SBA Communications Corp at JPMorgan Global Technology, Media and Communications Conference

May 15, 2018 PM UTC 查看原文
SBAC.OQ - SBA Communications Corp
SBA Communications Corp at JPMorgan Global Technology, Media and Communications Conference
May 15, 2018 / 02:00PM GMT 

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Corporate Participants
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   *  Jeffrey A. Stoops
      SBA Communications Corporation - President, CEO & Director

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Conference Call Participants
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   *  Philip A. Cusick
      JP Morgan Chase & Co, Research Division - MD and Senior Analyst

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Presentation
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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [1]
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 My name is Phil Cusick. I cover the telecom and cable space here at JPMorgan. Please help me welcome Jeff Stoops, President of CEO of SBA Communications since 2002. Jeff, thanks for spending some time with us today.

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [2]
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 Happy to be here, Phil.

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Questions and Answers
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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [1]
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 Let's start with just the pace of activity in the business. It feels like 6 to 12 months ago, people were still holding back, carriers were holding back a little bit, but we've seen an inflection point in the last 6 to 9 months of some spending really starting to ramp up. Is that a fair characterization?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [2]
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 In the U.S., it is. And it's really more carrier-specific than it is kind of across the board. And I think we can kind of get into the specifics. I think everybody knows that it's really around 2 carriers particularly. It's around AT&T's commencement of the FirstNet work and Sprint's resumption of a much more intense capital build that they haven't really been doing much for the past 5 years.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [3]
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 Right. So let's start with FirstNet. Randall said this morning that they're in execution mode now. And is that -- does that line up with what you're seeing?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [4]
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 It does, yes.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [5]
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 Help us think about what that means? So they're talking about layering in carrier aggregation, 3 bands of spectrum, preparing the network for 5G. How do you get paid for all these? And how should we think about the amendment level versus a typical historical amendment level?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [6]
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 Well, AT&T is a great, long-standing customer. And one of the things, though, that over the years, they have ended up with a network of a wide variety of equipment loads. So what that means for us is each site has to be specifically looked at and they have to decide what they want to do there, what they have there and how they're going to get from where they are to where they want to be. So while we're fairly early on in the process, we've seen enough activity to be able to say that there is no one size fits all. And we're seeing a wide variety of equipment loads and requests, which are producing an equally wide variety of amendment scenarios for us.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [7]
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 So in the past, carriers have done mass release agreements because of exactly this issue. We don't want to look at every tower. We don't want to deal with it, we don't want to price it. Does it make sense to do that? Or is it just not worth the effort?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [8]
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 Well, it could. We have never had a history of that. And we've been doing business with AT&T forever, and they kind of know that, and we have a very long-standing history of dealing with them. And while we don't have any type of prescribed pricing, we do have a custom of dealing with them that is fairly predictable in the sense that there aren't a lot of surprises with what they want to do against what we are charging. So the relationship is good. It's pretty smooth and they kind of know where things are going to end up.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [9]
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 Okay. So help me think about the -- there's a -- some confusion last quarter about what's bookings, and what's activity, and help us -- just talk about what the process is for new sites and for amendments? And what's the time from when you start having a conversation to applications to actually booking revenue?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [10]
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 Sure. When -- we gauge our business in a variety of ways. Of course, the first -- and the first indicator of future business is the application process. It's a formal process. The customer submits an application. We have an online tool to do that, and that really starts the process inside SBA. And when we say backlogs -- and when that application gets submitted, that goes into our backlog. So when we saw say backlogs are at -- as high as they've been in several years, it means the application pile, the backlog, the number of applications that we have is as high as it's been. Once an application comes in, it can either go very quickly or it can go not so quickly. And the reason it goes not so quickly is there are misunderstandings as to what's on the tower, misunderstandings as to what the tower can hold, not misunderstandings but the need for towers to get stress tested to actually see what it can hold and there's some back and forth in the applications before you actually can get to a point where you can sign up a definitive document that allows the customer to move forward. So an application can go a week or 2, which is probably the fastest it could possibly go, or it can go months. Then when it gets to the point of where everybody knows all the details, equipment specifics, where the tower stands in terms of its loading capability, pricing terms, all those things, we produce the final document, which is either an amendment or a new lease. And then at that point, it gets signed. Then it's at that point that we know with some certainty when revenue is going to commence. And it's not at that date, it is usually at some date in the future. In the case of a new lease, it's never that date, it is always at some date either the earlier of installation or some date in the future, which averages 6 to 9 months. Amendments typically run quicker. They can be as short as revenue commences upon signing, but they may also be delayed and may also have terms because remember that we do every amendment and application and lease on a site-by-site basis. So every single piece of paper that we sign is site-by-site. So you may also have a delayed revenue recognition date either upon installation or a date certain. But it is not the application pull that gives us the revenue recognition certainty, it is the signing of the actual amendment or the lease that does that. And that's how we -- and it's upon that date that we feel comfortable in being able to put that in guidance if, in fact, that revenue commences in the fiscal period for which we're giving that guidance.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [11]
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 And you've talked about bookings, and you've shown a slide that shows sort of historical bookings levels of trailing bookings numbers. How does -- where does something like (inaudible)?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [12]
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 That's our growth slide, and that actually is -- that's a revenue slide. So that is recorded revenue, and that is a trailing 12-month indicator. So that's a looking-back indicator as opposed to when we say our backlogs are at all-time highs, which is a prognosticator of what that is going to look like at some point in the future, the revenue numbers.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [13]
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 Okay. And so given that backlogs is at all-time highs, applications are, what did you say? Very high, historically. When do we...

