SBA Communications Corporation (SBAC) reported second-quarter 2024 adjusted funds from operations (AFFO) per share of $3.29, beating the Zacks Consensus Estimate by a whisker. Moreover, the figure reflects a rise of 1.5% from the prior-year quarter. Quarterly total revenues decreased 2.7% year over year to $660.5 million. The figure also missed the Zacks Consensus Estimate of $664.5 million. Quarter in Detail However, site development revenues decreased 35% year over year to $34 million. The overall operati ...

SBA Communications Corporation (NASDAQ:SBAC) Q2 2024 Earnings Call Transcript July 29, 2024 5:00 PM ET Company Participants Mark DeRussy - VP of Finance Brendan Cavanagh - CEO Marc Montagner - CFO Conference Call Participants David Barden - Bank of America Simon Flannery - Morgan Stanley Jim Schneider - Goldman Sachs Michael Elias - TD Cowen Richard Choe - JPMorgan Ric Prentiss - Raymond James Jon Atkin - RBC Michael Rollins - Citi Nick Del Deo - MoffettNathanson Brandon Nispel - KeyBanc Matt Niknam - Deuts ...

The reported revenue represents a surprise of -0.61% over the Zacks Consensus Estimate of $664.54 million. With the consensus EPS estimate being $3.28, the EPS surprise was +0.30%. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Sites owned - International: 22,283 versus 22,335 estimated by three analysts on average. Sites owned - To ...

Over the last four quarters, the company has surpassed consensus FFO estimates three times. SBA Communications shares have lost about 15.4% since the beginning of the year versus the S&P 500's gain of 14.5%. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately. It will be interesting ...

[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) SBA Communications achieved solid Q2 2024 results with strong AFFO per share and a balanced capital allocation strategy - The President and CEO highlighted solid financial results in line with expectations, a pick-up in international leasing activity, and a continued balanced approach to capital allocation, including portfolio expansion, stock repurchases, dividends, and debt reduction[83](index=83&type=chunk) Q2 2024 Key Metrics | Metric | Value | | :--- | :--- | | Net Income | $159.5 million | | Diluted EPS | $1.51 | | AFFO per share | $3.29 | | Net Debt to Annualized Adjusted EBITDA | 6.4x | - The Board of Directors declared a quarterly cash dividend of **$0.98 per share**, payable on September 18, 2024, to shareholders of record on August 22, 2024[11](index=11&type=chunk) [Operating Results](index=2&type=section&id=Operating%20Results) Total revenues declined due to a significant drop in site development, while site leasing remained stable, impacting net income and Adjusted EBITDA Q2 2024 vs. Q2 2023 Operating Results (in millions, except per share) | Metric | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $660.5 | $678.5 | (2.7%) | | Site leasing revenue | $626.5 | $626.1 | 0.1% | | Site development revenue | $34.0 | $52.4 | (35.0%) | | Net income | $159.5 | $202.0 | (21.0%) | | Adjusted EBITDA | $467.1 | $471.7 | (1.0%) | | AFFO | $354.3 | $352.7 | 0.4% | | AFFO per share | $3.29 | $3.24 | 1.5% | - Net income for Q2 2024 included a **$66.2 million** loss from currency remeasurement of intercompany loans, compared to a **$27.8 million** gain in Q2 2023, explaining the significant year-over-year decrease[4](index=4&type=chunk) - Adjusted EBITDA Margin improved to **71.3%** in Q2 2024 from **70.3%** in the prior year period[4](index=4&type=chunk) [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) Site leasing revenue remained stable, with domestic growth offsetting international declines, while site development revenue significantly decreased Q2 2024 Revenue Breakdown (in millions) | Revenue Stream | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | Domestic Site Leasing | $463.2 | $456.8 | 1.2% | | International Site Leasing | $163.3 | $169.4 | (3.6%) | | **Total Site Leasing** | **$626.5** | **$626.1** | **0.1%** | | Site Development | $34.0 | $52.4 | (35.0%) | - Domestic cash site leasing revenue increased **1.6%** YoY, while international cash site leasing revenue increased **1.3%** on a constant currency basis[37](index=37&type=chunk) [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) Site leasing operating profit and Tower Cash Flow remained nearly flat, with domestic growth offsetting international declines Q2 2024 Profitability Metrics (in millions) | Metric | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | Site leasing operating profit | $512.3 | $511.3 (est.) | 