BOCA RATON, Fla.-SBA Communications Corp. reported third quarter financial results in line with expectations.
SBA’s total revenues were up from the year ago period by 64 percent to $67 million, which the company credited to higher site leasing revenue despite lower site development revenue. Site leasing revenue was up 29.9 percent to $36 million for the quarter and site development revenue was down 12.1 percent to $31 million. The company recorded a net loss of $31.7 million, or 62 cents per share, including $1.2 million in restructuring and other charges.
SBA built 23 towers during the quarter and now owns 3,875 tower sites, not including 23 remaining new build towers it plans to complete by year-end. The company said it added an annualized gross revenue of approximately $4,700 per tower.
Free cash flow, which tower companies have been striving to turn positive by early 2003, was recorded as negative $8.5 million for the third quarter and cash capital expenditures were $13.5 million. “Assuming no improvement in carrier cell-site activity from third quarter levels, we now expect to produce approximately break-even free cash flow in the first quarter of 2003 but not attain sustained positive free cash flow until 2004,” said Jeffrey Stoops, president and chief executive officer.
Shares of SBA were trading at 50 cents Tuesday evening.
