Q3 for Press Release 2021 (opens in new window)

FOR IMMEDIATE RELEASE

SBA Communications Corporation Reports Third Quarter 2021 Results;

Updates Full Year 2021 Outlook; and Declares Quarterly Cash Dividend

Boca Raton, Florida, November 1, 2021 (BUSINESS NEWSWIRE) -- SBA Communications Corporation (Nasdaq: SBAC) ("SBA" or the "Company") today reported results for the quarter ended September 30, 2021.

Highlights of the third quarter include:

• Net income of $47.8 million or $0.43 per share
• AFFO per share increased 13.9% over the prior year period
• Total revenue of $589.3 million, a 12.7% growth over the prior year period
• Issued $1.79 billion of Tower Securities at a blended interest rate of 2.217% subsequent to quarter end
• Repurchased 1.0 million shares cumulatively in the third quarter and subsequent to quarter end

In addition, the Company announced today that its Board of Directors has declared a quarterly cash dividend of $0.58 per share of the Company's Class A Common Stock. The distribution is payable December 16, 2021 to the shareholders of record at the close of business on November 18, 2021.

"The increased level of US wireless carrier activity we experienced last quarter continued in the third quarter," stated Jeffrey Stoops, President and CEO. "US wireless carrier activity continued at materially higher levels compared to the beginning of the year. Domestically, we produced record services revenue, surpassing our second quarter record, and our leasing and services backlogs reached new multi-year highs at quarter-end. While we expect some revenue recognition from third quarter leasing activity by year-end, contributing to our increased full-year 2021 Outlook, we anticipate the substantial majority will begin to be recognized in 2022. Based on our backlogs and conversations with our customers, we expect elevated domestic leasing activities to continue through 2022 and perhaps beyond. Internationally, our leasing results in the third quarter were once again solid and ahead of plan, as our international markets slowly but steadily return to pre-pandemic levels of activity. In addition to growth from increased customer activity and portfolio growth, sound cost controls, substantial stock repurchases and interest rate savings through refinancing a material portion of our debt have allowed us to increase our full-year outlook for AFFO per share and other key financial metrics. Our balance sheet remains strong, further strengthened by material refinancing success, and our net debt/ Adjusted EBITDA leverage remains within our target range. The combination of strong operating results, strong expected demand for the remainder of the year and excellent capital allocation and balance sheet management gives us great confidence for the remainder of 2021 and into 2022. In addition, pending and anticipated major spectrum auctions in the US and a few of our larger international markets provide additional optimism for heightened carrier activity for the foreseeable future."

1

Operating Results

The table below details select financial results for the three months ended September 30, 2021 and comparisons to the prior year period.

												% Change
												excluding
		Q3 2021			Q3 2020			$ Change		% Change		FX (1)
Consolidated					($ in millions, except per share amounts)
Site leasing revenue	$	535.5		$	486.8		$	48.7		10.0%		9.4%
Site development revenue		53.8			36.2			17.6	48.8%	48.8%
Tower cash flow (1)		428.1			396.8			31.3		7.9%		7.4%
Net income		47.8			22.6			25.2	111.5%	95.8%
Earnings per share - diluted		0.43			0.20			0.23		115.0%		100.0%
Adjusted EBITDA (1)		407.0			373.3			33.7	9.0%	8.5%
AFFO (1)		302.5			270.1			32.4		12.0%		11.3%
AFFO per share (1)		2.71			2.38			0.33	13.9%	13.4%

1. See the reconciliations and other disclosures under "Non-GAAP Financial Measures" later in this press release.

Total revenues in the third quarter of 2021 were $589.3 million compared to $522.9 million in the prior year period, an increase of 12.7%. Site leasing revenue in the third quarter of 2021 of $535.5 million was comprised of domestic site leasing revenue of $426.8 million and international site leasing revenue of $108.7 million. Domestic cash site leasing revenue in the third quarter of 2021 was $415.4 million compared to $389.6 million in the prior year period, an increase of 6.6%. International cash site leasing revenue in the third quarter of 2021 was $109.8 million compared to $96.5 million in the prior year period, an increase of 13.7%, or an increase of 10.4% on a constant currency basis. Site development revenues in the third quarter of 2021 were $53.8 million compared to $36.2 million in the prior year period, an increase of 48.8%.

