SBAC - Earnings call transcript Q1 2022 | SBA Communications Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you very much for standing by. And welcome to the SBA First Quarter Results for 2022 Conference. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. Instructions will be given at that time. reminder, is a recorded. As Instructions] this being conference [Operator the like to President And now turn of conference Vice I would DeRussy, to over Mark our Finance. host, go Please sir. ahead,

Mark DeRussy

for thank And evening, Conference Good First XXXX Earnings SBA's for everyone. Quarter joining you Call. us

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

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

Our any statements we update forward-looking and statements XX, that make. of are today, we April to have no obligation may as

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

Brendan Cavanagh

Thanks, many Mark. ahead site leasing the started revenues Good a anticipate our with cash leasing year throughout continue for Total solid revenues of first were we expectations, to of internal and results $XXX.X the and quarter million, strong performance evening. a very site $XXX.X were off XXXX. SBA with the GAAP million. quarter

year impact currency over year-over-year first quarter cash growth quarter X.X% basis, They forecasted on leasing also last a very again of continued which leasing growth revenue of new throughout of same-tower X.X% is we On churn. year. remained was placed first revenue gross than of and quarter the X.X%. churn. first the of Same-tower of revenues basis, previously by ahead And the were FX for same-tower support estimates to quarter growth the comparisons continue backlogs X.X% representing and million. Domestic leasing basis, was exchange and strong XXXX. which our Foreign a last first leasing impacting the at operational a Domestic quarter, gross on end. $X.X healthy XXXX, on quarter, slightly net million impacting including was application the domestic amendment during on bookings, activity recurring or positively expectations was to contract a first quarter quarter, cash basis revenue replenish of a rest strong These recurring were for our revenues a X.X% new by for rate the backlog, very rates activity over basis. calculated under our approximately domestic XXXX, including first $X.X materially constant X.X% tailwind operational the higher of on new the positively lease of

-- part continue due part inflation we in same-tower organic continued total on revenue the or growth basis. growth Verizon market, And during a to X% again. leasing During markets. growth activity. our climb of customer of to good increased inflation-based Brazil quarter international largest big XX% including up bookings, activity basis, churn was on XX% on had escalators. of increased also signed quarter. In with cash a leasing represented in coming revenue our I'm currency International due very of constant from DISH T-Mobile, to a the Gross leasing quarter, net, basis. AT&T, and constant XX.X% was leasing was The XX.X% solid another currency our Brazil, Internationally, X.X% in of amendment we first activity leases. same-tower International to sorry, gross increasing activity in levels carriers domestic of represented four incremental of new see many domestic XX% higher,

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

tower margins first XX% the margin remain with tower Our cash cash tower in very quarter pass-through impact a the were XX.X% million. adjusted was by in flow our XX.X% international was cash XX.X% mature $XXX.X and flow excluding assets. Adjusted modestly reimbursable margins strong impacted new, International The EBITDA first margin of quarter. of flow tower of domestic expenses. margin an less Tanzania quarter the or EBITDA

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

quarter, segment operating profit. business and fourth record During the produced with our the revenue of results first a services row in $XX.X in quarter $XX.X for million million

business level raised million. backlog XXXX. was balance to quarter this per on activity our contributions continue company's also at continuing AFFO we in We highest increased the our higher AFFO services Based replenish backlog, the even and share from $X.XX, increase quarter our quarter an in history. and the XXXX. our the outlook finishing levels high by our the customers, XX.X% first throughout for over build have of services the of of first $XXX.X was

which million Airtel for to total communication sites continued $XXX.X consideration Tanzania. expand January our acquisition sites X,XXX on from we our quarter, closed and first million, X acquiring of for previously X,XXX the disclosed includes During cash portfolio, $XXX.X

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

the in in mobile potential annual around to sites. continuing closed revenue This on efforts in edge million acquisition our of done subsequent produces Paulo, adjusted expansion consideration approximately and The the annual $X.X and Sao $X.X computing million. of to datacenter stand-alone was a for end, $XX EBITDA. million we addition, acquisition in approximately quarter tower our of support evaluation In datacenter of cash Brazil currently

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

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

includes ahead afternoon's outlook release our full for year earnings now. Looking updated XXXX. This press

expectations with assumed. million. have currency previously These to have key metrics most contributed prior outlook quarter rates an our $XX from previously exchange These outlook outlook We outlook FX increases our approximately for release. than our for $XX we approximately increased partially due revenue provided revised our and earnings of the changes to increase of EBITDA foreign million adjusted our better of are

one site $XX the primary acquisitions for telecommunications In impact due withdraw in Panama, to outlook increase million cycles Digicel currency our which constant compared after was on revenue domestic of longer several increased items revenue addition, voluntary as during liquidation a and CPI-based in miscellaneous we estimates, to the Panama. is by international result contributions offset initial churn onetime XXXX from to of customers Panama, midpoint reimbursable a basis. quarter, factors, partially escalators, that apply by in have for higher leasing our churn from as announced decommissioning increased market the of This higher lower of completed including and and April they all Panama. during On and X, intend SBA's

this the increased place have the number projected over very our Panama that developments the the churn there revenue as have are last impact to two our in coming significant year of business loss churn in revenue issue, months, steps for in we balance there our $X account take leasing While of the for were likely year. outlook. from Notwithstanding a over resulted and a positive by one all approximately many to developments XXXX Digicel full increase of noted, months million

