Exhibit 99.1
NEWS
FOR IMMEDIATE RELEASE
SBA COMMUNICATIONS CORPORATION ANNOUNCES RESULTS OF
REAUDIT OF 2001 FINANCIAL STATEMENTS
SBA COMMUNICATIONS CORPORATION (NASDAQ: SBAC); BOCA RATON, FLORIDA, NOVEMBER 10, 2003
As previously reported, SBA Communications Corporation (including its subsidiaries, “SBA” or the “Company”) is required according to SEC rules to restate its financial statements for all periods presented to reflect as discontinued operations the 2003 sale of towers to AAT Communications Corporation (“AAT”) and certain other towers held for sale. In that regard, SBA engaged Ernst & Young LLP, the Company’s independent accountants since 2002, to re-audit the Company’s financial statements for the year ended December 31, 2001.
SBA Communications Corporation will be restating its financial statements for fiscal years 2002 and 2001 to reflect as discontinued operations the sale of towers to AAT and certain other towers held for sale, and to make certain adjustments identified through the audit process primarily related to the accounting for certain business combinations. These adjustments are primarily a result of changes in 2001 to reflect the elimination of net deferred tax liabilities and corresponding goodwill established in connection with certain business combinations, the accounting for earn-out obligations settled in 2002 related to previous business combinations and certain other adjustments. As a result, reported net loss for the year 2002 is expected to be reduced by approximately $24.2 million related to a reduction to the previously reported write-off of goodwill, consisting of a $19.9 million reduction of the cumulative effect of a change in accounting principle and a $4.3 million reduction of asset impairment charges. The effects of the restatements are expected to be as follows for the years ended December 31, 2002 and 2001:
As Previously Reported(1) | As Restated | As Previously Reported(1) | As Restated | |||||||||
(in thousands, except per share data) | ||||||||||||
2002 | 2002 | 2001 | 2001 | |||||||||
Revenues | $ | 240,036 | $ | 240,036 | $ | 225,141 | $ | 225,141 | ||||
Site leasing gross profit | $ | 74,388 | $ | 74,388 | $ | 54,777 | $ | 54,777 | ||||
Site development gross profit | $ | 22,568 | $ | 22,568 | $ | 31,803 | $ | 31,203 | ||||
Total operating expenses | $ | 197,574 | $ | 193,323 | $ | 132,505 | $ | 132,552 | ||||
Loss from continuing operations before cumulative effect of change in accounting principle | $ | (188,835 | ) | $ | (184,584 | ) | $ | (122,943 | ) | $ | (123,590 | ) | ||||
Loss from discontinued operations | (3,738 | ) | (3,738 | ) | (2,202 | ) | (2,202 | ) | ||||||||
Loss before cumulative effect of change in accounting principle | (192,573 | ) | (188,322 | ) | (125,145 | ) | (125,792 | ) | ||||||||
Cumulative effect of change in accounting principle | (80,592 | ) | (60,674 | ) | — | — | ||||||||||
Net loss | $ | (273,165 | ) | $ | (248,996 | ) | $ | (125,145 | ) | $ | (125,792 | ) | ||||
Per Share Data: | ||||||||||||||||
Basic and Diluted Loss Per Common Share Amounts: | ||||||||||||||||
Loss from continuing operations before cumulative effect of change in accounting principle | $ | (3.76 | ) | $ | (3.66 | ) | $ | (2.59 | ) | $ | (2.61 | ) | ||||
Loss from discontinued operations | (0.07 | ) | (0.07 | ) | (0.05 | ) | (0.05 | ) | ||||||||
Cumulative effect of change in accounting principle | (1.60 | ) | (1.20 | ) | — | — | ||||||||||
Net loss per common share | $ | (5.43 | ) | $ | (4.93 | ) | $ | (2.64 | ) | $ | (2.66 | ) | ||||
Weighted average number of common shares(2) | 50,308 | 50,491 | 47,437 | 47,321 | ||||||||||||
(1)The “as previously reported” amounts have been adjusted to reflect the impact of discontinued operations and the reclassification of the loss from the early extinguishment of debt in accordance with SFAS 145.
