SBA Communications Corp. reported revenues for the third quarter totaled $52.4 million, down from $60.8 million in third-quarter 2002. The company also released the results of a re-audit of its fiscal year 2001 and 2002 financial statements to reflect the sale of towers to AAT Communications Corp. earlier this year, as well as other towers held for sale.
SBA said its site leasing revenue was up 8.3 percent to $32.2 million, but site development revenues were down from $31.1 million last year to $20.2 million this year. Analysts from Raymond James & Associates Inc. noted the lower-than-expected profitability of the company’s services division and altered its estimates to reflect a more conservative view of that business.
Adjusted EBITDA (defined as loss from continuing operations plus net interest expenses, taxes, depreciation, accretion and amortization) for the quarter was $15.8 million compared with $16 million for the third quarter of 2002. Net loss stood at $19.7 million, or 38 cents per share, compared with $31.7 million, or 62 cents per share, for the year-ago quarter. The company ended the quarter with total debt of $875.9 million, down from $1.019 billion at year-end 2002.
SBA expects to report revenues of $51.5 million to $56 million for the fourth quarter and $205 million to $210 million for full-year 2003; adjusted EBITDA of $15.5 million to $17.5 million for the fourth quarter and $62.5 million to $64.5 million EBITDA for full-year 2003; and net loss of $26 million to $29 million for the fourth quarter and $146 million to $149 million for full-year 2003.
SBA’s restated financial statements for 2001 and 2002 show total revenues for 2001 and 2002 were unchanged. Net loss for 2001 was up slightly from the previous report to $125.8 million and net loss for 2002 was $249 million, down from $273 million previously reported.
Raymond James said it will keep its Market Perform rating on the company’s stock, adding that although it is optimistic in its outlook for the core tower business, there is still limited visibility as to when positive valuation free cash flow will be achieved.
