Research Desk Line-up: Level 3 Communications Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 14, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on SBA Communications Corp. (NASDAQ: SBAC), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=SBAC, following the Company's reporting of its second quarter fiscal 2017 results on July 31, 2017. The communications tower operator exceeded revenue estimates and raised its outlook for FY17. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Diversified Communication Services industry. Pro-TD has currently selected Level 3 Communications, Inc. (NYSE: LVLT) for due-diligence and potential coverage as the Company reported on August 02, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Level 3 Communications when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on SBAC; also brushing on LVLT. With the links below you can directly download the report of your stock of interest free of charge at:
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Earnings Reviewed
For Q2 2017, SBA Communications' total revenues were $427.3 million compared to revenue of $405.5 million in Q2 2016; reflecting an increase of 5.4%. The Company's revenue numbers exceeded analysts' expectations of $425.4 million.
SBA Communications' net income was $9.2 million, or $0.08 per share, and included a $20.4 million loss on the currency related remeasurement of a US dollar denominated intercompany loan with a Brazilian subsidiary, for Q2 2017, while net income for Q2 2016 was $32.7 million, or $0.26 per share, and included a $47.4 million gain on the currency related remeasurement of a US dollar denominated intercompany loan with a Brazilian subsidiary, partially offset by the $16.5 million Oi reserve. The Company's earnings, adjusted for non-recurring costs, were $0.19 per share, but fell short of Wall Street's expectations of $0.20 per share.
For Q2 2017, SBA Communications' adjusted EBITDA was $298.8 million, reflecting a gain of 7.4% on a y-o-y basis adjusted to exclude the impact of the prior year Oi reserve. The Company's adjusted EBITDA margin was 70.6% in Q2 2017 compared to 70.1% in Q2 2016; adjusted to exclude the impact of the Oi reserve.
For Q2 2017, SBA Communications' AFFO was $211.2 million, up 13.7% on a y-o-y basis, while AFFO per share for the reported quarter was $1.73, reflecting a 16.9% increase on a y-o-y basis.
Segment Results
During Q2 2017, SBA Communications' site leasing revenue was $403.0 million, comprising of domestic site leasing revenue of $325.3 million and international site leasing revenue of $77.7 million. The Company's domestic cash site leasing revenue was $325.0 million in the reported quarter, up 3.9% compared to $312.8 million in the year earlier same period. SBA Communications' international cash site leasing revenue was $73.8 million in Q2 2017 compared to $60.3 million in Q2 2017; reflecting an increase of 22.5%.
During Q2 2017, SBA Communications' site leasing operating profit was $313.7 million, an increase of 6.2% on a y-o-y basis, and contributed 98.7% of the Company's total operating profit in the reported quarter. The Company's domestic site leasing segment operating profit was $260.1 million, up 3.8% on a y-o-y basis, and International site leasing segment operating profit surged 19.9% to $53.6 million.
SBA Communications' tower cash flow for Q2 2017 was $317.2 million, comprising of domestic tower cash flow of $266.5 million and international tower cash flow of $50.7 million. The Company's domestic tower cash flow grew 4.3% on a y-o-y basis and international tower cash flow jumped 23.9% compared to the year earlier same quarter. SBA Communications' tower cash flow margin was 79.5% and 79.4% for Q2 2017 and Q2 2016, respectively.
Investing Activities
During Q2 2017, SBA Communications purchased 228 communication sites and the rights to manage 37 additional communication sites for a total consideration of $124.2 million. This amount was comprised of the issuance of 487,963 shares of Class A common stock and $60.9 million paid in cash during or subsequent to the end of the quarter.
The Company also built 96 towers during the reported quarter. As of June 30, 2017, SBA Communications owned or operated 26,562 communication sites, 15,947 of which are located in the United States and its territories, and 10,615 which are located internationally. In addition, the Company spent $16.4 million to purchase land and easements and to extend lease terms. Total cash capital expenditures for the second quarter of 2017 were $73.2 million, consisting of $8.1 million of non-discretionary cash capital expenditures.
Financing Activities and Liquidity
SBA Communications ended Q2 2017 with $8.8 billion of total debt; $6.9 billion of total secured debt; $194.8 million of cash and cash equivalents, short-term restricted cash, and short-term investments; and $8.6 billion of net debt. The Company's net debt and net secured debt to annualized adjusted EBITDA Leverage Ratios were 7.2x and 5.6x, respectively.
During Q2 2017, SBA Communications repurchased 1.2 million shares of its Class A common stock for $155.0 million, at an average price per share of $134.41. As of the date of the earnings press release, the Company had $750.0 million of authorization remaining under its current stock repurchase plan.
During Q2 2017, SBA Communications issued, through a trust, $760.0 million of Secured Tower Revenue Securities Series 2017-1C with an anticipated repayment date of April 2022 at a fixed interest rate of 3.168% per annum. The net proceeds were used to prepay the full amount of the Secured Tower Revenue Securities Series 2012-1C outstanding and for general corporate purposes.
Outlook
SBA Communications increased the midpoint of its guidance ranges for site leasing revenue, tower cash flow and adjusted EBITDA by $5.5 million each. These increases were due to a variety of factors, including Q2 2017 results, revised expectations around forward FX rates, and the impact of acquisitions put under contract since Q1 2017 earnings release. The Company also raised forecast for AFFO by $7 million at the midpoint, and AFFO per share by $0.075 at the midpoint. SBA Communications increased the AFFO guidance due to higher expected adjusted EBITDA and lower expected non-discretionary cash capital expenditures, offset by slightly higher expected net cash interest expense.
Stock Performance
SBA Communications' share price finished last Friday's trading session at $138.27, slightly declining 0.54%. A total volume of 733.78 thousand shares have exchanged hands. The Company's stock price surged 8.42% in the last three months, 29.27% in the past six months, and 19.04% in the previous twelve months. Additionally, the stock soared 33.90% since the start of the year. Shares of the Company have a PE ratio of 283.34 and currently have a market cap of $16.73 billion.
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