SBA Communications Corporation (NASDAQ:SBAC) Q4 2021 Earnings Conference Call February 28, 2022 5:00 PM ET Company Participants Jeffrey Stoops – President and Chief Executive Officer Brendan Cavanagh – Chief Financial Officer Mark DeRussy – Vice President, Finance Conference Call Participants Phil Cusick – JPMorgan Brett Feldman – Goldman Sachs Michael Rollins – Citigroup Richard Prentiss – Raymond James Walter Piecyk – LightShed Partners Nicholas Del Deo – MoffettNathanson Greg Williams – Cowen and Company ...

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements and accompanying notes for the three and nine months ended September 30, 2021 and 2020 Consolidated Balance Sheet Highlights (Unaudited) | Balance Sheet Item | September 30, 2021 (in thousands) | December 31, 2020 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$9,668,082** | **$9,158,018** | | Cash and cash equivalents | $187,806 | $308,560 | | Total current assets | $403,788 | $472,990 | | Long-term debt, net | $11,822,536 | $11,071,796 | | Total liabilities | $14,611,210 | $13,967,206 | | Total shareholders' deficit | ($4,958,305) | ($4,824,382) | Consolidated Statements of Operations Highlights (Unaudited) | Metric (in thousands, except per share) | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$589,305** | **$522,940** | **$1,713,696** | **$1,547,231** | | Site leasing revenue | $535,492 | $486,765 | $1,564,814 | $1,461,523 | | Site development revenue | $53,813 | $36,175 | $148,882 | $85,708 | | **Operating Income** | **$211,776** | **$160,337** | **$585,117** | **$468,591** | | **Net Income (Loss)** | **$47,798** | **$22,676** | **$188,720** | **($82,139)** | | **Diluted EPS** | **$0.43** | **$0.20** | **$1.70** | **($0.73)** | Consolidated Statements of Cash Flows Highlights (Unaudited, Nine Months Ended Sep 30) | Cash Flow Item (in thousands) | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $891,330 | $882,908 | | Net cash used in investing activities | ($1,277,822) | ($353,378) | | Net cash provided by (used in) financing activities | $308,612 | ($314,250) | | **Net Change in Cash, Cash Equivalents, and Restricted Cash** | **($88,409)** | **$194,853** | [Note 6. Acquisitions](index=13&type=section&id=Note%206.%20Acquisitions) Details significant acquisition activities in 2021, including nearly **$1.2 billion** in capital expenditures and the acquisition of 710 utility transmission structures Acquisition Activity (in thousands) | Category | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Acquisitions of towers and related intangible assets | $217,140 | $121,319 | | Acquisition of right-of-use assets | $948,392 | $0 | | Land buyouts and other assets | $22,222 | $78,580 | | **Total cash acquisition capital expenditures** | **$1,187,754** | **$199,899** | - During the first nine months of 2021, the company acquired the exclusive right to lease and operate 710 utility transmission structures from PG&E for **$969.9 million**, which was accounted for as a right-of-use asset[46](index=46&type=chunk) - Subsequent to September 30, 2021, the company purchased or is under contract to purchase approximately **1,700 communication sites** for an aggregate of **$231.0 million**, including about **1,400 sites** from Airtel Tanzania for **$175.0 million**[48](index=48&type=chunk) [Note 10. Debt](index=15&type=section&id=Note%2010.%20Debt) Outlines the company's **$11.9 billion** total debt as of September 30, 2021, and significant debt market activities during the period Debt Principal Balance as of September 30, 2021 (in thousands) | Debt Instrument | Principal Balance | | :--- | :--- | | 2018 Term Loan | $2,322,000 | | Tower Securities (various series) | $5,515,000 | | Senior Notes (various series) | $4,100,000 | | **Total Debt** | **$11,937,000** | - On July 7, 2021, the company amended its Revolving Credit Facility, increasing commitments from **$1.25 billion** to **$1.5 billion** and extending the maturity to July 7, 2026[59](index=59&type=chunk) - In January 2021, the company issued **$1.5 billion** of 3.125% 2021 Senior Notes due 2029, with proceeds used to redeem the 2017 Senior Notes and repay amounts under the Revolving Credit Facility[72](index=72&type=chunk)[74](index=74&type=chunk) - Subsequent to the quarter end, on October 27, 2021, the company issued **$1.79 billion** of new Tower Securities (2021-2C and 2021-3C) and used proceeds to repay the Revolving Credit Facility and redeem the 2016 Senior Notes[67](index=67&type=chunk)[68](index=68&type=chunk) [Note 11. Shareholders' Equity](index=18&type=section&id=Note%2011.