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SBA Communications Corporation Reports 1st Quarter 2014 Results; Provides 2nd Quarter and Updated Full Year 2014 Outlook

SBA Communications Corporation Reports 1st Quarter 2014 Results; Provides 2nd Quarter and Updated Full Year 2014 Outlook  BOCA RATON, Fla., May 1, 2014 (GLOBE NEWSWIRE) -- SBA Communications Corporation (Nasdaq:SBAC) ("SBA" or the "Company") today reported results for the quarter ended March 31, 2014. Highlights of the results include:  First quarter over year earlier period:    *Site leasing revenue growth of 13%   *Tower Cash Flow growth of 21%   *Net loss decreased from $22 million to net income of $1 million   *Adjusted EBITDA growth of 21%   *AFFO Per Share growth of 20%  "We had an excellent first quarter and expect another good year in 2014," commented Jeffrey A. Stoops, President and Chief Executive Officer. "Among many highlights in our first quarter, we are particularly pleased with our expense performance which produced industry leading Tower Cash Flow and Adjusted EBITDA margin results. Year-to-date leasing activity and current backlogs evidence very strong customer activity in all of our markets. As a result, we are able to make sizeable increases in our 2014 Outlook, which increases are driven almost entirely by organic activity. With our recently closed acquisition of 2,007 sites from Oi, Brazil now joins our U.S. and other markets as fully scaled and capable operations, well-positioned to continue to participate in the projected growth of wireless in their respective regions. Our balance sheet and liquidity positions are both sound, and give us plenty of resources to pursue additional quality portfolio growth opportunities. We believe 2014 will be another year of material growth in AFFO per share for SBA."  Operating Results  Total revenues in the first quarter of 2014 were $345.5 million compared to $313.1 million in the year earlier period, an increase of 10.4%. Site leasing revenue of $309.3 million increased 13.1% over the year earlier period. Domestic cash site leasing revenue was $268.7 million in the first quarter of 2014 compared to $238.3 million in the year earlier period, an increase of 12.8%. International cash site leasing revenue was $29.6 million in the first quarter of 2014 compared to $17.7 million in the year earlier period, an increase of 67.2%.  Site leasing Segment Operating Profit of $239.6 million increased 16.6% over the year earlier period. Site leasing contributed 96.5% of the Company's total Segment Operating Profit in the first quarter of 2014. Site development revenues were $36.2 million in the first quarter of 2014 compared to $39.6 million in the year earlier period, an 8.4% decrease. Site development Segment Operating Profit Margin was 24.3% in the first quarter of 2014 compared to 17.6% in the year earlier period.  Tower Cash Flow for the first quarter of 2014 was $237.5 million, a 20.5% increase over the year earlier period. Tower Cash Flow Margin for the first quarter of 2014 was 79.6% compared to 77.0% in the year earlier period.  Domestic Tower Cash Flow for the first quarter of 2014 was $214.4 million compared to $185.0 million in the year earlier period, an increase of 15.9%. International Tower Cash Flow for the first quarter of 2014 was $23.1 million compared to $12.1 million in the year earlier period, an increase of 91.9%.  Net income for the first quarter of 2014 was $1.4 million or $0.01 per share compared to a $22.4 million loss or $(0.18) per share in the year earlier period. Net income for the quarter was positively impacted by $17.9 million of gains on the Company's currency hedges entered into in connection with the Oi acquisition which closed on March 31, 2014.  Adjusted EBITDA in the first quarter of 2014 was $226.7 million compared to $187.7 million in the year earlier period, an increase of 20.7%. Adjusted EBITDA Margin was 67.8% in the first quarter of 2014 compared to 63.5% in the year earlier period.  Net Cash Interest Expense was $65.9 million in the first quarter of 2014 compared to $58.9 million in the year earlier period.  AFFO increased 21.8% to $153.8 million in the first quarter of 2014 compared to $126.3 million in the year earlier period. AFFO per share increased 20.4% to $1.18 in the first quarter of 2014 compared to $0.98 in the year earlier period.  Investing Activities  During the first quarter of 2014, SBA purchased 2,188 communication sites for $900.6 million in cash, net of currency hedging benefits, which included the March 31, 2014 acquisition of 2,007 communication sites from Oi S.A. in Brazil (the "Oi Acquisition"). SBA also built 57 towers during the first quarter of 2014. As of March 31, 2014, SBA owned or operated 22,263 communication sites, 15,034 of which are located in the United States and its territories, and 7,229 of which are located internationally. In addition, the Company spent $9.3 million to purchase land and easements and to extend lease terms with respect to land underlying its towers. Total cash capital expenditures for the first quarter of 2014 were $947.5 million, consisting of $4.7 million of non-discretionary cash capital expenditures (tower maintenance and general corporate) and $942.8 million of discretionary cash capital expenditures net of currency hedging benefits (new tower builds, tower augmentations, acquisitions and related earn-outs, purchasing land and easements, and capital expenditures associated with the purchase of a new headquarters building).  