Post Earnings Coverage as SBA Communications Quarterly Revenue Grew 5.9%; AFFO Jumped 16.6%

Upcoming AWS Coverage on Cable One Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 12, 2017 / Active Wall St. announces its post-earnings coverage on SBA Communications Corp. (NASDAQ: SBAC). The Company reported its first quarter fiscal 2017 results on May 01, 2017. The communications tower operator reported better than expected sales and earnings numbers. Register with us now for your free membership at:

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One of SBA Communications’ competitors within the Diversified Communication Services space, Cable One, Inc. (NYSE: CABO), reported its earnings Q1 results on Thursday, May 04, 2017. AWS will be initiating a research report on Cable One in the coming days.

Today, AWS is promoting its earnings coverage on SBAC; touching on CABO. Get our free coverage by signing up to:

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Earnings Reviewed

For the quarter ended March 31, 2017, SBA’s total revenues were $423.4 million, up 5.9% compared to $399.8 million in Q1 2016, an increase of 5.9%. The Company’s revenue numbers came in ahead of analysts’ consensus of $418.5 million

For Q1 2017, SBA’s adjusted EBITDA was $292.2 million, up 6.4% on a y-o-y basis. The Company’s adjusted EBITDA margin was 69.7% in the reported quarter compared to 70.3% in the year earlier same quarter.

SBA’s net income for Q1 2017 was $37.6 million, or $0.31 per share, and included a $13.7 million gain on the currency related remeasurement of a US dollar denominated intercompany loan with a Brazilian subsidiary, while net income for Q1 2016 was $53.6 million, or $0.43 per share, which consisted of a $44.8 million gain on the currency related remeasurement of a US dollar denominated intercompany loan with a Brazilian subsidiary. The Company’s earnings numbers surpassed market estimates of $0.22 per share.

SBA’s AFFO for Q1 2017 was $206.3 million, up 13.1% on a y-o-y basis, while AFFO per share for the reported quarter was $1.69, reflecting a 16.6% increase over the year ago same period.

Segment Results

During Q1 2017, SBA’s site leasing revenue totaled $397.6 million, comprising of domestic site leasing revenue of $321.1 million and international site leasing revenue of $76.4 million. Domestic cash site leasing revenue was $321.7 million in the reported quarter up 3.4% compared to $311.2 million in the year earlier same period. The Company’s international cash site leasing revenue surged 32.1% to $71.9 million in the reported quarter versus $54.5 million in the year earlier comparable period.

For Q1 2017, SBA’s site leasing operating profit was $308.2 million, reflecting an increase of 5.6% on a y-o-y basis. Site leasing contributed 98.7% of the Company’s total operating profit in the reported quarter. Domestic site leasing segment’s operating profit was $255.7 million, an increase of 2.0% on a y-o-y basis. International site leasing segment’s operating profit was $52.5 million, an increase of 28.2% over the year earlier same period.

During Q1 2017, SBA’s Tower cash flow totaled $312.3 million and comprised of Domestic Tower cash flow of $263.4 million and International Tower cash flow of $48.9 million. Domestic Tower cash flow increased 3.6% on a y-o-y basis, while International Tower cash flow surged 32.1% over the prior year period. During the reported quarter, Tower cash flow margin was 79.3% and 79.7% for the year ago corresponding period.

Investing Activities

During Q1 2017, SBA purchased 90 communication sites for $28.2 million in cash. SBA also built 58 towers during the reported quarter. As of March 31, 2017, SBA owned or operated 26,284 communication sites, 15,907 of which are located in the United States and its territories, and 10,377 of which are located internationally. In addition, the Company spent $15.9 million to purchase land and easements and to extend lease terms.

The Company’s total cash capital expenditures for Q1 2017 were $78.4 million, consisting of $7.8 million of non-discretionary cash capital expenditures such as tower maintenance and general corporate and $70.6 million of discretionary cash capital expenditures which includes new tower builds, tower augmentations, acquisitions, and purchasing land and easements.

Financing Activities and Liquidity

SBA ended Q1 2017 with $8.8 billion of total debt; $6.9 billion of total secured debt; $162.9 million of cash and cash equivalents, short-term restricted cash, and short-term investments; and $8.6 billion of net debt. SBA’s net debt and net secured debt to annualized adjusted EBITDA Leverage Ratios were 7.4x and 5.8x, respectively. As of the date of the press release announcement, SBA had $90.0 million outstanding under its $1.0 billion Revolving Credit Facility.

On January 12, 2017, SBA’s Board of Directors approved the authorization of a new $1.0 billion stock repurchase plan replacing the prior plan which had a remaining authorization of $150.0 million. As of the date of this press release, the Company had the full $1.0 billion authorization remaining under the new plan.

On April 17, 2017, SBA issued $760.0 million of Secured Tower Revenue Securities Series 2017-1C which have an anticipated repayment date of April 11, 2022 and a final maturity date of April 9, 2047. The fixed interest rate on the 2017-1C Tower Securities is 3.168% per annum, payable monthly. Net proceeds from this offering were used to prepay the entire $610.0 million aggregate principal amount.

Stock Performance

At the closing bell, on Thursday, May 11, 2017, SBA Communications’ stock dropped 1.14%, ending the trading session at $127.72. A total volume of 1.51 million shares were traded at the end of the day, which was higher than the 3-month average volume of 1.13 million shares. In the last three months and previous twelve months, shares of the Company have surged 18.67% and 25.62%, respectively. Moreover, the stock rallied 23.69% since the start of the year. At Thursday’s closing price, the stock’s net capitalization stands at $15.44 billion.

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