Q4 2016 SBA Communications Corp Earnings Call

Feb 27, 2017 AM EST
SBAC.OQ - SBA Communications Corp
Q4 2016 SBA Communications Corp Earnings Call
Feb 27, 2017 / 10:00PM GMT 

==============================
Corporate Participants
==============================
   *  Mark DeRussy
      SBA Communications Corporation - VP of Finance
   *  Brendan Cavanagh
      SBA Communications Corporation - CFO
   *  Jeff Stoops
      SBA Communications Corporation - President & CEO

==============================
Conference Call Participants
==============================
   *  Rick Prentiss
      Raymond James & Associates - Analyst
   *  Jonathan Schildkraut
      Guggenheim Securities - Analyst
   *  Mike McCormack
      Jefferies & Company - Analyst
   *  Josh Fantin
      BofA Merrill Lynch - Analyst
   *  Colby Synesael
      Cowen and Company - Analyst
   *  Jonathan Atkin
      RBC Capital Markets - Analyst
   *  Matthew Heinz
      Stifel Nicolaus - Analyst
   *  Nick Del Deo
      MoffettNathanson - Analyst
   *  Walter Piecyk
      BTIG - Analyst
   *  Unidentified Participant
      - Analyst
   *  Spencer Kurn
      New Street Research - Analyst
   *  Mike Rollins
      Citigroup - Analyst

==============================
Presentation
------------------------------
Operator   [1]
------------------------------
 Ladies and gentlemen, thank you for standing by. Welcome to the SBA 2016 fourth-quarter results conference call.

 (Operator Instructions)

 As a reminder, the conference is being recorded. I will now turn the meeting over to our host, Vice President, Finance, Mark DeRussy. Please go ahead, sir.

------------------------------
 Mark DeRussy,  SBA Communications Corporation - VP of Finance   [2]
------------------------------
 Thank you. Good evening, everyone, and thank you for joining us for SBA's fourth-quarter 2016 earnings conference call. Here with me today are Jeff Stoops, our President and Chief Executive Officer; and Brendan Cavanagh, our Chief Financial Officer.

 Some of the information we will discuss on this call is forward-looking, including but not limited to any guidance for 2017 and beyond. These forward-looking statements may be affected by the risks and uncertainties in our business. Everything we say here today is qualified in its entirety by cautionary statements and risk factors set forth in today's press release and our SEC filings, which documents are publicly available. These factors and others have affected historical results, may affect future results, and may cause future results to differ materially from those expressed in any forward-looking statement we may make. Our statements are as of today, February 27, and we have no obligation to update any forward-looking statement we may make.

 Our comments will include non-GAAP financial measures as defined in Regulation G, and other key operating metrics. The reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, and the other information required by Regulation G, can be found in our supplemental financial data package. In addition to the Regulation G information, this package also contains other current and historical financial data. This is located on our investor relations landing page at IR. SBAsite.com. With that, I will now turn the call over to Brendan.

------------------------------
 Brendan Cavanagh,  SBA Communications Corporation - CFO   [3]
------------------------------
 Thank you, Mark. Good evening. The Company finished the year with another strong financial performance. We were in the upper half of our guidance ranges for site leasing revenue, tower cash flow, adjusted EBITDA, and AFFO -- even with negative impacts from unfavorable moves in foreign currency, as compared to the assumed rates we used when setting guidance.

 Our solid performance was primarily driven by operational out-performance on the leasing side of our business. Total GAAP site leasing revenues for the fourth quarter were $393.6 million, and cash site leasing revenues were $386.9 million. Weaker-than-expected foreign exchange rates negatively impacted leasing revenue by approximately $800,000 relative to guidance. Operational leasing activity during the quarter was as expected and in line with activity levels seen throughout 2016.

 Same tower recurring cash leasing revenue growth for the fourth quarter was 4.8% over the fourth quarter of 2015. On a gross basis, the same tower growth was 7.5%. The net same tower growth calculation was negatively impacted by 2.7% of churn. Domestic same tower recurring cash leasing revenue growth over the fourth quarter of last year was 7% on a gross basis, and 4% on a net basis, excluding 3% of churn -- over two-thirds of which was related to Metro, Leap and Clearwire decommissioning.

 Internationally, on a constant currency basis, gross same tower cash leasing revenue growth was 11.6%, exclusive of 40 basis points of churn, most of which was from one narrowband customer in Canada. Gross organic growth in Brazil was 11.5%. As mentioned, operational leasing activity in the quarter remained steady and as expected.

 Approximately 70% of incremental domestic leasing revenue added came from amendments, and the big four carriers represented 88% of total incremental domestic leasing revenue added during the quarter. International leasing activity was up sequentially over the third quarter, with solid contributions from all of our markets.

 During the fourth quarter, cash site leasing revenue denominated in currencies other than US dollars was 12.2% of total cash site-leasing revenue, the substantial majority of which was from Brazil. With Brazil representing 11.5% of all cash site leasing revenues during the quarter, and 7.9% of cash site leasing revenue, excluding revenues from pass-through expenses.

 With regard to our fourth-quarter churn, we saw a sequential increase over Q3 in the amount of churn from leases with Metro, Leap and Clearwire, which we expect to see continue into early 2017. As of December 31, we have approximately $38 million of annual recurring run rate revenue, or approximately 2.4% of current total leasing revenue from leases with Metro, Leap and Clearwire that we ultimately expect to churn off over the next three years. That's down from $50 million a quarter ago as a result of fourth-quarter churn.

 Based on termination requests received to date, we anticipate the impact of consolidation churn from these customers to be its greatest in the first half of 2017. We expect domestic same tower churn rates in the mid-3% range in the first quarter of 2017. But we expect that rate to be in the mid-2% range by the end of the year. And by the end of 2019, we expect that our domestic churn rate will be back in the 1% to 1.5% range, consistent with the level of consolidation churn we've experienced throughout our history. Regardless of the timing, the total amount of this consolidation churn continues to be as expected, and is not anticipated to impact our long-term goal of producing $10 or more of AFFO per share in 2020.

