SBA Communications (SBAC) 26 Feb 182017 Q4 Earnings call transcript

Ladies and gentlemen, thank you very much for standing by, and welcome to the SBA Fourth Quarter Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given to you at that time. [Operator Instructions]. Also, as a reminder, today's conference is being recorded. to Finance, call Mr. like Vice to now of President would turn over the your I Mark DeRussy. ahead. go Please

Good evening and fourth thank you for joining earnings call. quarter us conference XXXX for SBA's

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

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

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

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

services leasing evening. Thanks fourth and as again in Total were the We another quarter. operational strong steady site from another cash site the revenues $XXX.X had leasing ended Mark. contribution our positive million. leasing business, GAAP as our SBA a revenues year well $XXX.X for with Good million, business. quarter performance were

same-tower cash fourth Internationally, was revenue of earnings Clearwire our churn. X.X% of for the including Domestic quarter basis to our Gross than currency on revenue growth was over currency and which a U.S. with was growth same-tower basis. on X.X% was XXXX, XX churn, representing XX.X% year fourth leasing Foreign On of XX% which lighter recurring quarter cash calculated a or of third of of deployment in we leasing quarter Same-tower leasing line leasing fourth X.X%. the up provided new were a was estimates expected and couple little on a last on gross Metro/Leap was basis, basis, operational points gross a basis, for Domestic was net since XX%. same-tower were over during gross churn organic of growth basis, is terminations. X.X% the related growth initiatives exchange with as quarter a in the X% constant including a including activity the impact fourth generally rates quarter which recurring basis the previously X.X% preparing X.X%, a on revenue release. for commenced. of revenue growth have carriers quarter, which big constant signed Brazil cash

of preparations advanced services Our fourth audits in work. business from other benefited the quarter form site the those in and

from that Newly represented revenue total four domestic two-thirds of signed and the one-third leasing during about quarter. XX% up amendments, and carriers leases, added was big revenue new leasing domestic incremental the from came

bodes While activity quarter in backlog particular well domestic our our of throughout some from from growth with the for will results. in good during third to somewhat terms and meaningful markets, the see the growth half our during the leasing very International Brazil We contributions very all saw fourth and sequential Panama XXXX. positive again was strong in activity quarter. increased delivering fourth which quarter saw, impact leasing on modest continues domestic revenue leasing signings XXXX, and application first growth projected of have of

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

million to $XX expect approximately years. next have with two we rate XXst, churn the we Metro/Leap to that recurring of ultimately over from December run three and off annual of leases Clearwire revenue As

have in churn will that Domestic of originally in indication the flow We $XXX all due on due be reduced points. the from was that annual expectations other fourth terminations million. also part these but leases number quarter quarter to less than kept for tenants revised Tower anticipated, upgraded. to due to lease that and was cash an basis basis same-tower for have occurred, churn the some XX fourth actual

quarter. the the flow excluding We fourth the direct expenses. Adjusted our industry-leading to to continue $XXX.X XX.X% in was of quarter tower impact continue tower EBITDA XX.X% the flow cost million. margins. margin associated manage towers, was produce cash margin was allowing cash with to operating XX.X% pass-through International effectively in us Domestic and reimbursable

Our $XX for results the better revenues Adjusted the control due as as was EBITDA results reductions leasing both in legal to SG&A quarter solid and period. XXXX. over it XX% Services the XX.X% in up quarter reserves, percentage than were million, revenue. cost from to quarter and fourth a solid to well was margin of businesses. of the the year earlier the due in fourth expectations our adjusted quarter Cash were to some in EBITDA compared as total services XX.X% other continues and in decline quarter

business was pass-through Approximately adjusted tower the EBITDA million. in expenses, revenues XX% attributable Excluding our was fourth from the margin adjusted XX.X%. the of $XXX.X was our quarter. EBITDA in leasing fourth to AFFO total quarter impact of

an million per passed was AFFO negatively approximately reported to additional exposures Irma, affected law CapEx NOLs. states not any $X.XX. X.X% with non-discretionary by AFFO million tax accumulated foreign expense where of we do December. the during $X.X state Maria, Harvey, associated connection $X have share quarter around to new related E&P hurricanes tax These associated a taxes increased Our in and with in tax in and with

quarter In to we regard financial fourth a had quarter with allocation. addition to also results, successful positive our capital

located XXX fourth in quarter, Brazil. including communication the XXX sites sites million, During for we acquired $XXX.X

XXX an aggregate $XX.X have at sites of additional price sites Subsequent fourth purchase also built the quarter. We XXX million. quarter-end, communication during to we acquired

all million. of in today, of are XXX local under transaction our with almost a Millicom Millicom, we several wireless from as be have markets. The contract dollars, the under for been in will SBAs additional Millicom additional years are Salvador, tower throughout tranches tenant a of of to denominated and as purchased As sites have as El our position leading and in subsidiary U.S. these at our anticipate XXXX. increase a in sites expanding where will price well lease in company these International. second of sites Salvador close contracts also relationship of we country acquisition located in of $XXX.X are an for El eight X,XXX several We contract where carrier aggregate half largest the

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

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

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

invested during significant investments, share we in Beyond also quarter. repurchases the portfolio

fourth shares share. million of price to at $XXX.XX an the per average During we quarter, X.X spent $XXX.X repurchase million

million represented share. share average contributor $XXX.XX of for XXXX Share repurchases an million total efforts were important to repurchases Our shares an per price our X.X grow continually $XXX AFFO remain per to share.

