SBAC - Earnings call transcript Q2 2020 | SBA Communications Corporation

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Operator

Ladies and gentlemen, thank you for standing by and welcome to SBA's Second Quarter.

During today's conference call, phone lines are in a listen-only.

We will have an opportunity for question-and-answer session later on. [Operator Instructions] As a reminder, today's conference will be recorded. At this time, I'd like to turn the conference over to our host, Mark DeRussy, the Vice President of Finance. ahead. go Please

Mark DeRussy

evening SBA's Good you joining for Thanks quarter and XXXX for second earnings us Nick. thank conference call.

today and Chief Here Chief me are our Stoops, with President Executive Officer; Officer. Brendan Financial our Cavanagh, Jeff and

differ risks Some future in is including, our of we our from guidance XXXX SEC but call today's results In material any forward-looking, and to, filings, the beyond. discuss that limited press this our we'll for information to may on cause not release expectations. detail and

Our as have today, we Xrd, no August obligation statement make. statements forward-looking of are and to we update may any

supplemental addition, metrics. data located is non-GAAP the The the include financial that, package, regarding Relations landing comments and on to operating turn page now of with our call key information other And other be over financial In reconciliation Brendan. can our I'll these website. which measures our will Investor of items and in found

Brendan Cavanagh

Good continued leasing performance Thanks of due Mark. another GAAP site second to were across for second $XXX.X $XXX.X COVID-XX. cash and site our million. quarter for hardship quarter and million all markets the Total were solid many the during revenues uncertainty leasing revenues evening. SBA produced notwithstanding

of remain $XX.X the which growth X.X% period contract placed X.X% Metro/Leap exchange a was operational basis, to recurring activity, quarter, with X.X%. ago same-tower year second revenue X.X% second and primarily of and XXXX, restart pace second same-tower to was the cash was our customers on Foreign revenues net is terminations. headwind X.X% growth of XXXX. in quarter the a quarter were, impact last on for They quarter leasing T-Mobile a than new the measured XXXX, over slower a for year-over-year X% Domestic Domestic million tailwind churn, was the leasing the second revenue of the X.X% calculated with quarter. due again a of recurring under constant on and anticipated the comparisons The when On on Clearwire during of cash growth merger a the second of was revenue quarter gross million of of churn. of by while than basis, including over closing which our leasing quarter, related impacting to new were basis, rate the including was year bookings a $X.X gross domestic a Sprint, currency similar compared and second estimates basis basis. significant by revenues fourth internal however, on quarter following Same-tower representing negatively we to first quarter to were steady. other their slower a the

increase T-Mobile However, seen the half meaningful as the have in begun that a domestic we of quarter, to application into expect have and activity from bookings drive in second XXXX. XXXX increased we third we organic

The leases. during large coming new signed of to cap activity signed carriers rural During quarter, three domestic amendments again leasing the revenue was newly our amendment with bookings from XX% big and the majority up XX% second of activity XX% domestic from domestic to the providers. revenue funded represented provisional broadband total contribution leasing some again leasing domestic nice We a up have incremental quarter. from

bookings of X.X%, growth X.X% half gross cash a to of our was nicely, new grow during As started basis. second the the steadily I year. on Internationally, on revenue constant currency application has pace ago, portends churn leasing mentioned or X.X% including a of increasing moment backlog basis, a for which a domestic same-tower well

reductions to number overall of in markets. was customers but periods prior see to spending COVID-related our continue a a We internationally, by slower due leasing in activity little

XX.X% was lease-up. Brazil Gross largest in the on a This basis. again international to contributor organic currency was constant quarter, Brazil same-tower growth

from quarter, dollars. Brazil U.S. dollar consolidated The revenue, from revenue Tower the majority quarter of and site was X% During was cash representing leasing second second non-U.S. XX.X% $XXX.X in revenues million. denominated cash cash site quarter denominated was with for leasing during the Brazil, leasing of cash of revenue pass-through site excluding all the revenues expenses. XX.X% of flow

second Our $XXX.X industry pass-through XX.X%, was cash cash leading domestic in impact million. of excluding in leading flow margin margin International reimbursable and XX.X% Adjusted was quarter. EBITDA flow XX.X% was industry the tower tower quarter the was the expenses. also

leading basis margin adjusted up from XX.X% was year the EBITDA industry XXX in quarter, Our prior period. points the

was our EBITDA tower our XX% revenues was of business leasing adjusted margin Excluding from expenses, impact of in EBITDA pass-through total Approximately the the quarter. XX.X%. to adjusted attributable second

