SBAC - Earnings call transcript Q4 2020 | SBA Communications Corporation

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the SBA Fourth Quarter Results. At this time, all lines are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions]. And as a reminder, today's conference is being recorded. turn DeRussy. over to of Vice like Mark Finance, now the to conference President I'd ahead. go Please

Mark DeRussy

Good evening, you XXXX and thank earnings fourth for conference quarter SBA's call. for joining us

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

future have including, results statements XXXX in Some forward-looking the and our detail today's release differ and forward-looking, to beyond. risks from today, SEC will our cause material limited may filings, that any expectations, to, this to are call discuss In of February not our on any our may make. we we is information but guidance for update we statement XX, no of as and we obligation press

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

Brendan Cavanagh

leasing financial fourth to leasing Total Good and revenues our Thank end very outlook strong million. end quarter year all site the with had quarter fourth for were key a $XXX Mark. evening. results site of the SBA GAAP near you, revenues cash the for high metrics. million, were $XXX.X

under is was of of over including for revenue tower Same X.X% constant the fourth churn. currency year They growth $XX.X of the the comparisons gross basis, of quarter. by recurring fourth impact the revenues with on our cash compared activity was basis, revenue fourth tower last leasing year-over-year X%. on was operational a a recurring fourth quarter the quarter, and tailwind X% highest million churn. or basis. again, previously a placed during significant gross increased a when fourth the same We rates rate of with revenue a application impacting same levels basis backlog and exchange T-Mobile which XXXX, quarter, on to year. leasing $X.X X.X% basis, leasing to domestic On levels Domestic over FX bookings, activity our saw estimates grow. growth representing X.X% during calculated growth a revenues at new quarter, of the X% including was tower continued Foreign the for XXXX, on quarter million quarter were of the however, to continues contract the Domestic forecasted negatively net headwind cash were, a fourth on

fourth the quarter. from bookings revenue a represented leasing big activity of XX% XX% churn X.X%, carriers gross up Internationally, constant signed of amendment basis. cash The basis, or a X.X% total on during same domestic the represented revenue tower currency During domestic was quarter, including our with new incremental coming X.X% of leasing growth X XX% leases. on

largest international a leasing constant slowdowns activity was by X.X% continued slightly In of leasing activity. Brazil, third over steady Gross market, in first quarter, international see impacted we of some our was still tower our Our Brazil half International COVID-related organic remains the XXXX. the leasing growth activity currency spending similar markets. on in to same basis. to up

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

EBITDA impact and margin or of of quarter fourth domestic million. flow excluding Adjusted strong, international XX.X%, very quarter margin in tower cash margins XX.X% Our of XX.X%, flow tower expenses. cash with was cash the continue an the fourth flow be tower pass-through to $XXX.X reimbursable a

Our quarter. in EBITDA industry-leading the XX% adjusted was margin

of Approximately quarter. per of XX.X%. AFFO basis. revenues fourth adjusted pass-through currency quarter margin was XX.X% in million. quarter our the EBITDA attributable the tower was fourth impact XX.X% and constant the $XXX.X adjusted increase was expenses, an from Excluding EBITDA increase share $X.XX, total AFFO business the fourth a our an was of leasing XXXX over XX% in to of on

majority in quarter, consideration acquiring portfolio, expand for of we sites cash During $XXX.X our communication XXX adds the Subsequent our almost week, also fourth million quarter Pacific The on total transmission portfolio. purchased wireless and over to our building XX XXX utility end, XXX from to for communication acquisition Gas we announced aggregate closed we price and on of also Electric. distribution sites tenant sites to existing the of XXX Last previously $X.X transaction quarter. structures a and have million. PG&E continued licenses an

the additional existing We these any license generated agreements. rental all through are entitled contracted revenues from of to and escalations XXX% tenant future to amendments licenses

structures the these additional substantial we by majority market rents any balance the to a with have addition, shared with to PG&E. In and of right retained additional tenants, SBA

transaction, XX,XXX first with in also rents resulting full to million. any granted PG&E price to during the be assets tower shared closed, additional the $XXX we million purchase predetermined revenue is months flow sharing this our arrangement. generate transaction been the PG&E And approximately right SBA a $XX.X to approximately the cash SBA portfolio. structures XX the is of part As in under by When exclusive expect has market cumulative anticipated and over

our anticipate back within ratio net But quarter be organically a range expected our as Our reducing first this transaction. EBITDA target by debt-to-adjusted year-end. comfortably our is of ratio range target to leverage leverage above we result

pleased SBA. enhanced with long to a benefit industry, with we this the and PG&E forward to relationship very PG&E acquisition, carrier the are look We wireless of and

to our majority of sites quarter. the of XXX purchase in an markets we we've In purchased sites by and addition anticipate the closing the the on to we of $XX.X for agreed year-end, aggregate these second also assets subsequent additional have existing to price million, end

assets, land continue in the also new invest to addition our tower we In sites. under to

end ground under and During more our an underneath At land of the XX lease and terms. is of buy aggregate ground leases, quarter, than for years. years extend we approximately the the quarter, and owned remaining average million XX spent our renewal of life controlled under the we XX% to $XX.X the or to our control, towers, land easements options including approximately

