Crown Castle International Reports Second Quarter Results; Announces Impact Of DTT Service Contracts
HOUSTON, Aug. 8 /PRNewswire-FirstCall/ -- Crown Castle International Corp. (NYSE: CCI) today reported results for the second quarter ended June 30, 2002.
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Annual same tower revenue growth was 20.3 percent for the 14,594 towers owned on June 30, 2001
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Added 1,026 broadband equivalent tenants for an annualized BBE co-location rate of .27 tenants per tower
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Ending cash and investments of $845 million
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Achieved free cash flow breakeven for the second quarter excluding the British Telecom site acquisition payment
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$26 million to $30 million of additional annual revenue expected in 2003 from providing broadcast transmission services to the BBC, BSkyB and others
"Additional highlights since our first quarter results include our preliminary agreements with the BBC and BSkyB for the provision of Digital Terrestrial Television (DTT) services in the UK," stated John P. Kelly, CEO of Crown Castle. "Once finalized, we expect the DTT agreements with these outstanding broadcasters to replace substantially all of the revenue that was lost when ITV Digital liquidated in the second quarter. We are also pleased with the continued strong organic site rental revenue growth from our diverse tower portfolio. While we are feeling the impact of slower leasing and related services revenue in the US, we are pleased with the growth in tower revenue and significant progress we have made towards achieving positive free cash flow through reductions in capital spending. Once again, the 3G leasing activity that is occurring in our UK business illustrates the benefit of our geographically diverse tower portfolio, as we work diligently to assist our customers with their deployments."
Revenues for the second quarter of 2002 decreased to $225.5 million from $229.4 million for the second quarter of 2001, due to a decrease in network service revenue. Site rental and broadcast transmission revenues for the second quarter of 2002 increased 23 percent to $171.9 million from $139.8 million for the same period last year. Network services and other revenue decreased to $53.6 million from $89.6 million for the same period last year. Net loss was $68.6 million for the second quarter of 2002, which was an improvement from a net loss of $84.7 million for the same period in 2001. Second quarter loss per share was $0.41 compared to a loss per share of $0.49 in last year's second quarter. Net cash from operating activities for the second quarter increased to $53.9 million from $8.0 million for the second quarter of 2001. Free cash flow, defined as cash from operating activities less capital expenditures, for the second quarter of 2002 was a use of cash of $72.3 million, improved from a use of cash of $148.8 million for the same period last year.
During the second quarter, Crown Castle had capital expenditures of $126.3 million, down $30.5 million from the same period in 2001. Capital expenditures for the quarter were comprised of $73.4 million to British Telecom (BT) for the acquisition of 500 sites, $23.9 million for tower builds, $16.9 million to accommodate new tenants and $12.1 million for broadcast transmission, maintenance and general corporate purposes. Crown Castle developed 171 sites, 115 of which were developed under an agreement with BT in the UK. On a broadband equivalent (BBE) basis, Crown Castle added 1,026 new tenants during the second quarter, representing an annualized BBE co-location rate of .27 tenants per tower on the 15,291 sites owned and managed at the beginning of the quarter. Annual same tower revenue growth was 20.3 percent for the 14,594 sites owned and operated by Crown Castle on June 30, 2001.
W. Benjamin Moreland, CFO of Crown Castle, stated, "We are pleased to end the second quarter with $845.3 million in cash and liquid investments and approximately $478 million in availability under our existing senior credit facilities. Our substantial liquidity of $1.3 billion provides us with significant flexibility, as we continue to execute our business plan. Further, I am very pleased with the gross profit from site rental and broadcast transmission, which was up 32 percent to $106.0 million from $80.2 million for the second quarter of 2001, evidencing the strength of our core business. We are focused on accelerating our achievement of positive free cash flow through execution of our core tower leasing business and continued reduction in capital spending. Significantly, on an operating basis, after cash interest and all capital expenditures except the acquisition payment to BT for 500 sites, we were free cash flow breakeven for the second quarter, evidencing our progress towards this goal. We draw the distinction between the BT acquisition payments and other capital expenditures since the BT acquisition payments will occur only in this quarter and in the first quarter of 2003, pursuant to the three-year BT site acquisition arrangement. While we are disappointed that our operating results for the quarter fell short with respect to some aspects of our guidance, we've made substantial progress towards achieving positive free cash flow and remain confident in the underlying strength of our business plan. Going forward, we will provide additional guidance around free cash flow as it incorporates operating results, interest and capital expenditures. Although we will be emphasizing the cash flow measures as described in this release, we will continue to report all of the metrics that we have previously provided."
Mr. Kelly and Mr. Moreland will file signed certifications with the U.S. Securities and Exchange Commission (SEC) affirming the SEC filings made by Crown Castle in 2002 as required under the Sarbanes-Oxley Act of 2002. On July 16, 2002, Crown Castle received a letter from the SEC staff requesting certain clarifications to Crown Castle's most recent 10-K and 10-Q filings. Such clarifications have been completed and will be filed shortly with the SEC along with such management certifications. The amendments of the 10-K and 10- Q to be filed with the SEC contain clarifications and enhancements to footnotes and management's discussion and analysis disclosures, but do not restate Crown Castle's basic financial statements.