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [14]
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 Applications and backlogs are the same thing.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [15]
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 Right, yes. Okay, and so when does that start to sort of flip and bookings ramp and then we should see actual revenue ramping?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [16]
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 Well, we -- in our first quarter call, recall that we said that, that growth rate number would begin to sequentially improve as we move through the year. So it bottomed in Q1. And we can say that because we know the way it's calculated, you drop off the last quarter. So we will be adding the second quarter. We'll be dropping off Q2 of 2017, adding Q2 of 2018. And we know based on the -- where we are today in backlogs and where we were in 2017, and for those of you who follow SBA, recall, we talked about the second half of last year being a little light on the lease-up as people like Sprint and AT&T were getting ready for today's higher levels of activity. So we know we're going to be dropping off in that calculation lower quarters and replacing them with what we believe will be higher quarters, which is why we made the comments that we did about that growth rate metric bottoming out and then beginning to climb.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [17]
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 Okay. And have you seen, sort of, what do you want to say, applications or just activity, in general, continue to ramp through the spring and to today?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [18]
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 Yes, it continues to -- I don't know that it has continued to climb and climb and climb, but it has continued to move to cresting levels and maintain those levels.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [19]
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 Okay. Do feel like you're now at a sort of regular maintenance level? Or is it still going to accelerate through the year?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [20]
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 I mean, I'm not sure. It could.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [21]
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 Okay, let's talk about the other side. Churn has been falling quickly on a domestic churn, 1.5% in the first quarter from 2.5% a year ago. How do you think about that sort of getting to a normal level? What's the pace there?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [22]
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 Well, a lot of that is due to the runoff of what we call the consolidation churn, which was Metro/Leap Clearwire. And I think ex that, we were at 0.7%, I believe, was the number for Q1. We have always guided people to a long-term churn number of 1% to 1.5%, ex consolidation churn. Obviously, we're doing better than that now. We may do better than that going forward. I don't know that we're ready to kind of lower our long-term, kind of, guidance on that metric. But we're happy to be doing better and hope to continue to do better.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [23]
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 Okay. As we think about Sprint and T-Mobile, remind us what the exposure is? And what the timing might be for revenue risk there?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [24]
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 Well, I think we have the specifics in our press release. And I think it's about 6% of revenue -- leasing revenue that is of -- for each company, that is direct overlap. And as I've understood the commentary, which kind of makes sense, post approval, which is a long way from now, the first steps would be to combine networks to allow a as-seamless-as-possible an integration of subscribers, which would mean putting in one spot, everything from 600 all the way up through 2.5. None of that exists today in one spot, so that's going to require new equipment. And there is no one device, radio or antenna, which services all those spectrum bands, so you're going to need, in every case, new equipment somewhere, which is going to be an amendment process. And after that period of time, which should probably take years, actually, given the magnitude of what's at stake, then and only then is my understanding, based on the commentary from Sprint and T-Mobile, would the decommissioning process start. So you're probably looking at -- from today, 3 or 4 years.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [25]
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 And in the meantime, Sprint has said they are, sort of, full out. Is that consistent?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [26]
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 And it's only been a couple of weeks, but yes, that is our -- that's what we're seeing today.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [27]
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 Have you seen any change in momentum from T-Mobile?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [28]
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 No, everything is kind of just as it was preannouncement.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [29]
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 Good. Let's switch to 5G. We've been hearing about 5G for a few years, I expect we're going to hear more and more about it in the next couple of years. How do you think about SBA's exposure to getting paid for 5G? We talked about AT&T and FirstNet a little bit that's going to be part of their rollout. What are the other guys doing to prepare the network for this?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [30]
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 Well, I thought it was very encouraging and I think now, perhaps for the first time, publicly discussed in the Sprint T-Mobile news their view of the 5G world. And this may be a function of the spectrum that they have, but it was obvious from their comments that their network architecture in a 5G world would be still primarily a macro site world, which is our bread and butter, which was good to hear and see. And that they discussed use of massive MIMO architecture, which means a lot of things, but most importantly from our perspective, it's a new type of antenna, which is -- allows for massive capacity enhancements, speed, latency. But what it really does from a practical perspective for us is these are much, much bigger objects in depth and weight and, obviously, they're going to command higher pricing because they take up more of the usable capacity on our towers. And my understanding and everything that I've been told by the folks who work and design these networks is that once you get outside the high-density urban markets, which is not really the SBA markets that we specialize in or own many assets in, the more highway corridor markets, the suburban, the rural markets, this massive MIMO architecture is what's necessary to provide true 5G services. So we're very much looking forward to that, and that's how, I think, we're going to participate very actively in that regard. And of course, you're going to have new radios. There's no radios today that are 5G specced and a lot of equipment changes.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [31]
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 And you -- your contracts are equipment-specific?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [32]
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 Yes.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [33]
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 That -- at least I think one of the carriers say, "I don't want to lease a house where I have to pay to go through the front door every time I do." How do you think about the model of towers to carriers? We see carriers squeezing vendors everywhere they can. How are you exposed there? And have you given them, sort of, some help as they look at their rights versus what they want to do?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [34]
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 We do, we do. We -- I mean, that argument is logical. And even though we have the ability to charge for any type of touch or change on our site, we typically only charge additional amounts when an additional capacity is used, which -- if you look at this water bottle, and there's only so much water in here. If you drink some of the water, well, you've used up the asset, and it would appear, in our view, that it's only right to compensate us for that. That's how we've always approached things. And that's why it has always kind of worked for us, and we haven't needed master -- because we've always approached things on a logical basis. We have plenty of amendments where we have not charged our customers because they haven't used up any additional space even though we have the right to do that.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [35]
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 And that's additional space on your tower or they're creating additional capacity on their networks? I know you want to be tied to the growth in data over time.

