SBAC - Earnings call transcript Q4 2021 | SBA Communications Corporation

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the SBA Fourth Quarter Results Call. At this time, all lines are in a listen-only mode. Later we will have a question-and-answer session.

If you'd like to queue up for a question [Operator Instruction] As a reminder, today's conference is being recorded. I'd now like to turn the conference over to Vice President of Finance, Mark DeRussy. ahead. go Please

Mark Derussy

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

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

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

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

Brendan Cavanagh

Mark. XXXX quarter leasing and year. were SBA Total of site momentum site best XXXX. expectations and the financial for million. and $XXX.X our finished million results our operating into with evening. quarter included the continued The GAAP of were strong revenues quarter $XXX.X revenues fourth Thanks, Good cash ahead leasing

fourth XXXX, fourth revenue churn. a quarter. recurring were growth on recurring X.X%. cash over was XXXX, Foreign a on of million of the gross headwind, basis, the basis. FX a growth constant during revenue under on highest highest the net X.X% were of a leasing Same-tower the was X.X% They quarter domestic same-tower bookings of placed its to and expectations is gross basis quarter application forecasted by Domestic On operational the for Even year, basis, which impact fourth to operational fourth quarter for exchange XXXX. year-end. or very our Domestic revenues leasing fourth generally over estimates a the rates year basis on activity on in of lease quarter the year-over-year quarter, growth XXXX. X% line was contract X.X% same-tower previously cash was leasing with healthy including churn. leasing high the calculated domestic negatively new currency rate we our our a backlog, $X.X though, and replenish of this impacting revenue was the since of X.X% quarterly These level with backlogs level continued throughout new last which executions, strong amendment at of including for level remained new representing this activity at continued comparisons support

DISH fourth leases domestic During of new fourth our from is internal only the leasing XX% of and incremental amendment executed of quarter, domestic DISH the expectations. the AT&T, reported slightly The carriers exceeded site revenue represented represented primarily T-Mobile, leasing new estimates, coming impacted a bookings, quarter, with to Verizon, four leases. total during revenue as the versus our timing with by big of signed revenue leases. This In issue regard commencements up XX% quarter. domestic timing activity our XX% the of number was

at and net, cash to leasing a constant we X.X% churn our on churn basis, Internationally less increased was growth of quarter, our revenue had than internal timing a on basis. highest including International was due the also leasing slightly again versus or the During year. estimates. X.X% X.X% domestic estimates the of in level activity prior currency gross delays same-tower

began other see from America. to contract anticipated, carrier quarter As international in increased and impacts the consolidations Central modifications churn the impact and we network of in greater as

In X.X% forecasted. largest Brazil churn a international that were in Gross was slightly timing we activity. growth churn solid for organic leasing there resulted in reported previously we lower had international same-tower on our some XXXX Brazil, currency of quarter constant market, another delays Although than basis.

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

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

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

million results, record was for of to XXXX, Notwithstanding XX.X% produced an currency this During basis. services Based continuing quarter the our profit. revenue was quarter levels backlog segment increase company AFFO million. results fourth operating high in all-time $XX.X completely customers, the on AFFO and high activity quarter, on over of at a record by the with strong these an fourth September another from third of services projecting we the finishing able we $X.XX, to services replenish a per our the our XXth. business level XXXX million in $XXX.X the equal contribution very our business our share backlogs are quarter $XX.X backlog year row and in were the fourth in constant from

cash sites portfolio, acquiring fourth expand communication for the million. During quarter, we to $XX.X continued total consideration of our XX

And is sites outlook. XX in in the a quarter XXXX impact new to our the into Tanzania. to price our Subsequent first included Jeff built from quarter, million. new a the including markets closed at full in Philippines. fourth, acquire transaction expansion this end purchase deal seven XXXX we the on moment. year touch will January This $XXX.X our sites transaction on in sites portfolio our our Philippines on built also previously Airtel cash our to added announced towers of tower a of fully We

XXX purchased markets for have sites agreement end under sites price are to $XXX.X by existing purchase Additionally, year-end, of million. of under or these third the on our subsequent quarter. contract we closing an aggregate the in anticipate We to

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

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

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

amendments. leases experienced as new largely as reflects outlook increase some Our activity organic during a continued XXXX. contribution is leasing well contributions leasing activity This of revenue strong leasing contributions to organic increased in XXXX, from organic due leasing the anticipated we increased significant from and new pace during

new the Our is may these outlook of fourth-quarter. of for estimates minor with leases from on did in on estimates in lease impacts as installations shifts timing each have timing and part amendments they of our commencement based in and equipment contributions the customers,

escalations. Most inflationary markets, also are from rental international of are the where projected escalations. to increases contributions in in expected increased We our projecting contractual increase is drive increases

connection impacts primary In increases customer churn outlook in anticipated XXXX. from with increased The addition, our in related leasing revenue decommissioning. Sprint contemplates

estimate related a several $XX our unchanged. leases. of of incorporates to related remains Sprint of Sprint approximately outlook previously next churn current estimates legacy churn over Our years And million in provided XXXX aggregate the

timing may reported in on are XXXX on XXXX total dates. from part there internal factors churn actual these that of of are impacts To variety a based extent churn. impact projections the for our can the estimates, Our there estimates cease of be revenue internal variances that

differences churn. any our for reported is XXXX a not and issue these tiny does variances However, aggregate churn expectations long-term from change

increased due carrier In churn our consolidation our America. in Sprint in addition churn, markets, international to primarily to includes Central outlook

