sbac-20240630x10q

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 June 30, 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: 107,472,463 shares of Class A common stock as of July 24, 2024.

PART I – FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

SBA COMMUNICATIONS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (in thousands, except par values)



	June 30,		December 31,
	2024		2023
ASSETS	(unaudited)
Current assets:
Cash and cash equivalents	$	220,508	$	208,547
Restricted cash		58,474		38,129
Accounts receivable, net		88,650		182,746
Costs and estimated earnings in excess of billings on uncompleted contracts		19,810		16,252
Prepaid expenses and other current assets		72,564		38,593
Total current assets		460,006		484,267
Property and equipment, net		2,719,810		2,711,719
Intangible assets, net		2,314,238		2,455,597
Operating lease right-of-use assets, net		2,129,244		2,240,781
Acquired and other right-of-use assets, net		1,376,941		1,473,601
Other assets		785,939		812,476
Total assets	$	9,786,178	$	10,178,441
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS,
AND SHAREHOLDERS' DEFICIT
Current liabilities:
Accounts payable	$	50,738	$	42,202
Accrued expenses		76,319		92,622
Current maturities of long-term debt		1,806,304		643,145
Deferred revenue		191,325		235,668
Accrued interest		57,928		57,496
Current lease liabilities		262,781		273,464
Other current liabilities		14,170		18,662
Total current liabilities		2,459,565		1,363,259
Long-term liabilities:
Long-term debt, net		10,473,739		11,681,170
Long-term lease liabilities		1,755,101		1,865,686
Other long-term liabilities		373,697		404,161
Total long-term liabilities		12,602,537		13,951,017
Redeemable noncontrolling interests		40,817		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, 107,471 shares and
108,050 shares issued and outstanding at June 30, 2024 and December 31, 2023,
respectively		1,075		1,080
Additional paid-in capital		2,930,332		2,894,060
Accumulated deficit		(7,546,370)		(7,450,824)
Accumulated other comprehensive loss, net		(701,778)		(615,198)
Total shareholders' deficit		(5,316,741)		(5,170,882)
Total liabilities, redeemable noncontrolling interests, and shareholders' deficit	$	9,786,178	$	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				For the six months
	ended June 30,				ended June 30,
	2024		2023		2024		2023

Revenues:
Site leasing	$	626,457	$	626,143	$	1,254,733	$	1,243,411
Site development		34,020		52,357		63,606		110,605
Total revenues		660,477		678,500		1,318,339		1,354,016
Operating expenses:
Cost of revenues (exclusive of depreciation, accretion,
and amortization shown below):
Cost of site leasing		114,131		115,014		228,944		235,133
Cost of site development		27,137		39,236		50,315		83,421
Selling, general, and administrative expenses ⁽¹⁾		62,376		63,383		131,074		135,592
Acquisition and new business initiatives related
adjustments and expenses		6,574		4,953		13,991		11,010
Asset impairment and decommission costs		31,610		32,867		75,258		59,257
Depreciation, accretion, and amortization		64,179		181,820		140,929		364,235
Total operating expenses		306,007		437,273		640,511		888,648
Operating income		354,470		241,227		677,828		465,368
Other income (expense):
Interest income		7,046		4,683		14,360		7,498
Interest expense		(97,530)		(101,288)		(193,921)		(202,514)
Non-cash interest expense		(7,080)		(7,518)		(15,523)		(21,757)
Amortization of deferred financing fees		(4,932)		(5,044)		(10,221)		(10,032)
Loss from extinguishment of debt, net		—		—		(4,428)		—
Other (expense) income, net		(104,859)		40,732		(149,511)		78,293
Total other expense, net		(207,355)		(68,435)		(359,244)		(148,512)
Income before income taxes		147,115		172,792		318,584		316,856
Benefit (provision) for income taxes		12,337		29,178		(4,590)		(14,331)
Net income		159,452		201,970		313,994		302,525
Net loss attributable to noncontrolling interests		3,378		1,678		3,378		2,340
Net income attributable to SBA Communications
Corporation	$	162,830	$	203,648	$	317,372	$	304,865
Net income per common share attributable to SBA
Communications Corporation:
Basic	$	1.52	$	1.88	$	2.94	$	2.82
Diluted	$	1.51	$	1.87	$	2.93	$	2.79
Weighted-average number of common shares
Basic		107,462		108,355		107,782		108,244
Diluted		107,679		108,884		108,148		109,078

(1)Includes non-cash compensation of $17,872 and $17,566 for the three months ended June 30, 2024 and 2023, respectively, and $38,645 and $43,094 for the six months ended June 30, 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 COMPREHENSIVE INCOME

(unaudited) (in thousands)



	For the three months				For the six months
	ended June 30,				ended June 30,

	2024		2023		2024		2023

Net income	$	159,452	$	201,970	$	313,994	$	302,525
Adjustments related to interest rate swaps		(8,237)		15,316		2,630		(7,072)
Foreign currency translation adjustments		(64,130)		25,029		(89,534)		41,555
Comprehensive income		87,085		242,315		227,090		337,008
Comprehensive loss attributable to noncontrolling interests		3,702		2,133		3,702		2,797
Comprehensive income attributable to SBA
Communications Corporation	$	90,787	$	244,448	$	230,792	$	339,805

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, March 31, 2024	107,880	$	1,079	$	2,915,215	$	(7,509,379)	$	(629,735)	$	(5,222,820)
Net income attributable to SBA
Communications Corporation	—		—		—		162,830		—		162,830
Common stock issued in connection with equity
awards and stock purchase plans, offset
by the impact of net share settlements	31		—		3,950		—		—		3,950
Non-cash stock compensation	—		—		19,109		—		—		19,109
Adjustments related to interest rate swaps	—		—		—



		Page
PART I – FINANCIAL INFORMATION

Item 1.	Financial Statements
	Consolidated Balance Sheets as of June 30, 2024 (unaudited) and December 31, 2023	1
	Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2024 and 2023	2
	Consolidated Statements of Comprehensive Income (unaudited) for the three and six months ended June 30, 2024 and 2023	3
	Consolidated Statement of Shareholders’ Deficit (unaudited) for the three and six months ended June 30, 2024 and 2023	4
	Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2024 and 2023	6
	Condensed Notes to Consolidated Financial Statements (unaudited)	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	41
Item 4.	Controls and Procedures	43

PART II – OTHER INFORMATION

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	43
Item 5.	Other Information	44
Item 6.	Exhibits	44


SIGNATURES		45