XXXX. includes our press our for Looking initial release ahead full-year outlook earnings now,

should from leasing in in we our in growth and financial and activity the results begin amendment the anticipated AT&T. domestic of throughout domestic leasing XXXX, Combined operational the businesses. expect half build both with reflects the meaningful driven outlook new T-Mobile Our a and over year FirstNet lease contributions with Verizon, leasing We to ramp of incremental show itself largely steady from in by activity of XXXX year. anticipate increase in see signings up activity the the in second form and services related to Sprint, activity which

run in leasing a very positive revenue that expect by rate domestic activity level this will leasing year-end. We increased result

In contributions, steady have a in assumed the churn incremental from contributions the about outlook year-over-year We international anticipates also leasing as over one-third. our by well levels our acquired continued organic as sites of decline domestic expected closed couple contract escalators be from contribution to lower Brazil later a months, by rate. part, and the CPI to those tenant the due under in Brazilian this last in year, in offset business, decline

a forecasted in The a have blended average exchange in Brazilian weakening to is Brazilian of during throughout U.S. Dollar. the with Reais year. XXXX rate X.XX weaken FX to assumed exchange XXXX foreign We rate X rate the slight

all. today contract further not Our repurchases beyond does full-year at does share assume under XXXX any assume acquisitions outlook and it any not those

activity costs year. have interest recently assumed but not of the throughout the the rest incorporated additional any have We our offering, securitization financing priced we of

throughout rate impacting year, We have also our assumed a slightly LIBOR rate the debt. floating increasing

Our non-discretionary expenditures related million NOLs approximately of mid-point our of not and include million with estimated have $X Irma, repairs taxes. estimate to million Harvey, at cash an cash we due and increases hurricanes taxes We associated in capital to the do in any $X Maria. CapEx where our increase $X.X to state mostly international taxes

minor Our passed in new we the tax December. anticipate implications into assumptions with account in legislation tax the take connection

estimated of which of AFFO diluted assumption influenced average share million for per part number is by based is an share future prices. outlook our on in Finally, assumed shares weighted common XXX.X

are We excited optimistic XXXX. about and

carriers I actively time solid Mark, sheet. For our in major and continue investing turn their in that, on position the balance networks, update growth SBA will reporting provide liquidity years, opportunities things all an to creating increasing of the results. over will U.S. With and to are first financial who for four wireless great

our the X.X Brendan. range of debt leverage times, of annualized X of ratio SBA with times. $X.X to high-end net net the to was debt X.X billion at year and EBITDA adjusted our ended Thanks targeted

and $XX expense payable ratio today. at net XXth, EBITDA to our to proceeds notes. XXXX-XC the our and interest of March March issue cash XXXX. a and This XXXX. outstanding interest repayment cash securities with $XXX final at this million The in revenue was $XXX ended On date X% billion million XXXX, per revolver times. October securities our quarter have and forma this rate offering, Tower in from to have is and outstanding used of will expected year bear repay X.X unsecured secured million On through tower payable to facility, senior we monthly. March million average revolving combination October X, fourth of weighted fixed securities. our X.X for are $X anticipated with Our Trust We proceeds we weighted borrowings facility used net credit Pro the under XXXX-XD the corporate the in outstanding and year of interest full transaction average coupon of XXXX, and under credit X.X% repay an under of Tower semi-annually mature as date this years. X.XXX% interest close of our XX, of revolving notes offering coverage is purposes. $XXX Net a X, general maturity to $XX is to be February for a million outstanding our These issued on agreed maturity approximately debt expected rate in offering were adjusted

of company As repurchased replacing XXB-XX purchase earlier, repurchase and/or approved repurchased deadline. million of shares On in time-to-time plan average open $XXX plan Shares Board authorization prior with repurchase program. share through our our under new discretion. XXXX, compliance authorization retired repurchases stock has authorizes privately us during common Brendan February Directors under time management's for no and the in the mentioned This stock to XXth, plan. an negotiated of of stock new $XXX with billion plan million plan $XXX.XX, be the outstanding will our from stock price $X the at million, leaving remaining Rule X.X transactions market of the a per at we

to The at down As XXXX. of will million the year-end over turn today, on company XXst, million, from full call I XXXX, outstanding available XXX.X is that, the With the shares December Jeff. billion in $X XXX are plan. at