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

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

cash XXXX, optimize financing balance to Our cost further to interest our of expense for and any do in opportunities contemplate outlook debt. we for our look and continue not net sheet will activity however, for AFFO

of to strong an and liquidity with And goals. I achieve back we update very balance help will turn things position will their Finally, number our very network shares expect our assumption is Mark, weighted to and now them estimated outlook to for sheet. who future results $XXX as produce very AFFO which active million, are assumed diluted per all share average common based share We're on our excited is part customers in an by about XXXX, build-out that, prices. provide on of influenced over we

Mark Derussy

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

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

cash net coverage the fourth-quarter EBITDA times expense net to highest of the cash Our interest was company's adjusted in times, X.X five -- interest history. ratio

issued quarter, date Series XXXX, which of X.XX% trust, During the final XX, Xth, existing revenue of a company, and XXXX. $XXX of repayment October XXXX-XC, through anticipated tower million an an maturity securities fourth secured the have date April

at principal date notes, we of rate Tower addition, the aggregate billion fourth final XXXX. of million and such well X.XXX%, repayment Securities, of all October the of have the life a entire date Also which a $X.X amount quarter, secured during aggregate maturity average of redeem the principal company Tower XXXX-XC, a years. Xth, paid blended of XXXX, $XXX April and anticipated aggregate date securities XXXX, have date associated The Securities XXth, senior X.X anticipated as Series XXXX-XC premiums with billion through redemption. entire In interest an amount X.XXX% the an X.XXX% and the XXXX. of of repayment repayment which these And anticipated costs revenue as October weighted tower XX, had also the of par $X.XX repaid

rate interest fixed. As debt X.X the rate on our with of of a end debt approximately the outstanding of the XX% of And maturity year, average X.X% weighted of was outstanding interest years. weighted average the is our

$XXX As our of today, outstanding under million $X.X revolver. billion we have

shares average of repurchased repurchased repurchased share. fourth shares at million of $XXX.X shares million of share price $XXX average of approximately year-end, we million an XXX,XXX $XXX.XX. X.XXX of share we our for XXXX, our beginning at the common Subsequent quarter, average have X.X per additional stock an price price $XXX.XX $XXX.XX. million an of Since an During for at we to the per stock per

outstanding The million share We reduction to at of count authorization our All $XXX shares December currently X.X%. compared retired. million plan. shares XX, we million were of repurchase have of the year-end, our repurchase X.X%. after $X were company Pro outstanding have a the repurchases by $XXX.X forma XXXX XXXX, under repurchased stock billion $XXX.X December XX, at remaining for reduced

quarter addition, In per Directors first declared last during $X.XX dividend call over payable quarter announced the we fourth XXXX. Board XX% XX, AFFO to dividend Jeff. on of a XX, of $X.XX that X% March the I And on record business today, fourth-quarter share, ratio cash paid a million as and March dividend represents of With a share. will of payout we close over now $XX.X of of to of or quarter that, per XX. shareholders XXXX, the of of share. per Today's increase an our announcement declared turn

Jeffrey Stoops

again, Domestic continued XXXX XXXX. set translated a tower their significant were number and meaningful well with of results a fourth U.S. from solid of our XXXX both deployment network. per up domestic activities produced We and their up plans, seeing perhaps produced had levels years in the strong their spectrum. steady leasing and deployments healthy. very strong customers leasing have the support AFFO quarter first fourth-quarter, Internationally, for where investing of large produced a months and DISH elevated quarter also brand-new new Based remained the and megahertz categories, throughout good use plan we're to in continued finish agreements we two XXXX, contributor. double-digit services high internationally. services, And record results, backlogs strong to and for up in plans expenditure in U.S. third signed leasing for very T-Mobile both The XXXX withstanding the was remained a U.S. nationwide nationwide disclosing ramp activity throughout of up of the row. level of in beyond. and the expect business. busy continue the and organic customers X.X particularly XG XXX quarter capital revenue we of see percentage remained Mark, Verizon XXXX. over in services market have has results very size and the segments lease the margin lease ahead had We levels highest growth year, record robust several our of our we activity international XXXX. remains into AT&T evening, largest share. XG These in everyone. through into strong Demand we C-band its markets, services up a our this revenue and of and for largest continued results new Not in remains continue strong activity per and backlog Thanks on generating scope both our many remained the in strongest deployment leasing year. it to during of commentary to expect seven extremely we gigahertz signing

