01—Abstract
Summary
Summary of the 10-K filed February 26, 2016. Cited figures are marked; the original filing is the authoritative source.
SBA Communications Corporation (SBAC) reported total revenues of $1.64 billiona for 2015, up from $1.53 billion in 2014, driven by site leasing revenue of $1.48 billion.
Site leasing generated 96.8% of total segment operating profit in 2015. Domestic site leasing revenue rose to $1.24 billion and international site leasing revenue to $243.9 millionb, while site development revenue declined to $157.8 million. The company owned 25,465 towers as of December 31, 2015, 15,778 domestic and 9,687 international.
The company posted a net loss of $175.7 millionc in 2015, compared with a net loss of $24.3 million in 2014. The increase was driven by a $178.9 million foreign exchange remeasurement loss on an intercompany loan, $94.8 million of asset impairment and decommission costs (including a $56.7 million impairment on fiber assets), and higher depreciation, accretion and amortization of $660.0 million. Adjusted EBITDA, a non-GAAP measure defined in the filing, rose to $1.09 billion from $998.8 million.
Operating cash flow was $737.2 million, and shareholders' deficit widened to $1.71 billiond from $660.8 million. Total principal indebtedness was $8.56 billion at year-end 2015, versus $7.87 billion a year earlier. The company completed $500.0 million of Secured Tower Revenue Securities and a $500.0 million 2015 Term Loan, and repurchased $300.1 million of stock during 2015.
The company states it has never paid a dividend. For 2016 it intends to build 590 to 610 new towers and expects discretionary cash capital expenditures of $220.0 million to $240.0 million.
02—Key points
Key Highlights
- Total revenues were $1,638.5 million in 2015, up from $1,527.0 million in 2014; site leasing revenues were $1,480.6 million.
- Net loss widened to $175.7 million in 2015 from $24.3 million in 2014, reflecting a $178.9 million foreign exchange remeasurement loss on an intercompany loan.
- Adjusted EBITDA (non-GAAP) was $1,094.8 million in 2015 versus $998.8 million in 2014.
- Total principal indebtedness was $8.56 billion at December 31, 2015, and shareholders' deficit was $1.71 billion.
- The company owned 25,465 towers at year-end 2015, of which 9,687 were international; it averaged 1.8 tenants per tower structure.
- Customer concentration is significant: AT&T Wireless (24.2%), Sprint (19.6%), T-Mobile (16.0%) and Verizon Wireless (13.8%) accounted for 2015 total revenues.
- In 2015 the company repurchased $300.1 million of Class A common stock and had $700.0 million remaining under its $1.0 billion repurchase authorization.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2015, Sba Communications lost $0.11.
- Revenue$1.64B100.0%
- Cost of revenue−$444.4M27.1%
- Gross profit$1.19B72.9%
- Operating costs−$881.6M53.8%
- Operating income$312.5M19.1%
- Interest, other & tax−$488.1M29.8%
- Net income−$175.7M10.7%
Where FY2015 revenue went
$1.64B- Other operating costs: $766.7M, 47% of revenue
- Cost of revenue: $444.4M, 27% of revenue
- Operating income: $312.5M, 19% of revenue
- SG&A: $115.0M, 7.0% of revenue
Kept 19% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2015filed February 26, 2016Financial Statements
FY2015 against FY2014
| Line item | FY2015FY2014 | Change |
|---|---|---|
| Revenue | $1.64B$1.53B | +7.3% |
| Cost of Revenue | $444.40M$428.49M | +3.7% |
| Gross Profit | $1.19B$1.10B | +8.7% |
| SG&A Expenses | $114.95M$103.32M | +11.3% |
| Operating Expenses | $1.33B$1.19B | +11.4% |
| Operating Income | $312.46M$336.52M | −7.2% |
| Net Income | -$175.66M-$24.30M | −623.0% |
| EPS (Basic) | $-1.37$-0.19 | −621.1% |
| EPS (Diluted) | $-1.37$-0.19 | −621.1% |
| Shares Outstanding (Basic) | 127.79M128.92M | −0.9% |
| Shares Outstanding (Diluted) | 127.79M128.92M | −0.9% |
05—Questions
Frequently Asked Questions
How did SBAC's revenue and profitability change in 2015?
Total revenues increased to $1,638.5 million from $1,527.0 million, led by site leasing. However, the net loss grew to $175.7 million from $24.3 million, mainly due to a $178.9 million foreign exchange remeasurement loss on an intercompany loan, $94.8 million of asset impairment and decommission costs, and higher depreciation, accretion and amortization.
How much debt does SBAC carry and how is it structured?
Total principal indebtedness was $8.56 billion at December 31, 2015, up from $7.87 billion in 2014. It includes senior notes (5.625%, 5.75% and 4.875%), Secured Tower Revenue Securities, a $1.48 billion 2014 Term Loan, a $497.5 million 2015 Term Loan, and an undrawn $1.0 billion Revolving Credit Facility.
Does SBAC pay dividends?
No. The filing states the company has never paid a dividend on any class of common stock, intends to retain future earnings to fund growth, and is limited by the terms of its debt instruments.
What are the main risks highlighted in the filing?
Key risks include consolidation among wireless carriers that could reduce lease renewals, customer concentration in a few carriers, substantial leverage and restrictive debt covenants, foreign currency exposure in Brazil (the Brazilian Real devalued 49.2% during 2015), and the Brazilian concession on land under 2,113 towers expiring in 2025.
What is the company's outlook for 2016?
The company expects organic site leasing revenue growth in both domestic and international segments consistent with 2015, plans to build between 590 and 610 new towers, and expects discretionary cash capital expenditures of $220.0 million to $240.0 million plus non-discretionary capital expenditures of $30.0 million to $40.0 million.
06—Continue