EBITDA tower constant highs over the currency quarter second and adjusted record an share a basis. quarter AFFO increase second was again million. $X.XX, for margin AFFO X.X% in increase cash flow of the per both XX.X% margin $XXX.X were and of was a on second XXXX SBA. Our quarter

existing on portfolio, aggregate and sites moment. located edge we and end, center we further agreed one our continue we at data edge majority invest XX in detail the We $XX.X provision purchased XX Florida $XX second XX believe, of of center center we is purchase $XX.X aggregate data in our million of end expand our million. critical price data offerings data total an have building business quarter. the discuss and will develop have these the our we to to sites anticipate and acquiring to knowledge center sites for for million Jeff Jacksonville, to The price our to a to year. of located for XXX be by closing an quarter, additional the Subsequent sites communication a in strategy ultimately of as will to quarter During in in and data will, continued communication sites. of allow continue the centers a the maximizing communication of expand and us sites

both provides our which strategic We the sites, and also benefits. lands in financial invest continue to under

and rest our to the aggregate the end options in buy under And this our by slight our our providing contributions represented years remaining lease full rates expected modestly update metrics. in towers. ground of ground is the increased During against million the full-year our increases life XX due to included At renewal for year more in FX extend to outlook under the currency of Outperformance the XX% easements contributed for approximately spent collections years. an we or owned to we quarter, the of afternoon, quarter, offset average and year than land of exchange terms. acquisitions basis quarter to release XXXX have $XX.X from our forecasted assumptions XX of press improvements revenue including approximately increase we underneath and all partially for earnings foreign the our control, outlook. an key balance leases, than second our lower In leasing outlook. activity the cash land Increases anticipated better new and controlled

As mentioned delayed year we from to earlier, XX revenue XXX to previously days, the new days organic this new slower which of start experienced ultimately timing revenue a slightly bookings had by than expected, we lease-up. growth

a provide our of network increasing two timing and and balance who to of obligations this However, sheet. position the bookings an XXXX. the backlog, on each significant deployment turn application next over to and given recent just customer now liquidity I'll we delay timing customers, expect growth into that, of be our some update things anticipate conversations We delay. our in quarters will in our domestic Mark,

Mark DeRussy

debt We the Brendan. Thanks billion total debt. with quarter billion $XX.X of ended second of and net $XX.X

a one-tenth EBITDA X.X of net times, Our turn since is which ratio debt leverage down to annualized was last quarter. adjusted

interest fixed XX.X% they their of February Our The entire $X repay rate revolving year. add-on issuance a of similar issue, was ratio expense were outstanding net in and billion of May second of value issuance X.XXX% cash our cash an of credit for XXth, the X.X new a senior corporate maturity additional of an balance as to notes purposes. to coverage completed net under $XXX unsecured February and On times. original quarter general net date EBITDA to XXXX. we coupon this interest our XXth, issued par notes million at used facility and issued were to this These of proceeds have interest adjusted

amount interest XXXX of balance have $XXX -- XXth, Xth, Secured and which Securities, million anticipated through X.XXX% outstanding $XXX repayment January million Tower XXth, issued January X.XXX% trust, $X.XX of tower blended of senior a principal Secured were Tower weighted -- have weighted billion -- of under Securities, Revenue and date rate used aggregate rate weighted date end, X.X%, X.XXX% Tower the today, we for offering to average Revenue of on Subsequent a securities repayment The the of a revolver. proceeds of an July purposes. average we have repay the anticipated The proceeds the quarter an anticipated interest our As approximately of corporate our is and entire years. date tower forma Net is four no weighted XXXX. which I'm outstanding have average XXXX-XC net this interest through billion of years. and and Securities, of debt being $X.X aggregate life general X.X used to the the with our remaining half XXXX-XC repayment from a maturity pro-rated sorry, pro

billion any reduction are million shares as the at and did stock authorization XXXX, X.X%. a company's million XXX.X remaining compared our of today, second XXth, $XXX.X outstanding June During XXXX The shares plan. quarter, million repurchase we repurchase XXX.X of XXth, $X have of our not we stock at June of common repurchase to under

of quarter, of $XX Board XXth, turn $X.XXX third September In shareholders XXXX. $X.XXX our we August XXnd, And declared cash Jeff. that, the call addition, a on business to paid share. of over Directors share now With declared of the per million announce per I'll dividend to close during as an or on equivalent dividend today, the of that we XXXX quarter of second payable and record

Jeffrey Stoops

everyone. evening, good and Mark Thanks

well one both revenue, adjusted We The second AFFO and again ahead produced for solid was another financially TCF, were operationally. our leasing and that EBITDA, expectations. quarter of SBA,

the on year. history share high the and second our adjusted Our over margins highest were company's a currency XX.X% constant per and as of our AFFO again once basis in TCF a last quarter EBITDA bar grew

remains business and healthy strong. Our

we operate business, we fight the While so our to in impacts in first three recognize be that reported When we we markets results months global appreciate our pandemic. the still deep did mission-critical many the time. this the are the expect an quarter continuing greatly COVID-XX virus of against which essential in ago, at of people not first position suffering we from many

largely to our health been for top relatively open a the extremely being challenging I'm how remote and have While of our to the most last of performance global performance, positive our suppliers, okay. thankful members test team by other dedication have workforce. to a the We've of offices percentage team adjust members only figured our all SBA, of team we are the customers, that during and level our to and these and with four our At our members had they're be very members half and for I'm of virus serving months the and SBA customers of small times, team communities. our family. priority we happy continues safety essential proud members, and a doing out

this and acted obligations. they turn place merger workforces, development we the attention organization We don't and now continue we activity we the synergies. T-Mobile quickly, decisively, with has anticipated on and at and environment is on have to to our a few than thoughtfully very ago, with from new needs little have they T-Mobile as than of first initially on focus months fashion, and Boost level In a integrating primarily learned bookings as how deal this Brendan to the the virus earlier, Sprint. U.S., In want level a be and to do the from Things in T-Mobile Dish, due full we quarter good, COVID-related, really you during had to their results. had was the delivering expected domestic but operate lower operational continue after definitely to so. operational to safely impact have And this similar to the the to start typical network slower seemed closing see in quarter, but or will closing choosing heard their of