0.2% | | Tower Cash Flow | $503.9 | $503.5 | 0.1% | | AFFO | $354.3 | $352.7 | 0.4% | - Domestic Tower Cash Flow increased **0.8%** YoY, while International Tower Cash Flow decreased **2.4%** (or increased **1.5%** on a constant currency basis)[76](index=76&type=chunk) [Capital Allocation](index=3&type=section&id=Capital%20Allocation) SBA focused on strategic investments in new sites and towers, alongside dividend payments, while maintaining a stable leverage ratio [Investing Activities](index=3&type=section&id=Investing%20Activities) The company expanded its portfolio through strategic acquisitions and new tower builds, incurring significant capital expenditures - Acquired **117 communication sites** for **$26.5 million** and built **100 new towers** in Q2 2024[39](index=39&type=chunk) - Total cash capital expenditures for Q2 2024 were **$91.6 million**[39](index=39&type=chunk) - Subsequent to Q2, the company is under contract to purchase **106 communication sites** for **$49.3 million**, expected to close by year-end[15](index=15&type=chunk) [Financing Activities and Liquidity](index=3&type=section&id=Financing%20Activities%20and%20Liquidity) Financing activities included significant dividend payments and share repurchases, with total debt and leverage ratios remaining stable - Declared and paid a cash dividend of **$105.3 million** in Q2 2024[7](index=7&type=chunk) - No share repurchases occurred in Q2. In April 2024 (Q1 reporting period), the company repurchased **0.4 million** shares for **$93.9 million**[16](index=16&type=chunk) Debt and Liquidity at Q2 2024 End | Metric | Value | | :--- | :--- | | Total Debt | $12.4 billion | | Net Debt | $12.0 billion | | Net Debt to Annualized Adj. EBITDA | 6.4x | | Net Secured Debt to Annualized Adj. EBITDA | 4.8x | | Revolver Outstanding | $30.0 million | [Full Year 2024 Outlook](index=3&type=section&id=Outlook) The company updated its full-year 2024 outlook, revising projections for total revenues, Adjusted EBITDA, and AFFO per share Updated Full Year 2024 Outlook (Midpoint) | Metric | New Outlook (in millions) | Change from April Outlook (in millions) | | :--- | :--- | :--- | | Site leasing revenue | $2,517.0 | $(10.0) | | Total revenues | $2,657.0 | $(20.0) | | Tower Cash Flow | $2,039.0 | $(12.0) | | Adjusted EBITDA | $1,886.0 | $(13.0) | | AFFO | $1,430.0 | $(5.0) | | AFFO per share | $13.25 | $(0.03) | - The outlook is based on several assumptions, including average foreign currency exchange rates (e.g., **5.65 BRL/USD**, **1.38 CAD/USD**) and the refinancing of the **$620.0 million** 2014-2C Tower Securities at an assumed **6.000%** fixed rate[42](index=42&type=chunk)[77](index=77&type=chunk) - The outlook does not contemplate additional share repurchases or new debt financings beyond what is specified, nor does it include acquisitions not yet under contract[8](index=8&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) [Consolidated Statements of Operations](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The consolidated statement of operations details Q2 2024 revenues, operating income, net income, and diluted earnings per share Q2 2024 vs Q2 2023 Income Statement (in thousands) | Line Item | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Total revenues | $660,477 | $678,500 | | Operating income | $354,470 | $241,227 | | Net income | $159,452 | $201,970 | | Diluted EPS | $1.51 | $1.87 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The balance sheet shows total assets and liabilities as of June 30, 2024, resulting in a total shareholders' deficit Balance Sheet Summary (in thousands) | Line Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total current assets | $460,006 | $484,267 | | Total assets | $9,786,178 | $10,178,441 | | Total current liabilities | $2,459,565 | $1,363,259 | | Total long-term debt, net | $10,473,739 | $11,681,170 | | Total liabilities | $15,062,102 | $15,314,276 | | Total shareholders' deficit | $(5,316,741) | $(5,170,882) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Cash flow statements detail net cash from operating, investing, and financing activities, resulting in a net increase in cash for the period Q2 2024 vs Q2 2023 Cash Flow Summary (in thousands) | Cash Flow Activity | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net cash from operating activities | $425,593 | $486,933 | | Net cash used in investing activities | $(121,208) | $(111,585) | | Net cash used in financing activities | $(276,523) | $(314,160) | | **Net change in cash** | **$18,812** | **$62,327** | [Non-GAAP Financial Measures