IMPACT OF CHANGE IN ACCOUNTING FOR GOODWILL
On January 1, 2002, Crown Castle adopted new accounting and disclosure requirements in accordance with Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets ("SFAS 142"). The most significant provision of SFAS 142 is that goodwill and other intangible assets with indefinite useful lives will no longer be amortized, but rather will be tested for impairment on an annual basis. As a result, Crown Castle's depreciation and amortization expense will decrease by approximately $60.6 million per year. If amortization of goodwill had not been recorded during the second quarter and first six months of 2001, Crown Castle's net loss for those periods would have been $69.4 million ($0.42 per share) and $122.1 million ($0.76 per share), respectively.
SFAS 142 requires that transitional impairment tests be performed at its adoption, and provides that resulting impairment losses for goodwill and other intangible assets with indefinite useful lives be reported as the effect of a change in accounting principle. Crown Castle has completed these initial impairment tests, and has determined that no impairment losses will be recorded as a result of adoption of SFAS 142.
OUTLOOK
The following statements are based on current expectations and assumptions and assume a US dollar to UK pound exchange rate of 1.50 dollars to 1.00 pound and a US dollar to Australian dollar exchange rate of 0.50 US dollars to 1.00 Australian dollar. The following Outlook sections contain forward- looking statements, and actual results may differ materially. Information regarding potential risks which could cause actual results to differ from the forward-looking statements herein are set forth below and in Crown Castle's filings with the Securities and Exchange Commission.
"We have adjusted the guidance for 2002 through 2004 to draw attention to the key value metrics of our business," stated Mr. Kelly. "Our goal in showing our outlook in this format is to highlight the significant free cash flow that we believe will be generated by our business model even with the prospect of reduced leasing activity. As a part of this outlook, we have incorporated increased uncertainty of the leasing demand by our US wireless customers caused by the current capital market conditions. While we expect that exponential growth in minutes of use will require additional cell sites by the US wireless operators, the current capital market conditions have caused the operators to reduce their deployment plans creating uncertainty around the timing of these additional sites. Because of the direct correlation between our expansionary capital expenditures and our leasing demand, we expect to deliver positive free cash flow, excluding the BT payment, in 2003 and positive free cash flow in 2004, regardless of the demand level."
DIGITAL TERRESTRIAL TELEVISION LICENSES
On July 4, 2002, the UK Independent Television Commission (ITC) awarded a DTT license to the BBC and a DTT license to Crown Castle's UK subsidiary (CCUK). CCUK has entered into preliminary agreements with the BBC and BSkyB and seeks to enter into additional agreements with other channel providers to provide broadcast services, including transmission services. Starting in the first quarter of 2003, CCUK expects to generate annual revenues of between $26 million and $30 million and incur minimal incremental annual operating costs from the provision of broadcast services related to the new DTT licenses. Capital expenditures, relating to the provision of services under these licenses, are expected to be approximately $3 million, as CCUK has previously invested substantially all of the capital required to provide these broadcast services.
OUTLOOK FOR Q3 2002
Crown Castle expects third quarter 2002 net cash provided by operating activities to be between $40 million and $50 million, assuming that new tenants are added to existing towers at an annualized BBE co-location rate of between .25 tenants per tower and .35 tenants per tower during the quarter. Crown Castle expects to build approximately 150 to 175 new sites during the third quarter. Crown Castle expects total capital expenditures to be between $45 million and $50 million during the third quarter, resulting in free cash flow for the third quarter of between ($5) million and $0 million.
OUTLOOK FOR YEARS 2002 THROUGH 2004
Crown Castle projects total net cash provided by operating activities of between $160 million and $180 million for calendar year 2002, assuming that new tenants are added, on a consolidated basis, to existing towers at a rate of between .25 tenants per tower and .35 tenants per tower during the year. Crown Castle expects total capital expenditures to be between $215 million and $235 million plus a $73 million site acquisition payment to BT during year 2002. Crown Castle expects free cash flow of between ($120) million and ($130) million for 2002.
The following tables set forth Crown Castle's current 2002 to 2004 guidance (dollars in millions except tower builds and BBE co-location rate):
Actual Actual Guidance Guidance
Q1 '02 Q2 '02 Q3 '02 Q4 '02
BBE co-location rate per tower 0.37 0.27 .25 to .35 .25 to .35
Net cash provided by operating
activities 16.0 53.9 40 to 50 50 to 60
Capital expenditures
(excl. BT site acq.) 73.0 52.9 45 to 50 45 to 60
BT site acquisition --- 73.4 --- ---
Free cash flow (57.0) (72.4) (5) to 0 0 to 5
Tower builds 173 171 150 to 175 150 to 175
2002 2003 2004
BBE co-location rate per tower .25 to .35 .20 to .40 .20 to .40
Net cash provided by operating
activities 160 to 180 170 to 240 115 to 250
Capital expenditures
(excl. BT site acq.) 215 to 235 135 to 200 105 to 175
BT site acquisition 73 76 ---
Free cash flow (120)to(130) (35)to(45) 10 to 75
Tower builds 645 to 695 500 to 600 400 to 500
CONFERENCE CALL DETAILS
Crown Castle has scheduled a conference call for Friday, August 9, 2002 at 9:30 a.m. eastern time to discuss second quarter results and Crown Castle's Outlook. Please dial 303-262-2130 and ask for the Crown Castle call at least 10 minutes prior to the start time. A telephonic replay of the conference call will be available through August 16, 2002 and may be accessed by calling 303-590-3000 using pass code 483699. An audio archive will also be available on Crown Castle's website at www.crowncastle.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Karen Roan at Easterly Investor Relations at 1-713-529-6600 or email karen@easterly.com .
