Revenue Guidance, Sets Date For Third Quarter Release
BOCA RATON, Fla., Oct. 4 /PRNewswire-FirstCall/ -- Citing a weaker
environment for wireless carrier capital expenditures, SBA Communications
Corporation (Nasdaq: SBAC) (SBA
or the Company
) announced that it is
lowering third quarter 2002 EBITDA guidance to $18.5 - $20.0 million, from its
prior guidance of $21.0 - $23.0 million. Of the difference, approximately
$2 million is expected to result from lower services gross profit, reflecting
lower services revenue and margin than anticipated. In addition, cost of
leasing revenues is expected to be approximately $1 million higher than
anticipated, reflecting primarily increased costs for property taxes and
maintenance. EBITDA is defined as earnings before interest, taxes,
depreciation, amortization, non-cash charges, and unusual or non-recurring
expenses. Excluded from anticipated third quarter 2002 EBITDA is an expected
net restructuring expense of approximately $1.5 million related primarily to
the cost of abandoning certain new tower build projects and additional
employee layoffs and office closings that SBA implemented in the third
quarter. SBA reaffirms total revenue guidance for the third quarter of at
least $65.0 million, but expects total revenue to be below second quarter 2002
total revenue of $69.6 million. Sequentially, third quarter increases in
leasing revenue are anticipated to be offset by a greater decline in services
revenue. Net loss per share for the third quarter is now expected to be $.60
to $.70.
Financial results meeting the new guidance set forth above would satisfy
all financial covenants applicable to any indebtedness of SBA as of September
30, 2002. At September 30, 2002, SBA had net debt of approximately $963
million, including cash and cash equivalents of approximately $42 million and
senior bank debt of $248 million.
In the third quarter, SBA added annualized gross leasing revenue of
approximately $4,700 per tower (.26 on a broadband equivalent basis). The
Company built 23 towers in the quarter, ending the period with 3,875 towers,
and was working on an additional 23 new tower build projects all or
substantially all of which are expected to be completed in the fourth quarter.
While carrier activity certainly continues, at this time we do not
believe that wireless carrier capital expenditures will meet our prior
expectations for the second half of 2002 in either the leasing or the services
areas,
commented Jeffrey A. Stoops, SBA's President and Chief Executive
Officer. "In fact, activity declined from the second quarter to the third
quarter, as customer projects were delayed and, in some cases, halted mid-
stream. The services work that we did secure produced lower margins than
anticipated, as competition remains strong for the work that is available. We
expect continued weakness in wireless carrier capital expenditures through at
least the end of 2002.
We remain focused on working through the current business climate.
Throughout the quarter we continued to reduce our overhead cost structure and
our capital expenditures, and we ended the quarter with a strong cash
position. Although the picture for improved wireless carrier capital
expenditures remains unclear, our goals remain the same: maintain liquidity,
cut expenses, attain positive free cash flow and produce year over year
growth. We believe we continue to make progress on those goals.
In light of the changes in both expected third quarter financial results
and the environment for wireless carrier capital expenditures, the Company is
reviewing its full year financial guidance and will update such guidance on or
before its conference call to discuss third quarter results.
SBA will release its third quarter results on Tuesday, November 5, 2002,
in a press release scheduled for approximately 4:30 p.m. EST. SBA will host a
conference call on Wednesday, November 6, 2002, to discuss these results. The
call may be accessed as follows:
When: Wednesday, November 6, 2002 at 10:00 a.m.
Dial in Number: 800-851-3058
Conference call name: SBA 2002 Third Quarter Results
Replay: November 6, 2002 at 5:00 p.m.
until November 20, at 11:59 p.m.
Replay number: 800-642-1687
Conference ID #: 5951180
Internet access: www.sbasite.com
SBA is a leading independent owner and operator of wireless communication
infrastructure in the United States. SBA generates revenue from two primary
businesses -- site leasing and site development services. The primary focus
of the company is the leasing of antenna space on its multi-tenant towers to a
variety of wireless service providers under long-term lease contracts. Since
it was founded in 1989, SBA has participated in the development of over 20,000
antenna sites in the United States.
For additional information about SBA, please contact Pamela J. Kline, Vice
President, Capital Markets at (561) 995-7670.
This press release includes forward-looking statements, including
statements regarding (i) the Company's future guidance for its third quarter
financial results, including its expectations regarding its leasing revenue,
services revenue and gross profit, total revenues, and EBITDA, (ii) the amount
of additional net restructuring expenses, (iii) the Company's compliance, as
of September 30, 2002, with its financial covenants under the agreements
governing its indebtedness, (iv) the completion of the pending new tower
builds in the fourth quarter, (v) the expected continued weakness in carrier
capital expenditures and (vi) the ability of the Company to maintain its
liquidity position, to reduce expenses, to attain positive free cash flow and
produce year over year growth. These forward-looking statements may be
affected by the risks and uncertainties in the Company's business. This
information is qualified in its entirety by cautionary statements and risk
factor disclosure contained in the Company's Securities and Exchange
Commission filings, including the Company's report on Form 10-K filed with the
Commission on March 21, 2002. The Company wishes to caution readers that
certain important factors may have affected and could in the future affect the
Company's actual results and could cause the Company's actual results for
subsequent periods to differ materially from those expressed in any forward-
looking statement made by or on behalf of the Company. With respect to the
Company's future financial performance and guidance, the Company's ability to
maintain liquidity, to reduce expenses and to attain positive free cash flow,
such factors include, but are not limited to (1) the ability and willingness
of wireless service providers to maintain or increase their capital
expenditures, (2) the Company's ability to retain current lessees on towers,
(3) the Company's ability to secure and deliver anticipated services business
at contemplated margins, (4) the Company's ability to secure as many site
leasing tenants as planned at anticipated lease rates, (5) the Company's
ability to expand its site leasing business, (6) the Company's ability to
continue to comply with covenants and the terms of its senior credit facility,
as amended, (7) the business climate for the wireless communications industry
in general and the wireless communications infrastructure providers in
particular, and (8) the continued dependence on towers and outsourced site
development services by the wireless communications industry. With respect to
the statement regarding the completion of the pending new towers, such factors
would include the Company's ability to successfully address zoning issues,
carrier design changes, changing local market conditions and the impact of
adverse weather conditions. The Company undertakes no obligation to update
forward-looking statements to reflect events or circumstances after the date
hereof.
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SOURCE SBA Communications Corporation
-0- 10/04/2002
/CONTACT: Pamela J. Kline, Vice President, Capital Markets, SBA
Communications Corporation, +1-561-995-7670/
/Company News On-Call: http://www.prnewswire.com/gh/cnoc/comp/120891.html/
/Web site: http://www.sbasite.com /
(SBAC)
CO: SBA Communications Corporation
ST: Florida
IN: TLS
SU: ERP
KW
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8394 10/04/2002 09:01 EDT http://www.prnewswire.com