SBA Communications Corp. (NASDAQ:SBAC) Q1 2018 Earnings Conference Call Transcript
Apr 30, 2018 • 05:00 pm ET
Ladies and gentlemen, thank you for standing by. Welcome to the SBA First Quarter Results Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. (Operator Instructions) And as a reminder, this conference is being recorded.
I would now like to turn the conference over to the VP of Finance, Mark DeRussy. Please go ahead.
Thanks, Noah. Good evening, everyone, and thank you for joining us for SBA's first quarter 2018 earnings conference call. Here with me today are Jeff Stoops, our President and CEO; and Brendan Cavanagh, our CFO.
(Forward-Looking Cautionary Statements)
In addition, our comments will include non-GAAP financial measurements and other key operating metrics. A reconciliation of and other information regarding these items can be found in our supplemental financial data package, which is located on the landing page of our Investor Relations website.
With that, I will turn the call over to Brendan.
Thank you, Mark. Good evening. SBA began the year with a very solid quarter. We produced positive results in both our domestic and international leasing operations as well as realizing incremental contributions from our services business. Total GAAP site leasing revenues for the first quarter were $430.5 million and cash site leasing revenues were $425.1 million. Foreign exchange rates were slightly weaker than our estimates for the first quarter, which we previously provided with our fourth quarter earnings release, negatively impacting leasing revenue by $0.2 million.
Same-tower recurring cash leasing revenue growth for the first quarter, which is calculated on a constant-currency basis, was 5.2% over the first quarter of 2017, including the impact of 1.4% of churn. On a gross basis, same-tower growth was 6.6%.
Domestic same-tower recurring cash leasing revenue growth over the first quarter of last year was 6.2% on a gross basis and 4.7% on a net basis, including 1.5% of churn, 53% of which was related to Metro/Leap and Clearwire terminations.
As mentioned on our previous earnings call, our modest operational domestic leasing activity during the fourth quarter of 2017 will impact our reported leasing revenue and year-over-year growth same-tower growth rate in early 2018 but we expect this growth rate to increase sequentially throughout 2018.
Internationally, on a constant-currency basis, same-tower cash leasing revenue growth was 8.3%, including 80- basis points of churn or 9.1% on a gross basis. Gross organic growth in Brazil was 10.1%.
Domestic operational leasing activity, representing new revenue signed up during the quarter, was up from the prior quarter as we began to convert some of our increased application backlog into signed agreements. Revenue from this signing activity will begin to be recognized at various times throughout the year.
Newly signed up domestic leasing revenue came about 2/3 from amendments and 1/3 from new leases, and the Big Four carriers represented 97% of total incremental domestic leasing revenue signed up during the quarter.
Our domestic leasing application backlog remains elevated, and we expect to continue to see