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [36]
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 Yes, we have not -- even though our contracts would give us that ability, we have not sought to, up to this point, participate in that. We have only sought to monetize the use of our assets.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [37]
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 And there are -- as some of these carriers go out and build new networks, build new sites, there are new tower options out there. Do you look at these? And what is it about them that hasn't been attractive?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [38]
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 Really, the terms, the escalators, the -- just the whole variety of things that we just don't believe are good uses of capital.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [39]
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 Okay. I'm going to ask about small sales for a few minutes, and then I'm going to take any questions if you guys have some. So one of your competitors is getting a lot of traction and seeing a nice acceleration in parts of its business with outdoor small cell effort. You used to be an investor in ExteNet, you chose to not buy that. How should we think about your -- maybe help us with your thinking on small cells over the last 5 years, and where are you today.

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [40]
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 I think small cells are absolutely -- are and will continue to be an essential part of wireless technology architecture going forward. I think our fears about small cells being really a fiber-driven technology have proven true. And when I say fears, the only fear really is from a return on invested capital perspective and seeking to allocate our capital in ways that maximize that. And that's really been the entire premise upon which we've chosen to what we've done and not do what others do.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [41]
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 And so is there anything about the returns, I mean, aside from being lower, that doesn't make them attractive? I would imagine that there is certainly demand for it. Has it been competed away? Or is the fundamental asset something that's not attractive?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [42]
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 Well, I think there are a variety of aspects to it that are unproven. What happens at the next renewal cycle? What happens when there isn't really a speed-to-market need? And now it's just about reducing cost and fiber can be overbuilt, and technology changes. I mean, what happens in all those cases? It's not a tower. You just don't have the same barriers to entry and the protections that we've learned that are in place in our business over the last 20, 30 years. And again, there's definitely a need, and they're going to be around as long as there is wireless. And it's really different flavors of ice cream and different returns on invested capital, and we just happen to be fortunate enough to have different places to invest our capital to get those higher returns, in my opinion.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [43]
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 So that reminds me of an issue where the administration is trying to push 5G, trying to enable carriers to push 5G, and there is some changes in the law around infrastructure deployment. How have you seen that sort of benefiting SBA? And is there some risk to the protection of the tower as that happens as well?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [44]
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 They have opened up some previous slowdowns around tribal lands and approvals and things to make small cell siting a little more predictable and a little faster, but it hasn't extended in any respect to private lands or really macro sites or the things that are our primary asset base.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [45]
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 Hasn't changed the difficulty of building a new tower in a existing area?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [46]
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 No. And those are uniquely state right issues, local rights issues, and we don't foresee any changes in those areas.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [47]
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 Okay. Let’s open it up and see if there's any questions. Yes, sir? There's a microphone right behind you, sir.

