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SBA Communications Corporation Reports 4th Quarter 2013 Results; Provides 1st Quarter and Updated Full Year 2014 Outlook

SBA Communications Corporation Reports 4th Quarter 2013 Results; Provides 1st
Quarter and Updated Full Year 2014 Outlook

BOCA RATON, Fla., Feb. 25, 2014 (GLOBE NEWSWIRE) -- SBA Communications
Corporation (Nasdaq:SBAC) ("SBA" or the "Company") today reported results for
the quarter ended December 31, 2013. Highlights of the results include:

Fourth quarter over year earlier period:

  *Site leasing revenue growth of 12%
  *Tower Cash Flow growth of 16%
  *Net loss decreased from $53 million to $19 million
  *Adjusted EBITDA growth of 18%
  *AFFO Per Share growth of 22%

"We ended 2013 with a strong fourth quarter," commented Jeffrey A. Stoops,
President and CEO. "Our U.S. business was very busy, with our wireless
customers continuing the strong pace of equipment installation that we have
experienced all through the year. That strong pace has continued into 2014. We
grew our international business materially in the fourth quarter, primarily in
Brazil, where we closed one large acquisition with Oi and agreed to another
large acquisition which is scheduled to close March 31. With that transaction
and others, we expect to grow our site portfolio by over 10% in 2014. With
continued expected strength in organic growth and material portfolio growth,
we are able to increase key elements of our 2014 Outlook. We are expecting
another strong year for SBA in 2014."

Operating Results

Total revenues in the fourth quarter of 2013 were $335.4 million compared to
$293.8 million in the year earlier period, an increase of 14.0%. Site leasing
revenue of $292.5 million (including $9.8 million of pass through reimbursable
expenses) was up 12.1% over the year earlier period. Site leasing Segment
Operating Profit of $225.7 million increased 13.6% over the year earlier
period. Site leasing contributed 96.1% of the Company's total Segment
Operating Profit in the fourth quarter of 2013. Site development revenues were
$42.9 million in the fourth quarter of 2013 compared to $33.1 million in the
year earlier period, a 29.6% increase. Site development Segment Operating
Profit Margin was 21.4% in the fourth quarter of 2013 compared to 17.6% in the
year earlier period.

Tower Cash Flow for the fourth quarter of 2013 was $217.6 million, a 16.4%
increase over the year earlier period. Tower Cash Flow Margin for the fourth
quarter of 2013 was 78.3% compared to 77.7% in the year earlier period.

Net loss for the fourth quarter of 2013 was $19.2 million or $0.15 per share
compared to a $52.6 million loss or $0.42 per share in the year earlier
period.

Adjusted EBITDA in the fourth quarter of 2013 was $209.4 million compared to
$177.0 million in the year earlier period, an increase of 18.3%. Adjusted
EBITDA Margin was 65.3% in the fourth quarter of 2013 compared to 64.7% in the
year earlier period.

Net Cash Interest Expense was $63.3 million in the fourth quarter of 2013
compared to $58.8 million in the year earlier period.

AFFO increased 23.1% to $139.1 million in the fourth quarter of 2013 compared
to $112.9 million in the year earlier period. AFFO per share increased 21.6%
to $1.07 in the fourth quarter of 2013 compared to $0.88 in the year earlier
period.

Investing Activities

During the fourth quarter of 2013, SBA purchased 2,138 communication sites for
$321.1 million in cash. SBA also built 119 communication sites during the
fourth quarter of 2013. As of December 31, 2013, SBA owned or operated 20,079
communication sites. In addition, the Company spent $15.0 million to purchase
land and easements and to extend lease terms with respect to land underlying
its communication sites. Total cash capital expenditures for the fourth
quarter of 2013 were $403.9 million, consisting of $5.7 million of
non-discretionary cash capital expenditures (tower maintenance and general
corporate) and $398.2 million of discretionary cash capital expenditures (new
tower builds, tower augmentations, communication site acquisitions and related
earn-outs, purchasing land and easements, and capital expenditures associated
with the purchase of a new headquarters building).