The of for our year of both leasing and us In to the over midpoint business we mentioned, midpoint due our benefits per our just outlook backlogs. full share leasing has $X.XX. first by services quarter results strength services continuing of very of revenue addition million the our our allowed $XX raised also AFFO strength to to or the raise strong by and outlook XX% I the

full any beyond XXXX assume share acquisitions assume not those does other those also does outlook the outlook completed further Our any today. than not and under year of contract repurchases today, as

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

any and expense Our AFFO outlook contemplate financing XXXX. cash for interest activity not in further net do for

opportunities on will position our to will continue will With provide things liquidity over to sheet. to we update turn However, sheet. that, look balance balance and continue our I to Mark, who for now an optimize

Mark DeRussy

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

ratio capital allocated target, to within debt of Our X.X times, in first quarter. notwithstanding net leverage EBITDA the well was annualized amount a adjusted substantial our

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

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

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

our remaining previous in fourth All plan. per reduction March have to quarter, approximately to we price repurchased these average disclosure the our for repurchase repurchasing an X.X%. at share Included per of repurchase of for share were authorization $XXX. XXX.X $XXX.X shares million quarter compared earnings the million, billion at shares XXXX, share subsequent We During XXX.X release, under million buybacks XX, the million company's at XXX,XXX shares average a retired. stock were of million common XXXX, $XX.X March $XXX.XX. our million our shares $X outstanding in $XXX.X X.X of of price at is currently stock of of XX, The an repurchased amounts,

declared an today, which In announced $XX.X record of and quarter, a share, on close XXXX. $X.XX second on Board over our of the Directors May shareholders of year. It's during call share. last paid dividend Jeff. that XX, over XX, quarter dividend business quarter of cash of increase first now with the or the turn June per $X.XX declared to And that, million And XXXX, we a addition, second payable XX.X% I'll is of per of as we the of to

Jeffrey Stoops

Thanks, Mark. And good everyone. evening,

with generating start strong we heard, strong AFFO you results, and percentage very the year again As have growth double-digit operating per share. a in to financial had

with set us Our balance year. the this better-than-expected elevated continued have combined customers for well of activity with results levels up our

deployment The We actively of new And full on Verizon T-Mobile upward continued megahertz gigahertz their are have outlook increased for by $X.XX. we and positive margin AFFO in also levels revisions XXX per by results year revenues market with are increased their XG remains currently in. support signings our nationwide indicative build-out. and million environment services C-band-oriented These for U.S. continued the X.X share where the their of the particular customers lease of in $XX DISH bands. record during we deployment revenue signing through us, in particularly the fourth and signing Each of up up network These generally meaningful deployments. of spectrum and remained produced and a strong. new services new U.S. investing carrier row. XG-related spectrum. nationwide quarter, focus activity of drove U.S. leases busy their and agreements build-out with our AT&T carrier results quarter amendments networks the

for replenish also new expectations another organic strong in of Our and our most and our strong continue confidence finishing activity ahead of to markets. we performance. had build continued leasing tower support quarter, Internationally, internal our in backlogs

quarter, XX% escalators markets, this our many with leasing due to leasing new XX% of in years. Coupled organic the through leases to indexes of international revenue higher of activity in some During and through drove international we consumer new leases. existing our up increased revenue signed growth first amendments strongest price

to operations, continue off backlogs Philippines. We start Tanzanian are tower and our a to also build new new integrating in sites the good and we

deployments Brazil. hub datacenter internationally, computing for have addition, will Overall, Brazil. on In happening, things carrier datacenter some mobile and edge good more lot in a can that potential in very continue tower believe acquired will new tower a XXXX we based as this explore Paulo our we exciting a we recently believe act allow customers We be Sao datacenters fully for year. discussions in to and C-RAN the a of with edge to of we believe very that us

able in maintaining to our our to first quarter, execute and to invested the times, strong leverage believe our to to capital increased performance target more were as rates. our asset regard debt of well at to repurchases. adjusted of addition our during while in dividend our X X.X in continuing all-time of largely at EBITDA continued remains also our to sheet average investments to these and In significant low while X.X meaningfully leverage range and We of during our well with we invest as cost critical time our and operational broadly stock fixed net of We weighted ability We make balance times, business significant this additions allocation. is right debt the X.X%. interest middle current increasing manage

continue We are well but any also weather to positioned kind our of to grow macro environment. to challenging business,

against the blocking well. We are be very story keep start will my and of as to to year on a environment. believe brief similar our quarter, tackling very first part excellent very increased our to believe tell the I demand results the pleased and XXXX. going with comments outlook rest our strong I'm the I

in are history. time at during we financially more than our a are industry and increasing any a of in healthy great growth, We time organic

