BOCA RATON, Fla.-SBA Communications Corp.’s first-quarter 2003 results showed lower total revenues than the year-ago quarter, but the company’s highest-ever site leasing revenues, reflecting a continuing decline in the services business.
Revenue was $58.2 million, down from $63.9 million a year ago. Site leasing revenues, however, were $37.5 million, up 15.4 percent from a year ago. Site development revenues were $20.7 million, compared with $31.4 million a year ago. The company said site leasing contributed to 92.5 percent of its gross profit for the quarter.
Net loss was $33.8 million, or 66 cents per share, improved from a loss of $163.8 million, or $3.34 per share, a year ago. Earnings before interest, taxes, depreciation and amortization were $19.2 million compared with $19.3 million recorded a year ago.
SBA ended the quarter with 3,876 towers after building three and disposing of four during the quarter. Limited activity meant lower capital expenditures, which were $6.1 million, compared with $29.6 million last year. Late last week, the company closed the sale of 631 towers to AAT Communications Corp. in exchange for $145 million cash. The company is expected to sell 48 more towers to AAT for $15 million by July 1. Once the sales are complete, SBA will have 3,197 towers.
“We believe we now have in place sufficient liquidity and a stable long-term capital structure that will support, and be supported by, our expected growth in our tower cash flows,” said Jeffrey Stoops, president and chief executive officer of SBA. “Looking forward, we are very excited about, and confident in attaining, our goals of increasing tower cash flow and EBITDA, reducing leverage and attaining positive free cash flow.”
Shares of SBA were up more than 12 percent on the news to trade at $2.47, still at least $5 lower than its public tower company competitors.
