Sba Communications Corporation · NASDAQ:SBAC
Sba Communications — Investor Presentation (May 2008)
28 slides from Sba Communications's investor presentation, May 16, 2008
Slide 1: SBA Communications Corporation 2007/2008 Review
SBA Communications Corporation 2007/2008 Review Exhibit 99.1 SBA Communications Corporation 2007/2008 Review
Slide 2: SEC Disclosures
SBA Communications Corporation SEC Disclosures SEC Disclosures Statements made in the course of this presentation that state the Company’s or management’s intentions, beliefs, expectations or predictions of the future are forward-looking statements. It is important to note that the Company’s actual
Slide 3: 2007 and Q1 2008 In Review
SBA Communications Corporation 2007 and Q1 2008 2007 and Q1 2008 In Review In Review
Slide 4: Our Strategy
SBA Communications Corporation Our Strategy Our Strategy
Slide 5: Recent Operating Highlights
SBA Communications Corporation Recent Operating Highlights Recent Operating Highlights Larger portfolio: 6369 towers at April 30, 2008 579 towers under contract to purchase (1) Very strong growth metrics (Q1 2008 vs. Q1 2007) Site leasing tower revenue growth of 16.8% Tower cash flow growth of 21.4%
Slide 6: $550 Million Recent Debt Offering
SBA Communications Corporation $550 Million Recent Debt Offering $550 Million Recent Debt Offering SBA Communications Corporation 1.875% Convertible Notes due May 2013 Conversion price $41.46 effectively increased to $67.37 through hedges/warrants Use of Proceeds ($536.8 million net proceeds): $81.5
Slide 7: Pro Forma Capitalization
SBA Communications Corporation Pro Forma Capitalization Pro Forma Capitalization (1) (1) (1) Reflects issuance of $550 million of 1.875% convertible notes and net proceeds there from; excludes pro-forma impact of TowerCo acquisition. (2) Q08 Adjusted EBITDA of $61.5 million. (3) Subsequent to March
Slide 8: SBA
SBA Communications Corporation
Slide 9: Multi-Year Visibility on Carrier Activity
SBA Communications Corporation Multi-Year Visibility on Multi-Year Visibility on Carrier Activity Carrier Activity AWS 66 Auction Winners – new market launches into 2009 AT&T - 3G overlay and network improvement to continue into 2009; 4G through 700 MHZ Clearwire and Sprint 4G – multi-year network e
Slide 10: Recent Developments Remain Very Positive
Recent Developments Remain Recent Developments Remain Very Positive Very Positive Data – wireless data usage steadily increasing “Open Access” – open access networks will highlight network quality issues 700 MHZ Auction - additional spectrum to be deployed on an accelerated basis; 4G/LTE to require
Slide 11: Highly Attractive Asset Portfolio
Highly Attractive Asset Portfolio Highly Attractive Asset Portfolio Portfolio concentrated in the United States Nationwide, strategic footprint with presence in key markets Substantial majority built by SBA or other tower developers Towers built or acquired with multi-tenant focus High average capac
Slide 12: Solid Tenant Growth
Solid Tenant Growth Solid Tenant Growth Solid Tenant Growth 13,103 13,417 13,602 13,866 14,212 14,781 15,429 15,726 $1,675 $1,705 $1,728 $1,752 $1,767 $1,783 $1,807 $1,828 $1,600 $1,625 $1,650 $1,675 $1,700 $1,725 $1,750 $1,775 $1,800 $1,825 $1,850 $1,875 $1,900 $1,925 $1,950 $1,975 $2,000 12,000 12
Slide 13: Strong Leasing Revenue Growth
$161.3 $256.2 $321.8 $380.0 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 2006(1) 2008E(2) Strong Leasing Revenue Growth Strong Leasing Revenue Growth Strong Leasing Revenue Growth ($ in millions) (1) Includes $63.2 million of Leasing Revenue associated with the AAT acquisition. (2) Ba