(2)Adjusted to correct the timing of shares issuable under certain earn-out obligations.
Certain adjustments identified in the restatement of the 2002 and 2001 financial statements, primarily those related to the accounting for certain business combinations, also affect the June 30, 2003 and 2002 financial statements previously filed. In addition, the loss on sale of towers previously reported in the second quarter of 2003 will be restated to reflect additional loss associated with tower sale indemnity obligations.
Reported net loss for the six months ended June 30, 2003 will be increased by approximately $11.2 million related to the loss on the AAT tower sale, which is classified as a component of discontinued operations. The sale of the remaining 153 towers sold from July 1, 2003 through October 1, 2003, in the AAT transaction is expected to result in an aggregate gain, net of provisions for purchase price adjustments, of approximately $16 million. The Company expects its cumulative loss on the entire AAT transaction to be approximately $2 million. Reported net loss for the six months ended June 30, 2002 will be reduced by approximately $24.2 million related to a reduction to the previously reported write-off of goodwill, consisting of a $19.9 million reduction of the cumulative effect of a change in accounting principle and a $4.3 million reduction of asset impairment charges. The effects of the restatements related to the applicable six month periods are expected to be as follows:
As Previously Reported | As Restated | As Reported | As Restated | |||||||||||||
(in thousands, except per share data) | ||||||||||||||||
For the six months ended June 30, | For the six months ended June 30, | |||||||||||||||
2003 | 2003 | 2002 | 2002 | |||||||||||||
Revenues | $ | 102,052 | $ | 102,052 | $ | 121,842 | $ | 121,842 | ||||||||
Site leasing gross profit | $ | 41,421 | $ | 41,421 | $ | 36,332 | $ | 36,332 | ||||||||
Site development gross profit | $ | 3,718 | $ | 3,718 | $ | 13,535 | $ | 13,535 | ||||||||
Total operating expenses | $ | 69,947 | $ | 69,947 | $ | 134,925 | $ | 130,672 | ||||||||
Loss from continuing operations before cumulative effect of changes in accounting principles | $ | (78,193 | ) | $ | (78,193 | ) | $ | (128,971 | ) | $ | (124,718 | ) | ||||
Loss from discontinued operations | (11,425 | ) | (22,599 | ) | (1,596 | ) | (1,596 | ) | ||||||||
Loss before cumulative effect of changes in accounting principles | (89,618 | ) | (100,792 | ) | (130,567 | ) | (126,314 | ) | ||||||||
Cumulative effect of changes in accounting principles | (545 | ) | (545 | ) | (80,592 | ) | (60,674 | ) | ||||||||
Net loss | $ | (90,163 | ) | $ | (101,337 | ) | $ | (211,159 | ) | $ | (186,988 | ) | ||||
Basic and Diluted Loss Per Common Share Amounts: | ||||||||||||||||
Loss from continuing operations before cumulative effect of changes in accounting principles | $ | (1.53 | ) | $ | (1.53 | ) | $ | (2.60 | ) | $ | (2.49 | ) | ||||
Loss from discontinued operations | (0.22 | ) | (0.44 | ) | (0.03 | ) | (0.03 | ) | ||||||||
Cumulative effect of changes in accounting principles | (0.01 | ) | (0.01 | ) | (1.62 | ) |
| (1.10r (1.21 |
) | |||||||
Net loss per common share | $ | (1.76 | ) | $ | (1.98 | ) | $ | (4.25 | ) | $ | (3.73 | ) | ||||
Weighted average number of common shares | 51,132 | 51,132 | 49,705 | 50,074 | ||||||||||||
Attached are unaudited restated financial statements for 2002 and 2001. The Company intends to file restated audited financial statements for 2002 and 2001 together with the opinion of Ernst & Young LLP, thereon by means of Form 8-K as soon as practicable. The independent auditors’ report included in the initial issuance of the Company’s 2002 consolidated financial statements contained an explanatory paragraph regarding substantial doubt about the Company’s ability to continue as a going concern. The Company does not believe the conditions that raised substantial doubt about whether the Company will continue as a going concern will exist at the time the independent auditor’s report on the 2002 and 2001 financial statements is issued and therefore such report will not contain a “going concern” qualification. Additionally, the Company intends to amend its Form 10-Q for the three and six months ended June 30, 2003.
