SBA Communications (SBAC) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

May 2, 2023 5:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks：

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the SBA, First Quarter Results Conference Call. At this time all participants are in a listen-only mode and later we will conduct a question-and-answer session. Instructions will be given at that time. [Operator Instructions] And as a reminder, this conference is being recorded.

I would now like to turn the conference over to our host, Mark DeRussy, Vice President of Finance. Please go ahead.

Mark DeRussy

Good evening and thank you for joining us for SBA’s first quarter 2023 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, May 1 and we have no obligation to update any forward-looking statements that 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 to discuss our first quarter results.

Brendan Cavanagh

Thank you, Mark. Good evening. We started the year off with a solid first quarter. Our results were slightly ahead of our expectation and allowed us to increase our full-year 2023 outlook for most metrics.

Total GAAP site leasing revenues for the first quarter were $617.3 million and cash site leasing revenues were $610.4 million. Foreign exchange rates represented a benefit of approximately $600,000 when compared with our previously forecasted FX rate estimates for the quarter and a headwind of $2.5 million when compared to the first quarter of 2022.

Same tower recurring cash leasing revenue growth for the first quarter, which is calculated on a constant currency basis, was 4.7% net over the first quarter of 2022, including the impact of 4.2% of churn. On a gross basis, same-tower recurring cash leasing revenue growth was 8.9%.

Domestic same-tower recurring cash leasing revenue growth over the first quarter of last year was 8.5% on a gross basis and 5.1% on a net basis, including 3.4% of churn. Domestic operational leasing activity or bookings representing new revenue placed under contract during the first quarter remains steady and was similar through the fourth quarter.