SBA Communications Corporation (NASDAQ: SBAC) yesterday reported results for the quarter ended March 31, 2023. In addition, the company announced yesterday that its Board of Directors has declared a quarterly cash dividend of $0.85 per share of the Company’s Class A Common Stock. The distribution is payable June 21, 2023 to the shareholders of record at the close of business on May 26, 2023.
“We are off to a good start to 2023 and as a result are increasing our full year outlook for most key metrics,” commented Jeffrey A. Stoops, President and Chief Executive Officer. “We produced solid growth in Adjusted EBITDA and AFFO per share while operationally executing at a very high level. The material number of towers we added to our portfolio in 2022 are performing ahead of plan. We are experiencing continued solid demand in substantially all of our markets,” Stoops said.
Total revenues in the first quarter of 2023 were $675.5 million compared to $619.8 million in the prior year period, an increase of 9.0 percent. Site leasing revenue in the first quarter of 2023 of $617.3 million was comprised of domestic site leasing revenue of $454.8 million and international site leasing revenue of $162.4 million. Domestic cash site leasing revenue in the first quarter of 2023 was $447.4 million compared to $423.5 million in the prior year period, an increase of 5.6 percent. International cash site leasing revenue in the first quarter of 2023 was $163.0 million compared to $127.9 million in the prior year period, an increase of 27.4 percent, or 29.4 percent on a constant currency basis. Site development revenues in the first quarter of 2023 were $58.2 million compared to $60.3 million in the prior year period, a decrease of 3.5 percent.
Site leasing operating profit in the first quarter of 2023 was $497.2 million, an increase of 9.9 percent over the prior year period. Site leasing contributed 97.2 percent of the Company’s total operating profit in the first quarter of 2023. Domestic site leasing segment operating profit in the first quarter of 2023 was $385.1 million, an increase of 4.9 percent over the prior year period. International site leasing segment operating profit in the first quarter of 2023 was $112.1 million, an increase of 31.7 percent from the prior year period.
“All of our U.S. wireless carrier customers remain actively engaged in building out their 5G networks,” Stoops said. “Due to that customer activity, our services personnel are staying very busy. Internationally, growth in the first quarter remained strong, driven by organic lease-up, CPI-based escalators and portfolio growth. Domestically and internationally, much additional 5G network deployment from our customers is expected on our assets. Our balance sheet remains very strong, and our net debt/Adjusted EBITDA leverage ratio is near multi-year lows, and we have no refinancing obligations until October of 2024. Our cash flows continue to grow, providing multiple opportunities for the creation of additional shareholder value. We materially increased our cash dividend while maintaining a cash dividend / AFFO per share ratio of only 27%. We believe the future is very bright, and we are excited to support our customers in the advancement of wireless networks across all of our markets.”
Tower Cash Flow in the first quarter of 2023 of $491.0 million was comprised of Domestic Tower Cash Flow of $377.1 million and International Tower Cash Flow of $113.9 million. Domestic Tower Cash Flow in the first quarter of 2023 increased 5.2 percent over the prior year period and International Tower Cash Flow increased 31.1 percent over the prior year period, or increased 33.0 percent on a constant currency basis. Tower Cash Flow Margin was 80.4 percent in the first quarter of 2023, as compared to 80.8 percent for the prior year period.
Net income in the first quarter of 2023 was $100.6 million, or $0.92 per share, and included a $27.4 million gain, net of taxes, on the currency-related remeasurement of U.S. dollar denominated intercompany loans with foreign subsidiaries. Net income in the first quarter of 2022 was $188.3 million, or $1.72 per share, and included a $72.9 million gain, net of taxes, on the currency-related remeasurement of U.S. dollar denominated intercompany loans with foreign subsidiaries.
Adjusted EBITDA in the first quarter of 2023 was $459.3 million, an 8.4 percent increase over the prior year period. Adjusted EBITDA Margin in the first quarter of 2023 was 68.7 percent compared to 69.3 percent in the prior year period.
