SBA Communications Corporation (SBAC) Q4 2022 Earnings Call Transcript

SBA Communications Corporation (NASDAQ:SBAC) Q4 2022 Earnings Conference Call February 21, 2023 5:00 PM ET

Company Participants

Mark DeRussy - Vice President, Finance

Jeff Stoops - President and Chief Executive Officer

Brendan Cavanagh - Chief Financial Officer

Conference Call Participants

Ric Prentiss - Raymond James

Phil Cusick - JPMorgan

Simon Flannery - Morgan Stanley

Greg Williams - Cowen

Michael Rollins - Citi

Brett Feldman - Goldman Sachs

Nick Del Deo - SVB MoffettNathanson

Brendan Lynch - Barclays

Batya Levi - UBS

Brandon Nispel - KeyBanc

David Guarino - Green Street

Operator

Ladies and gentlemen, thank you for standing by and welcome to the SBA Fourth Quarter Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mark DeRussy, Vice President of Finance. Please go ahead.

Mark DeRussy

Good evening and thank you for joining us for SBA’s fourth quarter 2022 earnings conference call. Here with me today are Jeff Stoops, our President and Chief Executive Officer and Brendan Cavanagh, our Chief Financial Officer.

Some of the information we will discuss on this call is forward-looking, including, but not limited to, any guidance for 2023 and beyond. In today’s press release and in our SEC filings, we detail material risks that may cause our future results to differ from our expectations. Our statements are as of today, February 21 and we have no obligation to update any forward-looking statements we may make. In addition, our comments will include non-GAAP financial measures and other key operating metrics. The reconciliation of and other information regarding these items can be found in our supplemental financial data package, which is located on the landing page of our Investor Relations website.

With that, I will now turn the call over to Brendan.

Brendan Cavanagh

Thank you, Mark. Good evening. We finished up an outstanding 2022 with another very strong quarter. Our fourth quarter results were ahead of our expectations and allowed us to finish at or near the high end of our full year 2022 outlook for most metrics.

Total GAAP site leasing revenues for the fourth quarter were $609.6 million and cash site leasing revenues were $600.5 million. Foreign exchange rates represented a benefit of approximately $800,000 when compared with our previously forecasted FX rate estimates for the quarter and a benefit of $2.2 million when compared to the fourth quarter of 2021. Same tower recurring cash leasing revenue growth for the fourth quarter, which is calculated on a constant currency basis, was 5.1% net over the fourth quarter of 2021, including the impact of 4.2% of churn. On a gross basis, same-tower recurring cash leasing revenue growth was 9.3%. Domestic same-tower recurring cash leasing revenue growth over the fourth quarter of last year was 8.5% on a gross basis and 5% on a net basis, including 3.5% of churn.