Four of the five publicly traded wireless communications tower firms
reinforced notions that this year would be a better one for the sector in their
second-quarter 2004 financial results, released last week.
In addition to its
improved second-quarter results, SpectraSite Inc. announced the search is on for
a new chief financial officer.
The company said revenues reached $87.4
million, up from $77.6 million from the second quarter last year. Net income
came in at $6.3 million, or 13 cents per share, compared with a net loss of $7.6
million, or 16 cents per share, in the year-ago period.
EBITDA, defined as
net income before depreciation, amortization and accretion expenses, interest
and income-tax expenses, reached $47.3 million, also up from $37.9 million last
year. Net cash totaled $43.7 million vs. $20.6 million last year, and free cash
flow grew to $32.9 million compared with $16.7 million last year.
Same-site
year-over-year revenue growth was 10 percent. SpectraSite ended the quarter with
7,604 towers and in-building systems.
Along with its earnings, SpectraSite
announced David Tomick, CFO, executive vice president and assistant secretary,
has left the company. Gabriela Gonzalez, senior vice president and chief
accounting officer, and Steven Lilly, vice president of finance and treasurer,
will serve as interim co-CFOs while the company conducts a search to fill the
position.
SpectraSite continues to fulfill its agreement with SBC
Communications Inc., under which it agreed to lease up to 600 SBC towers between
May 2003 and August 2004. SpectraSite leased seven towers during the second
quarter and said it is committed to leasing an additional 467 during 2004.
Not including possible SBC tower acquisitions, SpectraSite raised its
full-year 2004 revenue guidance to between $345 million and $349 million as
opposed to previous predictions of $342 million to $348 million.
Global
Signal Inc. last week announced its quarterly financial results for the first
time since its initial public offering closed in June.
Net income reached
$5.1 million, or 11 cents per share, compared with $5.5 million, or 13 cents per
share, for the second quarter of 2003. EBITDA totaled $24.5 million, or 52 cents
per share, compared with $21.4 million, or 50 cents per share, for the second
quarter of 2003.
“We are pleased with the results of our first quarter
since the completion of our IPO in early June. Wireless demand drivers continue
to fuel the growth in our business,” said Wesley Edens, Global Signal’s
chairman and chief executive officer. “We expect that our ability to
generate stable dividends and realize growth will differentiate us from our
competitors.”
Global Signal also announced it will acquire 235 wireless
communications towers from private tower venture Lattice Communications L.L.C.
for $115 million.
The towers are primarily located in Indiana, Ohio, Alabama,
Kansas and Georgia. Their tenants include the top six wireless carriers and
subsidiaries of Cinergy Corp., which uses the sites for their private
communications and microwave network. The acquisition is expected to close in
the fourth quarter.
Lattice said it will retain the 80 remaining towers it
owns or has under development.
The acquisition brings Global Signal’s tower
portfolio to more than 3,300 towers or other communications sites.
Analysts
have named Global Signal among the potential buyers of Sprint Corp.’s Sprint
Sites USA tower business, although Sprint’s reported $1 billion purchase price
has been deemed exorbitant.
Crown Castle International Corp.’s second-quarter
2004 earnings are the first set to reflect the company’s U.K. business as
discontinued operations, pending the closing of that previously announced sale.
Revenue from site rental came in at $131.4 million, up from $116.6 million a
year ago. U.S. site rental revenue alone increased 9.3 percent to $120.8
million.
Meanwhile, operating income reached $3.5 million, improved from a
loss of $10 million a year ago. Net loss was $39.6 million, or 22 cents per
share, improved from a loss of $80.8 million, or 47 cents per share, last year.
Net cash from operating activities was $35.2 million, and free cash flow was
$22.6 million.
The company increased its 2004 site-rental revenue guidance
from between $524 million and $528 million to between $525 million and $530
million. For 2005, the company expects site-rental revenue to be between $565
million and $575 million.
SBA Communications Corp. recorded total revenues of
$56.3 million, up from $46 million the year earlier period. Of that,
site-leasing revenues made up $35.5 million, increased 11.8 percent from the
year-ago period. Tower cash flow reached $24.8 million, up 17.6 percent over
last year. Meanwhile, revenues from site development were $20.9 million, up from
last year’s $14.3 million. SBA said it has sold portions of its western region
services business and is continuing efforts to sell the rest.
SBA recorded net
loss of $23.2 million, or 41 cents per share, improved from a loss of $67.6
million, or $1.32 per share, last year. EBITDA was $19.5 million, up from $15.9
million a year ago.
SBA said it owned 3,045 towers at the end of the quarter,
excluding 32 held for sale.
The company expects to report total revenues
between $53 million and $57.5 million for the third quarter and $214 million to
$226 million for full-year 2004.
The entire sector was trading up at press
time Friday, reflecting Wall Street’s positive reaction to the upbeat results.
SpectraSite was trading at $42.53 per share, Global Signal at $20.51 per share,
Crown at $14.29, and SBA at $4.85 per share. American Tower Corp., which will
release its earnings this week, was also trading up at $14.64 per share.