XXXX. increase was of started, a would will, during us increases Although these steadily a our by in or have we activity, increasing material application And so anticipated leasing backlogs now half revenue timing confidence increased drive when domestic we thought bookings growth the second quarter providing organic in our off see and periods of bookings the initially increased following the course, to bookings. on

either believe to we in of macro because true required excited majority networks or investment XXX order their meeting partner we a a gigahertz lot coverage the our be expect in and about meet to their capital including offer T-Mobile to them are We phase valued has the upgrading with XG begun of spectrum X.X sites to that their objectives. necessary goals; have prospects XG we service. now in just megahertz do build-out increased to

many projects have networks the we at in many will them. recently In for XG auction others particularly, the low-band believe addition their C-band active to and and major this of AT&T component AT&T other macro domestic future expect new be in to on and key T-Mobile, significant ahead XG or be in require active launched of be markets auction AT&T number to we will a of equipment current and Verizon, customers sites. CBRS a Verizon which our service year, existing in spectrum and all and process true both scheduled later of

discussions our domestic over of well setting they in up be and Dish busy services anticipate actively multi-year for the have and markets. our next very patterns period. XG leasing we Internationally, will fact environment a very most solid several nationwide been addition, The a out saw we with constructive demand network a in In are years. building that for engaged

be do the believe in South there greater crisis. will in COVID-XX the American U.S. we our Latin African However, than markets impact and from

from government-required have of their economies Some customers payment challenge larger international and our customers. faced deferrals even

expenditures announcements revenue revenue occur on overall recent total carrier sites before the can Brazil X% and our submitted Oi's area the of cash to economic transaction expansion and of those largest the with each view split network in watching considerably. geographic our of assets need. reasons their while much pandemic services mobile reductions temporary. these Wireless for three We capital their total that with investment, customer, international wireless bid than wireless In customers each would Oi reduced on consortium leasing would length the up any the conditions less closely expected the mobile's have interest As markets. is primary anticipated although although from a believe any mobile always we're in most cash be regulatory exposure in carriers spending overlap current have assets. assets, our our wireless these and expressed our severity to improve, leasing divest assess recent represents they markets. capital other and of representing of overall source Oi three XX.X% Oi, regarding the of overlap some result, to consummated. market, less will of our we overlap broadband carrier's transaction present Brazil, of portfolio-wide needs is And Telefonica Brazil as revenue. X% total based international cash leasing Oi's in plans carrier as almost A increase greatest carriers on the largest their as market acquiring these much of revenue, be likely largest

also Our leases years. non-cancellable Oi of term have eight remaining average mobile an

by in We be to from will stronger carriers on major quality. to believe the shift Brazil continue basis our just a of prospects carriers long-term network competing four bolstered three

We and growth step resolution future increased Brazil will wireless improved be carrier in toward of an Oi's cycle health. expect positive a the

over investments. internationally other including towers, macro in investing favor to continue We types of

growth at we returns At investments cash still managing benefits generating mature end enjoyed versus the with most ahead. the we proven and more tower leading attractive for faster of margins of risk our growth, higher feel the capital well the Over and above we opportunities second investments international much returns, of very cost flow the international quarter, industry years, have are targeted adept of international our investment.

very pleased. We are

with In other technology. leveraging addition to core streams, to have strategic in revenue opportunities customers, focus pursue investing strengthening macro create towers, new we accessing sites value to continued our those on and around assets, a large

hubs range number We're line this our parties knowledge. a a of tower area. approximately in interconnection discussions data us allow of about edge and interested center tower X,XXX capabilities property. growth in we excited We access data to we JaxNAP of locations more business an data and at and operational deeper focused centers assets co-location and compute our secure to proposition sharing year, data offer to we edge that or added on for expanding power all of will center acquired investments the using foot the we and centers in in data JaxNAP interconnection short, Edge, connectivity for highly a edge regional pursuing or a data our first can business, recently Point, have XXX,XXX-square data and local of megawatt latency an Jacksonville's and in our called companies space, of Access we edge provide Foxborough, to second co-location to private U.S. Jacksonville, services JaxNAP as we our center SBA this sub-sea will and located with options for networks. Chicago, tower data low and variety order believe act distributed center, intermediate wireless with support Massachusetts fiber are center just tower data value edge edge is fiber. develop These potential provide customers, including to larger customers larger situate to computing providing in In sites sites the further providers, through is tower Network West One accessing areas with have we aggregation value-added metro and deployed infrastructure network the also as capabilities will currently for enhance centers centralized existing potential where cable we Florida. XX data in about points the have with over are site to telecommunications made this connectivity. for for storage. facility a are center our pre-qualified XX connectivity Last increased center where internet

