Crown Castle International Adjusts Second Quarter 2004 Site Rental Revenue and Cost of Operations
HOUSTON, Jul 29, 2004 /PRNewswire-FirstCall via COMTEX/ -- Crown Castle International Corp. (NYSE: CCI) adjusted its previously reported site rental revenue upward by $1.2 million to $131.4 million and site rental cost of operations upward by $1.2 million to $41.8 million for the second quarter ended June 30, 2004. The adjustments correct a computational error Crown Castle discovered in the consolidating entries of its US operations.
The revised site rental revenue and site rental cost of operations for the second quarter of 2004 follows:
Consolidated site rental revenue for the second quarter of 2004 increased 12.7 percent to $131.4 million, up $14.8 million from $116.6 million for the same period in the prior year. Consolidated site rental cost of operations for the second quarter of 2004 was $41.8 million compared to $40.0 million for the same period in the prior year. US site rental revenue for the second quarter of 2004 increased $10.3 million, or 9.3 percent, to $120.8 million, from $110.5 million for the same period in 2003. US site rental cost of operations for the second quarter of 2004 was $38.3 million compared to $37.5 million for the same period in 2003.
The adjustments have no effect on any other previously reported second quarter 2004 numbers, including Adjusted EBITDA, net loss, net loss per share, cash provided by operating activities or Free Cash Flow, which is defined as cash from operating activities less capital expenditures. Crown Castle's outlook for third quarter 2004 and full years 2004 and 2005 remains unchanged from the July 28, 2004 press release.
Pro forma for the previously announced sale of Crown Castle UK, Crown Castle International Corp. engineers, deploys, owns and operates technologically advanced shared wireless infrastructure, including extensive networks of towers and rooftops. Crown Castle offers significant wireless communications coverage to 68 of the top 100 United States markets and to substantially all of the Australian population. Crown Castle owns, operates and manages over 10,600 and over 1,300 wireless communication sites in the U.S. and Australia, respectively. For more information on Crown Castle visit: http://www.crowncastle.com .
Non-GAAP Financial Measures:
This press release includes presentations of Adjusted EBITDA, which is a non-GAAP financial measure. Crown Castle defines Free Cash Flow as net cash provided by operating activities less capital expenditures (both amounts from the Consolidated Statement of Cash Flows). Crown Castle defines Adjusted EBITDA as net loss plus cumulative effect of change in accounting principle, income (loss) from discontinued operations, minority interests, provision for income taxes, interest expense, amortization of deferred financing costs and dividends on preferred stock, interest and other income (expense), depreciation, amortization and accretion, non-cash general and administrative compensation charges, asset write-down charges and restructuring charges (credits). Adjusted EBITDA is not intended as an alternative measure of operating results or cash flow from operations (as determined in accordance with generally accepted accounting principles). Further, our measure of Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is presented as additional information because management believes it is a useful indicator of the current financial performance of our core businesses. In addition, Adjusted EBITDA is the measure of current financial performance generally used in our debt covenant calculations. The tables set forth below reconcile Adjusted EBITDA to comparable GAAP financial measures. Our results under GAAP are set forth in the financial statements following this press release.
Adjusted EBITDA is computed as follows:
(in thousands of dollars) Three Months Ended
June 30,
2004 2003
Net loss $(39,594) $(80,831)
Income from discontinued operations,
net of tax (16,455) (2,099)
Minority interests 1,463 730
Provision for income taxes 184 127
Interest expense and amortization of
deferred financing costs 56,568 63,809
Interest and other income (expense) 1,349 8,271
Depreciation, amortization and accretion 61,119 60,763
Non-cash general and administrative
compensation charges 6,203 5,834
Asset write-down charges 1,868 1,380
Restructuring charges (credits) --- 2,349
Adjusted EBITDA $72,705 $60,333
Adjusted EBITDA is computed as follows:
(in thousands of dollars) Six Months Ended
June 30,
2004 2003
Net loss $(104,561) $(149,847)
Cumulative effect of change in
accounting principle --- 551
Income from discontinued operations,
net of tax (30,999) (7,541)
Minority interests 2,809 1,287
Provision for income taxes 337 243
Interest expense and amortization of
deferred financing costs 113,890 127,520
Interest and other income (expense) 26,376 10,834
Depreciation, amortization and accretion 122,344 122,226
Non-cash general and administrative
compensation charges 8,418 7,728
Asset write-down charges 3,816 1,380
Restructuring charges (credits) (33) 2,349
Adjusted EBITDA $142,397 $116,730
Crown Castle International Corp.