everyone. Mark, good and Thanks, evening

our from heard overall good and the and earlier, you a good were we guidance. really had to deliver Throughout As solid expectations year, results quarter, able financial Brendan exceeding we another initial XXXX. our

on well allocation. We shrink growth growth share in continued capital AFFO in on share, fronts portfolio capital our to grow per from many created counts balanced our XXXX also in value levels and invested to return rather through first We wireless our time capital, share or carriers gains U.S., active In the are We're of price. U.S. material current customer the highlight. All in for for well activity positioned cost and in the major operational XXXX is our years. four beyond. above

this multi-year high. domestic Although backlog in has a our to activity early stages driven leasing

which and activity their a on them over current quarter, During the agreement year-and-a-half, master the amendment thousands extending lease while we term to lease signed commits out next the with also fourth Sprint of agreements. existing co-location

have FirstNet AT&T and earnings into addition, incorporating and call, commenced. began states amendment XX activity all In applications FirstNet FirstNet needs. Since amendments last opted formally our submitting

We Internationally, see a this we year. activity the expect as very to move XXXX. good to increase had we also through finish

Our leasing operational was year, best strong Brazil. fourth activity international the the another of in very quarter quarter including

Our estimates great of FX into and activity our about activity XX% line from came confidence during The increased the business quarter from quarter. international into XXXX, leasing our XXXX. rates came amendments, us sequentially newly generally heading in with each heading portion and for leases, this in this XX% international giving quarter

continues flow goals of organization portfolio. XXXX in sites with far have adjusted the our we year. acquired steady X.X% XX% are meet margins, of amount to material our under X% we We shape range XX% a thus to portfolio this to excellent, good lower grew EBITDA the and that XX%. mature our margin sites across growth the tower on XXXX, Our those margins our contract, of be in continued addition portfolio and less new cash we to within XX% notwithstanding to Based target believe, execution during X% again

Vivo; we sites, there. of from over giving in only come us closed These majority addition quarter, and a the sites this XXX Oi, revenues sites fourth the X% the diversification the During revenue portfolio coming on high of quality, nice TIM of in revenue are immature from with Brazil.

well bodes success growth We well existing our inflation these SBA. stabilization plan, the reorganization in and had all traditional lease-up as continue backdrop the of in of to anticipate a new complement Brazil approval perform for formal well The on in the continued decline that which portfolio currency, we've the sites Brazil. provide and will as Oi's in Brazil for

of Heading $XX revenues track XXXX, XXXX, more achieve into within to overall range portfolio. approach continue net closed to we addition capital markets. in And presence XXXX. X.X our continued denominated entered we a Millicom. exactly transaction times with sites other by believe Colombia. adds and El we the a company, mix Peru we XXXX, Brazil, February, and very our expand to share We're in agreement Millicom we to that or expect AFFO additions the In incremental sites U.S. share healthy to into of and an we addition on In our we XXX over of dominant pleased in expands it Salvador repurchases. purchase are several apply target X.X number as January, to to position El to on Salvador of have and our of Throughout particularly to we same. XXX allocation balanced stay as in more the over debt of per goal across with our of asset our tower the dollar one In

by securitization we our have strong capital. of to priced refinancing, success the demonstrated recently to continue access As

spread over representing Our of issuance a at for the rated securitization five-year treasuries since was XX priced points to spread financial single treasuries, crisis basis XXXX. A in any tower lowest

environment, issue in all even in interest a markets favorite which we rate we the debt. So rising in be of continue issuer the to

forward extremely able shrink created our saw value our the and us portfolio, beyond. count, We customers solid margins. leader and give XXXX continued outstanding we for in in steady grow success associated comparably industry. already and growing be our like I to and at tight The industry-leading well. to manage for operating our levels our growth and now employees pleased our costs, we activity to securities. markets operator, additional shareholders. price were routinely activity that, share and of our our I'd tower rated of We the contributions expand optimism business financing With backlogs our we're a The leasing to across for performance executed their XXXX, you continues we to questions. and year. capital with for all and our to In our ready sharing results our access be attractive look are thank great in our have We throughout customers end to of extremely

first line Instructions]. [Operator our from Ric James. you. of go Raymond Prentiss comes Please And ahead. question Thank the with

Hey questions couple of I on guidance could. the if

trying and Jeff the not obviously through in you've guidance you're project, So Brendan, FirstNet just with can expect and seeing customers, us is what just like and gauge trying sign do understand I'm from but you and you year to FirstNet? lease don't into guidance, in I you to and individual call know standpoint that kind mentioned help FirstNet baked FirstNet it's think to a MLA you gauge activity I ramping to AT&T a out so big of that an amendments,

have included some that mentioned some to of executions expecting seen guidance our the report obviously amendments amount in actual because Yes, we're during Ric, already influence we as impact that we've FirstNet we from XXXX.