Crown Castle International Corp. engineers, deploys, owns and operate technologically advanced shared wireless infrastructure, including extensive networks of towers and rooftops as well as analog and digital audio and television broadcast transmission systems. Crown Castle offers near-universal broadcast coverage in the United Kingdom and significant wireless communications coverage to 68 of the top 100 United States markets, to more than 95 percent of the UK population and to more than 92 percent of the Australian population. Crown Castle owns, operates and manages over 15,000 wireless communication towers internationally. For more information on Crown Castle, visit: www.crowncastle.com .
Cautionary Language Regarding Forward Looking Statements
This press release contains forward-looking statements and information that are based on management's beliefs as well as assumptions made by and information currently available to management. Such forward-looking statements include, but are not limited to, expectations, projections and estimates regarding (i) revenues from DTT and broadcast service agreements, (ii) organic leasing performance, (iii) free cash flow and achievement of positive free cash flow, (iv) demand for our tower and cell sites, (v) 3G leasing activity in the UK, (vi) our liquidity and fully-funded status, (vii) execution of our core tower leasing business and business model, (viii) reductions in capital spending, (ix) currency exchange rates, (x) growth in minutes of use, (xi) our ability to execute additional DTT and broadcast service agreements, (xii) capital expenditures relating to DTT and broadcast service agreements, (xiii) net cash provided by operating activities, (xiv) tenant co-location rates (including BBE co-location rates), (xv) towers to be constructed, and (xvi) capital expenditures.
Although Crown Castle believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions, including but not limited to the success or failure of our efforts to implement our business strategy and the following:
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Our substantial level of indebtedness could adversely affect our ability to react to changes in our business and limit our ability to use debt to fund future capital needs.
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If we are unable to service our indebtedness, our indebtedness may be accelerated.
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Our business depends on the demand for wireless communications, which may be lower or slower than anticipated.
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The continuation of the current economic and telecommunications industry slowdown could materially and adversely affect our business and the business of our customers.
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We may be unable to manage our significant growth.
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The loss, consolidation or financial instability of any of our limited number of customers could materially decrease revenues.
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Restrictive covenants on our debt instruments may limit our ability to take actions that may be in our best interests.
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We operate in an increasingly competitive industry and many of our competitors have significantly more resources than we do.
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Technology changes may significantly reduce the demand for towers.
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2.5G/3G and other technologies may not deploy or be adopted by customers as rapidly or in the manner projected.
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Carrier consolidation or reduced carrier expansion may significantly reduce the demand for towers and wireless communication sites.
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Network sharing and other agreements among our customers may act as alternatives to leasing sites from us.
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We may not be able to construct or acquire new towers at the pace and in the locations that we desire.
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Demand for our network services business is very volatile which causes our network services operating results to vary significantly for any particular period.
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We anticipate significant capital expenditures and may need additional financing which may not be available.
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We generally lease or sublease the land under our towers and may not be able to maintain these leases.
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Extensive regulations, which could change at any time, govern our business and industry, and we could fail to comply with these regulations.
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We could suffer from future claims if radio frequency emissions from equipment on our towers are demonstrated to cause negative health effects.
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Our international operations expose us to changes in foreign currency exchange rates.
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We are heavily dependent on our senior management.
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Disputes with customers and suppliers have increased.
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Sales or issuances, including as dividends, of a substantial number of shares of our common stock could adversely affect the market price of our common stock.
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Economic viability or acceptance of digital terrestrial broadcasting.
Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. More information about potential factors which could affect Crown Castle's financial results is included in Crown Castle's filings with the Securities and Exchange Commission.
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,
2002 2001 2002 2001
Net revenues:
Site rental and
broadcast
transmission $171,952 $139,800 $332,216 $273,842
Network services
and other 53,579 89,616 113,932 168,527
Total net
revenues 225,531 229,416 446,148 442,369
Costs of operations:
Site rental and
broadcast
transmission 65,946 59,555 128,012 117,294
Network services
and other 45,847 63,551 89,572 119,007
Total costs of
operations 111,793 123,106 217,584 236,301
General and
administrative 28,732 30,465 50,520 56,360
Corporate development 1,733 3,758 3,972 7,211
Restructuring charges 100 --- 5,952 ---
Asset write-down charges 765 12,272 32,706 12,272
Non-cash general and
administrative
compensation charges 1,326 1,380 2,640 2,775
Depreciation and
amortization 76,172 74,756 147,887 148,847
Operating income (loss) 4,910 (16,321) (15,113) (21,397)
Interest and other
income (expense) 3,840 4,544 (2,250) 7,636
Interest expense and
amortization of
deferred financing
costs (76,388) (73,175) (152,707) (139,830)
Loss before income
taxes and minority
interests (67,638) (84,952) (170,070) (153,591)
Provision for income
taxes (684) --- (5,343) (60)
Minority interests (276) 219 3,422 863
Net loss (68,598) (84,733) (171,991) (152,788)
Dividends on
preferred stock (20,861) (20,265) (40,966) (39,770)
Net loss after
deduction of
dividends on
preferred stock $(89,459) $(104,998) $(212,957) $(192,558)
Per common share -
basic and diluted $(0.41) $(0.49) $(0.97) $(0.91)
Common shares
outstanding - basic
and diluted 220,897 214,059 220,159 212,627
Adjusted EBITDA
(before restructuring
and asset write-down
charges):
Site rental and
broadcast
transmission $94,354 $70,654 $185,019 $138,042
Network services
and other (before
corporate
development
expenses) (9,348) 5,191 (6,975) 11,666
Adjusted EBITDA
before corporate
development
expenses 85,006 75,845 178,044 149,708
Corporate development (1,733) (3,758) (3,972) (7,211)
Total Adjusted
EBITDA $83,273 $72,087 $174,072 $142,497
Adjusted EBITDA is defined as operating income (loss) plus depreciation
and amortization, non-cash general and administrative compensation
charges, asset write-down charges and restructuring charges. Adjusted
EBITDA is presented as additional information because management believes
it to be a useful indicator of our ability to meet debt service and
capital expenditure requirements. It is not, however, intended as an
alternative measure of operating results or cash flow from operations (as
determined in accordance with generally accepted accounting principles).