Condensed Consolidated Statement of Operations
And Other Financial Data
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
Net revenues:
Site rental $ 131,363 $ 116,646 $ 260,332 $ 230,481
Network services
and other 18,513 19,629 33,216 36,548
Total net revenues 149,876 136,275 293,548 267,029
Costs of operations:
Site rental 41,843 39,985 82,778 80,593
Network services and other 12,272 12,819 23,268 24,430
Total costs
of operations 54,115 52,804 106,046 105,023
General and administrative 22,685 22,220 44,295 42,738
Corporate development 371 918 810 2,538
Restructuring charges (credits) --- 2,349 (33) 2,349
Asset write-down charges 1,868 1,380 3,816 1,380
Non-cash general
and administrative
compensation charges 6,203 5,834 8,418 7,728
Depreciation, amortization
and accretion 61,119 60,763 122,344 122,226
Operating income (loss) 3,515 (9,993) 7,852 (16,953)
Interest and other income
(expense) (1,349) (8,271) (26,376) (10,834)
Interest expense
and amortization of deferred
financing costs (56,568) (63,809) (113,890) (127,520)
Loss from continuing
operations before income
taxes, minority interests
and cumulative effect
of change in accounting
principle (54,402) (82,073) (132,414) (155,307)
Provision for income taxes (184) (127) (337) (243)
Minority interests (1,463) (730) (2,809) (1,287)
Loss from continuing
operations before cumulative
effect of change
in accounting principle (56,049) (82,930) (135,560) (156,837)
Income from discontinued
operations, net of tax 16,455 2,099 30,999 7,541
Loss before cumulative effect
of change in accounting
principle (39,594) (80,831) (104,561) (149,296)
Cumulative effect of change
in accounting principle
for asset retirement
obligations --- --- --- (551)
Net loss (39,594) (80,831) (104,561) (149,847)
Dividends on preferred stock,
net of gains (losses) on
purchases of preferred stock (9,332) (20,081) (19,028) (34,452)
Net loss after deduction
of dividends on preferred
stock, net of gains (losses)
on purchases
of preferred stock $ (48,926) $(100,912) $(123,589) $(184,299)
Per common share
- basic and diluted:
Loss from continuing
operations before
cumulative effect of
change in accounting
principle $ (0.29) $ (0.48) $ (0.70) $ (0.88)
Income from discontinued
operations 0.07 0.01 0.14 0.03
Cumulative effect of change
in accounting principle --- --- --- ---
Net loss $ (0.22) $ (0.47) $ (0.56) $ (0.85)
Common shares outstanding
- basic and diluted 221,853 215,969 220,574 216,464
Adjusted EBITDA
(before restructuring
and asset write-down
charges):
Site rental $ 82,197 $ 69,933 $ 163,609 $ 136,881
Network services
and other (before
corporate development
expenses) (9,121) (8,682) (20,402) (17,613)
Adjusted EBITDA before
corporate development
expenses 73,076 61,251 143,207 119,268
Corporate development (371) (918) (810) (2,538)
Total Adjusted
EBITDA $ 72,705 $ 60,333 $ 142,397 $ 116,730
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
(in $ thousands)
Quarter Ended 9/30/03 Quarter Ended 12/31/03
US AUS CCIC US AUS CCIC
Revenues
Site Rental 113,387 6,740 120,127 117,686 7,860 125,546