 Tower cash flow for the fourth quarter was $308.4 million. Weaker than expected foreign exchange rates negatively impacted tower cash flow by approximately $0.5 million relative to guidance. The out-performance in tower cash flow relative to guidance came primarily from successful efforts around controlling the direct costs associated with our towers. The quality of our assets and our lease agreements, and our excellence in execution, allow us to continue to have the strongest operating margins in the industry. Domestic tower cash flow margin was 82% in the quarter, and international tower cash flow margin was 68.7%.

 Adjusted EBITDA in the fourth quarter was $287 million. Foreign exchange rates negatively impacted adjusted EBITDA by approximately $0.4 million relative to guidance. The solid adjusted EBITDA results in the quarter were a result of the out-performance in tower cash flow. Adjusted EBITDA margin was 70% in the quarter compared to 69.1% in the year-earlier period. Approximately 99% of our total adjusted EBITDA was attributable to our tower leasing business in the fourth quarter.

 AFFO in the fourth quarter was $201.3 million, which amount was negatively impacted by approximately $0.5 million relative to guidance, due to foreign exchange rates weaker than anticipated. Our industry-leading AFFO per share increased 14% to $1.63. Excluding the positive year-over-year impact of changes in foreign currency exchange rates, AFFO per share increased 11.9% over the year-earlier period. When further adjusted to exclude the year-over-year decline of $7.2 million in services margin, AFFO per share increased 16.1% on a constant currency basis over the year-earlier period, adding to our confidence in achieving $10 or more of AFFO per share in 2020.

 We continue to selectively deploy capital towards portfolio growth. In the fourth quarter, we acquired 215 communication sites for $73.5 million in cash. We also built 118 sites during the fourth quarter, moving our total site count to over 26,000. These additional sites are located in both domestic and international markets.

 We continue to invest in the land under our sites, as this is both strategically beneficial and almost always immediately accretive. During the quarter, we spent an aggregate of $20.2 million to buy land and easements and to extend ground lease terms. At the end of the quarter, we owned or controlled for more than 20 years the land underneath approximately 72% of our towers. And average remaining life under our ground leases, including renewal options under our control, is approximately 33 years.

 Looking forward, our earnings press release includes our initial outlook for full year 2017. Our initial guidance assumes continued steady operational leasing activity on a contracted cash-revenue-added-per-tower basis in each of our markets, as well as similar levels of services business, to that which we experienced in 2016.

 The outlook doesn't assume any impacts from potential acquisitions not under contract as of today. And it doesn't assume any impact from new financings or repurchases of the Company's stock, other than those that have been completed as of today. We have assumed a weakening FX environment in 2017, consistent with the average forecasts of a number of large financial institutions, and as disclosed in today's earnings press release.

 Consistent with our intention to align our public communications with the long-term approach we take internally in managing the business, the Company will no longer be providing guidance for quarterly results. We believe disproportionate focus on immaterial quarterly variances takes away from the steady, stable long-term returns the Company will produce by achieving our goal of $10 or more of AFFO per share by 2020.

 However, in order to provide incremental details around our full-year outlook, as well as selective historical information, we have added a number of new slides to our supplemental financial data package, that I encourage you to review. These slides include both historical and forward-looking information, including a bridge from our 2016 site leasing revenue to the midpoint of our 2017 site leasing revenue guidance. And a detail of the portion of our 2016 site leasing revenue that represents the core recurring cash-leasing revenue from our base-leasing business. This core recurring cash leasing revenue is the base upon which we calculate our same tower leasing revenue growth.

 The new slides also include historical same tower year-over-year growth rates and churn rates for the last two years. The historical churn disclosure reflects the steady level of regular, non-Metro, Leap and Clearwire churn over the last couple of years, as well as the recent increase in the consolidation churn from these customers.

 Finally, we have provided a breakdown of our historical capital allocation, which demonstrates our consistent approach to maintaining target leverage levels and fully investing in our business, primarily through either acquisitions or stock repurchases. Including the significant share repurchases we completed during the fourth quarter of 2016, taking advantage of buying our stock at historically low valuations.

 We continue to believe our approach to balance sheet structure and wise capital allocation has created material value throughout our history. With that, I will turn things over to Mark, who will provide an update on our liquidity position and balance sheet.

------------------------------
 Mark DeRussy,  SBA Communications Corporation - VP of Finance   [4]
------------------------------
 Thanks, Brendan. SBA ended the quarter with $8.7 billion of net debt. And our net debt to annualized adjusted EBITDA leverage ratio was 7.6 times, just above our targeted range of 7 to 7.5 times. Our fourth-quarter net cash interest coverage ratio of adjusted EBITDA to net cash interest expense was an improved and very strong 3.8 times. We ended the quarter with $390 million outstanding under our $1 billion revolver, and we have $295 million outstanding as of today. At quarter end, the weighted average coupon of our outstanding debt was 3.5%, and our weighted average maturity was approximately 4.5 years.

 On January 20, we entered into an amendment to re-price both of our outstanding senior secured term loans, from LIBOR-plus-250 basis points with a LIBOR floor of 75 basis points, to the new pricing of LIBOR-plus-225 basis points, with a zero LIBOR floor. This pricing was done at par and will reduce our 2017 net cash interest expense by approximately $4.9 million.

 During the quarter and subsequent to quarter-end, we cumulatively spent $347.7 million to repurchase 3.4 million shares of common stock at an average price per share of $103.08, reducing our outstanding share count by 2.7%. On January 12, 2017, after these repurchases, our Board of Directors approved the authorization of a new $1 billion stock repurchase plan, replacing the prior plan, which had a remaining authorization of $150 million. The new plan authorizes the Company to repurchase outstanding common stock from time to time at management's discretion, and has no time deadline. The full $1 billion is currently available under the new plan.

 Quarter-end shares were $121.0 million, down from $125.7 million shares a year earlier. We're very pleased with our capital structure and believe it maximizes our ability to drive growth in AFFO per share. As demonstrated by our recent repricing transaction, SBA continues to be a preferred issuer in the debt markets. With that, I will now turn the call over to Jeff.

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [5]
------------------------------
 Thank you, Mark, and good evening, everyone. As you heard from Brendan earlier, we had another solid quarter. We continued to see steady demand in our site leasing business, both domestically and internationally, and we continue to operate our towers with a level of efficiency that has produced industry-leading tower cash flow and adjusted EBITDA margins.