XX% and results international up to had leases. strong Brazil, America, amendments Central in new signed through existing we Africa. of new quarter, fourth XX% through the and South leasing leases, revenue We During

early addition, upcoming needed Tanzania. from build upcoming investment organic throughout this announced increasing the customers promise in our our our to about over in this but and acquired on new largest closed Africa Airtel great spectrum terms And and Tanzania, markets. over spectrum In wireless investment, give from will two of XXXX our demand acquisition markets. and to newest in sites the also market South potential we in the not We excited leasing for tower our network be auction well-positioned continue previously we only Significant in has on international also thus of participate are international of XG and years. we believe sites, terms market. opportunities. support XG Brazil will see us In growth the lease-up recent We're of wireless confidence the throughout that auction us January,

number the brand-new we're fourth quarter, and about in for we next few growth the have the sites excited very favorable addition, years. The Philippines. greenfield of first we Philippines studied our a In a that during is built the market for prospects years, over

each mobile operations office, for relationships government the established the appropriate in staff, establishing operators all necessary positive have in permits, with We of strong opening the local market. working agencies the and major a network hiring with market, three

significant you to done results a grow we year, exciting we have very job anticipate happening, priorities. expertise allocation advantage. Overall, believe next several we Throughout believe are sharing initially to will a value forward new will have and and will year. greenfield build give the demand long-standing to focused future of capital be with and as new last for We a internationally, tower significant strategy customers primarily Philippines, the build provide balance numbers We a and we are on in I operation in to sheet meaningful things with we competitive the in support very the look the in and Philippines. tower years. the our an this continue lot excellent market regard good to us XXXX our

a have low-cost rates. significant a year, ahead balance increasing have our number last interest of which meaningfully particularly the of sheet we refinancings improved positioning, with period completed During potentially

at of of fixed Our history during costs of several also majority in maturity The produced lowest has early our weighted at extended locked debt average in and XXXX outstanding refinancing out our substantial company's the interest dates our rate interest X.X%. securities rates.

X.X shares growth leverage X%, the net in the we million to to site portfolio repurchases. capital we earns, We stock. by grown beginning annualized strategy by have have have target portfolio a share continued produced have X over that and of debt of X.X adjusted repurchased Since outstanding our and our to our available and of EBITDA range into XXXX, invested

our a EBITDA, to as results. EBITDA additive per tower and over of adjusted to site flow, They per AFFO been while Today, Year-over-year, XX.X% of of dividend. margins like revenue, cash that shareholder XX% and X.X%, of We have to still announcing on I'd posted adjusted investment. XX%, flow increase reflect result, AFFO our leasing take cash and AFFO an XX.X%. to XX.X% increase able very to We also continue And will be grew meaningfully in our factors and quarterly additional all by discretionary creation. We for share. dividend over believe these a projected X.X%, respectively. moment share good. full-year X.X%, tower industry-leading value were we cash retaining

had reflection macro Beyond history. shine we the throughout year sequentially posted impressive a signs acquisitions and banner million XXXX the towers with $X We the in services company repurchases with higher quality Each Alliance segment, customers SBA our year, and from tremendous following rates margins, in of growth billion the XXXX going towards revenue in little builds, year, that, slowing. highest and new new through of by added Share a predominately share our of and on U.S. Xth, the acquisitions $XXX activity are gross in in flow with respectively over backed seeing million finishing and revenue $XX the through profit acquired XXXX dividends. with allocated sites over quarter in XXX,XXX among results sites cash in January We we're builds, Tanzania. and

our end very year. and take environmental, year corporate of our execution believe combined in that provided environment our give today's release current full internal will I operating operational confidence we confidence. earnings our industry great supports of outlook strong this produce And XXXX and success Finally, to governance social, our published matters. for us excellence and that the at results and we're focus upcoming very year. our on in about second the year. performance report we sustainability excited continued throughout great the Evidencing pride The XXXX in We

thank very for customers their achieve their and operational our we team members all well-positioned goals. and to them we and help are are believe I network want customers our busy, Our to contributions and to with now for our I commitment look sharing ready through questions. And our that, and we with Ryan, XXXX we as the results move are to success, you forward year.

Operator

[Operator Okay. Instructions].

the will open. Our from is of first line line Phil go question Cusick your JPMorgan. come ahead, Please with

Phil Cusick

Two Thank things. guys. Hi, you.

about for So for DISH built-in what's in current -- talk the can just you AT&T guide. and

Jeffrey Stoops

their a going in as will activity too over will speak rolled XXXX. I'll -- AT&T outlook has Well, we're for just Phil, they there can in that they specific, that really that or but one of public DISH quite comments, that revenues C-band level a becomes activity be equipment equipment one-stop we a step-up combine a our midyear, track when X.XX is so to and and available -- which not their get anticipate stop. the with with truck generally of bit roll do

fiscal knowing months history have would I So year year year's results. probably you step-up incremental of any I opposed AT&T, fiscal leasing impact more nine really in certainly knowing greater to from our DISH mean, you for would kind say in the that if and see that this expect first there all that quite a although your XXXX. as -- need to to bit activity the of we in

Phil Cusick

then think should Thank anything about site development, you. we either in back-loaded, terms of current Okay. second, and the And anywhere? I can, if or guide front-loaded

Jeffrey Stoops

at matching of where pretty it's next couple leasing and be headed for revenue up is anticipating least think I will quarters. with the well

current quarter forward So to it's I think activity. at look two a

Phil Cusick

Okay. Thanks, Jeff.