%20Shareholders'%20Equity) Reports changes in shareholders' equity, including **$318.9 million** in stock repurchases and **$190.4 million** in dividend payments during the first nine months of 2021 Share Repurchases | Period | Total Shares Purchased (millions) | Average Price Paid per Share | Total Price Paid (millions) | | :--- | :--- | :--- | :--- | | Q3 2021 | 0.4 | $340.70 | $150.0 | | Nine Months 2021 | 1.1 | $291.48 | $318.9 | - On October 28, 2021, the Board of Directors authorized a new **$1.0 billion** stock repurchase plan, replacing the prior plan[79](index=79&type=chunk) - The company paid three cash dividends of **$0.58 per share** during the first nine months of 2021, totaling approximately **$190.4 million**[80](index=80&type=chunk) [Note 14. Segment Data](index=21&type=section&id=Note%2014.%20Segment%20Data) Describes the company's two business segments, with site leasing accounting for the vast majority of revenues and operating profit in the first nine months of 2021 Segment Performance for Nine Months Ended Sep 30, 2021 (in thousands) | Segment | Revenues | Operating Profit | | :--- | :--- | :--- | | Domestic Site Leasing | $1,249,291 | $1,054,836 | | International Site Leasing | $315,523 | $220,468 | | Site Development | $148,882 | $32,710 | - For the nine months ended September 30, 2021, site leasing revenue in Brazil was **$174.5 million**, with no other foreign country representing a material amount of total revenues[93](index=93&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Discusses the company's financial performance, business segments, capital allocation strategy, and liquidity - The company's primary business is site leasing, which contributed **97.5%** of total segment operating profit for the nine months ended September 30, 2021[105](index=105&type=chunk)[111](index=111&type=chunk) - The capital allocation strategy focuses on increasing shareholder value through portfolio growth, stock repurchases when the stock is believed to be below intrinsic value, and cash dividends[114](index=114&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk) - The company has experienced minimal impact to its business or results of operations from the COVID-19 pandemic but continues to monitor developments[117](index=117&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Compares financial results for Q3 and the nine months ended September 30, 2021 and 2020, highlighting revenue and profit growth across segments Q3 2021 vs. Q3 2020 Revenue and Operating Profit (in thousands) | Segment | Q3 2021 Revenue | Q3 2020 Revenue | % Change | Q3 2021 Operating Profit | Q3 2020 Operating Profit | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic site leasing | $426,758 | $390,961 | 9.2% | $361,498 | $326,733 | 10.6% | | International site leasing | $108,734 | $95,804 | 13.5% | $75,328 | $67,310 | 11.9% | | Site development | $53,813 | $36,175 | 48.8% | $12,456 | $7,378 | 68.8% | Nine Months 2021 vs. Nine Months 2020 Revenue and Operating Profit (in thousands) | Segment | Nine Months 2021 Revenue | Nine Months 2020 Revenue | % Change | Nine Months 2021 Operating Profit | Nine Months 2020 Operating Profit | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic site leasing | $1,249,291 | $1,165,322 | 7.2% | $1,054,836 | $973,096 | 8.4% | | International site leasing | $315,523 | $296,201 | 6.5% | $220,468 | $208,307 | 5.8% | | Site development | $148,882 | $85,708 | 73.7% | $32,710 | $17,291 | 89.2% | - Site development revenue and operating profit increased significantly in both the three and nine-month periods due to increased carrier activity, primarily from T-Mobile and DISH[126](index=126&type=chunk)[129](index=129&type=chunk)[145](index=145&type=chunk) [Non-GAAP Financial Measures](index=34&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) Explains the use of Adjusted EBITDA as a key non-GAAP performance measure, which increased to **$407.0 million** in Q3 2021 and **$1.20 billion** for the nine months Adjusted EBITDA Reconciliation (in thousands) | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $47,798 | $22,676 | $188,720 | ($82,139) | | Adjustments | $359,166 | $350,625 | $1,008,494 | $1,201,325 | | **Adjusted EBITDA** | **$406,964** | **$373,301** | **$1,197,214** | **$1,119,186** | - Adjusted EBITDA is defined as net income excluding items such as non-cash straight-line leasing revenue/expense, non-cash compensation, debt extinguishment losses, interest, taxes, and D&A, used by management to evaluate economic productivity and allocate resources[167](index=167&type=chunk)[168](index=168&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Details the company's liquidity sources, significant investing activities of **$1.28 billion**, and financing activities, confirming sufficient liquidity for the next twelve months Cash Capital Expenditures (Nine Months Ended Sep 30, in thousands) | Category | 2021 | 2020 | | :--- | :--- | :--- | | Acquisitions of towers and related