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. Since it was founded in 1989, SBA has participated in the development of over 20,000 antenna sites in the United States.
For additional information about SBA, please contact Pam Kline, Vice-President-Capital Markets, at (561) 995-7670.
Information Concerning Forward-Looking Statements
This press release includes forward-looking statements including (i) the amount and details of adjustments being made to the Company’s financial statements for the years ended December 31, 2002 and 2001 and for the three and six months ended June 30, 2003 and 2002 and (ii) the Company’s intent to file the full financials as soon as practicable.
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 disclosure contained in the Company’s Securities and Exchange Commission filings, including the Company’s report on Form 10-K filed with the Commission on March 31, 2003. 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 amount and details of any adjustments and the timing of filing such financials, these statements are subject to the completion of final financial statements for the relevant periods. The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.
SBA COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Restated)
(in thousands, except par values)
December 31, 2002 | December 31, 2001 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 61,141 | $ | 13,904 | ||||
Accounts receivable, net of allowances of $5,572 and $5,921 in 2002 and 2001, respectively | 36,292 | 56,796 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 10,425 | 11,333 | ||||||
Prepaid and other current assets | 5,129 | 9,659 | ||||||
Assets held for sale | 203,325 | 214,338 | ||||||
Total current assets | 316,312 | 306,030 | ||||||
Property and equipment, net | 940,053 | 986,063 | ||||||
Deferred financing fees, net | 24,517 | 27,807 | ||||||
Other assets | 18,779 | 22,244 | ||||||
Intangible assets, net | 3,704 | 4,725 | ||||||
Goodwill, net | — | 60,674 | ||||||
Total assets | $ | 1,303,365 | $ | 1,407,543 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 16,810 | $ | 56,293 | ||||
Accrued expenses | 13,943 | 11,907 | ||||||
Deferred revenue | 11,142 | 10,396 | ||||||
Interest payable | 22,919 | 21,815 | ||||||
Long-term debt, current portion | 60,083 | 365 | ||||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 2,362 | 6,302 | ||||||
Other current liabilities | 3,595 | 2,664 | ||||||
Liabilities held for sale | 2,685 | 2,966 | ||||||
Total current liabilities | 133,539 | 112,708 | ||||||
Long-term liabilities: | ||||||||
Long-term debt | 964,199 | 845,088 | ||||||
Deferred revenue | 703 | 306 | ||||||
Other long-term liabilities | 1,434 | 697 | ||||||
Total long-term liabilities | 966,336 | 846,091 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ equity: | ||||||||
Common stock-Class A par value $.01 (200,000 and 100,000 shares authorized, 45,674 and 43,233 shares issued and outstanding in 2002 and 2001, respectively) | 457 | 432 | ||||||
Common stock-Class B par value $.01 (8,100 shares authorized,5,456 shares issued and outstanding in 2002 and 2001) | 55 | 55 | ||||||
Additional paid-in capital | 667,441 | 663,724 | ||||||
Accumulated deficit | (464,463 | ) | (215,467 | ) | ||||
Total shareholders’ equity | 203,490 | 448,744 | ||||||
Total liabilities and shareholders’ equity | $ | 1,303,365 | $ | 1,407,543 | ||||
SBA COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Restated)
(in thousands, except per share amounts)
For the years ended December 31, | ||||||||
2002 | 2001 | |||||||
Revenues: | ||||||||
Site leasing | $ | 114,995 | $ | 85,406 | ||||
