![]() SBA Communications Corporation SBA Communications Corporation 2007/2008 Review 2007/2008 Review Exhibit 99.1 |
![]() SBA Communications Corporation 2 …………………………..……………………………………………………………………………………………………………. SEC Disclosures SEC Disclosures Statements made in the course of this presentation that state the Company’s or management’s intentions, beliefs, expectations or predictions of the future are forward-looking statements. It is important to note that the Company’s actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward- looking statements is contained from time to time in the Company’s SEC filings, including but not limited to the Company’s reports on Form 10-K and Form 10-Q. Our comments will include non-GAAP financial measures, as defined in Regulation G. The reconciliations of these non-GAAP financial measures to their most comparable GAAP financial measures and other information required by Regulation G have been posted on our website – www.sbasite.com. Copies of which may be obtained by contacting the Company or the SEC. |
![]() SBA Communications Corporation 3 …………………………..……………………………………………………………………………………………………………. 2007 and Q1 2008 2007 and Q1 2008 In Review In Review |
![]() SBA Communications Corporation 4 …………………………..……………………………………………………………………………………………………………. Our Strategy Our Strategy |
![]() SBA Communications Corporation 5 …………………………..……………………………………………………………………………………………………………. Recent Operating Highlights Recent Operating Highlights Larger portfolio: 6369 towers at April 30, 2008 579 towers under contract to purchase (1) Very strong growth metrics (Q1 2008 vs. Q1 2007) Site leasing tower revenue growth of 16.8% Tower cash flow growth of 21.4% Adjusted EBITDA growth of 25.4% Equity free cash flow per share growth of 52.2% Rapid deleveraging March 31, 2008 Net Total Debt / Annualized Adjusted EBITDA of 7.3x; down from 8.0x at December 31, 2007 (1) As of April 30, 2008, including an estimated 444 towers to be acquired from TowerCo LLC. |
![]() SBA Communications Corporation 6 …………………………..……………………………………………………………………………………………………………. $550 Million Recent Debt Offering $550 Million Recent Debt Offering SBA Communications Corporation 1.875% Convertible Notes due May 2013 Conversion price $41.46 effectively increased to $67.37 through hedges/warrants Use of Proceeds ($536.8 million net proceeds): $81.5 million for hedges/warrants $120.0 million for stock repurchases (3.473 million shares repurchased @ $34.55) $20.0 million to repay senior credit facility $200.0 million to repay senior credit facility borrowing for TowerCo acquisition $115.3 for portfolio expansion and general corporate purposes Immediately accretive to equity free cash flow per share Improves liquidity Improves refinancing prospects in 2010 |
![]() SBA Communications Corporation 7 …………………………..……………………………………………………………………………………………………………. Pro Forma Capitalization Pro Forma Capitalization (1) (1) (1) Reflects issuance of $550 million of 1.875% convertible notes and net proceeds there from; excludes pro-forma impact of TowerCo acquisition. (2) Q08 Adjusted EBITDA of $61.5 million. (3) Subsequent to March 31, 2008, $20.0 million of the Senior Credit Facility was repaid with cash on hand. ($ in millions) 3/31/08 Actual Pro forma Adjustments Pro forma as Adjusted Multiple of LQA Adjusted EBITDA (2) Cash and restricted cash $ 162.7 $ 295.30 (3) $ 458.0 1st tranche CMBS 405.0 405.0 1.6x 2 nd tranche CMBS 1,150.0 1,150.0 4.7x Total CMBS $1,555.0 $1,555.0 6.3x Senior credit facility 40.0 (40.0) (3) 0.0 Total secured debt $1,595.0 $1,555.0 6.3x Net secured debt $1,432.3 $1,097.0 4.5x 0.375% convertible notes due 2010 $ 350.0 $ 350.0 1.4x New convertible notes 0.0 550.0 550.0 2.2x Total debt $1,945.0 $2,455.0 10.0x Net total debt $1,782.3 $1,997.0 8.1x |
![]() SBA Communications Corporation 8 …………………………..……………………………………………………………………………………………………………. |
