Skip to content
AnalystLens

Sba Communications Annual Report, Year Ended Dec 31, 2007

Filing Date
Filed February 28, 2008
Period End
December 31, 2007
Security
SBAC
In the record · 2016–202610-K1110-Q328-K107

SBAC filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 107 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Apr ’18Apr ’18
  2. Material agreement8-K · Jan ’21Jan ’21
  3. Leadership change8-K · Feb ’23Feb ’23
  4. FY2024 annual report10-K · Feb ’25Feb ’25

01—Abstract

Summary

Summary of the 10-K filed February 28, 2008. Cited figures are marked; the original filing is the authoritative source.

SBA Communications Corporation reported a net loss of $77.9 milliona for 2007, narrowing from $133.4 million in 2006 and $94.7 million in 2005.

Total revenues grew to $408.2 millionb in 2007 from $351.1 million in 2006, led by site leasing revenue of $321.8 million, up from $256.2 million. Operating income rose to $30.0 million from $19.5 million, and Adjusted EBITDA was $209.4 million versus $161.8 million. Site leasing generated approximately 96% of segment operating profit in the filing's discussion, and the company owned 6,220 towers at December 31, 2007.

Cash provided by operating activities increased to $122.9 millionc from $73.7 million. Leverage increased substantially. Total indebtedness rose to $1.905 billion at December 31, 2007 from $1.555 billion a year earlier, while shareholders' equity fell to $337.4 million from $385.9 million.

Debt consists of $1.555 billiond of CMBS Certificates and $350.0 million of 0.375% Convertible Senior Notes due 2010. In January 2008 the company entered into a $285.0 million senior secured revolving credit facility, restricted to tower construction, tower acquisition and ground lease buyouts. The filing states that the company will not be able to repay its substantial indebtedness from operating cash flow alone and expects to rely on refinancing, asset sales or equity issuances at maturity.

Customer concentration remains a key risk. Sprint accounted for 30.5% of total revenue and AT&T for 21.0% in 2007.

The company also disclosed a $15.6 million other-than-temporary impairment on auction rate securities, leaving a fair value of $14.2 million on three remaining securities with par value of $29.8 million as of February 22, 2008. The filing describes plans to build 80 to 100 towers in 2008 and grow the tower portfolio 5% to 10% annually.

02—Key points

Key Highlights

  1. Total revenues increased to $408.2 million in 2007 from $351.1 million in 2006; site leasing revenue rose to $321.8 million from $256.2 million.
  2. Net loss narrowed to $77.9 million in 2007 from $133.4 million in 2006, primarily due to a lower loss from write-off of deferred financing fees and extinguishment of debt ($0.4 million versus $57.2 million).
  3. Adjusted EBITDA was $209.4 million in 2007 compared with $161.8 million in 2006.
  4. Total indebtedness rose to $1.905 billion at December 31, 2007 from $1.555 billion, while shareholders' equity declined to $337.4 million from $385.9 million.
  5. Sprint and AT&T accounted for 30.5% and 21.0% of 2007 total revenue, respectively, highlighting customer concentration.
  6. A $15.6 million other-than-temporary impairment was recorded on auction rate securities; the remaining three securities had a par value of $29.8 million and estimated fair value of $14.2 million as of February 22, 2008.
  7. The company owned 6,220 towers at December 31, 2007 and plans to build 80 to 100 towers in 2008, with a target of 5% to 10% annual portfolio growth.

03—Questions

Frequently Asked Questions

  1. How much debt does SBA Communications carry and what are its maturities?

    At December 31, 2007, total debt was $1.905 billion, consisting of $405.0 million of Initial CMBS Certificates with an anticipated repayment date of November 15, 2010, $1.15 billion of Additional CMBS Certificates with an anticipated repayment date of November 15, 2011, and $350.0 million of 0.375% Convertible Senior Notes maturing December 1, 2010.

  2. Can the company repay its debt from operating cash flow?

    The filing states that the company will not be able to amortize and repay its substantial indebtedness from cash from operating activities, so debt will need to be repaid from asset sales or equity issuances or refinanced at maturity. Management does, however, believe cash flows from operations will be sufficient to service outstanding debt over the next twelve months.

  3. What new financing did the company obtain after year-end 2007?

    In January 2008, SBA Senior Finance entered into a $285.0 million three-year senior secured revolving credit facility. Proceeds may only be used for constructing or acquiring towers and for ground lease buyouts. As of February 22, 2008, availability was approximately $183.0 million, of which $20 million had been drawn.

  4. How concentrated is the company's revenue among its customers?

    Revenue is concentrated among a small number of wireless carriers. In 2007, Sprint represented 30.5% of total revenue and AT&T represented 21.0%. Within site leasing, Sprint accounted for 26.5%, AT&T for 25.6% and Verizon Wireless for 10.0%.

  5. What is the status of the auction rate securities?

    The company recorded a $15.6 million other-than-temporary impairment in the fourth quarter of 2007, reducing the securities to an estimated fair value of $55.1 million at December 31, 2007. After a subsequent sale of six securities at par, three remaining securities with a par value of $29.8 million had an estimated fair value of $14.2 million as of February 22, 2008.

04—Continue

← View all 10-K filings