SBA Communications (SBAC) 30 Oct 172017 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the SBA 2017 Third Quarter Results Conference Call. [Operator Instructions]. And as a reminder, today's call is being recorded. I would now like to turn the conference over to our host, Vice President of Finance, Mark DeRussy. Please go ahead, sir.

you Conference us Call. thank Quarter SBA's and Earnings XXXX evening, for for joining Third Good

our Here our Executive Cavanagh, President me and Financial with today Chief Officer; are and Jeff Stoops, Chief Officer. Brendan

including, our In may we we information from detail SEC to guidance on is to, the of cause release results but and and differ will limited beyond. Some not XXXX filings, that our press this future material discuss expectations. call risks forward-looking, today's for our any in

are we statements October and Our of as XX, update we today, to obligation any have may no forward-looking statement make.

our quarter data to reconciliation financial I measures of on package, over on the which addition, in of items and The information will call to other Brendan found metrics. these is Investor that, regarding located operating In results. With include page Relations website. and can will third landing comments financial other our the supplemental non-GAAP turn comment be key our our

evening. Good Mark. Thanks,

over The revenue and a which third Metro/Leap was XXXX. third same-tower currency on during as basis, operational quarter, third XX.X%, quarter XX.X%. exchange positively third the growth leasing recurring the on revenues by of were well same-tower the the X.X% currency on related was one of as GAAP gross We foreign third On Gross basis quarter. stable churn, last revenue company's of revenue growth basis quarter business. XX% for our growth basis X% by our for revenue $XXX.X terminations. quarter, business Total was same-tower X.X% Domestic impacted a basis, approximately revenue leasing leasing million, the leasing XX Same-tower activity, $X.X leasing quarter on and a including Domestic negatively a third the was a approximately SBA. over X.X%. was cash rate year calculated the good over net recurring growth of expectations in on cash gross Better-than-expected services was million and relative of leasing with cash for a in X.X% and the prior to growth which expectations. churn. X.X% The is performance leasing constant $XXX.X site was contribution side impacted cash net leasing from line another solid of site revenues had steady were churn. quarter for same-tower was up operational of Clearwire exclusive new constant representing Brazil growth of signed to was Internationally, organic basis, gross calculation points million.

continue modestly domestic quarter, and to for positive increased continued to very contributions a all solid our prospects leasing market opportunity solid long-term up us the investment in new came the incremental returns of activity had giving signed carriers the domestic represented there. see leasing quarter. our from in of see during the from particular the and International amendments, confidence almost on very markets. quarter, and and that leasing Newly leases we XX% equally Brazil total added X big revenue revenue second leasing from

expenses. and representing pass-through to third Metro/Leap non-U.S. with site the site churn from we quarter cash of X.X% see of and leasing from dollar-denominated consistent excluding with churn, With third denominated majority regard revenue leasing dollars. quarter continue to U.S. revenue cash During The our the revenues with Brazil, from cash Clearwire revenues during expectations. was XX.X% leases leasing site quarter, in revenue Brazil was of of XX.X% all

churn million from expect annual As That's at X Clearwire X an with from off Domestic leases run same-tower that basis third down was to on in of of quarter September years. tenants recurring we X.X%. ultimately and XX, we from XXXX. all next over the other have $XX annual million churn $XX revenue to approximately the September Metro/Leap XX, rate

same-tower to expect the We churn range mid-X% rates domestic be continue of by in to the the year. end

total our expectations. goal share or the to AFFO flow $X $XX by producing expectation Better-than-expected $XXX.X into cash is Tower million. impacted exchange for XXXX. rates long-term million churn by unchanged foreign quarter of more factored and of Our for cash tower per is was positively approximately relative third flow prior

have was in pass-through us controlling Adjusted towers, have to XX.X% our expenses. quarter. We the costs direct continue the success margins Domestic allowing the reimbursable the cash XX.X% excluding XX.X%, strongest in flow tower and was in International third quarter continue of impact $XXX.X cash flow margin the associated with margin to to industry. million. the was operating tower EBITDA