![]() SBA Communications Corporation 9 …………………………..……………………………………………………………………………………………………………. Multi-Year Visibility on Multi-Year Visibility on Carrier Activity Carrier Activity AWS 66 Auction Winners – new market launches into 2009 AT&T - 3G overlay and network improvement to continue into 2009; 4G through 700 MHZ Clearwire and Sprint 4G – multi-year network expansion starting late 2008 T-Mobile – 3G overlay and network expansion to continue into 2009 Verizon – continuous network investment expected; 4G through 700 MHZ 700 MHZ Auction Winners – material activity expected 2009 to 2012 |
![]() SBA Communications Corporation 10 …………………………..……………………………………………………………………………………………………………. Recent Developments Remain Recent Developments Remain Very Positive Very Positive Data – wireless data usage steadily increasing “Open Access” – open access networks will highlight network quality issues 700 MHZ Auction - additional spectrum to be deployed on an accelerated basis; 4G/LTE to require new networks New “Unlimited” Plans – will increase demand on network capacity Emerging Carriers – business plans of Leap, Metro, Clearwire and Sprint WiMax all require extensive network builds “Quadruple Play” Pressure – cable and satellite do not have effective wireless offerings; recent major investment announced by cable in Sprint/Clearwire Exploding Wireless Ecosystem – Google, Apple, Yahoo, Intel and others all devoting substantial resources to wireless |
![]() SBA Communications Corporation 11 …………………………..……………………………………………………………………………………………………………. Highly Attractive Asset Portfolio Highly Attractive Asset Portfolio Portfolio concentrated in the United States Nationwide, strategic footprint with presence in key markets Substantial majority built by SBA or other tower developers Towers built or acquired with multi-tenant focus High average capacity of 4 – 5 telephony tenants per tower Current use at 2.0 telephony tenants and 2.5 actual tenants per tower > 77% tower cash flow margins > 75% lattice or guyed towers Maintenance capex – less than $1,000 per tower per year Low monthly operating expense per tower |
![]() SBA Communications Corporation 12 …………………………..……………………………………………………………………………………………………………. Solid Tenant Growth Solid Tenant Growth Solid Tenant Growth 13,103 13,417 13,602 13,866 14,212 14,781 15,429 15,726 $1,675 $1,705 $1,728 $1,752 $1,767 $1,783 $1,807 $1,828 $1,600 $1,625 $1,650 $1,675 $1,700 $1,725 $1,750 $1,775 $1,800 $1,825 $1,850 $1,875 $1,900 $1,925 $1,950 $1,975 $2,000 12,000 12,500 13,000 13,500 14,000 14,500 15,000 15,500 16,000 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Number of Leases Average Cash Rent Per Month |
![]() SBA Communications Corporation 13 …………………………..……………………………………………………………………………………………………………. $161.3 $256.2 $321.8 $380.0 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 2005 2006(1) 2007 2008E(2) Strong Leasing Revenue Growth Strong Leasing Revenue Growth Strong Leasing Revenue Growth ($ in millions) (1) Includes $63.2 million of Leasing Revenue associated with the AAT acquisition. (2) Based on the midpoint of Site Leasing Revenue guidance given April 30, 2008. |
![]() SBA Communications Corporation 14 …………………………..……………………………………………………………………………………………………………. $117.0 $186.5 $236.2 $289.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 2005 2006(1) 2007 2008E(2) Strong Tower Cash Flow Growth Strong Tower Cash Flow Growth Strong Tower Cash Flow Growth ($ in millions) (1) Includes $27.0 million of Tower Cash Flow associated with the AAT acquisition. (2) Based on the midpoint of Tower Cash Flow guidance given April 30, 2008. |
![]() SBA Communications Corporation 15 …………………………..……………………………………………………………………………………………………………. |
