outlook ranges provided.

Conference Call Information

SBA Communications Corporation will host a conference call on Thursday, November 2, 2023 at 5:00 PM (EDT) to discuss the quarterly results. The call may be accessed as follows:

When:

Thursday, November 2, 2023 at 5:00 PM (EDT)

Dial-in Number:

(877) 692-8955

Access Code:

435962

Conference Name:

SBA Third quarter 2023 results

Replay Available:

November 2, 2023 at 11:00 PM to November 16, 2023 at 11:55 PM (TZ: Eastern)

Replay Number:

(866) 207-1041 – Access Code: 1475236

Internet Access:

www.sbasite.com

Information Concerning Forward-Looking Statements

This press release and the Company’s earnings call include forward-looking statements, including statements regarding the Company’s expectations or beliefs regarding (i) execution of the Company’s growth strategies and the impacts to its financial performance, (ii) future discretionary spending and the sufficiency of the Company’s cash position and dividend coverage, (iii) the Company’s outlook for financial and operational performance in 2023, the assumptions it made and the drivers contributing to its updated full year guidance, (iv) the timing of closing for currently pending acquisitions, (v) the Company’s tower portfolio growth and positioning for future growth, and (vi) foreign exchange rates and their impact on the Company’s financial and operational guidance and the Company’s updated 2023 Outlook.

The Company wishes to caution readers that these forward-looking statements may be affected by the risks and uncertainties in the Company’s business as well as other important factors may have affected and could in the future affect the Company’s actual results and could cause the Company’s actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company. With respect to the Company’s expectations regarding all of these statements, including its financial and operational guidance, such risk factors include, but are not limited to: (1) the impact of recent macro-economic conditions, including increasing interest rates, inflation and financial market volatility on (a) the ability and willingness of wireless service providers to maintain or increase their capital expenditures, (b) the Company’s business and results of operations, and on foreign currency exchange rates and (c) consumer demand for wireless services, (2) the economic climate for the wireless communications industry in general and the wireless communications infrastructure providers in particular in the United States, Brazil, South Africa, Tanzania, and in other international markets; (3) the Company’s ability to accurately identify and manage any risks associated with its acquired sites, to effectively integrate such sites into its business and to achieve the anticipated financial results; (4) the Company’s ability to secure and retain as many site leasing tenants as planned at anticipated lease rates; (5) the Company’s ability to manage expenses and cash capital expenditures at anticipated levels; (6) the impact of continued consolidation among wireless service providers in the U.S. and internationally, on the Company’s leasing revenue and the ability of Dish to compete as a nationwide carrier; (7) the Company’s ability to successfully manage the risks associated with international operations, including risks associated with foreign currency exchange rates; (8) the Company’s ability to secure and deliver anticipated services business at contemplated margins; (9) the Company’s ability to acquire land underneath towers on terms that are accretive; (10) the Company’s ability to obtain future financing at commercially reasonable rates or at all; (11) the Company’s ability to achieve the new builds targets included in its anticipated annual portfolio growth goals, which will depend, among other things, on obtaining zoning and regulatory approvals, availability of labor and supplies, and other factors beyond the Company’s control that could affect the Company’s ability to build additional towers in 2023; and (12) the Company’s ability to meet its total portfolio growth, which will depend, in addition to the new build risks, on the Company’s ability to identify and acquire sites at prices and upon terms that will provide accretive portfolio growth, competition from third parties for such acquisitions and our ability to negotiate the terms of, and acquire, these potential tower portfolios on terms that meet our internal return criteria.

With respect to its expectations regarding the ability to close pending acquisitions, these factors also include satisfactorily completing due diligence, the amount and quality of due diligence that the Company is able to complete prior to closing of any acquisition, the ability to receive required regulatory approval, the ability and willingness of each party to fulfill their respective closing conditions and their contractual obligations and the availability of cash on hand or borrowing capacity under the Revolving Credit Facility to fund the consideration, its ability to accurately anticipate the future performance of the acquired towers and any challenges or costs associated with the integration of such towers. With respect to the repurchases under the Company’s stock repurchase program, the amount of shares repurchased, if any, and the timing of such repurchases will depend on, among other things, the trading price of the Company’s common stock, which may be positively or negatively impacted by the repurchase program, market and business conditions, the availability of stock, the Company’s financial performance or determinations following the date of this announcement in order to use the Company’s funds for other purposes. Furthermore, the Company’s forward-looking statements and its 2023 outlook assumes that the Company continues to qualify for treatment as a REIT for U.S. federal income tax purposes and that the Company’s business is currently operated in a manner that complies with the REIT rules and that it will be able to continue to comply with and conduct its business in accordance with such rules. In addition, these forward-looking statements and the information in this press release is qualified in its entirety by cautionary statements and risk factor disclosures contained in the Company’s Securities and Exchange Commission filings, including the Company’s most recently filed Annual Report on Form 10-K.

