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Site Leasing Business Performance - The site leasing business contributed 98.5% of total segment operating profit for the nine months ended September 30, 2024[82]. - Domestic site leasing operating profit was 76.4% for the nine months ended September 30, 2024, compared to 75.1% for the same period in 2023[87]. - The company expects organic site leasing revenue to increase over 2023 levels on a currency neutral basis due to wireless carriers deploying unused spectrum[87]. - Domestic site leasing revenues decreased by $3.5 million to $464.9 million for the three months ended September 30, 2024, primarily due to Sprint lease non-renewals and one-time revenue benefits recognized in the prior year[97]. - International site leasing revenues decreased by $8.2 million to $160.8 million, but increased by $5.1 million on a constant currency basis, driven by organic growth and new leases[97]. - Domestic site leasing revenues increased by $9.6 million to $1,389,563 thousand, a 0.7% increase, due to organic growth and new leases[107]. - International site leasing revenues decreased by $10.0 million to $490,867 thousand, but increased by $8.4 million on a constant currency basis[109]. - Total site leasing revenue was $1,083.9 million, up from $741.5 million, reflecting a 47.0% increase[118]. Financial Performance and Income - Net income rose by $170.5 million to $255,891 thousand, a 106.9% increase, driven by higher site leasing operating income and reduced interest expenses[106]. - Net income increased by $182.0 million to $569.9 million, reflecting a 78.2% increase, primarily due to higher site leasing operating income and interest income[125]. - Total revenues for the nine months ended September 30, 2024, were $1,985,934 thousand, a 1.6% decrease compared to the prior year[107]. - Operating income for the total site leasing segment increased by $126.1 million to $57.6 million, driven by lower depreciation and impairment costs[103]. - Selling, general, and administrative expenses decreased by $3.8 million to $60.1 million, with a constant currency decrease of 5.9%[100]. - Selling, general, and administrative expenses decreased by $9.3 million to $191,161 thousand, a 3.9% decrease, primarily from lower non-cash compensation expenses[113]. - Interest income increased by $2.0 million to $6,999 thousand, a 37.9% change on a constant currency basis, primarily due to higher interest rates and deposits[104]. - Interest expense decreased by $3.6 million to $(95,711) thousand, a 3.6% decrease, attributed to a lower average principal amount of cash-interest bearing debt[104]. Capital Expenditures and Investments - The capital allocation strategy includes portfolio growth through tower acquisitions and construction of new towers[89]. - The company entered into an agreement to purchase over 7,000 communication sites in Central America for approximately $975.0 million in cash, expected to close in 2025[136]. - For 2024, the company expects non-discretionary cash capital expenditures of $51.0 million to $57.0 million and discretionary cash capital expenditures of $490.0 million to $500.0 million[137]. - Total cash used in investing activities for the nine months ended September 30, 2024, was $480.4 million, compared to $361.9 million in the same period of 2023[133]. Debt and Financing - The company issued a new $2.3 billion Term Loan on January 25, 2024, and increased the total commitments under the Revolving Credit Facility to $2.0 billion[144]. - The company repaid $160.0 million under the Revolving Credit Facility subsequent to September 30, 2024, leaving no amount outstanding[148]. - The 2024 Term Loan has a principal balance of $2.3 billion and a blended interest rate of 2.760% as of September 30, 2024[148]. - The company declared a cash dividend of $0.98 per share, with an aggregate amount paid of $108.1 million on March 28, 2024[139]. - The company paid cash dividends totaling $318.8 million during the nine months ended September 30, 2024, an increase from $278.2 million in the prior year[138]. - The total debt service requirement for the next twelve months is projected to be $2,193.8 million[157]. - Total debt obligation as of September 30, 2024, is $12,388.5 million, with a fair value of $11,604.174 million[161]. Operational Efficiency and Cost Management - A change in estimated useful lives of towers from 15 years to 30 years is expected to reduce depreciation and amortization expense by approximately $411.5 million for the year ended December 31, 2024[93]. - Approximately 71% of tower structures are located on land owned or leased for over 20 years[85]. - The company anticipates minimal incremental costs for adding tenants to existing towers due to the relatively young age of its tower portfolio[87]. - Depreciation, accretion, and amortization expense decreased by $117.2 million to $63.5 million, primarily due to changes in estimated useful lives of assets[102]. - Total depreciation, accretion, and amortization expenses decreased by $340.5 million to $204.4 million, a 61.9% reduction compared to the prior year[117]. Market Risks and Future Outlook - Rising interest rates are expected to impact the company's growth rate and future operating results negatively[158]. - The company anticipates future growth in the wireless industry driven by spectrum auctions and the roll-out of 5G technology[163]. - The company is exposed to risks associated with international operations, including currency fluctuations and political conditions[165]. - The company has a primary market risk exposure related to interest rate risk, particularly concerning the refinancing of debt at commercially reasonable rates[161]. - A hypothetical 10% adverse movement in the Brazilian Real would have caused revenues and operating income to decline by approximately 1.3% and 1.0%, respectively, for the nine months ended September 30, 2024[161]. - The company plans to grow its tower portfolio through acquisitions, new builds, and organic lease-up on existing towers[163]. - The company expects to maintain sufficient liquidity to service its outstanding debt during the next twelve months[163].