and Reconciliations](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines and reconciles non-GAAP financial measures, including Tower Cash Flow, Adjusted EBITDA, FFO, and AFFO, for enhanced operational insight [Communication Site Portfolio Summary](index=10&type=section&id=Communication%20Site%20Portfolio%20Summary) The communication site portfolio summary details the total number of sites owned or operated, including acquisitions, builds, and decommissioned sites Q2 2024 Site Portfolio Changes | Description | Domestic | International | Total | | :--- | :--- | :--- | :--- | | Sites at March 31, 2024 | 17,478 | 22,160 | 39,638 | | Acquired | 11 | 106 | 117 | | Built | 5 | 95 | 100 | | Decommissioned/Sold | (33) | (78) | (111) | | **Sites at June 30, 2024** | **17,461** | **22,283** | **39,744** | [Financial Metrics after Eliminating the Impact of Changes In Foreign Currency Exchange Rates](index=12&type=section&id=Financial%20Metrics%20after%20Eliminating%20the%20Impact%20of%20Changes%20In%20Foreign%20Currency%20Exchange%20Rates) This section analyzes financial metrics by eliminating foreign currency exchange rate impacts to show underlying growth rates Q2 2024 YoY Growth vs. Constant Currency Growth | Metric | Reported Growth | Foreign Currency Impact | Growth Ex-FX | | :--- | :--- | :--- | :--- | | Total site leasing revenue | 0.1% | (1.1%) | 1.2% | | Adjusted EBITDA | (1.0%) | (0.9%) | (0.1%) | | AFFO | 0.4% | (1.1%) | 1.5% | | AFFO per share | 1.5% | (1.3%) | 2.8% | [Reconciliation of Tower Cash Flow](index=12&type=section&id=Reconciliation%20of%20Tower%20Cash%20Flow) This section reconciles site leasing revenue to Tower Cash Flow, providing the Q2 2024 figure and full-year outlook Q2 2024 Tower Cash Flow Reconciliation (in thousands) | Line Item | Amount | | :--- | :--- | | Site leasing revenue | $626,457 | | Non-cash straight-line leasing revenue | $(5,466) | | **Cash site leasing revenue** | **$620,991** | | Site leasing cost of revenues | $(114,131) | | Non-cash straight-line ground lease expense | $(2,988) | | **Tower Cash Flow** | **$503,872** | [Reconciliation of Adjusted EBITDA](index=13&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) This section reconciles net income to Adjusted EBITDA for Q2 2024, including key adjustments and the full-year forecast Q2 2024 Adjusted EBITDA Reconciliation (in thousands) | Line Item | Amount | | :--- | :--- | | Net income | $159,452 | | Adjustments (Interest, Taxes, D&A, etc.) | $307,612 | | **Adjusted EBITDA** | **$467,064** | [Reconciliation of FFO and AFFO](index=15&type=section&id=Reconciliation%20of%20FFO%20and%20AFFO) This section reconciles net income to FFO and AFFO for Q2 2024, providing per-share figures and the full-year outlook Q2 2024 FFO and AFFO Reconciliation (in thousands) | Line Item | Amount | | :--- | :--- | | Net income | $159,452 | | Real estate depreciation & amortization | $62,213 | | Asset impairment and decommission costs | $31,610 | | **FFO** | **$253,275** | | Other Adjustments | $101,052 | | **AFFO** | **$354,327** | [Net Debt and Leverage Ratio](index=17&type=section&id=Net%20Debt%20and%20Leverage%20Ratio) This section details the calculation of Net Debt and leverage ratios, including Net Debt to Annualized Adjusted EBITDA, as of June 30, 2024 Leverage Ratio Calculation at June 30, 2024 (in thousands) | Line Item | Amount | | :--- | :--- | | Total debt | $12,354,250 | | Less: Cash and cash equivalents, etc. | $(309,382) | | **Net debt** | **$12,044,868** | | Divided by: Annualized Adjusted EBITDA | $1,868,256 | | **Leverage Ratio** | **6.4x** | [Other Information](index=4&type=section&id=Other%20Information) This section provides details on the Q2 2024 earnings conference call and outlines key forward-looking statement disclaimers and risks - A conference call to discuss Q2 2024 results was scheduled for Monday, July 29, 2024, at 5:00 PM (EDT)[19](index=19&type=chunk)[43](index=43&type=chunk) - The report includes forward-looking statements and cautions readers about risks such as macroeconomic conditions (interest rates, inflation), wireless provider capital expenditures, consolidation among carriers, and foreign currency exchange rate risks[44](index=44&type=chunk)

Analysts on Wall Street project that SBA Communications (SBAC) will announce quarterly earnings of $3.28 per share in its forthcoming report, representing an increase of 1.2% year over year. Revenues are projected to reach $664.54 million, declining 2.1% from the same quarter last year. The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over t ...