Subsequent to the first quarter of 2014, the Company acquired 12 towers and related assets and liabilities for aggregate consideration of $8.9 million in cash. The Company has agreed to purchase 59 towers for an aggregate amount of $35.5 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 first quarter with $6.9 billion of total debt, $363.2 million of cash and cash equivalents, short-term restricted cash, and short-term investments, and $6.5 billion of Net Debt (as defined below). SBA's Net Debt and Net Secured Debt to Annualized Adjusted EBITDA Leverage Ratios were 7.2x and 5.0x, respectively.  During the first quarter of 2014, the Company, through its wholly owned subsidiary, SBA Senior Finance II LLC, obtained a new senior secured Term Loan with an initial aggregate principal amount of $1.5 billion that was issued at 99.75% of par value and matures on March 24, 2021 ("2014 Term Loan B"). 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, (3) repay the $390.0 million outstanding balance under the Company's Revolving Credit Facility, and (4) pay the cash consideration in connection with the Oi Acquisition. The remaining net proceeds will be used for general corporate purposes.  As of the date of this press release, the Company had no amounts outstanding under the $770 million Revolving Credit Facility, and the amount available based on specified covenants under the facility was $675 million.  Effective March 17, 2014, the Company elected to settle the principal amount of any conversions on its 4.0% Convertible Senior Notes due 2014 ("4.0% Notes") in cash and any additional conversion consideration at the conversion rate then applicable in shares of its Class A common stock. Concurrently with the settlement of any converted 4.0% Notes, SBA will settle the associated convertible note hedges and receive an equal number of shares to those issued to the noteholders. As a result, SBA's outstanding share count will not be impacted by the early conversion of these notes under the current settlement election. The Company received conversion notices totaling $259,000 of principal during the first quarter of 2014 and conversion notices totaling $121.3 million of principal subsequent to the end of the first quarter, all of which will settle in the second quarter of 2014.  During the first 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 second 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 $56.7 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 million associated with iDEN lease terminations, which from a timing perspective have been assumed to occur on the basis least favorable to SBA pursuant to 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 towers. The Full Year 2014 Outlook also contemplates approximately $1.3 billion of new financing during 2014 at an estimated annual interest rate of 4.0% with proceeds being used to (i) call the Company's 8.25% Senior Notes in August 2014, and (ii) settle for cash all of the obligations under the Company's 4.0% Convertible Senior Notes due October 1, 2014 and the related warrants upon maturity. Finally, the Company's Outlook also assumes an average foreign currency exchange rate of 2.30 Brazilian Reais to 1.0 U.S. Dollar for the second, third, and fourth quarters of 2014.                        Quarter ending            Full                       June 30, 2014              Year 2014                       ($'s in millions) Site leasing revenue   $333.0   to   $338.0   $1,317.0   to  $ 1,337.0 ^(1) Site development       $32.5    to   $37.5    $130.0     to  $150.0 revenue Total revenues        $365.5   to   $375.5   $1,447.0   to  $1,487.0 Tower Cash Flow       $248.0   to   $253.0   $989.0     to  $1,009.0 Adjusted EBITDA       $236.5   to   $241.5   $942.0     to  $962.0 Net cash interest      $71.0    to   $73.0    $279.0     to  $289.0 expense ^(2) Non-discretionary cash capital expenditures   $7.5     to   $8.5     $24.0      to  $29.0 ^(3) AFFO                  $152.0   to   $161.0   $616.0     to  $652.0 Discretionary cash capital expenditures   $91.0    to   $101.0   $1,160.0   to  $1,190.0 ^(4) (5)                                                               (1) The Company's Outlook for site leasing revenue includes revenue associated with pass through reimbursable expenses. (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. (5)Discretionary cash capital expenditures for the full year 2014 Outlook are net of a $17.9 million gain recognized in the first quarter of 2014 upon the settlement of currency hedges entered into in connection with the Oi acquisition.  Conference Call Information  SBA Communications Corporation will host a conference call on Friday, May 2, 2014 at 10:00 AM (Eastern) to discuss the quarterly results. The call may be accessed as follows:  When:                Friday, May 2, 2014 at 10:00 AM (Eastern) Dial-in number:       (800) 230-1092 Conference call name: SBA first quarter results Replay:               May 2, 2014 at 12:30 PM through May 16, 2014 at 10:59                       AM(Eastern) Number:              USA (800) 475-6701, International (320) 365-3844 Access Code:          324818 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 second quarter of 2014 and full year 2014 and the ability to improve upon its full year 2014 Outlook, (iv) timing of closing for currently pending acquisitions, (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, 2014.  