Subsequent to the fourth quarter of 2013, the Company acquired 154
communication sites and related assets and liabilities for an aggregate
consideration of $230.1 million in cash. Including the Oi transaction which is
anticipated to close on March 31, 2014, the Company has agreed to purchase
2,059 communication sites for an aggregate amount of $683.8 million. The
Company anticipates that these acquisitions will be consummated by the end of
the third quarter of 2014.

Financing Activities and Liquidity

SBA ended the fourth quarter with $5.9 billion of total debt, $174.9 million
of cash and cash equivalents, short-term restricted cash, and short-term
investments, and $5.7 billion of Net Debt (as defined below). SBA's Net Debt
and Net Secured Debt to Annualized Adjusted EBITDA Leverage Ratios were 6.8x
and 4.4x, respectively.

On February 7, 2014, the Company, through its wholly owned subsidiary, SBA
Senior Finance II LLC, obtained a new delayed draw $1.5 billion, seven-year,
senior secured Term Loan B (the "2014 Term Loan B") under its existing Senior
Credit Agreement. The 2014 Term Loan B was issued at 99.75% of par value and
will mature in March 2021. It accrues interest, at the Company's election, at
either the Base Rate plus 1.50% per annum (with a Base Rate floor of 1.75%) or
the Eurodollar Rate plus 2.50% per annum (with a Eurodollar Rate floor of
0.75%). The first funding of $750 million occurred February 7, 2014, and the
second funding is expected to occur in March 2014. Principal of the 2014 Term
Loan B is to be repaid in equal quarterly installments in March, June,
September, and December (commencing in June 2014) in an aggregate amount equal
to $3.8 million per quarter with the remaining balance payable upon maturity
in March 2021.

Net proceeds from the 2014 Term Loan B were used to (1) repay in full the
remaining $180.5 million balance of the 2011 Term Loan B, (2) repay in full
the remaining $110.0 million balance of the 2012-2 Term Loan B, and (3) to
repay the $390.0 million outstanding balance under the Company's Revolving
Credit Facility. The remaining net proceeds will be used (1) to pay the cash
consideration in connection with SBA's previously announced acquisition of
2,007 communication sites from Oi S.A. in Brazil and (2) for general corporate
purposes.

As of the date of this press release, the Company had no amounts outstanding
under the Revolving Credit Facility, and the amount available under the
facility was $770.0 million, subject to compliance with specified financial
ratios and the satisfaction of other customary conditions to borrowing.

During the fourth quarter, the Company settled its remaining obligations for
the warrants sold in connection with the 1.875% Notes for $55.5 million in
cash and 192,516 shares of its Class A Common Stock.

During the fourth quarter, SBA did not repurchase any shares of its Class A
common stock. The Company currently has $150.0 million of repurchase
authorization remaining under its existing $300.0 million stock repurchase
program.

Outlook

The Company is providing its first quarter 2014 Outlook and updating its Full
Year 2014 Outlook for anticipated results. The Outlook provided is based on a
number of assumptions that the Company believes are reasonable at the time of
this press release. Information regarding potential risks that could cause the
actual results to differ from these forward-looking statements is set forth
below and in the Company's filings with the Securities and Exchange
Commission.

The Company's Full Year 2014 Outlook assumes approximately $44.0 million of
non-cash straight-line leasing revenue. The 2014 Outlook for site leasing
revenue, Tower Cash Flow, Adjusted EBITDA and AFFO includes an assumed
negative impact of $16.2 million associated with iDEN lease terminations,
which from a timing perspective have been assumed to occur on the basis least
favorable to SBA per previously negotiated contractual rights. The 2014
Outlook assumes the acquisitions of only those communication sites under
contract at the time of this press release. The Company intends to spend
additional capital in 2014 on acquiring revenue producing assets not yet
identified or under contract, the impact of which is not reflected in the 2014
guidance. The Company's Full Year 2014 Outlook includes new tower builds in
the U.S. and internationally of 400 to 420 communication sites. The Full Year
2014 Outlook includes the impact of the 2014 Term Loan B and also contemplates
approximately $1.3 billion of new financing during 2014 at an estimated annual
interest rate of 4.0% with proceeds being used to (i) call the Company's 8.25%
Senior Notes in August 2014, and (ii) settle for cash all of the obligations
under the Company's 4.0% Convertible Senior Notes due October 1, 2014 and the
related warrants upon maturity. Finally, the Company's Outlook also assumes an
average foreign currency exchange rate of 2.40 Brazilian Reais to 1.0 U.S.
Dollar for the first quarter of 2014 and Full Year 2014.

