01—Abstract
Summary
Summary of the 10-K filed April 2, 2001. Cited figures are marked; the original filing is the authoritative source.
SBA Communications Corporation, a Florida-incorporated owner and operator of wireless communications towers, reported total revenues of $167.9 milliona for 2000, up 93.0% from $87.0 million in 1999.
Site development revenue was $115.9 millionb and site leasing revenue was $52.0 million, which grew 96.8%. The company owned or controlled 2,390 towers at December 31, 2000, with 5,548 tenants, and had agreements to acquire 677 more towers for an aggregate purchase price of approximately $218.5 million. Net loss was $28.9 million for 2000, compared with $34.6 million in 1999, and the company states it has not achieved profitability and expects continued losses.
EBITDA rose to $32.0 millionc from $9.6 million. The balance sheet shows total assets of $948.8 million, total debt of $284.3 million and shareholders' equity of $538.2 million at year-end 2000. Cash capital expenditures were $445.3 million in 2000, and the company plans at least $400.0 million to $450.0 million for 2001.
In February 2001 it issued $500.0 milliond of 10 1/4% senior notes due 2009, with net proceeds of $484.2 million, and used the proceeds to repay its senior credit facility. The filing notes that earnings have been insufficient to cover fixed charges and that the company will need additional financing beyond 2001 if its planned capital expenditures exceed current estimates. Risk factors emphasized in the filing include substantial leverage, dependence on a small number of customers (Sprint at 10.7% of 2000 revenue), reliance on tenant demand for newly built towers that generate little cash flow at construction, and the conditional closing of the remaining TeleCorp PCS and US Unwired tower acquisitions.
Steven E. Bernstein controls approximately 57% of total voting power.
02—Key points
Key Highlights
- Total revenues rose 93.0% to $167.9 million in 2000, driven by site development (up 91.3% to $115.9 million) and site leasing (up 96.8% to $52.0 million).
- Owned or controlled 2,390 towers with 5,548 tenants at December 31, 2000, and had agreements to acquire 677 additional towers for about $218.5 million.
- Net loss narrowed to $28.9 million in 2000 from $34.6 million in 1999; the company states it expects to continue incurring losses.
- EBITDA increased 234.2% to $32.0 million from $9.6 million, while depreciation and amortization rose to $34.8 million.
- Cash capital expenditures were $445.3 million in 2000, with planned 2001 spending of at least $400.0 million to $450.0 million.
- Issued $500.0 million of 10 1/4% senior notes due 2009 in February 2001 (net proceeds $484.2 million) and repaid all senior credit facility borrowings.
- Total debt was $284.3 million against shareholders' equity of $538.2 million at December 31, 2000; earnings were insufficient to cover fixed charges.
03—Questions
Frequently Asked Questions
How much did SBA Communications grow in 2000?
Total revenues increased 93.0% to $167.9 million in 2000 from $87.0 million in 1999. Site leasing revenue increased 96.8% to $52.0 million, and site development revenue increased 91.3% to $115.9 million.
Is the company profitable?
No. The company reported a net loss of $28.9 million for 2000, compared with a net loss of $34.6 million in 1999. It states that its losses are principally due to significant depreciation, amortization and interest expense, and it expects to continue incurring losses for the foreseeable future.
How much debt does the company carry and how is it being financed?
Total debt was $284.3 million at December 31, 2000. In February 2001, the company issued $500.0 million of 10 1/4% senior notes due 2009, with net proceeds of about $484.2 million, of which $105.0 million repaid its senior credit facility. The filing states that additional financing may be needed beyond 2001 if planned capital expenditures are exceeded.
What are the main risks to investors?
The filing highlights substantial indebtedness, insufficient earnings to cover fixed charges, dependence on a small number of customers (Sprint provided 10.7% of 2000 revenue), tenant demand risk for newly built towers that have little cash flow when constructed, and uncertainty over closing the remaining TeleCorp PCS and US Unwired acquisitions. Steven E. Bernstein controls about 57% of total voting power.
What growth is the company pursuing?
The company plans to keep building and acquiring towers. It had carrier directives to build approximately 600 additional towers and over 1,000 internally identified sites. It agreed to acquire 275 towers from TeleCorp PCS (203 acquired March 16, 2001) and 300 towers from US Unwired (127 acquired December 29, 2000), with the remainder subject to closing conditions.
04—Continue