Services 16,361 1,035 17,396 17,561 811 18,372
Total Revenues 129,748 7,775 137,523 135,247 8,671 143,918
Operating Expenses
Site Rental 37,298 2,764 40,062 39,353 3,167 42,520
Services 9,668 510 10,178 11,604 534 12,138
Total Operating Expenses 46,966 3,274 50,240 50,957 3,701 54,658
General & Administrative
Site Rental 4,319 2,037 6,356 4,889 2,451 7,340
Services 15,066 --- 15,066 15,561 --- 15,561
Total General &
Administrative 19,385 2,037 21,422 20,450 2,451 22,901
Operating Cash Flow
Site Rental 71,770 1,939 73,709 73,444 2,242 75,686
Services (8,373) 525 (7,848) (9,604) 277 (9,327)
Total Pre-Overhead Cash
Flow 63,397 2,464 65,861 63,840 2,519 66,359
Corporate Overhead 1,039 --- 1,039 1,987 --- 1,987
Adjusted EBITDA 62,358 2,464 64,822 61,853 2,519 64,372
Quarter Ended 9/30/03 Quarter Ended 12/31/03
US AUS CCIC US AUS CCIC
Gross Margins:
Site Rental 67% 59% 67% 67% 60% 66%
Services 41% 51% 41% 34% 34% 34%
Operating Cash Flow
Margins
Site Rental 63% 29% 61% 62% 29% 60%
Services -51% 51% -45% -55% 34% -51%
Adjusted EBITDA Margin 48% 32% 47% 46% 29% 45%
Quarter Ended 3/31/04 Quarter Ended 6/30/04
US AUS CCIC US AUS CCIC
Revenues
Site Rental 120,695 8,274 128,969 120,827 10,536 131,363
Services 13,499 1,204 14,703 17,390 1,123 18,513
Total Revenues 134,194 9,478 143,672 138,217 11,659 149,876
Operating Expenses
Site Rental 37,233 3,702 40,935 38,332 3,511 41,843
Services 10,268 728 10,996 11,591 681 12,272
Total Operating
Expenses 47,501 4,430 51,931 49,923 4,192 54,115
General &
Administrative
Site Rental 4,242 2,380 6,622 4,693 2,630 7,323
Services 14,988 --- 14,988 15,362 --- 15,362
Total General &
Administrative 19,230 2,380 21,610 20,055 2,630 22,685
Operating Cash Flow
Site Rental 79,220 2,192 81,412 77,802 4,395 82,197
Services (11,757) 476 (11,281) (9,563) 442 (9,121)
Total Pre-Overhead Cash
Flow 67,463 2,668 70,131 68,239 4,837 73,076
Corporate Overhead 439 --- 439 371 --- 371
Adjusted EBITDA 67,024 2,668 69,692 67,868 4,837 72,705
Quarter Ended 3/31/04 Quarter Ended 6/30/04
US AUS CCIC US AUS CCIC
Gross Margins:
Site Rental 69% 55% 68% 68% 67% 68%
Services 24% 40% 25% 33% 39% 34%
Operating Cash Flow
Margins
Site Rental 66% 26% 63% 64% 42% 63%
Services -87% 40% -77% -55% 39% -49%
Adjusted EBITDA Margin 50% 28% 49% 49% 41% 49%
Reconciliation of Non-GAAP Financial Measure (Adjusted EBITDA) to GAAP
Financial Measure:
(in $ thousands)
Quarter Ended
09/30/2003 12/31/2003 03/31/2004 06/30/2004
Net loss $(99,678) $(148,840) $(64,967) $(39,594)
Income from discontinued
operations, net of tax (5,076) 2,159 (14,544) (16,455)
Cumulative effect of change in
accounting principle for asset
retirement obligations,
net of related income tax
benefits --- --- --- ---
Minority interests (151) 1,258 1,346 1,463
Provision for income taxes 85 137 153 184
Interest expense, amortization
of deferred financing costs
and dividends
on preferred stock 62,408 68,906 57,322 56,568
Interest and other income
(expense) 35,104 72,521 25,027 1,349
Depreciation, amortization
and accretion 60,846 61,378 61,225 61,119