                        Quarter ending           Full
                        March31, 2014           Year 2014
                        ($'s in millions)
Site leasing revenue     $300.5    to  $305.5  $1,281.0  to  $1,301.0
^(1)
Site development         $27.0     to  $32.0   $120.0    to  $140.0
revenue
Total revenues          $327.5    to  $337.5  $1,401.0  to  $1,441.0
Tower Cash Flow         $226.5    to  $231.5  $962.0    to  $982.0
Adjusted EBITDA         $212.5    to  $217.5  $909.0    to  $929.0
Net cash interest        $65.0     to  $67.0   $279.0    to  $289.0
expense ^(2)
Non-discretionary cash
capital expenditures     $5.0      to  $6.0    $20.0     to  $25.0
^(3)
AFFO                    $138.0    to  $146.0  $589.0    to  $625.0
Discretionary cash
capital expenditures     $940.0    to  $960.0  $1,120.0  to  $1,150.0
^(4)
                                                             
(1) The Company's Outlook for site leasing revenue reflects $10.0 and $40.0
million of pass through reimbursable expenses, at the midpoint, for the
quarter ending March 31, 2014 and full year 2014 Outlook, respectively.
(2) Net cash interest expense is defined as interest expense less interest
income. Net cash interest expense does not include amortization of deferred
financing fees or non-cash interest expense.
(3) Consists of tower maintenance and general corporate capital expenditures.
(4) Consists of new tower builds, tower augmentations, communication site
acquisitions and related earn-outs, ground lease purchases, and capital
expenditures associated with the purchase of a new corporate headquarters
building. Excludes expenditures for revenue producing assets not under
contract at the date of this press release.

Conference Call Information

SBA Communications Corporation will host a conference call on Wednesday,
February 26, 2014 at 10:00 AM (Eastern) to discuss the quarterly results. The
call may be accessed as follows:

When:                Wednesday, February 26, 2014 at 10:00 AM (Eastern)
Dial-in number:       (800) 398-9386
Conference call name: SBA Fourth Quarter Results
Replay:               February 26, 2014 at 12:30 PM through March 12, 2014 at
                      11:59 PM (Eastern)
Number:              USA (800) 475-6701, International (320) 365-3844
Access Code:          317301
Internet access:     www.sbasite.com

Information Concerning Forward-Looking Statements

This press release includes forward-looking statements, including statements
regarding the Company's expectations or beliefs regarding (i) continued
strength in the leasing and services segments for 2014, (ii) portfolio and
organic growth for 2014, both domestically and internationally, (iii) the
Company's financial and operational guidance for the first quarter of 2014 and
full year 2014 and the ability to improve upon its full year 2014 Outlook,
(iv) timing for closing for currently pending acquisitions, including the Oi
transaction, (v) spending additional capital in 2014 on acquiring revenue
producing assets not yet identified or under contract, (vi) customer activity
levels during 2014, (vii) Brazil's foreign exchange rates, (viii) the impact
associated with iDEN lease terminations, and (ix) the amount and terms of any
future financing and that such financing will be sufficient for its
anticipated uses.These forward-looking statements may be affected by the
risks and uncertainties in the Company's business. This information is
qualified in its entirety by cautionary statements and risk factor disclosures
contained in the Company's Securities and Exchange Commission filings,
including the Company's annual report on Form 10-K filed with the Commission
on February 27, 2013.

