SBA Communications Corp. (NASDAQ:SBAC) Q4 2019 Earnings Conference Call - Final Transcript

Feb 20, 2020 • 05:00 pm ET

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SBA Communications Corp. (NASDAQ:SBAC) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the SBA Fourth Quarter Results Conference Call. [Operator Instructions] Later, we will conduct a question-and-answer session. Instructions will be given at that time. [Operator Instructions]

As a reminder, this conference is being recorded. And now let me introduce, Vice President of Finance, Mark DeRussy. Go ahead, sir.

Executive
Mark DeRussy

Thank you, Julio. Good evening, everyone, and thank you for joining us for SBA's fourth quarter 2019 earnings conference call. Here with me today are Jeff Stoops, our President and Chief Executive Officer; and Brendan Cavanagh, our Chief Financial Officer.

Some of the information we'll discuss on this call is forward-looking, including but not limited to any guidance for 2020 and beyond. In today's press release and in our SEC filings, we detail material risks that may cause our future results to differ from our expectations. Our statements are as of today, February 20, and we have no obligation to update any forward-looking statements we may make.

In addition, our comments will include non-GAAP financial measures and other key operating metrics. The 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 now turn it over to Brendan to discuss our results.

Executive
Brendan T. Cavanagh

Thank you, Mark. Good evening. We had another solid quarter in the fourth quarter with strong operating and financial results in both our leasing and services businesses. Total GAAP site leasing revenues for the fourth quarter were $481.1 million and cash site leasing revenues were $478.1 million. Foreign exchange rates were in line with our estimates for the fourth quarter, but were a headwind on year-ago comparisons.

Same tower recurring cash leasing revenue growth for the fourth quarter, which is calculated on a constant currency basis was 6% over the fourth quarter of 2018, including the impact of 2.3% of churn. On a gross basis, same tower growth was 8.3%. Domestic same tower recurring cash leasing revenue growth over the fourth quarter of last year was 8.2% on a gross basis and 5.6% on a net basis, including 2.6% of churn, 0.8% of which continues to be related to Metro Leap and Clearwire terminations.

The balance of domestic churn is from a variety of sources, including a number of smaller customers that are modifying or shutting down older technologies, some sites that were never on air that are not being renewed and some legacy consolidation churn. Domestic operational leasing activity, representing new revenue placed under contract during the quarter was down from the first half of the year and sequentially from the third quarter due to the industry-wide slowdown, as our customers awaited resolution of the legal challenges to the Sprint, T-Mobile merger.

Amendment activity was again the bulk of our domestic bookings, with newly signed up domestic leasing revenue coming 71% from amendments, and 29% from new leases. Although, we had essentially no contribution to leasing activity