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Tag Archives: Jeffrey Stoops SBA CEO

After Q3 Success, SBA Communications Ups Full Year Outlook

By The Editors of AGL

SBA Communications increased its full-year outlook after experiencing year over year growth in the third quarter, including site leasing revenue, 5.2 percent; tower cash flow, 6.3 percent; adjusted EBITDA, 7 percent; and AFFO per share of 14.4 percent during the third quarter.

“The third quarter was another solid one for SBA,” said Jeffrey A. Stoops, president and CEO. With FirstNet, 600 MHz, 2.5 GHz, and other deployments by our customers still ahead in the U.S. and material network investment expected from our customers in our international markets, we remain very optimistic about the future and our ability to create additional shareholder value through consistent and material growth in AFFO per share.”

Domestically, SBA’s operational customer activity included a mix of new leases and amendments, with growth driven by LTE capacity upgrades as well as AWS-3 overlays, 1,900, 700 and 600 megahertz deployments. In the coming year, the towerco is looking forward to applications from AT&T for the First Responder Network Authority (FirstNet).

“While this year has been steady in the United States, we believe operational leasing activity next year should be better,” Stoops said. “We’ve begun to see some initial applications from AT&T incorporating FirstNet needs, although nothing material yet.”

The tower industry has a long runway for growth in the 2.5 GHz band, as well as continued deployments AWS-3, 600 MHz and 700 MHz bands. Plus, DISH is getting close to the FCC deadline to deploy on its spectrum. Stoops also reacted to rumors of a new Sprint deployment, perhaps in keeping with the reported breakdown of its merger talks with Sprint.

“Sprint appears to be on the verge of the first material investment in macro radios and antennas in years,” Stoops said. “As we’ve stated in the past, we think being a predominantly U.S. macro tower company will be a great position to be in for years to come. And while things are good in the U.S. and expected to get better, we continue to be very pleased with our international results.”

Quotes courtesy Seeking Alpha

SBA Ends Q3 with ‘Solid’ Results

November 3, 2016 — SBA Communications reported another strong period in the third quarter, with total revenues of $411.3 million compared with $410.7 million, increase of 0.1 year over year. Site leasing revenue of $388.2 million increased 4.3 percent year over year. Domestic cash site leasing revenue was $316.8 million, compared with $306.9 million, an increase of 3.2 percent, year over year.

“Organic leasing demand was steady,” said Jeffrey Stoops, president and CEO. “Amendment activity in the U.S. was very strong, with our customers adding to or modifying existing macro sites to refarm 2G and 3G uses to 4G LTE or to add new spectrum to their networks.”

Domestic tower cash flow for the third quarter of 2016 was $258.9 million compared with $251.0 million in the year earlier period, an increase of 3.2 percent.

During the 3Q2016, SBA purchased 157 communication sites for $30.9 million, built 93 towers, and, as of September 30, it owned or operated 25,878 sites; 15,845 in the United States, and 10,033 internationally.

Joining American and Crown, SBA Goes REIT

October 11, 2016 — SBA Communications will become the last of the three major public tower companies to elect to be taxed as a real estate investment trust (REIT) beginning at the end of this year. The conversion was not a real surprise. American Tower and Crown Castle International have already gone REIT and SBA has been working on it for two years.

“REIT status is the optimal structure for our business given the real estate nature of our assets,” said Jeffrey Stoops, SBA’s president and CEO.  “We believe a REIT structure will provide many opportunities for creating long-term shareholder value.”

REITs, which may legally avoid paying U.S. federal income tax, generally must pay out at least 90 percent of their taxable income in the form of dividends to shareholders. SBA’s determination as to the timing and amount of future dividend distributions will be based on a number of factors, including REIT distribution requirements, investment opportunities around its core business and its existing federal net operating losses (NOLs) of $1.15 billion as of December 31, 2015.

SBA may use these NOLs to offset its REIT taxable income, and thus any required distributions to shareholders may be reduced or eliminated until such time as the NOLs have been fully utilized.  SBA does not expect that it will be required to make any distribution of accumulated earnings and profits  in connection with its REIT conversion.

SBA Communications: 2Q Solid With Steady Leasing

August 2, 2026 — The second quarter was another solid period for SBA Communications, Jeffrey Stoops, president and CEO told an earning call last week, with steady organic leasing demand.