$X.X positively rates by approximately expectations. exchange to million impacted adjusted our EBITDA relative Foreign

to in modest with EBITDA line revenue, was services year-earlier the leasing continue Services in We results in growth. was quarter tower expect over the the the increases top continues million, organic Adjusted to leverage of adjusted generally our from quarter to due our to were And as Our decline quarter demonstrating existing drive XX.X% up results anticipate in period. both tremendous for businesses. to connection quarter but cash expectations of scalability the with the solid to EBITDA SG&A SG&A XXXX. the XX.X% quarter otherwise continued in a additional our line third $XX.X in X.X% model. from in back-office were compared of revenues but percentage value margin structure international expansion and the total third

third million business margin of relative in by million, prior to positively Excluding our expenses, $X.X approximately in to to was EBITDA revenues adjusted rates. foreign impacted attributable quarter stronger quarter. due the XX.X%. total Approximately expectations pass-through the amount impact AFFO was which tower $XXX.X EBITDA was of adjusted exchange XX% third the from was our leasing

in and the focus $X.XX. the of beginning share per is a AFFO quarter third AFFO management In fourth toward To growth we quarter. our allocation per Our end, increased a share, had very to continual productive primary that XX.X% for optimum to capital. drive

is followed third forward. by assets the with XXX share for sites during X new to As we've We toward additional that, share we of indicated rights and communication manage anticipate acquired quality quarter, and preferred communication line repurchases. portfolio both of healthy in the In mix use the past, sites a repurchases $XX.X capital our investment million. going

third Brazil. price today, for of Subsequent located these purchase most contract We during XXX acquired we $XX.X sites early under X,XXX sites to quarter-end, of anticipate at aggregate million. the international built XX in sites million. contract with of quarter. sites the an over of price sites an additional under closing have these also additional currently X,XXX Also, Colombia communication aggregate of as Brazil, We contract in where and of we under we acquisition have sites in $XXX.X XXXX. Peru, markets operate, XXX including additional are located at

look returns. platform for scale add to continue are to quality opportunities in can where assets we and markets comfortable operating maximize We to our existing leverage and

under continue the land sites, both and also in to provides invest We strategic benefits. our financial which

During control, average leases, easements more land ground the terms. remaining buy XX towers, the the to land our our life end lease At is approximately of than our extend to and underneath XX% or of quarter, we spent $XX.X an XX quarter, years. options the the ground and aggregate under for controlled and of including renewal years approximately under owned million we

demonstrating continued strides share last date assets in X.X repurchases. have significant through the at in an to the million for to $XXX average our million our to price we've business. invest repurchase made earnings investments of X.X Notwithstanding of significant portfolio we we remain within tremendous securing addition year-to-date the our In capabilities we $XXX.XX This the Since $XXX also we've to existing opportunities, deleveraging total spent attractive shares million brings our comfortably of release, shares. leverage investment million per organic range, share. share target purchases our made,

driving growth share low-cost high access leveraged capital growth in which allow by our us debt, moment, EBITDA Mark and to will steady to in AFFO per Our investment. evidenced a yield through transaction, discuss as recent continue

now to outlook XXXX. fourth ahead our release full year for our Looking quarter, includes updated earnings press the

increased per results. quarter due cash quarter reduction adjusted leasing expected the third fourth as to were guidance rates our revenue, well third These and quarter increases primarily a midpoint as straight-line site revenue for expectations of FX around We rates, revised small AFFO lower share. FX ranges actual tower and flow, EBITDA in have

operational we made assumptions of we the the remain XXXX with our in the assumptions as same providing same activity for experienced levels guidance remainder the leasing the when during in the third Our updated quarter and July.

one estimated removal $XXX expense net estimate approximately But that of much of immediate our employees, amount year. our particularly due net these those access to USVI in items, put fared these fences, There communities Puerto in in unsecured those were senior CapEx to incurred during We traveled for work the is mix incremental be which and interest repurchases We storms Rico Maria. have tower, also the expense U.S. they result make on increase notes XXXX site the incur million as in cash in repair sure in and who and inspection a damaged with wildfires. that to did our U.S. We our of with a to with currently to million revolver anticipated debris roads we local cleanup We cash otherwise, expenditures during is and provide the tireless Virgin outlook and our recently increased Irma be and outstanding interest want and cost hurricanes associated higher repairing our commend well connection storms. and badly balances expenditures to we for including nondiscretionary for and Islands to interest due as million Islands. CapEx. done, customers The affected capital completed pretty these have the Virgin devastating by and able California The work well be nondiscretionary rebuilding to increase is total average have damaged safety $X $X associated OpEx share issuance. the the assets checks. to support Harvey, in storm-related will will capital