Slide 14: Strong Tower Cash Flow Growth
$117.0 $186.5 $236.2 $289.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 2006(1) 2008E(2) Strong Tower Cash Flow Growth Strong Tower Cash Flow Growth Strong Tower Cash Flow Growth ($ in millions) (1) Includes $27.0 million of Tower Cash Flow associated with the AAT acquisition. (2) Based on the m
Slide 15: Organic Growth
‘ Organic Growth 7 , oa } a Appropriate Levees ‘i
Slide 16: Our Portfolio Growth Focus
Our Portfolio Growth Focus Our Portfolio Growth Focus 2007 Portfolio Increase - 12.0% - added 669 towers in 2007 Built 61 towers; acquired the rest 2008 Portfolio Increase – target was 5 to 10% increase – already at 11.25% owned or under contract Thru April 30, 2008 Acquired 128 towers; 579 towers u
Slide 17: Strong Portfolio Growth Results
Strong Portfolio Growth Strong Portfolio Growth Results Results 3,304 5,551 6,220 6,948 2,500 3,500 4,500 5,500 6,500 7,500 2006(1) 2008YTD-E(2) (1) Includes 1,850 towers acquired in the AAT acquisition. (2) Includes 579 towers under contract to purchase as of April 30, 2008 (including an estimated
Slide 18: High Quality National Footprint
High Quality National Footprint High Quality National Footprint 6,900+ Towers in the U.S. and Puerto Rico (1) SBA Towers (1) Includes 579 towers under contract to purchase as of April 30, 2008.
Slide 19: Growth in Equity Free Cash Flow per Share
Growth in Equity Free Cash Flow per Share
Slide 20: Appropriate Leverage
Appropriate Leverage Appropriate Leverage Maintain long-term leverage within target range Maintain target net cash interest coverage ratio Considerations Interest rates Organic growth prospects Refinancing obligations Mix of secured and unsecured debt Mix of markets (CMBS, convertible and bank marke
Slide 21: Controlled Net Debt/Annualized Adjusted EBITDA Ratio
9.0x 7.7x 7.8x 8.4x 8.1x 8.1x 8.0x 7.3x 5x 6x 7x 8x 9x 10x 6/30/2006 9/30/2006 12/31/2006 3/31/2007 6/30/2007 9/30/2007 12/31/2007 3/31/2008 Controlled Net Debt/Annualized Controlled Net Debt/Annualized Adjusted EBITDA Ratio Adjusted EBITDA Ratio
Slide 22: Net Cash Interest Coverage Ratio
Net Cash Interest Coverage Ratio Net Cash Interest Coverage Ratio Note: Includes accretion on zero coupon notes; excludes amortization of deferred financing fees. }
Slide 23: Managing Leverage
Managing Leverage
Slide 24: Substantial Growth in Adjusted EBITDA & Margin
$95.3 $161.8 $209.4 $262.0 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 55.0% 60.0% $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 2008E(1) ($ in millions) Substantial Growth in Adjusted Substantial Growth in Adjusted EBITDA & Margin EBITDA & Margin (1) Based on the midpoint of Total Revenue and Adjuste
Slide 25: Tremendous Equity Free Cash Flow Growth
($ in millions) Tremendous Equity Free Tremendous Equity Free Cash Flow Growth Cash Flow Growth (1) Based on the midpoint of Equity Free Cash Flow guidance given April 30, 2008. $24.4 $67.8 $117.2 $158.5 $10.0 $30.0 $50.0 $70.0 $90.0 $110.0 $130.0 $150.0 $170.0 $190.0 2008E(1)
Slide 26: Strong Equity Free Cash Flow Per Share Growth
Strong Equity Free Cash Flow Strong Equity Free Cash Flow Per Share Growth Per Share Growth
Slide 27: Shareholder Rewards
Shareholder Rewards Shareholder Rewards Peer Group Companies AMERICAN TOWER CORP CROWN CASTLE INTL CORP GLOBAL SIGNAL INC (Included from 6/3/2004 - 1/12/2007. Acquired by Crown Castle Intl 1/16/2007) SPECTRASITE INC (Included 2/14/2003 - 8/5/2005. Acquired by American Tower 8/8/2005)
Slide 28: Questions
Questions Questions
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