SBA Communications Corp. (NASDAQ:SBAC) Q2 2020 Earnings Conference Call - Final Transcript

Aug 03, 2020 • 05:00 pm ET


SBA Communications Corp. (NASDAQ:SBAC) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the SBA Second Quarter Results. [Operator Instructions].

At this time, I'd like to turn the conference over to our host Mark DeRussy, the Vice President of Finance. Please go ahead.

Mark C. DeRussy

Thanks, Nick. Good evening and thank you for joining us for SBA's second quarter 2020 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 detailed material risks that may cause our future results to differ from our expectations. Our statements are as of today, August 3, and we have no obligation to update any forward-looking statement 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.

And with that, I will now turn the call over to Brendan.

Brendan T. Cavanagh

Thanks, Mark. Good evening. SBA produced another solid performance during the second quarter, notwithstanding continued hardship and uncertainty for many across all of our markets due to COVID-19. Total GAAP site leasing revenues for the second quarter were $482.4 million and cash site leasing revenues were $482.1 million.

Foreign exchange rates were a $1.3 million tailwind to revenues when compared with our internal estimates for the second quarter. They were, however, a significant headwind on comparisons to the second quarter of 2019, negatively impacting revenues by $21.4 million on a year-over-year basis.

Same-tower recurring cash leasing revenue growth for the second quarter, which is calculated on a constant currency basis, was 5% over the second quarter of 2019, including the impact of 1.9% of churn. On a gross basis, same-tower growth was 6%. Domestic same-tower recurring cash leasing revenue growth over the second quarter of last year was 6.7% on a gross basis and 4.5% on a net basis, including 2.2% of churn, 0.5% of which was related to Metro, Leap and Clearwire terminations.

Domestic operational leasing activity, representing new revenue placed under contract during the second quarter, was again slower than the year-ago period and remained similar to the first quarter and the fourth quarter of 2019. The measured pace of new bookings in the quarter was primarily due to a slower restart than we anticipated by T-Mobile, following the closing of their merger with Sprint, while our other domestic customers were steady. However, as we have begun the third quarter, we have seen a meaningful increase in application activity from T-Mobile that we expect to drive increased domestic organic bookings in the second half of 2020 and into 2021.

During the second quarter, amendment activity was again a large majority of our domestic bookings with newly