SARASOTA, Fla.-Global Signal Inc., the nation’s third largest tower company with around 11,000 towers, reported a third-quarter net loss of $15.4 million, or 23 cents per share. The numbers are a steep decline from the company’s year-ago net income of $5.3 million, or 10 cents per share.
Global Signal attributed the loss to the costs of integrating the Sprint Nextel Corp. tower sites into its operations. The company has the exclusive right to lease or operate 6,600 of Sprint Nextel’s towers for 32 years. Global Signal acquired the towers in late May for about $1.2 billion in cash.
The company said its adjusted earnings before interest, taxes, depreciation and amortization rose to $55.5 million, or 79 cents per share, a 65-percent increase from the year-ago figure of 48 cents per share. Adjusted funds from operations increased to $30.3 million, or $43 cents per share, a 26-percent increase from 34 cents a year-ago.
Global Signal’s dividend payment will be 50 cents per share, up 33 percent from last year’s third-quarter dividend payment of 37 cents per share.
“This was our first full quarter of operations since completing the Sprint transaction,” said David Grain, president of Global Signal. “During the third quarter, our sites enjoyed strong leasing activity from both the big four wireless telephony service providers as well as from other national and regional carriers. We continue to have a robust pipeline of applications and I expect it to have a positive impact on our leasing activity next quarter.”
Wall Street didn’t seem to mind news of the company’s losses. Global Signal’s stock was trading up $1.89 per share early Tuesday at $43.03.
