SBAC » Topics » Segment Operating Profit:

These excerpts taken from the SBAC 10-Q filed May 8, 2009.

Segment Operating Profit:

 

     For the three months
ended March 31,
            
     2009    2008    Dollar
Change
    Percentage
Change
 
     (in thousands)             

Segment operating profit:

          

Site leasing

   $ 87,913    $ 67,328    $ 20,585     30.6 %

Site development consulting

     1,149      793      356     44.9 %

Site development construction

     1,450      1,561      (111 )   (7.1 )%
                        

Total

   $ 90,512    $ 69,682    $ 20,830     29.9 %
                        

The increase in site leasing segment operating profit related primarily to additional revenue generated by the number of towers acquired and constructed after March 31, 2008, additional revenue from the increased number of tenants and tenant equipment on our sites in the first quarter of 2009 compared to the first quarter of 2008, control of our site leasing cost of revenue and the positive impact of our ground lease purchase program. We reconcile segment operating profit and provide other Regulation G disclosures later in this quarterly report in the section entitled “Non-GAAP Financial Measures.”

Segment Operating Profit

Each respective Segment Operating Profit is defined as segment revenues less segment cost of revenues (excluding depreciation, accretion and amortization). Total Segment Operating Profit is the total of the operating profits of the three segments. Segment Operating Profit is, in our opinion, an indicator of the operating performance of our site leasing and site development segments and is used to provide management with the ability to monitor the operating results and margin of each segment, while excluding the impact of depreciation, accretion and amortization, which is largely fixed. Segment Operating Profit is not intended to be an alternative measure of revenue or segment gross profit as determined in accordance with GAAP.

The non-GAAP measurement of Segment Operating Profit has certain material limitations. Specifically this measurement does not include depreciation, accretion and amortization expense. As we use capital assets in our business, depreciation, accretion and amortization expense is a necessary element of our costs and ability to generate profit. Therefore, any measure that excludes depreciation, accretion and amortization expense has material limitations. We compensate for these limitations by using Segment Operating Profit as only one of several comparative tools, together with GAAP measurements, to assist in the evaluation of the operating performance of our segments.

 

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     Site leasing segment  
     For the three months
ended March 31,
 
     2009     2008  
     (in thousands)  

Segment revenue

   $ 115,478     $ 89,375  

Segment cost of revenues (excluding depreciation, accretion and amortization)

     (27,565 )     (22,047 )
                

Segment operating profit

   $ 87,913     $ 67,328  
                
     Site development consulting segment  
     For the three months
ended March 31,
 
     2009     2008  
     (in thousands)  

Segment revenue

   $ 4,172     $ 4,985  

Segment cost of revenues (excluding depreciation, accretion and amortization)

     (3,023 )     (4,192 )
                

Segment operating profit

   $ 1,149     $ 793  
                
     Site development construction segment  
     For the three months
ended March 31,
 
     2009     2008  
     (in thousands)  

Segment revenue

   $ 15,400     $ 15,557  

Segment cost of revenues (excluding depreciation, accretion and amortization)

     (13,950 )     (13,996 )
                

Segment operating profit

   $ 1,450     $ 1,561  
                

 

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These excerpts taken from the SBAC 10-K filed Feb 27, 2009.

Segment Operating Profit:

 

     For the year ended December 31,             
     2008    2007    Dollar
Change
    Percentage
Change
 
     (in thousands)             

Segment operating profit:

          

Site leasing

   $ 299,366    $ 233,812    $ 65,554     28.0 %

Site development consulting

     3,542      5,054      (1,512 )   (29.9 )%

Site development construction

     3,881      5,982      (2,101 )   (35.1 )%
                        

Total

   $ 306,789    $ 244,848    $ 61,941     25.3 %
                        

The increase in site leasing segment operating profit of $65.6 million is primarily related to additional revenue generated by the number of towers acquired and constructed for the year ended December 31, 2008, as well as additional revenue from the increased number of tenants and tenant equipment on our sites for the year ended December 31, 2008 compared to the same period of 2007 without a commensurate increase in site leasing cost of revenue. We reconcile these non-GAAP financial measures and provide the Regulation G disclosures in this annual report in the section titled Non-GAAP Financial Measures.