call provide above Mark, position will and them things over liquidity of turn and an on will update to that, sheet. the of went All our With I duty. balance beyond who

range the with Thanks, adjusted quarter $X.X net debt, X.Xx. our Brendan. debt to SBA targeted our ratio to annualized of Xx billion of net and X.Xx, leverage was within ended EBITDA

with weighted an $XXX cash the net no have X.X coupon years. was outstanding debt XX, balance transaction, EBITDA ratio are ended common quarter and facility as forma earlier, at issued Net we annum, XXX.X of October maturity our down approximately we million notes our notes. Brendan used and unsecured outstanding a average mature and stock revolving our revolver, was These XXXX. of ago. a currently repay million $XXX net of million under interest the $X price X% have today. purposes. for per from We general XXX.X $XXX shares of quarter average were X, today, October stock million for this proceeds as Current third Our million we interest but of repurchase credit and cash of repurchased outstanding expense at senior as of under average offering have outstanding corporate coverage $XXX.XX. of Pro these on program. per We On for our shares outstanding rate weighted authorization under billion to million year of remaining was X.X%, X.Xx. $XXX our adjusted million, semiannually million bear from $XXX mentioned payable X.X Year-to-date, share interest

per to to Jeff. capital drive We with now ability With our pleased that, call share. we structure, I over the believe AFFO to our be continue growth will and which turn maximizes

and Mark, good everyone. Thanks, evening,

share. heard financial had and strong margins good industry-leading another you results including in quarter. year-over-year solid per delivered Brendan growth AFFO operating we As earlier, from We

and to significant shrinking portfolio We grow made strides our count. also continued share our in

and was solid expected the leases U.S., megahertz LTE overlays, upgrades exchange mix the a Our as amendments. guidance. positive again include increase X,XXX, the of operational XXXX continue with and deployments. results our improved as allowed XXX activity in well for XXX quarter, full capacity adjusted us Growth to AWS-X customer expectations drivers rates, have with year combined to new foreign In as

we U.S., some initial see next the yet. nothing be in begun operational to year steady FirstNet incorporating leasing activity been although from We've better. AT&T material has needs, believe year this applications While should

FirstNet, into next As are of have over expected of many months. the today, XX states more opted and X territories couple and

with see XXXX. expect for about are starting SBA time deployment We and in the associated FirstNet prospects some to excited

X.X the earlier XXX rumors spectrum. potential macro there on however, DISH's be antennas megahertz, drivers of comments And verge investment appears for continued just over potential in FirstNet, radios many to broke megahertz as gigahertz on years. kind to next public the in and of addition and other the based growth today, AWS-X, years, material Sprint's the Sprint that In deployment including deployment future first the and of are well WCS few as XXX

will in predominantly be better, great position stated the things And a past, come. years to in very results. in we've As macro think good get while a being with our company the U.S. international be be tower pleased to U.S. expected we we for to continue to and are

international that significantly, the and our assets we Our with we including future Brazil. continues in nice as towers demonstrates activity capital, leasing complementary our investment we a customers They shareholders international experience base operational located third invested The creating drive investments particularly Oi, our there. increase of international existing from in Brazilian And performance quality FX to down international was data market, to very the Brazil and sites new existing portfolio. of where and We lease-up with so several agreements entered Brendan come customers, company amendments these TIM returns over in Vivo, returns and experienced believe markets. our it's most of added from continues private from quarter and in our and equity-backed Increasing to have mix under the XX% movements particularly X,XXX a have our markets leases. operational came Brazil. including, these revenue scale. built we those over improve. come markets have activity XX% through incremental efficient can value X% sites of purchase quality We're are to Brazil, there. XXX recently revenue the size our Brazilian existing assets into leasing very only in diversification the are be for trend additional generated initially for Notwithstanding sites supportive our markets, when very towers very high-quality nice this about revenues first as usage positive, prospects in in management on prospects and international leveraging locations mature our those Peru a extreme a our and good, strong our activity solid mobile healthy from are primarily significant nice international for independent tower mind, selective in The we and about quarter in negative relationships entered through in by And Colombia. that excited very existing contract down the from economy mentioned,

meeting the for Oi, general to slowly. creditors continues process scheduled Speaking of of restructuring move along week currently The X. the is of November

with final several In in interests be due we operations a the of process, successful new amendments. Oi will the meantime, as all and of between restructuring there While SBA are to as continue judicial involved continue well the collections outcome. competing normal timely believe as the execution amounts

to customer ultimately emerge from prefer see expect and process. very remain process positioned would quickly, a we see restructuring course, this of While, to we completed well more the stronger

we to per we to achieve more our achieve to XXXX. well sound this we positioned with optimize $XX or share goal order allocation. sheet of regard decisions make capital Looking of to In continue balance the it AFFO and coming are by to believe believe now imperative remains years, goal, our to

