SBA Communications Corporation (SBAC) saw its loss narrow to $15.37 million, or $0.12 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $155.95 million, or $1.23 a share.
Revenue during the quarter went up marginally by 0.14 percent to $411.32 million from $410.74 million in the previous year period. Total expenses were 73.69 percent of quarterly revenues, down from 89.51 percent for the same period last year. This has led to an improvement of 1582 basis points in operating margin to 26.31 percent.
Operating income for the quarter was $108.21 million, compared with $43.08 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $283.21 million compared with $275.19 million in the prior year period. At the same time, adjusted EBITDA margin improved 186 basis points in the quarter to 68.85 percent from 67 percent in the last year period.
"The third quarter was another solid quarter for SBA," commented Jeffrey A. Stoops, president and chief executive officer. "Organic leasing demand was steady, consistent with both the type and amount of customer activity experienced all year. Amendment activity in the U.S. was very strong, with our customers adding to or modifying existing macro sites to refarm 2G and 3G uses to 4G LTE or to add new spectrum to their networks. In our international markets, customer activity was more balanced between new macro sites and additions or modifications to existing macro sites. Our Outlook for the Fourth Quarter of 2016 assumes customer activity remains materially the same as we have experienced during the first three quarters of the year. We ended the quarter within our target leverage range. Finally, we completed a refinancing of a material portion of our indebtedness on very favorable terms, substantially reducing our interest costs on that portion of our capital structure. Our third quarter success in each of these areas, organic growth, operating performance, asset growth, stock repurchases and financing, positively contributes to our long term goal of producing AFFO of $10 or more per share in 2020."
For financial year 2016, SBA Communications Corporation forecasts revenue to be in the range of $1,628.70 million to $1,638.70 million. The company projects net income to be in the range of $67 million to $82 million.
For the fourth-quarter 2016, SBA Communications Corporation forecasts revenue to be in the range of $412 million to $422 million.
Working capital increases sharply
SBA Communications Corporation has recorded an increase in the working capital over the last year. It stood at $119.43 million as at Sep. 30, 2016, up 156.27 percent or $72.83 million from $46.60 million on Sep. 30, 2015. Current ratio was at 1.16 as on Sep. 30, 2016, down from 1.16 on Sep. 30, 2015.
Days sales outstanding were almost stable at 19 days for the quarter, when compared with the last year period.
Debt moves up
SBA Communications Corporation has witnessed an increase in total debt over the last one year. It stood at $9,031.27 million as on Sep. 30, 2016, up 6.41 percent or $544.42 million from $8,486.85 million on Sep. 30, 2015. Total debt was 114.09 percent of total assets as on Sep. 30, 2016, compared with 114.74 percent on Sep. 30, 2015. Interest coverage ratio improved to 1.29 for the quarter from 0.52 for the same period last year.
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