We success. that, forward And Cusick balance and Instructions] we Thank line have want with thanking goals. great of confidence ready we'll the go to by helping Colin, customers again to sir. to And their are and for our the in team ambitious contributions our for I to members [Operator achieve year commitment Phil questions. their finish the look now network of JPMorgan. with you, our

Amir Razban

Phil. Hi. This for if is may. Amir Two, I

this lower for So expectations you guys mentioned churn year.

with expectations you. indicate have the changed? guidance? You us leaning datacenter And and long-term on churn revenues then merger falling into opportunity? your within Sprint how the Thank Can update compute timing off. of is you the does secondly, them for And mobile is give reconsidered maybe of edge kind this acquisition an more T-Mobile SBAC the

Brendan Cavanagh

shift on question, What churn expectations. we you're slight any Amir, in is Just, don't a seeing timing. our real have to long-term the changes

those but just bit an ultimately, year, expectation a next less dollars of incremental So to little in would move this year.

the year same So what terms of the in before. been we've each past expectations as in given out it's generally is

Jeffrey Stoops

Yeah.

direction to And the of datacenter and about the encouraging, have that the an will I and so year. and and our far really change would what will at in edge help On Brazil. with for, believe be value to that trajectory And question, there. around look I our as going think albeit in our interactions modest, we think And these we think that least continue at us extension learning I I this mobile the international get to in guess, we're customers. at U.S. no mobile market, benefited say value create that will a talking would datacenter been edge it's tower are now results our we investments, we continue are our largest activity, sites. we've it fact created doing or

Brendan Cavanagh

And too, it guidance, is datacenter. in the

Amir Razban

how are for you view that? versus you -- do I Okay. CoreSite Great. Do And think you that AMT of that has if asset more, prepared one you like could. them? do How an kind

Jeffrey Stoops

remains it And tower Well, mean focused be we're edge what? I the I that's -- site all robust seen prepared to at business. the what all how it think for on.

our perspective, is that think right for the from approach one So us. I measured

Amir Razban

Great. Thank you.

Operator

go next, Flannery line with Stanley. to And the Simon we'll Morgan of

Simon Flannery

impact wireless densification And those outlook do coming from Good momentum thanks builds, you seen strong if you think the sustainability of And in this. some relatedly, over both fairly and hear years? results. sharply. that commentary? some Great. all year How think the the very T-Mobile that We've their of could afternoon. heard about this their wonder how falls and you Thanks. do the medium-term I of given might comments. business. some perhaps peaks your we've Jeff, Great the CapEx about fixed talk for of then to Verizon

Jeffrey Stoops

Yeah.

in I particularly think it in a is over keeping Simon, going mind to that clears be endeavor, multiyear C-band years. the phases

face customers' work tell going be deployments the really to can endeavor. though, be only C-band can going take ahead least side C-band place. lot their there's done. where I still comments are be have there's So our multiyear in of years to at It a multiple of just are And I a to at things, to take on you, infancy. value. that they deployment

be is the So -- one I'm to It's other -- the spend the fixed area there. impact signs by all, and really seen if is the mobility impacted, not spend. fixed sure and the product, how wireless don't mobility is primarily that the at in product, a going location-driven I success will wireless initiative obviously, we've not that a but any

Operator

next, line Raymond of with go Rick And we'll Prentiss to James. the

Rick Prentiss

international of I comments everybody. Hey, to the churn. some follow the up want Thanks. Good about afternoon, on

year? Panama. You for say roll about Digicel into of on mentioned We've far the year, seen that's that some How like It Brazil. the to releases. the tail are going as update next you should hitting though, looks that you called obviously finally next this much us of And us pass of we as rest what's coming should a in year? with if transactions kind think much of out press How lot Oi. impact

Brendan Cavanagh

Yeah.

So represents quarters. churn incremental about three for of million Digital the $X

So million we some additional, there'll digital be were year. another were issues. just as this churn having already liquidation, they into There's obviously bit already because they a couple of also previously, because of little certain some assuming with Rick, shutting associated not down probably were dollars next sites

extra So next that million there's $X into or addition so probably would flow year. in an

Jeffrey Stoops

Yeah.

plans all each recipients and got remaining it But the Brazil and conditions were the on capital great what mind is where however, got in to closed. three or answers now sites. the Vivo with we the some to regulatory limits. Tim right prepare Wireless that also Only some ready parts was or their file interest That least done already those Oi sold winning in spectrum, happened because with the time and of We'll and released bidders limits regulators have need be in watching deployment stands Claro sale And yet. prescribed the got at be all restrictions the now and Claro, cell spectrum keep cities. On around the be. has on has that to Mobility. They've has major TIM auctions subscribers. approvals. all Vivo. XG and Oi with some some situation, at various Rick, to will put been the and not They've filings