Operator

question Feldman ahead. next with the come will Sachs, go of from Goldman Our please line Brett

open. is line Your

Brett Feldman

there? assets a a period you M&A center as do into the of further that a what a on opportunities still to doing you're your some priority then center those assets? about bigger, for things be in a you don't Yes. now through like bit niche first Thanks. very expansion you We've thinking data tower and few look the gotten is that small might you're mostly mind. that point And thinking of interesting just more seen allocation, going or clearly over the you operating builds, is beachhead Asia in M&A And but peers Thanks. greenfield how of if capital the M&A, data where that I for side a broader as across you're synergy mostly your a space. Philippines, To become and understand that this think between the understand maybe Are for are portfolio. your about get you at you've

Jeffrey Stoops

anywhere coming. Carrier know at Asia, Far in sensibilities, of Southeast strategic anything not world, there's from In be America in mostly necessarily with Yeah. that else the like a that opportunities, think we number we anywhere as the financial And look dispositions its combines Brett. between. or we just North will will East

make, continue using one on is But like to just would portfolio. to every remains be grow, grow we the our priority capital we that, attributes. said that will with decision love having and So its made number primarily is to financial other goal and our it

The second question --

Brett Feldman

Data centers.

Jeffrey Stoops

Yeah.

the going what tower in been was pattern bigger we're there pieces continue behavior have of think clear absolutely not to investment, been are a to of doing there than data great at would activity to We there. yet. -- to current has remaining of see centers really we've But I that, expanded lead big were to kind where force centers. evidence while like proven going terms really you're certain to of it to much the synergies get we'd And that out our it it, site. point data and

for Chicago, to investing be be latter increased that that's will based demands has framed contracted We're to both capacity. the out had. business and the you in capacity continue it's pass very turned good So and I grow We've grow business to the in tenant so demand. actually to we we've It very that the had of modestly. two capital the far the question. going and very, two additional think learn And in on actually Jacksonville your

but so the in not it year. future. where be see far material material we'll -- this so today. it's won't And mean, not So It I good, goes

Brett Feldman

you. Thank

Operator

Rollins Citi, Michael ahead. with please of line go over Next,

Michael Rollins

if and questions good I afternoon. thanks Two could. Well,

visibility you're and of the and demand Jeff, beyond. some picture First, describing the in XXXX

few just of the the rate, expecting there's net what is And the some average should perspective today be a then leverage, the balance target time. visibility different and Just times in curious curious on the of from sheet maybe And years. growth, current on type next of maybe over the then recent changes past. over leverage, sense year if your just just your in investors debt given in current on how's target

Jeffrey Stoops

changed get views -- Yeah, this comments sites this internal much to year. lot and by our and combination around end what of many really really basically in in to to over really be into able that own of customers to hasn't the to about year. said to year's terms What to that visibility, left have be a Mike, going activity their capital they're this our showing. it, what still plans going going are of are simplify And of there's our do a the as are, how backlogs work it XXXX

So about that's it by the confidence what all and sure be us gives end not done will XXXX XXXX. of

XX point about, budgets at really about gross our The growth sheet. good doesn't year. had in think multiple. been, feel while bit the we've still about capital structure balance trading you're way of about mid-to-high quite leverage, looking XX-year, And this terms think and mean, been average the over time. a movement lot rates in impact to talking So over impact a of it done we've allocation a talked It I and seemingly on single. I basis, the the we that we've we basis next that.

where materially an bit far fact has a have But it it the But movement on we dividend caution conservatism up really or and leverage pay do where we now it maintain we've ultimately based if -- points. and XX-year environment. seen more sheet puts little year we today that that from structural so here, anything of us is revisit goes changed if any caused rethink to really balance rate to and the that. picture not leverage want the increasing a to this hopefully The take we're doesn't. So big

Michael Rollins

Thanks.