The Company wishes to caution readers that certain important factors may have
affected and could in the future affect the Company's actual results and could
cause the Company's actual results for subsequent periods to differ materially
from those expressed in any forward-looking statement made by or on behalf of
the Company. With respect to the Company's expectations regarding all of these
statements, including its financial and operational guidance, such risk
factors include, but are not limited to: (1) the ability and willingness of
wireless service providers to maintain or increase their capital expenditures;
(2) the Company's ability to effectively integrate acquired communication
sites into its business and to achieve the financial results projected in its
valuation models for the acquired communication sites; (3) the Company's
ability to refinance its 8.25% Senior Notes and its 4.0% Notes on expected
terms; (4) the Company's ability to secure and retain as many site leasing
tenants as planned at anticipated lease rates; (5) the impact of continued
consolidation among wireless service providers on the Company's leasing
revenue; (6) the Company's ability to successfully manage the risks associated
with international operations, including risks associated with foreign
currency exchange rates; (7) the Company's ability to secure and deliver
anticipated services business at contemplated margins; (8) the Company's
ability to maintain expenses and cash capital expenditures at appropriate
levels for its business; (9) the Company's ability to acquire land underneath
communication sites on terms that are accretive; (10) the Company's ability to
realize economies of scale from its communication sites portfolio; (11) the
Company's ability to comply with covenants and the terms of its credit
instruments; (12) the economic climate for the wireless communications
industry in general and the wireless communications infrastructure providers
in particular; (13) the continued dependence on communications sites and
outsourced site development services by the wireless carriers; and (14) the
Company's ability to protect its rights to land under its communication sites.
With respect to the Company's plan for new builds, these factors also include
zoning and regulatory approvals, weather, availability of labor and supplies
and other factors beyond the Company's control that could affect the Company's
ability to build 400 to 420 communication sites in 2014. With respect to its
expectations regarding the ability to close pending communication site
acquisitions, these factors also include satisfactorily completing due
diligence, the ability to receive required regulatory approval, the ability
and willingness of each party to fulfill their respective closing conditions
and their contractual obligations and the availability of cash on hand or
borrowing capacity under the Revolving Credit Facility to fund the
consideration.

This press release contains non-GAAP financial measures. Reconciliation of
each of these non-GAAP financial measures and the other Regulation G
information is presented below under "Non-GAAP Financial Measures."

This press release will be available on our website at www.sbasite.com.

About SBA Communications Corporation

SBA Communications Corporation is a first choice provider and leading owner
and operator of wireless communications infrastructure in North, Central, and
South America. By "Building Better Wireless," SBA generates revenue from two
primary businesses – site leasing and site development services. The primary
focus of the Company is the leasing of antenna space on its multi-tenant
communication sites to a variety of wireless service providers under long-term
lease contracts. For more information please visit: www.sbasite.com.

CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
                                                             
                                                             
                        For the three months      For the fiscal year
                        ended December 31,        ended December 31,
                        2013         2012         2013          2012
                        (unaudited)  (unaudited)  (unaudited)   
Revenues:                                                     
Site leasing             $292,525   $260,762   $1,133,013  $846,094
Site development         42,871       33,079       171,853       107,990
Total revenues           335,396      293,841      1,304,866     954,084
                                                             
Operating expenses:                                           
Cost of revenues
(exclusive of
depreciation, accretion,                                      
and amortization shown
below):
Cost of site leasing     66,844       62,164       270,772       188,951
Cost of site development 33,693       27,263       137,481       90,556
Selling, general, and    21,710       19,625       85,476        72,148
administrative ^(1)
Acquisition              7,821        18,558       19,198        40,433
relatedexpenses
Asset impairment and     12,555       3,828        28,960        6,383
decommission costs
Depreciation, accretion, 133,328      131,357      533,334       408,467
and amortization
Total operating expenses 275,951      262,795      1,075,221     806,938
                                                             
Operating income         59,445       31,046       229,645       147,146
                                                             
Other income (expense):                                       
Interest income          182          709          1,794         1,128
Interest expense         (63,482)     (59,513)     (249,051)     (196,241)
Non-cash interest        (9,934)      (17,829)     (49,085)      (70,110)
expense
Amortization of deferred (4,053)      (3,576)      (15,560)      (12,870)
financing fees
Loss from extinguishment (336)        (2,007)      (6,099)       (51,799)
of debt, net
Other income (expense)   (3,736)      422          31,138        5,654
Total other expense      (81,359)     (81,794)     (286,863)     (324,238)
                                                             
Loss before provision    (21,914)     (50,748)     (57,218)      (177,092)
for income taxes
                                                             
Benefit (provision) for  2,750        (1,786)      1,309         (6,594)
income taxes
                                                             
Net loss from continuing (19,164)     (52,534)     (55,909)      (183,686)
operations
                                                             
Income (loss) from
discontinued operations, —            (52)         —             2,296
net of income taxes
                                                             