Core Viewpoint - The company is expected to report a decline in revenues year-over-year, but adjusted funds from operations (AFFO) per share are anticipated to grow slightly [11]. Financial Performance - The last reported quarter showed AFFO per share of $3.29, missing the Zacks Consensus Estimates by a cent, primarily due to lower site development revenues [2]. - The Zacks Consensus Estimate for total quarterly revenues is pegged at $664.5 million, indicating a year-over-year decline of 2.1% [5]. - The Zacks Consensus Estimate for second-quarter site-leasing revenues is $632.5 million, reflecting an increase from $626.1 million in the year-ago quarter [4]. Factors Influencing Results - The company benefits from long-term tower leases with built-in rent escalators, which support stable site-leasing revenues [3]. - The anticipated decrease in carrier activities is expected to lead to lower site-development revenues, with a consensus mark of $35.1 million, down from $52.4 million in the previous year [14]. - High interest rates and elevated churn in certain markets may have negatively impacted the company's quarterly performance [15]. Market Context - The wireless industry is experiencing secular growth trends, driven by advancements in mobile technology such as 4G and 5G networks, leading to increased mobile data usage globally [12]. - The company's healthy balance sheet is expected to support investments in existing 4G networks and efforts for 5G deployment, along with asset-base expansion through acquisitions [13].

Core Viewpoint - SBA Communications is well-positioned to benefit from the high capital spending of wireless carriers for network expansion, particularly with the ongoing deployment of 5G networks, despite concerns regarding customer concentration and high interest rates [1]. Group 1: Growth Drivers - The advancement in mobile technology, including 4G and 5G networks, along with the rise of bandwidth-intensive applications, has led to increased mobile data usage globally, prompting wireless service providers to expand their networks [2]. - SBA Communications has a stable site-leasing business model, generating most of its revenues from long-term tower leases with built-in rent escalators, ensuring steady revenue over time [3]. - The company is experiencing robust site-leasing revenue growth as wireless service providers continue to lease additional antenna space on its towers due to increased network usage and coverage requirements [4]. - SBA Communications is expanding its portfolio into select international markets with high growth potential, having acquired 11 communication sites and built 76 towers in Q1 2024 [5]. Group 2: Financial Position - As of the end of Q1 2024, SBA Communications had $261.8 million in cash and cash equivalents, with $195 million outstanding under its $2.0 billion revolving credit facility [7]. - The company's cash flow growth is projected at 13.13%, significantly outperforming the industry average of -5.32%, indicating strong financial flexibility for long-term growth opportunities [8]. Group 3: Challenges - The company faces high customer concentration, with T-Mobile, AT&T, and Verizon accounting for 38.8%, 29.5%, and 20% of its domestic site-leasing revenues, respectively, which poses a risk to its top line if any of these customers are lost [9]. - SBA Communications has a highly leveraged balance sheet, with total debt of $12.4 billion and a net debt to annualized adjusted EBITDA leverage of 6.5X, which may elevate financial obligations and borrowing costs in a high interest rate environment [11]. - Analysts have shown bearish sentiment towards the company, with the Zacks Consensus Estimate for its 2024 funds from operations per share declining to $13.22 [12].