Site development | 125,041 | 139,735 | ||||||
Total revenues | 240,036 | 225,141 | ||||||
Cost of revenues (exclusive of depreciation and amortization shown below): | ||||||||
Cost of site leasing | 40,607 | 30,629 | ||||||
Cost of site development | 102,473 | 108,532 | ||||||
Total cost of revenues | 143,080 | 139,161 | ||||||
Gross profit | 96,956 | 85,980 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative | 34,352 | 42,103 | ||||||
Restructuring and other charges | 47,762 | 24,399 | ||||||
Asset impairment charges | 25,545 | — | ||||||
Depreciation and amortization | 85,664 | 66,050 | ||||||
Total operating expenses | 193,323 | 132,552 | ||||||
Operating loss from continuing operations | (96,367 | ) | (46,572 | ) | ||||
Other income (expense): | ||||||||
Interest income | 601 | 7,059 | ||||||
Interest expense, net of amounts capitalized | (54,822 | ) | (47,709 | ) | ||||
Non-cash interest expense | (29,038 | ) | (25,843 | ) | ||||
Amortization of debt issuance costs | (4,480 | ) | (3,887 | ) | ||||
Write-off of deferred financing fees | — | (5,069 | ) | |||||
Other | (169 | ) | (76 | ) | ||||
Total other expense | (87,908 | ) | (75,525 | ) | ||||
Loss from continuing operations before provision for income taxes and cumulative effect of change in accounting principle | (184,275 | ) | (122,097 | ) | ||||
Provision for income taxes | (309 | ) | (1,493 | ) | ||||
Loss from continuing operations before cumulative effect of change in accounting principle | (184,584 | ) | (123,590 | ) | ||||
Loss from discontinued operations, net of income taxes | (3,738 | ) | (2,202 | ) | ||||
Loss before cumulative effect of change in accounting principle | (188,322 | ) | (125,792 | ) | ||||
Cumulative effect of change in accounting principle | (60,674 | ) | — | |||||
Net loss | $ | (248,996 | ) | $ | (125,792 | ) | ||
Basic and diluted loss per common share amounts: | ||||||||
Loss from continuing operations before cumulative effect of change in accounting principle | $ | (3.66 | ) | $ | (2.61 | ) | ||
Loss from discontinued operations | (0.07 | ) | (0.05 | ) | ||||
Cumulative effect of change in accounting principle | (1.20 | ) | — | |||||
Net loss per common share | $ | (4.93 | ) | $ | (2.66 | ) | ||
Weighted average number of common shares | 50,491 | 47,321 | ||||||
SBA COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Restated)
(in thousands)
For the years ended December 31, | ||||||||
2002 | 2001 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net loss | $ | (248,996 | ) | $ | (125,792 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 85,664 | 66,050 | ||||||
Non-cash restructuring and other charges | 43,438 | 24,119 | ||||||
Asset impairment charges | 25,545 | — | ||||||
Non-cash items reported in discontinued operations (depreciation and amortization) | 16,664 | 12,658 | ||||||
Non-cash compensation expense | 2,017 | 3,326 | ||||||
Provision for doubtful accounts | 3,371 | 2,641 | ||||||
Amortization of original issue discount and debt issuance costs | 33,518 | 29,730 | ||||||
Amortization of deferred gain from derivative | (133 | ) | — | |||||
Write-off of deferred financing fees and extinguishment of debt | — | 5,069 | ||||||
Cumulative effect of change in accounting principle | 60,674 | — | ||||||
Changes in operating assets and liabilities, net of effect of acquisitions: | ||||||||
Accounts receivable | 17,133 | (3,972 | ) | |||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 908 | 3,201 | ||||||
Prepaid and other current assets | 1,356 | (3,849 | ) | |||||
Other assets | (5,674 | ) | 2,721 | |||||
Accounts payable | (15,229 | ) | (12,183 | ) | ||||
Accrued expenses | (144 | ) | (2,417 | ) | ||||