 We produced 14% year-over-year growth in AFFO per share, positively contributing to achieving our goal of at least $10 of AFFO per share by 2020. Our strong growth in AFFO per share was favorably impacted, and will continue to be impacted, by solid organic leasing growth, sound capital allocation, and optimal management of our capital structure.

 During the quarter, we allocated capital to both portfolio growth and stock repurchases. We materially impacted our outstanding share count last year by buying in 4.3% of our outstanding shares, most of which was in the fourth quarter. For the year, we returned $550 million to our shareholders in the form of stock repurchases.

 We were able to reduce our weighted average cost of debt through our refinancings completed in the third quarter, and the successful repricing of our existing term loans in January. All of which demonstrate SBA's very positive position and reputation as an issuer in the debt capital markets. Our success in these areas helped us produce the highest AFFO per share in the industry, and AFFO per share growth will remain a key focus for us going forward.

 In the US, operational customer activity -- measured as the amount of newly contracted cash revenue per tower -- remains steady, with the majority of new business coming in the form of amendments, which we expect to continue to be the case throughout 2017. Organic leasing activity in 2016 was primarily from the reforming of 2G and 3G spectrum to LTE, as well as some AWS-1 and 700 megahertz deployments. Our initial 2017 guidance contemplates the same level of gross leasing activity as we experienced in 2016, at least for now.

 Our backlogs are pretty healthy, and we do have a number of opportunities for additional growth this year, and over the next few years. These opportunities include the increased deployment of new spectrum bands, such as AWS-3, WCS and 2.5 gigahertz, and even longer-term 600 megahertz. At some point, we will also see the deployment of Dish's spectrum, as well as the commencement of the FirstNet rollout. All of these deployments will require new equipment to be installed at existing, and possibly new, macro sites, supporting steady organic growth for years to come.

 In addition, potential regulatory changes, such as the rollback of net neutrality, and corporate tax reform, would positively impact our customers, improving their net cash flow, and therefore, their ability to materially further invest in their wireless networks. Such an environment would be positive for us, and would further support steady, continued growth of our revenue base.

 Internationally, we had our best quarter all year in terms of operational leasing activity. This activity was approximately 63% from new leases and 37% from amendments in the fourth quarter. We had strong contributions from all of our markets, and Brazil continues to see steady results.

 Oi remains current with their post-petition rental payments, and continues to work towards a judicial reorganization. As indicated in the past, we remain actively engaged in the process, and anticipate more clarity in the next several months, as Oi submits its new reorganization plan. We continue to expect all of our Oi leases to be reaffirmed.

 During the fourth quarter, we continued to grow our portfolio throughout all of our markets, including acquisitions in the US, Brazil, and Chile. We intend to continue to grow both domestically and internationally, with continued primary focus on the Western Hemisphere, but remaining open to opportunities worldwide. We believe a number of attractive opportunities to add assets remain throughout the Western Hemisphere, and we are fully engaged in identifying those opportunities that will provide the strongest return on invested capital.

 We produce a significant amount of free cash flow every year, and we have open access to the debt markets. We intend to stay fully invested within our target leverage range of 7.0% to 7.5 times adjusted EBITDA. When we are not able to identify asset opportunities that meet our return requirements, in order to fully utilize our available investment capacity, we will continue to supplement our portfolio investments with opportunistic share repurchases. Staying fully invested should give us good opportunities to increase our AFFO-per-share guidance throughout the year.

 Our progression toward electing REIT status continues to be on track. In January, we completed the merger of SBA Communications Corporation into a wholly-owned subsidiary, in order to facilitate our compliance with certain REIT rules. This merger allowed us to adopt certain charter provisions that implement standard REIT ownership limitations and transfer restrictions related to our stock. Our only remaining step now is to formally elect REIT status when we file our 2016 tax return. Because we have been functionally operating as a REIT since prior to 2016, we expect our election to be nothing more than a formality, with the operations of the Company continuing as business as usual.

 We currently intend to use our net operating loss carry-forward positions for tax purposes to eliminate any distribution requirements, which we currently expect to be the case, at least through the end of 2020. As a result, at this time, we're not planning on any changes to our capital allocation strategy.

 SBA continues to be a very special Company. We produce the highest AFFO per share in the industry, almost all of which is from cash revenues from the leasing of macro site towers. We have the highest-quality assets, very carefully put together over two decades. We also operate the most efficiently, as demonstrated by our industry-leading operating margins.

 Our strategic vision remains the same -- maximize organic revenue growth, minimize expenses, pursue attractive portfolio growth, and keep the balance sheet optimized. Looking ahead, new spectrum deployments, the rise of mobile video and the push toward 5G will continue to drive organic growth. And when opportunities arise, we will have the liquidity and financial flexibility to grow our portfolio and buy back our stock.

 All these factors give us tremendous optimism about the long-term future of SBA, including our ability to achieve our goal of $10 or more of AFFO per share by 2020. We appreciate the contributions of our employees and our customers during 2016, and we look forward to a successful 2017. And with that, Laurie, we are now ready for questions.

==============================
Questions and Answers
------------------------------
Operator   [1]
------------------------------
 (Operator Instructions)

 Our first question from Rick Prentiss with Raymond James. Please go ahead.

------------------------------
 Rick Prentiss,  Raymond James & Associates - Analyst   [2]
------------------------------
 Thanks, good evening, guys.

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [3]
------------------------------
 Hey, Rick.

------------------------------
 Rick Prentiss,  Raymond James & Associates - Analyst   [4]
------------------------------
 Two, if I could. First, appreciate the information on the stock buyback and new authorization. How should we compare fourth quarter, where you did a lot of buybacks with, I guess, the first two months of first quarter, where you haven't done a lot. How should we think about the pacing out of that buyback as you look at leverage and refinancings, and also acquisitions?

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [5]
------------------------------
 We obviously haven't done anything in the first two months, or we would have told you about it. That was largely a function of where we ended the year, at the 7.6 times. We will go a little higher than that, maybe, for the right opportunities, which we did, I think, once or twice last year.

