Sba Communications Corporation · NASDAQ:SBAC
Sba Communications — Investor Presentation (February 2006)
18 slides from Sba Communications's investor presentation, Feb 28, 2006
Slide 1: SBA Communications Corporation
SBA Communications SBA Communications Corporation Corporation Exhibit 99.1
Slide 2: SEC Disclosures
SEC Disclosures SEC Disclosures SEC Disclosures Statements made in the course of this presentation that state the Company’s or management’s intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. It is important to note that the Company’s actual results
Slide 3: The Answer is High Quality Growth
The Answer is High Quality Growth Why SBAC? Why SBAC? Why SBAC? Wireless is the fastest growing segment of Telecom Exclusive tower assets of high quality protected by high barriers to entry Strong organic tower cash flow and adjusted EBITDA growth Potential for accelerated growth through adding new
Slide 4: Demand Drivers: Wireless Subscriber Growth, Subs per Cell Site, MOUs
Summary Wireless Subscriber Growth (1)(2) Historical Subs per Cell Site (1)(2) Historical MOUs and Cell Sites (1)(2) 1,169 1,306 1,427 1,477 1,217 1,060 1,052 1,051 1,026 1,008 1,006 1,089 1,000 1,200 1,400 1,600 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 (1) Kagan Tower Investor, December
Slide 5: Towers are essential to delivery of wireless
Towers are essential to delivery of wireless Future Expectations Future Expectations Increased subscribers and minutes of use Increased penetration rates – U.S. (70%) still well below Europe and Japan (95%+) Basic voice network enhancements Data network rollouts and enhancements Additional spectrum
Slide 6: SBA Tower Portfolio
SBA Tower Portfolio SBA Tower Portfolio SBA Tower Portfolio
Slide 7: Asset Quality – Key Strength
Asset Quality – Key Strength Asset Quality – Asset Quality – Key Strength Key Strength Substantial majority of portfolio built by SBA or other tower developers All towers built or bought with multi-tenant focus Average capacity – 4+ telephony tenants Ample remaining capacity - current use – 2.5 tena
Slide 8: Results Driven by Strong New Tenant Rents
Results Driven by Strong New Tenant Rents Solid Tenant Growth Solid Tenant Growth Solid Tenant Growth 5,000 6,000 7,000 8,000 4Q 04 Q1 05 Q2 05 Q3 05 Q4 05 $1,400 $1,500 $1,600 $1,700 $1,800 Number of Leases Average Cash Rent Per Month Results Driven by Strong New Tenant Rents Results Driven by Stro
Slide 9: Per Tower Revenue Growth
Per Tower Revenue Growth (1) Per Per Tower Tower Revenue Revenue Growth Growth (1) (1) $44,751 $46,573 $48,588 $49,682 $49,836 $51,557 $52,643 $49,218 $30,000 $35,000 $40,000 $45,000 $50,000 $55,000 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 Leasing Revenue Per Tower (1) Revenue as reported div
Slide 10: Consistent Tower Cash Flow Growth
Consistent Tower Cash Flow Growth Consistent Tower Cash Flow Growth Consistent Tower Cash Flow Growth 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 2Q O5 3Q O5 4Q 05 $33.6 $35.2 $37.3 $37.9 $38.7 $40.6 $42.3 $10.2 $10.6 $10.5 $10.5 $10.7 $10.4 $10.8 $10.7 $23.5 $24.6 $26.2 $26.8 $27.3 $36.7 $29.8 $31.5 $28.4 $5 $15
Slide 11: Strong TCF Margin Expansion
Strong TCF Margin Expansion Strong TCF Margin Expansion Strong TCF Margin Expansion 69.8% 69.9% 71.4% 72.0% 71.9% 74.6% 73.5% 73.3% $0 $10 $20 $30 $40 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 60% 65% 70% 75% 80% 85% Tower Cash Flow Tower Cash Flow Margin
Slide 12: Low Non-Discretionary Capex
Low Non-Discretionary Capex (1) Low Non-Discretionary Capex Low Non-Discretionary Capex (1) (1) (1) Includes maintenance and general corporate capital expenditures. Does not include discretionary capital expenditures. (2) Based on mid-point of guidance given February 20, (2) $4.5 $4.4 $3.5 $4.2 $0 $
Slide 13: Strong Adjusted EBITDA Growth
Strong Adjusted EBITDA Growth Strong Adjusted EBITDA Growth (1) (1) (1) From continuing operations (2) Mid-point of guidance given February 20, 2006 (2) $61.0 $78.8 $95.3 $111.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 $100.0 $110.0 $120.0 2006(E)
Slide 14: New Asset Growth
New Asset Growth New Asset Growth New Asset Growth Constructed Acquired (2) (1) (1) Mid point of guidance given February 20, 2006 (2) Acquisitions announced in February 20, 2006 press release
Slide 15: Accretive Transactions
Accretive Transactions Adding Towers Adding Towers Highly competent at identifying, buying and building quality towers Discretionary portfolio growth while maintaining comfortable liquidity position within target leverage range Criteria for new tower builds - One tenant on day one at fair market ren
Slide 16: Target Leverage Range 6.0x – 8.0x
Target Leverage Range 6.0x – 8.0x Rapid Deleveraging Rapid Deleveraging Rapid Deleveraging Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 60% 65% 70% 75% 80% 85% (1) Net debt divided by Annualized Adjusted EBITDA 12.6x 11.0x 10.3x 9.7x 10.3x 8.9x 8.3x 6.5x Target Leverage Range 6.0x – 8.0x Target L
Slide 17: Where We Are Heading
Where We Are Heading Where We Are Heading Where We Are Heading Continued Growth • Organic • New Assets • Acquisitions • New builds • Ground lease purchases Continued operational excellence Further interest rate reductions Appropriate leverage Accelerated equity free cash flow growth
Slide 18: SBA Communications Corporation
SBA Communications Corporation SBA Communications SBA Communications Corporation Corporation
SBA Communications — Investor Presentation (February 2006) on 6ix