Net loss                 (19,164)     (52,586)     (55,909)      (181,390)
                                                             
Net loss attributable to
the noncontrolling       —            97           —             353
interest
                                                             
Net loss attributable to
SBA Communications       $(19,164)  $(52,489)  $(55,909)   $(181,037)
Corporation
                                                             
Basic and diluted per                                         
common share amounts:
Loss from continuing     $(0.15)    $(0.42)    $(0.44)     $(1.53)
operations
Income from discontinued —            —            —             0.02
operations
Net loss per common      $(0.15)    $(0.42)    $(0.44)     $(1.51)
share
                                                             
Basic and diluted
weighted average number  128,406      126,598      127,769       120,280
of common shares
                                                             
(1) Includes non-cash compensation of $4,139 and $3,328 for the three months
ended December 31, 2013 and 2012, respectively, and $16,975 and $13,781 for
the fiscal year ended December 31, 2013 and 2012, respectively.


CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
                                                                
                                                                
                                                    December 31, December 31,
                                                    2013         2012
                                                    (unaudited)  
ASSETS                                                           
Current assets:                                                  
Cash and cash equivalents                            $122,112   $233,099
Restricted cash                                      47,305       27,708
Short-term investments                               5,446        5,471
Accounts receivable, net of allowance of $686 and    71,339       39,099
$246 at December 31, 2013 and 2012, respectively
Costs and estimated earnings in excess of billings   27,864       23,644
on uncompleted contracts
Prepaid and other current assets                     69,586       59,836
Total current assets                                 343,652      388,857
                                                                
Property and equipment, net                          2,578,444    2,671,317
Intangible assets, net                               3,387,198    3,134,133
Deferred financing fees, net                         73,042       66,324
Other assets                                         400,852      355,280
Total assets                                         $6,783,188 $6,615,911
                                                                
LIABILITIES AND SHAREHOLDERS' EQUITY                             
Current Liabilities:                                             
Accounts payable                                     $24,302    $27,694
Accrued expenses                                     86,131       42,052
Current maturities of long-term debt                 481,886      475,351
Deferred revenue                                     94,658       76,668
Accrued interest                                     46,689       46,233
Other current liabilities                            14,007       195,690
Total current liabilities                            747,673      863,688
                                                                
Long-term liabilities:                                           
Long-term debt                                       5,394,721    4,880,752
Other long-term liabilities                          283,828      206,769
Total long-term liabilities                          5,678,549    5,087,521
                                                                
Redeemable noncontrolling interests                  —            11,711
                                                                
Shareholders' equity:                                            
Preferred stock - par value $.01, 30,000 shares      —            —
authorized, no shares issued or outstanding
Common stock - Class A, par value $.01, 400,000
shares authorized, 128,432 and 126,933 shares issued 1,284        1,269
and outstanding at December 31, 2013 and 2012,
respectively
Additional paid-in capital                           2,907,446    3,111,107
Accumulated deficit                                  (2,518,085)  (2,462,176)
Accumulated other comprehensive income (loss), net   (33,679)     2,791
Total shareholders' equity                           356,966      652,991
Total liabilities and shareholders' equity           $6,783,188 $6,615,911


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
                                                                
                                                   For the three months ended
                                                   ended December 31,
                                                   2013          2012
CASH FLOWS FROM OPERATING ACTIVITIES:                            
Net loss                                            $(19,164)   $(52,586)
Adjustments to reconcile net loss to net cash                    
provided by operating activities:
Income from discontinued operations, net of income  —             52
taxes
Depreciation, accretion, and amortization           133,328       131,357
Non-cash interest expense                           9,934         17,829
Deferred income tax (benefit) expense               (3,972)       (96)
Non-cash asset impairment and decommission costs    10,722        3,828
Non-cash compensation expense                       4,195         3,382
Amortization of deferred financing fees             4,053         3,576
Loss from extinguishment of debt, net               336           2,007
Other non-cash items reflected in the Statements of 157           (844)
Operations
Changes in operating assets and liabilities, net of              
acquisitions:
Accounts receivable and costs and estimated
earnings in excess of billings on uncompleted       5,434         (4,584)
contracts, net
Prepaid and other assets                            (12,836)      (34,375)
Accounts payable and accrued expenses               (3,371)       1,115
Accrued interest                                    4,514         11,226
Other liabilities                                   21,209        21,503
Net cash provided by operating activities           154,539       103,390
                                                                