Non-cash general
and administrative
compensation charges 6,205 53 2,215 6,203
Asset write-down charges 6,137 6,800 1,948 1,868
Restructuring charges
(credits) (1,058) --- (33) ---
Adjusted EBITDA $64,822 $64,372 $69,692 $72,705
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
Restricted and Unrestricted Subsidiaries
(in $ thousands)
Quarter Ended 9/30/03
Crown
Restricted Atlantic Other CCIC
Revenues
Site Rental 94,620 25,507 --- 120,127
Services 14,034 3,362 --- 17,396
Total Revenues 108,654 28,869 --- 137,523
Operating Expenses
Site Rental 31,162 8,900 --- 40,062
Services 9,349 829 --- 10,178
Total Operating Expenses 40,511 9,729 --- 50,240
General & Administrative
Site Rental 5,899 457 --- 6,356
Services 12,664 988 1,414 15,066
Total General & Administrative 18,563 1,445 1,414 21,422
Operating Cash Flow
Site Rental 57,559 16,150 --- 73,709
Services (7,979) 1,545 (1,414) (7,848)
Total Pre-Overhead Cash Flow 49,580 17,695 (1,414) 65,861
Corporate Overhead 1,039 --- --- 1,039
Adjusted EBITDA 48,541 17,695 (1,414) 64,822
Quarter Ended 9/30/03
Crown
Restricted Atlantic Other CCIC
Gross Margins:
Site Rental 67% 65% --- 67%
Services 33% 75% --- 41%
Operating Cash Flow Margins
Site Rental 61% 63% --- 61%
Services -57% 46% --- -45%
Adjusted EBITDA Margin 45% 61% N/A 47%
Quarter Ended 12/31/03
Crown
Restricted Atlantic Other CCIC
Revenues
Site Rental 98,047 27,499 --- 125,546
Services 15,227 3,145 --- 18,372
Total Revenues 113,274 30,644 --- 143,918
Operating Expenses
Site Rental 32,724 9,796 --- 42,520
Services 10,010 2,128 --- 12,138
Total Operating Expenses 42,734 11,924 --- 54,658
General & Administrative
Site Rental 6,769 571 --- 7,340
Services 12,680 1,198 1,683 15,561
Total General & Administrative 19,449 1,769 1,683 22,901
Operating Cash Flow
Site Rental 58,554 17,132 --- 75,686
Services (7,463) (181) (1,683) (9,327)
Total Pre-Overhead Cash Flow 51,091 16,951 (1,683) 66,359
Corporate Overhead 1,987 --- --- 1,987
Adjusted EBITDA 49,104 16,951 (1,683) 64,372
Quarter Ended 12/31/03
Crown
Restricted Atlantic Other CCIC
Gross Margins:
Site Rental 67% 64% --- 66%
Services 34% 32% --- 34%
Operating Cash Flow Margins
Site Rental 60% 62% --- 60%
Services -49% -6% --- -51%
Adjusted EBITDA Margin 43% 55% N/A 45%
Quarter Ended 3/31/04
Crown
Restricted Atlantic Other CCIC
Revenues
Site Rental 100,896 28,073 --- 128,969
Services 13,178 1,525 --- 14,703
Total Revenues 114,074 29,598 --- 143,672
Operating Expenses
Site Rental 31,427 9,508 --- 40,935
Services 9,373 1,623 --- 10,996
Total Operating Expenses 40,800 11,131 --- 51,931
General & Administrative
Site Rental 6,163 459 --- 6,622
Services 12,325 989 1,674 14,988
Total General & Administrative 18,488 1,448 1,674 21,610
Operating Cash Flow
Site Rental 63,306 18,106 --- 81,412
Services (8,520) (1,087) (1,674) (11,281)
Total Pre-Overhead Cash Flow 54,786 17,019 (1,674) 70,131
Corporate Overhead 439 --- --- 439
Adjusted EBITDA 54,347 17,019 (1,674) 69,692
Quarter Ended 3/31/04
Crown
Restricted Atlantic Other CCIC
Gross Margins:
