sbac-20240331x10q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number: 001-16853

SBA COMMUNICATIONS CORPORATION

(Exact name of Registrant as specified in its charter)


Florida	65-0716501
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)


8051 Congress Avenue
Boca Raton, Florida	33487
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (561) 995-7670

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Class A Common Stock, $0.01 par value per share	SBAC	The NASDAQ Stock Market LLC
		(NASDAQ Global Select Market)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer	x	Accelerated Filer	¨

Non-Accelerated Filer	¨	Smaller Reporting Company	¨

		Emerging Growth Company	¨

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ¨ No x

Indicate the number of shares outstanding of each issuer’s classes of common stock, as of the latest practicable date: 107,443,014 shares of Class A common stock as of April 26, 2024.

PART I – FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

SBA COMMUNICATIONS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (in thousands, except par values)



	March 31,		December 31,
	2024		2023
ASSETS	(unaudited)
Current assets:
Cash and cash equivalents	$	240,309	$	208,547
Restricted cash		19,892		38,129
Accounts receivable, net		126,525		182,746
Costs and estimated earnings in excess of billings on uncompleted contracts		16,535		16,252
Prepaid expenses and other current assets		44,335		38,593
Total current assets		447,596		484,267
Property and equipment, net		2,709,681		2,711,719
Intangible assets, net		2,403,849		2,455,597
Operating lease right-of-use assets, net		2,185,851		2,240,781
Acquired and other right-of-use assets, net		1,441,750		1,473,601
Other assets		806,539		812,476
Total assets	$	9,995,266	$	10,178,441
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS,
AND SHAREHOLDERS' DEFICIT
Current liabilities:
Accounts payable	$	45,761	$	42,202
Accrued expenses		77,035		92,622
Current maturities of long-term debt		1,805,395		643,145
Deferred revenue		161,127		235,668
Accrued interest		32,605		57,496
Current lease liabilities		270,318		273,464
Other current liabilities		21,048		18,662
Total current liabilities		2,413,289		1,363,259
Long-term liabilities:
Long-term debt, net		10,550,553		11,681,170
Long-term lease liabilities		1,806,278		1,865,686
Other long-term liabilities		411,389		404,161
Total long-term liabilities		12,768,220		13,951,017
Redeemable noncontrolling interests		36,577		35,047
Shareholders' deficit:
Preferred stock - par value $0.01, 30,000 shares authorized, no shares issued or outstanding		—		—
Common stock - Class A, par value $0.01, 400,000 shares authorized, 107,880 shares and
108,050 shares issued and outstanding at March 31, 2024 and December 31, 2023,
respectively		1,079		1,080
Additional paid-in capital		2,915,215		2,894,060
Accumulated deficit		(7,509,379)		(7,450,824)
Accumulated other comprehensive loss, net		(629,735)		(615,198)
Total shareholders' deficit		(5,222,820)		(5,170,882)
Total liabilities, redeemable noncontrolling interests, and shareholders' deficit	$	9,995,266	$	10,178,441

The accompanying condensed notes are an integral part of these consolidated financial statements.

SBA COMMUNICATIONS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited) (in thousands, except per share amounts)


	For the three months
	ended March 31,
	2024		2023

Revenues:
Site leasing	$	628,276	$	617,268
Site development		29,586		58,248
Total revenues		657,862		675,516
Operating expenses:
Cost of revenues (exclusive of depreciation, accretion,
and amortization shown below):
Cost of site leasing		114,813		120,119
Cost of site development		23,178		44,185
Selling, general, and administrative expenses ⁽¹⁾		68,698		72,209
Acquisition and new business initiatives related
adjustments and expenses		7,417		6,057
Asset impairment and decommission costs		43,648		26,390
Depreciation, accretion, and amortization		76,750		182,415
Total operating expenses		334,504		451,375
Operating income		323,358		224,141
Other income (expense):
Interest income		7,314		2,816
Interest expense		(96,390)		(101,226)
Non-cash interest expense		(8,443)		(14,239)
Amortization of deferred financing fees		(5,289)		(4,988)
Loss from extinguishment of debt, net		(4,428)		—
Other (expense) income, net		(44,652)		37,558
Total other expense, net		(151,888)		(80,079)
Income before income taxes		171,470		144,062
Provision for income taxes		(16,927)		(43,508)
Net income		154,543		100,554
Net loss attributable to noncontrolling interests		—		663
Net income attributable to SBA Communications
Corporation	$	154,543	$	101,217
Net income per common share attributable to SBA
Communications Corporation:
Basic	$	1.43	$	0.94
Diluted	$	1.42	$	0.93
Weighted-average number of common shares
Basic		108,102		108,132
Diluted		108,616		109,271

(1)Includes non-cash compensation of $20,773 and $25,529 for the three months ended March 31, 2024 and 2023, respectively.

The accompanying condensed notes are an integral part of these consolidated financial statements.

SBA COMMUNICATIONS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ DEFICIT

(unaudited) (in thousands)



								Accumulated
	Class A			Additional				Other		Total
	Common Stock			Paid-In		Accumulated		Comprehensive		Shareholders'
	Shares	Amount		Capital		Deficit		Loss, Net		Deficit

BALANCE, December 31, 2023	108,050	$	1,080	$	2,894,060	$	(7,450,824)	$	(615,198)	$	(5,170,882)
Net income attributable to SBA
Communications Corporation	—		—		—		154,543		—		154,543
Common stock issued in connection with equity
awards and stock purchase plans, offset
by the impact of net share settlements	325		3		(762)		—		—		(759)
Non-cash stock compensation	—		—		21,917		—		—		21,917
Adjustments related to interest rate swaps	—		—		—		—		10,868		10,868
Repurchase and retirement of common stock	(495)		(4)		—		(106,153)		—		(106,157)
Foreign currency translation adjustments
attributable to SBA Communications
Corporation	—		—		—		—		(25,405)		(25,405)
Dividends and dividend equivalents
on common stock	—		—		—		(106,945)		—		(106,945)
BALANCE, March 31, 2024	107,880	$	1,079	$	2,915,215	$	(7,509,379)	$	(629,735)	$	(5,222,820)



								Accumulated
	Class A			Additional				Other		Total
	Common Stock			Paid-In		Accumulated		Comprehensive		Shareholders'
	Shares	Amount		Capital		Deficit		Loss, Net		Deficit

BALANCE, December 31, 2022	107,997	$	1,080	$	2,795,176	$	(7,482,061)	$	(590,510)	$	(5,276,315)
Net income attributable to SBA
Communications Corporation	—		—		—		101,217		—		101,217
Common stock issued in connection with equity
awards and stock purchase plans, offset
by the impact of net share settlements	329		3		(14,719)		—		—		(14,716)
Non-cash stock compensation	—		—		26,701		—		—		26,701
Adjustments related to interest rate swaps	—		—		—		—



		Page
PART I – FINANCIAL INFORMATION

Item 1.	Financial Statements
	Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023	1
	Consolidated Statements of Operations (unaudited) for the three months ended March 31, 2024 and 2023	2
	Consolidated Statements of Comprehensive Income (unaudited) for the three months ended March 31, 2024 and 2023	3
	Consolidated Statement of Shareholders’ Deficit (unaudited) for the three months ended March 31, 2024 and 2023	4
	Consolidated Statements of Cash Flows (unaudited) for the three months ended March 31, 2024 and 2023	5
	Condensed Notes to Consolidated Financial Statements (unaudited)	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	36

PART II – OTHER INFORMATION

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 5.	Other Information	37
Item 6.	Exhibits	37


SIGNATURES		38