XXXX. now, this Looking year press initial our outlook full ahead afternoon's release includes earnings for

Our business. outlook reflects solid growth another leasing in of our year

Although new we on the pace in XXXX. XXXX to leasing for organic of revenue contribution leasing experienced activity, reported the our anticipated weighs slower

we domestic activity experienced a higher expect leasing operational XXXX. level We of in XXXX in than

minor is largest the of in the Dish latter ramping the half from occur due and our the half is provide newly lease leasing This for increase contributions XG-related from XXXX to C-Band the but expected next to executed several master the and well leasing agreement. to of activity years. of anticipated second the some of increased revenue under much up set initial revenue, leasing our year customers our timing to projected activity in of contributions year However, investments in us

as to in domestic COVID-XX. Internationally, markets to continue rationalization similar projected does of largely leasing a XXXX XXXX to levels activity we as are T-Mobile. we see in due Our revenue from spending churn carrier impacts we level saw contemplate projecting by in Sprint organic network outlook increased these

approximately of we activity increased levels and continue million. expect business, this increased of to represents Guatemala, incorporated by to be have projected carrier international churn, sustained domestic increased one in into of a have by impact estimated churn, X consolidation both the increasing in we reduction which half impact along are These XXXX we needs. by and specific regard revenue with Central who customers will activity network this revenue we statement address projected latter the our financial which items, level of be leasing the part and reorganization with from country, activity XXXX, positive of such in $XX American to the With project normal total a also leasing working services seen our of We leasing year, impact closely to the activity. been for have XXXX their operational second negatively ahead and

As we a revenue increase guiding last year. services XX% to a are over volumes result, about in

XXXX those it year share also repurchases contract today. under but beyond other Our projected any assume outlook as of those than not acquisition, acquisitions assume outlook does not PG&E the full the does includes The of today. further any impact completed

invest likely additional or are or the we year. in to repurchases during assets However, both share

not Our activity contemplate recently outlook any for of next do financing for interest notes expense and -- cash for impact AFFO further net but completed offering, XXXX. in unsecured the include our

over to and prices. an update I Finally, assumption share common is who per million, by on provide our estimated will will is share assumed of liquidity influenced future part in position weighted number for outlook balance that, based things which XXX.X our diluted turn AFFO now With of shares on sheet. an Mark, average

Mark DeRussy

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

Our leverage net debt-to-annualized ratio adjusted was X.X EBITDA time.

quarter premiums to for $X.X the beginning February issued interest of unsecured XXXX. from senior associated offering X.X on outstanding interest of fourth accrue August EBITDA-to-net billion proceeds and interest corporate facility all rate notes outstanding coverage of X per amounts on at such fully the expense XXXX. August X.XXX% company redeem to used X revolving repay and After ratio cash costs is due notes each X, year, in Our X, was cash times. notes adjusted under net semiannually year, time were credit of interest the XX, of January general to net The this purposes. X% at our redemption with XXXX, senior all and due year-end, These February and the pay a

X.X%, outstanding January average issuance, we today, with our is have for of years. As debt the forma And outstanding the on a of our X.X approximately rate under interest weighted notes weighted pro $XXX revolver. maturity unsecured average million

repurchased were shares repurchased $XXX.XX share. the shares $XXX average average million of an $XXX X.X an we shares or price retired. price common or for fourth per to year-end, of the quarter, for million Subsequent During we stock of share. $XXX.XX XXX,XXX repurchased have our All million per

The today, of at reduction million count million XX, a percentage XXXX, X were December repurchase remaining quarters. repurchase XXXX, of XXX.X under authorization share our XX, As shares in we at outstanding our to $XXX greatest of December stock XXX.X compared have That billion $X million is plan. X.X%. company's reduction

shareholders over that, of the increase XX.X% over per close our share. In quarter, last announced of addition, today, on dividend declared we March during quarter, $X.XX XX, of And dividend we with Jeff. the or March XX, XXXX, now And call cash first on I'll a that quarter an million $X.XXX and Directors per payable turn the Board to of of the declared a $XX.X record to paid share XXXX. at or fourth business of

Jeff Stoops

activity was quarter our had and solid quarter organic year with Mark, everyone. of a short share, financial of a good of XXXX an evening, We produced results, the AFFO $X.XX and and $XX our or portfolio. best share. to terms fourth of Thanks, leasing added to of finish and annualized results. $X.XX per operating in rate We services we number high-quality strong per assets of The

the share over the this and creation Our growth quarter the prior material for year business. AFFO period of per represented capability demonstrates value

and have also repurchased a buying signed slow invest our agreement large our share moved transaction Dish. back company we lease quarter shares X.X master X.X not million XXXX. into stock to closed of up did up million on additional with shares we an and and repurchases, material year-end, We Since continued and in fourth with exciting our PG&E, signed through down as the we in

attractive will drive increasing a outside it investment levels network T-Mobile will the transaction. XXX demonstrated of with speculated the find sites investment specific have to goals, bring those PG&E. number our result, what added X.X some activities role their operational of and prices agreement extracting PG&E believe on C-Band of which into year. T-Mobile, spectrum. play regard leasing where macro macro in deployment we over and our integration with to an their for is sites our expertise to long-lasting experience network of as wave With megahertz the the their that tower meet maximizing been XG believe leasing in of upgrade are increased years allow believe auction, The to carriers assets can has upgrading And We've of degree, in of urban will these wireless next assets XG spectrum all networks. both lease AT&T, locations customers Verizon, with we Northern settled price. use participants next-generation organic wireless will potential significant We're will of or pleased exclusive to toward has material investment. to the well levels We It that beginning customers coverage either particularly Dish. in to use the markets. of gigahertz network benefit spectrum and add their is importance and and opportunities large We spectrum Activity in the been of the our as widely our our And in auction plans. value. evidence we're the pleased business, carrier entry long-term portfolio master these of maximize be they this for expertise at bear been primary the positive the today California sites All new announce a and accretive each later us activity believe attention with mid-band accelerate with current very of ability C-Band a to turning are targeted We've domestic C-Band our high-quality, that have we their SBA. critical for the our at implications

impacting commitment new deployment SBA in sites includes Our steady African with to impact infrastructure major organic greater network SBA leasing XX% new with provides Latin in also new a quarter, the over order to return pleased see securing their and some leases. to steady. crisis, our It agreement nationwide to improve services and these commitments. existing international for XX% SBA a through of provider through terms standardization greenfield activity in substantial to next historical partnership of We're activity In markets fourth up revenue levels, order America to Dish's we our for growth in our Notwithstanding signed continue efficiently further years, lease in leases markets. longstanding several Dish's our certain we to amendments ability business commitments and to the minimum processes access new meet Dish levels network. XG new with Dish. Internationally, South from as COVID-XX the remained