Rick Prentiss

seeing And think they CPI get far as also, should in escalator is in benefiting currently side? -- Okay. and also at cost What's where often updated? obviously, are it us of Brazil we about CPI just and process And also escalators. on the guys? benefit just update help might how the -- How as there Maybe you understand line where we you on Africa. head? anything where South time at is the the But where is you're

Brendan Cavanagh

some But now at of us X%. leases it's our on that the individual really time a the in There the in right believe, of like about date that. Brazil for right the time. to are that now. fourth some the individually and -- timing It's each acquisitions second we looks really, year-over-year quarter. is basis point that just escalate. for a of the and CPI to anniversary did. function CPI be to the The tied Those lease actual tend And what The of closer the quarter I XX%, the in for year is when to rate went concentrations than because average higher larger

Jeffrey Stoops

are which Keep in side, Brazil, single ground largest pass-through component in item. leases, the Rick, expense mind on the the a are

way the will of But point are laws written. against we labor on of impact Where the see protection. leverage is, is are business, So the we percentage costs we out employee again, have that likely given that the Brazilian would that, in the operating see because the I revenue employment of the small. course, And side. extremely to

some absorb have great So be employee-related increases. CPI able we to any elasticity to

Rick Prentiss

good a for Thanks Have sense. day. Make that.

Operator

of go David Bank with Barden of we'll the line America. to next, And

David Barden

the 'XX for And for margin Hey, activity maybe the guys. then questions. With piece remaining on second revenue for Mark. as X% a impact the We've across whether probably healthy net the net were you Brendan first capital, you updated the and business change guide, of the rest in kind incremental and year movements, a mix, service outlook. are of Obviously, in margin, the see it's variable And of us taking do it's presumably stage, you headwind give be one guess could on what margins rate would earlier on the past and the the Thanks to just rate going? for debt. curve? that Where guidance respect maybe in the that I talked kind to more is the you, pretty what higher expectations in board. or is where originally sense we in later lower labor-related more margin. stage about human baking

Brendan Cavanagh

Yeah.

On the drawn an slightly revolver under the impacts, impact or that primarily increase more of our of the the we've one, two, during spend year of incremental with incurred CPI the have in assumed is some course just associated rate to: being due contract. rates; and

you driving guidance, a bit we CapEx we did increase share if guidance the our is gave. requires and little changes look weren't CPI interest that, So a bit rate that really more and with cash along there's it's really Otherwise, the no expense so capital little that in that. that increasing. that That's because assumed up have that that before repurchases floating to drawn it's the at we net our

Jeffrey Stoops

Yeah.

relative happy of mix the acquisition where that come where good, construction those are driver is our very of the margins the highs. margin It's has are much of with so history experiencing -- it's higher-margin of we segments although really maybe issue out, has the site services, segments all-time business. lower-margin very been pushing not between really, performing. both and Construction very, margins services biggest each we're we're But segments. in acquisition currently the to Dave, tell two. biggest again, business. Site been services, the our a I each the On you, though, mix inside two historically will the that the

services quarter, given ramifications big our One lower-margin on of of a business, the fact impact that it is its margin. EBITDA though, the is a adjusted

are wondering revenue we that quarter, amount this that those booked for is why large this of you it's really because of of it quarter. where services So is the who

David Barden

helpful. That’s Jeff. Okay. Thanks,

Operator

Deo And MoffettNathanson. go the line next, we'll with Del Nick to of

is open. Your line

Nick Del Deo

for Hey. taking questions. my Thanks

kind turning of their any you've the and the Brazil the to they've about all conversations back behind anything with talk can First, situation, assets expectations? that think they're Oi at acquiring? are laid have to the you they've And initial of TIM goals I those invest plans customers? And been had about your said least out consistent for about site talked that, at decommissionings, has with

Jeffrey Stoops

Yeah.

still jump mind in here Mark, which terms sure make the I think numbers. aggregate of the I of say -- and exposure, we're right the in same

Mark DeRussy

life over exposure think $XX is million is. what to $XX we million our the

Jeffrey Stoops

Yes.

So changed nothing's Nick. there, really

than have a we in time complex. migrate think. to more the takes actually people sites, U.S. what customers more As seen little decommission that a and little It truly it's

be active carriers Brendan comment. get We the be this will will looking Now timing that's timing progresses, deployments. ultimate amount expect spectrum we specific don't what do of think -- a said. have point. don't We But we from year them as instructions any with final really and just really they the will numbers are that other varying that, as we the on -- now the clarity the on But nationwide the degrees are all new side, begin X we to to at. more

Nick Del Deo

datacenter okay. to then That's maybe turning the And topic. Okay, great.

learn is assets feel you're a about Do described to about to of buying in or currently something geographies opportunity. the Or number doing more datacenters you size some that? think, date, you've edge like sufficient you expect like own the goal? I the the up what learn maybe to should you in different different future to pick U.S. in fulfill business, we or that

Jeffrey Stoops

Yeah.

would more I it think mean experimentation couple direction, a continues it to value, don't and would close you process I to think, I won't point to not would impossible buy -- ever us datacenters, but learning in to we move don't of be get where as see ever believe. I the our see positive enterprise X% get a

Nick Del Deo

Thank you, helpful. that’s Okay, Jeff.

