BOCA RATON, Fla., July 28, 2009 (GLOBE NEWSWIRE) -- SBA Communications Corporation (Nasdaq:SBAC) ("SBA" or the "Company") today reported results for the quarter ended June 30, 2009. Highlights of the results include:
* Second quarter over year earlier period:
* Site leasing revenue growth of 25.2%
* Tower Cash Flow growth of 27.2%
* Net loss increased from $26.2 million to $29.4 million
* Adjusted EBITDA growth of 31.1%
* Equity Free Cash Flow Per Share growth of 25.7%
Operating Results
Total revenues in the second quarter of 2009 were $136.2 million, compared to $112.0 million in the year earlier period, an increase of 21.7%. Site leasing revenue of $117.3 million was up 25.2% over the year earlier period. Site leasing segment operating profit (as defined below) of $89.8 million was up 26.3% over the year earlier period. Site leasing contributed 97.3% of the Company's total segment operating profit in the second quarter of 2009. Site development revenues were $18.9 million in the second quarter of 2009 compared to $18.2 million in the year earlier period, a 3.5% increase. Site development segment operating profit margin was 13.2% in the second quarter of 2009, compared to 7.9 % in the year earlier period.
Tower Cash Flow (as defined below) for the quarter ended June 30, 2009, was $91.3 million, a 27.2% increase over the year earlier period. Tower Cash Flow margin for the three months ended June 30, 2009 was 78.9%, compared to 78.1% in the year earlier period.
Net loss for the second quarter of 2009 was $29.4 million or $0.25 per share, compared to a net loss of $26.2 million or $0.24 per share in the year earlier period.
Adjusted EBITDA (as defined below) in the second quarter was $83.3 million, compared to $63.5 million in the year earlier period, a 31.1% increase. Adjusted EBITDA margin was 61.9% in the second quarter of 2009 compared to 57.7% in the year earlier period.
Net cash interest expense (interest expense less interest income) was $29.8 million in the second quarter of 2009, compared to $23.7 million in the year earlier period.
Equity free cash flow (as defined below) for the quarter ended June 30, 2009 was $51.0 million compared to $37.9 million in the year earlier period. Equity free cash flow per share was $0.44 in the quarter ended June 30, 2009 compared to $0.35 per share in the year earlier period, an increase of 25.7%.
"We produced another quarter of very solid results," commented Jeffrey A. Stoops, President and Chief Executive Officer. "Our customers continue to be busy investing in their wireless networks and we executed well operationally. Our backlog and discussions with our customers give us reason to expect that activity levels will improve through the rest of this year, and stay strong into 2010 and beyond. With our recent issue of $750 million of senior notes, we have fully satisfied our 2010 financing goals and put SBA in a very strong position with respect to our 2011 financing goals. With our near-term financing goals now fully-satisfied, we look forward to returning all of our focus and energy to growing our company."
Investing Activities
As of June 30, 2009 SBA owned 8,004 towers. During the second quarter of 2009, SBA purchased 95 towers (including 52 in Canada) and built 25 towers. The 95 towers were purchased for approximately $33.2 million of which $23.7 million was paid in cash and the remainder through the issuance of approximately 368,000 shares of SBA common stock. Total cash capital expenditures for the second quarter of 2009 were $39.5 million, consisting of $2.2 million of non-discretionary cash capital expenditures (tower maintenance and general corporate) and $37.3 million of discretionary cash capital expenditures (new tower builds, tower augmentations, tower acquisitions and related earn-outs, and ground lease buyouts). During the second quarter, the Company spent $3.6 million, in cash and stock, purchasing land and easements and extending lease terms with respect to land underlying its towers.
Since June 30, 2009, SBA has acquired one tower for approximately $0.9 million in cash. The Company has agreed to purchase an additional 43 towers for an aggregate amount of $18.3 million. The Company anticipates that these acquisitions will be consummated by the end of the fourth quarter of 2009.
Financing Activities and Liquidity
SBA ended the second quarter with $2.7 billion of total debt, (recorded on the Company's balance sheet at a discounted carrying value of $2.4 billion), $214.8 million of cash and cash equivalents, short-term investments and short-term restricted cash and $2.5 billion of net debt (as defined below). Our Net Debt and Net Secured Debt to Annualized Adjusted EBITDA leverage ratios (as defined below) were 7.4x and 4.2x, respectively.
During the second quarter of 2009, the Company issued $500 million of 4.0% Convertible Senior Notes due 2014. The net proceeds from the offering were $488.2 million net of deferred financing fees, $50 million of which was used to repurchase shares of Class A common stock. As a result, shares of SBA common stock outstanding declined from 118.7 million at March 31, 2009 to 116.6 million at June 30, 2009. Also during the second quarter of 2009, the Company repurchased in the open market $51.5 million of its 0.375% Convertible Senior Notes and $21.2 million of its 2005 and 2006 CMBS Notes for an aggregate of $71.0 million in cash.
Subsequent to June 30, 2009, the Company has repurchased $4.0 million of its 0.375% Convertible Senior Notes and $38.4 million of its 2005 and 2006 CMBS Notes for an aggregate of $42.2 million in cash.
Subsequent to June 30, 2009, a wholly owned subsidiary of the Company issued $750.0 million of unsecured senior notes, consisting of $375.0 million of 8.0% notes due 2016 and $375.0 million of 8.25% notes due 2019. Net proceeds of the offering were $727.6 million after deducting initial purchasers' discounts, expenses and original issue discount. The Company intends to use the net proceeds to repay the 2005 CMBS Certificates and the related prepayment consideration, repurchase prior to maturity or repay at maturity our 0.375% Senior Convertible Notes due 2010, repay the principal amounts outstanding under the Optasite credit facility and the senior revolving credit facility and for general corporate purposes. Subsequently, the Company will terminate the Optasite credit facility and will have $320 million available under its senior revolving credit facility.