intangible assets | ($217,140) | ($121,319) | | Acquisition of right-of-use assets | ($948,392) | $0 | | Land buyouts and other assets | ($22,222) | ($78,580) | | Construction and related costs | ($39,182) | ($40,126) | | Augmentation and tower upgrades | ($22,886) | ($29,712) | | **Total Cash Used in Investing Activities** | **($1,277,822)** | **($353,378)** | Financing Activities (Nine Months Ended Sep 30, in thousands) | Category | 2021 | 2020 | | :--- | :--- | :--- | | Net Debt Issuance/(Repayments) | $730,449 | ($483,618) | | Repurchase and retirement of common stock | ($284,343) | ($378,988) | | Payment of dividends on common stock | ($190,456) | ($156,199) | | **Net Cash Provided By (Used In) Financing** | **$308,612** | **($314,250)** | - The company estimates its total debt service requirement for the next twelve months to be approximately **$379.1 million**, based on debt outstanding as of September 30, 2021[206](index=206&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Identifies interest rate risk and foreign currency exchange rate risk as primary market exposures, along with their management strategies - Primary market risks are interest rate risk related to debt refinancing and variable-rate debt, and foreign currency exchange rate risk from international operations[212](index=212&type=chunk)[213](index=213&type=chunk) - Interest rate risk is managed through a large percentage of fixed-rate debt and interest rate swaps, with an interest rate swap hedging **$1.95 billion** of the variable-rate 2018 Term Loan[212](index=212&type=chunk) - For the nine months ended September 30, 2021, approximately **13.5%** of revenues were denominated in foreign currencies, where a hypothetical **10%** adverse movement in the Brazilian Real would have caused revenues to decline by approximately **0.9%**[213](index=213&type=chunk)[214](index=214&type=chunk) [Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms the effectiveness of the company's disclosure controls and procedures as evaluated by the CEO and CFO as of September 30, 2021 - The company's principal executive officer and principal financial officer evaluated the disclosure controls and procedures and concluded they were effective as of September 30, 2021[220](index=220&type=chunk) PART II – OTHER INFORMATION [Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Provides details on the company's repurchase of **440,274** Class A common shares during Q3 2021 at an average price of **$340.70** per share Issuer Purchases of Equity Securities (Q3 2021) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | July 2021 | 0 | N/A | | August 2021 | 158,055 | $347.27 | | September 2021 | 282,219 | $337.02 | | **Total** | **440,274** | **$340.70** | [Exhibits](index=46&type=section&id=Item%206.%20Exhibits) Lists the exhibits filed with the Form 10-Q report, including CEO/CFO certifications and XBRL files - The exhibits filed with this report include: * CEO and CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906 * XBRL Instance Document and related taxonomy files[222](index=222&type=chunk) [Signatures](index=47&type=section&id=SIGNATURES) - The report was duly signed on November 5, 2021, by Jeffrey A. Stoops, Chief Executive Officer, and Brendan T. Cavanagh, Chief Financial Officer[225](index=225&type=chunk)

Financial Data and Key Metrics Changes - Total GAAP site leasing revenues for Q3 2021 were $535.5 million, with cash site leasing revenues at $525.1 million, positively impacted by foreign exchange rates by $3.2 million year-over-year [8][19] - Adjusted EBITDA for Q3 was $407 million, with an adjusted EBITDA margin of 70.3%, increasing to 74.7% when excluding revenues from pass-through expenses [14][19] - AFFO in Q3 was $302.5 million, with AFFO per share at $2.71, reflecting a 13.9% increase over Q3 2020 [16] Business Line Data and Key Metrics Changes - Same tower recurring cash leasing revenue growth was 3.6% year-over-year, with a gross basis growth of 6.1% [9] - Domestic same-tower recurring cash leasing revenue growth was 5.7% on a gross basis and 3.3% on a net basis, including 2.4% of churn [9] - The services business achieved record results with $53.8 million in revenue and $12.5 million in segment operating profit, with backlogs reaching an all-time high [15] Market Data and Key Metrics Changes - International same-tower cash leasing revenue growth was 5.2% net, including 2.7% of churn, and 7.9% on a gross basis [11] - Brazil, the largest international market, saw a gross same-tower organic growth of 9.5% on a constant currency basis [12] - The majority of consolidated cash site leasing revenue (84.5%) was denominated in U.S. dollars, with Brazil contributing 11.7% of consolidated cash site leasing revenues [12] Company Strategy and