![]() SBA Communications Corporation 16 …………………………..……………………………………………………………………………………………………………. Our Portfolio Growth Focus Our Portfolio Growth Focus 2007 Portfolio Increase - 12.0% - added 669 towers in 2007 Built 61 towers; acquired the rest 2008 Portfolio Increase – target was 5 to 10% increase – already at 11.25% owned or under contract Thru April 30, 2008 Acquired 128 towers; 579 towers under contract Built – 24 towers; goal is 80 to 100 for 2008 Aggressively buying land or extending leases under our towers Now own or control for at least 50 years land under 25% of our portfolio |
![]() SBA Communications Corporation 17 …………………………..……………………………………………………………………………………………………………. Strong Portfolio Growth Strong Portfolio Growth Results Results 3,304 5,551 6,220 6,948 2,500 3,500 4,500 5,500 6,500 7,500 2005 2006(1) 2007 2008YTD-E(2) (1) Includes 1,850 towers acquired in the AAT acquisition. (2) Includes 579 towers under contract to purchase as of April 30, 2008 (including an estimated 444 towers to be acquired from TowerCo LLC.) |
![]() SBA Communications Corporation 18 …………………………..……………………………………………………………………………………………………………. High Quality National Footprint High Quality National Footprint 6,900+ Towers in the U.S. and Puerto Rico (1) SBA Towers (1) Includes 579 towers under contract to purchase as of April 30, 2008. |
![]() SBA Communications Corporation 19 …………………………..……………………………………………………………………………………………………………. |
![]() SBA Communications Corporation 20 …………………………..……………………………………………………………………………………………………………. Appropriate Leverage Appropriate Leverage Maintain long-term leverage within target range Maintain target net cash interest coverage ratio Considerations Interest rates Organic growth prospects Refinancing obligations Mix of secured and unsecured debt Mix of markets (CMBS, convertible and bank markets) |
![]() SBA Communications Corporation 21 …………………………..……………………………………………………………………………………………………………. 9.0x 7.7x 7.8x 8.4x 8.1x 8.1x 8.0x 7.3x 5x 6x 7x 8x 9x 10x 6/30/2006 9/30/2006 12/31/2006 3/31/2007 6/30/2007 9/30/2007 12/31/2007 3/31/2008 Controlled Net Debt/Annualized Controlled Net Debt/Annualized Adjusted EBITDA Ratio Adjusted EBITDA Ratio |
![]() SBA Communications Corporation 22 …………………………..……………………………………………………………………………………………………………. Net Cash Interest Coverage Ratio Net Cash Interest Coverage Ratio Note: Includes accretion on zero coupon notes; excludes amortization of deferred financing fees. } |
![]() SBA Communications Corporation 23 …………………………..……………………………………………………………………………………………………………. |
![]() SBA Communications Corporation 24 …………………………..……………………………………………………………………………………………………………. $95.3 $161.8 $209.4 $262.0 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 55.0% 60.0% $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 2005 2006 2007 2008E(1) ($ in millions) Substantial Growth in Adjusted Substantial Growth in Adjusted EBITDA & Margin EBITDA & Margin (1) Based on the midpoint of Total Revenue and Adjusted EBITDA guidance given April 30, 2008. |
![]() SBA Communications Corporation 25 …………………………..……………………………………………………………………………………………………………. ($ in millions) Tremendous Equity Free Tremendous Equity Free Cash Flow Growth Cash Flow Growth (1) Based on the midpoint of Equity Free Cash Flow guidance given April 30, 2008. $24.4 $67.8 $117.2 $158.5 $10.0 $30.0 $50.0 $70.0 $90.0 $110.0 $130.0 $150.0 $170.0 $190.0 2005 2006 2007 2008E(1) |
![]() SBA Communications Corporation 26 …………………………..……………………………………………………………………………………………………………. Strong Equity Free Cash Flow Strong Equity Free Cash Flow Per Share Growth Per Share Growth |
![]() SBA Communications Corporation 27 …………………………..……………………………………………………………………………………………………………. Shareholder Rewards Shareholder Rewards Peer Group Companies AMERICAN TOWER CORP CROWN CASTLE INTL CORP GLOBAL SIGNAL INC (Included from 6/3/2004 - 1/12/2007. Acquired by Crown Castle Intl 1/16/2007) SPECTRASITE INC (Included 2/14/2003 - 8/5/2005. Acquired by American Tower 8/8/2005) |
![]() SBA Communications Corporation 28 Questions Questions |