However, more across recovery improving. customers. should spectrum result are normalized of these wireless return economic number auctions in international all across from usage our a a conditions critical our we investment remains we And with and high to and markets COVID-XX paired upcoming believe markets Eventual by will our environment has with a position. weighted remain of long-term bode interest organic From continue a sheet international very strong revenue allocation well to in current for our The capital. average balance us growth. opportunities capital reduce low cost rate and perspective, to provided

advantage unsecured number today, were completed take evidence ability these of sources. is offering lowest we in Our history. recently lock bond have of pricing Markets our a very unsecured and company's debt to our as to the remain strong available cost able opportunities of financing in we

to to business, stay leverage in our EBITDA. a debt-to-adjusted As we intend net target fully result, X.X continuing of times invested to times X.X

delever later capability, back this year actually target easily after dividend. to our deal, PG&E generation as expect above increased of our even be materially into AFFO our temporarily While given we will our the a we result range range

As noted for our portfolio active investment these both investment leverage have share repurchases. with have activities, we in we Even XXXX throughout earlier, and capacity incremental achieving while still target. been

XXXX. XX% paid On less than this Our sheet increase about the approximately investment midpoint to and again future allowed basis, our our for balance leaving AFFO new opportunities. we an at the additional capital per substantial share growing in us outlook strong dividend share, per dividend, rate us announce the of of significant a over represents XXXX annualized has optimism XX% to

end our I'm issues report, enhances briefly our our material which highlights communities sustainability illustrates most efforts of At which communication because to are stakeholders. report and pleased I wrap inaugural practices other also sustainable would our and to the issued business X our business, our mention it to corporate-wide operate. very shareholders in year, responsible and sustainability with on this our like the the of we I that corporate commitment we topic. up, So before to focus

have geographic greenhouse markets. risks assets small emissions our ways seeking relatively gas footprint, our and are a our to address we reduce across While climate-related continuously

towers all commercial of centers, span initiatives wireless assets of infrastructure, our data the offices environmental our of rest Our all and to from fleet. to our vehicle

business promote also practices responsible conduct supply and actively that ensure culture to we the and chain. both policies socially business and workforce standards highest and diversity according our Our we ethical in

for again growth to growing in the for XXXX, commitment a had with Our longstanding customers our through contributions our to efforts our their with share by difficult continued as these year diligence want per our the for pandemic, areas I and in another COVID-XX forward year. engagement these philanthropic and we ready we advocacy XX.X% with success. team our local that, to sharing to to we you about Notwithstanding reflect questions. improvement over We communities. commitment solid Ryan, challenges solid XXXX. our results our the year and And and forward we in and AFFO members during with XXXX are come. and our communicating look years look continuing thank and And times you move posed

Operator

Instructions]. [Operator

question Our comes from line of the with James. Rick first Prentiss Raymond

Richard Prentiss

also also expect I not A PG&E line flow? bit the us below expenses transaction. of Can much And lot pretty because obviously, with a how transaction the cash operating couple is tower revenue down then a EBITDA you assume associated there questions. take costs. about at walk 'XX maybe of Jeff, is little a guidance? to not through the much sites, their us but I'd major

Jeff Stoops

both on counts. right You're Brendan?

Brendan Cavanagh

million from $XX-ish at Yes. we've in. about for and of the of that, coming Rick, would our that, coming revenue so got $XX nonorganic XXXX PG&E. I of million XXXX, bridge if look is majority you say,

Richard Prentiss

area? of million, million $XX kind about the that EBITDA how in Is And $XX on range Okay. on? it

Brendan Cavanagh

the obviously They so at is all. there's thing have expense million of a there's to ground within no -- it, ground It's couple majority of the no because land or key own the dollars Yes. rights rent. rent really

high are margins this. extremely the on So

vast the the through bottom-line. So revenue majority drops to of the

Richard Prentiss

Makes of organic the -- is in sense. debates in And Jeff, now the it. same of marketplace then, obviously, as right call tower out there rates the big cash, we the growth net U.S., one revenue,

a is of but like long-term mid-single-digits? long-term, years view kind a get numbers, you side kind we the churn, cash on can into the back of law $XX you your What's where to growth as not organic the U.S. net basis? rate ago, had give Given sustainable large of in the number

Jeff Stoops

do can don't I do to -- we get upper think we we I I Yes. get if double-digits, get but to know can can single-digits. think

think pretty X in up today makes as to until for clear start are happening comparable. and kind to when who sets got tomorrow. this And C-Band going you name attractive particularly told what very what's auctions, they're who's couple it of into a think I very, if year And you it's rumored things things, of to heavy the if and about means you over might pace push a is, know be think lot XXXX you then to you timing already doing going off that then be carriers to there's do, major -- it, lot you clearly a the going of very a it be to things can I lot to there's going in XXXX, do to the but XXXX, a do, to there's of do. carrier the be you Dish, have which

Richard Prentiss

I the relationship they had think also should off they How they we January off churn turn impact? like? CDMA should Dish looks And the you outlook that don't T-Mobile they turn what how about talking VoLTE, the about on churn about Dish then said was think notice we network the call would think And today CDMA. guys given have? the 'XX. sense. would the of said T-Mobile-Sprint but Makes

Brendan Cavanagh

Yes, Rick.

for being notifications million year, you announced So year, impact that we $X on non-renewal next just the call XXXX about next revenue And of $X to loss. represents we've already from give to -- previous we've that I think our some received already to T-Mobile. million our numbers, some

communications outlook, probably somewhere expect, them. leases be million our In on we that, addition when we've or will $X based had up that and in already, from additional an to so come

in leases As based of the XXXX overlapping we we're look majority of out over measuring at when and come impact sites timing where it the for have on point, terms in basically future their those is the and what the up. financial XXXX. puts we us this That years, terminations

about probably XX% see over the X years. next total of will We the exposure

Jeff Stoops

about any that well no be suited sites want. T-Mobile of decides We'll Dish Yes. longer to they talk those to