Operator

Our next question the ahead. please from with James, Prentiss of line Rick Raymond will go come

Richard Prentiss

everybody. afternoon Good

Jeffrey Stoops

Rick. Hey,

Richard Prentiss

the maybe and how week, on do Charlie share the that, [Indiscernible] at monitor some you future it. to there maybe How some do how that in look band, last spectrum spectrum, well. bands questions. even spectrum call X.XX of Dish's in is Ergen ability but other as particularly mentioned actually you guys DoD Jeff,

Jeffrey Stoops

There you are that to allow it. would monitor filings certain

there about have it. owned is certain to the leases all the deploying You lessee. controlled at transparency, But is that only by because and or on work using really a reliance customer talk spectrum

you but you really would our be But would a strength a allowed able current officially, they're not that going particular the it's to of on know lease. RF like without sharing some the not in But for if to that issue. area. some under there's signal figure got on it's each in reason that's -- to out that. X.XX, they're modifications customer's you've through to tower tests tower not new additional based And broadcasting of something as strong be So that necessarily be do signal leases and on equipment terms -- not the discussions actually

Richard Prentiss

international how of in and America Quickly, sixes. in obviously in also be be might you I your up, think being fours, LatAm. I've think instead math that going been we called out should or all the CPI Latin you to escalators on pacing is does we the in where go in the CPI markets think should CPI about But escalators, Brendan? what suggests,

Brendan Cavanagh

based spread well Africa it's done of evenly in. Brazil. a those. South do acquisitions they're of mean, that time I we've our Brazil during couple the obviously on markets. our fairly But and the some year years and leases leaseback and concentration largest in Rick, over have of associated international escalators with the periods are being over the time, We majority otherwise

those today that are not, obviously, will reasonable, So of if they guidance, I we've the purposes in concentration a basic put at some touch conservative. that as be think certain But it biggest best the to are escalator assumptions of for where happens. estimate our maybe point

Richard Prentiss

concentration the those are the in year? old acquisitions. of some of points, to they middle And trying more I'm back those from remember

Jeffrey Stoops

of in the I one and the is in fall. is late spring mean, them late one

Richard Prentiss

churn remind far is us, Sprint how churn can first me, as feeling Can us 'XX? and hit not been or low Sprint as And might the a year one as you you just update give expecting also us in much current Okay. what the 'XX you're that cumulative for thinking is thought. going as right and 'XX have on now, might last to be you're you calendar touched

Jeffrey Stoops

Yeah.

Our before. We range. we'd said now pretty the are million end now $XX that actually based we around year what stuff. our movements talked much some somewhere decommissionings disclosed slight projections we same thinking for in when right the 'XX as or lower assumptions $XX the we've we about in in last on be are gave right of and When on timing just somewhere various it, we're

So of for is next if slightly would projections next still and But million that all, But into million really, that $XX fairly case. the affect to means in our for obviously That's all in numbers shift we that level 'XX expected 'XX. churn before 'XX have year. small at are each of a years. the couple that probably $XX 'XX we've rolls given year, that

which Before we years, our see -- bigger

Richard Prentiss

this After year?

Jeffrey Stoops

churn. and yes, after majority to see the Sprint bigger are which our related -- 'XX expect 'XX years the this year, where of we

Richard Prentiss

week. Makes see for sense. the Thanks next you color, we'll guys extra

Operator

Walter Our please of Piecyk next LightShed, with line ahead. question go the comes from

Walter Piecyk

the clear I was all and a sure you whether you us just that's had give of time market have to do any telcos labor their which impact pretty it. impact moment? the Can and sense me, the Roto-Rooter like I paid the $XXX any has out that think construction for whether to a Jeff, drain last at I'm speed on activities these there of having and double

Jeffrey Stoops

more I information is that than needed to hear. Walter,

Walter Piecyk

believe we our amazing. couldn't It’s it. up. it's was believe of it. seeing has games? guys hard not the some have you to the this that at you the it a a When see on industry I is. how are [Indiscernible], times not in who to operators, think couple everything playing in point we're lot seeing just what do all to knows fucking this. all, expenses The impact look all tower of A the right -- We're go fine. $XXX the on are impact drain business? transitory It's that's is you market any they quarters, and you collectively having big businesses, But services, these it deal that not given the At But meaning now last

Jeffrey Stoops

-- in but some we're impact it I managing we it absolute is pretty And well. are terms, think Yeah. having

what's going on. here's So

So wage there pressure is everywhere.

to business, bid. services this a bid. on In fixed it's the in of on, business, all most So will assuming win we revenue, fees. we're able we that lot and of zoning the generally business. business, is which the which was And work the contemporaneously, though, be year, construction site pass In bid the the that's so consulting

profits we're to So the that it it we're actually we're managing our and okay. margins and the with do going happy I started in year again. and business ago that a outlook implies has very mean, we're over that it producing

the way yes, than process we So some but way, is which customer the work good the awarded. on of to bid it of managing passed gets a happening, because are is through the in it

Walter Piecyk

be think was to that that, lease XXXX say would does that. over it said I is that that while dish mean you term to you you analysis that instead, XXXX to in I rolled mean did a going little When rolled hit in by the thought Phil what revenue was about maybe over? have you hitting ago over that think and rolled used asked you at When

Jeffrey Stoops

leases Yes, the earlier on -- we leasing activity Yes. leases means a The fixed based of day or has those been either it tremendous. the construction. revenue lags end recognition the on

managed we obviously, where us signed revenue and year. this DISH's a confidence over are and for were up, solid gives it estimate year, last they reality estimating we rolled the bit be contribution the leases will into year. this where that's is little But So that, higher

Walter Piecyk

-- My Okay. question is last

Jeffrey Stoops

that Leases signed up were accruing XXXX? been that had in done not revenue

Walter Piecyk

Right.