 But the 7.5, 7.6 quarter-ending leverage is really where we are targeting to be during this period of time. Obviously we didn't do any in the first two months. But you certainly ought not take that as an indication of where the rest of the year is going to go. Particularly when you model in our stated goals of keeping the balance sheet leveraged at 7 to 7.5 times, looking at our EBITDA guidance and what our availability to capital will be.

------------------------------
 Rick Prentiss,  Raymond James & Associates - Analyst   [6]
------------------------------
 Okay. Second question. When you take a look at that supplement that Brendan was talking about -- and obviously, a lot of really good stuff in there -- had a question, if I could, on some of the details there. You talk about the recurring cash leasing revenue. And should we use those numbers to look at what the percent growth is for new leasing activity and escalators and churn? Is that what you are suggesting?

------------------------------
 Brendan Cavanagh,  SBA Communications Corporation - CFO   [7]
------------------------------
 Yes, you should, Rick. And that is consistent with how we have done it throughout our history. Part of the goal here was to provide a little more of the detail behind those same tower growth calculations. Now you can take the leasing activity, the escalations, and even the churn, and you have the base upon which those percentages are calculated.

------------------------------
 Rick Prentiss,  Raymond James & Associates - Analyst   [8]
------------------------------
 Okay. And then on that quarterly recurring cash leasing number, there are a couple items in there that you're calling out -- one, managed and non-macro business, and other miscellaneous items. And there was obviously some downward drafts in 2016, from your book revenue to your core cash. Can you just give us a little understanding what is in those managed and non-macro, and other miscellaneous?

------------------------------
 Brendan Cavanagh,  SBA Communications Corporation - CFO   [9]
------------------------------
 Yes, the summary there, they are all down-drafts, because they are items that make up total revenue, but we exclude from core recurring cash leasing revenue. The managed and non-macro is almost entirely our managed rooftops and sublease business that we've had for many years. We have about 500 or so revenue-producing rooftops that we manage. That is the majority of that particular item.

 The other miscellaneous items is a mix of a variety of things, includes cash-basis revenues, out-of-period revenues -- where we maybe get paid for something and recognize it in a particular period, but it relates to six months or something, so it is not really representative of the quarter's revenue. Termination fees, other miscellaneous fees that we might collect from tenants. It's that kind of stuff. And that can vary up or down a little bit in any given period. So we feel it is appropriate to exclude that, because it is not really representative of a recurring-type item, at least on those particular sites.

------------------------------
 Rick Prentiss,  Raymond James & Associates - Analyst   [10]
------------------------------
 And that is also why you have done the amortization to capital contributions -- what we call augmentation reimbursement, is also being pulled out?

------------------------------
 Brendan Cavanagh,  SBA Communications Corporation - CFO   [11]
------------------------------
 Yes, that is being removed. Because although we do get paid that money -- these are all real revenue items -- but because it is more of a one-time event that does not recur, we remove it just like the miscellaneous items, in order to give you a true view on what the organic growth rates look like.

------------------------------
 Rick Prentiss,  Raymond James & Associates - Analyst   [12]
------------------------------
 2017 guidance assumes similar to 2016 growth. So where one of your peers said they expect to see a pick-up, and they have seen a pick-up in apps, you guys are not putting that into your guidance yet?

------------------------------
 Brendan Cavanagh,  SBA Communications Corporation - CFO   [13]
------------------------------
 We are not including that in guidance.

------------------------------
 Rick Prentiss,  Raymond James & Associates - Analyst   [14]
------------------------------
 Very good. Thanks, guys.

------------------------------
Operator   [15]
------------------------------
 We will go to Jonathan Schildkraut with Guggenheim. Your line is open.

------------------------------
 Jonathan Schildkraut,  Guggenheim Securities - Analyst   [16]
------------------------------
 Great. A couple of questions, if I may. First, you guys definitely took a conservative stance on the FX side. I was wondering if you might give us a little color as to what the outlook might look like, or what might add to the outlook, rather, if we were to assume spot rates?

 And then the second question I had was, I was wondering if we could get some perspective, from your perch, as to what some of the potential catalysts might look like as they ultimately roll out onto towers? And specifically, I would be interested in your views as to FirstNet and 5G, and whether that at all changes your perspective on the portfolio of assets that you might want to own over the longer term? Thanks.

------------------------------
 Brendan Cavanagh,  SBA Communications Corporation - CFO   [17]
------------------------------
 Jon, on the FX question, the spot rate today is about 3.11 or so in Brazil. That is the bulk, obviously, of our FX impact. We have assumed an increasing rate throughout the year that averages 3.32. So the difference, if we had the spot rate throughout the balance of the year, would be approximately $12 million of revenue, and somewhere around $7 million or so on the TCF and EBITDA lines.

------------------------------
 Jonathan Schildkraut,  Guggenheim Securities - Analyst   [18]
------------------------------
 Thank you.

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [19]
------------------------------
 Yes, Jonathan, it's Jeff. On the FirstNet, we continue to anticipate an early to no-later-than mid-summer award. I believe the only reason it is being held up so far is, there was a challenge to the process, which I do believe is working itself through. We believe that they are going to want to go pretty quick at that point.

 And at this time, while we have not seen the final specs yet, we do believe that these specs will consist of adding lines and antennas at the existing rad center to whoever the partner is that gets picked for the project. And that would be secularized, so you are looking at three lines, three antennas-type thing. There is still some talk out there that the deployment would come in the form of a separate rad center. While that would be better for us, given the amount of tower capacity that would take, we are not putting any stock in that until we actually see what is coming out exactly. And regardless of what I just said in the timing, none of that is related in our guidance for 2017.

 In terms of 5G, there is obviously a lot of talk about that, and not a lot is known for sure. We've talked to a number of folks, though, both at the equipment side and at the customer side, and there has not been anyone that thinks that the millimeter wave spectrum is going to be utilized outside the urban markets.

 We believe that, just like 4G was rolled out nationwide, 5G will be too. And it will use the macro sites to do that, probably with spectrum that [mags] it today, and certainly not exclusively the millimeter wave-type spectrum that you may see used more exclusively in the urban markets. And we do know, based on everything we've heard, that to achieve the gains and quality, speed latency, and all the other things that 5G will bring, that it will require new radios and new antennas, even if existing spectrum is utilized. That is what we believe today, and we expect as time goes on, to have more specificity around that.

