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SBA Communications' Q3 AFFO Meets Estimates, Revenues Fall Y/Y
SBACSBA(SBAC) ZACKS·2024-10-29 15:25

Core Viewpoint - SBA Communications Corporation (SBAC) reported third-quarter 2024 adjusted funds from operations (AFFO) per share of 3.32,meetingtheZacksConsensusEstimatebutslightlydownfrom3.32, 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 667.6million,missingtheZacksConsensusEstimateof667.6 million, missing the Zacks Consensus Estimate of 669 million [2] - Site-leasing revenues decreased by 1.8% year over year to 625.7million,withdomesticsite−leasingrevenuesat625.7 million, with domestic site-leasing revenues at 464.9 million and international site-leasing revenues at 160.8million,thelatterdownby5.1160.8 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 472.6million,adecreaseof2472.6 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 12.9milliononlandandeasements,withtotalcashcapitalexpenditureat12.9 million on land and easements, with total cash capital expenditure at 272.1 million, of which 257.8millionwasdiscretionary[6]FutureOutlook−SBACraisedits2024guidance,nowexpectingAFFOpershareintherangeof257.8 million was discretionary [6] Future Outlook - SBAC raised its 2024 guidance, now expecting AFFO per share in the range of 13.20-13.45,upfromthepreviousrangeof13.45, up from the previous range of 13.06-13.43[11]−Site−leasingrevenuesareprojectedbetween13.43 [11] - Site-leasing revenues are projected between 2,520-2,530million,andsite−developmentrevenueguidancehasbeenrevisedto2,530 million, and site-development revenue guidance has been revised to 140-150million[12]CashFlowandLiquidity−Thecompanygenerated150 million [12] Cash Flow and Liquidity - The company generated 304.7 million of net cash from operating activities, down from 313.7millionintheyear−agoquarter[8]−AsofSeptember30,2024,SBAChad313.7 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]