So better for just visibility 'XX.

Jeffrey Stoops

Yeah.

Walter Piecyk

my in you you prepared I mentioned comments, think AFFO So the XX% of good. policy, question highlighted share. per last Obviously was the on growth [Indiscernible] had XX%

they because think like I Cogent, gets evaluation. there which out a So [Indiscernible] company and the very quarter. every -- increase goes about like dividend like same It's says a predictably elevated

does of Or as result predict just a we kind more yield share? at growth just AFFO XX% look the per that AFFO of per growth sense and what the and as So benchmark should investors dividend AFFO can the then of that is is of the -- share, just then use maybe make a

Jeffrey Stoops

we will grow. No, I think

to grow faster share we growth. done we I per dividend which is do, will AFFO think continue than what have our our

universe. want the And through money Now We low with we keeping payout. started our growth back pay before a and more it's we money of the expand compounding basis, have that a low. our base still that luxury said, dividend, going will dividend by paid because the on believe a we and to yield while we've company make But as portfolio we to repurchases. always Investor shareholders we inside stock a it to

Walter Piecyk

Right.

at then, say, not rather hey, growing than try [Indiscernible]. So to why like faster we're

tell And people yield them grow the whether x that that's bring very just then stock. growth whatever like investor percent, is in just predictable in minimum give will XX%,XX%, to a order can the you all number it pick. -- these rate drive you put the Just want to

Jeffrey Stoops

increments. about We of talked growth a And I think have amount five-year XX% annually. an talked in about -- we've

Brendan Cavanagh

said, been we We've at past, expect in that I years -- the XX% we've by per for Yeah. grow done And least we've the guess year. it mean, pretty clear next several to I

Walter Piecyk

does, need that just to repeat on it then prepared you like I get your every can Dave guess remarks benefit. quarterly and you

Okay. Thank you.

Jeffrey Stoops

Yes.

Operator

line Our ahead. next of from Please with comes MoffettNathanson. question Del the Deo go Nick

Nicholas Del Deo

because since Philippines. you are the have of up. guess, could not a was I'm a or -- market too sorry, hoping seeing the I about Thanks Hey, coming talk Maybe Greenfield questions. years, several describe bit more guys. for opened the aspirations the ahead. second magnitude your see mistaken, a that then Jeff, over more for I expect and about bit first, And it competition the other if little opportunity jumped tower go to codes you into maybe taking

Jeffrey Stoops

but. going was your answer to question, I

Nicholas Del Deo

Oh, sure. Sure.

Jeffrey Stoops

about has So growing. XXX XX,XXX and they people sites. the a have cell And million Philippines

six strong have there think people need where or be smart excel. greenfield will are of there's And from the sites very to think customers and numbers meaningful networks. a to lot our a are a from and it the on the view, of like market of We point stability will have and expand we in regulation and in the history, Philippines to in kinds opportunity ground you the a So wireless five based in is including confidence us, build-to-suit get We those huge them, of to customers the be The only the of I found land point to companies company that But opportunities forward. get who operate And tower we they a themselves that know will license very our tower of with. Philippines. partner to distinguish on view, a or relationships experience, careful of are because XX there going as over country. built. terms those we use

thousands next our the So towers if nice of will think that built And we get business the in I be will for Philippines fair every think there. XX share, years. a year I build

Nicholas Del Deo

Okay, is that's seems, to be not good like headline as may competition first terrific, which it the hear. sounds it and as intense

Jeffrey Stoops

much higher. lower. The folks capabilities, with are The though, numbers real are

Nicholas Del Deo

Got question. And it. maybe then second

here? relative any on what versus observations of stock just thoughts of the M&A and And in You've are XXXX, M&A in market maybe so far some about maybe repurchases trends repurchased saying? the a appeal general lot you updated

Jeffrey Stoops

stock think price -- and rationalization that There a $XXX times I'm And going multiple there are mistaken. in a basis. of more the per not are while share midpoint on the that that transactions guidance, domestic on in I of than selling currently our internationally. that's a a on if bit XX quite number for markets, AFFO some is Based both multiple

every should that we we'll conclude to that want and our continue make that. effort grow So to while portfolio you lead to to do

those stock only relative values to financial price today's at circumstances private attractive. repurchases sense. market it do And makes it extremely where will in We are that

Nicholas Del Deo

that's great. Jeff. it, Got Thank you,

Jeffrey Stoops

Yes.

Operator

question line Williams come go from the of will with Cowen next ahead. Our Greg please

Greg Williams

taking Great. my Thanks for questions.