Development Direction - The company has increased its full-year 2021 outlook for site development revenue to $200 million at the midpoint, driven by strong third-quarter performance and growing backlogs [16][19] - The company continues to invest in land under its sites, spending $11.6 million to buy land and easements, with 72% of towers having land owned or controlled for over 20 years [17][18] - The company anticipates continued strong domestic operational leasing activity into 2022, supported by a growing backlog of new lease and amendment applications [10][28] Management's Comments on Operating Environment and Future Outlook - Management noted high levels of carrier activity in the U.S., with major customers like Verizon and T-Mobile actively deploying new technologies [27] - The company expects elevated domestic leasing activities to continue through 2022, driven by ongoing upgrades and new deployments [28][98] - International markets are returning to pre-pandemic activity levels, with expectations for growth in network investment from carrier customers [30] Other Important Information - The company ended Q3 with $11.9 billion in total debt and a net debt to annualized adjusted EBITDA leverage ratio of 7.2x, with the highest net cash interest coverage ratio in its history at 4.6x [21][33] - The company repurchased approximately 1 million shares for $350 million, with a new $1 billion stock repurchase plan authorized by the Board of Directors [24][25] - A fourth-quarter dividend of $0.58 per share was declared, representing a payout ratio of 21% of third-quarter AFFO per share [26] Q&A Session Summary Question: Insights on backlog and leasing activity for 2022 - Management expects leasing activity to build throughout 2022, with visibility improving as the year progresses [39] Question: Update on Sprint churn and its impact - The company adjusted its domestic churn impact for 2021 due to timing issues with Sprint, expecting a total impact of around $7 million for 2021 and higher in 2022 [44][46] Question: DISH's contribution to leasing and future spectrum auctions - DISH's activity is expected to contribute significantly in 2022, with most revenue recognition starting next year due to their payment schedule [51] Question: International market outlook and labor availability - Management sees growth opportunities in Africa and is monitoring labor market conditions, which are currently stable [56][57] Question: Insights on international churn and capital allocation - Elevated international churn is expected in Q4 and into 2022, primarily due to consolidation-related churn [65][67]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 001-16853 SBA COMMUNICATIONS CORPORATION (Exact name of Registrant as specified in its charter) (State ...

PRESENTATION SBA Communications Corporation Second Quarter 2021 Supplemental Financial Data Key Financial and Operational Measures and Non-GAAP Financial Measures 2 This Supplemental Financial Data package provides key financial and operational data as well as reconciliations of those non-GAAP financial measures that SBA Communications Corporation ("SBA" or "We") use in evaluating the performance of our business. These non-GAAP financial measures include (1) Cash Site Leasing Revenue, (2) Core Recurring Cas ...

SBA Communications Corporation (NASDAQ:SBAC) Q2 2021 Earnings Conference Call August 2, 2021 5:00 PM ET Company Participants Mark DeRussy - Vice President, Finance Jeff Stoops - President and CEO Brendan Cavanagh - Chief Financial Officer Conference Call Participants Ric Prentiss - Raymond James Simon Flannery - Morgan Stanley Phil Cusick - JPMorgan Michael Rollins - Citi Nick Del Deo - MuffettNathanson Brett Feldman - Goldman Sachs Walter Piecyk - LightShed Batya Levi - UBS David Barden - Bank of America C ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Registrant's telephone number, including area code (561) 995-7670 Securities registered pursuant to Section 12(b) of the Act: x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ ...

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Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number: 001-16853 SBA COMMUNICATIONS CORPORATION (Exact name of Registrant as specified in its charter) Florida 6 ...

SBA Communications Corporation (NASDAQ:SBAC) Q4 2020 Earnings Conference Call February 22, 2021 5:00 PM ET Company Participants Mark DeRussy - Vice President, Finance Jeff Stoops - President and Chief Executive Officer Brendan Cavanagh - Chief Financial Officer Conference Call Participants Richard Prentiss - Raymond James Jonathan Atkin - RBC Capital Markets Walter Piecyk - LightShed Nicholas Del Deo - MoffettNathanson David Barden - Bank of America Colby Synesael - Cowen Brett Feldman - Goldman Sachs Amir ...