X.X of debt well As EBITDA, mentioned X.Xx net our within quarter target earlier, to the ended annualized we range to adjusted with X.Xx.

allocating by goal of to not XXXX. adequate will these our sites number be quarter-end, capital and although until growth towers meaningful XX% During of great up under we the may early repurchases. acquisition subsequent to year, portfolio quarter that to some portfolio closing X% have share we and success meet to had end of meaningful in both contract The this growing for our

recently priced more goal issuance, share balance least of drive Our access on yield significant by remain per our shareholders. additional to attractively allows financing, our unsecured such AFFO continue at us as liquidity and XXXX. to or our our achieve X% sheet to use returns for solidly increased $XX closed high We track of to to

during to experience employees many performer of to be for many a and echo the the have believe years with industry. by be third their to the will tower strong continue provide in now share operate. challenges thanking such company the assets In in to continue I'd an like Terry, brought a with in to resiliency I'd on enhanced for we success. grow to AFFO contributions thus strong our of our quality contributions proud wrapping We thank our and comments people. for us We earlier major up, per dealing continue customers the significant are at investors. that group returns to to allow and ready our we our employees the our a operations of with high to level to markets also tremendous that, of dedicated determined like the where optimizing associated quarter And affected we I'm Brendan's the their hurricanes and of questions. many and

Flannery [Operator from question from Morgan Stanley. Instructions]. our first Simon And comes

talked you color of Jeff, then doesn't Can bit it come WCS, amendments? sort in from terms back a And updates about you FirstNet. a about a like little bigger They've any that than it while of new about bundled us your colocation pricing how for so What's any more clearly what might looks give with versus on talked perspective pushing normal. escalators. that? X% carrier is? on on the latest be And amendment

filing. kind rates kind rising of interest flow. side much a other not arguments a topic we escalators, Simon, bit we see -- are and not where in it's with little have our discussion, We topics. on kind engage in you ebb but our supplemental that And a rather It's rising that and one of seen any of changes either the always bit, on and of little would of inflation

a like, In in us an as AT&T this be think best they of as one out are out what is for on terms they a continuing should is the taken terms being can kind one of what and fully is what to exactly do kind it shape. really fieldwork say, so that FirstNet now is do take then of to they I trying them will lot It and lot auditing assets, figuring word do process. in done There roll. figuring there truck yet truck be of to in we exactly their available still believe side. looks mostly what when their amendment of I work "We to are space of roll," at do want

well, So front. XXXX that promulgates and going that which for to is you're big, cell the for year I amendment I an us industry of for But sites business. pretty but for you're AT&T, certainly pretty given I certainly about think mostly number the think to be active spectrum, exact XXX don't see mean, going I in it's know, megahertz SBA the fact talking

And of RBC now the Markets. to from line Capital Jonathan Aiken

So guess, mainly my I related. questions international are

all, your remind have -- you Brazil business, that escalators CPI of contracts in based in-place much your are on can are us how of First of versus fixed.

market. that decline I kind want business I me if provide could make to the on the a sort the I'm Given any about correctly. going strikes sure wondered just forward. have nice you tailwind Brazilian of CPI, thoughts Argentina of it in And you then thinking that into

we from of bought revenue, on of had Yes, our the Oi X portfolios roughly them, escalators. that question, floor the basically of a X.X% half Jon, on leases first all the on the

have development excited of long, there, the books of down to think the because the market, type is at of Argentina people about mean it's don't assets I carriers there think we by very we're market most way What that down be because been depreciated sales market. long Jonathan. be going point, on a that will that the assets this On there,

wrong, up wake tomorrow be commentary. could been has headline be but a there I will Now and I and that the could

the we think, to think that's our into a continue there markets, just for building. is I we grow a and up processes we mean, and year have lot and of shine. and after of what like greenfield is staying after And that. procedures, in ours, these power I example good and you're year. We So really get really I the a big to set going company established where year see, get resources to Brazil