As of we've to conversations we're said to come. product needs to ever Based be a number XG will having, many increasing on offering happen develop. the optimistic times, however, for material for years real we this in this ecosystem SBA, new are that the

to we have the favorable We our conditions our cost higher including currently fully July, our of capital extend debt and fixed couple undrawn $X.XX to have revolver. available of months reduce price XXXX maturities than issued to and billion in history. $XXX last at history, sheet, seize weighted we average debt securities X.XX%, able our now lowest liquidity were in over debt market X.X-year our of no the balance Moving of our maturities. on time market, the of $X.XX billion including fixed any million rate paper at In we securitization in until

Our took our to a a some level our we third were critical the was of third at sheet stock times, today in comfortable of not get with we targeting quarter strategy. level strength because and quarter. it, dividend repurchases advantage very a last around any XXth for repurchase We year. above our the of the of announced flexibility did remain of continue XX% value us quarter share while to repurchases, be quarter; dividend in didn't balance creation leverage volatility June the I'm comfortably We We stock but first part second shares provides dividend. X.X to our with being support still opportunities investment of opportunistic the our and able

low quarter at our history of differentiated leverage of assets remains exclusive continue SBA's of customers members you, our peers again a investing our above adept truly was equity throughout cost It team challenging of us a to us our time. success. opportunity another use to want the our our however, thank has from percentage capital. their I to and returns solid providing multi-tenant for well relatively AFFO, dividend, Our producing in our very in contributions holders. benefit clear to the

with look stay second better and for to questions. to expect serving And are even we customers our we that, communities and forward ready a our the busy, solid half very We year. of Nick, and

Operator

sorry, I'm Instructions] Thank to Raymond James. you. go with -- Please go first ahead. Rick Prentiss [Operator We'll

Richard Prentiss

Hi. Hey, guys.

Mark DeRussy

Rick. Hey,

Richard Prentiss

other waterfall of employees "from million and think your of and questions, the mentioned that are of the increase or updated chart. it from other"? you making these collections in times the the through difficult A in was the revenue guidance. you think hear was couple some first, I $X families what to the Glad was category that, okay. Brendan, guidance on U.S. Was I increase

Brendan Cavanagh

fees Yes, a some some Rick. some things. and That's a higher back-filling received even variety amortization or the structural out-of-period stuff. miscellaneous little It includes things of that higher holdover like on we basis cash bit augmentation, --

lot quarter for of outperformance second was in that the the a expected of and a that So, bit Rick? year. of the outperformance little balance is

Richard Prentiss

can hear me okay? you Hey,

Mark DeRussy

Yes.

Brendan Cavanagh

can. we now Yes,

Richard Prentiss

I Sorry some was about on quarter your give on that. your I Do giving what quarter is call. on for you still guidance wondering know expect third thought to XXXX. companies XXXX call? fourth

Jeffrey Stoops

will the We continue same schedule.

Richard Prentiss

think the to we T-Mobile, glad Okay. new And up. when of hear picking is activity

over As decommissioning for a front, their on the time, paid concept, you think think the the what paid integration? on Sprint far about preference decommissioning paid to would the we And how do their do being schedule? getting as being preference into Sprint current how thinks you be resolve T-Mobile have about as up potential

Jeffrey Stoops

the one there thought That the far middle. maximize-out-the-returns or our NPV We've will shareholders. I time. too spread There two it to had of or how something be into don't go. things get interesting. two approach a among there And approach and is is evenly schools in or are that want It's over maximize perhaps the out -- of will the the

to do mean play is be the which be In picture, big things XG. looking best race the they're all mix terms a financial I will of guys. to need to smart for that results, that for financial certainty, really the They're speed they of results and ubiquitous the T-Mobile,

Richard Prentiss

or as far side, as need you or you Any talks are you to more getting looking XG engaged. actively having about mentioned side as guys occur? becoming you to forward on just them lease ramp Okay. the meaningful think a And when obviously the are Dish efforts what for gating Dish? to your with factors they Dish the funding in place looking Do up from

Jeffrey Stoops

here are them are we for We worked to We've ready for with they're when and customer ready they and good go, go ready years a them. They're go now. say for Dish. to very to

Richard Prentiss

well good. Thanks. these very stay I times. again, difficult guys in Okay, Well, hope you

Jeffrey Stoops

Thanks Rick.

Operator

Levi have a from question we Batya with UBS. Next,

Your line is now open.

Batya Levi

T-Mobile thank activity, on would exit LatAm. growth? international about Do bit, a just you. maybe the Great, an you? is A -- think Do Thank year, And question will next existing the especially the you we lowered activity in rooftops you little How doing generally, there you you. more or but upside impact a that slower international for that a the build-out we current of how guidance they're X.X in replacing and a X.XXX start that's is when commentary can slowdown at year's And activity, the mentioned you towers? T-Mobile. follow-up as how slowdown year? on accelerating reconcile the just you there you think equipments? think And of that, they're saw the of growth them from function on our next

Jeffrey Stoops

all that I applications we're commentary what and now think backlogs. Well, in inconsistent increasing terms seeing don't is of at with

say consistent. that's would So that I

terms of Africa. the and that In America international, think populations served I are in of South given South types being

you're activity -- the to virus and going those going on to going Batya, what I where see dependent in is think, and you're markets. to economic stages of largely be lockdown it's

Batya Levi

Okay.

you. Thank Okay.