This press release contains non-GAAP financial measures. Reconciliation of each of these non-GAAP financial measures and the other Regulation G information is presented below under “Non-GAAP Financial Measures.”

This press release will be available on our website at www.sbasite.com.

About SBA Communications Corporation

SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. With a portfolio of more than 39,000 communications sites in 16 markets throughout the Americas, Africa and the Philippines, SBA is listed on NASDAQ under the symbol SBAC. Our organization is part of the S&P 500 and is one of the top Real Estate Investment Trusts (REITs) by market capitalization. For more information, please visit: www.sbasite.com.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited) (in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months

 

For the nine months

 

 

ended September 30,

 

ended September 30,

 

 

2023

 

2022

 

2023

 

2022

Revenues:

 

 

 

 

 

 

 

 

Site leasing

 

$

637,440

 

 

$

587,302

 

 

$

1,880,851

 

 

$

1,726,967

 

Site development

 

 

45,104

 

 

 

88,282

 

 

 

155,709

 

 

 

220,393

 

Total revenues

 

 

682,544

 

 

 

675,584

 

 

 

2,036,560

 

 

 

1,947,360

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues (exclusive of depreciation, accretion,

 

 

 

 

 

 

 

 

 

 

 

 

and amortization shown below):

 

 

 

 

 

 

 

 

 

 

 

 

Cost of site leasing

 

 

118,277

 

 

 

112,013

 

 

 

353,411

 

 

 

330,682

 

Cost of site development

 

 

31,493

 

 

 

65,540

 

 

 

114,914

 

 

 

165,809

 

Selling, general, and administrative expenses (1)

 

 

64,821

 

 

 

65,843

 

 

 

200,412

 

 

 

191,241

 

Acquisition and new business initiatives related

 

 

 

 

 

 

 

 

 

 

 

 

adjustments and expenses

 

 

5,612

 

 

 

6,844

 

 

 

16,622

 

 

 

18,776

 

Asset impairment and decommission costs

 

 

33,063

 

 

 

8,532

 

 

 

92,320

 

 

 

25,565

 

Depreciation, accretion, and amortization

 

 

180,674

 

 

 

173,825

 

 

 

544,909

 

 

 

524,541

 

Total operating expenses

 

 

433,940

 

 

 

432,597

 

 

 

1,322,588

 

 

 

1,256,614

 

Operating income

 

 

248,604

 

 

 

242,987

 

 

 

713,972

 

 

 

690,746

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

5,266

 

 

 

2,858

 

 

 

12,765

 

 

 

6,878

 

Interest expense

 

 

(99,322

)

 

 

(86,961

)

 

 

(301,835

)

 

 

(253,528

)

Non-cash interest expense

 

 

(7,898

)

 

 

(11,528

)

 

 

(29,655

)

 

 

(34,582

)

Amortization of deferred financing fees

 

 

(5,097

)

 

 

(4,955

)

 

 

(15,129

)

 

 

(14,758

)

Other (expense) income, net

 

 

(48,330

)

 

 

(39,756

)

 

 

29,961

 

 

 

2,262

 

Total other expense, net

 

 

(155,381

)

 

 

(140,342

)

 

 

(303,893

)

 

 

(293,728

)

Income before income taxes

 

 

93,223

 

 

 

102,645

 

 

 

410,079

 

 

 

397,018

 

Provision for income taxes

 

 

(7,861

)

 

 

(2,883

)

 

 

(22,192

)

 

 

(39,797

)

Net income

 

 

85,362

 

 

 

99,762

 

 

 

387,887

 

 

 

357,221

 

Net loss attributable to noncontrolling interests

 

 

2,057

 

 

 

247

 

 

 

4,397

 

 

 

929

 

Net income attributable to SBA Communications

 

 

 

 

 

 

 

 

 

 

 

 

Corporation

 

$

87,419

 

 

$

100,009

 

 

$

392,284

 

 

$

358,150

 

Net income per common share attributable to SBA

 

 

 

 

 

 

 

 

 

 

 

 

Communications Corporation:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.81

 

 

$

0.93

 

 

$

3.62

 

 

$

3.32

 

Diluted

 

$

0.80

 

 

$

0.91

 

 

$

3.60

 

 

$

3.27

 

Weighted-average number of common shares

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

108,373

 

 

 

107,916

 

 

 

108,288

 

 

 

107,950

 

Diluted

 

 

108,891

 

 

 

109,358

 

 

 

109,017

 

 

 

109,416

 

(1)

Includes non-cash compensation of $20,615 and $24,945 for the three months ended September 30, 2023 and 2022, respectively, and $63,709 and $72,309 for the nine months ended September 30, 2023 and 2022, respectively.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par values)

 

 

 

 

 

 

September 30,

 

