BOCA RATON, Fla., Oct. 29, 2009 (GLOBE NEWSWIRE) -- SBA Communications Corporation (Nasdaq:SBAC) ("SBA" or the "Company") today reported results for the quarter ended September 30, 2009. Highlights of the results include:

  --   Third quarter over year earlier period:
       -  Site leasing revenue growth of 19.9%
       -  Tower Cash Flow growth of 22.2%
       -  Net loss increased from $27.6 million to $50.1 million
       -  Adjusted EBITDA growth of 27.0%
       -  Equity Free Cash Flow growth of 17.1%

Operating Results

Total revenues in the third quarter of 2009 were $139.3 million, compared to $118.7 million in the year earlier period, an increase of 17.4%. Site leasing revenue of $120.6 million was up 19.9% over the year earlier period. Site leasing segment operating profit (as defined below) of $91.9 million was up 21.3% over the year earlier period. Site leasing contributed 97.8% of the Company's total segment operating profit in the third quarter of 2009. Site development revenues were $18.7 million in the third quarter of 2009 compared to $18.2 million in the year earlier period, a 3.2% increase. Site development segment operating profit margin was 11.2% in the third quarter of 2009, compared to 4.8% in the year earlier period.

Tower Cash Flow (as defined below) for the third quarter of 2009, was $93.6 million, a 22.2% increase over the year earlier period. Tower Cash Flow margin for the third quarter of 2009 was 78.6%, compared to 77.7% in the year earlier period.

Net loss for the third quarter of 2009 was $50.1 million or $0.43 per share, compared to a net loss of $27.6 million or $0.26 per share in the year earlier period. This increase was primarily due to the loss from the early extinguishment of debt as well as an increase in interest expense.

Adjusted EBITDA (as defined below) in the third quarter was $85.0 million, compared to $66.9 million in the year earlier period, a 27.0% increase. Adjusted EBITDA margin was 61.7% in the third quarter of 2009 compared to 57.3% in the year earlier period.

Net cash interest expense (as defined below) was $36.1 million in the third quarter of 2009, compared to $24.9 million in the year earlier period.

Equity free cash flow (as defined below) for the quarter ended September 30, 2009 was $46.0 million compared to $39.3 million in the year earlier period, an increase of 17.1%. Equity free cash flow per share was $0.39 in the quarter ended September 30, 2009 compared to $0.37 per share in the year earlier period, an increase of 5.4%.

"We produced another strong quarter of results," commented Jeffrey A. Stoops, President and Chief Executive Officer. "Customer demand for our leasing space and services was solid in the quarter, and is increasing as we move to year-end. Demand associated with 4G networks now represents a significant part of our new business, and is expected to increase as we move into and through 2010. With our balance sheet now close to what we believe is an optimum position for the creation of additional shareholder value, we are once again actively pursuing portfolio growth that meets our investment criteria. Acquisition activity is higher, and for 2009 we expect to increase our number of towers owned by approximately five percent. We are well-positioned to achieve in 2010 our historical goal of five percent to ten percent portfolio growth. While portfolio growth remains our primary focus for the discretionary investment of our capital, we have adopted a stock repurchase plan that will assist us in keeping our balance sheet optimized and allow us to take advantage of favorable stock repurchase opportunities that may arise from time to time. We expect the combination of strong customer demand and organic growth, and our ability and desire to make significant investments in portfolio growth and potentially stock repurchases, will drive material growth in equity free cash flow per share. We look forward to a solid finish in 2009 and a strong 2010."

Investing Activities

As of September 30, 2009 SBA owned 8,085 towers, six distributed antenna system ("DAS") networks and managed an additional 5,200 actual or potential communication sites. During the third quarter of 2009, SBA purchased 58 towers and built 25 towers. The 58 towers were purchased for approximately $24.2 million (exclusive of working capital adjustments) all of which was paid in cash. Total cash capital expenditures for the third quarter of 2009 were $37.5 million, consisting of $2.2 million of non-discretionary cash capital expenditures (tower maintenance and general corporate) and $35.3 million of discretionary cash capital expenditures (new tower builds, tower augmentations, tower acquisitions and related earn-outs, and ground lease buyouts). During the third quarter, the Company spent $3.2 million purchasing land and easements and extending lease terms with respect to land underlying its towers.

Since September 30, 2009, SBA has acquired 18 towers for approximately $9.6 million in cash. The Company has agreed to purchase an additional 151 towers for an aggregate amount of $75.4 million. The Company anticipates that these acquisitions will be consummated by the end of the first quarter of 2010.

On October 29, 2009, the Company's Board of Directors authorized a stock repurchase program. This program authorizes the Company to purchase, from time to time, up to $250.0 million of the Company's outstanding common stock through open market repurchases in compliance with Rule 10b-18 of the Securities Act of 1933, as amended, and/or in privately negotiated transactions at management's discretion based on market and business conditions, applicable legal requirements and other factors. This program will become effective November 3, 2009 and will continue until otherwise modified or terminated by the Company's Board of Directors at any time in the Company's sole discretion.