I will past quarterly on towers a we've years Argentina reporting think for think basis, most to Brazil this similar we built and the come. results we've built in quarter, I be that in ever

in then to drivers And different just the any of the services your about turning U.S., terms trends of think business? to

I think QX any and things thought middle changes to I where where really at we was QX the wasn't ended candidly, There down they're the fairway. be right where of see all mean, and we we would frankly QX from pretty come. being.

to it everything been of about all for then we work it hit I the of increased And the XXXX. it's towards and the release building be terms in the the to not that has all that, until that levels all starting going financial think and activity see truck we there a talking terms is But building. of hasn't been building, certainly impact, Sprint and lot FirstNet in it's and it's But years. things the one really macro and of several there, around roll see last actually happening and of that.

Amir of line the to now Rozwadowski from Barclays. And

drill it like FirstNet? at environment. your FirstNet maybe comes is on seeing commentary assume the right the if could on carriers? calm, a know on it Clearly, there activity. board down some you're we expectation the I to activity for terms and was is Or across you'd predicated relief mentioned improved Sprint. environment that seeing demand wondering obviously it here improved the little of initial some the in you're Is sounds demand to I when

sure Just Jeff. there, is the what of want visibility to sort make

and out, out change, the a don't changes occur, into think want right to the far that the expectation FirstNet behavior. point positive I change only too be ourselves would in the commentary now, point as Sprint's I get ahead would around them I others expectation obviously want around of to But Yes, XXXX. and today, they really we'll

expect that very in been competitive Lendlease a about any wondering, you then with some numbers SoftBank. thrown if in available available There's along anything of significant do was potentially chatter visibility I in helpful. pretty were change good in There's sort market sites the would fairly been sites That's you're be lines. have there the seeing with about landscape? marketplace, could or color the some And love terms partnership suspect U.S. you would that of there. getting that big those so any involved guys

surprised that users. the Yes, rooftop chatter. to they're by the non-Sprint understanding know industry. I'm of pretty with That Those deal don't are My was a the those rest I towers. sites in is tower aren't if surprise usable single-user folks that

as the industry, I as mean, changing kind but more capital competitive adds capital look that be this could I mix, wrong, of a transaction. that don't certainly dynamic. So chasing to Amir. really of I financing the but competitive always at been always I see it plenty there's

Ric Prentiss James. of Raymond the line to from now And

thanks for international. U.S., Jeff, FirstNet. color One the on one

is trying think I 'XX. just know of just not we and them an it As think should it of but we think what the think should ramp. feel or in we giving something of kind have ramping philosophically the how about throughout benefit FirstNet, that timing, And your guidance? visibility to ramping would you're Or about requires guidance, how MLA? comfortable it how ability to the

require Well, MLA. doesn't it an

not depending but what or period from more. similar should up the work has time that site. X amendment revenue gets a lag the typically to us. a to to might the colos to sign equipment you go then the MLAs any different gets on done if past. than Amendments people from in that know expect wouldn't it, actual than the and on I And accrual If X book business. you be And probably time actually it's you of really or when like did have typical that with put probably been. I sign mean, others lot the always always lag it you up, expect an things faster months there's the the Don't ahead MLA, the may straight-line

sounded anxious more Right. And and it get AT&T interested, sounds to even it pretty like might going, reform they're tax get like.

Yes, would XXXX on commentary, going. with until to I you. I get agree really I think they to are Based their wait I mean, going do. But

is Oh, where kind said yes, no, January they they'd ramp-up. of

Okay, of of what cash but we wave might Brendan, XX% think to of mentioned acquisitions? How big factor I mean your should thoughts Just in ex on next site your think the you the passers. our about to that site numbers. Brazil these international acquisitions on side, will cash come? this was How about trying X% Brazil early

but not acquisitions mean, are the of all component I Yes, Brazil in that it.

adding You're expenses, so structure talking about be will of existing passed have our there, operations the same specifically, will rents maybe the as a couple percentage It points. through. down ground the

probably mix, X%. by we're So looking XX%, goes at to XX% our overall international which today is up XX-ish,

somewhere around these figure pass-throughs, XX-or-so would percent I deals. is post Brazil, So excluding

something the a getting there? lot do for the important as you involved down to you We're of How that's fiber tower guys well, tower with? about sense. look at Makes and fiber get questions that might to internationally XG. Is