December 31,

 

 

2023

 

2022

ASSETS

 

(unaudited)

 

 

 

Current assets:

 

Cash and cash equivalents

 

$

190,545

 

 

$

143,708

 

Restricted cash

 

 

37,221

 

 

 

41,959

 

Accounts receivable, net

 

 

158,333

 

 

 

184,368

 

Costs and estimated earnings in excess of billings on uncompleted contracts

 

 

28,334

 

 

 

79,549

 

Prepaid expenses and other current assets

 

 

45,550

 

 

 

33,149

 

Total current assets

 

 

459,983

 

 

 

482,733

 

Property and equipment, net

 

 

2,700,717

 

 

 

2,713,727

 

Intangible assets, net

 

 

2,523,620

 

 

 

2,776,472

 

Operating lease right-of-use assets, net

 

 

2,315,868

 

 

 

2,381,955

 

Acquired and other right-of-use assets, net

 

 

1,488,762

 

 

 

1,507,781

 

Other assets

 

 

845,231

 

 

 

722,373

 

Total assets

 

$

10,334,181

 

 

$

10,585,041

 

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS,

 

 

 

 

 

 

AND SHAREHOLDERS' DEFICIT

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable

 

$

46,613

 

 

$

51,427

 

Accrued expenses

 

 

92,700

 

 

 

101,484

 

Current maturities of long-term debt

 

 

24,000

 

 

 

24,000

 

Deferred revenue

 

 

175,804

 

 

 

154,553

 

Accrued interest

 

 

30,106

 

 

 

54,173

 

Current lease liabilities

 

 

272,435

 

 

 

262,365

 

Other current liabilities

 

 

21,490

 

 

 

48,762

 

Total current liabilities

 

 

663,148

 

 

 

696,764

 

Long-term liabilities:

 

 

 

 

 

 

Long-term debt, net

 

 

12,491,102

 

 

 

12,844,162

 

Long-term lease liabilities

 

 

1,979,150

 

 

 

2,040,628

 

Other long-term liabilities

 

 

332,220

 

 

 

248,067

 

Total long-term liabilities

 

 

14,802,472

 

 

 

15,132,857

 

Redeemable noncontrolling interests

 

 

35,047

 

 

 

31,735

 

Shareholders' deficit:

 

 

 

 

 

 

Preferred stock - par value $0.01, 30,000 shares authorized, no shares issued or outstanding

 

 

 

 

 

 

Common stock - Class A, par value $0.01, 400,000 shares authorized, 108,120 shares and

 

 

 

 

 

 

107,997 shares issued and outstanding at September 30, 2023 and December 31, 2022,

 

 

 

 

 

 

respectively

 

 

1,081

 

 

 

1,080

 

Additional paid-in capital

 

 

2,848,463

 

 

 

2,795,176

 

Accumulated deficit

 

 

(7,421,725

)

 

 

(7,482,061

)

Accumulated other comprehensive loss, net

 

 

(594,305

)

 

 

(590,510

)

Total shareholders' deficit

 

 

(5,166,486

)

 

 

(5,276,315

)

Total liabilities, redeemable noncontrolling interests, and shareholders' deficit

 

$

10,334,181

 

 

$

10,585,041

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited) (in thousands)

 

 

 

 

 

 

 

 

 

For the three months

 

 

ended September 30,

 

 

2023

 

2022

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

$

85,362

 

 

$

99,762

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation, accretion, and amortization

 

 

180,674

 

 

 

173,825

 

Loss on remeasurement of U.S. denominated intercompany loans

 

 

46,516

 

 

 

37,427

 

Non-cash compensation expense

 

 

21,374

 

 

 

25,492

 

Non-cash asset impairment and decommission costs

 

 

29,284

 

 

 

8,237

 

Deferred and non-cash income tax benefit

 

 

(1,204

)

 

 

(7,480

)

Other non-cash items reflected in the Statements of Operations

 

 

17,242

 

 

 

19,051

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

 

 

Accounts receivable and costs and estimated earnings in excess of

 

 

 

 

 

 

billings on uncompleted contracts, net

 

 

9,107

 

 

 

(25,817

)

Prepaid expenses and other assets

 

 

(5,513

)

 

 

(16,641

)

Operating lease right-of-use assets, net

 

 

36,084

 

 

 

35,591

 

Accounts payable and accrued expenses

 

 

6,247

 

 

 

16,126

 

Accrued interest

 

 

(24,833

)

 

 

(25,734

)

Long-term lease liabilities

 

 

(34,848

)

 

 

(33,102

)

Other liabilities

 

 

(51,811

)

 

 

25,732

 

Net cash provided by operating activities

 

 

313,681

 

 

 

332,469

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Acquisitions

 

 

(53,114

)

 

 

(65,143

)

Capital expenditures

 

 

(61,393

)

 

 