Furthermore, our measure of Adjusted EBITDA may not be comparable to
similarly titled measures of other companies.
CROWN CASTLE INTERNATIONAL CORP.
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(in thousands)
June 30, December 31,
2002 2001
Cash and cash equivalents $701,375 $804,602
Liquid investments:
Short-term 87,460 72,963
Long-term 56,500 128,500
Property and equipment, net 4,926,574 4,844,912
Total assets 7,300,035 7,375,458
Total long-term debt 3,468,967 3,423,097
Redeemable preferred stock 898,630 878,861
Stockholders' equity 2,212,026 2,364,648
Condensed Consolidated Statement of Cash flows Data
(in thousands)
Three Months Ended
June 30,
2002 2001
Cash flows from operating activities:
Net loss $(68,598) $(84,733)
Adjustments:
Depreciation and amortization 76,172 74,756
Amortization of deferred financing costs
and discounts on long-term debt 24,943 22,717
Non-cash general and administrative
compensation charges 1,326 1,380
Asset write-down charges 765 12,272
Minority interests 276 (219)
Changes in assets and liabilities 19,065 (18,185)
Net cash provided by operating activities 53,949 7,988
Cash flows from investing activities:
Capital expenditures (126,295) (156,834)
Other investing activities 1,827 (555,810)
Cash flows from financing activities (18,912) 645,061
Effect of exchange rate changes on cash 10,788 1,688
Net increase (decrease) in cash and cash
equivalents (78,643) (57,907)
Cash and cash equivalents at beginning
of period 780,018 716,941
Cash and cash equivalents at end of period $701,375 $659,034
CROWN CASTLE INTERNATIONAL CORP.
Towers & Tenants Fact Sheet
Quarter Ended 9/30/01
US UK AUS Total
Sites:
Owned Towers 10,362 2,923 1,150 14,435
Managed Towers 16 --- 234 250
Owned & Managed Sites 10,378 2,923 1,384 14,685
Rooftop Sites 115 51 --- 166
Total Sites 10,493 2,974 1,384 14,851
Site Activity:
Beginning Sites 10,363 2,857 1,374 14,594
Built 133 117 9 259
Acquired --- --- --- ---
Managed Sites Added (3) --- 1 (2)
Ending Sites 10,493 2,974 1,384 14,851
Quarter Ended 12/31/01
US UK AUS Total
Sites:
Owned Towers 10,509 3,036 1,157 14,702
Managed Towers 14 --- 234 248
Owned & Managed Sites 10,523 3,036 1,391 14,950
Rooftop Sites 115 51 --- 166
Total Sites 10,638 3,087 1,391 15,116
Site Activity:
Beginning Sites 10,493 2,974 1,384 14,851
Built 147 113 7 267
Acquired --- --- --- ---
Managed Sites Added (2) --- --- (2)
Ending Sites 10,638 3,087 1,391 15,116
Quarter Ended 3/31/02
US UK AUS Total
Sites:
Owned Towers 10,540 3,036 1,157 14,702
Managed Towers 14 --- 234 248
Owned & Managed Sites 10,554 3,125 1,402 15,081
Rooftop Sites 159 51 --- 210
Total Sites 10,713 3,176 1,402 15,291
Site Activity:
Beginning Sites 10,638 3,087 1,391 15,116
Built 75 89 9 173
Acquired --- --- 2 2
Managed Sites Added --- --- --- ---
Ending Sites 10,713 3,176 1,402 15,291
Quarter Ended 6/30/02
US UK AUS Total
Sites:
Owned Towers 10,596 3,240 1,147 14,983
Managed Towers 14 --- 255 269
Owned & Managed Sites 10,610 3,240 1,402 15,252
Rooftop Sites 159 51 --- 210
Total Sites 10,769 3,291 1,402 15,462
Site Activity:
Beginning Sites 10,713 3,176 1,402 15,291
Built 56 115 --- 171
Acquired --- --- --- ---
Managed Sites Added --- --- --- ---
Ending Sites 10,769 3,291 1,402 15,462