Segment Operating Profit:

 




























































































































































   For the year ended December 31,       
   2008  2007  Dollar
Change
  Percentage
Change
 
   (in thousands)       

Segment operating profit:

       

Site leasing

  $299,366  $233,812  $65,554  28.0%

Site development consulting

   3,542   5,054   (1,512) (29.9)%

Site development construction

   3,881   5,982   (2,101) (35.1)%
              

Total

  $306,789  $244,848  $61,941  25.3%
              

The increase in site leasing segment operating profit of $65.6 million is primarily related to
additional revenue generated by the number of towers acquired and constructed for the year ended December 31, 2008, as well as additional revenue from the increased number of tenants and tenant equipment on our sites for the year ended
December 31, 2008 compared to the same period of 2007 without a commensurate increase in site leasing cost of revenue. We reconcile these non-GAAP financial measures and provide the Regulation G disclosures in this annual report in the section
titled Non-GAAP Financial Measures.

Segment Operating Profit:

 

     For the year ended December 31,             
     2007    2006    Dollar
Change
    Percentage
Change
 
     (in thousands)             

Segment operating profit:

          

Site leasing

   $ 233,812    $ 185,507    $ 48,305     26.0 %

Site development consulting

     5,054      2,578      2,476     96.0 %

Site development construction

     5,982      6,431      (449 )   (7.0 )%
                        

Total

   $ 244,848    $ 194,516    $ 50,332     25.9 %
                        

The increase in site leasing segment operating profit of $48.3 million is primarily related to additional revenue generated by the increased number of towers acquired in the AAT Acquisition. The AAT towers contributed approximately $70.8 million of the total site leasing segment operating profit for the year ended December 31, 2007 as compared to approximately $43.6 million for the year ended December 31, 2006, an increase of approximately $27.2 million. The remaining increase in our site leasing segment operating profit is due to increased revenue from the increased number of tenants and tenant equipment on our sites for the year ended December 31, 2007 versus the same period in 2006 without a commensurate increase in site leasing cost of revenue. We reconcile these non-GAAP financial measures and provide the Regulation G disclosures in this annual report in the section titled Non-GAAP Financial Measures.

Segment Operating Profit:

 




























































































































































   For the year ended December 31,       
   2007  2006  Dollar
Change
  Percentage
Change
 
   (in thousands)       

Segment operating profit:

       

Site leasing

  $233,812  $185,507  $48,305  26.0%

Site development consulting

   5,054   2,578   2,476  96.0%

Site development construction

   5,982   6,431   (449) (7.0)%
              

Total

  $244,848  $194,516  $50,332  25.9%
              

The increase in site leasing segment operating profit of $48.3 million is primarily related to
additional revenue generated by the increased number of towers acquired in the AAT Acquisition. The AAT towers contributed approximately $70.8 million of the total site leasing segment operating profit for the year ended December 31, 2007 as
compared to approximately $43.6 million for the year ended December 31, 2006, an increase of approximately $27.2 million. The remaining increase in our site leasing segment operating profit is due to increased revenue from the increased number
of tenants and tenant equipment on our sites for the year ended December 31, 2007 versus the same period in 2006 without a commensurate increase in site leasing cost of revenue. We reconcile these non-GAAP financial measures and provide the
Regulation G disclosures in this annual report in the section titled Non-GAAP Financial Measures.

This excerpt taken from the SBAC 10-Q filed Nov 5, 2008.

Segment Operating Profit:

 

     For the nine months
ended September 30,
            
     2008    2007    Dollar
Change
    Percentage
Change
 
     (in thousands)             

Segment operating profit:

          

Site leasing

   $ 214,253    $ 170,915    $ 43,338     25.4 %

Site development consulting

     2,571      3,829      (1,258 )   (32.9 )%

Site development construction

     2,097      4,186      (2,089 )   (49.9 )%
                        

Total

   $ 218,921    $ 178,930    $ 39,991     22.4 %
                        

The increase in site leasing segment operating profit of $43.3 million is primarily related to additional revenue generated by the number of towers acquired and constructed after September 30, 2007, as well as additional revenue from the increased number of tenants and tenant equipment on our sites in the first nine months of 2008 compared to the same period of 2007, control of our site leasing cost of revenue and the positive impact of our ground lease purchase program. We reconcile segment operating profit and provide other Regulation G disclosures in this quarterly report in the section entitled Non-GAAP Financial Measures.

