SBAC: Reports Strong Third Quarter Results Above Expectations|
Salomon Smith Barney
Friday, November 12, 1999
--SUMMARY:--SBA Communications Corp.--Broadcasting
* SBAC reported strong 3Q99 results above our expectations: Revenue of
$24.6MM, TCF of $7.7MM, EBITDA of $2.9MM and ATCF loss/sh. of ($0.13) vs.
our estimates of $21.1MM, $7.0MM, $2.3MM and ($0.14).
* Rental revenue and cash flow were $7.1MM and $3.9MM vs. our estimates of
$7.1MM and $3.8MM; Development revenue and CF were $17.5MM and $3.8MM vs.
our estimates of $14.1MM and $3.1MM.
* SBAC added 186 towers in 3Q (108 new builds and 78 acquired).
* Recent agreement to purchase 34 towers from Nucentrix for $7MM is a
prudent use of capital that boosts SBAC's presence in the MidWest.
* SBAC conference call is at 10:00AM on 11/12/99 - # is 1-800-230-1092
* Maintain estimates pending conference call in the morning.
* Maintain 2H (Outperform, High Risk) and $17 price target.