PART I – FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the three months ended March 31, 2024, compared to the same period in 2023, including a significant reduction in depreciation and amortization expense due to a change in the estimated useful lives of towers Consolidated Statements of Operations | Metric | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | | :--- | :--- | :--- | | **Total revenues** | $657.862 | $675.516 | | Site leasing revenue | $628.276 | $617.268 | | Site development revenue | $29.586 | $58.248 | | **Operating income** | $323.358 | $224.141 | | **Net income** | $154.543 | $100.554 | | **Diluted EPS** | $1.42 | $0.93 | Consolidated Balance Sheets | Metric | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :--- | :--- | :--- | | Total current assets | $447.596 | $484.267 | | Property and equipment, net | $2,709.681 | $2,711.719 | | **Total assets** | $9,995.266 | $10,178.441 | | Total current liabilities | $2,413.289 | $1,363.259 | | Long-term debt, net | $10,550.553 | $11,681.170 | | **Total liabilities** | $15,181.509 | $15,314.276 | | **Total shareholders' deficit** | ($5,222.820) | ($5,170.882) | Consolidated Statements of Cash Flows | Cash Flow Activity | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $294.453 | $311.168 | | Net cash used in investing activities | ($85.310) | ($146.761) | | Net cash used in financing activities | ($191.412) | ($160.728) | | **Net change in cash, cash equivalents, and restricted cash** | $13.386 | $3.899 | - Effective January 1, 2024, the company revised the estimated useful lives of its towers and certain related intangible assets from **15 years to 30 years**, which prospectively reduced depreciation and amortization expense by approximately **$102.7 million** for the first quarter of 2024, resulting in an after-tax increase to net income of **$93.0 million**, or **$0.86 per diluted share**[28](index=28&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's performance, highlighting the stability of the site leasing business versus a significant decline in the site development segment, covering revenue and profit trends, capital allocation, liquidity, and debt obligations [Business Overview and Strategy](index=22&type=section&id=Business%20Overview%20and%20Strategy) The company's core business is site leasing, complemented by site development, with a capital allocation strategy focused on growth, stock repurchases, and dividends - The company's primary business is site leasing, which contributed **98.8% of total segment operating profit** for Q1 2024, involving leasing antenna space on its **39,638 towers** to wireless service providers under long-term contracts[101](index=101&type=chunk)[108](index=108&type=chunk) - The site development business, conducted only in the U.S., is complementary to site leasing and includes services like network design, site construction, and antenna installation for wireless service providers[111](index=111&type=chunk) - The capital allocation strategy prioritizes portfolio growth through acquisitions and new tower construction, followed by stock repurchases when the stock is believed to be undervalued, and returning cash to shareholders via dividends[112](index=112&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) This section details revenue and operating profit trends across domestic and international site leasing and site development segments, highlighting the impact of accounting changes Segment Revenue Analysis | Segment | Revenue Q1 2024 (in millions) | Revenue Q1 2023 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Domestic site leasing | $461.499 | $454.833 | 1.5% | | International site leasing | $166.777 | $162.435 | 2.7% | | Site development | $29.586 | $58.248 | (49.2%) | | **Total** | **$657.862** | **$675.516** | **(2.6%)** | Segment Operating Profit Analysis | Segment | Operating Profit Q1 2024 (in millions) | Operating Profit Q1 2023 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Domestic site leasing | $395.529 | $385.083 | 2.7% | | International site leasing | $117.934 | $112.066 | 5.2% | | Site development | $6.408 | $14.063 | (54.4%) | - Site development revenues and operating profit decreased significantly by **49.2%** and **54.4%** respectively, due to reduced activity from major carriers like T-Mobile, DISH Wireless, and Verizon Wireless[123](index=123&type=chunk)[126](index=126&type=chunk) - Depreciation, accretion, and amortization expense decreased by **$105.7 million (58.1%)** year-over-year, primarily due to the change in the estimated useful lives of towers from **15 to 30 years**, which significantly boosted operating income[130](index=130&type=chunk) [Non-GAAP Financial Measures](index=29&type=section&id=Non-GAAP%20Financial%20Measures) This section presents non-GAAP financial metrics, primarily focusing on Adjusted EBITDA and its drivers Adjusted EBITDA Reconciliation | Metric (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income | $154.543 | $100.554 | | Adjustments | $310.869 | $358.786 | | **Adjusted EBITDA** | **$465.412** | **$459.340** | - Adjusted EBITDA increased by **$6.1 million (1.3%)** to **$465.4 million** in Q1 2024 compared to the prior year period, with a constant currency increase of **$4.1 million (0.9%)**, driven by higher site leasing operating profit, offset by lower site development profit and higher cash SG&A expenses[145](index=145&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) This section analyzes the company's cash flow, debt management, and capital allocation activities, including share repurchases and dividends - Cash provided by operating activities decreased to **$294.5 million** in Q1 2024 from **$311.2 million** in Q1 2023, mainly due to working capital timing and lower site development profit[148](index=148&type=chunk)[149](index=149&type=chunk) - In January 2024, the company amended its Senior Credit Agreement to issue a new **$2.3 billion** 2024 Term Loan (maturing 2031) to retire its 2018 Term Loan, and also increased its Revolving Credit Facility commitment to **$2.0 billion**[159](index=159&type=chunk)[160](index=160&type=chunk) - During Q1 2024, the company repurchased **495,260 shares** of common stock for **$106.1 million** and paid cash dividends of **$108.1 million ($0.98 per share)**[154](index=154&type=chunk)[156](index=156&type=chunk)[193](index=193&type=chunk) - The company projects total debt service requirements of approximately **$2.18 billion** for the twelve months ending March 31, 2025, which includes the maturity of the **$620.0 million** 2014-2C Tower Securities and the **$1.165 billion** 2019-1C Tower Securities[175](index=175&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the company's primary market risk exposures, which are interest rate risk and foreign currency exchange rate risk, and how they are managed - The primary market risk is interest rate risk related to its variable-rate 2024 Term Loan and Revolving Credit Facility, where a hypothetical **1%** increase in variable interest rates would have increased Q1 2024 interest expense by approximately **4.7%**[181](index=181&type=chunk)[182](index=182&type=chunk) - The company is exposed to foreign currency risk, with **22.3%** of revenues and **29.7%** of operating expenses in Q1 2024 denominated in foreign currencies, where a hypothetical **10%** adverse movement in the Brazilian Real would have decreased Q1 2024 revenues by **1.3%**[183](index=183&type=chunk)[184](index=184&type=chunk) - The company has significant risk related to intercompany debt denominated in currencies other than the functional currency of the subsidiary, where a **10%** change in the underlying exchange rates would have resulted in approximately **$125.5 million** of unrealized gains or losses recorded in net income for Q1 2024[185](index=185&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the company's adherence to internal control standards, with the principal executive and financial officers concluding the effectiveness of disclosure controls and procedures - The company's CEO and CFO evaluated the effectiveness of disclosure controls and procedures and concluded that they were **effective as of March 31, 2024**[190](index=190&type=chunk)[192](index=192&type=chunk) PART II – OTHER INFORMATION [Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's stock repurchase activities and remaining authorization under its repurchase plan Stock Repurchase Activity | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Jan 2024 | — | N/A | | Feb 2024 | — | N/A | | Mar 2024 | 495,260 | $214.33 | | **Total Q1 2024** | **495,260** | **$214.33** | - Under the **$1.0 billion** stock repurchase plan authorized in October 2021, the company had **$204.7 million** of authorization remaining as of the filing date[193](index=193&type=chunk) [Other Information](index=39&type=section&id=Item%205.%20Other%20Information) This section discloses information regarding trading plans established by the company's officers and directors - During the first quarter of 2024, **none of the company's officers or directors adopted or terminated** a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement[194](index=194&type=chunk) [Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the quarterly report, including required certifications and interactive data files - The exhibits filed with this report include certifications by the CEO and CFO pursuant to **Sections 302 and 906 of the Sarbanes-Oxley Act of 2002**, as well as XBRL interactive data files[195](index=195&type=chunk)

SBA Communications Corporation. (NASDAQ:SBAC) Q1 2024 Earnings Conference Call April 29, 2024 5:00 PM ET Company Participants Mark DeRussy - VP of Finance Marc Montagner - CFO Brendan Cavanagh - President & CEO Conference Call Participants Michael Rollins - Citigroup Jonathan Atkin - RBC Capital Markets Michael Elias - TD Cowen Simon Flannery - Morgan Stanley Ric Prentiss - Raymond James. Nick Del Deo - MoffettNathanson Batya Levi - UBS Richard Choe - JPMorgan Matthew Niknam - Deutsche Bank Eric Luebchow - ...