Quarter Ended 9/30/01
US UK AUS Total
Tenant Activity:
Beginning Tenants 22,243 6,976 2,692 31,911
Anchors on Builds 75 117 9 201
New 1,030 359 78 1,467
Metricom Tenants Lost (96) --- --- (96)
Acquired --- 84 --- 84
Ending Tenants 23,252 7,536 2,779 33,567
Quarter Ended 12/31/01
US UK AUS Total
Tenant Activity:
Beginning Tenants 23,252 7,536 2,779 33,567
Anchors on Builds 58 113 7 178
New 1,049 397 74 1,520
Metricom Tenants Lost --- --- --- ---
Acquired --- 35 --- 35
Ending Tenants 24,359 8,081 2,860 35,300
Quarter Ended 3/31/02
US UK AUS Total
Tenant Activity:
Beginning Tenants 24,359 8,081 2,860 35,300
Anchors on Builds 31 89 9 129
New 870 310 85 1,265
Metricom Tenants Lost --- --- --- ---
Acquired --- --- 2 2
Ending Tenants 25,260 8,480 2,956 36,696
Quarter Ended 6/30/02
US UK AUS Total
Tenant Activity:
Beginning Tenants 25,260 8,480 2,956 36,696
Anchors on Builds 30 115 --- 145
New 524 264 112 900
Metricom Tenants Lost --- --- --- ---
Acquired --- --- --- ---
Ending Tenants 25,814 8,859 3,068 37,741
Quarter Ended 9/30/01
US UK AUS Total
Tenants per Site 2.2 2.5 2.0 2.3
New Tenants per Site 0.10 0.16 0.06 0.11
Annualized 0.38 0.64 0.25 0.42
Pure Co-Lo's per Site 0.09 0.13 0.06 0.09
Annualized 0.36 0.50 0.23 0.38
Quarter Ended 12/31/01
US UK AUS Total
Tenants per Site 2.3 2.6 2.1 2.3
New Tenants per Site 0.10 0.17 0.06 0.11
Annualized 0.42 0.66 0.23 0.45
Pure Co-Lo's per Site 0.10 0.13 0.05 0.10
Annualized 0.40 0.53 0.21 0.41
Quarter Ended 3/31/02
US UK AUS Total
Tenants per Site 2.4 2.7 2.1 2.4
New Tenants per Site 0.08 0.13 0.07 0.09
Annualized 0.34 0.50 0.27 0.36
Pure Co-Lo's per Site 0.08 0.10 0.06 0.08
Annualized 0.33 0.40 0.24 0.33
Quarter Ended 6/30/02
US UK AUS Total
Tenants per Site 2.4 2.7 2.2 2.4
New Tenants per Site 0.05 0.12 0.08 0.07
Annualized 0.21 0.46 0.32 0.27
Pure Co-Lo's per Site 0.05 0.08 0.08 0.06
Annualized 0.20 0.33 0.32 0.24
Quarter Ended 9/30/01
US UK AUS Total
Avg Monthly Lease Rate per New
Tenant
Local Currency 1,425 700 1,102
US Dollars 1,425 980 606
Assumed Broadband Rate, USD 1,500 650 1,000
New Tenants 934 359 78 1,371
Broadband Equivalent New Tenants 887 541 47 1,476
BBE Co-Lo's per Site 0.09 0.19 0.03 0.10
Annualized 0.34 0.76 0.14 0.40
Quarter Ended 12/31/01
US UK AUS Total
Avg Monthly Lease Rate per New
Tenant
Local Currency 1,519 648 1,128
US Dollars 1,519 920 564
Assumed Broadband Rate, USD 1,500 650 1,000
New Tenants 1,049 397 74 1,520
Broadband Equivalent New Tenants 1,062 562 42 1,666
BBE Co-Lo's per Site 0.10 0.19 0.03 0.11
Annualized 0.40 0.76 0.12 0.45
Quarter Ended 3/31/02
US UK AUS Total
Avg Monthly Lease Rate per New
Tenant
Local Currency 1,479 750 1,080
US Dollars 1,479 1,070 558
Assumed Broadband Rate, USD 1,500 650 1,000
New Tenants 870 310 85 1,265
Broadband Equivalent New Tenants 858 510 47 1,415
BBE Co-Lo's per Site 0.08 0.17 0.03 0.09
Annualized 0.32 0.66 0.14 0.37
Quarter Ended 6/30/02
US UK AUS Total
Avg Monthly Lease Rate per New
Tenant
Local Currency 1,476 735 1,182
US Dollars 1,476 1,078 650
Assumed Broadband Rate, USD 1,500 650 1,000
New Tenants 524 264 112 900
Broadband Equivalent New Tenants 516 438 73 1,026
BBE Co-Lo's per Site 0.05 0.14 0.05 0.07
Annualized 0.19 0.55 0.21 0.27
CROWN CASTLE INTERNATIONAL CORP.