CASH FLOWS FROM INVESTING ACTIVITIES:                            
Acquisitions and related earn-outs                  (338,338)     (1,275,666)
Capital expenditures                                (65,520)      (38,804)
Proceeds from sale of DAS networks                  —             5,700
Return of principal on long-term notes              26,000        —
Other investing activities                          2,114         (1,088)
Net cash used in investing activities               (375,744)     (1,309,858)
                                                                
CASH FLOWS FROM FINANCING ACTIVITIES:                            
Borrowings under Revolving Credit Facility          215,000       100,000
Repayment of Term Loans                             (2,500)       (3,750)
Proceeds from employee stock purchase/stock option  38            10,207
plans
Payments on settlement of convertible debt          —             (107,493)
Payments for settlement of common stock warrants    (55,488)      —
Other financing activities                          291           (1,657)
Net cash provided by (used in) financing activities 157,341       (2,693)
                                                                
Effect of exchange rate changes on cash and cash    (3,433)       1,267
equivalents
Net cash provided by discontinued operations                     
Operating Activities:                               —             (52)
                                                                
NET INCREASE (DECREASE) IN CASH AND CASH            (67,297)      (1,207,946)
EQUIVALENTS
CASH AND CASH EQUIVALENTS:                                       
Beginning of period                                 189,409       1,441,045
End of period                                       $122,112    $233,099
                                                                

                                          For the three     For the fiscal
                                          months ended      year ended
                                          December 31, 2013 December 31, 2013
                                          (in thousands)
                                                           
Tower new build construction               $21,724         $77,427
Tower upgrades/augmentations               14,850            47,970
Purchase of headquarters building          23,294            24,516
Non-discretionary capital expenditures:                     
Maintenance/improvement capital            3,377             12,909
expenditures
General corporate expenditures             2,275             6,071
Total non-discretionary capital            5,652             18,980
expenditures
Total capital expenditures                 $65,520         $168,893

Non-GAAP Financial Measures

The press release contains non-GAAP financial measures including (i) Site
Leasing Segment Operating Profit, Site Development Segment Operating Profit,
and Segment Operating Profit Margin; (ii) Tower Cash Flow and Tower Cash Flow
Margin; (iii) Adjusted EBITDA, Annualized Adjusted EBITDA, and Adjusted EBITDA
Margin; (iv) Net Debt, Net Secured Debt, Leverage Ratio, and Secured Leverage
Ratio (collectively, our "Non-GAAP Debt Measures"); and (v) Funds from
Operations ("FFO"), Adjusted Funds from Operations ("AFFO"), and AFFO per
share.

We have included these non-GAAP financial measures because we believe that
they provide investors additional tools in understanding our financial
performance and condition.Specifically, we believe that:

(1) Segment Operating Profit is an indicator of the operating performance of
our site leasing and site development segments;

(2) Tower Cash Flow is an indicator of the performance of our site leasing
operations;

(3) Adjusted EBITDA, FFO, AFFO, and AFFO per share are useful indicators of
the financial performance of our core businesses; and

(4) Our Non-GAAP Debt Measures provide investors a more complete understanding
of our net debt and leverage position as they include the full principal
amount of our debt which will be due at maturity.

In addition, Tower Cash Flow, Adjusted EBITDA, and our Non-GAAP Debt Measures
are components of the calculations used by our lenders to determine compliance
with certain covenants under our Senior Credit Agreement, 8.25% Notes, 5.625%
Notes, and 5.75% Notes.These non-GAAP financial measures are not intended to
be an alternative to any of the financial measures provided in our results of
operations or our balance sheet as determined in accordance with GAAP.

We believe that FFO, AFFO, and AFFO per share, which are also being used by
American Tower Corporation and Crown Castle International (our two public
company peers in the communication site industry), provide investors useful
indicators of the financial performance of our core business and permit
investors an additional tool to evaluate the performance of our business
against those of our two principal competitors.FFO, AFFO and AFFO per share
are not necessarily indicative of the operating results that would have been
achieved had we converted to a REIT.In addition, our FFO, AFFO, and AFFO per
share may not be comparable to those reported in accordance with National
Association of Real Estate Investment Trusts or by the other communication
site companies as the calculation of these non-GAAP measures requires us to
estimate the impact had we converted to a REIT, including estimates of the tax
provision adjustment to reflect our estimate of our cash taxes had we been a
REIT.

