SBA Communications Corporation (SBAC) has reported an 83.06 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $5.26 million, or $0.04 a share in the quarter, compared with $31.02 million, or $0.24 a share for the same period last year.
Revenue during the quarter went up marginally by 2.35 percent to $416.50 million from $406.94 million in the previous year period. Total expenses were 74.21 percent of quarterly revenues, down from 79.82 percent for the same period last year. This has led to an improvement of 561 basis points in operating margin to 25.79 percent.
Operating income for the quarter was $107.43 million, compared with $82.13 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $287.02 million compared with $274.32 million in the prior year period. At the same time, adjusted EBITDA margin improved 150 basis points in the quarter to 68.91 percent from 67.41 percent in the last year period.
"We had a solid finish to 2016," commented Jeffrey A. Stoops, president and chief executive officer. "Domestic leasing activity was stable and very consistent with the first three quarters of 2016 in terms of new revenue contracted for per site. Internationally, we had a strong finish of leasing activity which was sequentially greater than the prior quarter. Against this solid leasing demand, we continued to execute very well, once again producing industry-leading tower cash flow and adjusted EBITDA margins. We were active investing capital in the quarter, increasing our portfolio to over 26,000 sites owned and repurchasing 3.4 million shares of our common stock. The combination of strong operational performance and sound capital allocation drove material gains in AFFO per share. We remain firmly on track to achieve our goal of $10 or more of AFFO per share in 2020."
For financial year 2017, SBA Communications Corporation forecasts revenue to be in the range of $1,673 million to $1,713 million. The company projects net income to be in the range of $75 million to $125 million.
Working capital turns negative
Working capital of SBA Communications Corporation has turned negative to $548.88 million on Dec. 31, 2016 from positive $20.59 million on Dec. 31, 2015. Current ratio was at 0.37 as on Dec. 31, 2016, down from 1.08 on Dec. 31, 2015.
Days sales outstanding were almost stable at 9 days for the quarter, when compared with the last year period.
Debt moves up marginally
SBA Communications Corporation has witnessed an increase in total debt over the last one year. It stood at $8,775.58 million as on Dec. 31, 2016, up 3.83 percent or $323.51 million from $8,452.07 million on Dec. 31, 2015. Total debt was 119.22 percent of total assets as on Dec. 31, 2016, compared with 114.17 percent on Dec. 31, 2015. Interest coverage ratio improved to 1.36 for the quarter from 0.97 for the same period last year.
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