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 assets; (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 towers on terms that are accretive; (10) the Company's ability to realize economies of scale from its tower 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 towers and outsourced site development services by the wireless carriers; and (14) the Company's ability to protect its rights to land under its towers. 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 towers in 2014. With respect to its expectations regarding the ability to close pending 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) (unaudited)                                                                                                                    For the three months                                                    ended March 31,                                                    2014         2013 Revenues:                                                        Site leasing                                        $309,320   $273,504 Site development                                    36,230       39,567 Total revenues                                      345,550      313,071                                                                 Operating expenses:                                              Cost of revenues (exclusive of depreciation,                     accretion, and amortization shown below): Cost of site leasing                                69,740       68,101 Cost of site development                            27,427       32,594 Selling, general, and administrative ^(1)           24,676       20,431 Acquisition relatedexpenses                        8,561        5,822 Asset impairment and decommission costs             3,568        3,722 Depreciation, accretion, and amortization           144,442      125,636 Total operating expenses                            278,414      256,306                                                                 Operating income                                    67,136       56,765                                                                 Other income (expense):                                          Interest income                                     86           641 Interest expense                                    (66,027)     (59,465) Non-cash interest expense                           (10,304)     (17,364) Amortization of deferred financing fees             (4,237)      (3,604) Loss from extinguishment of debt, net               (1,951)      (142) Other income (expense)                              18,390       152 Total other expense                                 (64,043)     (79,782)                                                                 Income (loss) before provision for income taxes     3,093        (23,017)                                                                 Benefit (provision) for income taxes                (1,686)      641                                                                 Net income (loss)                                   $1,407     $(22,376)                                                                 Income (loss) per common share                                   Basic                                               $0.01      $(0.18) Diluted                                             $0.01      $(0.18)                                                                 Weighted average number of common shares                         Basic                                               128,560      127,057 Diluted                                             138,356      127,057                                                                 (1) Includes non-cash compensation of $4,541 and $3,817 for the three months ended March 31, 2014 and 2013, respectively.   CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)                                                                                                                                                                                       March 31,    December 31,                                                     2014         2013                                                     (unaudited)   ASSETS                                                            Current assets:                                                   Cash and cash equivalents                            $322,914   $122,112 Restricted cash                                      35,220       47,305 Short-term investments                               5,054        5,446 Accounts receivable, net of allowance of $827 and $686 at March 31, 2014 and December 31, 2013,        68,102       71,339 respectively Costs and estimated earnings in excess of billings   22,114       27,864 on uncompleted contracts Prepaid and other current assets                     62,724       69,586 Total current assets                                 516,128      343,652                                                                  Property and equipment, net                          2,693,015    2,578,444 Intangible assets, net                               4,081,286    3,387,198 Deferred financing fees, net                         80,578       73,042 Other assets                                         420,335      400,852 Total assets                                         $7,791,342 $6,783,188                                                                  