Segment Operating Profit and Segment Operating Profit Margin

The reconciliation of Site Leasing Segment Operating Profit and Site
Development Segment Operating Profit and the calculation of Segment Operating
Profit Margin are as follows:

                               Site Leasing Segment  Site Development Segment
                               For the three months  For the three months
                               ended December 31,    ended December 31,
                               2013       2012       2013         2012
                               (in thousands)
                                                               
Segment revenue                 $292,525 $260,762 $42,871    $33,079
Segment cost of revenues
(excluding depreciation,        (66,844)   (62,164)   (33,693)     (27,263)
accretion, and amortization)
Segment operating profit        $225,681 $198,598 $9,178     $5,816
                                                               
Segment operating profit margin 77.1%      76.2%      21.4%        17.6%

Tower Cash Flow and Tower Cash Flow Margin

The tables below set forth the reconciliation of Tower Cash Flow to its most
comparable GAAP measurement and the calculation of Tower Cash Flow Margin.
Tower Cash Flow for each of the periods set forth in the Outlook section above
will be calculated in the same manner.

                                                        For the three months
                                                        ended December 31,
                                                        2013       2012
                                                        (in thousands)
Site leasing revenue                                     $292,525 $260,762
Site leasing cost of revenues (excluding depreciation,   (66,844)   (62,164)
accretion, and amortization)
Site leasing segment operating profit                    225,681    198,598
Non-cash straight-line leasing revenue                   (14,721)   (20,100)
Non-cash straight-line ground lease expense              6,635      8,464
Tower Cash Flow                                          $217,595 $186,962

The calculation of Tower Cash Flow Margin is as follows:

                                                        For the three months
                                                        ended December 31,
                                                        2013       2012
                                                        (in thousands)
Site leasing revenue                                     $292,525 $260,762
Non-cash straight-line leasing revenue                   (14,721)   (20,100)
Site leasing revenue minus non-cash straight-line        $277,804 $240,662
leasing revenue
Tower Cash Flow                                          $217,595 $186,962
Tower Cash Flow Margin                                   78.3%      77.7%

Adjusted EBITDA, Annualized Adjusted EBITDA and Adjusted EBITDA Margin

The table below sets forth the reconciliation of Adjusted EBITDA to its most
comparable GAAP measurement.Adjusted EBITDA for each of the periods set forth
in the Outlook section above will be calculated in the same manner:

                                         For the three months
                                         ended December 31,
                                         2013               2012
                                         (in thousands)
Net loss                                  $(19,164)        $(52,586)
Non-cash straight-line leasing revenue    (14,721)           (20,100)
Non-cash straight-line ground lease       6,635              8,464
expense
Non-cash compensation                     4,195              3,382
Loss from extinguishment of debt, net     336                2,007
Other (income) expense                    3,736              (422)
Acquisition related expenses              7,821              18,558
Asset impairment and decommission costs   12,555             3,828
Interest income                           (182)              (709)
Total interest expense ^(1)               77,469             80,918
Depreciation, accretion, and amortization 133,328            131,357
Provision for taxes ^(2)                  (2,628)            2,267
Income from discontinued operations       —                 52
Adjusted EBITDA                           $209,380         $177,016
Annualized Adjusted EBITDA ^(3)           $837,520         $708,064
                                                           
(1) Total interest expense includes interest expense, non-cash interest
expense, and amortization of deferred financing fees.
(2) For the three months ended December 31, 2013 and 2012, these amounts
included $122 and $481, respectively, of franchise taxes reflected in the
Statements of Operations in selling, general and administrative expenses.
(3) Annualized Adjusted EBITDA is calculated as Adjusted EBITDA for the most
recent quarter multiplied by four.