Rick. and at here, did like looking it just We're we it evaluating

haven't we for I did, far, if posted. concluded mean, it wouldn't while, so a we'll And be material you we keep And anything. but

to now Matthew line And the Bank. from of Niknam Deutsche

strategic two Just capital on and mainly allocation.

forward. First, latest context and close, just think to I availability of give of sort in has of of an supply the mentioned and how in can it expect buyback I the relative you just if M&A And announced valuations. of you then terms us wondering or terms want And there in Just you're on seeing internationally? sizable some any about sense portfolios changed on a of to either the get of pacing transactions update valuations secondly, M&A sizable to other are anything to opportunities considering? you're the

tell we're first I think don't there we more transactions But going on tell these none answer will during of are I'll of. the one. there most a in. were for went couple, second working that you for And three transactions been us But that away the year. I we the a that are probably competitive from Well, were We've to time, Matt, couple one And reasons. that so the great you, interested allocated aware there as little both we as do forward. quarters repurchases. I it we is a would that that both Obviously, move one, stock don't moving numbers forward. do asset more of growth room do to and to that shouldn't bit but expect isn't both Maybe of do this think will you did some vary, expect we for other, but I of each the fully year, this we

deals own was follow-up, mentioned just opportunity anything those? in went more that else and impacted is just stock? Or could back relative from away buying more the that valuation there saw you that your I if And you you,

with It's always us, valuation valuation. always relative

to UBS. And Batya line from the now Levi of

maybe to Can of expected terms color more region, terms you in some AFFO? portfolio? that In will and impact tenancy the in be on of seeing growth similar it growth, the provide you're in

first on. missed you We you're I'm the sorry. repeat It of like question. didn't sound part your Can it?

international tenancy, and The that terms color purchasing you you're growth of you in can accretion in Sure. on portfolio, mainly more provide rates Brazil, announced AFFO?

tenants be per is tenancy the X.X to to share per X.X either expect tower. We AFFO or today accretive it believe growth. I

Yes, they're sites. very immature

we Which like it. is why

Right. They're very sites. immature

at grow existing actually to them business. legacy rate our than a expect We faster

growth rates. they additive our or be to guess, I should So accretive, growth

consolidation pullback get do stock, Okay. in And target? the you if then the that the for one about industry get it how to consider leverage we right acquisition, or on U.S., a the you Would think follow-up higher if in target. we take

less where consider we stock likely our taking be things. the repurchases for clearly back of likely a would a see acquisition probably way within higher could to delever it We more side to year, on good

from to MoffettNathanson. Deo Nick And Del the line the now

been from I've of out the with to willing expectations were a Latin folks you're of that hearing of number pay. kind America sellers generally Over in the whack you're what summer, of

you to of there? and the in towers there's moved guys of commentary the pipelines, that what Given have kind under contract terms say favorable some safe been it willing Or you pay? to your have is up around movement you're

and a been finally approach, our patient It's be. and got Nick. in where very been long we to We've methodical we needed year,

a maybe the as guess, future I international leg of speaking, Okay, you more been hemisphere of generally today. expansion, good outcome. you've think exclusive Western And in

may think hemisphere? And in sort attributes the afield. might do the want in you've Western to to to opportunity you the up line of you you the versus talk of you see get choose size have eventually interested further you suggested what markets about you past, Can how outside that think I move of here? what

that I have higher think markets growth it we have be supportive be interested strategy. can what in and those and we're have a going in go additive where of capital most levered add to and rates we appreciation to

of Bank America. from line the Barden David now of And to

I guess, a couple.

kind know you is direction to Sprint, wireless could love We've where where a we shear obviously, gut XXX or wind was for kind weight is and of physical an I the T-Mobile Jeff, antennas cetera. market, for maybe, best little of pick second know the would mergers, this was et go, period from the you been amendment going of and of panel to then wondering amendment. what the SBA? of on and we kind kind of out, of towers, megahertz, Just whipsawed a to kind that kind don't understand course. what got built XXX the perspective. could kind a but up to of new of the is was investment a comments they about being an And still if parameters the bit I just last, wait-and-see size jury little consolidate on those on bit reaction, the there turn following be, of FirstNet the to your that which elaborate be if some the a And consolidate one was? magnitude out the infrastructure on if