LIABILITIES AND SHAREHOLDERS' EQUITY                              Current Liabilities:                                              Accounts payable                                     $26,310    $24,302 Accrued expenses                                     79,639       86,131 Current maturities of long-term debt                 503,776      481,886 Deferred revenue                                     89,915       94,658 Accrued interest                                     42,205       46,689 Other current liabilities                            14,934       14,007 Total current liabilities                            756,779      747,673                                                                  Long-term liabilities:                                            Long-term debt                                       6,365,982    5,394,721 Other long-term liabilities                          272,393      283,828 Total long-term liabilities                          6,638,375    5,678,549                                                                  Redeemable noncontrolling interests                  —            —                                                                  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, 128,788 and 128,432 shares issued 1,288        1,284 and outstanding at March 31, 2014 and December 31, 2013, respectively Additional paid-in capital                           2,912,250    2,907,446 Accumulated deficit                                  (2,516,678)  (2,518,085) Accumulated other comprehensive income (loss), net   (672)        (33,679) Total shareholders' equity                           396,188      356,966 Total liabilities and shareholders' equity           $7,791,342 $6,783,188   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)                                                                                                                          For the three months                                                        ended March 31,                                                        2014       2013 CASH FLOWS FROM OPERATING ACTIVITIES:                              Net income (loss)                                       $1,407   $(22,376) Adjustments to reconcile net income (loss) to net cash             provided by operating activities: Depreciation, accretion, and amortization               144,442    125,636 Non-cash interest expense                               10,304     17,364 Deferred income tax (benefit) expense                   474        (1,802) Non-cash asset impairment and decommission costs        3,213      2,892 Non-cash compensation expense                           4,618      3,874 Amortization of deferred financing fees                 4,237      3,604 Loss from extinguishment of debt, net                   1,951      142 Other non-cash items reflected in the Statements of     (297)      166 Operations Changes in operating assets and liabilities, net of                acquisitions: Accounts receivable and costs and estimated earnings in 8,644      (13,688) excess of billings on uncompleted contracts, net Prepaid and other assets                                1,196      (18,434) Accounts payable and accrued expenses                   657        (400) Accrued interest                                        (4,485)    (2,094) Other liabilities                                       2,604      (656) Net cash provided by operating activities               178,965    94,228                                                                   CASH FLOWS FROM INVESTING ACTIVITIES:                              Acquisitions and related earn-outs                      (933,110)  (209,542) Capital expenditures                                    (32,238)   (36,423) Other investing activities                              444        1,308 Net cash used in investing activities                   (964,904)  (244,657)                                                                   CASH FLOWS FROM FINANCING ACTIVITIES:                              Net repayments under Revolving Credit Facility          (215,000)  — Repayment of Term Loans                                 (293,000)  (4,500) Proceeds from employee stock purchase/stock option      89         4,325 plans Proceeds from Term Loans, net of fees                   1,484,213  — Proceeds from settlement of convertible note hedges     1          45,230 Repayment of BNDES Loans                                (6,105)    — Principal payments under capital lease obligations      (433)      (395) Payment of deferred financing fees                      (1,419)    (851) Payment for purchase of noncontrolling interests        —          (6,008) Other financing activities                              414        — Net cash provided by financing activities               968,760    37,801                                                                   Effect of exchange rate changes on cash and cash        17,981     1,759 equivalents                                                                   NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS    200,802    (110,869) CASH AND CASH EQUIVALENTS:                                         Beginning of period                                     122,112    233,099 End of period                                           $322,914 $122,230                                                                    Selected Capital