Towers & Tenants Fact Sheet
Restricted and Unrestricted Subsidiaries
Quarter Ended 9/30/01
Restricted Crown
Group Atlantic UK Total
Sites:
Owned Towers 9,501 2,011 2,923 14,435
Managed Towers 250 --- --- 250
Owned & Managed Sites 9,751 2,011 2,923 14,685
Rooftop Sites 115 --- 51 166
Total Sites 9,866 2,011 2,974 14,851
Site Activity:
Beginning Sites 9,740 1,997 2,857 14,594
Built 128 14 117 259
Acquired --- --- --- ---
Managed Sites Added --- --- --- ---
Ending Sites 9,865 2,011 2,974 14,850
Quarter Ended 12/31/01
Restricted Crown
Group Atlantic UK Total
Sites:
Owned Towers 9,655 2,011 3,036 14,702
Managed Towers 248 --- --- 248
Owned & Managed Sites 9,903 2,011 3,036 14,950
Rooftop Sites 115 --- 51 166
Total Sites 10,018 2,011 3,087 15,116
Site Activity:
Beginning Sites 9,866 2,011 2,974 14,851
Built 154 --- 113 267
Acquired --- --- --- ---
Managed Sites Added --- --- --- ---
Ending Sites 10,018 2,011 3,087 15,116
Quarter Ended 3/31/02
Restricted Crown
Group Atlantic UK Total
Sites:
Owned Towers 9,673 2,014 3,036 14,723
Managed Towers 269 --- --- 269
Owned & Managed Sites 9,942 2,014 3,125 15,081
Rooftop Sites 159 --- 51 210
Total Sites 10,101 2,014 3,176 15,291
Site Activity:
Beginning Sites 10,018 2,011 3,087 15,116
Built 80 4 89 173
Acquired 2 --- --- 2
Managed Sites Added --- --- --- ---
Ending Sites 10,101 2,014 3,176 15,291
Quarter Ended 6/30/02
Restricted Crown
Group Atlantic UK Total
Sites:
Owned Towers 9,723 2,020 3,240 14,983
Managed Towers 269 --- --- 269
Owned & Managed Sites 9,992 2,020 3,240 15,252
Rooftop Sites 159 --- 51 210
Total Sites 10,151 2,020 3,291 15,462
Site Activity:
Beginning Sites 10,101 2,014 3,176 15,291
Built 50 6 115 171
Acquired --- --- --- ---
Managed Sites Added --- --- --- ---
Ending Sites 10,151 2,020 3,291 15,462
Quarter Ended 9/30/01
Restricted Crown
Group Atlantic UK Total
Tenant Activity:
Beginning Tenants 20,679 4,256 6,976 31,911
Anchors on Builds 70 14 117 201
New 952 156 359 1,467
Metricom Tenants Lost (60) (36) --- (96)
Acquired --- --- 84 84
Ending Tenants 21,641 4,390 7,536 33,567
Quarter Ended 12/31/01
Restricted Crown
Group Atlantic UK Total
Tenant Activity:
Beginning Tenants 21,641 4,390 7,536 33,567
Anchors on Builds 65 --- 113 178
New 924 199 397 1,520
Metricom Tenants Lost --- --- --- ---
Acquired --- --- 35 35
Ending Tenants 22,630 4,589 8,081 35,300
Quarter Ended 3/31/02
Restricted Crown
Group Atlantic UK Total
Tenant Activity:
Beginning Tenants 22,630 4,589 8,081 35,300
Anchors on Builds 40 --- 89 129
New 816 139 310 1,265
Metricom Tenants Lost --- --- --- ---
Acquired 2 --- --- 2
Ending Tenants 23,488 4,728 8,480 36,696
Quarter Ended 6/30/02
Restricted Crown
Group Atlantic UK Total
Tenant Activity:
Beginning Tenants 23,488 4,728 8,480 36,696
Anchors on Builds 30 --- 115 145
New 561 75 264 900
Metricom Tenants Lost --- --- --- ---
Acquired --- --- --- ---
Ending Tenants 24,079 4,803 8,859 37,741
Quarter Ended 9/30/01
Restricted Crown
Group Atlantic UK Total
Tenants per Site 2.2 2.2 2.5 2.3
New Tenants per Site 0.10 0.07 0.16 0.11
Annualized 0.39 0.27 0.64 0.45
Pure Co-Lo's per Site 0.09 0.06 0.13 0.09
Annualized 0.37 0.24 0.50 0.38
Quarter Ended 12/31/01
Restricted Crown
Group Atlantic UK Total
Tenants per Site 2.3 2.3 2.6 2.3
New Tenants per Site 0.10 0.10 0.17 0.11
Annualized 0.39 0.40 0.66 0.45
Pure Co-Lo's per Site 0.09 0.10 0.13 0.10
Annualized 0.37 0.40 0.53 0.41
Quarter Ended 3/31/02
Restricted Crown
Group Atlantic UK Total
Tenants per Site 2.3 2.3 2.7 2.4
New Tenants per Site 0.08 0.07 0.13 0.09
Annualized 0.34 0.28 0.50 0.36
Pure Co-Lo's per Site 0.08 0.07 0.10 0.08
Annualized 0.33 0.28 0.40 0.33
Quarter Ended 6/30/02
Restricted Crown
Group Atlantic UK Total
Tenants per Site 2.4 2.4 2.7 2.4
New Tenants per Site 0.06 0.04 0.12 0.07
Annualized 0.23 0.15 0.46 0.27
Pure Co-Lo's per Site 0.06 0.04 0.08 0.06
Annualized 0.22 0.15 0.33 0.24
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
(in $ thousands)
Quarter Ended 9/30/01
US UK AUS CCIC
Revenues
Site Rental 89,646 52,013 4,563 146,222
Services 65,581 5,972 621 72,174
Total Revenues 155,227 57,985 5,184 218,396
Operating Expenses
Site Rental 34,008 23,045 1,803 58,856
