SBA[LOGO]
NEWS
FOR IMMEDIATE RELEASE
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SBA COMMUNICATIONS CORPORATION REPORTS
RECORD 4/th/ QUARTER RESULTS
SBA COMMUNICATIONS CORPORATION (NASDAQ: SBAC); BOCA RATON, FLORIDA,
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WEDNESDAY, FEBRUARY 27, 2002
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SBA Communications Corporation ("SBA" or the "Company") announced significant
increases in revenues and EBITDA for the three months ended December 31, 2001,
over the same period in 2000. Total revenues, site development revenue, site
leasing revenue and EBITDA for the three months ended December 31, 2001 were all
quarterly record amounts.
For the three months ended December 31, 2001, total revenues increased 29.1% to
$69.2 million from the fourth quarter of 2000, due to both higher site leasing
revenue and site development revenue. Site leasing revenue increased to $30.3
million for the quarter, an 84.0% increase over the fourth quarter of 2000. Site
development revenue for the quarter increased 4.7% to $38.9 million from the
fourth quarter of 2000. Earnings before interest, taxes, depreciation,
amortization and non-cash compensation charges ("EBITDA") for the quarter were
$18.9 million, an 82.8% increase over the fourth quarter of 2000. Loss per share
was $(.62) for the three months ended December 31, 2001 compared to $(.12) in
the 2000 period. In the fourth quarter the Company built 143 towers and acquired
127 towers, ending the year with 3,734 towers in our portfolio. Based on tenant
leases executed as of December 31, 2001, same tower revenue and cash flow growth
for the trailing twelve months on the 2,390 towers owned as of December 31, 2000
was 24% and 29%, respectively.
"We are very pleased with our operational execution and financial results,"
commented Jeffrey A. Stoops, SBA's President and Chief Executive Officer. "Over
the last couple of years we have had the opportunity to operate the company
under both very good and very challenging business conditions, and in all
conditions we have enjoyed strong revenue and EBITDA growth. With each passing
quarter, we believe the validity of our business model becomes more evident. In
the fourth quarter we continued to execute well. We delivered strong total
revenue growth, even stronger EBITDA growth, expense control, site leasing and
EBITDA margin expansion and solid lease-up of our towers, notwithstanding what
continues to be a very challenging business environment. We expect these trends
will continue.
"Our wireless carrier customers continue to have a healthy demand for our tower
space and services. We believe that demand will continue, even in the current
environment, at a pace that will allow us to achieve or exceed our business plan
and attain positive free cash flow in early 2003. With our recently announced
reduction in new tower development and corresponding cash
savings, we are confident that our liquidity and capital resources are more than
sufficient to support our business plan."
A conference call has been scheduled for Thursday, February 28, 2002 at 10:00 AM
EST to discuss fourth quarter and full year 2001 results and the Company's first
quarter 2002 outlook, including the anticipated charge of $30 million to $65
million announced on February 6, 2002. The toll free dial-in number is (888)
423-3280. The name of the conference call is "SBA 4th Quarter and Full Year 2001
Earnings." A replay will be available from February 28, 2002 at 5:00 PM to March
14, 2002 at 11:59 PM. The replay number is (800) 475-6701. The access code is
626362. You may also listen to this conference call via a webcast that can be
accessed via the Internet at: www.sbasite.com.
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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 15,000
antenna sites in the United States.
For additional information, 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 statements
regarding (i) the Company's future financial performance, including its
expectations regarding its revenues, EBITDA, margins, expenses, lease-up,
liquidity and capital resources positions and future requirements, (ii) the
validity of its business model, (iii) the Company's ability to be free cash flow
positive by 2003, and (iv) the continued healthy demand for the Company's tower
space and services. 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 April 2, 2001. 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 statements regarding the continued healthy demand
for the Company's tower space and services, these factors include, but are not
limited to, (1) the business climate for the wireless communications industry in
general and the wireless communications infrastructure providers in particular;
(2) the ability and willingness of wireless service providers to maintain or
increase their capital expenditures; and (3) the continued dependence on towers
and outsourced site development services by the wireless communications
industry. With respect to the Company's future financial performance, its
ability to be free cash flow positive by 2003 and its expectation that the
Company will have sufficient liquidity and capital resources to support its
business plan through 2002, such factors include the three previously mentioned
factors and other factors including, but not limited to, (1) the Company's
ability to secure as many site leasing tenants as planned at anticipated lease
rates; (2) the Company's ability to expand our site leasing business; (3) the
Company's ability to complete construction of new towers that it is currently
obligated to construct on a timely and cost-efficient basis, including our
ability to successfully address zoning issues, carrier design changes, changing
local market conditions and the impact of adverse weather conditions; (4) the
Company's ability to retain current lessees on newly acquired towers; (5) the
Company's ability to realize economies of scale for acquired towers; (6) the
Company's ability to secure and deliver anticipated services business at
contemplated margins (7) the Company's ability to continue to comply with
covenants and the terms of its senior secured facility, and (8) the amount of
the first quarter charge. The Company undertakes no obligation to update
forward-looking statements to reflect events or circumstances after the date
hereof.