Expenditure Detail                                                                                                                                                    For the three months ended                                                   March 31,                                                   2014            2013                                                   (in thousands)                                                                   Tower new build construction                       $16,236       $23,368 Tower upgrades/augmentations                       11,120          8,322 Purchase of headquarters building                  144             — Non-discretionary capital expenditures:                            Maintenance/improvement capital                    2,935           3,046 expenditures General corporate expenditures                     1,803           1,687 Total non-discretionary capital                    4,738           4,733 expenditures Total capital expenditures                         $32,238       $36,423                                                                                                                                     Communication Site Portfolio Summary                                                                                                                                           Domestic International   Total                                                                                                                                     Sites owned at December 31, 2013           14,886   5,193           20,079 Sites acquired during the first quarter    177      2,011           2,188 Sites built during the first quarter       30       27              57 Sites decommissioned during the first      (59)     (2)             (61) quarter Sites owned at March 31, 2014              15,034   7,229           22,263  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) Cash Site Leasing Revenue; (iii) Tower Cash Flow and Tower Cash Flow Margin; (iv) Adjusted EBITDA, Annualized Adjusted EBITDA, and Adjusted EBITDA Margin; (v) Net Debt, Net Secured Debt, Leverage Ratio, and Secured Leverage Ratio (collectively, our "Non-GAAP Debt Measures"); and (vi) 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) Cash Site Leasing Revenue and Tower Cash Flow are indicators 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, Total 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 March 31,       ended March 31,                                2014       2013       2014         2013                                (in thousands)                                                                 Segment revenue                 $309,320 $273,504 $36,230    $39,567 Segment cost of revenues (excluding depreciation,        (69,740)   (68,101)   (27,427)     (32,594) accretion, and amortization) Segment operating profit        $239,580 $205,403 $8,803     $6,973                                                                 Segment operating profit margin 77.5%      75.1%      24.3%        17.6%  Cash Site Leasing Revenue, Tower Cash Flow, and Tower Cash Flow Margin  The table below sets forth the reconciliation of Cash Site Leasing Revenue and Tower Cash Flow to their most comparable GAAP measurement and Tower Cash Flow Margin, which is calculated by dividing Tower Cash Flow by Cash Site Leasing Revenue. Tower Cash Flow for each of the periods set forth in the Outlook section above will be calculated in the same manner.                Domestic Site Leasing Int'l Site Leasing  Total Site Leasing               For the three months  For the three       For the three months                                      months               ended March 31,       ended March 31,     ended March 31,               2014       2013       2014      2013      2014       2013               (in thousands) Site leasing   $275,061 $254,072 $34,259 $19,432 $309,320 $273,504 revenue Non-cash straight-line  (6,394)    (15,732)   (4,633)   (1,727)   (11,027)   (17,459) leasing revenue Cash site leasing        268,667    238,340    29,626    17,705    298,293    256,045 revenue Site leasing cost of revenues (excluding     (62,214)   (61,390)   (7,526)   (6,711)   (69,740)   (68,101) depreciation, accretion, and amortization) Non-cash straight-line  7,930      8,055      1,043     1,064     8,973      9,119 ground lease expense Tower Cash     $214,383 $185,005 $23,143 $12,058 $237,526 $197,063 Flow Tower Cash     79.8%      77.6%      78.1%     68.1%     79.6%      77.0% Flow Margin  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 March 31,                                          2014              2013                                          (in thousands) Net income (loss)                         $1,407          $(22,376) Non-cash straight-line leasing revenue    (11,027)          (17,459) Non-cash straight-line ground lease       8,973             9,119 expense Non-cash compensation                     4,618             3,874 Loss from extinguishment of debt, net     1,951             142 Other (income) expense                    (18,390)          (152) Acquisition related expenses              8,561             5,822 Asset impairment and decommission costs   3,568             3,722 Interest income                           (86)              (641) Total interest expense ^(1)               80,568            80,433 Depreciation, accretion, and amortization 144,442           