“Our customers in the U.S. were most active adding to or modifying existing macro sites to refarm 2G and 3G uses to 4G LTE or to add new spectrum to their networks,” Stoops said.

Domestic cash site leasing revenue grew 4.2 percent year over year to $312.8 million in the second quarter. Site leasing operating profit grew 2.3 percent to $295.4 million, year over year. Domestic Tower Cash Flow for the increased 4.6 percent to $255.4 million.

Capex was equally divide between stock repurchases, portfolio growth and ground purchases. SBA also completed refinancing of a portion of its deb, reducing interest costs on its capital structure.

During the second quarter of 2016, SBA purchased 42 communication sites for $40.6 million in cash and built 90 towers. It now owns or operates 25,670 communication sites, 15,843 in the United States and 9,827 internationally. In addition, the Company spent $19.8 million to purchase land and easements and to extend lease terms. Total cash capex was $91.5 million, consisting of $8.7 million for tower maintenance and general corporate and $82.8 million for new tower builds, tower augmentations, acquisitions and purchasing land and easements).

“Our success in each of these areas, organic growth, operating performance, asset growth, stock repurchases and financing, has a positive impact on and contributes to our long term goal of producing AFFO of more than $10 per share in 2020,” Stoops said.

SBA Communications in Q1 Steady as She Goes

By J. Sharpe Smith

SBA CommunicationsMay 5, 2016 — Enjoying a solid start to 2016, SBA Communications reported that carrier activity was consistent with the last three quarters of 2015, featuring mostly amendments to existing macro sites, according to the towerco’s first quarter earnings call. Aside from normal churn and an iDEN de-commissioning hangover, which will last most of 2016, SBA achieved organic leasing revenue growth of 8.1 percent in the first quarter.

“By application and executed contract volume, the activity is substantially amendments,” said Jeffrey Stoops, president and CEO. “We expect the investments in macro sites by our U.S. customers will remain heavily weighted towards amendments for the remainder of this year.”
SBA projected increased growth in the long term (by 2020) through new sites and amendment activity, but conservative short-term estimates led Wells Fargo Securities to maintain its Market Perform rating for its stock.

“While this is a positive, SBAC continued to speak to a more muted domestic spending environment, which does not seem to be changing near term,” wrote Senior Analyst Jennifer Fritzsche.

During the quarter, carrier activity centered on the AWS-1 (Advanced Wireless Services at 1.7 GHz and 2.1 GHz) and 700 MHz deployments, as well as refarming of 2G and 3G spectrum to LTE,

“We are in the very early innings of AWS-3 (1.6 GHz, 1.75 GHz, 2.15 GHz), WCS (Wireless Communications Service at 2.3 GHz) and 2.5 GHz spectrum deployments all of which remain opportunities ahead of us,” Stoops said. “The amount of activity around an investment in our customers’ existing macro sites continues to be robust and underscores the importance of macro sites in our customers’ network plans.”

SBA lowered its services guidance to reflect reduced work from Sprint, while other carriers are expected to remain steady, compared with last year.

American Tower

Carrier activity reported by American Tower in the first quarter took place in the AWS-3, WCS, and 2.5 GHz bands, as well as through refarming 2G and 3G spectrum into 4G in the 800 MHz and PCS bands. Refarming drove amendments as old antennas were swapped out for more advanced antennas, according to James Taiclet, American president and CEO.

“This shift drives further investment into cell sites through technologies such as carrier aggregation as well as adding new cell sites to reduce the transmission radius and, therefore, the quality improvement for each signal,” he said. “This increase in cell site density is expected to drive incremental collocation opportunities on macro towers, as customers like us demand higher and higher peak speeds to enhance our user experience.”

Organic growth of U.S. property revenue is projected to be 5.5 percent by American Tower, compared with 12 percent for international properties.

Crown Castle International

Crown Castle saw organic site rental revenue grow 7 percent plus 3 percent cash escalations minus 2 percent from churn in the first quarter.

Jay Brown, Crown Castle CFO, also said carrier activity won’t increase in 2016. Additionally, the execution of new leases and amendments will be backloaded, 40 percent in the first half and 60 percent in the second half.

“Our view is that leasing activity in the full year of 2016 is going to be very similar to what we saw in 2015. And we continue to hold that view,” he said.