The calculation of Adjusted EBITDA Margin is as follows:

                                                        For the three months
                                                        ended December 31,
                                                        2013       2012
                                                        (in thousands)
Total revenues                                           $335,396 $293,841
Non-cash straight-line leasing revenue                   (14,721)   (20,100)
Total revenues minus non-cash straight-line leasing      $320,675 $273,741
revenue
Adjusted EBITDA                                          $209,380 $177,016
Adjusted EBITDA Margin                                   65.3%      64.7%

Funds from Operations ("FFO") and Adjusted Funds from Operations ("AFFO")

The tables below set forth the reconciliations of FFO and AFFO to their most
comparable GAAP measurement. AFFO for each of the periods set forth in the
Outlook section above will be calculated in the same manner:

                                          For the three months
                                          ended December 31,
                                          2013              2012
                                          (in thousands)
Net loss                                   $(19,164)       $(52,586)
Plus: Net loss from discontinued           —                52
operations
Adjusted tax provision ^(1)                (3,964)           947
Real estate related depreciation,          132,116           130,356
amortization, and accretion
FFO                                        $108,988        $78,769
                                                           
Adjustments to FFO:                                         
Non-cash straight-line leasing revenue     (14,721)          (20,100)
Non-cash straight-line ground lease        6,635             8,464
expense
Non-cash compensation                      4,195             3,382
Non-real estate related depreciation,      1,212             1,001
amortization, and accretion
Amortization of deferred financing costs   13,987            21,406
and debt discounts
Loss from extinguishment of debt, net      336               2,007
Other (income) expense                     3,736             (422)
Acquisition related expenses               7,821             18,558
Asset impairment and decommission costs    12,555            3,828
Non-discretionary cash capital             (5,652)           (3,944)
expenditures
AFFO                                       139,092           112,949
                                                           
Weighted average number of common shares   129,631           128,109
^(2)
                                                           
AFFO per share                             $1.07           $0.88
                                                           
(1) Adjusts the income tax provision during the period, to reflect our
estimate of cash income taxes (primarily foreign taxes) that would have been
payable had we been a REIT.
(2) For purposes of the AFFO per share calculation, the basic weighted
average number of common shares has been adjusted to include the dilutive
effect of stock options and restricted stock units.

Net Debt, Leverage Ratio, and Secured Leverage Ratio

Net Debt is calculated using the notional principal amount of outstanding
debt. Under GAAP policies, the notional principal amount of the Company's
outstanding debt is not necessarily reflected on the face of the Company's
financial statements.

The Debt and Leverage calculations are as follows:

                                                               December 31,
                                                               2013
                                                               (in thousands)
2010-1 Tower Securities                                         $680,000
2010-2 Tower Securities                                         550,000
2012-1 Tower Securities                                         610,000
2013-1C Tower Securities                                        425,000
2013-2C Tower Securities                                        575,000
2013-1D Tower Securities                                        330,000
Revolving Credit Facility                                       215,000
2011 Term Loan B (carrying value of $180,234)                   180,529
2012-1 Term Loan A                                              185,000
2012-2 Term Loan B (carrying value of $109,745)                 109,971
Total secured debt                                              3,860,500
                                                               
4.0% Convertible Senior Notes (carrying value of $468,394)      499,944
8.25% 2019 Senior Notes (carrying value of $242,387)            243,750
5.625% 2019 Senior Notes                                        500,000
5.75% 2020 Senior Notes                                         800,000
BNDES Loans                                                     5,847
Total unsecured debt                                            2,049,541
Total debt                                                      $5,910,041
                                                               
Leverage Ratio                                                  
Total debt                                                      $5,910,041
Less: Cash and cash equivalents, short-term restricted cash and (174,863)
short-term investments
Net debt                                                        $5,735,178
                                                               
Divided by: Annualized Adjusted EBITDA                          $837,520
                                                               
Leverage Ratio                                                  6.8x
                                                               
Secured Leverage Ratio                                          
Total secured debt                                              $3,860,500
Less: Cash and cash equivalents, short-term restricted cash and (174,863)
short-term investments
Net Secured Debt                                                $3,685,637
                                                               
Divided by: Annualized Adjusted EBITDA                          $837,520
                                                               
Secured Leverage Ratio                                          4.4x

CONTACT: Mark DeRussy, CFA
         Capital Markets
         561-226-9531
        
         Lynne Hopkins
         Media Relations
         561-226-9431
 
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