(57,377

)

Sale of investments, net

 

 

20,369

 

 

 

15,256

 

Other investing activities

 

 

(9,392

)

 

 

1,648

 

Net cash used in investing activities

 

 

(103,530

)

 

 

(105,616

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Net repayments under Revolving Credit Facility

 

 

(80,000

)

 

 

(120,000

)

Repurchase and retirement of common stock

 

 

(53,652

)

 

 

 

Payment of dividends on common stock

 

 

(92,131

)

 

 

(76,664

)

Proceeds from employee stock purchase/stock option plans

 

 

1,750

 

 

 

13,505

 

Other financing activities

 

 

(6,743

)

 

 

(6,905

)

Net cash used in financing activities

 

 

(230,776

)

 

 

(190,064

)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

 

(2,800

)

 

 

(7,893

)

NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

 

 

(23,425

)

 

 

28,896

 

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH:

 

 

 

 

 

 

Beginning of period

 

 

255,509

 

 

 

250,978

End of period

 

$

232,084

 

 

$

279,874

Selected Capital Expenditure Detail

 

 

For the three

 

For the nine

 

 

months ended

 

months ended

 

 

September 30, 2023

 

September 30, 2023

 

 

(in thousands)

Construction and related costs

 

$

23,906

 

$

70,485

Augmentation and tower upgrades

 

 

22,809

 

 

62,301

Non-discretionary capital expenditures:

 

 

 

 

 

 

Tower maintenance

 

 

12,962

 

 

37,101

General corporate

 

 

1,716

 

 

4,089

Total non-discretionary capital expenditures

 

 

14,678

 

 

41,190

Total capital expenditures

 

$

61,393

 

$

173,976

Communication Site Portfolio Summary

 

 

Domestic

 

International

 

Total

Sites owned at June 30, 2023

 

17,426

 

 

22,000

 

 

39,426

 

Sites acquired during the third quarter

 

44

 

 

1

 

 

45

 

Sites built during the third quarter

 

3

 

 

83

 

 

86

 

Sites decommissioned/reclassified during the third quarter

 

(4

)

 

(7

)

 

(11

)

Sites owned at September 30, 2023

 

17,469

 

 

22,077

 

 

39,546

 

Segment Operating Profit and Segment Operating Profit Margin

Domestic site leasing and International site leasing are the two segments within our site leasing business. Segment operating profit is a key business metric and one of our two measures of segment profitability. The calculation of Segment operating profit for each of our segments is set forth below.

 

 

Domestic Site Leasing

 

Int'l Site Leasing

 

Site Development

 

 

For the three months

 

For the three months

 

For the three months

 

 

ended September 30,

 

ended September 30,

 

ended September 30,

 

 

2023

 

2022

 

2023

 

2022

 

2023

 

2022

 

 

(in thousands)

Segment revenue

 

$

468,371

 

 

$

449,595

 

 

$

169,069

 

 

$

137,707

 

 

$

45,104

 

 

$

88,282

 

Segment cost of revenues (excluding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

depreciation, accretion, and amort.)

 

 

(66,768

)

 

 

(66,423

)

 

 

(51,509

)

 

 

(45,590

)

 

 

(31,493

)

 

 

(65,540

)

Segment operating profit

 

$

401,603

 

 

$

383,172

 

 

$

117,560

 

 

$

92,117

 

 

$

13,611

 

 

$

22,742

 

Segment operating profit margin

 

 

85.7

%

 

 

85.2

%

 

 

69.5

%

 

 

66.9

%

 

 

30.2

%

 

 

25.8

%

Non-GAAP Financial Measures

The press release contains non-GAAP financial measures including (i) Cash Site Leasing Revenue, Tower Cash Flow, and Tower Cash Flow Margin; (ii) Adjusted EBITDA, Annualized Adjusted EBITDA, and Adjusted EBITDA Margin; (iii) Funds from Operations (“FFO”), Adjusted Funds from Operations (“AFFO”), and AFFO per share; (iv) Net Debt, Net Secured Debt, Leverage Ratio, and Secured Leverage Ratio (collectively, our “Non-GAAP Debt Measures”); and (v) certain financial metrics after eliminating the impact of changes in foreign currency exchange rates (collectively, our “Constant Currency Measures”).

We have included these non-GAAP financial measures because we believe that they provide investors additional tools in understanding our financial performance and condition.