Site leasing operating profit in the third quarter of 2021 was $436.8 million, an increase of 10.9% over the prior year period. Site leasing contributed 97.2% of the Company's total operating profit in the third quarter of 2021. Domestic site leasing segment operating profit in the third quarter of 2021 was $361.5 million, an increase of 10.6% over the prior year period. International site leasing segment operating profit in the third quarter of 2021 was $75.3 million, an increase of 11.9% from the prior year period.

Tower Cash Flow in the third quarter of 2021 of $428.1 million was comprised of Domestic Tower Cash Flow of $351.4 million and International Tower Cash Flow of $76.7 million. Domestic Tower Cash Flow in the third quarter of 2021 increased 7.1% over the prior year period and International Tower Cash Flow increased 12.0% over the prior year period, or increased 8.8% on a constant currency basis. Tower Cash Flow Margin was 81.5% in the third quarter of 2021, as compared to 81.6% for the prior year period.

Net income in the third quarter of 2021 was $47.8 million, or $0.43 per share, and included a $45.0 million loss, net of taxes, on the currency-related remeasurement of U.S. dollar denominated intercompany loans with foreign subsidiaries. Net income in the third quarter of 2020 was $22.6 million, or $0.20 per share, and included a $25.4 million loss, net of taxes, on the currency-related remeasurement of U.S. dollar denominated intercompany loans with foreign subsidiaries.

Adjusted EBITDA in the third quarter of 2021 was $407.0 million, a 9.0% increase over the prior year period. Adjusted EBITDA Margin in the third quarter of 2021 was 70.3% compared to 71.5% in the prior year period.

Net Cash Interest Expense in the third quarter of 2021 was $88.3 million compared to $89.0 million in the prior year period, a decrease of 0.8%.

2

AFFO in the third quarter of 2021 was $302.5 million, a 12.0% increase over the prior year period. AFFO per share in the third quarter of 2021 was $2.71, a 13.9% increase over the prior year period.

Investing Activities

During the third quarter of 2021, SBA acquired 144 communication sites for total cash consideration of $57.1 million. SBA also built 87 towers during the third quarter of 2021. As of September 30, 2021, SBA owned or operated 34,072 communication sites, 17,322 of which are located in the United States and its territories, and 16,750 of which are located internationally. In addition, the Company spent $11.6 million to purchase land and easements and to extend lease terms. Total cash capital expenditures for the third quarter of 2021 were $92.9 million, consisting of $10.0 million of non-discretionary cash capital expenditures (tower maintenance and general corporate) and $82.9 million of discretionary cash capital expenditures (new tower builds, tower augmentations, acquisitions, and purchasing land and easements).

Subsequent to the third quarter of 2021, the Company purchased or is under contract to purchase approximately 1,700 communication sites for an aggregate consideration of approximately $231.0 million in cash, including approximately 1,400 sites and approximately $175.0 million in cash relating to the previously announced deal to acquire towers from Airtel Tanzania. The Company anticipates that these acquisitions will be consummated by the end of the second quarter of 2022 and that the Airtel Tanzania transaction will close in stages starting in the fourth quarter of this year.

Financing Activities and Liquidity

SBA ended the third quarter of 2021 with $11.9 billion of total debt, $7.8 billion of total secured debt, $252.3 million of cash and cash equivalents, short-term restricted cash, and short-term investments, and $11.7 billion of Net Debt. SBA's Net Debt and Net Secured Debt to Annualized Adjusted EBITDA Leverage Ratios were 7.2x and 4.7x, respectively.

On October 14, 2021, the Company repaid the entire aggregate principal amount of the 2013-2C Tower Securities ($575.0 million) which had an anticipated repayment date of April 11, 2023.

On October 27, 2021, the Company, through an existing trust, issued $895.0 million of 1.840% Secured Tower Revenue Securities Series 2021-2C which have an anticipated repayment date of April 9, 2027 and a final maturity date of October 10, 2051 (the "2021-2C Tower Securities") and $895.0 million of 2.593% Secured Tower Revenue Securities Series 2021-3C which have an anticipated repayment date of October 9, 2031 and a final maturity date of October 10, 2056 (the "2021-3C Tower Securities"). The aggregate $1.79 billion of 2021-2C Tower Securities and 2021-3C Tower Securities have a blended interest rate of 2.217% and a weighted average life through the anticipated repayment date of 7.8 years. Net proceeds from this offering were used to repay amounts outstanding under the Revolving Credit Facility and remaining proceeds will be used to redeem the entire aggregate principal amount of the 2016 Senior Notes ($1.1 billion) and to pay all premiums and costs associated with such redemption.