Operator

Our will RBC. come line the with from Atkin next Jon of question

Jonathan Atkin

some the timing you organic Yes. also if around this wanted well seeing a sense the around Dish. would you're of around in application be drivers, that drivers some far the gives Anything of get cellular, and a sense that you commencement? you mind smaller this year to as U.S. so of that kind of And I of alluded just rent when to activity then context growth addressing C-Band U.S. don't the potential C-Band. cable year of

Jeff Stoops

in our not same with We Yes. really the C-Band any revenue guidance included Dish. -- guidance leasing and XXXX have

Now are but certainly that not change, happen things in realize and Jon. it's there that, optimism and where arguments today, there could could do we that,

Jonathan Atkin

sites are guidance you think keep any Rick's process? informed of kind that getting Okay. and getting the about the as T-Mobile, are kept where about around churn they any you get And you're that your Sprint to variability And the sense into that? that where of then play does as about the on get How in part gave, but sites to question on project, thinking? you

Jeff Stoops

the But quite you information the this based information lion's at that we've would the we a have things, tell I able already, know our on which think But notices with outlook. already we've mean, of all. bit and of been I I you -- -- received we're not on that share timing we had of Well, point. at we've to don't received we've share

Brendan Cavanagh

it as relates to it this relates to year, XXXX. As

Jeff Stoops

relates it As Yes. XXXX. to

Jonathan Atkin

it. Any on update Edge? SBA Got

Jeff Stoops

Yes.

work direct to actually the facilities, What true the and move tie. we're a site the is number around we the different that have focusing connections stay not of direct a lot on back, you between have to think continues think ask edge to on, data there centers which we're continue we're tower and it material mobile forward it's there opportunities XXXX. ties pursuing of got to we've at areas and Jon, that We type that opportunities things be working exciting can there, we to things we do tuned contributor there. a a and would But will number of on just because be I to --

Operator

And our next line Walter question with the will come Piecyk from of LightShed.

Walter Piecyk

Hi, timing you revenue had execute. orders like these I long Jeff. dialogues of have On calls, and past and kind to versus how of it about like takes

quarter, mean, So is calendar because whatever. revenue orders? out of of have there a historically AT&T get up or those think T-Mobile really built you months, second X see ask, And just customer, the from think we by end you? orders Verizon I actually the about submit for Because C-Band obviously, of C-Band. activated should be telling refresh would Shouldn't I I people, more they that's and revenue end to can XXXX, to not yes, we quarter. you to and back the prefer And just quickly." in days I like or you, that? that, when maybe talk type generating just can timing be any we -- even Can of the this our if by you able the if not reason on of get terms curious If to in have memory "Oh,

is. the what question know You

Jeff Stoops

the It's X but not X. absolute Well, have, quite more months. probably minimum likely at X we

Walter Piecyk

Okay.

up if that else C-Band So whether by to we're someone companies, June from we the tower orders to you ability Okay. is market, C-Band should a light XX, believe be then fair? or hearing

Jeff Stoops

[Yes].

Walter Piecyk

substantial mentioned agreement. does that Or it? agree that just work? work? you does lease going Dish a Which minimum the X? there over is pay it life, to X the how How meaning they're in like is to dollars XXXX? like -- Is it time Also they Is

Jeff Stoops

you is could it a it because at not -- it one leases. a -- look minimum we've is is lease, per certain are is agreed but as It site. that if dollar It of parameters there to number

Walter Piecyk

it. Got

give up that timing. he at next the over X put thousand It's us sense like on just Y sites you, doesn't So we'll any some told years. point

Jeff Stoops

Well, some do time have breaks in there. we

it's -- than are -- of it's the defined commitments not that. only due. for due life are due, -- over all more but there are But end contract, the little long they ultimately are the So a There until before some the so time. a there

Walter Piecyk

then you one And up just I favorite wait my in terms there seen for you last has massive of think Have have was of antennas? another know. C-Band, topics, bands. MIMO that certain of any production I to deployments issue some question. ramping initial seen -- with spectrum don't Maybe

Jeff Stoops

We've a the X.XG. while been on with seeing that for T-Mobile-Sprint

Walter Piecyk

it. Got

sorry, guess specific. should I'm -- So I I more be

be occurring over. the but it's -- why I think that I until the there might for C-Band, auction is have been issues in terms would of MIMO antennas ported having guess

So Thanks, reserve quarter. I a question future for will Jeff. that

Jeff Stoops

Yes.

Operator

the question next will of from come Deo our with Del MoffettNathanson. line And Nick

Nicholas Del Deo

repurchases organically that that post-PG&E, your over noted guys be stay or somewhat you the target going are be leverage to through target to year-end? to for course longer going would that of if valued opportunities restrained be stock year. the you willing surface? M&A share then some Does Or any and activity So your if is but above leverage down your above mean is more other you trend or attractively buy the

Jeff Stoops

that gives below rush, or it to But of quite by we don't high bit like flexibility. end the the at year-end. have statement to of Well, us a but we target means be would

Brendan Cavanagh

Yes.

just at be of and levels to within Nick, range do We we mean, continue M&A buybacks end of target our I leverage typical have, and to capacity year. clear, still the have plenty of to be the

Jeff Stoops

until to maximum preserve of I in flexibility? the Or think to end key answer the you rush And to going are going question is, you year to do is X your wait answer to quarter? the the it are the latter.