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 Unidentified Analyst,    [48]
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 Can you talk about any activity you're seeing from the nontraditional carriers, maybe a DISH or big technology companies, just someone other than the Big Four?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [49]
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 Yes, we are one of I guess other -- several -- I don't know how many there are, but we have agreements in place with DISH ready to roll out their network, their license saver network. We'll see how all that goes. They're going to do that, of course. But what they do beyond that, I don't have any more clarity than what they discussed on their call last week. And really, there's -- our bread and butter are folks who own spectrum. I mean, those are the folks who really need tower companies. I mean, the folks who are roaming on other people's networks, they don't have any reason to talk to a tower company or anybody who doesn't have spectrum. So we'll be anxiously awaiting the 3.5 auctions that are being worked up now and some of the other upcoming auctions, but it's all about spectrum and deployment for our industry.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [50]
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 Are there are other, kind of following up there, technologies? Or Jim (inaudible) like to talk about drone networks and things like that, that are coming down and are actually in the process of deploying something, or is that all sort of vaporware at this point?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [51]
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 I think all that's to come. Yes, I mean, all those -- remember, you only need to be on a tower if you have something to transmit and receive and you have spectrum with which to do that. And I think all that -- and Jim and -- I have a lot of respect for Jim, and we talk about that stuff all the time, and we're looking at all that too. And there will be stuff there, but it's still a little early.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [52]
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 Okay. If you have a question, raise your hand and Mike will come around. Otherwise, let's get into the international side. So roughly 20% of revenue, about 14% of this from Brazil. What are you seeing in Brazil right now?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [53]
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 Brazil has been doing very, very well operationally. The economy is improving. Our lease-up has been ahead of plan. Last year, Brazil actually was our best-performing market. We divide each of our countries and call them markets. We're frustrated, though, with the reais because it's not really connected with any type of economic issue. Inflation is actually coming down as opposed to years past where the reais traded off based on movements in inflation and interest rates. And it all seems to be based on political queasiness around the October elections. But putting the reais aside, operationally, things are going very, very well there. And we expect them to continue to go very, very well.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [54]
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 I think the reais has gone from highs 1s or 2 to, when you bought it, to over 4 and now down in the 3s.

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [55]
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 Yes, we -- it hit -- just around the beginning of the year, it was close to 3, 3 even. And just looking at it this morning, it's up to 3.67 and has traded off tremendously in the last 2, 3 months. And it is based on no real economic news but all based on political uncertainty or fears of political uncertainty around the October elections.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [56]
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 Has the volatility of the currency sort of changed your willingness to put more money into those -- either into that country in particular or just outside of the U.S.?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [57]
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 Well, it certainly causes us to continue to be rigorous about how we model and the extra returns that we look for and to build in healthy FX cushions in our models. And I do believe that this too shall pass as prior currency issues have passed in Brazil, but it doesn't make it pleasant today.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [58]
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 Where are we with Oi at this point?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [59]
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 Oi is -- has the reorganization approved. The creditor's conditions to additional capital, I believe, there is one large remaining condition left, which is settlement of the Anatel fines. Rumor has it that there may be some waiver willingness on the part of the creditors to that condition to really allow money to get back into Oi to jump back into the development and deployment game. We'll see. That should happen in June. The bigger picture as to Oi's future and the Brazilian market in general is the fate of the concession requirements down there, and those appear to be hung up in congress right now and not likely to be resolved until post the October elections.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [60]
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 Whether the concessions are resolved or not, does that change anything for you near term?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [61]
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 Not near term. I think longer-term consolidation may make for a healthier market down there. It may -- it's not as necessary now with a recapped Oi. Prerecapping Oi, it was probably more desirable, less so now. But it still could prove to make a more healthy market, which is always good for our industry.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [62]
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 Okay. So aside from Brazil, you've entered a couple of markets in the last year. Help us think about where you are. And is Latin America, sort of, as far as you want to go? Or would you consider going more afield?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [63]
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 We've had tremendous success in Latin America, and it's given us great confidence that we can operate this business in other markets. But having said that, the farther afield we would look, the higher the risks we would consider and that we would recognize and to have to take those into account. So while we are very comfortable in the Western Hemisphere, we will look outside the Western Hemisphere but with appropriate cautions and risk/reward analysis.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [64]
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 Okay. Not ruling anything out?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [65]
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 No. Can't ever rule anything out. I mean, that's not what people would expect me to do.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [66]
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 Are there more deals to be done in Latin America, more carrier sites to be sold?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [67]
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 Yes, there are. There are fewer and fewer, but there are still plenty of carrier-owned assets down there.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [68]
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 You made your 5% last year.