Specifically, we believe that:

(1) Cash Site Leasing Revenue and Tower Cash Flow are useful indicators of the performance of our site leasing operations;

(2) Adjusted EBITDA is useful to investors or other interested parties in evaluating our financial performance. Adjusted EBITDA is the primary measure used by management (1) to evaluate the economic productivity of our operations and (2) for purposes of making decisions about allocating resources to, and assessing the performance of, our operations. Management believes that Adjusted EBITDA helps investors or other interested parties meaningfully evaluate and compare the results of our operations (1) from period to period and (2) to our competitors, by excluding the impact of our capital structure (primarily interest charges from our outstanding debt) and asset base (primarily depreciation, amortization and accretion) from our financial results. Management also believes Adjusted EBITDA is frequently used by investors or other interested parties in the evaluation of REITs. In addition, Adjusted EBITDA is similar to the measure of current financial performance generally used in our debt covenant calculations. Adjusted EBITDA should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance;

(3) FFO, AFFO and AFFO per share, which are metrics used by our public company peers in the communication site industry, provide investors useful indicators of the financial performance of our business and permit investors an additional tool to evaluate the performance of our business against those of our two principal competitors. FFO, AFFO, and AFFO per share are also used to address questions we receive from analysts and investors who routinely assess our operating performance on the basis of these performance measures, which are considered industry standards. We believe that FFO helps investors or other interested parties meaningfully evaluate financial performance by excluding the impact of our asset base (primarily depreciation, amortization and accretion and asset impairment and decommission costs). We believe that AFFO and AFFO per share help investors or other interested parties meaningfully evaluate our financial performance as they include (1) the impact of our capital structure (primarily interest expense on our outstanding debt) and (2) sustaining capital expenditures and exclude the impact of (1) our asset base (primarily depreciation, amortization and accretion and asset impairment and decommission costs) and (2) certain non-cash items, including straight-lined revenues and expenses related to fixed escalations and rent free periods and the non-cash portion of our reported tax provision. GAAP requires rental revenues and expenses related to leases that contain specified rental increases over the life of the lease to be recognized evenly over the life of the lease. In accordance with GAAP, if payment terms call for fixed escalations, or rent free periods, the revenue or expense is recognized on a straight-lined basis over the fixed, non-cancelable term of the contract. We only use AFFO as a performance measure. AFFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance and should not be considered as an alternative to cash flows from operations or as residual cash flow available for discretionary investment. We believe our definition of FFO is consistent with how that term is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) and that our definition and use of AFFO and AFFO per share is consistent with those reported by the other communication site companies;

(4) Our Non-GAAP Debt Measures provide investors a more complete understanding of our net debt and leverage position as they include the full principal amount of our debt which will be due at maturity and, to the extent that such measures are calculated on Net Debt are net of our cash and cash equivalents, short-term restricted cash, and short-term investments; and

(5) Our Constant Currency Measures provide management and investors the ability to evaluate the performance of the business without the impact of foreign currency exchange rate fluctuations.

In addition, Tower Cash Flow, Adjusted EBITDA, and our Non-GAAP Debt Measures are components of the calculations used by our lenders to determine compliance with certain covenants under our Senior Credit Agreement and indentures relating to our 2020 Senior Notes and 2021 Senior Notes. These non-GAAP financial measures are not intended to be an alternative to any of the financial measures provided in our results of operations or our balance sheet as determined in accordance with GAAP.

Financial Metrics after Eliminating the Impact of Changes In Foreign Currency Exchange Rates

We eliminate the impact of changes in foreign currency exchange rates for each of the financial metrics listed in the table below by dividing the current period’s financial results by the average monthly exchange rates of the prior year period, and by eliminating the impact of the remeasurement of our intercompany loans. The table below provides the reconciliation of the reported growth rate year-over-year of each of such measures to the growth rate after eliminating the impact of changes in foreign currency exchange rates to such measure.

 

 

Third quarter

 

 

 

 

 

 

2023 year

 

Foreign

 

Growth excluding

 

 

over year

 

currency

 

foreign

 

 

growth rate

 

impact

 

currency impact

Total site leasing revenue

 

8.5%

 

0.8%

 

7.7%

Total cash site leasing revenue

 

9.5%

 

0.8%

 

8.7%

Int'l cash site leasing revenue

 

22.4%

 

3.5%

 

18.9%

Total site leasing segment operating profit

 

9.2%

 

0.7%

 

8.5%

Int'l site leasing segment operating profit

 

27.6%

 

3.9%

 

23.7%

Total site leasing tower cash flow

 

10.3%

 

0.8%

 

9.5%

Int'l site leasing tower cash flow

 

27.2%

 

3.9%

 

23.3%

Net income

 

(14.4%)

 

(6.0%)

 

(8.4%)

Earnings per share - diluted

 

(12.2%)

 

(4.4%)

 

(7.8%)

Adjusted EBITDA

 

7.9%

 

0.8%

 

7.1%

AFFO

 

7.3%

 

1.1%

 

6.2%

AFFO per share

 

7.7%

 

0.9%

 

6.8%

Cash Site Leasing Revenue, Tower Cash Flow, and Tower Cash Flow Margin

The table below sets forth the reconciliation of Cash Site Leasing Revenue and Tower Cash Flow to their most comparable GAAP measurement and Tower Cash Flow Margin, which is calculated by dividing Tower Cash Flow by Cash Site Leasing Revenue.