------------------------------
 Jonathan Schildkraut,  Guggenheim Securities - Analyst   [20]
------------------------------
 Thanks for taking the questions.

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [21]
------------------------------
 Sure.

------------------------------
Operator   [22]
------------------------------
 We will go to Mike McCormack with Jefferies. Please go ahead.

------------------------------
 Mike McCormack,  Jefferies & Company - Analyst   [23]
------------------------------
 Hey, guys, thanks. Maybe just a quick comment on what you are seeing out there as far as any impact on your growth with respect to small deployments, whether or not there is overlap that you might be losing business with? And then secondly, Jeff, just a comment about the proliferation of over-the-top and unlimited data offerings? When do we think we can see a pull-through to create better growth in the US?

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [24]
------------------------------
 Well, I think you are going to start seeing increased network stress. I don't think anybody would or could argue otherwise with that. One of the things that will happen with the unlimited plans is, people will be less inclined to even think about transitioning over to Wi-Fi when it is available. So you have a lot more spectrum, or lot more capacity run through the cellular networks.

 Now, as it has always been in our industry, Mike, the question will be, where do our customers want to invest the money, and how much money do they have to invest? I do not think there has been any issue about the operational needs for continued network investment. But they run businesses as we do, and you have to justify the investment. That is really the bigger issue, in my opinion, as opposed to will the operational needs be there -- which we think are absolutely clear.

 So on the small cell side, we've seen absolutely no overlap in our business from a negative way. We actually have leased out some small cell spaces on our towers at the 60-ish-foot level, which is not an area we would typically use, so all that is great. Operationally, we've seen no overlap and no cannibalization. But again, you may have issues where carriers, depending on the area, will deploy more money in one area for a small cell, and more money for a macro in a non-urban market.

 Keep in mind, we have never really been an urban Company. So the architecture is not changing where we are, and we've not seen any indication that our customers are bringing products and speeds to urban markets that they are not eventually going to bring nationwide.

------------------------------
 Mike McCormack,  Jefferies & Company - Analyst   [25]
------------------------------
 Great, thank you.

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [26]
------------------------------
 Yes.

------------------------------
Operator   [27]
------------------------------
 We will go to David Barden with Bank of America Merrill Lynch. Please go ahead.

------------------------------
 Josh Fantin,  BofA Merrill Lynch - Analyst   [28]
------------------------------
 Hi, guys. It's Josh [Fantin] for Dave. Thanks for taking the questions. Appreciate the comments on the churn. I wonder if you could talk about the escalators amendments in churn and the shape of that on the international side for the year, and going forward? That would be helpful, thanks.

------------------------------
 Brendan Cavanagh,  SBA Communications Corporation - CFO   [29]
------------------------------
 Sure. Actually, if you look at one of the new slides that we included, which is the first slide in the supplemental deck that we posted on our website, it is a bridge of our 2016 leasing revenue to the midpoint of our 2017 guidance. But we have broken it down into not just consolidated numbers, but also domestic and international.

 If you look at the international there, you will see the contributions that are being made, or that we assume will be made in our guidance from each of those categories and new leasing activities, the escalators and the churn. And I think if you look at that, you will see that the escalator piece is the bigger component driving the growth. It is roughly 6.5% on a same tower basis, off that core base of revenue. And a lot of that is carried by Brazil, and the fact that inflationary rates drive escalators.

 The churn is basically almost nothing. We show about $1 million year over year down, and that is really a vestige of some smaller items. But really, there is no churn, to speak of. We expect to continue to see pretty steady activity there.

 The leasing activity from an operationally lease-up standpoint in from the fourth quarter internationally was very strong. It was stronger than our third quarter. So we've seen some steady improvement, and we expect to have a fairly steady year over year for 2017 over 2016, from that standpoint.

------------------------------
 Josh Fantin,  BofA Merrill Lynch - Analyst   [30]
------------------------------
 Great. And anything into the next few years that we should be aware of on that same kind of topic?

------------------------------
 Brendan Cavanagh,  SBA Communications Corporation - CFO   [31]
------------------------------
 Not internationally. Domestically, you're going to see a big drop off in the Metro, Leap, Clearwire churns as we move to the year. But we think we've talked about that quite a bit.

------------------------------
 Josh Fantin,  BofA Merrill Lynch - Analyst   [32]
------------------------------
 Okay, thanks, guys. Appreciate it.

------------------------------
Operator   [33]
------------------------------
 We will go to Colby Synesael with Cowen and Company. Please go ahead.

------------------------------
 Colby Synesael,  Cowen and Company - Analyst   [34]
------------------------------
 Great. Just to follow up on that question, what was the comparable to the 6.5% international escalator that you are expecting in 2017, when we look at 2016? And then also, you have, in the past, talked about portfolio growth in recent years 5% to 10%, I think, in 2016 is closer to 4%. Any color on expectations for 2017, including anticipated new-builds?

 And then also I just wanted to ask one question, Jeff, just broadly speaking. There is a lot of talk now about fixed wireless as part of 5G. AT&T and Verizon, in particular, are doing trials. Other companies, whether it's a Google or a Starry in Boston, and so forth, looking to get more involved in that as well. Is that a solution that could be built on top of a macro tower? Or do you think that, that is going to require new special antennas or deployment to support that? Thank you.

------------------------------
 Brendan Cavanagh,  SBA Communications Corporation - CFO   [35]
------------------------------
 On the international escalators, they were about 8.5% for the prior year. We actually are seeing -- just as a little color on that -- obviously most of it is driven by Brazil. We have our escalators in Central America that are fixed escalators, so those typically average somewhere around 3%. Those stay steady.

 In Brazil is where we are seeing the big decline, and that is because obviously the CPI rate there has dropped dramatically. We do have the floor on many of our leases with Oi that drop to 6.5%. So it is really just a function of timing. But somewhere around 8.5%-ish was the previous number, dropping down to about 6.5% for all of international.

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [36]
------------------------------
 On the portfolio growth, Colby, we absolutely intend to continue our goal of 5% to 10% portfolio growth. We did not hit it in 2016 -- not for lack of opportunity, but for lack of price, basically. We thought that what was out there was just not the right investment for us, given particularly our ability to buy our stock back at what we saw as very undervalued prices.