Deferred revenue | 761 | 6,113 | ||||||
Interest payable | 1,104 | 21,766 | ||||||
Other liabilities | (230 | ) | (584 | ) | ||||
Billings in excess of costs and estimated earnings on uncompleted contracts | (3,940 | ) | R156 | |||||
Total adjustments | 266,803 | 154,545 | ||||||
Net cash provided by operating activities | 17,807 | 28,753 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from termination of interest rate swap agreement | 5,369 | — | ||||||
Capital expenditures | (86,361 | ) | (307,557 | ) | ||||
Acquisitions and related earn-outs | (29,724 | ) | (239,143 | ) | ||||
Receipt (payment) of restricted cash | 8,000 | (8,000 | ) | |||||
Net cash used in investing activities | (102,716 | ) | (554,700 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from employee stock purchase/option plans | 329 | 3,250 | ||||||
Proceeds from senior notes payable, net of financing fees | — | 484,223 | ||||||
Borrowings under senior credit facility, net of financing fees | 143,809 | 134,430 | ||||||
Bank overdraft borrowings (repayments) | (11,547 | ) | 8,602 | |||||
Repayment of senior credit facility and notes payable | (445 | ) | (105,634 | ) | ||||
Net cash provided by financing activities | 132,146 | 524,871 | ||||||
Net increase (decrease) in cash and cash equivalents | 47,237 | (1,076 | ) | |||||
CASH AND CASH EQUIVALENTS: | ||||||||
Beginning of year | 13,904 | 14,980 | ||||||
End of year | $ | 61,141 | $ | 13,904 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
Cash paid during the year for: | ||||||||
Interest, net of amounts capitalized | $ | 58,261 | $ | 25,943 | ||||
Taxes | $ | 1,502 | $ | 2,215 | ||||
NON-CASH ACTIVITIES: | ||||||||
Assets acquired in connection with acquisitions | $ | 3,396 | $ | 54,835 | ||||
Liabilities assumed in connection with acquisitions | $ | (2,000 | ) | $ | (3,685 | ) | ||
Common stock issued in connection with acquisitions | $ | (1,396 | ) | $ | (29,800 | ) | ||
SBA COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Restated)
(in thousands, except par values)
June 30, 2003 | December 31, 2002 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 22,040 | $ | 61,141 | ||||
Restricted cash | 23,010 | — | ||||||
Accounts receivable, net of allowances of $4,711 and $5,572 in 2003 and 2002, respectively | 26,304 | 36,292 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 7,189 | 10,425 | ||||||
Prepaid and other current assets | 4,967 | 5,129 | ||||||
Assets held for sale | 42,708 | 203,325 | ||||||
Total current assets | 126,218 | 316,312 | ||||||
Property and equipment, net | 896,619 | 940,053 | ||||||
Deferred financing fees, net | 24,664 | 24,517 | ||||||
Other assets | 32,447 | 18,779 | ||||||
Intangible assets, net | 3,019 | 3,704 | ||||||
Total assets | $ | 1,082,967 | $ | 1,303,365 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 11,524 | $ | 16,810 | ||||
Accrued expenses | 22,031 | 13,943 | ||||||
Deferred revenue | 11,619 | 11,142 | ||||||
Interest payable | 31,476 | 22,919 | ||||||
Long-term debt, current portion | 6,558 | 60,083 | ||||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 1,881 | 2,362 | ||||||
Other current liabilities | 2,222 | 3,595 | ||||||
Liabilities held for sale | 683 | 2,685 | ||||||
Total current liabilities | 87,994 | 133,539 | ||||||
Long-term liabilities: | ||||||||
Long-term debt | 888,130 | 964,199 | ||||||
Deferred revenue | 669 | 703 | ||||||
Other long-term liabilities | 3,513 | 1,434 | ||||||
Total long-term liabilities | 892,312 | 966,336 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ equity: | ||||||||
Common stock-Class A par value $.01 (200,000 shares authorized, 45,684 and 45,674 shares issued and outstanding in 2003 and 2002, respectively) | 457 | 457 | ||||||