Nicholas Del Deo

Okay.

you're deal. And by sign some by from positioned Okay. proportionate of their one like fair served of business? talked than deal, about you your extra helpful. you to obviously, That's feel then well related do more peers And the Dish their were time feel to virtue you deal? share getting like well get to business of Do of has waiting share your Dish new the

Jeff Stoops

Based on the firm yes. the commitment that answer have, we is

guess is second yes. your to I the So answer question

Nicholas Del Deo

Has Maybe That's the it activity X would squeeze more Okay. has in if leasing to hear. a ago? been it in bit T-Mobile's you had Or I quarter in. way could it recovering good or come a expected slower? one

Jeff Stoops

No.

busy, -- they're just force. is for There's as them. strong doing busy, it's think I a very a see we very very thought. ahead very year we all -- and very, They're T-Mobile very active, deliberate,

Operator

line question the next come Bank of Barden, our And of America. David will from

David Barden

I kind deal, a that function the cross. long there's of you’ve sector I'm forward a PG&E deal time utility this of kind new total that first, seems sector of And this of tower the a and now kind of a to gulf that Jeff, guess, done wondering kind market addressable opportunity you've that. between on been for as tier there's if

And we -- the X relative this should course over deal, Brendan, with would you, Or at does up PG&E is graduate to expect the the quarter? the in on that question, rating year, around respect to number the international new that year? to normal be $XX maybe going the of a is second to of that specifically, X Brendan, kind run to that be X XX, first, XX the for it a first The go-forward would basis? that's then be, from on churn, million

Jeff Stoops

then up I'll go with don't the why wrap Yes, you it philosophical. more first,

Brendan Cavanagh

the one take I'll Well, Yes. last first. Sure.

it's not the just that are On lease-up. relatively during would escalators little amount Obviously, There would are steps significant and modest expect it up. up bit piece, a I our built a in, the year, expect these David. to does new step of we but it brought sites into be PG&E small, we portfolio.

will but there So same it the some run step be at will pace. be rated up, generally

for on first quarters portfolio small materially it than the have in throughout Of will very But basis, course, quarter step it only the will as we half the a be run be year. other lower our up the obviously quarter. rate

of next some specific things It's say will we've are new is because driving though, up. number some the definitely with that as to as as other midst carriers, expect elevated the some On the normal. the discussions to in the that be well are have. it, issues they are be with been to probably $XX where some hard them try and customer us consolidation number churn help international million that for I where year not well. exactly work do There the the side, we there's through had what them

eventually, we'll at through expect the to those do issues, I exact will to that that expect seen. impact I but next additional level year, amount not get But So there be would and remains be be long-term.

Jeff Stoops

Yes.

about, There David, its of not in We've involving geographic mean, the In this a any than however, there terms be utility the first. might fairly publics, an think can't everyone. there's the mind It's always were top tower more the of that inquiries. PG&E think different have number fit this the it's of actually but an but location, opens met a it sure couple one very that think particularly be whether I to they be between that to could tower focus because seen. going it again. not And considerations the it frankly, about that a source did, leasing never new those utilities, primary bearings, of of and benefit And utilities. we can see. relationships make of to and for X certainly, they other have so and to company and as this I have primary, transactions improvement the of They the unique a characteristics arbitrage couple Utilities case tower had to be companies primary been found companies between of up or in remains I'm has be of was we'll and to be third. element of thing

we'll see. We'll see. So

Operator

will of And our next question the Synesael come line Colby from Cowen. with

Colby Synesael

question. clarification I then X of X points just actually have and quick just

when you're you think high going Jeff, clarification, domestic growth... of saying you're point single-digit to back to off, First get

Jeff Stoops

I said ahead. mid, but go

Colby Synesael

my about I Are my said X. question real churn And us for you And X if were then then and are? to XXXX, sites previously I thinking give and X XXX X? now X, you to the gross you're X quick. saying to acquire, I already ask and and some next last you heard X heard When color expecting where speaking was can committed X you've it's to those question, on or going you're just that net? T-Mobile sites you

Jeff Stoops

XXX that we've On $X an in we number is we specifically question those estimate already those sorry, incremental of when the million some the based internationally, our received South come that there's outlook timing I your contract specifically on estimating Yes. America The Sprint Africa, see our And in forth under million churn they're put the out. T-Mobile There us, growth we've spread what leases or rates. yet biggest is on. but piece, The Latin throughout from it instance, of not M&A are bridge, that's the on is are standpoint, in, been due. was $X are terms to some noted vast we as are an first is but that -- million what included majority to think, in sites for lease country notices well. based in on the the assumptions $X located but

if we're there the question thinking net. that all the you there's to on of T-Mobile I growth an opportunity set front you certainly really frankly, challenge, growth if think back on -- that out than an you we to mid-levels, that's opportunity mean, about there we is go that churn, was with is I the the churn. think mid, it. The about But us. but X, Colby, opportunity that's is that's see And I biggest put that more aside, consider above to there. from that, in guess, could the figure going up believe weigh certainly Sprint in,

Brendan Cavanagh

I Actually, question was gross Rick's thought so.

Colby Synesael

X% So long-term is expectation? a a mid-level think domestic, reasonable you net is tough

Jeff Stoops

Yes. And higher obviously, gross.

Colby Synesael

quick then just other And actually one one. Yes. real

left hasn't You is closed PG&E close? still said to completely. What else that

Jeff Stoops

sites. number There's small of a

issues about cleaned that be those million. vast sites and up majority expect have sites We've just specific of purchase close be $XXX X to So addressed, later. $XXX it. the have will of next in on closed some There's is certain price to the but the total million that months, them number we of that, so

Operator

And of our line from Feldman, Sachs. next come question the will Brett Goldman

Brett Feldman

carriers, they'll look the networks they all at have frequency what major ranges virtually of be is that's today. leasing their wireless than from deploying the we spectrum that that So expected the higher at in when they used haven't