Group 1 - SBA Communications Corporation announced its financial results for the third quarter of the 2024 fiscal year after the market closed on October 28th [1] - The company's shares experienced minimal movement following the announcement of the financial results [1] Group 2 - Crude Value Insights provides an investing service and community focused on oil and natural gas, emphasizing cash flow and companies that generate it [2] - Subscribers to Crude Value Insights gain access to a stock model account, in-depth cash flow analyses of exploration and production firms, and live chat discussions about the sector [2]

Core Viewpoint - SBA Communications Corporation (SBAC) reported third-quarter 2024 adjusted funds from operations (AFFO) per share of $3.32, meeting the Zacks Consensus Estimate but slightly down from $3.34 in the prior-year quarter [1][2] Financial Performance - Total quarterly revenues decreased by 2.2% year over year to $667.6 million, missing the Zacks Consensus Estimate of $669 million [2] - Site-leasing revenues decreased by 1.8% year over year to $625.7 million, with domestic site-leasing revenues at $464.9 million and international site-leasing revenues at $160.8 million, the latter down by 5.1% year over year [3] - Site development revenues fell by 7.1% year over year to $41.9 million [4] - The adjusted EBITDA totaled $472.6 million, a decrease of 2%, with the adjusted EBITDA margin decreasing to 70.9% from 71.4% in the prior-year quarter [4] Operational Highlights - The company acquired 51 communication sites for $194.1 million and built 147 towers during the quarter, owning or operating a total of 39,762 communication sites as of September 30, 2024 [5] - SBAC spent $12.9 million on land and easements, with total cash capital expenditure at $272.1 million, of which $257.8 million was discretionary [6] Future Outlook - SBAC raised its 2024 guidance, now expecting AFFO per share in the range of $13.20-$13.45, up from the previous range of $13.06-$13.43 [11] - Site-leasing revenues are projected between $2,520-$2,530 million, and site-development revenue guidance has been revised to $140-$150 million [12] Cash Flow and Liquidity - The company generated $304.7 million of net cash from operating activities, down from $313.7 million in the year-ago quarter [8] - As of September 30, 2024, SBAC had $263.6 million in cash and cash equivalents, down from $309.4 million as of June 30, 2024 [9] Dividend Announcement - Concurrent with the earnings release, SBAC announced a cash dividend of 98 cents on its Class A common stock, payable on December 12 to shareholders of record as of November 18, 2024 [10]