of applications FirstNet the to have it that have also is the build throughout We majority amendment towards some next into impact influenced of But our see think you'll the expectations. year that part our year. backlog the year, and latter expected and in that I

a with might have I about And lot say. them MLA thinking AT&T, heard it with far of I you the as an think, I like past know done sounded as haven’t Sprint, but about, in one done you Jeff,

with Sprint, one Ric. do did we Yes,

Sprint, done -- previously done with we one T-Mobile. have with We we've one did

we're the not right has certainly whether to not not alone just to would it as I will both religiously for it, what we'll be parties. question. opposed mean deal one or that it's So fundamentally I we leave just of and kind or But out of to happens. the see

kind in Sprint sounds fully maybe done, so like then But MLA that's sense. makes guidance it Sprint of side? that Yes, with

It's certain sign the there is not a of that in but commitment a but to absolute. over there amount extent business, period that are time the the to specifics is of is up of timing

So we've depending be what on how in assumed. that it than different could flows

that commitments. term of quarterly multi-year It's over Yes, of in isn't it's a of really agreement whole the terms granular more agreement. commitments the

So it will really point on depend timing. to Brendan's

Fair.

customers to in active, is could that but is there fair? guidance; upside getting those certainly both some there be So more

Fair.

co-locations, And be AT&T trying look client Okay. of mostly are all what seeing nature with still it so going activity, from a of figure of WCS? the what us far out touch and one are AWS-X mostly amendment FirstNet, and then FirstNet is lot to you kind the like, to FirstNet plus might

Yes.

far us, very equipment a mostly throughout it's needs its equipment because it's range for So wide amendment existing now has a and of range AT&T wide of loads network.

and can't the diverse amendment. it’s radios, board. three much it’s three antennas, really to So our very it's, primarily But radios, I really in it generalize six say, looks across case, antennas, like be going six

last domestic and was they're churn into one of of network mentioned the And from gotten occur, notification the MLAs the that better think acquired you got to kind baked Okay. going I acquired churn maybe me some of network the a you all down not carriers? third from to year-over-year has churn just inter-related, trying think maybe that how or

MLA might was then have And certain we've there on some a previously would within -- away as into we of it. dates renewal which that based being little view as And sites renewal that's was we to number MLAs. of estimates No, we on affected or as up, Clearwire come keeping the they not that. upgraded most wouldn't obviously specifically, little them, it terminated otherwise where and we But degree a some gotten they bit be. to We on on gave a from thought be so sites be bit some notices saw the of to of Clearwire the directly quarter our was and haven't just expected baked which each have renewed and churned that leases that being they go ones would Metro/Leap the off. those saw impact our what as potential were total you we

transparency the all for Thanks guys. details. Thanks and sense. makes It

Sure.

the Please go And ahead. of line you. our with JPMorgan. Cusick comes Thank Phil next from question

Richard is this Hi, for Phil.

kind of the more to activity And higher little we wanted what the expect the the that was of activity and contract the get that -- then number, kind guidance amount of can now? the given on Just a little levels? the earlier of Sprint was, where drive in to length of bit current it could change clarification alluded what MLA, the that I guess MLA a higher how would terms contract, a before you numbers, is potential is given

was, Sprint there Well, previously. with MLA no,

all their on -- every with the Sprint own terms averaged leases I think So were which, --

old years terms I four mean the a did few had extended years. We MLA that there that about we some had was ago --

carryover some Had impact.

term its had end But dates each to own Jeff's yes. one point,

does there our have you multi-year this of we're has this new supposed apply this on not time terms agreement with period to Sprint. do we applies a of commitments certain But over not substantial also to it commitments apply So X.X granularity total and co-lo that extended give a are all the leases, we our for going Sprint and to not Sprint to per leases agreed to that and does to. we're amendment because have

they there certain of agree obligated end because will have be amount of can the there to when that that, dead on be the will drop that know agreement a that So the obligation. that all be accelerated it will themselves they but the by business is agreement, by the of by the do date end and we actually to

kind of organic and continues how ramp non-acquired is think And churn nor actual so we growth X.X%, kind to like XQ three terms -- should then about that the we there's how in coming given it? about churn of in X.X% pieces, should the activity the through ramps down of terms year versus XXXX, how in down think ex-churn of

is really in fourth of on the you're fourth refresher a as representative XXXX. this number a XX-months case comparing activity just quarter to because -- of quarter trailing it first Yes, the that it it the is

in between happened it. that their impacts everything So

first And a backlog these based XXXX what more of number that we kind part that we talked move the expectations, so start terms But of to by see the during the into that to quarters. increase based is so year, the on of few the end as influence expect occurred first also we would of carried year with about, get our the will the of we end place, the lot by year see time taking on be gross lease-up of in number. number building leasing the to towards expect of that the higher we

On continue we that do the piece, churn expect to to step-down.

have primarily amount but in X% the same iDern quarter, fourth churn We may that expect impact churn the off to quarter fourth otherwise to year churn. on do of tower drop consolidation in small of a numbers, the a next our due related be we below

left? of a with still chunk that But

left. Yes, still some

Thank comes you. Nick Please go question And Deo the of with next our ahead. line MoffettNathanson. Del from

Hey thanks for taking my question.

would or walk historically peers of than can't protections your a I to of kind you'd cautious So Sprint palatable make where you sort want some to on been be be to something regarding us thinking it generally willing I a have current through would make speaking, this and just more of are? front guess proposed included to what MLA sign, you've more can you your obviously to and understand, price you adds deal, carrier what of talk the the specifics from unacceptable because

agreements to we all single the mean have willing the or least of that Nick, most I are enter into the point have is puts one Yes, shared there a at equipment takes, that different specificity. but and lot

Okay.