Outlook
The Company is providing its third quarter 2009 Outlook and updating its Full Year 2009 Outlook for anticipated results. The Outlook provided is based on a number of assumptions that the Company believes are reasonable at the time of this press release. Information regarding potential risks that could cause the actual results to differ from these forward-looking statements is set forth below and in the Company's filings with the Securities and Exchange Commission.
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Quarter ending Full
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September 30, 2009 Year 2009
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($'s in millions)
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Site leasing revenue $118.5 to $120.5 $468.0 to $480.0
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Site development revenue $18.0 to $21.0 $75.0 to $81.0
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Total revenues $136.5 to $141.5 $543.0 to $561.0
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Tower Cash Flow $91.5 to $93.5 $363.0 to $375.0
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Adjusted EBITDA(1) $83.5 to $85.5 $331.0 to $343.0
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Net cash interest expense(2) $36.0 to $37.0 $126.5 to $136.5
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Cash taxes paid $0.5 to $0.7 $2.0 to $3.0
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Non-discretionary cash capital
expenditures(3) $2.0 to $3.0 $6.0 to $9.0
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Equity Free Cash Flow(4) $42.8 to $47.0 $182.5 to $208.5
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Discretionary cash capital
expenditures(5) $27.0 to $37.0 $85.0 to $105.0
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(1) Excludes acquisition related costs which were
previously capitalized but commencing January 1, 2009,
pursuant to the adoption of Statement of Financial
Accounting Standard 141(R), are required to be expensed
and included within operating expenses.
(2) Excludes amortization of deferred financing fees and
non-cash interest expense.
(3) Consists of tower maintenance and general corporate
capital expenditures.
(4) Defined as Adjusted EBITDA less net cash interest
expense, non-discretionary cash capital expenditures
and cash taxes paid.
(5) Consists of new tower builds, tower augmentations,
tower acquisitions and related earn-outs and ground
lease purchases. The Company plans on building 90 to
100 new towers in 2009 for its ownership.
Conference Call Information
SBA Communications Corporation will host a conference call on Wednesday, July 29, 2009 at 10:00 A.M. ET to discuss the quarterly results. The call may be accessed as follows:
When: Wednesday, July 29, 2009
at 10:00 A.M. Eastern Time
Dial-in number: (800) 230-1085
Conference call name: "SBA Second Quarter Results"
Replay: July 29, 2009 at 12:00 P.M.
through August 12, 2009 at 11:59 P.M.
Number: (800) 475-6701
Access Code: 106489
Internet access: www.sbasite.com
Information Concerning Forward-Looking Statements
This press release includes forward-looking statements, including statements regarding the Company's expectations or beliefs regarding (i) customer demand and activity throughout 2009 and beyond; (ii) the use of the net proceeds from the Company's recent debt offering; (iii) the Company's financial and operational guidance for the third quarter of 2009 and full year 2009; (iv) the Company's belief that it is in a strong position with respect to its 2011 financing goals and (v) its belief that pending acquisitions will close by the end of the fourth quarter of 2009. These forward-looking statements may be affected by the risks and uncertainties in the Company's business. This information is qualified in its entirety by cautionary statements and risk factor disclosures contained in the Company's Securities and Exchange Commission filings, including the Company's annual report on Form 10-K filed with the Commission on February 27, 2009 and the Company's reports filed on Form 10-Q. The Company wishes to caution readers that certain important factors may have affected and could in the future affect the Company's actual results and could cause the Company's actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company. With respect to the Company's expectations regarding all of these statements, including its financial and operational guidance, such risk factors include, but are not limited to: (1) the ability and willingness of wireless service providers to maintain or increase their capital expenditures; (2) the Company's ability to secure and retain as many site leasing tenants as planned at anticipated lease rates; (3) the impact, if any, of consolidation among wireless service providers; (4) the Company's ability to secure and deliver anticipated services business at contemplated margins; (5) the Company's ability to maintain expenses and cash capital expenditures at appropriate levels for our business; (6) the Company's ability to acquire land underneath towers on terms that are accretive; (7) the Company's ability to realize economies of scale from its tower portfolio; (8) the Company's ability to comply with covenants and the terms of its credit instruments; (9) the economic climate for the wireless communications industry in general and the wireless communications infrastructure providers in particular and (10) the continued dependence on towers and outsourced site development services by the wireless carriers. With respect to the Company's plan for new builds, these factors also include zoning approvals, weather, availability of labor and supplies and other factors beyond the Company's control that could affect the Company's ability to build 90 to 100 towers in 2009. With respect to its expectations regarding the ability to close pending tower acquisitions, these factors also include, in certain cases, satisfactorily completing due diligence, the ability and willingness of each party to fulfill their respective closing conditions and the availability of cash on hand, borrowing capacity under the senior credit facility or shares of the Company's Class A common stock to pay the anticipated consideration.
Information on non-GAAP financial measures is presented below under "Non-GAAP Financial Measures." This press release will be available on our website at www.sbasite.com.
About SBA
SBA is a leading independent owner and operator of wireless communications infrastructure in the United States. SBA generates revenue from two primary businesses -- site leasing and site development services. The primary focus of the Company is the leasing of antenna space on its multi-tenant towers to a variety of wireless service providers under long-term lease contracts.