 But it is the goal again. And we think there will be, again, enough opportunities out there to certainly fill that on the numbers side. And it will remain to be seen where we see relative price attractiveness. What are we including in guidance, Brendan, on the tower-builds?

------------------------------
 Brendan Cavanagh,  SBA Communications Corporation - CFO   [37]
------------------------------
 We have about 450. Most of those are international.

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [38]
------------------------------
 And on your fixed wireless question, Colby, we absolutely can make use of towers, provided they are in the right locations.

------------------------------
 Colby Synesael,  Cowen and Company - Analyst   [39]
------------------------------
 (Technical difficulty) seeing any of that? I know you are seeing demos or trials at this point. But have you had any conversations with anyone that would suggest that they are intending to use macros, at least in some situations?

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [40]
------------------------------
 Some conversations, yes.

------------------------------
 Colby Synesael,  Cowen and Company - Analyst   [41]
------------------------------
 Great, thank you.

------------------------------
Operator   [42]
------------------------------
 Thank you. Our next question from Jonathan Atkin with RBC Capital Markets.

------------------------------
 Jonathan Atkin,  RBC Capital Markets - Analyst   [43]
------------------------------
 Yes, my question is on Brazil and international. What are you seeing in that market in terms of RAM sharing? And then you may have alluded to it, but if you could just remind us what portion of your escalators are fixed versus CPI-based internationally?

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [44]
------------------------------
 For almost all of the non-US dollar-denominated revenue, it is CPI-based, with some floors.

------------------------------
 Brendan Cavanagh,  SBA Communications Corporation - CFO   [45]
------------------------------
 Yes, and basically in South America. So we've got about 17% of our revenues come internationally. Roughly 5% of those are in Central America and Canada, all of which have fixed escalators on the tenant leases. And then almost the rest of it is almost entirely Brazil and Ecuador, which is CPI-based.

------------------------------
 Mark DeRussy,  SBA Communications Corporation - VP of Finance   [46]
------------------------------
 In general, Jonathan, you should assume that the non-US denominated revenues are CPI-based, and that the US dollars are -- I mean, that is within 1% of being right on the money.

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [47]
------------------------------
 So in Brazil, yes, there is some RAM sharing. Nextel is looking to do some RAM sharing with Telefonica. And [Tim] and Oi have down some RAM sharing, although it does not appear to be pervasive at this point.

------------------------------
 Jonathan Atkin,  RBC Capital Markets - Analyst   [48]
------------------------------
 And then looking at some of the non-Western Hemisphere growth that you alluded to, would you be more interested in purchasing a platform that gives you a regional presence? Or would a single country investment be more in line with your thinking?

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [49]
------------------------------
 We continue to operate the Company as a leverage capital appreciation story, and we want growth assets. So the answer to your question is, really, it depends. And we would do either one of those if we saw that the right growth opportunities would follow the purchase, just as we did when we first went into Brazil, with the Vivo transaction.

------------------------------
 Jonathan Atkin,  RBC Capital Markets - Analyst   [50]
------------------------------
 Thank you very much.

------------------------------
Operator   [51]
------------------------------
 We have question from Matthew Heinz with Stifel. Please go ahead.

------------------------------
 Matthew Heinz,  Stifel Nicolaus - Analyst   [52]
------------------------------
 Thanks, good evening. So if I just look at the incremental cash revenue that you are guiding for being added to the sites, it looks like there is about a $10.5 million decline on the domestic side, and about $7 million decline on the international business. I appreciate the color you gave earlier around the escalations in Brazil, but could you just break that down for us?

 With the new disclosures, is it really more on the incremental leasing side where you think you are baking in some conservatism? Just across those two segments, where -- between [colos], amendments and escalations, what's driving the year-over-year decrease in new revenue added?

------------------------------
 Brendan Cavanagh,  SBA Communications Corporation - CFO   [53]
------------------------------
 Just for clarification, because we are really forecasting pretty flat growth, from a lease-up standpoint, on the leases and escalators, in terms of activity that we have seen recently. If you are comparing, it's a full-year 2015 to full-year 2016, it is down a little bit because of a little bit higher organic growth that we experienced in the middle of 2015, that carried over and impacted the year-over-year growth. So if you are going back that far, it would certainly be a slight step-down in the organic lease-up.

 But the rate of growth that we are assuming in terms of leasing activity, and therefore, the dollars added, are pretty flat with what we've seen here recently over the last four quarters, the last year. So that should be relatively flat. The escalators on the international side, though, are definitely down from where they were, because of Brazil escalation rates. The CPI rates were substantially higher than they are today, so that piece is down. But otherwise, I think, it should be relatively flat.

------------------------------
 Matthew Heinz,  Stifel Nicolaus - Analyst   [54]
------------------------------
 Okay. Maybe it is the amortization of prepaid rent that is impacting that year-over-year compare?

------------------------------
 Brendan Cavanagh,  SBA Communications Corporation - CFO   [55]
------------------------------
 Yes, maybe you're looking at the total numbers. Certainly in that case, if you look at the breakdown, that is what we're trying to show, I think, in the bridge, is what the different components are that are contributing to our growth year over year. And you can see that there are certain items that are stepping backwards. There is a non-cash item like straight-line revenue. But we're also assuming a decrease in some of the other items.

 Most of the other items that are stepping down are a reduction in augmentation of the amortization -- or, a reduction in the amortization of augmentation reimbursement, is a big chunk of it. And then we are also assuming a little bit less on some of those miscellaneous items that I discussed earlier, like backfilling and termination fees, that kind of stuff.

------------------------------
 Matthew Heinz,  Stifel Nicolaus - Analyst   [56]
------------------------------
 Okay, thanks. And then just one quick one on capital allocation. If we just look at your stock price today versus the opportunity set you see out there in terms of M&A, on balance, would you say that you prefer -- lean towards one of the other in terms of uses of capital at this point?

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [57]
------------------------------
 I would say our goal would continue to be invest it all in portfolio growth. But I suspect we will not, and you will see additional stock repurchases this year.