Operator

And to go Michael next, Citi. Rollins the line of we'll with

Michael Rollins

good afternoon. Thanks and

the as curious in if results merger as me the from question guidance the in Sprint was that what's within for First churn quarter for was, U.S. unpack the and first well could T-Mobile XXXX. you

Brendan Cavanagh

Yeah. XXXX is now $XX million. What's in the approximately guidance for

I year by $X $XX we think we Obviously, our number million. told million. you lowered had previously full

know The to of I before me we then. if you, don't with on back first done and quarter get let I'll check -- that you that, and are call piece mention the

Michael Rollins

Sure. the you're And then just thinking about year domestically. as

higher you're Just that like you the to guide. the organically the that X.X% relative growth in full it curious as ramping is, I'm I did that XQ about right it contribution. how year X, If thinking you're think Slide possibly net calculating looks a but year for full numbers looking on for about also amount, with churn

about moving full and XXXX. and may about and what thinking year kind year through thinking layered in be how just just the as contribution growth of the AT&T you're growth you're the for the So that that DISH curious net expectation for

Jeffrey Stoops

year. we the get as Well, number, through to the Mike, sequentially I know, Brendan, know expect I the move net, grow but we that to gross you could

Brendan Cavanagh

Yeah. growth expect up sequentially. We the do to move

to our churn shows but timing some move expect the sequentially on there's the indicated quarter and are churn, up that increasing. our off by node as also expectations that expectation during what's our guidance it's the We potential year. the shift in Obviously, first here, around

through the the going maybe quarter-over-quarter to increase, will modest increase be a So year. flat net modest

individual to we I of don't mix. terms get think the make mix, up the into In carriers the that want

contributors -- new in the last agreements. quarters, the of there I the a think we've been their lot of of that few significant pretty terms a clear past on in lot lease-up, one the was DISH of

they obviously, of contributed that to a nice carriers the activity. have lease-up all the be So but component growth, would

mix. So all in they're the

Michael Rollins

the -- the leverage of to Or think terms environment rate a business, do for view certain level? be certain longer-term on when have you a is thumb to the about and does a targets rule your less leverage leverage we how And [Indiscernible] of level the dependent within in of rates

Jeffrey Stoops

Well, would would pinned at different levels. beyond be be. I our ratio, clearly, to level looks rate that a down EBITDA leverage -- don't clearly, what be is. dividend to I dividend, growth would But our there and Mike, look payout a which get looking and really much on that, want there would what at which -- how at we is we're rate But our

absolute I some it So for we very was I basis, everything mean do are into should today, leverage if into time, our take interest But where an long course, taken higher it and be targets. that periods try thoughtful mean us we going really sustained maintained on materially be were would cause that will and be to of we account. there and account revisit than rate to thought be if of

Brendan Cavanagh

And before X% million impact up your me of quarter. how in follow the on back much the let question Sprint $X of about the in go, you over quarter, first a X.X%. so It approximately little Mike, was roughly

Michael Rollins

much. very Thanks

Operator

And next, we go Sami Suisse. to the with Badri Credit line of

Sami Badri

much MLA like? of on actually of MLAs that customers color sign kind you those in the more activity normal more I out an update is color the MLAs of get little the versus Great. Can little of really give And could on bit of color on use just a I think out looks how versus Thank what bit mix little of MLAs. into all to just us with a those bit wanted them. you. a falling or we'd maybe than same what

Jeffrey Stoops

MLA. XXX% MLA I we that somehow touched think for have is with every customer an it's by the Well,

of a that's And with covered of and Verizon have situation some some it's don't we So per not DISH, one not and it's carrier. AT&T. then really It's T-Mobile. where

Sami Badri

-- And Got it.

Jeffrey Stoops

our clear, They're a broad just and be from on still MLAs, open-ended though, specific activity And specificity. not based those equipment just are thing. customers to

Sami Badri

it. Got

other The gigahertz the quarter, view? thing stated spectrum last Do still hold incremental you that is, C-band. that you to X.XX would radios require

Jeffrey Stoops

do. We

as which Although out at some know an on integrated they're come I that will working one point. well,

Sami Badri

type because there work right, be Or out now that? the does on if it. of riding have then negotiation for -- to separate an integrated bands? different is amendment just still Got And do place different just spectrum came take clear, scope that with they're two they on a radio, if they

Jeffrey Stoops

how based what coming Well, the a, like off, it wind look if that's not, swap. the load. we is be weight, accordingly on stacks it's equipment a and If to: height, then by it at driven it equipment looks up price will compared primarily would anything and

Sami Badri

Thank you for color. it. the Got

Operator

go to Greg Williams next, And we'll with the line of Cowen.

