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 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]
SBA(SBAC) - 2024 Q3 - Earnings Call Transcript