Common stock-Class B par value $.01 (8,100 shares authorized, 5,456 shares issued and outstanding in 2003 and 2002) | 55 | 55 | ||||||
Additional paid-in capital | 667,949 | 667,441 | ||||||
Accumulated deficit | (565,800 | ) | (464,463 | ) | ||||
Total shareholders’ equity | 102,661 | 203,490 | ||||||
Total liabilities and shareholders’ equity | $ | 1,082,967 | $ | 1,303,365 | ||||
SBA COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Restated)
(unaudited)
(in thousands, except per share amounts)
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
2003 | 2002 | 2003 | 2002 | |||||||||||||
Revenues: | ||||||||||||||||
Site leasing | $ | 31,710 | $ | 28,232 | $ | 62,713 | $ | 55,066 | ||||||||
Site development | 18,665 | 35,373 | 39,339 | 66,776 | ||||||||||||
Total revenues | 50,375 | 63,605 | 102,052 | 121,842 | ||||||||||||
Cost of revenues (exclusive of depreciation, accretion and amortization shown below): | ||||||||||||||||
Cost of site leasing | 10,577 | 9,496 | 21,292 | 18,734 | ||||||||||||
Cost of site development | 16,927 | 28,562 | 35,621 | 53,241 | ||||||||||||
Total cost of revenues | 27,504 | 38,058 | 56,913 | 71,975 | ||||||||||||
Gross profit | 22,871 | 25,547 | 45,139 | 49,867 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative | 7,242 | 8,713 | 15,452 | 17,742 | ||||||||||||
Restructuring and other charges | 396 | 7,667 | 1,372 | 45,405 | ||||||||||||
Asset impairment charges | 10,265 | 9,165 | 10,717 | 25,545 | ||||||||||||
Depreciation, accretion and amortization | 20,720 | 20,021 | 42,406 | 41,980 | ||||||||||||
Total operating expenses | 38,623 | 45,566 | 69,947 | 130,672 | ||||||||||||
Operating loss from continuing operations | (15,752 | ) | (20,019 | ) | (24,808 | ) | (80,805 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Interest income | 124 | 83 | 253 | 96 | ||||||||||||
Interest expense | (22,513 | ) | (13,432 | ) | (39,643 | ) | (26,649 | ) | ||||||||
Non-cash interest expense | (723 | ) | (7,184 | ) | (5,800 | ) | (14,097 | ) | ||||||||
Amortization of debt issuance costs | (1,272 | ) | (1,101 | ) | (2,427 | ) | (2,190 | ) | ||||||||
Write-off of deferred financing fees and loss on extinguishment of debt | (4,842 | ) | — | (4,842 | ) | — | ||||||||||
Other | (35 | ) | (118 | ) | 9 | (40 | ) | |||||||||
Total other expense | (29,261 | ) | (21,752 | ) | (52,450 | ) | (42,880 | ) | ||||||||
Loss from continuing operations before provision for income taxes and cumulative effect of changes in accounting principles | (45,013 | ) | (41,771 | ) | (77,258 | ) | (123,685 | ) | ||||||||
Provision for income taxes | (435 | ) | (480 | ) | (935 | ) | (1,033 | ) | ||||||||
Loss from continuing operations before cumulative effect of changes in accounting principles | (45,448 | ) | (42,251 | ) | (78,193 | ) | (124,718 | ) | ||||||||
Loss from discontinued operations, net of income taxes | (22,134 | ) | (834 | ) | (22,599 | ) | (1,596 | ) | ||||||||
Loss before cumulative effect of changes in accounting principles | (67,582 | ) | (43,085 | ) | (100,792 | ) | (126,314 | ) | ||||||||
Cumulative effect of changes in accounting principles | — | — | (545 | ) | (60,674 | ) | ||||||||||
Net loss | $ | (67,582 | ) | $ | (43,085 | ) | $ | (101,337 | ) | $ | (186,988 | ) | ||||
Basic and diluted loss per common share amounts: | ||||||||||||||||
Loss from continuing operations before cumulative effect of changes in accounting principles | $ | (0.89 | ) | $ | (0.84 | ) | $ | (1.53 | ) | $ | (2.49 | ) | ||||
Loss from discontinued operations | (0.43 | ) | (0.01 | ) | (0.44 | ) | (0.03 | ) | ||||||||