-- assume to safe So

It's constant entitlements into. the all all laid the in three SBA has the clearly out -- entered equipment that's are master the all one very leases now that

long-term been been escalators on what well topic but X% of contracts escalator to could because levels, Maybe levels Okay, du a kind subdued inflation it's worked got inflation where was set. with fixed or at it. rose when contemplated above of jour, the inflation that's issues and was some it's with standard one introduce

of So if to can do today? see some we you or meaningfully some higher it stands the employ help where of about offset talk inflation strategies issues, than could tools those you

of Well, Obviously better the going improved of if the a we meaningfully to would believe inflation think greatly any pricing to spending, type consumer. on into translate any we're that's I organic on economy will growth reason new And majority type be of see, have we higher, amendment. help the which us side. vast improved ability all on asset going likely

benefits the this have way we the one of limited Sprint we for application. business was now. do agreements in But is don't any place in One its with which of somewhat

do dictated we cart launch activity. is have limited where the renewal ability continue to kind we do new So the types escalator place. on the Where price of of be would to agreements are by existing in

we our all side expense turn on manage financing and the the potentially I things attentions to managing more So on -- that. towards But side with dealing

escalators, that's ground obviously of are also tied And just fixed limited our expense our maybe one thing majority The and large there's base. expense leases to add is that that to margins given our base a fixed. our is largely expenses

So operating at able won't increase to we're not increase time we our similar base rate. see an when expenses in of at kind revenue a our a

New Street Research. from Please And next you. Kurn the Spencer question with ahead. go of Thank line our comes

the for Hey Thanks question. guys. taking

ramping year leasing from like So XXXX in $XX things to in half increasing. the for that, look back a first then the it that year, and revenue the you slow thinking leasing sharply half, bit which your looks million your the just the the picking new new the understand slope is just activity, during would envision comments you guidance revenue decline we guiding modestly to little in of steadily is case could about or XXXX? see you're of expect up reported it actually I $XX of just in up about million sort be

activity Yes, the not be reality throughout increasing we to steadily expecting year. and backlogs also leasing think to increase. volatile see is not drops. we continue we expect it's it that like I increase material levels would as And the our our so the expect We're revenue see would to

half think of modest first to XXXX of the the based year the be on starting the So relatively second the flat here activity of back half year. will in in part then increase it I and in

said let's be drops. you any we're I Yes, not material mean expecting clear

No.

We're Spencer. not expecting any drops in revenue,

mid-point just per Got guidance about three then you've do after real at got Thanks. smoother. expecting next the trajectory that growth XXXX a the more a share that like for is case to year your next per $XX be of it. is assets per may, that to AFFO grow from the your can such and share that should looks sort X.X% at capital, the two year of you'll XX% XXXX; we And assume, buy if in about of the you'll in one years target by then meet or XXXX XXXX, that; a repurchase shares you're I you to years for for forecasting or is share the trajectory it lot likely AFFO throughout is

clear We that component are that need numbers capital have, you share always, X.X our at I to per And look clear this fully through we times. invested to our of more stay intend X $XX if And that I of path guidance, $XX think very AFFO we've to also, more and run you'll invest stock or been very leverage to per ranges repurchases more to see to of very large that. additional share. we AFFO of you getting those or out, think that been to do target

So we allocation capital expenses. do more some intend

go the Brett you. our of next And from Sachs. Goldman question with Feldman line ahead. Thank comes Please

morning, Brett. Good

else mix is in but in point look it just your just for in or all to the this question does that and long we going year like last Sprint also revenue higher hopefully a projected MLA the straight from was on that increase we've a Sprint time have seen quarter than clarification understand. of to Thanks. of Sprint revenues And is MLA is need you this something an related line

Yes, Sprint that's to related all the MLA.

those whatever the operators exclusivity in we've a is small capturing look site is site and maybe and opportunities solutions look you you infrastructure who similar have of actually actually as covered really or you otherwise to you wireless deals to it, that philosophy then more bit maybe going do maybe put consume And at are I way, that are the towers just very past and it majority the still you more bigger small is cell Okay. versus the stepping of in for, comfortable you starting some a business where of tower the question, traditional capital vast always we leasing infrastructure? picture exclusivity other evolving, look back incremental question framed more cells some they're a and to spaces I'm curious other your get way that into is see on you internationally may think seen you infrastructure domestically