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [69]
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 Yes, and we'll make it this year. I mean, if you look at where we sit with the Tigo, the Millicom, El Salvador deal, we're pretty much there already. So this year, I feel extremely confident we will get there. We got there last year, and that will continue to be our goal for next year.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [70]
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 Okay. Let's talk about your adjusted free cash flow goal of $10 in 2020. You're guiding to about 9% growth this year. So we're going to see -- a real acceleration in the next couple of years to hit that number. What's the driver behind that acceleration that you should feel comfortable with?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [71]
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 Well, I think we're going to see some very good EBITDA growth on the -- particularly on the backs of the U.S. lease-up market that we talked about earlier. So that, I think, is going to put us in very, very good stead. We think the international markets are also going to be very, very strong. The question marks will be where is FX going to be? And where are interest rates going to be? And one final thing is a large portion of our plan has been stock repurchases and it will continue to be because I suspect we will continue to believe that, that is the highest and best use of our capital, and how those go relative to where we first mapped things down 2 years.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [72]
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 I expect there are a lot of different inputs that go into that $10 and pretty wide ranges on all of them. Has anything in terms of interest rates or growth been outside of your expected ranges as you think about that $10?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [73]
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 Well, we've had -- we're 2 years into it, and I would tell you that we're ahead on EBITDA and we're behind on FX. And interest rates and our share price repurchase multiple is higher, which has resulted in less shares being repurchased. So those are your puts and those are your takes.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [74]
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 And as you think about leverage, I think you're running sort of almost to the high end of your leverage target. How should we -- the pace of buyback in the March-April time frame was pretty fast relative to what you've been doing recently. How should we think about the pace of that going forward?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [75]
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 We tend to be opportunistic. I can explain to you what happened there. We used both open market and 10b5 purchases. When the first rumor of the Sprint T-Mobile reconnection came out, the tower stocks traded off. We went into the market at that time, but the stocks traded back up again very, very rapidly. So that was that period of time. That was the -- really the big April purchases. We didn't -- we would have liked to have get a lot more done you know in the mid-150s than we did, but we bought where we were still very confident that we were below intrinsic value. And just as we have many times in the past, I think people will be very happy with those prices in years to come. But that's how we think about things. I mean, we will continue to be opportunistic. We'll try to avoid just being rogue repurchasers where it's just a formula base and try and -- one of the things that is I'm sure disappointing or perhaps vexing to investors but can provide great opportunities for a repurchaser like us is our stock is more volatile than it should be, given the stability in our business. But if you're in the market to repurchase your stock, it can provide some good opportunities, and we try and take advantage of those.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [76]
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 Okay. Last question from me, unless there's one from the audience. You left guidance unchanged in the last conference call, but the body language was clearly that you feel good about the business and it sounds like growth is still coming through. What risks do you see out there that sort of kept you from raising guidance? What would have to happen in the business for you to raise guidance in July?

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [77]
------------------------------
 Well, it was really very soon. I mean, it's only been 2 months since we had last given guidance. And remember how we started this conversation about what has to happen with the backlogs to turn into signed agreements. And even though we feel very good about the backlogs, we're not going to get ahead of that process, and we're only going to talk about revenue once we get to the signature point. So we will see how many more signatures that we have between the last guidance and the next guidance and that's what you'll get.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [78]
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 Good. Good place to stop. Tanks, Jeff.

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 Jeffrey A. Stoops,  SBA Communications Corporation - President, CEO & Director   [79]
------------------------------
 Thank you.

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 Philip A. Cusick,  JP Morgan Chase & Co, Research Division - MD and Senior Analyst   [80]
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 Thanks, everybody.




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