 

 

Domestic Site Leasing

 

Int'l Site Leasing

 

Total Site Leasing

 

 

For the three months

 

For the three months

 

For the three months

 

 

ended September 30,

 

ended September 30,

 

ended September 30,

 

 

2023

 

2022

 

2023

 

2022

 

2023

 

2022

 

 

(in thousands)

Site leasing revenue

 

$

468,371

 

 

$

449,595

 

 

$

169,069

 

 

$

137,707

 

 

$

637,440

 

 

$

587,302

 

Non-cash straight-line leasing revenue

 

 

(7,371

)

 

 

(12,350

)

 

 

323

 

 

 

664

 

 

 

(7,048

)

 

 

(11,686

)

Cash site leasing revenue

 

 

461,000

 

 

 

437,245

 

 

 

169,392

 

 

 

138,371

 

 

 

630,392

 

 

 

575,616

 

Site leasing cost of revenues (excluding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

depreciation, accretion, and amortization)

 

 

(66,768

)

 

 

(66,423

)

 

 

(51,509

)

 

 

(45,590

)

 

 

(118,277

)

 

 

(112,013

)

Non-cash straight-line ground lease expense

 

 

(1,062

)

 

 

82

 

 

 

634

 

 

 

396

 

 

 

(428

)

 

 

478

 

Tower Cash Flow

 

$

393,170

 

 

$

370,904

 

 

$

118,517

 

 

$

93,177

 

 

$

511,687

 

 

$

464,081

 

Tower Cash Flow Margin

 

 

85.3

%

 

 

84.8

%

 

 

70.0

%

 

 

67.3

%

 

 

81.2

%

 

 

80.6

%

Forecasted Tower Cash Flow for Full Year 2023

The table below sets forth the reconciliation of forecasted Tower Cash Flow set forth in the Outlook section to its most comparable GAAP measurement for the full year 2023:

 

 

Full Year 2023

 

 

(in millions)

Site leasing revenue

 

$

2,510.0

 

to

$

2,520.0

 

Non-cash straight-line leasing revenue

 

 

(29.0

)

to

 

(24.0

)

Cash site leasing revenue

 

 

2,481.0

 

to

 

2,496.0

 

Site leasing cost of revenues (excluding

 

 

 

 

 

 

depreciation, accretion, and amortization)

 

 

(467.5

)

to

 

(477.5

)

Non-cash straight-line ground lease expense

 

 

(2.5

)

to

 

2.5

 

Tower Cash Flow

 

$

2,011.0

 

to

$

2,021.0

 

Adjusted EBITDA, Annualized Adjusted EBITDA, and Adjusted EBITDA Margin

The table below sets forth the reconciliation of Adjusted EBITDA to its most comparable GAAP measurement.

 

 

For the three months

 

 

ended September 30,

 

 

2023

 

2022

 

 

(in thousands)

Net income

 

$

85,362

 

 

$

99,762

 

Non-cash straight-line leasing revenue

 

 

(7,048

)

 

 

(11,686

)

Non-cash straight-line ground lease expense

 

 

(428

)

 

 

478

 

Non-cash compensation

 

 

21,374

 

 

 

25,492

 

Other expense, net

 

 

48,330

 

 

 

39,756

 

Acquisition and new business initiatives related adjustments and expenses

 

 

5,612

 

 

 

6,844

 

Asset impairment and decommission costs

 

 

33,063

 

 

 

8,532

 

Interest income

 

 

(5,266

)

 

 

(2,858

)

Total interest expense (1)

 

 

112,317

 

 

 

103,444

 

Depreciation, accretion, and amortization

 

 

180,674

 

 

 

173,825

 

Provision for taxes (2)

 

 

8,141

 

 

 

3,170

 

Adjusted EBITDA

 

$

482,131

 

 

$

446,759

 

Annualized Adjusted EBITDA (3)

 

$

1,928,524

 

 

$

1,787,036

 

(1)

Total interest expense includes interest expense, non-cash interest expense, and amortization of deferred financing fees.

(2)

For the three months ended September 30, 2023 and 2022, these amounts included $280 and $287, respectively, of franchise and gross receipts taxes reflected in the Statements of Operations in selling, general and administrative expenses.

(3)

Annualized Adjusted EBITDA is calculated as Adjusted EBITDA for the most recent quarter multiplied by four.