The guide, terms lighten share up the Tanzania like There's an in more cloud for providers the that on the $XX of the dynamic equipment and [Indiscernible] bottom much Maybe load debate. that the revenue. guys? question top international telco Thanks. how Second versus is just contributed looks being of of Does fray. first unfolding? but the But cloud towers, the see ongoing towers, do how one just for Tanzania? the million in and philosophical offering is you AFFO on is EBITDA at per of you debate about in network-as-a-service not contributing

Jeffrey Stoops

and to is similar will The contribution very from to be EBITDA, Tanzania AFFO. approximately $XX million

Brendan Cavanagh

and thought first your I ourselves, of on And question, have houses foremost, second as antennas, and radios. always housing we mean,

at site, on thoughts to as our our that impacted leases going So really of we really while radio in the haven't seen going movement the doesn't terms there far and tower of antenna so terms business. locations expect that's the don't there. material see it lots some impact compute, structure is We at on really a about way impact, or and least think and in we

Greg Williams

you. Got it. Thank

Jeffrey Stoops

Yes.

Operator

the Suisse. will go Please with Badri Sami from of come question ahead. Next Credit line

Sami Badri

Hi. questions. Thank two have you. I

wage inflation conversation regarding So first had is the one just the you earlier.

if normal. But take of Now, new don't you costs and actually pricing have don't. or normalize measures we if all will be is normalize. are new prices this labor to are the going what operating actually idea level that they and with to reduced What this they

Jeffrey Stoops

can won't. we what and do In really and the is bottom of to our because through aspects line will frankly other compared have pencil in upon do, cases EBITDA take in people to some for plus can is a cases, though these we it. we businesses which something is realize how XX% this that Well, able good fine margin. our we small, the some that What be about of us conversations changes may improve costs do we to always work in where

this thankfully a operate amount of to a little of we've operating that towers. demonstrated We lot be true in great and about continues have over manage and can the and leverage business, years people that

team that execute we'll So we as we have make the always the we'll for necessary changes possible the expense company. field at going have for do, best sure what the levels and on do make we us, best but to

Sami Badri

formalizing more the us telcos prefer the what to on amylase all what they and with are contracts spending And know they to place then new plan in there because maybe spend. some or just for

renegotiation process all? at does fact place So difference MLA there more s the in complex the or are no that make

Jeffrey Stoops

during your employees Not the much you're that the terms sure what? renegotiation life business or renegotiation makes less MLA. of with your of an The With of It MLA? things the got complex the in counterparty of doing I question.

Sami Badri

Renegotiation of the getting, fees against inflation customer, and wage from the you're and MLA, matching the your the relatively price. contributing payments

idea get So an the going just turning levers. just your on to where to managing margin be you're

Jeffrey Stoops

that certainly you issue margins. be focused think you if Well, get that that at at would just consideration. a think see I don't our will all. be a we will something look you'll increasing material on believe to outlook, point, And when I we But I say,

Sami Badri

our can I just Maybe add cash total to that, actual about revenues. of that is our SGNA X%

a standpoint not is from it's So that impact much. personnel

which Our business or largest they also leases, tower have expense have fixed on our ground escalators. our --

about. expense of So an these that's It adjust with can talking any pressures that be controlled. that you're doesn't inflationary

Jeffrey Stoops

don't that might is we're we can aware and really where where it about I that Sami, from go. our you tell fully hope much, and comments, that market today worry the of

Sami Badri

so could them was side, run hoping I guys. are questions get just -- these on that I I I you Absolutely. by just my

or region. -- for dynamics. reason an emerging haven't other competitors guys in of focused market by actually the just the on hoping your competitor you've and be emerging or side made. that rather as investors. -- developing on to than as going well your why tilted seems a there the And you and sticking sorry, after, really opportunity digestible M&A, geopolitical was within I question opportunity seen European kind get after developed from the your share markets. you you there international European and wake do the of announcements a compelling acquisitions Is And take are very is could I to then The on opportunities, going markets, are very

Jeffrey Stoops

of their -- at a opportunities our the from -- is zero. how shareholder market, a about could. and achieve not perspective. are invested just at the will on investors market. who you we than find talked that. value became today is, and you less it we not their at Is European And lot, there. Tanzania, Sami, perspective assets when fact return the competing euros, to markets over of It's believe least over sure can assessment a what could But entirely capital what liked borrow that market number It results we a we compelling years what otherwise denominate and but I'm they creation for due euros, in investment We've like them in those from that borrow an you versus you sure. look Philippines, did and good for

Sami Badri

thank guys, Well, [Indiscernible] you, much. very

Operator

go Our with next question will please Street, Guarino come from the Green ahead. line of David

David Guarino

thanks. Hey,

million $XX that'd that, the I On this domestic you new year, hit record believe be activity of leasing if the a for company.