And is bands. their site that utilize insufficient imply are fully those grids that would so to existing what

because actually more I I'm has that perhaps amendments? is, on X second development or insufficiently heavy I'm sort that think is be you've then you look even balanced here into step highest leasing been power to of going been you out to historically, of dense towers And while wondering such a investment? these And get very think do of that a between with being amendment some for to that versus that as expect as so the to visibility One, an new wondering, up leasing. of there as questions. that return spectrum with do leads context, colocations is your have opportunity that the activity might expect and if ramp, deployed, U.S. nation's maybe you your grid bands emerging do

Jeff Stoops

Yes.

they're yes, think towers just spectrum not there's because efficient require beneficial on going I to towers get our digital everyone, always to more is broadband I will propagation, going regime be more unrelated clearly for a reason, and There's existing still. perhaps a only because the there'll which fair of the question, play closing totally existing role, divide amount think most some bringing big but of because, that get on tapers because structures Brett, to regulatory customers. emphasis built. no that. I then think economically the the amendments I But will And think some a be and colocation

Brett Feldman

If concept it. more where mid-band being economics could of any infrastructure, just historically? potentially around quick opinion there's deployed follow-up, spectrum could a densification. rooftops, emerging these I I'm favorable same other but cells, maybe We are in know versus as Got ask ranges around your small if the the become wondering areas

Jeff Stoops

gives served, on depend see you by I and wherever site areas the mean in will macro I do most a get architecture. you conjunction facts our can believe believe that circumstances. to get has always aren't you towers. don't those cells spectrum as alternate it customers they're It served going think with their this where the be just well going bang I to used to areas in true tower, but buck, doesn't small for a that be

Operator

with of the Cusick our line And next come will JPMorgan. from Phil question

Amir Rozwadowski

year? pace XQ in Jeff, we This talk by much expected expect to can deal? you Phil. should be activity for is is you the help talking And that how Is can XQ activity Amir And XQ? in built into the announced guidance about for Brendan, slower us material 'XX? of this this about this than

Brendan Cavanagh

latter little certainly of slower the Yes, Amir, will the for half half statements those latter in the so financial does here impact then, our been revenue. pace year. the assume assumption a of with they the a consistent making we've it limited activity all more things our That's comments so the MLA, increasing beginning when be that year, because But up throughout of picks new is to the drive agreements C-Band in it's our definitely outlook and of Dish recognize the 'XX bit at that around of is actually year, year. of leasing up our will signing the of activity to start and timing even to the

it -- next this see don't year. late believe, I year I year, or throughout up, will start increase the of I So to think benefits the step but you'll that

Jeff Stoops

very contemplated could Dish, while little services terms the we revenue guidance see in guidance. of the none contemplated in and leasing really some specifically in there's revenue, And

again, better. could it timing, Although, be on depending

Amir Rozwadowski

the And we And the about you business talk you is months? Can this X to with over of of last kind forward? lower going Brazil, expected. be than it heard slow, but we've this activity is what activity pace expect

Jeff Stoops

have had is couple the through, long-term, that the Oi itself favorable. overhang has will be working transaction, which issues Brazil Yes. of it, been which of think, a we impacting

Telefonica then and last issues those COVID. For with the amount TIM well had perspective. most, like their next, bodes with -- an will amount, most but the they've of then third obviously, those not overlap Claro assets which for or looks lease us, from And it us the well, get predominant of

jump their moving So to XXXX. in to as expected out, from GDP actually quite material a settle is those things Brazil XXXX have

So its back to Brazil get as do to those growing things play self. themselves yes, best kind expect we of out,

Amir Rozwadowski

final with one bankruptcy, recently happens that if protection And if through have I PG&E can guys may, the of one, again? you what's kind

Jeff Stoops

and of deal, legal a Yes. fees point. this we we're we’re where could I We've PG&E on that of but into say sits could covered. I that, spend regulatory The pages the the pages time legal and fees also you posture with bit quite addressing versus got structure well and just where at that deal, of sit

Operator

Our Luebchow of next question will come from Eric Wells Fargo. the line with

Eric Luebchow

right XXX I you XX,XXX just market. PG&E wanted to the sites have the acquired the follow-up Obviously, on to you and then additional acquisition. the

and per some tower that Just wondering that you do would perhaps portfolio? colocatability per tenants where you of think it's tower that in from in helpful. how think kind can many And XX,XXX, at tenants be realistically sites today, of drive portfolio those the terms of on then that really growing of you

Jeff Stoops

tenants, many XX,XXX not approximately think XXX than across the frankly that ones, I prepared the tower tenants -- XXX on I mentioned existing we roughly my XXX are think today. a tenants ever don't those little marketed. sites. I in been they've per on have The more Yes. comments There

honest promise -- of a guess So could you on seek bring additional a to can it kind something. can't we a but we you, XX,XXX, works is had which type PG&E the to be with appropriate which out folks why to the have hazard of way carriers relationship, And is be totally I value. it'll think it's been the I with

Eric Luebchow

had for least one And Okay. in additional at some That's acquisitions. you more like share then repurchases capacity, the It me. year fair. later additional either just perhaps for sounded or

or think sit and seems last today, XX cash be many where continue it? your XX% cases under like would well you flow share about so tower It from where times acquisitions, think down the of to in mean, you greater you than stock, So were you versus at do stock that. how trading potentially year. I multiples kind repurchases is

dynamics? those you how of your thoughts wondering So capital allocation, kind on balance given

Jeff Stoops

if those stock you if of in type more opportunities Well, of we as favor we that saw it would. -- if like repurchases you bear dynamics saw would PG&E, described,

Operator

of come will Simon line from question the Flannery. next Our

Simon Flannery

Brazil. to to back wanted Just come

do think made on, a the I the then their the can that concerns C-Band deploy taking other about they fast leverage cetera? the markets. think how some international given about And Is you you'd the -- C-Band, ones of focused amount some back important carriers behavior comment bidding, are there's that on? or auctions you're Brazil has kind coming in spectrum What of up. change either are might coming outsourcing any in et strategies, to

Jeff Stoops

gigahertz X.X has tentatively Canada scheduled for June.