This excerpt taken from the SBAC 10-Q filed Aug 7, 2008.

Segment Operating Profit:

 

     For the six months
ended June 30,
            
     2008    2007    Dollar
Change
    Percentage
Change
 
     (in thousands)             

Segment operating profit:

          

Site leasing

   $ 138,473    $ 114,272    $ 24,201     21.2 %

Site development consulting

     1,952      2,270      (318 )   (14.0 )%

Site development construction

     1,848      2,839      (991 )   (34.9 )%
                        

Total

   $ 142,273    $ 119,381    $ 22,892     19.2 %
                        

 

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The increase in site leasing segment operating profit of $24.2 million is primarily related to additional revenue generated by the number of towers acquired and constructed after June 30, 2007, as well as additional revenue from the increased number of tenants and tenant equipment on our sites in the first six months of 2008 compared to the same period of 2007, control of our site leasing cost of revenue and the positive impact of our ground lease purchase program. We reconcile segment operating profit and provide other Regulation G disclosures later in this quarterly report in the section entitled Non-GAAP Financial Measures.

This excerpt taken from the SBAC 10-Q filed May 7, 2008.

Segment Operating Profit

Each respective Segment Operating Profit is defined as segment revenues less segment cost of revenues (excluding depreciation, accretion and amortization). Total Segment Operating Profit is the total of the operating profits of the three segments. Segment Operating Profit is, in our opinion, an indicator of the operating performance of our site leasing and site development segments and is used to provide management with the ability to monitor the operating results and margin of each segment, while excluding the impact of depreciation and amortization which is largely fixed. Segment Operating Profit is not intended to be an alternative measure of revenue or gross profit as determined in accordance with GAAP.

The Non-GAAP measurement of Segment Operating Profit has certain material limitations. Specifically this measurement does not include depreciation, accretion and amortization expense. As we use capital assets in our business, depreciation, accretion and amortization expense is a necessary element of our costs and ability to generate profit. Therefore, any measure that excludes depreciation, accretion and amortization expense has material limitations. We compensate for these limitations by using Segment Operating Profit as only one of several comparative tools, together with GAAP measurements, to assist in the evaluation of the operating performance of our segments.

 

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Table of Contents
     Site leasing segment  
     For the three months
ended March 31,
 
     2008     2007  
     (in thousands)  

Segment revenue

   $ 89,375     $ 76,510  

Segment cost of revenues (excluding depreciation, accretion and amortization)

     (22,047 )     (20,588 )
                

Segment operating profit

   $ 67,328     $ 55,922  
                
     Site development
consulting segment
 
     For the three months
ended March 31,
 
     2008     2007  
     (in thousands)  

Segment revenue

   $ 4,985     $ 4,717  

Segment cost of revenues (excluding depreciation, accretion and amortization)

     (4,192 )     (3,862 )
                

Segment operating profit

   $ 793     $ 855  
                
     Site development
construction segment
 
     For the three months
ended March 31,
 
     2008     2007  
     (in thousands)  

Segment revenue

   $ 15,557     $ 14,581  

Segment cost of revenues (excluding depreciation, accretion and amortization)

     (13,996 )     (13,016 )
                

Segment operating profit

   $ 1,561     $ 1,565  
                

 

ITEM 4. CONTROLS AND PROCEDURES

In order to ensure that the information we must disclose in our filings with the SEC is recorded, processed, summarized and reported on a timely basis, we have formalized our disclosure controls and procedures. Our principal executive officer and principal financial officer have reviewed and evaluated the effectiveness of our disclosure controls and procedures, as defined in Exchange Act Rules 13a-15(e) and 15d-15(e), as of March 31, 2008. Based on such evaluation, such officers have concluded that, as of March 31, 2008, our disclosure controls and procedures were effective.

There have been no changes in our internal control over financial reporting during the quarter ended March 31, 2008 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

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