BOCA RATON, Fla. - SBA Communications Corporation (NASDAQ: NASDAQ:SBAC), an independent owner and operator of wireless communications infrastructure, reported its financial results for the quarter ended March 31, 2024, indicating solid performance and financial growth.
The company announced a net income of $154.5 million or $1.42 per share, a significant increase from the previous year's $100.6 million or $0.93 per share. Adjusted Funds From Operations (AFFO) per share also rose by 5.1% to $3.29, compared to the prior year.
SBA Communications' Board of Directors declared a quarterly cash dividend of $0.98 per share of the company's Class A Common Stock, payable on June 19, 2024, to shareholders of record at the close of business on May 23, 2024.
Brendan Cavanagh, President and CEO of SBA, commented on the steady network investment across the company's portfolio despite macro-economic financial pressures and high capital costs. He emphasized the ongoing demand for high-performing mobile broadband services and significant 4G and 5G deployment needs, projecting solid organic leasing growth for the future.
SBA Communications took advantage of market valuations to buy back approximately 935,000 shares for about $200 million. Additionally, the company announced a 15% higher quarterly dividend than the previous year, which is less than 30% of the guided 2024 AFFO.
The company's total revenues for the first quarter of 2024 were $657.9 million, a decrease of 2.6% from the prior year period. Site leasing revenue accounted for $628.3 million of the total, with domestic site leasing revenue at $461.5 million and international site leasing revenue at $166.8 million. Site development revenue saw a decrease, coming in at $29.6 million compared to $58.2 million in the prior year period.
SBA's site leasing operating profit increased by 3.3% to $513.4 million, making up 98.8% of the company's total operating profit for the first quarter of 2024. Tower Cash Flow for the same period was $506.0 million, with Domestic Tower Cash Flow increasing by 2.7% and International Tower Cash Flow by 4.3%.
The company ended the first quarter with $12.4 billion of total debt, $9.4 billion of total secured debt, $261.8 million in cash and cash equivalents, short-term restricted cash, and short-term investments, and $12.2 billion of Net Debt. SBA's Net Debt and Net Secured Debt to Annualized Adjusted EBITDA Leverage Ratios were 6.5x and 4.9x, respectively.
During the first quarter, SBA acquired 11 communication sites and built 76 towers. As of March 31, 2024, the company owned or operated 39,638 communication sites. The company also spent $13.5 million to purchase land and extend lease terms, with total cash capital expenditures for the quarter at $77.3 million.
Looking ahead, SBA Communications updated its full-year 2024 Outlook, anticipating continued growth and operational success. The company's guidance assumes the acquisitions of communication sites currently under contract and does not contemplate any additional repurchases of the company's stock or new debt financings during 2024.
This report is based on a press release statement from SBA Communications Corporation.
InvestingPro Insights
SBA Communications Corporation (NASDAQ: SBAC) continues to demonstrate financial resilience and strategic growth in the wireless communications infrastructure sector. The company's commitment to enhancing shareholder value is evident in its consistent dividend increases, with the dividend rising for 5 consecutive years, aligning with the company's latest 15% dividend hike. This strategic move underscores SBA's focus on long-term shareholder returns and financial stability.
InvestingPro data highlights the company’s robust market capitalization of $21.81 billion, which reflects investor confidence in its business model and future prospects. Despite a high Price to Earnings (P/E) ratio of 43.25, which indicates a premium valuation, SBA Communications is trading at a high P/E ratio relative to near-term earnings growth, an InvestingPro Tip that may suggest the stock is priced optimistically based on its current earnings trajectory.
Moreover, the company's Gross Profit Margin for the last twelve months as of Q4 2023 stands at an impressive 76.61%, showcasing its ability to maintain profitability and operational efficiency. This is particularly relevant given the CEO's remarks on the ongoing demand for high-performing mobile broadband services and the need for 4G and 5G deployment, which could drive future revenue growth.
For readers interested in deeper analysis, InvestingPro provides additional insights and metrics on SBA Communications, including further InvestingPro Tips such as the company's position as a prominent player in the Specialized REITs industry and predictions of profitability for the year. To explore these tips and more, visit InvestingPro. And remember, you can use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering access to even more valuable investment information and analysis.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.