------------------------------
 Matthew Heinz,  Stifel Nicolaus - Analyst   [58]
------------------------------
 Okay, thank you.

------------------------------
Operator   [59]
------------------------------
 We will go to Nick Del Deo with MoffettNathanson. Please go ahead.

------------------------------
 Nick Del Deo,  MoffettNathanson - Analyst   [60]
------------------------------
 Hey, thanks for taking my question. Jeff, when you were answering a question about unlimited plans earlier, you noted that the year's operational needs are unlimited, and it is really their financial health that matters. But you didn't opine on the latter point. In your view, are we anywhere close to the point where the financial health of big core carriers is something we have to start thinking about, when it comes to thinking about the growth outlook for the industry? Or is there still an adequate cushion there?

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [61]
------------------------------
 I think there is an adequate cushion, Nick. I think you basically have lived through it these last two years. We really don't see, under any likely circumstance, reductions in levels of operational activity from where we were last year and the last half of 2015. Theoretically, yes, somebody has to pay for all the operational needs in the network. But I don't think we're at a point where you really have to question whether that is going to happen, certainly to the degree that it has been happening for the last six quarters.

 But we would like to see tax reform and net neutrality, and whatever you can see that would bring -- we would like to see [RPU] go up, for sure. Because I we have a good feeling where that money would go. We think it would go back into the network.

------------------------------
 Nick Del Deo,  MoffettNathanson - Analyst   [62]
------------------------------
 Okay, all right, that's helpful. Maybe one macro question. Inflation is a concern that investors are increasingly worrying about, given the fixed nature of the escalators. If we did see inflation really start to pick up, how negotiable are your amendment and net site rates, so they could act as a partial revenue adjustment in response to that? And are there any tools that you might have to respond to inflation if it becomes an issue?

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [63]
------------------------------
 Well, our pricing structure is such that relatively every single lease and every single amendment that we do, we have open and full pricing availability. So you would have that ability on any piece of new business to take into account inflation, if you didn't think the escalator -- or, if you thought it needed adjusting.

 Actually, on that point, and I think that is a good one, which is why we think the escalators are appropriate where they are. We may very well see a point in time where CPI equals or is perhaps slightly ahead of the escalator. So I think, looking forward, the fixed escalators in our industry look pretty reasonable.

 In terms of other things that we might do, our expenses are pretty well fixed, other than our SG&A, and that's such a low percentage of revenue that I don't think that is going to be a material issue. So it's really pretty much on the new leases and the new amendments, Nick, where we would be able to address that.

------------------------------
 Nick Del Deo,  MoffettNathanson - Analyst   [64]
------------------------------
 Okay, that is helpful. Thanks, Jeff.

------------------------------
Operator   [65]
------------------------------
 We will go to Walt Piecyk with BTIG. Please go ahead.

------------------------------
 Walter Piecyk,  BTIG - Analyst   [66]
------------------------------
 Thanks. On slide 4 of your presentation, you have that bridge that looks very nice. That $41 million, I think that is probably slightly down from last year, as far as the new leasing activity. I don't know, but I'm pretty sure it's down. Anyway, American Tower was talking about that specific element of their growth being up 15% in 2017. So I'm just curious why they might be seeing that type of growth and you guys wouldn't?

------------------------------
 Brendan Cavanagh,  SBA Communications Corporation - CFO   [67]
------------------------------
 Well, Walt, I can't speak to what they have assumed. Our assumption is that things stay flat in terms of the leasing activity that we have had over the last year. So that is the driver of this number for us. If we do have activity that goes beyond that and it starts to contribute to our financial results in time this year, then this number would go up. Or if it doesn't, if it stays flat, this will be, I think, about where it comes in.

------------------------------
 Walter Piecyk,  BTIG - Analyst   [68]
------------------------------
 They were specifically referencing a change in the market in the past 30 days or so. I forget the terms that they used, but they were pretty clear, saying it was like: oh, we are seeing this new activity. They were talking about people with high-band doing carrier aggregation. I don't know if they were referring to Sprint or whoever. But are you just not seeing this? Because it sounded like it was pretty broad-based, as far as the activity level that they were seeing.

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [69]
------------------------------
 We thought when we set guidance, Walt, that we would just carry over existing activity levels, and not produce anything above that until we actually booked it.

------------------------------
 Walter Piecyk,  BTIG - Analyst   [70]
------------------------------
 Okay, that is fair. And then just one other question. Sorry to relate it back to American Tower, but they brought it up. Are you guys doing any testing on this 3.5? I think what they are referencing is, there could be this new business model, where the tower company becomes like a wholesaler of traffic. Where you own the spectrum, or at least use some of this 3.5 spectrum, and then lease that capacity, to dedicate that spectrum, whether it is in a building or small cells. Have you looked at the 3.5 spectrum? Have you thought about that as a way to maybe make money on this small-cell interest that the carriers have?

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [71]
------------------------------
 We are evaluating it. We like to in-building aspect better, because we think it can be more exclusive. But we are taking a look.

------------------------------
 Walter Piecyk,  BTIG - Analyst   [72]
------------------------------
 You got it. Thank you very much.

------------------------------
Operator   [73]
------------------------------
 We will go to Phil Cusick with JPMorgan. Please go ahead.

------------------------------
 Unidentified Participant,  - Analyst   [74]
------------------------------
 Hi, this is Richard for Phil. Just wanted to call out -- you said 70% of the business was amendments. Is that what you are expecting for this year? And could we see a pick-up in co-location and get to a more normal 50-50 mix later this year?

------------------------------
 Brendan Cavanagh,  SBA Communications Corporation - CFO   [75]
------------------------------
 Yes, Richard, we are expecting that it will be fairly consistent with what we have seen over the past year, so predominantly from amendments.

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [76]
------------------------------
 Yes, if you look at what is still out there to come -- AWS-3, WCS, FirstNet, assuming that we see some of that hit some of our revenue this year. It should hit some of the operational activity. At this point, we're believing most of that will come in the form of amendments.

------------------------------
 Unidentified Participant,  - Analyst   [77]
------------------------------
 Great, thank you.

------------------------------
Operator   [78]
------------------------------
 We will go to Spencer Kurn with New Street Research. Please go ahead.