125,636 Provision (benefit) for taxes ^(2)        2,084             (400) Adjusted EBITDA                           $226,669        $187,720 Annualized Adjusted EBITDA ^(3)           $906,676        $750,880                                                            (1) Total interest expense includes interest expense, non-cash interest expense, and amortization of deferred financing fees. (2) For the three months ended March 31, 2014 and 2013, these amounts included $398 and $241, 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 March 31,                                                         2014       2013                                                         (in thousands) Total revenues                                           $345,550 $313,071 Non-cash straight-line leasing revenue                   (11,027)   (17,459) Total revenues minus non-cash straight-line leasing      $334,523 $295,612 revenue Adjusted EBITDA                                          $226,669 $187,720 Adjusted EBITDA Margin                                   67.8%      63.5%  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 March 31,                                            2014             2013                                            (in thousands) Net income (loss)                           $1,407         $(22,376) Adjusted tax provision ^(1)                 (110)            (1,957) Real estate related depreciation,           142,957          124,540 amortization, and accretion FFO                                         $144,254       $100,207                                                             Adjustments to FFO:                                          Non-cash straight-line leasing revenue      (11,027)         (17,459) Non-cash straight-line ground lease expense 8,973            9,119 Non-cash compensation                       4,618            3,874 Non-real estate related depreciation,       1,485            1,096 amortization, and accretion Amortization of deferred financing costs    14,541           20,968 and debt discounts Interest deemed paid upon conversion of     —                3,646 convertible notes Loss from extinguishment of debt, net       1,951            142 Other (income) expense                      (18,390)         (152) Acquisition related expenses                8,561            5,822 Asset impairment and decommission costs     3,568            3,722 Non-discretionary cash capital expenditures (4,738)          (4,733) AFFO                                        $153,796       $126,252                                                             Weighted average number of common shares    129,822          128,409 ^(2)                                                             AFFO per share                              $1.18          $0.98                                                             (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 Net Debt and Leverage calculations are as follows:                                                                 March 31,                                                                2014                                                                (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 2012-1 Term Loan A                                              182,500 2014 Term Loan B (carrying value of $1,496,047)                 1,500,000 BNDES Loans                                                     212 Total secured debt                                              4,852,712                                                                 4.0% Convertible Senior Notes (carrying value of $478,564)      499,910 8.25% 2019 Senior Notes (carrying value of $242,435)            243,750 5.625% 2019 Senior Notes                                        500,000 5.75% 2020 Senior Notes                                         800,000 Total unsecured debt                                            2,043,660 Total debt                                                      $6,896,372                                                                 Leverage Ratio                                                   Total debt                                                      $6,896,372 Less: Cash and cash equivalents, short-term restricted cash and (363,188) short-term investments Net debt                                                        $6,533,184                                                                 Divided by: Annualized Adjusted EBITDA                          $906,676                                                                 Leverage Ratio                                                  7.2x                                                                 Secured Leverage Ratio                                           Total secured debt                                              $4,852,712 Less: Cash and cash equivalents, short-term restricted cash and (363,188) short-term investments Net Secured Debt                                                $4,489,524                                                                 Divided by: Annualized Adjusted EBITDA                          $906,676                                                                 Secured Leverage Ratio                                          5.0x  CONTACT: Mark DeRussy, CFA          Capital Markets          561-226-9531                   Lynne Hopkins          Media Relations          561-226-9431