But we and real exclusive are you. with the business the clearly ones for nature will have think actually cell that small at and that opportunities those pursuing are that there the are will I are oriented estate looking Brett. vast majority, definitely in be and are macro consume that worth looking

with massive conversations your beginning those from all clear are? projects carriers has anything where there Is these that it opportunities more about to ramp maybe that they're made

for suitable specific things The competitive not that looking and more bid. more very and asset for one-off really we're be to tend

created. an think asset, it's exclusive nature I don't by that's have how you

mean So asset. very we of assets there's very have I a it's exclusive there we not play about of are going but it's do really lot exactly them because going of out variety whole we haven't good. we a doing that some come to and business here a some material vast into few, it, that think be different And all, at are to actually, talked where are a

Thank Great. for you questions. taking the

Please ahead. our Rozwadowski comes And of from Amir line go next the you. Barclays. Thank question with

of behavior, folks. full commentary what but tower good those using be Verizon historically their looking you when or using sites? have sites providers other some to helpful. details, all recently question Have side, come comes comes couple or sites sort upgrade Sprint And have about the their -- the seen more on for can't guys has out in then public carriers been color another that and there structure change certain changes you on appreciate very that if of the escalator any that provide about to AT&T to any of may, about. the -- A much to they potentially necessarily building very the when lines questions it like I alternative it would and either sites of Thanks any thinking seen you infrastructure afternoon I talked

assumptions. on that we there, our alternative time shrinking think always think will for I subsumed Amir. quest other, material within changes occasional will but and way escalator, business. that or lower ever No will may the in prove our different here it be do on ever be I options, the over find our, I And real the churn don't change really impact no in believe think their be what customers any never-ending material, cheaper to it anything

I if making. should helpful. the does your I share the M&A things like, towards we about thinking sound last should appropriate very about if the we leaning versus really strategy, then one, allocation that your think may, sort that goal AFFO, we of be assumption more for way That's is it long-term capital and buyback one And be mean, is

necessarily. our you we've very in you really opportunity towards M&A. greatest was for we that share done Not of the months saw M&A. capital can in earnings, share in creation. since The or It's time the There opportunistic what at so last really look four, we've saw mean long-term period where last see six if that I heavy time in seen where over bias just a where of we last value that repurchases, see allocation we a repurchases.

intend we could capital can right one-way But that share and we today interest well towards absent do X So are or intend some continue bias in I stay or for use to do other repurchases leveraged X.X beyond, M&A you huge and investment there. that give to times M&A levered stay is we the I really where can't we you beyond tell We the have range rates. jump what find opportunities. where the either to in the to

Thank for you the incremental very much color.

question Thank from Batya UBS. our Levi go you. of ahead. the with line comes Please And next

Great, thank you.

couple Just follow-ups. of

portfolios the existing and slightly assets? there how anything Thank does up compared like is the from you of portfolios, looked finally churn internationally in acquire of First, you. in to on guide point? activity level And any it picked the your DISH international, domestically change opportunities any see churn? And valuation this tenancy looking at recent competitors assume these acquisitions there at to do point activity from again to of terms maybe do other out

DISH America, guidance, about itself. nothing First this there repeat DISH was related primarily in related customer going one in there's specific at is one Latin to to to was not that point. question in situation unique The international churn

Small, customer. small

this competitive pretty to M&A actually to not out it could defer and but The opportunistic think start market we very there and We're the worked I But continues our high we allocation be going out very and that, change, that's at of name to and customer around stop tower to get don't capital is it opportunities point. will We look and Small is competitive. and because we at out ferreting competitive. them are it desirability assets. there. quality do good given continue good to we're

you Now had I one I and think more question --

right different have LatAm No, now? terms -- the recent any the is if in what international of just you if portfolio than acquisitions, in that

high good the Well and revenues quality highline low TIM in skewed Brazil Vivo, towers. maturity, deal towards

that was we price which little the different did where attractions Brazil, the concentration a is arrived diversification we at that just deal bit in towers, structured really us there. which immature leading little gives transaction somewhat we very from Oi nice different Then of a a had a a So Millicom one our again, was characteristics of tower market. pay. per arrived and based quality Millicom know very market leading the that we But market. attractive is on at thought Millicom, that rent that We in in that leading given already well was towers, price would the very because what provider that we high market company were we tower the we agreed

good it three locations be players to the co-locate. good in market that very getting other we're know and for should opportunities we So

every turn a different has and deals of So those little into bit and that of the a all play has analysis to one and making. twist decision

the And though expand focus look outside or in of mainly is you region? that to Okay. Americas would

we but will western and value continue to opportunity continues be primarily good itself. There and a hemisphere where other good look it in areas -- we see we presents be focused will to creation company

with Barden of Please Thank line America. ahead. you. the And next from David of comes our Bank question go