------------------------------
 Spencer Kurn,  New Street Research - Analyst   [79]
------------------------------
 Hey, thanks for taking the question. Looks like your domestic gross organic growth fell about 60 basis points sequentially. Just wondering if you could talk about what were the drivers of that?

------------------------------
 Brendan Cavanagh,  SBA Communications Corporation - CFO   [80]
------------------------------
 Sure, Spencer, yes. We obviously have had steady operational leasing levels throughout 2016. Which basically means we are signing up or contracting for a consistent amount of recurring cash leasing revenue per tower each quarter. But the growth rate is down, really, because of timing between executing these agreements and when the revenue starts to hit our income statement. As well as the fact that this growth rate reflects changes that are over the trailing 12 months.

 So in this case, the decline in the reported revenue growth rate from Q3 to Q4 was due to higher operational lease-up in Q2 and Q3 of 2015, than what we had, for instance, in Q2 and Q3 of 2016. So basically you had a higher lease-up in the middle of 2015, hit your financial statements in the fourth quarter and large part of 2015. So the growth from Q3 to Q4 2015 was higher than the growth from Q3 to Q4 2016. So as you roll forward an extra quarter and you drop off what was actually a bigger growth quarter, that is the impact.

------------------------------
 Spencer Kurn,  New Street Research - Analyst   [81]
------------------------------
 Got it, thanks. And one more, if I may. As I think about all of the fallow spectrum that needs to get deployed over the next several years, it makes sense that carriers might want to strike master lease agreements to make their deployments easier. The last time MLAs were signed was about five years ago. Can you just talk about your general approach to MLAs? And as you look back over the last five years, has anything shaped your perspective on them?

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [82]
------------------------------
 Yes, the MLAs that we did not do at that time, we look back with the feeling that we definitely made the right decision. Because the amount of customer activity that ultimately happened is well-beyond what was contemplated in the proposed MLAs. But having said that, we are very open to MLAs, provided that they come with the right financial terms and conditions, and that we have a reasonably matching view of the future, as our customers do.

------------------------------
 Spencer Kurn,  New Street Research - Analyst   [83]
------------------------------
 Thanks for taking the question.

------------------------------
Operator   [84]
------------------------------
 We have question from Mike Rollins with Citi. Please go ahead.

------------------------------
 Mike Rollins,  Citigroup - Analyst   [85]
------------------------------
 I'm curious, as you look at the balance sheet leverage that you are looking to sustain over your plan, over the next few years, how did that play into your ability to continue to buy assets? And if there were certain assets that came available, would you consider propping that leverage up even further? And if you look at the other side of the equation, if there is further M&A in the category, how do you perceive that might position you as a possible seller over time? Thanks.

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [86]
------------------------------
 Well, Mike, we would take leverage up to a point we could de-lever back within about a year. That is always how we've approached that. And I would also say, while we have not issued equity, I believe, since 2012, we did so then, and I think it was to bring positive impact to our shareholders. So if we thought the deal was good enough, we would not be adverse to issuing equity.

 On your second question, we run a public Company for the benefit of our shareholders, to create as much value for our shareholders as we can. We have done that for 20 years now -- or, well, maybe 18 years, we think, to great success as an independent Company. We think we have very good path to continue value creation in the $10 or more AFFO per share by 2020. But at the end of the day, we have a fiduciary duty to maximize near- and long-term value for our shareholders.

------------------------------
 Mike Rollins,  Citigroup - Analyst   [87]
------------------------------
 Thanks very much.

------------------------------
Operator   [88]
------------------------------
 Thank you. I will turn it back over to our speakers for any closing remarks.

------------------------------
 Jeff Stoops,  SBA Communications Corporation - President & CEO   [89]
------------------------------
 We appreciate your time this evening, and we look forward to reporting our 2017 results as we move through the year. Thank you.

------------------------------
Operator   [90]
------------------------------
 Thank you, ladies and gentlemen. This will conclude our teleconference for today. As a reminder, the conference call is being made available for replay. And that begins today at 8 PM, Eastern, running through March 13 at Midnight, Eastern. If you would like to access the teleconference replay system, you may dial 1-800-475-6701. Please enter the replay access code 417923. That number again, 1-800-475-6701, and the replay access code, 417923.

 And that will conclude our teleconference for today. Thank you for your participation, and for using AT&T's executive teleconference. You may now disconnect.




------------------------------
Definitions
------------------------------
PRELIMINARY TRANSCRIPT: "Preliminary Transcript" indicates that the 
Transcript has been published in near real-time by an experienced 
professional transcriber.  While the Preliminary Transcript is highly 
accurate, it has not been edited to ensure the entire transcription 
represents a verbatim report of the call.

EDITED TRANSCRIPT: "Edited Transcript" indicates that a team of professional 
editors have listened to the event a second time to confirm that the 
content of the call has been transcribed accurately and in full.

------------------------------
Disclaimer
------------------------------
Thomson Reuters reserves the right to make changes to documents, content, or other 
information on this web site without obligation to notify any person of 
such changes.

In the conference calls upon which Event Transcripts are based, companies 
may make projections or other forward-looking statements regarding a variety 
of items. Such forward-looking statements are based upon current 
expectations and involve risks and uncertainties. Actual results may differ 
materially from those stated in any forward-looking statement based on a 
number of important factors and risks, which are more specifically 
identified in the companies' most recent SEC filings. Although the companies 
may indicate and believe that the assumptions underlying the forward-looking 
statements are reasonable, any of the assumptions could prove inaccurate or 
incorrect and, therefore, there can be no assurance that the results 
contemplated in the forward-looking statements will be realized.

THE INFORMATION CONTAINED IN EVENT TRANSCRIPTS IS A TEXTUAL REPRESENTATION
OF THE APPLICABLE COMPANY'S CONFERENCE CALL AND WHILE EFFORTS ARE MADE TO
PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS,
OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE CONFERENCE CALLS.
IN NO WAY DOES THOMSON REUTERS OR THE APPLICABLE COMPANY ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER
DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN
ANY EVENT TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S
CONFERENCE CALL ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE
MAKING ANY INVESTMENT OR OTHER DECISIONS.
------------------------------
Copyright 2018 Thomson Reuters. All Rights Reserved.
------------------------------