has a Brazil. Africa Colombia South Chile, this big one later half, of an has for next Peru for quarter. entire first suite and spectrum scheduled tentatively XG

really put the doesn't to have in can creation will kind we I deployed. of of that know change to to that be sure cost it they're I'm In have money going see they -- X quarters for difference, exactly I doing, overall have get customers value scheme being that and or the work there. And has quarters that value spent, do. spectrum And And them. assume terms quarter, Simon, that's for exactly out X I what for But all to ultimately, the of it's with. whether to X them, to our it's the us, that matter. it what know don't read I

Operator

Our from will the with next UBS. Batya line Levi question come of

Batya Levi

overlapping is domestic in but in -- the there? a you maybe PG&E wireless is any mix, the compare tenancy on is the a there you're coming to the talk mostly are In if the be side, we follow-up T-Mobile should year, close contract? portfolio, assume they from then also proximity? your about churn T-Mobile contracts? getting from deal, How And churn that the the could of some terms of the sites Sprint in bit And there little churn that can this indication on terms of length

Brendan Cavanagh

revenue our Sprint is some any to that almost both It's included from tenants mix tenant for have on years. the T-Mobile we assumptions. term site, the X wireless overlap, On average those and of X underwriting the exposure material, There the PG&E, about obviously carriers. the where and in particularly the vast which is all big we majority, comes same not remaining for Sprint

an -- left So runway that. extensive there's on quite time

Batya Levi

Great. And the Sprint T-Mobile churn year? this

Jeff Stoops

those sites. of All

Brendan Cavanagh

this On really year. see we're expecting those this churn Sprint sites, for year, any not T-Mobile to

include our that numbers don't outlook for gave PG&E. So we our on anything you

Batya Levi

cited, Or... I'm million overlapping mostly from that existing sites, portfolio, it? -- for is coming your you the sorry, expectation that for about X your

Brendan Cavanagh

Yes.

we've that as The million on the million $X on, predominantly overlapping So well. million $X $X noticed million almost sites. of overlap been is to already is remaining sites that all $X to

Batya Levi

And it. on Got one Dish. thing more maybe

for the deals As new your put Or have network we towers, narrowband that churn? they take the IoT would that had would that that up show equipment the out some of they as be captured on within with you?

Brendan Cavanagh

on is it those under actually they potential which case, show them be to architecture, up depending If amendment, new on and that an deal sites it simply Well, depends with transition was they're what it original a that in a would with their as the lease. cancel would lease site, happens just not altogether going There based the our then what to use would leases. on churn. there those change

Operator

Rollins from next of Michael come will question the Citi. Our line with

Michael Rollins

Slide on the X I could, of A in deck. if couple questions, supplemental

of few you around ending for $X.X we about been for XXXX then that capital at range and few share And range over look total capital in And years, period outlined, everything you the just this X just to versus that there goal how also the different of times? X curious, a us out may leverage dollars billion. future lower I of you the call might what years leverage the curious get $XX end set allocation at given you of you higher I put look how reach of So there's $X.X if compass the new a that that finally, just mentioned X.X range And AFFO to heard that provide debt ago. share has you you're or curious, may discussed you've chart the you that expectation curious last end just in And this keep comfortable on times guidance considering mind? the on sort the should net and per you look is influences like? to a have that just mentioned of years, been dollars a billion X-year would direction the a questions what you X just I'm of keeping slide, at with XXXX. that allocate last to in

Jeff Stoops

share Yes. I'll in notwithstanding we operating our and take interest found of -- rates we how capabilities. we the are last at per the understanding the the and FX were we AFFO through projecting is came no first, -- prognostication least of The because movements line, our how the Mike. proud components close answer and business, beyond one that

declined have do we of to just as So yet. that

in we we depend rate to of And choose debt-to-adjusted ended to know times. at bought very repurchases X.X answer. move interest may depend benign I mean, acquisitions X.X that end could will choose fact, I to some spend, stock not times today and continue whether we it's we very -- -- the CapEx choose And can to fairly year we that into a And as we then do up to it we easily and potential year to I our looking about actually by as in amount on we environment the to back, don't of is or EBITDA that with see capital that. whether stock the that choose feel your of EBITDA, do outlook. up versus XXXX. do In would or we we and some not. whether, an not, as whether to bought We or you or ramping whether do see net continue terms end a carrier It could of could to activity things I you the continue all if on optimistic would that end you the if going produce amount at don't contribution tell get in that's how fill

Michael Rollins

time? versus And what get that at just in end just in And you the terms factors range? low comfortable not end of the moment, high over maybe of the leverage, but

Jeff Stoops

than on that found be time, Well, because it year just In moment, it we took would letting that I advantage about, it would would thought of creative, I the very based this come everything by. value talked go things it over rather down. mean, be we we

Operator

next the from of our Street line will come Kurn, Spencer And question New Research.

Spencer Kurn

the on trajectory in the of activity I growth follow-up leasing organic new wanted U.S. and this to year.

So -- steadily or ended with X.X% organic expected X.X%, XXXX. and XXXX? understand us should you of what growth And us growth throughout could you about guiding the should you of growth And of in sort sort we the increase year gross for looks help for organic exited anticipate to we XXXX what that -- year. in low to understand it exit you're you Can to the you of expect cadence steadily fourth the like to sort point an expect just when help rate be? quarter for the

Brendan Cavanagh

at the at gone but in trajectory the That we've last the for at of our instance, expectations talked activity starting where is, certainly of at a anticipated first than certainly the on will first average of expect what exactly say a But to back it that of next fourth will lot, part the Obviously, been definitely year. to. year, in low, guidance, couple will year build slower I in our tell is and a Yes. I the Spencer, quarter year by ramp we we it's that's the lower to year, And higher rate than the increasing of the quarter in the exit be that year. latter the past. rate expect really into that implied a towards prepared for exit what looking affects to XXXX. of not rate, think we're you first year quarter second where we've in can it part about a charts, our mean, a We quarters. by kind based report, at would higher and the I that the having is

Spencer Kurn

around year churn, just still next of fall see still and mergers runway a over the the largely I've X.X%. increasing Sprint of getting result always of And like years? hovering couple is like but It excluding thought as you've churn next churn other more. T-Mobile a opportunity do long-term to normalized there for X%, churn looks below Awesome. one seems you to got it

Jeff Stoops

there before. Well, we've actually been

future If a X% And and is of towards range But right the you of We're historical go were X%. back between years couple X% typically our higher ago, we that. end below now. times happening on I that expect tends be would higher there'll specific specific where and fluctuate what's carriers the with based at we're times it we're to where but lower, in times.