Cumulative effect of changes in accounting principles | — | — | (0.01 | ) | (1.21 | ) | ||||||||||
Net loss per common share | $ | (1.32 | ) | $ | (0.85 | ) | $ | (1.98 | ) | $ | (3.73 | ) | ||||
Weighted average number of common shares | 51,133 | 50,392 | 51,132 | 50,074 | ||||||||||||
SBA COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Restated)
(unaudited) (in thousands)
For the six months ended June 30, | ||||||||
2003 | 2002 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net loss | $ | (101,337 | ) | $ | (186,988 | ) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
Depreciation, accretion and amortization | 42,406 | 41,980 | ||||||
Non-cash restructuring and other charges | 649 | 42,551 | ||||||
Asset impairment charges | 10,717 | 25,545 | ||||||
Non-cash items reported in discontinued operations (primarily depreciation, asset impairment charges and loss on sale of towers) | 25,637 | 8,267 | ||||||
Non-cash compensation expense | 486 | 1,112 | ||||||
Provision for doubtful accounts | 1,325 | 1,645 | ||||||
Amortization of original issue discount and debt issuance costs | 7,504 | 16,287 | ||||||
Interest converted to term loan | 709 | — | ||||||
Write-off of deferred financing fees and extinguishment of debt | 4,842 | — | ||||||
Amortization of deferred gain from derivative | (331 | ) | — | |||||
Cumulative effect of changes in accounting principles | 545 | 60,674 | ||||||
Changes in operating assets and liabilities, net of effect of acquisitions: | ||||||||
Accounts receivable | 8,664 | 7,525 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 3,236 | 406 | ||||||
Prepaid and other current assets | (276 | ) | (3,383 | ) | ||||
Other assets | (3,730 | ) | (2,765 | ) | ||||
Accounts payable | (5,287 | ) | (18,584 | ) | ||||
Accrued expenses | (1,193 | ) | (243 | ) | ||||
Deferred revenue | 433 | 666 | ||||||
Interest payable | 8,557 | 706 | ||||||
Other liabilities | 2,491 | (85 | ) | |||||
Billings in excess of costs and estimated earnings on uncompleted contracts | (481 | ) | (1,947 | ) | ||||
Total adjustments | 106,903 | 180,357 | ||||||
Net cash provided by (used in) operating activities | 5,566 | (6,631 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Capital expenditures | (9,090 | ) | (53,354 | ) | ||||
Acquisitions and related earn-outs | (2,530 | ) | (17,627 | ) | ||||
Proceeds from sale of towers | 142,510 | — | ||||||
Receipt (payment) of restricted cash | (33,168 | ) | 7,500 | |||||
Net cash provided by (used in) investing activities | 97,722 | (63,481 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from employee stock purchase/option plans | 22 | 212 | ||||||
Borrowings under senior credit facility | 225,000 | 98,000 | ||||||
Repayment of senior credit facility and notes payable | (335,049 | ) | (370 | ) | ||||
Payment of financing fees | (7,587 | ) | (65 | ) | ||||
Bank overdraft repayments | — | (10,255 | ) | |||||
Repurchase of 12% senior discount notes | (24,775 | ) | — | |||||
Net cash provided by (used in) financing activities | (142,389 | ) | 87,522 | |||||
Net increase (decrease) in cash and cash equivalents | (39,101 | ) | 17,410 | |||||
CASH AND CASH EQUIVALENTS: | ||||||||
Beginning of period | 61,141 | 13,904 | ||||||
End of period | $ | 22,040 | $ | 31,314 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | 32,267 | $ | 27,459 | ||||
Taxes | $ | 1,164 | $ | 705 | ||||
NON-CASH ACTIVITIES: | ||||||||
Assets acquired in connection with acquisitions | $ | — | $ | 10,396 | ||||
Liabilities assumed in connection with acquisitions | $ | — | $ | (9,000 | ) | |||
Common stock issued in connection with acquisitions | $ | — | $ | (1,396 | ) | |||