Financial Data and Key Metrics Changes - The fourth quarter results were in-line to slightly ahead of estimates despite adverse foreign exchange rates [7] - Domestic organic revenue growth was 5.1% on a gross basis and 2.2% on a net basis, including 2.9% churn [25] - The company ended the year with a net debt to adjusted EBITDA ratio of 6.1 times, the lowest in its history [15] Business Line Data and Key Metrics Changes - Domestic new carrier activity continued to increase, with a higher percentage coming from new lease colocations compared to amendments to existing leases [8] - International organic recurring cash leasing revenue growth was 1.7% net, with Brazil showing 8.7% gross organic growth on a constant currency basis [26] - The US-based services business had its best quarter of the year, with an outlook for a year-over-year increase in 2025 [10][11] Market Data and Key Metrics Changes - International churn remains elevated due to customer consolidations, particularly in Brazil, which is heavily indexed in the company's operations [12][27] - The company anticipates continued network investment in international markets to close the gap in 5G coverage compared to the US [11] Company Strategy and Development Direction - The company aims to stabilize results, grow the core business, and improve asset quality through both organic and inorganic growth [16] - A significant agreement to purchase approximately 7,000 towers from Millicom positions the company as a leading tower operator in Central America [17] - The company plans to build up to 800 new towers in 2025, the largest number in over 20 years, primarily in Central America [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future opportunities, citing ongoing mobile network consumption growth and limited new spectrum availability [22] - The company expects to see growth in leasing business throughout 2025, driven by increased carrier activity [10][21] - Management acknowledged the challenges posed by macroeconomic factors, including interest rates and foreign exchange impacts [13] Other Important Information - The company declared a cash dividend of 2 billion revolving credit facility [34] Q&A Session Summary Question: Can you provide more color on the increase in the backlog? - Management indicated that the backlog increase is broad across various carriers, with more business coming from new leases rather than amendments [40][41] Question: How should we think about your ability to grow domestic leasing relative to CapEx budgets? - Management noted that minor shifts in CapEx budgets can significantly impact the company, and they expect increased activity in wireless networks [49][50] Question: What is the outlook for customer-specific activity across the three nationals and DISH? - Management stated that all major carriers are increasing activity levels, but DISH's contribution is currently limited [61][62] Question: What is the expected level of international churn in 2025? - Management anticipates that international churn will remain at similar levels to 2024, particularly due to challenges in Brazil [140] Question: How does the Millicom transaction affect leverage? - The Millicom deal is expected to add about 0.2 turns of leverage, which is manageable given the company's current financial position [92] Question: Will there be more spectrum auctions in the coming years? - Management expressed hope for more spectrum auctions but noted that immediate discussions focus on optimizing current assets [150][151]
SBA(SBAC) - 2024 Q4 - Earnings Call Transcript