Operator

ahead. question from with go Please Next, we Morgan Flannery Stanley. Simon have a

Simon Flannery

evening. very you Good much. Great. Thank

there? CAF see You in at is Thanks. there? towers with putting And you applications. some if you what got on you opportunity could the talked seems like What see people at? talk there opportunity opportunities lower-band II activity of of bit putting solutions spectrum the sort you little X.X sort process. a about give on fixed could good some on out It the builds. you us that just what the or plenty amendments on do from about Sprint looking Maybe towers, sense any then T-Mo from wireless What coming dollars of of of that's color a the T-Mobile RF

Jeffrey Stoops

we're going Yes. -- get not that. do We into but don't specifically, That's we that Simon. do, to

Simon Flannery

line in Is it with your expectations?

Jeffrey Stoops

Yes, But do sites more necessarily the than others. cash the I as mean, much applications some not poles some as opportunities stuff towers and of mean, we certain are our XX We take existing that of is expect days was. to thought. just I we see there. from everything And there XXX in benefit the all to pretty of from be for highlights thought where do macro thing, commentary to of much COVID-XX exactly first is days this in come like increased which people there. question much it better mean, wireless, It's areas; should was, what And some would we going unfortunate it's spending I be. need of behind added your got Yes. rural terms fixed it's -- for so programs, these going and opportunities be to out that. then yes, broadband is think we connectivity.

benefits that to some We come. will see incremental from the years in

Simon Flannery

Thank Great. you.

Operator

a have we Citi. with question Next, Michael from Rollins

is line Your open.

Michael Rollins

bit if couple I of projects and you afternoon. wondering there. was little good initiatives Hi, a mentioning that were you on a could the the edge in questions focus

about you could sites the of you've you're what that thing that with thinking acquired for First, opportunity about monetize you how to trial of opportunity? the in to and that that looking the frame the have data learnings if types And centers second talk then you is from relative the that's the extract of helping been How the some the what in prepping as per well tower get for terms land are for you've today? revenue you as you opportunity. Massachusetts, you Thanks. can the edge

Jeffrey Stoops

model improvements is the there basic one options pad to the is of for really is last be choice question, which your the to -- the which and that be the -- connections. just and landlord that's run basically basically Well, out the business needs made, three Mike, -- is and us,

the to infrastructure, us allow do. a and data third to then middle will to and somebody run electronics decision operate that's and And the really that them; active the ground take and second position own is it in shell be be thing. the the The whole operation let to when comes but and the center to own the really ownership to designed make time what is else

we other is for folks impetuses since center last of The was recent that be over the learned one the it this will have the thing behind -- and second be who some and -- our year learned other that site, for this at we've at they from at the and that repository. the is data will are all to be data all folks who cell center edge, going the larger need purchase, customers coming

really large how it's so the ultimately out the the then storage moderate quite work edge, goes where -- to ultimate edge. interesting the to and connectivity to So, size needs

or what all aggregation centers, work. will between data our be center the ultimate part is important, of edge edge, XX want be data understand necessary the more that will the So, operationally very to well. sure have points these be make relationships as going ultimately and to center whether working the you, what to along I to here the will we years tell understand make And what we own data we that's but which connections on forte and way we less, we're down. can't are absolute are it the in capability and And that

Operator

then question come next Cowen. Synesael from Please with ahead. go Colby Our will

Colby Synesael

Great. you. Thank

any a to had reserves impacted bit? that still of now? to just maybe bad you. you come international And the that, half want notable you the and far M&A get do the of how M&A you year, of combination pace. playing And continue guess the comfortable more take buybacks where you anticipate be? the you I back debt broadly, Thank like investments, in typical your see at on quarter them in payment I secondly, to curious leverage Do may enough guess if as you year envision letting down as what it just then then are doesn't to it Would present the or relates part off seems if you're year-to-date, I that pretty spend right you to Oi, secondly, stepping and out? you itself are Looking have guess, from buybacks relative to EBITDA? the getting potential typically you

Jeffrey Stoops

we're the the not growth leverage come We'd and Brendan, continue have. to you I'm cost let Colby, that let to down, we at going given the especially debt Oi stuff. we'd handle rather accessing that's rather here. new going motto do investing stupid -- But I course our not mean, in growth out and first been expenditures. portfolio the always be to assets of and action the we're in second. which

is So, have and than and lot will there at And our be a it's belief we more our get got out We to portfolio continue minimum growth. there but look that. we goal is certainly there looking to meet there, plenty of it things enough the the certainly at, right will that to accomplish to X% liquidity that stuff. be

Brendan Cavanagh

Yes. on -- And Colby,

Colby Synesael

clarify, you think that you sorry, in you'll growth, to think whether the leverage hit X% that still I'm So, of portfolio come just M&A I -- terms but buybacks, of beyond so would down-- or minimum the guess, you it's regarding

Jeffrey Stoops

in choice. the don't we're I going to certainly hard have our to it that. first We're hard. bag today. Yes, going work That's do to

Colby Synesael

Okay.

