SBA Communications ends Q4 with net debt of $5.2 billion; several metrics exceed high-end guidance

By Lisa Kerner

Charlotte, N.C., Feb. 22 - SBA Communications Corp. ended the fourth quarter on Dec. 31 with $5.4 billion of total debt, said Mark DeRussy, director of finance, during the company's earnings conference call on Friday.

"We had cash and cash equivalents, short-term restricted cash, (and) short-term investments of $266.3 million, resulting in net debt of $5.2 billion," DeRussy said.

SBA's net debt to annualized adjusted EBITDA ratio of 7.3 times is "squarely" within its target leverage range of 7.0 to 7.5 times, according to DeRussy.

During the fourth quarter, the company borrowed $100 million under its revolving credit facility. As of Dec. 31, SBA had $100 million outstanding under the facility, and the amount available under the facility was $600 million.

Subsequent to year-end on Jan. 28, total commitments under the revolving credit facility were increased to $730 million from $700 million.

According to SBA's earnings release, a wholly owned subsidiary repurchased $66.2 million of the company's 1.875% convertible senior notes due May 1, 2013 in the fourth quarter for $107.5 million in cash.

SBA did not repurchase any of its common stock in the quarter. There is $150 million remaining under its $300 million common stock repurchase plan.

"Excellent" Q4

"Our fourth-quarter financial and operational results were excellent," said chief financial officer Brendan Cavanagh on the call.

"We exceeded the high end of our guidance for leasing revenue, services revenue, tower cash flow, adjusted EBITDA and AFFO," Cavanagh said.

Total revenues in the fourth quarter of 2012 were up 59.9% from the prior-year period at $293.8 million. For the full year, total revenues were $954.1 million, versus $698 million for 2011.

Site leasing revenue rose 57.9% for the quarter and was $846 million for the year.

Tower cash flow for the quarter was $187 million, a 46.7% increase over the year-earlier period.

SBA Communications reported a net loss of $52.5 million or $0.41 per share for the quarter, compared to $29.1 million or $0.27 per share in the fourth quarter of 2011.

Fourth-quarter adjusted EBITDA increased 50.9% from the year-ago period to $177 million.

AFFO increased 60.5% to $113 million in the fourth quarter, from $70.4 million in the fourth quarter of 2011.

SBA Communications is a Boca Raton, Fla.-based provider, owner and operator of wireless communications infrastructure.

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