As of the date of this press release, the Company had no amounts outstanding under the $1.5 billion Revolving Credit Facility.

During the third quarter of 2021, the Company repurchased 0.4 million shares of its Class A common stock for $150.0 million at an average price per share of $340.70 under its $1.0 billion stock repurchase plan. Subsequent to September 30, 2021, the Company repurchased 0.6 million shares of its Class A common stock for $200.0 million, at an average price per share of $332.72. Shares repurchased were retired. After these repurchases, the Company had $125.1 million of authorization remaining under the plan. On October 28, 2021, the Company's Board of Directors authorized a new $1.0 billion stock repurchase plan, replacing the prior plan authorized on November 2, 2020. This new plan authorized the Company to purchase, from time to time, up to $1.0 billion of our outstanding

3

Class A common stock through open market repurchases in compliance with Rule 10b-18 under the Exchange Act and/or in privately negotiated transactions at management's discretion based on market and business conditions, applicable legal requirements and other factors. Shares repurchased will be retired. The new plan has no time deadline and will continue until otherwise modified or terminated by the Company's Board of Directors at any time in its sole discretion. As of the date of this filing, the Company had the full $1.0 billion of authorization remaining under the new plan.

In the third quarter of 2021, the Company declared and paid a cash dividend of $63.6 million.

Outlook

The Company is updating its full year 2021 Outlook for anticipated results. The Outlook provided is based on a number of assumptions that the Company believes are reasonable at the time of this press release. Information regarding potential risks that could cause the actual results to differ from these forward-looking statements is set forth below and in the Company's filings with the Securities and Exchange Commission.

The Company's full year 2021 Outlook assumes the acquisitions of only those communication sites under contract and anticipated to close at the time of this press release. The Company may spend additional capital in 2021 on acquiring revenue producing assets not yet identified or under contract, the impact of which is not reflected in the 2021 guidance. The Outlook also does not contemplate any additional repurchases of the Company's stock during 2021, although the Company may ultimately spend capital to repurchase additional stock during the remainder of the year.

The Company's Outlook assumes an average foreign currency exchange rate of 5.60 Brazilian Reais to 1.0 U.S. Dollar, 1.25 Canadian Dollars to 1.0 U.S. Dollar, and 15.20 South African Rand to 1.0 U.S. Dollar for the fourth quarter of 2021.

4

											Change from
								Change from			August 2, 2021
								August 2, 2021			Outlook
(in millions, except per share amounts)		Full Year 2021			Outlook (7)			Excluding FX
Site leasing revenue (1)	$	2,095.0	to	$	2,105.0		$	10.0		$	13.5
Site development revenue	$	195.0	to $	205.0	$	10.0	$	10.0
Total revenues	$	2,290.0	to	$	2,310.0		$	20.0		$	23.5
Tower Cash Flow (2)	$	1,686.0	to $	1,696.0	$	4.0	$	6.0
Adjusted EBITDA (2)	$	1,599.0	to	$	1,609.0		$	8.0		$	10.0
Net cash interest expense (3)	$	349.0	to $	354.0	$	(4.5)	$	(4.5)
Non-discretionary cash capital expenditures (4)	$	36.0	to	$	42.0		$	(1.0)		$	(1.5)
AFFO (2)	$	1,173.0	to $	1,196.0	$	11.5	$	14.0
AFFO per share (2) (5)	$	10.55	to	$	10.76		$	0.14		$	0.16
Discretionary cash capital expenditures (6)	$	1,425.0	to $	1,435.0	$	(30.0)	$	(29.0)

1. The Company's Outlook for site leasing revenue includes revenue associated with pass through reimbursable expenses.
2. See the reconciliation of this non-GAAP financial measure presented below under "Non-GAAP Financial Measures."
3. Net cash interest expense is defined as interest expense less interest income. Net cash interest expense does not include amortization of deferred financing fees or non-cash interest expense.
4. Consists of tower maintenance and general corporate capital expenditures.
5. Outlook for AFFO per share is calculated by dividing the Company's outlook for AFFO by an assumed weighted average number of diluted common shares of 111.2 million. Our Outlook does not include the impact of any potential future repurchases of the Company's stock during 2021.
6. Consists of new tower builds, tower augmentations, communication site acquisitions and ground lease purchases. Does not include expenditures for acquisitions of revenue producing assets not under contract at the date of this press release.
7. Changes from prior outlook are measured based on the midpoint of outlook ranges provided.

5