The calculation of Adjusted EBITDA Margin is as follows:

 

 

For the three months

 

 

ended September 30,

 

 

2023

 

2022

 

 

(in thousands)

Total revenues

 

$

682,544

 

 

$

675,584

 

Non-cash straight-line leasing revenue

 

 

(7,048

)

 

 

(11,686

)

Total revenues minus non-cash straight-line leasing revenue

 

$

675,496

 

 

$

663,898

 

Adjusted EBITDA

 

$

482,131

 

 

$

446,759

 

Adjusted EBITDA Margin

 

 

71.4

%

 

 

67.3

%

Forecasted Adjusted EBITDA for Full Year 2023

The table below sets forth the reconciliation of the forecasted Adjusted EBITDA set forth in the Outlook section to its most comparable GAAP measurement for the full year 2023:

 

 

Full Year 2023

 

 

(in millions)

Net income

 

$

527.0

to

$

561.0

Non-cash straight-line leasing revenue

 

 

(29.0)

to

 

(24.0)

Non-cash straight-line ground lease expense

 

 

(2.5)

to

 

2.5

Non-cash compensation

 

 

87.5

to

 

82.5

Other income, net

 

 

(37.0)

to

 

(37.0)

Acquisition and new business initiatives related adjustments and expenses

 

 

24.5

to

 

19.5

Asset impairment and decommission costs

 

 

120.0

to

 

115.0

Interest income

 

 

(20.5)

to

 

(15.5)

Total interest expense (1)

 

 

462.5

to

 

452.5

Depreciation, accretion, and amortization

 

 

718.0

to

 

708.0

Provision for taxes (2)

 

 

35.5

to

 

31.5

Adjusted EBITDA

 

$

1,886.0

to

$

1,896.0

(1)

Total interest expense includes interest expense, non-cash interest expense, and amortization of deferred financing fees.

(2)

Includes projections for franchise taxes and gross receipts taxes, which will be reflected in the Statement of Operations in Selling, general, and administrative expenses.

Funds from Operations (“FFO”), Adjusted Funds from Operations (“AFFO”), and AFFO per share

The tables below set forth the reconciliations of FFO, AFFO, and AFFO per share to their most comparable GAAP measurement.

 

 

For the three months

 

 

ended September 30,

 

 

2023

 

2022

 

 

(in thousands)

 

($ per share)

 

(in thousands)

 

($ per share)

Net income

 

$

85,362

 

 

$

0.78

 

 

$

99,762

 

 

$

0.91

 

Real estate related depreciation, amortization, and accretion

 

 

179,076

 

 

 

1.64

 

 

 

172,551

 

 

 

1.58

 

Asset impairment and decommission costs

 

 

33,063

 

 

 

0.30

 

 

 

8,532

 

 

 

0.08

 

FFO

 

$

297,501

 

 

$

2.72

 

 

$

280,845

 

 

$

2.57

 

Adjustments to FFO:

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash straight-line leasing revenue

 

 

(7,048

)

 

 

(0.06

)

 

 

(11,686

)

 

 

(0.11

)

Non-cash straight-line ground lease expense

 

 

(428

)

 

 

 

 

 

478

 

 

 

 

Non-cash compensation

 

 

21,374

 

 

 

0.20

 

 

 

25,492

 

 

 

0.23

 

Adjustment for non-cash portion of tax benefit

 

 

(1,205

)

 

 

(0.01

)

 

 

(7,480

)

 

 

(0.07

)

Non-real estate related depreciation,

 

 

 

 

 

 

 

 

 

 

 

 

amortization, and accretion

 

 

1,598

 

 

 

0.01

 

 

 

1,274

 

 

 

0.01

 

Amortization of deferred financing costs and

 

 

 

 

 

 

 

 

 

 

 

 

debt discounts and non-cash interest expense

 

 

12,995

 

 

 

0.12

 

 

 

16,483

 

 

 

0.15

 

Other expense, net

 

 

48,330

 

 

 

0.44

 

 

 

39,756

 

 

 

0.37

 

Acquisition and new business initiatives related adjustments

 

 

 

 

 

 

 

 

 

 

 

 

and expenses

 

 

5,612

 

 

 

0.05

 

 

 

6,844

 

 

 

0.06

 

Non-discretionary cash capital expenditures

 

 

(14,678

)

 

 

(0.13

)

 

 

(12,565

)

 

 

(0.11

)

AFFO

 

$

364,051

 

 

$

3.34

 

 

$

339,441

 

 

$

3.10

 

Adjustments for joint venture partner interest

 

 

(1,217

)

 

 

(0.01

)

 

 

(868

)

 

 

(0.01

)

AFFO attributable to SBA Communications

 

 

 

 

 

 

 

 

 

 

 

 

Corporation

 

$

362,834

 

 

$

3.33

 

 

$

338,573

 

 

$

3.09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average number of common shares

 

 

 

 

 

108,891

 

 

 

 

 

 

109,358

 

Forecasted AFFO for the Full Year 2023

The tables below set forth the reconciliations of the forecasted AFFO and AFFO per share set forth in the Outlook section to their most comparable GAAP measurements for the full year 2023:

(in millions, except per share amounts)

 