Operator

the from come of line with Long will question next Tim our And Barclays.

Tim Long

I if Number a Two, just could. one, question. higher-level maybe

and a second, Given activity that into and you any on then there to or anything go expect spent pricing the as we're Dish is CBRS a bunch the And kind from of XXXX? amendments? up private through seeing or that to C-Band we activity and different XXXX player new new you or of help looks on the terms established seen auction, would have starting players they've like side, tick

Jeff Stoops

Yes.

So network. Tim, and it's kind cloth of card a of on terms, the whole say It's on Dish I the you different paper. well, different clean a full sheet question, mean, anything very the actually from

installations of kind equipment. brand-new sites, be will different it of amendments, cell no So brand-new

hard compare. just So to it's It's different. very

T-Mobile, compared So say, just are quite of the terms for Verizon in a sure Dish and what it's you're comparing particularly different. or what a to, not I'm an AT&T, looking rates terms

as is we've all from cost-effective are And frequently excited more actually, are. bridge digital Again, that but and been in more providers showing certainly it's and things not a technically quite about. of been a terms municipal some solution perspective, reading these school participating that contribution, actually we about. a and district exciting. very to financial these and material In it's CBRS, this are community And of year in some to we've bit up solution governmental, divide and elegant an of where terms as issues

Operator

line Our the Capital of question from will Brandon Nispel KeyBanc come next with Markets.

Brandon Nispel

the number the could referenced start I at hoping you backlog in Jeff, was quantify of change call? the year-over-year the that you

Jeff Stoops

Brendan...? -- was that well, Year-over-year,

Brendan Cavanagh

There's this me they year backlogs mean, are ago at put a I Yes. Brandon, an that. to obviously, a that terms But on definitely much And they're lot its has up. it's for I were you than our received. do more but hard impact, to percentage of specific it. give the backlog plays exact number can't lot out higher makeup today how financial on of in the time. applications with a a

Brandon Nispel

business reaching potentially keeping reaching above that the agreement MLA is indexed low? more beyond what's question. expanded an walk I relatively being heavily to today. really, through Jeff, your Verizon, Different And and your one on you enough. Verizon exposure even us given T-Mobile goes guess with T-Mobile thoughts there your Fair could or from maybe with

Jeff Stoops

have a We're not question opposed just to MLA of any never with a mutual just It's agreement. that been. we It's any customer.

and as we historically we would I it have do certainly you if Sprint some holistic. not, those agreement were with today. fully others. at and went with very discussions to get T-Mobile been T-Mobile point, And We and It's yourself. with be And there. mean corrected at I'm have an we that, have think, do -- just T-Mobile glad Dish I may So open

right? -- that's two it just tango, to So takes

Brandon Nispel

T-Mobile caret if a you that after guys perspective, next or leases XX% there Just off their XX% going that's would have Sprint your from it the my X synergies. of as in seem and that is of years,

So near-term I in near more look clarity might the win-win term? see potential or get what you guess, in the a like the more coming can booking you activity where in backlog churn do on

Jeff Stoops

want happen I could There over you beneficial think outcomes lot negotiate are probably a don't Brandon. with mutually I there, the to that of call. earnings

Operator

Badri come the will line from Crédit question next our And with Sami of Suisse.

Sami Badri

from get churn million for than me that's that to And cost Thank Does And you dynamic. its your right bit some $X and for of could informed in think higher I I numbers the T-Mobile from synergies? sure T-Mobile-Sprint XXXX. currently accelerate if make rationalization said mean view. a also that squeezing you come churn little want I the to potentially decides this in. the churn of just on

Jeff Stoops

different, Yes. contemplate It's there estimates thing pretty to our but small because lower. unlikely, slightly probably it that if may can it's only -- would they Sami, do, be be much be differences, the going

Sami Badri

I Got be it. into recently my targeted do has potentially a M&A. know But does with of your And then question specific given this one mandates. push it. for very And change deals? M&A developing you've Got your do looking peers making markets may other to where you to Europe,

Jeff Stoops

risk that we to cost to We substantial and where create the and broadly probably look act clear value think continue but can everywhere, actually will we and it's we the and we only of relative the widely No. act narrowly. investment look

Sami Badri

it. you. Got Thank

Jeff Stoops

Ryan, we for time question. have one more

Operator

that with come Guarino the of Green from Street. And line will David

David Guarino

really on reflected it Just bidding comment my seen paid. how competitive X prices is for that tower assets in tower comment that's been acquisitions. in we've like transactions are you past developed I ask on on in sought is reason the And are feels the America? countries Can Latin the and after, full

So seeing dynamic you a similar are in emerging countries?

Jeff Stoops

say still would bit David, little less a it's I it's pricing. pricy, but

have be buying. tax States architecture, to careful what in very and understand shield United you're it's only have We the which taxpayer. premise And very provided by the everywhere the REIT that you start that you a disciplined the you're else, have and to with

David Guarino

that. for Thanks

Jeff Stoops

done. Ryan, So are think I we

Operator

for participation. that Ladies conference. and Thank you Okay. gentlemen, your today's does conclude

may You now disconnect.

SBA Communications (SBAC) 23 Feb 212020 Q4 Earnings call transcript