Services 44,695 4,930 616 50,241
Total Operating Expenses 78,703 27,975 2,419 109,097
General & Administrative
Site Rental 4,664 1,447 1,464 7,575
Services 13,285 598 --- 13,883
Total General & Administrative 17,949 2,045 1,464 21,458
Operating Cash Flow
Site Rental 50,974 27,521 1,296 79,791
Services 7,601 444 5 8,050
Total Pre-Overhead Cash Flow 58,575 27,965 1,301 87,841
Corporate Overhead 2,679 --- --- 2,679
Adjusted EBITDA 55,896 27,965 1,301 85,162
Quarter Ended 12/31/01
US UK AUS CCIC
Revenues
Site Rental 96,132 53,448 6,317 155,897
Services 71,581 10,205 503 82,289
Total Revenues 167,713 63,653 6,820 238,186
Operating Expenses
Site Rental 35,203 24,950 2,445 62,598
Services 51,569 7,712 (44) 59,237
Total Operating Expenses 86,772 32,662 2,401 121,835
General & Administrative
Site Rental 5,497 2,167 1,565 9,229
Services 15,358 134 --- 15,492
Total General & Administrative 20,855 2,301 1,565 24,721
Operating Cash Flow
Site Rental 55,432 26,331 2,307 84,070
Services 4,654 2,359 547 7,560
Total Pre-Overhead Cash Flow 60,086 28,690 2,854 91,630
Corporate Overhead 2,447 --- --- 2,447
Adjusted EBITDA 57,639 28,690 2,854 89,183
Quarter Ended 03/31/02
US UK AUS CCIC
Revenues
Site Rental 101,796 53,455 5,013 160,264
Services 43,775 15,945 633 60,353
Total Revenues 145,571 69,400 5,646 220,617
Operating Expenses
Site Rental 35,115 24,717 2,234 62,066
Services 31,185 12,139 401 43,725
Total Operating Expenses 66,299 36,856 2,635 105,790
General & Administrative
Site Rental 4,884 1,388 1,261 7,533
Services 13,916 339 --- 14,255
Total General & Administrative 18,800 1,727 1,261 21,788
Operating Cash Flow
Site Rental 61,798 27,350 1,518 90,665
Services (1,326) 3,467 232 2,373
Total Pre-Overhead Cash Flow 60,472 30,817 1,750 93,038
Corporate Overhead 2,239 --- --- 2,239
Adjusted EBITDA 58,233 30,817 1,750 90,799
Quarter Ended 06/30/02
US UK AUS CCIC
Revenues
Site Rental 103,373 62,409 6,170 171,952
Services 44,069 8,934 576 53,579
Total Revenues 147,442 71,343 6,746 225,531
Operating Expenses
Site Rental 35,622 28,235 2,089 65,946
Services 35,339 10,150 358 45,847
Total Operating Expenses 70,961 38,385 2,447 111,793
General & Administrative
Site Rental 5,574 4,560 1,518 11,652
Services 15,294 1,786 --- 17,080
Total General & Administrative 20,868 6,346 1,518 28,732
Operating Cash Flow
Site Rental 62,177 29,614 2,563 94,354
Services (6,564) (3,002) 218 (9,348)
Total Pre-Overhead Cash Flow 55,613 26,612 2,781 85,006
Corporate Overhead 1,733 --- --- 1,733
Adjusted EBITDA 53,880 26,612 2,781 83,273
Quarter Ended 9/30/01
US UK AUS CCIC
Gross Margins:
Site Rental 62% 56% 60% 60%
Services 32% 17% 1% 30%
Operating Cash Flow Margins
Site Rental 57% 53% 28% 55%
Services 12% 7% 1% 11%
Adjusted EBITDA Margin 36% 48% 25% 39%
Quarter Ended 12/31/01
US UK AUS CCIC
Gross Margins:
Site Rental 63% 53% 61% 60%
Services 28% 24% 109% 28%
Operating Cash Flow Margins
Site Rental 58% 49% 37% 54%
Services 7% 23% 109% 9%
Adjusted EBITDA Margin 34% 45% 42% 37%
Quarter Ended 03/31/02
US UK AUS CCIC
Gross Margins:
Site Rental 66% 54% 55% 61%
Services 29% 24% 37% 28%
Operating Cash Flow Margins
Site Rental 61% 51% 30% 57%
Services -3% 22% 37% 4%
Adjusted EBITDA Margin 40% 44% 31% 41%
Quarter Ended 06/30/02
US UK AUS CCIC
Gross Margins:
Site Rental 66% 55% 66% 62%
Services 20% -14% 38% 14%
Operating Cash Flow Margins
Site Rental 60% 47% 42% 55%
Services -15% -34% 38% -17%
Adjusted EBITDA Margin 37% 37% 41% 37%
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
Restricted and Unrestricted Subsidiaries
(in $ thousands)
Quarter Ended 9/30/01
Restricted UK Crown Other CCIC
Atlantic
Revenues
Site Rental 73,451 52,013 20,758 --- 146,222
Services 57,691 5,972 8,511 --- 72,174
Total Revenues 131,142 57,985 29,269 --- 218,396
Operating Expenses
Site Rental 28,148 23,045 7,663 --- 58,856
Services 40,449 4,930 4,862 --- 50,241
Total Operating Expenses 68,597 27,975 12,525 --- 109,097
General & Administrative
Site Rental 5,611 1,447 517 --- 7,575
Services 12,276 598 1,009 --- 13,883
Total General & Administrative 17,887 2,045 1,526 --- 21,458
Operating Cash Flow
Site Rental 39,692 27,521 12,578 --- 79,791
Services 4,966 444 2,640 --- 8,050