Brendan Cavanagh

second owe to Oi, bad first to that reserves, the on then us. continue with regard the of debt in getting And full they us didn't from debt Colby, terms amount bad any quarter. in they of material a your we paid all, reserves standpoint, book question pay

no So, there. issues

Colby Synesael

Thank Great. you.

Operator

Next, Please we Del ahead. Nick a go question Deo with have MoffettNathanson. from

Nick Del Deo

questions. about I And peers in Hi. briefly Thanks time this returns for a I'd taking your thought of return quarter. ask segment by my you talking Jeff, to international spent the your have alluded you prepared Hey, remarks. same. lot

domestic your would package, would comparing in more numbers supplemental assets ROIC like? when do You think the those versus you like comparable maturity? calculation what have that maybe And look look levels disclose of what split importantly, in international

Brendan Cavanagh

Brendan. It's Nick. Hey,

specifically, international that than of markets like And out, are the digits. actually Central the not domestic high-single more different of the America a tell information can mature certain those in of of higher it But ROIC consolidated is that that I out case that -- is obviously levels in the number which portfolios. exceed But some you put we're standpoint, about given in have was U.S. So, directional ROICs XX.X% ROIC is obvious, maturity it, Panama breaking lower. be countries we which some like general the may from the some current our while the information international

in The Brazil on mature markets obviously We've been that X%. we've less markets little mid-single more the But very, basis, that's on well. some a the So, are digits. that FX typically South in had have very performed the been mature have -- bit. that ROICs headwinds currency American weighed constant have north numbers a of up

get show as well. number terms a bit little expect, will we we So, of actually in that that, currency, of very time more into kind period normalized

gone it's that well our pretty in while. in a we've for markets been So all

Nick Del Deo

Okay.

Okay, that's great.

average I an Oi, with term noted to contract turning X-year think you them. that Now, you have

Brendan Cavanagh

Yes.

Nick Del Deo

not blend more can some long so, of like? looks and kind it's If of a barbell kind that very end each describe terms that And a that's what of with correct typical some mistaken, I'm you distribution? if terms. maybe Is with

Brendan Cavanagh

For Oi?

Nick Del Deo

Yes.

Brendan Cavanagh

Yes.

terms, So all of scenarios. leaseback acquired are average some -- we the all that but of leases almost long. Oi They they're quite leases varying through

remaining whole, look have is we you when leases. north term well And years. XX as actually a years of are leases some then mobile Oi So over on at the eight Oi average that little as fixed those a wireline

between long an left. So, it's the extensive two, time

Nick Del Deo

Okay. Got one of Brendan. if it. it. last could sort you, one And to I Got quick

Jeffrey Stoops

just clear. let Yes, me be

Nick Del Deo

Sure.

Jeffrey Stoops

even the didn't mean, was mobile. years the didn't calculation, eight -- That into work I we wireline. even We that

Nick Del Deo

Okay.

nature, one-time-ish makes we like got anything kind in it. were Okay, that's or aware of And that? be sense. strong should Anything very it. one-time expenses then lastly, that or That margins this travel quarter. were Got like of

Jeffrey Stoops

I it's things at but that, slightly SG&A mean, like you're I not reduced in due overly $X quarter better. probably mean, Yes, looking of material. million to we or were the so

Nick Del Deo

Okay.

Thank perfect. you, guys. Okay,

Operator

Next, we with Long from have a question Barclays. Tim

is line Your open.

Tim Long

you. Yes. Thank

been it sounded then tower purchase. fair Maybe of what quarter of quarter. in really DAS. focused to Just a were activity and and like just on amount the color, a those assets color you compelling mentioned indoor bit where was of there purchase follow-up, little the haven't And little the about subsequent has a just a kind

changes So any in curious of just you. direction or momentum Thank there.

Jeffrey Stoops

to to with goes equal. you I have be. back be because every about it that's well, be had Colby continue a very that were were continues And high your to exchange towers, that in be to I'm is lot and mean, question, the assets. I that's multiples, mean, your but say like Most created strong a sorry, the want quality to they challenging second really I to bid, Tim? because they But was healthy very we -- still The of which prices where US wasn't. careful was -- there and I'd tower not

Tim Long

indoor DAS. Just on

Jeffrey Stoops

at a on I billion time wide by that there topped business. $X encouraged to it's Yes, more couple along to a CBRS one quarter, continue today I that in what every custom it And but and in is, business a Indoor. because are respects, lot, in very area asset difficult we like that growing think move a going very it's good But is it going And that's think the which auction, and many means business. add what's a interest. much we understand, properties steady I sound from doesn't business. absolutely for a be

Tim Long

Okay. Thank you.

Operator

with we Next, go Bank have David Please question of from ahead. Barden a America.