Greg Williams

the What this you landscape multiples activity? and by labor Are current any given or in look question revenues. on up environment, seeing with multiples and the geopolitical environment like, rate private record just logistic generally? the record rising service bottlenecks keeping region Second the

Brendan Cavanagh

Greg, I question. missed first we think your

didn't You off. the you of were cut -- part first that --

Greg Williams

Sorry. like what The M&A landscape, multiples are the through looking regions?

Jeffrey Stoops

Yeah, they're increasing. not

the interest So are thankful that effect environment rate we're a is There that's prices. on some depressive signs for current to -- that. going have

current Greg, know, it market takes As through while you market factor a for conditions private to sellers. to

However, it is rates impact headed will and think where, should I price in time. obviously, that over direction

today, supply we jinx but impact labor, the things, business. material On or the as our for the labor don't side seeing supply of I side any of are not equipment want chain on either to side and

Greg Williams

you. Thank

Operator

line of Feldman Goldman Sachs. to Brett we'll next, go with the And

Brett Feldman

for a Thanks operator. Jeff, history questions. the for tower the is Great. SBA's of majority vast U.S.

change if to it. business enough long fixed environment is wondering in what we've any see you about have I'm generally, an X% going escalators, range But in today be. you not that's long-term which inflationary for been think, circumstances low I how obviously Your the and were who exceeded your the the And inflation. or maybe are on impact think to to knows view

interest just to example, maybe a an I'm you CPI-based wondering, finally between any So mutual model leases. moving customers escalator carrier there in and your your increased as is

maybe acquire doing escalator? in still suggest the changing? an to towers you is we're do we that doing increasingly line develop preference at the Or CPI? bigger model and escalate to likely change can remain actually are you. environment, are if where you have may you the that that historical you build-to-suits And in this just could U.S. in a and If can see inflationary not escalation environment, picture, with a that in Thank for invest actually continuing that outside

Jeffrey Stoops

Yeah.

mandate clearly, I one think benefits sides. state number though, to other our temporary inflation and has wins, loses, a very the less. with condition. time, a think this, as Even one a over both but like certainty customers, party escalator the a a issue in the escalator, where reduce of I'd And Fed with X% fixed to back that's of fixed year characterize Brett, or I the kind

the I big the whether end don't year, ground person they're either leases very really inflation that on be you that, leases, of on if very, know that not our to really around on the us a So it's side because happy. customers to tenant there's of a lot going CPI on have appetite or change

think U.S. we're economic are going kind state that CPI with any consciously I will decisions don't So making decisions we currently to trade get escalators. currency relative traditional world -- we belief it because higher this be markets, to inflation the theory better pretty the with exists. think And as I off. satisfied international in those if The the there's is of is of

internationally, we of and in the find do to enough that really creators have to to don't why U.S. over we value, allocation things a target which because a of capital to is is some and leverage, The motivation. international very U.S. go the the will we have we reason we is that, shareholder think be found I good internationally favor So to our And a that able we do very, continue one and think reason think been principal primary

Brett Feldman

so believed in to U.S. could was typically just quick believe rent the your any a see understanding? reasonably fixed in X% the see we the the escalator. a kind is I at clauses ground follow-up If that could question. coming on U.S., right that the mismatch similar you X low side, what I the we've tower over point escalation ask quarters? on of Or Is what

Jeffrey Stoops

no. escalator. No, average we've U.S. typically every a matched escalator. is has off -- tower say leased average -- I less tenant generally, our substantially, generally that they And mean We've fixed single than ground I when

of you flow feel and cash and course, to -- of So line we expense ground the know that's is getting leases. source our the tower single largest

feel protected we Brett. pretty So there, well

Brett Feldman

Thanks.

Operator

of And to go with the Piecyk next, we'll line LightShed. Walter

Walter Piecyk

to going Brendan. Hey, I'm first send Jeff, to over question, this

went for the X.X-X.X low, that for like much prior I was back, to a lower business XXXX unless quarter. rest you if several I when number? that's this than a were I You guess, years. $X Is up seen it second for Maybe sustainable million. that I was a quarter for rounding think, or just that said we've Because implies, question two find in Sprint couldn't churn there, domestic of a your churn that rate

Brendan Cavanagh

I that's think I No, don't about than Sprint mean X.X, lower -- And mean I -- I been actually that you that. lower. what's maybe if -- much I we've so the we've piece. it's don't think X.X% left is been exclude

If you below between go where lower. that back usually ago we've X% X%, and of X%, somewhere were years a in but historically sometimes we couple been

don't think So I abnormal. it's

Mark DeRussy

Well, The numerator in quarters that flat of couple is calculation, for which a it's as absolute has going a percentage Mark. been is down. dollars, the now, --

Walter Piecyk

-- Got But you.