Financial Data and Key Metrics Changes - The company increased its full year 2024 outlook across all key financial metrics due to stronger than expected leasing results and services performance [6][7][29] - Domestic same tower revenue growth for Q3 was 5.3% on a gross basis and 2% on a net basis, including 3.3% of churn [26] - International same-tower recurring cash leasing revenue growth was 3.1% net, including 4.3% of churn, with Brazil showing 6.5% gross organic growth [27][28] Business Line Data and Key Metrics Changes - The services business saw revenue up over 23% from the previous quarter and gross profit up over 33% due to increased construction activity from carrier customers [20] - The company anticipates a growing percentage of new business coming from new lease co-locations rather than amendments to existing leases, indicating a shift in business dynamics [7][41] Market Data and Key Metrics Changes - Domestic new carrier activity increased from the first half of the year, with applications and inquiries also on the rise [6][7] - International leasing results were in line with expectations, but challenges remain due to customer consolidations and network rationalization [11][12] Company Strategy and Development Direction - The company is focused on long-term customer relationships and aims to maximize growth through exceptional service and quality [10] - A significant acquisition agreement was signed with Millicom International Cellular for over 7,000 sites in Central America, enhancing the company's scale in the region [14][15] - The company is strategically reviewing operations in existing markets to maximize long-term growth potential and may consider divesting from markets where it lacks scale [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects of the international business, despite current challenges [13] - The company expects continued strong network investment driven by mobile network consumption growth and limited new spectrum availability [8][9] - Management noted that the services business is performing well and is set up for a strong finish to the year [23] Other Important Information - The company declared a cash dividend of $105.3 million or $0.98 per share for Q3, with a 15% increase expected for the fourth quarter [38] - The company has maintained a strong capital structure with leverage near historical lows and a fully undrawn $2 billion revolver [21][37] Q&A Session Summary Question: Can you size the mix of new leases versus amendments and the outlook for 2025? - Management noted an increase in carrier activity and a shift towards more co-locations, indicating a positive trend for future growth [41][42] Question: Can you provide more color on the Millicom deal's AFFO per share accretion? - Management stated it is premature to provide exact figures but confirmed it will be accretive to AFFO per share once closed [44] Question: What is the expected EBITDA multiple for the Millicom deal? - Management indicated that the incremental SG&A will be between $3 million and $5 million, suggesting a multiple around 11 times for the tower cash flow [48][49] Question: How does the company view its leverage and future capital allocation? - Management expressed no desire to lower leverage further, focusing instead on finding good investment opportunities or share repurchases [66] Question: What is the current churn rate and expectations for improvement? - The current non-Sprint churn rate is about 1.3%, with expectations to reduce it to around 1% next year [88]

PRESENTATION SBA Communications Corporation Third Quarter 2024 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 Cash ...

SBA Communications (SBAC) reported $667.6 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 2.2%. EPS of $3.32 for the same period compares to $0.80 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $668.95 million, representing a surprise of -0.20%. The company has not delivered EPS surprise, with the consensus EPS estimate being $3.32.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wa ...

SBA Communications (SBAC) came out with quarterly funds from operations (FFO) of $3.32 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $3.34 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this communications tower operator would post FFO of $3.28 per share when it actually produced FFO of $3.29, delivering a surprise of 0.30%.Over the last four quarters, the company has surpassed consensus FFO estimates two times.SBA ...

SBA Communications Corporation (SBAC) is scheduled to report third-quarter 2024 results on Oct. 28 after the market closes. The company’s quarterly results may display a decline in revenues and adjusted funds from operations (AFFO) per share year over year.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the last reported quarter, this Boca Raton, FL-based communications tower REIT reported an AFFO per share of $3.29, beating the Zacks Consensus Estimate by a whisker. Results refl ...

Core Viewpoint - Analysts project that SBA Communications (SBAC) will report quarterly earnings of $3.32 per share, reflecting a year-over-year decline of 0.6%, with revenues expected to reach $668.95 million, down 2% from the same quarter last year [1] Group 1: Earnings and Revenue Estimates - The consensus EPS estimate has been revised 0.1% higher over the last 30 days, indicating a collective reevaluation by analysts [1] - Revenue from Site Development is projected at $37.78 million, showing a year-over-year decline of 16.2% [2] - International Site Leasing revenues are expected to be $166.70 million, down 1.4% from the prior-year quarter [2] - Domestic Site Leasing revenues are forecasted to reach $462.12 million, reflecting a year-over-year change of -1.3% [2] Group 2: Site Metrics - Estimated revenues from Site Leasing total $628.82 million, indicating a change of -1.4% from the prior-year quarter [3] - The consensus for International Sites owned is 22,411, up from 22,077 in the same quarter last year [3] - Domestic Sites owned are projected at 17,506, compared to 17,469 a year ago [3] - Total Sites owned are estimated at 39,947, compared to 39,546 last year [3] - Total Sites built is estimated at 128, up from 86 in the same quarter last year [3] Group 3: Profit and Depreciation Estimates - Segment operating profit for Site Leasing (Domestic + International) is expected to reach $515.51 million, down from $519.16 million year-over-year [3] - Segment operating profit for Site Development is projected at $10.32 million, compared to $13.61 million in the same quarter last year [4] - Depreciation, accretion, and amortization are estimated at $63.83 million, significantly lower than the year-ago figure of $180.67 million [4] Group 4: Stock Performance - SBA Communications shares have returned -0.2% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% change [4] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to mirror overall market performance in the near future [4]