Hey LIBOR. that guys, assumptions making assumption on much. thanks going taxes, international happen higher to also you're think so the Brendan, of you what's I mentioned kind and then, on to

kind but up more that think we well, stock about super had obviously the price was buybacks what the baking talking Thanks. wondering harder script transactions margin? the underlying makes think you the Could And Services something capital I Telecom of two could outlook grinding think kind AFFO that give us little on to helpful. into you does in to more in use about the I of there's M&A effect stock growth. something relative if in you're that following growth the I attractive relative a again, much the that Brendan, think are a just you of so I mathematical at be the buybacks, then, higher equation has just done bit there, in because to those were of kind things numerically on improved the earlier, color make

Yes.

tax $XX.X walk each our up of get for the -- at in the internationally the just $XX if look million press back of release range the more that's as items, specific that's it you for income. $X in it's down to million the we kind generate million, that's So million. $X because $XX.X on guidance million assumption, mentioned it's actually a at and we of international so shows to total really mid-point, I we taxes and bigger taxable specifically of

the moves of reason part that up. that that's So

move XX year. so assuming LIBOR, point more we early evenly in it's little LIBOR about part throughout but dramatically the it's On the of in a year, the XX somewhat modest, moved are increase than somewhat basis an to the up assumptions, that throughout it's

assumption. holds possible. more return get then here trying question other assumption that allocate certainly as best whether what and the to we're is stock see M&A we'll And how best the the buybacks So the I we're not but as expensive, your doing to becomes or mean is to stock making decisions was the really that and capital versus

mix more expect last But that at if the as us, seen front of opportunities us of both look before was the on the do of years, forward. the be would and as stock pretty return to I that if of buybacks you I options a think it the great at in you've going all M&A. M&A mean relative may case good looking us couple we're before So to isn't our

between then, would I to just the repurchases you really that for it was and that choice M&A have add and hit the that, you deal, requirement, to only stock any after investment had minimum Dave, that M&A.

So price potentially bias allows that qualify. a opportunities once that otherwise towards stock for hit minimum those greater you M&A the increased certainly

just appreciate variable it. want you're environment quick Thanks what margin; do on swap rate the a the re-fi? you that exposure in the the of rate looking market anything Jeff. Brendan, kind through just is to I could one I that debt makes at to a that, general fix happening or follow-up the for even at there about

to do the time I we'll and things, Yes, think I always. can do mean just to we're are something all and those evaluating we it's stay but that costs posted, minimize opportunities what there some we'll

Please ahead. Rollins. question comes line our next of from go you. the Thank And Michael

opportunities, if could guide might review for you the next could growth can just are over acquisitions leasing in be number? years? could. few peak you you And what Sprint, that's not the at look thanks, two acquisition One, in XXXX contribution the then, which talk you look what site pending if revenue secondly, I about us and for Hi like mentioned that FirstNet,

question we've so assumptions some certain course Colombia when there everything then, but that we had the that's to deal in make timing On we we've that around in. to-date might Peru everything mentioned because that and in, is was variability those And are obviously of close. included, to under contract, that M&A is closed also deal, of those the highline the clearly

deal that, where have But our in that included have but half could contract timing and anything of made not, on the or the the that's Salvador in El would in certain second XXXX. closing throughout under the So why earlier which impact tranches is on some the nothing in Millicom we discretionary shift that later is, and around up of slight our that's there's that case is of it is guidance, signed we've included. CapEx not assumptions item and biggest

second peak would your in guidance. materially your higher of reduced would than and what I potential question, in currently to say way number, a be but we expecting XXXX, what way, is are kind our really certainly that Mike, way, haven't On quantifiable than we higher

of maybe the where question exit that rate in talked you quarter for of a organic loading leasing site And of talked about the in get you on fourth fourth just about the you to fourth past, your leasing expect based and to like quarter might quarter growth some comment the for can backend annual the that your you what guidance level set company. look to

higher we full-year, assume rate will to we the we Yes, the for I'd specific rather I throughout it year, to average not expect average sequentially. number the expect growth would it than but on because grow that that say be give do a

we the leaving the we've year a rate be than expect that here to implied for average the would higher So definitely full-year. with

of the comes go Partners. And Thank you. question next Gutman Please from our Guggenheim line ahead. with Robert

for taking question. thanks Yes, my

LTE been organic the of like gate activity growth slowed with assumption driving domestic it other stuff gross organic, churn in overlays, I out and rate, how it FirstNet. looks capacity your be is was significant or just XXXX? As activity year-over-year, remained from has Sprint of catch I wondering And upgrade, is, non-consolidation some the said year-over-year other flat didn't that improvement the -- a displaced it had you the I pretty AWS-X And it the there. churn in down in churn stuff on that seems versus to consolidation much basis, on because seems of at right -- look and as includes the that would prior constant

but people be, leasing difference well part part where things, it of people understand carefully and then the is Yes, sign we're hits financial is six operating which between of typically to issue I that statements sure the here the activity when trying think up make the to -- months later.