David Barden

the taking for questions. Thanks guys. Hey,

the historically or kind basis or is on elaborate churn X%, you Leap/Metro is to a M&A? rate, maybe, municipalities think government of there First, of it's churn kind closer points stuff. I was I rate. the core of Brendan, And other churn been that domestic it that by? X.X% Could XX say heard kind what of being driven as Is just you X.X%

going. If last that where about just second of on think third of optimistic last the and there you I you we then as you year; into maybe the kind kind Dish. the rolls of could kind on the Dish It see Some macro it quarter you helpful piece elaborate look sounded on is beginning time, see of a side, Dish, on The out, at would And talked lot services relationship it the be Thanks. was some then length. too. road? side. how down help kind Is that

Brendan Cavanagh

just same-tower trailing percentages, on so those of point they're representative churn, of David, XX-month obviously period. as a clarification, the a are percentages

saw quarters there couple that's affecting. you think really of the thing And bit that's ago. that a a in of a kind of in little I step-up same it's

a of smaller and X.X% or X.X%, that historical our above things. customers miscellaneous older slightly it's to variety modifying due of we're technologies. includes of a down kind are So, number shutting It

We have were number on sites of a never air. that

things cases, old of legacy to consolidation some renewed, forgotten actually probably they're as you've mergers, still including AT&T-Centennial, all in vestiges about. is plus Verizon-Alltel, not old So, and of that some churn there being long kinds well related

So, it's a different mishmash things. of

Jeffrey Stoops

think will of into to haven't very mean has we leasing thing the And prep We time. and a acquisition things, the it comments services them but no the on do probably we planning and and I we're good We years, Dave, the spending. year and site publicly over them be turn Dish to our it first and And and of lot business. all little start they're Dish, is planning to help with partner to, talk of work side doing said said lot on capex that will going a them. a morph think in But to big have a certainly great our changed. we same And and Yes. we've Dish relationship. guidance. there this

David Barden

Awesome. guys. Thanks

Operator

from with Next, Atkin we RBC. have question a Jon

open. is line Your

Jon Atkin

very much. Thanks

about T-Mobile XXX So, back the you days of expected. days mentioned questions being to than couple slower you XX a pace

So, just I be to wanted clear. maybe

You into were expecting expecting full second you that run activity XQ quarter rate or pushed XQ doesn't were XQ? activity that until got see

Jeffrey Stoops

they basically done was had integration I done T-Mobile their they deal was getting things, in terms expecting completed was time and and to has running what synergies the all activity. be applications ground Dish merger and for What And spend mistaken. hit of and the tremendous I to when that and that would in and that's hindsight, chose made the happened. on was sense and --

Jon Atkin

of thoughts cadence other terms any the Great, same stronger or the of there or getting of helpful. AT&T out out in kind on Verizon? And just then and the carriers that's Great. two weaker,

Jeffrey Stoops

usual, Jon. Really as business

Jon Atkin

forth. in And you centers data then both your I'm place, done lastly, and some quick given if have and U.S.-listed of consider about a peers so something just you that's ATMs and question, would the that made international you've comments of wondering

Jeffrey Stoops

really. of thought we've something Not

for looking stock opportunities our to we're buy So, back.

Jon Atkin

very you Thank clear. Very much.

Operator

the to now line Walter Please ahead. go Piecyk with go of We'll LightShed.

Walter Piecyk

Hey, Jeff.

ground definitely narrative in to is months running. Because win C-band with When In to couple away. until be is those going we C-band XXXX? hitting expect carriers going it's the between just company ground at already already trigger us a conversations would is like and should also yourself? discussions the should people but Are having And give out the ground starting obviously -- a know to there running, the that's expect dialogues I curious carriers? narrative. when C-band that companies of you hit those terms hitting having not December, one on with have occur there be operators I'm running that some that are that you indication the to certainly of

Jeffrey Stoops

question I one word, answer would indirectly. Walt, with that would -- say I

Walter Piecyk

Can me you hear now?

Jeffrey Stoops

Yes, I now. can

Walter Piecyk

didn't got you. your get answer, I indirectly,

was question be -- answer, second to it, going got was indirectly I lengthier my I to a there you. going Sorry, was thought think I

in currency, a now, for everything doing good there of President do but think what what EBITDA, multiple or today, what were to that think that's COVID what and a in is the I comp know, there? buy your else, going to it's you'd you you terms you willing is Sorry. an like everything what going with on be is in Brazil Brazil, asset right pay you I of for if Brazil XX% like only own mean, reasonable do business?

Jeffrey Stoops

all And operational what a a I stock. to in guess that the Well, have the And don't about we're Brazil so at of I been question has and where opportunity. there. they have the guess, to, will all -- what between it's a you that continues do Brazil, the two, plan three affected are will to FX FX great. I is because everything is there the people mentioned to on if one, going that it President I'm know punch in look pandemic. And the And is, down come not referendum how be it ahead our I country things you to and Brazil. far else tremendous a depreciate will answer This don't answer these following. way that. history to simple. the people, the going down that economy, Brazil? one-way the we this we wireless have going if -- always then huge the mistake. in have in currency how say it's believe the that believe will just It's things always the a us to it is to for don't fact that do Is And I And that to kinds I don't the be going think at Brazil. they investor believe on place. is there about first continue made is And to the an they services, don't that trip the I Palookaville. does, it that levels? made demand of

Walter Piecyk

it. you. Thank Got

Operator

Brandon a question we'll KeyBanc. Nispel from take Next, with

line Your is open.

