SBA Communications Corporation (NASDAQ:SBAC) Q4 2022 Earnings Call Transcript

Brendan Cavanagh: Yes. So, on the international escalations, the dollar amount is flat. The CPI was certainly elevated during 2022. We are projecting it to be lower in Brazil, which is by far, our largest international market in 2023. But it’s €“ while it’s lower next year, the timing of when those escalations take place has an impact. So, some of the higher escalations of €˜22, some of that benefit carries over into 2023, and our assumed lower rate obviously then offset some of that benefit. Plus, we have a little bit bigger base of business, of course, with the GTS acquisition in particular. So, when you put it all together, we ended up with basically about the same dollar amount of growth impact, but we are assuming that the CPI rates come down year-over-year.

So, that’s offsetting what you might otherwise see as an increase. And on the discretionary CapEx, there is a small amount of contracted M&A in there, which we actually disclosed how much is under contract in our press release. But the balance of that is made up of assumptions we have made around new builds, around data center upgrades, around some DAS networks that we are investing in, basically everything else. The only thing that we don’t include in there is an assumption around M&A because it’s obviously lumpier and hard to identify what that’s going to be sitting here today. But the rest of our discretionary investment plans, the guidance kind of reflects those assumptions.

David Guarino: Great. Thank you.

Operator: And we have no other questions in queue. I will turn the conference back over to you.

Jeff Stoops: Thank you, Eric. And thank you everyone for joining us. We look forward to advising you on our progress in 2023 as we move through the year.

Operator: Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation and for using AT&T conferencing service. You may now disconnect.