going little WCS. going going the bit think in general, depend to I to because on obviously, is to pun amendment radios. pricing tower it's on particular I'm a do and AWS-X going I to see include lot new we're the a mean,

have so your are the there. early, obviously new of for the -- stocks all Brendan's I that either up actually But the prospect And do at done basically T-Mobile, You then that if the good could second would happen of And combination the some I stronger up T-Mo, if think be, investments looking together. today our than amendment. that not to radios have of is I add the from FirstNet X. of got point new and X with half the to go think is more the invest a a do you it -- sized think dozen other, it's a one, But black-and-white. I antennas, actually X, six you're moderately of before. that's investment of future staying the believe because combination to a worse, answer Sprint, I up would to kind they on there on going the combined question. on have see And for get it's at spectrum. entirely going generally, you think that where X, in X time, Sprint, over where

that's think probably I good.

see it. as as So I the sees this don't binary market

question. on Dave, newbuild And the

the were chunk So other of was the And were those And U.S. built contributors built of XXX, Nicaragua. were those, Rica Brazil. XXX, biggest those the a internationally, of XXX it were then our but markets, throughout XX XX in the and big of spread in Costa only of

the Brendan? there, what's investment total And

Dollar-wise?

Yes.

the It's isn't it? in press release,

Yes.

off cash that the it new of $XX.X in the the in flow I disclosure release, the don't release, But was top it. apologize. construction of that think head, in release, the do press I be during we would the the that have press my million, I press spent quarter. even sites, know says

well for sites been as would've the as that are that of got sites completed. that some progress So in

And Piecyk now BTIG. to line the from of Walter

antenna? spectrum on antenna, the the have AT&T number whether for particular them Or on in the if is they the that whoever that of on ports it amendment couple or increases Is multiple into spectrum increase depending for A radio replaces the band? price follow-ups. ports basis on hook price bands, for based port that different When a an price? up what does actually of they

say any smaller, whether bigger, out is it's that. equipment, we we or such do change the a there's anytime this load, of there's Walt, to right, what typically is takes additional We customers heavier antenna. do the and charge happen it, we do, change have a What interestingly charge wider only typically they fatter, skinnier. exactly up don't our amounts as We to just when when additional want, typically

at to different times, Now typically we we right have the don't. charge

it. Got

So And that additional is, today, charge no antenna whatever you for if from have WCS, is. extra it it ports layered point that there's up they an go they up at if the incremental in put came whatever and AWS-X back guys? for radios future usages, in will spectrum max

Well, opportunity no. agreements structure the Anytime they're us an adding or our under changing, to there's something. for charge of

particular and every whether look Now of we circumstance we do that site. fact or not, at

So there's in but that or of add you Walt, hypothetical, or your radio a could a change or hypothetical, antenna, don't. add where often you any an -- we change charge we use more, when

And company actually you. indication based on they're from again? you some the earlier, so think on you next going start spring be there just that that saying Got then are your understand from has I year? macro might in spending this active reports Or correctly, been news commentary to they actually more

on seeing Based in and quarter commentary our in pipeline. the application their field we're what third and

in then similar Verizon? And the any did there year, T-Mobile give lastly for year is that you from up them but you changes from office Verizon, on kind T-Mobile or awesome. CTO or thinking T-Mobile then, Verizon? Has a XXXX great, us versus last? the some that update or Is And the can the for XXXX? That's this in have down I'm change Verizon changed been of activity there of broadly they've and generally outlook more more recently. had just

it from last being get she as either anything behavior because where over prior Verizon. and Verizon hasn't T-Mobile Sprint couple we of been there the Yes, the want with with years, I to change goes. is reason of both that kind I see their or T-Mobile say I don't did that would And granular really only but such a steady

And now Nispel to the from line Capital Markets. KeyBanc of Brandon

on new you and FirstNet stable obviously us could coming in run you I rate? leasing million drop $XX spectrum from Or off can XXX, have then consider you deployments guys understand new what XXXX. guess, help XXXX of in in and would roughly X.X terms a activities

do to trying get you're that. guidance, because XXXX and I No, prefer to we would not

now to of the line from Gutman And Guggenheim. Robert

the next spectrum, prepared and impacted that Are you how seeing In that you clear are And already? you're wasn't from throwing then are, year? the remarks, if and would that implying drivers. activity you FirstNet current those I AWS-X by mentioned be in WCS if

a one that truck rolled as one of truck be to was I AT&T implying that from still roll along lot this expect -- see the of FirstNet. still No, roll that it to we into part will that's with come mostly