Full Year 2023

 

 

(in millions)

 

($ per share)

Net income

 

$

527.0

 

to

$

561.0

 

 

$

4.84

 

to

$

5.15

 

Real estate related depreciation, amortization,

 

 

 

 

 

 

 

 

 

 

 

 

and accretion

 

 

708.5

 

to

 

703.5

 

 

 

6.51

 

to

 

6.46

 

Asset impairment and decommission costs

 

 

120.0

 

to

 

115.0

 

 

 

1.10

 

to

 

1.06

 

FFO

 

$

1,355.5

 

to

$

1,379.5

 

 

$

12.45

 

to

$

12.67

 

Adjustments to FFO:

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash straight-line leasing revenue

 

 

(29.0

)

to

 

(24.0

)

 

 

(0.27

)

to

 

(0.22

)

Non-cash straight-line ground lease expense

 

 

(2.5

)

to

 

2.5

 

 

 

(0.02

)

to

 

0.02

 

Non-cash compensation

 

 

87.5

 

to

 

82.5

 

 

 

0.80

 

to

 

0.76

 

Adjustment for non-cash portion of tax benefit

 

 

(1.0

)

to

 

(1.0

)

 

 

(0.01

)

to

 

(0.01

)

Non-real estate related depreciation,

 

 

 

 

 

 

 

 

 

 

 

 

amortization, and accretion

 

 

9.5

 

to

 

4.5

 

 

 

0.09

 

to

 

0.04

 

Amortization of deferred financing costs and

 

 

 

 

 

 

 

 

 

 

 

 

debt discounts and non-cash interest expense

 

 

57.5

 

to

 

57.5

 

 

 

0.53

 

to

 

0.53

 

Other income, net

 

 

(37.0

)

to

 

(37.0

)

 

 

(0.34

)

to

 

(0.34

)

Acquisition and new business initiatives related

 

 

 

 

 

 

 

 

 

 

 

 

adjustments and expenses

 

 

24.5

 

to

 

19.5

 

 

 

0.22

 

to

 

0.18

 

Non-discretionary cash capital expenditures

 

 

(59.0

)

to

 

(54.0

)

 

 

(0.54

)

to

 

(0.50

)

AFFO

 

$

1,406.0

 

to

$

1,430.0

 

 

$

12.91

 

to

$

13.13

 

Adjustments for joint venture partner interest

 

 

(5.0

)

to

 

(5.0

)

 

 

(0.05

)

to

 

(0.05

)

AFFO attributable to SBA Communications

 

 

 

 

 

 

 

 

 

 

 

 

Corporation

 

$

1,401.0

 

to

$

1,425.0

 

 

$

12.86

 

to

$

13.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average number of common shares (1)

 

 

 

 

 

 

 

 

108.9

 

to

 

108.9

 

(1)

Our assumption for weighted average number of common shares does not contemplate any additional repurchases of the Company’s stock during 2023.

Net Debt, Net Secured Debt, Leverage Ratio, and Secured Leverage Ratio

Net Debt is calculated using the notional principal amount of outstanding debt. Under GAAP policies, the notional principal amount of the Company's outstanding debt is not necessarily reflected on the face of the Company's financial statements.

The Net Debt and Leverage calculations are as follows:

 

September 30,

 

2023

 

(in thousands)

2014-2C Tower Securities

$

620,000

 

2019-1C Tower Securities

 

1,165,000

 

2020-1C Tower Securities

 

750,000

 

2020-2C Tower Securities

 

600,000

 

2021-1C Tower Securities

 

1,165,000

 

2021-2C Tower Securities

 

895,000

 

2021-3C Tower Securities

 

895,000

 

2022-1C Tower Securities

 

850,000

 

Revolving Credit Facility

 

370,000

 

2018 Term Loan

 

2,274,000

 

Total secured debt

 

9,584,000

 

2020 Senior Notes

 

1,500,000

 

2021 Senior Notes

 

1,500,000

 

Total unsecured debt

 

3,000,000

 

Total debt

$

12,584,000

 

Leverage Ratio

 

 

Total debt

$

12,584,000

 

Less: Cash and cash equivalents, short-term restricted cash and short-term investments

 

(228,907

)

Net debt

$

12,355,093

 

Divided by: Annualized Adjusted EBITDA

$

1,928,524

 

Leverage Ratio

 

6.4x

Secured Leverage Ratio

 

 

Total secured debt

$

9,584,000

 

Less: Cash and cash equivalents, short-term restricted cash and short-term investments

 

(228,907

)

Net Secured Debt

$

9,355,093

 

Divided by: Annualized Adjusted EBITDA

$

1,928,524

 

Secured Leverage Ratio

 

4.9x

 

Contacts

Mark DeRussy, CFA

Capital Markets

561-226-9531

Lynne Hopkins

Media Relations

561-226-9431

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