Just an sustainable forward 'XX want is going outsized that's or you think just do pace to year? a know,

Jeffrey Stoops

as it's far we the ball going And good XXXX, goes be really of right crystal as kind think that's There's too. now. to

David Guarino

Okay.

Jeffrey Stoops

So we not anything, will sit not here may while watermark. It sure today that be tell not and the we making promises guaranteeing that you high XXXX be. -- would we don't were or we're any

David Guarino

then And dispositions share builds? opportunity could have Okay. of you which It's your tenant in their of new to but would Philippines into I going you light that to the would tower definitely bring encouraging. think don't the recently. that interesting several carriers the just -- Maybe on M&A mentioned it, know comment. That back be the with

Jeffrey Stoops

both It's and globe smart.

David Guarino

going talked what's large one are build, the That's on opportunities tell Okay. achieve Could tower about? helpful. us that you yield you you that the to given just day very that

Jeffrey Stoops

Double-digit.

David Guarino

what the other is in it emerging comparable you in? LatAm you're than would or to better markets [Indiscernible] get

Jeffrey Stoops

that's cash flow we're But And a that's on new yield. look comparable. kind putting when tower It's towers for what up. we of

David Guarino

That's Okay. me. Thank it you. for

Operator

go from please Our Flannery Morgan next question the line Stanley, will with Simon of come ahead.

Simon Flannery

Jeff you evening, environment. talked the Great. about Thank you. M&A Good bit little a

this as be February, something debt sort environment or M&A those how Is to hit see achievable You your the of more about last even XX% it is guidance? some M&A still to or that built-to-suit side numbers? in through you grew portfolio are thinking since you long-term X% about my X% more maybe

Jeffrey Stoops

need build-to-suit, pretty to to some a still any definitely would that to the I Certainly feel mark. go and the about still get to X% good number. goal But X% is XX%. We Simon,

We things one in we the we at a that. will work look Tanzania. We out the year. than we And need a to every year year. least that find somewhere, prior workforce. between that deal good-sized to some to lot bit we'll of acquisition towers and do range. do did there end managed built this get a hit like PG&E of that certainly little lot We're around we in going the build But bottom if more

Simon Flannery

Because is on like the [Indiscernible] you mass What Philippines, Is the towers, that about that? in a thousand XXX talked critical large a for you towers? market And opportunity. Great. is market that

Jeffrey Stoops

Yeah. Those XXX, have expectation least so It's in that are guesses. the XXX there in and least and with belief gone at we at we the to that will good get towers market.

Simon Flannery

Okay. Thanks a lot.

Operator

the the queue Brandon please of Capital question with And final in ahead. we line Markets, go KeyBanc have from Nispel comes

Brandon Nispel

year imagine leasing Thanks. you exit second-half-weighted. with say, is the what Could in Awesome. possible backlog lease in would XXXX, predominantly back that Maybe fourth million Is year-over-year two the on basis? new a what that that up in $XX could share you the questions on I new million for the applications, $XX it leases in quarter. of going Then Brendan. was that year-over-year

Brendan Cavanagh

been much. year It's been came a backlog. quarter second at quarter reasonably into up with backlog. and the was too where the get too the least then a as don't but at back began of specifics and We good pretty high it's much a want consistent I of out don't into bit a from last the obviously year the it Brian, throughout to last and to on want fairly it slow second first I good had specific year, ramp to be we that's as of last year. level half

Jeffrey Stoops

of really Well, looked have didn't in you XXXX, backlog who you was that DISH. at if in December

Brendan Cavanagh

We had no DISH. Yes.

Jeffrey Stoops

so really XX. C-band, And didn't have you big. Verizon XX December up December it's to

Brendan Cavanagh

been signed. was the sitting is Yeah, it yet how hadn't I the that much question there time at mean, of

growth million pick growth actual year. at in just the backlog. from That's activity to printed last $XX, versus for we I the time the representative of down that number that started believe the and look you That though on that If was it up. when the to what we percentage saw $XX

backlog doubling then I'm the So sorry, of that's question. in the apologize. almost dollars. I And second terms

Brandon Nispel

I you making today guess million $XX at my sure again suggest to to just looking to at like new that's to the to leasing guide that get new that need the get [Indiscernible] and numbers, the $XX $XX high would million just in teens, [Indiscernible] fourth-quarter million leasing for something you're low a

Jeffrey Stoops

the Yes. commencements. get going based expect that's of when accurate. single we've -- quarter I I and on go this estimating expect course of up to that signed would the right. to during That's what the timing up just going it's every it's No, already year we're

So in are numbers your range. the right

Brandon Nispel

Thank Okay. you.

Operator

further And questions we queue. have no in

Jeffrey Stoops

we forward to reporting as greatly to you for up wrap to much. results, joining XXXX us through look want XXXX. I Great. everybody thank and we move our very Thank

Operator

Ladies your to that conclude and thank for participation. you like gentlemen, does conference. today's I'd

may You disconnect. now

SBA Communications (SBAC) 1 Mar 222021 Q4 Earnings call transcript