Velásquez to from Rosa State And of now line the Street.

my is question to very Brazil. think I specific

thank the So for you on Oi. update

mentioned you judicial it's think slow that undergoing I of this process reorganization.

then my consolidation your possibility sense redundant field? in So then so, what's territories in be is still to an is have just what's possibility risk? not would second able And to first you loan of this the But is agreement strategy I a related network get if to And leases among intercompany you're place. entities. the considered wondering if in what's Brazil, just then a Oi? nonrenewal that outstanding, in acquisitions offset part the of I'm maybe to So that's if I'm of my recent this players the of and potential sure these of limit if top Brazilian and question. so, scenarios, share question of want the with a this to if Part that?

day question, the first and of rumored, Oi. kind your that and and long that, current that's On week. of goes are been and thought we on possibilities TIM, there be about Okay. for comes rumored would One depending have two the consolidation with

don't to I've many would carriers around thing. times this think, Brazil need would would think be there X I Brazil bad certain in that actually happen, that happen, be changes to the to that said necessarily or TIM, regulatory and interested. to I be in a going loss don't were concession before, For X If

in think cash tremendous need and have many huge. Brazil they times, network the I actually only the customers we've strength is of you'd as investment. that's said Brazil thing need is customers, back and holding flows our because the stronger The

we would from think, I benefit, more see the are, they that. stronger the So

I course, coming have in an changes not Brazilian entrant changes be you the for us. happen to event asking based the good consolidation take -- movements if about that's over regulatory And would or occur. particularly have looking and loan well-capitalized other to into to So more that would which the recently that market, going of a new extremely for would she's know be to have you reais. it's There but consolidation China on bad. would which, be the do necessarily intercompany not not. don't Mobile be in Oi, the rumored the Brendan, some

It's subsidiary We of it the in did loan Brazil. from an Brazilian funded Yes. we intercompany a U.S. denominated our one entity. was to that in through dollars. acquisitions It U.S.

as loan when changes so gain loan result there of exists are FX changes on loss quarter, value or And the FX flows that those of through the a that in or rate the our statement. each P&L that

we that of SBA does our funny P&L, for some and the really, down umbrella it but terms within cause in to it's up So ourselves. moves money owe

And Instructions]. from [Operator Cusick JPMorgan. line now the of to Phil

couple A follow-ups. of

representative small what see forward? compare they sounds you though to Do of going you'll FirstNet, do how you've amendment? leases, those a average And think number. it the a are like, few signed

not we say did I said signed we have... I any.

Oh, you some activity. you're said seeing early

No, early we have application activity.

excuse Oh, application me. activity,

Application activity.

sure I'm clear. I was not

the that sites should of new we with pace? level to X,XXX you've buyback And in expect the then a slowdown contracted buy,

Well, maybe in QX.

that within expect we target, to continue so our leverage whatever provides provides. and You should it operate

if been lot a How do few looked think the there's interesting, African those finally, at sort so, And then in times? of you And you they about if Okay. passed Have a going are you or and on tower markets? them? markets. looked

think they right could the interesting be price. I for

would getting capital Africa well, well, kind that And that that a is be solved to within X fit the spent believe issues our strategy. that big are issue. answered, do our issue. the right of last Those can of Africa. there market I think, have growthy financial think, then, companies transaction. of question doing the with course, kind on there the earlier appreciation power issue, of two currency I -- big fit One market, is would issue I biggest the of the and years in I top have concerns, of the think good which, the several the both that, levered be you into job I of would type there

sort start doing scratch? a a of would imagine of from do Canadian you region? sort that it you -- transaction would of to Or a of really starting think type need to sizable I as built-to-suit pretty

financial want in terms. always us. I can approach. Canada would you'd Well, right it do have some with if the was it And to been the to go scale and you that approach some that's if in for size the mean, preferred always available

you. Thank

continue. queue. We more Please in questions have no

to want we and quarter initial together, we're Thank look XXXX forward our I and joining fourth next provide results everyone report thank we you. outlook. time be to which our for us, when we the when time February will some in

our conference Thank service. for AT&T conclude you. does that your Executive and and today. TeleConference gentlemen, Thank for participation using you ladies And for

now may disconnect. You