Jeffrey Stoops

I think there's a reason. different

kind includes gross of at looking historically -- included kind churn. has churn I is think, of you're the that always what some Walt, consolidation

Brendan Cavanagh

we've had Yeah. churns. Clearwire. and Metro Maybe Leap that's We -- had obviously, iDEN-related

Walter Piecyk

you something -- numbers, all always setting far say. at core look churn -- years you But never don't Maybe which like core, in it's out I don't you've report, you these as can that that you Because if as passed, really low. had stuff, broken that actual been break you're haven't there. reportable like saying, I'm was low

Jeffrey Stoops

have include apples, you Sprint. to the Apples to

Walter Piecyk

think which CDMA? Sprint I that I this ballpark. if you you two you question, pretty were to to at mean, look point. I up was is at off fine. see? you're Like $X really in But that delay doing Which obviously, million $XX mean so some million -- think going like it have still -- year was is in step for quarter, part component of turning my the second last is that's just somewhere the quarter a that you do year,

So QX expecting do no step-up you but four in step-up, a is not larger QX, are you it's think? like or

Brendan Cavanagh

up move We're year. expecting we a throughout larger the step as

builds dates everything and I on just it's when I incrementally, leases it up So else. time. think stepping But dependent just over those because termination down, mean, turn really

Jeffrey Stoops

increase that possible quite quarter. it's you it each see And succeeding

Walter Piecyk

Okay. And same then for just colo. basic amendments question in

think target something a sense kind Or year, to the whatever saw quarter. than the here? from I going maybe when see it's of bigger material you sequentially linear step-up to Any you're imply is XX%, a what from think XX more You first be in step-up much That think. on we would going quarter-to-quarter? somewhat for do

Brendan Cavanagh

next even step more third but be then going fourth the and is mostly quarter it's expectation second half the further step-up of I There'll No, the into material then modest up, Yeah. think year. the our to quarter. a and in into

Operator

And David to next, we'll go Street. Guarino line with of the Green

David Guarino

to today. to transactions you the Hey. sellers. Jeff, terms I really that increasing, benefit we've going recent MNO deal few but appear And aren't mentioned rich the back to that fair conversation, they're think multiples M&A it's say on a some seen

deals So at to if now your competing bidding guys has that wondering all? you you caused are that adjust I you help underwriting just aggressively. us your how for was And understand more could peers are

Brendan Cavanagh

-- our what we'll deals, aren't done, and really We at a different see about, what to when we've if look David. just big done, strategic But about I if of adjust the exercise it's same benefits you for fewer may we've of understand don't we bunch the We you underwriting. we No. like do And great what think history discipline. in particularly our There them as value you being we're countries. creating shareholders. of continue

going X% goals. operate but get enough more growth and to lot, the way. XX% characteristics each portfolio a And every are lose we interested satisfy We and that transaction. we much goals financial to And to to generally continue we're of in our investment

David Guarino

like Okay. any guidance the and eight for below on in forecasting rate the year. year exchange gears full got current That's months looks the real? in your conservatism is, wondering rate helpful. we've your exchange there the switching 'XX guide. Maybe I It was is is left Brazilian where

how know, think I just So forecasting do to guys you wanted exchange rates? about

Brendan Cavanagh

can I will thing of typically sort published that average the would assure forwards that institutions pull of Bloomberg, one projections. the The David, nail but use what I wrong generally are you a very some of number the negative, positive don't We whatever is that wrong whether we to to assume. of, hard we you be down. on we'll will from be or know it's

experts at at X end what even are is currency numbers together, any to last the the of relative weakened given the days, time. of the use the week, which kind But just we So put in saying our dollar. seen last we've we since

it's little So bit a closer.

Brazil, X:X. at balance look you ended if XX for or that is that. something I basically, our And essentially -- the assumed year think you X the average like we've it So of today, up

close fairly the rate it's is. So to spot what

David Guarino

appreciate for that. I thanks and the Okay. email,

Operator

to line go Wells Eric of next, we'll with Fargo. And Luebchow the

Eric Luebchow

Hi. squeezing in. me Thanks for

you if they I they're originally what could talk wondering DISH. mean it be. they you're expected seeing they think to from So behind about said six where about publicly months

more Thanks. across for seeing equipment So broadly pretty an site year. portfolio with just you construction broadly, impact or under the your hang markets? it if outlook wondering of the Or either distributed actual contract on your certain assumed when And leasing just is concentrated they their date leasing then have are few them the today? just would a much your in

Jeffrey Stoops

you to And once revenue tell bit -- milestone the is art. at or broadly level actually that construct at guidance synthesize the of it a a with really construction into recognition activity us begins pretty the an distributed. a lease and and that DISH is have it's where turn for And signed, that could is date certain. do all we look either I a

degree that So around year, greater there'll move most But certainty. for possibilities part, move through the be with things things are a known we there. the some as of

part, some most there's the But pretty about feel for we So good some for DISH's opportunities contribution. pretty, movement.

thought very, being period. with actually repeat of six-- their internal for, active, regulatory for be busy would would rolling obligations. they mean a than I by I I is think, which satisfying that's continue about but be XXXX now towards we've busier very part we driving said goals us and to they're them their hard own comment June very And they XX-month your what and projections, better maybe of terms the the year, In behind

Eric Luebchow

Great. Appreciate the color.