Financing Activities and Liquidity

SBA ended the third quarter with $2.8 billion of total debt (recorded on the Company's balance sheet at a discounted carrying value of $2.5 billion), $0.3 billion 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 7.3x and 1.9x, respectively. As of September 30, 2009, no amounts were drawn on the Company's $320 million senior credit facility and all amounts are fully available.

During the third quarter of 2009, 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 $728.7 million after deducting initial purchasers' discounts, expenses and original issue discount. The Company used the net proceeds of the offering to repay amounts outstanding under the Optasite Credit Facility, amounts outstanding under the Senior Credit Facility and the 2005 CMBS Certificates (including the prepayment consideration). In addition, the Company intends to use a portion of the net proceeds of the offering to repurchase prior to maturity or repay at maturity the 0.375% Notes. The remaining proceeds will be used for general corporate purposes. The Company terminated the Optasite Credit Facility upon repayment of the remaining amounts. During the third quarter of 2009, the Company also repurchased $4.0 million of its 0.375% Convertible Senior Notes and $105.6 million of its 2006 CMBS Notes for an aggregate of $109.2 million in cash.

Subsequent to September 30, 2009, the Company repurchased $0.6 million of its 2006 CMBS Notes for $0.6 million in cash.

Outlook

The Company is providing its fourth quarter 2009 Outlook, updating its Full Year 2009 Outlook and providing its Full Year 2010 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.

The Company's Full Year 2010 Outlook is based on the following assumptions: (1) 9% organic leasing revenue growth on projected owned towers as of January 1, 2010; (2) new tower builds of 100 - 110 towers in 2010 for the Company's ownership; (3) the acquisition of only those tower assets under contract at the time of this press release, (4) no additional open market debt repurchases and (5) no stock repurchases. The Company intends to spend additional capital in 2010 on acquiring revenue producing assets not yet identified and under contract, the impact of which is not reflected in the 2010 guidance.

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                 Quarter ending         Full               Full
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                December 31, 2009      Year 2009          Year 2010
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                              ($'s in millions)
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 Site leasing
  revenue         $121.5 to $123.5  $474.9 to $476.9  $512.0 to $532.0
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 Site
  development
  revenue          $18.0 to  $20.0   $75.2 to  $77.2   $75.0 to  $90.0
 ---------------------------------------------------------------------
 Total revenues   $139.5 to $143.5  $550.1 to $554.1  $587.0 to $622.0
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 Tower Cash
  Flow             $95.0 to  $97.0  $369.1 to $371.1  $402.0 to $420.0
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 Adjusted
  EBITDA(1)        $86.0 to  $88.0  $336.0 to $338.0  $367.0 to $385.0
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 Net cash
  interest
  expense(2)       $37.0 to  $38.0  $129.4 to $130.4  $145.0 to $155.0
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 Cash taxes paid    $0.3 to   $0.5    $2.1 to   $2.3    $2.0 to   $3.0
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 Non-discretionary
  cash capital
  expenditures(3)   $2.0 to   $3.0    $8.0 to   $9.0    $7.0 to  $11.0
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 Equity Free
  Cash Flow(4)     $44.5 to  $48.7  $194.3 to $198.5  $198.0 to $231.0
 ---------------------------------------------------------------------
 Discretionary
  cash capital
  expenditures(5)  $59.0 to  $69.0  $141.7 to $151.7   $90.0 to $110.0
 ---------------------------------------------------------------------
 (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) Interest expense less interest income. Net cash interest expense
     does not include any impact from the amortization of deferred
     financing fees or 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 approximately 100 new towers in
     2009 for its ownership.

Conference Call Information

SBA Communications Corporation will host a conference call on October 30, 2009 at 10:00 A.M. ET to discuss the quarterly results. The call may be accessed as follows:

 When:                     Friday, October 30, 2009 at
                           10:00 A.M. Eastern Time
 Dial-in number:           (800) 230-1074
 Conference call name:     "SBA Third Quarter Results"
 Replay:                   October 30, 2009 at 12:00 P.M. through
                           November 13, 2009 at 11:59 P.M.
 Number:                   (800) 475-6701
 Access Code:              114693
 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 through the end of 2009 and 2010; (ii) the Company's positioning to create additional shareholder value, (iii) the use of the net proceeds from the Company's recent debt offering; (iv) the Company's financial and operational guidance for the fourth quarter of 2009, full year 2009 and full year 2010, including its ability to drive material growth in equity free cash flow per share and (v) the Company's expectations regarding tower acquisitions and its belief that pending acquisitions will close by the end of the first quarter of 2010. 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 approximately 100 towers in 2009 and 100 to 110 towers in 2010. With respect to its expectations regarding the ability to close pending tower acquisitions, these factors also include 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. With respect to repurchases under the adopted stock repurchase program, the amount of shares repurchased, if any, and the timing of such repurchases will depend on, among other things, the trading price of its Common Stock, which may be positively or negatively impacted by the repurchase program, market and business conditions, the availability of stock, the Company's financial performance or determinations following the date of this announcement in order to use the Company's funds for other purposes.

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.