in the things contributing that's the that and included second half are until the we've of not to what's number. and So now going it's to statements be happening some while XXXX financial

what slower period. couple good fourth were but have things combine the not going that and because for when impact this time getting to financial a of talking now was see even you're does about ready get impact So in now a really activity that. of XXXX better, we operationally financial think begin these are with quarter, the to to you really That that we're carriers that an going

the stuff -- that together time. put this the really guidance that's at all and So that we've has produced is forward combine that what you

to further? want You

basically Metro/Leap half the is Yes, XXXX, that with churn associated of consolidation. and in Clearwire

that assumption from for those about X% full-year it's of So of X% is over full-year about guys. the

Thank you.

Deutsche with go Our next the Bank. ahead. Please of comes from question Matthew line Niknam

me Thank guys. getting for in. Hey you

just peers activity and it XXXX? Just to some I that may on is was surfaced markets the you that that some guess be actually in year-to-date in one markets of the markets revenue relative One, in two not sort of of this or dynamics of fiber is assume may want of several the driving just there clear could. different just fair of mentioned have early your up LatAm I you consider of two activity, this on in the on U.S. first fiber is sort international something Thanks. your lighter if of all macro quick is shown the has in these some to the supply complementing maybe months some to the earlier And in slower growth then, a carrier during and the business ones year given of some domestic I investing XQ, the secondly or and some Brett's of one maybe follow-up from question,

watching latter any to we're United return to if in Yes, Brendan? on see or be open-minded markets we're believe the that in the certainly better those those that market opportunities the on we've capital conclusions opposed invested we can question, and there States. reached as

in the was quarter. mentioned, fourth as lower first a the on Jeff Yes, little activity, question, the bit

year. this as come into seen have we've increase it We

our coming we're but first signings of through delayed. of up, agreements new picked has that, the financials influence describing in be definitely which activity few the the actual as So the will course months of and timing applications

first revenue slower is terms of executions there. into signings, quarter. that the we impacted the that definitely bit by feel in think I So again is what's get in see fourth based be on of of or impacted little half as recognition to we will expected the happening now terms a year latter positive good in the But some the quarter uptick

broader carrier just phenomenon on And could this just was the Brendan if I just one the quarter that or across industry. follow-up specific a is

we couple. comments, a our was said No, it in

Yes.

And comes and with Company. question Colby you. next Thank from line ahead. Please the Cowen go our Synesael of

Hi, you. great thank

already excess then me secondly sense buyback. math, you XXXX, either or year, kind of positive, break could regarding what's is left Oi was more noting might wondering, at additional look which further as relates happen how potential press could you've capital done of just up Just frame you hoping be release I better you of on help the haven't done in I When M&A in the that that thought it down for what's this of this any what M&A clarity? the there you. you over for just as that little Thank result for And or a to kind you bit about if called of could going could committed a terms you out. getting out

to Oi out which number needs this a set things on has have the certain and far plan. a that plan outside still so people there terms that approval and But in Oi working that a happen everything of the are certain and probably out equity tremendous direction. Well success there's commence, to certainly out now kind require to for convert to to come of totally holders to of step it the certain and have bond needs and and is a certain of right amount there's gotten resume is operations a actionable

why is much how is times going mean how of remaining back get kind that's can you help left. left because back the figure I much that out -- to of triangulate into where, In we capacity we going to back EBITDA X don't X.X to -- to investment offline on terms

Thank you.

time Operator, for we more question. have one

ahead. And question Amy from of final comes Yong line go with our the Macquarie. Please

change spectrum me the at squeezing Thank on talk does deployed guess or you could actual all for through kind the brands getting structure? the X.X, of talk in. you XXX we're you if what of how And that's equipment point XXX the different and pricing for that I Thanks. Thanks. broadly can at

have innings an early antennas we're for going in the that our there's larger fair amount relatively occur radios is we to Well, different, instance and generally because opportunities. require of a amendment is to going is where revenue still way clearing new the XXX, structure to in that every always at still the the so least we contracts additional has equipment

early they clearance for done that the of of -- T-Mobile an had I obviously on over every many we opportunity dictate how it. antennas, they're us final but to fair of to are They're be going to in progress going great working early have lot innings. still revenue to It hard. towers them rest hit and execute but in to amount our is opportunity, extremely has well, lot they're how stuff there's where the a many the a case extremely that's working, depending of on. all get pricing, for be a They to a radios side made I was the on and Now it do get this, are believe credit. plan. They're Amy, a

Got it. Thank you.

tell like forward us and Thank joining we look all for I'd next and our thanks for you. And, to us to call. Operator, that's everybody

X:XX Ladies March p.m. will and midnight. today this you. for gentlemen XXth Thank starting replay will conference until run call available at at and be

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now may You disconnect.