Operator

KeyBanc Brandon And Nispel the line go of to with next, Capital we'll Markets.

Brandon Nispel

Then quarter? you was was? the flat Okay. in comparables up Great. then Maybe secondly, of one question, exiting you sort Thanks. would had low is X.X%. into follow-up on you what run this following looking Could $XX.X third the at just Thank number think lease quarter, growth you like and And that looks applications it two, this What a that though. rate for you the million And in U.S. up to still million Do on a get like? Walt's growth quarter XXXX? that taking about $XX rate if that reasonable organic second what can backlog held share look this year? to we number that questions. of

Brendan Cavanagh

Okay.

on amendments. leases they depending backlog may that pricing exactly question, sometimes do the for On how be to at clear negotiated. of Obviously, for and just we be evaluate has what applications the the pricing backlog leasing number vary on our to and new looking we're business,

dollar-based. So it's necessarily not

number I the is I think can't up. applications So of --

say we what up, to. it's when So referring we're that's

So last lease-up -- what really a if it the you quarters. the for I can't be the few were would same give

by the On of the low-XXs to leasing we the think quarter, question do year. the the we in dollars can get end fourth

on will what As a of partially whether number for be run forward remain fairly going rate to which strong. be. levels think year's I today, would that balance comment we the is of activity will this dependent year, as on can't But next

Brandon Nispel

Okay. Thanks questions. for the taking

Operator

of And next, with Matt Bank. Deutsche the go line to we'll Niknam

open. is line Your

Matt Niknam

I could. Just if two ones, quick

like several Thanks. the growth to And annual M&A. end can the I located ratio, mentioned on in I of the payout dividend get update payout years. First, in time? expected color you talked you close? Any still ratio they're to quarter. you when they're I think, know to as the where you're sites under And about you've that you'd and terms share mentioned, of of under that where in XXX contract over acquired I next of XX% know then secondly, on release are sort know of terms XX%. the Any

Jeffrey Stoops

that has plenty the our we opportunities, well. I because setting -- have, gives the of dividend Well, the we we and shareholders us which think allocation it like low it served really think including including execution stock repurchases,

want So in to of low -- we why we continue an be level. but terms at same is time, things to leader industry at to the growth a which start set Matt, dividend rates, our

question? years have it's drive the XX% materially of two What set the we would -- payout the the at of a So than your those think really, you kind which XX we will where was but room ratio, dividend increase less to forward, I ahead. a ultimately in first lot of balance going dividend agree

Brendan Cavanagh

M&A under question? to and some international. more It's largely international. is some Was contract domestic mix. the There there

Matt Niknam

in region, color you share can possible? of Any terms or country if

Jeffrey Stoops

markets. existing all They're

Matt Niknam

right. All guys. you, Okay. Thank

Operator

And line of have from Instructions] the do question RBC. [Operator with Atkin a we Jon

Jon Atkin

other about types Was of interested little infrastructure. in talking a bit

the There's on non-conventional Thanks. but kind did deal. You segment? and towers opportunities that you within macro rooftops, of see PG&E

Jeffrey Stoops

Yeah.

continue to a We Jon. pursue of variety different things,

indoor a DAS We business. growing have

out We have a of where business venues telecommunications infrastructure developments. growing connected we in in the and kind get new actually build

tower material rooftop added And we we seeing at stuff on I three are, intents and macro continue and And tower are capital for that areas we anywhere purposes, them None we're some of datacenters. while business. look picking have that We picked up near compared believe future in for return foreseeable for sure. scale will a basic good areas, will have to now comes these the mean to are company. time. invested that the all all and sites macro we over being to we close

Jon Atkin

like lines, So transmission alternatives rooftops, utility?

Jeffrey Stoops

buying We're rooftops.

cable. are We -- occupy than of small foreseeable results a much none it's future. basis a of on the to in big and financial outdoor our material it areas portion is other playing where rooftops. fiber, to But the We're cells point going the pretty all in developing undersea gets

then, otherwise of are the pursued And the we engaged well, macro So is, should be, to by folks who because are years, in who business. we on a the are lot that these we've are what assets, doing you us ancillary tower are and done going question capital answer opportunities. generally for good assets invested over are why occupied do I of where a return it? exclusive and And guess, produce the and good are, we get

Jon Atkin

Thanks very much.

Jeffrey Stoops

Yeah.

Operator

And lines we have no further queue at in this time.

Jeffrey Stoops

Great. heard everyone you. reporting through continued what success us was joining this And look quarter. I as want to for a for forward we to move Well, you year. Thank great first thank we

Operator

ladies the teleconference participation for gentlemen, you does Teleconference for conclude thank AT&T And and very call your our service. and that for much Again, using today.

You may disconnect. now

SBA Communications (SBAC) 26 Apr 222022 Q1 Earnings call transcript