Brandon Nispel

Great. guides, new a any that de-risk what was get? ago of the year bookings you that were since T-Mobile And does for in the imply that T-Mobile to from expecting of would year so, In have I seen year-over-year the from sort first questions. guide year, it you for the call domestically the in Thanks. didn't T-Mobile imagine slowing down, backlog million. a one much where times. through Brendan. you've guidance really July this one expect growth on mentioned year, Jeff, the and by for of couple type standpoint taking what's guidance place. to Thanks a Is $X for new -- you you, the guidance you December? about for leasing Then for you changed of later for Can But the in T-Mobile? in the remainder the finish talk

Brendan Cavanagh

it's guidance signed specific -- up. our is T-Mobile. Obviously, that not not of most it's on necessarily based to Brandon, we've stuff Yes, already

T-Mobile, although talked last we've they've that few there as quarters. the is about includes in been slow of portion So a

of the through revenue. usually based relatively the to to we full-year including year. There it's limited. still happen organic its on we activity So, number some that small. expect now growth, and of to is It's growth guidance our organic happening the amount that's growth T-Mobile and signing is the between our commencement contribution are in balance contribution delay, given incremental of But

risk. then of be they're absolutely be zero pace the it's at So, if I and amount they stop -- that's to operating, which would conceivably just they some did minor there likely not case. guess today, the But given

about feel we our good So guidance.

Jeffrey Stoops

mentioned, Brandon? your was question first What

Brandon Nispel

of times bookings you couple Well, up the second you mentioned and a picking sort ended. specifically, quarter think after mentioned of I

was could bookings in hoping give year-over-year you unsigned I standpoint on So, you where be of basis and an applications year? from you even from a July update lease finish expect as backlog year-over-year are the you in where or a us to

Jeffrey Stoops

rate our higher today. expect But we be is are Well, we trailing clearly growth year metric. a at XX-month end than remember, to

QX it So has weakened -- and was year. it last since -- of

we to in to QX and expect end expect better need to see end than But better of backlogs, that. you of the QX in to than be terms of end QX. So, be the QX of

Brandon Nispel

year-over-year year? to than Would quarter last you better be expect third

Brendan Cavanagh

Yes.

Jeffrey Stoops

actually. Yes, Yes.

Brandon Nispel

Good. Thank you.

Operator

Next, we'll with New go to Street Kern Spencer Research.

line Your open. is

Spencer Kurn

question. the taking for thanks Hey,

half. underpinned sort cadence follow-up you you Your to of quarters? Brandon's back as originally $X could us Or baked year in that lowered, the guidance. of help year? took help a by of X.X% organic do you you the Could follow-up, of on million contribution you about that guidance point in higher what that be for out comments activity you're a the expecting end a just that slowdown later understand midway expected So, of rate run growth And the that had T-Mobile? for us that even new think you the assumptions year? into guidance understand reasonable the that level leasing the the then the of a from growth of you implies to Did assume just -- to rest

third do low back thank or start should and sometime the And -- be you for bottom in the to so, you come fourth expect Thank point quarter quarter in to we you. the up?

Brendan Cavanagh

Sure.

do each is actually lower reported fourth which -- will and be obviously, but the be second they point. other, for it first. very probably be implied to the second similar the expect number. will than very, the to we expect quarter, full-year I'll will quarter We the they And third quarter answer So, one low we the in

to were before delay the And amendments. range of the to contributed to two there T-Mobile to So then particularly the which toward piece, domestically. the gross and those, The pushes given half you amendments would that has we end previously assumed financial they in there it's expected reduces probably closer obviously second the And number guided of the quarter year's year, should statement on that the X.X% to a be the been revenue that each contributions. the of quarters it number producers and next latter second significantly have of somewhere growth number. impact that activity up fact year the amount in the that obviously way high or convert assume was X% leases in active the in of the some that new signing of quarter, will this

Jeffrey Stoops

it's that's to days' happens XXX and basically when not back, It's impact year. of the significant. on Well, days you push what take worth it fiscal XX activity the

Brendan Cavanagh

that in reduction, Yes, we basically represents I the that mean, numbers. million $X put the our reduction

Jeffrey Stoops

this but back, a pushed has of is year All impact. it fiscal

Spencer Kurn

about historically? you've when of seen question, amendments seeing more there for XG one on the sort is just in coming a that going as you you're And rate the XG? talk Thanks. based today, equipment of you've it. seen typical Or difference some type up amendments those Got a are

Jeffrey Stoops

this expected. experience for remember as we Well, they're with And coming in that did have a Sprint. while with

Spencer Kurn

you. thank Great,

Operator

Thank you, there further time, queue. are in At no this speakers. questions

Jeffrey Stoops

all of Good three bye. months. we Great. on in dialing Well, we stay forward everyone stay next healthy to and today. And look safe, wish of here, us behalf our appreciate call everyone in

Operator

Thank you.

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SBA Communications (SBAC) 3 Aug 202020 Q2 Earnings call transcript