SUMMARY HISTORICAL FINANCIAL AND OTHER DATA
(In thousands except per share and tower data)
For the three months ended For the year ended
December 31, December 31,
Operating Data: 2001 2000 2001 2000
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Revenue:
Site development revenue $ 38,863 $ 37,116 $ 139,735 $ 115,892
Site leasing revenue 30,287 16,463 103,159 52,014
Total revenues 69,150 53,579 242,894 167,906
Cost of revenues:
Cost of site development revenue 30,477 28,839 107,932 88,892
Cost of site leasing revenue 10,598 6,177 36,722 19,502
Total cost of revenues 41,075 35,016 144,654 108,394
Gross Profit 28,075 18,563 98,240 59,512
Developmental charge - - 24,399 -
Selling, general and administrative 9,933 8,305 41,342 27,799
Depreciation and amortization 26,945 10,552 80,465 34,831
Total operating expenses 36,878 18,857 146,206 62,630
Operating loss (8,803) (294) (47,966) (3,118)
Other income (expense):
Interest income 274 1,376 7,059 6,252
Interest expense (12,973) (184) (47,709) (4,878)
Non-cash amortization of original issue
discount and debt issuance costs (7,860) (5,991) (29,730) (26,006)
Other 66 36 (76) 68
Total other expense (20,493) (4,763) (70,456) (24,564)
Loss before income taxes and extraordinary item (29,296) (5,058) (118,422) (27,682)
Provision for income taxes (414) (321) (1,654) (1,233)
Net loss before extraordinary item (29,710) (5,379) (120,076) (28,915)
Early extingushment of debt
- - (5,069) -
Net loss to common shareholders $ (29,710) $ (5,379) $ (125,145) $ (28,915)
Basic and diluted loss per common $ (0.62) $ (0.12) $ (2.64) $ (0.70)
share
Weighted average number of shares 48,222 46,108 47,437 41,156
Other Data:
Earnings before interest, taxes, depreciation,
amortization, non-cash compensation
charges, and developmental charge $ 18,935 $ 10,360 $ 60,224 $ 32,026
Annualized tower cash flow $ 78,756 $ 41,144
As of As of
December 31, December 31,
2001 2000
Balance Sheet Data:
Cash and cash equivalents $ 13,904 $ 14,980
Total assets $ 1,429,011 $ 948,818
Total debt $ 845,453 $ 284,273
Common shareholders' equity $ 450,644 $ 538,160
Annualized Tenants Annual
Leasing on Owned Revenue /
Growth in Leasing: Revenue /(1)/ Towers Towers Tower
September 30, 2001 reported $ 110,352 3,464 7,125 $ 31,857
From added towers /(2)/ 5,737 270 378
Organic /(3)/ 6,212 244
Terminations (662) (54)
December 31, 2001 $ 121,639 3,734 7,693 $ 32,576
(1) Run-rate leasing revenues as of end of quarter; reported on an operational
basis, some of which has not yet begun to be recorded as revenue for
financial statement purposes; excludes lease-sublease revenues of
approximately $5 million per year.
(2) Reflects revenues and tenants on acquired sites at time of acquisition as
well as first tenants on new builds when contracted for upon completion
date.
(3) Includes all other leasing revenue growth beyond that reflected from added
towers, including first-time tenants and all increased revenues from
existing tenants, such as rent escalators, amendments, microwave,
generators, etc.