Site Rental 69% 66% --- 68%
Services 29% -6% --- 25%
Operating Cash Flow Margins
Site Rental 63% 64% --- 63%
Services -65% -71% --- -77%
Adjusted EBITDA Margin 48% 58% N/A 49%
Quarter Ended 6/30/04
Crown
Restricted Atlantic Other CCIC
Revenues
Site Rental 103,650 27,713 --- 131,363
Services 16,110 2,138 265 18,513
Total Revenues 119,760 29,851 265 149,876
Operating Expenses
Site Rental 32,561 9,282 --- 41,843
Services 10,284 1,670 318 12,272
Total Operating Expenses 42,845 10,952 --- 54,115
General & Administrative
Site Rental 6,847 476 --- 7,323
Services 13,365 802 1,195 15,362
Total General & Administrative 20,212 1,278 1,195 22,685
Operating Cash Flow
Site Rental 64,242 17,955 --- 82,197
Services (7,539) (334) (1,248) (9,121)
Total Pre-Overhead Cash Flow 56,703 17,621 (1,248) 73,076
Corporate Overhead 371 --- --- 371
Adjusted EBITDA 56,332 17,621 (1,248) 72,705
Quarter Ended 6/30/04
Crown
Restricted Atlantic Other CCIC
Gross Margins:
Site Rental 69% 67% --- 68%
Services 36% 22% -20% 34%
Operating Cash Flow Margins
Site Rental 62% 65% --- 63%
Services -47% -16% -471% -49%
Adjusted EBITDA Margin 47% 59% -471% 49%
Reconciliation of Non-GAAP Financial Measure (Adjusted EBITDA) to GAAP
Financial Measure:
(in $ thousands)
Quarter Ended
09/30/2003 12/31/2003 03/31/2004 06/30/2004
Net loss $(99,678) $(148,840) $(64,967) $(39,594)
Income from discontinued
operations, net of tax (5,076) 2,159 (14,544) (16,455)
Cumulative effect of change in
accounting principle for asset
retirement obligations, net of
related income tax benefits --- --- --- ---
Minority interests (151) 1,258 1,346 1,463
Provision for income taxes 85 137 153 184
Interest expense, amortization
of deferred financing costs and
dividends on preferred stock 62,408 68,906 57,322 56,568
Interest and other income
(expense) 35,104 72,521 25,027 1,349
Depreciation, amortization and
accretion 60,846 61,378 61,225 61,119
Non-cash general and
administrative compensation
charges 6,205 53 2,215 6,203
Asset write-down charges 6,137 6,800 1,948 1,868
Restructuring charges (credits) (1,058) --- (33) ---
Adjusted EBITDA $64,822 $64,372 $69,692 $72,705
CCI FACT SHEET Q2 2004
$ in thousands
Q2 '03 Q2 '04 % Change
CCUSA and Crown Atlantic
Site Rental Revenue $110,504 $120,827 9%
Ending Sites 10,718 10,608 -1%
CCAUS
Site Rental Revenue $6,142 $10,536 72%
Ending Sites 1,387 1,388 0%
TOTAL CCIC
Site Rental Revenue $116,646 $131,363 13%
Ending Sites 12,105 11,996 -1%
Ending Cash and Investments $523,158 $232,503
Debt
Bank Debt $1,019,424 $1,455,385
Bonds $2,167,414 $1,718,752
12 3/4% Preferred Stock $223,904 $0
6 1/4% & 8 1/4% Convertible Preferred
Stock $506,033 $507,371
Total Debt $3,916,775 $3,681,508
Leverage Ratios
Net Bank Debt / EBITDA* 2.1X 4.2X
Net Bank Debt + Bonds / EBITDA* 12.0X 10.1X
Total Net Debt / EBITDA* 14.1X 11.9X
*Last Quarter Annualized Adjusted
EBITDA $241,332 $290,820
SOURCE Crown Castle International Corp.
W. Benjamin Moreland, CFO, or Jay Brown, Treasurer, both of Crown Castle International Corp., +1-713-570-3000
http://www.crowncastle.com