Total Pre-Overhead Cash Flow 44,658 27,965 15,218 --- 87,841
Corporate Overhead 2,235 --- --- 444 2,679
Adjusted EBITDA 42,423 27,965 15,218 (444) 85,162
Quarter Ended 12/31/01
Restricted UK Crown Other CCIC
Atlantic
Revenues
Site Rental 80,757 53,448 21,692 --- 155,897
Services 62,177 10,205 9,907 --- 82,289
Total Revenues 142,934 63,653 31,599 --- 238,186
Operating Expenses
Site Rental 29,557 24,950 8,091 --- 62,598
Services 44,978 7,712 6,547 --- 59,237
Total Operating Expenses 74,535 32,662 14,638 --- 121,835
General & Administrative
Site Rental 6,597 2,167 465 --- 9,229
Services 14,361 134 997 --- 15,492
Total General & Administrative 20,958 2,301 1,462 --- 24,721
Operating Cash Flow
Site Rental 44,603 26,331 13,136 --- 84,070
Services 2,838 2,359 2,363 --- 7,560
Total Pre-Overhead Cash Flow 47,441 28,690 15,499 --- 91,630
Corporate Overhead 1,945 --- --- 502 2,447
Adjusted EBITDA 45,496 28,690 15,499 (502) 89,183
Quarter Ended 03/31/02
Restricted UK Crown Other CCIC
Atlantic
Revenues
Site Rental 84,266 53,455 22,543 --- 160,264
Services 37,982 15,945 6,426 --- 60,353
Total Revenues 122,248 69,400 28,969 --- 220,617
Operating Expenses
Site Rental 28,530 24,717 8,819 --- 62,066
Services 28,037 12,139 3,549 --- 43,725
Total Operating Expenses 56,567 36,856 12,368 --- 105,790
General & Administrative
Site Rental 5,586 1,388 559 --- 7,533
Services 12,698 339 1,178 40 14,255
Total General & Administrative 18,284 1,727 1,737 40 21,788
Operating Cash Flow
Site Rental 50,150 27,350 13,165 --- 90,665
Services (2,753) 3,467 1,699 (40) 2,373
Total Pre-Overhead Cash Flow 47,397 30,817 14,864 (40) 93,038
Corporate Overhead 2,239 --- --- --- 2,239
Adjusted EBITDA 45,158 30,817 14,864 (40) 90,799
Quarter Ended 06/30/02
Restricted UK Crown Other CCIC
Atlantic
Revenues
Site Rental 86,491 62,409 23,052 --- 171,952
Services 38,081 8,934 6,564 --- 53,579
Total Revenues 124,572 71,343 29,616 --- 225,531
Operating Expenses
Site Rental 28,951 28,235 8,760 --- 65,946
Services 31,076 10,150 4,621 --- 45,847
Total Operating Expenses 60,027 38,385 13,381 --- 111,793
General & Administrative
Site Rental 6,787 4,560 305 --- 11,652
Services 14,517 1,786 688 89 17,080
Total General & Administrative 21,304 6,346 993 89 28,732
Operating Cash Flow
Site Rental 50,753 29,614 13,987 --- 94,354
Services (7,512) (3,002) 1,255 (89) (9,348)
Total Pre-Overhead Cash Flow 43,241 26,612 15,242 (89) 85,006
Corporate Overhead 1,733 --- --- --- 1,733
Adjusted EBITDA 41,508 26,612 15,242 (89) 83,273
Quarter Ended 9/30/01
Restricted UK Crown Other CCIC
Atlantic
Gross Margins:
Site Rental 62% 56% 63% --- 60%
Services 30% 17% 43% --- 30%
Operating Cash Flow Margins
Site Rental 54% 53% 61% --- 55%
Services 9% 7% 31% --- 11%
Adjusted EBITDA Margin 32% 48% 52% N/A 39%
Quarter Ended 12/31/01
Restricted UK Crown Other CCIC
Atlantic
Gross Margins:
Site Rental 63% 53% 63% --- 60%
Services 28% 24% 34% --- 28%
Operating Cash Flow Margins
Site Rental 55% 49% 61% --- 54%
Services 5% 23% 24% --- 9%
Adjusted EBITDA Margin 32% 45% 49% N/A 37%
Quarter Ended 03/31/02
Restricted UK Crown Other CCIC
Atlantic
Gross Margins:
Site Rental 66% 54% 61% --- 61%
Services 26% 24% 45% --- 28%
Operating Cash Flow Margins
Site Rental 60% 51% 58% --- 57%
Services -7% 22% 26% --- 4%
Adjusted EBITDA Margin 37% 44% 51% N/A 41%
Quarter Ended 06/30/02
Restricted UK Crown Other CCIC
Atlantic
Gross Margins:
Site Rental 67% 55% 62% --- 62%
Services 18% -14% 30% --- 14%
Operating Cash Flow Margins
Site Rental 59% 47% 61% --- 55%
Services -20% -34% 19% --- -17%
Adjusted EBITDA Margin 33% 37% 51% N/A 37%
Contacts: W. Benjamin Moreland, CFO
Jay Brown, VP Finance
Crown Castle International Corp.
713-570-3000
Ken Dennard / kdennard@easterly.com
Lisa Elliott / lisae@easterly.com
Easterly Investor Relations
713-529-6600
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SOURCE Crown Castle International Corp.
-0- 08/08/2002
/CONTACT: W. Benjamin Moreland, CFO, or Jay Brown, VP Finance, both of Crown Castle International Corp., +1-713-570-3000; or Ken Dennard, kdennard@easterly.com , or Lisa Elliott, lisae@easterly.com , both of Easterly Investor Relations, +1-713-529-6600, for Crown Castle International Corp./